Heritage Financial Corp. HFWA

NAS: HFWA | ISIN: US42722X1063   19:05
18,28 USD (-1,83%)
(-1,83%)   19:05

Heritage Financial Announces Fourth Quarter And Annual 2022 Results And Declares Regular Cash Dividend

Gepubliceerd op 26 januari 2023 om 14:00

  • Net income was $22.5 million, or $0.64 per diluted share, for the fourth quarter of 2022 compared to $21.0 million, or $0.59 per diluted share, for the third quarter of 2022 and $19.4 million, or $0.55 per diluted share, for the fourth quarter of 2021.

  • Loans receivable increased $49.6 million, or 1.2% (4.9% annualized), in the fourth quarter of 2022.

  • Loans receivable increased $235.2 million, or 6.2% for the year ended December 31, 2022. Excluding SBA PPP loan repayments of $144.4 million, loans receivable increased $379.6 million for the year ended December 31, 2022.

  • Net interest income increased $3.8 million, or 6.4%, to $63.1 million for the fourth quarter of 2022 compared to $59.3 million for the third quarter of 2022, and increased $15.2 million, or 31.7% compared to $47.9 million for the fourth quarter of 2021.

  • Net interest margin increased to 3.98% for the fourth quarter of 2022 from 3.57% for the third quarter of 2022 and 2.85% for the fourth quarter of 2021.

  • Cost of total deposits was 0.16% for the fourth quarter of 2022 compared to 0.09% for both the third quarter of 2022 and the fourth quarter of 2021.

  • Expanded geographic footprint into Idaho with the opening of a branch in Boise on January 10, 2023.

  • Declared a regular cash dividend of $0.22 per share on January 25, 2023, an increase of 4.8% from the $0.21 regular cash dividend per share declared in the third quarter of 2022.

OLYMPIA, Wash., Jan. 26, 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 $22.5 million for the fourth quarter of 2022 compared to $21.0 million for the third quarter of 2022 and $19.4 million for the fourth quarter of 2021. Diluted earnings per share for the fourth quarter of 2022 were $0.64 compared to $0.59 for the third quarter of 2022 and $0.55 for the fourth quarter of 2021. Net income for the year ended 2022 totaled $81.9 million, or $2.31 per diluted share as compared to $98.0 million, or $2.73 per diluted share for 2021.

Jeffrey J. Deuel, President and Chief Executive Officer of Heritage, commented, "We are very pleased with our  profitability over the past year due to higher net interest margin, low-cost deposits and strong loan growth, along with our prudent expense management. Our net interest margin in the fourth quarter increased by 113 basis points from the fourth quarter of 2021, while our cost of total deposits only increased by 7 basis points. In addition, excluding the impacts of SBA PPP loan repayments, total loan balances increased by 10.3% from year end 2021. These achievements were made possible by our foundation of a strong balance sheet and a talented team of bankers.

We successfully expanded our teams in the Portland and Eugene MSAs in 2022, and we are excited to start 2023 by announcing our entry into the Boise MSA, which is our first branch in Idaho.  We believe this will be an attractive market for Heritage to expand and continue to grow.

Further, we are proud that Heritage Bank is partnering with College Housing Northwest ("CHNW") in financing 79 affordable student housing rental units located on the Eastside of Portland. CHNW works to provide innovative housing support to college students, especially to those aging out of the foster care system. Heritage Bank is providing $7.4 million of term loan financing for the project as well as assisting CHNW to acquire additional buildings with access to innovative funding from government and foundation sources."

Financial Highlights

The following table provides financial highlights at the dates and for the periods indicated:


As of or for the Quarter Ended


December 31,
2022


September 30,
2022


December 31,
2021


(Dollars in thousands, except per share amounts)

Net income

$          22,544


$          20,990


$          19,397

Pre-tax, pre-provision income (1)

$          29,299


$          27,592


$          19,282

Diluted earnings per share

$              0.64


$              0.59


$              0.55

Return on average assets (2)

1.26 %


1.13 %


1.04 %

Pre-tax, pre-provision return on average assets (1) (2)

1.64 %


1.49 %


1.03 %

Return on average common equity (2)

11.46 %


10.27 %


9.06 %

Return on average tangible common equity (1) (2)

17.21 %


15.20 %


13.27 %

Net interest margin (2)

3.98 %


3.57 %


2.85 %

Cost of total deposits (2)

0.16 %


0.09 %


0.09 %

Efficiency ratio

58.0 %


58.7 %


66.6 %

Noninterest expense to average total assets (2)

2.26 %


2.11 %


2.06 %

Total assets

$     6,980,100


$     7,200,312


$     7,432,412

Loans receivable, net

$     4,007,872


$     3,959,206


$     3,773,301

Total deposits

$     5,924,840


$     6,237,735


$     6,394,290

Loan to deposit ratio (3)

68.4 %


64.1 %


59.7 %

Book value per share

$            22.73


$            22.13


$            24.34

Tangible book value per share (1)

$            15.66


$            15.04


$            17.19

Tangible book value per share, excluding AOCI (1) (4)

$            18.50


$            18.03


$            16.92



(1)

See Non-GAAP Financial Measures section herein.



(2)

Annualized.



(3)

Loans receivable divided by total deposits.



(4)

Accumulated other comprehensive income or loss ("AOCI").




Balance Sheet

Cash and cash equivalents decreased $303.7 million, or 74.6%, to $103.6 million at December 31, 2022 from $407.3 million at September 30, 2022 due primarily to an increase in loans receivable and a decrease in deposits. 

Total investment securities decreased $31.6 million, or 1.5%, to $2.10 billion at December 31, 2022 from $2.13 billion at September 30, 2022 due primarily to maturities and prepayments of $55.3 million and sales of $30.4 million, partially offset by purchases of $48.1 million.  

