HERITAGE FINANCIAL CORP WA
For the period ended Dec 31, 2023. Filed Feb 27, 2024.
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FY2023 · Filed Feb 27, 2024
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DEPOSITS OVERVIEW
The following table summarizes the Company's deposits at the dates indicated:
| December 31, 2023 · December 31, 2022 · Change | ||||||
|---|---|---|---|---|---|---|
| Balance (1) | % of Total | Balance(1) | % of Total | $ | % | |
| (Dollars in thousands) | ||||||
| Noninterest demand deposits | $1,715,847 | 30.7% | $2,099,464 | 35.5% | $(383,617) | (18.3)% |
| Interest bearing demand deposits | 1,608,745 | 28.7 | 1,830,727 | 30.9 | (221,982) | (12.1) |
| Money market accounts | 1,094,351 | 19.5 | 1,063,243 | 17.9 | 31,108 | 2.9 |
| Savings accounts | 487,956 | 8.7 | 623,833 | 10.5 | (135,877) | (21.8) |
| Total non-maturity deposits | 4,906,899 | 87.6 | 5,617,267 | 94.8 | (710,368) | (12.6) |
| Certificates of deposit | 692,973 | 12.4 | 307,573 | 5.2 | 385,400 | 125.3 |
| Total deposits | $5,599,872 | 100.0% | $5,924,840 | 100.0% | $(324,968) | (5.5)% |
(1)Deposit balances at December 31, 2022 include deposits held for sale of $17.4 million, respectively.
Total deposits decreased $325.0 million, or 5.5%, to $5.60 billion at December 31, 2023, compared to $5.92 billion at December 31, 2022 due primarily to competitive rate pressures and interest rate sensitive clients moving a portion of their non-operating deposits to higher yielding accounts. Certificate of deposits increased due to increasing rates which attracted customers to this deposit type as well as the addition of $115.0 million in brokered deposits.
The Company entered into a purchase and sale agreement with a third party to sell and transfer certain assets, deposits and other liabilities of its branch in Ellensburg, WA in September 2022. During the three months ended September 30, 2023,
$13.8 million in deposits were sold as part of the closing of the Ellensburg branch sale, which included $13.6 million of non-maturity deposits. At December 31, 2022, $17.4 million in deposits were classified as held for sale.
Total deposits include uninsured deposits of approximately $2.10 billion and $2.37 billion at December 31, 2023 and 2022, respectively, calculated in accordance with FDIC guidelines. Uninsured deposits included $256.5 million fully collateralized deposits as of December 31, 2023, The Bank does not hold any foreign deposits.
The following table provides the estimated uninsured portion of certificates of deposit that are in excess of the FDIC insurance limit, by remaining time until maturity at December 31, 2023, by account, with a maturity of:
| (Dollars in thousands) | |
|---|---|
| Three months or less | $121,833 |
| Over three months through six months | 46,294 |
| Over six months through twelve months | 75,392 |
| Over twelve months | 2,679 |
| Total | $246,198 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.