Is Heritage Financial (HFWA) stock halal?
Screened against AAOIFI Shari’ah Standard 21
No. Heritage Financial (HFWA) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6036 (Savings Institutions, Not Federally Chartered)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 21 September 2026.
Heritage Financial is not compliant under Halal / Islamic guidelines
AAOIFI Shari’ah Standard 21 Financial Audit
Figures from the latest annual report (the SEC filing or, for European companies, the ESEF annual report, where one exists, checked against Yahoo Finance) and a 36-month average market value.
| Test | Standard Limit | Actual Figure | Status |
|---|---|---|---|
| Main business | — | — | Fail |
| Interest-bearing debt | 30% | 4.41% | Pass |
| Cash and interest-bearing investments | 30% | 213.46% | Review |
| Prohibited income | 5% | — | Review |
| Not just cash and debts | 90% | 29.69% | Pass |
Key Findings & Observations
- Its main business is conventional banking, lending or insurance (SEC industry code 6036 (Savings Institutions, Not Federally Chartered)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1).Source: Business check
- The cash and interest-bearing investments test couldn’t be settled: The figures give 24.3% and 213.5%, on either side of the limit. Includes long-term investments that may be shares in other companies.Source: AAOIFI Shari'ah Standard 21
- The prohibited income test couldn’t be settled: Yahoo reports interest income of $314.2M, more than the company’s cash, investments and receivables could earn at 10% ($206.8M), so that figure was set aside. So the income test can’t be settled.Source: AAOIFI Shari'ah Standard 21
- Bank offers interest‑bearing deposits and loans, which are considered riba.Source: News Analyzer
- Insider sold shares worth $399,091, indicating potential governance issues.Source: News Analyzer
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Frequently Asked Questions about Heritage Financial Corporation (HFWA)
Is Heritage Financial (HFWA) stock halal?▾
No. Heritage Financial (HFWA) does not pass the AAOIFI Shari’ah Standard 21 screen. Its main business is conventional banking, lending or insurance (SEC industry code 6036 (Savings Institutions, Not Federally Chartered)), which AAOIFI Shari’ah Standard 21 excludes (3/4/1). Last checked 21 September 2026.
What is Heritage Financial's debt ratio under Islamic finance standards?▾
Under AAOIFI Shari’ah Standard 21, interest-bearing debt must stay under 30% of a company's 36-month average market value. Heritage Financial's ratio is about 4.4%.
How much dividend purification is required for Heritage Financial (HFWA) stock?▾
Heritage Financial does not pass the screen, so purification does not apply: the standard does not permit holding it.
Does Heritage Financial operate in prohibited business activities?▾
AAOIFI Shari’ah Standard 21 excludes companies whose main business is prohibited, such as alcohol, pork, gambling, conventional interest-based finance and adult entertainment. Heritage Financial's main business is checked against these. For companies that file with the US SEC, revenue by division is also read from the filing, so a division in a prohibited business is counted. Where the check cannot be settled, the result is shown as Needs Review rather than guessed.
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