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Heritage Bank & Trust

Columbia, TN · Cert 58220 · Heritage Financial Corp.

State charter, non-member · FDIC · 4 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets (n=581 to 629). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

17

Q2 2024Q2 2026peer median (50)

Asset Quality

55

Q2 2024Q2 2026peer median (50)

Profitability

72

Q2 2024Q2 2026peer median (50)

Liquidity

36

Q2 2024Q2 2026peer median

Efficiency

58

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Heritage Bank & Trust

Columbia, TN · Cert 58220 · Heritage Financial Corp.

State charter, non-member · FDIC · 4 branches

Q2 2026

$417.8MAssets
$359.3MLoans
$377.3MDeposits
$33.4MEquity
Loan mix
97%RE $341.4M2%C&I $8.2M1%Consumer $2.8MQ2 2025Q2 2026
Deposit mix
85%Interest-bearing $321.8M15%Noninterest $55.5MQ2 2025Q2 2026

NIM

5.75%Q2 ’245.76%Q2 ’255.87%Q2 ’26+5%+3%

Non-interest income vs. expense

3.22%Q2 ’243.20%Q2 ’253.17%Q2 ’26+9%-21%

Market Position · Nashville-Davidson--Murfreesboro--Franklin, TN · 2026 SOD (annual) · 0.3% share · #35 of 62 inst. · $0.3B of $107.8B

11.6% Maury
22.8% Hickman
6.9% Lawrence

Executive Summary

  • Earnings: ROA of 1.28%, up 63 bps year over year; NIM at 3.80%.
  • Asset quality: problem loans at 0.36% of loans (-16 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 8.48%, up 10 bps from a year ago.
  • Funding: loans stand at 95.22% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.28%+63 bps YoY

Net Interest Margin (YTD, annualized)

3.80%+10 bps YoY

Efficiency Ratio (YTD, annualized)

64.99%-1,019 bps YoY

Tier 1 Leverage Ratio

8.48%+10 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.66%0.79%0.87%1.55%1.28%+63 bps
Return on Equity9.14%10.78%11.70%19.84%16.32%+718 bps
Net Interest Margin3.71%3.68%3.61%3.82%3.80%+10 bps
Efficiency Ratio75.18%71.91%70.81%60.99%64.99%-1,019 bps
Non-Interest Burden2.65%2.45%2.37%1.74%2.10%-55 bps
Growth
Asset Growth (YoY)5.89%6.28%5.08%3.71%6.91%+102 bps
Loan Growth (YoY)8.99%12.07%14.49%15.90%16.86%+787 bps
Deposit Growth (YoY)5.83%4.58%2.79%1.19%5.95%+12 bps
Asset Quality
Nonperforming Loans / Loans0.52%0.44%0.41%0.40%0.36%-16 bps
Net Charge-Offs / Loans0.36%0.24%0.17%0.00%0.00%-36 bps
Allowance / Loans1.78%1.77%1.69%1.66%1.62%-16 bps
Allowance Coverage of NPLs3.5x4.0x4.1x4.1x4.5x+1.1x
Capital
Tier 1 Leverage Ratio8.38%8.33%8.31%8.42%8.48%+10 bps
Total Risk-Based Capital11.46%11.42%11.21%11.37%11.50%+3 bps
Equity / Assets7.40%7.58%7.81%7.79%8.00%+61 bps
Liquidity & Funding
Loans / Deposits86.33%89.08%94.86%94.46%95.22%+889 bps
Liquid Assets / Assets4.53%4.65%0.25%2.56%1.35%-318 bps
CRE / Total Capitaln/a414%469%461%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Heritage Bank & Trust

Columbia, TN · Cert 58220 · Peer group: banks under $1B in assets (n=581-629) · Heritage Financial Corp.

State charter, non-member · FDIC · 4 branches

Q2 2026

$417.8MAssets
$359.3MLoans
$377.3MDeposits
$33.4MEquity

Executive Summary

  • Strongest standing: return on equity outperforms 87% of banks under $1B in assets (rank 83 of 629).
  • Widest gap: equity / assets trails 88% of banks under $1B in assets (rank 552 of 629).
  • Overall: at or above the peer median on 6 of 9 directional measures.

Return on Assets

1.27%

Rank 216 of 629

Net Interest Margin

3.80%

Rank 227 of 629

Efficiency Ratio

64.99%

Rank 263 of 629

Equity / Assets

8.00%

Rank 552 of 629

Non-interest income vs. expense

$4.6M$13.4MINCOMEEXPENSE
Unfavorable gap of $8.9M · efficiency ratio beats 58% of banks under $1B in assets
Bank 64.99%Peer median 67.8%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.27%0.60%1.01%1.45%Beats 66%216 / 629
Return on Equity15.90%5.38%9.30%13.28%Beats 87%83 / 629
Net Interest Margin3.80%3.03%3.54%4.05%Beats 64%227 / 629
Efficiency Ratio64.99%58.35%67.79%79.08%Beats 58%263 / 629
Asset Quality
Nonperforming Loans / Loans0.36%0.09%0.46%1.20%Beats 55%261 / 581
Net Charge-Offs / Loans0.01%n/a0.01%0.06%Beats 54%270 / 581
Capital
Tier 1 Capital Ratio10.24%11.24%13.84%18.77%Beats 14%544 / 629
Total Risk-Based Capital Ratio11.50%11.58%14.43%19.66%Beats 24%477 / 629
Equity / Assets8.00%9.09%10.65%13.80%Beats 12%552 / 629
Liquidity & Funding
Loans / Deposits95.22%67.24%80.90%93.48%78th pctl128 / 594
Loans / Assets86.00%53.31%67.71%78.15%95th pctl33 / 629
Brokered Deposits / Depositsn/aNot reported for this institution