Start here if you're new
what it is
Heritage Bank lends money to local businesses and homeowners, then funds that with customer deposits.
how it gets paid
Last year Heritage Financial made $314M in revenue. commercial lending was the main engine at $126M, or 40% of sales.
why it's growing
Revenue grew 1.5% last year. The number that matters is $1.24 in 2024 EPS because one strong quarter does not erase a two-year profit drop of 46.3%.
what just happened
The latest quarter showed $235M in revenue and $1.31 in EPS, but the bigger story is that annual EPS still fell to $1.24 in 2024.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
55/100 earnings predictability — expect surprises
13.3x trailing p/e — the market's not buying it — or you found a deal
$1.24 fy2024 eps est
$6M fy2024 rev est
xvary composite: 60/100 — average
What they do
Heritage Bank lends money to local businesses and homeowners, then funds that with customer deposits.
This is a community bank with scale that still feels local. Heritage had 733 employees and, after the Olympic deal, about $8.8 billion in assets, which means more lending capacity without becoming a money-center giant. Deposit relationships (bank funding from customer cash) → cheaper money to lend out → your margin depends on keeping those customers sticky.
How they make money
$314M
annual revenue · their business grew +1.5% last year
commercial lending
$126M
+2.0%
deposit services
$69M
+1.0%
real estate construction and land development loans
$50M
3.0%
consumer and home equity loans
$44M
+1.0%
other banking income
$25M
0.0%
The products that matter
takes deposits, makes loans
Commercial & Consumer Banking
$250M net interest income · 80% of revenue
It's the core engine. This part of the bank produced $250M and grew 5%, which is why quarterly profit could rise even without a bigger fee business.
core engine
fees and relationship revenue
Wealth Management & Fees
$64M non-interest income · -8%
This $64M segment shrank 8%. That's small enough not to break the story, but big enough to remind you the bank is not diversifying its way out of rate sensitivity.
weak spot
regional footprint and relationships
Pacific Northwest Franchise
95+ years in market
The franchise matters because local banks win on trust and relationships. It is still not a moat. It is a reason customers stay until pricing gets meaningfully worse.
relationship bet
Key numbers
$1.24
2024 eps
Earnings per share → profit for each share → this is down from $2.31 in 2022, so your core question is whether profit erosion has stopped.
$314M
annual revenue
Revenue → total money coming in → sales grew just 1.5% vs. prior year, which is stable but hardly a rocket ship.
$405M
long-term debt
Long-term debt → borrowed money owed over years → at 28% of capital, it is manageable but not invisible for a regional bank.
13.3x
trailing p/e
P/E → price compared with profit → you are paying a modest multiple, but cheap only works if earnings stop shrinking.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 65 / 100
- long-term debt $405M (28% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for HFWA right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest quarter showed $235M in revenue and $1.31 in EPS, but the bigger story is that annual EPS still fell to $1.24 in 2024.
Quarterly revenue jumped 196% vs. prior year and quarterly EPS rose 138% vs. prior year, according to SEC data. That sounds great until you put it next to the annual slide from $2.31 in 2022 to $1.24 in 2024.
$235M
revenue
$1.31
eps
+196%
revenue vs. last year
the number that mattered
The number that matters is $1.24 in 2024 EPS because one strong quarter does not erase a two-year profit drop of 46.3%.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the #1 risk is net interest margin compression at Heritage Bank. When 80% of revenue comes from spread income, a smaller spread shows up everywhere.
high
rate sensitivity
Net interest income was $250M, or 80% of revenue. If deposit costs rise faster than loan yields, the core engine slows immediately.
This risk touches most of the $314M revenue base.
med
commodity banking economics
There is no moat. Heritage competes with larger banks that can price aggressively, spend more on technology, and absorb pressure longer.
A 27.7% net margin looks good until competition starts bidding for the same deposits and borrowers.
med
thin diversification outside lending
Non-interest income was just $64M and fell 8%. If fee income keeps shrinking, the bank becomes even more dependent on one profit lever.
Less revenue diversity means more earnings volatility when loan spreads move the wrong way.
med
integration execution
The snapshot references Olympic Bancorp integration in early 2026. If customer retention slips or costs linger, expected benefits turn into cleanup work.
For a $1B market cap bank, small integration misses can still matter to the stock.
If margin expansion fades, fee income stays weak, and the integration adds friction instead of savings, the "cheap regional bank" case gets much less interesting very quickly.
source: institutional data · regulatory filings · risk analysis
Pay attention to
core metric
net interest income holding above $250M pace
This is the main dashboard. At 80% of revenue, any slowdown here tells you more than almost anything else on the page.
risk
non-interest income after the 8% decline
A second weak year would confirm the bank is becoming more concentrated, not less.
calendar
first post-close signs from Olympic Bancorp integration
You want customer retention and expense discipline. Integration stories sound clean in slides and messy in branches.
trend
valuation versus earnings durability
13.3x trailing earnings looks reasonable. The question is whether those earnings are steady enough to deserve even that.
Analyst rankings
earnings predictability
55 / 100
in human-speak, analysts think the numbers are usable but not especially smooth. Expect a few bumps.
balance sheet quality
B++
Above average balance sheet grade. Good enough to avoid drama, not strong enough to be the whole thesis.
risk rank
3
Risk rank 3 means it sits around the middle of the pack on safety. Not reckless. Not a bunker.
source: institutional data
Institutional activity
institutional ownership data for HFWA is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$25
current price
n/a
target midpoint · n/a from current
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive