Business
Heritage Financial Announces Fourth Quarter and Annual 2025 Results
Fourth Quarter 2025 HighlightsNet income was $22.2 million, or $0.65 per diluted share, compared to $19.2 million, or $0.55 per diluted share, for the third
About this update from Heritage Financial Corporation
[{"type":"text","content":"Fourth Quarter 2025 HighlightsNet income was $22.2 million, or $0.65 per diluted share, compared to $19.2 million, or $0.55 per diluted share, for the third quarter of 2025.Return on average assets increased to 1.27%, from 1.09% for the third quarter of 2025.Net interest income increased $1.0 million, or 1.7% (6.8% annualized), from the third quarter of 2025.Net interest margin increased to 3.72%, an increase of 8 basis points from 3.64% for the third quarter of 2025.Deposits increased $62.7 million, or 1.1% (4.2% annualized), from the third quarter of 2025.Cost of interest bearing deposits decreased to 1.83%, from 1.89% for the third quarter of 2025.Declared a regular cash dividend of $0.24 per share on January 16, 2026.Received regulatory and shareholder approvals to acquire Olympic Bancorp, Inc. (\"Olympic\"), which is expected to close on or about January 31, 2026, subject to the satisfaction of customary closing conditions.OLYMPIA, Wash., Jan. 22, 2026 /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 $22.2 million for the fourth quarter of 2025, compared to $19.2 million for the third quarter of 2025 and $11.9 million for the fourth quarter of 2024. Diluted earnings per share were $0.65 for the fourth quarter of 2025, compared to $0.55 for the third quarter of 2025 and $0.34 for the fourth quarter of 2024. Adjusted diluted earnings per share(1) were $0.66 for the fourth quarter of 2025, compared to $0.56 for the third quarter of 2025 and $0.51 for the fourth quarter of 2024.\nBryan McDonald, President and Chief Executive Officer of the Company, commented, \"We are very pleased with our operating results for the fourth quarter, which included stronger profitability, deposit growth, margin expansion and lower cost of deposits. The improvement in net interest margin provided an 8.6% increase in net interest income over fourth quarter 2024 levels. This quarter showed the strength of our quality banking franchise with 29% growth in adjusted diluted earnings per share from the same period in the prior year. We remain focused on generating long-term financial results for our shareholders.\"Mr. McDonald continued, \"We are also pleased with the progress made in completing the pending acquisition of ...