# EDGAR Filing Document

**Accession Number:** 0001053352
**File Stem:** 0001628280-25-046131
**Filing Date:** 2025-10
**Character Count:** 115598
**Document Hash:** effccc37067638a607e3e7c716bd7985
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-046131.hdr.sgml**: 20251023

**ACCESSION NUMBER**: 0001628280-25-046131

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 32

**CONFORMED PERIOD OF REPORT**: 20251023

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251023

**DATE AS OF CHANGE**: 20251023

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HERITAGE COMMERCE CORP
- **CENTRAL INDEX KEY:** 0001053352
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 770469558
- **STATE OF INCORPORATION:** CA
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23877
- **FILM NUMBER:** 251413827

**BUSINESS ADDRESS:**
- **STREET 1:** 224 AIRPORT PARKWAY
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95110
- **BUSINESS PHONE:** 4089476900

**MAIL ADDRESS:**
- **STREET 1:** 224 AIRPORT PARKWAY
- **CITY:** SAN JOSE
- **STATE:** CA
- **ZIP:** 95110

?xml version='1.0' encoding='ASCII'? htbk-20251023

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K&nbsp;&nbsp;&nbsp;&nbsp;**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): October 23, 2025

**HERITAGE COMMERCE CORP**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **California** | **000-23877** | **77-0469558** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | |
|:---|:---|
| **224 Airport Parkway, San Jose, California** | **95110** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(408) 947-6900**

**Not Applicable**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, No Par Value | HTBK | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☐

------

**ITEM 2.02**&nbsp;&nbsp;&nbsp;&nbsp;**RESULTS OF OPERATIONS AND FINANCIAL CONDITION**

On October 23, 2025, Heritage Commerce Corp (the "Company"), the holding company for Heritage Bank of Commerce (the "Bank"), issued a press release announcing its preliminary unaudited financial results for the third quarter of 2025 and the nine months ended September 30, 2025. Copies of the press release and the Investor Presentation for the Third Quarter 2025 are attached as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K.

The information in this report set forth under this Item 2.02 and in Exhibits 99.1 and 99.2 is being furnished pursuant to Item 2.02 of Form 8-K and shall not be treated as "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Securities Act of 1933, as amended (the "Securities Act), or the Exchange Act, except as expressly stated by specific reference in such filing.

**ITEM 7.01&nbsp;&nbsp;&nbsp;&nbsp;REGULATION FD DISCLOSURE**

Copies of the Company's press releases announcing the amendments to its share repurchase program and the quarterly dividend described below are attached as Exhibits 99.1 and 99.3, respectively, to this Current Report on Form 8-K. In accordance with General Instruction B.2 of Form 8-K, these press releases are deemed to be "furnished" and shall not be deemed "filed" for the purpose of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall either press release be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

**ITEM 8.01**&nbsp;&nbsp;&nbsp;&nbsp;**OTHER EVENTS**

QUARTERLY DIVIDEND

On October 23, 2025, the Company announced that its Board of Directors (the "Board") declared a $0.13 per share quarterly cash dividend to holders of its common stock. The dividend will be paid on November 20, 2025, to shareholders of record at the close of the business day on November 6, 2025.

SHARE REPURCHASE PROGRAM

On October 23, 2025, the Company announced that the Board approved an increase in the maximum total value of shares authorized for repurchase under the Company's existing share repurchase program, initially approved by the Board in July 2024 (the "Repurchase Program"), from $15 million to $30 million. The term of the Repurchase Program was also extended by the Board to October 31, 2026. During the second and third quarters of 2025, the Company repurchased 439,187 shares of its common stock with a weighted average price of $9.22 per share for a total of $4.0 million. The remaining capacity under the Program after giving effect to the amendment described above is $26.0 million.

**ITEM 9.01**&nbsp;&nbsp;&nbsp;&nbsp;**FINANCIAL STATEMENTS AND EXHIBITS**

(d) Exhibits.

------

---

| | |
|:---|:---|
| 99.1 | <u>[Press Release, dated](htbkearningsrelease.htm)[October](htbkearningsrelease.htm)[2](htbkearningsrelease.htm)[3](htbkearningsrelease.htm)[, 2025, entitled "Heritage Commerce Corp Repor](htbkearningsrelease.htm)[ts](htbkearningsrelease.htm)[Third](htbkearningsrelease.htm)[Qua](htbkearningsrelease.htm)[rte](htbkearningsrelease.htm)[r](htbkearningsrelease.htm)[and First Nine Months of](htbkearningsrelease.htm)[2025 Financial Results"](htbkearningsrelease.htm)</u> |
| 99.2 | <u>[I](a3q2025investorslides.htm)[nvestor Presentation Third Quarter 2025](a3q2025investorslides.htm)</u> |
| 99.3 | <u>[Press Release, dated](dividendrelease.htm)[October](dividendrelease.htm)[2](dividendrelease.htm)[3](dividendrelease.htm)[,](dividendrelease.htm)[2025, entitled "Heritage Commerce Corp Declares Regular Quarterly Cash Dividend of $0.13 Per Share"](dividendrelease.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within XBRL document) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: October 23, 2025

Heritage Commerce Corp

---

| |
|:---|
| By: /s/ Seth Fonti |
| Seth Fonti |
| Executive Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

Heritage Commerce Corp

224 Airport Parkway

San Jose, CA 95110

<u>www.heritagecommercecorp.com</u>

**Heritage Commerce Corp Reports Third Quarter and First Nine Months of 2025 Financial Results**

*Core Business Momentum and Operating Leverage Drive Double-Digit EPS Growth in Third Quarter*

San Jose, CA – October 23, 2025 – **Heritage Commerce Corp** **(Nasdaq: HTBK),** (the "Company"), the holding company for Heritage Bank of Commerce (the "Bank")

today announced its financial results for the third quarter and first nine months of 2025. All data are unaudited.

**REPORTED THIRD QUARTER 2025 HIGHLIGHTS:** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Net Income** | **Diluted Earnings Per** <br>**Share ("EPS")**<br>| **Pre-Provision Net Revenue** <br>**("PPNR")**<br>| **Fully Tax Equivalent** <br>**("FTE") Net Interest** <br>**Margin**<sup>(1)</sup><br>| **Efficiency Ratio** | **Return on Average** <br>**Tangible Common** <br>**Equity**<sup>(1)</sup><br>|
| **$14.7 Million** | **$0.24** | **$21.0 Million** | **3.60%** | **58.05%** | **11.14%** |

---

**CEO COMMENTARY:**

"We executed well in the third quarter, generating double digit EPS growth and positive operating leverage," said Clay Jones, President and Chief Executive

Officer. "We had positive trends in loan and deposit growth, an expansion in our net interest margin, disciplined expense management, and an improvement in

our asset quality. Loan and deposit growth was 1% and 3%, respectively, over the linked quarter, and we continue to add clients in key markets across our

footprint, while maintaining our underwriting and pricing."

"Our financial foundation is solid — marked by high capital reserves, strong liquidity, and sound asset quality. These fundamentals position us to continue to

execute on our strategy, which is focused on increasing market share, growing our client franchise, and generating profitable growth, as we continue to

support our community, colleagues, and shareholders. We are strengthening our platform to perform and position ourselves to deliver sustained, high-quality

financial results for our shareholders." said Mr. Jones.

---

| | |
|:---|:---|
| **LINKED-QUARTER BASIS** | **YEAR-OVER-YEAR** |
| **FINANCIAL HIGHLIGHTS:** | **FINANCIAL HIGHLIGHTS:** |
| •Total revenue of $50.0 million, an increase of 5%, or $2.2 million<br>•Cost of funds decreased to 1.54% from 1.57%<br>•Reported net income of $14.7 million and reported EPS of $0.24, up 130% and <br>140%, from $6.4 million and $0.10, respectively<br>•Adjusted net income<sup>(1)</sup> of $14.7 million and adjusted EPS<sup>(1)</sup> of $0.24, up 13% and <br>14%, from $13.0 million and $0.21, respectively<br>| •Total revenue of $50.0 million, an increase of 19%, or $7.9 million<br>•Cost of funds decreased to 1.54% from 1.88% <br>•PPNRof $21.0 million, an increase of 44% from $14.6 million<br>•Net income of $14.7 million and EPS of $0.24, up 40% and 41%, <br>respectively<br>|
| **BALANCE SHEET HIGHLIGHTS:** | **BALANCE SHEET HIGHLIGHTS:** |
| •Loans held-for-investment ("HFI") of $3.6 billion, up $47.3 million, or 1%<br>•Total deposits of $4.8 billion, up $149.2 million, or 3%<br>•Loan to deposit ratio of 74.99%, a decrease of 2% from 76.38%<br>•Total shareholders' equity of $700.0 million, up $5.3 million<br>| •Increase in loans HFI of $171.4 million, or 5%<br>•Increase in total deposits of $47.0 million, or 1%<br>•Loan to deposit ratio of 74.99%, an increase of 4% from 72.11%<br>•Total shareholders' equity of $700.0 million, up $14.7 million<br>|
| **ASSET QUALITY:** | **ASSET QUALITY:** |
| •Nonperforming assets ("NPAs") to total assets of 0.07%, compared to 0.11%<br>•Classified assets to total assets of 0.62%, compared to 0.69% <br>| •NPAs to total assets of 0.07%, compared to 0.13% <br>•Classified assets to total assets of 0.62%, compared to 0.59% <br>|
| **KEY PERFORMANCE METRICS:** | **KEY PERFORMANCE METRICS:** |
| •FTE net interest margin<sup>(1)</sup> of 3.60%, an increase of 6 basis points from 3.54%<br>•Efficiency ratio of 58.05%, a decrease of 5% from adjusted efficiency ratio<sup>(1)</sup> of <br>61.01%<br>•Return on average assets of 1.05%, an increase of 11% over adjusted return on <br>average assets<sup>(1)</sup><br>•Return on average tangible common equity<sup>(1)</sup> of 11.14%, an increase of 12% over <br>adjusted return on average tangible common equity<sup>(1)</sup><br>| •FTE net interest margin<sup>(1)</sup> of 3.60%, an increase of 45 basis points from <br>3.15%<br>•Efficiency ratio of 58.05%, a decrease of 11% from 65.37%<br>•Return on average assets of 1.05%, an increase of 35%<br>•Return on average tangible common equity<sup>(1)</sup> of 11.14%, an increase of <br>35% <br>|
| **CAPITAL MANAGEMENT:** | **CAPITAL MANAGEMENT:** |
| •Common stock net repurchases of $2.2 million, compared to $1.9 million<br>•Total capital ratio of 15.4%, compared to 15.5%<br>•Common equity tier 1 capital ratio of 13.2%, compared to 13.3%<br>•Tangible common equity ratio<sup>(1)</sup> of 9.67%, compared to 9.85%<br>| •Last twelve months ("LTM") common dividend of $31.9 million and <br>dividend payout ratio of 74%<br>•LTM common stock net repurchases of $4.0 million<br>•Total capital ratio of 15.4%, compared to 15.6%<br>•Common equity tier 1 capital ratio of 13.2%, compared to 13.4%<br>•Tangible common equity ratio<sup>(1)</sup>of 9.67%, compared to 9.50%<br>|

---

<sup>(1)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"* in this press release. All references to "adjusted" operating metrics exclude the $9.2

million of pre-tax charges primarily related to a legal settlement in the second quarter and first nine months of 2025 as presented in the reconciliation of non-GAAP financial measures at the end

of this press release.

**Results of Operations:**

Net income was $14.7 million, or $0.24 per average diluted common share, for the third quarter of 2025, compared to $6.4 million, or

$0.10 for the second quarter of 2025, and $10.5 million, or $0.17 per average diluted common share for the third quarter of 2024.

Adjusted net income<sup>(2)</sup> was $13.0 million, or $0.21 per average diluted common share, for the second quarter of 2025. The annualized

return on average assets was 1.05%, the annualized return on average equity was 8.37%, and the annualized return on average tangible

common equity<sup>(2)</sup> was 11.14% for the third quarter of 2025, compared to 0.47%, 3.68%, and 4.89%, respectively, for the second

quarter of 2025, and 0.78%, 6.14%, and 8.27%, respectively, for the third quarter of 2024. The adjusted annualized return on average

assets<sup>(2)</sup>was 0.95%, the adjusted annualized return on average equity<sup>(2)</sup> was 7.45%, and the adjusted annualized return on average

tangible common equity<sup>(2)</sup> was 9.92%, for the second quarter of 2025.

