Heritage Financial (HFWA) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - Heritage Financial (HFWA) reported a revenue of $66.35 million for the quarter ended December 2025, marking an 8.8% year-over-year increase and a surprise of +0.99% over the Zacks Consensus Estimate of $65.7 million [1] - The earnings per share (EPS) for the same period was $0.66, compared to $0.51 a year ago, resulting in a surprise of +15.79% over the consensus EPS estimate of $0.57 [1] Financial Performance Metrics - Net Interest Margin was reported at 3.7%, matching the average estimate from three analysts [4] - The Efficiency Ratio was 62.5%, slightly better than the estimated 63.1% by three analysts [4] - Total Nonperforming Assets amounted to $21.17 million, exceeding the two-analyst average estimate of $16.75 million [4] - Total Nonaccrual Loans were also reported at $21.17 million, higher than the two-analyst average estimate of $14.25 million [4] - Average Balance of Total Interest Earning Assets was $6.22 billion, slightly below the $6.27 billion average estimate from two analysts [4] - Net charge-offs on loans to average loans receivable were reported at 0%, compared to the two-analyst average estimate of 0.1% [4] - Total Noninterest Income was $7.99 million, slightly below the three-analyst average estimate of $8 million [4] - Net Interest Income was reported at $58.36 million, exceeding the average estimate of $57.71 million from three analysts [4] Stock Performance - Shares of Heritage Financial have returned +7.1% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]