The following table summarizes the Company's loans receivable, net at the dates indicated:


December 31, 2022


September 30, 2022


Change


Balance


% of
Total


Balance


% of
Total


$


%


(Dollars in thousands)

Commercial business:












Commercial and industrial

$       692,100


17.1 %


$       735,028


18.4 %


$        (42,928)


(5.8) %

SBA PPP

1,468


—


3,593


0.1


(2,125)


(59.1)

Owner-occupied commercial real estate ("CRE")

937,040


23.1


959,486


24.0


(22,446)


(2.3)

Non-owner occupied CRE

1,586,632


39.2


1,547,114


38.6


39,518


2.6

Total commercial business

3,217,240


79.4


3,245,221


81.1


(27,981)


(0.9)

Residential real estate

343,631


8.5


296,019


7.4


47,612


16.1

Real estate construction and land development:












Residential

80,074


2.0


92,297


2.3


(12,223)


(13.2)

Commercial and multifamily

214,038


5.3


160,723


4.0


53,315


33.2

Total real estate construction and land development

294,112


7.3


253,020


6.3


41,092


16.2

Consumer

195,875


4.8


207,035


5.2


(11,160)


(5.4)

Loans receivable

4,050,858


100.0 %


4,001,295


100.0 %


49,563


1.2

Allowance for credit losses on loans

(42,986)




(42,089)




(897)


2.1

Loans receivable, net

$    4,007,872




$    3,959,206




$         48,666


1.2 %


Loans receivable grew $49.6 million, or 1.2% (4.9% annualized), in the fourth quarter of 2022. New loans funded in the fourth and third quarter of 2022 were $203.1 million and $206.7 million, respectively. This includes purchased residential real estate loans of $40.5 million and $29.0 million, respectively, during the fourth and third quarter of 2022. Loan repayments also increased during the fourth quarter of 2022 to $147.0 million, as compared to $71.6 million during the third quarter of 2022, exclusive of SBA PPP loan repayments, net deferred fees, and net acquired discounts.

Commercial and industrial loans decreased primarily due to declines in line of credit utilization rates during the fourth quarter of 2022 compared to the third quarter of 2022. Commercial and multifamily construction loans increased by $53.3 million or 33.2% due to new loan originations and advances on outstanding loans during the fourth quarter of 2022. Total new commitments for commercial and multifamily construction loans increased to $173.4 million in the fourth quarter of 2022 as compared to $91.7 million in the third quarter of 2022.

Prepaid expenses and other assets increased $65.5 million or 28.4% to $296.2 million at December 31, 2022 from $230.7 million at September 30, 2022 due primarily to an increase in commitments for low income housing tax credits.  Accrued expenses and other liabilities increased $65.3 million or 52.6% to $189.3 million at December 31, 2022 from $124.0 million at September 30, 2022 due to an increase in the unfunded portion of the commitment for these low income housing tax credits.

The following table summarizes the Company's total deposits at the dates indicated:


December 31, 2022


September 30, 2022


Change


Balance


% of
Total


Balance


% of
Total


$


%


(Dollars in thousands)

Noninterest demand deposits

$    2,099,464


35.5 %


$    2,308,583


37.0 %


$     (209,119)


(9.1) %

Interest bearing demand deposits

1,830,727


30.9


1,997,989


32.0


(167,262)


(8.4)

Money market accounts

1,063,243


17.9


996,214


16.0


67,029


6.7

Savings accounts

623,833


10.5


647,526


10.4


(23,693)


(3.7)

Total non-maturity deposits

5,617,267


94.8


5,950,312


95.4


(333,045)


(5.6)

Certificates of deposit

307,573


5.2


287,423


4.6


20,150


7.0

Total deposits

$    5,924,840


100.0 %


$    6,237,735


100.0 %


$     (312,895)


(5.0) %


Total deposits decreased $312.9 million, or 5.0%, from September 30, 2022. The decrease was due to competitive pricing pressures and customers moving excess funds to alternative higher yielding investments as well as general declines in individual customer balances.  Money market account and certificate of deposit balances increased from the prior quarter due to marketing efforts to retain deposit accounts.

Total stockholders' equity increased $21.2 million during the fourth quarter of 2022 due primarily to net income recognized for the quarter.  The Company and Bank continue to maintain capital levels in excess of the applicable regulatory requirements for them both to be categorized as "well-capitalized".

The following table summarizes capital ratios for the Company at the dates indicated:


December 31,
2022


September 30,
2022


Change

Stockholders' equity to total assets

11.4 %


10.8 %


0.6 %

Tangible common equity to tangible assets (1)

8.2


7.6


0.6

Tangible common equity, excluding AOCI, to tangible assets, excluding UGL (1)

9.5


9.0


0.5

Common equity tier 1 capital ratio (2)

12.8


12.8


—

Leverage ratio (2)

9.7


9.2


0.5

Tier 1 capital ratio (2)

13.2


13.3


(0.1)

Total capital ratio (2)

14.0


14.0


—



(1) 

See Non-GAAP Financial Measures section herein.



(2) 

Current quarter ratios are estimates pending completion and filing of the Company's regulatory reports.




 

Allowance for Credit Losses and Provision for Credit Losses

The following table provides detail on the changes in the allowance for credit losses ("ACL") on loans and the ACL on unfunded commitments ("Unfunded") and the related provision for (reversal of) credit losses for the periods indicated:


As of or for the Quarter Ended


December 31, 2022


September 30, 2022


December 31, 2021


ACL on
Loans


ACL on
Unfunded


Total


ACL on
Loans


ACL on
Unfunded


Total


ACL on
Loans


ACL on
Unfunded


Total


(Dollars in thousands)

Balance, beginning of period

$ 42,089


$      1,023


$ 43,112


$ 39,696


$          997


$ 40,693


$ 48,317


$      2,154


$ 50,471

Provision for (reversal of) credit losses

689


721


1,410


1,919


26


1,945


(5,490)


453


(5,037)

Net recoveries (charge-offs)

208


—


208


474


—


474


(466)


—


(466)

Balance, end of period

$ 42,986


$      1,744


$ 44,730


$ 42,089


$      1,023


$ 43,112


$ 42,361


$      2,607


$ 44,968


The ACL on loans increased compared to September 30, 2022 due primarily to an increase related to the growth in loans receivable. The ACL on unfunded increased compared to September 30, 2022 due primarily to an increase in unfunded commitment balances. 

