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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