PR Newswire
OLYMPIA, Wash., April 20, 2023
OLYMPIA, Wash., April 20, 2023 /PRNewswire/ -- Heritage Financial Corporation (NASDAQ GS: HFWA) (the "Company" or "Heritage"), the parent company of Heritage Bank (the "Bank"), today reported net income of $20.5 million for the first quarter of 2023 compared to $22.5 million for the fourth quarter of 2022 and $19.8 million for the first quarter of 2022. Diluted earnings per share for the first quarter of 2023 were $0.58 compared to $0.64 for the fourth quarter of 2022 and $0.56 for the first quarter of 2022.
Jeffrey J. Deuel, President and Chief Executive Officer of Heritage, commented, "Results for the first quarter showcase the strengths of our business model with a strong balance sheet, core deposits, ample liquidity and prudent risk management. We reported solid profitability and loan growth while strengthening capital ratios and maintaining credit quality. Although we are experiencing the industry-wide pressure on deposit balances, we have a long track record of core funding with 34.3% of our deposits as non-interest bearing as of March 31, 2023. Further, we are encouraged by the contributions of our new teams in the Portland, Eugene and Boise MSAs which are enhancing our strong core deposit base.
We are delighted to report that Heritage Bank is partnering with El Centro De La Raza in constructing 87 new affordable housing units in Seattle's Columbia City neighborhood. Heritage is providing construction financing totaling $35.1 million and $9.4 million of permanent financing for the project. In addition to affordable housing, this project will also build an office for a local non-profit, a church to redevelop the longstanding Columbia City Church of Hope, and a new childcare center for El Centro De La Raza. Heritage is proud to be a partner in bringing more affordable housing to families of Columbia City and pairing it with affordable childcare.
We are also pleased to announce that during March 2023, Washington State Department of Commerce notified HBCDE, LLC, a subsidiary of Heritage Bank and a certified Community Development Entity, that our Commercial Real Estate Loan Program was selected for funding. HBCDE's program is one of five capital access programs receiving a total of $163 million awarded to Washington State through the American Rescue Plan Act of 2021, which provided $10 billion to fund the State Small Business Credit Initiative ("SSBCI"). We are excited to have this substantial SSBCI subsidy to help us finance business owners that have had diminished access to credit on reasonable terms or who are expanding into underserved communities."
Financial Highlights
The following table provides financial highlights at the dates and for the periods indicated:
| As of or for the Quarter Ended | ||||
| March 31, | | December 31, | | March 31, |
| (Dollars in thousands, except per share amounts) | ||||
Net income | $ 20,457 | | $ 22,544 | | $ 19,757 |
Pre-tax, pre-provision income (1) | $ 26,495 | | $ 29,299 | | $ 19,762 |
Diluted earnings per share | $ 0.58 | | $ 0.64 | | $ 0.56 |
Return on average assets (2) | 1.17 % | | 1.26 % | | 1.08 % |
Pre-tax, pre-provision return on average assets (1) (2) | 1.52 % | | 1.64 % | | 1.08 % |
Return on average common equity (2) | 10.21 % | | 11.46 % | | 9.47 % |
Return on average tangible common equity (1) (2) | 15.05 % | | 17.21 % | | 13.83 % |
Net interest margin (2) | 3.91 % | | 3.98 % | | 2.84 % |
Cost of total deposits (2) | 0.31 % | | 0.16 % | | 0.09 % |
Efficiency ratio | 61.1 % | | 58.0 % | | 64.4 % |
Noninterest expense to average total assets (2) | 2.39 % | | 2.26 % | | 1.95 % |
Total assets | $ 7,236,806 | | $ 6,980,100 | | $ 7,483,814 |
Loans receivable, net | $ 4,083,003 | | $ 4,007,872 | | $ 3,780,845 |
Total deposits | $ 5,789,022 | | $ 5,924,840 | | $ 6,491,500 |
Loan to deposit ratio (3) | 71.3 % | | 68.4 % | | 58.9 % |
Book value per share | $ 23.53 | | $ 22.73 | | $ 23.40 |
Tangible book value per share (1) | $ 16.48 | | $ 15.66 | | $ 16.27 |
(1) See Non-GAAP Financial Measures section herein. (2) Annualized. (3) Loans receivable divided by total deposits.
|
Liquidity
Total liquidity sources available at March 31, 2023 were $3.09 billion. This includes internal as well as external sources of liquidity. The Company has access to Federal Home Loan Bank advances,the Federal Reserve Bank's Discount Window and Bank Term Funding Program.
The following table summarizes the Company's available liquidity:
| March 31, 2023 | ||
| Total Available | Amount Used | Net Availability |
| (Dollars in thousands) | ||
Internal Sources | | | |
Cash and cash equivalents | $ 301,481 | $ — Werbung Mehr Nachrichten zur Heritage Financial Aktie kostenlos abonnieren
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