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Sep 30, 2023
Heritage Financial Q3 2023 Earnings Report
Reported net income of $18.2 million, an increase compared to the previous quarter, driven by growth in loans and deposits, while maintaining strong capital ratios and managing expenses effectively.
Key Takeaways
Heritage Financial Corporation reported a net income of $18.2 million for Q3 2023, an increase from $16.8 million in Q2 2023. The company saw growth in loans and deposits, maintained strong capital ratios, and focused on prudent risk and expense management. The bank is also partnering on an affordable housing project in Vancouver, Washington.
Net income for Q3 2023 was $18.2 million, or $0.51 per diluted share, compared to $16.8 million, or $0.48 per diluted share, for Q2 2023.
Return on average equity increased to 8.80% for Q3 2023, compared to 8.19% for Q2 2023.
Loans receivable increased by $15.5 million during Q3 2023.
Total deposits increased by $39.6 million in Q3 2023.
Heritage Financial
Heritage Financial
Forward Guidance
The company focuses on prudent risk management and expense management, coupled with strategic and measured growth, will provide sustainable long-term returns for their shareholders.
Positive Outlook
- Maintaining a strong balance sheet with ample liquidity.
- Solid foundation of our core deposit franchise.
- Steadfast focus on prudent risk management.
- Strategic and measured growth.
- Focus on expense management.
Challenges Ahead
- Ongoing challenges in the current rate environment.
- Increase of $15.2 million in accumulated other comprehensive loss as a result of declining fair values of investment securities available for sale
- Noninterest income decreased during the third quarter of 2023 from the second quarter of 2023 and the same period in 2022 due primarily to a $1.9 million loss on sale of investment securities available for sale partially offset by a $610,000 gain on sale of the Ellensburg branch and related deposits which is included in other income.
- Net interest income decreased $3.7 million, or 6.2%, during the third quarter of 2023 compared to the third quarter of 2022
- Net interest margin decreased ten basis points from 3.57% during this same period.