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This is Why Heritage Financial (HFWA) is a Great Dividend Stock
ZACKS· 2025-04-14 16:51
Company Overview - Heritage Financial (HFWA) is based in Olympia and operates in the Finance sector, with a year-to-date share price change of -14.41% [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 4.58%, which is significantly higher than the Financial - Savings and Loan industry's yield of 3.06% and the S&P 500's yield of 1.68% [3] Dividend Performance - The annualized dividend of Heritage Financial is $0.96, reflecting a 4.3% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 4 times year-over-year, with an average annual increase of 3.94% [4] - The current payout ratio is 54%, indicating that the company pays out 54% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Heritage Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $2.03 per share, representing a year-over-year growth rate of 9.73% [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-growth firms and tech start-ups typically do not provide dividends, established companies like Heritage Financial are viewed as strong dividend options [7] - The stock is currently rated with a Zacks Rank of 3 (Hold), indicating it is a compelling investment opportunity due to its strong dividend profile [7]
Best Income Stocks to Buy for March 24th
ZACKS· 2025-03-24 08:41
Core Insights - Three stocks with buy rank and strong income characteristics are highlighted for investors to consider on March 24th [1][2][3] Group 1: Valley National Bancorp (VLY) - The Zacks Consensus Estimate for current year earnings has increased by 5.6% over the last 60 days [1] - The company has a dividend yield of nearly 5%, significantly higher than the industry average of 2.9% [1] Group 2: NN Group N.V. (NNGRY) - The Zacks Consensus Estimate for current year earnings has increased by 7.1% over the last 60 days [2] - The company has a dividend yield of 4.1%, compared to the industry average of 1.5% [2] Group 3: Heritage Financial Corporation (HFWA) - The Zacks Consensus Estimate for current year earnings has increased by 5.7% over the last 60 days [2] - The company has a dividend yield of 4%, which is above the industry average of 3% [3]
What Makes Heritage Financial (HFWA) a New Strong Buy Stock
ZACKS· 2025-03-14 17:05
Core Viewpoint - Heritage Financial (HFWA) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][4]. - Rising earnings estimates for Heritage Financial suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for Heritage Financial - Heritage Financial is projected to earn $2.09 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 13% [8]. - Over the past three months, the Zacks Consensus Estimate for Heritage Financial has risen by 9.2% [8].
Heritage Financial (HFWA) - 2024 Q4 - Annual Report
2025-02-27 20:01
Financial Position and Capital - As of December 31, 2024, the company's on-balance sheet liquidity position was $117.1 million in cash and cash equivalents and $1.47 billion in total investment securities[28]. - The regulatory capital ratios of the Bank were above the "well-capitalized" status, with a common equity tier 1 capital ratio of 12.0%, leverage ratio of 10.0%, Tier 1 capital ratio of 12.4%, and total capital ratio of 13.3%[28]. - As of December 31, 2024, the Bank was well-capitalized according to FDIC regulations and had regulatory capital exceeding Federal Reserve requirements[67]. - The Basel III Rule requires a minimum Common Equity Tier 1 Capital ratio of 7%, Tier 1 Capital ratio of 8.5%, and Total Capital ratio of 10.5% when including the capital conservation buffer[64]. - The Basel III Rule increased the required quantity and quality of capital, establishing more stringent criteria for Additional Tier 1 Capital and Tier 2 Capital[63]. - Banking organizations must maintain a capital conservation buffer of 2.5% in Common Equity Tier 1 Capital to make unrestricted capital distributions[64]. - The Bank is required to maintain adequate capital levels and exceeded its capital requirements under applicable guidelines as of December 31, 2024[96]. Loan Portfolio Composition - Commercial business loans comprised $3.76 billion, or 78.3% of total loans receivable, as of December 31, 2024[41]. - Real estate construction and land development loans totaled $479.4 million, representing 9.9% of total loans receivable[45]. - Residential real estate loans amounted to $403.0 million, or 8.4% of total loans receivable, with the company ceasing the origination of these loans in January 2024[48]. - Consumer loans were recorded at $164.7 million, or 3.4% of total loans receivable, as of December 31, 2024[49]. - The company has maintained a diversified portfolio of lending relationships without significant concentrations in any industry[30]. Employee and Corporate Culture - The company has a strong corporate culture supported by internal development and retention of management and officers in key roles[31]. - As of December 31, 2024, the company employed 733 full-time and 28 part-time employees, with a voluntary workforce turnover of 14.9%, down from 16.6% in 2023[126]. - In 2024, 43% of new hires came from underrepresented minority groups, an