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Heritage Financial Corporation
HERITAGE FINANCIAL ANNOUNCES THIRD QUARTER 2022 RESULTS AND DECLARES REGULAR CASH DIVIDEND
Business
Oct 20 2022
5 min read

HERITAGE FINANCIAL ANNOUNCES THIRD QUARTER 2022 RESULTS AND DECLARES REGULAR CASH DIVIDEND

  • Net income was $21.0 million, or $0.59 per diluted share, for the third quarter of 2022 compared to $18.6 million, or $0.52 per diluted share, for the second quarter of 2022 and $20.6 million, or $0.58 per diluted share, for the third quarter of 2021.
  • Loans receivable grew $127.2 million, or 3.3% (13.0% annualized), in the third quarter of 2022.
  • Net interest income increased $9.2 million, or 18.5%, to $59.3 million for the third quarter of 2022 compared to $50.0 million for the second quarter of 2022.
  • Net interest margin increased to 3.57% for the third quarter of 2022 from 3.04% for the second quarter of 2022 and 3.15% for the third quarter of 2021.
  • Cost of total deposits was unchanged at 0.09% for the third quarter of 2022 from 0.09% for both the second quarter of 2022 and the third quarter of 2021.
  • The ratio of nonperforming assets to total assets decreased to 0.09% at September 30, 2022 compared to 0.14% at June 30, 2022 and 0.36% at September 30, 2021.
  • Declared a regular cash dividend of $0.21 per common share on October 19, 2022.

OLYMPIA, Wash., Oct. 20, 2022 /PRNewswire/ -- Heritage Financial Corporation (NASDAQ GS: HFWA) (the "Company" or "Heritage"), the parent company of Heritage Bank (the "Bank"), today reported net income of $21.0 million for the third quarter of 2022 compared to $18.6 million for the second quarter of 2022 and $20.6 million for the third quarter of 2021. Diluted earnings per share for the third quarter of 2022 were $0.59 compared to $0.52 for the second quarter of 2022 and $0.58 for the third quarter of 2021.

Jeffrey J. Deuel, President and Chief Executive Officer of Heritage, commented, "Results for the third quarter showcase the strengths of our business model which includes a strong balance sheet, prudent risk management and a foundation of stable core deposits. Compared to second quarter of 2022, our net interest income grew 18.5% and net interest margin expanded by 53 basis points as we benefit from higher interest rates on growing earning assets, while our cost of total deposits was unchanged at 0.09%.

Despite a challenging operating environment, we continue to see attractive growth as reflected in the $206.7 million in loans funded and the banking teams we hired in Portland MSA and Eugene markets during the second quarter. We believe Heritage is well positioned to continue to take advantage of opportunities and navigate the economic environment in future periods.

We are proud that Heritage Bank is partnering with Low Income Housing Institute ("LIHI") in constructing 85 new affordable units in Seattle's Central District, to be known as Good Shepherd Housing, as it is being built in partnership with the Lutheran Church of the Good Shepherd. Heritage is providing $17.9 million of construction financing and $19.9 million of low income housing tax credit equity investment. LIHI focuses on permanent supportive housing and services for formerly homeless households and this project will continue to support this mission."

Financial Highlights

The following table provides financial highlights at the dates and for the periods indicated:

As of or for the Quarter Ended

September 30,2022

June 30,2022

September 30,2021

(Dollars in thousands, except per share amounts)

Net income

$          20,990

$          18,584

$          20,592

Pre-tax, pre-provision income (1)

$          27,592

$          21,357

$          22,440

Diluted earnings per share

$               0.59

$               0.52

$               0.58

Return on average assets (2)

1.13 %

1.01 %

1.13 %

Pre-tax, pre-provision return on average assets (1) (2)

1.49 %

1.16 %

1.23 %

Return on average common equity (2)

10.27 %

9.19 %

9.55 %

Return on average tangible common equity (1) (2)

15.20 %

13.68 %

13.93 %

Net interest margin (2)

3.57 %

3.04 %

3.15 %

Cost of total deposits (2)

0.09 %

0.09 %

0.09 %

Efficiency ratio

58.66 %

62.57 %

62.35 %

Noninterest expense to average total assets (2)

2.11 %

1.94 %

2.04 %

Total assets

$     7,200,312

$     7,316,467

$     7,259,038

Loans receivable, net

$     3,959,206

$     3,834,368

$     3,905,567

Total deposits

$     6,237,735

$     6,330,190

$     6,229,017

Loan to deposit ratio (3)

64.1 %

61.2 %

63.5 %

Book value per share

$            22.13

$            22.94

$            24.13

Tangible book value per share (1)

$            15.04

$            15.83

$            16.97

Tangible book value per share, excluding AOCI (1) (4)

$            18.03

$            17.59

$            16.55

(1)

See Non-GAAP Financial Measures section herein.

(2)

Annualized.

(3)

Loans receivable divided by total deposits.

(4)

Accumulated other comprehensive income or loss ("AOCI").

 

Balance Sheet

Cash and cash equivalents decreased $586.7 million, or 59.0%, to $407.3 million at September 30, 2022 from $994.1 million at June 30, 2022 due primarily to increases in investment securities and loans receivable and a decrease in deposits.

The following table provides information regarding our investment securities at the dates indicated:

September 30, 2022

June 30, 2022

Balance

% of

Total

Balance

% of

Total

Change

% Change

(Dollars in thousands)

Investment securities available for sale, at fair value:

U.S. government and agency securities

$         63,749

3.0 %

$         65,668

3.6 %

$         (1,919)

(2.9) %

Municipal securities

185,713

8.7

200,010

11.1 %

(14,297)

(7.1)

Residential CMO and MBS

438,370

20.6

398,156

22.1 %

40,214

10.1

Commercial CMO and MBS

639,441

30.0

493,620

27.4 %

145,821

29.5

Corporate obligations

5,834

0.3

5,978

0.3 %

(144)

(2.4)

Other asset-backed securities

23,035

1.1

24,156

1.3 %

(1,121)

(4.6)

Total

$   1,356,142

63.7 %

$   1,187,588

65.8 %

$       168,554

14.2 %

Investment securities held to maturity, at amortized cost:

U.S. government and agency securities

$       150,948

7.1 %

$       150,960

8.4 %

$               (12)

— %

Residential CMO and MBS

296,432

13.9

159,007

8.8 %

137,425

86.4

Commercial CMO and MBS

325,939

15.3

305,686

17.0 %

20,253

6.6

Total

$       773,319

36.3 %

$       615,653

34.2 %

$       157,666

25.6 %

Total investment securities

$   2,129,461

100.0 %

$   1,803,241

100.0 %

$       326,220

18.1 %

Total investment securities increased $326.2 million, or 18.1%, to $2.13 billion at September 30, 2022 from $1.80 billion at June 30, 2022 due primarily to purchases to deploy excess liquidity into higher yielding, longer duration assets. Purchases were partially offset by a $55.2 million decrease in the fair value of investment securities available for sale as a result of an increase in market interest rates during the three months ended September 30, 2022.

