Equibles

8-K

HERITAGE FINANCIAL CORP /WA/ (HFWA)

8-K 2025-10-23 For: 2025-10-23
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Added on April 04, 2026

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 23, 2025

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<br>incorporation or organization) (I.R.S. Employer<br>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 23, 2025, Heritage Financial Corporation (“Heritage”) issued a press release announcing its third quarter 2025 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 23, 2025.

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 23, 2025, Heritage issued a press release announcing a regular quarterly cash dividend of $0.24 per common share. The dividend will be paid on November 19, 2025 to shareholders of record at the close of business on November 5, 2025.

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 2025 results and declares regular cash dividend of $0.24 per share dated October 23, 2025
Exhibit 99.2 Third Quarter 2025 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 23, 2025 /S/ BRYAN MCDONALD
Bryan McDonald
President and Chief Executive Officer
(Duly Authorized Officer)

Document

hfwarevisedlogoa01a02a.jpg

FOR IMMEDIATE RELEASE

DATE: October 23, 2025

Heritage Financial Announces Third Quarter 2025 Results and Declares Regular Cash Dividend of $0.24 Per Share

Third Quarter 2025 Highlights

•Net income was $19.2 million, or $0.55 per diluted share, compared to $12.2 million, or $0.36 per diluted share, for the second quarter of 2025.

•Deposits increased $73.1 million, or 1.3% (5.0% annualized), with noninterest demand deposits increasing 2.1% (8.4% annualized), from the second quarter of 2025.

•Net interest income increased $2.4 million, or 4.3% (17.2% annualized) from the second quarter of 2025.

•Net interest margin increased to 3.64%, an increase of 13 basis points from 3.51% for the second quarter of 2025.

•Yield on loans increased to 5.53%, from 5.50% for the second quarter of 2025.

•Cost of interest bearing deposits decreased to 1.89%, from 1.94% for the second quarter of 2025.

•Declared a regular cash dividend of $0.24 per share on October 22, 2025.

•Heritage announced a definitive agreement to acquire Olympic Bancorp, Inc. on September 25, 2025.

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 $19.2 million for the third quarter of 2025, compared to $12.2 million for the second quarter of 2025 and $11.4 million for the third quarter of 2024. Diluted earnings per share were $0.55 for the third quarter of 2025, compared to $0.36 for the second quarter of 2025 and $0.33 for the third quarter of 2024.

Bryan McDonald, Chief Executive Officer of the Company, commented, "We are pleased with the continued growth in core earnings driven by our margin expansion as loan yields continue to expand and our deposits costs are decreasing. Net interest income increased 8.3% from the same quarter of 2024. The growth in core deposits has allowed us to reduce borrowings by $245 million, or 64%, in 2025 year to date, which further strengthened our net interest margin in the quarter."

Mr. McDonald continued, "Of course, we are excited about the pending acquisition of Olympic Bancorp and its subsidiary, Kitsap Bank. This acquisition will further enhance the strength of our balance sheet and improve our profitability. We look forward to closing the transaction in the first quarter of 2026.”

Financial Highlights

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

As of or for the Quarter Ended
September 30,<br>2025 June 30,<br>2025 September 30,<br>2024
(Dollars in thousands, except per share amounts)
Net income $ 19,169 $ 12,215 $ 11,423
Diluted earnings per share $ 0.55 $ 0.36 $ 0.33
Adjusted diluted earnings per share (1) $ 0.56 $ 0.53 $ 0.45
Return on average assets(2) 1.09 % 0.70 % 0.63 %
Return on average common equity(2) 8.52 5.57 5.30
Return on average tangible common equity(1)(2) 11.86 7.85 7.62
Adjusted return on average tangible common equity(1)(2) 12.16 11.59 10.42
Net interest margin(2) 3.64 3.51 3.30
Cost of total deposits(2) 1.37 1.40 1.42
Efficiency ratio 63.3 72.7 71.7
Adjusted efficiency ratio(1) 62.4 64.9 65.2
Noninterest expense to average total assets(2) 2.36 2.34 2.18
Total assets $ 7,011,879 $ 7,070,641 $ 7,153,363
Loans receivable 4,769,160 4,774,855 4,679,479
Total deposits 5,857,464 5,784,413 5,708,492
Loan to deposit ratio(3) 81.4 % 82.5 % 82.0 %
Book value per share $ 26.62 $ 26.16 $ 25.61
Tangible book value per share(1) 19.46 18.99 18.45

(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.

Balance Sheet

Total investment securities decreased $33.4 million, or 2.5%, to $1.31 billion at September 30, 2025 from $1.35 billion at June 30, 2025. Investment maturities and repayments totaled $38.5 million during the third quarter of 2025. The decrease was partially offset by a $4.9 million decrease in unrealized losses on available for sale securities.

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

September 30, 2025 June 30, 2025 Change
Balance % of<br>Total Balance % of<br>Total %
(Dollars in thousands)
Investment securities available for sale, at fair value:
U.S. government and agency securities $ 11,642 0.9 % $ 11,510 0.9 % 1.1 %
Municipal securities 51,197 3.9 50,215 3.7 982 2.0
Residential CMO and MBS(1) 298,737 22.8 317,214 23.6 (18,477) (5.8)
Commercial CMO and MBS(1) 255,995 19.5 260,720 19.3 (4,725) (1.8)
Corporate obligations 7,019 0.5 10,010 0.7 (2,991) (29.9)
Other asset-backed securities 6,641 0.5 6,783 0.5 (142) (2.1)
Total $ 631,231 48.1 % $ 656,452 48.7 % (3.8) %

All values are in US Dollars.

September 30, 2025 June 30, 2025 Change
Balance % of<br>Total Balance % of<br>Total %
(Dollars in thousands)
Investment securities held to maturity, at amortized cost:
U.S. government and agency securities $ 151,297 11.5 % $ 151,274 11.2 % — %
Residential CMO and MBS(1) 224,654 17.1 232,244 17.3 (7,590) (3.3)
Commercial CMO and MBS(1) 305,675 23.3 306,304 22.8 (629) (0.2)
Total $ 681,626 51.9 % $ 689,822 51.3 % (1.2) %
Total investment securities $ 1,312,857 100.0 % $ 1,346,274 100.0 % (2.5) %

All values are in US Dollars. (1) U.S. government agency and government-sponsored enterprise CMO and MBS

Loans receivable decreased $5.7 million, or 0.1%, during the third quarter of 2025 due primarily to an elevated level of prepaid and closed loans, offset partially by new loan production for the quarter. New loans funded increased during the third quarter of 2025 to $174.5 million, compared to $139.9 million during the second quarter of 2025. New loan commitments increased during the third quarter of 2025 to $341.2 million, compared to $267.6 million during the second quarter of 2025. Loan prepayments increased to $75.6 million during the quarter, compared to $58.9 million during the prior quarter. Loan payoffs increased to $55.8 million, compared to $51.0 million in the prior quarter.

Commercial and industrial loans decreased $12.0 million, or 1.4%, during the third quarter of 2025, due primarily to pay downs on outstanding balances, partially offset by new loan production of $65.6 million. Owner-occupied commercial real estate ("CRE") loans increased $7.8 million, or 0.8%, during the third quarter of 2025, due primarily to new loan production of $24.8 million, partially offset by pay downs on outstanding balances. Non-owner occupied CRE loans decreased $1.6 million, or 0.1%, during the quarter, due primarily to loan payoffs, partially offset by new loan production of $50.7 million. Residential real estate loans decreased by $9.1 million, or 2.4%, during the quarter due to loan payoffs. Residential construction loans increased by $12.4 million, or 15.8% during the quarter due primarily to new loan production. Commercial and multifamily construction loans decreased $4.1 million, or 1.1%, during the quarter due primarily to loan payoffs.

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

September 30, 2025 June 30, 2025 Change
Balance % of Total Balance % of Total %
(Dollars in thousands)
Commercial business:
Commercial and industrial $ 819,076 17.2 % $ 831,096 17.4 % (1.4) %
Owner-occupied CRE 1,022,727 21.4 1,014,891 21.3 7,836 0.8
Non-owner occupied CRE 1,938,190 40.6 1,939,752 40.7 (1,562) (0.1)
Total commercial business 3,779,993 79.2 3,785,739 79.4 (5,746) (0.2)
Residential real estate 374,875 7.9 383,927 8.0 (9,052) (2.4)
Real estate construction and land development:
Residential 90,440 1.9 78,070 1.6 12,370 15.8
Commercial and multifamily 351,196 7.4 355,268 7.4 (4,072) (1.1)
Total real estate construction and land development 441,636 9.3 433,338 9.0 8,298 1.9
Consumer 172,656 3.6 171,851 3.6 805 0.5
Loans receivable $ 4,769,160 100.0 % $ 4,774,855 100.0 % (0.1)

All values are in US Dollars.

Total deposits increased $73.1 million, or 1.3%, to $5.86 billion at September 30, 2025 from $5.78 billion at June 30, 2025. Non-maturity deposits increased by $104.5 million, or 2.2%, from June 30, 2025 due primarily to an increase in customer balances in noninterest bearing demand and interest bearing demand accounts. The increase in non-maturity deposits was partially offset by a decrease of $31.4 million in certificates of deposit accounts. The decline in certificates of deposit accounts was due primarily to the maturity of $25.1 million of brokered certificates of deposit.

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

September 30, 2025 June 30, 2025 Change
Balance % of Total Balance % of Total %
(Dollars in thousands)
Noninterest demand deposits $ 1,617,909 27.6 % $ 1,584,231 27.4 % 2.1 %
Interest bearing demand deposits 1,526,685 26.1 1,487,208 25.7 39,477 2.7
Money market accounts 1,332,501 22.7 1,308,952 22.6 23,549 1.8
Savings accounts 430,127 7.3 422,372 7.3 7,755 1.8
Total non-maturity deposits 4,907,222 83.7 4,802,763 83.0 104,459 2.2
Certificates of deposit 950,242 16.3 981,650 17.0 (31,408) (3.2)
Total deposits $ 5,857,464 100.0 % $ 5,784,413 100.0 % 1.3 %

All values are in US Dollars.

Total borrowings decreased $125.2 million to $138.0 million at September 30, 2025 from $263.2 million at June 30, 2025. All outstanding borrowings at September 30, 2025 were with the Federal Home Loan Bank ("FHLB") and mature within one year.

Total stockholders' equity increased $15.9 million, or 1.8%, to $904.1 million at September 30, 2025 compared to $888.2 million at June 30, 2025 due primarily to $19.2 million of net income recognized for the quarter and a $3.7 million decrease in accumulated other comprehensive loss. These increases were partially offset by $8.3 million in dividends paid to common shareholders during the quarter.

The Company and Bank continued to maintain capital levels in excess of the applicable regulatory requirements for them both to be categorized as “well-capitalized” at September 30, 2025.