increase from 37% in 2023[124]. - The company achieved a 7.5-year average overall employee tenure and a 9.7-year average tenure for management as of December 31, 2024[127]. - The company launched two new Leadership Certificate Programs in April 2024, with 33 employees receiving certification since the launch[134]. - The company received recognition as one of the top 100 Best Places to Work in Washington and Oregon based on the 2024 employee engagement survey[130]. - The company’s total workforce composition as of December 31, 2024, was 69.5% female and 30.5% male[128]. - The company’s generational representation included 17% Baby Boomers, 37% Gen X-ers, 35% Millennials, and 10% Gen Z-ers as of December 31, 2024[135]. - Over 3,700 e-cards were posted on the internal recognition platform "Celebrate Great" in 2024, highlighting employee appreciation[136]. Financial Performance - Net income for 2024 was $43.3 million, a decrease of 30% compared to $61.8 million in 2023[339]. - Basic earnings per share decreased to $1.26 in 2024 from $1.76 in 2023, reflecting a decline of approximately 28.4%[339]. - Total assets decreased to $7.1 billion as of December 31, 2024, down from $7.2 billion in 2023[336]. - Loans receivable increased to $4.8 billion in 2024, compared to $4.3 billion in 2023, marking an increase of approximately 10.7%[336]. - Total noninterest expense decreased to $158.3 million in 2024 from $166.6 million in 2023, a reduction of about 5%[339]. - The company reported a total of $7.5 million in noninterest income for 2024, down from $18.7 million in 2023, indicating a decline of approximately 60%[339]. - The total stockholders' equity increased to $863.5 million in 2024 from $853.3 million in 2023, reflecting a growth of about 1.5%[336]. Regulatory Compliance and Risk Management - The Bank's liquidity risk management policies are under review in light of regulatory requirements and industry developments, particularly following the failures of Silicon Valley Bank and Signature Bank[93][95]. - The Company is subject to periodic examination by the Federal Reserve and must file reports regarding its operations and those of the Bank[72]. - The Bank is subject to examination, supervision, reporting, and enforcement requirements of the DFI and the FDIC as a Washington state-chartered bank[86]. - The Bank's ability to engage in certain acquisitions or mergers may require approval from the DFI, the FDIC, and other banking agencies[98]. - The FDIC adopted a special assessment for banking organizations with assets of $5 billion or more, at an annual rate of 13.4 basis points, starting from the first quarterly assessment period of 2024[89]. - The total base assessment rates for FDIC-insured institutions currently range from 2.5 basis points to 32 basis points, with a maximum rate of 18 basis points for institutions in the top two categories of examination composite ratings[87]. - The FDIC's reserve ratio is projected to reach the statutory minimum of 1.35% by September 30, 2028, with no adjustments to the base assessment rates currently projected[88]. Credit Losses and Allowance - The consolidated allowance for credit losses (ACL) on loans was $52.5 million as of December 31, 2024, with a provision for credit losses of $7.0 million for the year[329]. - The provision for credit losses was $6,282,000 in 2024, compared to $4,280,000 in 2023, indicating a rise in expected credit losses[346]. - The Company evaluates the need for an Allowance for Credit Losses (ACL) on investment securities available for sale at least quarterly, especially during adverse economic conditions[356]. - The ACL on loans is calculated using a historic loss, open pool CECL methodology, with loans evaluated collectively or individually based on risk characteristics[369]. - The Company assesses the adequacy of the ACL on loans quarterly, with potential adjustments required based on local and national economic conditions[377]. - The provision for credit losses includes provisions for loans, unfunded commitments, and investment securities[382]. Investment Securities - The Company classifies investment securities as held to maturity, trading, or available for sale, with unrealized gains and losses reported accordingly[354]. - Realized gains and losses on sales of investment securities are recorded on the trade date, with specific identification method used for determination[355]. - The allowance methodology for unfunded commitments includes considerations of current and future utilization based on historical data and economic forecasts[379]. Community Engagement and Sustainability - The company continues to assess the impact of the CRA Rule on its lending and investment activities in respective markets[110]. - The company must comply with stringent economic and trade sanctions regimes administered by the Office of Foreign Assets Control[112]. - In 2024, over 550 employees volunteered approximately 1,665 hours at more than 60 organizations in Washington, Oregon, and Idaho during the annual volunteer event[143]. - The EcoChallenge in 2024 involved 41 teams and resulted in 21,887 environmentally sustainable actions, enhancing community engagement and sustainability awareness[144].
