Heritage Financial reports Q4 EPS 18c with items, consensus 45c

In Q4, the company incurred a pre-tax loss of $10.0M on the sale of investment securities due to the strategic repositioning of its investment portfolio, which affected diluted earnings per share by 22c for the quarter. Recorded a $1.7M provision for credit losses on loans vs. a $635K reversal of provision for credit losses on loans during Q3. Q4 provision for credit losses on loans was primarily driven by loan growth during the quarter. Tangible book value per share was $17.40 from $16.25 at previous quarter end. Q4 net charge-offs were $618K vs. $1.17M in Q3. CEO Jeffrey Deuel commented, “We are pleased with our accomplishments in Q4 which included strong loan growth, expense management measures and repositioning of our investment portfolio. Although costs related to these activities are impacting current earnings, we expect enhanced earnings in future periods. We believe these actions, coupled with our strong balance sheet, will provide sustainable long-term returns for our shareholders. We are also pleased to report that Heritage Bank is partnering with Community Roots Housing on the renovation of the historic Devonshire Apartments…Heritage is proud to be a partner in preserving aging affordable housing stock in Seattle.”