Heritage Financial Reports Strong Q1 2025 Results

Heritage Financial ( (HFWA) ) has released its Q1 earnings. Here is a breakdown of the information Heritage Financial presented to its investors.

Heritage Financial Corporation, based in Olympia, Washington, operates as a bank holding company with its primary subsidiary, Heritage Bank, providing full-service commercial banking through a network of branches in Washington, Oregon, and Idaho. The company is publicly traded on the Nasdaq Global Select Market under the symbol ‘HFWA.’

In the first quarter of 2025, Heritage Financial Corporation reported a net income of $13.9 million, an increase from the previous quarter’s $11.9 million. The company’s diluted earnings per share rose to $0.40 from $0.34 in the fourth quarter of 2024. The company also declared a regular cash dividend of $0.24 per share.

Key financial highlights for the quarter include an increase in net interest margin to 3.44% and a 2.8% rise in total deposits. Despite a pre-tax loss of $3.9 million from the sale of investment securities, the company strategically repositioned its balance sheet by purchasing higher-yielding securities and funding new loans. The cost of interest-bearing deposits decreased, contributing to improved financial metrics.

Heritage Financial’s strategic expansion into Spokane, Washington, with the hiring of experienced commercial bankers, reflects its focus on growth opportunities. The company maintains strong credit quality metrics, with low levels of net charge-offs and nonaccrual loan balances, and continues to invest in new production teams to enhance future profitability.

Looking ahead, Heritage Financial’s management remains optimistic about the company’s ability to deliver sustainable long-term returns for shareholders, supported by a strong balance sheet and prudent risk management strategies.