Heritage Financial Q3 net income surges on higher interest income

Heritage Financial

23/10/2025 13:09

Overview

Heritage Financial Q3 net income rises to $19.2 mln, up from $12.2 mln in Q2

Net interest margin increased to 3.64%, up 13 basis points from Q2

Company had last month announced acquisition of Olympic Bancorp, enhancing balance sheet strength

Outlook

Heritage Financial expects to close Olympic Bancorp acquisition in Q1 2026

Heritage anticipates acquisition of Olympic Bancorp to enhance balance sheet and profitability

Result Drivers

NET INTEREST INCOME - Increase driven by higher loan yields and lower deposit costs, enhancing net interest margin

CORE DEPOSITS GROWTH - Growth in core deposits allowed reduction in borrowings, strengthening net interest margin

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.55
Q3 Net Income
$19.16 mln
Q3 Net Interest Margin
3.64%


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 "buy."

Wall Street's median 12-month price target for Heritage Financial Corp is $28.00, about 18.3% above its October 21 closing price of $22.87

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

Press Release: ID:nPn61KwNja

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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.)