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Heritage Commerce Corp (Nasdaq: HTBK), the holding company (“the Company”) for Heritage Bank of Commerce (“the Bank”), today reported that after accrued dividends and discount accretion on preferred stock, 2011 net income allocable to common shareholders totaled $9.0 million, or $0.28 per average diluted common share; a significant improvement from the net loss allocable to shareholders of ($58.3) million, or ($3.64) per average diluted common share in 2010. For the fourth quarter of 2011, after accrued dividends and discount accretion on preferred stock, net income allocable to common shareholders was $2.3 million, or $0.07 per average diluted common share, compared to net income allocable to common shareholders of $1.1 million, or $0.03 per average diluted common share, for the fourth quarter of 2010. All results are unaudited.
“We are very encouraged by our fourth quarter results, as the Company was able to post its sixth consecutive quarter of profitability in what many would describe as a continuing difficult and uncertain economic environment,” said Walter Kaczmarek, President and Chief Executive Officer. “Contributing to these results was management’s ongoing efforts to improve credit quality metrics. In fact, we posted our seventh consecutive quarterly decline in nonperforming loans with classified assets dropping 35% in the fourth quarter from a year ago.”
“Although we are encouraged by these positive trends and improvements in the underlying risk of the Company’s loan portfolio, we will continue to monitor the improving credit trends and maintain our reserves at the appropriate level; all the while preserving the strength of our balance sheet,” added Mr. Kaczmarek.
“Our Company’s capital position remains strong, ending the year with a total risk-based capital ratio of 21.9%,” continued Mr. Kaczmarek. “We are stronger than we were at the beginning of 2011, and we continue to gain momentum in expanding our franchise and building upon our reputation as a trusted provider of financial products and services. We are focused on growing our business and achieving industry-leading performance and returns for the benefit of our shareholders, customers, employees, and communities.”