Heritage Financial ( (HFWA) ) has released its Q2 earnings. Here is a breakdown of the information Heritage Financial presented to its investors.
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Heritage Financial Corporation, headquartered in Olympia, Washington, operates as a bank holding company with Heritage Bank as its sole subsidiary, providing full-service commercial banking across Washington, Oregon, and Idaho.
In the second quarter of 2025, Heritage Financial reported a net income of $12.2 million, a decrease from the previous quarter’s $13.9 million. The company declared a regular cash dividend of $0.24 per share, maintaining its commitment to shareholder returns.
Key financial highlights include a slight increase in net interest margin to 3.51% and a yield on loans rising to 5.50%. Despite a pre-tax loss of $6.9 million from the sale of securities, the company strategically repositioned its balance sheet by purchasing higher-yielding securities and funding new loans. Total deposits saw a minor decrease, while the loan-to-deposit ratio improved to 82.5%.
Noninterest income faced a decline due to losses from securities sales, but this was partially offset by increased card revenue and bank-owned life insurance income. Noninterest expenses decreased slightly, reflecting cost management efforts despite increased professional fees related to technology contracts.
Looking ahead, Heritage Financial’s management remains optimistic about enhancing future earnings through strategic balance sheet repositioning and prudent risk management, aiming for sustainable long-term returns for shareholders.