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

September 30,<br>2025 June 30,<br>2025
Stockholders' equity to total assets 12.9% 12.6%
Tangible common equity to tangible assets (1) 9.8 9.4
Common equity tier 1 capital ratio (2) 12.4 12.2
Leverage ratio (2) 10.5 10.3
Tier 1 capital ratio (2) 12.8 12.6
Total capital ratio (2) 13.8 13.6

(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 1.13% at September 30, 2025 compared to 1.10% at June 30, 2025. The increase in the ACL as a percentage of loans was due primarily to changes in the weighted average life of loans in the real estate construction and land development segment. During the third quarter of 2025, the Company recorded a $1.6 million provision for credit losses on loans, compared to a $0.9 million provision during the second quarter of 2025.

During the third quarter of 2025, the Company recorded a $212,000 provision for credit losses on unfunded commitments compared to a $93,000 provision during the second quarter of 2025. The provision for credit losses on unfunded commitments during the third quarter of 2025 was due primarily to an increase in the unfunded exposure on construction loans.

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

As of or for the Quarter Ended
September 30, 2025 June 30, 2025 September 30, 2024
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 $ 52,529 $ 740 $ 53,269 $ 52,160 $ 647 $ 52,807 $ 51,219 $ 774 $ 51,993
Provision for (reversal of) credit losses 1,563 212 1,775 863 93 956 2,705 (266) 2,439
(Net charge-offs) / recoveries (118) — (118) (494) — (494) (2,533) — (2,533)
Balance, end of period $ 53,974 $ 952 $ 54,926 $ 52,529 $ 740 $ 53,269 $ 51,391 $ 508 $ 51,899

Credit Quality

Classified loans (loans rated substandard or worse) decreased $5.3 million from the prior quarter, resulting in the percentage of classified loans to loans receivable decreasing to 2.0% at September 30, 2025 compared to 2.1% at June 30, 2025.

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

September 30, 2025 June 30, 2025
Balance % of Total Balance % of Total
(Dollars in thousands)
Risk Rating:
Pass $ 4,574,623 95.9 % $ 4,560,994 95.5 %
Special Mention 100,160 2.1 114,146 2.4
Substandard 94,377 2.0 99,715 2.1
Total $ 4,769,160 100.0 % $ 4,774,855 100.0 %

Nonaccrual loans increased by $7.7 million during the third quarter of 2025 due primarily to the migration of two residential construction loans totaling $6.7 million. The following table illustrates changes in nonaccrual loans during the periods indicated:

Quarter Ended
September 30,<br>2025 June 30,<br>2025 September 30,<br>2024
(Dollars in thousands)
Balance, beginning of period $ 9,865 $ 4,438 $ 3,826
Additions 8,288 7,922 4,990
Net principal payments and transfers to accruing status (207) (2,041) (173)
Payoffs (137) — (1,832)
Charge-offs (197) (454) (2,510)
Balance, end of period $ 17,612 $ 9,865 $ 4,301
Nonaccrual loans to loans receivable 0.37 % 0.21 % 0.09 %

Liquidity

Total liquidity sources available at September 30, 2025 were $2.51 billion. This includes 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, 2025 represented a coverage ratio of 42.8% of total deposits and 100.6% of estimated uninsured deposits.

The following table summarizes the Company's available liquidity:

Quarter Ended
September 30,<br>2025 June 30,<br>2025
(Dollars in thousands)
On-balance sheet liquidity
Cash and cash equivalents $ 245,491 $ 254,096
Unencumbered investment securities available for sale (1) 630,666 655,876
Total on-balance sheet liquidity $ 876,157 $ 909,972
Off-balance sheet liquidity
FRB borrowing availability $ 347,119 $ 346,307
FHLB borrowing availability (2) 1,140,425 977,805
Fed funds line borrowing availability with correspondent banks 145,000 145,000
Total off-balance sheet liquidity $ 1,632,544 $ 1,469,112
Total available liquidity $ 2,508,701 $ 2,379,084

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

(2) Includes FHLB total borrowing availability of $1.28 billion at September 30, 2025 based on pledged assets, however, maximum credit capacity is 45% of the Bank's total assets one quarter in arrears or $3.18 billion.

Net Interest Margin and Net Interest Income

Net interest margin increased 13 basis points to 3.64% during the third quarter of 2025 from 3.51% during the second quarter of 2025.

The yield on interest earning assets increased three basis points to 5.04% for the third quarter of 2025 compared to 5.01% for the second quarter of 2025. The yield on loans receivable increased three basis points to 5.53% during the third quarter of 2025, compared to 5.50% during the second quarter of 2025 as new loans were booked and adjustable rate loans repriced at higher rates.

The cost of interest bearing deposits decreased five basis points to 1.89% for the third quarter of 2025 from 1.94% for the second quarter of 2025. This decrease was primarily due to a decrease in certificate of deposit rates.

Net interest income increased $2.4 million, or 4.3%, during the third quarter of 2025 compared to the second quarter of 2025 due to a $1.0 million increase in total interest income and a decrease in interest expense of $1.4 million.

Net interest margin increased 34 basis points to 3.64% from 3.30% compared to the same period in the prior year. Net interest income increased $4.4 million, or 8.3%, during the third quarter of 2025 compared to the third quarter of 2024. The increase was due primarily to a change in the mix of earning assets to higher yielding loan balances and a decrease in deposit and borrowing interest expense due to lower rates.

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

Quarter Ended
September 30, 2025 June 30, 2025 September 30, 2024
Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1) Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1) Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1)
(Dollars in thousands)
Interest Earning Assets:
Loans receivable (2)(3) $ 4,762,648 $ 66,422 5.53 % $ 4,768,558 $ 65,373 5.50 % $ 4,606,856 $ 64,138 5.54 %
Taxable securities 1,314,374 11,102 3.35 1,374,770 11,579 3.38 1,604,529 13,472 3.34
Nontaxable securities (3) 15,242 138 3.59 15,294 137 3.59 17,482 159 3.62
Interest earning deposits 166,182 1,846 4.41 127,687 1,411 4.43 150,384 2,048 5.42
Total interest earning assets 6,258,446 79,508 5.04 % 6,286,309 78,500 5.01 % 6,379,251 79,817 4.98 %
Noninterest earning assets 747,694 760,634 803,670
Total assets $ 7,006,140 $ 7,046,943 $ 7,182,921
Interest Bearing Liabilities:
Certificates of deposit $ 955,737 $ 8,822 3.66 % $ 979,997 $ 9,349 3.83 % $ 906,743 $ 10,052 4.41 %
Savings accounts 428,256 296 0.27 425,703 288 0.27 445,926 220 0.20
Quarter Ended
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
September 30, 2025 June 30, 2025 September 30, 2024
Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1) Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1) Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1)
(Dollars in thousands)
Interest bearing demand and money market accounts 2,833,048 11,003 1.54 2,770,352 10,513 1.52 2,644,827 9,984 1.50
Total interest bearing deposits 4,217,041 20,121 1.89 4,176,052 20,150 1.94 3,997,496 20,256 2.02
Junior subordinated debentures 22,239 474 8.46 22,165 472 8.54 21,946 541 9.81
Borrowings 136,582 1,542 4.48 245,663 2,895 4.73 452,364 6,062 5.33
Total interest bearing liabilities 4,375,862 22,137 2.01 % 4,443,880 23,517 2.12 % 4,471,806 26,859 2.39 %
Noninterest demand deposits 1,625,945 1,602,987 1,677,984
Other noninterest bearing liabilities 112,053 120,268 175,332
Stockholders’ equity 892,280 879,808 857,799
Total liabilities and stockholders’ equity $ 7,006,140 $ 7,046,943 $ 7,182,921
Net interest income and spread $ 57,371 3.03 % $ 54,983 2.89 % $ 52,958 2.59 %
Net interest margin 3.64 % 3.51 % 3.30 %

(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 $1,054,000, $903,000 and $938,000 for the third quarter of 2025, second quarter of 2025 and third quarter of 2024, respectively.

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

Noninterest Income

Noninterest income increased $6.8 million to $8.3 million during the third quarter of 2025 from $1.5 million during the second quarter of 2025. The increase was due primarily to a $6.9 million loss recognized in the second quarter of 2025 resulting from the sale of investment securities as part of the Company's strategic repositioning of its balance sheet. The increase was partially offset by a decrease in bank owned life insurance ("BOLI") income due to nonrecurring death benefit proceeds received in the second quarter of 2025.

Noninterest income increased $6.5 million from the same period in 2024 due primarily to a $6.9 million loss recognized in the third quarter of 2024 resulting from the sale of investment securities as part of the above-mentioned strategic repositioning of the Company's balance sheet. The decrease was partially offset by an increase in gain on sale of other assets, net which was due to the $1.5 million gain on sale of an administrative building recognized during the third quarter of 2024.

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,<br>2025 June 30,<br>2025 September 30,<br>2024 % %
(Dollars in thousands)
Service charges and other fees $ 3,046 $ 2,932 $ 2,788 3.9 % 9.3 %
Card revenue 2,209 2,008 2,134 201 10.0 75 3.5
Loss on sale of investment securities — (6,854) (6,945) 6,854 100.0 6,945 100.0
Interest rate swap fees 96 19 — 77 405.3 96 —
Bank owned life insurance income 1,008 1,280 860 (272) (21.3) 148 17.2
Gain on sale of other assets, net — 5 1,480 (5) (100.0) (1,480) (100.0)
Other income 1,966 2,127 1,520 (161) (7.6) 446 29.3
Total noninterest income (loss) $ 8,325 $ 1,517 $ 1,837 448.8 % 353.2 %

All values are in US Dollars.

Noninterest Expense

Noninterest expense increased $0.5 million, or 1.3%, to $41.6 million during the third quarter of 2025, compared to $41.1 million in the second quarter of 2025 due primarily to an increase in compensation and employee benefits resulting from an increase in the accrual for incentive compensation. Professional fees increased due primarily to merger related costs of $630,000 incurred during the third quarter of 2025, offset partially by a reduction in other professional expenses.

Noninterest expense increased $2.3 million, or 5.9%, during the third quarter of 2025 compared to the same period in 2024 due primarily to an increase in compensation and employee benefits due to annual merit increases in base pay and related incentive compensation expense accruals. Professional fees increased due primarily to merger related costs of $630,000 incurred during the third quarter of 2025.

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,<br>2025 June 30,<br>2025 September 30,<br>2024 % %
(Dollars in thousands)
Compensation and employee benefits $ 26,082 $ 25,467 $ 24,367 2.4 % 7.0 %
Occupancy and equipment 4,665 4,840 4,850 (175) (3.6) (185) (3.8)
Data processing 3,754 3,666 3,964 88 2.4 (210) (5.3)
Marketing 284 336 128 (52) (15.5) 156 121.9
Professional services 1,332 1,122 490 210 18.7 842 171.8
State/municipal business and use taxes 1,235 1,205 1,249 30 2.5 (14) (1.1)
Federal deposit insurance premium 796 810 824 (14) (1.7) (28) (3.4)
Amortization of intangible assets 284 302 399 (18) (6.0) (115) (28.8)
Other expense 3,183 3,337 3,019 (154) (4.6) 164 5.4
Total noninterest expense $ 41,615 $ 41,085 $ 39,290 1.3 % 5.9 %

All values are in US Dollars.

