Heritage Financial Q4 net income rises

Overview

• Washington bank's Q4 net income rose to $22.2 mln, adjusted EPS up from prior year

• Company's deposits increased by $62.7 mln, net interest margin improved to 3.72%

• Company received approvals for Olympic Bancorp acquisition, closing expected January 31

Outlook

• Company expects to close Olympic Bancorp acquisition by January 31, 2026

Result Drivers

• NET INTEREST INCOME - Increased by $1.0 mln due to higher net interest margin and lower interest expense

• DEPOSIT GROWTH - Deposits rose by $62.7 mln, driven by increase in non-maturity deposits

Key Details

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 6.6% above its January 21 closing price of $26.26

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

Press Release: ID:nPnvgJ8sa

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