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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
$825.49M
P/E (TTM)
14.4
15.1
Dividend Yield
3.9%
52W High
$26.92
52W Low
$19.84
52W Range
63%
Rank40Top 31.7%
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: 2016-2025

Financial Dashboard

Q3 2025 Data

Revenue

$87.83M+7.57%
4-Quarter Trend

EPS

$0.56+69.70%
4-Quarter Trend

FCF

$24.39M+4.98%
4-Quarter Trend

2025 Q3 Earnings Highlights

Key Highlights

Net Income Soars 68% Q3 Net Income reached $19.2M, up 67.8% YoY, driven by strong NIM expansion and lower interest expense on borrowings.
NIM Expansion Strong Nine-month NIM improved 24 basis points to 3.53% due to higher loan yields and reduced funding costs compared to prior year.
Capital Ratios Solid Company Total Capital Ratio stood at 13.8% (Well Capitalized threshold 10.0%), demonstrating strong regulatory capital strength.
Loan Portfolio Shrinks Net Loans Receivable decreased 0.7% to $4.72B since year-end, reflecting lower production offset by prepayments and paydowns.

Risk Factors

Nonperforming Assets Spike Total nonperforming assets surged 297.2% to $21.0M, driven by significant additions to nonaccrual loans during the period.
Credit Loss Provision Rises Provision for credit losses increased 42.2% for the quarter to $1.78M, reflecting higher expected losses on construction loans.
Merger Integration Uncertainty Pending acquisition of Olympic introduces risks related to integration execution, realizing synergies, and potential litigation outcomes.
Investment Securities Decline Available-for-sale securities fell 17.4% to $631M due to strategic balance sheet repositioning sales, impacting asset base.

Outlook

NIM Sensitivity Managed Interest rate risk modeling shows asset sensitivity, with a positive $6.9M estimated NII shock benefit under a +200 bps scenario.
Credit Quality Monitoring Management expects future ACL to be impacted by economic forecasts and ongoing assessment of credit deterioration trends.
Deposit Mix Shifting Non-maturity deposits grew 4.2%, driven by money market accounts, while Certificates of Deposit declined 2.8%.
Merger Closing Focus Successful closing of the Olympic Merger remains a key strategic focus, contingent on regulatory approvals and no injunctions.

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)

Amalgamated Financial Corp.AMAL
67.5%
-3.6pp
Capitol Federal Financial, Inc.CFFN
48.9%
+3.7pp
Southside Bancshares, Inc.SBSI
22.3%
-31.4pp

Key Metrics

Symbol
Market Cap
P/E (TTM)
ROE (TTM)
Debt to Assets
AMAL$1.00B9.913.8%1.0%
SBSI$928.44M13.38.6%6.1%
NBN$881.22M10.019.8%0.0%

Long-Term Trends

Last 4 Quarters
Revenue
Net Income
Operating Cash Flow
4Q Revenue CAGR
2.2%
Moderate Growth
4Q Net Income CAGR
17.1%
Profitability Improved
Cash Flow Stability
100%
Strong Cash Flow

Research & Insights

Next earnings:Jan 22, 2026
|
EPS:$0.57
|
Revenue:$65.94M
Reports
All Years
  • Form 10-Q - Q3 2025

    Period End: Sep 30, 2025|Filed: Nov 7, 2025|
    Revenue: $87.83M+7.6%
    |
    EPS: $0.56+69.7%
    Meet
  • 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