Heritage Financial Corp (HFWA) has reported 2.47 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $9.32 million, or $0.31 a share in the quarter, compared with $9.09 million, or $0.30 a share for the same period last year. Revenue during the quarter went up marginally by 2.63 percent to $39.63 million from $38.61 million in the previous year period. Net interest income for the quarter rose 1.18 percent over the prior year period to $33.15 million. Non-interest income for the quarter rose 5.14 percent over the last year period to $7.35 million.
Heritage Financial Corp has made provision of $0.87 million for loan losses during the quarter, down 23.88 percent from $1.14 million in the same period last year.
Net interest margin contracted 15 basis points to 3.89 percent in the quarter from 4.04 percent in the last year period. Efficiency ratio for the quarter deteriorated to 67.23 percent from 66.34 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Brian L. Vance, president and chief executive officer, commented, "We are pleased with our overall financial performance for the first quarter of 2017. Our loan growth for the first quarter was modest; however, the first quarter growth historically tends to be softer due to cyclical patterns. It is important to note that as of March 31, 2017 our year over year loan growth was 8.3%. Additionally, we are encouraged with a building pipeline that will help support our loan growth for 2017.
Liabilities outpace assets growthTotal assets stood at $3,885.61 million as on Mar. 31, 2017, up 5.64 percent compared with $3,678.03 million on Mar. 31, 2016. On the other hand, total liabilities stood at $3,396.42 million as on Mar. 31, 2017, up 6.21 percent from $3,197.85 million on Mar. 31, 2016.
Loans outpace deposit growthNet loans stood at $2,632.11 million as on Mar. 31, 2017, up 8.34 percent compared with $2,429.48 million on Mar. 31, 2016. Deposits stood at $3,243.42 million as on Mar. 31, 2017, up 3.59 percent compared with $3,130.93 million on Mar. 31, 2016. Loans to deposits ratio was 81.50 percent for the quarter, up from 77.80 percent for the previous year quarter.
Investments stood at $783.02 million as on Mar. 31, 2017, down 4.76 percent or $39.15 million from year-ago. Shareholders equity stood at $489.20 million as on Mar. 31, 2017, up 1.88 percent or $9.02 million from year-ago.
Return on average assets moved down 3 basis points to 0.97 percent in the quarter from 1 percent in the last year period. At the same time, return on average equity increased 11 basis points to 7.78 percent in the quarter from 7.67 percent in the last year period.
Nonperforming assets stood at $11.66 million as on Mar. 31, 2017.
Tier-1 leverage ratio stood at 10.30 percent for the quarter. Equity to assets ratio was 12.60 percent for the quarter, down from 13.10 percent for the previous year quarter. Book value per share was $16.34 for the quarter, up 2 percent or $0.32 compared to $16.02 for the same period last year.
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