For the quarter, Heritage Financial Corp. earned net income of $1.84 million, or 12 cents a share, compared with $1.71 million, or 15 cents a share, in the third quarter of 2010.
“Overall, it was a good, solid quarter, and I’m comfortable with the progress we’re making,” Chief Executive Brian Vance said Friday.
Earnings per share were lower this quarter because of the increased number of shares outstanding, he said.
The number of shares outstanding increased to 15.5 million shares from 11.1 million in the third quarter last year because of a recent public stock offering, Vance said.
Loan growth increased $20.4 million in the quarter, lifted primarily by commercial loan activity, including loans to Boeing suppliers, those purchasing warehouses, some multifamily loans and medical facility loans.
Vance still has concerns about the economy and single-family home values, which continue to fall.
Expenses tied to two recent bank acquisitions – Cowlitz Bank in Longview and Pierce Commercial Bank in Tacoma – also were down a bit, he said, as were provisions for losses on originated loans – the amount of money set aside to cover loans that aren’t repaid. That fell to $395,000 from $2.1 million in the third quarter of 2010.
The provision for losses on purchased loans – those taken on as part of the bank acquisitions – rose to $2.8 million from $1.5 million at the end of the second quarter.
“That’s pretty much to expectation,” Vance said.
Heritage Financial Corp. also announced Friday that it will pay a five-cent dividend on Nov. 23 to shareholders of record as of Nov. 10. This is the third consecutive dividend since the company reinstated it at the beginning of the year.
Heritage stock fell 17 cents Friday to close at $13.29 a share. In the past 52 weeks, the stock has traded at $12.63 a share to $13.47 a share.
Rolf Boone: 360-754-5403 rboone@theolympian.com www.theolympian.com/bizblog
