Heritage Financial

HFWA · Nasdaq · Financials · Financials, fiscal 2016 to 2025

HFWA · Last close · November 6, 2026

$28.39

Heritage Financial's revenue rose 13.5% to $246 million in fiscal 2025. Net income was $68 million, up 56.1%. Its return on equity was 7.6%, up from 5.0% a year earlier. Its efficiency ratio was 67.3%, down from 73.0% a year earlier. It paid out $38 million in dividends and buybacks. The diluted share count fell 1.3%.

HERITAGE FINANCIAL CORP Latest fiscal year ended December 31, 2025 10-K filed February 27, 2026 · 0001628280-26-012703 Updated November 6, 2026

Revenue

$246M

13.5%

Net income

$68M

56.1%

Return on equity

7.6%

2.5 pts

Return on tangible equity

10.4%

3.3 pts

Efficiency ratio

67.3%

5.7 pts

Market cap

$1.2B

Nov 6 close

P/E

14.1x

On $2.01 EPS, 4 qtrs

Return on equity is net income as a share of shareholders' equity; return on tangible equity leaves out goodwill and other intangible assets. The efficiency ratio is operating costs as a share of revenue, so lower means the bank spends less to earn each dollar. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What Heritage Financial does

Heritage Financial is a bank holding company whose only subsidiary is Heritage Bank. The bank is headquartered in Olympia, Washington, with branches across Washington State, the Portland and Eugene areas of Oregon, and Boise, Idaho. It also uses the Whidbey Island Bank name on Whidbey Island. Its deposits are insured by the FDIC.

The bank's business is mostly commercial lending and deposit relationships with small and medium-sized businesses and their owners, and taking deposits from the public. It also makes real estate construction and land development loans and consumer loans. It earns most of its income from the interest on its loans.

In January 2026 it bought Olympic Bancorp and its Kitsap Bank, which added branches in Washington, paying with Heritage shares.

Its biggest risks, as it describes them

Interest rate swings and changes in monetary policy.
Credit risk, including large loans to certain borrowers and many loans to commercial borrowers.
Falling real estate values that weaken the collateral behind its loans.
Losing low-cost deposits and funding, and relying on dividends from the Bank for liquidity.
Having to raise more capital or failing to keep enough capital.

From Heritage Financial's annual report on Form 10-K, filed February 27, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both. Revenue is net of interest expense.

Revenue (left axis)Net income (right axis)

Efficiency ratio and net interest income

Percent of revenue. The efficiency ratio is noninterest expense over revenue.

Efficiency ratioNet interest income share

From fiscal 2016 to 2025, earnings per share grew 4.7% a year and net income 6.3% a year, as new shares raised the share count by 16% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Return on equity

Percent. Net income over average equity; tangible equity excludes goodwill, intangibles and preferred stock.

Return on equityReturn on tangible common equity

Balance sheet

Loans and deposits

US$ billions, at each fiscal year end

Loans, netDeposits

Total assets and shareholders' equity

US$ billions, at each fiscal year end. Assets on the left axis, equity on the right.

Total assets (left axis)Equity (right axis)

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Loans, net	—	4,008	4,288	4,750	4,731
Deposits	6,394	5,925	5,600	5,685	5,920
Loans to deposits	—	67.7%	76.6%	83.5%	79.9%
Provision for credit losses	−29	−1	4	6	2
Provision to average loans	—	—	0.1%	0.1%	0.0%
Total assets	7,432	6,980	7,175	7,106	6,967
Shareholders' equity	854	798	853	864	922

US$ millions unless stated, at each fiscal year end.

Cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project Heritage Financial's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them. Every projected figure is yours: it is not a forecast of ours.

