HERITAGE FINANCIAL CORP WA
For the period ended Dec 31, 2023. Filed Feb 27, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 27, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
PROVISION FOR CREDIT LOSSES OVERVIEW
The aggregate of the provision for credit losses on loans and the provision for credit losses on unfunded commitments is presented on the Consolidated Statements of Income as the "Provision for (reversal of) credit losses." The ACL on unfunded commitments is included on the Consolidated Statements of Financial Condition within "Accrued expenses and other liabilities."
The following table presents the provision for (reversal of) credit losses for the periods indicated:
| Year Ended December 31, · Change | ||||
|---|---|---|---|---|
| 2023 | 2022 | $ | % | |
| (Dollars in thousands) | ||||
| Provision for (reversal of) credit losses on loans | $4,736 | $(563) | $5,299 | (941.2)% |
| (Reversal of) provision for credit losses on unfunded commitments | (456) | (863) | 407 | (47.2) |
| Provision for (reversal of) credit losses | $4,280 | $(1,426) | $5,706 | (400.1)% |
The provision for credit losses on loans recognized during the year ended December 31, 2023 was due primarily to growth in balances of collectively evaluated loans. The ACL on loans to Loans receivable increased to 1.11% as December 31, 2023, compared to 1.06% at December 31, 2022 due to changes in the loan mix as loan growth occurred in segments requiring a higher calculated reserve as a percentage of loans including real estate construction and land development loans. The reversal of provision for credit losses on unfunded commitments recognized during the year ended December 31, 2023 was due primarily to an increase in utilization rates on lines of credit and a decrease in the unfunded exposure on construction loans.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.