HERITAGE FINANCIAL CORP /WA/
For the period ended Mar 31, 2025. Filed May 6, 2025.
View on SEC.govAbout 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.
Mar 31, 2025 · Filed May 6, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
INVESTMENT ACTIVITIES OVERVIEW
Investment Activities
Our investment policy is established by the Board and monitored by the Risk Committee of the Board. It is designed primarily to provide and maintain liquidity, generate a favorable return on investments without incurring undue interest rate and credit risk, and complement the Company's lending activities. The policy permits investment in various types of liquid assets permissible under applicable regulations. Investment in sub-investment grade bonds is not permitted under the policy.
The following table provides information regarding our investment securities at the dates indicated:
| March 31, 2025 · December 31, 2024 · Change | ||||||
|---|---|---|---|---|---|---|
| Balance | % ofTotal | Balance | % ofTotal | $ | % | |
| (Dollars in thousands) | ||||||
| Investment securities available for sale, at fair value: | ||||||
| U.S. government and agency securities | $11,436 | 0.8% | $12,544 | 0.9% | $(1,108) | (8.8)% |
| Municipal securities | 50,725 | 3.6 | 50,942 | 3.5 | (217) | (0.4) |
| Residential CMO and MBS(1) | 356,860 | 25.2 | 369,331 | 25.2 | (12,471) | (3.4) |
| Commercial CMO and MBS(1) | 275,840 | 19.6 | 309,741 | 21.0 | (33,901) | (10.9) |
| Corporate obligations | 11,830 | 0.8 | 11,770 | 0.8 | 60 | 0.5 |
| Other asset-backed securities | 9,651 | 0.7 | 10,066 | 0.7 | (415) | (4.1) |
| Total | $716,342 | 50.7% | $764,394 | 52.1% | $(48,052) | (6.3)% |
| Investment securities held to maturity, at amortized cost: | ||||||
| U.S. government and agency securities | $151,246 | 10.7% | $151,216 | 10.3% | $30 | —% |
| Residential CMO and MBS(1) | 239,351 | 16.9 | 244,309 | 16.6 | (4,958) | (2.0) |
| Commercial CMO and MBS(1) | 306,964 | 21.7 | 307,760 | 21.0 | (796) | (0.3) |
| Total | $697,561 | 49.3% | $703,285 | 47.9% | $(5,724) | (0.8)% |
| Total investment securities | $1,413,903 | 100.0% | $1,467,679 | 100.0% | $(53,776) | (3.7)% |
(1)U.S. government agency and government-sponsored enterprise CMO and MBS obligations.
Total investment securities decreased $53.8 million, or 3.7%, to $1.41 billion at March 31, 2025 from $1.47 billion at December 31, 2024. As previously noted, the Company sold $60.9 million of investment securities at a pre-tax loss of $3.9 million as part of its strategic balance sheet repositioning. In addition, there were investment maturities and repayments of $36.8 million during the three months ended March 31, 2025. The decrease was partially offset by investment purchases of $28.2 million during the three months ended March 31, 2025 and a $15.5 million decrease in unrealized losses on available for sale securities, due primarily to changes in market rates.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.