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Net Charge Offs to Average Loans % is the net charge-offs divided by the average total loans during a specific period. This ratio measures the proportion of debt owed to a company that is unlikely to be recovered. A higher ratio means there’s more bad debt that is unlikely to be collected, which leads investors to believe it has a very risky portfolio.
Heritage Financial's Net Charge Offs to Average Loans % for the quarter that ended in Jun. 2026 was 0.02%
, which is lower than
0.04% for the pervious quarter ended in Mar. 2026.
Heritage Financial's Net Charge Offs to Average Loans % for the annual that ended in Dec. 2025 was 0.03%
, which is lower than
0.06% for the pervious year ended in Dec. 2024.
The historical rank and industry rank for Heritage Financial's Net Charge Offs to Average Loans % or its related term are showing as below:
HFWA's Net Charge Offs to Average Loans % is not ranked *
in the Banks industry.
Industry Median: * Ranked among companies with meaningful Net Charge Offs to Average Loans % only.
Heritage Financial (NAS:HFWA) Net Charge Offs to Average Loans % Explanation
A Net Charge-off (NCO) is the dollar amount representing the difference between gross charge-offs and any subsequent recoveries of delinquent debt. The bad debt often needs to be written off and classified as gross charge-off. If any money is recovered from that debt, the recovered amount needs to be subtracted from gross charge-off, which is how we get the net charge-off.
Net Charge Offs to Average Loans % represents the amount of debt that a company believes it will never collect and is an indicator of a financial institution's loan portfolio performance. A higher ratio, especially when compared to the previous period or to other banks, would suggest that there’s more bad debt that is unlikely to be collected and the loan portfolio may be too risky.
Heritage Financial Net Charge Offs to Average Loans % Related Terms
Heritage Financial Net Charge Offs to Average Loans % Historical Data
* Premium members only.
The historical data trend for Heritage Financial's Net Charge Offs to Average Loans % 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.
Heritage Financial Net Charge Offs to Average Loans % Chart
HFWA vs FMBL, AMTB, UVSP: Net Charge Offs to Average Loans % Comparison
For the Banks - Regional subindustry, Heritage Financial's Net Charge Offs to Average Loans %, along with its competitors' market caps and Net Charge Offs to Average Loans % 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 (NAS:HFWA) Net Charge Offs to Average Loans % Calculation
Net Charge Offs to Average Loans % is calculated as
Net Charge Offs to Average Loans %
=
Net Charge-offs
/
Average Total Loans
* 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.
Frequently Asked Questions
What does a Net Charge Offs to Average Loans % of 0.02% mean?
Heritage Financial (HFWA) has a Net Charge Offs to Average Loans % of 0.02% as of Jun. 2026. Net Charge Offs Average Loans is the net charge-offs divided by the average total loans during a specific period. View historical data on Heritage Financial and its competitors.
Is Heritage Financial's Net Charge Offs to Average Loans % too high?
Heritage Financial's current Net Charge Offs to Average Loans % is 0.02%. Overall, Heritage Financial has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Heritage Financial's Net Charge Offs to Average Loans % compare to FMBL and AMTB?
Heritage Financial's Net Charge Offs to Average Loans % of 0.02% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Charge Offs to Average Loans % for a Banks company?
A good Net Charge Offs to Average Loans % depends on the Banks industry context. However, Net Charge Offs to Average Loans % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Charge Offs to Average Loans % mean?
A high Net Charge Offs to Average Loans % can signal that a stock is expensive relative to its fundamentals. Net Charge Offs Average Loans is the net charge-offs divided by the average total loans during a specific period. View historical data on Heritage Financial and its competitors. Heritage Financial's current Net Charge Offs to Average Loans % is 0.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heritage Financial stock overvalued right now?
Based on GuruFocus' analysis, Heritage Financial (HFWA) is currently considered Fairly Valued. The stock's GF Value™ is $28.11, compared to a current price of $28.67 — trading 2% above its estimated fair value. The current Net Charge Offs to Average Loans % is 0.02%. Heritage Financial's overall GF Score™ is 62/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Charge Offs to Average Loans % calculated?
Net Charge Offs to Average Loans % is calculated from a company's financial statements. For Heritage Financial (HFWA), the current Net Charge Offs to Average Loans % is 0.02% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Heritage Financial (HFWA) Overvalued in 2026?
Based on GuruFocus' analysis, Heritage Financial stock appears to be overvalued.
The current stock price of $28.67 is trading 2% above its estimated GF Value™ of $28.11.
GuruFocus considers Heritage Financial to be Fairly Valued.
Key valuation signals for HFWA:
Net Charge Offs to Average Loans %: 0.02%
GF Value™: $28.11 vs. price of $28.67 (2% above fair value)
No single metric tells the full story. See the HFWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 non-interest 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 mainly located in its market area. Geographically, all the business activity functions through the region of the United States.
62GF Score
Get the complete analysis for HFWA
Net Charge Offs to Average Loans % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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