Heritage Financial (HFWA)

Heritage Financial Corporation is an Olympia-based bank holding company with Heritage Bank, a full-service commercial bank, as its sole wholly-owned banking subsidiary. Heritage Bank has a branching network of 61 banking offices in Washington and Oregon. Heritage Bank also does business under the Whidbey Island Bank name on Whidbey Island.

Company profile

Jeffrey J. Deuel
Fiscal year end
HBCDE, LLC • HBCDE Partner, LLC • HBCDE Sub-CDE 1, LLC • HBCDE Sub-CDE 2, LLC • HBCDE Sub-CDE 3, LLC • HBCDE Sub-CDE 4, LLC • Heritage Investment Services, Inc. ...
IRS number
SEC advisor number
FINRA CRD number
$240.3M (as of 17 Mar 22)
1,201 (as of 17 Mar 22)
7 (6 investment advisory or research)
Heritage Financial
P O BOX 1578
WA 98501

HFWA stock data

Analyst ratings and price targets

Last 3 months


4 May 22
9 Aug 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Mar 21 Dec 20 Sep 20
Cost of revenue
Operating income
Operating margin
Net income
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Cash on hand
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Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 1.58B 1.58B 1.58B 1.58B 1.58B 1.58B
Cash burn (monthly) 48.86M (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 210.55M n/a n/a n/a n/a n/a
Cash remaining 1.37B n/a n/a n/a n/a n/a
Runway (months of cash) 28.0 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
20 Jun 22 Clees John A RSU Common Stock Grant Acquire A No No 24.07 1,808 43.52K 1,808
20 Jun 22 Charneski Brian RSU Common Stock Grant Acquire A No No 24.07 1,808 43.52K 1,808
20 Jun 22 Frederick B Rivera RSU Common Stock Grant Acquire A No No 24.07 1,808 43.52K 1,808
20 Jun 22 Jeffrey S Lyon RSU Common Stock Grant Acquire A No No 24.07 1,808 43.52K 1,808
20 Jun 22 Pickering Anthony RSU Common Stock Grant Acquire A No No 24.07 1,808 43.52K 1,808
13F holders Current Prev Q Change
Total holders 0 0
Opened positions 0 0
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares Current Prev Q Change
Total value 0 0
Total shares 0 0
Total puts 0 0
Total calls 0 0
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Largest owners Shares Value Change
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Financial report summary

  • The outbreak of COVID-19 has adversely affected certain industries in which our customers operate and may impair their ability to fulfill their obligations to us. Further, the spread of the outbreak has disrupted banking and other financial activity in the areas in which we operate, could lead to an economic recession or other additional severe disruptions in the U.S. economy, and could potentially create business continuity issues for us.
  • Our strategy of pursuing acquisitions and de novo branching exposes us to financial and operational risks that could adversely affect us.
  • Our business strategy includes significant growth plans, and our financial condition and results of operations could be negatively affected if we are not successful in executing this strategy or if we fail to grow or manage our growth effectively.
  • Our loan portfolio is concentrated in loans with a higher risk of loss.
  • Our ACL on loans may prove to be insufficient to absorb losses in our loan portfolio.
  • If our ACL on loans is not sufficient to cover actual loan losses our earnings could decrease.
  • The current economic condition in the market areas we serve may adversely impact our earnings and could increase the credit risk associated with our loan portfolio.
  • Changes in the United States government and its agencies’ monetary or fiscal policies, including stimulus enacted in response to the COVID-19 Pandemic, could adversely affect our results of operations and financial condition.
  • Fluctuating interest rates can adversely affect our profitability.
  • Our investment securities portfolio may be negatively impacted by fluctuations in market value and interest rates.
  • Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions and limit our ability to get regulatory approval of acquisitions.
  • We rely on other companies to provide key components of our business infrastructure.
  • If our enterprise risk management framework is not effective at mitigating risk and loss to us, we could suffer unexpected losses and our results of operations could be materially adversely affected.
  • We are subject to certain risks in connection with our data management or aggregation.
  • Our business may be adversely affected by an increasing prevalence of fraud and other financial crimes.
  • Managing reputational risk is important to attracting and maintaining customers, investors and employees.
  • We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects.
  • Our ability to sustain or improve upon existing performance is dependent upon our ability to respond to technological change, and we may have fewer resources than some of our competitors to continue to invest in technological improvements.
  • New or changing tax, accounting, and regulatory rules and interpretations could significantly impact strategic initiatives, results of operations, cash flows, and financial condition.
  • If the goodwill we have recorded in connection with acquisitions becomes impaired, our earnings and capital could be reduced.
  • We will be required to transition from the use of the London Interbank Offered Rate ("LIBOR") in the future.
  • Decreased volumes and lower gains on sales of mortgage loans sold could adversely impact our noninterest income.
  • Ineffective liquidity management could adversely affect our financial results and condition.
  • Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.
  • Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed or the cost of that capital may be very high; further, the resulting dilution of our equity may adversely affect the market price of our common stock.
  • We rely on dividends from the Bank for substantially all of our revenue at the holding company level.
Management Discussion
  • Net income was $19.8 million, or $0.56 per diluted common share, for the three months ended March 31, 2022 compared to $25.3 million, or $0.70 per diluted common share, for the three months ended March 31, 2021. Net income decreased $5.6 million, or 22.0%, due primarily to lower interest income and fees on loans. The Company’s efficiency ratio was 64.38% for the three months ended March 31, 2022 compared to 61.57% for the three months ended March 31, 2021.
  • (1) Average balances are calculated using daily balances.
  • (2) Average loan receivable, net includes loans held for sale and loans classified as nonaccrual, which carry a zero yield. Interest earned on loans receivable, net includes the amortization of net deferred loan fees of $3.4 million and $7.3 million for the three months ended March 31, 2022 and 2021, respectively.

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