Financial Highlights
- Net income of $22 million
- Diluted EPS of $0.62
- Return on average assets of 1.15%
- Net interest margin of 3.55%
Business Performance
Commercial lending remained the primary growth driver with business loans increasing 5% year-over-year. Consumer lending was stable with mortgage production reflecting market conditions.
Credit Quality
Asset quality remained strong with non-performing assets of 0.35% of total assets. Net charge-offs were minimal at 0.08% annualized. The allowance for credit losses was 1.22% of total loans.
CEO Commentary
“Heritage Financial continued to deliver consistent results in the fourth quarter,” said Jeff Deuel, President and CEO. “Our community banking model and relationship focus position us well to serve customers and grow our franchise.”
Technology Investments
The company continued to invest in digital capabilities with mobile banking adoption growing 18% year-over-year. New treasury management tools were deployed to enhance commercial client service.