What is Heritage Financial Corporation's Shariah compliance score?

Heritage Financial Corporation's (HFWA) compliance score is being calculated. Check HalalScreener.app for the latest AAOIFI screening results.

Does Heritage Financial Corporation pass AAOIFI screening?

Heritage Financial Corporation (HFWA) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (HFWA: 4.2%), (3) interest-bearing deposits below 30% (HFWA: 66.0%), and (4) prohibited income below 5% (HFWA: 93.5%). HalalScreener provides free AAOIFI screening for 10,000+ stocks at halalscreener.app.

How much purification is needed for Heritage Financial Corporation stock?

Heritage Financial Corporation (HFWA) has a non-permissible income ratio of 93.53%. Muslim investors should purify this percentage of any dividends received and capital gains realized from HFWA shares by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification automates this calculation using the latest financial data.

Where can I screen Heritage Financial Corporation for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Heritage Financial Corporation (HFWA) and 10,000+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows all financial ratios transparently. No credit card or signup required for basic screening. HalalScreener also includes an AI Islamic Scholar for follow-up questions about HFWA's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

HFWA: Is Heritage Financial Corporation Halal?

Heritage Financial Corporation

NASDAQFinancial ServicesUS

$29.70

-1.75%

Market Cap: 1.0B

Compliance Status

Not Halal

Screened on Jul 13, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Heritage Financial Corporation (HFWA) halal? Not Halal. Based on AAOIFI screening, Heritage Financial Corporation has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

AvoidBorderlineClean

Business activity

Involved in prohibited business activities.

Failed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

4.2% of 30.0% limit

What this means for you

Most scholars advise not holding HFWA

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Heritage Financial Corporation

Heritage Financial Corporation operates as the parent company for Heritage Bank, providing a comprehensive range of financial services to individuals and small to mid-sized businesses throughout the United States. The company's deposit offerings include various checking accounts (both interest and non-interest bearing), money market accounts, savings accounts, and certificates of deposit. Its extensive lending portfolio encompasses commercial and industrial financing, real estate loans for both owner-occupied and investment properties, residential mortgages for single to four-family dwellings, and funding for construction and land development projects. Additionally, it extends consumer loans, lines of credit, equipment financing, and commercial business loans to a wide array of sectors such as real estate, leasing, healthcare, hospitality, retail, and construction. Heritage Financial also originates loans backed by the U.S. Small Business Administration and delivers trust services along with professional financial guidance. As of January 27, 2022, the corporation managed 49 banking locations situated across Washington and Oregon. Established in 1927 and headquartered in Olympia, Washington, the company adopted its current name in 1998, having previously operated as Heritage Financial Corporation, M.H.C.

Sector: Financial Services · Industry: Banks - Regional

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 13, 2026

Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Prohibited industry: Banks - Regional

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

GLDA+

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SLVA+

iShares Silver Trust

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+0.47%

PSLVA+

Sprott Physical Silver Trust

$21.30

+6.23%

PHYSA+

Sprott Physical Gold Trust

$31.75

+0.19%

ABA+

AllianceBernstein Holding L.P.

$36.03

-1.13%

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Wells Fargo & Company

Free · No credit card required

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Frequently Asked Questions

Is Heritage Financial Corporation (HFWA) halal to invest in?

Heritage Financial Corporation (HFWA) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Heritage Financial Corporation get a F compliance rating?

Heritage Financial Corporation (HFWA) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 4.2% (limit 30%); interest-bearing deposits of 66.0% (limit 30%); prohibited income of 93.53% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Heritage Financial Corporation's Shariah verdict?

Heritage Financial Corporation's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Heritage Financial Corporation re-screened for Shariah compliance?

Heritage Financial Corporation (HFWA) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 13, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.