ヘリテージファイナンシャルの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities and Exchange Act of 1934

Date of Report (Dated of earliest event reported): July 23, 2026

HERITAGE FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Commission File Number 000-29480

Washington

91-1857900

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

201 Fifth Avenue SW,

Olympia

98501

(Address of principal executive offices)

(Zip Code)

(360) 943-1500

(Registrant’s telephone number, including area code)

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12 (b) of the Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common stock, no par value	HFWA	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1934 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On July 23, 2026, Heritage Financial Corporation (“Heritage”) issued a press release announcing its second quarter 2026 results.

A copy of the release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information furnished pursuant to this Item and the related exhibit is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by Heritage for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure

Heritage is filing an investor presentation that it reviewed in conjunction with its earnings release conference call on July 23, 2026.

A copy of the presentation materials is attached hereto as Exhibit 99.2 to this Current Report on Form 8-K and is incorporated herein by reference. The information furnished pursuant to this Item and the related exhibit is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by Heritage for purposes of Section 18 of the Exchange Act, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 8.01 Other Events

On July 23, 2026, Heritage issued a press release announcing a regular quarterly cash dividend of $0.25 per common share. The dividend will be paid on August 19, 2026 to shareholders of record at the close of business on August 5, 2026.

A copy of the release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits


Exhibit 99.1						Press Release announcing Second Quarter 2026 results and declares regular cash dividend of $0.25 per share dated July 23, 2026

Exhibit 99.2						Second Quarter 2026 Investor Presentation

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						HERITAGE FINANCIAL CORPORATION

Date:
July 23, 2026						/S/ BRYAN MCDONALD
						Bryan McDonald
						President and Chief Executive Officer
						(Duly Authorized Officer)

EX-99.1 2 a8-kexhibit991q226er.htm EX-99.1 Document

FOR IMMEDIATE RELEASE

DATE: July 23, 2026

Heritage Financial Announces Second Quarter 2026 Results and Declares Regular Cash Dividend of $0.25 Per Share

Second Quarter 2026 Highlights

•Net income was $17.5 million, or $0.42 per diluted share, compared to $18.9 million, or $0.48 per diluted share, for the first quarter of 2026.

•Adjusted diluted earnings per share (1) was $0.57, compared to $0.59 in the first quarter of 2026.

•Net interest margin increased to 3.99%, an increase of 3 basis points from 3.96% for the first quarter of 2026.

•Cost of interest bearing deposits decreased to 1.67%, from 1.71% for the first quarter of 2026.

•Declared a regular cash dividend of $0.25 per share on July 22, 2026, an increase of 4.2% from the $0.24 regular cash dividend per share declared in the second quarter of 2026.

Olympia, WA - Heritage Financial Corporation (Nasdaq GS: HFWA) (the “Company," ”we," or "us"), the parent company of Heritage Bank (the "Bank"), today reported net income of $17.5 million for the second quarter of 2026, compared to $18.9 million for the first quarter of 2026 and $12.2 million for the second quarter of 2025. Diluted earnings per share was $0.42 for the second quarter of 2026, compared to $0.48 for the first quarter of 2026 and $0.36 for the second quarter of 2025. Adjusted diluted earnings per share(1) was $0.57 for the second quarter of 2026, compared to $0.59 for the first quarter of 2026 and $0.53 for the second quarter of 2025.

This is the first full quarter of financial results subsequent to the acquisition of Olympic Bancorp, Inc. (the "Merger") which closed on January 31, 2026. The Company recognized merger-related expenses of $7.5 million in the second quarter of 2026, compared to $5.2 million in the first quarter of 2026. After the systems conversion in the third quarter 2026, the Company will recognize additional cost savings.

Bryan McDonald, President and Chief Executive Officer of the Company, commented, "We are pleased with the continued improvement in our net interest margin and our strong credit quality metrics. Although loan growth was muted by higher prepayments in the second quarter, we saw strong loan origination and continue to maintain a solid loan pipeline. As our fixed rate loans reprice to higher yields, we expect that our net interest margin will continue to improve. The increase in net interest margin, as well as the expected cost savings from the acquisition, provides optimism for enhanced future earnings.”

(1) Represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” section for a reconciliation to the comparable GAAP financial measure.

Financial Highlights

The following table provides financial highlights as of the dates and for the periods indicated:


	As of or for the Quarter Ended
	June 30, 2026			March 31, 2026			June 30, 2025
	(Dollars in thousands, except per share amounts)
Net income	$	17,546		$	18,947		$	12,215
Diluted earnings per share	0.42			0.48			0.36
Adjusted diluted earnings per share(1)	0.57			0.59			0.53
Return on average assets(2)	0.83		%	0.97		%	0.70		%
Adjusted return on average assets(1)(2)	1.12		%	1.18		%	1.03		%
Return on average common equity(2)	6.33			7.32			5.57
Return on average tangible common equity(1)(2)	10.17			11.14			7.85
Adjusted return on average tangible common equity(1)(2)	13.29			13.36			11.59
Net interest margin(2)	3.99			3.96			3.51
Cost of total deposits(2)	1.21			1.25			1.40
Efficiency ratio	76.5			72.6			72.7
Adjusted efficiency ratio(1)	63.9			63.3			64.4
Noninterest expense to average total assets(2)	3.06			2.89			2.34
Adjusted noninterest expense to average total assets(1)(2)	2.56			2.52			2.32
Total assets	$	8,430,566		$	8,498,404		$	7,070,641
Loans receivable	5,747,741			5,722,238			4,774,855
Total deposits	7,038,706			7,248,537			5,784,413
Loan to deposit ratio(3)	81.7		%	78.9		%	82.5		%
Book value per share	$	27.13		$	27.05		$	26.16
Tangible book value per share(1)	19.15			19.07			18.99

(1) Represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” section for a reconciliation to the comparable GAAP financial measure.

(2) Annualized.

(3) Loans receivable divided by total deposits.

Investment Securities

Total investment securities decreased $36.1 million, or 2.2%, to $1.63 billion at June 30, 2026, from $1.67 billion at March 31, 2026. The Company sold $38.1 million of investment securities at a pre-tax loss of $217,000 during the quarter. In addition, there were investment maturities and repayments of $35.8 million and a $6.4 million increase in unrealized losses on available for sale securities during the second quarter of 2026. These decreases to carrying value were partially offset by investment security purchases of $44.0 million during the second quarter of 2026.

The following table summarizes the composition of the Company's investment securities portfolio at the dates indicated:


	June 30, 2026				March 31, 2026				Change
	Balance		% of Total		Balance		% of Total		$		%
	(Dollars in thousands)
Investment securities available for sale, at fair value:
U.S. government and agency securities	$	11,823	0.7	%	$	11,861	0.7	%	$	(38)	(0.3)	%
Municipal securities	64,390		3.9		63,972		3.8		418		0.7
Residential CMO and MBS(1)	496,178		30.4		497,228		29.8		(1,050)		(0.2)
Commercial CMO and MBS(1)	363,713		22.2		396,816		23.7		(33,103)		(8.3)
Corporate obligations	16,423		1.0		11,580		0.7		4,843		41.8
Other asset-backed securities	18,910		1.2		19,691		1.2		(781)		(4.0)
Total	$	971,437	59.4	%	$	1,001,148	59.9	%	$	(29,711)	(3.0)	%


	June 30, 2026				March 31, 2026				Change
	Balance		% of Total		Balance		% of Total		$		%
	(Dollars in thousands)
Investment securities held to maturity, at amortized cost:
U.S. government and agency securities	$	151,363	9.3	%	$	151,341	9.1	%	$	22	—	%

Residential CMO and MBS(1)	207,387		12.7		213,096		12.8		(5,709)		(2.7)
Commercial CMO and MBS(1)	303,089		18.6		303,826		18.2		(737)		(0.2)


Total	$	661,839	40.6	%	$	668,263	40.1	%	$	(6,424)	(1.0)	%

Total investment securities	$	1,633,276	100.0	%	$	1,669,411	100.0	%	$	(36,135)	(2.2)	%

(1) U.S. government agency and government-sponsored enterprise CMO and MBS.

Loans Receivable

Loans receivable increased $25.5 million, or 0.4%, during the second quarter of 2026. New loans funded during the second quarter of 2026 were $162.2 million, an increase from new loans funded during the first quarter of 2026 of $97.0 million and new loans funded during the second quarter of 2025 of $139.9 million. Loan prepayments were higher at $102.5 million during the second quarter of 2026, compared to $72.5 million during the first quarter of 2026. Loan payoffs were slightly higher at $49.9 million, compared to $46.5 million in the first quarter of 2026.

Commercial and industrial loans decreased $8.2 million, or 0.8%, during the second quarter of 2026, due primarily to pay downs on outstanding balances, partially offset by new loan production of $34.5 million. Owner-occupied commercial real estate ("CRE") loans increased $14.1 million, or 1.2%, during the second quarter, due primarily to new loan production of $41.8 million, offset by pay downs on outstanding balances. Non-owner occupied CRE loans increased $42.9 million, or 1.7%, during the quarter, due primarily to new loan production of $55.7 million, offset by pay downs on outstanding balances. Residential construction increased $13.2 million, or 10.7%, during the second quarter, due primarily to new loan production of $18.9 million, partially offset by pay downs on outstanding balances. Commercial and multifamily construction loans decreased $28.5 million or 9.9%, during the quarter, due primarily to pay downs on outstanding balances.

The following table summarizes the Company's loans receivable at the dates indicated:


	June 30, 2026				March 31, 2026				Change
	Balance		% of Total		Balance		% of Total		$		%
	(Dollars in thousands)
Commercial business:
Commercial and industrial	$	1,051,269	18.3	%	$	1,059,457	18.5	%	$	(8,188)	(0.8)	%
Owner-occupied CRE	1,227,674		21.4		1,213,585		21.2		14,089		1.2
Non-owner occupied CRE	2,509,283		43.6		2,466,417		43.1		42,866		1.7
Total commercial business	4,788,226		83.3		4,739,459		82.8		48,767		1.0
Residential real estate	348,838		6.1		361,384		6.3		(12,546)		(3.5)
Real estate construction and land development:
Residential	136,595		2.4		123,409		2.2		13,186		10.7
Commercial and multifamily	259,947		4.5		288,493		5.0		(28,546)		(9.9)
Total real estate construction and land development	396,542		6.9		411,902		7.2		(15,360)		(3.7)
Consumer	214,135		3.7		209,493		3.7		4,642		2.2
Loans receivable	$	5,747,741	100.0	%	$	5,722,238	100.0	%	$	25,503	0.4

Deposits

Total deposits decreased $209.8 million, or 2.9%, to $7.04 billion at June 30, 2026, from $7.25 billion at March 31, 2026.

Non-maturity deposits decreased by $138.4 million, or 2.3%, from March 31, 2026 due primarily to a decline in customer balances in noninterest bearing demand accounts as is typical in the second quarter of each year due to tax payments. Noninterest demand deposits declined mostly due a single deposit relationship which had approximately $67.0 million in funds which were deposited on a short-term basis in the first quarter of 2026 and withdrawn in the second quarter of 2026. Certificates of deposit declined $71.4 million during the second quarter of 2026 due mostly to the maturity of brokered certificates of deposit of $48.5 million.

The following table summarizes the Company's total deposits at the dates indicated:


	June 30, 2026				March 31, 2026				Change
	Balance		% of Total		Balance		% of Total		$		%
	(Dollars in thousands)
Noninterest demand deposits	$	1,972,702	28.0	%	$	2,066,383	28.5	%	$	(93,681)	(4.5)	%
Interest bearing demand deposits	1,854,634		26.3		1,860,679		25.7		(6,045)		(0.3)
Money market accounts	1,574,835		22.4		1,588,678		21.9		(13,843)		(0.9)
Savings accounts	581,259		8.3		606,119		8.4		(24,860)		(4.1)
Total non-maturity deposits	5,983,430		85.0		6,121,859		84.5		(138,429)		(2.3)
Certificates of deposit	1,055,276		15.0		1,126,678		15.5		(71,402)		(6.3)
Total deposits	$	7,038,706	100.0	%	$	7,248,537	100.0	%	$	(209,831)	(2.9)	%

Borrowings

Total borrowings increased $146.3 million to $166.3 million at June 30, 2026, compared to $20.0 million at March 31, 2026. All outstanding borrowings at June 30, 2026 were with the Federal Home Loan Bank ("FHLB") and mature in the third quarter of 2026.

Stockholders' Equity

Total stockholders' equity decreased $6.0 million, or 0.5%, to $1.11 billion at June 30, 2026, compared to $1.12 billion at March 31, 2026. This decrease was partially due to the repurchase of 372,343 shares of the Company's common stock, for an aggregate purchase price of $10.0 million, under the Company's current share repurchase plan.

The following table summarizes changes in stockholders' equity for the Company for the period indicated:


	Quarter Ended
	June 30, 2026
	(In thousands)
Balance, beginning of period	$	1,115,691

Net income	17,546
Cash dividends declared on common stock	(10,002)
Common stock repurchased	(10,112)
Other comprehensive loss	(5,000)
Other	1,569
Balance, end of period	$	1,109,692

The Company and Bank continued to maintain capital levels in excess of the applicable regulatory requirements to be categorized as “well-capitalized” at June 30, 2026.

