NASDAQ$HFWA
Heritage Financial Corporation · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Heritage Financial's performance declined due to a pre-tax loss on the sale of securities, while experiencing growth in loans and deposits.
Heritage Financial Corporation reported a net income of $11.4 million for the third quarter of 2024, a decrease compared to $14.2 million for the second quarter of 2024 and $18.2 million for the third quarter of 2023. The results include a pre-tax loss on the sale of securities of $6.9 million. However, the company saw positive growth in loans and deposits, with a net interest margin of 3.33%.
- Net income was $11.4 million, or $0.33 per diluted share, down from $14.2 million, or $0.41 per diluted share in Q2 2024.
- Loans receivable increased by $146.9 million, representing a 3.2% increase (12.9% annualized).
- Deposits increased by $192.8 million, a 3.5% increase (13.9% annualized).
- Net interest margin was 3.33%, an increase from 3.29% in the prior quarter.
Headline financials
Revenue & EPS history
Heritage Financial · Revenue · Quarterly
$54.8M
Revenue by segment
Heritage Financial · $3.43B total across 4 segments · Q1 2020
- Non-Owner Occupied CRE$1.31B—38.3%
- Commercial & Industrial$890M—25.9%
- Owner-Occupied CRE$806M—23.5%
- Consumer$421M—12.3%
Forward guidance
Heritage Financial Corporation is optimistic about future core profitability through balance sheet growth and prudent risk management.
Tailwinds
- Strong loan and deposit growth.
- Net interest margin expansion.
- Continued benefits from expense management measures.
- Increase in average earning assets and net interest margin resulted in an improvement in net interest income of $1.8 million, or 3.6%, from the prior quarter.
- Overall credit quality remains very strong.
Headwinds
- Experienced a charge-off during the quarter related to an owner-occupied commercial real estate loan previously downgraded to Substandard.
- Net interest income decreased $2.7 million, or 4.8%, during the third quarter of 2024 compared to the third quarter of 2023 and the net interest margin decreased 14 basis points to 3.33% from 3.47% during this same period.
- Noninterest income decreased $4.4 million from the same period in 2023 due primarily to a $6.9 million pre-tax loss on the sale of investment securities during the third quarter of 2024
- The effective tax rate declined due to lower pre-tax income which increased the impact of favorable permanent tax items such as tax-exempt investments, investments in bank owned life insurance and tax credits.
- Results include a pre-tax loss on sale of securities of $6.9 million, or $0.16 per diluted share on an after-tax basis.
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 2024
-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
| Quarter | Report date | Reaction (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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