Credit Quality

Nonperforming assets decreased to 0.08% of total assets at December 31, 2022 compared to 0.09% of total assets at September 30, 2022. Nonperforming assets at both December 31, 2022 and September 30, 2022 consisted only of nonaccrual loans. Changes in nonaccrual loans during the periods indicated were as follows:


Quarter Ended


December 31,
2022


September 30,
2022


December 31,
2021


(In thousands)

Balance, beginning of period

$               6,234


$             10,475


$             25,894

Additions

605


—


333

Net principal payments and transfers to accruing status

(828)


(4,016)


(1,435)

Payoffs

(105)


(225)


(540)

Charge-offs

—


—


(498)

Balance, end of period

$               5,906


$               6,234


$             23,754


Net Interest Income and Net Interest Margin

Net interest income increased $3.8 million, or 6.4%, compared to the third quarter of 2022 and increased $15.2 million, or 31.7%, compared to the fourth quarter of 2021 due primarily to an increase in yields earned on interest earning assets following increases in market interest rates. The yield on interest earning assets increased to 4.16% as compared to 3.68% in the third quarter of 2022 and 2.95% in the fourth quarter of 2021.

The cost of interest bearing liabilities increased to 0.29%, compared to 0.18% in the third quarter of 2022 and 0.16% in the  fourth quarter of 2021 primarily due to increased costs of interest bearing deposits due to competitive rate pressures on deposit accounts.

The following table presents the loan yield and the impact of SBA PPP loans and the incremental accretion on purchased loans on this financial measure for the periods presented below:


Quarter Ended


December 31,
2022


September 30,
2022


December 31,
2021

Loan yield (GAAP)

4.86 %


4.51 %


4.42 %

Exclude impact from SBA PPP loans

(0.01)


(0.02)


(0.29)

Exclude impact from incremental accretion on purchased loans

(0.02)


(0.05)


(0.05)

Loan yield, excluding SBA PPP loans and incremental accretion on purchased loans (non-GAAP) (1)

4.83 %


4.44 %


4.08 %



(1)

See Non-GAAP Financial Measures section.





Net interest margin increased to 3.98% for the fourth quarter of 2022 as compared to 3.57% for the third quarter of 2022 and 2.85% for the fourth quarter of 2021 due to a shift into higher yielding interest earning assets as well as higher average yields on all interest earning assets following increases in market interest rates while maintaining a low cost of deposits.

Noninterest Income

The following table presents the key components of noninterest income and the change for the periods indicated:


Quarter Ended


Quarter Over
Quarter Change


Prior Year
Quarter Change


December 31,
2022


September 30,
2022


December 31,
2021


$


%


$


%


(Dollar amounts in thousands)

Service charges and other fees

$               2,651


$               2,688


$               2,479


$      (37)


(1.4) %


$     172


6.9 %

Card revenue

2,111


2,365


2,108


(254)


(10.7)


3


0.1

Loss on sale of investment securities, net

(256)


—


—


(256)


—


(256)


(100.0)

Gain on sale of loans, net

40


133


506


(93)


(69.9)


(466)


(92.1)

Interest rate swap fees

19


78


174


(59)


(75.6)


(155)


(89.1)

Bank owned life insurance income

565


723


500


(158)


(21.9)


65


13.0

Gain on sale of other assets, net

—


265


2,717


(265)


—


(2,717)


(100.0)

Other income

1,454


1,201


1,355


253


21.1


99


7.3

Total noninterest income

$               6,584


$               7,453


$               9,839


$   (869)


(11.7) %


$  (3,255)


(33.1) %


Noninterest income decreased from the third quarter of 2022 due primarily to decreased card revenue, a loss on the sale of investment securities recognized during the fourth quarter of 2022 and a gain on sale of branches held for sale recognized during the third quarter of 2022.

Noninterest income decreased from the same period in 2021 due primarily to reduced gain on sale of loans, net as sales volume of secondary market mortgage loans declined, a loss on the sale of investment securities recognized during the fourth quarter of 2022 and a gain on sale of branches held for sale recognized during the fourth quarter of 2021.

Noninterest Expense

The following table presents the key components of noninterest expense and the change for the periods indicated:


Quarter Ended


Quarter Over
Quarter Change


Prior Year
Quarter Change


December 31,
2022


September 30,
2022


December 31,
2021


$


%


$


%


(Dollar amounts in thousands)

Compensation and employee benefits

$             24,856


$             24,206


$             22,798


$     650


2.7 %


$  2,058


9.0 %

Occupancy and equipment

4,541


4,422


4,325


119


2.7


216


5.0

Data processing

4,369


4,185


4,694


184


4.4


(325)


(6.9)

Marketing

675


358


577


317


88.5


98


17.0

Professional services

630


639


763


(9)


(1.4)


(133)


(17.4)

State/municipal business and use tax

1,008


963


850


45


4.7


158


18.6

Federal deposit insurance premium

490


500


628


(10)


(2.0)


(138)


(22.0)

Amortization of intangible assets

671


671


759


—


—


(88)


(11.6)

Other expense

3,152


3,203


3,071


(51)


(1.6)


81


2.6

Total noninterest expense

$             40,392


$             39,147


$             38,465


$  1,245


3.2 %


$  1,927


5.0 %


Noninterest expense increased from the third quarter of 2022 and the same period in 2021 due primarily to an increase in compensation and employee benefits due to an increase in the number of full-time equivalent employees including the addition of commercial and relationship banking teams in the second quarter of 2022 and an increase in salaries and wages due to upward market pressure.  Marketing expenses increased from the third quarter of 2022 due to timing of marketing efforts.

Income Tax Expense

The following table presents the income tax expense and related metrics and the change for the periods indicated:


Quarter Ended


Quarter Over
Quarter Change


Prior Year
Quarter Change


December 31,
2022


September 30,
2022


December 31,
2021


$


%


$


%


(Dollar amounts in thousands)

Income before income taxes

$          27,889


$          25,647


$          24,319


$  2,242


8.7 %


$   3,570


14.7 %

Income tax expense

$            5,345


$            4,657


$            4,922


$     688


14.8 %


$      423


8.6 %

Effective income tax rate

19.2 %


18.2 %


20.2 %


1.0 %


5.5 %


(1.0) %


(5.0) %















Income tax expense increased compared to the third quarter of 2022 due primarily to a higher effective income tax rate during the fourth quarter of 2022 following an increase in annual pre-tax income for the year ended 2022, which decreased the impact of favorable permanent tax items such as tax-exempt investments, investments in bank owned life insurance and low-income housing tax credits as well as an increase in the effective state income tax rate.

