Heritage Commerce Corp. in San Jose, Calif., said its second-quarter profits more than quadrupled from the year-earlier period, a gain it attributed to its lower overhead.
The $1 billion-asset company reported late Monday that its net income rose 334%, to $3.3 million. Its efficiency ratio improved to 62.22%, from 86.34%, as operating expenses declined 18%, to $8.9 million.
Walt Kaczmarek, Heritage’s president and chief executive, said in a press release that streamlining the operations of every department and improving efficiency were the company’s “most immediate priority.”
Its net interest margin rose 44 basis points, to 4.53%. The margin expansion was attributed to loans repricing faster than deposits and a reclassification of the amortization of loan servicing rights from interest income to noninterest income.
Heritage’s return on average assets was 1.19%, against 0.29% a year earlier. Its return on average equity was 12.91%, against 3.35% a year earlier.