Net income was $32.7 million, or $0.53 per average diluted common share, for the first nine months of 2025. Adjusted net income<sup>(2)</sup>

was $39.3 million, or $0.64 per average diluted common share, for the first nine months of 2025, compared to $29.9 million, or $0.49

per average diluted common share, for the first nine months of 2024. EPS increased 8% and adjusted EPS<sup>(2)</sup> increased 31% for the first

nine months of 2025, compared to the first nine months of 2024. The annualized return on average assets was 0.79%, the annualized

return on average equity was 6.29%, and the annualized return on average tangible common equity<sup>(2)</sup> was 8.38% for the nine months

ended September 30, 2025, compared to 0.76%, 5.91%, and 7.98%, respectively, for the nine months ended September 30, 2024. The

adjusted annualized return on average assets<sup>(2)</sup> was 0.95%, the adjusted annualized return on average equity<sup>(2)</sup>was 7.55%, and the

adjusted annualized return on average tangible common equity<sup>(2)</sup> was 10.06%, for the nine months ended September 30, 2025.

Total revenue, which is defined as net interest income before provision for credit losses on loans plus noninterest income, increased

$2.2 million, or 5%, to $50.0 million for the third quarter of 2025, compared to $47.8 million for the second quarter of 2025, and

increased $7.9 million, or 19%, from $42.2 million for the third quarter of 2024. Total revenue increased $17.8 million, or 14%, to

$143.8 million for the first nine months of 2025, compared to $126.0 million for the first nine months of 2024.

Net interest income totaled $46.8 million for the third quarter of 2025, representing an increase of $2.0 million, or 4%, compared to

$44.8 million for the second quarter of 2025. The FTE net interest margin<sup>(2)</sup> was 3.60% for the third quarter of 2025, compared to

3.54% for the second quarter of 2025. The increase in the net interest margin is primarily attributable to higher average balances of

loans and overnight funds, a higher average yield on securities, and a decrease in the average cost of deposits. The cost of deposits was

down 4 basis points, driven by proactive management of exception based deposit pricing and favorable noninterest-bearing deposit

mix shift. These factors were partially offset by a decrease in the average balances of securities due to maturities and paydowns.

Net interest income increased $7.5 million, or 19%, to $46.8 million, compared to $39.3 million for the third quarter of 2024. The FTE

net interest margin<sup>(2)</sup> increased from 3.15% for the third quarter of 2024 primarily due to lower rates paid on customer deposits, an

increase in the average yields on loans and securities, a higher average balance of loans, and an increase in the average balance of

deposits resulting in a higher average balance of overnight funds, partially offset by a lower average yield on overnight funds.

For the first nine months of 2025, net interest income increased $17.3 million, or 15% to $135.0 million, compared to $117.7 million

for the first nine months of 2024.The FTE net interest margin<sup>(2)</sup> increased 28 basis points to 3.51% for the first nine months of 2025,

from 3.23% for the first nine months of 2024, primarily due to decrease in rates paid on client deposits, an increase in the average

balances of average interest earning assets, and an increase in the average yields on loans and securities, partially offset by a lower

yield on overnight funds.

Total noninterest income increased 8% to $3.2 million for the third quarter of 2025, compared to $3.0 million for the second quarter of

2025, and increased 14% from $2.8 million for the third quarter of 2024. Total noninterest income increased 7% to $8.9 million for the

first nine months of 2025, compared to $8.3 million for the first nine months of 2024. The increase in noninterest income for the third

quarter and first nine months of 2025 was primarily driven by a $386,000 recovery on an acquired loan that had been previously

charged off and by higher facility fees. For the first nine months of 2025, the increase was partially offset by a $219,000 gain on

proceeds from company-owned life insurance recorded in the same period of 2024.

<sup>(2)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"* in this press release.

Noninterest expense for the third quarter of 2025 totaled $29.0 million, compared to $38.3 million<sup>(3)</sup> for the second quarter of 2025,

and $27.6 million for the third quarter of 2024. Adjusted noninterest expense<sup>(4)</sup> was $29.1 million for the second quarter of 2025.

Noninterest expense totaled $96.8 million<sup>(3)</sup> for the first nine months of 2025, compared to $83.3 million for the first nine months of

2024. Adjusted noninterest expense<sup>(4)</sup> for the first nine months of 2025 increased to $87.6 million, compared to $83.3 million for the

first nine months of 2024. The increase in adjusted noninterest expense<sup>(4)</sup> for the third quarter and first nine months of 2025 compared

to the respective periods in 2024 was primarily due to higher salaries and employee benefits as a result of annual salary increases. The

first nine months of 2025 was also impacted by higher professional fees and information technology related expenses as the Company

invested in enhancing its infrastructure.

For the third quarter the Company's PPNR, which is defined as total revenue less adjusted noninterest expense was $21.0 million,

compared to $9.4 million for the second quarter of 2025, and $14.6 million for the third quarter of 2024. For the third quarter the

Company's adjusted PPNR<sup>(4)</sup>increased 13% to $21.0 million from $18.6 million for the second quarter of 2025, and increased 44%

from $14.6 million for the third quarter of 2024. For the first nine months of 2025, the Company's PPNR was $47.0 million, compared

to $42.7 million for the first nine months of 2024. For the first nine months of 2025, the Company's adjusted PPNR<sup>(4)</sup> increased 31%

to $56.2 million from $42.7 million for the first nine months of 2024.

The provision for credit losses on loans totaled $416,000 for the third quarter of 2025, compared to a $516,000 provision for credit

losses on loans for the second quarter of 2025 and a provision for credit losses on loans of $153,000 for the third quarter of 2024. Net

recoveries totaled $378,000 for the third quarter of 2025, compared to net charge-offs of $145,000 for the second quarter of 2025, and

net charge-offs of $288,000 for the third quarter of 2024.

The provision for credit losses on loans totaled $1.2 million for the first nine months of 2025, compared to a $808,000 provision for

credit losses on loans for the first nine months of 2024. Net charge-offs totaled $732,000 for the first nine months of 2025, compared

to $947,000 for the first nine months of 2024.

Income tax expense increased to $5.9 million for the third quarter of 2025, compared to $2.5 million for the second quarter of 2025,

and $3.9 million for the third quarter of 2024, primarily due to higher pre-tax income. The effective tax rate for the third quarter of

2025 was 28.5% for both the third and second quarters of 2025, and 27.3% for the third quarter of 2024.

Income tax expense for the nine months ended September 30, 2025 was $13.1 million, compared to $12.0 million for the nine months

ended September 30, 2024. The effective tax rate for nine months ended September 30, 2025 was 28.6%, compared to 28.7% for the

nine months ended September 30, 2024.

The efficiency ratio was 58.05% for the third quarter of 2025, compared to 80.23% for the second quarter of 2025, and 65.37% for the

third quarter of 2024. The adjusted efficiency ratio<sup>(4)</sup> improved to 58.05% for the third quarter of 2025, from 61.01% for the second

quarter of 2025, and 65.37% for the third quarter of 2024, primarily due to higher total revenue. The reported efficiency ratio was

67.31% for the first nine months of 2025. The adjusted efficiency ratio<sup>(4)</sup> improved to 60.92% for the first nine months of 2025 from

66.08% for the first nine months of 2024, primarily due to higher total revenue, partially offset by higher noninterest expense.

Full time equivalent employees were 350 at both September 30, 2025 and June 30, 2025, and 353 at September 30, 2024.

<sup>(3)</sup> During the second quarter of 2025, the Company recorded expenses of $9.2 million, primarily due to pre-tax charges related to the settlement of certain litigation matters, including the

anticipated settlement of a previously disclosed class action and California Private Attorneys General Act ("PAGA") lawsuit that alleged the violation of certain California wage-and-hour and

related laws and regulations, and charges related to the planned closure of a Bank branch.

<sup>(4)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"* in this press release.

**Balance Sheet, Liquidity and Capital Management:**

Total assets increased 3% to $5.6 billion at September 30, 2025, compared to $5.5 billion at June 30, 2025, primarily due to an

increase in deposits resulting in an increase in overnight funds, purchases of investment securities, and an increase in loans. Total

assets were relatively flat from $5.6 billion at September 30, 2024.

Investment securities available-for-sale (at fair value) increased to $408.5 million at September 30, 2025, compared to $307.0 million

at June 30, 2025, primarily due to purchases, partially offset by maturities and paydowns. At September 30, 2024, these securities

totaled $237.6 million. The pre-tax unrealized loss on the securities available-for-sale portfolio was $652,000, or $540,000 net of

taxes, which equaled less than 1% of total shareholders' equity at September 30, 2025.

During the first nine months of 2025, the Company purchased $174.2 million of agency mortgage-backed securities, $129.8 million of

collateralized mortgage obligations, and $44.8 million of U.S. Treasury securities, for total purchases of $348.8 million in the

available-for-sale portfolio. Securities purchased had a book yield of 4.92% and an average life of 5.42 years.

Investment securities held-to-maturity (at amortized cost, net of an $11,000 allowance for credit losses), totaled $544.8 million at

September 30, 2025, compared to $561.2 million at June 30, 2025, and $604.2 million at September 30, 2024. The fair value of the

securities held-to-maturity portfolio was $476.8 million at September 30, 2025. The pre-tax unrecognized loss on the securities held-

to-maturity portfolio was $68.0 million, or $47.9 million net of taxes, which equaled 7% of total shareholders' equity at September 30,

2025. The unrealized and unrecognized losses in both the available-for-sale and held-to-maturity portfolios resulted from higher interest

rates at September 30, 2025, compared to when the securities were purchased. The issuers are of high credit quality, and all principal

amounts are expected to be repaid at maturity. Fair values are expected to recover as the securities approach maturity and/or if market

rates decline.

Loans HFI, net of deferred costs and fees, increased $47.3 million, or 1% to $3.6 billion at September 30, 2025, compared to $3.5

billion at June 30, 2025, and increased $171.4 million, or 5%, from $3.4 billion at September 30, 2024. Loans HFI, excluding

residential mortgages, increased $58.6 million, or 2% to $3.14 billion at September 30, 2025, compared to $3.08 billion at June 30

2025, and increased $207.8 million, or 7%, from $2.93 billion at September 30, 2024.

Commercial and industrial line utilization was 35% at September 30, 2025, compared to 32% at June 30, 2025, and 31% at September

30, 2024. Commercial real estate ("CRE") loans totaled $2.0 billion at September 30, 2025, of which 31% were owner occupied and

69% were investor CRE loans. Owner occupied CRE loans also totaled 31% at both June 30, 2025 and September 30, 2024.

Approximately 23% of the Company's loan portfolio consisted of floating interest rate loans at September 30, 2025, compared to 24%

at June 30, 2025, and 25% at September 30, 2024.

At September 30, 2025, paydowns and maturities of investment securities and fixed interest rate loans maturing within one year

totaled $343.8 million.

Total deposits increased $149.2 million, or 3%, to $4.8 billion at September 30, 2025, compared to $4.6 billion at June 30, 2025, and

increased $47.0 million, or 1% from $4.7 billion at September 30, 2024.

The following table shows the Company's deposit types as a percentage of total deposits at the dates indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **September 30,** | **June 30,** | **September 30,** |
| **DEPOSITS TYPE % TO TOTAL DEPOSITS** | **2025** | **2025** | **2024** |
| Demand, noninterest-bearing | 26% | 25% | 27% |
| Demand, interest-bearing | 19% | 21% | 19% |
| Savings and money market | 28% | 28% | 28% |
| Time deposits — under $250 | 1% | 1% | 1% |
| Time deposits — $250 and over | 5% | 4% | 4% |
| Insured Cash Sweep ("ICS")/Certificate of Deposit Registry |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Service ("CDARS") - interest-bearing demand, money |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;market and time deposits | 21% | 21% | 21% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 100% | 100% | 100% |

---

The loan to deposit ratio was 74.99% at September 30, 2025, compared to 76.38% at June 30, 2025, and 72.11% at September 30,

2024. The Company's total available liquidity and borrowing capacity was $3.3 billion at September 30, 2025, compared to $3.1 billion at

June 30, 2025, and $3.2 billion at September 30, 2024.

Total shareholders' equity was $700.0 million at September 30, 2025, compared to $694.7 million at June 30, 2025, and $685.4

million at September 30, 2024.

Total accumulated other comprehensive loss of $5.2 million at September 30, 2025 was comprised of $2.5 million in actuarial losses

associated with split dollar insurance contracts, $2.1 million in actuarial losses associated with the supplemental executive retirement

plan, unrealized losses on securities available-for-sale of $540,000, and a $40,000 unrealized gain on interest-only strip from SBA

loans.

Capital at September 30, 2025 was above well capitalized regulatory thresholds.

The reported tangible book value per share<sup>(5)</sup> was $8.61 at September 30, 2025, compared to $8.49 at June 30, 2025, and $8.33 at

September 30, 2024. The adjusted tangible book value per share<sup>(5)</sup> was $8.71, compared to $8.59 at June 30, 2025, and $8.33 at

September 30, 2024.

**Asset Quality:**

The allowance for credit losses on loans ("ACLL") at September 30, 2025 was $49.4 million, or 1.38% of total loans. The ACLL at

June 30, 2025 was $48.6 million, or 1.38% of total loans. The ACLL at September 30, 2024 was $47.8 million, or 1.40% of total

loans. The increase in the ACLL year-over-year is due to loan growth.

