HERITAGE FINANCIAL CORP WA
For the period ended Sep 30, 2024. Filed Nov 6, 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.
Sep 30, 2024 · Filed Nov 6, 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 September 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 EndedSeptember 30, · Change | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ | % | |
| (Dollars in thousands) | ||||
| Service charges and other fees | $2,788 | $2,856 | $(68) | (2.4)% |
| Card revenue | 2,134 | 2,273 | (139) | (6.1) |
| Loss on sale of investment securities, net | (6,945) | (1,940) | (5,005) | 258.0 |
| Gain on sale of loans, net | — | 157 | (157) | (100.0) |
| Interest rate swap fees | — | 62 | (62) | (100.0) |
| Bank owned life insurance income | 860 | 734 | 126 | 17.2 |
| Gain on sale of other assets, net | 1,480 | — | 1,480 | 100.0 |
| Other income | 1,520 | 2,129 | (609) | (28.6) |
| Total noninterest income | $1,837 | $6,271 | $(4,434) | (70.7)% |
Noninterest income decreased $4.4 million from the same period in 2023, due primarily to a $6.9 million pre-tax loss on the sale of investment securities during the three months ended September 30, 2024, as compared to a $1.9 million pre-tax loss on the sale of investment securities recognized in the same period in 2023, both as part of the Company's strategic balance sheet repositioning efforts. Other income declined due to a $610,000 gain on sale of the Ellensburg, WA branch deposits recognized during the three months ended September 30, 2023. The decrease was partially offset by an increase in gain on sale of other assets, net which was due to a $1.5 million gain on the sale of an administrative building recognized during the three months ended September 30, 2024.
Comparison of nine months ended September 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:
| Nine Months EndedSeptember 30, · Change | ||||
|---|---|---|---|---|
| 2024 | 2023 | $ | % | |
| (Dollars in thousands) | ||||
| Service charges and other fees | $8,393 | $8,162 | $231 | 2.8% |
| Card revenue | 5,903 | 6,396 | (493) | (7.7) |
| Loss on sale of investment securities, net | (18,839) | (2,226) | (16,613) | 746.3 |
| Gain on sale of loans, net | 26 | 307 | (281) | (91.5) |
| Interest rate swap fees | 52 | 230 | (178) | (77.4) |
| Bank owned life insurance income | 2,711 | 2,280 | 431 | 18.9 |
| Gain on sale of other assets, net | 1,529 | 2 | 1,527 | 76,350.0 |
| Other income | 4,408 | 6,659 | (2,251) | (33.8) |
| Total noninterest income | $4,183 | $21,810 | $(17,627) | (80.8)% |
Noninterest income decreased $17.6 million, or 80.8%, during the nine months ended September 30, 2024 compared to the same period in 2023, due primarily to a pre-tax loss on sale of investment securities of $18.8 million recognized during the nine months ended September 30, 2024 as a result of the sale of investment securities with an amortized cost of $260.8 million in connection with the Company's strategic balance sheet repositioning efforts. Other income decreased due primarily to a one-time $1.6 million gain on sale of Visa Inc. Class B common stock and a $610,000 gain on the sale of the Ellensburg, WA branch deposits recognized during the nine months ended September 30, 2023. Card revenue declined modestly due to a reduction in card activity as non-maturity deposit balances have declined. The decrease was partially offset by an increase in gain on sale of other assets, net which was due to a $1.5 million gain on the sale of an administrative building recognized during the nine months ended September 30, 2024.
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