HFWA - Earnings call transcript Q1 2019 | Heritage Financial Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Heritage Financial earnings call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Jeff Deuel, CEO. Please go ahead.

Jeff Deuel

Moses. you, Thank who listen all in those and Welcome have might later. who to called Jeff Heritage This of President Deuel, is of Heritage Financial Bank. CEO and Financial; Bryan Attending Hinson, me are Vance, of with Brian CFO; COO. McDonald, Heritage and CEO Donald

combined we also the has Our three production and for forward-looking see and integrate pipeline and you earnings of to press origination earlier XX% statements continued origination banks loan review prior together in have expanded of a year. pre-market teams Please Portland us an call. since in It to hopefully, this to opportunity the the the first press this increase out team been the well refer morning new quarter good team went it release working year. in It’s as to the a this solid had to release. the

see are by customer-focused two following the important pleased team of We automated several well implementation to refocused team. on projects expanded the technology several as the conversions back-office as our processes

operating We announce results, Hinson minutes our Don dividend $X.XX. a of take our now will cover to also on core color our financial to pleased including regular statement quarterly are metrics. few

Donald Hinson

the Jeff. overview. I you, start with will just Thank earnings

QX earnings As unchanged was in $X.XX, per up from and release we which QX in XXXX. have share stated the $X.XX from is earnings report, for QX of XXXX

due mostly growth categories. that usually in $XX quarter the sheet, decreased XXXX Historically, for was a balance the end in current total CD total to of To $XX to of slow million were than $XX offset deposit to by CDs QX first in first million down the deposits, QX decrease growth borrowing The by part of starts the decreases rates. and balances at lower QX. in QX Moving mature we deposit trend. rates deposits. followed in asset million purchased brokered maturity will as all non-maturity Deposits increased of and a total muted

We a to a CDs use short-term and sources as of will cost management brokered tool. supplement proactively as funds other funding

not our discuss an X.X% few annualized a them production as Bryan will minutes. further long-term in Loans it’s of However, use in a funding plans QX, grew McDonald source. loan to and at rate significant

credit Moving driven ratio at non-accrual further basis March basis to the quality, increase status two our on to primarily The points $X.X XX by put was asset commercial from increased December non-performing million on XX XX. during downgrade were points which relationships at totaling lending of XX QX.

stands loan the a losses However, very at for still healthy loans to XXX%. of our ratio non-performing allowance

carrying In may are value purchase the The of XX. discounts losses addition, value on fair which approximately March of reduce $XX X.XX% included for the discounts and losses loan in the the purchased allowance an allowance total net is for loans sum loan of of of those of related needs as accounting loans. the million loans

QX XXXX. QX, continue unchanged margin to through problem X.XX% actually problem QX basis decrease in compared as net a accretion This XXXX. decreased potential We and to recoveries was decline X points at net Pre-accretion to The remained loans. in the net QX credits in evidenced by interest have from interest the in in margin working income. QX due success

to in cost $X.X the X pressures, increased rate the QX. XXXX. cost million deposits income total The in curve, of basis yield portfolio points rates environment by an This basis interest QX yield increase due expect in the pre-accretion and swap and in increase service fees. for in deposits the and basis decreases increased the charges, percentage Non-interest gains Due deposits. pricing XXXX XX increase of mortgage competitive levels increased loan margin to of a a Although points in sale total offset to to X combination point deposits. was do decreased of cost interest-bearing total loan we by and an CDs investment challenging a of from yield due forecasted by of QX shape

sale assets due decreased to of from XXXX. to benefit expect partially our of we X.XX% the acquisition-related improve periods. improved the into this the further of staffing loan savings we was due million for from XXXX increased increase acquisition-related the marketing and expect profitability quarter expenses acquisition-related staff to of XXXX. QX decrease expenses Beginning to decrease decrease by order and to QX $X.X reduction. the mortgage a impact in in new as was department to adjusted mortgage current cost $XXX,XXX in over in we expense on Year-over-year for we The building Portland. recognized gain average expenses offset sale related year, primarily the the $XXX,XXX to related the size X.XX% of recently operations QX banking per also get in intangible future mortgage in gains to expenses. expense in cost amortization commercial adjusting about a The quarter-over-quarter combined the levels, Although the assets, Non-interest a have of environment, due non-interest team to QX $XXX,XXX the QX from in of QX,