NPAs were $3.7 million at September 30, 2025, compared to $6.2 million at June 30, 2025, and $7.2 million at September 30, 2024.

There were no Shared National Credits ("SNCs") in NPAs or total loans at September 30, 2025, June 30, 2025, or September 30,

2024. Classified assets totaled $34.6million, or 0.62% of total assets, at September 30, 2025, compared to $37.5 million, or 0.69% of total

assets, at June 30, 2025, and $32.6 million, or 0.59% of total assets, at September 30, 2024.

**Announcing An Increase to the Company's Share Repurchase Program:**

Today, the Board of Directors (the "Board") of the Company approved an increase in the maximum total value of shares authorized for

repurchase under the Company's share repurchase program, initially approved by the Board in July 2024 (the "Repurchase Program"),

doubling the authorization from $15 million to $30 million. The term of the Repurchase Program was also extended by the Board to

October 31, 2026. During the second and third quarters of 2025, the Company repurchased 439,187 shares of its common stock with a

weighted average price of $9.22 per share for a total of $4.0 million. The remaining capacity under the Program after giving effect to

the amendment as described above is $26 million at September 30, 2025.

<sup>(5)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"* in this press release.

\*\*\*

**Heritage Commerce Corp**, a bank holding company established in October 1997, is the parent company of Heritage Bank of

Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Hollister,

Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo,

San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of

Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various

industries throughout the United States. For more information, please visit <u>www.heritagecommercecorp.com</u>. The contents of our

website are not incorporated into, and do not form a part of, this release or of our filings with the Securities and Exchange

Commission.

**Reclassifications**

During the first quarter of 2025, we reclassified Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") stock

dividends from interest income to noninterest income and the related average asset balances were reclassified from interest earning

assets to other assets on the *"Net Interest Income and Net Interest Margin"* tables. The amounts for the prior periods were reclassified

to conform to the current presentation. These reclassifications did not affect previously reported net income or shareholders' equity.

**Non-GAAP Financial Measures**

Financial results are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP")

and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by

management to evaluate and measure the Company's performance. These measures include "adjusted" operating metrics that have

been adjusted to exclude notable expenses incurred in the second quarter of 2025 as well as other performance measures and ratios

adjusted for notable items. Management believes these non-GAAP financial measures enhance comparability between periods and in

some instances are common in the banking industry. These non-GAAP financial measures should be supplemental to primary GAAP

financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A

reconciliation of GAAP to non-GAAP financial measures is presented in the tables at the end of this press release under

*"Reconciliation of Non-GAAP Financial Measures."*

**Forward-Looking Statement Disclaimer**

Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the

Securities Exchange Act of 1934, as amended. Such forward-looking statements are inherently uncertain in that they reflect plans and

expectations for future events. These statements may include, among other things, those relating to the Company's future financial

performance, plans and objectives regarding future events, expectations regarding changes in interest rates and market conditions,

projected cash flows of our investment securities portfolio, the performance of our loan portfolio, loan growth, expenses, net interest

margin, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay,

as well as statements relating to the anticipated effects on the Company's financial condition and results of operations from expected

developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or

condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given

level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various

risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate.

Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we

do not currently expect. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans,

expectations and projections expressed in forward-looking statements include those set forth in our filings with the Securities and

Exchange Commission, Item 1A of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and include:

(i) cybersecurity risks that may affect us directly or may impact us indirectly by virtue of their effects on our clients, markets or

vendors, including our ability to identify and address cybersecurity risks, including those posed by the increasing use of artificial

intelligence (such as, but not limited to, ransomware, data security breaches, "denial of service" attacks, "hacking" and identity theft)

affecting us, our clients, and our third-party vendors and service providers; (ii) events that affect our ability to attract, recruit, and

retain qualified officers and other personnel to implement our strategic plan, and that enable current and future personnel to protect

and develop our relationships with clients, and to promote our business, results of operations and growth prospects; (iii) media items

and consumer confidence as those factors affect our clients' confidence in the banking system generally and in our bank specifically;

(iv) adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting;

(v) market, geographic and sociopolitical factors that arise by virtue of the fact that we operate primarily in the general San Francisco

Bay Area of Northern California; (vi) risks of geographic concentration of our client base, our loans, and the collateral securing our

loans, as those clients and assets may be particularly subject to natural disasters and to events and conditions that directly or indirectly

affect those regions, including the particular risks of natural disasters (including earthquakes, fires, and flooding) and other events that

disproportionately affect that region; (vii) political events that have accompanied or that may in the future accompany or result from

recent political changes, particularly including the imposition of tariffs, sociopolitical events and conditions that result from political

conflicts and law enforcement activities that may adversely affect our markets or our clients; (viii) our ability to estimate accurately,

and to establish adequate reserves against, the risk of loss associated with our loan and lease portfolios and our factoring business;

(ix) inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial

instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans to clients, whether held

in the portfolio or in the secondary market; (x) factors that affect the value and liquidity of our investment portfolios, particularly the

values of securities available-for-sale; (xi) factors that affect our liquidity and our ability to meet client demands for withdrawals from

deposit accounts and undrawn lines of credit, including our cash on hand and the availability of funds from our own lines of credit;

(xii) increased capital requirements for our continual growth or as imposed by banking regulators, which may require us to raise

capital at a time when capital is not available on favorable terms or at all; (xiii) the expense and uncertain resolution of litigation

matters whether occurring in the ordinary course of business or otherwise, particularly including but not limited to the effects of recent

and ongoing developments in California labor and employment laws, regulations and court decisions; (xiv) operational issues

stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology

systems, on which we are highly dependent; and (xv) our success in managing the risks involved in the foregoing factors.

Member FDIC

**For additional information, email:**

InvestorRelations@herbank.com

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **Percent Change From:** | **Percent Change From:** | **For the Nine Months Ended:** | **For the Nine Months Ended:** | **For the Nine Months Ended:** |
| <br>**CONSOLIDATED INCOME STATEMENTS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **September 30,**<br>**2024** | **June 30,**<br>**2025** | **September 30,**<br>**2024** | **September 30,**<br>**2025** | **September 30,**<br>**2024** | **Percent**<br>**Change** |
| Interest income | $65094 | $63025 | $60852 | 3% | 7% | $189951 | $176301 | 8% |
| Interest expense | 18306 | 18220 | 21523 | 0% | (15)% | 54998 | 58603 | (6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income before provision |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for credit losses on loans | 46788 | 44805 | 39329 | 4% | 19% | 134953 | 117698 | 15% |
| Provision for credit losses on loans | 416 | 516 | 153 | (19)% | 172% | 1206 | 808 | 49% |
| Net interest income after provision  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;for credit losses on loans | 46372 | 44289 | 39176 | 5% | 18% | 133747 | 116890 | 14% |
| Noninterest income: |  |  |  |  |  |  |  |  |
| Service charges and fees on deposit |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;accounts | 898 | 929 | 908 | (3)% | (1)% | 2719 | 2676 | 2% |
| FHLB and FRB stock dividends | 587 | 584 | 586 | 1% | 0% | 1761 | 1765 | 0% |
| Increase in cash surrender value of |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;life insurance | 564 | 548 | 530 | 3% | 6% | 1650 | 1569 | 5% |
| Servicing income | 77 | 61 | 108 | 26% | (29)% | 220 | 348 | -37% |
| Gain on sales of SBA loans |  | 87 | 94 | (100)% | (100)% | 185 | 288 | -36% |
| Termination fees |  | 227 | 46 | (100)% | (100)% | 314 | 159 | 97% |
| Gain on proceeds from company-owned |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;life insurance |  |  |  | N/A | N/A |  | 219 | -100% |
| Other | 1091 | 541 | 554 | 102% | 97% | 2041 | 1304 | 57% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 3217 | 2977 | 2826 | 8% | 14% | 8890 | 8328 | 7% |
| Noninterest expense: |  |  |  |  |  |  |  |  |
| Salaries and employee benefits | 16948 | 16227 | 15673 | 4% | 8% | 49750 | 46976 | 6% |
| Occupancy and equipment | 2528 | 2525 | 2599 | 0% | (3)% | 7587 | 7731 | -2% |
| Professional fees | 1175 | 1819 | 1306 | (35)% | (10)% | 4574 | 3705 | 23% |
| Other | 8375 | 17764 | 7977 | (53)% | 5% | 34906 | 24867 | 40% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 29026 | 38335 | 27555 | (24)% | 5% | 96817 | 83279 | 16% |
| Income before income taxes | 20563 | 8931 | 14447 | 130% | 42% | 45820 | 41939 | 9% |
| Income tax expense | 5865 | 2542 | 3940 | 131% | 49% | 13107 | 12032 | 9% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $**14698** | $**6389** | $**10507** | 130% | 40% | $**32713** | $**29907** | 9% |
| **PER COMMON SHARE DATA** |  |  |  |  |  |  |  |  |
| **(unaudited)** |  |  |  |  |  |  |  |  |
| Basic earnings per share | $0.24 | $0.10 | $0.17 | 140% | 41% | $0.53 | $0.49 | 8% |
| Diluted earnings per share | $0.24 | $0.10 | $0.17 | 140% | 41% | $0.53 | $0.49 | 8% |
| Weighted average shares outstanding - basic | 61333951 | 61508180 | 61295877 | 0% | 0% | 61440570 | 61254138 | 0% |
| Weighted average shares outstanding - diluted | 61616785 | 61624600 | 61546157 | 0% | 0% | 61687616 | 61497927 | 0% |
| Common shares outstanding at period-end | 61277541 | 61446763 | 61297344 | 0% | 0% | 61277541 | 61297344 | 0% |
| Dividend per share | $0.13 | $0.13 | $0.13 | 0% | 0% | $0.39 | $0.39 | 0% |
| Book value per share | $11.42 | $11.31 | $11.18 | 1% | 2% | $11.42 | $11.18 | 2% |
| Tangible book value per share<sup>(1)</sup> | $8.61 | $8.49 | $8.33 | 1% | 3% | $8.61 | $8.33 | 3% |
| **KEY PERFORMANCE METRICS** |  |  |  |  |  |  |  |  |
| **(in $000's, unaudited)** |  |  |  |  |  |  |  |  |
| Annualized return on average equity | 8.37% | 3.68% | 6.14%%<br>| 127% | 36% | 6.29%%<br>| 5.91%%<br>| 6% |
| Annualized return on average tangible  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common equity<sup>(1)</sup> | 11.14% | 4.89% | 8.27%%<br>| 128% | 35% | 8.38%%<br>| 7.98%%<br>| 5% |
| Annualized return on average assets | 1.05% | 0.47% | 0.78%%<br>| 123% | 35% | 0.79%%<br>| 0.76%%<br>| 4% |
| Annualized return on average tangible assets<sup>(1)</sup> | 1.08% | 0.48% | 0.81%%<br>| 125% | 33% | 0.82%%<br>| 0.79%%<br>| 4% |
| Net interest margin (FTE)<sup>(1)</sup> | 3.60% | 3.54% | 3.15%%<br>| 2% | 14% | 3.51%%<br>| 3.23%%<br>| 9% |
| Total revenue | $50005 | $47782 | $42155 | 5% | 19% | $143843 | $126026 | 14% |
| Pre-provision net revenue | $20979 | $9447 | $14600 | 122% | 44% | $47026 | $42747 | 10% |
| Efficiency ratio | 58.05% | 80.23% | 65.37%%<br>| (28)% | (11)% | 67.31%%<br>| 66.08%%<br>| 2% |
| **AVERAGE BALANCES** |  |  |  |  |  |  |  |  |
| **(in $000's, unaudited)** |  |  |  |  |  |  |  |  |
| Average assets | $5551457 | $5458420 | $5352067 | 2% | 4% | $5523227 | $5248338 | 5% |
| Average tangible assets<sup>(1)</sup> | $5378468 | $5284972 | $5177114 | 2% | 4% | $5349786 | $5072843 | 5% |
| Average earning assets | $5167710 | $5087089 | $5011865 | 2% | 3% | $5147630 | $4909240 | 5% |
| Average loans held-for-sale | $1230 | $2250 | $1493 | (45)% | (18)% | $1919 | $1913 | 0% |
| Average loans held-for-investment | $3519775 | $3504518 | $3359647 | 0% | 5% | $3484769 | $3328529 | 5% |
| Average deposits | $4687294 | $4618007 | $4525946 | 2% | 4% | $4674162 | $4427242 | 6% |
| Average demand deposits - noninterest-bearing | $1187357 | $1146494 | $1172304 | 4% | 1% | $1167134 | $1158891 | 1% |
| Average interest-bearing deposits | $3499937 | $3471513 | $3353642 | 1% | 4% | $3507028 | $3268351 | 7% |
| Average interest-bearing liabilities | $3539706 | $3511237 | $3393264 | 1% | 4% | $3546754 | $3307926 | 7% |
| Average equity | $696385 | $697016 | $680404 | 0% | 2% | $695391 | $675951 | 3% |
| Average tangible common equity<sup>(1)</sup> | $523396 | $523568 | $505451 | 0% | 4% | $521950 | $500456 | 4% |