The following table summarizes the Company's loans receivable, net at the dates indicated:

September 30, 2022

June 30, 2022

Change

Balance

% of Total

Balance

% of Total

Amount

%

(Dollars in thousands)

Commercial business:

Commercial and industrial

$       735,028

18.4 %

$       698,828

18.0 %

$         36,200

5.2 %

SBA PPP

3,593

0.1

11,334

0.3

(7,741)

(68.3)

Owner-occupied commercial real estate ("CRE")

959,486

24.0

950,699

24.6

8,787

0.9

Non-owner occupied CRE

1,547,114

38.6

1,515,796

39.1

31,318

2.1

Total commercial business

3,245,221

81.1

3,176,657

82.0

68,564

2.2

Residential real estate

296,019

7.4

265,382

6.9

30,637

11.5

Real estate construction and land development:

Residential

92,297

2.3

90,546

2.3

1,751

1.9

Commercial and multifamily

160,723

4.0

128,060

3.3

32,663

25.5

Total real estate construction and land development

253,020

6.3

218,606

5.6

34,414

15.7

Consumer

207,035

5.2

213,419

5.5

(6,384)

(3.0)

Loans receivable

4,001,295

100.0 %

3,874,064

100.0 %

127,231

3.3

Allowance for credit losses on loans

(42,089)

(39,696)

(2,393)

6.0

Loans receivable, net

$    3,959,206

$    3,834,368

$       124,838

3.3 %

Loans receivable grew $127.2 million, or 3.3% (13.0% annualized), in the third quarter of 2022. New loans funded during the third and second quarter of 2022 were $206.7 million and $242.4 million, respectively, including purchased residential real estate loans of $29.0 million and $27.3 million, respectively. Line of credit utilization increased during the third quarter and loan repayments were lower at $71.6 million during the third quarter of 2022 compared to $136.5 million in the second quarter of 2022, exclusive of SBA PPP loan repayments, net deferred fees, and net acquired discounts.

The following table summarizes the Company's total deposits at the dates indicated:

September 30, 2022

June 30, 2022

Change

Balance

% of Total

Balance

% of Total

Amount

%

(Dollars in thousands)

Noninterest demand deposits

$    2,308,583

37.0 %

$    2,325,139

36.7 %

$        (16,556)

(0.7) %

Interest bearing demand deposits

1,997,989

32.0

1,977,527

31.3

20,462

1.0

Money market accounts

996,214

16.0

1,062,178

16.8

(65,964)

(6.2)

Savings accounts

647,526

10.4

654,577

10.3

(7,051)

(1.1)

Total non-maturity deposits

5,950,312

95.4

6,019,421

95.1

(69,109)

(1.1)

Certificates of deposit

287,423

4.6

310,769

4.9

(23,346)

(7.5)

Total deposits

$    6,237,735

100.0 %

$    6,330,190

100.0 %

$        (92,455)

(1.5) %

Total deposits decreased $92.5 million, or 1.5%, from June 30, 2022. The decrease was due primarily to competitive pricing pressures and customers moving excess funds to alternative higher yielding investments.

Total stockholders' equity decreased $28.7 million during the third quarter of 2022 due to an increased loss in AOCI of $43.2 million following an increase in market interest rates during the quarter, which negatively impacted the fair value of our investment securities available for sale portfolio at September 30, 2022. AOCI has no effect on our regulatory capital ratios as the Company opted to exclude it from our common equity Tier 1 capital calculations.

The Company and Bank continue to maintain capital levels in excess of the applicable regulatory requirements for them both to be categorized as "well-capitalized". The following table summarizes capital ratios for the Company at the dates indicated:

September 30,2022

June 30,2022

Change

Stockholders' equity to total assets

10.8 %

11.0 %

(0.2) %

Tangible common equity to tangible assets (1)

7.6

7.9

(0.3)

Tangible common equity to tangible assets, excluding AOCI (1)

9.0

8.7

0.3

Common equity tier 1 capital ratio (2)

12.8

13.2

(0.4)

Leverage ratio (2)

9.2

8.9

0.3

Tier 1 capital ratio (2)

13.3

13.6

(0.3)

Total capital ratio (2)

14.0

14.4

(0.4)

(1)

See Non-GAAP Financial Measures section herein.

(2)

Current quarter ratios are estimates pending completion and filing of the Company's regulatory reports.

 

Allowance for Credit Losses and Provision for Credit Losses

The following table provides detail on the changes in the allowance for credit losses ("ACL") on loans and the ACL on unfunded commitments ("Unfunded") and the related provision for (reversal of) credit losses for the periods indicated:

As of or for the Quarter Ended

September 30, 2022

June 30, 2022

September 30, 2021

ACL on Loans

ACL on Unfunded

Total

ACL on Loans

ACL on Unfunded

Total

ACL on Loans

ACL on Unfunded

Total

(Dollars in thousands)

Balance, beginning of period

$ 39,696

$          997

$ 40,693

$ 40,333

$      1,552

$ 41,885

$ 51,562

$      2,451

$ 54,013

Provision for (reversal of) credit losses

1,919

26

1,945

(649)

(555)

(1,204)

(2,852)

(297)

(3,149)

Net recoveries (charge-offs)

474

—

474

12

—

12

(393)

—

(393)

Balance, end of period

$ 42,089

$      1,023

$ 43,112

$ 39,696

$          997

$ 40,693

$ 48,317

$      2,154

$ 50,471

The ACL on loans increased compared to June 30, 2022 due primarily to an increase related to the growth in loans receivable  offset partially by a reduction related to loans individually evaluated for losses.