Income tax expense increased compared to the same period in 2021 primarily due to higher estimated pre-tax income in the fourth quarter of 2022 as compared to the fourth quarter of 2021.

Dividends

On January 25, 2023, the Company's Board of Directors declared a quarterly cash dividend of $0.22 per share, a 4.8% increase from the $0.21 dividend per share declared in the third quarter of 2022. The dividend is payable on February 22, 2023 to shareholders of record as of the close of business on February 8, 2023.

Earnings Conference Call

The Company will hold a telephone conference call to discuss this earnings release on Thursday, January 26, 2023 at 10:00 a.m. Pacific time. To access the call, please dial (844) 200-6205 -- access code 603267 a few minutes prior to 10:00 a.m. Pacific time. The call will be available for replay through February 2, 2023 by dialing (866) 813-9403 -- access code 855414.

About Heritage Financial

Heritage Financial Corporation is an Olympia-based bank holding company with Heritage Bank, a full-service commercial bank, as its sole wholly-owned banking subsidiary. Heritage Bank has a branch network of 51 banking offices in Washington, Oregon and Idaho. Heritage Bank does business under the Whidbey Island Bank name on Whidbey Island. Heritage's stock is traded on the NASDAQ Global Select Market under the symbol "HFWA". More information about Heritage Financial Corporation can be found on its website at www.hf-wa.com and more information about Heritage Bank can be found on its website at www.heritagebanknw.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: changes in general economic conditions, either nationally or in our market areas, including as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war including Russia's invasion of Ukraine, as well as increasing oil prices and supply chain disruptions; changes in the interest rate environment; the quality and composition of our securities portfolio and the impact of any adverse changes including market liquidity within the securities markets; legislative and regulatory changes, including as a result of new COVID-19 variants; and other factors described in Heritage's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission-which are available on our website at www.heritagebanknw.com and on the SEC's website at www.sec.gov. The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that we make in this press release or the documents we file with or furnish to the SEC are based only on information then actually known to the Company and upon management's beliefs and assumptions at the time they are made which may turn out to be wrong because of inaccurate assumptions we might make, because of the factors described above or because of other factors that we cannot foresee. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2023 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's operating and stock price performance.

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollar amounts in thousands, except shares)



December 31,
2022


September 30,
2022


December 31,
2021

Assets






Cash on hand and in banks

$             74,295


$           100,428


$             61,377

Interest earning deposits

29,295


306,896


1,661,915

Cash and cash equivalents

103,590


407,324


1,723,292

Investment securities available for sale, at fair value (amortized cost of $1,460,033, $1,491,440 and $883,832, respectively)

1,331,443


1,356,142


894,335

Investment securities held to maturity, at amortized cost (fair value of $673,434, $677,335 and $376,331, respectively)

766,396


773,319


383,393

Total investment securities

2,097,839


2,129,461


1,277,728

Loans held for sale

—


—


1,476

Loans receivable

4,050,858


4,001,295


3,815,662

Allowance for credit losses on loans

(42,986)


(42,089)


(42,361)

Loans receivable, net

4,007,872


3,959,206


3,773,301

Other real estate owned

—


—


—

Premises and equipment, net

76,930


76,683


79,370

Federal Home Loan Bank stock, at cost

8,916


8,916


7,933

Bank owned life insurance

122,059


121,369


120,196

Accrued interest receivable

18,547


17,812


14,657

Prepaid expenses and other assets

296,181


230,704


183,543

Other intangible assets, net

7,227


7,898


9,977

Goodwill

240,939


240,939


240,939

Total assets

$       6,980,100


$       7,200,312


$       7,432,412







Liabilities and Stockholders' Equity






Deposits

$       5,907,420


$       6,214,964


$       6,394,290

Deposits held for sale

17,420


22,771


—

Total deposits

5,924,840


6,237,735


6,394,290

Junior subordinated debentures

21,473


21,399


21,180

Securities sold under agreement to repurchase

46,597


40,449


50,839

Accrued expenses and other liabilities

189,297


124,027


111,671

Total liabilities

6,182,207


6,423,610


6,577,980







Common stock

552,397


551,419


551,798

Retained earnings

345,346


330,284


293,238

Accumulated other comprehensive (loss) income, net

(99,850)


(105,001)


9,396

Total stockholders' equity

797,893


776,702


854,432

Total liabilities and stockholders' equity

$       6,980,100


$       7,200,312


$       7,432,412







Shares outstanding

35,106,697


35,104,248


35,105,779

 

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollar amounts in thousands, except per share amounts)



Quarter Ended


Year Ended


December 31,
2022


September 30,
2022


December 31,
2021


December 31,
2022


December 31,
2021

Interest Income










Interest and fees on loans

$         48,513


$         43,847


$         42,695


$       174,275


$       189,832

Taxable interest on investment securities

14,655


12,362


5,197


40,627


17,492

Nontaxable interest on investment securities

843


892


1,063


3,488


3,899

Interest on interest earning deposits

2,010


4,009


633


9,067


1,608

Total interest income

66,021


61,110


49,588


227,457


212,831

Interest Expense










Deposits

2,457


1,478


1,464


6,772


6,160

Junior subordinated debentures

410


312


185


1,156


742

Other borrowings

47


34


31


144


140

Total interest expense

2,914


1,824


1,680


8,072


7,042

Net interest income

63,107


59,286


47,908


219,385


205,789

Provision for (reversal of) credit losses

1,410


1,945


(5,037)


(1,426)


(29,372)

Net interest income after provision for (reversal of) credit losses

61,697


57,341


52,945


220,811


235,161

Noninterest Income










Service charges and other fees

2,651


2,688


2,479


10,390


9,207

Card revenue

2,111


2,365


2,108


8,885


8,325

(Loss) gain on sale of investment securities, net

(256)