The following table summarizes the capital ratios for the Company at the dates indicated:


	June 30, 2026	March 31, 2026
Stockholders' equity to total assets	13.2%	13.1%
Tangible common equity to tangible assets (1)	9.7	9.6
Common equity tier 1 capital ratio (2)	12.1	12.2
Leverage ratio (2)	10.4	10.3
Tier 1 capital ratio (2)	12.5	12.5
Total capital ratio (2)	13.4	13.5

(1) Represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” section for a reconciliation to the comparable GAAP financial measure.

(2) Current quarter ratios are estimates pending completion and filing of the Company’s regulatory reports.

Allowance for Credit Losses and Provision for Credit Losses

The allowance for credit losses ("ACL") on loans as a percentage of loans receivable was 1.03% at June 30, 2026, compared to 1.06% at March 31, 2026. The decrease in the ACL as a percentage of loans was due primarily to a decrease in the weighted average life of loans in the real estate construction and land development segment and an incremental change in the mix of loans from loans which have a higher ACL percentage to those which have a lower ACL percentage.

During the second quarter of 2026, the Company recorded a $844,000 reversal of provision for credit losses on loans, compared to an $820,000 reversal of provision during the first quarter of 2026. During the second quarter of 2026, the Company recorded a $77,000 reversal of provision for credit losses on unfunded commitments, compared to a $210,000 reversal of provision for credit losses on unfunded commitments during the first quarter of 2026.

The following table provides detail on the changes in the ACL on loans and the ACL on unfunded commitments ("ACL on Unfunded"), and the related (reversal of) provision for credit losses for the periods indicated:


	As of or for the Quarter Ended
	June 30, 2026						March 31, 2026						June 30, 2025
	ACL on Loans		ACL on Unfunded		Total		ACL on Loans		ACL on Unfunded		Total		ACL on Loans		ACL on Unfunded		Total
	(Dollars in thousands)
Balance, beginning of period	$	60,551	$	1,185	$	61,736	$	52,584	$	1,047	$	53,631	$	52,160	$	647	$	52,807
Initial ACL recorded for the Merger	—		—		$	—	9,339		348		$	9,687	—		—		$	—
(Reversal of) provision for credit losses	(844)		(77)		(921)		(820)		(210)		(1,030)		863		93		956
(Net charge-offs) / recoveries	(234)		—		(234)		(552)		—		(552)		(494)		—		(494)
Balance, end of period	$	59,473	$	1,108	$	60,581	$	60,551	$	1,185	$	61,736	$	52,529	$	740	$	53,269

Credit Quality

Classified loans (loans rated substandard or worse) decreased $15.9 million from the prior quarter due primarily to loan payoffs during the quarter. The percentage of classified loans to loans receivable decreased to 1.8% at June 30, 2026, compared to 2.1% at March 31, 2026.

The following table illustrates total loans by risk rating and their respective percentage of total loans at the dates indicated:


	June 30, 2026				March 31, 2026
	Balance		% of Total		Balance		% of Total
	(Dollars in thousands)
Risk Rating:
Pass	$	5,517,189	96.0	%	$	5,497,208	96.1	%
Special Mention	125,108		2.2		103,699		1.8
Substandard	105,444		1.8		121,331		2.1
Total	$	5,747,741	100.0	%	$	5,722,238	100.0	%

Nonaccrual loans were $15.5 million at June 30, 2026, compared to $15.0 million at March 31, 2026. Two commercial and industrial loan relationships totaling $5.0 million were migrated to nonaccrual during the second quarter of 2026, and both were paid off prior to the end of the quarter.

The following table illustrates changes in nonaccrual loans during the periods indicated:


	Quarter Ended
	June 30, 2026			March 31, 2026			June 30, 2025
	(Dollars in thousands)
Balance, beginning of period	$	14,958		$	20,976		$	4,438
Additions	5,988			3,388			7,922
Net principal payments	(280)			(261)			(2,041)
Payoffs	(5,156)			(7,800)			—
Charge-offs	—			(463)			(454)
Transfer to OREO	—			(741)			—
Return to accrual	—			(141)			—
Balance, end of period	$	15,510		$	14,958		$	9,865
Nonaccrual loans to loans receivable	0.27		%	0.26		%	0.21		%

Liquidity

Total liquidity sources available at June 30, 2026 totaled $3.27 billion. This included on- and off-balance sheet liquidity. The Company has access to FHLB advances and the Federal Reserve Bank ("FRB") Discount Window. The Company's available liquidity sources at June 30, 2026 represented a coverage ratio of 46.5% of total deposits and 118.9% of estimated uninsured deposits.

The following table summarizes the Company's available liquidity as of the dates indicated:


	Quarter Ended
	June 30, 2026		March 31, 2026
	(Dollars in thousands)
On-balance sheet liquidity
Cash and cash equivalents	$	204,375	$	268,143
Unencumbered investment securities available for sale (1)	949,021		978,332
Total on-balance sheet liquidity	$	1,153,396	$	1,246,475
Off-balance sheet liquidity
FRB borrowing availability	$	339,029	$	341,449
FHLB borrowing availability (2)	1,635,593		1,469,277
Fed funds line borrowing availability with correspondent banks	145,000		145,000
Total off-balance sheet liquidity	$	2,119,622	$	1,955,726
Total available liquidity	$	3,273,018	$	3,202,201

(1) Investment securities available for sale at fair value.

(2) Includes FHLB total borrowing availability of $1.80 billion at June 30, 2026 based on pledged assets, however, maximum credit capacity was 45% of the Bank's total assets one quarter in arrears or $3.82 billion.

Net Interest Income and Net Interest Margin

Net interest income increased $5.6 million, or 8.1%, during the second quarter of 2026 compared to the first quarter of 2026 due to a $7.0 million increase in total interest income, offset partially by an increase in interest expense of $1.4 million. The increase in net interest income was primarily due to one additional month of income attributable to the assets and liabilities obtained in the Merger which was completed on January 31, 2026.

Net interest margin increased three basis points to 3.99% during the second quarter of 2026, from 3.96% during the first quarter of 2026. The increase in net interest margin was due primarily to the increase in yield on investments and decreases in the cost of interest bearing deposits.

The yield on interest earning assets increased two basis points to 5.21% for the second quarter of 2026, compared to 5.19% for the first quarter of 2026. The increase was primarily due to an increase in yield on investments of 12 basis points to 3.55% for the second quarter of 2026, compared to 3.43% for the first quarter of 2026.

The yield on loans receivable decreased one basis point to 5.72% during the second quarter of 2026, compared to 5.73% during the first quarter of 2026. The decrease was due primarily to recovery of interest income on nonaccrual loans recognized in the first quarter of 2026 which contributed six basis points to loan yield for the first quarter of 2026 and had no impact in the second quarter of 2026. Loan yield also benefited from the incremental accretion on purchased loans in both the first and second quarter of 2026.

The following table presents the net interest margin and loan yield and the effect of the incremental accretion on purchased loans on these ratios for the periods indicated:


	Quarter Ended
	June 30, 2026			March 31, 2026			June 30, 2025
Net Interest Margin, excluding incremental accretion on purchased loans, annualized:
Net interest margin	3.99		%	3.96		%	3.51		%
Exclude impact from incremental accretion on purchased loans(2)	(0.09)		%	(0.09)		%	(0.01)		%
Net interest margin, excluding incremental accretion on purchased loans(1)	3.90		%	3.87		%	3.50		%

Loan yield, excluding incremental accretion on purchased loans, annualized:
Loan yield	5.72		%	5.73		%	5.50		%
Exclude impact from incremental accretion on purchased loans(2)	(0.12)			(0.12)			(0.01)
Loan yield, excluding incremental accretion on purchased loans(1)	5.60		%	5.61		%	5.49		%

Incremental accretion on purchased loans(1)	$	1,772		$	1,623		$	76

(1) Represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” section for a reconciliation to the comparable GAAP financial measure.

(2)Represents the amount of interest income recorded on purchased loans in excess of the contractual stated interest rate in the individual loan notes due to incremental accretion of purchased discount or premium. Purchased discount or premium is the difference between the contractual loan balance and the fair value of acquired loans at the acquisition date. The purchased discount is accreted into income over the remaining life of the loan. The impact of incremental accretion on loan yield will change during any period based on the volume of prepayments, but it is expected to decrease over time as the balance of the purchased loans decreases.

The cost of interest bearing deposits decreased four basis points to 1.67% for the second quarter of 2026, from 1.71% for the first quarter of 2026. This decrease was primarily due to one additional month of interest expense on deposits acquired from Olympic, which had a lower cost of deposits.

Net interest margin increased 48 basis points to 3.99% during the second quarter of 2026, compared to 3.51% for the same period in the prior year. Net interest income increased $19.8 million, or 36.1%, during the second quarter of 2026 compared to the same period in the prior year, due to a combination of an increase in average interest earning assets, which increased substantially as a result of the Merger, and an increase in net interest margin.

The following table provides net interest income information for the periods indicated:


	Quarter Ended
	June 30, 2026						March 31, 2026						June 30, 2025
	Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)		Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)		Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)
	(Dollars in thousands)
Interest Earning Assets:
Loans receivable (2)(3)	$	5,740,927	$	81,935	5.72	%	$	5,412,943	$	76,445	5.73	%	$	4,768,558	$	65,373	5.50	%
Taxable securities	1,635,979		14,464		3.55		1,486,343		12,570		3.43		1,374,770		11,579		3.38
Nontaxable securities (3)	15,439		128		3.33		15,662		129		3.34		15,294		137		3.59
Interest earning deposits	124,969		1,147		3.68		172,723		1,531		3.59		127,687		1,411		4.43
Total interest earning assets	7,517,314		97,674		5.21	%	7,087,671		90,675		5.19	%	6,286,309		78,500		5.01	%
Noninterest earning assets	920,006						847,331						760,634
Total assets	$	8,437,320					$	7,935,002					$	7,046,943
Interest Bearing Liabilities:
Certificates of deposit	$	1,090,406	$	8,817	3.24	%	$	1,064,676	$	8,814	3.36	%	$	979,997	$	9,349	3.83	%
Savings accounts	591,458		348		0.24		540,403		315		0.24		425,703		288		0.27


	Quarter Ended
	June 30, 2026						March 31, 2026						June 30, 2025
	Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)		Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)		Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)
	(Dollars in thousands)
Interest bearing demand and money market accounts	3,444,901		12,226		1.42		3,303,007		11,618		1.43		2,770,352		10,513		1.52
Total interest bearing deposits	5,126,765		21,391		1.67		4,908,086		20,747		1.71		4,176,052		20,150		1.94
Junior subordinated debentures	22,455		431		7.70		22,382		430		7.79		22,165		472		8.54

Borrowings	105,131		1,036		3.95		27,111		279		4.17		245,663		2,895		4.73
Total interest bearing liabilities	5,254,351		22,858		1.74	%	4,957,579		21,456		1.76	%	4,443,880		23,517		2.12	%
Noninterest demand deposits	1,973,038						1,833,284						1,602,987
Other noninterest bearing liabilities	97,753						95,095						120,268
Stockholders’ equity	1,112,178						1,049,044						879,808
Total liabilities and stockholders’ equity	$	8,437,320					$	7,935,002					$	7,046,943
Net interest income and spread			$	74,816	3.47	%			$	69,219	3.43	%			$	54,983	2.89	%
Net interest margin					3.99	%					3.96	%					3.51	%

(1) Annualized; average balances are calculated using daily balances.

(2) Average loans receivable includes loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable includes the amortization of net deferred loan fees of $1.1 million, $0.8 million and $0.9 million for the second quarter of 2026, first quarter of 2026 and second quarter of 2025, respectively, and the incremental accretion on purchased loans of $1.8 million, $1.6 million, and $76,000 for the second quarter of 2026, first quarter of 2026 and second quarter of 2025, respectively.

(3) Yields on tax-exempt loans and securities have not been stated on a tax-equivalent basis.

Noninterest Income

Noninterest income increased $612,000 to $9.3 million during the second quarter of 2026 from $8.7 million during the first quarter of 2026. The increase was due primarily to increases in service charges and other fees, card revenue and BOLI income due to an additional month of income from the deposit portfolio and bank owned life insurance ("BOLI") acquired from Olympic.

Noninterest income increased $7.8 million during the second quarter of 2026 from the same period in 2025 due primarily to a $6.9 million loss recognized in the second quarter of 2025 resulting from the sale of investment securities as part of the strategic repositioning of the Company's balance sheet, and due to increases in service charges and other fees, card revenue, and BOLI income due to income from the deposit portfolio and BOLI acquired from Olympic.