Income Tax Expense

Income tax expense increased $0.9 million to $3.1 million during the third quarter of 2025, compared to $2.2 million during second quarter of 2025 due to an increase in pre-tax income. Impacting the amount of the increase from the prior quarter was the recognition of $515,000 in income tax expense in the second quarter of 2025 related to the surrender of $8.5 million in BOLI policies.

Income tax expense increased $1.5 million in the third quarter of 2025, compared to same period in 2024 due primarily to higher pre-tax income during the third quarter of 2025.

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

Quarter Ended Change
September 30,<br>2025 June 30,<br>2025 September 30,<br>2024 Quarter Over Quarter Prior Year Quarter
(Dollars in thousands)
Income before income taxes $ 22,306 $ 14,459 $ 13,066 $ 7,847 $ 9,240
Income tax expense $ 3,137 $ 2,244 $ 1,643 $ 893 $ 1,494
Effective income tax rate 14.1 % 15.5 % 12.6 % (1.4) % 1.5 %

Dividends

On October 22, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.24 per share. The dividend is payable on November 19, 2025 to shareholders of record as of the close of business on November 5, 2025.

Earnings Conference Call

The Company will hold a telephone conference call to discuss this earnings release on Thursday, October 23, 2025 at 10:00 a.m. Pacific time. To access the call, please dial (833) 470-1428 -- access code 265266 a few minutes prior to 10:00 a.m. Pacific time. The call will be available for replay through November 6, 2025 by dialing (866) 813-9403 -- access code 672978.

About Heritage Financial Corporation

Heritage Financial Corporation is an Olympia, Washington-based bank holding company with Heritage Bank, a full-service commercial bank, as its sole wholly-owned banking subsidiary. Heritage Bank has a network of 50 branches and one loan production office in Washington, Oregon and Idaho. Heritage Bank does business under the Whidbey Island Bank name on Whidbey Island, Washington. The Company's stock is traded on the Nasdaq Global Select Market under the symbol “HFWA.” More information about Heritage Financial Corporation 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 includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believes," "expects," "anticipates," "estimates," “forecasts,” "intends," “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” "will," “should,” "would," and "could," as well as the negative of such words. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause our actual results to differ materially from those described in the forward-looking statements include, but are not limited to, the following: potential adverse impacts to economic conditions nationally or in our local market areas, other markets where we have lending relationships, or other aspects of our business operations or financial markets including, without limitation, as a result of credit quality deterioration, pronounced and sustained reductions in real estate market values, employment levels, labor shortages, and a potential recession or slowed economic growth; changes in the interest rate environment which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the level and impact of inflation and the current and future monetary policies of the Board of Governors of the Federal Reserve System in response thereto; legislative or regulatory changes that adversely affect our business, including changes in banking, securities, and tax law, in regulatory policies and principles, or the interpretation and prioritization of such rules and regulations; effects on the U.S. economy resulting from the threat or implementation of, or changes to existing, policies and executive orders, including the imposition of tariffs, changes to immigration policy, regulatory and other governmental agencies, DEI and ESG initiatives, consumer protection, foreign policy, and tax regulations; credit and interest rate risks associated with our business, customers, borrowings, repayment, investment, and deposit practices; fluctuations in deposits and deposit concentrations; 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 (by type of geographic area, collateral and industry) within our loan portfolio; 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; rapid technological changes implemented by us and other parties, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; increased competition in the financial services industry from non-banks such as credit unions and financial technology companies, including digital asset service providers; our ability to adapt successfully to technological changes to compete effectively in the marketplace, including as a result of competition from other commercial banks, mortgage banking firms, credit unions, securities brokerage firms, insurance companies, and financial technology companies; our ability to implement our organic and acquisition growth strategies, including the pending acquisition of Olympic; 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; potential impairment to the goodwill we recorded in connection with our past acquisitions, including the pending acquisition of Olympic; loss of, or inability to attract, key personnel; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business and the businesses of our clients; 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; 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. 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.

Additional Information and Where to Find It

The Company will file a registration statement on Form S-4 with the SEC in connection with the proposed acquisition of Olympic. The registration statement will include a joint proxy statement of the Company and Olympic that also constitutes a prospectus of the Company, which will be sent to the shareholders of the Company and Olympic. The Company and Olympic shareholders are advised to read the joint proxy statement/prospectus when it becomes available because it will contain important information about the Company, Olympic and the proposed transaction. When filed, this document and other documents relating to the merger filed by the Company can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge by accessing the Company’s website at hf-wa.com under the tab “Financials.” Alternatively, these documents, when available, can be obtained free of charge from the Company upon written request to the Company, Attn: Investor Relations, 201 Fifth Avenue S.W., Olympia, Washington 98501 or by calling (360) 943-1500 or from Olympic, upon

written request to Olympic Bancorp, Inc., Attn: Corporate Secretary, PO Box 9, Port Orchard WA 98366. The contents of the website referenced above are not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus.

Participants in This Transaction

This release does not constitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. The Company, Olympic, and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of the Company and Olympic in connection with the proposed merger under SEC rules. Information about the directors and executive officers of the Company and Olympic will be included in the joint proxy statement/prospectus for the proposed merger filed with the SEC. These documents (when available) may be obtained free of charge in the manner described above under “Additional Information and Where to Find It.”

Security holders may obtain information regarding the names, affiliations and interests of the Company’s directors and executive officers in the definitive proxy statement of the Company relating to its 2025 Annual Meeting of Shareholders filed with the SEC on March 21, 2025 and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025. To the extent the holdings of the Company’s securities by the Company’s directors and executive officers have changed since the amounts set forth in the Company’s proxy statement for its 2025 Annual Meeting of Shareholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. These documents can be obtained free of charge in the manner described above under “Additional Information and Where to Find It.”

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

(Dollars in thousands, except shares)

September 30,<br>2025 June 30,<br>2025 December 31,<br>2024
Assets
Cash on hand and in banks $ 74,030 $ 90,754 $ 58,821
Interest earning deposits 171,461 163,342 58,279
Cash and cash equivalents 245,491 254,096 117,100
Investment securities available for sale, at fair value (amortized cost of $674,108, $704,207 and $835,592, respectively) 631,231 656,452 764,394
Investment securities held to maturity, at amortized cost (fair value of $628,049, $629,658 and $623,452, respectively) 681,626 689,822 703,285
Total investment securities 1,312,857 1,346,274 1,467,679
Loans receivable 4,769,160 4,774,855 4,802,123
Allowance for credit losses on loans (53,974) (52,529) (52,468)
Loans receivable, net 4,715,186 4,722,326 4,749,655
Premises and equipment, net 70,382 71,111 71,580
Federal Home Loan Bank stock, at cost 10,473 16,107 21,538
Bank owned life insurance 105,464 104,456 111,699
Accrued interest receivable 19,146 18,559 19,483
Prepaid expenses and other assets 289,677 294,225 303,452
Other intangible assets, net 2,264 2,548 3,153
Goodwill 240,939 240,939 240,939
Total assets $ 7,011,879 $ 7,070,641 $ 7,106,278
Liabilities and Stockholders' Equity
Non-interest bearing deposits $ 1,617,909 $ 1,584,231 $ 1,654,955
Interest bearing deposits 4,239,555 4,200,182 4,029,658
Total deposits 5,857,464 5,784,413 5,684,613
Borrowings 138,000 263,200 383,000
Junior subordinated debentures 22,277 22,204 22,058
Accrued expenses and other liabilities 90,074 112,612 153,080
Total liabilities 6,107,815 6,182,429 6,242,751
Common stock 529,949 528,758 531,674
Retained earnings 407,561 396,643 387,097
Accumulated other comprehensive loss, net (33,446) (37,189) (55,244)
Total stockholders' equity 904,064 888,212 863,527
Total liabilities and stockholders' equity $ 7,011,879 $ 7,070,641 $ 7,106,278
Shares outstanding 33,956,738 33,953,194 33,990,827

HERITAGE FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share amounts)

Quarter Ended Nine Months Ended
September 30,<br>2025 June 30,<br>2025 September 30,<br>2024 September 30,<br>2025 September 30,<br>2024
Interest Income
Interest and fees on loans $ 66,422 $ 65,373 $ 64,138 $ 196,231 $ 182,608
Taxable interest on investment securities 11,102 11,579 13,472 34,420 42,462
Nontaxable interest on investment securities 138 137 159 414 505
Interest on interest earning deposits 1,846 1,411 2,048 4,309 5,177
Total interest income 79,508 78,500 79,817 235,374 230,752
Interest Expense
Deposits 20,121 20,150 20,256 59,760 55,097
Junior subordinated debentures 474 472 541 1,417 1,627
Borrowings 1,542 2,895 6,062 8,153 18,427
Total interest expense 22,137 23,517 26,859 69,330 75,151
Net interest income 57,371 54,983 52,958 166,044 155,601
Provision for credit losses 1,775 956 2,439 2,782 5,099
Net interest income after provision for credit losses 55,596 54,027 50,519 163,262 150,502
Noninterest Income
Service charges and other fees 3,046 2,932 2,788 8,953 8,393
Card revenue 2,209 2,008 2,134 5,950 5,903
Loss on sale of investment securities, net — (6,854) (6,945) (10,741) (18,839)
Gain on sale of loans, net — — — — 26
Interest rate swap fees 96 19 — 115 52
Bank owned life insurance income 1,008 1,280 860 3,206 2,711
Gain on sale of other assets, net — 5 1,480 8 1,529
Other income 1,966 2,127 1,520 6,254 4,408
Total noninterest income (loss) 8,325 1,517 1,837 13,745 4,183
Noninterest Expense
Compensation and employee benefits 26,082 25,467 24,367 77,348 74,291
Occupancy and equipment 4,665 4,840 4,850 14,431 14,547
Data processing 3,754 3,666 3,964 11,317 10,879
Marketing 284 336 128 955 583
Professional services 1,332 1,122 490 3,188 1,852
State/municipal business and use taxes 1,235 1,205 1,249 3,660 3,709
Federal deposit insurance premium 796 810 824 2,418 2,431
Amortization of intangible assets 284 302 399 889 1,241
Other expense 3,183 3,337 3,019 9,877 9,223
Total noninterest expense 41,615 41,085 39,290 124,083 118,756
Income before income taxes 22,306 14,459 13,066 52,924 35,929
Income tax expense 3,137 2,244 1,643 7,629 4,599
Net income $ 19,169 $ 12,215 $ 11,423 $ 45,295 $ 31,330
Basic earnings per share $ 0.56 $ 0.36 $ 0.33 $ 1.33 $ 0.91
Diluted earnings per share $ 0.55 $ 0.36 $ 0.33 $ 1.31 $ 0.90
Dividends declared per share $ 0.24 $ 0.24 $ 0.23 $ 0.72 $ 0.69
Average shares outstanding - basic 33,953,810 34,028,592 34,322,069 34,009,010 34,584,851
Average shares outstanding - diluted 34,413,386 34,446,710 34,658,674 34,481,877 35,002,375

