Heritage Financial reported net income of $22.2 million and diluted EPS of $0.65 for Q4 2025, an increase from $19.2 million and $0.55, respectively, in Q3 2025. Net interest margin expanded to 3.72%.
Bullish
Heritage Financial achieved stronger profitability with net income of $22.2 million and expanded net interest margin to 3.72% while decreasing deposit costs. The company also secured approvals for the Olympic Bancorp acquisition.
Bearish
Heritage Financial experienced a notable increase in classified and nonaccrual loans, indicating deteriorating credit quality. Additionally, noninterest income decreased, primarily due to lower card revenue and other income.