The Bank Slate


Heritage Financial in Wash. reports lower profit on one-time items

Heritage Financial in Olympia, Wash., reported lower earnings that reflected securities sales and an expense-cutting effort.

The $7.2 billion-asset company said in a press release that its fourth-quarter profit fell by 72% from a year earlier, to $6.2 million.

The company sold $151.8 million of securities at a $10 million pretax loss, using the proceeds to buy $140.7 million of higher-yielding securities. The remaining proceeds were invested in interest-earning deposits.

Those moves should improve annualized interest income by $5.3 million.

Heritage also incurred $2 million of expenses tied to contract renewal negotiations, contract cancellations and severance payments. The company noted that it has also incurred $1.2 million of severance costs in the current quarter.

The cost-cutting moves should create $5.3 million of annualized expense savings.

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