Heritage Financial in Olympia, Wash., reported lower quarterly earnings after selling underwater securities and charging off a loan.
The $7.2 billion-asset company said in a press release that its third-quarter profit fell by 37% from a year earlier, to $11.4 million.
Heritage Financial sold $78 million of investment securities at a $6.9 million pretax loss. Proceeds were used to fund higher-yielding loans.
The company also had a chargeoff tied to an owner-occupied commercial real estate loan that had been downgraded to substandard. The loan has been managed by the company’s special assets departments since December 2022.