Net interest income growth accelerated to 28.9% in 2026Q1, though the efficiency ratio weakened to 56.9% compared to sub-50% levels seen in late 2025.
| 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 |
|---|
| Net Interest Income | 239.93M | 224.41M | 209.36M | 225.16M | 219.38M | 205.79M | 201M | 199.68M | 186.99M | 139.36M | 132.51M | 129.62M | 115.42M | 67.7M | 64.58M | 67.54M | 51.01M | 41.7M | 38.31M | 36.6M | 35.77M | 33.88M | 31.73M | 29.82M | 30.2M | 26.63M | 24.84M | 23.5M | 16.1M |
| NII Growth % | 53.38% | 7.18% | -7.01% | 2.63% | 6.61% | 2.38% | 0.66% | 6.79% | 34.18% | 5.17% | 2.23% | 12.3% | 70.48% | 4.85% | -4.39% | 32.4% | 22.34% | 8.84% | 4.67% | 2.32% | 5.58% | 6.79% | 6.41% | -1.28% | 13.41% | 7.21% | 5.71% | 45.96% | - |
| Net Interest Margin % | 2.82% | 3.22% | 2.95% | 3.14% | 3.14% | 2.77% | 3.04% | 3.6% | 3.52% | 3.39% | 3.42% | 3.55% | 3.34% | 4.08% | 4.8% | 4.93% | 3.73% | 4.11% | 4.05% | 4.13% | 4.19% | 4.51% | 4.55% | 4.65% | 5.08% | 4.37% | 4.33% | 4.6% | 3.87% |
| Interest Income | 327.55M | 314.24M | 309.71M | 284.46M | 227.46M | 212.83M | 214.32M | 217.85M | 199.41M | 147.71M | 138.51M | 135.74M | 121.11M | 71.43M | 69.11M | 74.12M | 59.52M | 53.34M | 56.92M | 62.37M | 55.24M | 45.43M | 38.94M | 37.15M | 40.43M | 45.19M | 44.24M | 36.6M | 28M |
| Interest Expense | 87.61M | 89.83M | 100.35M | 59.31M | 8.07M | 7.04M | 13.32M | 18.17M | 12.41M | 8.35M | 6.01M | 6.12M | 5.68M | 3.72M | 4.53M | 6.58M | 8.51M | 11.64M | 18.61M | 25.77M | 19.46M | 11.55M | 7.22M | 7.33M | 10.22M | 18.56M | 19.4M | 13.1M | 11.9M |
| Loan Loss Provision | 1.7M | 2.78M | 6.28M | 4.28M | -1.43M | -29.37M | 36.11M | 4.31M | 5.13M | 4.22M | 4.93M | 4.37M | 4.59M | 3.67M | 2.02M | 14.43M | 11.99M | 19.39M | 7.42M | 810K | 720K | 810K | 645K | 1.13M | 1.83M | 1.19M | 787K | 400K | 100K |
| Non-Interest Income | 26.52M | 21.73M | 7.47M | 18.66M | 29.59M | 34.62M | 37.23M | 32.46M | 31.62M | 35.58M | 31.62M | 32.27M | 16.42M | 9.21M | 7.19M | 5.65M | 9.53M | 8.67M | 8.86M | 8.59M | 7.95M | 6.63M | 6.5M | 7.16M | 6.18M | 5.92M | 4.19M | 4M | 4.3M |
| Non-Interest Income % | 7.49% | 6.47% | 2.36% | 6.16% | 11.51% | 13.99% | 14.8% | 12.97% | 13.69% | 19.41% | 18.59% | 19.21% | 11.94% | 11.43% | 9.43% | 7.08% | 13.8% | 13.98% | 13.46% | 12.11% | 12.59% | 12.74% | 14.3% | 16.17% | 13.26% | 11.59% | 8.65% | 9.85% | 13.31% |
| Total Revenue | 354.07M | 335.97M | 317.19M | 303.13M | 257.05M | 247.45M | 251.55M | 250.31M | 231.02M | 183.29M | 170.13M | 168.01M | 137.53M | 80.64M | 76.3M | 79.77M | 69.05M | 62.01M | 65.77M | 70.96M | 63.19M | 52.06M | 45.44M | 44.31M | 46.61M | 51.12M | 48.43M | 40.6M | 32.3M |
| Revenue Growth % | 33.22% | 5.92% | 4.64% | 17.93% | 3.88% | -1.63% | 0.49% | 8.35% | 26.04% | 7.73% | 1.26% | 22.16% | 70.54% | 5.69% | -4.34% | 15.53% | 11.35% | -5.72% | -7.32% | 12.3% | 21.39% | 14.56% | 2.54% | -4.92% | -8.82% | 5.54% | 19.29% | 25.7% | - |
| Non-Interest Expense | 180.73M | 165.57M | 158.3M | 166.62M | 150.97M | 149.27M | 148.94M | 146.79M | 149.19M | 110.58M | 106.47M | 106.21M | 99.33M | 59.08M | 50.31M | 49.6M | 28.76M | 30.89M | 30.42M | 28.29M | 27.08M | 24.18M | 23.27M | 22.22M | 20.25M | 20.62M | 19.32M | 18.7M | 13.6M |
| Efficiency Ratio | 51.04% | 49.28% | 49.91% | 54.97% | 58.73% | 60.32% | 59.21% | 58.64% | 64.58% | 60.33% | 62.58% | 63.22% | 72.23% | 73.26% | 65.94% | 62.19% | 41.65% | 49.82% | 46.25% | 39.86% | 42.86% | 46.45% | 51.21% | 50.15% | 43.46% | 40.35% | 39.9% | 46.06% | 42.11% |
