
Heritage Financial (HFWA) Stock Forecast & Price Target
Heritage Financial (HFWA) Analyst Ratings
Bulls say
Heritage Financial Corp demonstrated a noteworthy increase in net interest income (NII), rising 1.7% quarter-over-quarter to reach $58.4 million, which surpassed forecasts, while net interest margin (NIM) expanded for the sixth consecutive quarter to 3.72%. Despite some fluctuations in loan classifications, the company's projected return on assets (ROA) and return on tangible common equity (ROTCE) are anticipated to approach 1.30% and 14%, respectively, indicating robust financial health and efficient management. Furthermore, the substantial revision in earnings per share (EPS) projections reflects a positive outlook for continued growth, especially with an expected 16% year-over-year increase in EPS driven by the successful closing of the Olympic transaction.
Bears say
Heritage Financial Corp has experienced a notable decline in total borrowings, which decreased by $118.0 million quarter-over-quarter, leaving the company with only $20.0 million in borrowings, indicating a potential liquidity concern. Additionally, noninterest income declined by 4.1% from the previous quarter to $8.0 million, falling short of projections, which raises concerns about the bank's ability to generate revenue beyond its core lending activities. The potential risks highlighted include significant economic deterioration in the Pacific Northwest, characterized by home price depreciation and worsening employment conditions, which could lead to a severe deterioration in credit quality, further threatening the bank’s financial stability.
This aggregate rating is based on analysts' research of Heritage Financial and is not a guaranteed prediction by Public.com or investment advice.
Heritage Financial (HFWA) Analyst Forecast & Price Prediction
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