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Heritage Financial

Nasdaq:HFWA
Snowflake Description

Flawless balance sheet with reasonable growth potential and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HFWA
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to businesses and individuals in the United States. The last earnings update was 18 days ago. More info.


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HFWA Share Price and Events
7 Day Returns
-0.2%
NasdaqGS:HFWA
2.9%
US Banks
1.6%
US Market
1 Year Returns
-1.6%
NasdaqGS:HFWA
-8.1%
US Banks
3.2%
US Market
HFWA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Heritage Financial (HFWA) -0.2% -3.2% 7.2% -1.6% 77.1% 80.4%
US Banks 2.9% 1.7% 15% -8.1% 50.7% 42.7%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • HFWA outperformed the Banks industry which returned -8.1% over the past year.
  • HFWA underperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
HFWA
Industry
5yr Volatility vs Market

HFWA Value

 Is Heritage Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Heritage Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Heritage Financial.

NasdaqGS:HFWA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= $22.53 * 10%
$2.24
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. $22.53
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:HFWA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.641 (1 + (1- 21%) (4.94%))
0.776
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:HFWA using Excess Returns Model Model

The calculations below outline how an intrinsic value for Heritage Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:HFWA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10% – 7.5%) * $22.53)
$0.55
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.55 / (7.5% - 2.73%)
$11.64
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $22.53 + $11.64
$34.17
NasdaqGS:HFWA Discount to Share Price
Calculation Result
Value per share (USD) From above. $34.17
Current discount Discount to share price of $31.28
= -1 x ($31.28 - $34.17) / $34.17
8.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Heritage Financial is available for.
Intrinsic value
8%
Share price is $31.28 vs Future cash flow value of $34.17
Current Discount Checks
For Heritage Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Heritage Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Heritage Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Heritage Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Heritage Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:HFWA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $1.50
NasdaqGS:HFWA Share Price ** NasdaqGS (2019-03-19) in USD $31.28
United States of America Banks Industry PE Ratio Median Figure of 587 Publicly-Listed Banks Companies 13.41x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Heritage Financial.

NasdaqGS:HFWA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:HFWA Share Price ÷ EPS (both in USD)

= 31.28 ÷ 1.50

20.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Heritage Financial is overvalued based on earnings compared to the US Banks industry average.
  • Heritage Financial is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Heritage Financial's expected growth come at a high price?
Raw Data
NasdaqGS:HFWA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
22.2%per year
United States of America Banks Industry PEG Ratio Median Figure of 260 Publicly-Listed Banks Companies 1.25x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NasdaqGS:HFWA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.88x ÷ 22.2%

0.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Heritage Financial is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Heritage Financial's assets?
Raw Data
NasdaqGS:HFWA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $20.67
NasdaqGS:HFWA Share Price * NasdaqGS (2019-03-19) in USD $31.28
United States of America Banks Industry PB Ratio Median Figure of 592 Publicly-Listed Banks Companies 1.26x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NasdaqGS:HFWA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:HFWA Share Price ÷ Book Value per Share (both in USD)

= 31.28 ÷ 20.67

1.51x

* Primary Listing of Heritage Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Heritage Financial is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Heritage Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Heritage Financial has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HFWA Future Performance

 How is Heritage Financial expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Heritage Financial expected to grow at an attractive rate?
  • Heritage Financial's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Heritage Financial's earnings growth is expected to exceed the United States of America market average.
  • Heritage Financial's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:HFWA Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:HFWA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 22.2%
NasdaqGS:HFWA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 9.8%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 4.3%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:HFWA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:HFWA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 261 85 5
2019-12-31 246 78 5
NasdaqGS:HFWA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 213 82 53
2018-09-30 200 75 46
2018-06-30 184 59 41
2018-03-31 178 61 41
2017-12-31 171 74 41
2017-09-30 166 70 41
2017-06-30 165 74 42
2017-03-31 160 62 39
2016-12-31 159 54 39
2016-09-30 157 56 38
2016-06-30 154 57 37
2016-03-31 154 64 36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Heritage Financial's earnings are expected to grow significantly at over 20% yearly.
  • Heritage Financial's revenue is expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:HFWA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Heritage Financial Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HFWA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 2.29 2.44 2.15 6.00
2019-12-31 2.11 2.22 2.04 6.00
NasdaqGS:HFWA Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 1.50
2018-09-30 1.38
2018-06-30 1.31
2018-03-31 1.35
2017-12-31 1.39
2017-09-30 1.39
2017-06-30 1.40
2017-03-31 1.31
2016-12-31 1.30
2016-09-30 1.29
2016-06-30 1.23
2016-03-31 1.23