HERITAGE FINANCIAL CORPORATION

FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands)

Average Balances, Yields, and Rates Paid:

Nine Months Ended September 30,
2025 2024
Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1) Average<br>Balance Interest<br>Earned/<br>Paid Average<br>Yield/<br>Rate (1)
Interest Earning Assets:
Loans receivable(2)(3) $ 4,774,926 $ 196,231 5.49 % $ 4,475,642 $ 182,608 5.45 %
Taxable securities 1,371,957 34,420 3.35 1,699,995 42,462 3.34
Nontaxable securities(3) 15,406 414 3.59 19,193 505 3.51
Interest earning deposits 130,253 4,309 4.42 126,970 5,177 5.45
Total interest earning assets 6,292,542 235,374 5.00 % 6,321,800 230,752 4.88 %
Noninterest earning assets 759,206 805,790
Total assets $ 7,051,748 $ 7,127,590
Interest Bearing Liabilities:
Certificates of deposit $ 971,933 $ 27,841 3.83 % $ 826,575 $ 26,852 4.34 %
Savings accounts 426,767 877 0.27 457,989 640 0.19
Interest bearing demand and money market accounts 2,770,162 31,042 1.50 2,643,478 27,605 1.39
Total interest bearing deposits 4,168,862 59,760 1.92 3,928,042 55,097 1.87
Junior subordinated debentures 22,164 1,417 8.55 21,874 1,627 9.94
Borrowings 233,504 8,153 4.67 484,300 18,427 5.08
Total interest bearing liabilities 4,424,530 69,330 2.10 % 4,434,216 75,151 2.26 %
Noninterest demand deposits 1,620,047 1,657,867
Other noninterest bearing liabilities 127,505 186,081
Stockholders’ equity 879,666 849,426
Total liabilities and stockholders’ equity $ 7,051,748 $ 7,127,590
Net interest income and spread $ 166,044 2.90 % $ 155,601 2.62 %
Net interest margin 3.53 % 3.29 %

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

(2) Average loans receivable includes loans held for sale and loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable includes the amortization of net deferred loan fees of $2.7 million and $2.7 million for the nine months ended September 30, 2025 and 2024, respectively.

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

HERITAGE FINANCIAL CORPORATION

FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands)

Nonperforming Assets and Credit Quality Metrics:

Quarter Ended Nine Months Ended
September 30,<br>2025 June 30,<br>2025 September 30,<br>2024 September 30,<br>2025 September 30,<br>2024
Allowance for Credit Losses on Loans:
Balance, beginning of period $ 52,529 $ 52,160 $ 51,219 $ 52,468 $ 47,999
Provision for credit losses on loans 1,563 863 2,705 2,417 5,879
Charge-offs:
Commercial business (195) (454) (2,560) (871) (2,949)
Residential real estate (27) — — (27) —
Consumer (152) (104) (85) (410) (446)
Total charge-offs (374) (558) (2,645) (1,308) (3,395)
Recoveries:
Commercial business 219 18 72 263 807
Residential real estate 1 — — 1 —
Consumer 36 46 40 133 101
Total recoveries 256 64 112 397 908
Net (charge-offs) recoveries (118) (494) (2,533) (911) (2,487)
Balance, end of period $ 53,974 $ 52,529 $ 51,391 $ 53,974 $ 51,391
Net charge-offs on loans to average loans receivable annualized 0.01 % 0.04 % 0.22 % 0.03 % 0.07 %
September 30,<br>2025 June 30,<br>2025 December 31,<br>2024
--- --- --- --- --- --- --- --- --- ---
Nonperforming Assets:
Nonaccrual loans:
Commercial business $ 3,418 $ 2,916 $ 3,919
Residential real estate 1,290 832 —
Real estate construction and land development 12,760 5,969 —
Consumer 144 148 160
Total nonaccrual loans 17,612 9,865 4,079
Accruing loans past due 90 days or more 3,338 8,613 1,195
Total nonperforming loans 20,950 18,478 5,274
Other real estate owned — — —
Nonperforming assets $ 20,950 $ 18,478 $ 5,274
ACL on loans to:
Loans receivable 1.13 % 1.10 % 1.09 %
Nonaccrual loans 306.46 % 532.48 % 1,286.30 %
Nonaccrual loans to loans receivable 0.37 % 0.21 % 0.08 %
Nonperforming loans to loans receivable 0.44 % 0.39 % 0.11 %
Nonperforming assets to total assets 0.30 % 0.26 % 0.07 %

HERITAGE FINANCIAL CORPORATION

QUARTERLY FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands, except per share amounts)

Quarter Ended
September 30,<br>2025 June 30,<br>2025 March 31,<br>2025 December 31,<br>2024 September 30,<br>2024
Earnings:
Net interest income $ 57,371 $ 54,983 $ 53,690 $ 53,763 $ 52,958
Provision for credit losses 1,775 956 51 1,183 2,439
Noninterest income 8,325 1,517 3,903 3,290 1,837
Noninterest expense 41,615 41,085 41,383 39,540 39,290
Net income 19,169 12,215 13,911 11,928 11,423
Basic earnings per share $ 0.56 $ 0.36 $ 0.41 $ 0.35 $ 0.33
Diluted earnings per share $ 0.55 $ 0.36 $ 0.40 $ 0.34 $ 0.33
Adjusted diluted earnings per share (1) $ 0.56 $ 0.53 $ 0.49 $ 0.51 $ 0.45
Average Balances:
Loans receivable $ 4,762,648 $ 4,768,558 $ 4,793,917 $ 4,717,748 $ 4,606,856
Total investment securities 1,329,616 1,390,064 1,443,662 1,530,348 1,622,011
Total interest earning assets 6,258,446 6,286,309 6,333,697 6,367,371 6,379,251
Total assets 7,006,140 7,046,943 7,103,227 7,149,294 7,182,921
Total interest bearing deposits 4,217,041 4,176,052 4,112,343 4,011,793 3,997,496
Total noninterest demand deposits 1,625,945 1,602,987 1,631,268 1,703,357 1,677,984
Stockholders' equity 892,280 879,808 866,629 868,308 857,799
Financial Ratios:
Return on average assets (2) 1.09 % 0.70 % 0.79 % 0.66 % 0.63 %
Return on average common equity (2) 8.52 5.57 6.51 5.46 5.30
Return on average tangible common equity (1)(2) 11.86 7.85 9.22 7.81 7.62
Adjusted return on average tangible common equity (1)(2) 12.16 11.59 11.21 11.59 10.42
Efficiency ratio 63.3 72.7 71.9 69.3 71.7
Adjusted efficiency ratio (1) 62.4 64.9 67.3 64.4 65.2
Noninterest expense to average total assets (2) 2.36 2.34 2.36 2.20 2.18
Net interest spread (2) 3.03 2.89 2.79 2.66 2.59
Net interest margin (2) 3.64 3.51 3.44 3.36 3.30

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

(2) Annualized.

HERITAGE FINANCIAL CORPORATION

QUARTERLY FINANCIAL STATISTICS (Unaudited)

(Dollars in thousands, except per share amounts)

As of or for the Quarter Ended
September 30,<br>2025 June 30,<br>2025 March 31,<br>2025 December 31,<br>2024 September 30,<br>2024
Select Balance Sheet:
Total assets $ 7,011,879 $ 7,070,641 $ 7,129,862 $ 7,106,278 $ 7,153,363
Loans receivable 4,769,160 4,774,855 4,764,848 4,802,123 4,679,479
Total investment securities 1,312,857 1,346,274 1,413,903 1,467,679 1,572,179
Total deposits 5,857,464 5,784,413 5,845,335 5,684,613 5,708,492
Noninterest demand deposits 1,617,909 1,584,231 1,621,890 1,654,955 1,682,219
Stockholders' equity 904,064 888,212 881,515 863,527 874,514
Financial Measures:
Book value per share $ 26.62 $ 26.16 $ 25.85 $ 25.40 $ 25.61
Tangible book value per share (1) 19.46 18.99 18.70 18.22 18.45
Stockholders' equity to total assets 12.9 % 12.6 % 12.4 % 12.2 % 12.2 %
Tangible common equity to tangible assets (1) 9.8 9.4 9.3 9.0 9.1
Loans to deposits ratio 81.4 82.5 81.5 84.5 82.0
Regulatory Capital Ratios:(2)
Common equity tier 1 capital ratio 12.4 % 12.2 % 12.2 % 12.0 % 12.3 %
Leverage ratio 10.5 10.3 10.2 10.0 9.9
Tier 1 capital ratio 12.8 12.6 12.6 12.4 12.7
Total capital ratio 13.8 13.6 13.6 13.3 13.6
Credit Quality Metrics:
ACL on loans to:
Loans receivable 1.13 % 1.10 % 1.09 % 1.09 % 1.10 %
Nonaccrual loans 306.5 532.5 1,175.3 1,286.3 1,194.9
Nonaccrual loans to loans receivable 0.37 0.21 0.09 0.08 0.09
Nonperforming loans to loans receivable 0.44 0.39 0.09 0.11 0.21
Nonperforming assets to total assets 0.30 0.26 0.06 0.07 0.13
Net charge-offs on loans to average loans receivable (3) 0.01 0.04 0.03 0.00 0.22
Criticized Loans by Credit Quality Rating:
Special mention $ 100,160 $ 114,146 $ 113,704 $ 110,725 $ 99,078
Substandard 94,377 99,715 64,387 68,318 71,977
Other Metrics:
Number of branches 50 50 50 50 50
Deposits per branch $ 117,149 $ 115,688 $ 116,907 $ 113,692 $ 114,170
Average number of full-time equivalent employees 749 745 757 751 749
Average assets per full-time equivalent employee 9,354 9,459 9,383 9,520 9,590

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

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

(3) Annualized.

