Heritage Financial Corporation (Parent Company Only)

12 Months Ended

Dec. 31, 2024

Following are the condensed financial statements of the Parent Company, excluding the Bank.

HERITAGE FINANCIAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Financial Condition


	December 31, 2024		December 31, 2023
	(Dollars in thousands)
ASSETS
Cash and cash equivalents	$	4,732	$	15,752
Investment in subsidiary bank	877,952		856,460
Other assets	3,812		3,455
Total assets	$	886,496	$	875,667

LIABILITIES AND STOCKHOLDERS’ EQUITY
Junior subordinated debentures	$	22,058	$	21,765
Other liabilities	911		641
Total stockholders’ equity	863,527		853,261
Total liabilities and stockholders’ equity	$	886,496	$	875,667

HERITAGE FINANCIAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Income


	Year Ended December 31,
	2024		2023		2022
	(Dollars in thousands)
INTEREST INCOME:
Interest on interest earning deposits	$	13	$	26	$	15

INTEREST EXPENSE:
Junior subordinated debentures	2,139		2,074		1,156

Net interest expense	(2,126)		(2,048)		(1,141)
NONINTEREST INCOME:
Dividends from subsidiary bank	46,000		43,500		44,000
Equity in undistributed income of subsidiary bank	4,260		24,963		43,507
Other income	51		192		33
Total noninterest income	50,311		68,655		87,540
NONINTEREST EXPENSE:
Professional services	524		455		476
Other expense	6,393		6,282		5,631
Total noninterest expense	6,917		6,737		6,107
Income before income taxes	41,268		59,870		80,292
Income tax benefit	(1,990)		(1,885)		(1,583)
Net income	$	43,258	$	61,755	$	81,875

HERITAGE FINANCIAL CORPORATION

(PARENT COMPANY ONLY)

Condensed Statements of Cash Flows


	Year Ended December 31,
	2024		2023		2022
	(Dollars in thousands)
Cash flows from operating activities:
Net income	$	43,258	$	61,755	$	81,875
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed income of subsidiary bank	(4,260)		(24,963)		(43,507)

Stock-based compensation expense	4,344		4,325		3,795
Net change in other assets and other liabilities	(168)		(497)		(63)
Net cash provided by operating activities	43,174		40,620		42,100




Cash flows from financing activities:
Common stock cash dividends paid	(31,776)		(30,820)		(29,491)


Repurchase of common stock	(22,418)		(6,974)		(3,196)
Net cash used in financing activities	(54,194)		(37,794)		(32,687)
Net (decrease) increase in cash and cash equivalents	(11,020)		2,826		9,413
Cash and cash equivalents at the beginning of year	15,752		12,926		3,513
Cash and cash equivalents at the end of year	$	4,732	$	15,752	$	12,926