Heritage Financial Reports Strong Q3 2025 Results

Heritage Financial ( (HFWA) ) has released its Q3 earnings. Here is a breakdown of the information Heritage Financial presented to its investors.

Heritage Financial Corporation, based in Olympia, Washington, operates as a bank holding company with Heritage Bank as its sole subsidiary, offering full-service commercial banking across Washington, Oregon, and Idaho. In its third quarter of 2025, Heritage Financial reported a net income of $19.2 million, a significant increase from the previous quarter’s $12.2 million, alongside a regular cash dividend of $0.24 per share. The company also announced a definitive agreement to acquire Olympic Bancorp, Inc., which is expected to enhance its balance sheet and profitability.

The third quarter results highlighted a robust financial performance with a notable increase in net interest income by 4.3% from the previous quarter, driven by an improved net interest margin of 3.64%. The company also saw a 1.3% increase in total deposits, reaching $5.86 billion, and a reduction in borrowing costs. Heritage Financial’s strategic focus on expanding loan yields and reducing deposit costs contributed to these positive outcomes.

Additionally, the acquisition of Olympic Bancorp is anticipated to further strengthen Heritage Financial’s market position. The company’s noninterest income saw a substantial rise due to the absence of a previous quarter’s loss from the sale of investment securities, while noninterest expenses slightly increased due to merger-related costs and higher compensation expenses.

Looking ahead, Heritage Financial remains optimistic about its growth trajectory, with the acquisition of Olympic Bancorp set to close in the first quarter of 2026. The company continues to focus on enhancing its financial performance and maintaining strong capital levels, positioning itself well for future opportunities and challenges in the banking sector.