Heritage Financial (HFWA) Q3 FY26 earnings call

Heritage Financial delivered a strong Q3 FY26, marked by robust loan and deposit growth, coupled with an improved net interest margin and net interest income. The successful completion of the Kitsap Bank systems conversion is set to enhance operational efficiency and reduce future expenses. While the quarter saw an increase in nonaccrual and criticized loans, management views these as manageable. The company remains optimistic about continued NIM and NII expansion, navigating competitive pressures and rising deposit costs with a focus on core operating relationships.