Heritage merce p(HTBK) - 2025 Q2 - Quarterly Report

Cautionary Note on Forward-Looking Statements Cautionary Note Regarding Forward-Looking Statements This section highlights forward-looking statements, subject to risks and uncertainties that may cause actual results to differ materially - The report contains forward-looking statements, which are not historical facts and are based on current expectations and projections about future events[8] - Actual results could differ materially from projected results due to various risks and uncertainties, including cybersecurity, personnel retention, market/sociopolitical factors, and operational issues[9][11] Part I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements (unaudited) This section presents unaudited consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes on accounting policies and financial components Consolidated Balance Sheets Consolidated Balance Sheet Data | Metric | June 30, 2025 (Thousands) | December 31, 2024 (Thousands) | |:---|:---|:---| | Assets ||| | Total cash and cash equivalents | $721,792 | $968,123 | | Securities available-for-sale, at fair value | $307,035 | $256,274 | | Securities held-to-maturity, at amortized cost | $561,205 | $590,016 | | Loans, net | $3,485,700 | $3,442,984 | | Total assets | $5,467,237 | $5,645,006 | | Liabilities ||| | Total deposits | $4,627,334 | $4,820,031 | | Total liabilities | $4,772,533 | $4,955,279 | | Shareholders' Equity ||| | Total shareholders' equity | $694,704 | $689,727 | | Total liabilities and shareholders' equity | $5,467,237 | $5,645,006 | - Total assets decreased by $177.769 million (-3.15%) from December 31, 2024, to June 30, 2025[13] - Total deposits decreased by $192.697 million (-3.99%) from December 31, 2024, to June 30, 2025[13] Consolidated Statements of Income Consolidated Income Statement Data | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | |:---|:---|:---|:---|:---|\ | Total interest income | $63,025 | $58,489 | $124,857 | $115,450 | | Total interest expense | $18,220 | $19,622 | $36,692 | $37,080 | | Net interest income before provision for credit losses on loans | $44,805 | $38,867 | $88,165 | $78,370 | | Provision for credit losses on loans | $516 | $471 | $790 | $655 | | Total noninterest income | $2,977 | $2,864 | $5,673 | $5,501 | | Total noninterest expense | $38,335 | $28,188 | $67,791 | $55,724 | | Net income | $6,389 | $9,234 | $18,015 | $19,400 | | Basic earnings per common share | $0.10 | $0.15 | $0.29 | $0.32 | | Diluted earnings per common share | $0.10 | $0.15 | $0.29 | $0.32 | - Net income for the three months ended June 30, 2025, decreased by $2.845 million (-30.81%) compared to the same period in 2024[15] - Diluted EPS for the three months ended June 30, 2025, decreased by $0.05 (-33.33%) compared to the same period in 2024[15] Consolidated Statements of Comprehensive Income Consolidated Comprehensive Income Data | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | |:---|:---|:---|:---|:---|\ | Net income | $6,389 | $9,234 | $18,015 | $19,400 | | Change in unrealized gains on securities and I/O strips, net of deferred income taxes | $1,885 | $907 | $3,239 | $1,083 | | Change in pension and other benefit plan liability, net of deferred income taxes | $(56) | $(34) | $(112) | $(68) | | Other comprehensive income | $1,829 | $873 | $3,127 | $1,015 | | Total comprehensive income | $8,218 | $10,107 | $21,142 | $20,415 | - Total comprehensive income for the three months ended June 30, 2025, decreased by $1.889 million (-18.69%) compared to the same period in 2024[17] Consolidated Statements of Changes in Shareholders' Equity Consolidated Shareholders' Equity Data | Metric | January 1, 2025 (Thousands) | June 30, 2025 (Thousands) | January 1, 2024 (Thousands) | June 30, 2024 (Thousands) | |:---|:---|:---|:---|:---|\ | Common Stock | $510,070 | $509,888 | $506,539 | $508,343 | | Retained Earnings | $187,762 | $189,794 | $179,092 | $182,571 | | Accumulated Other Comprehensive Income (Loss) | $(8,105) | $(4,978) | $(12,730) | $(11,715) | | Total Shareholders' Equity | $689,727 | $694,704 | $672,901 | $679,199 | - Total shareholders' equity increased by $4.977 million (0.72%) from January 1, 2025, to June 30, 2025[20] - Cash dividends declared were $0.13 per share for both the first and second quarters of 2025, totaling $7.987 million and $7.996 million respectively[20] Consolidated Statements of Cash Flows Consolidated Cash Flow Data | Metric | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | |:---|:---|:---|\ | Net cash provided by operating activities | $22,836 | $17,847 | | Net cash (used in) provided by investing activities | $(59,589) | $171,610 | | Net cash (used in) provided by financing activities | $(209,578) | $50,674 | | Net (decrease) increase in cash and cash equivalents | $(246,331) | $240,131 | | Cash and cash equivalents, end of period | $721,792 | $648,260 | - Net cash used in investing activities significantly increased to $(59.589) million for the six months ended June 30, 2025, compared to $171.610 million provided in the same period of 2024, primarily due to purchases of available-for-sale securities[22] - Net cash used in financing activities was $(209.578) million for the six months ended June 30, 2025, a substantial change from $50.674 million provided in the same period of 2024, driven by a net decrease in deposits and common stock repurchases[22] [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%