Heritage Financial (NASDAQ:HFWA) Full Year 2023 Results

Key Financial Results

• Revenue: US$239.5m (down 4.0% from FY 2022).

• Net income: US$61.8m (down 25% from FY 2022).

• Profit margin: 26% (down from 33% in FY 2022). The decrease in margin was primarily driven by higher expenses.

• EPS: US$1.76 (down from US$2.33 in FY 2022).

HFWA Banking Performance Indicators

• Net interest margin (NIM): 3.58% (up from 3.35% in FY 2022).

• Non-performing loans: 0.13% (down from 0.19% in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Heritage Financial Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 4.3%. Earnings per share (EPS) also missed analyst estimates by 14%.

Looking ahead, revenue is forecast to grow 3.7% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Banks industry in the US.

Performance of the American Banks industry.

The company's shares are down 1.0% from a week ago.

Risk Analysis

We don't want to rain on the parade too much, but we did also find 1 warning sign for Heritage Financial that you need to be mindful of.

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