# Heritage Financial Lowers Fourth-Quarter Expense Outlook to $55 Million to $56 Million By John Kim Canonical URL: https://www.tokenpost.com/news/business/39005 Published: 2026-10-23T13:34:17.000Z Updated: 2026-10-23T13:34:17.000Z Section: Business > The Kitsap Bank systems conversion was completed as planned in late September. Heritage recorded $5.185 million in merger-related costs in the third quarter. Heritage Financial Corporation (Nasdaq: HFWA) lowered its fourth-quarter noninterest expense outlook to $55 million to $56 million, following completion of the Kitsap Bank systems conversion in late September. President and CEO Bryan McDonald said the conversion was completed as planned. Heritage recorded $5.185 million in merger-related costs in the third quarter after the conversion and closure of two branches. Heritage bought Kitsap Bank’s parent company, Olympic Bancorp, Inc., on Jan. 31. The costs are included in the company’s [third-quarter results](). ## Links in this article - [third-quarter results](https://www.tokenpost.com/news/business/38562)