Loading...
•
Jun 30, 2020
Heritage Financial Q2 2020 Earnings Report
Heritage Financial experienced a net loss due to increased provision for credit losses.
Key Takeaways
Heritage Financial Corporation reported a net loss of $6.1 million for the second quarter of 2020, compared to a net income of $12.2 million in the previous quarter and $16.0 million in the same quarter of the previous year. The loss was primarily due to a significant increase in the provision for credit losses, driven by the economic impact of the COVID-19 pandemic. However, the company saw growth in loans and deposits, particularly through the SBA PPP program.
Net loss was $6.1 million, or $0.17 per diluted share.
Pre-tax, pre-provision income was $21.5 million.
Loans receivable, net, increased $790.0 million, primarily due to SBA PPP loans.
Total deposits increased $949.8 million, driven by SBA PPP loan funds deposited into customer accounts.
Revenue by Segment
Forward Guidance
The company is committed to supporting its community and customers during these unprecedented times, including offering SBA PPP loans and assisting customers with loan modifications. The Bank believes the steps it is taking are necessary to effectively manage the loan portfolio and to assist customers through the ongoing uncertainty surrounding the duration, impact and government response to the COVID-19 pandemic and continues to monitor opportunities to participate in other regulatory or in-house programs designed to aid in the economic recovery from the COVID-19 pandemic.
Positive Outlook
- Committed to supporting its community and its customers
- Offering Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) loans
- Assisting customers with loan modifications
- Effectively manage the loan portfolio
- Monitor opportunities to participate in other regulatory or in-house programs designed to aid in the economic recovery from the COVID-19 pandemic
Challenges Ahead
- COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...