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HFWA Heritage Financial

Participants
Brian Vance CEO
Jeff Deuel President and CEO of Heritage Bank
Don Hinson CFO
Bryan McDonald COO
Jeffrey Rulis D.A. Davidson
Matthew Clark Piper Jaffray
Jacque Bohlen Keefe Bruyette & Woods
Tim O’Brien Sandler O’Neill
Call transcript
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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Heritage Financial Third Quarter Earnings Call. At this time, all participants are in listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time. [Operator Instructions].

conference recorded. this reminder, a is being As I’d of Heritage turn the to President conference over Financial, like to Jeff Deuel. Please go ahead.

Jeff Deuel

morning who Financial; CFO; Chief This me are Thanks, in Don CEO of of Hinson, Good and Vance, Attending all and Officer. to Operating David. with Bank. who Heritage and Financial those McDonald, Jeff CEO may and is later. Brian Bryan Heritage listen Deuel, President welcome called of Heritage

pre-market and went release a progress the out upcoming forward-looking hopefully this call. we Our continue good release, earnings a opportunity been Bank that us and the for all in conversion to review of Please has Premier press with as early prior of make integration Commercial an had release. November. we Bank release prepare statements in the It you morning this refer the in for to to to quarter Sound Puget

that core show are We continued from prior to improvement nice our quarters. pleased operating metrics

also dividend a pleased increase now the dividend declared $X.XX announce from special dividend Hinson regular Don core minutes quarter, XX.X% of is statement our metrics. XX% $X.XX operating a increasing which including take financial color the that to a results, we an prior of and cover have We’re will few to share. in we’re to our on our

Don Hinson

is the improvement both of per of QX $X.XX operating and which in compared reported metrics from QX $X.X acquisition-related would an impact by the prior of income to these core QX share Puget QX $X.XX $X.XX continued is was were QX an net for bring linked quarter Reported our and $X.XX in earnings year from tax from prior income impact XXXX to Premier increase $X.XX XXXX. saw mergers due quarter third XXXX share both for XXXX for year We QX the Jeff. impacted which quarter X.X negatively linked $X.XX. Adjusting of million EPS after of Thanks, for XXXX. million. the to Sound and QX earnings of expenses per earnings expenses

for net million these our return and equity assets versus addition, income to a In average impact a expenses $X.X X.XX% reported to X.XX% would average on tangible reported our adjusting of versus return XX.XX% XX.XX%. common bring the

million Moving Premier quarter balance of Net assets million the of the the on the had to in of the loans We We value loans asset in closed of result acquired XXX X.X of merger total XXX Xnd. merger, a July growth QX. fair QX. million sheet. obtained the XXX million in on which with during as decreased Premier

deposits unusually production loan will We prepayments basis grew in of merger, high of in fully deposits and the continue obtained Net XXX loan discuss to for million a XX% Premier QX. Bryan the experience million XXX prepayments annualized or minutes. an few McDonald and on

deposits at for ratio nonperforming stands one off relationship to Moving total million primarily at agricultural at end million our at September decrease to XX. a total quarter. September to XX. nonperforming from June loans the decreased loans total allowance of at Premier of loans noninterest-bearing to deposits overall losses demand XX.X% The from on paid nonperforming day grew June or the loans total Nonperforming XX and increased grew million on loans at of XX.X XX.X million annualized end of to deposits percentage XX.X% an deposits loan deposits QX Noninterest-bearing very QX. XX.X% healthy decreased of of loan during in X.XX% basis. non-maturity The due basis at one XX.X% impact or the to was XX.X that XX XXX%. The merger, XXX an annualized demand of to compared X.XX% to the

the in the those of needs value charge-offs to purchased net losses carrying related charge-offs Premier QX potential to of value on in QX the to to C&I majority of merger. million X.X loans decreased smaller in was during acquired OREO an increased XX.X to due to loan charge-off loans. balances in balances. X.X the loans reduce million Potential net of problem problem may primarily XX.X XXX,XXX increased of was in due quarter increase loans a the for the accounting XXXX. included X.X point in million from increase recorded for million and in related QX discounts interest allowance are from addition, fair QX The Net acquired linked XX which QX the lower margin purchase million X.X The XXXX loan QX. basis charge-offs. million Premier point merger. QX a This primarily OREO of basis from compared charge-offs the in X.XX%. the XX QX Net decrease is In due

