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Heritage Financial HFWA Market discount on acquired loans

Market discount on acquired loans at other companies

WaFd, Inc. logo
WaFd, Inc.WAFD
$42.27M-12.0%
Camden National logo
Camden NationalCAC
$75.91M-17.5%
GBC
Glacier BancorpGBCI
-$71.23M-128%
First Bancorp logo
First BancorpFBNC
$1.29M-41.0%
CVB Financial logo
CVB FinancialCVBF
$569K-15.6%
TFI
Triumph FinancialTFIN
$721.25K+4.4%

Other financials

Income statement

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Revenue$77.9M+35.3%
Net income$18.9M+36.2%
EPS (diluted)$0.48+20.0%

Balance sheet

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Cash & equivalents$268.1M+7.8%
Total debt$20.0M-92.4%
Total equity$1.1B+26.6%
Total assets$8.5B+19.2%

Cash flow

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Operating cash flow$14.0M-27.4%
CapEx$1.3M+11.2%
Free cash flow$12.7M-29.9%

Valuation

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Market cap$1.21B+56.8%
Enterprise value$959.16M+22.1%
P/E16.6×+1.7×
P/S4.5×+1.1×

Profitability

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Net margin27.2%+4.5pp
FCF margin30.1%+0.4pp

Returns & leverage

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Return on equity7.3%+1.3pp
Debt / equity-0.3×

Where this comes from

Reported directly by Heritage Financial in its filing.

Tagged under the XBRL concept hfwa:DeferredTaxAssetsMarketDiscountonLoans.

The official record: Heritage Financial’s 10-K, filed February 27, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Heritage Financial's market discount on acquired loans?
Heritage Financial (HFWA) reported market discount on acquired loans of $402K in Q4 2025.
How has Heritage Financial's market discount on acquired loans changed year-over-year?
Heritage Financial's market discount on acquired loans decreased by 21.3% year-over-year, from $511K to $402K.
What is the long-term trend for Heritage Financial's market discount on acquired loans?
Over 5 years (2020 to 2025), Heritage Financial's market discount on acquired loans has grown at a -17.7% compound annual growth rate (CAGR), from $1.06M to $402K.
What does market discount on acquired loans mean?
This represents the unamortized market discount associated with acquired loan portfolios, which is recognized as a deferred tax asset. It reflects the difference between the fair value of loans at acquisition and their par value, impacting future interest income recognition.