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Heritage Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Heritage Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Heritage Financial has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HFWA Past Performance

  How has Heritage Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Heritage Financial's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Heritage Financial has delivered over 20% year on year earnings growth in the past 5 years.
  • Heritage Financial's 1-year earnings growth exceeds its 5-year average (27.1% vs 22.8%)
  • Heritage Financial's earnings growth has not exceeded the US Banks industry average in the past year (27.1% vs 43.2%).
Earnings and Revenue History
Heritage Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Heritage Financial Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HFWA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 213.48 52.74 119.46
2018-09-30 199.79 46.15 112.54
2018-06-30 184.18 41.35 105.63
2018-03-31 178.33 41.30 99.59
2017-12-31 170.72 41.50 94.75
2017-09-30 165.91 41.36 94.48
2017-06-30 165.38 41.73 93.66
2017-03-31 160.21 38.81 92.16
2016-12-31 159.19 38.56 90.92
2016-09-30 157.49 38.16 90.49
2016-06-30 154.40 36.63 90.49
2016-03-31 154.02 36.46 89.62
2015-12-31 153.57 37.16 88.28
2015-09-30 153.04 34.96 87.29
2015-06-30 152.35 32.53 86.80
2015-03-31 146.83 28.03 82.94
2014-12-31 127.30 20.85 74.92
2014-09-30 109.06 14.35 65.92
2014-06-30 89.95 10.62 55.28
2014-03-31 74.27 9.12 48.58
2013-12-31 73.25 9.46 46.67
2013-09-30 70.38 11.76 44.18
2013-06-30 67.97 11.33 43.15
2013-03-31 68.64 11.83 42.91
2012-12-31 69.75 13.10 42.39
2012-09-30 68.47 12.30 42.35
2012-06-30 66.09 11.30 41.13
2012-03-31 63.33 9.82 40.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Heritage Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Heritage Financial used its assets less efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Heritage Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Heritage Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Heritage Financial has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HFWA Health

 How is Heritage Financial's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Heritage Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Heritage Financial Company Filings, last reported 2 months ago.

NasdaqGS:HFWA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 760.72 56.89 152.71
2018-09-30 746.13 60.16 155.24
2018-06-30 639.52 124.42 125.64
2018-03-31 634.71 81.68 110.11
2017-12-31 508.31 147.73 102.96
2017-09-30 507.61 169.30 114.56
2017-06-30 500.05 155.12 127.33
2017-03-31 489.20 110.88 107.27
2016-12-31 481.76 124.22 106.55
2016-09-30 496.01 59.77 118.22
2016-06-30 490.06 69.29 104.41
2016-03-31 480.18 39.84 99.48
2015-12-31 469.97 43.18 133.90
2015-09-30 468.70 42.18 147.72
2015-06-30 459.13 39.87 90.42
2015-03-31 462.53 49.80 89.43
2014-12-31 454.51 51.26 131.76
2014-09-30 451.65 54.42 223.28
2014-06-30 449.83 44.42 160.66
2014-03-31 216.42 28.79 123.45
2013-12-31 215.76 29.42 99.76
2013-09-30 216.60 22.66 152.54
2013-06-30 200.53 16.36 94.12
2013-03-31 200.51 12.03 146.23
2012-12-31 198.94 16.02 107.09
2012-09-30 202.24 22.89 116.91
2012-06-30 200.14 13.66 83.26
2012-03-31 205.66 20.79 139.76
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Heritage Financial has an acceptable proportion of non-loan assets held.
  • Heritage Financial's liabilities are made up of primarily low risk sources of funding.
  • Loans at Heritage Financial are broadly funded by customer deposits.
  • Heritage Financial's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Heritage Financial has a sufficient allowance for bad loans.
  • Heritage Financial has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Heritage Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Heritage Financial has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HFWA Dividends