Credit Quality

Nonperforming assets decreased to 0.09% of total assets at September 30, 2022 compared to 0.14% of total assets at June 30, 2022. Nonperforming assets at both September 30, 2022 and June 30, 2022 consisted only of nonaccrual loans. Changes in nonaccrual loans during the periods indicated were as follows:

Quarter Ended

September 30,2022

June 30,2022

September 30,2021

(In thousands)

Balance, beginning of period

$             10,475

$             16,527

$             35,341

Additions

—

720

293

Net principal payments and transfers to accruing status

(4,016)

(5,964)

(8,139)

Payoffs

(225)

(691)

(911)

Charge-offs

—

(117)

(690)

Balance, end of period

$               6,234

$             10,475

$             25,894

Nonaccrual loans declined during the third quarter of 2022 due primarily to the transfer of one owner occupied CRE loan relationship totaling $3.4 million back to accrual status.

Net Interest Income and Net Interest Margin

Net interest income increased $9.2 million, or 18.5%, compared to the second quarter of 2022 and increased $7.9 million, or 15.4%, compared to the third quarter of 2021 due primarily to an increase in yields earned on interest earning assets following increases in market interest rates. The yield on interest earning assets increased to 3.68% as compared to 3.14% in the second quarter of 2022 and 3.25% in the third quarter of 2021. SBA PPP interest and fee income decreased $1.5 million compared to the second quarter of 2022 and decreased $7.8 million compared to the third quarter of 2021.

The following table presents the loan yield and the impact of SBA PPP loans and the incremental accretion on purchased loans on this financial measure for the periods presented below:

Quarter Ended

September 30,2022

June 30,2022

September 30,2021

Loan yield (GAAP)

4.51 %

4.30 %

4.64 %

Exclude impact from SBA PPP loans

(0.02)

(0.15)

(0.38)

Exclude impact from incremental accretion on purchased loans

(0.05)

(0.03)

(0.07)

Loan yield, excluding SBA PPP loans and incremental accretion on purchased loans (non-GAAP) (1)

4.44 %

4.12 %

4.19 %

(1)   

See Non-GAAP Financial Measures section.

Net interest margin increased to 3.57% for the third quarter of 2022 as compared to 3.04% for the second quarter of 2022 and 3.15% for the third quarter of 2021 due to a shift into higher yielding interest earning assets as well as higher average yields on all interest earning assets excluding the impact from SBA PPP loans.

Noninterest Income

The following table presents the key components of noninterest income and the change for the periods indicated:

Quarter Ended

Quarter Over Quarter Change

Prior Year Quarter Change

September 30,2022

June 30,2022

September 30,2021

Change

% Change

Change

% Change

(Dollar amounts in thousands)

Service charges and other fees

$               2,688

$               2,577

$               2,400

$     111

4.3 %

$     288

12.0 %

Card revenue

2,365

2,146

2,150

219

10.2

215

10.0

Gain on sale of loans, net

133

219

765

(86)

(39.3)

(632)

(82.6)

Interest rate swap fees

78

26

126

52

200.0

(48)

(38.1)

Bank owned life insurance income

723

764

647

(41)

(5.4)

76

11.7

Gain on sale of other assets, net

265

—

942

265

—

(677)

(71.9)

Other income

1,201

1,284

1,198

(83)

(6.5)

3

0.3

Total noninterest income

$               7,453

$               7,016

$               8,228

$     437

6.2 %

$    (775)

(9.4) %

Noninterest income increased from the second quarter of 2022 due mostly to gain on sale of branches held for sale as well as increased card revenue.

Noninterest income decreased from the same period in 2021 due primarily to reduced gain on sale of loans, net as sales volume of secondary market mortgage loans declined and secondarily due to a higher gain on sale of branches held for sale recognized during the third quarter of 2021.

Noninterest Expense

The following table presents the key components of noninterest expense and the change for the periods indicated:

Quarter Ended

Quarter Over Quarter Change

Prior Year Quarter Change

September 30,2022

June 30,2022

September 30,2021

Change

% Change

Change

% Change

(Dollar amounts in thousands)

Compensation and employee benefits

$             24,206

$             21,778

$             21,963

$  2,428

11.1 %

$  2,243

10.2 %

Occupancy and equipment

4,422

4,171

4,373

251

6.0

49

1.1

Data processing

4,185

4,185

4,029

—

—

156

3.9

Marketing

358

344

486

14

4.1

(128)

(26.3)

Professional services

639

529

776

110

20.8

(137)

(17.7)

State/municipal business and use tax

963

867

1,071

96

11.1

(108)

(10.1)

Federal deposit insurance premium

500

425

550

75

17.6

(50)

(9.1)

Amortization of intangible assets

671

704

758

(33)

(4.7)

(87)

(11.5)

Other expense

3,203

2,704

3,160

499

18.5

43

1.4

Total noninterest expense

$             39,147

$             35,707

$             37,166

$  3,440

9.6 %

$  1,981

5.3 %

Noninterest expense increased from the second quarter of 2022 and the same period in 2021 due primarily to an increase in compensation and employee benefits due to an increase in the number of full-time equivalent employees including the addition of commercial and relationship banking teams in the second quarter of 2022, an increase in salaries and wages effective July 1, 2022 due to upward market pressure and an increase in accrual for incentive compensation.

Income Tax Expense

The following table presents the income tax expense and related metrics and the change for the periods indicated:

Quarter Ended

Quarter Over Quarter Change

Prior Year Quarter Change

September 30,2022

June 30,2022

September 30,2021

Change

% Change

Change

% Change

(Dollar amounts in thousands)

Income before income taxes

$         25,647

$         22,561

$         25,589

$  3,086

13.7 %

$    58

0.2 %

Income tax expense

$            4,657

$            3,977

$            4,997

$  680

17.1 %

$  (340)

(6.8) %

Effective income tax rate

18.2 %

17.6 %

19.5 %

0.6 %

3.4 %

(1.3) %

(6.7) %

Income tax expense increased compared to the second quarter of 2022 due primarily to a higher effective income tax rate during the third quarter of 2022 following an increase in estimated annual pre-tax income for the year ended 2022, which decreased the impact of favorable permanent tax items such as tax-exempt investments, investments in bank owned life insurance and low-income housing tax credits.

