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HFWA

Heritage Financial Corporation

HFWA

Heritage Financial Corporation • NASDAQ
$23.94 ▼ -1.28% (-0.31)
Market Cap $812.92 M
52w High $26.93
52w Low $19.84
Dividend Yield 0.96%
P/E 14.51
Volume 130.74K
Outstanding Shares 33.96M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $87.833M ▲ $41.615M ▲ $19.169M ▲ 21.824% ▲ $0.56 ▲ $22.631M ▲
Q2-2025 $80.017M ▼ $41.085M ▼ $12.215M ▼ 15.266% ▼ $0.36 ▼ $14.951M ▼
Q1-2025 $81.269M ▼ $41.383M ▲ $13.911M ▲ 17.117% ▲ $0.41 ▲ $16.909M ▼
Q4-2024 $82.25M ▲ $39.54M ▲ $11.928M ▲ 14.502% ▲ $0.35 ▲ $17.184M ▲
Q3-2024 $81.654M $39.29M $11.423M 13.99% $0.33 $13.541M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $807.365M ▼ $7.012B ▼ $6.108B ▼ $904.064M ▲
Q2-2025 $839.314M ▼ $7.071B ▼ $6.182B ▼ $888.212M ▲
Q1-2025 $891.512M ▲ $7.13B ▲ $6.248B ▲ $881.515M ▲
Q4-2024 $881.494M ▼ $7.106B ▼ $6.243B ▼ $863.527M ▼
Q3-2024 $1.028B $7.153B $6.279B $874.514M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $19.169M ▲ $25.067M ▲ $26.65M ▼ $-60.322M ▲ $-8.605M ▼ $24.389M ▲
Q2-2025 $12.215M ▼ $22.514M ▲ $57.847M ▼ $-74.925M ▼ $5.436M ▼ $20.916M ▲
Q1-2025 $13.911M ▲ $19.253M ▼ $79.181M ▲ $33.126M ▲ $131.56M ▲ $18.081M ▼
Q4-2024 $11.928M ▲ $20.619M ▼ $-43.993M ▼ $-35.098M ▼ $-58.472M ▼ $19.817M ▼
Q3-2024 $11.423M $24.174M $-21.752M $59.393M $61.815M $23.233M

Revenue by Products

Product Q4-2024Q1-2025Q2-2025Q3-2025
Credit and Debit Card
Credit and Debit Card
 $0 ▲$0 ▲$0 ▲$0 ▲
Deposit Account
Deposit Account
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Heritage Financial shows modest growth in overall revenue over the past few years, but profitability has clearly come under pressure. Earnings peaked a few years ago and have since stepped down, with both operating profit and net income moving lower. This suggests that margins are being squeezed, likely from higher funding costs, competitive pressure on loan pricing, higher credit or operating costs, or a mix of all three. In plain terms, the bank is doing a bit more business, but it is making less money on each dollar of activity than it did earlier in the period.

Balance Sheet

Balance Sheet The balance sheet looks generally stable and conservatively built. Total assets have drifted upward over time, and shareholders’ equity has gradually strengthened, which points to a solid capital base. Debt is higher than it was a few years ago, but still appears manageable in the context of the overall size of the bank. Cash holdings are much lower than during the peak-liquidity period earlier in the decade, reflecting a shift away from unusually high emergency cash levels toward a more normal deployment into loans and securities. Overall, the picture is of a fairly traditional, well-capitalized regional bank with tighter day-to-day liquidity than during the pandemic years, but not out of line with typical conditions.

Cash Flow

Cash Flow Cash generation has been steady and positive, which supports the view that reported earnings are backed by real cash flow. Free cash flow sits close to operating cash flow because the bank’s capital spending needs are modest; it is not a capital-intensive business in the way a manufacturer would be. This consistency is a strength, as it gives management flexibility to support dividends, absorb credit losses, or fund growth initiatives without relying heavily on new external financing. The main watchpoint is that, as profitability has softened, the room for error in cash generation has become somewhat narrower than in the stronger-earnings years.

Competitive Edge

Competitive Edge Heritage Financial holds a solid niche as a relationship-focused community and regional bank in the Pacific Northwest. Its strengths are deep local knowledge, long-standing ties to small and mid-sized businesses, and a history of disciplined, in-footprint acquisitions that expand its deposit base and reach. The bank differentiates itself through hands-on commercial lending, SBA expertise, and tailored solutions rather than exotic products. However, it faces the usual pressures on regional banks: intense competition for deposits from large national institutions and digital-only players, sensitivity to local economic conditions, and execution risk in integrating acquired banks like Olympic Bancorp. Its moat is real but rooted in relationships and execution quality, not in unique technology or national scale.

Innovation and R&D

Innovation and R&D Innovation at Heritage Financial is practical rather than flashy. The bank is investing in a unified digital platform for consumers and businesses, stronger treasury-management tools, remote deposit capabilities, and enhanced security and fraud-prevention features. Partnering with a large technology provider for its core systems gives it a modern backbone without the need for massive in-house R&D. Future upside depends on how well it uses customer data to personalize services, deepens digital engagement, and creates a consistent brand experience across acquired banks. The innovation risk is less about spending too much and more about keeping pace with customer expectations and larger banks’ digital offerings.

Summary

Overall, Heritage Financial looks like a stable, regionally focused bank that has traded some profitability for a more competitive stance in a tough interest-rate and funding environment. The balance sheet and cash flows appear sound, giving it a base from which to keep investing in technology and pursuing targeted acquisitions. Its edge comes from local relationships, SBA and commercial lending expertise, and a measured acquisition strategy, not from breakthrough technology or national scale. The key things to watch are: whether margins can recover, how credit quality holds up through the cycle, and how smoothly it integrates acquisitions and advances its digital capabilities while maintaining its community-banking identity.

NEWS

October 23, 2025 · 8:00 AM UTC

Heritage Financial Announces Third Quarter 2025 Results and Declares Regular Cash Dividend of $0.24 Per Share

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October 8, 2025 · 5:30 PM UTC

$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Heritage Financial Corporation (NASDAQ: HFWA)

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October 2, 2025 · 11:00 AM UTC

Heritage Financial Announces Earnings Release Date and Conference Call

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September 29, 2025 · 11:12 AM UTC

HERITAGE FINANCIAL INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Heritage Financial Corporation - HFWA

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September 26, 2025 · 8:58 AM UTC

HFWA Stock Alert: Halper Sadeh LLC Is Investigating Whether the Merger of Heritage Financial Corporation Is Fair to Shareholders

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