Heritage Financial stock gets new buyback after Q3 results

Heritage Financial Corporation reported third-quarter 2026 net income of $18.7 million on October 22, compared with $17.5 million in the second quarter and $19.2 million a year earlier. The company also authorized a new repurchase program covering up to approximately 2.0 million shares, or 5 percent of outstanding common stock. The results and capital actions were carried by Finanznachrichten from a PR Newswire release.

Margin and balance sheet improve

Diluted earnings per share were $0.46, compared with $0.42 in the prior quarter. Adjusted diluted earnings per share, a non-GAAP measure, were $0.55, compared with $0.57 in the second quarter and $0.56 in the year-earlier period.

Net interest income increased 3.3 percent from the prior quarter to $77.3 million. The net interest margin rose to 4.05 percent from 3.99 percent, while loans receivable increased 2.3 percent to $5.88 billion and deposits grew 2.1 percent to $7.19 billion.

Integration remains central

Heritage completed the core conversion of Kitsap Bank customer accounts during the quarter after acquiring Olympic Bancorp in January. The conversion and the closure of two branches generated $5.2 million in merger-related expenses, down from $7.5 million in the prior quarter.

Credit costs increased during the quarter. Heritage recorded a $2.3 million provision for credit losses on loans, compared with a reversal of $844,000 in the second quarter, while nonaccrual loans rose to $32.1 million from $15.5 million.

Capital returns and next dates

The board declared a quarterly cash dividend of $0.25 per share on October 21. The dividend is payable on November 18 to shareholders of record as of the close of business on November 4. The new repurchase authorization replaces an earlier program that was substantially completed during the third quarter.

Heritage Financial stock is traded on the Nasdaq Global Select Market. Its latest reported quarterly figures show stronger lending and deposit growth, but merger costs and higher credit provisions remain important factors for investors assessing the earnings outlook.

Heritage Financial operates as the Olympia, Washington-based bank holding company for Heritage Bank, a full-service commercial bank. Heritage Bank serves customers through branches in Washington, Oregon and Idaho, including locations operating under the Whidbey Island Bank and Kitsap Bank names. The company is integrating the operations acquired through Olympic Bancorp while expanding its commercial and real estate lending base.

Broader market developments are covered in current S&P 500 market reports.

Find more news and analyses on Heritage Financial stock.