Income tax expense decreased compared to the same period in 2021 primarily due to a lower effective tax rate due to higher estimated pre-tax income for the year ended 2021, which decreased the impact of favorable permanent tax items such as tax-exempt investments, investments in bank owned life insurance and low-income housing tax credits.

Dividend

On October 19, 2022, the Company's Board of Directors declared a quarterly cash dividend of $0.21 per share. The dividend is payable on November 16, 2022 to shareholders of record as of the close of business on November 2, 2022.

Earnings Conference Call

The Company will hold a telephone conference call to discuss this earnings release on Thursday, October 20, 2022 at 10:00 a.m. Pacific time. To access the call, please dial (844) 200-6205 -- access code 481365 a few minutes prior to 10:00 a.m. Pacific time. The call will be available for replay through October 27, 2022 by dialing (866) 813-9403 -- access code 989637.

About Heritage Financial

Heritage Financial Corporation is an Olympia-based bank holding company with Heritage Bank, a full-service commercial bank, as its sole wholly-owned banking subsidiary. Heritage Bank has a branch network of 50 banking offices in Washington and Oregon. Heritage Bank does business under the Whidbey Island Bank name on Whidbey Island. Heritage's stock is traded on the NASDAQ Global Select Market under the symbol "HFWA". More information about Heritage Financial Corporation can be found on its website at www.hf-wa.com and more information about Heritage Bank can be found on its website at www.heritagebanknw.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following:changes in general economic conditions, either nationally or in our market areas, including as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war including Russia's invasion of Ukraine, as well as increasing oil prices and supply chain disruptions; changes in the interest rate environment; the quality and composition of our securities portfolio and the impact of any adverse changes including market liquidity within the securities markets; legislative and regulatory changes, including as a result of the COVID-19 pandemic and the possibility of a new COVID-19 variant; and other factors described in Heritage's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission-which are available on our website at www.heritagebanknw.com and on the SEC's website at www.sec.gov. The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that we make in this press release or the documents we file with or furnish to the SEC are based only on information then actually known to the Company and upon management's beliefs and assumptions at the time they are made which may turn out to be wrong because of inaccurate assumptions we might make, because of the factors described above or because of other factors that we cannot foresee. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2022 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's operating and stock price performance.

 

 

HERITAGE FINANCIAL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)(Dollar amounts in thousands, except shares)

September 30,2022

June 30,2022

December 31,2021

Assets

Cash on hand and in banks

$           100,428

$             93,675

$             61,377

Interest earning deposits

306,896

900,380

1,661,915

Cash and cash equivalents

407,324

994,055

1,723,292

Investment securities available for sale, at fair value (amortized cost of $1,491,440, $1,267,715 and $883,832, respectively)

1,356,142

1,187,588

894,335

Investment securities held to maturity, at amortized cost (fair value of $677,335, $559,312 and $376,331, respectively)

773,319

615,653

383,393

Total investment securities

2,129,461

1,803,241

1,277,728

Loans held for sale

—

1,311

1,476

Loans receivable

4,001,295

3,874,064

3,815,662

Allowance for credit losses on loans

(42,089)

(39,696)

(42,361)

Loans receivable, net

3,959,206

3,834,368

3,773,301

Other real estate owned

—

—

—

Premises and equipment, net

76,683

77,164

79,370

Federal Home Loan Bank stock, at cost

8,916

8,916

7,933

Bank owned life insurance

121,369

120,646

120,196

Accrued interest receivable

17,812

15,908

14,657

Prepaid expenses and other assets

230,704

211,350

183,543

Other intangible assets, net

7,898

8,569

9,977

Goodwill

240,939

240,939

240,939

Total assets

$       7,200,312

$       7,316,467

$       7,432,412

Liabilities and Stockholders' Equity

Deposits

$       6,237,735

$       6,330,190

$       6,394,290

Junior subordinated debentures

21,399

21,326

21,180

Securities sold under agreement to repurchase

40,449

41,827

50,839

Accrued expenses and other liabilities

124,027

117,758

111,671

Total liabilities

6,423,610

6,511,101

6,577,980

Common stock

551,419

550,417

551,798

Retained earnings

330,284

316,732

293,238

Accumulated other comprehensive (loss) income, net

(105,001)

(61,783)

9,396

Total stockholders' equity

776,702

805,366

854,432

Total liabilities and stockholders' equity

$       7,200,312

$       7,316,467

$       7,432,412

Shares outstanding

35,104,248

35,103,929

35,105,779

 

HERITAGE FINANCIAL CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(Dollar amounts in thousands, except per share amounts)

Quarter Ended

Nine Months Ended

September 30,2022

June 30,2022

September 30,2021

September 30,2022

September 30,2021

Interest Income

Interest and fees on loans

$            43,847

$            40,890

$            46,863

$          125,762

$          147,137

Taxable interest on investment securities

12,362

7,607

4,711

25,972

12,295

Nontaxable interest on investment securities

892

893

931

2,645

2,836

Interest on interest earning deposits

4,009

2,342

537

7,057

975

Total interest income

61,110

51,732

53,042

161,436

163,243

Interest Expense

Deposits

1,478

1,413

1,444

4,314

4,696

Junior subordinated debentures

312

239

184

745

557

Other borrowings

34

32

36

98

109

Total interest expense

1,824

1,684

1,664

5,157

5,362

Net interest income

59,286

50,048

51,378

156,279

157,881

Provision for (reversal of) credit losses

1,945

(1,204)

(3,149)

(2,836)

(24,335)

