Heritage Financial (HFWA) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -21.43%. A quarter ago, it was expected that this bank holding company would post earnings of $0.41 per share when it actually produced earnings of $0.45, delivering a surprise of 9.76%.Over the last four quarte ...

OLYMPIA, Wash., Oct. 23, 2024 /PRNewswire/ -- Heritage Financial Corporation (Nasdaq: HFWA) (the "Company" or "Heritage"), the parent company of Heritage Bank (the "Bank"), announces that Nicholas ("Nic") Bley will become the Executive Vice President and Chief Operating Officer ("COO") of Heritage Bank and Executive Vice President of Heritage, effective October 28, 2024.Mr. Bley held various titles with JPMorgan Chase & Co. over the past 16 years with his most recent role being the Managing Director and Com ...

Financial Performance - Net income for Q2 2024 decreased by $2.7 million, or 16.0%, to $14.2 million, compared to $16.8 million in Q2 2023[116] - For the first half of 2024, net income decreased by $17.4 million, or 46.6%, to $19.9 million, compared to $37.3 million in the same period of 2023[117] - Income before income taxes for the three months ended June 30, 2024, was $15.995 million, down $3.876 million, or 19.5%, from $19.871 million in 2023[139] Interest Income and Expense - Interest expense increased by $11.2 million in Q2 2024 due to higher funding costs, contributing to the decline in net income[116] - Interest income increased by $6.5 million in Q2 2024 due to higher yields on interest-earning assets resulting from rising market interest rates[116] - Total interest income increased to $76.6 million for the three months ended June 30, 2024, compared to $70.1 million for the same period in 2023, primarily due to a $7.0 million increase in interest income on loans receivable[121] - Total interest expense increased to $25.5 million during the three months ended June 30, 2024, compared to $14.2 million for the same period in 2023, primarily due to a $9.8 million increase in interest expense on interest-bearing deposits[123] - Net interest income decreased by $4.7 million, or 8.4%, to $51.1 million for the three months ended June 30, 2024, compared to $55.8 million for the same period in 2023[121] Noninterest Income and Expense - Noninterest income decreased by $2.0 million, or 27.9%, to $5.246 million for the three months ended June 30, 2024, primarily due to a $1.9 million pre-tax loss on the sale of investment securities[133] - Total noninterest income decreased by $13.2 million, or 84.9%, during the six months ended June 30, 2024, compared to the same period in 2023[134] - Noninterest expense decreased by $2.2 million in Q2 2024 due to expense management initiatives, including a reduction in full-time equivalent employees from 813 to 748[116] Loans and Assets - The average balance of loans receivable increased to $4.42 billion in Q2 2024, with interest earned of $60.6 million at a yield of 5.52%[118] - Loans receivable increased by $193.768 million, or 4.5%, to $4.481 billion as of June 30, 2024, compared to $4.288 billion at the end of 2023[141] - The average balance of loans receivable, net during the period was $4.36 billion, an increase of $266.8 million, or 6.5%, from the previous year[150] Capital and Liquidity - The Company's stockholders' equity decreased by $2.8 million, or 0.3%, to $850.5 million at June 30, 2024, primarily due to $16.2 million in dividends paid and $10.5 million in stock repurchases[155] - The Company declared a regular quarterly dividend of $0.23 per common share payable on August 21, 2024[155] - The Bank maintained a credit facility with the FHLB with available borrowing capacity of $1.34 billion and had $400 million in advances outstanding at June 30, 2024[153] - Total on-balance sheet liquidity increased to $1,040,579 thousand as of June 30, 2024, up from $981,231 thousand at December 31, 2023[161] Investment Securities - The company sold investment securities with an amortized cost of $182.8 million and a weighted average book yield of 2.44% during the first half of 2024[117] - The company sold investment securities with an amortized cost of $182.8 million at a loss of $11.9 million during the six months ended June 30, 2024[144] - Total investment securities decreased by $215.2 million, or 11.5%, to $1.66 billion at June 30, 2024, from $1.87 billion at December 31, 2023[144] Credit Quality - Provision for credit losses on loans was $3.2 million during the six months ended June 30, 2024, reflecting a decrease of $527,000 or 14.2% compared to the same period in 2023[131] - Nonaccrual loans decreased by $642,000, or 14.4%, to $3.826 million at June 30, 2024, from $4.468 million at December 31, 2023[148] - Total nonperforming assets increased by $2.361 million, or 41.0%, to $8.122 million at June 30, 2024, from $5.761 million at December 31, 2023[148] Regulatory Capital Ratios - The Company's total capital ratio was 13.9% as of June 30, 2024, exceeding the regulatory minimum for well-capitalized institutions[157] - The Tier 1 capital ratio for the Company was 13.0% as of June 30, 2024, also above the regulatory minimum[157] - The common equity Tier 1 capital ratio is 12.9% for both the company and the bank[159]

FOR IMMEDIATE RELEASE DATE: July 25, 2024 HERITAGE FINANCIAL ANNOUNCES SECOND QUARTER 2024 RESULTS AND DECLARES REGULAR CASH DIVIDEND Second Quarter 2024 Highlights Olympia, WA - Heritage Financial Corporation (Nasdaq GS: HFWA) (the "Company"), the parent company of Heritage Bank (the "Bank"), today reported net income of $14.2 million for the second quarter of 2024 compared to $5.7 million for the first quarter of 2024 and $16.8 million for the second quarter of 2023. Diluted earnings per share for the sec ...

