Overview

* Heritage Financial ( HFWA ) Q3 net income rises to $19.2 mln, up from $12.2 mln in Q2

* Net interest margin increased to 3.64%, up 13 basis points from Q2

* Company had last month announced acquisition of Olympic Bancorp, enhancing balance sheet strength

Outlook

* Heritage Financial expects to close Olympic Bancorp acquisition in Q1 2026

* Heritage anticipates acquisition of Olympic Bancorp to enhance balance sheet and profitability

Result Drivers

* NET INTEREST INCOME - Increase driven by higher loan yields and lower deposit costs, enhancing net interest margin

* CORE DEPOSITS GROWTH - Growth in core deposits allowed reduction in borrowings, strengthening net interest margin

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $0.55

Q3 Net $19.16

Income mln

Q3 Net 3.64%

Interest

Margin

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 ( HFWA ) is $28.00, about 18.3% above its October 21 closing price of $22.87

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

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)