---

<sup>(1)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"*in this press release.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** |
| <br>**CONSOLIDATED INCOME STATEMENTS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| Interest income | $65094 | $63025 | $61832 | $64043 | $60852 |
| Interest expense | 18306 | 18220 | 18472 | 20448 | 21523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income before provision |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for credit losses on loans | 46788 | 44805 | 43360 | 43595 | 39329 |
| Provision for credit losses on loans | 416 | 516 | 274 | 1331 | 153 |
| Net interest income after provision  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;for credit losses on loans | 46372 | 44289 | 43086 | 42264 | 39176 |
| Noninterest income: |  |  |  |  |  |
| Service charges and fees on deposit |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;accounts | 898 | 929 | 892 | 885 | 908 |
| FHLB and FRB stock dividends | 587 | 584 | 590 | 590 | 586 |
| Increase in cash surrender value of |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;life insurance | 564 | 548 | 538 | 528 | 530 |
| Servicing income | 77 | 87 | 98 | 125 | 94 |
| Gain on sales of SBA loans |  | 61 | 82 | 77 | 108 |
| Termination fees |  | 227 | 87 | 18 | 46 |
| Other | 1091 | 541 | 409 | 552 | 554 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 3217 | 2977 | 2696 | 2775 | 2826 |
| Noninterest expense: |  |  |  |  |  |
| Salaries and employee benefits | 16948 | 16227 | 16575 | 16976 | 15673 |
| Occupancy and equipment | 2528 | 2525 | 2534 | 2495 | 2599 |
| Professional fees | 1175 | 1819 | 1580 | 1711 | 1306 |
| Other | 8375 | 17764 | 8767 | 9122 | 7977 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 29026 | 38335 | 29456 | 30304 | 27555 |
| Income before income taxes | 20563 | 8931 | 16326 | 14735 | 14447 |
| Income tax expense | 5865 | 2542 | 4700 | 4114 | 3940 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net income** | $**14698** | $**6389** | $**11626** | $**10621** | $**10507** |
| **PER COMMON SHARE DATA** |  |  |  |  |  |
| **(unaudited)** |  |  |  |  |  |
| Basic earnings per share | $0.24 | $0.10 | $0.19 | $0.17 | $0.17 |
| Diluted earnings per share | $0.24 | $0.10 | $0.19 | $0.17 | $0.17 |
| Weighted average shares outstanding - basic | 61333951 | 61508180 | 61479579 | 61320505 | 61295877 |
| Weighted average shares outstanding - diluted | 61616785 | 61624600 | 61708361 | 61679735 | 61546157 |
| Common shares outstanding at period-end | 61277541 | 61446763 | 61611121 | 61348095 | 61297344 |
| Dividend per share | $0.13 | $0.13 | $0.13 | $0.13 | $0.13 |
| Book value per share | $11.42 | $11.31 | $11.30 | $11.24 | $11.18 |
| Tangible book value per share<sup>(1)</sup> | $8.61 | $8.49 | $8.48 | $8.41 | $8.33 |
| **KEY PERFORMANCE METRICS** |  |  |  |  |  |
| **(in $000's, unaudited)** |  |  |  |  |  |
| Annualized return on average equity | 8.37% | 3.68% | 6.81% | 6.16% | 6.14% |
| Annualized return on average tangible  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;common equity<sup>(1)</sup> | 11.14% | 4.89% | 9.09% | 8.25% | 8.27% |
| Annualized return on average assets | 1.05% | 0.47% | 0.85% | 0.75% | 0.78% |
| Annualized return on average tangible assets<sup>(1)</sup> | 1.08% | 0.48% | 0.88% | 0.78% | 0.81% |
| Net interest margin (FTE)<sup>(1)</sup> | 3.60% | 3.54% | 3.39% | 3.32% | 3.15% |
| Total revenue | $50005 | $47782 | $46056 | $46370 | $42155 |
| Pre-provision net revenue | $20979 | $9447 | $16600 | $16066 | $14600 |
| Efficiency ratio | 58.05% | 80.23% | 63.96% | 65.35% | 65.37% |
| **AVERAGE BALANCES** |  |  |  |  |  |
| **(in $000's, unaudited)** |  |  |  |  |  |
| Average assets | $5551457 | $5458420 | $5559896 | $5607840 | $5352067 |
| Average tangible assets<sup>(1)</sup> | $5378468 | $5284972 | $5386001 | $5433439 | $5177114 |
| Average earning assets | $5167710 | $5087089 | $5188317 | $5235986 | $4980082 |
| Average loans held-for-sale | $1230 | $2250 | $2290 | $2260 | $1493 |
| Average loans held-for-investment | $3519775 | $3504518 | $3429014 | $3388729 | $3359647 |
| Average deposits | $4687294 | $4618007 | $4717517 | $4771491 | $4525946 |
| Average demand deposits - noninterest-bearing | $1187357 | $1146494 | $1167330 | $1222393 | $1172304 |
| Average interest-bearing deposits | $3499937 | $3471513 | $3550187 | $3549098 | $3353642 |
| Average interest-bearing liabilities | $3539706 | $3511237 | $3589872 | $3588755 | $3393264 |
| Average equity | $696385 | $697016 | $692733 | $686263 | $680404 |
| Average tangible common equity<sup>(1)</sup> | $523396 | $523568 | $518838 | $511862 | $505451 |

---

<sup>(1)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"* in this press release.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **End of Period:** | **End of Period:** | **End of Period:** | **Percent Change From:** | **Percent Change From:** |
| <br>**CONSOLIDATED BALANCE SHEETS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **September 30,**<br>**2024** | **June 30,**<br>**2025** | **September 30,**<br>**2024** |
| **ASSETS** |  |  |  |  |  |
| Cash and due from banks | $42442 | $55360 | $49722 | (23)% | (15)% |
| Other investments and interest-bearing deposits |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;in other financial institutions | 705300 | 666432 | 906588 | 6% | (22)% |
| Securities available-for-sale, at fair value | 408456 | 307035 | 237612 | 33% | 72% |
| Securities held-to-maturity, at amortized cost | 544806 | 561205 | 604193 | (3)% | (10)% |
| Loans - held-for-sale - SBA, including deferred costs | 1325 | 1156 | 1649 | 15% | (20)% |
| Loans - held-for-investment: |  |  |  |  |  |
| Commercial | 523110 | 492231 | 481266 | 6% | 9% |
| Real estate: |  |  |  |  |  |
| CRE - owner occupied | 629855 | 627810 | 602062 | 0% | 5% |
| CRE - non-owner occupied | 1416987 | 1390419 | 1310578 | 2% | 8% |
| Land and construction | 137170 | 149460 | 125761 | (8)% | 9% |
| Home equity | 125742 | 120763 | 124090 | 4% | 1% |
| Multifamily | 290077 | 285016 | 273103 | 2% | 6% |
| Residential mortgages | 443143 | 454419 | 479524 | (2)% | (8)% |
| Consumer and other | 15938 | 14661 | 14179 | 9% | 12% |
| Loans | 3582022 | 3534779 | 3410563 | 1% | 5% |
| Deferred loan fees, net | (344) | (446) | (327) | (23)% | 5% |
| Total loans - held-for-investment, net of deferred fees | 3581678 | 3534333 | 3410236 | 1% | 5% |
| Allowance for credit losses on loans | (49427) | (48633) | (47819) | 2% | 3% |
| Loans, net | 3532251 | 3485700 | 3362417 | 1% | 5% |
| Company-owned life insurance | 82861 | 82296 | 80682 | 1% | 3% |
| Premises and equipment, net | 9429 | 9765 | 10398 | (3)% | (9)% |
| Goodwill | 167631 | 167631 | 167631 | 0% | 0% |
| Other intangible assets | 5078 | 5532 | 6966 | (8)% | (27)% |
| Accrued interest receivable and other assets | 124141 | 125125 | 123738 | (1)% | 0% |
| **Total assets** | $**5623720** | $**5467237** | $**5551596** | 3% | 1% |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |  |  |
| **Liabilities:** |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| Demand, noninterest-bearing | $1241603 | $1151242 | $1272139 | 8% | (2)% |
| Demand, interest-bearing | 922077 | 955504 | 913910 | (3)% | 1% |
| Savings and money market | 1366905 | 1320142 | 1309676 | 4% | 4% |
| Time deposits - under $250 | 32462 | 35356 | 39060 | (8)% | (17)% |
| Time deposits - $250 and over | 223496 | 210818 | 196945 | 6% | 13% |
| ICS/CDARS - interest-bearing demand, money market |  |  |  |  |  |
| and time deposits | 990003 | 954272 | 997803 | 4% | (1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 4776546 | 4627334 | 4729533 | 3% | 1% |
| Subordinated debt, net of issuance costs | 39767 | 39728 | 39615 | 0% | 0% |
| Accrued interest payable and other liabilities | 107397 | 105471 | 97096 | 2% | 11% |
| Total liabilities | 4923710 | 4772533 | 4866244 | 3% | 1% |
| **Shareholders' Equity:** |  |  |  |  |  |
| Common stock | 508664 | 509888 | 509134 | 0% | 0% |
| Retained earnings | 196526 | 189794 | 185110 | 4% | 6% |
| Accumulated other comprehensive loss | (5180) | (4978) | (8892) | 4% | (42)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 700010 | 694704 | 685352 | 1% | 2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $**5623720** | $**5467237** | $**5551596** | 3% | 1% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **End of Period:** | **End of Period:** | **End of Period:** | **End of Period:** | **End of Period:** |
| <br>**CONSOLIDATED BALANCE SHEETS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| **ASSETS** |  |  |  |  |  |
| Cash and due from banks | $42442 | $55360 | $44281 | $29864 | $49722 |
| Other investments and interest-bearing deposits |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;in other financial institutions | 705300 | 666432 | 700769 | 938259 | 906588 |
| Securities available-for-sale, at fair value | 408456 | 307035 | 370976 | 256274 | 237612 |
| Securities held-to-maturity, at amortized cost | 544806 | 561205 | 576718 | 590016 | 604193 |
| Loans - held-for-sale - SBA, including deferred costs | 1325 | 1156 | 1884 | 2375 | 1649 |
| Loans - held-for-investment: |  |  |  |  |  |
| Commercial | 523110 | 492231 | 489241 | 531350 | 481266 |
| Real estate: |  |  |  |  |  |
| CRE - owner occupied | 629855 | 627810 | 616825 | 601636 | 602062 |
| CRE - non-owner occupied | 1416987 | 1390419 | 1363275 | 1341266 | 1310578 |
| Land and construction | 137170 | 149460 | 136106 | 127848 | 125761 |
| Home equity | 125742 | 120763 | 119138 | 127963 | 124090 |
| Multifamily | 290077 | 285016 | 284510 | 275490 | 273103 |
| Residential mortgages | 443143 | 454419 | 465330 | 471730 | 479524 |
| Consumer and other | 15938 | 14661 | 12741 | 14837 | 14179 |
| Loans | 3582022 | 3534779 | 3487166 | 3492120 | 3410563 |
| Deferred loan fees, net | (344) | (446) | (268) | (183) | (327) |
| Total loans - held-for-investment, net of deferred fees | 3581678 | 3534333 | 3486898 | 3491937 | 3410236 |
| Allowance for credit losses on loans | (49427) | (48633) | (48262) | (48953) | (47819) |
| Loans, net | 3532251 | 3485700 | 3438636 | 3442984 | 3362417 |
| Company-owned life insurance | 82861 | 82296 | 81749 | 81211 | 80682 |
| Premises and equipment, net | 9429 | 9765 | 9772 | 10140 | 10398 |
| Goodwill | 167631 | 167631 | 167631 | 167631 | 167631 |
| Other intangible assets | 5078 | 5532 | 5986 | 6439 | 6966 |
| Accrued interest receivable and other assets | 124141 | 125125 | 115853 | 119813 | 123738 |
| **Total assets** | $**5623720** | $**5467237** | $**5514255** | $**5645006** | $**5551596** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |  |  |
| **Liabilities:** |  |  |  |  |  |
| Deposits: |  |  |  |  |  |
| Demand, noninterest-bearing | $1241603 | $1151242 | $1128593 | $1214192 | $1272139 |
| Demand, interest-bearing | 922077 | 955504 | 949068 | 936587 | 913910 |
| Savings and money market | 1366905 | 1320142 | 1353293 | 1325923 | 1309676 |
| Time deposits - under $250 | 32462 | 35356 | 37592 | 38988 | 39060 |
| Time deposits - $250 and over | 223496 | 210818 | 213357 | 206755 | 196945 |
| ICS/CDARS - interest-bearing demand, money market |  |  |  |  |  |
| and time deposits | 990003 | 954272 | 1001365 | 1097586 | 997803 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 4776546 | 4627334 | 4683268 | 4820031 | 4729533 |
| Subordinated debt, net of issuance costs | 39767 | 39728 | 39691 | 39653 | 39615 |
| Accrued interest payable and other liabilities | 107397 | 105471 | 95106 | 95595 | 97096 |
| Total liabilities | 4923710 | 4772533 | 4818065 | 4955279 | 4866244 |
| **Shareholders' Equity:** |  |  |  |  |  |
| Common stock | 508664 | 509888 | 511596 | 510070 | 509134 |
| Retained earnings | 196526 | 189794 | 191401 | 187762 | 185110 |
| Accumulated other comprehensive loss | (5180) | (4978) | (6807) | (8105) | (8892) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 700010 | 694704 | 696190 | 689727 | 685352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $**5623720** | $**5467237** | $**5514255** | $**5645006** | $**5551596** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At or For the Quarter Ended:** | **At or For the Quarter Ended:** | **At or For the Quarter Ended:** | **Percent Change From:** | **Percent Change From:** |
| <br>**ASSET QUALITY DATA**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **September 30,**<br>**2024** | **June 30,**<br>**2025** | **September 30,**<br>**2024** |
| Nonaccrual loans - held-for-investment: |  |  |  |  |  |
| Land and construction loans | $2346 | $4198 | $5862 | (44)% | (60)% |
| Home equity | 655 | 728 | 84 | (10)% | 680% |
| Residential mortgages  |  | 607 |  | (100)% | N/A |
| Commercial loans | 467 | 491 | 752 | (5)% | (38)% |
| CRE loans |  | 31 |  | (100)% | N/A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonaccrual loans - held-for-investment: | 3468 | 6055 | 6698 | (43)% | (48)% |
| Loans over 90 days past due |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and still accruing | 194 | 123 | 460 | 58% | (58)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | 3662 | 6178 | 7158 | (41)% | (49)% |
| Foreclosed assets |  |  |  | N/A | N/A |
| Total nonperforming assets | $3662 | $6178 | $7158 | (41)% | (49)% |
| Net (recoveries) charge-offs during the quarter | $(378) | $145 | $288 | (361)% | (231)% |
| Provision for credit losses on loans during the quarter | $416 | $516 | $153 | (19)% | 172% |
| Allowance for credit losses on loans | $49427 | $48633 | $47819 | 2% | 3% |
| Classified assets | $34633 | $37525 | $32609 | (8)% | 6% |
| Allowance for credit losses on loans to total loans | 1.38% | 1.38% | 1.40% | 0% | (1)% |
| Allowance for credit losses on loans to total nonperforming loans | 1349.73% | 787.20% | 668.05% | 71% | 102% |
| Nonperforming assets to total assets | 0.07% | 0.11% | 0.13% | (36)% | (46)% |
| Nonperforming loans to total loans | 0.10% | 0.17% | 0.21% | (41)% | (52)% |
| Classified assets to total assets | 0.62% | 0.69% | 0.59% | (10)% | 5% |
| Classified assets to Heritage Commerce Corp |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital plus allowance for credit losses on loans | 6% | 7% | 6% | (14)% | 0% |
| Classified assets to Heritage Bank of Commerce |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital plus allowance for credit losses on loans | 6% | 6% | 6% | 0% | 0% |
| **OTHER PERIOD-END STATISTICS** |  |  |  |  |  |
| **(in $000's, unaudited)** |  |  |  |  |  |
| **Heritage Commerce Corp:** |  |  |  |  |  |
| Tangible common equity <sup>(1)</sup> | $527301 | $521541 | $510755 | 1% | 3% |
| Shareholders' equity / total assets | 12.45% | 12.71% | 12.35% | (2)% | 1% |
| Tangible common equity / tangible assets <sup>(1)</sup> | 9.67% | 9.85% | 9.50% | (2)% | 2% |
| Loan to deposit ratio | 74.99% | 76.38% | 72.11% | (2)% | 4% |
| Noninterest-bearing deposits / total deposits | 25.99% | 24.88% | 26.90% | 4% | (3)% |
| Total capital ratio | 15.4% | 15.5% | 15.6% | (1)% | (1)% |
| Tier 1 capital ratio | 13.2% | 13.3% | 13.4% | (1)% | (1)% |
| Common Equity Tier 1 capital ratio | 13.2% | 13.3% | 13.4% | (1)% | (1)% |
| Tier 1 leverage ratio | 9.9% | 9.9% | 10.0% | 0% | (1)% |
| **Heritage Bank of Commerce:** |  |  |  |  |  |
| Tangible common equity / tangible assets <sup>(1)</sup> | 10.13% | 10.28% | 9.86% | (1)% | 3% |
| Total capital ratio | 15.1% | 15.1% | 15.1% | 0% | 0% |
| Tier 1 capital ratio | 13.8% | 13.8% | 13.9% | 0% | (1)% |
| Common Equity Tier 1 capital ratio | 13.8% | 13.8% | 13.9% | 0% | (1)% |
| Tier 1 leverage ratio | 10.3% | 10.4% | 10.4% | (1)% | (1)% |

