Business
HERITAGE FINANCIAL ANNOUNCES FIRST QUARTER 2025 RESULTS AND DECLARES REGULAR CASH DIVIDEND OF $0.24 PER SHARE
First Quarter 2025 Highlights Net income was $13.9 million, or $0.40 per diluted share, compared to $11.9 million, or $0.34 per diluted share, for the fourth
About this update from Heritage Financial Corporation
[{"type":"text","content":"First Quarter 2025 Highlights\nNet income was $13.9 million, or $0.40 per diluted share, compared to $11.9 million, or $0.34 per diluted share, for the fourth quarter of 2024. Results included a pre-tax loss on sale of securities of $3.9 million resulting in a negative impact of $0.09 per diluted share, which is the same impact as for the fourth quarter of 2024.Net interest margin increased to 3.44%, from 3.36% for the fourth quarter of 2024.Deposits increased $160.7 million, or 2.8% (11.4% annualized).Cost of interest bearing deposits decreased to 1.92%, from 1.98% for the fourth quarter of 2024.Expanded into Spokane, Washington with the hiring of three experienced commercial bankers. Declared a regular cash dividend of $0.24 per share on April 23, 2025.OLYMPIA, Wash., April 24, 2025 /PRNewswire/ -- Heritage Financial Corporation (Nasdaq GS: HFWA) (the \"Company\", \"we,\" or \"us\"), the parent company of Heritage Bank (the \"Bank\"), today reported net income of $13.9 million for the first quarter of 2025, compared to $11.9 million for the fourth quarter of 2024 and $5.7 million for the first quarter of 2024. Diluted earnings per share for the first quarter of 2025 were $0.40 compared to $0.34 for the fourth quarter of 2024 and $0.16 for the first quarter of 2024.\n\nIn the first quarter of 2025, the Company incurred a pre-tax loss of $3.9 million on the sale of investment securities in connection with the strategic repositioning of its balance sheet, which decreased diluted earnings per share by $0.09 for the quarter. The Company sold $60.9 million of investment securities with a book yield of 2.60%. Proceeds were used to purchase $28.2 million in investment securities with a book yield of 4.55% and fund new loans originated during the quarter.\nJeff Deuel, Chief Executive Officer of the Company, commented, \"We are very pleased with our operating results for the first quarter, which included solid deposit growth, margin expansion and lower cost of deposits. In addition, we have maintained strong credit quality metrics including low levels of net charge-offs and nonaccrual loan balances. We continue to strategically reposition our balance sheet to improve future profitability and invest in new production teams with the most recent in the Spokane market, where we see significant opportunity to grow our business. Although thes...