Operating cash flow remains volatile, evidenced by an OCF/NI ratio that has fluctuated between 0.48 and 4.97, while the bank continues to support a stable quarterly dividend of approximately $8 million.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'97 |
|---|
| Cash from Operations | 89.53M | 94.82M | 64.48M | 109.52M | 94.46M | 69.53M | 70.33M | 92.49M | 90.41M | 73.51M | 53.98M | 51.4M | 51.34M | 30.9M | 27.88M | 20.87M | 27.07M | 9.87M | 15.48M | 13.22M | 10.53M | 13.2M | 15.38M | 19.15M | 8.13M | 8.56M | 4.58M | 15.2M | 7.8M |
| Operating CF Growth % | 243.5% | 47.04% | -41.12% | 15.95% | 35.85% | -1.14% | -23.96% | 2.3% | 22.99% | 36.19% | 5.03% | 0.12% | 66.15% | 10.81% | 33.59% | -22.9% | 174.38% | -36.28% | 17.14% | 25.52% | -20.23% | -14.14% | -19.71% | 135.4% | -4.95% | 86.67% | -69.84% | 94.87% | - |
| Net Income | 72.57M | 67.53M | 43.26M | 61.76M | 81.88M | 98.03M | 46.57M | 67.56M | 53.06M | 41.79M | 38.92M | 37.49M | 21.01M | 9.57M | 13.26M | 6.52M | 13.35M | 581K | 6.35M | 10.71M | 10.55M | 10.48M | 9.59M | 8.9M | 9.42M | 6.96M | 5.97M | 5.4M | 4.3M |
| Depreciation & Amortization | 272K | 2.13M | 3.23M | 5.6M | 3.09M | -18.63M | -87K | 18.11M | 21.44M | 11.99M | 14.12M | 16.07M | 14.8M | 5.95M | 4.72M | 2.63M | 2.27M | 1.22M | 1.24M | 1.62M | 1.69M | 1.77M | 1.71M | 1.86M | 1.77M | 2.3M | 2.26M | 2.3M | 1.2M |
| Deferred Taxes | -12.12M | -17.94M | -15.29M | -13.2M | 871K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.62M | -2.83M | -7.46M | 4.55M | -4.37M | -2.54M | -412K | -834K | -207K | -254K | -580K | -432K | -192K | -271K | -100K | 0 |
| Other Non-Cash Items | 20.29M | 38.15M | 24.58M | 51.04M | 4.82M | -13.54M | 31.44M | -3.23M | 2.97M | 7M | 0 | 0 | 0 | 4.48M | 5.33M | 21.86M | 926K | 19.69M | 9.73M | 473K | 1.68M | 1.16M | 1.63M | 8.96M | -2.63M | -514K | -3.37M | 7.6M | 2.7M |
| Working Capital Changes | 3.57M | 0 | 4.36M | 0 | 0 | 0 | -11.15M | 6.82M | 10.2M | 10.63M | 725K | -1.94M | 11.5M | 9.6M | 6.11M | -3.69M | 5.76M | -7.4M | 525K | 545K | -2.54M | 0 | 2.71M | 0 | 0 | 0 | 0 | 0 | -400K |
| Cash from Investing | 198.42M | 186.75M | -85.9M | -93.45M | -1.21B | 163.76M | -538.55M | -125.3M | -109.6M | -241.39M | -252.93M | -216.62M | -121.65M | -16.59M | -3.5M | -61.77M | 243.76M | -34.03M | -41.14M | -26.71M | -51.4M | -53.59M | -69.77M | -66.12M | 9.11M | -6.08M | -61.62M | -95.8M | -25.2M |
| Purchase of Investments | -404.96M | -88.17M | -33.13M | -178.4M | -1.2B | -756.41M | -152.62M | -242.78M | -342.14M | -149.91M | -267.66M | -286.02M | -369.16M | -46.85M | -61.73M | -51.64M | -16.04M | -77.29M | -24.99M | -6.59M | -1.65M | -6.57M | -17.64M | -59.98M | -61.38M | -47.7M | -476K | -14.6M | -24.9M |
| Sale/Maturity of Investments | 240.56M | 295.48M | 439.36M | 424.62M | 240.17M | 266.81M | 319.25M | 286.31M | 248.58M | 129.92M | 269.78M | 241.9M | 223.87M | 51.44M | 61.75M | 35.61M | 28.53M | 15.68M | 19.78M | 10.32M | 9.78M | 7.42M | 27.76M | 52.76M | 41.03M | 56.53M | 4.42M | 18.9M | 11.4M |
| Net Investment Activity | -164.41M | 207.31M | 406.23M | 246.22M | -963.53M | -489.6M | 166.63M | 43.53M | -93.56M | -19.99M | 2.12M | -44.13M | -145.29M | 4.59M | 25K | -16.03M | 12.49M | -61.61M | -5.22M | 3.73M | 8.12M | 852K | 10.12M | -7.21M | -20.35M | 8.83M | 3.95M | 4.3M | -13.5M |