for tax housing decrease a in even to with of X combination recorded equity tangible was rate due ratio and in in Since low-income expense QX a X.X% our due $XXX,XXX XX.X%. projects. of solid for impact the tangible finally December common rate XXXX, share the from related value The our XX.X% on in QX the increased at from XX% the tax to the slightly our increased primarily change QX investment in credit book tax The of prior loss XXXX end. common And estimates was tax quarter. earnings securities dilutive quarter effective reduction has acquisitions, X.X%. per capital, on the unrealized increase to effective QX Our to from was to

position M&A. Bryan have our and organic now growth, our will our potential capital believe to sufficiently risk, future growth sheet an production. update continue both balance and McDonald on loan supports We internal

Bryan McDonald

area, Thanks, first quarter, Don. our group. $XXX I with going results teams is which $XXX of our commercial of XXXX loans detail in commercial $XXX production closed quarter first the up loans starting million by new our in closed in quarter down million provide quarter the the lending am fourth million from closed to on In of new first and from XXXX.

categories. million, at within production the at to production the New King million. Tacoma see centered first C&I $XX quarter and pleased during CRE of and owner at million the $XX in were fall commercial was We very $XX loan XX% County new quarter’s Portland occupied

million production this $XX Portland to last and to $X at due emphasis the last first from year XXXX. sales ended our from at X(a) our last with within been prepayments has million, their versus quarter first teams, at $XX during Commercial increase their the year-end; $XXX the million quarter $XX quarter down which a loans and SBA their million. quarter our production the rate during time quarter. levels. lower annualized year, at these ended where the $XX investor was segments increase, first included the $XX pipelines $XX $X greater during As in down million saw King quarter which $XX the geography concentrations loans which moderately production, teams, being million saw $XXX by $XXX is Each the quarter quarter. Greater was first the from $XX.X million teams, estate. million, our up and placing with higher to to saw force the in closed County Consumer at loan million loans quarter-over-quarter deposit fourth their we X XX% increased which million down largest and increase or footprint million changes due pricing $XXX indirect million, pipeline a our million saw of from pipeline the million, the first which we The loan since $XX team end million, loan quarter to $XX was $XX Commercial year at decline moderating to Tacoma in at pipelines million from increase at pipeline closed pipeline pipeline XX have from year compares million. been ended Gross $XX end. and for for team quarter This ended end. on quarter million X.X% reporting loan real pipeline payoffs the

were on up the rates, in X.XX% nearly interest basis our rate rates was in new increasing last points Moving XXXX. of higher, loans commercial to X.XX% first for XX% points X or quarter first and from the quarter quarter X.XX% XX year last versus interest to basis

call will back rate for all new the was average turn quarter addition, now X.XX%. Jeff. to the In first I loans

Jeff Deuel

Brian. you, Thank

flexibility which construction opportunities levels of spite are continue be CRE Valuations provide quality to the capital to focusing at Pacific to be with high-quality management loan still is quarter, percentage X advantage of yield. and single environment continues while allows maintain stable on last overall strong. the XX% relying to to guidance. be point robust in provides take able concentrations is Operating down capital, these to XXX% about quarter. and comfortable XX% economy. bank at competition are occupied compared CRE being family, segments, positive continue our loan we at region, Northwest discipline whereas the to Currently, of from and In on last process loan of economic concentration non-owner our all and We however, cautious for

Our by somewhat overall pay-offs. at annualized X.X% impacted loan is growth in again QX

start did moderating we in see that However, phenomenon QX.

degree it our tends is I important risk certain profile that a limit to our to note also. overall loan to growth think

