Lumida
/HFWA
⌘K
Heritage Financial Corp

Heritage Financial Corp

HFWA
$28.41USD↑+0.00%+0.00 today

MARKET CAP

1.2B

P/E (TTM)

13.5x

FWD P/E

11.9x

DAY RANGE

$28 – $29

52W RANGE

$21
$31

AI Summary

Stalk
StalkMedium

HFWA remains in a healthy Stage 2 uptrend above key EMAs, but the Bullish Exhaustion pattern at fresh highs increases the odds of a near-term pullback. Price is currently retracing into the 9/20 EMA zone. We will stalk for a clean pullback into this EMA support area before initiating any new long exposure.

  • ↑Q1 EPS $0.80, up 18% QoQ and 29% YoY.
  • ↑NIM rose to 3.72%, supported by asset repricing.
  • ↓Non-performing loans climbed to 0.39% from 0.09%, raising credit concerns.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Heritage Financial Corporation (NASDAQ: HFWA) operates primarily as a community bank, providing a range of financial services focused on commercial and consumer banking, particularly in the Puget Sound region. The company has been strategically enhancing its market position through a recent merger with Olympic Bank Corp, which is expected to bolster its operational capacity, expand its asset base, and ultimately increase profitability within a competitive banking landscape.

Bull says

  • ↑Q1 EPS $0.80, up 18% QoQ and 29% YoY.
  • ↑NIM rose to 3.72%, supported by asset repricing.
  • ↑Commercial loan originations at $339 M in Q2, +104% QoQ.
  • ↑Olympic Bank merger adds $939 M loans, boosting capacity.
  • ↑$10 M share buybacks in Q2, 424 K shares remaining.
  • ↑P/E 14.4, PEG 0.35, strong earnings yield and book-to-price.

Bear says

  • ↓Non-performing loans climbed to 0.39% from 0.09%, raising credit concerns.
  • ↓Merger costs to drive non-interest expenses to $64–65 M through Q4.
  • ↓Elevated competition for deposits and loans limits margin growth.
  • ↓Analysts’ negative revision sentiment and high short interest signal skepticism.
  • ↓Weak profitability factor suggests challenges converting revenue into profit.
  • ↓Integration risks linger despite robust capital ratios.

Investment themes with HFWA

Regional Banks↓ -1.16%

FLG · TCBI · ZION

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-15-2026neutral

Transcript signals

Bull points

  • average total deposits increased $35.4 million from the prior quarter. This marks the fifth consecutive quarter of us showing an increase in average total deposit balances.
  • net interest income increased $1.3 million, or 2.4% from the prior quarter due to a combination of a higher net interest margin and more days in Q2 compared to the prior quarter.
  • all of our regulatory capital ratios remain comfortably above well-capitalized thresholds, and our TCE ratio was 9.4% up from 9.3% in the prior quarter.

Bear points

  • Total deposits decreased $60.9 million in Q2 due to the seasonal decline that occurred in April related to tax payments.
  • A pre-tax loss of $6.9 million was recognized on the sale of $91.6 million of securities.
  • Criticized loans, those rated special mention and substandard, total just under $214 million at quarter end, increasing by $35.8 million during the quarter.
Read full transcript analysis ›