NASDAQ$HFWA

Heritage Financial Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced third quarter 2022 results and declared regular cash dividend.

Heritage Financial Corporation reported a net income of $21.0 million for Q3 2022, an increase compared to $18.6 million for Q2 2022 and $20.6 million for Q3 2021. The diluted earnings per share were $0.59, compared to $0.52 for the previous quarter and $0.58 for the same quarter last year. Loan receivable grew by $127.2 million, and net interest income increased by $9.2 million.

  • Net income was $21.0 million, or $0.59 per diluted share, for the third quarter of 2022.
  • Loans receivable grew $127.2 million, or 3.3% (13.0% annualized), in the third quarter of 2022.
  • Net interest income increased $9.2 million, or 18.5%, to $59.3 million for the third quarter of 2022 compared to $50.0 million for the second quarter of 2022.
  • Net interest margin increased to 3.57% for the third quarter of 2022 from 3.04% for the second quarter of 2022 and 3.15% for the third quarter of 2021.

Headline financials

Total Revenue

$66.7M

Previous: $59.6M+12.0%
EPS (adj)

$0.59

Previous: $0.58+1.7%
Net Interest Margin

3.6%

No prior period
Cost of Total Deposits

0.1%

No prior period
Efficiency Ratio

58.7%

Previous: 62.4%-5.9%
Book Value/Share

$22.13

No prior period
NPAs to Total Assets

0.1%

No prior period
Capital Expenditures

-$2.3M

Previous: -$2.15M-6.8%
Free Cash Flow

$18.7M

Previous: $18.4M+1.4%
Net Income

$21M

Previous: $20.6M+1.9%
Operating Income

$52M

Previous: $42.9M+21.3%
Gross Profit

$64.8M

Previous: $56.5M+14.8%
Cash & Equivalents

$407M

Previous: $1.63B-75.1%
Total Assets

$7.2B

Previous: $7.26B-0.8%

Revenue & EPS history

Heritage Financial · Revenue · Quarterly

$66.7M

Q3 2022+12%vs Q3 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

Heritage Financial · $3.43B total across 4 segments · Q1 2020

  • Non-Owner Occupied CRE
    $1.31B
  • Commercial & Industrial
    $890M
  • Owner-Occupied CRE
    $806M
  • Consumer
    $421M

Forward guidance

The company believes Heritage is well positioned to continue to take advantage of opportunities and navigate the economic environment in future periods.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.6%

Avg return

Earnings day

-1.2%

Avg return

5 days after

+1.1%

Avg return

30 days after

42%

28 / 66 earnings

Positive

+7.3%

Q4 2025

Best reaction

-10.7%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+0.9%-0.6%
Q4 2025+7.3%-1.0%+7.7%
Q3 2025+0.5%+1.7%+1.3%
Q2 2025-0.8%-2.8%+2.1%
Q1 2025+0.0%-0.2%+0.5%
Q4 2024+1.0%+2.6%-1.8%
Q3 2024+2.1%+5.1%+21.2%
Q2 2024+6.0%+6.2%+5.5%
Q1 2024-4.0%-4.7%-1.8%
Q4 2023-1.8%-3.2%-11.4%
Q3 2023+3.3%-1.9%+9.7%
Q2 2023-7.4%-3.4%-5.4%
Q1 2023-1.2%-12.0%-19.7%
Q4 2022+0.5%+1.3%+0.4%
Q3 2022-0.2%+1.5%+5.0%
Q2 2022-4.5%-2.8%+1.8%
Q1 2022+1.3%-0.1%-4.1%
Q4 2021-3.9%-2.6%+4.4%
Q3 2021+1.6%+0.4%-0.2%
Q2 2021-1.6%+0.8%+7.6%
Q1 2021+3.7%+3.7%+6.7%
Q4 2020-1.6%+0.0%+8.0%
Q3 2020+4.1%+1.0%+16.0%
Q2 2020-1.1%-3.1%-4.9%
Q1 2020-10.7%-14.5%-12.7%
Q4 2019-2.0%-4.1%-2.3%
Q3 2019-1.5%+0.9%-1.1%
Q2 2019-4.7%-5.3%-13.1%
Q1 2019-3.0%-3.4%-5.5%
Q4 2018+0.3%+0.5%+5.2%
Q3 2018+5.0%+8.9%+13.7%
Q2 2018-1.5%-5.7%-2.0%
Q1 2018-5.2%-5.2%+2.2%
Q4 2017+2.6%-0.5%+1.6%
Q3 2017+0.3%-1.6%-1.0%
Q2 2017+0.9%+1.9%-0.7%
Q1 2017+3.8%+0.4%-8.0%
Q4 2016-3.0%-4.7%-5.4%
Q3 2016+1.4%+2.8%+27.3%
Q2 2016-3.7%-5.2%-0.5%
Q1 2016+0.5%
Q4 2015+5.0%
Q3 2015-1.3%
Q2 2015-5.9%
Q1 2015-0.2%
Q4 2014-0.1%
Q3 2014-0.8%
Q2 2014+0.8%
Q1 2014-0.3%
Q4 2013-2.5%
Q3 2013+2.7%
Q2 2013-2.6%
Q1 2013-2.1%
Q4 2011+0.8%
Q4 2012-3.9%
Q3 2012-1.3%
Q2 2012+5.0%
Q1 2011+0.7%
Q1 2012+4.3%
Q4 2009-3.7%
Q3 2011-1.6%
Q3 2010-1.6%
Q2 2011-3.5%
Q2 2010-3.5%
Q4 2010-3.5%
Q1 2010-2.2%

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