Heritage Financial reports Q2 EPS 36c with items, consensus 50c

Q2 EPS includes the 15c per share impact of a pre-tax loss on sale of securities of $6.9M. Reports Q2 net interest margin of 3.51% from 3.44% for Q1. Tangible book value per share was $18.99 from $18.70 at previous quarter end. CEO Bryan McDonald commented, “We are pleased with the continued growth in core earnings, both compared to the prior quarter and to the same quarter in the prior year. This is partly due to the ongoing expansion of our net interest margin, due mostly to increases in yields on loans and investment securities. Despite a seasonal decline in deposit balances in Q2, our total deposits have increased $100M since year-end 2024. We continue to strategically reposition our balance sheet to improve future profitability and will consider investment in new production teams when favorable opportunities are presented. Although these actions may impact current earnings, we believe future earnings will be enhanced and we are optimistic that the combination of our strong balance sheet and prudent risk management will provide sustainable long-term returns for our shareholders.”