Heritage Commerce Corp Reports Second Consecutive Quarterly Profit In 4Q10
SAN JOSE, Calif., Jan. 27, 2011 (GLOBE NEWSWIRE) -- Heritage Commerce Corp (Nasdaq:HTBK), the holding company ("the Company") for Heritage Bank of Commerce ("the Bank"), today reported preliminary results for the fourth quarter and year ended December 31, 2010. The Company reported fourth quarter 2010 net income of $1.7 million, compared to a net loss of ($574,000) in the fourth quarter a year ago. After accrued dividends and discount accretion on preferred stock, the Company reported net income allocable to common shareholders of $1.1 million, or $0.03 per average diluted common share, for the fourth quarter of 2010. In the fourth quarter of 2009, the net loss allocable to common shareholders was ($1.2) million, or ($0.10) per average diluted common share.
For the full year ended December 31, 2010, the net loss allocable to common shareholders was ($58.3) million, or ($3.64) per average diluted common share, which included a non-cash goodwill impairment charge of $43.2 million and loan charge-offs of $13.9 million related to problem real estate loans transferred to loans held-for-sale in the second quarter of 2010. For the year ended December 31, 2009, the net loss allocable to common shareholders was ($14.4) million, or ($1.21) per average diluted common share.
"Our return to profitability for the second consecutive quarter in 2010 was driven by continued improvement in our asset quality metrics, which included a substantial reduction in nonperforming assets at year end. As a result, the need to increase the allowance for loan losses was reduced with the quarter's improved credit trends and with the relative stabilization of economic conditions," said Walter Kaczmarek, President and Chief Executive Officer. "In fact, the latest reports on the greater San Francisco Bay Area economy are showing signs of improvement with increased hiring in Silicon Valley. We are encouraged by this quarter's financial results and look forward to returning to moderate growth in our loan portfolio this year."
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