Heritage Financial Corp
NASDAQ:HFWA
Heritage Financial Corp
Heritage Financial Corp. is bank holding company, which engages in the business of planning, directing, and coordinating the business activities of wholly owned subsidiary Heritage Bank. The company is headquartered in Olympia, Washington and currently employs 727 full-time employees. The Company’s business consists primarily of commercial lending and deposit relationships with small to medium sized businesses and their owners in its market areas and attracting deposits from the general public. The Company’s business activities generally are limited to passive investment activities and oversight of its investment in the Bank. The firm also make real estate construction and land development loans and consumer loans. The company ceases indirect auto loan originations, included in its consumer portfolio. The firm additionally originate for sale or for investment purposes residential real estate loans on single family properties located primarily in its markets.
Heritage Financial Corp. is bank holding company, which engages in the business of planning, directing, and coordinating the business activities of wholly owned subsidiary Heritage Bank. The company is headquartered in Olympia, Washington and currently employs 727 full-time employees. The Company’s business consists primarily of commercial lending and deposit relationships with small to medium sized businesses and their owners in its market areas and attracting deposits from the general public. The Company’s business activities generally are limited to passive investment activities and oversight of its investment in the Bank. The firm also make real estate construction and land development loans and consumer loans. The company ceases indirect auto loan originations, included in its consumer portfolio. The firm additionally originate for sale or for investment purposes residential real estate loans on single family properties located primarily in its markets.
EPS Growth: Adjusted diluted EPS rose 18% quarter-over-quarter and 29% year-over-year.
Margin Expansion: Net interest margin increased to 3.72% from 3.64% last quarter and 3.36% a year ago.
Deposit Growth: Deposits rose by $63 million in Q4 and $236 million for the year, driven mainly by interest-bearing demand deposits.
Olympic Bancorp Merger: Regulatory and shareholder approval for the Olympic Bancorp merger has been secured, with closing expected at the end of January.
Credit Quality: Credit quality remains strong, with nonaccrual loans at 0.44% of total loans and full-year net charge-offs at a low 0.03%.
Loan Production: New commercial loan commitments were $254 million, down from last quarter but pipeline remains healthy at $468 million.
Expense Control: Noninterest expense declined due to lower merger costs, with efficiency gains expected post-merger.