| Operating Income | 84.03M | 77.79M | 52.26M | 72.92M | 99.44M | 120.51M | 53.18M | 81.05M | 64.3M | 60.15M | 52.72M | 51.31M | 27.92M | 14.17M | 19.44M | 9.15M | 19.79M | 78K | 9.33M | 16.09M | 15.92M | 15.52M | 14.31M | 13.63M | 14.29M | 10.74M | 8.92M | 8.4M | 6.7M |
| Operating Margin % | 23.73% | 23.15% | 16.48% | 24.05% | 38.68% | 48.7% | 21.14% | 32.38% | 27.83% | 32.82% | 30.99% | 30.54% | 20.3% | 17.57% | 25.48% | 11.47% | 28.66% | 0.13% | 14.18% | 22.68% | 25.2% | 29.81% | 31.49% | 30.76% | 30.67% | 21.01% | 18.42% | 20.69% | 20.74% |
| Operating Income Growth % | - | 48.85% | -28.33% | -26.67% | -17.49% | 126.6% | -34.38% | 26.05% | 6.9% | 14.09% | 2.76% | 83.77% | 97.06% | -27.12% | 112.42% | -53.76% | 25270.51% | -99.16% | -42.05% | 1.07% | 2.62% | 8.44% | 4.97% | -4.63% | 33.1% | 20.39% | 6.2% | 25.37% | - |
| Pretax Income | 84.84M | 78.6M | 52.26M | 72.92M | 99.44M | 120.51M | 53.18M | 81.05M | 64.3M | 60.15M | 52.72M | 51.31M | 27.92M | 14.17M | 19.44M | 9.15M | 19.79M | 78K | 9.33M | 16.09M | 15.92M | 15.52M | 14.31M | 13.63M | 14.29M | 10.74M | 8.92M | 8.4M | 6.7M |
| Pretax Margin % | 23.96% | 23.4% | 16.48% | 24.05% | 38.68% | 48.7% | 21.14% | 32.38% | 27.83% | 32.82% | 30.99% | 30.54% | 20.3% | 17.57% | 25.48% | 11.47% | 28.66% | 0.13% | 14.18% | 22.68% | 25.2% | 29.81% | 31.49% | 30.76% | 30.67% | 21.01% | 18.42% | 20.69% | 20.74% |
| Income Tax | 12.27M | 11.07M | 9M | 11.16M | 17.56M | 22.47M | 6.61M | 13.49M | 11.24M | 18.36M | 13.8M | 13.82M | 6.91M | 4.59M | 6.18M | 2.63M | 6.43M | -503K | 2.98M | 5.39M | 5.38M | 5.04M | 4.72M | 4.73M | 4.87M | 3.78M | 2.95M | 3M | 2.4M |
| Effective Tax Rate % | 14.47% | 14.08% | 17.22% | 15.31% | 17.66% | 18.65% | 12.43% | 16.64% | 17.48% | 30.52% | 26.18% | 26.93% | 24.73% | 32.42% | 31.78% | 28.77% | 32.52% | -644.87% | 31.91% | 33.47% | 33.77% | 32.49% | 33.02% | 34.69% | 34.07% | 35.18% | 33.03% | 35.71% | 35.82% |
| 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 |
| Net Margin % | 20.5% | 20.1% | 13.64% | 20.37% | 31.85% | 39.62% | 18.51% | 26.99% | 22.97% | 22.8% | 22.88% | 22.31% | 15.28% | 11.87% | 17.38% | 8.17% | 19.34% | 0.94% | 9.66% | 15.09% | 16.69% | 20.12% | 21.09% | 20.09% | 20.22% | 13.62% | 12.33% | 13.3% | 13.31% |
| Net Income Growth % | 41.13% | 56.11% | -29.95% | -24.57% | -16.48% | 110.51% | -31.07% | 27.33% | 26.96% | 7.38% | 3.81% | 78.4% | 119.47% | -27.8% | 103.45% | -51.19% | 2198.45% | -90.85% | -40.69% | 1.53% | 0.68% | 9.3% | 7.65% | -5.52% | 35.36% | 16.54% | 10.63% | 25.58% | - |
| Net Income (Continuing) | 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 |
| EPS (Diluted) | 1.86 | 1.96 | 1.24 | 1.75 | 2.31 | 2.73 | 1.29 | 1.83 | 1.50 | 1.29 | 1.30 | 1.25 | 0.82 | 0.61 | 0.87 | 0.42 | 1.04 | 0.07 | 0.93 | 1.61 | 1.60 | 1.65 | 1.42 | 1.26 | 1.21 | 0.82 | 0.62 | 0.47 | 0.38 |
| EPS Growth % | 36.91% | 58.06% | -29.14% | -24.24% | -15.38% | 111.63% | -29.51% | 22% | 16.28% | -0.77% | 4% | 52.44% | 34.43% | -29.89% | 107.14% | -59.62% | 1301.62% | -92.02% | -42.24% | 0.63% | -3.03% | 16.2% | 12.7% | 4.13% | 47.56% | 32.26% | 31.91% | 23.68% | - |
| EPS (Basic) | - | 1.99 | 1.26 | 1.76 | 2.33 | 2.75 | 1.29 | 1.84 | 1.49 | 1.29 | 1.30 | 1.25 | 0.82 | 0.61 | 0.87 | 0.42 | 1.05 | 0.07 | 0.93 | 1.63 | 1.65 | 1.69 | 1.46 | 1.30 | 1.25 | 0.83 | 0.63 | 0.48 | 0.39 |
