Heritage Financial (HFWA) Stock Price, News & Analysis

Company Overview

Heritage Financial Corporation (NASDAQ:HFWA) is a bank holding company headquartered in Spokane, Washington. Through its primary subsidiary, Heritage Bank, the company provides a comprehensive range of banking and financial services to both individual and commercial clients. Heritage Bank’s offerings encompass deposit products, lending solutions, treasury and cash management services, mortgage banking, and wealth management, positioning the organization as a full-service community bank.

The company’s lending portfolio includes commercial real estate loans, agricultural loans, small business administration (SBA) loans, construction and development financing, and a variety of consumer mortgage products. On the deposit side, Heritage Bank offers checking and savings accounts, certificates of deposit, individual retirement accounts, and online and mobile banking platforms. Its treasury management services address the needs of businesses for payroll processing, automated clearing house (ACH) transfers, merchant services and other payment solutions.

Heritage Financial serves a regional footprint that spans Eastern Washington, Northern Idaho and parts of Oregon. With more than 80 branch locations, the company emphasizes local decision-making and community involvement, aiming to foster long-term relationships with borrowers and depositors. Its customer base includes small and mid-sized businesses, agricultural producers, nonprofit organizations and individual consumers, with a focus on meeting the unique needs of each market.

Heritage Bank traces its origins to 1927, when it was founded as a community bank in Spokane. Heritage Financial Corporation was later established as the bank holding entity to support growth and acquisitions across the region. Steven D. Clontz serves as president and chief executive officer, leading a management team that emphasizes prudent risk management and disciplined growth. Under this leadership, the company continues to balance community banking values with the operational efficiencies of a modern financial institution.

Key Stats

• Today's Range: $21.97 to $22.78
• 50-Day Range: $21.99 to $25.19
• 52-Week Range: $19.84 to $27.58
• Volume: 227,424 shs
• Average Volume: 165,790 shs
• Market Capitalization: $746.56 million
• P/E Ratio: 15.38
• Dividend Yield: 4.37%
• Price Target: $28.50
• Consensus Rating: Moderate Buy

Heritage Financial Stock Analysis - MarketRank™

Heritage Financial scored higher than 91% of companies evaluated by MarketBeat, and ranked 183rd out of 931 stocks in the finance sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 4.1 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Heritage Financial has received a consensus rating of Moderate Buy. The company's average rating score is 2.67, and is based on 2 buy ratings, 3 hold ratings, and no sell ratings.

Upside Potential

Heritage Financial has a consensus price target of $28.50, representing about 29.6% upside from its current price of $21.99.

Amount of Analyst Coverage

Heritage Financial has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 9.09%

Earnings Growth

Earnings for Heritage Financial are expected to grow by 9.09% in the coming year, from $2.09 to $2.28 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Heritage Financial is 15.38, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 225.12.

Price to Earnings Ratio vs. Sector

The P/E ratio of Heritage Financial is 15.38, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 28.55.

Price to Book Value per Share Ratio

Heritage Financial has a P/B Ratio of 0.87. P/B Ratios below 1 indicate that a company could be undervalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.78% of the float of Heritage Financial has been sold short.

Short Interest Ratio / Days to Cover

Heritage Financial has a short interest ratio ("days to cover") of 5.6.

Change versus previous month

Short interest in Heritage Financial has recently decreased by 2.74%, indicating that investor sentiment is improving.

Dividend

• Score: 5.0 / 5
• Dividend Strength: Strong

Dividend Leadership

Heritage Financial is a leading dividend payer. It pays a dividend yield of 4.37%, putting its dividend yield in the top 25% of dividend-paying stocks.

Dividend Growth

Heritage Financial has been increasing its dividend for 14 years.

Dividend Coverage

The dividend payout ratio of Heritage Financial is 67.13%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Heritage Financial will have a dividend payout ratio of 42.11% next year. This indicates that Heritage Financial will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

2.78% of the float of Heritage Financial has been sold short.

Short Interest Ratio / Days to Cover

Heritage Financial has a short interest ratio ("days to cover") of 5.6.

