Heritage Financial Q1 net income rises on Olympic Bancorp deal

Heritage Financial

23/04/2026 13:11

Overview

U.S. regional bank's Q1 net income and adjusted EPS rose yr/yr, aided by Olympic Bancorp deal

Net interest margin increased to 3.96% from 3.44% a year earlier

Company completed Olympic Bancorp acquisition, boosting assets and deposits

Outlook

Company expects Olympic Bancorp system conversion by end of Q3 2026, with further cost savings

Heritage Financial says focus remains on sustainable growth and prudent risk management

Result Drivers

MERGER IMPACT - Acquisition of Olympic Bancorp drove increases in assets, loans, deposits, and contributed to higher net interest income and margin

LOAN YIELD AND ACCRETION - Higher loan yields and incremental accretion on purchased loans boosted interest income

MERGER-RELATED EXPENSES - Noninterest expense rose due to merger-related costs, increased headcount, and higher amortization of intangible assets

Company press release: ID:nPnb8ZVv3a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$0.48
Q1 Net Income
$18.95 mln
Q1 Net Interest Margin
3.96%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "hold"

Wall Street's median 12-month price target for Heritage Financial Corp is $30.00, about 9.7% above its April 22 closing price of $27.34

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)