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Heritage Financial Corporation

Heritage Financial Corporation

NASDAQ•HFWA
CEO: Mr. Brian L. Vance
Sector: Financial Services
Industry: Banks - Regional
Listing Date: 1998-05-07
Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. It accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. The company's loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries that include real estate and rental and leasing, healthcare, accommodation and food services, retail trade, and construction. It also originates loans that are guaranteed by the U.S. Small Business Administration; and provides objective advice from trusted advisers. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.
Contact Information
201 Fifth Avenue SW, Olympia, WA, 98501, United States
360-943-1500
www.hf-wa.com
Market Cap
$749.04M
P/E (TTM)
13.1
14
Dividend Yield
4.4%
52W High
$27.58
52W Low
$19.84
52W Range
29%
4.5
F-Score
Modified Piotroski Analysis
Based on 10-year fundamentals
Average • 4.5 / 9 points
Scoring Range (0-9)
8-9: Excellent Value
6-7: Strong Fundamentals
4-5: Average Quality
0-3: Weak Performance
Data Period: 2015-2024

Financial Dashboard

Q3 2025 Data

Revenue

$79.51M-2.63%
4-Quarter Trend

EPS

$0.56+69.70%
4-Quarter Trend

FCF

$0.00+0.00%
4-Quarter Trend

2025 Q2 Earnings Highlights

Key Highlights

Net Income Rises Significantly Six-month net income increased 31.2% to $26.1M, driven by higher interest income and lower expense growth.
Net Interest Margin Expansion NIM improved 19 basis points to 3.47% for the six months, reflecting higher loan yields offsetting funding cost increases.
Credit Provision Easing Provision for credit losses decreased 62.1% to $1.0M for six months, indicating improved forward-looking credit outlook.
Strong Capital Position Total capital ratio stands robustly at 13.6% for the company, well exceeding regulatory requirements.

Risk Factors

Nonperforming Assets Surge Total nonperforming assets increased sharply by 250.4% to $18.5M, driven by additions to nonaccrual loans.
CRE Portfolio Concentration Loan portfolio remains heavily concentrated in commercial business and CRE, representing 79.4% of total loans.
Interest Rate Shock Exposure A 200 basis point flat rate shock could decrease net interest income by $6.3M over 12 months.
Deposit Cost Pressures Interest expense on deposits rose due to higher average balances and increased rates, pressuring funding costs.

Outlook

ACL Assessment Subjectivity ACL methodology remains subjective, requiring ongoing management assessment of economic forecasts and qualitative factors.
Balance Sheet Repositioning Strategic balance sheet repositioning included significant investment security sales, resulting in realized losses during the period.
Loan Portfolio Performance Management closely monitors modified loans; $6.9M in modified loans were 90+ days past due as of June 30, 2025.
Capital Management Focus Future capital deployment, including dividends and repurchases, remains subject to Board discretion and regulatory capital maintenance.

Peer Comparison

Revenue (TTM)

Metropolitan Bank Holding Corp.MCB
$510.83M
+6.5%
Southside Bancshares, Inc.SBSI
$454.01M
+2.4%
Amalgamated Financial Corp.AMAL
$447.73M
+4.3%

Gross Margin (Latest Quarter)

Northeast BankNBN
60.2%
+3.2 pp
Southside Bancshares, Inc.SBSI
22.3%
-31.4 pp
Metropolitan Bank Holding Corp.MCB
0.0%
+0.0 pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
SBSI$858.09M12.32.6%0.0%
AMAL$837.30M8.213.8%1.0%
CFFN$805.86M11.96.5%19.9%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
-1.1%
Flat Growth
4Q Net Income CAGR
+17.1%
Profitability Improved
Cash Flow Stability
75%
Volatile Cash Flow

Research & Insights

Reports
All Years
  • Form 10-Q - Q2 2025

    Period End: Jun 30, 2025|Filed: Aug 8, 2025|
    Revenue: $80.02M-2.2%
    |
    EPS: $0.36-12.2%
    Miss
  • Form 10-Q - Q1 2025

    Period End: Mar 31, 2025|Filed: May 6, 2025|
    Revenue: $81.27M+13.7%
    |
    EPS: $0.41+141.2%
    Miss
  • Form 10-K - FY 2024

    Period End: Dec 31, 2024|Filed: Feb 27, 2025|
    Revenue: $317.19M+4.6%
    |
    EPS: $1.26-28.4%
    Beat
  • Form 10-Q - Q3 2024

    Period End: Sep 30, 2024|Filed: Nov 6, 2024|
    Revenue: $81.65M+2.4%
    |
    EPS: $0.33-36.5%
    Miss
  • Form 10-Q - Q2 2024

    Period End: Jun 30, 2024|Filed: Aug 9, 2024|
    Revenue: $81.83M+5.8%
    |
    EPS: $0.41-14.6%
    Meet
  • Form 10-Q - Q1 2024

    Period End: Mar 31, 2024|Filed: May 7, 2024|
    Revenue: $71.45M-4.6%
    |
    EPS: $0.17-70.7%
    Miss
  • Form 10-K - FY 2023

    Period End: Dec 31, 2023|Filed: Feb 27, 2024|
    Revenue: $303.13M+17.9%
    |
    EPS: $1.76-24.5%
    Beat
  • Form 10-Q - Q3 2023

    Period End: Sep 30, 2023|Filed: Nov 9, 2023|
    Revenue: $79.74M+16.3%
    |
    EPS: $0.52-13.3%
    Beat