Business
HERITAGE FINANCIAL ANNOUNCES SECOND QUARTER 2025 RESULTS AND DECLARES REGULAR CASH DIVIDEND OF $0.24 PER SHARE
Second Quarter 2025 Highlights Net income was $12.2 million, or $0.36 per diluted share, compared to $13.9 million, or $0.40 per diluted share, for the first
About this update from Heritage Financial Corporation
[{"type":"text","content":"Second Quarter 2025 Highlights\nNet income was $12.2 million, or $0.36 per diluted share, compared to $13.9 million, or $0.40 per diluted share, for the first quarter of 2025.Results included a pre-tax loss on sale of securities of $6.9 million resulting in a negative impact of $0.15 per diluted share.Net interest margin increased to 3.51%, from 3.44% for the first quarter of 2025.Yield on loans increased to 5.50%, from 5.45% for the first quarter of 2025.Cost of interest bearing deposits increased to 1.94%, from 1.92% for the first quarter of 2025.Declared a regular cash dividend of $0.24 per share on July 23, 2025.OLYMPIA, Wash., July 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 $12.2 million for the second quarter of 2025, compared to $13.9 million for the first quarter of 2025 and $14.2 million for the second quarter of 2024. Diluted earnings per share for the second quarter of 2025 were $0.36 compared to $0.40 for the first quarter of 2025 and $0.41 for the second quarter of 2024.\n\nIn the second quarter of 2025, the Company incurred a pre-tax loss of $6.9 million on the sale of investment securities in connection with the strategic repositioning of its balance sheet, which decreased diluted earnings per share by $0.15 for the quarter. The Company sold $91.6 million of investment securities with an average book yield of 2.63%. Net proceeds from the sale were used to purchase $56.4 million in investment securities with an average book yield of 5.06% and fund new loans originated during the quarter. The Company also incurred pre-tax losses on the sale of investment securities in connection with balance sheet repositioning during the first quarter of 2025 and second quarter of 2024 in the amounts of $3.9 million and $1.9 million, respectively, which decreased diluted earnings per share by $0.09 and $0.04, respectively, for such quarters.\nIn addition, the Company surrendered $8.5 million of its bank owned life insurance (\"BOLI\") portfolio during the second quarter of 2025, incurring tax expense related to the surrender of BOLI of $515,000 which decreased diluted earnings per share by $0.02 for the quarter.\nBryan McDonald, Chief Executive Officer of the Company, commented, \"We ...