---

<sup>(1)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"* in this press release.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **At or For the Quarter Ended:** | **At or For the Quarter Ended:** | **At or For the Quarter Ended:** | **At or For the Quarter Ended:** | **At or For the Quarter Ended:** |
| <br>**ASSET QUALITY DATA**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| Nonaccrual loans - held-for-investment: |  |  |  |  |  |
| Land and construction loans | $2346 | $4198 | $4793 | $5874 | $5862 |
| Home equity | 655 | 728 | 927 | 290 | 84 |
| Residential mortgages |  | 607 |  |  |  |
| Commercial loans | 467 | 491 | 324 | 1014 | 752 |
| CRE loans |  | 31 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonaccrual loans - held-for-investment: | 3468 | 6055 | 6044 | 7178 | 6698 |
| Loans over 90 days past due |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and still accruing | 194 | 123 | 268 | 489 | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total nonperforming loans | 3662 | 6178 | 6312 | 7667 | 7158 |
| Foreclosed assets |  |  |  |  |  |
| Total nonperforming assets | $3662 | $6178 | $6312 | $7667 | $7158 |
| Net (recoveries) charge-offs during the quarter | $(378) | $145 | $965 | $197 | $288 |
| Provision for credit losses on loans during the quarter | $416 | $516 | $274 | $1331 | $153 |
| Allowance for credit losses on loans | $49427 | $48633 | $48262 | $48953 | $47819 |
| Classified assets | $34633 | $37525 | $40034 | $41661 | $32609 |
| Allowance for credit losses on loans to total loans | 1.38% | 1.38% | 1.38% | 1.40% | 1.40% |
| Allowance for credit losses on loans to total nonperforming loans | 1349.73% | 787.20% | 764.61% | 638.49% | 668.05% |
| Nonperforming assets to total assets | 0.07% | 0.11% | 0.11% | 0.14% | 0.13% |
| Nonperforming loans to total loans | 0.10% | 0.17% | 0.18% | 0.22% | 0.21% |
| Classified assets to total assets | 0.62% | 0.69% | 0.73% | 0.74% | 0.59% |
| Classified assets to Heritage Commerce Corp |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital plus allowance for credit losses on loans | 6% | 7% | 7% | 7% | 6% |
| Classified assets to Heritage Bank of Commerce |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tier 1 capital plus allowance for credit losses on loans | 6% | 6% | 7% | 7% | 6% |
| **OTHER PERIOD-END STATISTICS** |  |  |  |  |  |
| **(in $000's, unaudited)** |  |  |  |  |  |
| **Heritage Commerce Corp:** |  |  |  |  |  |
| Tangible common equity <sup>(1)</sup> | $527301 | $521541 | $522573 | $515657 | $510755 |
| Shareholders' equity / total assets | 12.45% | 12.71% | 12.63% | 12.22% | 12.35% |
| Tangible common equity / tangible assets <sup>(1)</sup> | 9.67% | 9.85% | 9.78% | 9.43% | 9.50% |
| Loan to deposit ratio | 74.99% | 76.38% | 74.45% | 72.45% | 72.11% |
| Noninterest-bearing deposits / total deposits | 25.99% | 24.88% | 24.10% | 25.19% | 26.90% |
| Total capital ratio | 15.4% | 15.5% | 15.9% | 15.6% | 15.6% |
| Tier 1 capital ratio | 13.2% | 13.3% | 13.6% | 13.4% | 13.4% |
| Common Equity Tier 1 capital ratio | 13.2% | 13.3% | 13.6% | 13.4% | 13.4% |
| Tier 1 leverage ratio | 9.9% | 9.9% | 9.8% | 9.6% | 10.0% |
| **Heritage Bank of Commerce:** |  |  |  |  |  |
| Tangible common equity / tangible assets <sup>(1)</sup> | 10.13% | 10.28% | 10.15% | 9.79% | 9.86% |
| Total capital ratio | 15.1% | 15.1% | 15.4% | 15.1% | 15.1% |
| Tier 1 capital ratio | 13.8% | 13.8% | 14.1% | 13.9% | 13.9% |
| Common Equity Tier 1 capital ratio | 13.8% | 13.8% | 14.1% | 13.9% | 13.9% |
| Tier 1 leverage ratio | 10.3% | 10.4% | 10.2% | 10.0% | 10.4% |

---

<sup>(1)</sup> This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial Measures"* in this press release.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** |
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| <br>**NET INTEREST INCOME AND NET INTEREST MARGIN**<br>**(in $000's, unaudited)** | <br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Rate** | <br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Rate** |
| **Assets:** |  |  |  |  |  |  |
| Loans, core bank | $3039478 | $42655 | 5.57% | $3020534 | $41738 | 5.54% |
| Prepayment fees |  | 185 | 0.02% |  | 473 | 0.06% |
| Bay View Funding factored receivables | 74353 | 3654 | 19.50% | 67756 | 3347 | 19.81% |
| Purchased residential mortgages | 408810 | 3472 | 3.37% | 420280 | 3548 | 3.39% |
| Loan fair value mark / accretion | (1636) | 164 | 0.02% | (1802) | 172 | 0.02% |
| Loans, gross<sup>(1)(2)</sup> | 3521005 | 50130 | 5.65% | 3506768 | 49278 | 5.64% |
| Securities - taxable | 842998 | 6146 | 2.89% | 902642 | 6346 | 2.82% |
| Securities - exempt from Federal tax <sup>(3)</sup> | 28683 | 256 | 3.54% | 30259 | 272 | 3.61% |
| Other investments and interest-bearing deposits |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;in other financial institutions | 775024 | 8615 | 4.41% | 647420 | 7186 | 4.45% |
| Total interest earning assets<sup>(3)</sup> | 5167710 | 65147 | 5.00% | 5087089 | 63082 | 4.97% |
| Cash and due from banks | 30764 |  |  | 31044 |  |  |
| Premises and equipment, net | 9651 |  |  | 9958 |  |  |
| Goodwill and other intangible assets | 172989 |  |  | 173448 |  |  |
| Other assets | 170343 |  |  | 156881 |  |  |
| Total assets | $5551457 |  |  | $5458420 |  |  |
| **Liabilities and shareholders' equity:** |  |  |  |  |  |  |
| Deposits: |  |  |  |  |  |  |
| Demand, noninterest-bearing | $1187357 |  |  | $1146494 |  |  |
| Demand, interest-bearing | 932996 | 1463 | 0.62% | 949867 | 1484 | 0.63% |
| Savings and money market | 1340419 | 8452 | 2.50% | 1313054 | 8205 | 2.51% |
| Time deposits - under $100 | 10620 | 40 | 1.49% | 11456 | 49 | 1.72% |
| Time deposits - $100 and over | 233145 | 1977 | 3.36% | 231644 | 1995 | 3.45% |
| ICS/CDARS - interest-bearing demand, money market |  |  |  |  |  |  |
| and time deposits | 982757 | 5837 | 2.36% | 965492 | 5949 | 2.47% |
| Total interest-bearing deposits | 3499937 | 17769 | 2.01% | 3471513 | 17682 | 2.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 4687294 | 17769 | 1.50% | 4618007 | 17682 | 1.54% |
| Short-term borrowings | 26 |  | 0.00% | 19 |  | 0.00% |
| Subordinated debt, net of issuance costs | 39743 | 537 | 5.36% | 39705 | 538 | 5.43% |
| Total interest-bearing liabilities | 3539706 | 18306 | 2.05% | 3511237 | 18220 | 2.08% |
| Total interest-bearing liabilities and demand,  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;noninterest-bearing / cost of funds | 4727063 | 18306 | 1.54% | 4657731 | 18220 | 1.57% |
| Other liabilities | 128009 |  |  | 103673 |  |  |
| Total liabilities | 4855072 |  |  | 4761404 |  |  |
| Shareholders' equity | 696385 |  |  | 697016 |  |  |
| Total liabilities and shareholders' equity | $5551457 |  |  | $5458420 |  |  |
| Net interest income / margin <sup>(3)</sup> |  | 46841 | 3.60% |  | 44862 | 3.54% |
| Less tax equivalent adjustment<sup>(3)</sup> |  | (53) |  |  | (57) |  |
| Net interest income |  | $46788 | 3.59% |  | $44805 | 3.53% |

---

<sup>(</sup><sup>1)</sup>Includes loans held-for-sale. Nonaccrual loans are included in average balances.