Heritage Financial (HFWA) Could Be a Great Choice
ZACKS· 2025-02-24 17:50
Company Overview - Heritage Financial (HFWA) is headquartered in Olympia and has experienced a price change of -1.43% this year [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 3.98%, which is higher than the Financial - Savings and Loan industry's yield of 2.91% and the S&P 500's yield of 1.56% [3] Dividend Performance - The current annualized dividend of $0.96 represents a 4.3% increase from the previous year [4] - Over the past five years, Heritage Financial has increased its dividend four times, averaging an annual increase of 3.60% [4] - The company's current payout ratio is 54%, indicating that it pays out 54% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Heritage Financial is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.09 per share, reflecting a year-over-year growth rate of 12.97% [5] Investment Appeal - Heritage Financial is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]
Heritage Bank Expands Into the Spokane, Washington, Market
Prnewswire· 2025-01-27 21:00
Core Insights - Heritage Bank is expanding into Spokane, Washington, with the addition of a new branch and a team of experienced bankers [1][2] Company Overview - Heritage Financial Corporation is based in Olympia and operates Heritage Bank as its sole wholly-owned banking subsidiary, which has a network of 50 banking offices in Washington and Oregon [5] Key Personnel - James Krejci, senior vice president and commercial team leader, has a business finance degree and focuses on supporting business expansion and economic growth in the region [2] - Timothy Engh, senior vice president and commercial banking officer, has over 20 years of banking experience and is dedicated to fostering long-term partnerships with businesses [3] - Sean O'Regan, vice president and commercial banking officer, has more than 20 years of experience in commercial banking and private business banking, enhancing his skills through previous roles as a credit analyst and financial controller [4]
Heritage Financial (HFWA) - 2024 Q4 - Annual Results
2025-01-23 19:57
Financial Performance - Net income for Q4 2024 was $11.9 million, or $0.34 per diluted share, up from $11.4 million, or $0.33 per diluted share in Q3 2024, and significantly higher than $6.2 million, or $0.18 per diluted share in Q4 2023[2][6] - Income before income taxes for Q4 2024 was $16,330,000, an increase of $3,264,000 (24.8%) compared to Q4 2023[38] - Net income for the quarter ended December 31, 2024, was $11,928,000, compared to $6,233,000 in the same quarter of 2023, an increase of 91.5%[46] - Basic earnings per share for the quarter ended December 31, 2024, was $0.35, up from $0.18 in the same quarter of 2023, indicating an increase of 94.4%[48] - Adjusted tangible net income (non-GAAP) reached $18,187 million, up from $16,055 million in the prior quarter[70] Revenue and Income Sources - Total interest income for the quarter ended December 31, 2024, was $78,960,000, an increase from $74,262,000 in the same quarter of 2023, representing a growth of 6.1%[46] - Net interest income for Q4 2024 was $53.763 million, representing a net interest margin of 3.39%[30] - Noninterest income increased by $1.5 million to $3.3 million in Q4 2024 compared to Q3 2024, primarily due to reduced losses from the sale of investment securities[31] - Noninterest income rose by $6.4 million from Q4 2023, attributed to decreased losses from investment securities sales[32] Expenses and Efficiency - Total noninterest expense for Q4 2024 was $39.540 million, a slight increase of 0.6% from Q3 2024, but a decrease of 7.5% compared to Q4 2023[36] - The efficiency ratio improved to 69.3%, down from 71.7% in Q3 2024, indicating better operational efficiency[7] - Total noninterest expense (GAAP) decreased to $39,540 million from $39,290 million in the previous quarter[71] Assets and Liabilities - Total assets as of December 31, 2024, were $7.149 billion, slightly down from $7.182 billion at the end of Q3 2024[30] - Loans receivable increased by $122.6 million, or 2.6%, to $4.80 billion at December 31, 2024, with new loans funded totaling $181.0 million in Q4 2024[6][12] - Total deposits decreased by $23.9 million, or 0.4%, to $5.68 billion at December 31, 2024, with non-maturity deposits down by $55.6 million, or 1.2%[6][13] - Total stockholders' equity decreased by $11.0 million, or 1.3%, to $863.5 million at December 31, 2024, primarily due to an increase in accumulated other comprehensive loss and dividends paid[15] Credit Quality - The allowance for credit losses on loans was 1.09% at December 31, 2024, compared to 1.10% at September 30, 2024, with a provision for credit losses of $1.1 million recorded during the fourth