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

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

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

September 30,<br>2025 June 30,<br>2025 March 31,<br>2025 December 31,<br>2024 September 30,<br>2024
Diluted Earnings per Share and Adjusted Diluted Earnings per Share:
Net income (GAAP) $ 19,169 $ 12,215 $ 13,911 $ 11,928 $ 11,423
Exclude loss on sale of investment securities, net — 6,854 3,887 3,903 6,945
Exclude merger related costs 635 — — — —
Exclude gain on sale of premises and equipment — (5) (3) (23) (1,480)
Exclude tax effect of adjustment (133) (1,438) (816) (815) (1,148)
Exclude BOLI restructuring costs included in BOLI Income — — — 508 —
Exclude tax expense related to BOLI restructuring — 515 — 2,371 —
Adjusted net income (non-GAAP) $ 19,671 $ 18,141 $ 16,979 $ 17,872 $ 15,740
Average number of diluted shares outstanding 34,413,386 34,446,710 34,506,238 34,553,139 34,658,674
Diluted earnings per share (GAAP) $ 0.55 $ 0.36 $ 0.40 $ 0.34 $ 0.33
Adjusted diluted earnings per share (non-GAAP) $ 0.56 $ 0.53 $ 0.49 $ 0.51 $ 0.45

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,<br>2025 June 30,<br>2025 March 31,<br>2025 December 31,<br>2024 September 30,<br>2024
Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share:
Total stockholders' equity (GAAP) $ 904,064 $ 888,212 $ 881,515 $ 863,527 $ 874,514
Exclude intangible assets (243,203) (243,487) (243,789) (244,092) (244,491)
Tangible common equity (non-GAAP) $ 660,861 $ 644,725 $ 637,726 $ 619,435 $ 630,023
Total assets (GAAP) $ 7,011,879 $ 7,070,641 $ 7,129,862 $ 7,106,278 $ 7,153,363
Exclude intangible assets (243,203) (243,487) (243,789) (244,092) (244,491)
Tangible assets (non-GAAP) $ 6,768,676 $ 6,827,154 $ 6,886,073 $ 6,862,186 $ 6,908,872
Stockholders' equity to total assets (GAAP) 12.9 % 12.6 % 12.4 % 12.2 % 12.2 %
Tangible common equity to tangible assets (non-GAAP) 9.8 % 9.4 % 9.3 % 9.0 % 9.1 %
Shares outstanding 33,956,738 33,953,194 34,105,516 33,990,827 34,153,539
Book value per share (GAAP) $ 26.62 $ 26.16 $ 25.85 $ 25.40 $ 25.61
Tangible book value per share (non-GAAP) $ 19.46 $ 18.99 $ 18.70 $ 18.22 $ 18.45

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,<br>2025 June 30,<br>2025 March 31,<br>2025 December 31,<br>2024 September 30,<br>2024
Return on Average Tangible Common Equity, annualized:
Net income (GAAP) $ 19,169 $ 12,215 $ 13,911 $ 11,928 $ 11,423
Add amortization of intangible assets 284 302 303 399 399
Exclude tax effect of adjustment (60) (63) (64) (84) (84)
Tangible net income (non-GAAP) $ 19,393 $ 12,454 $ 14,150 $ 12,243 $ 11,738
Tangible net income (non-GAAP) $ 19,393 $ 12,454 $ 14,150 $ 12,243 $ 11,738
Exclude loss on sale of investment securities, net — 6,854 3,887 3,903 6,945
Exclude merger related costs 635 — — — —
Exclude gain on sale of premises and equipment — (5) (3) (23) (1,480)
Exclude tax effect of adjustment (133) (1,438) (816) (815) (1,148)
Exclude BOLI restructuring costs included in BOLI Income — — — 508 —
Exclude tax expense related to BOLI restructuring — 515 — 2,371 —
Adjusted tangible net income (non-GAAP) $ 19,895 $ 18,380 $ 17,218 $ 18,187 $ 16,055
Average stockholders' equity (GAAP) $ 892,280 $ 879,808 $ 866,629 $ 868,308 $ 857,799
Exclude average intangible assets (243,350) (243,651) (243,945) (244,302) (244,706)
Average tangible common stockholders' equity (non-GAAP) $ 648,930 $ 636,157 $ 622,684 $ 624,006 $ 613,093
Return on average common equity, annualized (GAAP) 8.52 % 5.57 % 6.51 % 5.46 % 5.30 %
Return on average tangible common equity, annualized (non-GAAP) 11.86 % 7.85 % 9.22 % 7.81 % 7.62 %
Adjusted return on average tangible common equity, annualized (non-GAAP) 12.16 % 11.59 % 11.21 % 11.59 % 10.42 %

HERITAGE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES (Unaudited)

(Dollars in thousands, except per share amounts)

The Company believes that presenting an adjusted efficiency 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,<br>2025 June 30,<br>2025 March 31,<br>2025 December 31,<br>2024 September 30,<br>2024
Adjusted Efficiency Ratio :
Total noninterest expense (GAAP) $ 41,615 $ 41,085 $ 41,383 $ 39,540 $ 39,290
Exclude merger related costs $ 635 $ — $ — $ — $ —
Adjusted noninterest expense (non-GAAP) $ 40,980 $ 41,085 $ 41,383 $ 39,540 $ 39,290
Net interest income (GAAP) $ 57,371 $ 54,983 $ 53,690 $ 53,763 $ 52,958
Total noninterest income (GAAP) $ 8,325 $ 1,517 $ 3,903 $ 3,290 $ 1,837
Exclude loss on sale of investment securities, net — 6,854 3,887 3,903 6,945
Exclude gain on sale of premises and equipment — (5) (3) (23) (1,480)
Exclude BOLI restructuring costs included in BOLI Income — — — 508 —
Adjusted total noninterest income (non-GAAP) $ 8,325 $ 8,366 $ 7,787 $ 7,678 $ 7,302
Efficiency ratio (GAAP) 63.3 % 72.7 % 71.9 % 69.3 % 71.7 %
Adjusted efficiency ratio (non-GAAP) 62.4 % 64.9 % 67.3 % 64.4 % 65.2 %

20

investorpresentationq325

INVESTOR PRESENTATION Q3 2025

2 This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believes," "expects," "anticipates," "estimates," “forecasts,” "intends," “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” "will," “should,” "would," and "could," as well as the negative of such words. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. 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 Heritage Financial Corporation (the "Company") has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of credit quality deterioration, pronounced and sustained reductions in real estate market values, employment levels, labor shortages and a potential recession or slowed economic growth; • changes in the interest rate environment, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; • the level and impact of inflation and the current and future monetary policies of the Board of Governors of the Federal Reserve System in response thereto; • legislative or regulatory changes that adversely affect our business, including changes in banking, securities, and tax law, in regulatory policies and principles, or the interpretation and prioritization of such rules and regulations; • effects on the U.S. economy resulting from the threat or implementation of, or changes to existing, policies and executive orders, including tariffs, immigration policy, regulatory and other governmental agencies, DEI and ESG initiatives, consumer protection, foreign policy, and tax regulations; • credit and interest rate risks associated with the Company’s businesses, customers, borrowings, repayment, investment, and deposit practices; • fluctuations in deposits and deposit concentrations; • 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 (by type of geographic area, collateral and industry) within our loan portfolio; • 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; • 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 Fintech companies, including digital asset service providers; • our ability to adapt successfully to technological changes to compete effectively in the marketplace, including as a result of competition from other commercial banks, mortgage banking firms, credit unions, securities brokerage firms, insurance companies, and financial technology companies; • our ability to implement our organic and acquisition growth strategies, including the pending acquisition of Olympic Bancorp, Inc. (“Olympic”); • 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 the Company may become subject; • potential impairment to the goodwill the Company recorded in connection with our past acquisitions, including the pending acquisition of Olympic; • loss of, or inability to attract, key personnel; • the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business and the businesses of our clients; • 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; 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, 2024, 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, 2025. 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, 2025 unless otherwise indicated. FORWARD LOOKING STATEMENTS

3 Additional Information and Where to Find It The Company will file a registration statement on Form S-4 with the SEC in connection with the proposed transaction. The registration statement will include a joint proxy statement of the Company and Olympic that also constitutes a prospectus of the Company, which will be sent to the shareholders of the Company and Olympic. The Company and Olympic shareholders are advised to read the joint proxy statement/prospectus when it becomes available because it will contain important information about the Company, Olympic and the proposed transaction. When filed, this document and other documents relating to the merger filed by the Company can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge by accessing the Company’s website at hf-wa.com under the tab “Financials.” Alternatively, these documents, when available, can be obtained free of charge from the Company upon written request to the Company, Attn: Investor Relations, 201 Fifth Avenue S.W., Olympia, Washington 98501 or by calling (360) 943-1500 or from Olympic, upon written request to Olympic Bancorp, Inc., Attn: Corporate Secretary, PO Box 9, Port Orchard WA 98366. The contents of the website referenced above are not deemed to be incorporated by reference into the registration statement or the joint proxy statement/prospectus. Participants in This Transaction This presentation does not constitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. The Company, Olympic, and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of the Company and Olympic in connection with the proposed merger under SEC rules. Information about the directors and executive officers of the Company and Olympic will be included in the joint proxy statement/prospectus for the proposed merger filed with the SEC. These documents (when available) may be obtained free of charge in the manner described above under “Additional Information and Where to Find It.” Security holders may obtain information regarding the names, affiliations and interests of the Company’s directors and executive officers in the definitive proxy statement of the Company relating to its 2025 Annual Meeting of Shareholders filed with the SEC on March 21, 2025 and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025. To the extent the holdings of the Company’s securities by the Company’s directors and executive officers have changed since the amounts set forth in the Company’s proxy statement for its 2025 Annual Meeting of Shareholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. These documents can be obtained free of charge in the manner described above under “Additional Information and Where to Find It.” DISCLAIMERS

HERITAGE FINANCIAL CORPORATION OVERVIEW

5 OVERVIEW General Overview Nasdaq symbol HFWA Stock price(2) $24.39 Market capitalization(2) $828 million Institutional ownership(2) 85.0% Headquarters Olympia, WA # of branches 50 Year established 1927 Q3 2025 Financial Highlights Assets $7.0 billion Deposits $5.9 billion Loans receivable $4.8 billion Net income $19.2 million Net interest margin 3.64% ROAE(3) 8.52% ROATCE(1)(4) 11.86% Adjusted ROATCE(1)(4) 12.16% Efficiency ratio 63.3% Adjusted efficiency ratio(1) 62.4% Leverage ratio 10.5% Total capital ratio 13.8% Map obtained from S&P Global Market Intelligence; certain locations of branches overlap on the map. (1) Represents a non-GAAP financial measure (2) Market information as of October 6, 2025. (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 Spokane

