GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Heritage Financial Corp (NAS:HFWA) » Definitions » ROE %

Heritage Financial (Heritage Financial) ROE % : 2.99% (As of Dec. 2023)


View and export this data going back to 1998. Start your Free Trial

What is Heritage Financial ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Heritage Financial's annualized net income for the quarter that ended in Dec. 2023 was $24.9 Mil. Heritage Financial's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $833.4 Mil. Therefore, Heritage Financial's annualized ROE % for the quarter that ended in Dec. 2023 was 2.99%.

The historical rank and industry rank for Heritage Financial's ROE % or its related term are showing as below:

HFWA' s ROE % Range Over the Past 10 Years
Min: 5.71   Med: 8.27   Max: 11.71
Current: 7.51

During the past 13 years, Heritage Financial's highest ROE % was 11.71%. The lowest was 5.71%. And the median was 8.27%.

HFWA's ROE % is ranked worse than
65.89% of 1460 companies
in the Banks industry
Industry Median: 9.88 vs HFWA: 7.51

Heritage Financial ROE % Historical Data

The historical data trend for Heritage Financial's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Heritage Financial ROE % Chart

Heritage Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.61 5.71 11.71 9.91 7.48

Heritage Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.45 10.08 8.19 8.92 2.99

Competitive Comparison of Heritage Financial's ROE %

For the Banks - Regional subindustry, Heritage Financial's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Heritage Financial's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Heritage Financial's ROE % distribution charts can be found below:

* The bar in red indicates where Heritage Financial's ROE % falls into.



Heritage Financial ROE % Calculation

Heritage Financial's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=61.755/( (797.893+853.261)/ 2 )
=61.755/825.577
=7.48 %

Heritage Financial's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=24.932/( (813.546+853.261)/ 2 )
=24.932/833.4035
=2.99 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Heritage Financial  (NAS:HFWA) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=24.932/833.4035
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(24.932 / 202.896)*(202.896 / 7162.7725)*(7162.7725 / 833.4035)
=Net Margin %*Asset Turnover*Equity Multiplier
=12.29 %*0.0283*8.5946
=ROA %*Equity Multiplier
=0.35 %*8.5946
=2.99 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=24.932/833.4035
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (24.932 / 26.308) * (26.308 / 202.896) * (202.896 / 7162.7725) * (7162.7725 / 833.4035)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.9477 * 12.97 % * 0.0283 * 8.5946
=2.99 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Heritage Financial ROE % Related Terms

Thank you for viewing the detailed overview of Heritage Financial's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Heritage Financial (Heritage Financial) Business Description

Traded in Other Exchanges
N/A
Address
201 Fifth Avenue SW, Olympia, WA, USA, 98501
Heritage Financial Corp is a bank holding company. The company through its subsidiary provides commercial lending and deposit relationships with small businesses and their owners in its market areas and attracts deposits from the general public. It accepts various deposit products, such as noninterest demand accounts, money market accounts, savings accounts, and certificates of deposit. Besides, the Bank also makes real estate construction loans, land development loans, and consumer loans, and originates first mortgage loans on residential properties primarily located in its market area. Geographically, all the business activity functions through the region of the United States.
Executives
Frederick B Rivera director 201 5TH AVE SW, OLYMPIA WA 98501
Brian Charneski director P O BOX 1578, OLYMPIA WA 98507
Jeffrey S Lyon director 2542 N VISTA VIEW DRIVE, TACOMA WA 98406
Matthew T. Ray officer: EVP Chief Lending Officer 201 5TH AVE SW, OLYMPIA WA 98501
Eric Kayen Chan director 201 5TH AVE SW, OLYMPIA WA 98501
Amy E. Curran officer: EVP Director Commercial Lend 201 5TH AVE SW, OLYMPIA WA 98501
Kelli Ann Wilson officer: EVP Chief Banking Officer 201 5TH AVE SW, OLYMPIA WA 98501
Cindy M Huntley officer: SVP Director of Retail Banking 201 5TH AVE SW, OLYMPIA WA 98507
Brian L Vance director, officer: President and CEO 2204 57TH WAY NW, OLYMPIA WA 98502
John A Clees director 4342 SUNSET BEACH DRIVE NW, OLYMPIA WA 98502
Tony Chalfant officer: EVP Chief Credit Officer 201 5TH ST SW, OLYMPIA WA 98501
Gail B. Giacobbe director 201 5TH AVE SW, OLYMPIA WA 98501
Trevor D. Dryer director 201 5TH AVE SW, OLYMPIA WA 98501
Gragg E Miller director 450 SW BAYSHORE DRIVE, OAK HARBOR WA 98277
Jeffrey J Deuel officer: Executive Vice President 201 5TH AVENUE SW, OLYMPIA WA 90501