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.
Excellent balance sheet with solid track record.
Share Price & News
How has Heritage Financial's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HFWA's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: HFWA underperformed the US Banks industry which returned -28.9% over the past year.
Return vs Market: HFWA underperformed the US Market which returned -10% over the past year.
Price Volatility Vs. Market
How volatile is Heritage Financial's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall StHeritage Financial Corporation (NASDAQ:HFWA) Is An Attractive Dividend Stock - Here's Why
3 weeks ago | Simply Wall StLead Independent Director Brian Charneski Just Bought Shares In Heritage Financial Corporation (NASDAQ:HFWA)
4 weeks ago | Simply Wall StDo Directors Own Heritage Financial Corporation (NASDAQ:HFWA) Shares?
Is Heritage Financial undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: HFWA ($19.04) is trading above our estimate of fair value ($18.71)
Significantly Below Fair Value: HFWA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: HFWA is poor value based on its PE Ratio (10.4x) compared to the Banks industry average (8.7x).
PE vs Market: HFWA is good value based on its PE Ratio (10.4x) compared to the US market (13x).
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 overvalued based on its PB Ratio (0.9x) compared to the US Banks industry average (0.8x).
How is Heritage Financial forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
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 (-20% per year).
Earnings vs Market: HFWA's earnings are forecast to decline over the next 3 years (-20% 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 (-1.6% per year).
High Growth Revenue: HFWA's revenue is forecast to decline over the next 3 years (-1.6% 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 (5.5%).
How has Heritage Financial performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HFWA has high quality earnings.
Growing Profit Margin: HFWA's current net profit margins (29.6%) are higher than last year (24.7%).
Past Earnings Growth Analysis
Earnings Trend: HFWA's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: HFWA's earnings growth over the past year (28%) exceeds its 5-year average (17.2% per year).
Earnings vs Industry: HFWA earnings growth over the past year (28%) exceeded the Banks industry 10.8%.
Return on Equity
High ROE: HFWA's Return on Equity (8.3%) is considered low.
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
Financial Institutions Analysis
Asset Level: HFWA's level of assets compared to its equity is low.
Allowance for Bad Loans: HFWA has a low allowance for bad loans.
Low Risk Liabilities: HFWA's liabilities are made up of primarily low risk sources of funding.
Loan Level: HFWA has an acceptable proportion of non-loan assets held.
Low Risk Deposits: HFWA's loans are broadly funded by customer deposits.
Level of Bad Loans: HFWA has an appropriate level of bad loans (1.18%)
What is Heritage Financial's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HFWA's dividend (4.73%) is higher than the bottom 25% of dividend payers in the US market (1.93%).
High Dividend: HFWA's dividend (4.73%) is low compared to the top 25% of dividend payers in the US market (5.46%).
Stability and Growth of Payments
Stable Dividend: HFWA has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: HFWA's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (40.3%), 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 covered by earnings (64.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jeff Deuel (60yo)
Mr. Jeffrey J. Deuel, also known as Jeff, is the Chief Executive Officer and Director of Heritage Financial Corporation since July 1, 2019. Mr. Deuel has been President of Heritage Financial Corporation si ...
CEO Compensation Analysis
Compensation vs Market: Jeff's total compensation ($USD1.09M) is below average for companies of similar size in the US market ($USD3.18M).
Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.
|Executive Chairman||0.83yr||US$1.44m||0.35% $2.4m|
|Executive VP & CFO||12.58yrs||US$651.93k||0.089% $613.7k|
|Executive VP & COO||no data||US$747.94k||0.064% $439.1k|
|Executive VP & Chief Banking Officer of Heritage Bank||4.17yrs||US$459.86k||0.053% $362.6k|
|Executive VP & CTO||3.25yrs||no data||0.0033% $22.6k|
|Senior VP & Chief Human Resources Officer||18.25yrs||no data||0.058% $401.3k|
|Senior VP & Corporate Secretary||11.58yrs||no data||no data|
|Executive VP & Chief Risk Officer of Haritage Bank||no data||no data||0.0060% $41.4k|
Experienced Management: HFWA's management team is seasoned and experienced (7.9 years average tenure).
|Executive Chairman||0.83yr||US$1.44m||0.35% $2.4m|
|Independent Director||5.92yrs||US$81.59k||0.15% $1.0m|
|Independent Director||14.83yrs||US$93.09k||0.14% $946.8k|
|Lead Independent Director||0.75yr||US$107.59k||0.12% $813.7k|
|Independent Director||19.25yrs||US$83.59k||0.11% $725.1k|
|Independent Director||14.25yrs||US$88.59k||0.056% $387.7k|
|Independent Director||7.5yrs||US$90.59k||0.031% $212.2k|
|Independent Director||5.92yrs||US$88.59k||0.069% $476.0k|
|Independent Director||5.92yrs||US$93.09k||0.031% $214.0k|
Experienced Board: HFWA's board of directors are considered experienced (5.9 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HFWA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.4%.
Heritage Financial Corporation's company bio, employee growth, exchange listings and data sources
- Name: Heritage Financial Corporation
- Ticker: HFWA
- Exchange: NasdaqGS
- Founded: 1927
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$689.337m
- Shares outstanding: 36.20m
- Website: https://www.hf-wa.com
Number of Employees
- Heritage Financial Corporation
- 201 Fifth Avenue SW
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|HFWA||NasdaqGS (Nasdaq Global Select)||Yes||Common Stock||US||USD||Jan 1998|
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 January 30, 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 1927 and is headquartered in Olympia, Washington.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/04/08 04:23|
|End of Day Share Price||2020/04/07 00:00|
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.