Company expects net interest margin to continue improving as fixed rate loans reprice
Company anticipates additional cost savings from Olympic Bancorp acquisition after Q3 2026 systems conversion
Company sees potential for enhanced future earnings from margin gains and acquisition-related savings
Overview
US regional bank's Q2 adjusted EPS beat analyst expectations
Net interest margin improved to 3.99% amid cost savings from Olympic Bancorp acquisition
Company raised quarterly dividend by 4.2% to $0.25 per share
Analyst coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "hold"
Wall Street's median 12-month price target for Heritage Financial Corp is $31.00, about 2.7% above its July 22 closing price of $30.18
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
Result drivers and key details
- Net interest margin rose due to higher investment yields and lower deposit costs, aided by Olympic Bancorp acquisition
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