Heritage Financial Q3 2026 EPS falls to $0.46

Net interest income rose 34.7% year over year, while merger-related costs were $5.2 million and nonaccrual loans reached $32.1 million.

Rhea-AI Filing Summary

Heritage Financial Corporation (HFWA) reported third-quarter 2026 net income of $18.7 million and diluted earnings of $0.46 per share, versus $19.2 million and $0.55 a year earlier. Net interest income rose 34.7% year over year to $77.3 million, while net interest margin was 4.05%, up from 3.64%. Adjusted diluted EPS, a non-GAAP measure, was $0.55 versus $0.56.

Loans receivable rose 2.3% to $5.88 billion and deposits increased 2.1% to $7.19 billion from June 30, 2026. Nonaccrual loans were $32.1 million, compared with $15.5 million at June 30. The core conversion of Kitsap Bank customer accounts was completed during the quarter; merger-related expenses were $5.2 million, compared with $7.5 million in Q2. Total noninterest expense was $62.0 million, up 48.9% year over year, primarily reflecting merger expenses and Olympic operations.

The board declared a regular cash dividend of $0.25 per share, payable November 18, 2026, to shareholders of record November 4, 2026. It also approved a new repurchase program authorizing up to 5% of outstanding common shares, approximately 2.0 million shares.

3 points · 0 major

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0 major · 2 points

How the balance works

Positive

• Moderate pointQuarterly net interest income rose 34.7% year over year.
• Moderate pointNew repurchase program authorizes up to 5% of outstanding common shares.
• Minor pointQuarterly dividend increased to $0.25 per share from $0.24.

Negative

• Moderate pointNoninterest expense rose 48.9% year over year with merger and Olympic operations.
• Moderate pointNonaccrual loans reached $32.1 million, versus $15.5 million at June 30.

Filing Explained

During the third quarter, Heritage Financial repurchased 341,483 shares for $10.2 million under its prior program, which was substantially completed and is superseded by the new authorization.

8-K Event Classification

4 items: 2.02, 7.01, 8.01, 9.01

4 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net income: $18.7 million Diluted earnings per share: $0.46 per share Net interest income: $77.3 million +5 more

8 metrics

Net income $18.7 million Third quarter 2026; $19.2 million in the third quarter of 2025.

Diluted earnings per share $0.46 per share Third quarter 2026; $0.55 in the third quarter of 2025.

Net interest income $77.3 million Third quarter 2026; increased 34.7% from the third quarter of 2025.

Net interest margin 4.05% Third quarter 2026; 3.64% in the third quarter of 2025.

Noninterest expense $62.0 million Third quarter 2026; increased 48.9% from the third quarter of 2025.

Nonaccrual loans $32.1 million At September 30, 2026; $15.5 million at June 30, 2026.

Quarterly cash dividend $0.25 per share Declared October 21, 2026; payable November 18, 2026.

Share repurchase authorization Up to 5% of outstanding common shares Approved October 21, 2026; approximately 2.0 million shares.

Key Terms

Adjusted diluted earnings per share, Net interest margin, Allowance for credit losses, Nonaccrual loans, +1 more

5 terms

Adjusted diluted earnings per share financial

"Adjusted diluted earnings per share were $0.55"

Adjusted diluted earnings per share is the company’s net profit per share after accounting for potential extra shares (from options or convertible securities) and removing one‑time or unusual items so the number reflects ongoing business results. Think of it like timing a runner’s steady pace after excluding a few unexpected stops; it gives investors a clearer view of sustainable profit available to each share. Investors use it to compare companies and judge underlying profitability and valuation without short‑term distortions.

Net interest margin financial

"Net interest margin increased six basis points to 4.05%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

Allowance for credit losses financial

"allowance for credit losses ("ACL") on loans"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

Nonaccrual loans financial

"Nonaccrual loans were $32.1 million at September 30, 2026"

Nonaccrual loans are loans a lender has stopped counting toward interest income because the borrower is overdue or unlikely to pay; the lender only records cash payments received and may set aside extra funds to cover potential losses. For investors, a rising number or amount of nonaccrual loans signals weaker credit quality, lower future interest revenue and larger potential write-downs — similar to pausing expected subscription income when many customers stop paying.

Merger-related expenses financial

"Merger-related expenses incurred in the third quarter of 2026"

Merger-related expenses are the one-time costs a company incurs when combining with or buying another business, such as fees for lawyers and bankers, severance pay for staff reductions, integration costs, and closing charges. Like the upfront expenses of renovating two homes to join them into one, these charges can reduce short-term profits and cash available but may enable future cost savings or revenue gains; investors watch them to judge the true financial impact and whether the deal creates value.

Earnings Snapshot

Net income: $18.7 million

Third quarter 2026

Net income $18.7 million Compared with $19.2 million in the third quarter of 2025.

Diluted earnings per share $0.46 per share Compared with $0.55 in the third quarter of 2025.

Adjusted diluted earnings per share $0.55 per share Compared with $0.56 in the third quarter of 2025; non-GAAP measure.

Net interest income $77.3 million Increased 34.7% from the third quarter of 2025.

Net interest margin 4.05% Increased 41 basis points from 3.64% in the third quarter of 2025.

Noninterest expense $62.0 million Increased 48.9% from the third quarter of 2025.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did HFWA earn in Q3 2026?

Heritage Financial reported $18.7 million in net income and diluted earnings of $0.46 per share for the third quarter of 2026. Net income was $19.2 million and diluted earnings were $0.55 per share in the third quarter of 2025; adjusted diluted EPS was $0.55, a non-GAAP measure.

What dividend did HFWA declare, and when is it payable?

The board declared a $0.25 per-share cash dividend, payable November 18, 2026, to shareholders of record at the close of business on November 4, 2026.

What determines the timing and price of HFWA share repurchases?

The number, timing and price of repurchased shares will depend on business and market conditions and other factors, including opportunities to deploy the company's capital.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/22/2026 - 01:24 PM EDT Accepted by SEC EDGAR 10/22/2026 - 01:23 PM EDT Learn about SEC filing dates

0001046025False00010460252026-10-222026-10-22

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): October 22, 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

WA

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 October 22, 2026, Heritage Financial Corporation (“Heritage”) issued a press release announcing its third 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 October 22, 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 October 22, 2026, Heritage issued a press release announcing a regular quarterly cash dividend of $0.25 per common share. The dividend will be paid on November 18, 2026 to shareholders of record at the close of business on November 4, 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 Third Quarter 2026 results and declares regular cash dividend of $0.25 per share dated October 21, 2026
Exhibit 99.2						Third 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:
October 22, 2026						/S/ BRYAN MCDONALD
						Bryan McDonald
						President and Chief Executive Officer
						(Duly Authorized Officer)

FOR IMMEDIATE RELEASE

DATE: October 22, 2026

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

Third Quarter 2026 Highlights

•Net income was $18.7 million, or $0.46 per diluted share, compared to $17.5 million, or $0.42 per diluted share, for the second quarter of 2026.

•Adjusted diluted earnings per share (1) were $0.55, compared to $0.57 in the second quarter of 2026.

•Net interest income increased $2.4 million, or 3.3% (13.0% annualized) from the prior quarter.

•Net interest margin increased to 4.05%, an increase of 6 basis points from 3.99% for the second quarter of 2026.

•Yield on loans increased to 5.76%, an increase of 4 basis points from 5.72% for the second quarter of 2026.

•Cost of interest bearing deposits decreased to 1.65%, from 1.67% for the second quarter of 2026.

•Loans receivable increased $133.5 million, or 2.3% (9.2% annualized), from the second quarter of 2026.

•Deposits increased $148.2 million, or 2.1% (8.4% annualized), from the second quarter of 2026.

•Approved a new stock repurchase program authorizing the repurchase of up to 5% of the Company's outstanding shares, or approximately 2.0 million shares.

•Declared a regular cash dividend of $0.25 per share on October 21, 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 $18.7 million for the third quarter of 2026, compared to $17.5 million for the second quarter of 2026 and $19.2 million for the third quarter of 2025. Diluted earnings per share were $0.46 for the third quarter of 2026, compared to $0.42 for the second quarter of 2026 and $0.55 for the third quarter of 2025. Adjusted diluted earnings per share(1) were $0.55 for the third quarter of 2026, compared to $0.57 for the second quarter of 2026 and $0.56 for the third quarter of 2025.

During third quarter of 2026, the Company completed the core conversion of customer accounts of Kitsap Bank from the acquisition of its parent company Olympic Bancorp, Inc. (the "Merger") which closed on January 31, 2026. As a result of the core conversion and closure of two branches, the Company recognized Merger-related expenses of $5.2 million in the third quarter of 2026.

Bryan McDonald, President and Chief Executive Officer of the Company, commented, “We are pleased with the continued improvement in our net interest margin and growth in loans and deposits during the third quarter. In addition, we completed the successful conversion of the Kitsap Bank customers to the Heritage Bank system. This was an important step for Heritage to achieve full realization of cost savings from the Merger and operate with improved efficiency going forward.”

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

1

Financial Highlights

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

			As of or for the Quarter Ended
			September 30, 2026						June 30, 2026						September 30, 2025
			(Dollars in thousands, except per share amounts)
Net income			$	18,720					$	17,546					$	19,169
Diluted earnings per share			0.46						0.42						0.55
Adjusted diluted earnings per share(1)			0.55						0.57						0.56
Return on average assets(2)			0.88		%				0.83		%				1.09		%
Adjusted return on average assets(1)(2)			1.07		%				1.12		%				1.11		%
Return on average common equity(2)			6.71						6.33						8.52
Return on average tangible common equity(1)(2)			10.67						10.17						11.86
Adjusted return on average tangible common equity(1)(2)			12.75						13.29						12.16
Net interest margin(2)			4.05						3.99						3.64
Cost of total deposits(2)			1.19						1.21						1.37
Efficiency ratio			71.6						76.5						63.3
Adjusted efficiency ratio(1)			62.2						63.9						61.9
Noninterest expense to average total assets(2)			2.90						3.06						2.36
Adjusted noninterest expense to average total assets(1)(2)			2.52						2.56						2.30
Total assets			$	8,517,934					$	8,430,566					$	7,011,879
Loans receivable			5,881,201						5,747,741						4,769,160
Total deposits			7,186,934						7,038,706						5,857,464
Loan to deposit ratio(3)			81.8		%				81.7		%				81.4		%
Book value per share			$	26.71					$	27.13					$	26.62
Tangible book value per share(1)			18.74						19.15						19.46

(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 $31.8 million, or 1.9%, to $1.60 billion at September 30, 2026, from $1.63 billion at June 30, 2026. There were investment maturities and repayments of $45.9 million and a $32.4 million increase in unrealized losses on available for sale securities during the third quarter of 2026. These decreases to carrying value were partially offset by investment security purchases of $46.1 million during the third quarter of 2026.

