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HFWA

Heritage FinancialNasdaqGS:HFWA Stock Report

Market Cap

US$882.7m

7D

2.2%

1Y

18.6%

Updated

26 Oct, 2021

Data

Company Financials +
HFWA fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

HFWA Overview

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.

Heritage Financial Competitors

Western Alliance Bancorporation

NYSE:WAL

US$12.2b

Pacific Premier Bancorp

NasdaqGS:PPBI

US$4.1b

Bank of Hawaii

NYSE:BOH

US$3.6b

Cathay General Bancorp

NasdaqGS:CATY

US$3.3b

Price History & Performance

Summary of all time highs, changes and price drops for Heritage Financial
Historical stock prices
Current Share PriceUS$25.10
52 Week HighUS$19.75
52 Week LowUS$30.86
Beta0.76
1 Month Change-0.20%
3 Month Change6.54%
1 Year Change18.62%
3 Year Change-23.55%
5 Year Change36.04%
Change since IPO98.91%

Recent News & Updates

Jul 25
Heritage Financial's (NASDAQ:HFWA) Dividend Will Be US$0.20

Heritage Financial's (NASDAQ:HFWA) Dividend Will Be US$0.20

The board of Heritage Financial Corporation ( NASDAQ:HFWA ) has announced that it will pay a dividend of US$0.20 per...

Shareholder Returns

HFWAUS BanksUS Market
7D2.2%2.0%0.9%
1Y18.6%81.9%33.4%

Return vs Industry: HFWA underperformed the US Banks industry which returned 77% over the past year.

Return vs Market: HFWA underperformed the US Market which returned 33.4% over the past year.

Price Volatility

Is HFWA's price volatile compared to industry and market?
HFWA volatility
HFWA Beta0.76
Industry Beta1.32
Market Beta1

Stable Share Price: HFWA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HFWA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1927813Jeff Deuelhttps://www.hf-wa.com

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. The company 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. 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, 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.

Heritage Financial Fundamentals Summary

How do Heritage Financial's earnings and revenue compare to its market cap?
HFWA fundamental statistics
Market CapUS$882.68m
Earnings (TTM)US$102.51m
Revenue (TTM)US$271.31m

8.6x

P/E Ratio

1.0x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HFWA income statement (TTM)
RevenueUS$271.31m
Cost of RevenueUS$0
Gross ProfitUS$271.31m
ExpensesUS$168.80m
EarningsUS$102.51m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.92
Gross Margin100.00%
Net Profit Margin37.78%
Debt/Equity Ratio7.7%

How did HFWA perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

28%

Payout Ratio

Does HFWA pay a reliable dividends?

See HFWA dividend history and benchmarks
When do you need to buy HFWA by to receive an upcoming dividend?
Heritage Financial dividend dates
Ex Dividend DateNov 02 2021
Dividend Pay DateNov 17 2021
Days until Ex dividend6 days
Days until Dividend pay date21 days

Does HFWA pay a reliable dividends?

See HFWA dividend history and benchmarks

Valuation

Is Heritage Financial undervalued compared to its fair value and its price relative to the market?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HFWA ($25.1) is trading below our estimate of fair value ($37.92)

Significantly Below Fair Value: HFWA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HFWA is good value based on its PE Ratio (8.6x) compared to the US Banks industry average (11.1x).

PE vs Market: HFWA is good value based on its PE Ratio (8.6x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: HFWA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HFWA is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Future Growth

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

-21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HFWA's earnings are forecast to decline over the next 3 years (-21.9% per year).

Earnings vs Market: HFWA's earnings are forecast to decline over the next 3 years (-21.9% per year).

High Growth Earnings: HFWA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HFWA's revenue is expected to decline over the next 3 years (-4.1% per year).

High Growth Revenue: HFWA's revenue is forecast to decline over the next 3 years (-4.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HFWA's Return on Equity is forecast to be low in 3 years time (7%).


Past Performance

How has Heritage Financial performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HFWA has high quality earnings.

Growing Profit Margin: HFWA's current net profit margins (37.8%) are higher than last year (20.8%).


Past Earnings Growth Analysis

Earnings Trend: HFWA's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: HFWA's earnings growth over the past year (157.6%) exceeds its 5-year average (15.3% per year).

Earnings vs Industry: HFWA earnings growth over the past year (157.6%) exceeded the Banks industry 37.8%.


Return on Equity

High ROE: HFWA's Return on Equity (12.1%) is considered low.


Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HFWA's Assets to Equity ratio (8.6x) is low.

Allowance for Bad Loans: HFWA has a sufficient allowance for bad loans (187%).

Low Risk Liabilities: 97% of HFWA's liabilities are made up of primarily low risk sources of funding.

Loan Level: HFWA has an appropriate level of Loans to Assets ratio (54%).

Low Risk Deposits: HFWA's Loans to Deposits ratio (63%) is appropriate.

Level of Bad Loans: HFWA has an appropriate level of bad loans (0.6%).


Dividend

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

3.35%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 27 2021Ex Dividend DateNov 02 2021Dividend Pay DateNov 17 202115 days from Ex DividendBuy in the next 6 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HFWA's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (1.27%).

High Dividend: HFWA's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: HFWA's dividend payments have been volatile in the past 10 years.

Growing Dividend: HFWA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28%), HFWA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HFWA's dividends in 3 years are forecast to be well covered by earnings (46.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.4yrs

Average management tenure


CEO

Jeff Deuel (62 yo)

2.25yrs

Tenure

US$1,271,194

Compensation

Mr. Jeffrey J. Deuel, also known as Jeff, is President and Chief Executive Officer of Heritage Financial Corporation, positions he has held since July 1, 2019. He serves as the Chief Executive Officer of H...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.27M) is below average for companies of similar size in the US market ($USD2.25M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HFWA's management team is seasoned and experienced (9.4 years average tenure).


Board Members

Experienced Board: HFWA's board of directors are considered experienced (7.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Heritage Financial Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Heritage Financial Corporation
  • Ticker: HFWA
  • Exchange: NasdaqGS
  • Founded: 1927
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$882.682m
  • Shares outstanding: 35.17m
  • Website: https://www.hf-wa.com

Number of Employees


Location

  • Heritage Financial Corporation
  • 201 Fifth Avenue SW
  • Olympia
  • Washington
  • 98501
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:33
End of Day Share Price2021/10/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.