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Heritage Financial Corporation (Parent Company Only)
 12 Months Ended
Dec. 31, 2020
Condensed Financial Information Disclosure [Abstract]  
Heritage Financial Corporation (Parent Company Only) Heritage Financial Corporation (Parent Company Only)
Following are the condensed financial statements of the Parent Company.

HERITAGE FINANCIAL CORPORATION
(PARENT COMPANY ONLY)
Condensed Statements of Financial Condition 
 December 31, 2020December 31, 2019
 (In thousands)
ASSETS
Cash and cash equivalents$9,736 $21,481 
Investment in subsidiary bank828,426 806,717 
Other assets4,469 2,281 
Total assets$842,631 $830,479 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Junior subordinated debentures$20,887 $20,595 
Other liabilities1,305 573 
Total stockholders’ equity820,439 809,311 
Total liabilities and stockholders’ equity$842,631 $830,479 

HERITAGE FINANCIAL CORPORATION
(PARENT COMPANY ONLY)
Condensed Statements of Income 
 Year Ended December 31,
 202020192018
 (In thousands)
INTEREST INCOME:
Interest on interest earning deposits$16 $57 $7 
Total interest income16 57 7 
INTEREST EXPENSE:
Junior subordinated debentures890 1,339 1,263 
Total interest expense890 1,339 1,263 
Net interest expense(874)(1,282)(1,256)
NONINTEREST INCOME:
Dividends from subsidiary bank39,000 47,000 30,000 
Equity in undistributed income of subsidiary bank12,685 25,186 29,258 
Other income5 39 22 
Total noninterest income51,690 72,225 59,280 
NONINTEREST EXPENSE:
Professional services495 517 3,063 
Other expense5,172 4,395 3,833 
Total noninterest expense5,667 4,912 6,896 
Income before income taxes45,149 66,031 51,128 
Income tax benefit(1,421)(1,526)(1,929)
Net income$46,570 $67,557 $53,057 
HERITAGE FINANCIAL CORPORATION
(PARENT COMPANY ONLY)
Condensed Statements of Cash Flows 
 Year Ended December 31,
 202020192018
 (In thousands)
Cash flows from operating activities:
Net income$46,570 $67,557 $53,057 
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiary bank(12,685)(25,186)(29,258)
Stock-based compensation expense3,559 3,231 2,744 
Net change in other assets and other liabilities(1,333)763 1,735 
Net cash provided by operating activities36,111 46,365 28,278 
Cash flows from investing activities:
Net cash received from acquisitions— — 1,782 
Net cash provided by investing activities— — 1,782 
Cash flows from financing activities:
Common stock cash dividends paid(28,859)(30,908)(25,791)
Proceeds from exercise of stock options122 58 133 
Repurchase of common stock(19,119)(8,636)(1,704)
Net cash used in financing activities(47,856)(39,486)(27,362)
Net (decrease) increase in cash and cash equivalents(11,745)6,879 2,698 
Cash and cash equivalents at the beginning of year21,481 14,602 11,904 
Cash and cash equivalents at the end of year$9,736 $21,481 $14,602 
Supplemental non-cash disclosures of cash flow information:
Common stock issued for business combinations$— $— $230,043 
Capital contribution of net assets acquired in business combinations to Bank— — 228,261