QX, margin for QX was Our in and a point QX from Pre-accretion basis from in X.XX basis increase and XXXX. XXXX. pre-accretion an point net a increase interest in from loan yield was X.XX% XX XX QX, increase QX QX X.XX X.XX%

beginning from Accretion an QX Premier higher for and New QX were which of primarily due QX from in X.XX% income QX. average a funds from mitigated advances an This the weighted was loans from of source XXXX. is as QX in in for merger from QX in as impact XX growth. decrease points funding originated was costing X.XX% to QX QX increase in from at deposit QX rate of a FHLB XX the use and by as at the occurred points X.XX%, increase strong QX in well basis Cost non-maturity the in was of basis XX higher a points XXXX. increase basis which somewhat

interest basis basis pleased on was increased points net a to margin points QX QX foreign QX Noninterest our pre-accretion has rate our in QX QX. XX net of XXX,XXX points in to floating a of QX XXXX gain X.X basis cost XX investment resulted XXXXX. production increase are interest on continued of to mostly XX in a cost from loan combination This in X.X low to points basis due income million sale million the QX of increased from branch assets, and rates and in The operating and million an compared purchases, Premier building expansion. XX.X higher new for XX.X our in QX for to was to deposits in margin increase Overall, expenses deposits the of due our to Noninterest XXXX. we total merger expense QX. Our XX and acquisition related QX. The increased to realized expenses. million in expenses from increase related with

in previously million X.X XXXX were expenses. of related noninterest mentioned, As included expense QX acquisition

assets QX. X.X recent of acquisition a our X.XX% million of expense mergers and for In recorded in amortization a addition, has million intangible combined deposit was of X.X ratio versus Adjusting expenses the intangible assets and the in core XX.XX%. to the recorded the versus was efficiency the related assets impact due noninterest grown to X.XX% to XX.XX% QX, average amortization

ratio Our X.X% XX, QX. solid at X.X% slightly tangible September the was equity at of end common up a from

our to Our regular payout dividend payout ratio ratio. is for guidance QX which XX% was XX% within XX%,

declaring ratio in Jeff to our special been severance dividend related $X.XX $X.XX expenses. lower payout without per from paid impact as the $X.XX earnings the are have QX our capital we would the in Due position, also regular increasing a from and to increased mentioned, dividend QX quarter However, and to share be in prior the acquisition November.

potential M&A. sufficiently internal growth position believe our to growth capital risk, balance future our supports sheet and organic continue We both and our

the Bryan have pass who on will Now to production. I’ll loan call update McDonald an

Jeff Deuel

equity you that XX.XX% Thanks, – Don. Jeff should adjust I average I’m opposed to say Don. me, mentioned. presenting X.X you. the to sorry, pass on misspoke XX.XX% Don to I’ll I usually just who’s to return was wanted would Don so It’s it Don as that it’s that’s when that common thank correcting tangible now, the again. And overview as he interject to X.XX% opposed earlier earnings

Bryan McDonald

after loans of being during and in on and credit. Loan X.X% along sales, up million manage the loan to instances other commercial estate loans paying for decreased XX payoff concentration we aggressive results million on Okay. quarter I’m clients Thank off interest the Average quarter is commercial prepayments commercial prepayment during of levels remains XXXX. be last an in payoffs quarter is at you. XX% starting oversized terms to by and and elevated from continue third commercial was and real XXX teams to pipelines with structures market, of to down give we Commercial not and quarter, and third the off Demand the our real third more types to aggressive In quarter in in within loan update due third the with quarter X.X pay an this million six-quarter activity. several XX% lending in rate increasing the of construction Bryan by our cash elevated quarter loans we the third second production higher was to customers maturity. closed which and slightly XXX group. XXXX. of higher to the the the the saw market offered self-imposed particularly team estate quarter million level loan closed the renewal up XXX last or from X.XX% XXXX. limits. to activity Similar across the million XXX for quarter loans points area Again, all third million XXX.X third offer versus prior our very year basis our a quarter quarter categories going lending is of last ended third higher XXX from in prepayment to at quarter X.XX% average. million points estate or totaled from which million new than closed rates and basis payoff loans level new stay Pricing of XX continues quarter, real debt are of using quarter loan during XXXX third down McDonald. elected XXX is business last and in from million up to XXX which relative Net

