HFWA Earnings Prediction
The chart below shows how HFWA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HFWA sees a -6.08% change in stock price 10 days leading up to the earnings, and a +0.81% change 10 days following the report. On the earnings day itself, the stock moves by +0.86%. This data can give you a slight idea of what to expect for the next quarter's release.
HFWA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
50.71M
14.11%
2.74%
Gross Margin
--
--
--
Operating Margin
45.97%
147.68%
73.67%
Net Margin
23.52%
67.64%
1.64%
EPS
0.34
88.89%
3.03%
No Data Available
HFWA Earnings Analysis
Heritage Financial Corp Corporation (HFWA.O) Earnings Conference Call
Positive
Loan Balance Growth: Loan balances increased by $123 million in Q4, reflecting strong loan growth of over 10% annualized for the quarter and 10.8% for the full year.
Net Interest Income Increase: Net interest income rose by $805,000 in Q4, driven by an increase in net interest margin from 3.33% to 3.39% due to lower costs of deposits and borrowings.
Strong Credit Quality Improvement: Credit quality remained strong with non-performing loans decreasing to 0.11% of total loans at year-end, down from 0.21% at the end of Q3.
Share Repurchase Update: The company repurchased 165,000 shares for a total cost of $4.3 million during Q4, with 990,000 shares remaining available for repurchase under the current plan.
Deposit Growth and Retention: Average deposit balances in Q4 were $30 million higher than the ending focal date balance, indicating strong customer retention and growth despite a slight decline in total deposits.
Negative
Loan Balances vs. Yields: Loan balances increased by $123,000,000 in Q4, but yields on the loan portfolio decreased by 7 basis points to 5.53%, indicating a decline in profitability per loan.
Deposit Decline Analysis: Total deposits decreased by $24,000,000 in Q4, primarily due to a $25,000,000 reduction in brokered CDs, reflecting challenges in attracting and retaining deposits.
Investment Balances Decline: Investment balances decreased by $104,500,000, partly due to a pre-tax loss of $3,900,000 on the sale of $36,000,000 of securities, negatively impacting overall asset performance.
Rising Operational Costs: Non-interest expense increased by $250,000 compared to the prior quarter, indicating rising operational costs despite efforts to manage expenses effectively.
TCE Ratio Decline: The TCE ratio declined slightly to 9.0% from 9.1% in the prior quarter, suggesting a potential weakening in capital adequacy amidst ongoing financial pressures.
HFWA FAQs
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HFWA Earning Call Sentiment
Earnings call transcript: Heritage Financial Q4 2024 misses EPS forecast
HFWA.O
0%Positive
The earnings call presents mixed signals. Positive factors include strong loan growth, effective cost management, and a robust stock repurchase program. However, challenges such as flat deposit growth, potential economic impacts, and unclear management responses temper enthusiasm. The Q&A reveals cautious optimism but also highlights uncertainties, particularly in M&A and deposit management. The lack of decisive positive or negative elements suggests a neutral impact on the stock price, with potential fluctuations depending on external economic conditions.
