The following is a summary of the Heritage Financial Corporation (HFWA) Q2 2024 Earnings Call Transcript:
Financial Performance:
Heritage Financial reported strong loan growth of 9.5% annualized in Q2.
Despite some margin pressure, net interest margin decreased slightly to 3.29% from 3.32% in the prior quarter.
Noninterest expense decreased in Q2, mainly due to lower compensation expense and staff reductions.
Business Progress:
Heritage's commercial business continues to focus on expansion and retention of deposits, evidenced by increased deposits from new relationships.
The bank managed to stabilize its deposit balances despite competitive deposit rates, with total average deposits increasing this period.
Opportunities:
Loan growth was strong, particularly driven by construction loan advances and mortgage pool purchases.
Risks:
Continued pressure on deposit rates is expected, which may increase the cost of core deposits.
More details: Heritage Financial IR
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