The following is a summary of the Heritage Financial Corporation (HFWA) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Heritage Financial Corporation reported a loan growth rate of 8.4% for Q1 2024.

• The company incurred a pretax loss of $10 million due to investment portfolio repositioning and severance costs of $1.1 million as a result of staff reduction.

• Noninterest expenses decreased from Q4 2023 due to reduced FTE levels and contract renegotiation-related expense cuts.

• Net interest income declined by $2.3 million from Q4 2023 due to reductions in both the net interest margin and average earning assets.

• The company expects continued deposit pricing pressure in the near term.

Business Progress:

• The company will focus on growing loans and deposits while limiting expenses.

• Measures to reduce noninterest expenses through balanced sheet management and expense management activities have led to a robust core performance.

• Heritage Financial announced a new share repurchase plan approved by the Board for 5% of the outstanding stock, or 1.7 million shares.

• The company reported challenges in some company operations and expected net operating income for certain commercial real estate projects.

• Heritage Financial is restructuring its balance sheet to augment profitability and possibly reduce overall asset levels.

• The company shifted its loan portfolio focus from investor real estate to commercial business loans (C&I) over the past year.

• Even with ongoing commercial lending competition, the company remains devoted to conservative credit underwriting.

More details: Heritage Financial IR

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