Heritage Financial Corporation (HFWA)
Return on equity (ROE)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 61,755 | 78,066 | 80,837 | 82,575 | 81,875 | 78,728 | 78,330 | 92,448 | 98,035 | 102,520 | 98,564 | 59,723 | 46,570 | 39,814 | 41,073 | 63,196 | 67,557 | 67,040 | 64,649 | 60,522 |
| Total stockholders’ equity | US$ in thousands | 853,261 | 813,546 | 819,733 | 826,082 | 797,893 | 776,702 | 805,366 | 821,449 | 854,432 | 848,404 | 855,984 | 827,151 | 820,439 | 803,129 | 793,652 | 798,438 | 809,311 | 804,127 | 796,625 | 778,191 |
| ROE | 7.24% | 9.60% | 9.86% | 10.00% | 10.26% | 10.14% | 9.73% | 11.25% | 11.47% | 12.08% | 11.51% | 7.22% | 5.68% | 4.96% | 5.18% | 7.91% | 8.35% | 8.34% | 8.12% | 7.78% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $61,755K ÷ $853,261K
= 7.24%
The return on equity (ROE) of Heritage Financial Corp. has exhibited some fluctuations over the past eight quarters, ranging from a low of 7.24% in Q4 2023 to a high of 11.25% in Q1 2022. The trend indicates a general decline from the higher levels seen in early 2022. However, despite the fluctuations, the ROE has mostly remained within a relatively narrow range between 7.24% and 11.25%.
The current ROE of 7.24% in Q4 2023 reflects a decrease compared to the previous quarter, indicating a potential decrease in the company's profitability relative to its equity. It is essential for Heritage Financial Corp. to assess the factors contributing to this decrease in ROE and implement strategies to improve profitability and efficiency in order to enhance shareholder value.