 What is Heritage Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.62%
Current annual income from Heritage Financial dividends. Estimated to be 2.59% next year.
If you bought $2,000 of Heritage Financial shares you are expected to receive $52 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Heritage Financial's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Heritage Financial's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:HFWA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 470 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:HFWA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.84 7.00
2019-12-31 0.78 7.00
NasdaqGS:HFWA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-01 0.820 2.586
2019-01-24 0.820 2.568
2018-11-06 0.780 2.456
2018-10-25 0.780 2.392
2018-08-08 0.700 1.993
2018-07-25 0.700 1.964
2018-01-25 0.700 2.190
2017-10-26 0.620 1.993
2017-04-26 0.770 2.894
2016-10-27 0.730 3.050
2016-08-05 0.480 2.653
2016-07-21 0.480 2.760
2016-05-03 0.580 3.280
2016-04-21 0.580 3.207
2016-03-10 0.540 3.076
2016-01-28 0.540 3.089
2015-11-05 0.540 2.904
2015-10-22 0.540 2.868
2015-08-06 0.440 2.400
2015-07-23 0.440 2.491
2015-05-06 0.600 3.407
2015-04-23 0.600 3.515
2015-03-11 0.560 3.317
2015-01-29 0.560 3.448
2014-10-24 0.520 3.047
2014-07-24 0.460 2.813
2014-03-27 0.420 2.595
2014-01-29 0.420 2.430
2013-10-23 0.420 2.473
2013-07-23 0.720 4.592
2013-04-24 0.820 5.730
2013-01-31 0.820 5.769
2012-10-31 0.820 5.762
2012-06-26 0.520 3.616
2012-04-27 0.320 2.341
2012-02-01 0.240 1.774
2011-10-28 0.200 1.589
2011-07-29 0.200 1.697
2011-05-03 0.120 0.922
2011-01-27 0.000 0.000
2010-11-08 0.000 0.000
2010-11-01 0.000 0.000
2010-08-03 0.000 0.000
2010-08-02 0.000 0.000
2010-05-04 0.000 0.000
2010-05-03 0.000 0.000
2010-03-02 0.000 0.000
2010-01-28 0.000 0.000
2009-10-29 0.000 0.000
2009-10-27 0.000 0.000
2009-07-31 0.000 0.000
2009-07-29 0.000 0.000
2009-04-29 0.000 0.000
2009-03-20 0.400 3.593

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Heritage Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.7x coverage).
X
Income/ dividend checks
We assess Heritage Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Heritage Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Heritage Financial has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HFWA Management

 What is the CEO of Heritage Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Vance
COMPENSATION $1,307,056
AGE 64
TENURE AS CEO 12.4 years
CEO Bio

Mr. Brian L. Vance has been the Chief Executive Officer of Heritage Financial Corporation since October 1, 2006 and its President since February 25, 2005. Mr. Vance serves as the President of Heritage Savings Bank. He was the Chief Executive Officer of Heritage Bank since March 4, 2003 until July 2018. He has been an Executive Director of Heritage Financial Corporation since 2002. He served as the Chief Executive Officer of Central Valley Bank since 2006. He served as the President of Heritage Bank (Olympia, WA) since October 1, 1998. He served as an Executive Vice President at Heritage Financial Corp. from January 2003 to February 25, 2005. He has over 30 years of commercial banking experience. He joined Heritage Bank in June 1996 as Senior Vice President Loan Administration and was promoted to Chief Operating Officer in October 1998 and also served as its Chief Credit Officer. Prior to joining Heritage Bank, he served as Senior Vice President and Regional Manager for West One Bank in Tacoma. He was employed for 24years with West One Bank, a bank with offices in Idaho, Utah, Oregon and Washington. Prior to leaving West One, he was Senior Vice President and Regional Manager of Banking Operations for the south Puget Sound region. He served as Vice Chairman of Central Valley Bank, a wholly owned subsidiary of Heritage Financial Corp. since October 1, 2006. He also serves on the boards of the Tacoma Pierce County Chamber, the Economic Development Board for Tacoma-Pierce County and the Washington Center for the Performing Arts in Olympia. Mr. Vance is also involved in community activities and is a Trustee of the South Puget Sound Community College in Olympia and serves on the Milgard School of Business Advisory Board at the University of Washington Tacoma.