Net interest income after provision for (reversal of) credit losses

57,341

51,252

54,527

159,115

182,216

Noninterest Income

Service charges and other fees

2,688

2,577

2,400

7,739

6,728

Card revenue

2,365

2,146

2,150

6,773

6,216

Gain on sale of investment securities, net

—

—

—

—

29

Gain on sale of loans, net

133

219

765

593

3,138

Interest rate swap fees

78

26

126

383

487

Bank owned life insurance income

723

764

647

3,182

2,020

Gain on sale of other assets, net

265

—

942

469

1,688

Other income

1,201

1,284

1,198

3,866

4,470

Total noninterest income

7,453

7,016

8,228

23,005

24,776

Noninterest Expense

Compensation and employee benefits

24,206

21,778

21,963

67,236

65,967

Occupancy and equipment

4,422

4,171

4,373

12,924

12,918

Data processing

4,185

4,185

4,029

12,431

11,839

Marketing

358

344

486

968

1,566

Professional services

639

529

776

1,866

3,083

State/municipal business and use taxes

963

867

1,071

2,627

3,034

Federal deposit insurance premium

500

425

550

1,525

1,478

Amortization of intangible assets

671

704

758

2,079

2,352

Other expense

3,203

2,704

3,160

8,918

8,567

Total noninterest expense

39,147

35,707

37,166

110,574

110,804

Income before income taxes

25,647

22,561

25,589

71,546

96,188

Income tax expense

4,657

3,977

4,997

12,216

17,550

Net income

$            20,990

$            18,584

$            20,592

$            59,330

$            78,638

Basic earnings per share

$                 0.60

$                 0.53

$                 0.58

$                 1.69

$                 2.19

Diluted earnings per share

$                 0.59

$                 0.52

$                 0.58

$                 1.67

$                 2.18

Dividends declared per share

$                 0.21

$                 0.21

$                 0.20

$                 0.63

$                 0.60

Average shares outstanding - basic

35,103,984

35,110,334

35,644,192

35,103,048

35,854,258

Average shares outstanding - diluted

35,468,890

35,409,524

35,929,518

35,438,672

36,152,052

 

HERITAGE FINANCIAL CORPORATIONFINANCIAL STATISTICS (Unaudited)(Dollar amounts in thousands, except per share amounts)

Nonperforming Assets and Credit Quality Metrics:

Quarter Ended

Nine Months Ended

September 30,2022

June 30,2022

September 30,2021

September 30,2022

September 30,2021

Allowance for Credit Losses on Loans:

Balance, beginning of period

$         39,696

$         40,333

$         51,562

$         42,361

$         70,185

Provision for (reversal of) credit losses on loans

1,919

(649)

(2,852)

(1,252)

(21,808)

Charge-offs:

Commercial business

—

(117)

(743)

(316)

(757)

Residential real estate

—

—

—

(30)

—

Real estate construction and land development

—

—

—

—

(1)

Consumer

(138)

(132)

(204)

(396)

(509)

Total charge-offs

(138)

(249)

(947)

(742)

(1,267)

Recoveries:

Commercial business

455

149

385

876

735

Residential real estate

—

—

—

3

—

Real estate construction and land development

107

59

8

174

28

Consumer

50

53

161

669

444

Total recoveries

612

261

554

1,722

1,207

Net recoveries (charge-offs)

474

12

(393)

980

(60)

Balance, end of period

$         42,089

$         39,696

$         48,317

$         42,089

$         48,317

Net (recoveries) charge-offs on loans to average loans, annualized

(0.05) %

— %

0.04 %

(0.03) %

— %

 

September 30,2022

June 30,2022

December 31,2021

Nonperforming Assets:

Nonaccrual loans:

Commercial business

$            6,234

$         10,475

$         23,107

Residential real estate

—

—

47

Real estate construction and land development

—

—

571

Consumer

—

—

29

Total nonaccrual loans

6,234

10,475

23,754

Other real estate owned

—

—

—

Nonperforming assets

$            6,234

$         10,475

$         23,754

Restructured performing loans

$         71,863

$         63,694

$         59,110

Accruing loans past due 90 days or more

20

2,036

293

ACL on loans to:

Loans receivable

1.05 %

1.02 %

1.11 %

Loans receivable, excluding SBA PPP loans (1)

1.05 %

1.03 %

1.15 %

Nonaccrual loans

675.15 %

378.96 %

178.33 %

Nonperforming loans to loans receivable

0.16 %

0.27 %

0.62 %

Nonperforming assets to total assets

0.09 %

0.14 %

0.32 %

(1)

   See Non-GAAP Financial Measures section herein.

 

Average Balances, Yields, and Rates Paid:

Quarter Ended

September 30, 2022

June 30, 2022

September 30, 2021

Average

Balance

Interest

Earned/

Paid

AverageYield/Rate (1)

Average

Balance

Interest

Earned/

Paid

AverageYield/Rate (1)

Average

Balance

Interest

Earned/

Paid

AverageYield/Rate (1)

Interest Earning Assets:

Loans receivable, net (2)(3)

$ 3,859,839

$ 43,847

4.51 %

$ 3,812,045

$ 40,890

4.30 %

$ 4,005,585

$ 46,863

4.64 %

Taxable securities

1,868,900

12,362

2.62

1,450,328

7,607

2.10

893,374

4,711

2.09

Nontaxable securities (3)

133,022

892

2.66

137,429

893

2.61

157,907

931

2.34

Interest earning deposits

730,600

4,009

2.18

1,213,156

2,342

0.77

1,417,661

537

0.15

Total interest earning assets

6,592,361

61,110

3.68 %

6,612,958

51,732

3.14 %

6,474,527

53,042

3.25 %

Noninterest earning assets

775,375

772,658

740,433

Total assets

$ 7,367,736

$ 7,385,616

7,214,960

Interest Bearing Liabilities:

Certificates of deposit

$    297,786

$      290

0.39 %

$    321,926

$      324

0.40 %

$    365,278

$      407

0.44 %

Savings accounts

654,697

99

0.06

652,407

88

0.05

609,818

90

0.06

Interest bearing demand and money market accounts

3,065,007

1,089

0.14

3,067,373

1,001

0.13

2,881,567

947

0.13

Total interest bearing deposits

4,017,490

1,478

0.15

4,041,706

1,413

0.14

3,856,663

1,444

0.15

Junior subordinated debentures

21,356

312

5.80

21,287

239

4.50

21,060

184

3.47

Securities sold under agreement to repurchase

42,959

34

0.31

48,272

32

0.27

52,197

36

0.27

Total interest bearing liabilities

4,081,805

1,824

0.18 %

4,111,265

1,684

0.16 %

3,929,920

1,664

0.17 %

Noninterest demand deposits

2,356,688

2,349,746

2,313,145

Other noninterest bearing liabilities

118,191

113,644

116,187

Stockholders' equity

811,052

810,961

855,708

Total liabilities and stockholders' equity

$ 7,367,736

$ 7,385,616

$ 7,214,960

Net interest income and spread

$ 59,286

3.50 %

$ 50,048

2.98 %

$ 51,378

3.08 %

Net interest margin

3.57 %

3.04 %

3.15 %

(1)

Annualized; average balances are calculated using daily balances.

