Heritage Financial Corporation Common Stock (HFWA)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Heritage Financial as a small $1.1 billion regional bank serving small and medium businesses. A bank is a leveraged, credit-sensitive business, so I start with returns and book value. At the close on 2026-10-13, FairStock calculated a P/E of 12.90 and P/B of 1.00. Its FairStock ROE is 7.80%, which is modest for a bank and suggests no wide moat. The filed record is uneven: FY2023 net income was $61.8 million, FY2024 was $43.3 million, and FY2025 was $67.5 million. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $17.5 million and diluted EPS was $0.42, versus $12.2 million and $0.36 in fiscal Q2 2025. But fiscal Q1 2026 net income was $18.9 million and EPS $0.48, and fiscal Q3 2025 was $19.2 million and EPS $0.55, so the recovery is not smooth. FairStock's Piotroski F-Score is 5/9, the beta is 0.50, and the dividend yield is 3.69%. The Lynch category is Slow Grower, with profit growth of 7.7% a year over five years, so the PEG of 0.15 may reflect a rebound rather than durable growth. CET1, NIM and credit/underwriting metrics are not in the data, so leverage and loan risk cannot be judged. At 1x book with a 3.69% yield, the price is fair to mildly cheap if credit holds, but not a fat pitch without underwriting evidence.

In plain English: Heritage Financial is a small regional bank that takes deposits and makes loans to small and medium-size businesses. It earned $17.5 million in the quarter ended June 30, 2026, up from $12.2 million a year earlier, but profits have moved up and down over the past few years. The shares look about fairly priced to mildly cheap compared with the bank's accounting value, though the business is not highly profitable.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer