Heritage Financial (HFWA)

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Heritage Financial (HFWA) - 2024 Q1 - Quarterly Results
2024-04-25 21:47
FOR IMMEDIATE RELEASE DATE: April 25, 2024 HERITAGE FINANCIAL ANNOUNCES FIRST QUARTER 2024 RESULTS AND DECLARES REGULAR CASH DIVIDEND Olympia, WA - Heritage Financial Corporation (NASDAQ GS: HFWA) (the "Company" or "Heritage"), the parent company of Heritage Bank (the "Bank"), today reported net income of $5.7 million for the first quarter of 2024 compared to $6.2 million for the fourth quarter of 2023 and $20.5 million for the first quarter of 2023. Diluted earnings per share for the first quarter of 2024 ...
Here's What Key Metrics Tell Us About Heritage Financial (HFWA) Q1 Earnings
Zacks Investment Research· 2024-04-25 15:00
For the quarter ended March 2024, Heritage Financial (HFWA) reported revenue of $48.63 million, down 28.6% over the same period last year. EPS came in at $0.40, compared to $0.58 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $59.87 million, representing a surprise of -18.77%. The company delivered an EPS surprise of -2.44%, with the consensus EPS estimate being $0.41.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...
Heritage Financial Announces Earnings Release Date and Conference Call
Prnewswire· 2024-04-02 17:01
OLYMPIA, Wash., April 2, 2024 /PRNewswire/ -- Heritage Financial Corporation ("Company" or "Heritage") (Nasdaq: HFWA) anticipates issuing its first quarter earnings release on Thursday, April 25, 2024 before the market opens. The Company has scheduled a telephone conference call to discuss the first quarter earnings on Thursday, April 25, 2024 at 10:00 a.m. Pacific time (1:00 p.m. Eastern time). To access the conference call, call the numbers listed below:Live Conference Call (833) 470- ...
Heritage Financial (HFWA) - 2023 Q4 - Annual Report
2024-02-27 19:55
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-29480 HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Washington 9 ...
Heritage Financial (HFWA) - 2023 Q4 - Earnings Call Presentation
2024-01-25 21:25
Average Interest Earning Assets Composition 37 ROAE (GAAP) and ROATCE (non-GAAP) Net Income (GAAP) and PTPP Income (nonGAAP), in millions 38 14% Tier 1 Leverage Ratio LIQUIDITY POSITION Liquidity Sources – At fair value – Includes FHLB borrowing availability of $1.42 billion at December 31, 2023 based on pledged assets, however, maximum credit capacity is 45% of the Bank's total assets one quarter in arrears or $3.22 billion Ticker HFWA Exchange NASDAQ Stock price $20.63 Market capitalization (in millions) ...
Heritage Financial (HFWA) - 2023 Q3 - Quarterly Report
2023-11-08 22:58
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-29480 HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Was ...
Heritage Financial (HFWA) - 2023 Q3 - Earnings Call Presentation
2023-10-19 19:21
FORWARD LOOKING STATEMENTS Non-GAAP Financial Information 2 Heritage Branch OVERVIEW Eugene-Springfield, OR Boise–Nampa, Idaho Allocate capital to organically grow our core banking business Improve operational efficiencies and rationalize branch network Closed/Consolidated 36 branches since the beginning of 2010, including 12 branches in 2021 and one branch in 2023. 5 Objective: Invest in technologies that enable Community Banking @ Scale TECHNOLOGY INNOVATION Build Commercial Loans 360 (CL360) • Streamline ...
