HFWA · Heritage Financial Corporation Q2 FY2026 earnings call record财报电话会记录

“In addition to the impact of increased average earning assets due to the merger, net interest income also benefited from an increase in the net interest margin.”

“The net interest margin increased to 3.99% from 3.96% in the prior quarter and from 3.51% in the second quarter of 2025.”

“The previously mentioned recovery of interest on non-accrual loans in the first quarter had a five basis point impact on the margin performance for that quarter, which muted net interest margin growth quarter-over-quarter.”

“Based on our current forecast of staffing levels and merger-related costs, we are remaining consistent with our guidance from last quarter in that we're expecting quarterly non-interest expense levels to be in the $64 million to $65 million range in Q3 before decreasing to a range of $56 million-$57 million in Q4.”

“During Q2, we repurchased 372,000 shares of common stock totaling $10 million.”

“We will continue to consider stock buybacks depending on market conditions and other capital priorities.”

“While the challenges in the economy have led to some pressure on certain segments of our C&I portfolio, the risk has been manageable.”

“The commercial loan pipeline ended the second quarter at $628 million, in line with the $631 million reported last quarter and up from the $473 million at the end of the second quarter of 2025.”

“Based on the current pipeline, we expect our annualized loan growth rate to be in the mid-single digit range for the next couple of quarters.”

“A second quarter decline in deposits is typical of our seasonality due to tax payments, although the 2026 decline was higher than last year due to a $67 million decline related to non-operating funds in one commercial customer's account, which Don mentioned a few minutes ago, and a $48.5 million decline in brokered CDs.”

“Yeah, I think when I mentioned that the Q4 being in the $56 million-$57 million range, that would be your run rate there going forward.”

“It's not every market and every banker across the board, but we had significant closing volumes and closed the quarter with a really strong pipeline.”