Heritage Financial reports Q3 EPS 55c, consensus 55c

Reports Q3 net interest margin up 13 basis points to 3.64% from 3.51% during Q2. Tangible book value per share was $19.46 from $18.99 last quarter. Common equity tier 1 capital ratio was 12.4% from 12.2% last quarter. Bryan McDonald, CEO, commented, “We are pleased with the continued growth in core earnings driven by our margin expansion as loan yields continue to expand and our deposits costs are decreasing. Net interest income increased 8.3% from the same quarter of 2024. The growth in core deposits has allowed us to reduce borrowings by $245M, or 64%, in 2025 year to date, which further strengthened our net interest margin in the quarter. Of course, we are excited about the pending acquisition of Olympic Bancorp and its subsidiary, Kitsap Bank. This acquisition will further enhance the strength of our balance sheet and improve our profitability. We look forward to closing the transaction in Q1 2026.”