Heritage Financial (HFWA) - 2023 Q2 - Quarterly Report
2023-08-04 19:42
PART I. FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Heritage Financial Corporation's unaudited condensed consolidated financial statements as of June 30, 2023, including statements of financial condition, income, comprehensive income, stockholders' equity, and cash flows, with detailed notes on accounting policies and financial specifics [Condensed Consolidated Statements of Financial Condition](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20CONDITION) Total assets increased to **$7.12 billion** from **$6.98 billion** at year-end 2022, driven by a **$197.1 million** rise in net loans receivable, funded by **$450 million** in new borrowings and a **$329.3 million** decrease in deposits, with total stockholders' equity reaching **$819.7 million** Condensed Consolidated Statements of Financial Condition (Unaudited) | (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$7,115,410** | **$6,980,100** | | Cash and cash equivalents | $108,378 | $103,590 | | Total investment securities | $2,030,826 | $2,097,839 | | Loans receivable, net | $4,204,936 | $4,007,872 | | **Total Liabilities** | **$6,295,677** | **$6,182,207** | | Total deposits | $5,595,543 | $5,924,840 | | Borrowings | $450,000 | $0 | | **Total Stockholders' Equity** | **$819,733** | **$797,893** | [Condensed Consolidated Statements of Income](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Net income for Q2 2023 decreased to **$16.8 million** from **$18.6 million** in Q2 2022, primarily due to a **$1.9 million** provision for credit losses and higher noninterest expenses, despite a **$5.8 million** increase in net interest income, with diluted EPS at **$0.48** Key Income Statement Data (Unaudited) | (In thousands, except per share amounts) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net interest income | $55,824 | $50,048 | $115,666 | $96,992 | | Provision for (reversal of) credit losses | $1,909 | $(1,204) | $3,734 | $(4,781) | | Noninterest income | $7,281 | $7,016 | $15,539 | $15,554 | | Noninterest expense | $41,325 | $35,707 | $82,930 | $71,427 | | **Net income** | **$16,846** | **$18,584** | **$37,303** | **$38,341** | | **Diluted earnings per share** | **$0.48** | **$0.52** | **$1.06** | **$1.08** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) These notes provide detailed disclosures on accounting policies and specific financial statement items, covering investment securities, loan portfolios, allowance for credit losses, goodwill impairment, derivative instruments, stockholders' equity, and fair value measurements - The company adopted ASU 2022-02 on January 1, 2023, eliminating TDR guidance and enhancing loan modification disclosures, with no material impact[38](index=38&type=chunk)[40](index=40&type=chunk) - No allowance for credit losses was recorded on investment securities as of June 30, 2023, as fair value declines were due to interest rate changes, not credit deterioration, and the company intends to hold them until recovery[48](index=48&type=chunk)[50](index=50&type=chunk) - A goodwill impairment triggering event occurred in Q2 2023 due to a sustained stock price decline, but a subsequent assessment confirmed no impairment as the reporting unit's fair value exceeded its carrying value[86](index=86&type=chunk) Allowance for Credit Losses on Loans Roll-Forward (Six Months Ended June 30, 2023) | (In thousands) | Amount | | :--- | :--- | | Beginning Balance (Dec 31, 2022) | $42,986 | | Charge-offs | $(458) | | Recoveries | $179 | | Provision for Credit Losses | $3,701 | | **Ending Balance (June 30, 2023)** | **$46,408** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial performance and condition, noting a Q2 2023 net income decrease due to higher credit loss provisions and increased operating expenses, despite strong net interest income growth, covering interest rate impacts, loan/deposit trends, credit quality, liquidity, and capital adequacy [Results of Operations](index=35&type=section&id=RESULTS%20OF%20OPERATIONS) Net income for Q2 2023 was **$16.8 million**, a **9.4%** decrease from Q2 2022, primarily due to a **$3.1 million** swing in credit loss provision and a **$5.6 million** rise in noninterest expense, partially offset by a **$5.8 million** (11.5%) increase in net interest income Net Income Comparison | Period | Net Income (in millions) | Diluted EPS | YoY Change (Net Income) | | :--- | :--- | :--- | :--- | | **Q2 2023** | $16.8 | $0.48 | -9.4% | | Q2 2022 | $18.6 | $0.52 | N/A | | **H1 2023** | $37.3 | $1.06 | -2.7% | | H1 2022 | $38.3 | $1.08 | N/A | [Net Interest Income and Margin Overview](index=36&type=section&id=NET%20INTEREST%20INCOME%20AND%20MARGIN%20OVERVIEW) Net interest income for Q2 2023 increased **11.5%** to **$55.8 million**, with net interest margin expanding **52 basis points** to **3.56%**, driven by a **132 basis point** increase in