Heritage Financial Q3 EPS $0.46, New 5% Buyback, $0.25 Dividend
HFWA sits 34% above its 52-week low of $21.32 on light trading volume (0.4× avg).
Summary
Heritage earned $18.7 million ($0.46 per diluted share) in Q3 with margin at 4.05%, and the board authorized a new buyback of up to 5% of shares alongside a $0.25 quarterly dividend. Nonaccrual loans more than doubled to $32.1 million, a credit-quality blemish on an otherwise solid quarter.
Key Events · Earnings and Guidance · HFWA
-
Q3 Net Income $18.7 Million
Diluted EPS of $0.46 versus $0.42 in Q2 2026; adjusted diluted EPS was $0.55 versus $0.57, held back by $5.2 million of merger-related expenses from the Kitsap Bank core conversion.
-
New 5% Share Repurchase Program
Board approved repurchasing up to 5% of outstanding shares, or approximately 2.0 million shares, superseding the April 2024 program whose allowance was substantially completed in Q3.
-
Quarterly Dividend Raised to $0.25
Regular cash dividend of $0.25 per share declared October 21, 2026, payable November 18, 2026 to shareholders of record November 4, 2026, up from $0.24.
-
Nonaccrual Loans Double to $32.1 Million
Nonaccrual loans rose from $15.5 million to $32.1 million (0.55% of loans from 0.27%), driven by four C&I relationships totaling $12.9 million and three CRE relationships totaling $4.2 million; the provision for credit losses was $2.3 million versus an $844,000 reversal in Q2.
Analysis · HFWA · Finance
Third-quarter net income rose to $18.7 million ($0.46 per diluted share) from $17.5 million ($0.42) in Q2, but adjusted EPS slipped to $0.55 from $0.57 as $5.2 million of merger costs from the Kitsap Bank conversion ran through the quarter. The margin story is the good part: net interest margin widened to 4.05% from 3.99% and loans grew $133.5 million (2.3%). Against that, nonaccrual loans more than doubled to $32.1 million from $15.5 million, with four C&I relationships ($12.9 million) and three CRE relationships ($4.2 million) sliding into nonaccrual — the credit trend is the item to weigh against the buyback. The board authorized repurchasing up to 5% of shares (about 2.0 million) and declared a $0.25 quarterly dividend, up from $0.24.
How filings like this one have moved
In the 30 days to Oct 22, 2026, 29.3% of the 1529 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, HFWA was trading at $28.63 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $21.32 to $31.25. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.