- Net income rose by 16.6% in Q1 2025 to $13.9 million, with diluted EPS at $0.40.
- Net interest margin improved to 3.44% from 3.36% in the previous quarter.
- Deposits increased by $160.7 million, or 2.8%, to reach $5.85 billion.
Heritage Financial Corporation (HFWA, Financial) reported significant financial growth for the first quarter of 2025, with net income rising to $13.9 million, equating to $0.40 per diluted share. This represents an increase from the previous quarter's $11.9 million, or $0.34 per diluted share. Notably, the company declared a regular cash dividend of $0.24 per share, maintaining shareholder return consistency.
The net interest margin increased to 3.44% from 3.36% in Q4 2024, reflecting strategic measures to enhance profitability. Total deposits saw a robust growth of $160.7 million, or 2.8%, which is an 11.4% annualized growth rate, pushing the total to $5.85 billion. The cost of interest-bearing deposits decreased slightly to 1.92% from 1.98% in the previous quarter, improving the bank’s financial efficiency.
Despite reporting a $3.9 million pre-tax loss from the sale of securities that impacted earnings per share by $0.09, Heritage Financial leveraged this strategic balance sheet repositioning to purchase higher-yielding securities, aiming to fortify long-term profitability. The expansion into the Spokane market with the addition of three commercial bankers further indicates the company’s growth-oriented strategy.
