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Upturn AI SWOT - About
HFWA 
Heritage Financial Corporation (HFWA)
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Upturn Advisory Summary
08/14/2025: HFWA (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
6 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $28
1 Year Target Price $28
| 1 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -15.98% | Avg. Invested days 29 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 809.10M USD | Price to earnings Ratio 16.66 | 1Y Target Price 28 |
Price to earnings Ratio 16.66 | 1Y Target Price 28 | ||
Volume (30-day avg) 6 | Beta 0.56 | 52 Weeks Range 19.43 - 26.75 | Updated Date 08/14/2025 |
52 Weeks Range 19.43 - 26.75 | Updated Date 08/14/2025 | ||
Dividends yield (FY) 3.91% | Basic EPS (TTM) 1.43 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date 2025-07-24 | When Before Market | Estimate 0.5 | Actual 0.53 |
Profitability
Profit Margin 22.36% | Operating Margin (TTM) 28.03% |
Management Effectiveness
Return on Assets (TTM) 0.7% | Return on Equity (TTM) 5.69% |
Valuation
Trailing PE 16.66 | Forward PE 12.33 | Enterprise Value 846693952 | Price to Sales(TTM) 3.66 |
Enterprise Value 846693952 | Price to Sales(TTM) 3.66 | ||
Enterprise Value to Revenue 4.87 | Enterprise Value to EBITDA - | Shares Outstanding 33953200 | Shares Floating 33314534 |
Shares Outstanding 33953200 | Shares Floating 33314534 | ||
Percent Insiders 1.59 | Percent Institutions 87.91 |
Upturn AI SWOT
Heritage Financial Corporation
Company Overview
History and Background
Heritage Financial Corporation, founded in 1927, is a bank holding company headquartered in Olympia, Washington. It has grown through acquisitions and organic expansion to become a significant community bank in the Pacific Northwest.
Core Business Areas
- Commercial Banking: Provides a range of loan and deposit products to businesses, including commercial real estate loans, equipment financing, and working capital lines of credit.
- Retail Banking: Offers traditional retail banking services such as checking and savings accounts, mortgages, and consumer loans to individuals and families.
- Wealth Management: Provides trust and investment services to individuals and institutions.
Leadership and Structure
The leadership team includes Brian Vance (CEO), Don J. Hinson (COO), and Bryan McDonald (CFO). The organizational structure consists of various departments overseeing lending, operations, finance, and compliance, all reporting to the executive management team and the Board of Directors.
Top Products and Market Share
Key Offerings
- Commercial Real Estate Loans: Loans secured by commercial properties. Market share data is difficult to obtain specifically, but Heritage Financial is a major player in its Pacific Northwest market. Competitors include larger regional and national banks and credit unions.
- Mortgages: Residential mortgage lending. Market share is again localized and not precisely tracked, competition is broad across regional and national lenders.
- Small Business Loans: Loans tailored to the needs of small businesses. Similar to commercial real estate, precise market share is unavailable, but Heritage has a strong presence in its local markets. Competitors include other community banks, credit unions and online lenders.
Market Dynamics
Industry Overview
The banking industry is currently characterized by increasing regulatory scrutiny, rising interest rates, and evolving customer expectations due to technological advancements. Competition is intense, particularly from larger national banks and fintech companies.
Positioning
Heritage Financial Corporation is positioned as a community-focused bank, emphasizing personal service and local decision-making. Its competitive advantages include its strong regional presence and customer relationships.
Total Addressable Market (TAM)
The TAM for banking services in the Pacific Northwest is estimated to be in the billions of dollars. Heritage Financial Corporation is positioned to capture a portion of this market through its local focus and competitive offerings. Market data suggest an estimated TAM of $200 Billion for the Pacific Northwest Market with HFC positioning within 0.5% of the TAM.
Upturn SWOT Analysis
Strengths
- Strong regional presence in the Pacific Northwest
- Experienced management team
- Solid customer relationships
- Healthy capital levels
Weaknesses
- Limited geographic diversification
- Smaller scale compared to national banks
- Dependence on interest rate spreads
- Vulnerability to local economic downturns
Opportunities
- Expansion into new markets within the Pacific Northwest
- Increased adoption of digital banking services
- Potential for acquisitions of smaller community banks
- Growing demand for wealth management services
Threats
- Increased competition from larger banks and fintech companies
- Rising interest rates
- Economic slowdown in the Pacific Northwest
- Increased regulatory burden
Competitors and Market Share
Key Competitors
- Umpqua Holdings Corporation (UMPQ)
- Columbia Banking System Inc (COLB)
- Washington Federal Inc (WAFD)
Competitive Landscape
Heritage Financial Corporation competes with larger regional banks and smaller community banks. Its advantages include its local focus and customer relationships. Disadvantages are it's limited scale and geographic diversification.
Major Acquisitions
Puget Sound Bank
- Year: 2015
- Acquisition Price (USD millions): 32.1
- Strategic Rationale: Expanded Heritage's presence in the Seattle metropolitan area.
Growth Trajectory and Initiatives
Historical Growth: Heritage Financial Corporation has grown steadily through organic growth and strategic acquisitions.
Future Projections: Future growth is projected to be driven by continued expansion in the Pacific Northwest and increasing adoption of digital banking services.
Recent Initiatives: Recent strategic initiatives include investments in technology to improve customer experience and efficiency.
Summary
Heritage Financial Corporation is a stable community bank with a strong presence in the Pacific Northwest. While it benefits from customer loyalty and a healthy local economy, it faces increasing competition from larger banks and fintech companies. It should focus on expanding digitally and geographically in the Pacific Northwest. Heritage's future success depends on strategic expansion and maintaining solid relationships.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company filings (SEC), Investor presentations, Industry reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market data is subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Heritage Financial Corporation
Exchange NASDAQ | Headquaters Olympia, WA, United States | ||
IPO Launch date 1998-05-07 | CEO, President & Director Mr. Bryan D. McDonald | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 747 | Website https://www.hf-wa.com |
Full time employees 747 | Website https://www.hf-wa.com | ||
Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. The company accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. Its loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans. It also originates loans that are guaranteed by the U.S. Small Business Administration; and provides objective advice from trusted advisers. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.
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