6 COMPANY STRATEGY Allocate capital to organically grow our core banking business Ÿ Successful hiring of individuals and teams of bankers in high-growth and dynamic Seattle and Portland markets as well as other key markets including branch openings in Eugene, Oregon and Boise, Idaho and loan production office in Spokane, Washington Ÿ Disciplined approach to concentration risk and active portfolio management Improve operational efficiencies and rationalize branch network Ÿ Focused on achieving increased efficiencies with operational scale, internal focus on improving processes and technology solutions Ÿ Closed/Consolidated 36 branches since the beginning of 2010, including 12 branches in 2021 and one branch in 2023 Ÿ Full-time equivalent employee decreased to 749 at September 30, 2025 compared to 803 at December 31, 2023 Generate stable profitability and risk adjusted returns Ÿ Adjusted return on average tangible common equity(1) ("ROATCE") averaged 12.7% from 2022 to 2024. Ÿ Five-year growth in tangible book value(1) of $4.19, or 27.4%, to $19.46 at September 30, 2025 from $15.27 at September 30, 2020 Remain active and disciplined in M&A Ÿ On September 25, 2025, entered into a definitive agreement with Olympic Bancorp, Inc. - $1.7B in assets Ÿ Five 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%, annualized through September 30, 2025 Focus on core deposits to increase franchise value over the long term Ÿ 27.6% noninterest demand deposits to total deposits at September 30, 2025 Ÿ 1.37% cost of total deposits; top 13% performance among US publicly traded banks in Q2 2025 Engage in proactive capital management Ÿ History of increasing regular dividends and utilizing special dividends to manage capital Ÿ Strong capital ratios: leverage ratio(3) = 10.5%; total capital ratio(3) = 13.8% (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 2025 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

7 $113,456 $94,748 $86,463 $78,770 Median household income 4.6% 3.5% 9.9% 5.3% 0.3% 9.7% 3.6% 7.3% 13.3% 4.3% 2.4% 8.8% Seattle MSA Portland MSA Boise MSA USA Unemployment rate 2025-2030 Projected Population Growth 2025-2030 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 2025 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/

8 LOANS AND DEPOSITS BY LOCATION MSA = Metropolitan or Micropolitan Statistical Area Location based upon branch or office location Loans by MSA Seattle WA $2,255 47.3% Portland OR-WA $752 15.8% Mount Vernon WA $257 5.4% Olympia WA $189 4.0% Yakima WA $107 2.2% Bellingham WA $186 3.9% Eugene OR $83 1.7% Boise ID $86 1.8% Other $854 17.9% Deposits by MSA Seattle WA $2,628 44.9% Portland OR-WA $860 14.7% Mount Vernon WA $337 5.7% Olympia WA $488 8.3% Longview WA $155 2.6% Oak Harbor WA $548 9.4% Yakima WA $224 3.8% Bellingham WA $168 2.9% Other $449 7.7%

9 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. – 11 banks between $200 million and $500 million in assets – 9 banks between $500 million and $1.0 billion in assets – 13 banks between $1.0 billion and $3.5 billion in assets • Target metrics include 15% IRR and earnback of < 3 years. Bank headquarters On September 25, 2025, entered into a definitive agreement with Olympic Bancorp, Inc. - $1.7B in assets

10 $1,712 $3,651 $3,879 $4,113 $4,238 $5,553 $6,615 $7,432 $6,980 $7,175 $7,106 $7,130 $7,071 $7,012 $1,747 $1,079 $15.02 $15.68 $16.08 $16.88 $20.63 $22.10 $22.85 $24.34 $22.73 $24.44 $25.40 $25.85 $26.16 $26.62 $10.73 $11.41 $11.86 $12.70 $13.54 $15.07 $15.77 $17.19 $15.66 $17.40 $18.22 $18.70 $18.99 $19.46 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 Q1 2025 Q2 2025 Q3 2025 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

11 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 2025 • Entered into a definitive agreement with Olympic Bancorp, Inc. - $1.7B in assets Bank Acquisitions and Team Additions Bank Acquisition Pending Bank Acquisition Team Addition

FINANCIAL UPDATE

13 LOAN PORTFOLIO Loan Portfolio Composition $196 $171 $165 $167 $172 $173 $344 $375 $403 $393 $384 $375 $294 $414 $479 $453 $433 $442 $693 $718 $843 $851 $831 $819 $937 $959 $1,003 $985 $1,015 $1,023 $1,587 $1,698 $1,909 $1,916 $1,940 $1,938 Consumer Residential real estate Construction & land development Commercial and Industrial (C&I) Owner-occupied CRE Non-owner occupied CRE 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 New Loan Commitments $24 $21 $18 $20 $24 $2 $— $— $— $— $35 $85 $64 $88 $141 $128 $101 $59 $49 $94$90 $130 $60 $111 $81 Consumer Residential real estate Construction & land development Commercial and Industrial (C&I) Commercial Real Estate (CRE) Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025

14 LOC Utilization Rates 29.8% 28.2% 29.7% 30.7% 32.5% 31.0% 42.9% 53.8% 70.2% 68.0% 64.7% 60.8% 31.1% 31.1% 31.6% 32.3% 33.9% 34.5% Utilization Rate - Consumer LOCs Utilization Rate - Construction LOCs Utilization Rate - C&I LOCs 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 Construction Commitments $686 $769 $682 $666 $669 $727 $294 $414 $479 $453 $433 $442 $392 $355 $203 $213 $236 $285 Outstanding Balance Available Credit 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 LINE OF CREDIT ("LOC") UTILIZATION

15 COMMERCIAL LOAN EXPOSURE Commercial Business Loans by Industry Exposure Industry Amount WARR at 09/30/25 Real estate, rental and leasing $2,122 4.5 Health care and social assistance 342 4.3 Accommodation and food services 179 5.2 Retail trade 143 4.7 Construction 167 5.0 Other services (except Public administration) 124 4.6 Manufacturing 91 5.0 All other industries 612 4.4 Total $3,780 4.6 CRE Loans only by Collateral Type Collateral Type Amount WARR at 09/30/25 Office $582 4.3 Industrial 517 4.5 Retail store / shopping center 318 4.7 Multi-family 442 4.7 Mixed use property 162 4.6 Motel / hotel 132 5.0 Single purpose 127 4.7 Warehouse 128 4.6 Mini-storage 158 4.2 Recreational / school 81 4.9 Other 314 4.5 Total $2,961 4.5 WARR = Weighted average risk rating Categorized by NAICS code. Office - Owner-occupied CRE 9.8% Office - Non-owner occupied CRE 9.9% Industrial 17.5% Retail store / shopping center 10.7% Multi-family 14.9% Mixed use property 5.5% Motel / hotel 4.5% Single purpose 4.3% Warehouse 4.3% Mini-storage 5.3% Recreational / school 2.7% Other 10.6% Real estate, rental and leasing 56.1% Health care and social assistance 9.0% Accommodation and food services 4.7% Retail trade 3.8% Construction 4.4% Other Services (except Public administration) 3.3% Manufacturing 2.4% All other industries 16.3%

16 CHANGES IN LOANS RECEIVABLE $4,775 $174 $(76) $(56) $(48) $4,769 Loans receivable at June 30, 2025 Loans originated Prepayments Maturities / Payoffs Net advances/ payments Loans receivable at September 30, 2025 $4,802 $410 $(214) $(154) $(75) $4,769 Loans receivable at December 31, 2024 Loans originated Prepayments Payoffs Net advances/ payments Loans receivable at September 30, 2025 Change in loans - Q3 2025 Change in loans - YTD 2025

17 CRE OFFICE CRE Office Loans by Size Size WARR(2) # of Loans Total Balance(1) Average Balance Per Loan(1) >$10 Million 3.3 5 $ 74,372 $ 14,874 $5-$10 Million 4.1 15 94,313 6,288 $2-$5 Million 4.5 47 143,032 3,043 <$2 Million 4.6 449 270,619 603 TOTAL 4.3 516 $ 582,336 $ 1,129 Quality of CRE Office Portfolio: • 82.0% of loans have recourse to owner • 49.7% of loans are owner occupied which are considered to have a lower risk profile • 24.3% of loans are borrowers in the health care and social assistance sectors, who are less likely to reduce office space CRE Office Loans by Industry Type Health Care and Social Assistance 24.3% Professional, Scientific, and Technical Services 3.2% Finance and Insurance 2.6% Other Services (except Public Administration) 3.0% Accommodation and Food Services 1.0% All Other 65.9% (1) Dollars in thousands (2) Weighted average risk rating

18 Net charge-offs (recoveries) on loans to average loans, annualized (0.03)% (0.01)% 0.06% 0.03% 0.22% 0.00% 0.03% 0.04% 0.01% 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 (0.10)% 0.00% 0.10% 0.20% 0.30% Nonaccrual Loans $6 $4 $4 $4 $10 $18 Nonaccrual loans Nonaccrual loans to loans receivable 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 0.15% 0.10% 0.08% 0.09% 0.21% 0.37% NONACCRUAL LOANS AND NET CHARGE-OFFS

19 CRITICIZED LOANS $135 $150 $179 $178 $213 $195 $60 $65 $64 $60 $89 $77 $69 $80 $111 $114 $114 $100 Substandard - nonaccrual Substandard - accrual Special mention 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 Criticized Loans by Loan Segment Commercial & industrial 36.9% Owner- occupied CRE 16.9% Non-owner occupied CRE 29.3% Residential real estate 0.7% Construction & land development 15.2% Consumer 1.0% Criticized Loans by Collateral Type Motel/Hotel 7.9% Office 3.5% Multi-Family 13.2% Retail Store/Shopping Center 8.0%Mixed Use Property 5.2% Elder Care 4.0% Farm-Bldgs/Land 5.8% Industrial 3.2% Duplex/Tri-Plex/4-Plex 3.0% Other CRE 19.0% Non-CRE 27.2% $6 $4 $4 $4 $10 $18

20 CRITICIZED LOANS AND NET CHARGE-OFF HISTORY Criticized Loans to Total Loans 3.63% 3.79% 6.50% 4.81% 3.34% 3.45% 3.73% 4.48% 2.19% 2.05% 3.47% 2.63% 1.96% 2.32% 2.66% 3.19% Heritage Peer Median 2018 2019 2020 2021 2022 2023 2024 Q2 2025 YTD Net Charge-offs to Average Loans 0.06% 0.09% 0.07% 0.01% (0.03)% (0.01)% 0.06% 0.03% 0.07% 0.11% 0.05% 0.03% 0.02% 0.07% 0.05% 0.07% Heritage Peer Median 2018 2019 2020 2021 2022 2023 2024 Q2 2025 YTD (1) Criticized loans includes loans graded special mention or worse (2) Peer Median is the median of 17 identified peer banks and is as of June 30, 2025 Proactive Credit Management • Heritage proactively downgrades loans that are experiencing financial difficulty. • Criticized loans(1) to total loans higher than peer median(2) since 2018 • NCOs recognized during the same period were generally lower than peer median.