Core Points - Heritage Financial Corporation has appointed Bryan D. McDonald as the new President and CEO of Heritage Bank, effective July 1, 2024, succeeding Jeffrey J. Deuel [1][5] - Jeffrey J. Deuel will remain as CEO of Heritage Financial Corporation until May 6, 2025, after which he will transition to an advisory role [5][6] - The bank operates 50 branch offices across Washington, Oregon, and Idaho, and aims to maintain a strong foundation while driving growth and shareholder value [2][7] Leadership Transition - The transition is designed to be methodical and thoughtful, ensuring minimal disruption to customers, shareholders, and employees [6] - Bryan D. McDonald has been with Heritage Bank since 2018 as President and Chief Operating Officer and has over 30 years of banking experience [1][6] - The leadership team is committed to serving the financial needs of customers and fostering economic growth in the region [3][6]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Washington 91-1857900 (State or other jurisdiction of incorporation or organization) 201 Fifth Avenue SW, Olympia WA 98501 (Address of principal executive offices) (Zip Code) (I.R.S. Empl ...

Financial Performance - Net income for Q1 2024 was $5.7 million, or $0.16 per diluted share, down from $6.2 million, or $0.18 per diluted share in Q4 2023, and $20.5 million, or $0.58 per diluted share in Q1 2023[2][5] - Income before income taxes for the quarter ended March 31, 2024, was $6,868,000, an increase of 4.4% from $6,577,000 in the previous quarter[43] - Net income for the quarter ended March 31, 2024, was $5,748,000, a decrease of 7.8% from $6,233,000 in the previous quarter[44] - Net interest income for Q1 2024 was $51.53 million, a decrease of 4.3% from $53.87 million in Q4 2023 and a decrease of 13.9% from $59.84 million in Q1 2023[23] - Noninterest income improved by $247,000 to a loss of $2.9 million in Q1 2024 from a loss of $3.1 million in Q4 2023, primarily due to a $10 million loss on the sale of investment securities in both periods[24][25] Asset and Deposit Management - Total assets as of March 31, 2024, were $7.09 billion, a slight decrease from $7.14 billion at the end of Q4 2023[23] - Total deposits decreased by $67.5 million, or 1.2%, to $5.53 billion at March 31, 2024, from $5.60 billion at December 31, 2023[9] - Total deposits decreased to $5,532,327,000 as of March 31, 2024, from $5,599,872,000 as of December 31, 2023[42] - The loans to deposits ratio increased to 80.0% from 77.4% in the previous quarter, suggesting a more aggressive lending strategy[51] Investment and Securities - The company incurred a pre-tax loss of $10.0 million on the sale of investment securities, impacting diluted earnings per share by $0.22 for the quarter[3][5] - Total investment securities decreased by $143.3 million, or 7.6%, to $1.73 billion at March 31, 2024, from $1.87 billion at December 31, 2023[7] - The loss on the sale of investment securities was $9.97 million in Q1 2024, compared to a loss of $10.00 million in Q4 2023[27] Expenses and Cost Management - Noninterest expense decreased by $2.4 million, or 5.5%, in Q1 2024 compared to Q4 2023, driven by reductions in data processing, professional services, and marketing expenses[28] - Approximately $1.1 million in severance costs were incurred in Q1 2024 as part of expense management initiatives, affecting diluted earnings per share by $0.02[3][5] - Compensation and employee benefits increased by $718,000, or 2.9%, in Q1 2024 compared to Q4 2023, largely due to $1.1 million in severance costs[30] Equity and Dividends - The company declared a regular cash dividend of $0.23 per share on April 24, 2024[5] - Total stockholders' equity decreased by $5.7 million, or 0.7%, to $847.6 million at March 31, 2024, primarily due to $8.1 million in dividends and $6.1 million in stock repurchases[12] - Stockholders' equity increased to $847,580,000 from $853,261,000 in the previous quarter, reflecting a stable capital position[51] Credit Quality - The allowance for credit losses on loans increased to 1.12% at March 31, 2024, from 1.11% at December 31, 2023, with a provision for credit losses of $1.7 million recorded in both quarters[14] - Total nonperforming loans rose to $7,420,000, an increase of 28.7% from $5,761,000 in the previous quarter[48] - Nonaccrual loans to loans receivable were 0.11% at March 31, 2024, compared to 0.10% at December 31, 2023[17] Interest Income and Margin - The net interest margin was 3.32% for Q1 2024, down from 3.41% in Q4 2023[5][6] - Total interest income for the quarter ended March 31, 2024, was $74,353,000, slightly up from $74,262,000 in the previous quarter[44] - The cost of interest-bearing deposits increased by 22 basis points to 1.70% in Q1 2024 from 1.48% in Q4 2023[20] Taxation - The effective income tax rate for the year ended December 31, 2023, was 15.3%, with an increase in income tax expense in Q1 2024 compared to Q4 2023 due to a higher effective tax rate[32] - Income tax expense for the quarter ended March 31, 2024, was $1,120,000, up 225.6% from $344,000 in the previous quarter[43] - The effective income tax rate increased to 16.3% for the quarter ended March 31, 2024, compared to 5.2% in the previous quarter[43]

For the quarter ended March 2024, Heritage Financial (HFWA) reported revenue of $48.63 million, down 28.6% over the same period last year. EPS came in at $0.40, compared to $0.58 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $59.87 million, representing a surprise of -18.77%. The company delivered an EPS surprise of -2.44%, with the consensus EPS estimate being $0.41.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

OLYMPIA, Wash., April 2, 2024 /PRNewswire/ -- Heritage Financial Corporation ("Company" or "Heritage") (Nasdaq: HFWA) anticipates issuing its first quarter earnings release on Thursday, April 25, 2024 before the market opens. The Company has scheduled a telephone conference call to discuss the first quarter earnings on Thursday, April 25, 2024 at 10:00 a.m. Pacific time (1:00 p.m. Eastern time). To access the conference call, call the numbers listed below:Live Conference Call                      (833) 470- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-29480 HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Washington 9 ...