(2)

Average loans receivable, net includes loans held for sale and loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable, net includes the amortization of net deferred loan fees of $0.9 million, $2.4 million and $7.8 million for the third quarter of 2022, second quarter of 2022 and third quarter of 2021, respectively.

(3)

Yields on tax-exempt loans and securities have not been stated on a tax-equivalent basis.

 

Nine Months Ended

September 30, 2022

September 30, 2021

Average

Balance

Interest

Earned/

Paid

AverageYield/Rate (1)

Average

Balance

Interest

Earned/

Paid

AverageYield/Rate (1)

Interest Earning Assets:

Loans receivable, net (2) (3)

$ 3,815,387

$  125,762

4.41 %

$ 4,297,875

$  147,137

4.58 %

Taxable securities

1,532,450

25,972

2.27

789,691

12,295

2.08

Nontaxable securities (3)

138,904

2,645

2.55

160,748

2,836

2.36

Interest earning deposits

1,146,183

7,057

0.82

1,034,690

975

0.13

Total interest earning assets

6,632,924

161,436

3.25 %

6,283,004

163,243

3.47 %

Noninterest earning assets

762,877

749,781

Total assets

$ 7,395,801

$ 7,032,785

Interest Bearing Liabilities:

Certificates of deposit

$    318,547

$      952

0.40 %

$    379,885

$   1,447

0.51 %

Savings accounts

651,292

273

0.06

587,358

274

0.06

Interest bearing demand and money market accounts

3,066,229

3,089

0.13

2,817,353

2,975

0.14

Total interest bearing deposits

4,036,068

4,314

0.14

3,784,596

4,696

0.17

Junior subordinated debentures

21,286

745

4.68

20,987

557

3.55

Securities sold under agreement to repurchase

47,057

98

0.28

45,221

109

0.32

Total interest bearing liabilities

4,104,411

5,157

0.17 %

3,850,804

5,362

0.19 %

Noninterest demand deposits

2,355,285

2,227,281

Other noninterest bearing liabilities

113,534

115,098

Stockholders' equity

822,571

839,602

Total liabilities and stockholders' equity

$ 7,395,801

$ 7,032,785

Net interest income and spread

$  156,279

3.08 %

$  157,881

3.28 %

Net interest margin

3.15 %

3.36 %

(1)

Average balances are calculated using daily balances.

(2)

Average loan receivable, net includes loans held for sale and loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable, net includes the amortization of net deferred loan fees of $6.7 million and $23.2 million for the nine months ended September 30, 2022 and 2021, respectively.

(3)

Yields on tax-exempt loans and securities have not been stated on a tax-equivalent basis.

 

HERITAGE FINANCIAL CORPORATIONQUARTERLY FINANCIAL STATISTICS (Unaudited)(Dollar amounts in thousands, except per share amounts)

Quarter Ended

September 30,2022

June 30,2022

March 31,2022

December 31,2021

September 30,2021

Earnings:

Net interest income

$         59,286

$         50,048

$         46,944

$         47,908

$         51,378

Provision for (reversal of) credit losses

1,945

(1,204)

(3,577)

(5,037)

(3,149)

Noninterest income

7,453

7,016

8,538

9,839

8,228

Noninterest expense

39,147

35,707

35,720

38,465

37,166

Net income

20,990

18,584

19,757

19,397

20,592

Pre-tax, pre-provision net income (3)

27,592

21,357

19,762

19,282

22,440

Basic earnings per share

$              0.60

$              0.53

$              0.56

$              0.56

$              0.58

Diluted earnings per share

$              0.59

$              0.52

$              0.56

$              0.55

$              0.58

Average Balances:

Loans receivable, net (1)

$    3,859,839

$    3,812,045

$    3,773,325

$    3,836,029

$    4,005,585

Total investment securities

2,001,922

1,587,757

1,417,966

1,170,315

1,051,281

Total interest earning assets

6,592,361

6,612,958

6,694,578

6,671,984

6,474,527

Total assets

7,367,736

7,385,616

7,434,787

7,403,597

7,214,960

Total interest bearing deposits

4,017,490

4,041,706

4,049,357

3,977,721

3,856,663

Total noninterest demand deposits

2,356,688

2,349,746

2,359,451

2,396,452

2,313,145

Stockholders' equity

811,052

810,961

846,085

849,383

855,708

Financial Ratios:

Return on average assets (2)

1.13 %

1.01 %

1.08 %

1.04 %

1.13 %

Pre-tax, pre-provision return on average assets (2)(3)

1.49

1.16

1.08

1.03

1.23

Return on average common equity (2)

10.27

9.19

9.47

9.06

9.55

Return on average tangible common equity (2) (3)

15.20

13.68

13.83

13.27

13.93

Efficiency ratio

58.66

62.57

64.38

66.61

62.35

Noninterest expense to average total assets (2)

2.11

1.94

1.95

2.06

2.04

Net interest spread (2)

3.50

2.98

2.78

2.79

3.08

Net interest margin (2)

3.57

3.04

2.84

2.85

3.15

(1)

Average loan receivable, net includes loans held for sale.

(2)

Annualized.

(3)

See Non-GAAP Financial Measures section herein.