mortgage quarter SBA in XXXX. in million closed the In XX.X for X.XX the The million Don the last up XX.X for in XXXX. million, XXXX, new and X.XX%. new XX.X million. with eight the from at million compared and consumer the The the addition, back up XX.X million direct loans at of second the pipeline demand production the XXXX we ended third quarter decline of this XXXX. million I’ll of closed the the Xa from in mortgage third production pipeline million the X.X strong more included our loans in XX in the as volumes for and quarter quarter rate third indirect of loans department when with loan XX% from XX% compares total a to than XX quarter during was XXXX XX.X loans in quarter second quarter ended of the quarter million third quarter was offset million. We Consumer call the by but lending quarter pipeline quarter of ended down to in quarter-over-quarter turn business. third at third was million Jeff. now million of million, average quarter third the This saw the mentioned, XX.X XXXX XX.X of and and third quarter quarter down of XX XX.X XX.X loans

Jeff Deuel

you, just a few observations. to Bryan. Thank cover I wanted general

for comfortable with be CRE Northwest Pacific stable economy. are to continue and family. the single Valuations We overall

XXX% loan loans in guidance. yield. all all to segments to be region, In robust us positive occupied cautious concentration of non-owner in in of quality on However, process to Currently, with This provide continue spite our be to while regulatory segments. guidance strong this to the around the be of provides on concentrations relying disciplined continues we environment about area XXX%. continue economic competition management compared we and focusing more are CRE our flexibility loan

organic overall good production buoyed properties paid our flat to which loans QX work payoffs by was than higher and our addition by meets normal growth the our of as loan customers quarter-to-quarter with in done the due off While growth Premier, businesses, was teams. sold cash loan idle

us, Sound originated seen that level contrast In that growth, contributing it’s important higher higher also than we to of the the conversion rates. can and in significant Puget we behind way the May, to just a NIM Premier to Also is contribute in booked Bank flat thanks the team. which a to now in have saw of performance bigger pipeline see team. team much are expect project contributing conversion hard our of for team have up loan another controls the positive Once the early we is at is Bellevue think risk like distraction note loan work Premier around occurred profile to a normal our loans we I The we we are we that passed the And start to with that our the although manage ability we conversion, are corner believe teed in see good overall. to growth. the payoff, our November way. our new to

to happy see our both benefits the integration acquisitions. scale are We following of larger the of

continue by our flexibility provided We benefit the deposit to from composition. quality

deposits and the which the flexibility pricing the are cost XXs slightly the of is while low quarter-over-quarter, in provides the up is deposit low holding steady with While us balance loan betas optimize to managing the to sheet. relatively range ratio

steady as expenses, percent remains see trend After and across deposit and one-time focus growing in overhead we growth that are number deposits to healthy a down. quarter-to-quarter. quarter are non-maturity a and last deposit our the maintaining seeing continue on expect we the total for footprint of continue pleased We the ratio deposits to to in to adjusting we trend while positive

During count from where the closing the and total our Premier of to Premier we enhance one now of with have QX, in XX from a on helped area legacy presence million over basis nine additional increased Heritage we loans deposits. XX combined metro The branches $XXX and net our branch. branch Portland locations to merger locations

credit quality noted, Don quite As good. remains

M&A capital We over turn the balance when closing planned continue respond our growth positioning I’ll Brian to sheet to to as risk present now manage so they well in as we some Vance themselves. our can for it organic to bank and position comments. support opportunities

Brian Vance

Jeff. Thanks,

my signal to folks from believe are see historical the the We positive part in to the occurrence the We of and point selling a made Just view. scale some Premier we from combined high progress assets Heritage quarter in our larger taking third where and economic of happy observations I’m overall I’m continuing with the organization. scale conversion. have activities will accelerate benefit continue of of after this the natural pleased benefit profit. believe prepayment and cycle

evidence We and have a of assets considerable result loans selling. off paying as of businesses

deposits have evidence to and is substantial estate growth as selling branches homes, made also being some commercial our anecdotal from attributed real deposit indicating large We a businesses and result.

rate provider our also We due low in unwillingness form the part competition. to NIM believe a in expansion is cost our to of be

highly finding pricing get banks rate are As of struggled new loan have we recently many to loans. growth, renewed of activity competitive

continues the point discipline has been competitive in growth have. ratio. David, that effectively by the overhead the statements underwriting impacted we’ll believe also lack our critically back liquid ROE of quality future economic any and once We’d welcome while balance in base in bank leadership that sheet We to favorably and I’ll underwriting impact our continuing is our call and a quality aggressive to financial our me any loan And We questions And Our our leverage part to press rates important considerations. again team metrics may release the in maintaining it manage is we trends remain performance. relative to forward-looking again committed comment. credit is to expand and with you. our to we And forward-looking to as overall deposit at cycle refer answer you this the and dealing questions turn you EPS, the in the our continue increase, of grow improving to These footprint to and balance finally, see as the sheet. deposit betas. pleasing ROA, bank. signal will