earning asset yield outpacing a **119 basis point** rise in liability cost Net Interest Margin Analysis (Q2 2023 vs Q2 2022) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $55.8M | $50.0M | +11.5% | | Net Interest Margin | 3.56% | 3.04% | +52 bps | | Yield on Earning Assets | 4.46% | 3.14% | +132 bps | | Cost of Interest-Bearing Liabilities | 1.35% | 0.16% | +119 bps | [Financial Condition Overview](index=43&type=section&id=FINANCIAL%20CONDITION%20OVERVIEW) Total assets grew **1.9%** to **$7.12 billion** at June 30, 2023, with net loans receivable up **4.9%** (**$197.1 million**), total deposits down **5.6%** (**$329.3 million**), and **$450 million** in new borrowings, while stockholders' equity increased **2.7%** to **$819.7 million** - Loans receivable increased by **$200.5 million** (**4.9%**) since year-end, primarily from new commercial and multifamily construction loans, which grew by **$93.0 million** (**43.5%**)[167](index=167&type=chunk) - Total deposits decreased by **$329.3 million** (**5.6%**), mainly from demand accounts due to market liquidity reduction and rate sensitivity, partially offset by a **$133.6 million** increase in certificates of deposit, including **$44.7 million** in brokered deposits[174](index=174&type=chunk) - The company significantly increased borrowings to **$450.0 million** as of June 30, 2023, leveraging the Federal Reserve's Bank Term Funding Program for advantageous terms, with no outstanding borrowings at year-end 2022[177](index=177&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains a strong liquidity position with **$2.75 billion** in total available sources as of June 30, 2023, including FHLB and FRB borrowing capacity, unencumbered securities, and cash, deemed adequate for all foreseeable cash requirements Available Liquidity (June 30, 2023) | Source | Amount (in thousands) | | :--- | :--- | | FRB borrowing availability | $859,730 | | FHLB borrowing availability | $1,216,990 | | Unencumbered investment securities | $872,109 | | Cash and cash equivalents | $108,378 | | Fed funds line availability | $145,000 | | **Total Sources of Liquidity** | **$3,202,207** | | Less: Borrowings outstanding | $(450,000) | | **Total Available Liquidity** | **$2,752,207** | [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, assessed via an income simulation model, which indicates short-term asset sensitivity, projecting a **1.5%** increase in net interest income over the next year in a **+100 basis point** rate shock scenario Net Interest Income Sensitivity Analysis (June 30, 2023) | Rate Shock Scenario | % Change in NII (Year 1) | % Change in NII (Year 2) | | :--- | :--- | :--- | | +200 bps | +2.3% | +2.8% | | +100 bps | +1.5% | +1.7% | | -100 bps | +1.7% | -0.5% | | -200 bps | +1.0% | -3.5% | [Controls and Procedures](index=50&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2023[193](index=193&type=chunk) - No changes occurred during Q2 2023 that materially affected or are reasonably likely to materially affect the company's internal control over financial reporting[194](index=194&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=50&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is not a party to any material pending legal proceedings beyond ordinary routine litigation incidental to its business - The Company and its subsidiary, the Bank, are not involved in any material pending legal proceedings outside of ordinary routine litigation[196](index=196&type=chunk) [Risk Factors](index=50&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes have occurred to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the Company's 2022 Annual Form 10-K[197](index=197&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's common stock repurchases during Q2 2023, totaling **98,458** shares at an average price of **$17.78** per share, with **455,909** shares remaining available under the current plan as of June 30, 2023 Common Stock Repurchases (Q2 2023) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2023 | 69,223 | $18.25 | | May 2023 | 24,727 | $16.51 | | June 2023 | 4,508 | $17.60 | | **Total Q2 2023** | **98,458** | **$17.78** | - As of the end of Q2 2023, **455,909** shares remain available for purchase under the company's twelfth stock repurchase plan, announced on March 12, 2020[199](index=199&type=chunk)
Heritage Financial (HFWA) - 2023 Q2 - Earnings Call Transcript
2023-07-20 20:33
Heritage Financial Corporation (NASDAQ:HFWA) Q2 2023 Earnings Conference Call July 20, 2023 1:00 PM ET Company Participants Jeffrey Deuel - CEO Donald Hinson - CFO Bryan McDonald - President and COO Anthony Chalfant - Chief Credit Officer Conference Call Participants David Feaster - Raymond James Matthew Clark - Piper Sandler Jeffrey Rulis - D.A. Davidson Andrew Terrell - Stephens Inc. Kelly Motta - Keefe, Bruyette, & Woods, Inc. Timothy Coffey - Janney Montgomery Scott LLC Operator Hello, and welcome to ...