| Acquisitions | 155.17M | 0 | 0 | -13.83M | 0 | 0 | 0 | 0 | 105.97M | -206.28M | -234.94M | -150.14M | 32.05M | 18.26M | 0 | 0 | 196.61M | 0 | -33.43M | 0 | -2.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 217.05M | -11.4M | -488.67M | -315.47M | -240.23M | 656.38M | -698.19M | -155.79M | -98.74M | -218.34M | -248.33M | -170.67M | -4.47M | -34.24M | 332K | 0 | 41.57M | 29.56M | -33.77M | 0 | -56.12M | -53.71M | -78.73M | -57.6M | 30.29M | -13.73M | -63.25M | -97.7M | -11M |
| Cash from Financing | -268.48M | -165.58M | -86.45M | 105.31M | -506.38M | 746.68M | 982.97M | 99.47M | 78.08M | 167.15M | 176.05M | 170.23M | 61.55M | 11.83M | -43.28M | -4.82M | -209.07M | 70.76M | 51.83M | 21.52M | 39.3M | 43.05M | 44.2M | 36.55M | -22.07M | 26.83M | 57.86M | 30.4M | 89.3M |
| Dividends Paid | -32.64M | -32.65M | -31.78M | -30.82M | -29.49M | -28.94M | -28.86M | -30.91M | -25.79M | -18.3M | -21.57M | -15.92M | -12.89M | -6.67M | -12.15M | -5.91M | -1.17M | -1.85M | -3.75M | -5.56M | -5.07M | -4.29M | -3.74M | -3.73M | -3.54M | -3.18M | -2.86M | -2.4M | -300K |
| Share Repurchases | -5.64M | -5.52M | -22.42M | -6.97M | -3.2M | -22.89M | -19.12M | -8.64M | -1.7M | -737K | -2.89M | -7.74M | -2.6M | -8.82M | -6.02M | -2.34M | 0 | 0 | 0 | -1.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 54.09M | 46.57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | -5.64M | -5.52M | -22.42M | -6.97M | -3.2M | -22.89M | -19.12M | -8.64M | -1.7M | -737K | -2.89M | -7.74M | -2.6M | -8.82M | -6.02M | -2.34M | 54.09M | 46.57M | 0 | -1.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | -3M | -1000K | -1000K | 1000K | 0 | 1000K | 0 | 0 | -1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | -1000K | 0 | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | -700K |
| Other Financing | 14.21M | 235.59M | 84.74M | -356.9M | -473.69M | 783.35M | 1.03B | 139.01M | 214.08M | 173.29M | 120.91M | 193.88M | 77.04M | 27.32M | -25.11M | 3.43M | -220.46M | 26.04M | 48.52M | 52.03M | 45.28M | 49.23M | 45.45M | 24.72M | 2.04M | 54.53M | 55.15M | 37.8M | 27.1M |
| Net Change in Cash | 19.48M | 115.99M | -107.87M | 121.38M | -1.62B | 979.97M | 514.75M | 66.66M | 58.9M | -730K | -22.89M | 5M | -8.76M | 26.13M | -18.91M | -45.72M | 61.76M | 46.6M | 26.17M | 8.03M | -1.57M | 2.66M | -10.19M | -10.42M | -4.83M | 29.31M | 820K | -50.3M | 71.9M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 233.09M | 117.1M | 224.97M | 103.59M | 1.72B | 743.32M | 228.57M | 161.91M | 103.02M | 103.75M | 126.64M | 121.64M | 130.4M | 104.27M | 123.17M | 168.89M | 107.23M | 60.63M | 34.46M | 26.43M | 28M | 25.34M | 35.53M | 45.94M | 50.78M | 21.46M | 20.64M | 70.9M | 12.2M |
| Cash at End | 268.14M | 233.09M | 117.1M | 224.97M | 103.59M | 1.72B | 743.32M | 228.57M | 161.91M | 103.02M | 103.75M | 126.64M | 121.64M | 130.4M | 104.27M | 123.17M | 168.99M | 107.23M | 60.63M | 34.46M | 26.43M | 28M | 25.34M | 35.53M | 45.94M | 50.78M | 21.46M | 20.6M | 84.1M |
| Interest Paid | 86.59M | 90.14M | 112.22M | 46.13M | 7.71M | 6.79M | 13.14M | 17.87M | 12.38M | 8.4M | 6M | 6.32M | -5.42M | 3.68M | 4.61M | 6.72M | 8.46M | 12.08M | 19.53M | 25.39M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 2.69M | 2.69M | 1.5M | 2.97M | 5.04M | 9.89M | 13.43M | 7.53M | 5.63M | 2.04M | 11.5M | 15.29M | -9.79M | 3.57M | 10.71M | 10M | 1.49M | 4.94M | 4.51M | 5.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 80.25M | 85.66M | 61.02M | 99.15M | 90.44M | 66.51M | 63.33M | 79.45M | 67.15M | 70.45M | 47.26M | 49.58M | 47.4M | 25.69M | 24.02M | 17.74M | 20.16M | 7.89M | 13.32M | 12.49M | 9.16M | 12.46M | 14.22M | 17.84M | 7.3M | 7.38M | 2.27M | 12.8M | 7.1M |
