Heritage Financial (HFWA) Q2 FY26 earnings call

Heritage Financial delivered a quarter marked by robust loan originations and continued net interest margin expansion, despite a notable seasonal decline in deposits and increased loan prepayments. The company is progressing with its Kitsap Bank integration, which is temporarily elevating expenses, but anticipates a return to lower run-rate costs by Q4. Management expects continued, albeit more moderate, NIM improvement driven by asset repricing and mid-single-digit loan growth.