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

			September 30, 2026												June 30, 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			$	11,272					0.7		%				$	11,823					0.7		%				$	(551)					(4.7)		%
Municipal securities			55,203						3.4						64,390						3.9						(9,187)						(14.3)
Residential CMO and MBS(1)			491,405						30.7						496,178						30.4						(4,773)						(1.0)
Commercial CMO and MBS(1)			348,255						21.8						363,713						22.2						(15,458)						(4.3)
Corporate obligations			23,052						1.4						16,423						1.0						6,629						40.4
Other asset-backed securities			18,449						1.2						18,910						1.2						(461)						(2.4)
Total			$	947,636					59.2		%				$	971,437					59.4		%				$	(23,801)					(2.5)		%

2

			September 30, 2026												June 30, 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			$	151,385					9.5		%				$	151,363					9.3		%				$	22					—		%
Residential CMO and MBS(1)			200,760						12.5						207,387						12.7						(6,627)						(3.2)
Commercial CMO and MBS(1)			301,678						18.8						303,089						18.6						(1,411)						(0.5)
Total			$	653,823					40.8		%				$	661,839					40.6		%				$	(8,016)					(1.2)		%
Total investment securities			$	1,601,459					100.0		%				$	1,633,276					100.0		%				$	(31,817)					(1.9)		%

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

Loans Receivable

Loans receivable increased $133.5 million, or 2.3%, during the third quarter of 2026. New loans funded during the third quarter of 2026 were $255.4 million, an increase from new loans funded during the second quarter of 2026 of $162.2 million and new loans funded during the third quarter of 2025 of $174.5 million. Loan prepayments were higher at $133.7 million during the third quarter of 2026, compared to $102.5 million during the second quarter of 2026. Loan payoffs were also higher at $73.4 million during the third quarter of 2026, compared to $49.9 million in the second quarter of 2026.

Commercial and industrial loans increased $10.4 million, or 1.0%, during the third quarter of 2026, due primarily to new loan production of $40.9 million, offset partially by pay downs on outstanding balances. Owner-occupied commercial real estate ("CRE") loans decreased $15.9 million, or 1.3%, during the third quarter, due primarily to pay downs on outstanding balances, offset partially by new loan production of $36.7 million. Non-owner occupied CRE loans increased $56.5 million, or 2.3%, during the quarter, due primarily to new loan production of $122.8 million. Residential real estate loans increased $12.3 million, or 3.5% due primarily to the purchase of a $21.0 million pool of mortgage loans during the third quarter, offset partially by pay downs on outstanding balances. Commercial and multifamily construction loans increased $62.0 million, or 23.9%, during the third quarter, due primarily to advances on current commitments.

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

			September 30, 2026												June 30, 2026												Change
			Balance						% of Total						Balance						% of Total						$						%
			(Dollars in thousands)
Commercial business:
Commercial and industrial			$	1,061,712					18.1		%				$	1,051,269					18.3		%				$	10,443					1.0		%
Owner-occupied CRE			1,211,776						20.6						1,227,674						21.4						(15,898)						(1.3)
Non-owner occupied CRE			2,565,804						43.6						2,509,283						43.6						56,521						2.3
Total commercial business			4,839,292						82.3						4,788,226						83.3						51,066						1.1
Residential real estate			361,177						6.1						348,838						6.1						12,339						3.5
Real estate construction and land development:
Residential			139,669						2.4						136,595						2.4						3,074						2.3
Commercial and multifamily			321,951						5.5						259,947						4.5						62,004						23.9
Total real estate construction and land development			461,620						7.9						396,542						6.9						65,078						16.4
Consumer			219,112						3.7						214,135						3.7						4,977						2.3
Loans receivable			$	5,881,201					100.0		%				$	5,747,741					100.0		%				$	133,460					2.3

3

Deposits

Total deposits increased $148.2 million, or 2.1%, to $7.19 billion at September 30, 2026, from $7.04 billion at June 30, 2026.

Non-maturity deposits increased by $189.6 million, or 3.2%, from June 30, 2026 due primarily to new deposits opened during the third quarter of 2026 as well as an increase in customer balances as is typical in the third quarter of each year. Certificates of deposit declined $41.4 million during the third quarter of 2026 due primarily to the transfer of a $39.3 million relationship to a money market account.

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

			September 30, 2026												June 30, 2026												Change
			Balance						% of Total						Balance						% of Total						$						%
			(Dollars in thousands)
Noninterest demand deposits			$	1,967,073					27.4		%				$	1,972,702					28.0		%				$	(5,629)					(0.3)		%
Interest bearing demand deposits			1,974,016						27.5						1,854,634						26.3						119,382						6.4
Money market accounts			1,667,978						23.2						1,574,835						22.4						93,143						5.9
Savings accounts			563,965						7.8						581,259						8.3						(17,294)						(3.0)
Total non-maturity deposits			6,173,032						85.9						5,983,430						85.0						189,602						3.2
Certificates of deposit			1,013,902						14.1						1,055,276						15.0						(41,374)						(3.9)
Total deposits			$	7,186,934					100.0		%				$	7,038,706					100.0		%				$	148,228					2.1		%

Borrowings

Total borrowings decreased $44.4 million to $121.9 million at September 30, 2026, compared to $166.3 million at June 30, 2026. All outstanding borrowings at September 30, 2026 were with the Federal Home Loan Bank ("FHLB") and mature in the fourth quarter of 2026.

Stockholders' Equity

Total stockholders' equity decreased $25.9 million, or 2.3%, to $1.08 billion at September 30, 2026, compared to $1.11 billion at June 30, 2026. This decrease was due primarily to an increase in other comprehensive loss of $25.3 million due to a change in market rates during the quarter, the repurchase of 341,483 shares of the Company's common stock, for an aggregate purchase price of $10.2 million, under the Company's stock repurchase program, and dividends declared of $10.3 million, offset partially by net income of $18.7 million.

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

			Quarter Ended
			September 30, 2026
			(In thousands)
Balance, beginning of period			$	1,109,692
Net income			18,720
Cash dividends declared on common stock			(10,341)
Common stock repurchased			(10,302)
Other comprehensive loss			(25,276)
Other			1,328
Balance, end of period			$	1,083,821

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

4

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

			September 30, 2026						June 30, 2026
Stockholders' equity to total assets			12.7%						13.2%
Tangible common equity to tangible assets (1)			9.3						9.7
Common equity tier 1 capital ratio (2)			11.9						12.1
Leverage ratio (2)			10.3						10.4
Tier 1 capital ratio (2)			12.2						12.5
Total capital ratio (2)			13.1						13.4

(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 1.04% at September 30, 2026, compared to 1.03% at June 30, 2026. The increase in the ACL as a percentage of loans was due primarily to specific reserves of $998,000 for individually evaluated loans.

During the third quarter of 2026, the Company recorded a $2.3 million provision for credit losses on loans, compared to an $844,000 reversal of provision during the second quarter of 2026. The provision for credit losses on loans was due primarily to loan growth during the quarter. During the third quarter of 2026, the Company recorded a $20,000 provision for credit losses on unfunded commitments, compared to a $77,000 reversal of provision for credit losses on unfunded commitments during the second 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
			September 30, 2026																		June 30, 2026																		September 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			$	59,473					$	1,108					$	60,581					$	60,551					$	1,185					$	61,736					$	52,529					$	740					$	53,269
Provision for (reversal of) credit losses			2,251						20						2,271						(844)						(77)						(921)						1,563						212						1,775
(Net charge-offs) / recoveries			(381)						—						(381)						(234)						—						(234)						(118)						—						(118)
Balance, end of period			$	61,343					$	1,128					$	62,471					$	59,473					$	1,108					$	60,581					$	53,974					$	952					$	54,926

Credit Quality

Classified loans (loans rated substandard or worse) increased $3.0 million from the prior quarter, while the percentage of classified loans to loans receivable remained at 1.8% at September 30, 2026 and June 30, 2026.

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

			September 30, 2026												June 30, 2026
			Balance						% of Total						Balance						% of Total
			(Dollars in thousands)
Risk Rating:
Pass			$	5,634,705					95.9		%				$	5,517,189					96.0		%
Special Mention			138,023						2.3						125,108						2.2
Substandard			108,473						1.8						105,444						1.8
Total			$	5,881,201					100.0		%				$	5,747,741					100.0		%

Nonaccrual loans were $32.1 million at September 30, 2026, compared to $15.5 million at June 30, 2026. Four commercial and industrial loan relationships totaling $12.9 million and three commercial real estate loan relationships totaling $4.2 million were migrated to nonaccrual during the third quarter of 2026.

5

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

			Quarter Ended
			September 30, 2026						June 30, 2026						September 30, 2025
			(Dollars in thousands)
Balance, beginning of period			$	15,510					$	14,958					$	9,865
Additions			17,210						5,988						8,288
Net principal payments			(336)						(280)						(207)
Payoffs			(305)						(5,156)						(137)
Charge-offs			(2)						—						(197)
Balance, end of period			$	32,077					$	15,510					$	17,612
Nonaccrual loans to loans receivable			0.55		%				0.27		%				0.37		%

Liquidity

Total liquidity sources available at September 30, 2026 totaled $3.25 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 September 30, 2026 represented a coverage ratio of 45.2% of total deposits and 114.2% of estimated uninsured deposits.

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

			Quarter Ended
			September 30, 2026						June 30, 2026
			(Dollars in thousands)
On-balance sheet liquidity
Cash and cash equivalents			$	187,067					$	204,375
Unencumbered investment securities available for sale (1)			926,203						949,021
Total on-balance sheet liquidity			$	1,113,270					$	1,153,396
Off-balance sheet liquidity
FRB borrowing availability			$	322,158					$	339,029
FHLB borrowing availability (2)			1,671,170						1,635,593
Fed funds line borrowing availability with correspondent banks			145,000						145,000
Total off-balance sheet liquidity			$	2,138,328					$	2,119,622
Total available liquidity			$	3,251,598					$	3,273,018

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

(2) Includes FHLB total borrowing availability of $1.79 billion at September 30, 2026 based on pledged assets, however, maximum credit capacity was 45% of the Bank's total assets one quarter in arrears or $3.79 billion.