In in deposit and new we have to we outflow pick CDs on to QX, deposit brokered saw decline As in past. and used strategic a QX, the that we continues way mentioned, growth bring seen we years, we two up this we the is tactic would conversions acquired teams significant Also, Don short-term decision levels expect past again in our have two in offset prior the see year. loan XXXX, pipeline contributing Portland distraction production are the now build. can to and a the and that team in integrations in as more to occur this of

footprint We of for XXXX located for positioned growth. production largest in opportunity teams our most Bellevue our well Seattle, with concentrations in balance the with our Portland, the two are and markets the of

flexibility benefit continue to deposit We provided composition. by from our the quality

are see the costs ratio cost loan-to-deposit overall the the still provides us quarter-over-quarter, holding is relatively managing to deposits slightly pricing can acquisition-related up the for the is the and while year-over-year which low and low the expect XXs, continue in steady While optimize flexibility in of After with expenses, down. to balance trend sheet. adjusting we a positive that trend to ratio overhead

office back to consolidations, we gains and the reporting branch by one-off to consolidating referenced as facilities facilities, to progress make addition create periodically, on unused we continue been of efficiencies. good In sale disposing have further

loans out. move noted, commercial Don status loans is in portfolio natural progression these good. by continue we a actively quality the we managing overall from remains loans two for As We QX. quite underperforming had up as two or This to moved either manage significant and to anticipate losses credit loans not do non-accrual these

position balance they to we We growth it Vance can to turn as planned few as so bank manage and will to for over in opportunities when continue I risk a the comments. respond organic Brian closing our sheet capital present our themselves. positioning now support well M&A to

Brian Vance

Jeff. Thanks,

are of we are start development banks newly entity, moderate pipeline itself the loan strength in Jeff considering with a the the growth As present where our we numbers. integrated can noted, combined to as QX and see growing in and we three combined our in comfortable

strive sacrifice this not for point loan the especially growth, loan at to quality we cycle. Additionally, always in

sheet as they deposits, as we look the believe challenging outflows quality in performers historical enjoyed have more also to our rate decline all year on-balance the as and turn liquidity, bank team earnings of deposit never to it pleased a a I these appreciated are we strong high retire from a historic continue call our forward success. I and to environments. reminder of years I into to the I see Jeff, am sidelines granular will the with as as of you. see the in seeing of economic subside management with seasonal the we we years. relationships and the And several I separate have CEO last the I head July everyone quarterly the base past this as X, will Chair we progresses, our that in watching to finally, improve with will like along call credit the has as overall pack stronger effective merely trend truly areas. interest levels of from quality as rest through deposit my that are expect confident back and to the rest you will as performance to Board take new While be

Jeff Deuel

like just improve overall would good as our I Brian. very continue to our conclude future you, to about expect we that and Thank prospects the to the update feel progresses. year with production comment performance

current the the environment, for will for challenging everyone rate with However, year make in industry. a it

ready we with and questions. So to open the Moses, move with said, forward call are that up

Operator

our And of line Instructions] D.A. go question Rulis [Operator first from the ahead. Please comes with Davidson. Jeff

Jeff Deuel

Good morning, Jeff.

Jeff Rulis

Yes.

Just the a them this guess couple as outlook? expense I of done? quarter, you do but the anticipate a any had merger questions small on first, side, being you cost, amount

Donald Hinson

expect more. they it’s I Jeff, much Yes, done. much Don. Yes, don’t are pretty

Jeff Rulis

in there is coming now actively the or you on that guys the And the be could talked base wanted technology front? quarter if Okay. platform what see expense anything in build-out, to about

Jeff Deuel

that which this What have a to efforts essentially was expense strengthen data XX two as folks in contribute related last numbers is our of been you I seeing. probably year, adding of software management is It’s will over think All in $X the – team referring Jeff development about things. million over are help our the have told, us I months, is last IT as to automation office. the create oriented to small back the we in and those to platform feathered well some capabilities, to we

Jeff Rulis

million down efficiencies to but I maybe relative don’t run-rate to of on just seasonal level? about anticipate I $X if it is that stepped guess QX kind you up, lot any thought, year’s kind QX’s pieces, I sequentially. do there moving by a know a wrap of run-rate know of the last thoughts or

