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Midas Edge

HERITAGE FINANCIAL CORP WA

For the period ended Sep 30, 2024. Filed Nov 6, 2024.

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About this filing

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.

Sep 30, 2024 · Filed Nov 6, 2024

HFWA$28.39-0.6%Stored close · as of Nov 6, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

NONINTEREST EXPENSE OVERVIEW

Comparison of three months ended September 30, 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 EndedSeptember 30, · Change
20242023$%
(Dollars in thousands)
Compensation and employee benefits$24,367$25,008$(641)(2.6)%
Occupancy and equipment4,8504,814360.7
Data processing3,9154,116(201)(4.9)
Marketing128389(261)(67.1)
Professional services490582(92)(15.8)
State/municipal business and use taxes1,2491,08816114.8
Federal deposit insurance premium82481860.7
Amortization of intangible assets399595(196)(32.9)
Other expense3,0683,560(492)(13.8)
Total noninterest expense$39,290$40,970$(1,680)(4.1)%

Noninterest expense decreased $1.7 million, or 4.1%, during the three months ended September 30, 2024 compared to the same period in 2023, primarily due to a decrease in compensation and employee benefits expense as a result of a reduction in full-time equivalent employees to 749 at September 30, 2024 from 821 at September 30, 2023, in connection with expense management initiatives. These expense management initiatives also impacted data processing expense, which decreased primarily due to a decline in ongoing costs resulting from prior technology-related contract renewals and terminations and decreased marketing and other expense.

Comparison of the nine months ended September 30, 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:

Nine Months EndedSeptember 30, · Change
20242023$%
(Dollars in thousands)
Compensation and employee benefits$74,291$75,325$(1,034)(1.4)%
Occupancy and equipment14,54714,3721751.2
Data processing10,73212,427(1,695)(13.6)
Marketing5831,232(649)(52.7)
Professional services1,8521,961(109)(5.6)
State/municipal business and use taxes3,7093,15055917.7
Federal deposit insurance premium2,4312,465(34)(1.4)
Amortization of intangible assets1,2411,841(600)(32.6)
Other expense9,37011,127(1,757)(15.8)
Total noninterest expense$118,756$123,900$(5,144)(4.2)%

Noninterest expense decreased $5.1 million, or 4.2%, during the nine months ended September 30, 2024 compared to the same period in 2023 due primarily to a decrease in data processing and other expense. Data processing expense decreased primarily due to a decline in ongoing costs resulting from technology-related contract renewals and terminations. Other expense decreased primarily due to a decline in customer deposit loss expense and employee related expense, which included additional expenses related to calling efforts for the newly added teams, as well as a general increase in operating costs incurred during the nine months ended September 30, 2023. Amortization of intangible assets decreased due to the full amortization of the core deposit intangible from one acquisition. Compensation and employee benefits expense decreased due primarily to a decline in the average number of full-time equivalent employees as a result of expense management initiatives during the nine months ended September 30, 2024. This was offset partially by an increase in state/municipal business and use tax expense due primarily to an increase in gross revenue.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.