Heritage Financial reports Q3 EPS 33c with items, consensus 41c

Q3 EPS includes a pre-tax loss on sale of securities of $6.9M, or 16c per diluted share on an after-tax basis. Q3 net interest margin increased four basis points to 3.33% from 3.29% during Q2. Tangible book value per share was $18.45 from $17.56 at previous quarter end. Common equity tier 1 capital ratio was 12.3% from 12.6% at previous quarter. CEO Jeff Deuel commented, “We are very pleased with our operating results for the third quarter, which included strong loan and deposit growth, margin expansion, and continued benefits from expense management measures. The increases in average earning assets and net interest margin resulted in an improvement in net interest income of $1.8M, or 3.6%, from the prior quarter. Although we experienced a charge-off during the quarter related to an owner-occupied commercial real estate loan previously downgraded to Substandard, we believe our overall credit quality remains very strong. We are optimistic that the combination of core balance sheet growth and prudent risk management will continue to benefit our core profitability.”