Heritage Financial
Runs Heritage Bank, lending to small and mid-sized businesses across Washington, Oregon, and Idaho.
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Profile
Operates Heritage Bank, a single-segment commercial lender serving small and mid-sized businesses and retail depositors along the I-5 corridor from Washington through Oregon into Idaho. Growth has come mainly through acquiring smaller Pacific Northwest banks rather than opening new branches organically.
Heritage Bank is a Washington state-chartered, FDIC-insured commercial bank built around relationship lending to small and mid-sized businesses, funded mainly by core deposits from the same communities it lends to. Commercial business loans make up the large majority of the book, so credit performance there drives results.
The branch network runs the I-5 corridor from northern Washington through Portland and Eugene, Oregon, into Boise, Idaho. Acquired banks with strong local recognition keep their own names — Whidbey Island Bank and Kitsap Bank both operate as such today.
Growth has come mainly through acquiring smaller Pacific Northwest banks, from FDIC-assisted deals in 2010 through a merger of equals on Whidbey Island and, most recently, a Kitsap Peninsula bank. The operating bank traces to a 1927 Olympia mutual savings and loan, converted to stock ownership and Nasdaq-listed since 1998.
Company facts
Categories
Key statistics
Year to date +20.9% · Average volume (30d) 390.6K
Analysts
Ratings
Target range
Latest analyst notes
| Date | Firm | Action | Rating | Prior target | Target |
|---|---|---|---|---|---|
| Jul 28, 2026 | Stephens | Target | $30 | $32 | |
| Apr 27, 2026 | Piper Sandler | Reiterate | Overweight | $35 | $32 |
| Feb 5, 2026 | Piper Sandler | Reiterate | Overweight | $35 | |
| Jan 26, 2026 | Stephens | Target | $26 | $30 | |
| Jan 23, 2026 | DA Davidson | Reiterate | Buy | $29 | $32 |
Earnings
EPS
Revenue
History
| Report date | EPS est | EPS | Surprise | Revenue est | Revenue | Surprise | Next session |
|---|---|---|---|---|---|---|---|
| Jul 23, 2026Q2 FY26 | $0.45 | $0.57 | +28.1% | $86.3M | $84.1M | −2.5% | −0.43% |
| Apr 23, 2026Q1 FY26 | $0.57 | $0.59 | +3.5% | $80.5M | $77.9M | −3.2% | −4.44% |
| Jan 22, 2026Q4 FY25 | $0.57 | $0.66 | +15.8% | $66.1M | $66.3M | +0.4% | −5.54% |
| Oct 23, 2025Q3 FY25 | $0.55 | $0.56 | +2.4% | $66.2M | $65.7M | −0.8% | +0.30% |
Financial highlights
| 12 quarters | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | |
|---|---|---|---|---|---|---|---|
| Revenue | $81.3M | $80.0M | $87.8M | $86.8M | $99.4M | $62.2M | |
| Gross profit | $57.5M | $55.5M | $63.9M | $66.3M | $78.9M | $41.8M | |
| Operating income | $16.2M | $14.5M | $22.3M | $24.9M | $22.4M | −$22.4M | |
| Net income | $13.9M | $12.2M | $19.2M | $22.2M | $18.9M | $17.5M | |
| Diluted EPS | $0.40 | $0.35 | $0.56 | $0.65 | $0.48 | $0.42 | |
| Gross margin | 70.8% | 69.4% | 72.8% | 76.4% | 79.4% | 67.2% | |
| Operating margin | 19.9% | 18.1% | 25.4% | 28.6% | 22.5% | -36.0% |
Fiscal years (4-quarter sums)FY21 $247.4M · FY22 $257.0M · FY23 $303.1M · FY24 $317.2M · FY25 $336.0M
Revenue by product · Q2 FY26
Balance sheet, Jun 30, 2026Cash & short-term investments $102.6M · Total debt $188.7M · Total assets $8.43B · Shareholders' equity $1.11B
Dividends
Raised for 14 straight years — most recently to $0.25 from $0.24 in Aug 2026. To collect a payout, hold shares through the close before the ex-date.
