Heritage Financial reports Q1 adjusted EPS 59c, consensus 57c

Net interest margin increased to 3.96%, an increase of 24 basis points from 3.72% for the fourth quarter of 2025. Yield on loans increased to 5.73%, an increase of 19 basis points from 5.54% for the fourth quarter of 2025. Bryan McDonald, President and CEO of the company, commented, “We successfully closed our strategic acquisition of Olympic Bancorp during the first quarter. This acquisition provides us with a stronger market position in the Puget Sound region, and has contributed to our improved profitability and net interest margin in the quarter. We are on track to complete the system conversion by the end of the third quarter 2026 at which time we will begin to recognize further cost savings, which aligns with our original timeline.”