CEO Compensation
  • Brian's compensation has increased by more than 20% in the past year.
  • Brian's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Heritage Financial management team in years:

11
Average Tenure
58
Average Age
  • The average tenure for the Heritage Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Brian Vance

TITLE
CEO & Director
COMPENSATION
$1M
AGE
64
TENURE
12.4 yrs

Jeff Deuel

TITLE
President
COMPENSATION
$703K
AGE
59
TENURE
0.7 yrs

Don Hinson

TITLE
Executive VP & CFO
COMPENSATION
$534K
AGE
57
TENURE
11.5 yrs

Bryan McDonald

TITLE
Executive VP & COO
COMPENSATION
$551K
AGE
46

William Glasby

TITLE
Executive VP & Chief Technology Officer

Lisa Welander

TITLE
Chief Information Officer & VP

Sabrina Robison

TITLE
Senior VP & Human Resources Director

Kaylene Lahn

TITLE
Senior VP & Corporate Secretary
AGE
46
TENURE
10.5 yrs

Lisa Banner

TITLE
Executive VP & Director of Shared Services
TENURE
3.5 yrs

D. Broadhead

TITLE
President of Central Valley Bank
COMPENSATION
$339K
AGE
73
TENURE
29 yrs
Board of Directors Tenure

Average tenure and age of the Heritage Financial board of directors in years:

8.3
Average Tenure
64.5
Average Age
  • The tenure for the Heritage Financial board of directors is about average.
Board of Directors

Brian Charneski

TITLE
Chairman of the Board
COMPENSATION
$84K
AGE
56
TENURE
2.8 yrs

Brian Vance

TITLE
CEO & Director
COMPENSATION
$1M
AGE
64
TENURE
12.4 yrs

John Clees

TITLE
Director
COMPENSATION
$76K
AGE
70
TENURE
13.8 yrs

Kimberly Ellwanger

TITLE
Director
COMPENSATION
$76K
AGE
59
TENURE
13.2 yrs

Ann Watson

TITLE
Director
COMPENSATION
$70K
AGE
56
TENURE
6.4 yrs

Tony Pickering

TITLE
Director
COMPENSATION
$71K
AGE
71
TENURE
4.8 yrs

Debbie Gavin

TITLE
Director
COMPENSATION
$75K
AGE
62
TENURE
4.8 yrs

Gragg Miller

TITLE
Director
COMPENSATION
$70K
AGE
67
TENURE
10.2 yrs

Jeff Lyon

TITLE
Director
COMPENSATION
$67K
AGE
65
TENURE
18.2 yrs

Steve Dennis

TITLE
Director
AGE
72
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • Heritage Financial insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
15. Mar 19 Sell Brian Vance Individual 14. Mar 19 15. Mar 19 -13,621 $31.53 $-429,424
06. Feb 19 Sell Donald Hinson Individual 06. Feb 19 06. Feb 19 -3,268 $31.60 $-103,271
28. Nov 18 Sell Brian Vance Individual 26. Nov 18 28. Nov 18 -15,000 $34.74 $-518,378
16. Nov 18 Sell Lisa Banner Individual 15. Nov 18 15. Nov 18 -1,326 $33.44 $-44,347
27. Aug 18 Sell John Clees Individual 27. Aug 18 27. Aug 18 -1,000 $36.26 $-36,258
27. Jul 18 Sell Brian Charneski Individual 27. Jul 18 27. Jul 18 -2,620 $36.20 $-94,781
27. Jul 18 Sell Donald Hinson Individual 27. Jul 18 27. Jul 18 -1,316 $36.13 $-47,518
27. Jul 18 Sell Brian Vance Individual 27. Jul 18 27. Jul 18 -6,734 $36.29 $-244,350
30. Apr 18 Sell David Spurling Individual 30. Apr 18 30. Apr 18 -1,500 $29.85 $-44,781
X
Management checks
We assess Heritage Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Heritage Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HFWA News

Simply Wall St News

Have You Considered These Key Risks For Heritage Financial Corporation (NASDAQ:HFWA)?

