Heritage Financial Corp. (HFWA)
NASDAQ:HFWA
Want to see HFWA full AI Analyst Report?
Earnings Data
Report Date
Jul 23, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.45Last Year’s EPS
0.36Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a largely constructive message: the completed Olympic Bancorp merger meaningfully increased scale (loans, deposits, yields) and drove NIM expansion while credit quality remained strong. Key near-term negatives are elevated merger-related expenses, a decrease in TCE, deposit softness excluding the acquisition, and some sector watch points in C&I and CRE. Management provided clear integration and expense guidance, expects margin progression toward ~4%, and sees a growing loan pipeline supporting mid-single-digit growth. Overall, positives (merger benefits, margin improvement, stable credit metrics, pipeline strength) outweigh the near-term expense and capital pressures.Company Guidance
Merger with Olympic Bancorp Completed
Closed merger with Olympic Bancorp in Q1, adding $954 million of loans and $1.39 billion of deposits, strengthening presence in the Puget Sound market and increasing scale.
Significant Loan and Deposit Growth (Including Merger)
Total loans increased $939 million in Q1 (Olympic contributed $954 million). Total deposits increased $1.33 billion in Q1 (Olympic contributed $1.39 billion). Heritage loan balances excluding Olympic increased $20 million.
Net Interest Margin Expansion
Net interest margin rose to 3.96% from 3.72% in Q4 and 3.44% in Q1 2025, driven by higher loan and investment yields and lower deposit costs; management expects continued upward trajectory and targets ~4% by year end.
Loan and Investment Yields Improved
Q1 loan portfolio yield was 5.73%, up 19 basis points from Q4 (including ~6 bps from recovery of interest on nonaccrual loans). Investment portfolio yield increased ~17 basis points after acquiring assets at current market rates.
Strong Credit Metrics
Nonaccrual loans declined $6 million to $15 million (0.26% of loans vs 0.44% at end of 2025). Net charge-offs were $552,000 (annualized 0.04%), consistent with very low loss levels. Criticized loans remained stable at 3.9%; substandard loans improved to 2.1% from 2.4%.
Robust Loan Pipeline
Commercial loan pipeline ended the quarter at $631 million, up from $468 million in Q4 and $460 million a year ago; management expects mid-single-digit annualized loan growth in the coming quarters based on current pipeline.
Deposit Cost Decline
Cost of interest-bearing deposits decreased to 1.71% from 1.83% in the prior quarter (March cost ~1.68%); management expects deposit cost to hover around current levels (~1.68%-1.70%) absent major market shifts.
Capital and Liquidity Remain Comfortable
All regulatory capital ratios remain above well-capitalized thresholds. Management remains active on capital management (approximately 800,000 shares remaining in repurchase plan) and intends to manage capital including potential buybacks.
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 |
|---|---|---|---|
Apr 23, 2026 | $27.34 | $27.70 | +1.34% |
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% |
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 Jul 23, 2026, Before Open (Confirmed).
What is Heritage Financial Corp. (HFWA) earnings time?
Heritage Financial Corp. (HFWA) earnings time is at Jul 23, 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 (Q2) is 0.45.