quarter[17] - Provision for credit losses for the quarter ended December 31, 2024, was $1,183,000, a decrease from $1,424,000 in the same quarter of 2023, indicating improved credit quality[46] - Total nonperforming loans decreased to $5,274,000 from $9,648,000 in the previous quarter, indicating improved credit quality[53] Dividends and Shareholder Returns - The company declared a regular cash dividend of $0.24 per share, a 4.3% increase from the previous dividend of $0.23 per share[6] - Dividends declared per share for the year ended December 31, 2024, were $0.92, compared to $0.88 in 2023, reflecting a growth of 4.5%[48] Future Outlook - The Company will hold an earnings conference call on January 23, 2025, at 10:00 a.m. Pacific time[40]
Heritage Financial (HFWA) - 2024 Q4 - Earnings Call Transcript
2025-01-23 19:34
Financial Data and Key Metrics Changes - The company announced a CEO transition plan that has been in place since July 2024, aiming for a smooth transition for all stakeholders [4] - The current CEO will retire on May 5, 2025, and the CEO of Heritage Bank will also take on the role of CEO of the holding company at that time [4][5] Business Line Data and Key Metrics Changes - Specific financial data and metrics for the fourth quarter earnings were not detailed in the provided content [6] Market Data and Key Metrics Changes - No specific market data or metrics were provided in the content [6] Company Strategy and Development Direction and Industry Competition - The company is focused on ensuring a smooth leadership transition, which is critical for maintaining stability and confidence among employees, customers, and investors [4] Management's Comments on Operating Environment and Future Outlook - Management has not provided specific comments on the operating environment or future outlook in the available content [6] Other Important Information - The Chief Financial Officer was unable to attend the call due to health reasons, and the Chief Accounting Officer participated in their place [3] Q&A Session All Questions and Answers - No questions or answers from the Q&A session were included in the provided content [6]
Heritage Financial (HFWA) - 2024 Q4 - Earnings Call Presentation
2025-01-23 19:30
Financial Highlights - Heritage Financial Corporation's assets reached $7.1 billion[13] - Deposits totaled $5.7 billion[13] - Loans receivable amounted to $4.8 billion[13] - Net income was $11.9 million[13] - The net interest margin stood at 3.39%[13] Profitability Improvement Measures - The company sold investments with a book value of $458.2 million[19] - The weighted average book yield of these sales was 2.29%[19] - Investments purchased amounted to $173.8 million with a weighted average book yield of 6.07%[19] - The estimated annualized pre-tax financial impact is an improvement of $17.3 million[19] Loan Portfolio - Commercial Real Estate (CRE) loans make up a significant portion of the loan portfolio, totaling $2.912 billion[49] - Real estate, rental, and leasing account for $2.050 billion of commercial business loans[47] Deposits - Noninterest demand deposits represent 29.1% of total deposits[16] - The cost of total deposits is 1.39%[16]
Compared to Estimates, Heritage Financial (HFWA) Q4 Earnings: A Look at Key Metrics
ZACKS· 2025-01-23 16:01
Core Insights - Heritage Financial (HFWA) reported a revenue of $60.96 million for the quarter ended December 2024, reflecting a year-over-year increase of 20.2% [1] - The earnings per share (EPS) for the quarter was $0.51, up from $0.47 in the same quarter last year, surpassing the consensus estimate of $0.46 by 10.87% [1] Financial Performance Metrics - The efficiency ratio was reported at 69.3%, higher than the average estimate of 66.7% from three analysts [4] - The net interest margin stood at 3.4%, slightly above the average estimate of 3.3% from three analysts [4] - Total nonperforming assets were $5.27 million, significantly lower than the average estimate of $8.88 million from two analysts [4] - Total nonaccrual loans were reported at $4.08 million, compared to the average estimate of $6.13 million from two analysts [4] - The average balance of total interest-earning assets was $6.31 billion, close to the estimated $6.33 billion from two analysts [4] - Net charge-offs on loans to average loans receivable were 0%, better than the estimated 0.1% from two analysts [4] - Total noninterest income was $3.29 million, falling short of the average estimate of $7.40 million from three analysts [4] - Net interest income was reported at $53.76 million, exceeding the average estimate of $53.17 million from three analysts [4] Stock Performance - Heritage Financial's shares returned +0.6% over the past month, underperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]