Change versus previous month

Short interest in Heritage Financial has recently decreased by 2.74%, indicating that investor sentiment is improving.

News and Social Media

• Score: 1.4 / 5
• News Sentiment: N/A

News Sentiment

Heritage Financial has a news sentiment score of 0.50. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.63 average news sentiment score of Finance companies.

News Coverage This Week

MarketBeat has tracked 1 news article for Heritage Financial this week, compared to 4 articles on an average week.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Heritage Financial insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 1.80% of the stock of Heritage Financial is held by insiders.

Percentage Held by Institutions

78.30% of the stock of Heritage Financial is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

HFWA Stock Analysis - Frequently Asked Questions

How have HFWA shares performed this year?

Heritage Financial's stock was trading at $24.50 at the beginning of the year. Since then, HFWA stock has decreased by 10.2% and is now trading at $21.99.

How were Heritage Financial's earnings last quarter?

Heritage Financial Corporation (NASDAQ:HFWA) posted its quarterly earnings data on Thursday, July, 24th. The financial services provider reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.50 by $0.03. The financial services provider had revenue of $56.50 million for the quarter, compared to analyst estimates of $63.54 million. Heritage Financial had a net margin of 15.22% and a trailing twelve-month return on equity of 7.34%.
Read the conference call transcript.

Who are Heritage Financial's major shareholders?

Heritage Financial's top institutional shareholders include Deprince Race & Zollo Inc. (0.21%), Voya Investment Management LLC (0.14%), Brighton Jones LLC (0.04%) and Yousif Capital Management LLC (0.03%). Insiders that own company stock include Brian L Vance, Jeffrey J Deuel, John A Clees, Donald Hinson, Jeffrey S Lyon, Brian Charneski, Amy E Curran, Tony Chalfant, Cindy M Huntley and Frederick B Rivera.
View institutional ownership trends.

How do I buy shares of Heritage Financial?

Shares of HFWA stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Heritage Financial own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Heritage Financial investors own include American Water Works (AWK), Waste Connections (WCN), DiamondRock Hospitality (DRH), AUO (AUOTY), The RMR Group (RMR), iShares Micro-Cap ETF (IWC) and Voyager Therapeutics (VYGR).

Company Calendar

• Last Earnings: 7/24/2025
• Record date for 8/20 Dividend: 8/06/2025
• Ex-Dividend for 8/20 Dividend: 8/06/2025
• Dividend Payable: 8/20/2025
• Today: 10/18/2025
• Next Earnings (Estimated): 10/23/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Finance
• Industry: FIN - SVGS & LOAN
• Sub-Industry: Regional Banks
• Current Symbol: NASDAQ:HFWA
• CIK: 1046025
• Web: www.hf-wa.com
• Phone: (360) 943-1500
• Fax: 360-352-0864
• Employees: 830
• Year Founded: 1927

Price Target and Rating

• Average Price Target for Heritage Financial: $28.50
• High Price Target: $31.00
• Low Price Target: $26.00
• Potential Upside/Downside: +29.6%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.67
• Research Coverage: 6 Analysts

Profitability

• EPS (Trailing Twelve Months): $1.43
• Trailing P/E Ratio: 15.38
• Forward P/E Ratio: 10.52
• P/E Growth: N/A
• Net Income: $43.26 million
• Net Margins: 15.22%
• Pretax Margin: 18.45%
• Return on Equity: 7.34%
• Return on Assets: 0.90%

Debt

• Debt-to-Equity Ratio: 0.32
• Current Ratio: 0.85
• Quick Ratio: 0.85

Sales & Book Value

• Annual Sales: $317.18 million
• Price / Sales: 2.35
• Cash Flow: $1.98 per share
• Price / Cash Flow: 11.08
• Book Value: $25.28 per share
• Price / Book: 0.87

Miscellaneous

• Outstanding Shares: 33,950,000
• Free Float: 33,342,000
• Market Cap: $746.56 million
• Optionable: Optionable
• Beta: 0.53