Heritage Financial Corporation (HFWA) Earnings Call Transcripts
Heritage Financial Corporation's Latest Earnings Call - Q1 FY2026
Heritage Financial Corporation's Q1 2026 earnings call highlighted significant changes due to the Olympic Bancorp merger. The merger contributed to a substantial increase in both loan and deposit balances, with total loans rising by $939 million and deposits by $1.33 billion. The net interest margin improved to 3.96%, up from 3.72% in the previous quarter, driven by higher yields on loan and investment portfolios. Management expects continued net interest margin expansion. Noninterest expenses are projected to remain elevated until Q4 due to merger-related costs. The company anticipates mid-single-digit loan growth in the coming quarters.
Reported metrics
| Metric | Value |
|---|---|
| Net Interest Margin | 3.96% (beat) |
| Total Loan Balances | $939 million increase (positive) |
| Total Deposits | $1.33 billion increase (positive) |
| Nonaccrual Loans | $15 million (positive) |
| Noninterest Expense | $64-$65 million expected in Q2 and Q3 (neutral) |
| Cost of Interest-bearing Deposits | 1.71% (positive) |
Guidance from management
Management expects net interest margin to continue expanding, reaching 4% by year-end. Loan growth is anticipated in the mid-single-digit range for the next quarters.
What management said
Jeff, yes, yes, that includes the merger-related expenses. If you take out merger costs, we're more in the $57 million to $58 million range for the next 2 quarters and then dropping to about $55 million by Q4. So that -- I was not putting everything in that.
Well, professional services would be a big one on that. And then also the compensation because of severance would be some. And then we -- I think we also have some contract stuff that would show up in potential data processing. But those are the bigger ones. I don't have it broken out by type, that $5 million.
What analysts pressed on
Analysts expressed concerns about high noninterest expenses due to merger costs and sought clarification on the breakdown of these expenses. There were also questions about the sustainability of the net interest margin improvement.
Main topics on the call
- Olympic Bancorp Merger Impact — The merger with Olympic Bancorp significantly increased loan balances by $939 million and deposits by $1.33 billion. Management noted, 'The Olympic merger had a significant impact on the yield for the quarter.'
- Net Interest Margin Improvement — Net interest margin increased to 3.96% from 3.72% in Q4 2025. Management attributed this to 'increases in yields on the loan and investment portfolios and a decrease in the cost of deposits.'
- Credit Quality — Credit quality remained strong with nonaccrual loans declining to $15 million. The ratio of nonperforming loans improved to 0.26% from 0.44% at the end of 2025.
- Expense Management — Noninterest expenses increased due to merger-related costs. Management expects expenses to average $64-$65 million in Q2 and Q3, decreasing to $56-$57 million in Q4.
Read the full Heritage Financial Corporation transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.
About Heritage Financial Corporation
Heritage Financial Corporation (HFWA) is a publicly listed company in the Banks industry, within the Financials sector. It trades on NasdaqGS and is based in US. EarningsCalls.dev maintains a free, full-text archive of its earnings call transcripts — 30 calls on record spanning January 23, 2020 to July 23, 2026. Every transcript is split into speaker-by-speaker segments with headline metrics, free to read or available through our REST API.
Earnings Call History
EarningsCalls.dev has 30 Heritage Financial Corporation earnings call transcripts on record, spanning January 23, 2020 to July 23, 2026. Based on this history, Heritage Financial Corporation reports quarterly. The most recent call on file is dated July 23, 2026. The full list is below — each row opens the complete, free-to-read transcript.
- Ticker
- HFWA
- Exchange
- NasdaqGS
- Country
- US
- Sector
- Financials
- Industry
- Banks
- Calls on record
- 30
- First call
- January 23, 2020
- Most recent
- July 23, 2026
- Reporting cadence
- quarterly