<sup>(2)</sup> Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $246,000 for the third quarter of 2025, compared to $253,000

&nbsp;&nbsp;&nbsp;&nbsp;for the second quarter of 2025. Prepayment fees totaled $185,000 for the third quarter of 2025, compared to $473,000 for the second quarter of 2025.

<sup>(3)</sup> Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial* 

&nbsp;&nbsp;&nbsp;&nbsp;*Measures"* in this press release.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** | **For the Quarter Ended** |
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** |
| <br>**NET INTEREST INCOME AND NET INTEREST MARGIN**<br>**(in $000's, unaudited)** | <br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Rate** | <br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Rate** |
| **Assets:** |  |  |  |  |  |  |
| Loans, core bank | $3039478 | $42655 | 5.57% | $2867076 | $39621 | 5.50% |
| Prepayment fees |  | 185 | 0.02% |  | 4 | 0.00% |
| Bay View Funding factored receivables | 74353 | 3654 | 19.50% | 55391 | 2144 | 15.40% |
| Purchased residential mortgages | 408810 | 3472 | 3.37% | 441294 | 3779 | 3.41% |
| Loan fair value mark / accretion | (1636) | 164 | 0.02% | (2621) | 233 | 0.03% |
| Loans, gross<sup>(1)(2)</sup> | 3521005 | 50130 | 5.65% | 3361140 | 45781 | 5.42% |
| Securities - taxable | 842998 | 6146 | 2.89% | 838375 | 4676 | 2.22% |
| Securities - exempt from Federal tax <sup>(3)</sup> | 28683 | 256 | 3.54% | 31311 | 282 | 3.58% |
| Other investments and interest-bearing deposits |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;in other financial institutions | 775024 | 8615 | 4.41% | 749256 | 10172 | 5.40% |
| Total interest earning assets<sup>(3)</sup> | 5167710 | 65147 | 5.00% | 4980082 | 60911 | 4.87% |
| Cash and due from banks | 30764 |  |  | 33425 |  |  |
| Premises and equipment, net | 9651 |  |  | 10471 |  |  |
| Goodwill and other intangible assets | 172989 |  |  | 174953 |  |  |
| Other assets | 170343 |  |  | 153136 |  |  |
| Total assets | $5551457 |  |  | $5352067 |  |  |
| **Liabilities and shareholders' equity:** |  |  |  |  |  |  |
| Deposits: |  |  |  |  |  |  |
| Demand, noninterest-bearing | $1187357 |  |  | $1172304 |  |  |
| Demand, interest-bearing | 932996 | 1463 | 0.62% | 907346 | 1714 | 0.75% |
| Savings and money market | 1340419 | 8452 | 2.50% | 1188057 | 9128 | 3.06% |
| Time deposits - under $100 | 10620 | 40 | 1.49% | 11133 | 47 | 1.68% |
| Time deposits - $100 and over | 233145 | 1977 | 3.36% | 229565 | 2349 | 4.07% |
| ICS/CDARS - interest-bearing demand, money market |  |  |  |  |  |  |
| and time deposits | 982757 | 5837 | 2.36% | 1017541 | 7747 | 3.03% |
| Total interest-bearing deposits | 3499937 | 17769 | 2.01% | 3353642 | 20985 | 2.49% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 4687294 | 17769 | 1.50% | 4525946 | 20985 | 1.84% |
| Short-term borrowings | 26 |  | 0.00% | 32 |  | 0.00% |
| Subordinated debt, net of issuance costs | 39743 | 537 | 5.36% | 39590 | 538 | 5.41% |
| Total interest-bearing liabilities | 3539706 | 18306 | 2.05% | 3393264 | 21523 | 2.52% |
| Total interest-bearing liabilities and demand,  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;noninterest-bearing / cost of funds | 4727063 | 18306 | 1.54% | 4565568 | 21523 | 1.88% |
| Other liabilities | 128009 |  |  | 106095 |  |  |
| Total liabilities | 4855072 |  |  | 4671663 |  |  |
| Shareholders' equity | 696385 |  |  | 680404 |  |  |
| Total liabilities and shareholders' equity | $5551457 |  |  | $5352067 |  |  |
| Net interest income / margin <sup>(3)</sup> |  | 46841 | 3.60% |  | 39388 | 3.15% |
| Less tax equivalent adjustment<sup>(3)</sup> |  | (53) |  |  | (59) |  |
| Net interest income |  | $46788 | 3.59% |  | $39329 | 3.14% |

---

<sup>(1)</sup> Includes loans held-for-sale. Nonaccrual loans are included in average balances.

<sup>(2)</sup> Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $246,000 for the third quarter of 2025, compared to $184,000

&nbsp;&nbsp;&nbsp;&nbsp;for the third quarter of 2024. Prepayment fees totaled $185,000 for the third quarter of 2025, compared to $4,000 for the third quarter of 2024.

<sup>(3)</sup> Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial*

&nbsp;&nbsp;&nbsp;&nbsp;*Measures"* in this press release.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended** | **For the Nine Months Ended** | **For the Nine Months Ended** | **For the Nine Months Ended** | **For the Nine Months Ended** | **For the Nine Months Ended** |
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** | **September 30, 2024** | **September 30, 2024** | **September 30, 2024** |
| <br>**NET INTEREST INCOME AND NET INTEREST MARGIN**<br>**(in $000's, unaudited)** | <br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Rate** | <br>**Average**<br>**Balance** | **Interest**<br>**Income/**<br>**Expense** | **Average**<br>**Yield/**<br>**Rate** |
| **Assets:** |  |  |  |  |  |  |
| Loans, core bank | $3002040 | $124151 | 5.53% | $2831035 | $115838 | 5.47% |
| Prepayment fees |  | 882 | 0.04% |  | 82 | 0.00% |
| Bay View Funding factored receivables | 67505 | 9943 | 19.69% | 54563 | 7896 | 19.33% |
| Purchased residential mortgages | 418948 | 10617 | 3.39% | 447709 | 11306 | 3.37% |
| Loan fair value mark / accretion | (1805) | 517 | 0.02% | (2865) | 729 | 0.03% |
| Loans, gross<sup>(1)(2)</sup> | 3486688 | 146110 | 5.60% | 3330442 | 135851 | 5.45% |
| Securities - taxable | 873789 | 18051 | 2.76% | 940755 | 16342 | 2.32% |
| Securities - exempt from Federal tax <sup>(3)</sup> | 29801 | 803 | 3.60% | 31683 | 853 | 3.60% |
| Other investments, interest-bearing deposits in other |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;financial institutions and Federal funds sold | 757352 | 25155 | 4.44% | 574581 | 23434 | 5.45% |
| Total interest earning assets<sup>(3)</sup> | 5147630 | 190119 | 4.94% | 4877461 | 176480 | 4.85% |
| Cash and due from banks | 31222 |  |  | 33353 |  |  |
| Premises and equipment, net | 9870 |  |  | 10235 |  |  |
| Goodwill and other intangible assets | 173441 |  |  | 175495 |  |  |
| Other assets | 161064 |  |  | 151794 |  |  |
| Total assets | $5523227 |  |  | $5248338 |  |  |
| **Liabilities and shareholders' equity:** |  |  |  |  |  |  |
| Deposits: |  |  |  |  |  |  |
| Demand, noninterest-bearing | $1167134 |  |  | $1158891 |  |  |
| Demand, interest-bearing | 942371 | 4385 | 0.62% | 919786 | 4987 | 0.72% |
| Savings and money market | 1325567 | 24730 | 2.49% | 1120324 | 23644 | 2.82% |
| Time deposits - under $100 | 11150 | 135 | 1.62% | 11020 | 135 | 1.64% |
| Time deposits - $100 and over | 233065 | 6101 | 3.50% | 226353 | 6658 | 3.93% |
| ICS/CDARS - interest-bearing demand, money market |  |  |  |  |  |  |
| and time deposits | 994875 | 18034 | 2.42% | 990868 | 21565 | 2.91% |
| Total interest-bearing deposits | 3507028 | 53385 | 2.04% | 3268351 | 56989 | 2.33% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 4674162 | 53385 | 1.53% | 4427242 | 56989 | 1.72% |
| Short-term borrowings | 21 |  | 0.00% | 22 |  | 0.00% |
| Subordinated debt, net of issuance costs | 39705 | 1613 | 5.43% | 39553 | 1614 | 5.45% |
| Total interest-bearing liabilities | 3546754 | 54998 | 2.07% | 3307926 | 58603 | 2.37% |
| Total interest-bearing liabilities and demand,  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;noninterest-bearing / cost of funds | 4713888 | 54998 | 1.56% | 4466817 | 58603 | 1.75% |
| Other liabilities | 113948 |  |  | 105570 |  |  |
| Total liabilities | 4827836 |  |  | 4572387 |  |  |
| Shareholders' equity | 695391 |  |  | 675951 |  |  |
| Total liabilities and shareholders' equity | $5523227 |  |  | $5248338 |  |  |
| Net interest income / margin <sup>(3)</sup> |  | 135121 | 3.51% |  | 117877 | 3.23% |
| Less tax equivalent adjustment<sup>(3)</sup> |  | (168) |  |  | (179) |  |
| Net interest income |  | $134953 | 3.51% |  | $117698 | 3.22% |

---

<sup>(1)</sup> Includes loans held-for-sale. Nonaccrual loans are included in average balances.

<sup>(2)</sup> Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $713,000 for the first nine months of 2025, compared to $461,000

&nbsp;&nbsp;&nbsp;&nbsp;for the first nine months of 2024. Prepayment fees totaled $882,000 for the first nine months of 2025, compared to $82,000 for the first nine months of 2024.

<sup>(3)</sup> Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under *"Non-GAAP Financial*

&nbsp;&nbsp;&nbsp;&nbsp;*Measures"* in this press release.

**RECONCILIATION OF NON-GAAP FINANCIAL MEASURES**

Management considers adjusted net income and adjusted earnings per share, which excludes the $9.2 million of charges primarily

related to a legal settlement in the second quarter of 2025 and first nine months of 2025 as a useful measurement of the Company's

profitability compared to other periods presented.

The following table summarizes components of net income and diluted earnings per share for the periods indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** |
| **NET INCOME AND**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**DILUTED EARNINGS PER SHARE**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,** <br>**2024** | **September 30,**<br>**2024** |
| Reported net income (GAAP) | $14698 | $6389 | $11626 | $10621 | $10507 |
| Add: pre-tax legal settlement and other charges |  | 9184 |  |  |  |
| Less: related income taxes |  | (2618) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (non-GAAP) | $14698 | $12955 | $11626 | $10621 | $10507 |
| Weighted average shares outstanding - diluted | 61616785 | 61624600 | 61708361 | 61679735 | 61546157 |
| Reported diluted earnings per share (GAAP) | $0.24 | $0.10 | $0.19 | $0.17 | $0.17 |
| Adjusted diluted earnings per share (non-GAAP) | $0.24 | $0.21 | $0.19 | $0.17 | $0.17 |

---

---

| | | |
|:---|:---|:---|
| | **For the Nine Months Ended:** | **For the Nine Months Ended:** |
| **NET INCOME AND**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**DILUTED EARNINGS PER SHARE**<br>**(in $000's, except per share amounts, unaudited)** | **September 30,**<br>**2025** | **September 30,**<br>**2024** |
| Reported net income (GAAP) | $32713 | $29907 |
| Add: pre-tax legal settlement and other charges | 9184 |  |
| Less: related income taxes | (2618) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (non-GAAP) | $39279 | $29907 |
| Weighted average shares outstanding - diluted | 61687616 | 61497927 |
| Reported diluted earnings per share (GAAP) | $0.53 | $0.49 |
| Adjusted diluted earnings per share (non-GAAP) | $0.64 | $0.49 |

---

Management considers tangible book value per share as a useful measurement of the Company's equity. The Company references the

return on average tangible common equity and the return on average tangible assets as measurements of profitability.

