Heritage Bank: Yields and Funding Costs
Data as of · Call Report Schedules RI and RC-K How we update
What the bank earns on its assets, what it pays for its funding, and the spread between them. Net interest margin is the output of the two: it is the engine of earnings for almost every commercial bank.
Compared with Q1 2026, Total interest expense rose 6.7% in Q2 2026 to $22.4M, the biggest move on this page. Heritage Bank ranks 12th of 29 Washington banks on net interest margin, in the upper half at 4.00% (Q2 2026). Heritage Bank reported 4.00% on net interest margin for Q2 2026, 0.29 points above the 3.71% median for banks in the $1B-10B asset tier.
Asset yields
| Line item | Q2 2026 |
|---|---|
| Yield on earning assets | 5.18% |
| Yield on loans | 5.73% |
| Yield on securities | 3.45% |
Funding costs
| Line item | Q2 2026 |
|---|---|
| Cost of funds | 1.24% |
| Cost of interest-bearing deposits | 1.67% |
| Cost of interest-bearing liabilities | 1.72% |
| Cost of borrowings | 3.94% |
Spread and margin
| Line item | Q2 2026 |
|---|---|
| Net interest margin | 4.00% |
| Yield to cost spread | 3.46% |
Interest income and expense
| Line item | Q2 2026 |
|---|---|
| Interest income on loans | $81.6M |
| Total interest expense | $22.4M |
| Interest expense on deposits | $21.4M |
Yields and Funding Costs trend
Last 12 quarters as filed. Every value plotted here also appears in the tables above.
Yields and Funding Costs by quarter
| Quarter | Yield on earning assets | Cost of funds | Net interest margin | Loans | Securities |
|---|---|---|---|---|---|
| Q3 2023 | 4.53% | 1.12% | 3.47% | 5.32% | 2.87% |
| Q4 2023 | 4.62% | 1.30% | 3.39% | 5.37% | 2.96% |
| Q1 2024 | 4.67% | 1.47% | 3.28% | 5.35% | 3.12% |
| Q2 2024 | 4.81% | 1.65% | 3.25% | 5.46% | 3.19% |
| Q3 2024 | 4.96% | 1.73% | 3.34% | 5.61% | 3.23% |
| Q4 2024 | 4.93% | 1.63% | 3.40% | 5.54% | 3.19% |
| Q1 2025 | 4.85% | 1.53% | 3.40% | 5.41% | 3.15% |
| Q2 2025 | 4.97% | 1.53% | 3.52% | 5.52% | 3.25% |
| Q3 2025 | 5.06% | 1.45% | 3.69% | 5.61% | 3.28% |
| Q4 2025 | 5.06% | 1.36% | 3.78% | 5.63% | 3.20% |
| Q1 2026 | 5.35% | 1.24% | 4.12% | 5.97% | 3.44% |
| Q2 2026 | 5.18% | 1.24% | 4.00% | 5.73% | 3.45% |
Heritage Bank yields and funding costs, all the way back
Yields and Funding Costs back to 2001 · peer percentiles on every line item · Excel export
Unlock Heritage Bank, freeSource: Call Report Schedules RI and RC-K, as filed with the FFIEC and standardized by BankRegReports. Dollar amounts are as reported, point-in-time; income statement items are year-to-date through the report date. See the full Heritage Bank profile, peer group comparison, or how this data updates.
Regulator records: FDIC BankFind (cert 29012) · FFIEC NIC profile (RSSD 881478)