HERITAGE FINANCIAL CORP /WA/
For the period ended Sep 30, 2025. Filed Nov 7, 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.
Sep 30, 2025 · Filed Nov 7, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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NONINTEREST INCOME OVERVIEW
Noninterest Income
Comparison of the three months ended September 30, 2025 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 | ||||
|---|---|---|---|---|
| 2025 | 2024 | $ | % | |
| (Dollars in thousands) | ||||
| Service charges and other fees | $3,046 | $2,788 | $258 | 9.3% |
| Card revenue | 2,209 | 2,134 | 75 | 3.5 |
| Loss on sale of investment securities, net | — | (6,945) | 6,945 | (100.0) |
| Interest rate swap fees | 96 | — | 96 | 100.0 |
| Bank owned life insurance income | 1,008 | 860 | 148 | 17.2 |
| Gain on sale of other assets, net | — | 1,480 | (1,480) | (100.0) |
| Other income | 1,966 | 1,520 | 446 | 29.3 |
| Total noninterest income | $8,325 | $1,837 | $6,488 | 353.2% |
Noninterest income increased $6.5 million from the same period in 2024, due primarily to a $6.9 million pre-tax loss on the sale of investment securities recognized during the three months ended September 30, 2024 as part of the Company's strategic balance sheet repositioning efforts. Gain on sale of other assets, net declined 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, 2025 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 | ||||
|---|---|---|---|---|
| 2025 | 2024 | $ | % | |
| (Dollars in thousands) | ||||
| Service charges and other fees | $8,953 | $8,393 | $560 | 6.7% |
| Card revenue | 5,950 | 5,903 | 47 | 0.8 |
| Loss on sale of investment securities, net | (10,741) | (18,839) | 8,098 | (43.0) |
| Gain on sale of loans, net | — | 26 | (26) | (100.0) |
| Interest rate swap fees | 115 | 52 | 63 | 121.2 |
| Bank owned life insurance income | 3,206 | 2,711 | 495 | 18.3 |
| Gain on sale of other assets, net | 8 | 1,529 | (1,521) | (99.5) |
| Other income | 6,254 | 4,408 | 1,846 | 41.9 |
| Total noninterest income | $13,745 | $4,183 | $9,562 | 228.6% |
Noninterest income increased $9.6 million, or 228.6%, during the nine months ended September 30, 2025, compared to the same period in 2024. Loss on sale of securities decreased $8.1 million due to a smaller pre-tax loss of $10.7 million recognized during the nine months ended September 30, 2025, compared to an $18.8 million pre-tax loss recognized during the same period in 2024. BOLI income increased as a result of a BOLI restructuring that occurred in 2024 to invest in higher yielding policies. Other income increased due primarily to an increase in FHLB dividends received during the nine months ended September 30, 2025, compared to the same period in 2024. Gain on sale of other assets, net declined 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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