HERITAGE FINANCIAL CORP WA
For the period ended Mar 31, 2024. Filed May 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 7, 2024
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NONINTEREST EXPENSE OVERVIEW
Comparison of three months ended March 31, 2024 to the comparable period in the prior year
The following table presents changes in the key components of noninterest expense for the periods indicated:
| Three Months Ended March 31, · Change | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ | % | |
| (Dollars in thousands) | ||||
| Compensation and employee benefits | $25,476 | $25,536 | $(60) | (0.2)% |
| Occupancy and equipment | 4,932 | 4,892 | 40 | 0.8 |
| Data processing | 3,537 | 4,342 | (805) | (18.5) |
| Three Months Ended March 31, · Change | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ | % | |
| (Dollars in thousands) | ||||
| Marketing | 211 | 402 | (191) | (47.5) |
| Professional services | 567 | 628 | (61) | (9.7) |
| State/municipal business and use tax | 1,300 | 1,008 | 292 | 29.0 |
| Federal deposit insurance premium | 795 | 850 | (55) | (6.5) |
| Amortization of intangible assets | 421 | 623 | (202) | (32.4) |
| Other expense | 3,131 | 3,324 | (193) | (5.8) |
| Total noninterest expense | $40,370 | $41,605 | $(1,235) | (3.0)% |
Noninterest expense decreased $1.2 million, or 3.0%, during the three months ended March 31, 2024 compared to the same period in 2023 primarily due to a decrease in data processing expense. Data processing expense decreased primarily due to a decline in ongoing costs resulting from prior technology-related contract renewals and terminations. Amortization of intangible assets decreased due to a reduction in core deposit intangible expense. Marketing expenses decreased due to expense management efforts during the three months ended March 31, 2024. The decrease was partially offset by an increase in state/municipal business and use tax due to an increase in gross revenue.
Compensation and employee benefit expense recognized in the three months ended March 31, 2024 included $1.1 million in severance costs recognized as a result of staff reductions. The average number of full-time equivalent employees was 765 during the three months ended March 31, 2024 as compared to 809 in the same period in 2023.
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