—


—


(256)


29

Gain on sale of loans, net

40


133


506


633


3,644

Interest rate swap fees

19


78


174


402


661

Bank owned life insurance income

565


723


500


3,747


2,520

Gain on sale of other assets, net

—


265


2,717


469


4,405

Other income

1,454


1,201


1,355


5,321


5,824

Total noninterest income

6,584


7,453


9,839


29,591


34,615

Noninterest Expense










Compensation and employee benefits

24,856


24,206


22,798


92,092


88,765

Occupancy and equipment

4,541


4,422


4,325


17,465


17,243

Data processing

4,369


4,185


4,694


16,800


16,533

Marketing

675


358


577


1,643


2,143

Professional services

630


639


763


2,497


3,846

State/municipal business and use taxes

1,008


963


850


3,634


3,884

Federal deposit insurance premium

490


500


628


2,015


2,106

Amortization of intangible assets

671


671


759


2,750


3,111

Other expense

3,152


3,203


3,071


12,070


11,638

Total noninterest expense

40,392


39,147


38,465


150,966


149,269

Income before income taxes

27,889


25,647


24,319


99,436


120,507

Income tax expense

5,345


4,657


4,922


17,561


22,472

Net income

$         22,544


$         20,990


$         19,397


$         81,875


$         98,035











Basic earnings per share

$              0.64


$              0.60


$              0.56


$              2.33


$              2.75

Diluted earnings per share

$              0.64


$              0.59


$              0.55


$              2.31


$              2.73

Dividends declared per share

$              0.21


$              0.21


$              0.21


$              0.84


$              0.81

Average shares outstanding - basic

35,104,701


35,103,984


35,154,382


35,103,465


35,677,851

Average shares outstanding - diluted

35,480,848


35,468,890


35,439,998


35,463,896


35,973,386

 

HERITAGE FINANCIAL CORPORATION

FINANCIAL STATISTICS (Unaudited)

(Dollar amounts in thousands, except per share amounts)


Nonperforming Assets and Credit Quality Metrics:



Quarter Ended


Year Ended


December 31,
2022


September 30,
2022


December 31,
2021


December 31,
2022


December 31,
2021

Allowance for Credit Losses on Loans:





Balance, beginning of period

$         42,089


$         39,696


$         48,317


$         42,361


$         70,185

Provision for (reversal of) credit losses on loans

689


1,919


(5,490)


(563)


(27,298)

Charge-offs:










Commercial business

—


—


(519)


(316)


(1,276)

Residential real estate

—


—


—


(30)


—

Real estate construction and land development

—


—


—


—


(1)

Consumer

(151)


(138)


(160)


(547)


(669)

Total charge-offs

(151)


(138)


(679)


(893)


(1,946)

Recoveries:










Commercial business

53


455


81


929


816

Residential real estate

—


—


—


3


—

Real estate construction and land development

210


107


4


384


32

Consumer

96


50


128


765


572

Total recoveries

359


612


213


2,081


1,420

Net recoveries (charge-offs)

208


474


(466)


1,188


(526)

Balance, end of period

$         42,986


$         42,089


$         42,361


$         42,986


$         42,361

Net (recoveries) charge-offs on loans to average loans, annualized

(0.02) %


(0.05) %


0.05 %


(0.03) %


0.01 %

 


December 31,
2022


September 30,
2022


December 31,
2021

Nonperforming Assets:






Nonaccrual loans:






Commercial business

$            5,869


$            6,234


$         23,107

Residential real estate

—


—


47

Real estate construction and land development

37


—


571

Consumer

—


—


29

Total nonaccrual loans

5,906


6,234


23,754

Other real estate owned

—


—


—

Nonperforming assets

$            5,906


$            6,234


$         23,754







Restructured performing loans

$         50,441


$         71,863


$         59,110

Accruing loans past due 90 days or more

1,615


20


293

ACL on loans to:






Loans receivable

1.06 %


1.05 %


1.11 %

Loans receivable, excluding SBA PPP loans (1)

1.06 %


1.05 %


1.15 %

Nonaccrual loans

727.84 %


675.15 %


178.33 %

Nonperforming loans to loans receivable

0.15 %


0.16 %


0.62 %

Nonperforming assets to total assets

0.08 %


0.09 %


0.32 %


(1)

See Non-GAAP Financial Measures section herein.

 

Average Balances, Yields, and Rates Paid:



Quarter Ended


December 31, 2022


September 30, 2022


December 31, 2021


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)

Interest Earning Assets:


















Loans receivable, net (2)(3)

$ 3,963,042


$ 48,513


4.86 %


$ 3,859,839


$ 43,847


4.51 %


$ 3,836,029


$ 42,695


4.42 %

Taxable securities

1,983,178


14,655


2.93


1,868,900


12,362


2.62


1,016,629


5,197


2.03

Nontaxable securities (3)

123,430


843


2.71


133,022


892


2.66


153,686


1,063


2.74

Interest earning deposits

222,538


2,010


3.58


730,600


4,009


2.18


1,665,640


633


0.15

Total interest earning assets

6,292,188


66,021


4.16 %


6,592,361


61,110


3.68 %


6,671,984


49,588


2.95 %

Noninterest earning assets

808,656






775,375






731,613





Total assets

$ 7,100,844






$ 7,367,736






7,403,597





Interest Bearing Liabilities:


















Certificates of deposit

$    299,364


$      455


0.60 %


$    297,786


$      290


0.39 %


$    349,708


$      364


0.41 %

Savings accounts

632,536


107


0.07


654,697


99


0.06


631,531


93


0.06

Interest bearing demand and money market accounts

2,946,425


1,895


0.26


3,065,007


1,089


0.14


2,996,482


1,007


0.13

Total interest bearing deposits

3,878,325


2,457


0.25


4,017,490


1,478


0.15


3,977,721


1,464


0.15

Junior subordinated debentures

21,430


410


7.59


21,356


312


5.80


21,140


185


3.47

Securities sold under agreement to repurchase

43,694


41


0.37


42,959


34


0.31


46,942


31


0.26

FHLB advances and other borrowings

543


6


4.38


—


—


—


—


—


—

Total interest bearing liabilities

3,943,992


2,914


0.29 %


4,081,805


1,824


0.18 %


4,045,803


1,680


0.16 %

Noninterest demand deposits

2,239,806






2,356,688






2,396,452





Other noninterest bearing liabilities

136,645






118,191






111,959





Stockholders' equity

780,401






811,052






849,383





Total liabilities and stockholders' equity

$ 7,100,844






$ 7,367,736






$ 7,403,597





Net interest income and spread



$ 63,107


3.87 %




$ 59,286


3.50 %




$ 47,908


2.79 %

Net interest margin





3.98 %






3.57 %






2.85 %


(1)

Annualized; average balances are calculated using daily balances.