History
| Ex-date | Record | Paid | Amount | Note |
|---|---|---|---|---|
| Aug 5, 2026 | Aug 5 | Aug 19 | $0.25 | raised from $0.24 |
| May 6, 2026 | May 6 | May 20 | $0.24 | |
| Jan 28, 2026 | Jan 28 | Feb 11 | $0.24 | |
| Nov 5, 2025 | Nov 5 | Nov 19 | $0.24 | |
| Aug 6, 2025 | Aug 6 | Aug 20 | $0.24 | |
| May 7, 2025 | May 7 | May 21 | $0.24 | |
| Feb 6, 2025 | Feb 6 | Feb 20 | $0.24 | raised from $0.23 |
| Nov 6, 2024 | Nov 6 | Nov 20 | $0.23 |
Ownership
Shares outstanding 41.22M · Float 40.24M · 97.6% free float
Top shareholders13F · 13D/G · Form 4
| Holder | Shares | % outstanding | Form | Filed |
|---|---|---|---|---|
| BlackRock, Inc. | 5.81M | 14.10% | 13F | Aug 7, 2026 |
| Jennison Associates LLC | 3.54M | 8.58% | 13F | Aug 3, 2026 |
| Prudential Financial Inc | 2.82M | 8.30% | 13G | May 15, 2025 |
| Victory Capital Management Inc | 2.36M | 5.73% | 13F | Aug 7, 2026 |
| Dimensional Fund Advisors LP | 2.04M | 4.96% | 13F | Aug 11, 2026 |
Insider tradesForm 4
| Date | Insider | Role | Shares | Avg price |
|---|---|---|---|---|
| Aug 13, 2026 | Matthew T. Ray | officer: EVP Chief Lending Officer | −3,692 | $30.10 |
| Aug 5, 2026 | Tony Chalfant | officer: EVP Chief Credit Officer | −3,234 | $29.92 |
| Aug 5, 2026 | Jeffrey S. Lyon | director | −10,000 | $30.00 |
| Jul 30, 2026 | Kelli Ann Wilson | officer: EVP Chief Banking Officer | −3,778 | $29.69 |
| Jun 9, 2026 | Donald Hinson | officer: EVPand Chief Financial Officer | −3,842 | $28.37 |
Peers
- Columbia Banking System
Larger Pacific NW regional bank rival across WA/OR/ID commercial banking
- Banner
Larger Pacific NW commercial bank rival across shared WA/OR/ID footprint
- WaFd
Larger Seattle-based western-US bank overlapping in WA/OR/ID commercial lending
- Glacier Bancorp
Multi-charter Mountain West bank overlapping directly in Idaho and Washington
- First Interstate BancSystem
Rocky Mountain community bank overlapping OR/ID branch and SMB lending markets
CompareAfter-hours close
| Company | Price | Change | |||||
|---|---|---|---|---|---|---|---|
| Heritage Financial | $28.67 | +0.02% | $1.18B | 13.6 | 11.8 | 3.5 | +48.9% |
| Columbia Banking System | $30.07 | 0.00% | $8.50B | 12.0 | 9.6 | 2.4 | +33.1% |
| Banner | $70.50 | −0.01% | $2.40B | 11.6 | 11.3 | 3.6 | +6.1% |
| WaFd | $36.09 | 0.00% | $2.67B | 11.0 | 10.9 | 1.9 | +10.3% |
| Glacier Bancorp | $46.88 | +0.02% | $6.10B | 19.0 | 13.9 | 4.0 | +36.8% |
| First Interstate BancSystem | $37.04 | 0.00% | $3.60B | 11.4 | 13.3 | 3.8 | +6.3% |
| Median | 11.6 | 11.3 | 3.6 | +10.3% |