Heritage Financial Corporation (HFWA) Earnings
Heritage Financial Corporation is expected to report next earnings on July 23, 2026 (in NaN days), with a consensus EPS estimate of $0.54. HFWA has beaten EPS estimates in 7 of its last 12 reported quarters (average surprise +6.3% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $0.57 | $0.59 | +3.5% | $78M | -3.2% |
| Jan 22, 2026 | $0.57 | $0.66 | +15.8% | $87M | +7.4% |
| Oct 23, 2025 | $0.56 | $0.56 | +0.0% | $66M | -0.8% |
| Jul 24, 2025 | $0.50 | $0.53 | +6.0% | $57M | -13.5% |
| Apr 24, 2025 | $0.46 | $0.49 | +6.5% | $58M | -6.7% |
| Jan 23, 2025 | $0.45 | $0.51 | +13.3% | $57M | -5.2% |
| Oct 24, 2024 | $0.41 | $0.33 | -19.5% | $55M | -5.7% |
| Jul 25, 2024 | $0.40 | $0.41 | +2.5% | $56M | -3.3% |
| Apr 25, 2024 | $0.41 | $0.40 | -2.4% | $71M | +19.3% |
| Jan 25, 2024 | $0.47 | $0.47 | +0.0% | $71M | +14.6% |
| Oct 19, 2023 | $0.43 | $0.51 | +18.6% | $62M | -0.9% |
| Jul 20, 2023 | $0.48 | $0.48 | +0.0% | $63M | -3.2% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · April 23, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Bryan McDonald: Closed merger with Olympic, systems conversion in late September with higher expenses until after conversion, expected net interest margin improvement from Olympic's balance sheet and asset repricing. - Don Hinson: Reviewed balance sheet (loan, deposit, investment details), income statement (net interest income, provision for credit losses, noninterest expense), and capital (regulatory capital ratios). - Tony Chalfant: Reported strong credit quality, nonaccrual loans down, criticized loans stable, ORE property acquired. - Bryan McDonald: Provided loan production details (commercial lending group loan commitments, pipeline, loan growth expectation), deposit details (deposit increase, seasonality, pipeline), interest rate details for new loans. - Also mentioned recruiting bankers, acquisition integration on track.
Guidance
- Systems conversion in late September will bring higher expenses until after conversion, expecting noninterest expense levels to change in subsequent quarters. - Expect net interest margin upward trajectory to continue primarily driven by new loans and repricing within existing loan portfolio. - Expect annualized loan growth rate in mid-single-digit range in next couple of quarters. - Deposit cost expected to stay around current levels with some offset from competition.
Segment performance
Total loan balances increased $939 million in Q1. Loans acquired in Olympic totaled $954 million. Q1 yields on loan portfolio were 5.73%, 19 basis points higher than Q4. Total deposits increased $1.33 billion in Q1. Deposits acquired in Olympic merger totaled $1.39 billion. Cost of interest-bearing deposits decreased to 1.71% from 1.83% prior quarter. Investment balances increased $388 million from prior quarter. Yield on investment portfolio increased 17 basis points. Net interest margin increased to 3.96% from 3.72% prior quarter. Reversed provision for credit losses by $1.03 million. Nonaccrual loans totaled $15 million at quarter end, down $6 million from prior quarter. Criticized loans moved higher but stable as percentage of total loans. Nonperforming loans to total loans improved to 0.26% from 0.44% end of 2025.
Risks & headwinds
- Emerging risks in economy potential impact on credit quality. - Deposit competition could lead to upward migration in deposit costs. - Systems conversion execution risk.
Analyst Q&A
Q: Jeff Rulis circled back on expenses, asking about merger costs and margin.
A: Don Hinson said expense run rate includes merger costs, margin benefited by interest recovery.
Q: Jackson Laurent asked on balance sheet strength, deposit costs, capital.
A: Bryan McDonald and Don Hinson provided details on loan growth trajectory, deposit competition impact, capital management.
Q: Unknown Analyst asked on recruiting, acquisition integration.
A: Bryan McDonald said recruiting bankers ongoing, acquisition integration on track.
Q: Unknown Analyst asked on loan growth, borrower sentiment, payoffs.
A: Bryan McDonald provided insights on loan pipeline, borrower sentiment, payoff trends.
Q: Unknown Analyst asked on credit trends, specific sectors.
A: Tony Chalfant mentioned C&I portfolio having some pressure due to economic uncertainty.