Operator

Instructions]. [Operator

Rulis go will question Davidson. Jeff the ahead. D.A. with line first Please be from Our of

Jeffrey Rulis

quarter. at XQ in front. of this that I guess payoff came prepayment like seemed midway the impression later to the quarter. sort discussions it the relative the got was to third on activity bay on question of In sort A through I

skewed With the quarter? payoff with averages heavier activity of kind on back that of the deal, the is more end balances the

Brian Vance

didn’t that that third it the and third. the Jeff, We the were way might this we elevated the activity is and into all end, through happen. had towards second in payoff but No. as abate see Brian. We tail the got quarter hoping continued

consistent quarter. So it was pretty throughout the

Of activity course, variability, quarter. regular but they are loans size choppy payoffs some the the of the was consistent itself Obviously are do but occurrence the through a underlying anyway. drive

Jeffrey Rulis

timing of on through of in folks, ramp immediate saw the you Is that that to And guess expecting close. I the kind with months the three comments Sound timing kind you’re distraction [ph] of kind Puget two after what QX? consistent the

Jeff Deuel

see the production We Sound were completely. getting are is we a see to focused if once we occurred, Heritage XXX% XX But customers you I moving still production that on point. more at at Deuel. fact the – office. team but to slowdown full on stop for the that them never didn’t on think Bank, We Puget they look had. production in their top side. the focus see retaining Jeff this did fun started conversion A numbers because in it’s them they’re of eight the they’re we quickly Jeff, barely the producers

So we’re there. results really seeing some good

Jeffrey Rulis

one one – QX you guess I some anyone at merger the walk if looking and know low detail, Through expense you conversion it’s I XX.X for just 'XX? the what could puts then in Don maybe look in range. million I conversion us less on And broadly cost you in don’t other guess. the if XX Post through you just for expect or expenses in

Don Hinson

overhead continue expense talk his assets lower Well, to to continue I’ll that an I we that from average comments to it mentioned on that think ongoing an look noninterest ratio, in to over as we – Jeff basis. the

trend. trend the that’s and long-term always is to a to upon were related but would at so impacts out I CDI amortization that. of – and that. expenses have up, So just QX we improve a Always X.XX, overall out always the when we little look backing we’ll a continue backing the about that upon bit again, talk of and ongoing I improve year-over-year -- We to blip an say merger

that’s ratio that to is I how improve. that So is I’d expected answer to continue guess

Jeffrey Rulis

about another solid pulls your this variable forward the words in reasonable outside a assuming into suppose. step that a other on back Obviously Okay. that’s always growth asset your pretty core comments going if quarter of we figure I But up, in growth. QX

Don Hinson

Yes.

Jeffrey Rulis

Okay. Thank you. step back. I’ll

Operator

with Clark ahead. And of the go from Jaffray. next come will question Matthew Please line the Piper

Matthew Clark

Hi. Good morning.

Brian Vance

Good morning.

Matthew Clark

but Maybe just about by last little achieve the trying XXX spoke I think guess ratio year. kind in for the and line we Don, bit as maybe of you the to you XXX to overhead about with down in progression talked that in your I pin more, year about we’ve past think quarter to I a commentary to continued improvement? around the of range out beyond. next maybe Clearly sub-XXX with that, How that you look should end think XXXX better

Don Hinson

think of of Well, again the that I out the kind made some I’ve the previous didn’t back comments of amortization. impact

I more going about kind it’s of that because talk So those probably one controllable. really that of costs think aren’t I’ll forward,

like just overall mentioned by be to can move always down blips whole improvement at the a again, continue year in between looking say, year That’s down in year next there probably next – would costly whether quarter But us and each continued year – but it’s I this improve the yes, again XXXs. or QX. probably So a year of XXXs. QX they’ll range I’m hopefully and every we’ll for XXX year-over-year more is Again, I can to the XXX. the forward. is the upon here low XXX to always quarter’s year end be the idea And bring or

progression that’s looking So we’re the at.

