Market Overview

UPDATE: D.A. Davidson & Co. Upgrades Heritage Financial Corporation Following Announcement of Merger with Washington Banking Co.


In a report published Thursday, D.A. Davidson & Co. analyst Jeff Rulis upgraded the rating on Heritage Financial Corporation (NASDAQ: HFWA) from Neutral to Buy, and raised the price target from $16.50 to $19.00.

In the report, D.A. Davidson & Co. noted, “HFWA announced a merger agreement with Washington Banking Co. (WBCO–NEUTRAL–$14.25) for $265.1 million. WBCO shareholders will receive 0.89 shares of HFWA in addition to $2.75 in cash for each share of WBCO. The approximate deal value is $265.1 million, or $16.89 per share, and is expected to close in the first half of 2014. The deal value represents 1.49x WBCO's 9/30 TBV. The combination will create a $3.3 billion asset bank with a pro forma deposit market share rank of #3 among WA-based banks. We view Heritage and Washington Banking Co. as similarly operated institutions that should exploit the SW Washington/NW Oregon footprint of HFWA along with WBCO's NW Washington presence. Separately, the banks face daunting regulatory and leverage challenges; together, these threats are minimized and a nimble, yet substantial franchise should thrive.”

Heritage Financial Corporation closed on Wednesday at $15.89.

Latest Ratings for HFWA

Nov 2019DowngradesBuyNeutral
Jul 2019DowngradesBuyNeutral
Apr 2019DowngradesBuyHold

View More Analyst Ratings for HFWA
View the Latest Analyst Ratings

Posted-In: D.A. Davidson & Co. Jeff RulisAnalyst Color Upgrades Analyst Ratings


Related Articles (HFWA)

View Comments and Join the Discussion!

Latest Ratings

RPAYCantor FitzgeraldMaintains18.0
CMSCredit SuisseDowngrades
PBCTStephens & Co.Maintains15.5
TTECCowen & Co.Initiates Coverage On50.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at