Heritage Financial (US:HFWA)2020-10-22 18:04Company Overview - As of October 19, 2020, the company's NASDAQ symbol is HFWA, with a stock price of $2032 and a market capitalization of $7292 million[4] - As of Q3 2020, the company has total assets of $669 billion, deposits of $569 billion, and loans of $467 billion[4] - The company's net income for Q3 2020 was $166 million, with a pre-tax, pre-provision income of $218 million[4] - The company's net interest margin was 338% and the efficiency ratio was 6227%[4] - The Tier 1 Leverage Ratio was 88% and the Total Risk Based Capital Ratio was 134%[4] COVID-19 Response - Approximately 60% of employees have remote capabilities, with 37% being fully remote[5] - The company has implemented loan modification programs and fee waivers for customers[5] - The company has discontinued indirect consumer lending business[5] Company Strategy - The company aims to be the "acquirer of choice" in the Pacific Northwest, targeting an IRR of >15% with earnbacks < 3 years[6] - The company has closed/consolidated 22 branches since the beginning of 2010 and plans to consolidate nine branches, resulting in a 15% decrease in total branch locations[6,23] - The company's noninterest demand deposits represent 350% of total deposits[6] Financial Update - Q3 2020 - Net income was $166 million, or $046 per diluted share[21] - Total deposits increased by $1213 million, or 22%, to $569 billion[22] - The company declared a regular cash dividend of $020 per common share on October 21, 2020[22] Loan Portfolio - SBA PPP Commercial & Industrial loans make up 186% of the loan portfolio composition[24] - Owner-occupied CRE loans make up 184% of the loan portfolio composition[24] - Non-owner Occupied CRE loans make up 297% of the loan portfolio composition[24]