The earnings call revealed strong earnings growth, strategic repositioning, and robust loan production, indicating positive business momentum. However, challenges such as the decline in deposit balances, increased nonperforming loans, and concerns in credit quality highlight areas of concern that balance the optimism.

Company Guidance

During the Heritage Financial 2025 Q2 Earnings Call, the company provided detailed guidance reflecting strong financial performance and growth trends. Key metrics highlighted included an 8.2% increase in earnings per share from the previous quarter and a 17.8% rise compared to the same period in 2024. The net interest margin improved to 3.51%, up from 3.44% in Q1, primarily due to increased yields on loans and investment portfolios. Total loan balances grew by $10 million, while yields on the loan portfolio increased to 5.50%. Conversely, total deposits decreased by $60.9 million due to seasonal tax-related outflows. The cost of interest-bearing deposits rose slightly to 1.94%. Noninterest expense guidance remained in the $41 million to $42 million range for the year. Heritage reported nonaccrual loans at 0.21% of total loans, with a slight increase in nonperforming loans to 0.39%. The company executed a strategic repositioning of its balance sheet, incurring a pretax loss of $6.9 million from the sale of securities but reinvesting in higher-yielding loans. Heritage also repurchased 193,700 shares at a cost of $4.5 million, maintaining strong regulatory capital ratios with a TCE ratio of 9.4%. Overall, the call conveyed optimism for continued profitability and growth through prudent risk management and strategic initiatives.

Improved Earnings Per Share

Earnings per share increased by 8.2% versus last quarter and 17.8% versus the same quarter in 2024.

Increase in Loan Production

Commercial lending teams closed $248 million in new loan commitments, up from $183 million last quarter and $218 million in the second quarter of 2024.

Net Interest Margin Growth

Net interest margin increased to 3.51% from 3.44% in the prior quarter.

Strong Capital Ratios

Regulatory capital ratios remain above well-capitalized thresholds with a TCE ratio of 9.4%, up from 9.3% in the prior quarter.

Strategic Balance Sheet Repositioning

A strategic repositioning involved a pretax loss of $6.9 million on securities sales, with proceeds reinvested in higher-yielding loans.

Heritage Financial (HFWA) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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HFWA Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 16, 2025	2025 (Q3)	0.55 / -	0.33	―	―	―
Jul 24, 2025	2025 (Q2)	0.50 / 0.36	0.41	-12.20% (-0.05)
Apr 24, 2025	2025 (Q1)	0.45 / 0.40	0.16	150.00% (+0.24)
Jan 23, 2025	2024 (Q4)	0.45 / 0.34	0.18	88.89% (+0.16)
Oct 24, 2024	2024 (Q3)	0.41 / 0.33	0.51	-35.29% (-0.18)
Jul 25, 2024	2024 (Q2)	0.40 / 0.41	0.48	-14.58% (-0.07)
Apr 25, 2024	2024 (Q1)	0.40 / 0.16	0.58	-72.41% (-0.42)
Jan 25, 2024	2023 (Q4)	0.45 / 0.18	0.64	-71.88% (-0.46)
Oct 19, 2023	2023 (Q3)	0.43 / 0.51	0.59	-13.56% (-0.08)
Jul 20, 2023	2023 (Q2)	0.48 / 0.48	0.52	-7.69% (-0.04)

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
Jul 24, 2025	$24.70	$23.00	-6.88%
Apr 24, 2025	$22.50	$22.51	+0.04%
Jan 23, 2025	$23.87	$24.11	+1.01%
Oct 24, 2024	$21.01	$21.48	+2.24%

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 Oct 16, 2025, Before Open (Confirmed).

What is Heritage Financial Corp. (HFWA) earnings time?

Heritage Financial Corp. (HFWA) earnings time is at Oct 16, 2025, 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 2025 (Q3) is 0.55.

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