Heritage Bank’s first quarter earnings report today showed a model of consistency, with a net income of $9.3 million for 2017’s first quarter compared to $9.1 million for 2016 Q1.
The first quarter’s earnings are down from $9.9 million for 2016 Q2.
CEO Brian Vance, though, remains optimistic about the year.
“We are pleased with our overall financial performance for the first quarter of 2017,” he said. “Our loan growth for the first quarter was modest; however, the first quarter growth historically tends to be softer due to cyclical patterns. It is important to note that as of March 31, 2017, our year over year loan growth was 8.3 percent. Additionally, we are encouraged with a building pipeline that will help support our loan growth for 2017.
Heritage’s total assets increased 0.2 percent to $3.89 billion at the end of March, up from $3.88 billion at 2016’s year-end. Loans receivable during the quarter, net of allowance for loan losses, was up $22.4 million (0.9 percent) to $2.63 billion from Dec. 31.
The growth in loans receivable was due primarily to increases in real estate construction and land development loans of $18.7 million and in owner-occupied commercial real estate loans of $11.3 million, offset partially by decreases in non-owner occupied commercial real estate loans of $6.7 million during the first quarter.
Total deposits increased $13.8 million, or 0.4 percent, to $3.24 billion at March 31, from $3.23 billion at Dec. 31.