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

$890.01M

P/E (TTM)

13.2

14.1

Dividend Yield

3.7%

52W High

$28.98

52W Low

$19.84

52W Range

70%

Rank37Top 34.1%

4.4

F-Score

Modified Piotroski Analysis

Based on 10-year fundamentals

Average • 4.4 / 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

Q4 2025 Data

Revenue

$86.85M+5.59%

4-Quarter Trend

EPS

$0.65+88.57%

4-Quarter Trend

FCF

-$30.34M+0.00%

4-Quarter Trend

2025 Annual Earnings Highlights

Key Highlights

Net Income Jumps 56% Net income reached $67.5M, driven by $15.0M NII growth and reduced securities losses compared to the prior year.

NIM Expansion Continues Net Interest Margin improved 27 basis points to 3.58%, reflecting higher asset yields despite rising funding costs for liabilities.

Deposit Base Grows Total deposits increased 4.1% to $5.92B, led by strong growth in non-maturity deposits, emphasizing relationship banking focus.

Capital Ratios Remain Strong Bank's CET1 ratio stood at 13.0%, well exceeding regulatory minimums, supporting operational flexibility and future growth plans.

Risk Factors

Credit Quality Deterioration Nonaccrual loans surged 414% to $21.0M (0.44% ratio), driven by migration in construction and commercial loan segments.

Interest Rate Risk Exposure Simulation shows potential NII decline up to 4.9% under severe rate shocks, highlighting sensitivity to yield curve shifts.

Goodwill Impairment Potential Goodwill stands at $240.9M (26.1% of equity); future adverse economic changes could trigger non-cash impairment charges.

Regulatory Scrutiny Increases Increased focus from regulators on credit risk management and capital requirements following recent industry instability and compliance costs.

Outlook

Strategic Acquisition Integration Focus remains on disciplined integration of Olympic Bancorp assets and realizing expected revenue synergies post-closing in early 2026.

Asset Quality Monitoring Management will maintain strict underwriting and closely monitor CRE and commercial loan segments for potential credit stress indicators.

Deposit Funding Strategy Strategy emphasizes growing low-cost, non-maturity deposits to fund anticipated higher yielding loan growth initiatives organically.

Adapting to Tech Competition Commitment to leveraging technology and adapting business models to compete effectively against Fintech and larger financial institutions.

Peer Comparison

Revenue (TTM)

MCB

$527.15M

+7.1%

BFST

$511.93M

+11.8%

AMAL

$455.03M

+4.5%

Gross Margin (Latest Quarter)

CPF

82.0%

+10.7pp

HBT

81.4%

+3.2pp

CCNE

77.1%

+17.6pp

Key Metrics

Symbol	Market Cap	P/E (TTM)	ROE (TTM)	Debt to Assets
AMAL	$1.16B	11.1	13.7%	1.1%
MOFG	$1.02B	17.4	10.0%	1.6%
SBSI	$953.40M	13.7	2.5%	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

16.9%

Profitability Improved

Cash Flow Stability

75%

Volatile Cash Flow

Deep Research

Next earnings:Apr 16, 2026

EPS:$0.31

Revenue:$80.31M

Financials

Earnings Calls

Reports

News

Income Statement

Balance Sheet

Cash Flow Statement

Ratios

% Chg.

Income Statement	LTM

No Data