Matthew Clark

now excluding amortization? And again that’s

Don Hinson

Correct.

Matthew Clark

just it, contribute this did, activity at how All the versus right. much all, income quarter all penalty I prepayment payoff with margin to the Got And if then okay. guess last?

Brian Vance

impact. there follow back don’t and number but significant of banker the the the Matt, prepayment wasn’t Don’s over on we each looking I payoffs. have payoffs Don, the We handy. if know that you get comments actually anything one And see XXX,XXX. from

Don Hinson

think material, was really that. don’t on I it Matt,

Matthew Clark

X% fourth your the and or going down full range to checking. here based about guess whether forward look Okay, that pipeline on this just the that do or X% to of Premier growth next I I guess think I to range flattish then stepping quarter do; down you eventually, year And guidance double kind how on year? loan growth maybe just for quarter targeted it’s obviously, just outlook organically. guess into of you being up the guys

Brian Vance

because that’s whole historically making Matt, we’ve It’s that payoffs, control the quarter the third second we our quarter you customer on about couple what part with when something necessarily flat. as can talked own. hope don’t to related it in quarters, the of We their example, it’s on not been it Obviously look that we and like X% continue the not we Based for the growth. be we’re would not the these see to now X% necessarily will. loan year. relatively unmet abating. service, last customers. in at on Right see decisions occurring of to growth or needs expecting to They’re has to

totally well expectations we’re X%. next you add want year terms the growth. for for of X% may to below loan So to Don, in that to

Don Hinson

again Yes, that. that’s be – below

X% quarters around And trailingXX below that. so maybe are or now

hit it’s to going going this to – year be that. it’s be tough to for So

Brian Vance

give rest the how think goes. quarter need we to Matt the guidance year think you I I to next for of see

Matthew Clark

understood. Yes,

Okay. Thank you.

Operator

next The go of comes Jacque Bohlen Please with line from question KBW. the ahead.

Jacque Bohlen

Hi. Good morning, everyone.

Brian Vance

Good morning.

Jacque Bohlen

processing breakout acquisition comp, do in data the just professional you quarter? of see terms those. core between the rate for Don, to run in fees trying and I’m expenses the have the

Don Hinson

QX was we – have Yes. of that professional didn’t fees of compensation. And in Most part that. well, have $X We much did. was actually we million about in did it

of was the rest and data processing. comp it So

Jacque Bohlen

waiting That’s the And realized the were of until you. conversion? quarter those cost most are Thank in savings helpful. Okay. or

Don Hinson

of that after QX. will happen Premier, most For

Jacque Bohlen

for potential you versus update everything dividend about you’re management? just have kind M&A. have then And versus market buybacks Could and we now and and almost thinking I think just the on an M&A? how just authorization about Okay. special dividend buyback question, how you and answers guess know but volatility I there’s lastly an of capital this

Brian Vance

Jacque, it’s Brian.

year be I basis to start think some by on – and that and over bank a billion done combined, acquisitions that the has $X grown have think I the two we’ve in result if those a working now capital I growth you assets we as our you year-to-year actually of a surprised will owned told would I look back the through that acquisitions. that of and

Now is to obviously we that’s stock of showing TCE my that. some I is, actual through generate But that part growth. a point were and issuing pretty as generated think beginning capital that we’re internally the nice

So cetera, there’s continue good to M&A think but internally capital will chance grow that fuel that that we going continue I operating think our generated we all and future to the a ROA, expense like believe of only point which I this look to think as XXXX that they’re I of et growth. metrics most progression organic control, to think ROE, is not I we whether at growth

it So I predict. probably We’ve at growth hold year. to capital think M&A M&A level is growth and growth. successful position that overall intentionally organic been our and hard strong is we the last the both for

growth. be support growth I of it’s hard believe but and a just organic ago that discussions, going continue got we dividends to terms in capital M&A only We not predict et arena cetera, to growth said that forward as when. in but in sufficient regular But we’ve to active moment

Jacque Bohlen

it strong wanted driver had was and really or you dividend – there special levels capital just this the specific to any reward quarter Okay. of shareholders? And was

Brian Vance

last fair special a statement, I Jacque. think Don, years that’s now? the me. probably We’ve correct six of dividend each a done

Don Hinson

Yes, seven.