The following table presents the key components of noninterest income and the change for the periods indicated:


	Quarter Ended						Quarter Over Quarter Change				Prior Year Quarter Change
	June 30, 2026		March 31, 2026		June 30, 2025		$		%		$		%
	(Dollars in thousands)
Service charges and other fees	$	3,592	$	3,367	$	2,932	$	225	6.7	%	$	660	22.5	%
Card revenue	2,595		2,103		2,008		492		23.4		587		29.2
Loss on sale of investment securities	(217)		—		(6,854)		(217)		—		6,637		96.8

Interest rate swap fees	3		—		19		3		—		(16)		(84.2)
BOLI income	1,485		1,119		1,280		366		32.7		205		16.0
Gain on sale of other assets, net	—		—		5		—		—		(5)		(100.0)
Other income	1,853		2,110		2,127		(257)		(12.2)		(274)		(12.9)
Total noninterest income (loss)	$	9,311	$	8,699	$	1,517	$	612	7.0	%	$	7,794	513.8	%

Noninterest Expense

Noninterest expense increased $7.8 million, or 13.7%, to $64.3 million during the second quarter of 2026, compared to $56.6 million in the first quarter of 2026. The increase was primarily due to one additional month of expense related to the Merger, including increases related to compensation and employee benefits from increased headcount, occupancy and equipment expense primarily due to additional rent expense, and additional data processing expense due to an increase in transactional accounts and balances.

Merger related expenses, which consisted of severance expense, professional fees, core conversion costs, and contract termination costs incurred in the second quarter of 2026 were $7.5 million compared to $5.2 million in the first quarter of 2026.

The following table presents merger related expenses included in noninterest expense and the change for the periods indicated:


	Quarter Ended				Change
	June 30, 2026		March 31, 2026		$
	(Dollars in thousands)
Compensation and employee benefits	$	1,481	$	2,733	$	(1,252)

Data processing	4,924		491		4,433

Professional services	128		1,868		(1,740)




Other expense	960		86		874
Total noninterest expense	$	7,493	$	5,178	$	2,315

Noninterest expense also increased due to the increase in the amortization of intangible assets of $0.9 million, as a result of one additional month of amortization related to the acquisition of Olympic.

Noninterest expense increased $23.2 million, or 56.6%, during the second quarter of 2026 compared to the same period in 2025 due primarily to an increase in expenses related to the Merger and the addition of Olympic operations.

The following table presents the key components of noninterest expense and the change for the periods indicated:


	Quarter Ended						Quarter Over Quarter Change				Prior Year Quarter Change
	June 30, 2026		March 31, 2026		June 30, 2025		$		%		$		%
	(Dollars in thousands)
Compensation and employee benefits	$	35,769	$	33,972	$	25,467	$	1,797	5.3	%	$	10,302	40.5	%
Occupancy and equipment	6,014		5,330		4,840		684		12.8		1,174		24.3
Data processing	10,218		5,093		3,666		5,125		100.6		6,552		178.7
Marketing	437		383		336		54		14.1		101		30.1
Professional services	939		2,842		1,122		(1,903)		(67.0)		(183)		(16.3)
State/municipal business and use taxes	1,801		1,674		1,205		127		7.6		596		49.5
Federal deposit insurance premium	881		1,037		810		(156)		(15.0)		71		8.8
Other real estate owned, net	44		4		—		40		1000.0		44		—
Amortization of intangible assets	2,957		2,058		302		899		43.7		2,655		879.1
Other expense	5,264		4,158		3,337		1,106		26.6		1,927		57.7
Total noninterest expense	$	64,324	$	56,551	$	41,085	$	7,773	13.7	%	$	23,239	56.6	%

Income Tax Expense

Income tax expense decreased $272,000 in the second quarter of 2026, compared to the first quarter of 2026 due to lower pre-tax income during the second quarter of 2026.

Income tax expense increased $934,000 in the second quarter of 2026, compared to the same period in 2025 due primarily to higher pre-tax income during the second quarter of 2026.

The following table presents the income tax expense and related metrics and the change for the periods indicated:


	Quarter Ended									Change
	June 30, 2026			March 31, 2026			June 30, 2025			Quarter Over Quarter			Prior Year Quarter
	(Dollars in thousands)
Income before income taxes	$	20,724		$	22,397		$	14,459		$	(1,673)		$	6,265
Income tax expense	$	3,178		$	3,450		$	2,244		$	(272)		$	934
Effective income tax rate	15.3		%	15.4		%	15.5		%	(0.1)		%	(0.2)		%

Dividends

On July 22, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable on August 19, 2026 to shareholders of record as of the close of business on August 5, 2026.

Earnings Conference Call

The Company will hold a telephone conference call to discuss second quarter of 2026 earnings on Thursday, July 23, 2026 at 9:00 a.m. Pacific time. Participants may register for the call at the following link: https://registrations.events/direct/Q4I5378922. To access the call via telephone, please dial (888) 500-3691 -- access code 53789 a few minutes prior to 9:00 a.m. Pacific time. The conference call will be recorded and will be available for replay through August 6, 2026 at the following link: https://registrations.events/direct/Q4I5378922

About Heritage Financial Corporation

Heritage Financial Corporation (the “Company”) is an Olympia, Washington-based bank holding company for Heritage Bank, a full-service commercial bank and its sole wholly-owned banking subsidiary. Heritage Bank has a network of branches and loan production offices in Washington, Oregon and Idaho. Heritage Bank does business under the Whidbey Island Bank name on Whidbey Island, Washington and the Kitsap Bank name at certain branches acquired through the acquisition of Olympic Bancorp, Inc. The Company's stock is traded on the Nasdaq Global Select Market under the symbol “HFWA.” More information about the Company can be found on its website at www.hf-wa.com and more information about Heritage Bank can be found on its website at www.heritagebanknw.com.

Contact

Bryan McDonald, President and Chief Executive Officer, (360) 943-1500

Don Hinson, Executive Vice President and Chief Financial Officer, (360) 943-1500

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believes," "expects," "anticipates," "estimates," “forecasts,” "intends," “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” "will," “should,” "would," and "could," as well as the negative of such words. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include, but are not limited to, the following: potential adverse impacts to economic conditions nationally or in our local market areas, other markets where we have lending relationships, or other aspects of our business operations or financial markets, including, without limitation, as a result of credit quality deterioration, pronounced and sustained reductions in real estate market values, employment levels, labor shortages and a potential recession or slowed economic growth; changes in the interest rate environment, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the level and impact of inflation and the current and future monetary policies of the Board of Governors of the Federal Reserve System and executive orders in response thereto; previous and potential future disruptions, security breaches, insider fraud, cybersecurity incidents or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform critical processing functions for our business, including sophisticated attacks using artificial intelligence and similar tools; legislative or regulatory changes that adversely affect our business, including changes in banking, securities, and tax laws, in regulatory policies and principles, or the interpretation and prioritization of such rules and regulations; effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement and changes in foreign policy; the effects of acts of war or terrorism, foreign relations, military conflicts, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; effects of other external events on our business and the businesses of our clients; credit and interest rate risks associated with our business, including our customers’ borrowing, repayment, and deposit practices; fluctuations in deposits and the concentration of large deposits from certain customers, who have deposit balances above current FDIC insurance limits; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; fluctuations in the value of our investment securities; credit risks and risks from concentrations (including by type of geographic area, collateral and industry) within our loan portfolio; the effectiveness of our risk management framework; rapid technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; increased competition in the financial services industry from non-banks such as credit unions and financial technology companies, including digital asset service providers; our ability to adapt successfully to technological changes to compete effectively in the marketplace, including as a result of competition from other commercial banks, mortgage banking firms, credit unions, securities brokerage firms, insurance companies, and financial technology companies; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; our ability to implement our organic and acquisition growth strategies, including the recent acquisition of Olympic, and our ability to successfully integrate Olympic's customers and operations following the acquisition; effects of critical accounting policies and judgments, including the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; the commencement, costs, effects and outcome of litigation and other legal proceedings and regulatory actions against us or to which we may become subject, including in connection with prior

acquisitions; potential impairment to the goodwill we recorded in connection with our past acquisitions, including as a result of the recent acquisition of Olympic; loss of, or inability to attract, key personnel; our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire, including as a result of the recent acquisition of Olympic, into our operations and our ability to realize related revenue synergies and cost savings within expected time frames or at all, and any goodwill charges related thereto and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, which might be greater than expected; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises; the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; the extensive regulatory framework that applies to us; the overall health of local and national real estate markets; the level of nonperforming assets on our balance sheet; risks related to acquiring assets in or entering markets in which we have not previously operated and may not be familiar; changes in consumer spending, borrowing and saving habits; the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; our success at managing and responding to the risks involved in the foregoing items; and other factors described in our latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”) which are available on our website at www.hf-wa.com and on the SEC's website at www.sec.gov. We caution readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that we make in this press release or the documents we file with or furnish to the SEC are based only on information then actually known to us and upon management's beliefs and assumptions at the time they are made which may turn out to be wrong because of inaccurate assumptions we might make, because of the factors described above or because of other factors that we cannot foresee. Forward-looking statements speak only as of the date they are made, and we do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollars in thousands, except shares)


	June 30, 2026		March 31, 2026		December 31, 2025
Assets
Cash on hand and in banks	$	102,555	$	98,263	$	52,587
Interest earning deposits	101,820		169,880		180,502
Cash and cash equivalents	204,375		268,143		233,089
Investment securities available for sale, at fair value (amortized cost of $1,020,125, $1,043,442 and $647,505, respectively)	971,437		1,001,148		607,522
Investment securities held to maturity, at amortized cost (fair value of $607,782, $617,490 and $625,287, respectively)	661,839		668,263		674,107
Total investment securities	1,633,276		1,669,411		1,281,629

Loans receivable	5,747,741		5,722,238		4,783,266
Allowance for credit losses on loans	(59,473)		(60,551)		(52,584)
Loans receivable, net	5,688,268		5,661,687		4,730,682
Other real estate owned	755		755		—
Premises and equipment, net	98,034		100,509		74,690
Federal Home Loan Bank stock, at cost	12,653		6,072		5,163
BOLI	146,350		144,865		105,974
Accrued interest receivable	23,056		24,278		19,280
Prepaid expenses and other assets	297,501		293,429		273,925
Other intangible assets, net	47,269		50,226		1,979
Goodwill	279,029		279,029		240,939
Total assets	$	8,430,566	$	8,498,404	$	6,967,350

Liabilities and Stockholders' Equity
Non-interest bearing deposits	$	1,972,702	$	2,066,383	$	1,597,650
Interest bearing deposits	5,066,004		5,182,154		4,322,549
Total deposits	7,038,706		7,248,537		5,920,199
Borrowings	166,250		20,000		20,000
Junior subordinated debentures	22,497		22,424		22,350

Accrued expenses and other liabilities	93,421		91,752		83,297
Total liabilities	7,320,874		7,382,713		6,045,846

Common stock	707,889		716,432		531,100
Retained earnings	439,799		432,255		421,619
Accumulated other comprehensive loss, net	(37,996)		(32,996)		(31,215)
Total stockholders' equity	1,109,692		1,115,691		921,504
Total liabilities and stockholders' equity	$	8,430,566	$	8,498,404	$	6,967,350

Shares outstanding	40,906,122		41,249,873		33,963,500

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share amounts)


	Quarter Ended						Six Months Ended
	June 30, 2026		March 31, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Interest Income
Interest and fees on loans	$	81,935	$	76,445	$	65,373	$	158,380	$	129,809
Taxable interest on investment securities	14,464		12,570		11,579		27,034		23,318
Nontaxable interest on investment securities	128		129		137		257		276
Interest on interest earning deposits	1,147		1,531		1,411		2,678		2,463
Total interest income	97,674		90,675		78,500		188,349		155,866
Interest Expense
Deposits	21,391		20,747		20,150		42,138		39,639
Junior subordinated debentures	431		430		472		861		943

Borrowings	1,036		279		2,895		1,315		6,611
Total interest expense	22,858		21,456		23,517		44,314		47,193
Net interest income	74,816		69,219		54,983		144,035		108,673
(Reversal of) provision for credit losses	(921)		(1,030)		956		(1,951)		1,007
Net interest income after (reversal of) provision for credit losses	75,737		70,249		54,027		145,986		107,666
Noninterest Income
Service charges and other fees	3,592		3,367		2,932		6,959		5,907
Card revenue	2,595		2,103		2,008		4,698		3,741
Loss on sale of investment securities, net	(217)		—		(6,854)		(217)		(10,741)

Interest rate swap fees	3		—		19		3		19
BOLI income	1,485		1,119		1,280		2,604		2,198
Gain on sale of other assets, net	—		—		5		—		8
Other income	1,853		2,110		2,127		3,963		4,288
Total noninterest income (loss)	9,311		8,699		1,517		18,010		5,420
Noninterest Expense
Compensation and employee benefits	35,769		33,972		25,467		69,741		51,266
Occupancy and equipment	6,014		5,330		4,840		11,344		9,766
Data processing	10,218		5,093		3,666		15,311		7,563
Marketing	437		383		336		820		671
Professional services	939		2,842		1,122		3,781		1,856
State/municipal business and use taxes	1,801		1,674		1,205		3,475		2,425
Federal deposit insurance premium	881		1,037		810		1,918		1,622
Other real estate owned, net	44		4		—		48		—
Amortization of intangible assets	2,957		2,058		302		5,015		605
Other expense	5,264		4,158		3,337		9,422		6,694
Total noninterest expense	64,324		56,551		41,085		120,875		82,468
Income before income taxes	20,724		22,397		14,459		43,121		30,618
Income tax expense	3,178		3,450		2,244		6,628		4,492
Net income	$	17,546	$	18,947	$	12,215	$	36,493	$	26,126