Net Interest Income and Net Interest Margin

Net interest income increased $2.4 million, or 3.3%, during the third quarter of 2026 compared to the second quarter of 2026 due to a $2.5 million increase in total interest income, offset partially by an increase in interest expense of $74,000. The increase in net interest income was primarily due to an increase in the net interest margin.

Net interest margin increased six basis points to 4.05% during the third quarter of 2026, from 3.99% during the second quarter of 2026. The increase in net interest margin was due primarily to the increase in yield on loans and a decrease in the cost of interest bearing deposits.

The yield on interest earning assets increased five basis points to 5.26% for the third quarter of 2026, compared to 5.21% for the second quarter of 2026. The increase was primarily due to an increase in yield on loans.

The yield on loans receivable increased four basis points to 5.76% during the third quarter of 2026, compared to 5.72% during the second quarter of 2026. The increase was due primarily to an increase in rates on loans originated during the third quarter of 2026. Loan yield also benefited from the incremental accretion on purchased loans in both the second and third quarters 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:

6

			Quarter Ended
			September 30, 2026						June 30, 2026						September 30, 2025
Net Interest Margin, excluding incremental accretion on purchased loans, annualized:
Net interest margin			4.05		%				3.99		%				3.64		%
Exclude impact from incremental accretion on purchased loans(2)			(0.07)		%				(0.09)		%				(0.01)		%
Net interest margin, excluding incremental accretion on purchased loans(1)			3.98		%				3.90		%				3.63		%
Loan yield, excluding incremental accretion on purchased loans, annualized:
Loan yield			5.76		%				5.72		%				5.53		%
Exclude impact from incremental accretion on purchased loans(2)			(0.10)						(0.12)						(0.01)
Loan yield, excluding incremental accretion on purchased loans(1)			5.66		%				5.60		%				5.52		%
Incremental accretion on purchased loans(1)			$	1,456					$	1,772					$	123

(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 two basis points to 1.65% for the third quarter of 2026, from 1.67% for the second quarter of 2026. This decrease was primarily due to a decrease in rates on certificates of deposit.

Net interest margin increased 41 basis points to 4.05% during the third quarter of 2026, compared to 3.64% for the same period in the prior year. Net interest income increased $19.9 million, or 34.7%, during the third 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
			September 30, 2026																		June 30, 2026																		September 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)			$	5,817,905					$	84,470					5.76		%				$	5,740,927					$	81,935					5.72		%				$	4,762,648					$	66,422					5.53		%
Taxable securities			1,609,163						14,456						3.56						1,635,979						14,464						3.55						1,314,374						11,102						3.35
Nontaxable securities (3)			15,049						126						3.32						15,439						128						3.33						15,242						138						3.59
Interest earning deposits			121,352						1,139						3.72						124,969						1,147						3.68						166,182						1,846						4.41
Total interest earning assets			7,563,469						100,191						5.26		%				7,517,314						97,674						5.21		%				6,258,446						79,508						5.04		%
Noninterest earning assets			917,141																		920,006																		747,694
Total assets			$	8,480,610																	$	8,437,320																	$	7,006,140
Interest Bearing Liabilities:
Certificates of deposit			$	1,033,482					$	8,157					3.13		%				$	1,090,406					$	8,817					3.24		%				$	955,737					$	8,822					3.66		%
Savings accounts			575,102						296						0.20						591,458						348						0.24						428,256						296						0.27
Interest bearing demand and money market accounts			3,528,494						12,916						1.45						3,444,901						12,226						1.42						2,833,048						11,003						1.54
Total interest bearing deposits			5,137,078						21,369						1.65						5,126,765						21,391						1.67						4,217,041						20,121						1.89

7

			Quarter Ended
			September 30, 2026																		June 30, 2026																		September 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)
Junior subordinated debentures			22,527						437						7.70						22,455						431						7.70						22,239						474						8.46
Borrowings			110,936						1,126						4.03						105,131						1,036						3.95						136,582						1,542						4.48
Total interest bearing liabilities			5,270,541						22,932						1.73		%				5,254,351						22,858						1.74		%				4,375,862						22,137						2.01		%
Noninterest demand deposits			2,000,526																		1,973,038																		1,625,945
Other noninterest bearing liabilities			102,381																		97,753																		112,053
Stockholders’ equity			1,107,162																		1,112,178																		892,280
Total liabilities and stockholders’ equity			$	8,480,610																	$	8,437,320																	$	7,006,140
Net interest income and spread									$	77,259					3.53		%										$	74,816					3.47		%										$	57,371					3.03		%
Net interest margin															4.05		%																3.99		%																3.64		%

(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 $1.4 million, $1.1 million and $1.0 million for the third quarter of 2026, second quarter of 2026 and third quarter of 2025, respectively, and the incremental accretion on purchased loans of $1.5 million, $1.8 million, and $123,000 for the third quarter of 2026, second quarter of 2026 and third 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 decreased $58,000 to $9.3 million during the third quarter of 2026. The decrease was due primarily to a decrease in bank owned life insurance ("BOLI") income.

Noninterest income increased $928,000 during the third quarter of 2026 from the same period in 2025 due primarily 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
			September 30, 2026						June 30, 2026						September 30, 2025						$						%						$						%
			(Dollars in thousands)
Service charges and other fees			$	3,497					$	3,592					$	3,046					$	(95)					(2.6)		%				$	451					14.8		%
Card revenue			2,521						2,595						2,209						(74)						(2.9)						312						14.1
Loss on sale of investment securities			—						(217)						—						217						(100.0)						—						—
Interest rate swap fees			53						3						96						50						1666.7						(43)						(44.8)
BOLI income			1,250						1,485						1,008						(235)						(15.8)						242						24.0
Other income			1,932						1,853						1,966						79						4.3						(34)						(1.7)
Total noninterest income (loss)			$	9,253					$	9,311					$	8,325					$	(58)					(0.6)		%				$	928					11.1		%

Noninterest Expense

Noninterest expense decreased $2.4 million, or 3.7%, to $62.0 million during the third quarter of 2026, compared to $64.3 million in the second quarter of 2026. The decrease was primarily due to a decrease in Merger-related expenses.

Merger-related expenses consisted of severance expense, professional fees, core conversion costs, exit costs related to the consolidation of two branches, closure of one loan production office and one administration location, and contract termination costs. Merger-related expenses incurred in the third quarter of 2026 were $5.2 million compared to $7.5 million in the second quarter of 2026.

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

8

			Quarter Ended												Change
			September 30, 2026						June 30, 2026						$
			(Dollars in thousands)
Compensation and employee benefits			$	669					$	1,481					$	(812)
Occupancy and equipment			152						—						152
Data processing			2,524						4,924						(2,400)
Marketing			126						—						126
Professional services			294						128						166
Other expense			1,420						960						460
Total noninterest expense			$	5,185					$	7,493					$	(2,308)

Noninterest expense increased $20.3 million, or 48.9%, during the third 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's 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
			September 30, 2026						June 30, 2026						September 30, 2025						$						%						$						%
			(Dollars in thousands)
Compensation and employee benefits			$	34,135					$	35,769					$	26,082					$	(1,634)					(4.6)		%				$	8,053					30.9		%
Occupancy and equipment			6,326						6,014						4,665						312						5.2						1,661						35.6
Data processing			8,337						10,218						3,754						(1,881)						(18.4)						4,583						122.1
Marketing			675						437						284						238						54.5						391						137.7
Professional services			1,109						939						1,332						170						18.1						(223)						(16.7)
State/municipal business and use taxes			1,799						1,801						1,235						(2)						(0.1)						564						45.7
Federal deposit insurance premium			947						881						796						66						7.5						151						19.0
Other real estate owned, net			(55)						44						—						(99)						(225.0)						(55)						—
Amortization of intangible assets			2,941						2,957						284						(16)						(0.5)						2,657						935.6
Other expense			5,744						5,264						3,183						480						9.1						2,561						80.5
Total noninterest expense			$	61,958					$	64,324					$	41,615					$	(2,366)					(3.7)		%				$	20,343					48.9		%

Income Tax Expense

Income tax expense increased $385,000 in the third quarter of 2026, compared to the second quarter of 2026 due to higher pre-tax income during the third quarter of 2026.

Income tax expense increased $426,000 in the third quarter of 2026, compared to the same period in 2025, due primarily to an increase in the effective income tax rate during the third quarter of 2026.

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

			Quarter Ended																		Change
			September 30, 2026						June 30, 2026						September 30, 2025						Quarter Over Quarter						Prior Year Quarter
			(Dollars in thousands)
Income before income taxes			$	22,283					$	20,724					$	22,306					$	1,559					$	(23)
Income tax expense			$	3,563					$	3,178					$	3,137					$	385					$	426
Effective income tax rate			16.0		%				15.3		%				14.1		%				0.7		%				1.9		%

Dividends

On October 21, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.25 per share. The dividend is payable on November 18, 2026 to shareholders of record as of the close of business on November 4, 2026.

9

Stock Repurchase Program

On October 21, 2026, the Company's Board of Directors approved a new stock repurchase program, authorizing the repurchase of up to 5% of the Company's outstanding common shares or approximately 2.0 million shares. The number, timing and price of shares repurchased will depend on business and market conditions, and other factors, including opportunities to deploy the Company's capital.

The new stock repurchase program supersedes a prior stock repurchase program, which was authorized in April 2024 and allowed for the buyback of approximately 1.7 million shares. The repurchase allowance under the prior stock repurchase program was substantially completed during the third quarter of 2026.

Earnings Conference Call

The Company will hold a telephone conference call to discuss third quarter of 2026 earnings on Thursday, October 22, 2026 at 9:00 a.m. Pacific time. Participants may register for the call at the following link: https://events.q4inc.com/analyst/562330083?pwd=MlXLXIj8. The call can also be accessed by dialing (833) 461-5787 -- Meeting ID: 562 330 083, a few minutes prior to 9:00 a.m. Pacific time. The conference call will be recorded and will be available for replay through November 5, 2026 by dialing (833) 309-1852 or by visiting the Company website https://www.hf-wa.com/.

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 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 of the U.S. Private Securities Litigation Reform Act of 1995. Such statements often include, among others, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by 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 inherent 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, including as a result of the recent increase in the benchmark federal funds rate by the Federal Reserve, 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,

10

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, financial technology companies, and digital asset service providers; 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 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 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 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 and evolving 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.

