Heritage Financial Announces Third Quarter 2026 Results and Declares Regular Cash Dividend of $0.25 Per Share
Key Highlights
- ➤Net income $18.7 million, up from $17.5 million sequentially
- ➤Net interest margin rose six basis points to 4.05%
- ➤Loans increased $133.5 million, or 2.3%, during the quarter
- ➤Deposits increased $148.2 million, or 2.1%, to $7.19 billion
- ➤Approved repurchase program for up to 5% of outstanding shares
Expert Statements
Bryan McDonald, President and Chief Executive Officer of Heritage Financial Corporation
“We are pleased with the continued improvement in our net interest margin and growth in loans and deposits during the third quarter. In addition, we completed the successful conversion of the Kitsap Bank customers to the Heritage Bank system. This was an important step for Heritage to achieve full realization of cost savings from the Merger and operate with improved efficiency going forward.”
Heritage Financial Announces Third Quarter 2026 Results and Declares Regular Cash Dividend of $0.25 Per Share PR Newswire
* Net income was $18.7 million, or $0.46 per diluted share, compared to $17.5 million, or $0.42 per diluted share, for the second quarter of 2026. * Adjusted diluted earnings per share ((1)) were $0.55, compared to $0.57 in the second quarter of 2026. * Net interest income increased $2.4 million, or 3.3% (13.0% annualized) from the prior quarter. * Net interest margin increased to 4.05%, an increase of 6 basis points from 3.99% for the second quarter of 2026. * Yield on loans increased to 5.76%, an increase of 4 basis points from 5.72% for the second quarter of 2026. * Cost of interest bearing deposits decreased to 1.65%, from 1.67% for the second quarter of 2026. * Loans receivable increased $133.5 million, or 2.3% (9.2% annualized), from the second quarter of 2026. * Deposits increased $148.2 million, or 2.1% (8.4% annualized), from the second quarter of 2026. * Approved a new stock repurchase program authorizing the repurchase of up to 5% of the Company's outstanding shares, or approximately 2.0 million shares. * Declared a regular cash dividend of $0.25 per share on October 21, 2026. OLYMPIA, Wash., Oct. 22, 2026 /PRNewswire/ -- Heritage Financial Corporation (Nasdaq GS: HFWA) (the "Company," "we," or "us"), the parent company of Heritage Bank (the "Bank"), today reported net income of $18.7 million for the third quarter of 2026, compared to $17.5 million for the second quarter of 2026 and $19.2 million for the third quarter of 2025. Diluted earnings per share were $0.46 for the third quarter of 2026, compared to $0.42 for the second quarter of 2026 and $0.55 for the third quarter of 2025. Adjusted diluted earnings per share((1)) were $0.55 for the third quarter of 2026, compared to $0.57 for the second quarter of 2026 and $0.56 for the third quarter of 2025.
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