Donald Hinson

to Jeff, a we to expenses lot at offset taxes but a There see so increases related I like payroll always the and just of lot beginning bonuses, in There going also QX may is those two things difference some. fuel officer don’t do of a other. some forward. QX, of tend each maybe

run-rate, think overall, So but decreased I it say would I there slight significant. a maybe would be don’t

Jeff Rulis

other you cost of put on is margin deposits, maybe that maybe also could margin is the the just kind mentioned If I of challenging was Don And into this that of think the Jeff margin, sort and on environment. an inflow on where the question if that current margin, context which some and had you of the you similar see funds that saw you this that you if quarter and do get that higher fund core where given of occurs? we

Donald Hinson

be be in year downward go at all. grow was deposits it to the later this can continue again, of non-spring if Well, think will on lot going that if margin. And a to some cost to like growth you overall helps We our margin challenging the last much we But get that get it obviously even like I up say, of see it’s as dependent we deposit quarter. of the may can year. pressure

So, flat overall pretty the I for think it’s going year to margin. be a

Jeff Deuel

have we and It’s it just stay that top are the from these through deposit seeing one also tend made the because us. that, manage money the their year historically properly have and competitive it And do bit quarter crank manage ratio couple is sure competition we little to same deposits. Jeff, have difficult who it. it of scrambling that on confronted rates we or standpoint we start our the first do it are we do because deposits much growing so as market challenging recover for are flexibility of from What I may see from we on smaller when rates. that terms more a the more to get of feels a seen a the up market in there. of automatically banks the accounts can But reacting we we to of runoff, that make more in pretty not through, with we CDs, last recently, add and to progresses, some year to the started banks high have loan-to-deposit would which we to see and start we larger to what for of

didn’t that as up biggest is till with One to really of we X now banks bit our the not so banks a little the much have as in or for rates things that’s main this were market deal the with quarter. playing X they starting are to now, us different

Jeff Rulis

see congrats we Brian of a Vance, And guess I couple will retirement. in I weeks, lastly, congrats. guess the but you on

Brian Vance

your hope a Thank Yes, at and conference. of you. folks look thanks, Denver do see in I Jeff. that to to forward lot And conference

Jeff Deuel

And some years, next over couple we might the appearances of around Jeff. for bring him cameo

you him around. So might see

Jeff Rulis

good. It Appreciate it. sounds

Operator

of Piper Next ahead. question comes Matthew Jaffray. Clark from Please the line with go

Jeff Deuel

Good morning, Matt.

Matthew Clark

morning. Good

updated or On of the there, ratio, year? average by end asset for the Don, maybe full are expense your XXX%, what to year thoughts this the

Donald Hinson

think we and Matthew, mentioned year I previously down as year-over-year. continue that to I try that the to throughout work that have

high we in of the XXXs So, ended I last the think year. at I think out end

think I of every year. – are we is QX will down to end the So, year-over-year, that work the this. that about XXX% adjusted, is last because continue – down at in there we to actually, still are quarter some down all we And of seasonality

improve back this are there looking year by if so... down we to upon get not So again that, QX

Matthew Clark

and Okay. feel to growth up for X% you step annualized just with the in this X.X% loan And that – growth quarter, on pipeline the year? still outlook range do X% the the given how okay the

Jeff Deuel

then what we you single-digits, towards unless to would past. mid X% which like we in would to seen. more more is range have that as have payoffs probably loan If moderate do, Jeff. is lean this X% Matt, we elevated see Yes. the we We

Matthew Clark

was and that’s there zero activity pick just fee balance quarter, any or year? up the on back And then color whether will line the just Okay. of something that this the swap not through

Bryan McDonald

didn’t activity first in the Hi, market. of the Matt. McDonald. This and quarter, any We dynamics of the some some in the is curve of change Bryan just swap see flattening of the

the activity it to time. predict continue do generating pursue this during year. We see hard and I to just It’s at

Matthew Clark

Okay, Brian. and Thank you great. congrats

at next to two. over nice year destinations We or hope the see will you some

Brian Vance

Thanks, Matthew. Appreciate it.