11

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollars in thousands, except shares)

			September 30, 2026						June 30, 2026						December 31, 2025
Assets
Cash on hand and in banks			$	103,026					$	102,555					$	52,587
Interest earning deposits			84,041						101,820						180,502
Cash and cash equivalents			187,067						204,375						233,089
Investment securities available for sale, at fair value (amortized cost of $1,028,761, $1,020,125 and $647,505, respectively)			947,636						971,437						607,522
Investment securities held to maturity, at amortized cost (fair value of $577,974, $607,782 and $625,287, respectively)			653,823						661,839						674,107
Total investment securities			1,601,459						1,633,276						1,281,629
Loans receivable			5,881,201						5,747,741						4,783,266
Allowance for credit losses on loans			(61,343)						(59,473)						(52,584)
Loans receivable, net			5,819,858						5,688,268						4,730,682
Other real estate owned			—						755						—
Premises and equipment, net			98,295						98,034						74,690
Federal Home Loan Bank stock, at cost			10,657						12,653						5,163
BOLI			147,600						146,350						105,974
Accrued interest receivable			24,290						23,056						19,280
Prepaid expenses and other assets			305,351						297,501						273,925
Other intangible assets, net			44,328						47,269						1,979
Goodwill			279,029						279,029						240,939
Total assets			$	8,517,934					$	8,430,566					$	6,967,350
Liabilities and Stockholders' Equity
Non-interest bearing deposits			$	1,967,073					$	1,972,702					$	1,597,650
Interest bearing deposits			5,219,861						5,066,004						4,322,549
Total deposits			7,186,934						7,038,706						5,920,199
Borrowings			121,900						166,250						20,000
Junior subordinated debentures			22,570						22,497						22,350
Accrued expenses and other liabilities			102,709						93,421						83,297
Total liabilities			7,434,113						7,320,874						6,045,846
Common stock			698,915						707,889						531,100
Retained earnings			448,178						439,799						421,619
Accumulated other comprehensive loss, net			(63,272)						(37,996)						(31,215)
Total stockholders' equity			1,083,821						1,109,692						921,504
Total liabilities and stockholders' equity			$	8,517,934					$	8,430,566					$	6,967,350
Shares outstanding			40,576,875						40,906,122						33,963,500

12

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share amounts)

			Quarter Ended																		Nine Months Ended
			September 30, 2026						June 30, 2026						September 30, 2025						September 30, 2026						September 30, 2025
Interest Income
Interest and fees on loans			$	84,470					$	81,935					$	66,422					$	242,850					$	196,231
Taxable interest on investment securities			14,456						14,464						11,102						41,490						34,420
Nontaxable interest on investment securities			126						128						138						383						414
Interest on interest earning deposits			1,139						1,147						1,846						3,817						4,309
Total interest income			100,191						97,674						79,508						288,540						235,374
Interest Expense
Deposits			21,369						21,391						20,121						63,507						59,760
Junior subordinated debentures			437						431						474						1,298						1,417
Borrowings			1,126						1,036						1,542						2,441						8,153
Total interest expense			22,932						22,858						22,137						67,246						69,330
Net interest income			77,259						74,816						57,371						221,294						166,044
Provision for (reversal of) credit losses			2,271						(921)						1,775						320						2,782
Net interest income after provision for (reversal of) credit losses			74,988						75,737						55,596						220,974						163,262
Noninterest Income
Service charges and other fees			3,497						3,592						3,046						10,456						8,953
Card revenue			2,521						2,595						2,209						7,219						5,950
Loss on sale of investment securities, net			—						(217)						—						(217)						(10,741)
Interest rate swap fees			53						3						96						56						115
BOLI income			1,250						1,485						1,008						3,854						3,206
Gain on sale of other assets, net			—						—						—						—						8
Other income			1,932						1,853						1,966						5,895						6,254
Total noninterest income (loss)			9,253						9,311						8,325						27,263						13,745
Noninterest Expense
Compensation and employee benefits			34,135						35,769						26,082						103,876						77,348
Occupancy and equipment			6,326						6,014						4,665						17,670						14,431
Data processing			8,337						10,218						3,754						23,648						11,317
Marketing			675						437						284						1,495						955
Professional services			1,109						939						1,332						4,890						3,188
State/municipal business and use taxes			1,799						1,801						1,235						5,274						3,660
Federal deposit insurance premium			947						881						796						2,865						2,418
Other real estate owned, net			(55)						44						—						(7)						—
Amortization of intangible assets			2,941						2,957						284						7,956						889
Other expense			5,744						5,264						3,183						15,166						9,877
Total noninterest expense			61,958						64,324						41,615						182,833						124,083
Income before income taxes			22,283						20,724						22,306						65,404						52,924
Income tax expense			3,563						3,178						3,137						10,191						7,629
Net income			$	18,720					$	17,546					$	19,169					$	55,213					$	45,295
Basic earnings per share			$	0.46					$	0.42					$	0.56					$	1.37					$	1.33
Diluted earnings per share			$	0.46					$	0.42					$	0.55					$	1.36					$	1.31
Dividends declared per share			$	0.25					$	0.24					$	0.24					$	0.73					$	0.72
Average shares outstanding - basic			40,740,742						41,079,781						33,953,810						40,175,502						34,009,010
Average shares outstanding - diluted			41,213,105						41,541,763						34,413,386						40,642,491						34,481,877

13

HERITAGE FINANCIAL CORPORATION

FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands)

Average Balances, Yields, and Rates Paid:

			Nine Months Ended September 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)			$	5,658,741					$	242,850					5.74		%				$	4,774,926					$	196,231					5.49		%
Taxable securities			1,577,611						41,490						3.52						1,371,957						34,420						3.35
Nontaxable securities(3)			15,381						383						3.33						15,406						414						3.59
Interest earning deposits			139,494						3,817						3.66						130,253						4,309						4.42
Total interest earning assets			7,391,227						288,540						5.22		%				6,292,542						235,374						5.00		%
Noninterest earning assets			895,082																		759,206
Total assets			$	8,286,309																	$	7,051,748
Interest Bearing Liabilities:
Certificates of deposit			$	1,062,740					$	25,788					3.24		%				$	971,933					$	27,841					3.83		%
Savings accounts			569,115						959						0.23						426,767						877						0.27
Interest bearing demand and money market accounts			3,426,293						36,760						1.43						2,770,162						31,042						1.50
Total interest bearing deposits			5,058,148						63,507						1.68						4,168,862						59,760						1.92
Junior subordinated debentures			22,455						1,298						7.73						22,164						1,417						8.55
Borrowings			81,367						2,441						4.01						233,504						8,153						4.67
Total interest bearing liabilities			5,161,970						67,246						1.74		%				4,424,530						69,330						2.10		%
Noninterest demand deposits			1,936,229																		1,620,047
Other noninterest bearing liabilities			98,436																		127,505
Stockholders’ equity			1,089,674																		879,666
Total liabilities and stockholders’ equity			$	8,286,309																	$	7,051,748
Net interest income and spread									$	221,294					3.48		%										$	166,044					2.90		%
Net interest margin															4.00		%																3.53		%

(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 $3.2 million and $2.7 million for the nine months ended September 30, 2026 and 2025, respectively, and incremental accretion on purchased loans of $4.9 million and $352,000, for the nine months ended September 30, 2026 and 2025, respectively.

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

14

HERITAGE FINANCIAL CORPORATION

FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands)

Nonperforming Assets and Credit Quality Metrics:

			Quarter Ended																		Nine Months Ended
			September 30, 2026						June 30, 2026						September 30, 2025						September 30, 2026						September 30, 2025
Allowance for Credit Losses on Loans:
Balance, beginning of period			$	59,473					$	60,551					$	52,529					$	52,584					$	52,468
Initial ACL recorded for PSL and PCD loans acquired during the period			—						—						—						9,339						—
(Reversal of) provision for credit losses on loans			2,251						(844)						1,563						587						2,417
Charge-offs:
Commercial business			(186)						(180)						(195)						(766)						(871)
Residential real estate			—						—						(27)						(64)						(27)
Consumer			(219)						(89)						(152)						(427)						(410)
Total charge-offs			(405)						(269)						(374)						(1,257)						(1,308)
Recoveries:
Commercial business			3						4						219						11						263
Residential real estate			—						2						1						2						1
Consumer			21						29						36						77						133
Total recoveries			24						35						256						90						397
Net (charge-offs) recoveries			(381)						(234)						(118)						(1,167)						(911)
Balance, end of period			$	61,343					$	59,473					$	53,974					$	61,343					$	53,974
Net charge-offs on loans to average loans receivable annualized			0.03		%				0.02		%				0.01		%				0.03		%				0.03		%

			September 30, 2026						June 30, 2026						December 31, 2025
Nonperforming Assets:
Nonaccrual loans:
Commercial business			$	24,125					$	7,437					$	6,886
Residential real estate			1,321						1,338						1,196
Real estate construction and land development			6,321						6,420						12,408
Consumer			310						315						486
Total nonaccrual loans			32,077						15,510						20,976
Accruing loans past due 90 days or more			948						—						194
Total nonperforming loans			33,025						15,510						21,170
Other real estate owned			—						755						—
Nonperforming assets			$	33,025					$	16,265					$	21,170
ACL on loans to:
Loans receivable			1.04		%				1.03		%				1.10		%
Nonaccrual loans			191.24		%				383.45		%				250.69		%
Nonaccrual loans to loans receivable			0.55		%				0.27		%				0.44		%
Nonperforming loans to loans receivable			0.56		%				0.27		%				0.44		%
Nonperforming assets to total assets			0.39		%				0.19		%				0.30		%

15

HERITAGE FINANCIAL CORPORATION

QUARTERLY FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands, except per share amounts)