(2)

Average loans receivable, net includes loans held for sale and loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable, net includes the amortization of net deferred loan fees of $723,000, $856,000 and $5.2 million for the fourth quarter of 2022, third quarter of 2022 and fourth quarter of 2021, respectively.


(3)

Yields on tax-exempt loans and securities have not been stated on a tax-equivalent basis.

 


Year Ended


December 31, 2022


December 31, 2021


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)

Interest Earning Assets:












Loans receivable, net (2) (3)

$ 3,852,604


$  174,275


4.52 %


$ 4,181,464


$  189,832


4.54 %

Taxable securities

1,646,058


40,627


2.47


846,892


17,492


2.07

Nontaxable securities (3)

135,004


3,488


2.58


158,968


3,899


2.45

Interest earning deposits

913,374


9,067


0.99


1,193,724


1,608


0.13

Total interest earning assets

6,547,040


227,457


3.47 %


6,381,048


212,831


3.34 %

Noninterest earning assets

774,415






745,202





Total assets

$ 7,321,455






$ 7,126,250





Interest Bearing Liabilities:












Certificates of deposit

$    313,712


$   1,407


0.45 %


$    372,279


$   1,811


0.49 %

Savings accounts

646,565


381


0.06


598,492


367


0.06

Interest bearing demand and money market accounts

3,036,031


4,984


0.16


2,862,504


3,982


0.14

Total interest bearing deposits

3,996,308


6,772


0.17


3,833,275


6,160


0.16

Junior subordinated debentures

21,322


1,156


5.42


21,025


742


3.53

Securities sold under agreement to repurchase

46,209


138


0.30


45,655


140


0.31

FHLB advances and other borrowings

137


6


4.38


—


—


—

Total interest bearing liabilities

4,063,976


8,072


0.20 %


3,899,955


7,042


0.18 %

Noninterest demand deposits

2,326,178






2,269,921





Other noninterest bearing liabilities

119,359






114,307





Stockholders' equity

811,942






842,067





Total liabilities and stockholders' equity

$ 7,321,455






$ 7,126,250





Net interest income and spread



$  219,385


3.27 %




$  205,789


3.16 %

Net interest margin





3.35 %






3.23 %


(1)

Average balances are calculated using daily balances.


(2)

Average loan receivable, net includes loans held for sale and loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable, net includes the amortization of net deferred loan fees of $7.4 million and $28.4 million for the years ended December 31, 2022 and 2021, respectively.


(3)

Yields on tax-exempt loans and securities have not been stated on a tax-equivalent basis.

 

 

HERITAGE FINANCIAL CORPORATION

QUARTERLY FINANCIAL STATISTICS (Unaudited)

(Dollar amounts in thousands, except per share amounts)



Quarter Ended


December 31,
2022


September 30,
2022


June 30,
2022


March 31,
2022


December 31,
2021

Earnings:










Net interest income

$          63,107


$          59,286


$          50,048


$          46,944


$          47,908

Provision for (reversal of) credit losses

1,410


1,945


(1,204)


(3,577)


(5,037)

Noninterest income

6,584


7,453


7,016


8,538


9,839

Noninterest expense

40,392


39,147


35,707


35,720


38,465

Net income

22,544


20,990


18,584


19,757


19,397

Pre-tax, pre-provision net income (3)

29,299


27,592


21,357


19,762


19,282

Basic earnings per share

$              0.64


$              0.60


$              0.53


$              0.56


$              0.56

Diluted earnings per share

$              0.64


$              0.59


$              0.52


$              0.56


$              0.55

Average Balances:










Loans receivable, net (1)

$     3,963,042


$     3,859,839


$     3,812,045


$     3,773,325


$     3,836,029

Total investment securities

2,106,608


2,001,922


1,587,757


1,417,966


1,170,315

Total interest earning assets

6,292,188


6,592,361


6,612,958


6,694,578


6,671,984

Total assets

7,100,844


7,367,736


7,385,616


7,434,787


7,403,597

Total interest bearing deposits

3,878,325


4,017,490


4,041,706


4,049,357


3,977,721

Total noninterest demand deposits

2,239,806


2,356,688


2,349,746


2,359,451


2,396,452

Stockholders' equity

780,401


811,052


810,961


846,085


849,383

Financial Ratios:










Return on average assets (2)

1.26 %


1.13 %


1.01 %


1.08 %


1.04 %

Pre-tax, pre-provision return on average assets (2)(3)

1.64


1.49


1.16


1.08


1.03

Return on average common equity (2)

11.46


10.27


9.19


9.47


9.06

Return on average tangible common equity (2) (3)

17.21


15.20


13.68


13.83


13.27

Efficiency ratio

58.0


58.7


62.6


64.4


66.6

Noninterest expense to average total assets (2)

2.26


2.11


1.94


1.95


2.06

Net interest spread (2)

3.87


3.50


2.98


2.78


2.79

Net interest margin (2)

3.98


3.57


3.04


2.84


2.85


(1)

Average loan receivable, net includes loans held for sale.


(2)

Annualized.


(3)

See Non-GAAP Financial Measures section herein.

