HERITAGE FINANCIAL CORP WA
For the period ended Jun 30, 2024. Filed Aug 9, 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.
Jun 30, 2024 · Filed Aug 9, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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NONINTEREST INCOME OVERVIEW
Comparison of the three months ended June 30, 2024 to the comparable period in the prior year
The following table presents the change in the key components of noninterest income for the periods indicated:
| Three Months EndedJune 30, · Change | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ | % | |
| (Dollars in thousands) | ||||
| Service charges and other fees | $2,817 | $2,682 | $135 | 5.0% |
| Card revenue | 1,930 | 2,123 | (193) | (9.1) |
| Loss on sale of investment securities, net | (1,921) | — | (1,921) | 100.0 |
| Gain on sale of loans, net | — | 101 | (101) | (100.0) |
| Interest rate swap fees | 52 | 115 | (63) | (54.8) |
| Bank owned life insurance income | 931 | 837 | 94 | 11.2 |
| Gain on sale of other assets, net | 49 | — | 49 | 100.0 |
| Other income | 1,388 | 1,423 | (35) | (2.5) |
| Total noninterest income | $5,246 | $7,281 | $(2,035) | (27.9)% |
Noninterest income decreased $2.0 million from the same period in 2023, due primarily to a $1.9 million pre-tax loss on the sale of investment securities during the three months ended June 30, 2024, as part of the Company's strategic balance sheet repositioning. Card revenue declined modestly due to a reduction in card activity as non-maturity deposit balances have declined.
Comparison of six months ended June 30, 2024 to the comparable period in the prior year
The following table presents the change in the key components of noninterest income for the periods indicated:
| Six Months EndedJune 30, · Change | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ | % | |
| (Dollars in thousands) | ||||
| Service charges and other fees | $5,605 | $5,306 | $299 | 5.6% |
| Card revenue | 3,769 | 4,123 | (354) | (8.6) |
| Loss on sale of investment securities, net | (11,894) | (286) | (11,608) | 4,058.7 |
| Gain on sale of loans, net | 26 | 150 | (124) | (82.7) |
| Interest rate swap fees | 52 | 168 | (116) | (69.0) |
| Bank owned life insurance income | 1,851 | 1,546 | 305 | 19.7 |
| Gain on sale of other assets, net | 49 | 2 | 47 | 2,350.0 |
| Other income | 2,888 | 4,530 | (1,642) | (36.2) |
| Total noninterest income | $2,346 | $15,539 | $(13,193) | (84.9)% |
Noninterest income decreased $13.2 million, or 84.9%, during the six months ended June 30, 2024 compared to the same period in 2023, due primarily to a loss on sale of investment securities of $11.9 million recognized during the six months ended June 30, 2024 as a result of the sale of $170.9 million of investment securities available for sale. Other income decreased due primarily to a one-time $1.6 million gain on sale of Visa Inc. Class B common stock recognized during the six months ended June 30, 2023. Card revenue declined modestly due to a reduction in card activity as non-maturity deposit balances have declined.
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