Heritage Financial Corp (NAS:HFWA)

Q1 2026 Heritage Financial Corp Earnings Call Transcript

Apr 23, 2026 / 05:00 PM GMT

Release Date Price: $27.7 (+1.34%)

Transcript 10-Q8-K

Key Points

Positve

Heritage Financial Corp (HFWA) successfully closed the merger with Olympic Bancorp, enhancing its growth potential in the Puget Sound market.
Total loan balances increased significantly by $939 million in Q1, largely due to the Olympic merger.
Net interest margin improved to 3.96% from 3.72% in the prior quarter, driven by higher yields on loan and investment portfolios.
Credit quality remained strong with non-accrual loans declining by $6 million during the quarter.
The company reported a reversal of provision for credit losses amounting to $1.03 million, reflecting improved credit metrics.

Negative

Non-interest expenses increased due to merger-related costs, with expectations of elevated expenses until Q4.
Deposits, excluding those acquired from Olympic, decreased by $61 million, partly due to the maturity of brokered CDs.
The tangible common equity (TCE) ratio decreased to 9.6% from 10.1% in the prior quarter, impacted by the merger.
Commercial loan production decreased to $166 million in new commitments, down from $254 million last quarter.
Criticized loans increased by $37 million, with $18 million coming from the Olympic portfolio, although the percentage remained stable.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HFWA.OQ - Heritage Financial Corp
Q1 2026 Heritage Financial Corp Earnings Call
Apr 23, 2026 / 05:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the Heritage Financial 2026 Q1 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, will be the number one in your telephone keypad. I would like to, if you would like to withdraw your question, press star one again, thank you. I would now like to turn the call over to Mr. Brian McDonald, President and CEO, you may begin.

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