Heritage Commerce Corp’s Ratings Affirmed by KBRA; ROI Declines
San Jose, Calif. - On May 21, 2024, Heritage Commerce Corp, the parent company of Heritage Bank of Commerce, announced that Kroll Bond Rating Agency, LLC (KBRA) has affirmed the company’s ratings. KBRA affirmed the senior unsecured debt rating of BBB+ for Heritage Commerce Corp, along with the subordinated debt rating of BBB and the short-term debt rating of K2. The bank’s deposit and senior unsecured debt ratings were also affirmed at A-, with a subordinated debt rating of BBB+ and short-term deposit and debt ratings of K2. The long-term ratings outlook for both the company and the bank were graded as stable.
Despite the affirmation of ratings, Heritage Commerce Corp experienced a decrease in its return on average invested assets (ROI) in the first quarter of 2024. The ROI for this period stood at 1.05%, below the company’s average ROI of 5.92%. This decline was attributed to a drop in net income.
Within the financial sector, Heritage Commerce Corp ranked lower in terms of ROI compared to 227 other companies. However, there has been progress in the company’s overall ROI ranking. As of March 31, 2024, the company’s ranking improved to 1135 from its previous ranking at 1853 in the fourth quarter of 2023.
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