HERITAGE FINANCIAL CORP /WA/
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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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, 2025 · Filed Aug 8, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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NONINTEREST EXPENSE OVERVIEW
Noninterest Expense
Comparison of three months ended June 30, 2025 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 EndedJune 30, · Change | ||||
|---|---|---|---|---|
| 2025 | 2024 | $ | % | |
| (Dollars in thousands) | ||||
| Compensation and employee benefits | $25,467 | $24,448 | $1,019 | 4.2% |
| Occupancy and equipment | 4,840 | 4,765 | 75 | 1.6 |
| Data processing | 3,666 | 3,584 | 82 | 2.3 |
| Marketing | 336 | 244 | 92 | 37.7 |
| Professional services | 1,122 | 795 | 327 | 41.1 |
| State/municipal business and use taxes | 1,205 | 1,160 | 45 | 3.9 |
| Federal deposit insurance premium | 810 | 812 | (2) | (0.2) |
| Amortization of intangible assets | 302 | 421 | (119) | (28.3) |
| Other expense | 3,337 | 2,867 | 470 | 16.4 |
| Total noninterest expense | $41,085 | $39,096 | $1,989 | 5.1% |
Noninterest expense increased $2.0 million, or 5.1%, during the three months ended June 30, 2025, compared to the same period in 2024 due primarily to an increase in compensation and employee benefits resulting from annual merit increases in base pay and an increase in benefit costs. Professional services increased due primarily to consulting costs related to technology-related contract renewals recognized in the second quarter of 2025.
Comparison of the six months ended June 30, 2025 to the comparable period in the prior year
The following table presents changes in the key components of noninterest expense for the periods indicated:
| Six Months EndedJune 30, · Change | ||||
|---|---|---|---|---|
| 2025 | 2024 | $ | % | |
| (Dollars in thousands) | ||||
| Compensation and employee benefits | $51,266 | $49,924 | $1,342 | 2.7% |
| Occupancy and equipment | 9,766 | 9,697 | 69 | 0.7 |
| Data processing | 7,563 | 6,915 | 648 | 9.4 |
| Marketing | 671 | 455 | 216 | 47.5 |
| Professional services | 1,856 | 1,362 | 494 | 36.3 |
| State/municipal business and use taxes | 2,425 | 2,460 | (35) | (1.4) |
| Federal deposit insurance premium | 1,622 | 1,607 | 15 | 0.9 |
| Amortization of intangible assets | 605 | 842 | (237) | (28.1) |
| Other expense | 6,694 | 6,204 | 490 | 7.9 |
| Total noninterest expense | $82,468 | $79,466 | $3,002 | 3.8% |
Noninterest expense increased $3.0 million, or 3.8%, during the six months ended June 30, 2025, compared to the same period in 2024 due primarily to an increase in compensation and employee benefits primarily resulting from annual merit increases in base pay and an increase in benefit costs. Data processing expense increased primarily due to annual cost increases during the six months ended June 30, 2025 and a $243,000 refund recognized in the six months ended June 30, 2024 related to a contract termination. Professional services increased due primarily to consulting costs related to technology-related contract renewals recognized during the six months ended June 30, 2025. Amortization of intangible assets decreased due to the full amortization of the core deposit intangible from one acquisition.
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