Heritage Financial (HFWA) - 2023 Q1 - Quarterly Report
2023-05-04 20:09
Financial Performance - Net income for the three months ended March 31, 2023, increased by $700,000, or 3.5%, to $20.5 million, compared to $19.8 million for the same period in 2022[121] - Income before income taxes rose by $1.3 million, or 5.7%, to $24.7 million for the three months ended March 31, 2023[134] - Effective income tax rate increased to 17.1% for the three months ended March 31, 2023, compared to 15.3% for the same period in 2022[134] - Retained earnings increased by $12.7 million, or 3.7%, to $358.0 million as of March 31, 2023[135] - Total stockholders' equity rose by $28.2 million, or 3.5%, to $826.1 million, driven by $20.5 million in net income[153] Interest Income and Expenses - Net interest income rose by $12.9 million, or 27.5%, to $59.8 million for the three months ended March 31, 2023, primarily due to increased interest earned on interest-earning assets following market interest rate hikes[121] - Total interest income rose by $18.1 million, or 37.2%, to $66.7 million for the three months ended March 31, 2023, driven primarily by increased yields on interest-earning assets[125] - Total interest expense surged by $5.2 million, or 313.5%, to $6.8 million during the three months ended March 31, 2023, due to competitive rate pressures and increased borrowing costs[127] - The net interest margin for the three months ended March 31, 2023, was 3.91%, compared to 2.84% for the same period in 2022[122] - Net interest margin improved by 107 basis points to 3.91% for the three months ended March 31, 2023, compared to 2.84% for the same period in 2022[128] Credit Losses and Provisions - The provision for credit losses for the three months ended March 31, 2023, was $1.8 million, compared to a $3.6 million reversal of provision for credit losses in the same period of 2022[121] - Provision for credit losses on loans increased by $4.2 million, or 167.9%, to $1.7 million for the three months ended March 31, 2023, reflecting an increase in loans receivable[130] - The company may need to record additional provisions for credit losses if future economic conditions deteriorate, as required by the CECL model under ASC 326[120] - Allowance for Credit Losses (ACL) on loans increased by $4.136 million, or 10.3%, to $44.469 million compared to the previous year[143] - The ACL on loans to nonaccrual loans ratio improved significantly from 244.04% to 923.55%, an increase of 278.4%[143] Loans and Receivables - Average loans receivable increased to $4,039,395 thousand with interest earned of $50,450 thousand, yielding 5.07% for the three months ended March 31, 2023[122] - Loans receivable increased by $76.6 million, or 1.9%, to $4.08 billion, with new loans funded amounting to $138.1 million during the first quarter of 2023[138] - Loan yield increased to 5.07% for the three months ended March 31, 2023, up from 4.41% for the same period in 2022[126] - Owner-occupied and non-owner occupied commercial real estate loans totaled $2.5 billion, with office loans representing 22.8% of this segment[140] - The largest increase in the loan portfolio was in commercial and multifamily construction loans, which rose by $56.5 million, or 26.4%[139] Assets and Deposits - Total assets increased by $256.7 million, or 3.7%, to $7.24 billion as of March 31, 2023, primarily due to an increase in cash and cash equivalents and loans receivable[135] - Cash and cash equivalents rose by $197.9 million, or 191.0%, to $301.5 million compared to December 31, 2022[135] - Total deposits decreased by $135.8 million, or 2.3%, to $5.79 billion, reflecting a decrease in customer deposits[135] - Total deposits decreased by $135.8 million, or 2.3%, to $5.789 billion, attributed to competitive pricing pressures and customers moving funds to higher yielding investments[146] - Money market accounts increased by $92.316 million, or 8.7%, reflecting an increase in public deposits[146] Market Conditions and Economic Outlook - The Federal Open Market Committee increased the federal funds rate by a cumulative 475 basis points from March 2022 through March 2023 to combat inflation[119] - The company anticipates potential impacts on loan growth and credit quality due to ongoing economic pressures and inflationary conditions[120] - Management believes capital sources are adequate to meet all reasonably foreseeable cash requirements, with no material changes since the 2022 Annual Form 10-K[160] - Interest rate risk is the primary market risk, with management regularly reviewing exposure to changes in interest rates[166] - The company does not engage in trading activities or high-risk derivative instruments, minimizing exposure to market risks[167] Liquidity and Capital - Total available liquidity as of March 31, 2023, is $3,471,093,000, with net availability of $3,087,993,000[160] - Cash and cash equivalents amount to $301,481,000, while unencumbered investment securities available for sale total $1,116,013,000[160] - The Company maintained a common equity Tier 1 capital ratio of 12.9% as of March 31, 2023, up from 12.8% at the end of 2022[157] - The Bank's available borrowing capacity with the Federal Home Loan Bank was $1.2 billion, with $383.1 million in advances outstanding[148] - The Company has a credit facility with the Federal Reserve Bank with available borrowing capacity of $640.6 million, with no borrowings outstanding[149]