 

As of or for the Quarter Ended

September 30,2022

June 30,2022

March 31,2022

December 31,2021

September 30,2021

Select Balance Sheet:

Total assets

$    7,200,312

$    7,316,467

$    7,483,814

$    7,432,412

$    7,259,038

Loans receivable, net

3,959,206

3,834,368

3,780,845

3,773,301

3,905,567

Total investment securities

2,129,461

1,803,241

1,462,137

1,277,728

1,072,600

Deposits

6,237,735

6,330,190

6,491,500

6,394,290

6,229,017

Noninterest demand deposits

2,308,583

2,325,139

2,393,972

2,343,909

2,312,707

Stockholders' equity

776,702

805,366

821,449

854,432

848,404

Financial Measures:

Book value per share

$            22.13

$            22.94

$            23.40

$            24.34

$            24.13

Tangible book value per share (1)

15.04

15.83

16.27

17.19

16.97

Tangible book value per share, excluding AOCI (1)

18.03

17.59

17.25

16.92

16.55

Stockholders' equity to total assets

10.8 %

11.0 %

11.0 %

11.5 %

11.7 %

Tangible common equity to tangible assets (1)

7.6

7.9

7.9

8.4

8.5

Tangible common equity to tangible assets, excluding AOCI (1)

9.0

8.7

8.3

8.3

8.3

Loans to deposits ratio

64.1

61.2

58.9

59.7

63.5

Regulatory Capital Ratios:

Common equity tier 1 capital ratio(2)

12.8 %

13.2 %

13.4 %

13.5 %

13.3 %

Leverage ratio(2)

9.2 %

8.9 %

8.8 %

8.7 %

8.8 %

Tier 1 capital ratio(2)

13.3 %

13.6 %

13.9 %

13.9 %

13.8 %

Total capital ratio(2)

14.0 %

14.4 %

14.7 %

14.8 %

14.8 %

Credit Quality Metrics:

ACL on loans to:

Loans receivable

1.05 %

1.02 %

1.06 %

1.11 %

1.22 %

Loans receivable, excluding SBA PPP loans (1)

1.05

1.03

1.07

1.15

1.31

Nonperforming loans

675.15

378.96

244.04

178.33

186.60

Nonperforming loans to loans receivable

0.16

0.27

0.43

0.62

0.65

Nonperforming assets to total assets

0.09

0.14

0.22

0.32

0.36

Net (recoveries) charge-offs on loans to average loans receivable

—

—

(0.05)

0.05

0.04

Criticized Loans by Credit Quality Rating:

Special mention

$         84,439

$         72,062

$         63,269

$         71,020

$         90,554

Substandard

66,376

94,419

111,300

112,450

126,694

Other Metrics:

Number of banking offices

50

49

49

49

53

Average number of full-time equivalent employees

790

765

751

782

813

Deposits per branch

$       124,755

$       129,188

$       132,480

$       130,496

$       117,529

Average assets per full-time equivalent employee

9,326

9,654

9,900

9,468

8,874

(1)

See Non-GAAP Financial Measures section herein.

(2)

 Current quarter ratios are estimates pending completion and filing of the Company's regulatory reports.

 

HERITAGE FINANCIAL CORPORATIONNON-GAAP FINANCIAL MEASURES (Unaudited)(Dollar amounts in thousands, except per share amounts)

This earnings release contains certain financial measures not presented in accordance with Generally Accepted Accounting Principles ("GAAP") in addition to financial measures presented in accordance with GAAP. The Company has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company's capital, performance and asset quality reflected in the current quarter and comparable period results and to facilitate comparison of its performance with the performance of its peers. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial measures presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

The Company considers the tangible common equity to tangible assets ratio and tangible book value per share to be useful measurements of the adequacy of the Company's capital levels. Additionally, recent changes in market interest rates introduced significant volatility in the unrealized gain or loss of investment securities available for sale ("UGL") and the related AOCI. Management excluded UGL and AOCI from tangible assets and tangible common equity, respectively, to improve comparability of capital levels as UGL and AOCI are excluded from the calculation of regulatory capital ratios.

September 30,2022

June 30,2022

March 31,2022

December 31,2021

September 30,2021

Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share:

Total stockholders' equity (GAAP)

$       776,702

$       805,366

$       821,449

$       854,432

$       848,404

Exclude intangible assets

(248,837)

(249,508)

(250,212)

(250,916)

(251,675)

Tangible common equity (non-GAAP)

$       527,865

$       555,858

$       571,237

$       603,516

$       596,729

Exclude AOCI

105,001

61,783

34,228

(9,396)

(14,734)

Tangible common equity, excluding AOCI (non-GAAP)

$       632,866

$       617,641

$       605,465

$       594,120

$       581,995

Total assets (GAAP)

$    7,200,312

$    7,316,467

$    7,483,814

$    7,432,412

$    7,259,038

Exclude intangible assets

(248,837)

(249,508)

(250,212)

(250,916)

(251,675)

Tangible assets (non-GAAP)

$    6,951,475

$    7,066,959

$    7,233,602

$    7,181,496

$    7,007,363

Exclude UGL, net of tax

105,001

61,783

34,228

(9,396)

(14,734)

Tangible assets, excluding UGL, net of tax (non-GAAP)

$    7,056,476

$    7,128,742

$    7,267,830

$    7,172,100

$    6,992,629

Stockholders' equity to total assets (GAAP)

10.8 %

11.0 %

11.0 %

11.5 %

11.7 %

Tangible common equity to tangible assets (non-GAAP)

7.6 %

7.9 %

7.9 %

8.4 %

8.5 %

Tangible common equity to tangible assets, excluding AOCI (non-GAAP)

9.0 %

8.7 %

8.3 %

8.3 %

8.3 %

Shares outstanding

35,104,248

35,103,929

35,102,372

35,105,779

35,166,599

Book value per share (GAAP)

$            22.13

$            22.94

$            23.40

$            24.34

$            24.13

Tangible book value per share (non-GAAP)

$            15.04

$            15.83

$            16.27

$            17.19

$            16.97

Tangible book value per share, excluding AOCI (non-GAAP)

$            18.03

$            17.59

$            17.25

$            16.92

$            16.55

The Company considers presenting the ratio of ACL on loans to loans receivable, excluding SBA PPP loans, to be a useful measurement in evaluating the adequacy of the Company's ACL on loans as the balance of SBA PPP loans was significant to the loan portfolio; however, since SBA PPP loans are guaranteed by the SBA, the Company has not provided an ACL on loans for these loans.