| Diluted Shares Outstanding | 39.1M | 34.41M | 34.9M | 35.26M | 35.46M | 35.97M | 36.17M | 36.99M | 35.37M | 29.85M | 29.69M | 29.81M | 25.48M | 15.49M | 15.1M | 15.5M | 11.17M | 7.83M | 6.65M | 6.67M | 6.59M | 6.36M | 6.75M | 7.07M | 7.79M | 8.54M | 9.65M | 11.57M | 11.29M |
Regional CRE concentration exposure
According to the latest quarterly data, Heritage Financial Corporation achieved a notable 28.9% year-over-year growth in net interest income as of 2026Q1, signaling a significant departure from the stagnant or negative growth trends observed throughout the 2024 fiscal year and early 2025 periods.
The sharp uptick in NII suggests that the bank has successfully navigated the recent rate environment, likely benefiting from asset repricing that outpaced deposit cost increases. Investors should monitor whether this momentum is sustainable or if it reflects a temporary surge in loan volume that may face headwinds from regional economic cooling.
Based on reported financial statements, HFWA's efficiency ratio reached 56.9% in 2026Q1, representing a meaningful deterioration from the sub-50% levels maintained during the latter half of 2025, which warrants further investigation into rising non-interest expense drivers relative to the bank's total revenue generation.
The recent expansion in the efficiency ratio suggests that operating leverage may be under pressure, potentially due to increased personnel costs or technology investments required to maintain competitive service levels. This trend implies that management must demonstrate tighter control over overhead to prevent further erosion of pre-provision net revenue margins.
As reported in the 2026Q1 financial filings, the bank recorded a $1.0 million provision reversal, a stark contrast to the $2.4 million provision expense recognized in 2024Q3, which significantly bolstered the bottom-line earnings performance during the most recent quarter of the reporting cycle.
This shift to a negative provision expense suggests a more optimistic internal assessment of credit quality or a release of previously established reserves under the CECL framework. Analysts should remain cautious, as this accounting benefit may mask underlying credit deterioration in the bank's commercial real estate portfolio.
Data from the income statement indicates that non-interest income rebounded to $8.7 million in 2026Q1, recovering from the negative figures reported in early 2024, which highlights the bank's renewed reliance on fee-based revenue streams like SBA loan sales to supplement core interest income.
The volatility in fee income, particularly the swing from negative values in 2024 to current levels, suggests that the bank's non-interest segment is highly sensitive to secondary market conditions. This dependency may introduce earnings lumpiness that complicates the predictability of quarterly results for institutional investors.
Quick answers to the most common questions about buying HFWA stock.
Heritage Financial Corporation (HFWA) is profitable, generating $67.5M in net income for the fiscal year ending 2025 with a net profit margin of 20.1%.
Heritage Financial Corporation (HFWA) reported an operating income of $77.8M, resulting in an operating profit margin of 23.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Heritage Financial Corporation (HFWA) generated $243.4M in gross profit for the year, representing a gross profit margin of 72.4%. This demonstrates the company's core pricing power and production efficiency.