Heritage Bank
Olympia, Washington · $8.42B in assets · beside the 11 other the Pacific states banks between $3B and $10B (the state alone holds too few in the band to rank)
The filing
Heritage Bank is the fourth largest of the 12 the Pacific states banks nearest its size between $3B and $10B, with $8.42B in assets at 30 June 2026. Loans are 81.6% of deposits, 6th of 12 against a median of 83.7%, and equity is 13.3% of assets, 2nd of 11. Loans grew +20.4% in the year, 2nd of 11, and deposits grew 21.7%; the cohort's median loan growth is +5.1%.
Noncurrent loans are 0.27% of the book, 5th of 11 against a median of 0.30%; 0.25% is 30 to 89 days past due, and the allowance covers them 3.8 times. Commercial real estate is 45.9% of loans, 6th of 11 against a median of 45.9%, and 295% of capital, below the 300% screen, with construction at 44% against the 100% screen.
Return on assets is 0.99%, 10th of 11 against a median of 1.23%, on an efficiency ratio of 70.6%, 10th of 11. Five years ago it was 1.72%. The question is whether the new lending seasons as cleanly as the book it joined, and what funded it.
SBA 7(a), FY2008 to FY2026
Heritage Bank is the 9th largest 7(a) lender into Washington of 281, with $437M across 947 loans, 3.3% of everything approved in the state (U.S. Bank, National Association leads with $933M). 8 of its 32 markets have had no approvals since before FY2023: an absence in the record, not a stated withdrawal.
| County | Approved | Rank | Share | Trend |
|---|---|---|---|---|
| King, WA | $145M | 8th of 193 | 3.1% | -0.6 pts |
| Pierce, WA | $101M | 2nd of 137 | 6.3% | +0.0 pts |
| Snohomish, WA | $43M | 13th of 127 | 2.7% | -1.3 pts |
| Multnomah, OR | $25M | 12th of 140 | 1.5% | -1.8 pts |
| Whatcom, WA | $22M | 4th of 76 | 5.2% | -4.9 pts |
| Thurston, WA | $21M | 8th of 96 | 3.8% | +9.3 pts |
| Skagit, WA | $18M | 2nd of 67 | 7.1% | -3.3 pts |
| Kitsap, WA | $18M | 8th of 83 | 4.6% | -0.1 pts |
| Washington, OR | $15M | 12th of 122 | 1.6% | +0.8 pts |
| Clark, WA | $13M | 13th of 114 | 1.7% | +3.9 pts |
| Spokane, WA | $11M | 16th of 105 | 1.3% | thin |
| Mason, WA | $11M | 1st of 39 | 11.3% | -12.6 pts |
| Island, WA | $8M | 5th of 41 | 8.2% | +2.4 pts |
| Industry | Loans | Approved | Share of book | Share of sector | Rank |
|---|---|---|---|---|---|
| Accommodation & food services | 202 | $91M | 18.6% | 0.12% | 153rd of 2,596 |
| Manufacturing | 103 | $69M | 14.1% | 0.17% | 100th of 2,246 |
| Construction | 93 | $57M | 11.5% | 0.18% | 90th of 2,063 |
| Wholesale trade | 54 | $52M | 10.7% | 0.20% | 93rd of 1,651 |
| Professional & technical services | 106 | $49M | 10.1% | 0.15% | 93rd of 1,955 |
Commercial real estate against capital
| Heritage Bank | Rank | Cohort median | |
|---|---|---|---|
| Total CRE against capital, the 300% screen | 295% | 6th of 11 | 295% |
| Construction against capital, the 100% screen | 44% | 8th of 11 | 24% |
| Construction and land development, share of loans | 6.9% | 8th of 11 | 4.0% |
| Non-owner-occupied nonfarm nonresidential, share of loans | 29.8% | 6th of 10 | 28.0% |
| Total CRE, the guidance definition, share of loans | 45.9% | 6th of 11 | 45.9% |
| CRE growth over 36 months, the third prong | +44.4% | 9th of 11 | +19.9% |
Among its peers
| Institution | Assets | ROA | Efficiency | NPA / loans | Net charge-offs | Allowance / loans | Loans / deposits | Equity / assets |
|---|---|---|---|---|---|---|---|---|
| $9.93B | 1.4% | 54.8% | 0.94% | 0.03% | 1.8% | 87.3% | 13.9% | |
| $9.23B | 1.4% | 32.8% | no record | no record | no record | 0.0% | 5.6% | |
| $9.05B | 1.2% | 61.0% | 0.19% | 0.01% | 1.0% | 75.8% | 7.7% | |
| $8.42B | 1.0% | 70.6% | 0.27% | 0.03% | 1.0% | 81.6% | 13.3% | |
| $8.32B | 1.3% | 43.2% | 1.89% | 0.38% | 1.4% | 92.8% | 8.9% | |
| $7.95B | 1.3% | 51.1% | 0.15% | 0.12% | 1.1% | 94.1% | 11.2% | |
| $7.73B | 1.7% | 33.0% | 1.57% | 0.17% | 1.2% | 97.0% | 10.3% | |
| $7.50B | 1.2% | 57.3% | 0.30% | 0.19% | 1.1% | 79.2% | 8.5% | |
| $7.39B | no record | no record | 0.12% | no record | no record | 79.0% | no record | |
| $6.60B | -3.4% | 16.5% | 0.30% | 4.97% | 0.0% | 48.2% | 11.5% | |
| $6.04B | 1.2% | 30.6% | 0.00% | 0.00% | 2.3% | 85.7% | 9.4% | |
| $5.97B | 1.2% | 73.4% | 0.39% | 0.01% | 1.6% | 90.6% | 7.8% |
| Heritage Bank | Cohort median | |||||
|---|---|---|---|---|---|---|
| 2021 | 2026 | Change | 2021 | 2026 | Change | |
| Loans | $4.21B | $5.75B | +37% | $3.93B | $5.53B | +41% |
| Deposits | $6.08B | $7.04B | +16% | $5.32B | $6.59B | +24% |
| NPA / loans | 0.85% | 0.27% | -0.58 pts | 0.66% | 0.30% | -0.36 pts |
| Efficiency | 57.6% | 70.6% | +13.0 pts | 51.3% | 51.1% | -0.2 pts |
| ROA | 1.72% | 0.99% | -0.73 pts | 1.38% | 1.23% | -0.15 pts |
This read was prepared for Heritage Bank's board and management from the public record, and is one slice of what Lynx builds for any bank from its own filing: the peer cohort, the capital, liquidity and rate models with the assumptions the institution sets, and a summary report of twenty sections for the board.
The full pack on Heritage Bank is prepared on request, and thirty days on the institution's own numbers are open to anyone at the bank.
Ask for the packPrepared 7 September 2026
Filing 30 June 2026
Cohort Pacific states banks $3B to $10B
Institution www.heritagebanknw.com
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