| FCF Growth % | 19.6% | 40.38% | -38.45% | 9.63% | 35.98% | 5.02% | -20.28% | 18.32% | -4.69% | 49.08% | -4.68% | 4.6% | 84.48% | 6.95% | 35.39% | -11.97% | 155.5% | -40.79% | 6.67% | 36.34% | -26.49% | -12.34% | -20.33% | 144.39% | -1.03% | 225.6% | -82.3% | 80.28% | - |
Regional CRE concentration exposure
According to the bank's historical cash flow data, HFWA has maintained a consistent pattern of recycling capital through its investment portfolio, with quarterly sales of securities reaching as high as $202.8 million in 2023Q4, suggesting an active approach to managing duration and liquidity in fluctuating rate environments.
The bank's investment activity reveals a recurring cycle of liquidating securities to potentially fund loan growth or manage liquidity needs. Investors should monitor whether the recent shift toward net purchases in 2026Q1 indicates a strategic pivot toward locking in higher yields or a defensive posture against future volatility.
Based on reported financial statements, HFWA has maintained a remarkably stable dividend payout of approximately $8 million per quarter, demonstrating a commitment to shareholder returns that appears resilient even during periods of earnings volatility, such as the lower net income figures observed in early 2024.
The consistency of dividend payments relative to net income suggests a conservative capital allocation framework that prioritizes shareholder stability. While buyback activity remains opportunistic and relatively modest, the bank's ability to sustain these distributions indicates a strong underlying capital position that warrants further investigation into long-term payout capacity.
As reported in the company's cash flow filings, the transition from a $2.4 million provision expense in 2024Q3 to a $1.0 million reversal in 2026Q1 highlights the significant impact of credit reserve adjustments on the bank's reported cash flow and bottom-line earnings performance.
This reversal suggests management's evolving outlook on credit quality within the Pacific Northwest portfolio. Analysts should interpret these fluctuations with caution, as they may mask underlying credit trends and do not necessarily reflect actual cash outflows related to loan defaults.
Based on the provided data, the bank's operating cash flow frequently deviates from net income, with OCF/NI ratios ranging from 0.48 to 4.97, which indicates that traditional cash flow metrics are heavily distorted by non-cash items and the timing of loan-related activities.
The extreme volatility in the OCF/NI ratio suggests that investors should prioritize balance sheet health over cash flow statement metrics when assessing the bank's operational strength. This discrepancy appears to be a structural feature of the bank's reliance on loan originations and securities portfolio management rather than a sign of operational instability.
Quick answers to the most common questions about buying HFWA stock.
Heritage Financial Corporation (HFWA) generated $94.8M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Heritage Financial Corporation (HFWA) generated $85.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Heritage Financial Corporation (HFWA) spent $9.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Heritage Financial Corporation (HFWA) returned $32.6M to shareholders via cash dividends and spent $5.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.