HERITAGE FINANCIAL CORP /WA/
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
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NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
This document 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 document 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 document to the comparable GAAP financial measures are presented below.
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.
The following table presents the calculations of our non-GAAP financial measures as of the dates indicated:
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2026 | September 30, 2025 | September 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 | $66,422 | $242,850 | $196,231 |
| Exclude incremental accretion on purchased loans | 1,456 | 123 | 4,852 | 352 |
| Adjusted interest and fees on loans (non-GAAP) | $83,014 | $66,299 | $237,998 | $195,879 |
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |
| (Dollar amounts in thousands) | ||||
| Average loans receivable, net (GAAP) | $5,817,905 | $4,762,648 | $5,658,741 | $4,774,926 |
| Loan yield, annualized (GAAP) | 5.76% | 5.53% | 5.74% | 5.49% |
| Loan yield, excluding incremental accretion on purchased loans, annualized (non-GAAP) | 5.66% | 5.52% | 5.62% | 5.48% |
| Net Interest Margin, excluding incremental accretion on purchased loans, annualized: | ||||
| Net interest income before provision (GAAP) | $77,259 | $57,371 | $221,294 | $166,044 |
| Exclude incremental accretion on purchased loans | 1,456 | 123 | 4,852 | 352 |
| Adjusted net interest income before provision (non-GAAP) | $75,803 | $57,248 | $216,442 | $165,692 |
| Average Interest earning assets (GAAP) | $7,563,469 | $6,258,446 | $7,391,227 | $6,292,542 |
| Net interest margin (GAAP) | 4.05% | 3.64% | 4.00% | 3.53% |
| Net interest margin, excluding incremental accretion on purchased loans (non-GAAP) | 3.98% | 3.63% | 3.92% | 3.52% |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.