Olympia, WA · Cert 29012 · Heritage Financial Corp.
State charter, non-member · FDIC · 67 branches
Q2 2026
Market Position · Seattle-Tacoma-Bellevue, WA · 2026 SOD (annual) · 1.9% share · #9 of 43 inst. · $2.7B of $143.1B
Return on Assets (YTD, annualized)
Net Interest Margin (YTD, annualized)
Efficiency Ratio (YTD, annualized)
Tier 1 Leverage Ratio
Year to date, annualized, through each quarter.
| Metric | Q3 2024 | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 | Q1 2026 | Q2 2026 | YoY Δ | Trend |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings | ||||||||||
| Return on Assets | 0.68% | 0.71% | 0.89% | 0.84% | 0.96% | 1.07% | 1.15% | 1.05% | +21 bps | |
| Return on Equity | 5.60% | 5.77% | 7.10% | 6.68% | 7.58% | 8.30% | 8.66% | 7.88% | +121 bps | |
| Net Interest Margin | 2.99% | 3.03% | 3.13% | 3.20% | 3.28% | 3.35% | 3.40% | 3.56% | +36 bps | |
| Efficiency Ratio | 62.62% | 62.17% | 63.47% | 62.30% | 61.25% | 60.67% | 64.85% | 67.54% | +524 bps | |
| Non-Interest Burden | 1.67% | 1.68% | 1.77% | 1.76% | 1.77% | 1.79% | 2.07% | 2.28% | +52 bps | |
| Growth | ||||||||||
| Asset Growth (YoY) | 0.03% | -0.96% | 0.54% | 0.15% | -1.99% | -1.96% | 19.19% | 19.23% | +1,908 bps | |
| Loan Growth (YoY) | 9.66% | 10.76% | 7.60% | 5.34% | 1.92% | -0.39% | 20.09% | 20.38% | +1,503 bps | |
| Deposit Growth (YoY) | 1.06% | 1.31% | 5.69% | 4.84% | 2.69% | 4.18% | 24.10% | 21.72% | +1,687 bps | |
| Asset Quality | ||||||||||
| Nonperforming Loans / Loans | 0.23% | 0.11% | 0.09% | 0.39% | 0.44% | 0.44% | 0.26% | 0.27% | -12 bps | |
| Net Charge-Offs / Loans | 0.07% | 0.05% | 0.03% | 0.03% | 0.03% | 0.03% | 0.04% | 0.03% | -1 bps | |
| Allowance / Loans | 1.10% | 1.09% | 1.09% | 1.10% | 1.13% | 1.10% | 1.06% | 1.03% | -7 bps | |
| Allowance Coverage of NPLs | 4.8x | 9.9x | 11.8x | 2.8x | 2.6x | 2.5x | 4.0x | 3.8x | +1.0x | |
| Capital | ||||||||||
| Tier 1 Leverage Ratio | 9.86% | 9.91% | 10.04% | 10.18% | 10.38% | 10.70% | 10.10% | 10.23% | +5 bps | |
| Total Risk-Based Capital | 13.50% | 13.20% | 13.43% | 13.48% | 13.66% | 13.92% | 13.24% | 13.23% | -24 bps | |
| Equity / Assets | 12.46% | 12.36% | 12.57% | 12.79% | 13.07% | 13.40% | 13.22% | 13.32% | +53 bps | |
| Liquidity & Funding | ||||||||||
| Loans / Deposits | 81.96% | 84.41% | 81.46% | 82.52% | 81.34% | 80.70% | 78.83% | 81.61% | -91 bps | |
| Liquid Assets / Assets | 11.43% | 10.72% | 12.03% | 12.07% | 12.18% | 12.27% | 9.87% | 9.07% | -301 bps | |
| CRE / Total Capital | n/a | n/a | n/a | n/a | 442% | 440% | 463% | n/a | n/a | |