The following table summarizes components of the tangible book value per share at the dates indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TANGIBLE BOOK VALUE PER SHARE**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| Capital components: |  |  |  |  |  |
| Total equity (GAAP) | $700010 | $694704 | $696190 | $689727 | $685352 |
| Less: preferred stock |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total common equity | 700010 | 694704 | 696190 | 689727 | 685352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: goodwill | (167631) | (167631) | (167631) | (167631) | (167631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: other intangible assets | (5078) | (5532) | (5986) | (6439) | (6966) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reported tangible common equity (non-GAAP) | 527301 | 521541 | 522573 | 515657 | 510755 |
| Add: pre-tax legal settlement and other charges | 9184 | 9184 |  |  |  |
| Less: related income taxes | (2618) | (2618) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted tangible common equity (non-GAAP) | $533867 | $528107 | $522573 | $515657 | $510755 |
| Common shares outstanding at period-end | 61277541 | 61446763 | 61611121 | 61348095 | 61297344 |
| Reported tangible book value per share (non-GAAP) | $8.61 | $8.49 | $8.48 | $8.41 | $8.33 |
| Adjusted tangible book value per share (non-GAAP) | $8.71 | $8.59 | $8.48 | $8.41 | $8.33 |

---

The following tables summarize components of the annualized return on average tangible common equity and the annualized return on

average tangible assets for the periods indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** |
| **RETURN ON AVERAGE TANGIBLE COMMON** <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EQUITY AND AVERAGE ASSETS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| Reported net income (GAAP) | $14698 | $6389 | $11626 | $10621 | $10507 |
| Add: pre-tax legal settlement and other charges |  | 9184 |  |  |  |
| Less: related income taxes |  | (2618) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (non-GAAP) | $14698 | $12955 | $11626 | $10621 | $10507 |
| Average tangible common equity components: |  |  |  |  |  |
| Average equity (GAAP) | $696385 | $697016 | $692733 | $686263 | $680404 |
| Less: goodwill | (167631) | (167631) | (167631) | (167631) | (167631) |
| Less: other intangible assets | (5358) | (5817) | (6264) | (6770) | (7322) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total average tangible common equity (non-GAAP) | $523396 | $523568 | $518838 | $511862 | $505451 |
| Reported annualized return on average equity (GAAP) | 8.37% | 3.68% | 6.81% | 6.16% | 6.14% |
| Adjusted annualized return on average equity (non-GAAP) | 8.37% | 7.45% | 6.81% | 6.16% | 6.14% |
| Reported annualized return on average  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tangible common equity (non-GAAP) | 11.14% | 4.89% | 9.09% | 8.25% | 8.27% |
| Adjusted annualized return on average |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tangible common equity (non-GAAP) | 11.14% | 9.92% | 9.09% | 8.25% | 8.27% |
| Average Assets (GAAP) | $5551457 | $5458420 | $5559896 | $5607840 | $5352067 |
| Reported annualized return on average assets (GAAP) | 1.05% | 0.47% | 0.85% | 0.75% | 0.78% |
| Adjusted annualized return on average assets (non-GAAP) | 1.05% | 0.95% | 0.85% | 0.75% | 0.78% |

---

---

| | | |
|:---|:---|:---|
| | **For the Nine Months Ended:** | **For the Nine Months Ended:** |
| **RETURN ON AVERAGE TANGIBLE COMMON** <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EQUITY AND AVERAGE ASSETS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **September 30,**<br>**2024** |
| Reported net income (GAAP) | $32713 | $29907 |
| Add: pre-tax legal settlement and other charges | 9184 |  |
| Less: related income taxes | (2618) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (non-GAAP) | $39279 | $29907 |
| Average tangible common equity components: |  |  |
| Average equity (GAAP) | $695391 | $675951 |
| Less: goodwill | (167631) | (167631) |
| Less: other intangible assets | (5810) | (7864) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total average tangible common equity (non-GAAP) | $521950 | $500456 |
| Reported annualized return on average equity (GAAP) | 6.29% | 5.91% |
| Adjusted annualized return on average equity (non-GAAP) | 7.55% | 5.91% |
| Reported annualized return on average |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tangible common equity (non-GAAP) | 8.38% | 7.98% |
| Adjusted annualized return on average |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tangible common equity (non-GAAP) | 10.06% | 7.98% |
| Average Assets (GAAP) | $5523227 | $5248338 |
| Reported annualized return on average assets (GAAP)  | 0.79% | 0.76% |
| Adjusted annualized return on average assets (non-GAAP) | 0.95% | 0.76% |

---

Management reviews yields on certain asset categories and the net interest margin of the Company on an FTE basis. In this non-

GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax

rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-

exempt sources. The following tables summarize components of FTE net interest income of the Company for the periods indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** |
| **NET INTEREST INCOME** <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**AND NET INTEREST MARGIN**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| Net interest income before |  |  |  |  |  |
| credit losses on loans (GAAP) | $46788 | $44805 | $43360 | $43595 | $39329 |
| Tax-equivalent adjustment on securities -  |  |  |  |  |  |
| exempt from Federal tax | 53 | 57 | 58 | 58 | 59 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income, FTE (non-GAAP) | $46841 | $44862 | $43418 | $43653 | $39388 |
| Average balance of total interest earning assets | $5167710 | $5087089 | $5188317 | $5235986 | $4980082 |
| Net interest margin (annualized net interest income divided by the |  |  |  |  |  |
| average balance of total interest earnings assets) (GAAP) | 3.59% | 3.53% | 3.39% | 3.31% | 3.14% |
| Net interest margin, FTE (annualized net interest income, FTE,  |  |  |  |  |  |
| divided by the average balance of total |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;earnings assets) (non-GAAP) | 3.60% | 3.54% | 3.39% | 3.32% | 3.15% |

---

---

| | | |
|:---|:---|:---|
| | **For the Nine Months Ended:** | **For the Nine Months Ended:** |
| **NET INTEREST INCOME**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**AND NET INTEREST MARGIN**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **September 30,**<br>**2024** |
| Net interest income before |  |  |
| credit losses on loans (GAAP) | $134953 | $117698 |
| Tax-equivalent adjustment on securities - exempt from Federal tax | 168 | 179 |
| Net interest income, FTE (non-GAAP) | $135121 | $117877 |
| Average balance of total interest earning assets | $5147630 | $4909240 |
| Net interest margin (annualized net interest income divided by the |  |  |
| average balance of total interest earnings assets) (GAAP) | 3.51% | 3.22% |
| Net interest margin, FTE (annualized net interest income, FTE, divided by the |  |  |
| average balance of total interest earnings assets) (non-GAAP) | 3.51% | 3.23% |

---

Management views its PPNR as a key metric for assessing the Company's earnings power. The following table summarizes the

components of PPNR for the periods indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** |
| <br>**PRE-PROVISION NET REVENUE**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| Net interest income before credit losses on loans | $46788 | $44805 | $43360 | $43595 | $39329 |
| Noninterest income | 3217 | 2977 | 2696 | 2775 | 2826 |
| Total revenue | 50005 | 47782 | 46056 | 46370 | 42155 |
| Less: Noninterest expense | (29026) | (38335) | (29456) | (30304) | (27555) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reported PPNR (GAAP) | 20979 | 9447 | 16600 | 16066 | 14600 |
| Add: pre-tax legal settlement and other charges |  | 9184 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted PPNR (non-GAAP) | $20979 | $18631 | $16600 | $16066 | $14600 |

---

---

| | | |
|:---|:---|:---|
| | **For the Nine Months Ended:** | **For the Nine Months Ended:** |
| <br>**PRE-PROVISION NET REVENUE**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **September 30,**<br>**2024** |
| Net interest income before credit losses on loans | $134953 | $117698 |
| Noninterest income | 8890 | 8328 |
| Total revenue | 143843 | 126026 |
| Less: Noninterest expense | (96817) | (83279) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reported PPNR (GAAP) | 47026 | 42747 |
| Add: pre-tax legal settlement and other charges | 9184 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted PPNR (non-GAAP) | $56210 | $42747 |

---

The efficiency ratio, which is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest

income), measures how much it costs to produce one dollar of revenue. The following tables summarize components of the efficiency

ratio of the Company for the periods indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** | **For the Quarter Ended:** |
| **NONINTEREST EXPENSE AND**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EFFICIENCY RATIO**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| Reported noninterest expense (GAAP) | $29026 | $38335 | $29456 | $30304 | $27555 |
| Less: pre-tax legal settlement and other charges |  | (9184) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted noninterest expense (non-GAAP) | $29026 | $29151 | $29456 | $30304 | $27555 |
| Net interest income before credit losses on loans | $46788 | $44805 | $43360 | $43595 | $39329 |
| Noninterest income | 3217 | 2977 | 2696 | 2775 | 2826 |
| Total revenue | $50005 | $47782 | $46056 | $46370 | $42155 |
| Reported efficiency ratio (noninterest expense divided |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;by total revenue) (GAAP) | 58.05% | 80.23% | 63.96% | 65.35% | 65.37% |
| Adjusted efficiency ratio (adjusted noninterest expense  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;divided by total revenue) (non-GAAP) | 58.05% | 61.01% | 63.96% | 65.35% | 65.37% |

---

---

| | | |
|:---|:---|:---|
| | **For the Nine Months Ended:** | **For the Nine Months Ended:** |
| **NONINTEREST EXPENSE AND**<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**EFFICIENCY RATIO**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **September 30,**<br>**2024** |
| Reported noninterest expense (GAAP) | $96817 | $83279 |
| Less: pre-tax legal settlement and other charges | (9184) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted noninterest expense (non-GAAP) | $87633 | $83279 |
| Net interest income before credit losses on loans | $134953 | $117698 |
| Noninterest income | 8890 | 8328 |
| Total revenue | $143843 | $126026 |
| Reported efficiency ratio (noninterest expense divided |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by total revenue) (GAAP) | 67.31% | 66.08% |
| Adjusted efficiency ratio (adjusted noninterest expense |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;divided by total revenue) (non-GAAP) | 60.92% | 66.08% |

---

Management considers the tangible common equity ratio as a useful measurement of the Company's and the Bank's equity. The

following table summarizes components of the tangible common equity to tangible assets ratio of the Company at the dates indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| **Heritage Commerce Corp:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital components: |  |  |  |  |  |
| Total equity (GAAP) | $700010 | $694704 | $696190 | $689727 | $685352 |
| Less: preferred stock |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total common equity | 700010 | 694704 | 696190 | 689727 | 685352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: goodwill | (167631) | (167631) | (167631) | (167631) | (167631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: other intangible assets | (5078) | (5532) | (5986) | (6439) | (6966) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total tangible common equity (non-GAAP) | $527301 | $521541 | $522573 | $515657 | $510755 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset components: |  |  |  |  |  |
| Total assets (GAAP) | $5623720 | $5467237 | $5514255 | $5645006 | $5551596 |
| Less: goodwill | (167631) | (167631) | (167631) | (167631) | (167631) |
| Less: other intangible assets | (5078) | (5532) | (5986) | (6439) | (6966) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total tangible assets (non-GAAP) | $5451011 | $5294074 | $5340638 | $5470936 | $5376999 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tangible common equity / tangible assets (non-GAAP) | 9.67% | 9.85% | 9.78% | 9.43% | 9.50% |

---

The following table summarizes components of the tangible common equity to tangible assets ratio of the Bank at the dates indicated:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS**<br>**(in $000's, unaudited)** | **September 30,**<br>**2025** | **June 30,**<br>**2025** | **March 31,**<br>**2025** | **December 31,**<br>**2024** | **September 30,**<br>**2024** |
| **Heritage Bank of Commerce:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital components: |  |  |  |  |  |
| Total Equity (GAAP) | $724780 | $717103 | $715605 | $709379 | $704585 |
| Less: Preferred Stock |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Common Equity | 724780 | 717103 | 715605 | 709379 | 704585 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Goodwill | (167631) | (167631) | (167631) | (167631) | (167631) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Other Intangible Assets | (5078) | (5532) | (5986) | (6439) | (6966) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Tangible Common Equity (non-GAAP) | $552071 | $543940 | $541988 | $535309 | $529988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset components: |  |  |  |  |  |
| Total Assets (GAAP) | $5620681 | $5464618 | $5512160 | $5641646 | $5548576 |
| Less: Goodwill | (167631) | (167631) | (167631) | (167631) | (167631) |
| Less: Other Intangible Assets | (5078) | (5532) | (5986) | (6439) | (6966) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Tangible Assets (non-GAAP) | $5447972 | $5291455 | $5338543 | $5467576 | $5373979 |
| &nbsp;&nbsp;&nbsp;&nbsp;Tangible common equity / tangible assets (non-GAAP) | 10.13% | 10.28% | 10.15% | 9.79% | 9.86% |

---

## Exhibit 99.2

![](a3q2025investorslides001.jpg)

Investor Presentation Third Quarter 2025 Exhibit 99.2

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![](a3q2025investorslides002.jpg)

Forward Looking Statement Disclaimer and Basis of Presentation • This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Heritage Bank (the "Bank") and its holding company, Heritage Commerce Corp (the "Company"). Forward-looking statements are based on management's knowledge, assumptions and beliefs as of today and include information concerning the possible or assumed future financial condition, results of operations, business and earnings outlook for the Company and the Bank. These forward-looking statements are subject to risks and uncertainties. For a discussion of risk factors which could cause results to differ, please see the Company's reports on Forms 10-K and 10-Q as filed with the Securities and Exchange Commission and the Company's press releases. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. • Financial results are presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company's performance. These measures include "adjusted" operating metrics that have been adjusted to exclude notable expenses incurred in the second quarter of 2025 as well as other performance measures and ratios adjusted for notable items. Management believes these non-GAAP financial measures enhance comparability between periods and in some instances are common in the banking industry. These non-GAAP financial measures should be supplemental to primary GAAP financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures are also presented in the Company's third quarter earnings release, which is available on the Company's website at https://heritagecommercecorp.com. 2