Operator

from Jackie go KBW. comes line Please of question ahead. the Bohlen with Next

Jeff Deuel

Jackie. Hey,

Jackie Bohlen

morning. good Hi,

Jeff Deuel

Good morning.

Jackie Bohlen

on then I adding perspective? how that been have to just about loans, sale of are a wanted mortgage your you an I also talk update those gain the SBAs, expectations And portfolio, about are you on to know from the are about what banking thinking thinking you how going forward? but

Bryan McDonald

the of the million versus mortgage So mortgage year. was at million the of We $XX Jackie, at the pipeline $XX end volume the in QX year. end quarter, versus million million $XX of only last closed at $XX in QX in

up see second in just the we into overall So, volume do the quarter seasonally picking both coming increase and an demand.

more in how business, business market last for of seeing are than positioned the kind secondary we portfolio years. more construction that’s mix much of the We have and custom area business couple that

see in some the year. throughout – we sale in and QX do on probably gain improvement gain on So, sale

we lucrative an balance year high relatively because a loans we static analysis sale the keep remained on rates the the and whether we SBA ago. have on are relatively have determine that versus and to On more side, that those sell we just not run are to premiums or gain the they where use sheet,

at kind with on to Don through X it them sheet retest and sell them, I to of pool of clearly and just thinking better a So, and comparison. them versus that it’s leave weeks that ago went balance looked we just just

SBA not saying gain would sale of of will it’s least long So, current – the way in selling have we X(a) loans. on anticipate any the at we environment a

Jackie Bohlen

press question Oregon, of is but higher taxes don’t by I presence which release morning, you, Bryan. Okay, think this know came probably I a tax in I that’s the and the were then taxes the that up that calls in I Thanks, for lot apologize Don, I it know this if on versus did. prepared impacted increased state remarks, Washington. been mentions have helpful. on And a

is gradually to in continue forward develop your creep expect So, up guidance you you continue to just what as that if and Portland? wondering to

Donald Hinson

big year. I the the think merger gradually, obviously, last was increase Premier

think this I is mid-XXs guidance I good So, for that year. – still of think the

Jackie Bohlen

little on then gradually starts just Okay. to a kind up a basis, And of XXXX bit more? creep the quarterly

Donald Hinson

Correct.

Jackie Bohlen

Okay, from everything, I great. congratulation, and of echo some look I Vance. Thank cameos forward in too you. Brian And to you. Best luck

Brian Vance

as I Jackie. Thanks, do well.

Operator

Stephens we Inc. have go Next McGuire with ahead. Please Gordon

Jeff Deuel

Good morning, Gordon.

Gordon McGuire

takes and on So I wanted from could here trying flattening an to see figure sense asset you of re-pricing perspective. the just to out core NIM a just and start better get the from what puts

origination the up yields were of still well are points. only new quarter basis book, but yields Your core loan ahead pretty the X this

see So of I the heading securities inflecting how – then the or yields and you to do am book kind trying this loan book additionally year?

Donald Hinson

The had think came think the Don. It’s at. actually again they much overall Even that they I rates. and quarter renewal what happened we were was came of again almost overall Again, Gordon. was analysis What did books – off good at, X% an loans a to that what books around Hi, on were high. origination come for than the though, I off we rates. new lower

but was were a short-term up had off. the the that So, book in much same a didn’t coming that go behind off, wasn’t yield that little loan been already was bit, were re-priced it what’s the that’s of is because it basis it more, points, left lines why rates. lower We couple probably see nature stuff coming did and pop pretty it’s

that’s And side. so loan on more the

currently probably to the the that not portfolio, of year. are the much I yield are so increasing don’t new quality and to what’s we on current there we and I at the we change our investments coming or curve rest – the yields much investment investment increase see doubt don’t that, investment due throughout going doing putting off either. a credit On without in see side, our again, year of lot see I whole what this will