21 ACL on Loans $42,986 $47,999 $52,468 $52,160 $52,529 $53,974 1.06% 1.11% 1.09% 1.09% 1.10% 1.13% ACL on loans ($) ACL on loans / Loans (%) 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 ALLOWANCE FOR CREDIT LOSSES ("ACL") ON LOANS $52,529 $31 $1,665 $(213) $(38) $53,974 June 30, 2025 Change in loan balance Change in collective rate Change in rate and balance Individually evaluated loans September 30, 2025 Change in ACL on Loans - Q3 2025 Dollars in thousands

22 Average Deposit Balances and Cost of Total Deposits $6,322 $5,706 $5,618 $5,789 $5,675 $5,715 $5,744 $5,779 $5,843 0.11% 0.69% 1.34% 1.38% 1.42% 1.39% 1.38% 1.40% 1.37% 2.02% 1.98% 1.92% 1.94% 1.89% 0.17% 1.03% 1.90% 1.92% Average deposits Cost of total deposits Cost of int-bearing deposits 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 DEPOSITS Deposit Composition 35.5% 30.6% 29.1% 27.7% 27.4% 27.6% 30.9% 28.7% 25.8% 26.1% 25.7% 26.1% 17.9% 19.5% 20.5% 21.9% 22.6% 22.7% 10.5% 8.7% 7.4% 7.4% 7.3% 7.3% 5.2% 12.4% 17.2% 16.9% 17.0% 16.3% Noninterest demand deposits Interest bearing demand deposits Money market accounts Savings accounts Certificates of deposit 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025

23 DEPOSIT COMPOSITION Customer Deposits by Relationship Size $804 $378 $1,406 $1,518 $1,751 Over $10MM $5MM-$10MM $1MM-5MM $250K-$1MM Less than $250K Consumer Accounts vs. Business Accounts 25% 59% 16% Consumer Commercial CDs Insured vs. Uninsured 43% 57% Insured Uninsured Deposit portfolio as of September 30, 2025: • Majority of deposits are to customers with relationships of $1 million or less. • Uninsured deposits at 43% of total deposits. 12% of uninsured deposits are public deposits that are 100% pledged. • Mix of commercial and consumer accounts.

24 Investment Balances and Investment Yield $2,098 $1,874 $1,468 $1,313 $1,572 $1,468 $1,414 $1,346 $1,313 $1,203 $178 $33 $85 $28 $57 2.48% 3.02% 3.33% 3.36% 3.34% 3.29% 3.34% 3.38% 3.35% Portfolio yield New purchases 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 INVESTMENT PORTFOLIO Portfolio Duration 4.93 4.85 4.55 4.48 4.08 3.37 2.33 3.85 4.56 4.55 4.59 4.68 4.48 4.04 3.76 Duration - total portfolio Duration - new purchases only (1) 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 (1) No investments were purchased during Q3 2024, Q4 2024 or Q3 2025

25 $41 $48 $38 $38 $33 $57 $43 $35 $29 $58 $87 $54 $30 $38 $28 $28 $24 $48 $34 $26 $21 $50 $80 $47 $11 $10 $10 $10 $9 $9 $9 $9 $8 $8 $7 $7 Interest Principal Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027 Q1 2028 Q2 2028 Q3 2028 INVESTMENT CASHFLOWS Investment cashflows(1) are estimated to be $561 million through Q3 of 2028. (1) Cashflow estimates based on third-party bond accounting service

26 INVESTMENT PORTFOLIO HTM Investment by Type US government and agencies 20.6% Residential CMO and MBS 34.2% Commercial CMO and MBS 45.2% Available for sale ("AFS") and held to maturity ("HTM") investment securities percentages are based on fair value as of September 30, 2025 unless otherwise noted Strong Credit Quality of Portfolio: AFS Securities • 89.8% of AFS in U.S. government and agency securities • Only 1.1% of AFS are rated less than AA • 99.9% 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 1.8% Municipal securities 8.1% Residential CMO and MBS 47.3% Commercial CMO and MBS 40.6% Corporate obligations 1.1% Other asset-backed securities 1.1%

27 Net Interest Margin 3.33% 3.56% 3.31% 3.53% 3.30% 3.36% 3.44% 3.51% 3.64% 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 NET INTEREST MARGIN Quarterly Change in Net Interest Margin 3.51% 0.04% (0.04)% 0.03% 0.02% 0.08% 3.64% QTD Q2 2025 Loans Investments Interest earning deposits Deposits Borrowings QTD Q3 2025 Net Interest Income $219,385 $225,155 $209,364 $166,044 $52,958 $53,763 $53,690 $54,983 $57,371 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025

28 Adjustable Rate Loans - Repricing Schedule $1,053 $151 $153 $197 $324 $358 $106 6.81% 4.07% 4.63% 6.02% 6.25% 6.15% 5.06% 6.82% 6.40% 6.22% 6.07% 6.27% 6.28% 6.53% 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 (1) Weighted Average Rate as of September 30, 2025 and repricing period signifies the sooner of the next scheduled reprice date or maturity (2) Weighted Average Rate if Repriced as of September 30, 2025 and assumes same index and margin Adjustable Rate Loans • $2.3 billion in total • 55% tied to FHLB index, 20% tied to Prime, 25% tied to SOFR Fixed Rate Loans - Maturity Schedule $117 $104 $159 $240 $238 $285 $1,265 5.05% 5.21% 4.68% 5.28% 5.27% 4.78% 4.45% 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 Fixed Rate Loans • $2.4 billion in total

29 PROFITABILITY TRENDS ROAA and Adjusted ROAA(1) 1.12% 0.86% 0.61% 0.86% 0.63% 0.66% 0.79% 0.70% 1.09% 1.12% 0.99% 0.88% 1.04% 0.87% 0.99% 0.97% 1.03% 1.11% ROAA Adjusted ROAA (1) 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Noninterest Expense/Avg. Assets 2.06% 2.33% 2.22% 2.35% 2.18% 2.20% 2.36% 2.34% 2.36% 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 ROAA = Return on average assets (1) Represents a non-GAAP financial measure

30 $81.9 $61.8 $43.3 $45.3 $81.8 $70.9 $62.9 $54.8 Net income Adjusted Net income (1) 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $11.4 $11.9 $13.9 $12.2 $19.2 $15.7 $17.9 $17.0 $18.1 $19.7 PROFITABILITY TRENDS ROAE, ROATCE(1) and Adjusted ROATCE(1) Net Income and Adjusted Net Income(1), in millions 14.92% 12.76% 10.53% 11.67% 10.42% 11.59% 11.21% 11.59% 12.16%14.94% 11.15% 7.31% 9.67% 7.62% 7.81% 9.22% 7.85% 11.86% 10.08% 7.55% 5.06% 6.88% 5.30% 5.46% 6.51% 5.57% 8.52% ROAE ROATCE (1) Adjusted ROATCE (1) 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 ROAE = Return on average equity ROATCE = Return on average tangible common equity (1) Represents a non-GAAP financial measure

31(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 11.4% 11.9% 12.2% 12.4% 12.6% 12.9% 8.2% 8.8% 9.0% 9.3% 9.4% 9.8% Stockholders' equity to total assets (GAAP) Tangible common equity to tangible assets(1) 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 12.8% 12.9% 12.0% 12.2% 12.2% 12.4% 9.7% 10.0% 10.0% 10.2% 10.3% 10.5% 14.0% 14.1% 13.3% 13.6% 13.6% 13.8% Total Risk Based Capital Tier 1 Leverage Ratio Common Equity Tier 1 2022 2023 2024 Q1 2025 Q2 2025 Q3 2025 Regulatory Capital Ratios(2)

32 LIQUIDITY POSITION (1) Includes FHLB borrowing availability of $1.28 billion at September 30, 2025 based on pledged assets, however, maximum credit capacity is 45% of the Bank's total assets one quarter in arrears or $3.18 billion Liquidity position at September 30, 2025: • Sufficient liquidity to cover estimated uninsured deposits of $2.5 billion. • Access to brokered deposits of $801 million per internal company policy. Liquidity Sources $2,525 $2,345 $2,542 $2,379 $2,509 $1,068 $976 $1,084 $978 $1,141 $288 $360 $366 $346 $347 $848 $746 $698 $656 $631 $176 $117 $249 $254 $245 $145 $145 $145 $145 $145 112.6% 103.1% 109.3% 100.4% 100.6% 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 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025

SHAREHOLDER RETURN

34 TOTAL SHAREHOLDER RETURN Stock Summary(2) Ticker HFWA Exchange Nasdaq Stock price $24.39 Market capitalization (in millions) $827.9 Dividend yield (regular dividend only) 3.94 % Average Daily Volume (3 month) Average daily volume (shares) 204,109 Average daily volume ($000s) $4,977 52-Week High and Low Price 52-week high (November 25, 2024) $27.58 52-week low (April 9, 2025.) $19.84 Per Share Tangible book value per share(1) $19.46 EPS - 2025E $2.08 EPS - 2026E $2.49 Number of research analysts 6 Valuation Ratios Price / Tangible book value(1) 125.3 % Price / 2025E EPS 11.7 Price / 2026E EPS 9.8 Dividends Per Share Declared(3) 0.72 0.61 0.72 0.84 0.80 0.81 0.84 0.88 0.92 0.96 $0.11 $0.12 $0.15 $0.18 $0.20 $0.20 $0.21 $0.22 $0.23 $0.24 $0.12 $0.13 $0.15 $0.18 $0.20 $0.20 $0.21 $0.22 $0.23 $0.24 $0.12 $0.13 $0.15 $0.19 $0.20 $0.20 $0.21 $0.22 $0.23 $0.24 $0.12 $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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025(1) Represents a non-GAAP financial measure (2) Market information as of October 6, 2025 and earnings per share and valuation ratios are based on analysts consensus (3) Dividend information as of October 22, 2025 $2.31 $2.01 $1.80 $1.59$2.31 $1.75 $1.24 $1.31 $0.45 $0.51 $0.49 $0.53 $0.56 $0.33 $0.34 $0.40 $0.36 $0.55 Diluted EPS Adjusted Diluted EPS(1) 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Diluted EPS and Adjusted Diluted EPS(1)

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

36 NON-GAAP FINANCIAL MEASURES Dollars in thousands 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Adjusted Net Income and Adjusted Return on Average Assets ("ROAA"): Net income (GAAP) $ 81,875 $ 61,755 $ 43,258 $ 45,295 $ 11,423 $ 11,928 $ 13,911 $ 12,215 $ 19,169 Exclude (gain) loss on sale of investment securities, net 256 12,231 22,742 10,741 6,945 3,903 3,887 6,854 — Exclude gain on sale of branch including related deposits, net — (610) — — — — — — — Exclude merger related costs — — — 635 — — — — 635 Exclude gain on sale of premise and equipment (403) — (1,552) (8) (1,480) (23) (3) (5) — Exclude tax effect of adjustments 31 (2,440) (4,450) (2,387) (1,148) (815) (816) (1,438) (133) Exclude BOLI restructuring costs included in BOLI Income — — 508 — — 508 — — — Exclude tax expense related to BOLI restructuring — — 2,371 515 — 2,371 — 515 — Adjusted net income (non-GAAP) $ 81,759 $ 70,936 $ 62,877 $ 54,791 $ 15,740 $ 17,872 $ 16,979 $ 18,141 $ 19,671 Average total assets $ 7,321,455 $ 7,140,024 $ 7,133,046 $ 7,051,748 $7,182,921 $7,149,294 $7,103,227 $7,046,943 $7,006,140 ROAA, annualized (GAAP) 1.12 % 0.86 % 0.61 % 0.86 % 0.63 % 0.66 % 0.79 % 0.70 % 1.09 % Adjusted ROAA, annualized (non-GAAP) 1.12 % 0.99 % 0.88 % 1.04 % 0.87 % 0.99 % 0.97 % 1.03 % 1.11 %