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![](a3q2025investorslides003.jpg)

Overview of Heritage Commerce Bank 3 • Northern California's premier relationship-focused business bank • Offering a wide range of tailored financial solutions including business loans, treasury management and online banking • Specialty businesses focused on HOAs, non-profits, SBA and factoring • Low-cost deposit base, well diversified loan portfolio, strong asset quality, and high levels of capital and liquidity • Strong management team with deep experience from "best-in- class" financial institutions • Well positioned to continue increasing market share, adding clients, and generating profitable growth

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![](a3q2025investorslides004.jpg)

Heritage Commerce Corp Profile • History: • Heritage Bank of Commerce, recently celebrated its 30th anniversary as a community business bank headquartered in San Jose, California. The bank was founded in 1994. • Relationship Banking: • We offer a full range of banking using a "consultative" relationship banking approach. • Customer Clientele: • Small to medium-sized closely held businesses (and their principals and key employees) • Professional organizations • High net worth individuals • Non-profits • Specialty Expertise: • Cash Management • Construction Lending • Corporate Finance/Asset-Based Lending • Factoring • Homeowner Association Services ("HOA") • Non-profit organizations, schools, and churches • Small Business Administration ("SBA") Lending Honors / Awards: • Recognized on Forbes' List of World's Best Banks 2024 • Ranked 25th on S&P Global Market Intelligence's Top 50 list of best- performing community banks 2024 • In May 2024, Kroll Bond Rating Agency, LLC ("KBRA") affirmed the Company's senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 • Earned the Raymond James Community Bankers Cup for 2022-2024, which recognizes the top 10% of community banks in the nation based on profitability, operational efficiency and balance sheet metrics 4

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![](a3q2025investorslides005.jpg)

Management Team Robertson Clay Jones President and Chief Executive Officer Chris Edmonds-Waters Executive Vice President Chief People & Culture Deborah K. Reuter Executive Vice President Chief Risk Officer Janisha Sabnani Executive Vice President General Counsel Sachin Vaidya Executive Vice President Chief Information Officer Karol Watson Executive Vice President Branch Operations Tom Sa Executive Vice President Chief Operating Officer Glen E. Shu Executive Vice President President, Specialty Finance Group Dustin Warford Executive Vice President Chief Banking Officer Mr. Jones, Mr. Fonti, Ms. Reuter, Mr. Sa, and Ms. Sabnani are officers of the Company and the Bank 5 Seth Fonti Executive Vice President Chief Financial Officer Susan Just Executive Vice President Chief Credit Officer

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![](a3q2025investorslides006.jpg)

Our community market is one of the most robust and liquid in the US… 6 Nation Leading Demographics Lowest unemployment in nation; AI stimulus expanding in region Deep and liquid markets Remains one of the most liquid markets in the nation; with ongoing backdrop of growth and expansion As the Big get Bigger Significant white space to grow business given lack of "Pure Regional" and growth of Big 5 148,036 130,730 72,275 2023 San Jose-Sunnyvale-Santa Clara CA (MSA) (1) San Francisco-Oakland-Berkeley CA (MSA) (2) United States (Metro) (4) Per Capita Income Employment Unemployment Rate, as of August 2025 (3) Santa Clara County 4.6% San Francisco County 4.3% San Mateo County 4.1% Alameda County 5.1% Contra Costa County 5.2% State of California 5.8% Economic and Demographic data footnotes: (1) Source: U.S. Bureau of Economic Analysis. Data for the year ended December 31, 2023 (2) Source: U.S. Bureau of Economic Analysis. Data for the year ended December 31, 2023 (3) Source: California Employment Development Department (data not seasonally adjusted) (4) Source: U.S. Bureau of Economic Analysis. Data for the year ended December 31, 2023 (5) Source: S&P Capital IQ (5)

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![](a3q2025investorslides007.jpg)

• Loans held-for-investment ("HFI") were $3.6 billion at September 30, 2025, up $47.3 million or 1%. Loan yields increased 1 basis points on a linked quarter basis. • New securities purchases combined with maturities of low-yield Treasurys increased the securities portfolio yield by 6 basis points for the quarter. • Fully Tax Equivalent ("FTE") net interest margin(1) of 3.60%, an increase from 3.54%, on positive trends in both loan yields and deposit costs. • Total deposits of $4.8 billion, up $149.2 million, or 3%. The Bank's loan-to-deposit ratio decreased to 74.99% from 76.38% on a linked quarter basis. • Asset quality was strong and improving with nonperforming loans at $3.66 million, or 0.10% of total loans, while the allowance for credit losses on loans to total loans was 1.38% at quarter-end. • Liquidity and available lines of credit remain robust at $3.3 billion. Third Quarter 2025 Operating Highlights (1) This is a non-GAAP financial measure as defined and discussed under "Non-GAAP Financial Measures" in our third quarter 2025 earnings press release. 7 Operating Highlights $14.7 million Net income $21.0 million Pre-Provision Net Revenue $0.24 Diluted Earnings per Share 1.05% Return on Average Assets 11.14% Return on Avg. Tangible Common Equity (1)

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![](a3q2025investorslides008.jpg)

Diversified Loan Portfolio – as of September 30, 2025 Industrial, 23% (9% of loans) Retail, 31% (12% of Loans) Office, 28% (11% of loans) Mixed-Use, Special Purpose, 18% (7% of loans) Non-Owner Commercial Real Estate ("CRE") Loans $1.4 Billion $523 M Commercial 15% $1,417 M CRE Non-Owner Occupied 39% $630 M CRE Owner Occupied 18% $137 M Land & Construction 4% $859 M Residential RE 24% $15 M Consumer and other Less than 1% $3.6 Billion 8

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![](a3q2025investorslides009.jpg)

Credit Quality at a Glance – as of September 30, 2025 ✓ACLL of $49.4 million represents 8x NPAs and 1.4x of Classified Assets ✓ ACLL 1.38% of gross loans ✓ NPAs totaled $3.7 million on 9 loans and 6 relationships ✓ Classified assets totaled $34.6 million, or 0.62% of total assets ✓ No Owner-Occupied CRE loans in NPAs ✓ No foreclosed assets on the balance sheet 6% Classified Assets / Tier 1 Capital & Allowance for Credit Losses on Loans ("ACLL") 0.07% Nonperforming Assets ("NPAs") / Total Assets 0.04% Net Recoveries / Average Loans For the Quarter 9

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![](a3q2025investorslides010.jpg)

Credit Quality Key Trends ($ in thousands) 10 0 5,000 10,000 15,000 20,000 25,000 2020 2021 2022 2023 2024 2025Q2 2025Q3 Delinquent Loans Commercial Loans Consumer Loans Const Develop Loans Real Estate Loans 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2020 2021 2022 2023 2024 2025Q2 2025Q3 Nonaccrual Loans Commercial Loans Consumer Loans Const Develop Loans Real Estate Loans

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![](a3q2025investorslides011.jpg)

Allowance for Credit Losses ACLL as of September 30, 2025 Total: $49.4M Percent of Loans: 1.38% Percent of NPAs: 1,350% Percent of Classified: 143% 11 7,158 7,667 6,312 6,178 3,662 25,451 33,994 33,722 31,347 30,971 0 % 200 % 400 % 600 % 800 % 1,000 % 1,200 % 1,400 % 0 10,000 20,000 30,000 40,000 50,000 60,000 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 Allowance Coverage Trend Total nonperforming assets Other classified assets Allowance for credit losses on loans Allowance to nonperforming loans (right axis)

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![](a3q2025investorslides012.jpg)

Demand, noninterest- bearing 26% Demand, interest-bearing 19% Savings and money market 28% ICS and CDARS \* 21% Time 6% Total Cost of Deposits of 1.50% Total Deposits – as of September 30, 2025 • Total deposits were $4.8 billion, compared to $4.6 billion at June 30, 2025, an increase of 3% • Noninterest bearing deposits represent 26% of total deposits, compared to 25% last quarter • Deposit accounts numbered 25,337 at September 30, 2025, with an average balance of $188,521 Total Deposits: $4.8 Billion \* ICS is Client Reciprocal Insured Cash Sweep; CDARS = Client Reciprocal Certificate of Deposit Account Registry Service 12 Deposit Costs - 3rd Quarter 2025 Average Average Balance Rate Demand, noninterest-bearing $1,187 Demand, interest-bearing 933 0.62 % Savings and money market 1,340 2.50 % Time deposits 244 3.28 % ICS/CDARS - NMD and Time 983 2.36 % Total interest-bearing 3,500 2.01 % Total deposits 4,687 1.50 %

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![](a3q2025investorslides013.jpg)

Net Interest Drivers $3,336 $3,380 $3,410 $3,492 $3,487 $3,535 $3,582 5.44% 5.49% 5.42% 5.53% 5.52% 5.64% 5.65% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Loans Held for Investment and Yield Loans HFI Yield $1,041 $894 $842 $846 $948 $868 $953 2.42% 2.38% 2.27% 2.27% 2.58% 2.85% 2.91% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Securities Portfolio and FTE Yield Total Investments FTE Yield $4,445 $4,445 $4,730 $4,820 $4,683 $4,627 $4,777 1.56% 1.75% 1.84% 1.66% 1.54% 1.54% 1.50% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Deposits and Cost Total Deposits Cost $3,203 $3,259 $3,457 $3,606 $3,555 $3,476 $3,535 2.00% 2.00% 2.00% 2.00% 2.05% 2.04% 2.01% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Interest Bearing Deposits and Cost Interest Bearing Deposits Cost Balances period-end, dollars in millions 13 Earning asset yields continue to rise against the favorable deposit cost backdrop. This, combined with stabilizing levels of non- interest bearing deposits has helped bolster the NIM inflection

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![](a3q2025investorslides014.jpg)

Consistent Returns to Shareholders Strong Dividends Stabilize Returns for Equity Holders Dividend Yield as of October 14, 2025: 5.2% $6.54 $6.57 $6.91 $7.46 $8.12 $8.41 $8.61 $0.52 $0.52 $0.52 $0.52 $0.52 $0.39 2020 YTD Q3 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 YTD Q3 Tangible Book Value Per Share (1) and Dividends Tangible Book Value Per Share (1) Dividends 14 (1) This is a non-GAAP financial measure 5 years: TBV add - $2.07 Dividends - $2.60

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![](a3q2025investorslides015.jpg)

Positioned for Continued Growth • Small to medium-sized business customer relationship focus in vibrant economic geography • Competitive loan and deposit/cash management products catering to businesses • Diversified specialty business units • Highly experienced management team throughout the company • Solid capital and liquidity management • 15.1% total capital ratio calculated using Basel III regulatory requirements at September 30, 2025 • 75% loan-to-deposit ratio at September 30, 2025 • Quarterly common dividend of $0.13 per share in the third quarter of 2025 • Excellent locations and markets with solid market share among community banks • 16 branch locations • San Jose-Sunnyvale-Santa Clara and San Francisco-Oakland-Berkeley MSA's are first and second in the state of California with highest median household income and per capita income • The Bay Area counties the Bank operates in are ranked the highest in California for personal income 15

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![](a3q2025investorslides016.jpg)

Long-Term Strategic Goals Drive Operating Leverage to enhance profitability Focus on high-quality loan and deposit growth Scale via organic growth and acquisitions to gain efficiency Grow non-interest income through best-in-class service levels Invest in talent and emerging technology A disciplined and strategic approach to delivering value long-term 16

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![](a3q2025investorslides017.jpg)

For more information email: InvestorRelations@herbank.com 17

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## Exhibit 99.3

**Exhibit 99.3**

Heritage Commerce Corp

224 Airport Parkway

San Jose, CA 95110

<u>www.heritagecommercecorp.com</u>

**Heritage Commerce Corp Declares Regular Quarterly Cash Dividend of $0.13 Per Share**

San Jose, CA — October 23, 2025 — **Heritage Commerce Corp (Nasdaq: HTBK),** the holding company for Heritage Bank of

Commerce, today announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders

of its common stock. The dividend will be payable on November 20, 2025, to shareholders of record at the close of the business day

on November 6, 2025. Heritage Commerce Corp has paid a cash dividend each quarter since 2013.

\*\*\*

**Heritage Commerce Corp**, a bank holding company established in October 1997, is the parent company of Heritage Bank of

Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Hollister,

Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo,

San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of

Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various

industries throughout the United States. For more information, please visit <u>www.heritagecommercecorp.com</u>. The contents of our

website are not incorporated into, and do not form a part of, this release or of our filings with the Securities and Exchange

Commission.

Member FDIC

**For additional information, email:**

InvestorRelations@herbank.com