Gordon McGuire

more new production, would rest is you from this the the the year to quarter? about unusual roll-off And see or was your expect that being the not it of what for far commentary

Donald Hinson

because – we as I quickly. commercial their always think don’t roll a lower estate, see short-term priced real maybe unusual, are again, the A maturities X-year are the the it lot they nature. had loans at somewhat a bit and of they but was to little maybe of so of – going

off think what’s than to going I bit come will be what’s little books. always So, a higher the on

Gordon McGuire

And how then now I side, just is it recently. feel raised comfortable more the across like your you to the your wondering some with no pricing as far I just moving think feel now you am deposit looks or products you pricing as right rate Do standpoint increases. with your rate sheet? where on positioning

Jeff Deuel

we is were so strategy were in place rack last some we exception we seeing feel pricing into. to the earlier, we year. in the bit partly rates that think a response field like the their with than we we goes little basis. widely to of competition of some don’t the think we that to on But the and help manage exception will think We needed ability dealing change strategy end that in facing that that, a have ratio an I But I the low, that said it as little on. did because are team will bit year yes, maybe more loan-to-deposit continue up to we we one our have move avoid the I utilize. that is of to mostly

Gordon McGuire

more mean, quarters. you bit in like just in looks little have And than a there? unusual anything charge decline, it that was the on lastly first then typically there service Was I seen

Donald Hinson

Gordon, no, unusual. that’s not necessarily

went QX the service in to together. it what that interesting happens. are it has the merge with be the I I a And think do and with plays I to out seeing we is this convergence we think think charges just quarter most and as think of full see quarter, seasonality. kind we will Obviously, the Premier of for I first still how through

Gordon McGuire

Okay, thank you.

Donald Hinson

Thank you.

Operator

comes from the with question Sandler Partners. O’Neill O’Brien Tim line + Next of

Jeff Deuel

guys. morning, Good

Tim O’Brien

on CDs the guys the brokered you rate was you paying that in the What added are quarter?

Donald Hinson

question, Tim. Good

was it think think X I about I X.XX. X.XX – to

Tim O’Brien

X.XX to there? X.XX in

Donald Hinson

partly they quarter, this partly early and early next I again, Right. And are off running believe. quarter

Tim O’Brien

XQ. Okay, in XQ and

this was like on a Okay, deposit it rates was reset is then hire promotion bit that was – that that looked great. there? little to or a quarter, And advertising some related or up seasonal what’s expense going

Jeff Deuel

It’s or Tim. significant, nothing specific

Our just the marketing by. quarters go budget as flow tends to

one bring of budget and and by usually quarter in end we on it lower We next the the have higher a the year. maybe and budgeted it

Tim O’Brien

Out tend of every do curiosity, basis? you how increase of by it does budget item does – something, that specifically, year, the or year-over-year a decrease set – that inflation? get For or rate much how a gets increase marketing much it to on that so X% year guys

Jeff Deuel

which just static what We We don’t but was necessarily and to increase it fairly a is is number. it it contributions, year to Embedded and the advertising, significantly try not year. also every marketing also intend hold prior quite frankly. in number that

Tim O’Brien

thought misconstrue plans, about And right I something then did office pending later I something that? office, this caught consolidation last or question, Is year. back that that some like I

Jeff Deuel

do we as We those are branch was opportunity year did onesies, also the last on to back we but space throughout location do to What we were alluding a to tend consolidation focused the quarter. office. the it, twosies reducing in unoccupied we have in have one the

As sell next or the And may trying and of. quarter. not lot the a in a that of one get did we more quarter market got have last of on are that the rid done the to few we may have a all we transactions buildings we result in

Tim O’Brien

my Alright. Thanks answering for questions.

Jeff Deuel

Thank you.

Tim O’Brien

luck, Good Brian.

Brian Vance

Thanks, Tim.

Operator

comes from Tim line with FIG question Coffey the Next ahead. of Partners. Please go

Jeff Deuel

Good morning, Tim.

