Heritage Financial Guides Q3 Expense $64M-$65M, Q4 $56M-$57M

Heritage Financial (HFWA) reported a second-quarter net interest margin of 3.99%. The bank is preparing to convert the Kitsap Bank acquisition and laid out expense guidance for the rest of 2026.

Noninterest expense will run $64 million to $65 million in the third quarter, then decline to a $56 million to $57 million quarterly run-rate in the fourth quarter, the company said on its earnings call. The expense step-down reflects cost savings from the Kitsap integration.

The Kitsap conversion is expected to close in the coming months. Heritage Financial completed the acquisition of Kitsap Bank in late 2025. The bank said it remains on track to realize the targeted cost synergies.