Basic earnings per share	$	0.42	$	0.49	$	0.36	$	0.91	$	0.77
Diluted earnings per share	$	0.42	$	0.48	$	0.36	$	0.90	$	0.76
Dividends declared per share	$	0.24	$	0.24	$	0.24	$	0.48	$	0.48
Average shares outstanding - basic	41,079,781		38,683,375		34,028,592		39,888,198		34,037,067
Average shares outstanding - diluted	41,541,763		39,104,569		34,446,710		40,364,364		34,512,260

HERITAGE FINANCIAL CORPORATION

FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands)

Average Balances, Yields, and Rates Paid:


	Six Months Ended June 30,
	2026						2025
	Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)		Average Balance		Interest Earned/ Paid		Average Yield/ Rate (1)
Interest Earning Assets:
Loans receivable(2)(3)	$	5,577,841	$	158,380	5.73	%	$	4,781,167	$	129,809	5.48	%
Taxable securities	1,561,574		27,034		3.49		1,401,226		23,318		3.36
Nontaxable securities(3)	15,550		257		3.33		15,489		276		3.59
Interest earning deposits	148,715		2,678		3.63		111,990		2,463		4.44
Total interest earning assets	7,303,680		188,349		5.20	%	6,309,872		155,866		4.98	%
Noninterest earning assets	883,869						765,058
Total assets	$	8,187,549					$	7,074,930
Interest Bearing Liabilities:
Certificates of deposit	$	1,077,612	$	17,631	3.30	%	$	980,166	$	19,019	3.91	%
Savings accounts	566,072		663		0.24		426,010		581		0.28
Interest bearing demand and money market accounts	3,374,345		23,844		1.42		2,738,197		20,039		1.48
Total interest bearing deposits	5,018,029		42,138		1.69		4,144,373		39,639		1.93
Junior subordinated debentures	22,419		861		7.74		22,126		943		8.59

Borrowings	66,337		1,315		4.00		282,768		6,611		4.71
Total interest bearing liabilities	5,106,785		44,314		1.75	%	4,449,267		47,193		2.14	%
Noninterest demand deposits	1,903,547						1,617,050
Other noninterest bearing liabilities	96,432						135,358
Stockholders’ equity	1,080,785						873,255
Total liabilities and stockholders’ equity	$	8,187,549					$	7,074,930
Net interest income and spread			$	144,035	3.45	%			$	108,673	2.84	%
Net interest margin					3.98	%					3.47	%

(1) Annualized; average balances are calculated using daily balances.

(2) Average loans receivable includes loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable includes the amortization of net deferred loan fees of $1.9 million and $1.7 million for the six months ended June 30, 2026 and 2025, respectively, and incremental accretion on purchased loans of $3.4 million and $229,000, for the six months ended June 30, 2026 and 2025, respectively.

(3) Yields on tax-exempt loans and securities have not been stated on a tax-equivalent basis.

HERITAGE FINANCIAL CORPORATION

FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands)

Nonperforming Assets and Credit Quality Metrics:


	Quarter Ended									Six Months Ended
	June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025
Allowance for Credit Losses on Loans:
Balance, beginning of period	$	60,551		$	52,584		$	52,160		$	52,584		$	52,468
Initial ACL recorded for PSL and PCD loans acquired during the period	—			9,339			—			9,339			—
(Reversal of) provision for credit losses on loans	(844)			(820)			863			(1,664)			854
Charge-offs:
Commercial business	(180)			(400)			(454)			(580)			(676)
Residential real estate	—			(64)			—			(64)			—

Consumer	(89)			(119)			(104)			(208)			(258)
Total charge-offs	(269)			(583)			(558)			(852)			(934)
Recoveries:
Commercial business	4			4			18			8			44
Residential real estate	2			—			—			2			—

Consumer	29			27			46			56			97
Total recoveries	35			31			64			66			141
Net (charge-offs) recoveries	(234)			(552)			(494)			(786)			(793)
Balance, end of period	$	59,473		$	60,551		$	52,529		$	59,473		$	52,529
Net charge-offs on loans to average loans receivable annualized	0.02		%	0.04		%	0.04		%	0.03		%	0.03		%


	June 30, 2026			March 31, 2026			December 31, 2025
Nonperforming Assets:
Nonaccrual loans:
Commercial business	$	7,437		$	7,454		$	6,886
Residential real estate	1,338			583			1,196
Real estate construction and land development	6,420			6,514			12,408
Consumer	315			407			486
Total nonaccrual loans	15,510			14,958			20,976
Accruing loans past due 90 days or more	—			67			194
Total nonperforming loans	15,510			15,025			21,170
Other real estate owned	755			755			—
Nonperforming assets	$	16,265		$	15,780		$	21,170

ACL on loans to:
Loans receivable	1.03		%	1.06		%	1.10		%
Nonaccrual loans	383.45		%	404.81		%	250.69		%
Nonaccrual loans to loans receivable	0.27		%	0.26		%	0.44		%
Nonperforming loans to loans receivable	0.27		%	0.26		%	0.44		%
Nonperforming assets to total assets	0.19		%	0.19		%	0.30		%

HERITAGE FINANCIAL CORPORATION

QUARTERLY FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands, except per share amounts)


	Quarter Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Earnings:
Net interest income	$	74,816		$	69,219		$	58,361		$	57,371		$	54,983
(Reversal of) provision for credit losses	(921)			(1,030)			(814)			1,775			956
Noninterest income	9,311			8,699			7,987			8,325			1,517
Noninterest expense	64,324			56,551			41,483			41,615			41,085
Net income	17,546			18,947			22,237			19,169			12,215
Basic earnings per share	$	0.42		$	0.49		$	0.66		$	0.56		$	0.36
Diluted earnings per share	$	0.42		$	0.48		$	0.65		$	0.55		$	0.36
Adjusted diluted earnings per share (1)	$	0.57		$	0.59		$	0.66		$	0.56		$	0.53
Average Balances:
Loans receivable	$	5,740,927		$	5,412,943		$	4,770,300		$	4,762,648		$	4,768,558
Total investment securities	1,651,418			1,502,005			1,301,526			1,329,616			1,390,064
Total interest earning assets	7,517,314			7,087,671			6,223,303			6,258,446			6,286,309
Total assets	8,437,320			7,935,002			6,954,110			7,006,140			7,046,943
Total interest bearing deposits	5,126,765			4,908,086			4,250,589			4,217,041			4,176,052
Total noninterest demand deposits	1,973,038			1,833,284			1,635,539			1,625,945			1,602,987
Stockholders' equity	1,112,178			1,049,044			911,454			892,280			879,808
Financial Ratios:
Return on average assets (2)	0.83		%	0.97		%	1.27		%	1.09		%	0.70		%
Adjusted return on average assets (1)(2)	1.12		%	1.18		%	1.29		%	1.11		%	1.03		%
Return on average common equity (2)	6.33			7.32			9.68			8.52			5.57
Return on average tangible common equity (1)(2)	10.17			11.14			13.33			11.86			7.85
Adjusted return on average tangible common equity (1)(2)	13.29			13.36			13.51			12.16			11.59
Efficiency ratio	76.5			72.6			62.5			63.3			72.7
Adjusted efficiency ratio (1)	63.9			63.3			61.5			61.9			64.4
Noninterest expense to average total assets (2)	3.06			2.89			2.37			2.36			2.34
Adjusted noninterest expense to average total assets(1)(2)	2.56			2.52			2.33			2.30			2.32
Net interest spread (2)	3.47			3.43			3.15			3.03			2.89
Net interest margin (2)	3.99			3.96			3.72			3.64			3.51

(1) Represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” section for a reconciliation to the comparable GAAP financial measure.

(2) Annualized.

HERITAGE FINANCIAL CORPORATION

QUARTERLY FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands, except per share amounts)


	As of or for the Quarter Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Select Balance Sheet:
Total assets	$	8,430,566		$	8,498,404		$	6,967,350		$	7,011,879		$	7,070,641
Loans receivable	5,747,741			5,722,238			4,783,266			4,769,160			4,774,855
Total investment securities	1,633,276			1,669,411			1,281,629			1,312,857			1,346,274
Total deposits	7,038,706			7,248,537			5,920,199			5,857,464			5,784,413
Noninterest demand deposits	1,972,702			2,066,383			1,597,650			1,617,909			1,584,231
Stockholders' equity	1,109,692			1,115,691			921,504			904,064			888,212
Financial Measures:
Book value per share	$	27.13		$	27.05		$	27.13		$	26.62		$	26.16
Tangible book value per share (1)	19.15			19.07			19.98			19.46			18.99
Stockholders' equity to total assets	13.2		%	13.1		%	13.2		%	12.9		%	12.6		%
Tangible common equity to tangible assets (1)	9.7			9.6			10.1			9.8			9.4
Loans to deposits ratio	81.7			78.9			80.8			81.4			82.5
Regulatory Capital Ratios:(2)
Common equity tier 1 capital ratio	12.1		%	12.2		%	12.7		%	12.4		%	12.2		%
Leverage ratio	10.4			10.3			10.8			10.5			10.3
Tier 1 capital ratio	12.5			12.5			13.1			12.8			12.6
Total capital ratio	13.4			13.5			14.1			13.8			13.6
Credit Quality Metrics:
ACL on loans to:
Loans receivable	1.03		%	1.06		%	1.10		%	1.13		%	1.10		%
Nonaccrual loans	383.4			404.8			250.7			306.5			532.5
Nonaccrual loans to loans receivable	0.27			0.26			0.44			0.37			0.21
Nonperforming loans to loans receivable	0.27			0.26			0.44			0.44			0.39
Nonperforming assets to total assets	0.19			0.19			0.30			0.30			0.26
Net charge-offs on loans to average loans receivable (3)	0.02			0.04			0.04			0.01			0.04
Criticized Loans by Credit Quality Rating:
Special mention	$	125,108		$	103,699		$	71,122		$	100,160		$	114,146
Substandard	105,444			121,331			116,823			94,377			99,715
Other Metrics:
Number of branches	66			65			50			50			50
Deposits per branch	$	106,647		$	111,516		$	118,404		$	117,149		$	115,688
Average number of full-time equivalent employees	976			905			742			749			745
Average assets per full-time equivalent employee	8,645			8,768			9,372			9,354			9,459

(1) See Non-GAAP Financial Measures section herein.

(2) Current quarter ratios are estimates pending completion and filing of the Company’s regulatory reports.

(3) Annualized.

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

This earnings release contains certain financial measures not presented in accordance with U.S. Generally Accepted Accounting Principles ("GAAP") in addition to financial measures presented in accordance with GAAP. The Company has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company’s capital, performance and asset quality reflected in the current quarter and comparable period results and to facilitate comparison of its performance with the performance of its peers. These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial measures presented in accordance with GAAP. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of the non-GAAP financial measures used in this earnings release to the comparable GAAP financial measures are presented below.

The Company believes that presenting the adjusted diluted earnings per share provides useful and comparative information to assess trends in the Company's core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers.


	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Diluted Earnings per Share and Adjusted Diluted Earnings per Share:
Net income (GAAP)	$	17,546	$	18,947	$	22,237	$	19,169	$	12,215
Exclude loss on sale of investment securities, net	217		—		—		—		6,854

Exclude merger related costs	7,493		5,178		385		635		—
Exclude gain on sale of premises and equipment	—		—		—		—		(5)
Exclude tax effect of adjustment	(1,619)		(1,087)		(81)		(133)		(1,438)

Exclude tax expense related to BOLI restructuring	—		—		—		—		515
Adjusted net income (non-GAAP)	$	23,637	$	23,038	$	22,541	$	19,671	$	18,141

Average number of diluted shares outstanding	41,541,763		39,104,569		34,405,793		34,413,386		34,446,710

Diluted earnings per share (GAAP)	$	0.42	$	0.48	$	0.65	$	0.55	$	0.36
Adjusted diluted earnings per share (non-GAAP)	$	0.57	$	0.59	$	0.66	$	0.56	$	0.53

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

The Company believes that presenting an adjusted return on average assets ratio provides useful and comparative information to assess trends in the Company's core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers.


	June 30, 2026		March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025
Adjusted Return on Average Assets ("ROAA"):
Net income (GAAP)	$	17,546	$	18,947	$	22,237	$	19,169	$	12,215
Exclude (gain) loss on sale of investment securities, net	217		—		—		—		6,854

Exclude merger related costs	7,493		5,178		385		635		—
Exclude gain on sale of premise and equipment	—		—		—		—		(5)
Exclude tax effect of adjustments	(1,619)		(1,087)		(81)		(133)		(1,438)

Exclude tax expense related to BOLI restructuring	—		—		—		—		515
Adjusted net income (non-GAAP)	$	23,637	$	23,038	$	22,541	$	19,671	$	18,141

Average ("Avg") total assets	$	8,437,320	$	7,935,002	$	6,954,110	$	7,006,140	$	7,046,943

ROAA, annualized (GAAP)	0.83%		0.97%		1.27%		1.09%		0.70%
Adjusted ROAA, annualized (non-GAAP)	1.12%		1.18%		1.29%		1.11%		1.03%

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

The Company considers the tangible common equity to tangible assets ratio and tangible book value per share to be useful measurements of the adequacy of the Company’s capital levels.