Open Heritage Financial's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 1 insider bought $426,446 of Heritage Financial shares on the open market, and 8 insiders sold $1.5 million.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Sep 15, 2026	Frederick B RiveraDirector	Sold	1,300	$28.57	$37,141	Form 4
Sep 3, 2026	Brian CharneskiDirector	Sold	13,675	$29.18	$399,036	Form 4
Aug 13, 2026	Matthew T. RayEVP Chief Lending Officer	Sold	3,692	$30.10	$111,129	Form 4
Aug 5, 2026	Jeffrey S LyonDirector	Sold	10,000	$30.00	$300,000	Form 4
Aug 5, 2026	Tony ChalfantEVP Chief Credit Officer	Sold	3,234	$29.92	$96,761	Form 4
Jul 30, 2026	Kelli Ann WilsonEVP Chief Banking Officer	Sold	3,778	$29.69	$112,169	Form 4
Jun 9, 2026	Donald HinsonEVPand Chief Financial Officer	Sold	3,842	$28.37	$108,998	Form 4
May 1, 2026	Sabrina C RobisonEVP Chief HR Officer	Sold	5,440	$27.60	$150,127	Form 4
Feb 11, 2026	Tony ChalfantEVP Chief Credit Officer	Sold	4,668	$27.65	$129,070	Form 4
Feb 3, 2026	Frederick B RiveraDirector	Sold	1,800	$26.31	$47,358	Form 4
Jan 26, 2026	Kelli Ann WilsonEVP Chief Banking Officer	Sold	1,900	$26.48	$50,312	Form 4
Nov 20, 2025	Bryan McDonaldPresident	Bought	19,106	$22.32	$426,446	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Compare

Put Heritage Financial side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Net margin	Return on equity	Return on tangible equity	Efficiency ratio	Compare
Heritage Financial	FY25	13.5%	27.4%	7.6%	10.4%	67.3%
Southside Bancshares	FY25	−8.1%	29.2%	8.3%	11.0%	63.9%	Compare
Westamerica Bank	FY25	−12.2%	45.0%	12.7%	14.7%	39.5%	Compare
Lakeland Financial	FY25	6.1%	38.4%	14.3%	14.4%	48.9%	Compare
Hanmi Financial	FY25	15.3%	28.2%	10.0%	10.0%	54.7%	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	164	175	219	232	238	240	249	244	217	246
Revenue growth	1.4%	6.6%	25.0%	6.2%	2.6%	0.9%	3.6%	−2.1%	−11.1%	13.5%
Net interest income	132	139	187	200	201	206	219	225	209	224
Noninterest income	32	36	32	32	37	35	30	19	8	22
Noninterest expense	106	111	149	147	149	149	151	167	158	166
Provision for credit losses	—	—	5	−4	36	−29	−1	4	6	2
Net income	39	42	53	68	47	98	82	62	43	68
Diluted EPS (US$)	1.30	1.39	1.49	1.83	1.29	2.73	2.31	1.75	1.24	1.96
Diluted shares (millions)	30	30	35	37	36	36	36	35	35	34
Payouts
Dividends paid	22	18	26	31	29	29	30	31	32	33
Share buybacks	3	1	2	9	19	23	3	7	22	6
Balance sheet at fiscal year end
Loans, net	2,610	2,817	3,619	3,732	4,398	—	4,008	4,288	4,750	4,731
Deposits	3,230	3,393	4,432	4,583	5,598	6,394	5,925	5,600	5,685	5,920
Total assets	3,879	4,113	5,317	5,553	6,615	7,432	6,980	7,175	7,106	6,967
Shareholders' equity	482	508	761	809	820	854	798	853	864	922
Ratios
Return on equity	8.2%	8.4%	8.4%	8.6%	5.7%	11.7%	9.9%	7.5%	5.0%	7.6%
Return on tangible common equity	11.2%	11.3%	12.0%	12.9%	8.3%	16.8%	14.2%	10.6%	7.0%	10.4%
Return on assets	1.0%	1.1%	1.1%	1.2%	0.8%	1.4%	1.1%	0.9%	0.6%	1.0%
Efficiency ratio	64.9%	63.2%	68.2%	63.2%	62.5%	62.1%	60.6%	68.3%	73.0%	67.3%

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Heritage Financial's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Heritage Financial.