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Mar 31, 2024
Heritage Financial Q1 2024 Earnings Report
Announced first quarter 2024 results, which included net income of $5.7 million and earnings per diluted share of $0.16.
Key Takeaways
Heritage Financial Corporation reported a net income of $5.7 million for the first quarter of 2024, a decrease compared to both the previous quarter and the same quarter last year. The results were impacted by a loss on the sale of securities and costs related to expense management measures, though the company saw strong loan growth and balance sheet repositioning.
Net income was $5.7 million, or $0.16 per diluted share, for the first quarter of 2024.
Loans receivable increased $92.5 million, or 2.1%, during the first quarter of 2024.
Net interest margin was 3.32% for the first quarter of 2024.
The Board of Directors authorized the repurchase of up to 5% of the Company's outstanding common shares or approximately 1.7 million shares.
Heritage Financial
Heritage Financial
Forward Guidance
Company anticipates an estimated annualized improvement of $4.6 million in interest income as a result of recent balance sheet repositioning.
Positive Outlook
- Strong loan growth
- Repositioning of our balance sheet
- Expense management measures, which will strengthen our earnings in future periods.
- Actions will enhance our sustainable long-term returns for our shareholders.
- Company and Bank continue to maintain capital levels in excess of the applicable regulatory requirements for them both to be categorized as “well-capitalized.”
Challenges Ahead
- Loss on sale of securities negatively impacted current earnings
- Approximately $1.1 million of severance costs were incurred in the first quarter of 2024 as part of expense management initiatives, which affected diluted earnings per share by $0.02 for the quarter.
- Total deposits decreased $67.5 million, or 1.2%, to $5.53 billion at March 31, 2024 from $5.60 billion at December 31, 2023.
- Net interest income decreased $2.3 million, or 4.3%, during the first quarter of 2024 compared to the fourth quarter of 2023 due primarily to an increase of $2.4 million in interest expense.
- Net interest margin decreased nine basis points to 3.32% during the first quarter of 2024 from 3.41% during the fourth quarter of 2023.