	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share:
Total stockholders' equity (GAAP)	$	1,109,692		$	1,115,691		$	921,504		$	904,064		$	888,212
Exclude intangible assets	(326,298)			(329,255)			(242,918)			(243,203)			(243,487)
Tangible common equity (non-GAAP)	$	783,394		$	786,436		$	678,586		$	660,861		$	644,725

Total assets (GAAP)	$	8,430,566		$	8,498,404		$	6,967,350		$	7,011,879		$	7,070,641
Exclude intangible assets	(326,298)			(329,255)			(242,918)			(243,203)			(243,487)
Tangible assets (non-GAAP)	$	8,104,268		$	8,169,149		$	6,724,432		$	6,768,676		$	6,827,154

Stockholders' equity to total assets (GAAP)	13.2		%	13.1		%	13.2		%	12.9		%	12.6		%
Tangible common equity to tangible assets (non-GAAP)	9.7		%	9.6		%	10.1		%	9.8		%	9.4		%

Shares outstanding	40,906,122			41,249,873			33,963,500			33,956,738			33,953,194

Book value per share (GAAP)	$	27.13		$	27.05		$	27.13		$	26.62		$	26.16
Tangible book value per share (non-GAAP)	$	19.15		$	19.07		$	19.98		$	19.46		$	18.99

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

The Company considers the return on average tangible common equity ratio to be a useful measurement of the Company’s ability to generate returns for its common shareholders. By removing the impact of intangible assets and their related amortization and tax effects, the performance of the Company's ongoing business operations can be evaluated. The Company believes that presenting an adjusted return on tangible common equity ratio provides useful and comparative information to assess trends in the Company's core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers.


	Quarter Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Return on Average Tangible Common Equity, annualized:
Net income (GAAP)	$	17,546		$	18,947		$	22,237		$	19,169		$	12,215
Add amortization of intangible assets	2,957			2,058			285			284			302
Exclude tax effect of adjustment	(621)			(432)			(60)			(60)			(63)
Tangible net income (non-GAAP)	$	19,882		$	20,573		$	22,462		$	19,393		$	12,454

Tangible net income (non-GAAP)	$	19,882		$	20,573		$	22,462		$	19,393		$	12,454
Exclude loss on sale of investment securities, net	217			—			—			—			6,854

Exclude merger related costs	7,493			5,178			385			635			—
Exclude gain on sale of premises and equipment	—			—			—			—			(5)
Exclude tax effect of adjustment	(1,619)			(1,087)			(81)			(133)			(1,438)

Exclude tax expense related to BOLI restructuring	—			—			—			—			515
Adjusted tangible net income (non-GAAP)	$	25,973		$	24,664		$	22,766		$	19,895		$	18,380

Average stockholders' equity (GAAP)	$	1,112,178		$	1,049,044		$	911,454		$	892,280		$	879,808
Exclude average intangible assets	(328,166)			(300,391)			(243,069)			(243,350)			(243,651)
Average tangible common stockholders' equity (non-GAAP)	$	784,012		$	748,653		$	668,385		$	648,930		$	636,157

Return on average common equity, annualized (GAAP)	6.33		%	7.32		%	9.68		%	8.52		%	5.57		%
Return on average tangible common equity, annualized (non-GAAP)	10.17		%	11.14		%	13.33		%	11.86		%	7.85		%
Adjusted return on average tangible common equity, annualized (non-GAAP)	13.29		%	13.36		%	13.51		%	12.16		%	11.59		%

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

The Company believes that presenting an adjusted efficiency ratio and adjusted noninterest expense to average assets ratio provides useful and comparative information to assess trends in the Company's core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers.


	Quarter Ended
	June 30, 2026			March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025
Adjusted Efficiency Ratio and Adjusted Noninterest Expense to Average Assets Ratio:
Total noninterest expense (GAAP)	$	64,324		$	56,551		$	41,483		$	41,615		$	41,085
Exclude merger related costs	7,493			5,178			385			635			—
Exclude amortization of intangible assets	2,957			2,058			285			284			302
Adjusted noninterest expense (non-GAAP)	$	53,874		$	49,315		$	40,813		$	40,696		$	40,783

Net interest income (GAAP)	$	74,816		$	69,219		$	58,361		$	57,371		$	54,983

Total noninterest income (GAAP)	$	9,311		$	8,699		$	7,987		$	8,325		$	1,517
Exclude loss on sale of investment securities, net	217			—			—			—			6,854

Exclude gain on sale of premises and equipment	—			—			—			—			(5)

Adjusted total noninterest income (non-GAAP)	$	9,528		$	8,699		$	7,987		$	8,325		$	8,366

Efficiency ratio (GAAP)	76.5		%	72.6		%	62.5		%	63.3		%	72.7		%
Adjusted efficiency ratio (non-GAAP)	63.9		%	63.3		%	61.5		%	61.9		%	64.4		%

Average Total assets	$	8,437,320		$	7,935,002		$	6,954,110		$	7,006,140		$	7,046,943

Noninterest expense to average assets (GAAP) (1)	3.06		%	2.89		%	2.37		%	2.36		%	2.34		%
Adjusted noninterest expense to average assets (non-GAAP) (1)	2.56		%	2.52		%	2.33		%	2.30		%	2.32		%

(1) Annualized.

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

The Company believes presenting loan yield and net interest margin excluding the effect of discount accretion on purchased loans is useful in assessing the impact of acquisition accounting on loan yield as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off our balance sheet.


	Three Months Ended
	June 30, 2026			March 31, 2026			June 30, 2025
	(Dollar amounts in thousands)
Loan yield, excluding incremental accretion on purchased loans, annualized:
Interest and fees on loans (GAAP)	$	81,935		$	76,445		$	65,373
Exclude incremental accretion on purchased loans	1,772			1,623			76
Adjusted interest and fees on loans (non-GAAP)	$	80,163		$	74,822		$	65,297

Average loans receivable, net (GAAP)	$	5,740,927		$	5,412,943		$	4,768,558

Loan yield, annualized (GAAP)	5.72		%	5.73		%	5.50		%
Loan yield, excluding incremental accretion on purchased loans, annualized (non-GAAP)	5.60		%	5.61		%	5.49		%

Net Interest Margin, excluding incremental accretion on purchased loans, annualized:
Net interest income before provision (GAAP)	$	74,816		$	69,219		$	54,983
Exclude incremental accretion on purchased loans	1,772			1,623			76
Adjusted net interest income before provision (non-GAAP)	$	73,044		$	67,596		$	54,907

Average Interest earning assets (GAAP)	$	7,517,314		$	7,087,671		$	6,286,309

Net interest margin (GAAP)	3.99		%	3.96		%	3.51		%
Net interest margin, excluding incremental accretion on purchased loans (non-GAAP)	3.90		%	3.87		%	3.50		%

EX-99.2 3 investorpresentationq226.htm EX-99.2 investorpresentationq226

INVESTOR PRESENTATION Q2 2026

2 FORWARD LOOKING STATEMENTS This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Heritage Financial Corporation (the "Company") intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believes," "expects," "anticipates," "estimates," “forecasts,” "intends," “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” "will," “should,” "would," and "could," as well as the negative of such words. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include, but are not limited to, the following: • potential adverse impacts to economic conditions nationally or in our local market areas, other markets where we have lending relationships, or other aspects of our business operations or financial markets, including, without limitation, as a result of credit quality deterioration, pronounced and sustained reductions in real estate market values, employment levels, labor shortages and a potential recession or slowed economic growth; • changes in the interest rate environment, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; • the level and impact of inflation and the current and future monetary policies of the Board of Governors of the Federal Reserve System and executive orders in response thereto; • previous and potential future disruptions, security breaches, insider fraud, cybersecurity incidents or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform critical processing functions for our business, including sophisticated attacks using artificial intelligence and similar tools; • legislative or regulatory changes that adversely affect our business, including changes in banking, securities, and tax laws, in regulatory policies and principles, or the interpretation and prioritization of such rules and regulations; • effects on the U.S. economy resulting from actions taken by the federal government, including the threat or implementation of tariffs, immigration enforcement and changes in foreign policy; • the effects of acts of war or terrorism, foreign relations, military conflicts, including the wars in Iran and Ukraine, ongoing conflicts in the Middle East, and other international military conflicts that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control; • effects of other external events on our business and the businesses of our clients; • credit and interest rate risks associated with our business, including our customers’ borrowing, repayment, and deposit practices; • fluctuations in deposits and the concentration of large deposits from certain customers, who have deposit balances above current FDIC insurance limits; • liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; • fluctuations in the value of our investment securities; • credit risks and risks from concentrations (including by type of geographic area, collateral and industry) within our loan portfolio; • the effectiveness of our risk management framework; • rapid technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; • increased competition in the financial services industry from non-banks such as credit unions and financial technology companies, including digital asset service providers; • our ability to adapt successfully to technological changes to compete effectively in the marketplace, including as a result of competition from other commercial banks, mortgage banking firms, credit unions, securities brokerage firms, insurance companies, and financial technology companies; • emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; • our ability to implement our organic and acquisition growth strategies, including the recent acquisition of Olympic Bancorp, Inc. ("Olympic"), and our ability to successfully integrate Olympic's customers and operations following the acquisition; • effects of critical accounting policies and judgments, including the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; • the commencement, costs, effects and outcome of litigation and other legal proceedings and regulatory actions against us or to which we may become subject, including in connection with prior acquisitions; • potential impairment to the goodwill we recorded in connection with our past acquisitions, including as a result of the recent acquisition of Olympic; • loss of, or inability to attract, key personnel; • our ability to successfully integrate any assets, liabilities, customers, systems, and management personnel we may acquire, including as a result of the recent acquisition of Olympic, into our operations and our ability to realize related revenue synergies and cost savings within expected time frames or at all, and any goodwill charges related thereto and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, which might be greater than expected; • the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises; • the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks; • the extensive regulatory framework that applies to us; • the overall health of local and national real estate markets; • the level of nonperforming assets on our balance sheet; • risks related to acquiring assets in or entering markets in which we have not previously operated and may not be familiar; • changes in consumer spending, borrowing and saving habits; • the availability of future equity and debt issuances and other capital raising opportunities on favorable terms; and • our success at managing and responding to the risks involved in the foregoing items. You should also consider the risks, assumptions and uncertainties set forth in the “Risk Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2025, as well as those set forth in other reports we file with or furnish to the Securities and Exchange Commission (the “SEC”) which are available on our website at www.hf-wa.com and on the SEC's website at www.sec.gov. These risks, assumptions and uncertainties should be considered in evaluating any forward- looking statements, and undue reliance should not be placed on such statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise. Except as otherwise indicated, this presentation speaks as of June 30, 2026. The delivery of this presentation shall not, under any circumstances, create any implication that there has been no change in the affairs of the Company after such date. Certain of the information contained herein may be derived from information provided by industry sources. We believe that such information is accurate and that the sources from which it has been obtained are reliable. We cannot guarantee the accuracy of such information, however, and we have not independently verified such information. Non-GAAP Financial Information The Company reports its results in accordance with United States generally accepted accounting principles (“GAAP”). However, management believes that certain non-GAAP performance measures used in managing the business may provide meaningful information about underlying trends in its business. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. Slides containing a discussion and reconciliation of non-GAAP financial measures are contained in the Appendix - Reconciliation of Non-GAAP Financial Measures and Quarterly Financial Statistics hereto. All dollars amounts presented throughout the entire presentation are in millions unless otherwise noted, except per share amounts. Percentages presented may not total 100% due to rounding. All tables and charts are as of June 30, 2026, unless otherwise indicated.