			Quarter Ended
			September 30, 2026						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025
Earnings:
Net interest income			$	77,259					$	74,816					$	69,219					$	58,361					$	57,371
Provision for (reversal of) credit losses			2,271						(921)						(1,030)						(814)						1,775
Noninterest income			9,253						9,311						8,699						7,987						8,325
Noninterest expense			61,958						64,324						56,551						41,483						41,615
Net income			18,720						17,546						18,947						22,237						19,169
Basic earnings per share			$	0.46					$	0.42					$	0.49					$	0.66					$	0.56
Diluted earnings per share			$	0.46					$	0.42					$	0.48					$	0.65					$	0.55
Adjusted diluted earnings per share (1)			$	0.55					$	0.57					$	0.59					$	0.66					$	0.56
Average Balances:
Loans receivable			$	5,817,905					$	5,740,927					$	5,412,943					$	4,770,300					$	4,762,648
Total investment securities			1,624,212						1,651,418						1,502,005						1,301,526						1,329,616
Total interest earning assets			7,563,469						7,517,314						7,087,671						6,223,303						6,258,446
Total assets			8,480,610						8,437,320						7,935,002						6,954,110						7,006,140
Total interest bearing deposits			5,137,078						5,126,765						4,908,086						4,250,589						4,217,041
Total noninterest demand deposits			2,000,526						1,973,038						1,833,284						1,635,539						1,625,945
Stockholders' equity			1,107,162						1,112,178						1,049,044						911,454						892,280
Financial Ratios:
Return on average assets (2)			0.88		%				0.83		%				0.97		%				1.27		%				1.09		%
Adjusted return on average assets (1)(2)			1.07		%				1.12		%				1.18		%				1.29		%				1.11		%
Return on average common equity (2)			6.71						6.33						7.32						9.68						8.52
Return on average tangible common equity (1)(2)			10.67						10.17						11.14						13.33						11.86
Adjusted return on average tangible common equity (1)(2)			12.75						13.29						13.36						13.51						12.16
Efficiency ratio			71.6						76.5						72.6						62.5						63.3
Adjusted efficiency ratio (1)			62.2						63.9						63.3						61.5						61.9
Noninterest expense to average total assets (2)			2.90						3.06						2.89						2.37						2.36
Adjusted noninterest expense to average total assets(1)(2)			2.52						2.56						2.52						2.33						2.30
Net interest spread (2)			3.53						3.47						3.43						3.15						3.03
Net interest margin (2)			4.05						3.99						3.96						3.72						3.64

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

(2) Annualized.

16

HERITAGE FINANCIAL CORPORATION

QUARTERLY FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands, except per share amounts)

			As of or for the Quarter Ended
			September 30, 2026						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025
Select Balance Sheet:
Total assets			$	8,517,934					$	8,430,566					$	8,498,404					$	6,967,350					$	7,011,879
Loans receivable			5,881,201						5,747,741						5,722,238						4,783,266						4,769,160
Total investment securities			1,601,459						1,633,276						1,669,411						1,281,629						1,312,857
Total deposits			7,186,934						7,038,706						7,248,537						5,920,199						5,857,464
Noninterest demand deposits			1,967,073						1,972,702						2,066,383						1,597,650						1,617,909
Stockholders' equity			1,083,821						1,109,692						1,115,691						921,504						904,064
Financial Measures:
Book value per share			$	26.71					$	27.13					$	27.05					$	27.13					$	26.62
Tangible book value per share (1)			18.74						19.15						19.07						19.98						19.46
Stockholders' equity to total assets			12.7		%				13.2		%				13.1		%				13.2		%				12.9		%
Tangible common equity to tangible assets (1)			9.3						9.7						9.6						10.1						9.8
Loans to deposits ratio			81.8						81.7						78.9						80.8						81.4
Regulatory Capital Ratios:(2)
Common equity tier 1 capital ratio			11.9		%				12.1		%				12.2		%				12.7		%				12.4		%
Leverage ratio			10.3						10.4						10.3						10.8						10.5
Tier 1 capital ratio			12.2						12.5						12.5						13.1						12.8
Total capital ratio			13.1						13.4						13.5						14.1						13.8
Credit Quality Metrics:
ACL on loans to:
Loans receivable			1.04		%				1.03		%				1.06		%				1.10		%				1.13		%
Nonaccrual loans			191.2						383.4						404.8						250.7						306.5
Nonaccrual loans to loans receivable			0.55						0.27						0.26						0.44						0.37
Nonperforming loans to loans receivable			0.56						0.27						0.26						0.44						0.44
Nonperforming assets to total assets			0.39						0.19						0.19						0.30						0.30
Net charge-offs on loans to average loans receivable (3)			0.03						0.02						0.04						0.04						0.01
Criticized Loans by Credit Quality Rating:
Special mention			$	138,023					$	125,108					$	103,699					$	71,122					$	100,160
Substandard			108,473						105,444						121,331						116,823						94,377
Other Metrics:
Number of branches			64						66						65						50						50
Deposits per branch			$	112,296					$	106,647					$	111,516					$	118,404					$	117,149
Average number of full-time equivalent employees			978						976						905						742						749
Average assets per full-time equivalent employee			8,671						8,645						8,768						9,372						9,354

(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.

17

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.

			September 30, 2026						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025
Diluted Earnings per Share and Adjusted Diluted Earnings per Share:
Net income (GAAP)			$	18,720					$	17,546					$	18,947					$	22,237					$	19,169
Exclude loss on sale of investment securities, net			—						217						—						—						—
Exclude merger-related costs			5,185						7,493						5,178						385						635
Exclude tax effect of adjustment			(1,089)						(1,619)						(1,087)						(81)						(133)
Adjusted net income (non-GAAP)			$	22,816					$	23,637					$	23,038					$	22,541					$	19,671
Average number of diluted shares outstanding			41,213,105						41,541,763						39,104,569						34,405,793						34,413,386
Diluted earnings per share (GAAP)			$	0.46					$	0.42					$	0.48					$	0.65					$	0.55
Adjusted diluted earnings per share (non-GAAP)			$	0.55					$	0.57					$	0.59					$	0.66					$	0.56

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.

			September 30, 2026						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025
Adjusted Return on Average Assets ("ROAA"):
Net income (GAAP)			$	18,720					$	17,546					$	18,947					$	22,237					$	19,169
Exclude (gain) loss on sale of investment securities, net			—						217						—						—						—
Exclude merger-related costs			5,185						7,493						5,178						385						635
Exclude tax effect of adjustments			(1,089)						(1,619)						(1,087)						(81)						(133)
Adjusted net income (non-GAAP)			$	22,816					$	23,637					$	23,038					$	22,541					$	19,671
Average ("Avg") total assets			$	8,480,610					$	8,437,320					$	7,935,002					$	6,954,110					$	7,006,140
ROAA, annualized (GAAP)			0.88%						0.83%						0.97%						1.27%						1.09%
Adjusted ROAA, annualized (non-GAAP)			1.07%						1.12%						1.18%						1.29%						1.11%

18

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.

			September 30, 2026						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025
Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share:
Total stockholders' equity (GAAP)			$	1,083,821					$	1,109,692					$	1,115,691					$	921,504					$	904,064
Exclude intangible assets			(323,357)						(326,298)						(329,255)						(242,918)						(243,203)
Tangible common equity (non-GAAP)			$	760,464					$	783,394					$	786,436					$	678,586					$	660,861
Total assets (GAAP)			$	8,517,934					$	8,430,566					$	8,498,404					$	6,967,350					$	7,011,879
Exclude intangible assets			(323,357)						(326,298)						(329,255)						(242,918)						(243,203)
Tangible assets (non-GAAP)			$	8,194,577					$	8,104,268					$	8,169,149					$	6,724,432					$	6,768,676
Stockholders' equity to total assets (GAAP)			12.7		%				13.2		%				13.1		%				13.2		%				12.9		%
Tangible common equity to tangible assets (non-GAAP)			9.3		%				9.7		%				9.6		%				10.1		%				9.8		%
Shares outstanding			40,576,875						40,906,122						41,249,873						33,963,500						33,956,738
Book value per share (GAAP)			$	26.71					$	27.13					$	27.05					$	27.13					$	26.62
Tangible book value per share (non-GAAP)			$	18.74					$	19.15					$	19.07					$	19.98					$	19.46

19

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
			September 30, 2026						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025
Return on Average Tangible Common Equity, annualized:
Net income (GAAP)			$	18,720					$	17,546					$	18,947					$	22,237					$	19,169
Add amortization of intangible assets			2,941						2,957						2,058						285						284
Exclude tax effect of adjustment			(618)						(621)						(432)						(60)						(60)
Tangible net income (non-GAAP)			$	21,043					$	19,882					$	20,573					$	22,462					$	19,393
Tangible net income (non-GAAP)			$	21,043					$	19,882					$	20,573					$	22,462					$	19,393
Exclude loss on sale of investment securities, net			—						217						—						—						—
Exclude merger-related costs			5,185						7,493						5,178						385						635
Exclude tax effect of adjustment			(1,089)						(1,619)						(1,087)						(81)						(133)
Adjusted tangible net income (non-GAAP)			$	25,139					$	25,973					$	24,664					$	22,766					$	19,895
Average stockholders' equity (GAAP)			$	1,107,162					$	1,112,178					$	1,049,044					$	911,454					$	892,280
Exclude average intangible assets			(325,085)						(328,166)						(300,391)						(243,069)						(243,350)
Average tangible common stockholders' equity (non-GAAP)			$	782,077					$	784,012					$	748,653					$	668,385					$	648,930
Return on average common equity, annualized (GAAP)			6.71		%				6.33		%				7.32		%				9.68		%				8.52		%
Return on average tangible common equity, annualized (non-GAAP)			10.67		%				10.17		%				11.14		%				13.33		%				11.86		%
Adjusted return on average tangible common equity, annualized (non-GAAP)			12.75		%				13.29		%				13.36		%				13.51		%				12.16		%

20

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
			September 30, 2026						June 30, 2026						March 31, 2026						December 31, 2025						September 30, 2025
Adjusted Efficiency Ratio and Adjusted Noninterest Expense to Average Assets Ratio:
Total noninterest expense (GAAP)			$	61,958					$	64,324					$	56,551					$	41,483					$	41,615
Exclude merger-related costs			5,185						7,493						5,178						385						635
Exclude amortization of intangible assets			2,941						2,957						2,058						285						284
Adjusted noninterest expense (non-GAAP)			$	53,832					$	53,874					$	49,315					$	40,813					$	40,696
Net interest income (GAAP)			$	77,259					$	74,816					$	69,219					$	58,361					$	57,371
Total noninterest income (GAAP)			$	9,253					$	9,311					$	8,699					$	7,987					$	8,325
Exclude loss on sale of investment securities, net			—						217						—						—						—
Adjusted total noninterest income (non-GAAP)			$	9,253					$	9,528					$	8,699					$	7,987					$	8,325
Efficiency ratio (GAAP)			71.6		%				76.5		%				72.6		%				62.5		%				63.3		%
Adjusted efficiency ratio (non-GAAP)			62.2		%				63.9		%				63.3		%				61.5		%				61.9		%
Average Total assets			$	8,480,610					$	8,437,320					$	7,935,002					$	6,954,110					$	7,006,140
Noninterest expense to average assets (GAAP) (1)			2.90		%				3.06		%				2.89		%				2.37		%				2.36		%
Adjusted noninterest expense to average assets (non-GAAP) (1)			2.52		%				2.56		%				2.52		%				2.33		%				2.30		%

(1) Annualized.

