The California commercial bank's Q2 net income and EPS declined year over year due to acquisition expenses.
Net interest income and margin rose sharply, reflecting the impact of the Heritage Commerce acquisition.
The company launched a new share repurchase plan for up to 15 million shares, replacing the prior program.
Outlook and result drivers
The company did not provide specific financial guidance for the current or future periods.
Heritage acquisition - Q2 results were driven by completion of the Heritage Commerce acquisition, which increased loans, deposits and interest-earning assets.
Higher-yielding assets - The addition of higher-yielding loans and factored receivables from Heritage boosted net interest margin.
Acquisition expenses - Noninterest expense surged due to $31.4 million of one-time acquisition costs and integration-related increases.
Key details and analyst coverage
Metric
Actual
Q2 EPS
$0.29
Q2 net income
$48.30 million
Q2 net interest income
$162.40 million
The current average analyst rating on the shares is , with 2 or ratings, 4 ratings and no or ratings.
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