HERITAGE FINANCIAL CORPORATION OVERVIEW

4 OVERVIEW General Overview Nasdaq symbol HFWA Stock price(2) $29.81 Market capitalization(2) $1.2 billion Institutional ownership(2) 85.9% Headquarters Olympia, WA # of branches 66 Year established 1927 Q2 2026 Financial Highlights Assets $8.4 billion Deposits $7.0 billion Loans receivable $5.7 billion Net income $17.5 million Net interest margin 3.99% ROAE(3) 6.33% ROATCE(1)(4) 10.17% Adjusted ROATCE(1)(4) 13.29% Efficiency ratio 76.5% Adjusted efficiency ratio(1) 63.9% Leverage ratio 10.4% Total capital ratio 13.4% Certain locations of branches overlap on the map. (1) Represents a non-GAAP financial measure (2) Market information as of July 6, 2026. (3) Return on average equity (4) Return on average tangible common equity Metropolitan Statistical Areas Seattle-Tacoma-Bellevue, WA Portland-Vancouver-Hillsboro, OR-WA Eugene-Springfield, OR Boise–Nampa, ID Heritage Location Heritage Location Heritage Branch Metropolitan Statistical Area Boise City, ID Bremerton-Silverdale-Port Orchard, WA Eugene-Springfield, OR Portland-Vancouver-Hillsboro, OR-WA Seattle-Tacoma-Bellevue, WA Spokane-Spokane Valley, WA

5 COMPANY STRATEGY Allocate capital to organically grow our core banking business Ÿ Successful hiring of individuals and teams of bankers in high-growth and dynamic Seattle and Portland markets as well as other key markets including branch openings in Eugene, Oregon and Boise, Idaho and Spokane, Washington Ÿ Disciplined approach to concentration risk and active portfolio management Improve operational efficiencies and rationalize branch network Ÿ Focused on achieving increased efficiencies with operational scale, internal focus on improving processes and technology solutions Ÿ Closed/Consolidated 36 branches since the beginning of 2010, including 12 branches in 2021 and one branch in 2023 Generate stable profitability and risk adjusted returns Ÿ Adjusted return on average tangible common equity(1) ("ROATCE") averaged 12.0% from 2023 to 2025. Ÿ Five-year growth in tangible book value(1) of $2.39, or 14.3%, to $19.15 at June 30, 2026 from $16.76 at June 30, 2021 Remain active and disciplined in M&A Ÿ On January 31, 2026, completed the acquisition of Olympic Bancorp, Inc. - $1.6B in assets. Ÿ Six completed acquisitions in Washington and Oregon since 2013 Ÿ Target metrics = IRR of >15% with earnbacks < 3 years Maintain conservative underwriting standards and actively manage the loan portfolio Ÿ Long track record of strong underwriting with conservative risk profile Ÿ Disciplined approach to concentration risk Ÿ Net charge-offs on loans to average loans remains low at 0.03% for the quarter ended June 30, 2026 Focus on core deposits to increase franchise value over the long term Ÿ 28.0% noninterest demand deposits to total deposits at June 30, 2026 Ÿ 1.21% cost of total deposits; top 12% performance among US publicly traded banks in Q1 2026 Engage in proactive capital management Ÿ History of increasing regular dividends and utilizing special dividends to manage capital Ÿ Strong capital ratios: leverage ratio(3) = 10.4%; total capital ratio(3) = 13.4% (1) Represents a non-GAAP financial measure (2) Comparable cost of total deposits provided by S&P Global Market Intelligence for the first quarter of 2026 and includes banks nationwide with shares on Nasdaq or NYSE with total assets less than $100 billion excluding pending merger targets (3) Current quarter capital ratios are estimates pending completion and filing of the Company's regulatory reports

6 $124.6 $104.9 $92.5 $109.4 $86.9 Median household income (dollars in thousands) 4.8% 3.5% 14.3% 4.7% 1.1% 13.1% 3.3% 7.8% 12.9% 4.5% 2.6% 12.7% 4.3% 2.6% 11.3%Seattle MSA Portland MSA Boise MSA Bremerton MSA USA Unemployment rate 2026-2031 Projected Population Growth 2026-2031 Projected Median Household Income Growth STRONG AND DIVERSE ECONOMIC LANDSCAPE Major Employers in the Pacific Northwest Data obtained from www.bls.gov, www.bea.gov and S&P Global Market Intelligence Unemployment data reflects the BLS's latest monthly Economic New Release - Employment & Unemployment Economic data as of January 2026 MSA Tie-out of websites used: https://www.bls.gov/web/metro/laulrgma.htm https://www.bls.gov/web/laus/laumstcm.htm https://data.bls.gov/timeseries/LNS14000000 https://www.zippia.com/advice/largest-companies-in-washington/https://www.zippia.com/advice/largest-companies-in-oregon/

7 LOANS AND DEPOSITS BY LOCATION MSA = Metropolitan or Micropolitan Statistical Area Location based upon branch or office location Deposit by MSA $2,704 $933 $837 $515 $459 $336 $224 $163 $160 $147 $114 $93 $354 Seattle-Tacoma-Bellevue WA Portland-Vancouver-Hillsboro OR-WA Bremerton-Silverdale-Port Orchard WA Oak Harbor WA Olympia-Lacey-Tumwater WA Mount Vernon-Anacortes WA Yakima WA Port Townsend WA Bellingham WA Longview-Kelso WA Shelton WA Port Angeles WA Other Loans by MSA $2,767 $776 $335 $237 $186 $181 $125 $102 $91 $948 Seattle-Tacoma-Bellevue WA Portland-Vancouver-Hillsboro OR-WA Bremerton-Silverdale-Port Orchard WA Mount Vernon-Anacortes WA Olympia-Lacey-Tumwater WA Bellingham WA Boise City ID Yakima WA Eugene-Springfield OR Other

8 POTENTIAL GROWTH OPPORTUNITIES Map obtained from S&P Global Market Intelligence Certain locations of bank headquarters overlap on the map Financial information as of the most recent quarter publicly available Excluding banks with pending mergers and acquisitions • Long-term goal to build a Pacific Northwest ("PNW") regional commercial community bank; potential opportunities for M&A and production team lift-outs in WA, OR and ID. • Significant number of banks remaining in HFWA footprint; further consolidation is expected. – 10 banks between $200 million and $500 million in assets – 9 banks between $500 million and $1.0 billion in assets – 12 banks between $1.0 billion and $3.5 billion in assets • Target metrics include 15% IRR and earnback of < 3 years. Bank headquarters

9 $1,712 $3,651 $3,879 $4,113 $4,238 $5,553 $6,615 $7,432 $6,980 $7,175 $7,106 $6,967 $6,907 $8,431 $1,747 $1,079 $1,591 $15.02 $15.68 $16.08 $16.88 $20.63 $22.10 $22.85 $24.34 $22.73 $24.44 $25.40 $27.13 $27.05 $27.13 $10.73 $11.41 $11.86 $12.70 $13.54 $15.07 $15.77 $17.19 $15.66 $17.40 $18.22 $19.98 $19.07 $19.15 Organic Assets Acquired Assets Book value per share Tangible book value per share (1) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 2026 Q2 2026 Acquired Puget Sound Bancorp $639MM in assets Premier Commercial Bancorp $440MM in assets HISTORICAL GROWTH ORGANIC AND ACQUISITIVE Merged with Washington Banking Company $1.7B in assets (1) Represents a non-GAAP financial measure Acquired Olympic Bancorp $1.6B in assets

10 GROWTH STRATEGY YEAR ACTIVITY 2013 • Acquired Valley Community Bancshares - $254MM in assets • Acquired Northwest Commercial Bank - $65MM in assets 2014 • Merged with Washington Banking Company - $1.7B in assets 2015 • Added a commercial banking team in Seattle, Washington • Formed Capital Markets Group as result of the added expertise 2017 • Added commercial banking team in the greater Portland, Oregon area • Expanded expertise in non-profit lending and added a commercial position focused on deposit production 2018 • Acquired Puget Sound Bancorp - $639MM in assets • Acquired Premier Commercial Bancorp - $440MM in assets 2019 • Added commercial banking team in the greater Portland, Oregon area • Expanded expertise in the dental and healthcare fields 2022 • Added new commercial banking team in Vancouver, Washington • Added new commercial banking team in Portland, Oregon • Expanded into a new market with addition of commercial banking team and full service branch in Eugene, Oregon (branch opened August 2022) 2023 • Expanded into a new market with addition of commercial banking team and full service branch in Boise, Idaho (branch opened January 2023) 2024 • Expanded Builder Banking team with hiring of new SVP, Director of Builder Banking and sales position in greater Seattle, Washington area. 2025 • Expanded into a new market with addition of commercial banking team and loan production office in Spokane, Washington in January 2025 (branch opened May 2026) 2026 • Acquired Olympic Bancorp, Inc. - $1.6B in assets Bank Acquisitions and Team Additions Bank Acquisition Team Addition

FINANCIAL UPDATE

12 LOAN PORTFOLIO Loan Portfolio Composition $171 $165 $170 $209 $214 $375 $403 $359 $361 $349$414 $479 $343 $412 $397 $718 $843 $818 $1,059 $1,051 $959 $1,003 $1,035 $1,214 $1,228 $1,698 $1,909 $2,058 $2,466 $2,509 Consumer Residential real estate Construction & land development Commercial and Industrial (C&I) Owner-occupied CRE Non-owner occupied CRE 2023 2024 2025 Q1 2026 Q2 2026 New Loan Commitments* $20 $24 $17 $19 $33 $88 $141 $63 $71 $141 $49 $94 $75 $37 $98 $111 $81 $117 $58 $100 Consumer Construction & land development Commercial and Industrial (C&I) Commercial Real Estate (CRE) Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 *New loan commitments in Q1 2026 do not include Olympic activity prior to acquisition date of January 31, 2026.

13 LOC Utilization Rates 28.2% 29.7% 28.8% 30.7% 29.8% 53.8% 70.2% 57.3% 58.4% 54.3% 31.1% 31.6% 34.4% 34.1% 34.5% Utilization Rate - Consumer LOCs Utilization Rate - Construction LOCs Utilization Rate - C&I LOCs 2023 2024 2025 Q1 2026 Q2 2026 Construction Commitments $769 $682 $599 $706 $731 $414 $479 $343 $412 $397 $355 $203 $256 $294 $334 Outstanding Balance Available Credit 2023 2024 2025 Q1 2026 Q2 2026 LINE OF CREDIT ("LOC") UTILIZATION

14 COMMERCIAL LOAN EXPOSURE Commercial Business Loans by Industry Exposure Industry Amount WARR at 06/30/26 Real estate, rental and leasing $2,719 4.5 Health care and social assistance 455 4.3 Accommodation and food services 189 5.2 Retail trade 134 4.6 Construction 196 5.0 Other services (except Public administration) 157 4.8 Manufacturing 110 4.8 All other industries 828 4.5 Total $4,788 4.5 CRE Loans only by Collateral Type Collateral Type Amount WARR at 06/30/26 Office $685 4.3 Industrial 669 4.6 Retail store / shopping center 439 4.5 Multi-family 615 4.6 Mixed use property 157 4.7 Motel / hotel 111 5.1 Single purpose 136 4.7 Warehouse 128 4.6 Mini-storage 275 3.9 Recreational / school 90 4.8 Other 432 4.6 Total $3,737 4.5 WARR = Weighted average risk rating Categorized by NAICS code. Office - Owner-occupied CRE 8.5% Office - Non-owner occupied CRE 9.8% Industrial 17.9% Retail store / shopping center 11.7% Multi-family 16.4% Mixed use property 4.2% Motel / hotel 3.0% Single purpose 3.6% Warehouse 3.4% Mini-storage 7.4% Recreational / school 2.4% Other 11.7% Real estate, rental and leasing 56.8% Health care and social assistance 9.5% Accommodation and food services 3.9% Retail trade 2.8% Construction 4.1% Other Services (except Public administration) 3.3% Manufacturing 2.3% All other industries 17.3%

15 CHANGES IN LOANS RECEIVABLE $5,723 $162 $(103) $(50) $16 $5,748 Loans receivable at March 31, 2026 Loans originated Prepayments Maturities / Payoffs Net advances/ payments Loans receivable at June 30, 2026 $4,783 $954 $259 $(175) $(96) $23 $5,748 Loans receivable at December 31, 2025 Loans acquired Loans originated Prepayments Payoffs Net advances/ payments Loans receivable at June 30, 2026 Change in loans - Q2 2026 Change in loans - YTD 2026

16 Net charge-offs (recoveries) on loans to average loans, annualized (0.01)% 0.06% 0.03% 0.03% 0.04% 0.01% 0.04% 0.04% 0.02% 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 (0.03)% 0.00% 0.03% 0.05% 0.08% Nonaccrual Loans $4 $4 $21 $15 $16 Nonaccrual loans Nonaccrual loans to loans receivable 2023 2024 2025 Q1 2026 Q2 2026 0.10% 0.08% 0.44% 0.26% 0.27% NONACCRUAL LOANS AND NET CHARGE-OFFS

17 CRITICIZED LOANS $150 $179 $188 $225 $231 $65 $64 $96 $106 $90 $80 $111 $71 $104 $125 Substandard - nonaccrual Substandard - accrual Special mention 2023 2024 2025 Q1 2026 Q2 2026 Criticized Loans by Loan Segment Commercial & industrial 32.9% Owner- occupied CRE 20.6% Non-owner occupied CRE 37.5% Residential real estate 1.0% Construction & land development 7.5% Consumer 0.5% Criticized Loans by Collateral Type Motel/Hotel 8.0% Office 8.3% Multi-Family 4.8% Retail Store/Shopping Center 11.7%Mixed Use Property 6.3% Elder Care 3.9% Farm-Bldgs/Land 4.5% Industrial 6.0% Duplex/Tri-Plex/4-Plex 0.4% Other CRE 19.5% Non-CRE 26.6% $4 $4 $21 $15 $16

18 CRITICIZED LOANS AND NET CHARGE-OFF HISTORY Criticized Loans to Total Loans 3.79% 6.50% 4.81% 3.34% 3.45% 3.73% 3.93% 3.93% 2.05% 3.37% 2.63% 1.96% 2.27% 2.66% 3.22% 3.25% Heritage Peer Median 2019 2020 2021 2022 2023 2024 2025 Q1 2026 Net Charge-offs to Average Loans 0.09% 0.07% 0.01% (0.03)% (0.01)% 0.06% 0.03% 0.04% 0.08% 0.05% 0.02% 0.01% 0.06% 0.06% 0.07% 0.07% Heritage Peer Median 2019 2020 2021 2022 2023 2024 2025 Q1 2026 (1) Criticized loans includes loans graded special mention or worse (2) Peer Median is the median of 20 identified peer banks and is as of March 31, 2026 Proactive Credit Management • Heritage proactively downgrades loans that are experiencing financial difficulty. • Criticized loans(1) to total loans higher than peer median(2) since 2019 • NCOs recognized during the same period were generally lower than peer median.