September 30,2022

June 30,2022

March 31,2022

December 31,2021

September 30,2021

ACL on Loans to Loans Receivable, excluding SBA PPP Loans:

Allowance for credit losses on loans

$         42,089

$         39,696

$         40,333

$         42,361

$         48,317

Loans receivable (GAAP)

$    4,001,295

$    3,874,064

$    3,821,178

$    3,815,662

$    3,953,884

Exclude SBA PPP loans

(3,593)

(11,334)

(64,962)

(145,840)

(266,896)

Loans receivable, excluding SBA PPP loans (non-GAAP)

$    3,997,702

$    3,862,730

$    3,756,216

$    3,669,822

$    3,686,988

ACL on loans to loans receivable (GAAP)

1.05 %

1.02 %

1.06 %

1.11 %

1.22 %

ACL on loans to loans receivable, excluding SBA PPP loans (non-GAAP)

1.05 %

1.03 %

1.07 %

1.15 %

1.31 %

 

The Company considers the return on average tangible common equity ratio to be a useful measurement of the Company's ability to generate returns for its common shareholders. By removing the impact of intangible assets and their related amortization and tax effects, the performance of the Company's ongoing business operations can be evaluated.

Quarter Ended

September 30,2022

June 30,2022

March 31,2022

December 31,2021

September 30,2021

Return on Average Tangible Common Equity, annualized:

Net income (GAAP)

$         20,990

$         18,584

$         19,757

$         19,397

$         20,592

Add amortization of intangible assets

671

704

704

759

758

Exclude tax effect of adjustment

(141)

(148)

(148)

(159)

(159)

Tangible net income (non-GAAP)

$         21,520

$         19,140

$         20,313

$         19,997

$         21,191

Average stockholders' equity (GAAP)

$       811,052

$       810,961

$       846,085

$       849,383

$       855,708

Exclude average intangible assets

(249,245)

(249,890)

(250,593)

(251,331)

(252,159)

Average tangible common stockholders' equity (non-GAAP)

$       561,807

$       561,071

$       595,492

$       598,052

$       603,549

Return on average common equity, annualized (GAAP)

10.27 %

9.19 %

9.47 %

9.06 %

9.55 %

Return on average tangible common equity, annualized (non-GAAP)

15.20 %

13.68 %

13.83 %

13.27 %

13.93 %

The Company believes that presenting pre-tax pre-provision income, which reflects its profitability before income taxes and provision for credit losses, and the pre-tax, pre-provision return on average assets, are useful measurements in assessing its operating income and expenses by removing the volatility that may be associated with credit loss provisions. The Company also believes that during a crisis such as the COVID-19 pandemic, this information is useful as the impact of the pandemic on credit loss provisions of various institutions has varied based on the geography of the communities served by a particular institution and the decision to adopt or defer the current expected credit losses ("CECL") methodology required by Accounting Standards Update 2016-13.

Quarter Ended

September 30,2022

June 30,2022

March 31,2022

December 31,2021

September 30,2021

Pre-tax, Pre-provision Income and Pre-tax, Pre-provision Return on Average Assets, annualized:

Net income (GAAP)

$         20,990

$         18,584

$         19,757

$         19,397

$         20,592

Add income tax expense

4,657

3,977

3,582

4,922

4,997

Add provision for (reversal of) credit losses

1,945

(1,204)

(3,577)

(5,037)

(3,149)

Pre-tax, pre-provision income (non-GAAP)

$         27,592

$         21,357

$         19,762

$         19,282

$         22,440

Average total assets (GAAP)

$    7,367,736

$    7,385,616

$    7,434,787

$    7,403,597

$    7,214,960

Return on average assets, annualized (GAAP)

1.13 %

1.01 %

1.08 %

1.04 %

1.13 %

Pre-tax, pre-provision return on average assets (non-GAAP)

1.49 %

1.16 %

1.08 %

1.03 %

1.23 %

The Company believes presenting loan yield excluding the effect of discount accretion on purchased loans is useful in assessing the impact of acquisition accounting on loan yield as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off its balance sheet. Incremental accretion on purchased loans represents the amount of interest income recorded on purchased loans in excess of the contractual stated interest rate in the individual loan notes due to incremental accretion of purchased discount or premium. Purchased discount or premium is the difference between the contractual loan balance and the fair value of acquired loans at the acquisition date, or as modified by the adoption of CECL. The purchased discount is accreted into income over the remaining life of the loan. The impact of incremental accretion on loan yield will change during any period based on the volume of prepayments, but it is expected to decrease over time as the balance of the purchased loans decreases.

Similarly, presenting loan yield excluding the effect of SBA PPP loans is useful in assessing the impact of these special program loans that have substantially decreased within a short time frame.

Quarter Ended

September 30,2022

June 30,2022

September 30,2021

Loan Yield, excluding SBA PPP Loans and Incremental Accretion on Purchased Loans, annualized:

Interest and fees on loans (GAAP)

$         43,847

$         40,890

$         46,863

Exclude interest and fees on SBA PPP loans

(275)

(1,782)

(8,042)

Exclude incremental accretion on purchased loans

(398)

(270)

(681)

Adjusted interest and fees on loans (non-GAAP)

$         43,174

$         38,838

$         38,140

Average loans receivable, net (GAAP)

$    3,859,839

$    3,812,045

$    4,005,585

Exclude average SBA PPP loans

(5,726)

(34,090)

(392,570)

Adjusted average loans receivable, net (non-GAAP)

$    3,854,113

$    3,777,955

$    3,613,015

Loan yield, annualized (GAAP)

4.51 %

4.30 %

4.64 %

Loan yield, excluding SBA PPP loans and incremental accretion on purchased loans, annualized (non-GAAP)

4.44 %

4.12 %

4.19 %

 

Cision View original content:https://www.prnewswire.com/news-releases/heritage-financial-announces-third-quarter-2022-results-and-declares-regular-cash-dividend-301654546.html

SOURCE Heritage Financial Corporation