37 NON-GAAP FINANCIAL MEASURES 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Return on Average Tangible Common Equity ("ROATCE") and Adjusted ROATCE: Net income (GAAP) $ 81,875 $ 61,755 $ 43,258 $ 45,295 $ 11,423 $ 11,928 $ 13,911 $ 12,215 $ 19,169 Add amortization of intangible assets 2,750 2,434 1,640 889 399 399 303 302 284 Exclude tax effect of adjustment (578) (511) (344) (187) (84) (84) (64) (63) (60) Tangible net income (non-GAAP) $ 84,047 $ 63,678 $ 44,554 $ 45,997 $ 11,738 $ 12,243 $ 14,150 $ 12,454 $ 19,393 Tangible net income (non-GAAP) $ 84,047 $ 63,678 $ 44,554 $ 45,997 $ 11,738 $ 12,243 $ 14,150 $ 12,454 $ 19,393 Exclude (gain) loss on sale of investment securities, net 256 12,231 22,742 10,741 6,945 3,903 3,887 6,854 — Exclude gain on sale of branch including related deposits, net — (610) — — — — — — — Exclude merger related costs — — — 635 — — — — 635 Exclude gain on sale of premise and equipment (403) — (1,552) (8) (1,480) (23) (3) (5) — Exclude tax effect of adjustments 31 (2,440) (4,450) (2,387) (1,148) (815) (816) (1,438) (133) Exclude BOLI restructuring costs included in BOLI Income — — 508 — — 508 — — — Exclude tax expense related to BOLI restructuring — — 2,371 515 — 2,371 — 515 — Adjusted tangible net income (non-GAAP) $ 83,931 $ 72,859 $ 64,173 $ 55,493 $ 16,055 $ 18,187 $ 17,218 $ 18,380 $ 19,895 Average stockholders' equity (GAAP) $ 811,942 $ 818,042 $ 854,172 $ 879,666 $ 857,799 $ 868,308 $ 866,629 $ 879,808 $ 892,280 Exclude average intangible assets (249,566) (246,965) (244,910) (243,646) (244,706) (244,302) (243,945) (243,651) (243,350) Average tangible common stockholders' equity (non-GAAP) $ 562,376 $ 571,077 $ 609,262 $ 636,020 $ 613,093 $ 624,006 $ 622,684 $ 636,157 $ 648,930 ROAE, annualized (GAAP) 10.08 % 7.55 % 5.06 % 6.88 % 5.30 % 5.46 % 6.51 % 5.57 % 8.52 % ROATCE, annualized (non-GAAP) 14.94 % 11.15 % 7.31 % 9.67 % 7.62 % 7.81 % 9.22 % 7.85 % 11.86 % Adjusted ROATCE, annualized (non-GAAP) 14.92 % 12.76 % 10.53 % 11.67 % 10.42 % 11.59 % 11.21 % 11.59 % 12.16 % Dollars in thousands

38 NON-GAAP FINANCIAL MEASURES 2022 2023 2024 2025 YTD Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Diluted Earnings per Share and Adjusted Diluted Earnings per Share: Net income (GAAP) $ 81,875 $ 61,755 $ 43,258 $ 45,295 $ 11,423 $ 11,928 $ 13,911 $ 12,215 $ 19,169 Exclude (gain) loss on sale of investment securities, net 256 12,231 22,742 10,741 6,945 3,903 3,887 6,854 — Exclude gain on sale of branch including related deposits, net — (610) — — — — — — — Exclude merger related costs — — — 635 — — — — 635 Exclude gain on sale of premise and equipment (403) — (1,552) (8) (1,480) (23) (3) (5) — Exclude tax effect of adjustments 31 (2,440) (4,450) (2,387) (1,148) (815) (816) (1,438) (133) Exclude BOLI restructuring costs included in BOLI Income — — 508 — — 508 — — — Exclude tax expense related to BOLI restructuring — — 2,371 515 — 2,371 — 515 — Adjusted net income (non-GAAP) $ 81,759 $ 70,936 $ 62,877 $ 54,791 $ 15,740 $ 17,872 $ 16,979 $ 18,141 $ 19,671 Average number of diluted shares outstanding 35,463,896 35,258,189 34,899,036 34,481,877 34,658,674 34,553,139 34,506,238 34,446,710 34,413,386 Diluted earnings per share (GAAP) $ 2.31 $ 1.75 $ 1.24 $ 1.31 $ 0.33 $ 0.34 $ 0.40 $ 0.36 $ 0.55 Adjusted diluted earnings per share (non- GAAP) $ 2.31 $ 2.01 $ 1.80 $ 1.59 $ 0.45 $ 0.51 $ 0.49 $ 0.53 $ 0.56 Dollars in thousands

39 2016 2017 2018 2019 2020 2021 2022 2023 2024 Tangible Book Value Per Share: Total stockholders' equity (GAAP) $ 481,763 $ 505,305 $ 760,723 $ 809,311 $ 820,439 $ 854,432 $ 797,893 $ 853,261 $ 863,527 Exclude intangible assets (126,403) (125,117) (261,553) (257,552) (254,027) (250,916) (248,166) (245,732) (244,092) Tangible common equity (non-GAAP) $ 355,360 $ 380,188 $ 499,170 $ 551,759 $ 566,412 $ 603,516 $ 549,727 $ 607,529 $ 619,435 Shares outstanding 29,954,931 29,927,746 36,874,055 36,618,729 35,912,243 35,105,779 35,106,697 34,906,233 33,990,827 Book value per share (GAAP) $ 16.08 $ 16.88 $ 20.63 $ 22.10 $ 22.85 $ 24.34 $ 22.73 $ 24.44 $ 25.40 Tangible book value per share (non-GAAP) $ 11.86 $ 12.70 $ 13.54 $ 15.07 $ 15.77 $ 17.19 $ 15.66 $ 17.40 $ 18.22 Moved to 2nd slide Tangible Book Value Per Share (cont'd): 2025 2025 2025 Q1 Q2 Q3 Total stockholders' equity (GAAP) $ 881,515 $ 888,212 $ 904,064 Exclude intangible assets (243,789) (243,487) (243,203) Tangible common equity (non-GAAP) $ 637,726 $ 644,725 $ 660,861 Shares outstanding 34,105,516 33,953,194 33,956,738 Book value per share (GAAP) $ 25.85 $ 26.16 $ 26.62 Tangible book value per share (non-GAAP) $ 18.70 $ 18.99 $ 19.46 NON-GAAP FINANCIAL MEASURES Dollars in thousands

40 NON-GAAP FINANCIAL MEASURES Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Efficiency Ratio and Adjusted Efficiency Ratio Total noninterest expense (GAAP) $ 39,290 $ 39,540 $ 41,383 $ 41,085 $ 41,615 Exclude merger related costs $ — $ — $ — $ — $ 635 Adjusted noninterest expense (non-GAAP) $ 39,290 $ 39,540 $ 41,383 $ 41,085 $ 40,980 Net interest income (GAAP) $ 52,958 $ 53,763 $ 53,690 $ 54,983 $ 57,371 Total noninterest income (GAAP) $ 1,837 $ 3,290 $ 3,903 $ 1,517 $ 8,325 Exclude (gain) loss on sale of investment securities, net 6,945 3,903 3,887 6,854 — Exclude gain on sale of premise and equipment (1,480) (23) (3) (5) — Exclude BOLI restructuring costs included in BOLI Income — 508 — — — Adjusted total non interest income (non-GAAP) $ 7,302 $ 7,678 $ 7,787 $ 8,366 $ 8,325 Efficiency ratio (GAAP) 71.7 % 69.3 % 71.9 % 72.7 % 63.3 % Adjusted efficiency ratio (non-GAAP) 65.2 % 64.4 % 67.3 % 64.9 % 62.4 % Dollars in thousands

41 As of Period End or for the Three Months Ended September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 Profitability: Net income $ 11,423 $ 11,928 $ 13,911 $ 12,215 $ 19,169 Adjusted net income(1) $ 15,740 $ 17,872 $ 16,979 $ 18,141 $ 19,671 Diluted earnings per share $ 0.33 $ 0.34 $ 0.40 $ 0.36 $ 0.55 Adjusted diluted earnings per share (1) $ 0.45 $ 0.51 $ 0.49 $ 0.53 $ 0.56 Return on average assets 0.63 % 0.66 % 0.79 % 0.70 % 1.09 % Adjusted return on average assets(1) 0.87 % 0.99 % 0.97 % 1.03 % 1.11 % Return on average common equity 5.30 % 5.46 % 6.51 % 5.57 % 8.52 % Return on average tangible common equity(1) 7.62 % 7.81 % 9.22 % 7.85 % 11.86 % Adjusted return on average tangible common equity(1) 10.42 % 11.59 % 11.21 % 11.59 % 12.16 % Net interest margin 3.30 % 3.36 % 3.44 % 3.51 % 3.64 % Efficiency ratio 71.7 % 69.3 % 71.9 % 72.7 % 63.3 % Adjusted efficiency ratio(1) 65.2 % 64.4 % 67.3 % 64.9 % 62.4 % Noninterest expense to average total assets 2.18 % 2.20 % 2.36 % 2.34 % 2.36 % Balance Sheet: Total assets $ 7,153,363 $ 7,106,278 $ 7,129,862 $ 7,070,641 $ 7,011,879 Loans receivable $ 4,679,479 $ 4,802,123 $ 4,764,848 $ 4,774,855 $ 4,769,160 Total deposits $ 5,708,492 $ 5,684,613 $ 5,845,335 $ 5,784,413 $ 5,857,464 Loan to deposit ratio 82.0 % 84.5 % 81.5 % 82.5 % 81.4 % Capital: Book value per share $ 25.61 $ 25.40 $ 25.85 $ 26.16 $ 26.62 Tangible book value per share(1) $ 18.45 $ 18.22 $ 18.70 $ 18.99 $ 19.46 Leverage ratio 9.9 % 10.0 % 10.2 % 10.3 % 10.5 % Total capital ratio 13.6 % 13.3 % 13.6 % 13.6 % 13.8 % Credit Quality: Nonperforming assets to total assets 0.13 % 0.07 % 0.06 % 0.26 % 0.30 % ACL on loans to loans receivable 1.10 % 1.09 % 1.09 % 1.10 % 1.13 % Dollars in thousands (1) Represents a non-GAAP financial measure QUARTERLY FINANCIAL STATISTICS

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