NASDAQ$HFWA
Heritage Financial Corporation · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Announced fourth quarter and annual 2022 results and declared regular cash dividend.
Heritage Financial Corporation reported a net income of $22.5 million for the fourth quarter of 2022, compared to $19.4 million for the fourth quarter of 2021. Diluted earnings per share for the fourth quarter of 2022 were $0.64, compared to $0.55 for the fourth quarter of 2021. Net interest income increased by $15.2 million, or 31.7%, compared to the fourth quarter of 2021, and net interest margin increased to 3.98%.
- Net income was $22.5 million, or $0.64 per diluted share, for the fourth quarter of 2022 compared to $19.4 million, or $0.55 per diluted share, for the fourth quarter of 2021.
- Loans receivable increased $49.6 million, or 1.2% (4.9% annualized), in the fourth quarter of 2022.
- Net interest income increased $3.8 million, or 6.4%, to $63.1 million for the fourth quarter of 2022 compared to $59.3 million for the third quarter of 2022, and increased $15.2 million, or 31.7% compared to $47.9 million for the fourth quarter of 2021.
- Net interest margin increased to 3.98% for the fourth quarter of 2022 from 2.85% for the fourth quarter of 2021.
Headline financials
Revenue & EPS history
Heritage Financial · Revenue · Quarterly
$69.7M
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
The company is focused on expanding into new markets and continuing to grow its loan portfolio while managing expenses and maintaining a strong balance sheet.
Tailwinds
- Expanded geographic footprint into Idaho with the opening of a branch in Boise on January 10, 2023.
- Net interest margin in the fourth quarter increased by 113 basis points from the fourth quarter of 2021.
- Cost of total deposits only increased by 7 basis points.
- Total loan balances increased by 10.3% from year end 2021, excluding the impacts of SBA PPP loan repayments.
- Partnering with College Housing Northwest in financing 79 affordable student housing rental units located on the Eastside of Portland.
Headwinds
- Total deposits decreased $312.9 million, or 5.0%, from September 30, 2022.
- The decrease was due to competitive pricing pressures and customers moving excess funds to alternative higher yielding investments as well as general declines in individual customer balances.
- Noninterest income decreased from the third quarter of 2022 due primarily to decreased card revenue, a loss on the sale of investment securities recognized during the fourth quarter of 2022 and a gain on sale of branches held for sale recognized during the third quarter of 2022.
- Noninterest income decreased from the same period in 2021 due primarily to reduced gain on sale of loans, net as sales volume of secondary market mortgage loans declined, a loss on the sale of investment securities recognized during the fourth quarter of 2022 and a gain on sale of branches held for sale recognized during the fourth quarter of 2021.
- Income tax expense increased compared to the third quarter of 2022 due primarily to a higher effective income tax rate during the fourth quarter of 2022 following an increase in annual pre-tax income for the year ended 2022, which decreased the impact of favorable permanent tax items such as tax-exempt investments, investments in bank owned life insurance and low-income housing tax credits as well as an increase in the effective state income tax rate.
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 Q4 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
| 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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