21

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
			September 30, 2026						June 30, 2026						September 30, 2025
			(Dollar amounts in thousands)
Loan yield, excluding incremental accretion on purchased loans, annualized:
Interest and fees on loans (GAAP)			$	84,470					$	81,935					$	66,422
Exclude incremental accretion on purchased loans			1,456						1,772						123
Adjusted interest and fees on loans (non-GAAP)			$	83,014					$	80,163					$	66,299
Average loans receivable, net (GAAP)			$	5,817,905					$	5,740,927					$	4,762,648
Loan yield, annualized (GAAP)			5.76		%				5.72		%				5.53		%
Loan yield, excluding incremental accretion on purchased loans, annualized (non-GAAP)			5.66		%				5.60		%				5.52		%
Net Interest Margin, excluding incremental accretion on purchased loans, annualized:
Net interest income before provision (GAAP)			$	77,259					$	74,816					$	57,371
Exclude incremental accretion on purchased loans			1,456						1,772						123
Adjusted net interest income before provision (non-GAAP)			$	75,803					$	73,044					$	57,248
Average Interest earning assets (GAAP)			$	7,563,469					$	7,517,314					$	6,258,446
Net interest margin (GAAP)			4.05		%				3.99		%				3.64		%
Net interest margin, excluding incremental accretion on purchased loans (non-GAAP)			3.98		%				3.90		%				3.63		%

22

INVESTOR PRESENTATION Q3 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 of the U.S. Private Securities Litigation Reform Act of 1995. Such statements often include, among others, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of the Company. These statements are often, but not always, identified by 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 inherent 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, including as a result of the recent increase in the benchmark federal funds rate by the Federal Reserve, 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, financial technology companies, and digital asset service providers; • 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 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 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 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 and evolving 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 September 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 September 30, 2026, unless otherwise indicated.

HERITAGE FINANCIAL CORPORATION OVERVIEW

4 OVERVIEW General Overview Nasdaq symbol HFWA Stock price(2) $27.88 Market capitalization(2) $1.1 billion Headquarters Olympia, WA # of branches 64 Year established 1927 Q3 2026 Financial Highlights Assets $8.5 billion Deposits $7.2 billion Loans receivable $5.9 billion Net income $18.7 million Net interest margin 4.05% ROAE(3) 6.71% ROATCE(1)(4) 10.67% Adjusted ROATCE(1)(4) 12.75% Efficiency ratio 71.6% Adjusted efficiency ratio(1) 62.2% Leverage ratio 10.3% Total capital ratio 13.1% Certain locations of branches overlap on the map. (1) Represents a non-GAAP financial measure (2) Market information as of October 5, 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 Heritage Branch

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, 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, one branch in 2023 and two branches in 2026 as part of the Olympic Bancorp, Inc acquisition. Generate stable profitability and risk adjusted returns Ÿ Adjusted return on average tangible common equity(1) ("ROATCE") averaged 11.9% from 2023 to 2025. Ÿ Five-year growth in tangible book value(1) of $1.77, or 10.4%, to $18.74 at September 30, 2026 from $16.97 at September 30, 2021. Dividend payments totaled $4.74 during this same period. 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 September 30, 2026 Focus on core deposits to increase franchise value over the long term Ÿ 27.4% noninterest demand deposits to total deposits at September 30, 2026 Ÿ 1.19% cost of total deposits; top 11% performance among US publicly traded banks in Q2 2026 Engage in proactive capital management Ÿ History of increasing regular dividends and utilizing special dividends to manage capital Ÿ Active share repurchase program with 2026 share repurchases of $20.1 million through Q3 2026 Ÿ Strong capital ratios: leverage ratio(3) = 10.3%; total capital ratio(3) = 13.1% (1) Represents a non-GAAP financial measure (2) Comparable cost of total deposits provided by S&P Global Market Intelligence for the second 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% 4.9% 1.1% 13.1% 3.3% 7.8% 12.9% 4.3% 2.6% 12.7% 4.2% 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 Deposits by MSA $2,758 $972 $832 $517 $472 $377 $230 $163 $176 $148 $120 $97 $325 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 $3,066 $811 $244 $186 $179 $138 $107 $102 $1,048 Seattle-Tacoma-Bellevue WA Portland-Vancouver-Hillsboro OR-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 – 11 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 $8,518 $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 $26.71 $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 $18.74 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 Q3 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 $165 $170 $209 $214 $219 $403 $359 $361 $349 $361 $479 $343 $412 $397 $462 $843 $818 $1,059 $1,051 $1,062$1,003 $1,035 $1,214 $1,228 $1,212 $1,909 $2,058 $2,466 $2,509 $2,566 Consumer Residential real estate Construction & land development Commercial and Industrial (C&I) Owner-occupied CRE Non-owner occupied CRE 2024 2025 Q1 2026 Q2 2026 Q3 2026 New Loan Commitments* $24 $17 $19 $33 $29 $141 $63 $71 $141 $142 $94 $75 $37 $98 $70 $81 $117 $58 $100 $176 Consumer Construction & land development Commercial and Industrial (C&I) Commercial Real Estate (CRE) Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 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% 31.0% 53.8% 70.2% 57.3% 58.4% 54.3% 56.1% 31.1% 31.6% 34.4% 34.1% 34.5% 34.9% Utilization Rate - Consumer LOCs Utilization Rate - Construction LOCs Utilization Rate - C&I LOCs 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 Construction Commitments $769 $682 $599 $706 $731 $824 $414 $479 $343 $412 $397 $462 $355 $203 $256 $294 $334 $362 Outstanding Balance Available Credit 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 LINE OF CREDIT ("LOC") UTILIZATION

14 COMMERCIAL LOAN EXPOSURE Commercial Business Loans by Industry Exposure Industry Amount WARR at 09/30/26 Real estate, rental and leasing $2,765 4.5 Health care and social assistance 449 4.4 Accommodation and food services 198 5.2 Retail trade 131 4.6 Construction 195 5.2 Other services (except Public administration) 155 4.7 Manufacturing 112 4.8 All other industries 834 4.5 Total $4,839 4.6 CRE Loans only by Collateral Type Collateral Type Amount WARR at 09/30/26 Office $724 4.3 Industrial 677 4.6 Retail store / shopping center 450 4.6 Multi-family 634 4.6 Mixed use property 160 4.6 Motel / hotel 129 5.2 Single purpose 168 4.7 Warehouse 136 4.6 Mini-storage 249 4.2 Recreational / school 86 4.7 Other 364 4.5 Total $3,777 4.5 WARR = Weighted average risk rating Categorized by NAICS code. Office - Owner-occupied CRE 8.8% Office - Non-owner occupied CRE 10.4% Industrial 17.9% Retail store / shopping center 11.9% Multi-family 16.8% Mixed use property 4.2% Motel / hotel 3.4% Single purpose 4.4% Warehouse 3.6% Mini-storage 6.6% Recreational / school 2.3% Other 9.7% Real estate, rental and leasing 57.1% Health care and social assistance 9.3% Accommodation and food services 4.1% Retail trade 2.7% Construction 4.0% Other Services (except Public administration) 3.2% Manufacturing 2.3% All other industries 17.3%

15 CHANGES IN LOANS RECEIVABLE $5,748 $255 $(134) $(73) $85 $5,881 Loans receivable at June 30, 2026 Loans originated Prepayments Maturities / Payoffs Net advances/ payments Loans receivable at September 30, 2026 $4,783 $954 $515 $(309) $(170) $108 $5,881 Loans receivable at December 31, 2025 Loans acquired Loans originated Prepayments Payoffs Net advances/ payments Loans receivable at September 30, 2026 Change in loans - Q3 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% 0.01% 0.04% 0.04% 0.02% 0.03% 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 (0.03)% 0.00% 0.03% 0.05% 0.08% Nonaccrual Loans $4 $4 $21 $15 $16 $32 Nonaccrual loans Nonaccrual loans to loans receivable 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 0.10% 0.08% 0.44% 0.26% 0.27% 0.55% NONACCRUAL LOANS AND NET CHARGE-OFFS

17 CRITICIZED LOANS $150 $179 $188 $225 $231 $246 $65 $64 $96 $106 $90 $76 $80 $111 $71 $104 $125 $138 Substandard - nonaccrual Substandard - accrual Special mention 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 Criticized Loans by Loan Segment Commercial & industrial 38.8% Owner- occupied CRE 14.0% Non-owner occupied CRE 33.7% Residential real estate 0.9% Construction & land development 12.0% Consumer 0.6% Criticized Loans by Collateral Type Motel/Hotel 7.4% Office 7.7% Multi-Family 8.4% Retail Store/Shopping Center 9.0%Mixed Use Property 6.2% Elder Care 3.7% Farm-Bldgs/Land 4.2% Industrial 4.0% Duplex/Tri-Plex/4-Plex 0.4% Other CRE 15.9% Non-CRE 33.1% $4 $4 $21 $15 $16 $32

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% 4.01% 2.05% 3.37% 2.63% 1.96% 2.27% 2.66% 3.22% 3.05% Heritage Peer Median 2019 2020 2021 2022 2023 2024 2025 Q2 2026 YTD Net Charge-offs to Average Loans 0.09% 0.07% 0.01% (0.03)% (0.01)% 0.06% 0.03% 0.03% 0.08% 0.05% 0.02% 0.01% 0.06% 0.06% 0.07% 0.08% Heritage Peer Median 2019 2020 2021 2022 2023 2024 2025 Q2 2026 YTD (1) Criticized loans includes loans graded special mention or worse (2) Peer Median is the median of 19 identified peer banks and is as of June 30, 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 $61,343 1.11% 1.09% 1.10% 1.06% 1.03% 1.04% ACL on loans ($) ACL on loans / Loans (%) 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 ALLOWANCE FOR CREDIT LOSSES ("ACL") ON LOANS $59,473 $1,519 $(547) $(100) $998 $61,343 June 30, 2026 Change in loan balance Change in collective rate Change in rate and balance Individually evaluated loans September 30, 2026 Change in ACL on Loans - Q3 2026 Dollars in thousands