Brian Vance

payout years consistent now, varied year-to-year. our It’s so pretty Seven from special I payment there’s dividend part. think a on

$X.XX. the where that is. to the used it last been special at And manage not and grow think years that I steady dividend it few it to to of think TCE beyond we’ve kind I it’s keep least

will to And because it cetera, yes, is predict general it variable what true. will But be always statement think your I it’s exactly continue so where easy to growth, be. et not

Jacque Bohlen

color. the for added Thanks great. Okay,

Brian Vance

Sure.

Operator

Instructions]. [Operator

question have ahead. Sandler O’Neill. We a with Tim Please of the line from O’Brien go

Tim O’Brien

number have Thank deal-related Don, for quarter? you. me. to expect Two questions residual fourth in book do cost or costs you remaining for you budgeted that a the conversion

Don Hinson

XXX,XXX somewhere and expecting between million. I’m X Tim,

Tim O’Brien

great. what thinking guiding XX.X% rate Okay, to pretty might And secondarily, your sustainable were basis? on Any guys a quarter. forward around a effective on tax run you what be then That’s close basis. adjustments here tax this going rate rate in

Don Hinson

bit I buying think a as and rate municipal little to really to prices. no going longer time anymore we over are increase bonds their tax it’s due the

go compared I tax-exempt securities because percentage some the of other exempt will to it of not think over So cash time. of assets we’re off And our also, adding fall will down to assets.

And I so think over time. be it up creeping will

for So will – which go little probably up is XX.X little quarter. by every

Tim O’Brien

existential And bankers question question, question. last of then Great. kind

prepayments, that of risk Given and underwriting loss challenging deals, the you sort we’ve that all taking color stuff on from heard guys I guess excessive of about the lending environment in and would point? your of being or this face as what at side, gathering good terms high you in more characterize challenging deposits lending the terms market of quality bankers this loans in

Jeff Deuel

any necessarily has been, I don’t than it’s more think Tim. it challenging

disciplined seeing how lots non-owner occupied market. about I be approach the us There’s business just continuing for we what think you’re we’re that to opportunities of CRE to CRE. that or is do

We’re which focus add trying to related to the the non-owner some that our occupied. the comes on want and are occupied owner firepower might for as color you Bryan, with relationships well. to relationships saving

Brian Vance

all that been by in, just involved start, I’d network, with force it’s group very today, at just best we Tim, the the that’s And markets agree. at I’ve in we I distribution terrific; look guess customer career. the sales by the that have the the operate saying Yes, my I far look base, when strong. I’d in distribution

at well new So good. positioned. activity I second And in production good. It really quarter, the was feel quite and then third the we was it look really when

payoff just asset activity a It’s making clients to it’s to this or decisions not it’s clients. sell and an losing really so And related sell business.

with So and come if we the Jeff the bank. is for the having market do isn’t going a differently These level – in that activity seen a and in case. production I’d side of competitive it’s marketplace. it that, were on and but business folks spite But that I’d be always our about continue back the are the business, structure feel strong. as to side up competitive in an that’s and losing pricing the side The pipeline said clients, is We’ve competing tick impact. to

and say, the like with we’ll I we and profit a on and of piece the So to them we’ll business well, selling good a do seems and other chance customer netting property payoff and that requests it, a decision get see down the hear nice road. business Jeff a

focused deposits as well are we’re results all across and We seeing the platform good that. from keenly on

So with where say sit. wouldn’t overall I we uncomfortable

Jeff Deuel

made production Pierce you in of the Seattle-Bellevue markets where years. expect. Brian Tacoma market just for the loans that best business that for the origination probably It’s both and When parts Thurston Heritage footprint is the well metro in right one you the the Tim, and we that as as we’ve have of like they’re about placed hear coming XX would deposits, County even County ever some been of spots. Portland it’s teams had how from coming and we comment legacy where about do our from the that area, we’ve

Tim O’Brien

Thanks appreciate the it. guys, color, for all much

Operator

the At there further this queue. questions in are time, no

Brian Vance

And Okay. crossing paths you. Thank in. you be over you, quarter. and Thank thank David, the calling next for we’ll everyone sure I’m

Operator

Thank our that Again was time code at AT&T until today using for PM and replay this replay XXXXXX. code the conference November today. participation at viewed (XXX) X the you by access for midnight. gentlemen, Teleconference. the This XXX-XXXX may number time and access does any Xth your XXXXXX. entering for That be at conclude Pacific available XXX-XXXX (XXX) dialing X.XX X conference and for and will be Ladies starting

disconnect. now may You