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Heritage Financial Corp. (HFWA)
NASDAQ:HFWA
Earnings Data
Report Date
Apr 16, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.33Last Year’s EPS
0.4Same Quarter Last Year
Moderate Buy
Based on 4 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed solid underlying performance: higher adjusted EPS, improved ROA, expanding NIM, strong deposit growth, materially lower borrowings, and continued low credit losses. Management highlighted near-term headwinds including elevated prepayments/payoffs, softer origination yields, increased substandard loans (manageable), and significant merger-related expenses and integration/fair-value uncertainty. The pending Olympic Bancorp acquisition is presented as accretive over time and a growth enabler. Overall, the positives (profitability, margin expansion, deposit growth, strong credit metrics, and strategic merger) outweigh the transitory and manageable negatives (loan production softness, certain credit downgrades, and merger costs).Company Guidance
Adjusted EPS Growth
Adjusted diluted earnings per share increased 18% sequentially and 29% year-over-year (vs Q4 2024).
Return on Assets Improvement
Adjusted ROA improved to 1.29% versus 0.99% in Q4 2024, indicating better overall profitability.
Net Interest Margin Expansion
Net interest margin (NIM) increased to 3.72% from 3.64% sequentially and from 3.36% in Q4 2024; net interest income rose $1.0 million (1.7%) versus prior quarter and $4.6 million year-over-year.
Deposit Growth and Lower Deposit Costs
Deposits increased by $63 million during the quarter and were up $236 million for the year; interest-bearing demand deposit cost declined to 1.83% from 1.89% sequentially, and management expects further deposit cost decreases following rate cuts.
Significant Borrowing Reduction
Borrowings declined materially to $20 million at year-end from $138 million at the end of Q3, improving liquidity and reducing funding costs.
Loan Portfolio Yield and Slight Growth
Loan portfolio yield was 5.54%, 1 basis point higher than Q3, and total loan balances increased $14 million in the quarter.
Credit Quality: Low Charge-Offs and Stable Nonperforming Levels
Quarter net charge-offs were $481,000; full-year net charge-offs were just under $1.4 million (0.03% of total loans) versus 0.06% in 2024. Nonperforming/nonaccrual loans totaled $21 million (0.44% of loans) and nonperforming ratio remained stable sequentially.
Provision Reversal and Allowance Management
Recognized a $814,000 reversal of provision for credit losses due to favorable loan mix shift (decline in higher-risk construction loans); allowance decreased to 1.10% from 1.13% sequentially.
Pending Merger with Olympic Bancorp Approved
Regulatory and shareholder approval secured for the pending Olympic Bancorp (Kitsap Bank) merger, expected to close end of January; management expects the deal to add profitability, low-cost deposits, and improve consolidated margin potential.
Capital and Leverage Position
All regulatory capital ratios remain comfortably above well-capitalized thresholds; Tangible Common Equity (TCE) ratio improved to 10.1% from 9.8% sequentially.
HFWA Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HFWA Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jan 22, 2026 | $26.02 | $27.88 | +7.16% |
Oct 23, 2025 | $22.52 | $22.59 | +0.31% |
Jul 24, 2025 | $24.21 | $22.55 | -6.85% |
Apr 24, 2025 | $22.06 | $22.07 | +0.04% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Heritage Financial Corp. (HFWA) report earnings?
Heritage Financial Corp. (HFWA) is schdueled to report earning on Apr 16, 2026, Before Open (Confirmed).
What is Heritage Financial Corp. (HFWA) earnings time?
Heritage Financial Corp. (HFWA) earnings time is at Apr 16, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HFWA EPS forecast?
HFWA EPS forecast for the fiscal quarter 2026 (Q1) is 0.33.