Slide 1: Investor Presentation Fourth Quarter 2025
Investor Presentation Fourth Quarter 2025 Exhibit 99.2
Slide 2: Forward Looking Statement Disclaimer and Basis of Presentation
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-
Slide 3: Fourth Quarter 2025 Operating Highlights
• Loans held-for-investment (“HFI”) were $3.7 billion at December 31, 2025, up $71.4 million or 2% for the quarter. • New securities purchases combined with maturities of low-yield Treasurys increased the securities portfolio yield by 37 basis points for the quarter. • Fully Tax Equivalent (“FTE”) n
Slide 4: Diversified Loan Portfolio
Diversified Loan Portfolio – as of December 31, 2025 Industrial, 23% (10% of loans) Retail, 30% (13% of Loans) Office, 29% (12% of loans) Mixed-Use, Special Purpose, 18% (8% of loans) Non-Owner Commercial Real Estate (“CRE”) Loans $1.5 Billion $550 M Commercial 15% $1,475 M CRE Non-Owner Occupied 40
Slide 5: Credit Quality at a Glance
Credit Quality at a Glance – as of December 31, 2025 ✓ACLL of $50.0 million represents 18x NPAs and 1.7x of Classified Assets ✓ ACLL 1.37% of gross loans ✓ NPAs totaled $2.8 million on 6 loans and 3 relationships ✓ Classified assets totaled $29.2 million, or 0.51% of total assets ✓ No Owner-Occupied
Slide 6: Credit Quality Key Trends
Credit Quality Key Trends ($ in thousands) 6 0 5,000 10,000 15,000 20,000 25,000 30,000 2020 2021 2022 2023 2024 2025Q3 2025Q4 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 2025Q
Slide 7: Allowance for Credit Losses
Allowance for Credit Losses ACLL as of December 31, 2025 Total: $50.0M Percent of Loans: 1.37% Percent of NPAs: 1,797% Percent of Classified: 171% 7 7,667 6,312 6,178 3,662 2,783 33,994 33,722 31,347 30,971 26,440 0 % 200 % 400 % 600 % 800 % 1,000 % 1,200 % 1,400 % 1,600 % 1,800 % 0 10,000 20,000 30
Slide 8: Total Deposits
Demand, noninterest- bearing 27% Demand, interest-bearing 20% Savings and money market 28% ICS and CDARS * 20% Time 5% Total Cost of Deposits of 1.30% Total Deposits – as of December 31, 2025 • Total deposits were $4.9 billion, compared to $4.8 billion at September 30, 2025, an increase of 3% • Noni
Slide 9: Net Interest Drivers
Net Interest Drivers $3,336 $3,380 $3,410 $3,492 $3,487 $3,535 $3,582 $3,653 5.44% 5.49% 5.42% 5.53% 5.52% 5.64% 5.65% 5.64% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Loans Held for Investment and Yield Loans HFI Yield $1,041 $894 $842 $846 $948 $868 $953 $1,122 2.42% 2.38% 2.27% 2.27% 2.58% 2
Slide 10: Consistent Returns to Shareholders
Consistent Returns to Shareholders Strong Dividends Stabilize Returns for Equity Holders Dividend Yield as of January 12, 2026: 4.20% $6.57 $6.91 $7.46 $8.12 $8.41 $8.74 $0.52 $0.52 $0.52 $0.52 $0.52 $0.52 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY Tangible Book Value Per Share (1) and Dividend
Slide 11: For more information email InvestorRelations@herbank.com
For more information email: InvestorRelations@herbank.com 11
Slide 12: Reconciliation of Non-GAAP Financial Measures Appendix
Reconciliation of Non-GAAP Financial Measures Appendix 12
Slide 13: Non-GAAP Measures: Net Income and Diluted Earnings Per Share
Non-GAAP Measures 13 NET INCOME AND DILUTED EARNINGS PER SHARE (in $000’s, unaudited) Reported net income (GAAP) $ 15,117 $ 14,698 $ 6,389 $ 11,626 $ 10,621 Add: pre-tax legal settlement, merger and other charges 2,067 0 9,184 0 0 Less: related income taxes (15) 0 (2,618) 0 0 Adjusted net income (no
Slide 14: Non-GAAP Measures: Tangible Book Value Per Share
Non-GAAP Measures 14 TANGIBLE BOOK VALUE PER SHARE (in $000’s, unaudited) Capital components: Total equity (GAAP) $ 708,566 $ 700,010 $ 694,704 $ 696,190 $ 689,727 Less: preferred stock — — — — — Total common equity 708,566 700,010 694,704 696,190 689,727 Less: goodwill (167,631) (167,631) (167,631)
Slide 15: Non-GAAP Measures: Return on Average Tangible Common Equity and Assets
Non-GAAP Measures 15 RETURN ON AVERAGE TANGIBLE COMMON EQUITY AND AVERAGE ASSETS (in $000’s, unaudited) Reported net income (GAAP) $ 15,117 $ 14,698 $ 6,389 $ 11,626 $ 10,621 Add: pre-tax legal settlement, merger and other charges 2,067 — 9,184 — — Less: related income taxes (15) — (2,618) — — Adjus
Slide 16: Non-GAAP Measures: Net Interest Income and Net Interest Margin
Non-GAAP Measures 16 NET INTEREST INCOME AND NET INTEREST MARGIN (in $000’s, unaudited) Net interest income before credit losses on loans (GAAP) $ 50,422 $ 46,788 $ 44,805 $ 43,360 $ 43,595 Tax-equivalent adjustment on securities - exempt from Federal tax 53 53 57 58 58 Net interest income, FTE (non
Slide 17: Non-GAAP Measures: Pre-Provision Net Revenue
Non-GAAP Measures 17 PRE-PROVISION NET REVENUE September 30, June 30, December 31, (in $000’s, unaudited) 2025 Net interest income before credit losses on loans $ 50,422 $ 46,788 $ 44,805 $ 43,360 $ 43,595 Noninterest income 3,199 3,217 2,977 2,696 2,775 Total revenue 53,621 50,005 47,782 46,056 46,