 


As of or for the Quarter Ended


December 31,
2022


September 30,
2022


June 30,
2022


March 31,
2022


December 31,
2021

Select Balance Sheet:










Total assets

$    6,980,100


$    7,200,312


$    7,316,467


$    7,483,814


$    7,432,412

Loans receivable, net

4,007,872


3,959,206


3,834,368


3,780,845


3,773,301

Total investment securities

2,097,839


2,129,461


1,803,241


1,462,137


1,277,728

Deposits

5,924,840


6,237,735


6,330,190


6,491,500


6,394,290

Noninterest demand deposits

2,099,464


2,308,583


2,325,139


2,393,972


2,343,909

Stockholders' equity

797,893


776,702


805,366


821,449


854,432

Financial Measures:










Book value per share

$            22.73


$            22.13


$            22.94


$            23.40


$            24.34

Tangible book value per share (1)

15.66


15.04


15.83


16.27


17.19

Tangible book value per share, excluding AOCI (1)

18.50


18.03


17.59


17.25


16.92

Stockholders' equity to total assets

11.4 %


10.8 %


11.0 %


11.0 %


11.5 %

Tangible common equity to tangible assets (1)

8.2


7.6


7.9


7.9


8.4

Tangible common equity, excluding AOCI, to tangible assets, excluding UGL (1)

9.5


9.0


8.7


8.3


8.3

Loans to deposits ratio

68.4


64.1


61.2


58.9


59.7

Regulatory Capital Ratios:










Common equity tier 1 capital ratio(2)

12.8 %


12.8 %


13.2 %


13.4 %


13.5 %

Leverage ratio(2)

9.7


9.2


8.9


8.8


8.7

Tier 1 capital ratio(2)

13.2


13.3


13.6


13.9


13.9

Total capital ratio(2)

14.0


14.0


14.4


14.7


14.8

Credit Quality Metrics:










ACL on loans to:










Loans receivable

1.06 %


1.05 %


1.02 %


1.06 %


1.11 %

Loans receivable, excluding SBA PPP loans (1)

1.06


1.05


1.03


1.07


1.15

Nonperforming loans

727.84


675.15


378.96


244.04


178.33

Nonperforming loans to loans receivable

0.15


0.16


0.27


0.43


0.62

Nonperforming assets to total assets

0.08


0.09


0.14


0.22


0.32

Net (recoveries) charge-offs on loans to average loans receivable

(0.02)


(0.05)


—


(0.05)


0.05

Criticized Loans by Credit Quality Rating:

Special mention

$         69,449


$         84,439


$         72,062


$         63,269


$         71,020

Substandard

65,765


66,376


94,419


111,300


112,450

Other Metrics:










Number of banking offices

50


50


49


49


49

Deposits per branch

$       118,497


$       124,755


$       129,188


$       132,480


$       130,496

Average number of full-time equivalent employees

813


790


765


751


782

Average assets per full-time equivalent employee

8,734


9,326


9,654


9,900


9,468



(1)

See Non-GAAP Financial Measures section herein.



(2)

Current quarter ratios are estimates pending completion and filing of the Company's regulatory reports.





HERITAGE FINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES (Unaudited)
(Dollar amounts in thousands, except per share amounts)

This earnings release contains certain financial measures not presented in accordance with Generally Accepted Accounting Principles ("GAAP") in addition to financial measures presented in accordance with GAAP. The Company has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company's capital, performance and asset quality reflected in the current quarter and comparable period results and to facilitate comparison of its performance with the performance of its peers. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial measures presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

The Company considers the tangible common equity to tangible assets ratio and tangible book value per share to be useful measurements of the adequacy of the Company's capital levels. Additionally, recent changes in market interest rates introduced significant volatility in the unrealized gain or loss of investment securities available for sale ("UGL") and the related AOCI. Management excluded AOCI and UGL from tangible common equity and tangible assets, respectively, to improve comparability of capital levels as AOCI and UGL are excluded from the calculation of regulatory capital ratios.


December 31,
2022


September 30,
2022


June 30,
2022


March 31,
2022


December 31,
2021

Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share:

Total stockholders' equity (GAAP)

$       797,893


$       776,702


$       805,366


$       821,449


$       854,432

Exclude intangible assets

(248,166)


(248,837)


(249,508)


(250,212)


(250,916)

Tangible common equity (non-GAAP)

549,727


527,865


555,858


571,237


603,516

Exclude AOCI

99,850


105,001


61,783


34,228


(9,396)

Tangible common equity, excluding AOCI (non-GAAP)

$       649,577


$       632,866


$       617,641


$       605,465


$       594,120











Total assets (GAAP)

$    6,980,100


$    7,200,312


$    7,316,467


$    7,483,814


$    7,432,412

Exclude intangible assets

(248,166)


(248,837)


(249,508)


(250,212)


(250,916)

Tangible assets (non-GAAP)

6,731,934


6,951,475


7,066,959


7,233,602


7,181,496

Exclude UGL, net of tax

99,850


105,001


61,783


34,228


(9,396)

Tangible assets, excluding UGL, net of tax (non-GAAP)

$    6,831,784


$    7,056,476


$    7,128,742


$    7,267,830


$    7,172,100











Stockholders' equity to total assets (GAAP)

11.4 %


10.8 %


11.0 %


11.0 %


11.5 %

Tangible common equity to tangible assets (non-GAAP)

8.2 %


7.6 %


7.9 %


7.9 %


8.4 %

Tangible common equity, excluding AOCI, to tangible assets, excluding UGL

9.5 %


9.0 %


8.7 %


8.3 %


8.3 %











Shares outstanding

35,106,697


35,104,248


35,103,929


35,102,372


35,105,779











Book value per share (GAAP)

$            22.73


$            22.13


$            22.94


$            23.40


$            24.34

Tangible book value per share (non-GAAP)

$            15.66


$            15.04


$            15.83


$            16.27


$            17.19

Tangible book value per share, excluding AOCI (non-GAAP)

$            18.50


$            18.03


$            17.59


$            17.25


$            16.92











The Company considers presenting the ratio of ACL on loans to loans receivable, excluding SBA PPP loans, to be a useful measurement in evaluating the adequacy of the Company's ACL on loans as the balance of SBA PPP loans was significant to the loan portfolio; however, since SBA PPP loans are guaranteed by the SBA, the Company has not provided an ACL for these loans.