Heritage Financial Corporation (NASDAQ:HFWA) is a small-cap bank with a market capitalisation of US$1.2b. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Heritage Financial’s bottom line. … Check out our latest analysis for Heritage Financial

Simply Wall St -

Heritage Financial Corporation (NASDAQ:HFWA): 4 Days To Buy Before The Ex-Dividend Date

Have you been keeping an eye on Heritage Financial Corporation's (NASDAQ:HFWA) upcoming dividend of US$0.18 per share payable on the 21 February 2019? … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into Heritage Financial's latest financial data to analyse its dividend attributes. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

How Should Investors React To Heritage Financial Corporation's (NASDAQ:HFWA) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … Check out our latest analysis for Heritage Financial? … How Does Brian Vance's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Did Heritage Financial Corporation (NASDAQ:HFWA) Insiders Sell Shares?

So before you buy or sell Heritage Financial Corporation (NASDAQ:HFWA), you may well want to know whether insiders have been buying or selling. … Heritage Financial Insider Transactions Over The Last Year. … All up, insiders sold more shares in Heritage Financial than they bought, over the last year

Simply Wall St -

Understated Factors To Consider Before Investing In Heritage Financial Corporation (NASDAQ:HFWA)

Heritage Financial Corporation’s (NASDAQ:HFWA) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$1.3b. … These reforms target bank level regulation and aims to improve the banking sector’s ability to absorb shocks arising from economic stress which could expose financial institutions to vulnerabilities. … Strong management of leverage and liquidity could place the bank in a protected position at the face of macro headwinds.

Simply Wall St -

Why We Think Heritage Financial Corporation (NASDAQ:HFWA) Could Be Worth Looking At

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Heritage Financial Corporation (NASDAQ:HFWA), it

Simply Wall St -

Should Heritage Financial Corporation (NASDAQ:HFWA) Be Part Of Your Portfolio?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … Historically, Heritage Financial Corporation (NASDAQ:HFWA) has paid dividends to shareholders, and these days it yields 2.2%. … Let's take a look at Heritage Financial in more detail.

Simply Wall St -

Would You Care If Heritage Financial Corporation (NASDAQ:HFWA) Insiders Were Selling?

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to businesses and individuals in the United States. … some insider selling over the past three months, with insiders divesting from. … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Want To Invest In Heritage Financial Corporation (NASDAQ:HFWA) Today? Read This First

Heritage Financial Corporation (NASDAQ:HFWA) is considered a high growth stock. … See our latest analysis for Heritage Financial? … The excitement around Heritage Financial's growth potential is not unfounded

Simply Wall St -

Only 2 Days Left To Heritage Financial Corporation (NASDAQ:HFWA)’s Ex-Dividend Date, Is It Worth Buying?

Important news for shareholders and potential investors in Heritage Financial Corporation (NASDAQ:HFWA): The dividend payment of US$0.15 per share will be distributed into shareholder on 23 August 2018, and the stock will begin trading ex-dividend at an earlier date, 08 August 2018. … Below, I'm going to look at the latest data and analyze the stock and its dividend property in further detail. … Based on future earnings growth, will it be able to continue to payout dividend at the current rate

Simply Wall St -

HFWA Company Info

Description

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to businesses and individuals in the United States. The company accepts various deposit products, such as noninterest demand accounts, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. Its 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, business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial loans focuses on real estate related industries and businesses in agricultural, healthcare, legal, and other professions. The company also originates loans that are guaranteed by the U.S. Small Business Administration; and offers trust services through trust powers, as well as objective advice. As of December 31, 2018, the company had a network of 64 branches located in Washington and Oregon. 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 1994 and is headquartered in Olympia, Washington.

Details
Name: Heritage Financial Corporation
HFWA
Exchange: NasdaqGS
Founded: 1994
$1,151,527,030
36,813,524
Website: http://www.hf-wa.com
Address: Heritage Financial Corporation
201 Fifth Avenue SW,
Olympia,
Washington, 98501,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HFWA Common Stock Nasdaq Global Select US USD 09. Jan 1998
Number of employees
Current staff
Staff numbers
859
Heritage Financial employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:37
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/06
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.