20 Average Deposit Balances and Cost of Total Deposits $5,706 $5,618 $5,813 $6,994 $5,843 $5,886 $6,741 $7,100 $7,138 0.69% 1.34% 1.36% 1.21% 1.37% 1.32% 1.25% 1.21% 1.19% 1.89% 1.83% 1.71% 1.67% 1.65% 1.03% 1.90% 1.89% 1.68% Average deposits Cost of total deposits Cost of int-bearing deposits 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 DEPOSITS Deposit Composition 30.6% 29.1% 27.0% 28.5% 28.0% 27.4% 28.7% 25.8% 27.5% 25.7% 26.3% 27.5% 19.5% 20.5% 22.5% 21.9% 22.4% 23.2% 8.7% 7.4% 7.1% 8.4% 8.3% 7.8% 12.4% 17.2% 15.9% 15.5% 15.0% 14.1% Noninterest demand deposits Interest bearing demand deposits Money market accounts Savings accounts Certificates of deposit 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026

21 DEPOSIT COMPOSITION Customer Deposits by Relationship Size $1,059 $484 $1,594 $1,825 $2,225 Over $10MM $5MM-$10MM $1MM-5MM $250K-$1MM Less than $250K Consumer Accounts vs. Business Accounts 27% 59% 14% Consumer Commercial CDs Insured vs. Uninsured 40% 60% Insured Uninsured Deposit portfolio as of September 30, 2026: • Majority of deposits are to customers with relationships of $1 million or less. • Uninsured deposits at 40% 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 $1,601 $1,313 $1,282 $1,669 $1,633 $1,601$178 $33 $88 $406 $0 $3 $316 $44 $46 3.02% 3.33% 3.33% 3.51% 3.35% 3.26% 3.43% 3.54% 3.56% Portfolio yield New purchases 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 INVESTMENT PORTFOLIO Portfolio Duration 4.85 4.55 4.30 4.20 3.37 2.33 3.87 3.42 4.48 4.30 4.02 4.31 4.20 4.18 3.19 5.04 3.44 Duration - total portfolio Duration - new purchases only (1) 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 (1) No investments were purchased during Q3 2025

23 $47 $46 $43 $49 $43 $76 $101 $69 $69 $40 $41 $58 $33 $32 $30 $35 $30 $63 $89 $57 $58 $29 $31 $48 $14 $14 $13 $14 $13 $13 $12 $12 $11 $11 $10 $10 Interest Principal Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Q1 2028 Q2 2028 Q3 2028 Q4 2028 Q1 2029 Q2 2029 Q3 2029 INVESTMENT CASHFLOWS Investment cashflows(1) are estimated to be $682 million through Q3 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 30.9% Commercial CMO and MBS 47.8% Available for sale ("AFS") and held to maturity ("HTM") investment securities percentages are based on fair value as of September 30, 2026 unless otherwise noted Strong Credit Quality of Portfolio: AFS Securities • 90.9% of AFS in U.S. government and agency securities • Only 2.4% 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 5.8% Residential CMO and MBS 51.9% Commercial CMO and MBS 36.8% Corporate obligations 2.4% Other asset-backed securities 1.9%

25 Net Interest Margin 3.56% 3.31% 3.58% 4.00% 3.64% 3.72% 3.96% 3.99% 4.05% 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 NET INTEREST MARGIN Quarterly Change in Net Interest Margin 3.99% 0.06% (0.01)% —% 0.01% —% 4.05% QTD Q2 2026 Loans Investments Interest earning deposits Deposits Borrowings QTD Q3 2026 Net Interest Income $225,155 $209,364 $224,405 $221,294 $57,371 $58,361 $69,219 $74,816 $77,259 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026

26 Fixed Rate Loans • $3.0 billion in total Adjustable Rate Loans - Repricing Schedule $1,285 $144 $189 $349 $357 $457 $91 6.67% 5.09% 6.09% 6.17% 6.11% 6.15% 5.36% 6.77% 7.40% 7.27% 7.31% 7.39% 7.28% 7.36% 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 September 30, 2026 and repricing period signifies the sooner of the next scheduled reprice date or maturity. (2) Weighted Average Rate if Repriced as of September 30, 2026 and assumes same index and margin. Adjustable Rate Loans • $2.9 billion in total • 54% tied to FHLB index, 23% tied to Prime, 23% tied to SOFR Fixed Rate Loans - Maturity Schedule $96 $202 $323 $314 $374 $329 $1,366 5.15% 5.29% 5.48% 5.42% 4.97% 4.67% 4.65% 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% 0.89% 1.09% 1.27% 0.97% 0.83% 0.88% 0.99% 0.88% 1.10% 1.12% 1.11% 1.29% 1.18% 1.12% 1.07% ROAA Adjusted ROAA (1) 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Noninterest Expense/Avg. Assets 2.30% 2.20% 2.32% 2.53% 2.30% 2.33% 2.52% 2.56% 2.52% 2.36% 2.37% 2.89% 3.06% 2.90% 2.33% 2.22% 2.36% 2.95% Noninterest Expense / Avg. Assets Adjusted Noninterest Expense / Avg. Assets (1) 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 ROAA = Return on average assets (1) Represents a non-GAAP financial measure

28 $61.8 $43.3 $67.5 $55.2 $70.9 $62.9 $77.3 $69.5 Net income Adjusted Net income (1) 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 $19.2 $22.2 $18.9 $17.5 $18.7 $19.7 $22.5 $23.0 $23.6 $22.8 PROFITABILITY TRENDS ROAE, ROATCE(1) and Adjusted ROATCE(1) Net Income and Adjusted Net Income(1), in millions 12.76% 10.53% 12.15% 13.13% 12.16% 13.51% 13.36% 13.29% 12.75% 11.15% 7.31% 10.63% 10.65% 11.86% 13.33% 11.14% 10.17% 10.67% 7.55% 5.06% 7.61% 6.77% 8.52% 9.68% 7.32% 6.33% 6.71% ROAE ROATCE (1) Adjusted ROATCE (1) 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 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% 12.7% 8.8% 9.0% 10.1% 9.6% 9.7% 9.3% Stockholders' equity to total assets (GAAP) Tangible common equity to tangible assets(1) 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 12.9% 12.0% 12.7% 12.2% 12.1% 11.9% 10.0% 10.0% 10.8% 10.3% 10.4% 10.3% 14.1% 13.3% 14.1% 13.5% 13.4% 13.1% Total Risk Based Capital Tier 1 Leverage Ratio Common Equity Tier 1 2023 2024 2025 Q1 2026 Q2 2026 Q3 2026 Regulatory Capital Ratios(2)

30 LIQUIDITY POSITION (1) Includes FHLB borrowing availability of $1.79 billion at September 30, 2026 based on pledged assets, however, maximum credit capacity is 45% of the Bank's total assets one quarter in arrears or $3.79 billion Liquidity position at September 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 $2,509 $2,617 $3,202 $3,273 $3,251 $1,141 $1,286 $1,469 $1,636 $1,671 $347 $346 $342 $339 $322$631 $607 $978 $949 $926 $245 $233 $268 $204 $187 $145 $145 $145 $145 $145 100.6% 107.7% 113.0% 118.9% 114.2% 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 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026

SHAREHOLDER RETURN

32 TOTAL SHAREHOLDER RETURN Stock Summary(2) Ticker HFWA Exchange Nasdaq Stock price $27.88 Market capitalization (in millions) $1,140.7 Dividend yield (regular dividend only) 3.59 % Average Daily Volume (3 month) Average daily volume (shares) 296,387 Average daily volume ($000s) $8,263 52-Week High and Low Price 52-week high (July 16, 2026) $31.25 52-week low (November 18, 2025) $21.32 Per Share Tangible book value per share(1) $18.74 EPS - 2026E $2.34 EPS - 2027E $2.64 Number of research analysts 6 Valuation Ratios Price / Tangible book value(1) 148.8 % Price / 2026E EPS 11.9x Price / 2027E EPS 10.6x Dividends Per Share Declared(3) 0.61 0.72 0.84 0.80 0.81 0.84 0.88 0.92 0.96 0.98 $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 $0.25 $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 October 5, 2026 and earnings per share and valuation ratios are based on analysts consensus (3) Dividend information as of October 21, 2026 $2.01 $1.80 $2.24 $1.75 $1.24 $1.96 $0.56 $0.66 $0.59 $0.57 $0.55 $0.55 $0.65 $0.48 $0.42 $0.46 Diluted EPS Adjusted Diluted EPS(1) 2023 2024 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 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 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Adjusted Net Income and Adjusted Return on Average Assets ("ROAA"): Net income (GAAP) $ 61,755 $ 43,258 $ 67,532 $ 55,213 $ 19,169 $ 22,237 $ 18,947 $ 17,546 $ 18,720 Exclude (gain) loss on sale of investment securities, net 12,231 22,742 10,741 217 — — — 217 — Exclude gain on sale of branch including related deposits, net (610) — — — — — — — — Exclude merger related costs — — 1,020 17,856 635 385 5,178 7,493 5,185 Exclude gain on sale of premise and equipment — (1,552) (8) — — — — — — Exclude tax effect of adjustments (2,440) (4,450) (2,468) (3,795) (133) (81) (1,087) (1,619) (1,089) Exclude BOLI restructuring costs included in BOLI Income — 508 — — — — — — — Exclude tax expense related to BOLI restructuring — 2,371 515 — — — — — — Adjusted net income (non-GAAP) $ 70,936 $ 62,877 $ 77,332 $ 69,491 $ 19,671 $ 22,541 $ 23,038 $ 23,637 $ 22,816 Average ("Avg") total assets $ 7,140,024 $ 7,133,046 $ 7,027,138 8,286,309 $ 7,006,140 $ 6,954,110 $ 7,935,002 $ 8,437,320 8,480,610 ROAA, annualized (GAAP) 0.86 % 0.61 % 0.96 % 0.89 % 1.09 % 1.27 % 0.97 % 0.83 % 0.88 % Adjusted ROAA, annualized (non-GAAP) 0.99 % 0.88 % 1.10 % 1.12 % 1.11 % 1.29 % 1.18 % 1.12 % 1.07 % Adjusted Noninterest Expense / Average Assets: Noninterest Expense (GAAP) $ 166,623 $ 158,296 $ 165,566 $ 182,833 $ 41,615 $ 41,483 $ 56,551 $ 64,324 $ 61,958 Exclude merger related costs — — 1,020 17,856 635 385 5,178 7,493 5,185 Exclude amortization of intangible assets $ 2,434 $ 1,640 $ 1,174 $ 7,956 $ 284 $ 285 $ 2,058 $ 2,957 $ 2,941 Adjusted noninterest expense (non- GAAP) $ 164,189 $ 156,656 $ 163,372 $ 157,021 $ 40,696 $ 40,813 $ 49,315 $ 53,874 $ 53,832 Avg. total assets $ 7,140,024 $ 7,133,046 $ 7,027,138 $ 8,286,309 $ 7,006,140 $ 6,954,110 $ 7,935,002 $ 8,437,320 $ 8,480,610 Noninterest Expense/Avg. Assets (GAAP) 2.33 % 2.22 % 2.36 % 2.95 % 2.36 % 2.37 % 2.89 % 3.06 % 2.90 % Noninterest expense/Avg. Assets (non-GAAP) 2.30 % 2.20 % 2.32 % 2.53 % 2.30 % 2.33 % 2.52 % 2.56 % 2.52 %