December 31,
2022


September 30,
2022


June 30,
2022


March 31,
2022


December 31,
2021

ACL on Loans to Loans Receivable, excluding SBA PPP Loans:

Allowance for credit losses on loans

$         42,986


$         42,089


$         39,696


$         40,333


$         42,361











Loans receivable (GAAP)

$    4,050,858


$    4,001,295


$    3,874,064


$    3,821,178


$    3,815,662

Exclude SBA PPP loans

(1,468)


(3,593)


(11,334)


(64,962)


(145,840)

Loans receivable, excluding SBA PPP loans (non-GAAP)

$    4,049,390


$    3,997,702


$    3,862,730


$    3,756,216


$    3,669,822











ACL on loans to loans receivable (GAAP)

1.06 %


1.05 %


1.02 %


1.06 %


1.11 %

ACL on loans to loans receivable, excluding SBA PPP loans (non-GAAP)

1.06 %


1.05 %


1.03 %


1.07 %


1.15 %











The Company considers the return on average tangible common equity ratio to be a useful measurement of the Company's ability to generate returns for its common shareholders. By removing the impact of intangible assets and their related amortization and tax effects, the performance of the Company's ongoing business operations can be evaluated.


Quarter Ended


December 31,
2022


September 30,
2022


June 30,
2022


March 31,
2022


December 31,
2021

Return on Average Tangible Common Equity, annualized:

Net income (GAAP)

$         22,544


$         20,990


$         18,584


$         19,757


$         19,397

Add amortization of intangible assets

671


671


704


704


759

Exclude tax effect of adjustment

(141)


(141)


(148)


(148)


(159)

Tangible net income (non-GAAP)

$         23,074


$         21,520


$         19,140


$         20,313


$         19,997











Average stockholders' equity (GAAP)

$       780,401


$       811,052


$       810,961


$       846,085


$       849,383

Exclude average intangible assets

(248,560)


(249,245)


(249,890)


(250,593)


(251,331)

Average tangible common stockholders' equity (non-GAAP)

$       531,841


$       561,807


$       561,071


$       595,492


$       598,052











Return on average common equity, annualized (GAAP)

11.46 %


10.27 %


9.19 %


9.47 %


9.06 %

Return on average tangible common equity, annualized (non-GAAP)

17.21 %


15.20 %


13.68 %


13.83 %


13.27 %











The Company believes that presenting pre-tax pre-provision income, which reflects its profitability before income taxes and provision for credit losses, and the pre-tax, pre-provision return on average assets, are useful measurements in assessing its operating income and expenses by removing the volatility that may be associated with credit loss provisions. The Company also believes that during a crisis such as the COVID-19 pandemic, this information has been useful as the impact of the pandemic on credit loss provisions of various institutions has varied based on the geography of the communities served by a particular institution and the decision to adopt or defer the current expected credit losses ("CECL") methodology required by Accounting Standards Update 2016-13.


Quarter Ended


December 31,
2022


September 30,
2022


June 30,
2022


March 31,
2022


December 31,
2021

Pre-tax, Pre-provision Income and Pre-tax, Pre-provision Return on Average Assets, annualized:

Net income (GAAP)

$         22,544


$         20,990


$         18,584


$         19,757


$         19,397

Add income tax expense

5,345


4,657


3,977


3,582


4,922

Add provision for (reversal of) credit losses

1,410


1,945


(1,204)


(3,577)


(5,037)

Pre-tax, pre-provision income (non-GAAP)

$         29,299


$         27,592


$         21,357


$         19,762


$         19,282











Average total assets (GAAP)

$    7,100,844


$    7,367,736


$    7,385,616


$    7,434,787


$    7,403,597











Return on average assets, annualized (GAAP)

1.26 %


1.13 %


1.01 %


1.08 %


1.04 %

Pre-tax, pre-provision return on average assets (non-GAAP)

1.64 %


1.49 %


1.16 %


1.08 %


1.03 %











The Company believes presenting loan yield excluding the effect of discount accretion on acquired loans is useful in assessing the impact of acquisition accounting on loan yield as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off its balance sheet. Incremental accretion on acquired loans represents the amount of interest income recorded on acquired loans in excess of the contractual stated interest rate in the individual loan notes due to incremental accretion of purchased discount or premium. Purchased discount or premium is the difference between the contractual loan balance and the fair value of acquired loans at the acquisition date, or as modified by the adoption of CECL. The purchased discount is accreted into income over the remaining life of the loan. The impact of incremental accretion on loan yield will change during any period based on the volume of prepayments, but it is expected to decrease over time as the balance of the purchased loans decreases.

Similarly, presenting loan yield excluding the effect of SBA PPP loans is useful in assessing the impact of these special program loans that have substantially decreased within a short time frame.


Quarter Ended


December 31,
2022


September 30,
2022


December 31,
2021

Loan Yield, excluding SBA PPP Loans and Incremental Accretion on Purchased Loans, annualized:

Interest and fees on loans (GAAP)

$         48,513


$         43,847


$         42,695

Exclude interest and fees on SBA PPP loans

(77)


(275)


(4,928)

Exclude incremental accretion on purchased loans

(184)


(398)


(387)

Adjusted interest and fees on loans (non-GAAP)

$         48,252


$         43,174


$         37,380







Average loans receivable, net (GAAP)

$    3,963,042


$    3,859,839


$    3,836,029

Exclude average SBA PPP loans

(2,250)


(5,726)


(204,436)

Adjusted average loans receivable, net (non-GAAP)

$    3,960,792


$    3,854,113


$    3,631,593







Loan yield, annualized (GAAP)

4.86 %


4.51 %


4.42 %

Loan yield, excluding SBA PPP loans and acquired accretion on purchased loans, annualized (non-GAAP)

4.83 %


4.44 %


4.08 %

 

 

Cision View original content:https://www.prnewswire.com/news-releases/heritage-financial-announces-fourth-quarter-and-annual-2022-results-and-declares-regular-cash-dividend-301731255.html

SOURCE Heritage Financial Corporation

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