Heritage Financial Reports Q4 Net Income of $11.9M

By Bobby Samwell • Thursday, January 23 15:35 • Permanent Link

Heritage Financial Corporation (NASDAQ GS: HFWA) has reported its fourth-quarter and annual 2024 results, showing a net income of $11.9 million for the fourth quarter. This represents an increase from the $11.4 million reported for the third quarter of 2024 and a significant improvement from the $6.2 million in the fourth quarter of 2023. Diluted earnings per share for the fourth quarter of 2024 were $0.34, compared to $0.33 for the third quarter of 2024 and $0.18 for the fourth quarter of 2023.

The company's loans receivable increased by $122.6 million, or 2.6%, from the third quarter of 2024, and the net interest margin increased to 3.39% from 3.33% for the third quarter of 2024. Additionally, the cost of total deposits decreased to 1.39% from 1.42% for the third quarter of 2024.

The company declared a regular cash dividend of $0.24 per share on January 22, 2025, which represents a 4.3% increase from the $0.23 regular cash dividend per share declared in the fourth quarter of 2024.

The total assets of Heritage Financial Corporation stand at $7.1 billion as of December 31, 2024, slightly down from $7.15 billion at the end of the third quarter of 2024. However, loans receivable, net increased to $4.75 billion from $4.63 billion in the same period.

The company's capital ratios remain strong, with stockholders' equity to total assets at 12.2% and tangible common equity to tangible assets at 9.0% as of December 31, 2024.

In terms of credit quality, the percentage of classified loans to loans receivable improved to 1.4% at December 31, 2024, compared to 1.5% at September 30, 2024. Nonaccrual loans to loans receivable were 0.08% at December 31, 2024, down from 0.09% at September 30, 2024.

The company's available liquidity sources at December 31, 2024, represented a coverage ratio of 41.2% of total deposits and 103.1% of estimated uninsured deposits.

As a result of these announcements, the company's shares have moved 0.0% on the market, and are now trading at a price of $24.6. Check out the company's full 8-K submission here.

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