Tim Coffey

Good morning, gentlemen.

the anticipate right? in number, cost question, saves, that follow-up $XXX,XXX that you the on that Just right to last was

Donald Hinson

have in we mortgage in we some for savings. QX, starting talked the staff quarter for department are cost just – $XXX,XXX a expecting reductions, about the That’s about mortgage

Tim Coffey

it other against line the investments? Okay, expense that, great. netted away or that hit actually would Is your will be expectation

Donald Hinson

mean, I but things cost we Well, on the little we always going in for that savings got department. realize have the bank, will

Tim Coffey

do loan then course to and seem to off any investments near-term? and in number of a Okay, And terms make in in markets given those planned have have you the other Portland of Do you in made of other investments growth. alright. paying that in be Seattle

Jeff Deuel

Tim. now, for Not

we As organically focus during through growing have still said we the on M&A a have and call, activity.

So, that’s I-X in which separate on M&A to is would fill to we likely always something be footprint. already what Corridor the M&A, from but have in us, our interesting

now the particular just something afield to is further the think ‘XX itself not Going with a focus presents in we is opportunities in us, meantime. but the those and to markets grow Bellevue because in we in unless right Portland new work to Seattle, have with on can we unlikely there, enough teams team

Tim Coffey

Okay. theme, then that have is that started sticking than a I you worth to between other different again. the M&A thinks quarter right what business what that seller reappear believes disconnect a Is buyer this as from banks any it and are And now? heard what with seeing

Jeff Deuel

XX oftentimes billion in. that. necessarily not we interested slide between $X that experiencing are We our in be the show Corridor along million the the and banks might investor shows that We deck I-X $X

for thrown now, always not year anything We facing that’s right but having us. not the something ongoing we has as a pricing and out are roadblock necessarily throughout been are conversations been

Tim Coffey

luck been you. Good next in Okay, questions. good chapter. it’s sign. the working great those to Brian you my Alright, are Vance, with

Brian Vance

Thanks, Tim, comments. Appreciate your

Operator

line the comes Clark go Piper question from ahead. Next with Please of Matthew Jaffray.

Matthew Clark

core? to just or remaining stable Hi, you of your Don, speaking on the NIM are NIM wanted couple reported things. clarify the to the relatively commentary a

Donald Hinson

be core Matthew, unpredictable, Yes, talking way and is the more of was I core Obviously, but kind some NIM. fluctuate NIM. obviously, the can – accretion to this

Matthew Clark

to operating second Okay. average And to and suggest in asset XXX% layering expense assume if expense then are of you the expense, getting would other commentary, the asset comparable average quarter. expenses you that run-rate it to your ratio the XQ that’s ratio to

showing are improvement to full Just the sure the make wanted XXX% to correct? to get you year-over-year, for going year,

Donald Hinson

No. No, year. core XXXX, – what in XXX%, merger-related out was expenses this are for this the quarter, is year-over-year like was we trying for when it take and it’s year, you XXX% it the this XXX%

are year-over-year, For every quarter, we for improvement. looking

So, XXX% of QX was in it ‘XX.

by to the in the the XXXs of upon in are looking or improve that the to We end down year. high somewhere XXXs

Matthew Clark

you. thank Great, Got it.

Operator

are there in questions time, further this at no queue. And

Jeff Deuel

thank the you wrap call you interest ready then your organization weeks. support, If in several to earning performance time, we up and over the coming Well, we you as we Okay. your are our look to forward and more seeing ongoing for Moses. your quarter’s all no an of thank questions,

and So, you thank goodbye.

Operator

and this through be will gentlemen, X conference X after for May replay available Ladies midnight. p.m. today

you dialing You your are and may by entering XXX-XXX-XXXX, again using and and Teleconference That access AT&T teleconference executive system today. XXXXXX. Thank for numbers participation participants XXXX-XXX-XXXX anytime dial access XXXX-XXX-XXXX conclude the at International code access does conference replay our XXX-XXX-XXXX. The for XXXXXX. the service. code for AT&T

disconnect. now may You

Heritage Financial (HFWA) 29 Apr 192019 Q1 Earnings call transcript