Heritage Financial Corp (NAS:HFWA)

Q1 2025 Heritage Financial Corp Earnings Call Transcript

Apr 24, 2025 / 05:00 PM GMT

Release Date Price: $22.99 (+0.04%)

Transcript 10-Q8-K

Key Points

Positve

Heritage Financial Corp (HFWA) reported strong deposit growth in Q1, with a $160.7 million increase, primarily in money market accounts.
The net interest margin improved to 3.44% from 3.36% in the prior quarter, driven by decreases in the cost of deposits and borrowings.
Credit quality remains strong and stable, with non-performing loans improving to 0.09% of total loans.
The company maintained strong capital ratios, with a TCE ratio of 9.3%, allowing flexibility for future stock buybacks.
Heritage Financial Corp (HFWA) successfully added a new team in Spokane, enhancing its market presence and talent pool.

Negative

Total loan balances decreased by $37 million in Q1 due to elevated payoffs and pre-payments.
Net interest income decreased slightly from the prior quarter due to fewer days in Q1.
A pre-tax loss of $3.9 million was recognized on the sale of $61 million of securities as part of a strategic repositioning.
Non-interest expense increased by $1.8 million from the prior quarter, mainly due to higher benefit costs and payroll taxes.
The commercial lending group saw a decline in new loan commitments, closing $183 million compared to $316 million in the previous quarter.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HFWA.OQ - Heritage Financial Corp
Q1 2025 Heritage Financial Corp Earnings Call
Apr 24, 2025 / 05:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello, everyone, and a warm welcome to the Heritage Financial Q1 earnings call. My name is Emily and I'll be coordinating your call today. After the presentation, you'll have the opportunity to ask any questions, which you can do so at any time by pressing start, followed by the number one on your telephone keypad.

I will now hand you over to Brian McDonald, President and CEO. Please go ahead, Brian.

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Unidentified_2 [2]
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Thank you, Emily. Welcome and good morning to everyone who called in and those who may listen later. This is Brian

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