35 NON-GAAP FINANCIAL MEASURES 2023 2024 2025 2026 YTD Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Return on Average Tangible Common Equity ("ROATCE") and Adjusted ROATCE: Net income (GAAP) $ 61,755 $ 43,258 $ 67,532 $ 55,213 $ 19,169 $ 22,237 $ 18,947 $ 17,546 $ 18,720 Add amortization of intangible assets 2,434 1,640 1,174 7,956 284 285 2,058 2,957 2,941 Exclude tax effect of adjustment (511) (344) (247) (1,671) (60) (60) (432) (621) (618) Tangible net income (non-GAAP) $ 63,678 $ 44,554 $ 68,459 $ 61,498 $ 19,393 $ 22,462 $ 20,573 $ 19,882 $ 21,043 Tangible net income (non-GAAP) $ 63,678 $ 44,554 $ 68,459 $ 61,498 $ 19,393 $ 22,462 $ 20,573 $ 19,882 $ 21,043 Exclude (gain) loss on sale of investment securities, net 12,231 22,742 10,741 217 — — — 217 — Exclude gain on sale of branch including related deposits, net (610) — — — — — — — — Exclude merger related costs — — 1,020 17,856 635 385 5,178 7,493 5,185 Exclude gain on sale of premise and equipment — (1,552) (8) — — — — — — Exclude tax effect of adjustments (2,440) (4,450) (2,468) (3,795) (133) (81) (1,087) (1,619) (1,089) Exclude BOLI restructuring costs included in BOLI Income — 508 — — — — — — — Exclude tax expense related to BOLI restructuring — 2,371 515 — — — — — — Adjusted tangible net income (non-GAAP) $ 72,859 $ 64,173 $ 78,259 $ 75,776 $ 19,895 $ 22,766 $ 24,664 $ 25,973 $ 25,139 Average stockholders' equity (GAAP) $ 818,042 $ 854,172 $ 887,679 $ 1,089,674 $ 892,280 $ 911,454 $ 1,049,044 $ 1,112,178 $ 1,107,162 Exclude average intangible assets (246,965) (244,910) (243,500) (317,971) (243,350) (243,069) (300,391) (328,166) (325,085) Average tangible common stockholders' equity (non-GAAP) $ 571,077 $ 609,262 $ 644,179 $ 771,703 $ 648,930 $ 668,385 $ 748,653 $ 784,012 $ 782,077 ROAE, annualized (GAAP) 7.55 % 5.06 % 7.61 % 6.77 % 8.52 % 9.68 % 7.32 % 6.33 % 6.71 % ROATCE, annualized (non-GAAP) 11.15 % 7.31 % 10.63 % 10.65 % 11.86 % 13.33 % 11.14 % 10.17 % 10.67 % Adjusted ROATCE, annualized (non- GAAP) 12.76 % 10.53 % 12.15 % 13.13 % 12.16 % 13.51 % 13.36 % 13.29 % 12.75 % Dollars in thousands

36 NON-GAAP FINANCIAL MEASURES 2023 2024 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Diluted Earnings per Share and Adjusted Diluted Earnings per Share: Net income (GAAP) $ 61,755 $ 43,258 $ 67,532 $ 19,169 $ 22,237 $ 18,947 $ 17,546 $ 18,720 Exclude (gain) loss on sale of investment securities, net 12,231 22,742 10,741 — — — 217 — Exclude gain on sale of branch including related deposits, net (610) — — — — — — — Exclude merger related costs — — 1,020 635 385 5,178 7,493 5,185 Exclude gain on sale of premise and equipment — (1,552) (8) — — — — — Exclude tax effect of adjustments (2,440) (4,450) (2,468) (133) (81) (1,087) (1,619) (1,089) Exclude BOLI restructuring costs included in BOLI Income — 508 — — — — — — Exclude tax expense related to BOLI restructuring — 2,371 515 — — — — — Adjusted net income (non-GAAP) $ 70,936 $ 62,877 $ 77,332 $ 19,671 $ 22,541 $ 23,038 $ 23,637 $ 22,816 Average number of diluted shares outstanding 35,258,189 34,899,036 34,456,904 34,413,386 34,405,793 39,104,569 41,541,763 41,213,105 Diluted earnings per share (GAAP) $ 1.75 $ 1.24 $ 1.96 $ 0.55 $ 0.65 $ 0.48 $ 0.42 $ 0.46 Adjusted diluted earnings per share (non-GAAP) $ 2.01 $ 1.80 $ 2.24 $ 0.56 $ 0.66 $ 0.59 $ 0.57 $ 0.55 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 2026 Tangible Book Value Per Share (cont'd): Q1 Q2 Q3 Total stockholders' equity (GAAP) $ 1,115,691 $ 1,109,692 $ 1,083,821 Exclude intangible assets (329,255) (326,298) (323,357) Tangible common equity (non-GAAP) $ 786,436 $ 783,394 $ 760,464 Total assets (GAAP) $ 8,498,404 $ 8,430,566 $ 8,517,934 Exclude intangible assets (329,255) (326,298) (323,357) Tangible assets (non-GAAP) $8,169,149 $8,104,268 $8,194,577 Stockholders' equity to total assets (GAAP) 13.1 % 13.2 % 12.7 % Tangible common equity to tangible assets (non- GAAP) 9.6 % 9.7 % 9.3 % Shares outstanding 41,249,873 40,906,122 40,576,875 Book value per share (GAAP) $ 27.05 $ 27.13 $ 26.71 Tangible book value per share (non-GAAP) $ 19.07 $ 19.15 $ 18.74 NON-GAAP FINANCIAL MEASURES Dollars in thousands

38 NON-GAAP FINANCIAL MEASURES Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Efficiency Ratio and Adjusted Efficiency Ratio Total noninterest expense (GAAP) $ 41,615 $ 41,483 $ 56,551 $ 64,324 $ 61,958 Exclude merger related costs 635 385 5,178 7,493 5,185 Exclude amortization of intangible assets $ 284 $ 285 $ 2,058 $ 2,957 $ 2,941 Adjusted noninterest expense (non-GAAP) $ 40,696 $ 40,813 $ 49,315 $ 53,874 $ 53,832 Net interest income (GAAP) $ 57,371 $ 58,361 $ 69,219 $ 74,816 $ 77,259 Total noninterest income (GAAP) $ 8,325 $ 7,987 $ 8,699 $ 9,311 $ 9,253 Exclude (gain) loss on sale of investment securities, net — — — 217 — Adjusted total non interest income (non-GAAP) $ 8,325 $ 7,987 $ 8,699 $ 9,528 $ 9,253 Efficiency ratio (GAAP) 63.3 % 62.5 % 72.6 % 76.5 % 71.6 % Adjusted efficiency ratio (non-GAAP) 61.9 % 61.5 % 63.3 % 63.9 % 62.2 % Dollars in thousands

39 As of Period End or for the Three Months Ended September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026 September 30, 2026 Profitability: Net income $ 19,169 $ 22,237 $ 18,947 $ 17,546 $ 18,720 Adjusted net income(1) $ 19,671 $ 22,541 $ 23,038 $ 23,637 $ 22,816 Diluted earnings per share $ 0.55 $ 0.65 $ 0.48 $ 0.42 $ 0.46 Adjusted diluted earnings per share (1) $ 0.56 $ 0.66 $ 0.59 $ 0.57 $ 0.55 Return on average assets 1.09 % 1.27 % 0.97 % 0.83 % 0.88 % Adjusted return on average assets(1) 1.11 % 1.29 % 1.18 % 1.12 % 1.07 % Return on average common equity 8.52 % 9.68 % 7.32 % 6.33 % 6.71 % Return on average tangible common equity(1) 11.86 % 13.33 % 11.14 % 10.17 % 10.67 % Adjusted return on average tangible common equity(1) 12.16 % 13.51 % 13.36 % 13.29 % 12.75 % Net interest margin 3.64 % 3.72 % 3.96 % 3.99 % 4.05 % Efficiency ratio 63.3 % 62.5 % 72.6 % 76.5 % 71.6 % Adjusted efficiency ratio(1) 61.9 % 61.5 % 63.3 % 63.9 % 62.2 % Noninterest expense to average total assets 2.36 % 2.37 % 2.89 % 3.06 % 2.90 % Adjusted noninterest expense to average total assets(1) 2.30 % 2.33 % 2.52 % 2.56 % 2.52 % Balance Sheet: Total assets $ 7,011,879 $ 6,967,350 $ 8,498,404 $ 8,430,566 $ 8,517,934 Loans receivable $ 4,769,160 $ 4,783,266 $ 5,722,238 $ 5,747,741 $ 5,881,201 Total deposits $ 5,857,464 $ 5,920,199 $ 7,248,537 $ 7,038,706 $ 7,186,934 Loan to deposit ratio 81.4 % 80.8 % 78.9 % 81.7 % 81.8 % Capital: Book value per share $ 26.62 $ 27.13 $ 27.05 $ 27.13 $ 26.71 Tangible book value per share(1) $ 19.46 $ 19.98 $ 19.07 $ 19.15 $ 18.74 Leverage ratio 10.5 % 10.8 % 10.3 % 10.4 % 10.3 % Total capital ratio 13.8 % 14.1 % 13.5 % 13.4 % 13.1 % Credit Quality: Nonperforming assets to total assets 0.30 % 0.30 % 0.19 % 0.19 % 0.39 % ACL on loans to loans receivable 1.13 % 1.10 % 1.06 % 1.03 % 1.04 % Dollars in thousands (1) Represents a non-GAAP financial measure QUARTERLY FINANCIAL STATISTICS

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