19 ACL on Loans $47,999 $52,468 $52,584 $60,551 $59,473 1.11% 1.09% 1.10% 1.06% 1.03% ACL on loans ($) ACL on loans / Loans (%) 2023 2024 2025 Q1 2026 Q2 2026 ALLOWANCE FOR CREDIT LOSSES ("ACL") ON LOANS $60,551 $(79) $(1,045) $46 $— $59,473 March 31, 2026 Change in loan balance Change in collective rate Change in rate and balance Individually evaluated loans June 30, 2026 Change in ACL on Loans - Q2 2026 Dollars in thousands

20 Average Deposit Balances and Cost of Total Deposits $5,706 $5,618 $5,813 $6,922 $5,779 $5,843 $5,886 $6,741 $7,100 0.69% 1.34% 1.36% 1.23% 1.40% 1.37% 1.32% 1.25% 1.21% 1.94% 1.89% 1.83% 1.71% 1.67% 1.03% 1.90% 1.89% 1.69% Average deposits Cost of total deposits Cost of int-bearing deposits 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 DEPOSITS Deposit Composition 30.6% 29.1% 27.0% 28.5% 28.0% 28.7% 25.8% 27.5% 25.7% 26.3% 19.5% 20.5% 22.5% 21.9% 22.4% 8.7% 7.4% 7.1% 8.4% 8.3% 12.4% 17.2% 15.9% 15.5% 15.0% Noninterest demand deposits Interest bearing demand deposits Money market accounts Savings accounts Certificates of deposit 2023 2024 2025 Q1 2026 Q2 2026

21 DEPOSIT COMPOSITION Customer Deposits by Relationship Size $923 $476 $1,579 $1,819 $2,242 Over $10MM $5MM-$10MM $1MM-5MM $250K-$1MM Less than $250K Consumer Accounts vs. Business Accounts 27% 58% 15% Consumer Commercial CDs Insured vs. Uninsured 39% 61% Insured Uninsured Deposit portfolio as of June 30, 2026: • Majority of deposits are to customers with relationships of $1 million or less. • Uninsured deposits at 39% of total deposits. • 13% of uninsured deposits are public deposits that are 100% pledged. • Mix of commercial and consumer accounts.

22 Investment Balances and Investment Yield $1,874 $1,468 $1,282 $1,633 $1,346 $1,313 $1,282 $1,669 $1,633$178 $33 $88 $360 $57 $3 $316 $44 3.02% 3.33% 3.33% 3.49% 3.38% 3.35% 3.26% 3.43% 3.54% Portfolio yield New purchases 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 INVESTMENT PORTFOLIO Portfolio Duration 4.85 4.55 4.30 4.31 3.37 2.33 3.87 3.41 4.68 4.48 4.30 4.02 4.31 3.76 4.18 3.19 5.04 Duration - total portfolio Duration - new purchases only (1) 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 (1) No investments were purchased during Q3 2025

23 $51 $49 $46 $45 $49 $42 $74 $100 $67 $69 $37 $38 $37 $35 $33 $32 $36 $30 $62 $89 $56 $59 $27 $29 $14 $14 $13 $13 $13 $12 $12 $11 $11 $10 $10 $9 Interest Principal Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Q1 2028 Q2 2028 Q3 2028 Q4 2028 Q1 2029 Q2 2029 INVESTMENT CASHFLOWS Investment cashflows(1) are estimated to be $667 million through Q2 of 2029. (1) Cashflow estimates based on third-party bond accounting service

24 INVESTMENT PORTFOLIO HTM Investment by Type US government and agencies 21.3% Residential CMO and MBS 32.2% Commercial CMO and MBS 46.5% Available for sale ("AFS") and held to maturity ("HTM") investment securities percentages are based on fair value as of June 30, 2026 unless otherwise noted Strong Credit Quality of Portfolio: AFS Securities • 91.2% of AFS in U.S. government and agency securities • Only 1.7% of AFS are rated less than AA • 97.7% of AFS portfolio are unpledged HTM Securities • All HTM investments are U.S. government and agency securities • 100% HTM portfolio pledged for public deposits and Federal Reserve Bank borrowings AFS Investment by Type US government and agencies 1.2% Municipal securities 6.6% Residential CMO and MBS 51.1% Commercial CMO and MBS 37.5% Corporate obligations 1.7% Other asset-backed securities 1.9%

25 Net Interest Margin 3.56% 3.31% 3.58% 3.98% 3.51% 3.64% 3.72% 3.96% 3.99% 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 NET INTEREST MARGIN Quarterly Change in Net Interest Margin 3.96% (0.09)% 0.09% 0.05% (0.03)% 0.05% (0.04)% 3.99% QTD Q1 2026 Loans Accretion on purchased loans Investments Interest earning deposits Deposits Borrowings QTD Q2 2026 Net Interest Income $225,155 $209,364 $224,405 $144,035 $54,983 $57,371 $58,361 $69,219 $74,816 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026

26 Fixed Rate Loans • $3.0 billion in total Adjustable Rate Loans - Repricing Schedule $1,231 $148 $195 $287 $397 $394 $104 6.46% 4.70% 5.95% 6.10% 6.17% 6.11% 5.21% 6.53% 6.63% 6.43% 6.57% 6.53% 6.55% 6.57% Floating and Adjustable Rate Loans Wtd Avg Rate (1) Wtd Avg Rate if Repriced (2) < 3 Months 3 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years LOAN MATURITY AND REPRICING NOTE: Interest rates disclosed above are based upon the loan rate and do not consider amortization/accretion of deferred fees and purchase accounting adjustments. (1) Weighted Average Rate as of June 30, 2026 and repricing period signifies the sooner of the next scheduled reprice date or maturity (2) Weighted Average Rate if Repriced as of June 30, 2026 and assumes same index and margin Adjustable Rate Loans • $2.8 billion in total • 55% tied to FHLB index, 23% tied to Prime, 23% tied to SOFR Fixed Rate Loans - Maturity Schedule $81 $196 $312 $248 $447 $291 $1,411 5.51% 5.20% 5.35% 5.41% 5.14% 4.82% 4.49% Fixed Rate Loans Wtd Avg Rate (1) < 3 Months 3 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 Years > 5 Years

27 PROFITABILITY TRENDS ROAA and Adjusted ROAA(1) 0.86% 0.61% 0.96% 0.90% 0.70% 1.09% 1.27% 0.97% 0.83% 0.99% 0.88% 1.10% 1.15% 1.03% 1.11% 1.29% 1.18% 1.12% ROAA Adjusted ROAA (1) 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Noninterest Expense/Avg. Assets 2.30% 2.20% 2.32% 2.54% 2.32% 2.30% 2.33% 2.52% 2.56% 2.34% 2.36% 2.37% 2.89% 3.06% 2.33% 2.22% 2.36% 2.98% Noninterest Expense / Avg. Assets Adjusted Noninterest Expense / Avg. Assets (1) 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 ROAA = Return on average assets (1) Represents a non-GAAP financial measure

28 $61.8 $43.3 $67.5 $36.5 $70.9 $62.9 $77.3 $46.7 Net income Adjusted Net income (1) 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 $12.2 $19.2 $22.2 $18.9 $17.5 $18.1 $19.7 $22.5 $23.0 $23.6 PROFITABILITY TRENDS ROAE, ROATCE(1) and Adjusted ROATCE(1) Net Income and Adjusted Net Income(1), in millions 12.76% 10.53% 12.15% 13.32% 11.59% 12.16% 13.51% 13.36% 13.29% 11.15% 7.31% 10.63% 10.64% 7.85% 11.86% 13.33% 11.14% 10.17% 7.55% 5.06% 7.61% 6.81% 5.57% 8.52% 9.68% 7.32% 6.33% ROAE ROATCE (1) Adjusted ROATCE (1) 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 ROAE = Return on average equity ROATCE = Return on average tangible common equity (1) Represents a non-GAAP financial measure

29(1) Represents a non-GAAP financial measure (2) Current quarter ratios are estimates pending completion and filing of the Company's regulatory reports CAPITAL RATIOS Equity Ratios 11.9% 12.2% 13.2% 13.1% 13.2% 8.8% 9.0% 10.1% 9.6% 9.7% Stockholders' equity to total assets (GAAP) Tangible common equity to tangible assets(1) 2023 2024 2025 Q1 2026 Q2 2026 12.9% 12.0% 12.7% 12.2% 12.1% 10.0% 10.0% 10.8% 10.3% 10.4% 14.1% 13.3% 14.1% 13.5% 13.4% Total Risk Based Capital Tier 1 Leverage Ratio Common Equity Tier 1 2023 2024 2025 Q1 2026 Q2 2026 Regulatory Capital Ratios(2)

30 LIQUIDITY POSITION (1) Includes FHLB borrowing availability of $1.80 billion at June 30, 2026 based on pledged assets, however, maximum credit capacity is 45% of the Bank's total assets one quarter in arrears or $3.82 billion Liquidity position at June 30, 2026: • Sufficient liquidity to cover estimated uninsured deposits of $2.8 billion. • Access to brokered deposits of $1.1 billion per internal company policy. Liquidity Sources $2,379 $2,509 $2,617 $3,202 $3,273 $978 $1,141 $1,286 $1,469 $1,636 $346 $347 $346 $342 $339 $656 $631 $607 $978 $949 $254 $245 $233 $268 $204 $145 $145 $145 $145 $145 100.4% 100.6% 107.7% 113.0% 118.9% FHLB borrowing availability (1) FRB borrowing availability Unencumbered investment securities available for sale at fair value Cash and cash equivalents Fed funds lines % of uninsured deposits covered by liquidity sources Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026

SHAREHOLDER RETURN

32 TOTAL SHAREHOLDER RETURN Stock Summary(2) Ticker HFWA Exchange Nasdaq Stock price $29.81 Market capitalization (in millions) $1,228.7 Dividend yield (regular dividend only) 3.22 % Average Daily Volume (3 month) Average daily volume (shares) 236,890 Average daily volume ($000s) $7,062 52-Week High and Low Price 52-week high (July 2, 2026) $30.58 52-week low (November 18, 2025) $21.32 Per Share Tangible book value per share(1) $19.15 EPS - 2026E $2.39 EPS - 2027E $2.80 Number of research analysts 6 Valuation Ratios Price / Tangible book value(1) 155.7 % Price / 2026E EPS 12.5x Price / 2027E EPS 10.7x Dividends Per Share Declared(3) 0.61 0.72 0.84 0.80 0.81 0.84 0.88 0.92 0.96 0.73 $0.12 $0.15 $0.18 $0.20 $0.20 $0.21 $0.22 $0.23 $0.24 $0.24 $0.13 $0.15 $0.18 $0.20 $0.20 $0.21 $0.22 $0.23 $0.24 $0.24 $0.13 $0.15 $0.19 $0.20 $0.20 $0.21 $0.22 $0.23 $0.24 $0.25 $0.13 $0.17 $0.19 $0.20 $0.21 $0.21 $0.22 $0.23 $0.24 $0.10 $0.10 $0.10 Q1 Q2 Q3 Q4 Special dividends 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026(1) Represents a non-GAAP financial measure (2) Market information as of July 6, 2026 and earnings per share and valuation ratios are based on analysts consensus (3) Dividend information as of July 22, 2026 $2.01 $1.80 $2.24 $1.75 $1.24 $1.96 $0.53 $0.56 $0.66 $0.59 $0.57 $0.36 $0.55 $0.65 $0.48 $0.42 Diluted EPS Adjusted Diluted EPS(1) 2023 2024 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Diluted EPS and Adjusted Diluted EPS(1)

APPENDIX - RECONCILIATION OF NON-GAAP FINANCIAL MEASURES AND QUARTERLY FINANCIAL STATISTICS

34 NON-GAAP FINANCIAL MEASURES Dollars in thousands 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Adjusted Net Income and Adjusted Return on Average Assets ("ROAA"): Net income (GAAP) $ 61,755 $ 43,258 $ 67,532 $ 36,493 $ 12,215 $ 19,169 $ 22,237 $ 18,947 $ 17,546 Exclude (gain) loss on sale of investment securities, net 12,231 22,742 10,741 217 6,854 — — — 217 Exclude gain on sale of branch including related deposits, net (610) — — — — — — — — Exclude merger related costs — — 1,020 12,671 — 635 385 5,178 7,493 Exclude gain on sale of premise and equipment — (1,552) (8) — (5) — — — — Exclude tax effect of adjustments (2,440) (4,450) (2,468) (2,706) (1,438) (133) (81) (1,087) (1,619) Exclude BOLI restructuring costs included in BOLI Income — 508 — — — — — — — Exclude tax expense related to BOLI restructuring — 2,371 515 — 515 — — — — Adjusted net income (non-GAAP) $ 70,936 $ 62,877 $ 77,332 $ 46,675 $ 18,141 $ 19,671 $ 22,541 $ 23,038 $ 23,637 Average ("Avg") total assets $ 7,140,024 $ 7,133,046 $ 7,027,138 8,187,549 $ 7,046,943 $ 7,006,140 $ 6,954,110 $ 7,935,002 8,437,320 ROAA, annualized (GAAP) 0.86 % 0.61 % 0.96 % 0.90 % 0.70 % 1.09 % 1.27 % 0.97 % 0.83 % Adjusted ROAA, annualized (non-GAAP) 0.99 % 0.88 % 1.10 % 1.15 % 1.03 % 1.11 % 1.29 % 1.18 % 1.12 % Adjusted Noninterest Expense / Average Assets: Noninterest Expense (GAAP) $ 166,623 $ 158,296 $ 165,566 $ 120,875 $ 41,085 $ 41,615 $ 41,483 $ 56,551 $ 64,324 Exclude merger related costs — — 1,020 12,671 — 635 385 5,178 7,493 Exclude amortization of intangible assets $ 2,434 $ 1,640 $ 1,174 $ 5,015 $ 302 $ 284 $ 285 $ 2,058 $ 2,957 Adjusted noninterest expense (non- GAAP) $ 164,189 $ 156,656 $ 163,372 $ 103,189 $ 40,783 $ 40,696 $ 40,813 $ 49,315 $ 53,874 Avg. total assets $ 7,140,024 $ 7,133,046 $ 7,027,138 $ 8,187,549 $ 7,046,943 $ 7,006,140 $ 6,954,110 $ 7,935,002 $ 8,437,320 Noninterest Expense/Avg. Assets (GAAP) 2.33 % 2.22 % 2.36 % 2.98 % 2.34 % 2.36 % 2.37 % 2.89 % 3.06 % Noninterest expense/Avg. Assets (non-GAAP) 2.30 % 2.20 % 2.32 % 2.54 % 2.32 % 2.30 % 2.33 % 2.52 % 2.56 %

35 NON-GAAP FINANCIAL MEASURES 2023 2024 2025 2026 YTD Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Return on Average Tangible Common Equity ("ROATCE") and Adjusted ROATCE: Net income (GAAP) $ 61,755 $ 43,258 $ 67,532 $ 36,493 $ 12,215 $ 19,169 $ 22,237 $ 18,947 $ 17,546 Add amortization of intangible assets 2,434 1,640 1,174 5,015 302 284 285 2,058 2,957 Exclude tax effect of adjustment (511) (344) (247) (1,053) (63) (60) (60) (432) (621) Tangible net income (non-GAAP) $ 63,678 $ 44,554 $ 68,459 $ 40,455 $ 12,454 $ 19,393 $ 22,462 $ 20,573 $ 19,882 Tangible net income (non-GAAP) $ 63,678 $ 44,554 $ 68,459 $ 40,455 $ 12,454 $ 19,393 $ 22,462 $ 20,573 $ 19,882 Exclude (gain) loss on sale of investment securities, net 12,231 22,742 10,741 217 6,854 — — — 217 Exclude gain on sale of branch including related deposits, net (610) — — — — — — — — Exclude merger related costs — — 1,020 12,671 — 635 385 5,178 7,493 Exclude gain on sale of premise and equipment — (1,552) (8) — (5) — — — — Exclude tax effect of adjustments (2,440) (4,450) (2,468) (2,706) (1,438) (133) (81) (1,087) (1,619) Exclude BOLI restructuring costs included in BOLI Income — 508 — — — — — — — Exclude tax expense related to BOLI restructuring — 2,371 515 — 515 — — — — Adjusted tangible net income (non-GAAP) $ 72,859 $ 64,173 $ 78,259 $ 50,637 $ 18,380 $ 19,895 $ 22,766 $ 24,664 $ 25,973 Average stockholders' equity (GAAP) $ 818,042 $ 854,172 $ 887,679 $ 1,080,785 $ 879,808 $ 892,280 $ 911,454 $ 1,049,044 $ 1,112,178 Exclude average intangible assets (246,965) (244,910) (243,500) (314,355) (243,651) (243,350) (243,069) (300,391) (328,166) Average tangible common stockholders' equity (non-GAAP) $ 571,077 $ 609,262 $ 644,179 $ 766,430 $ 636,157 $ 648,930 $ 668,385 $ 748,653 $ 784,012 ROAE, annualized (GAAP) 7.55 % 5.06 % 7.61 % 6.81 % 5.57 % 8.52 % 9.68 % 7.32 % 6.33 % ROATCE, annualized (non-GAAP) 11.15 % 7.31 % 10.63 % 10.64 % 7.85 % 11.86 % 13.33 % 11.14 % 10.17 % Adjusted ROATCE, annualized (non- GAAP) 12.76 % 10.53 % 12.15 % 13.32 % 11.59 % 12.16 % 13.51 % 13.36 % 13.29 % Dollars in thousands

36 NON-GAAP FINANCIAL MEASURES 2023 2024 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Diluted Earnings per Share and Adjusted Diluted Earnings per Share: Net income (GAAP) $ 61,755 $ 43,258 $ 67,532 $ 12,215 $ 19,169 $ 22,237 $ 18,947 $ 17,546 Exclude (gain) loss on sale of investment securities, net 12,231 22,742 10,741 6,854 — — — 217 Exclude gain on sale of branch including related deposits, net (610) — — — — — — — Exclude merger related costs — — 1,020 — 635 385 5,178 7,493 Exclude gain on sale of premise and equipment — (1,552) (8) (5) — — — — Exclude tax effect of adjustments (2,440) (4,450) (2,468) (1,438) (133) (81) (1,087) (1,619) Exclude BOLI restructuring costs included in BOLI Income — 508 — — — — — — Exclude tax expense related to BOLI restructuring — 2,371 515 515 — — — — Adjusted net income (non-GAAP) $ 70,936 $ 62,877 $ 77,332 $ 18,141 $ 19,671 $ 22,541 $ 23,038 $ 23,637 Average number of diluted shares outstanding 35,258,189 34,899,036 34,456,904 34,446,710 34,413,386 34,405,793 39,104,569 41,541,763 Diluted earnings per share (GAAP) $ 1.75 $ 1.24 $ 1.96 $ 0.36 $ 0.55 $ 0.65 $ 0.48 $ 0.42 Adjusted diluted earnings per share (non-GAAP) $ 2.01 $ 1.80 $ 2.24 $ 0.53 $ 0.56 $ 0.66 $ 0.59 $ 0.57 Dollars in thousands

37 2017 2018 2019 2020 2021 2022 2023 2024 2025 Tangible Book Value Per Share: Total stockholders' equity (GAAP) $ 505,305 $ 760,723 $ 809,311 $ 820,439 $ 854,432 $ 797,893 $ 853,261 $ 863,527 $ 921,504 Exclude intangible assets (125,117) (261,553) (257,552) (254,027) (250,916) (248,166) (245,732) (244,092) (242,918) Tangible common equity (non-GAAP) $ 380,188 $ 499,170 $ 551,759 $ 566,412 $ 603,516 $ 549,727 $ 607,529 $ 619,435 $ 678,586 Total assets (GAAP) $ 4,113,270 $ 5,316,927 $ 5,552,970 $ 6,615,318 $ 7,432,412 $ 6,980,100 $ 7,174,957 $ 7,106,278 $ 6,967,350 Exclude intangible assets (125,117) (261,553) (257,552) (254,027) (250,916) (248,166) (245,732) (244,092) (242,918) Tangible assets (non-GAAP) $ 3,988,153 $ 5,055,374 $ 5,295,418 $ 6,361,291 $ 7,181,496 $ 6,731,934 $ 6,929,225 $ 6,862,186 $ 6,724,432 Stockholders' equity to total assets (GAAP) 12.3 % 14.3 % 14.6 % 12.4 % 11.5 % 11.4 % 11.9 % 12.2 % 13.2 % Tangible common equity to tangible assets (non- GAAP) 9.5 % 9.9 % 10.4 % 8.9 % 8.4 % 8.2 % 8.8 % 9.0 % 10.1 % Shares outstanding 29,927,746 36,874,055 36,618,729 35,912,243 35,105,779 35,106,697 34,906,233 33,990,827 33,963,500 Book value per share (GAAP) $ 16.88 $ 20.63 $ 22.10 $ 22.85 $ 24.34 $ 22.73 $ 24.44 $ 25.40 $ 27.13 Tangible book value per share (non-GAAP) $ 12.70 $ 13.54 $ 15.07 $ 15.77 $ 17.19 $ 15.66 $ 17.40 $ 18.22 $ 19.98 Moved to 2nd slide 2026 2026 Tangible Book Value Per Share (cont'd): Q1 Q2 Total stockholders' equity (GAAP) $ 1,115,691 $ 1,109,692 Exclude intangible assets (329,255) (326,298) Tangible common equity (non-GAAP) $ 786,436 $ 783,394 Total assets (GAAP) $ 8,498,404 $ 8,430,566 Exclude intangible assets (329,255) (326,298) Tangible assets (non-GAAP) $8,169,149 $8,104,268 Stockholders' equity to total assets (GAAP) 13.1 % 13.2 % Tangible common equity to tangible assets (non- GAAP) 9.6 % 9.7 % Shares outstanding 41,249,873 40,906,122 Book value per share (GAAP) $ 27.05 $ 27.13 Tangible book value per share (non-GAAP) $ 19.07 $ 19.15 NON-GAAP FINANCIAL MEASURES Dollars in thousands

38 NON-GAAP FINANCIAL MEASURES Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Efficiency Ratio and Adjusted Efficiency Ratio Total noninterest expense (GAAP) $ 41,085 $ 41,615 $ 41,483 $ 56,551 $ 64,324 Exclude merger related costs — 635 385 5,178 7,493 Exclude amortization of intangible assets $ 302 $ 284 $ 285 $ 2,058 $ 2,957 Adjusted noninterest expense (non-GAAP) $ 40,783 $ 40,696 $ 40,813 $ 49,315 $ 53,874 Net interest income (GAAP) $ 54,983 $ 57,371 $ 58,361 $ 69,219 $ 74,816 Total noninterest income (GAAP) $ 1,517 $ 8,325 $ 7,987 $ 8,699 $ 9,311 Exclude (gain) loss on sale of investment securities, net 6,854 — — — 217 Exclude gain on sale of premise and equipment (5) — — — — Adjusted total non interest income (non-GAAP) $ 8,366 $ 8,325 $ 7,987 $ 8,699 $ 9,528 Efficiency ratio (GAAP) 72.7 % 63.3 % 62.5 % 72.6 % 76.5 % Adjusted efficiency ratio (non-GAAP) 64.4 % 61.9 % 61.5 % 63.3 % 63.9 % Dollars in thousands

39 As of Period End or for the Three Months Ended June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 Profitability: Net income $ 12,215 $ 19,169 $ 22,237 $ 18,947 $ 17,546 Adjusted net income(1) $ 18,141 $ 19,671 $ 22,541 $ 23,038 $ 23,637 Diluted earnings per share $ 0.36 $ 0.55 $ 0.65 $ 0.48 $ 0.42 Adjusted diluted earnings per share (1) $ 0.53 $ 0.56 $ 0.66 $ 0.59 $ 0.57 Return on average assets 0.70 % 1.09 % 1.27 % 0.97 % 0.83 % Adjusted return on average assets(1) 1.03 % 1.11 % 1.29 % 1.18 % 1.12 % Return on average common equity 5.57 % 8.52 % 9.68 % 7.32 % 6.33 % Return on average tangible common equity(1) 7.85 % 11.86 % 13.33 % 11.14 % 10.17 % Adjusted return on average tangible common equity(1) 11.59 % 12.16 % 13.51 % 13.36 % 13.29 % Net interest margin 3.51 % 3.64 % 3.72 % 3.96 % 3.99 % Efficiency ratio 72.7 % 63.3 % 62.5 % 72.6 % 76.5 % Adjusted efficiency ratio(1) 64.4 % 61.9 % 61.5 % 63.3 % 63.9 % Noninterest expense to average total assets 2.34 % 2.36 % 2.37 % 2.89 % 3.06 % Adjusted noninterest expense to average total assets(1) 2.32 % 2.30 % 2.33 % 2.52 % 2.56 % Balance Sheet: Total assets $ 7,070,641 $ 7,011,879 $ 6,967,350 $ 8,498,404 $ 8,430,566 Loans receivable $ 4,774,855 $ 4,769,160 $ 4,783,266 $ 5,722,238 $ 5,747,741 Total deposits $ 5,784,413 $ 5,857,464 $ 5,920,199 $ 7,248,537 $ 7,038,706 Loan to deposit ratio 82.5 % 81.4 % 80.8 % 78.9 % 81.7 % Capital: Book value per share $ 26.16 $ 26.62 $ 27.13 $ 27.05 $ 27.13 Tangible book value per share(1) $ 18.99 $ 19.46 $ 19.98 $ 19.07 $ 19.15 Leverage ratio 10.3 % 10.5 % 10.8 % 10.3 % 10.4 % Total capital ratio 13.6 % 13.8 % 14.1 % 13.5 % 13.4 % Credit Quality: Nonperforming assets to total assets 0.26 % 0.30 % 0.30 % 0.19 % 0.19 % ACL on loans to loans receivable 1.10 % 1.13 % 1.10 % 1.06 % 1.03 % Dollars in thousands (1) Represents a non-GAAP financial measure QUARTERLY FINANCIAL STATISTICS