INVESTOR RELATIONS

Our company is defined by the combined heritage of our people.

Press Release

Heritage Financial Announces Second Quarter 2021 Results And Declares Regular Cash Dividend

Company Release - 7/22/2021 8:00 AM ET
- Net income was $32.7 million, or $0.90 per diluted share, for the quarter ended June 30, 2021, compared to $25.3 million, or $0.70 per diluted share, for the linked-quarter ended March 31, 2021 and a net loss of $6.1 million, or $(0.17) per diluted share, for the quarter ended June 30, 2020.
- Reversal of provision for credit losses was $14.0 million for the quarter ended June 30, 2021 compared to $7.2 million for the linked-quarter ended March 31, 2021 and a provision for credit loss of $28.6 million for the quarter ended June 30, 2020.
- The ratio of nonperforming assets to total assets decreased to 0.50% at June 30, 2021 compared to 0.75% at March 31, 2021 and 0.88% at December 31, 2020.
- Noninterest expense to average total assets, annualized, was 2.06% for the quarter ended June 30, 2021 compared to 2.22% for the linked-quarter ended March 31, 2021 and 2.36% for the quarter ended June 30, 2020.
- Capital remains strong with a Tier 1 leverage ratio of 9.1% and a total risk-based capital ratio of 15.1% at June 30, 2021.
- Declared a regular cash dividend of $0.20 per common share on July 21, 2021.
- Noninterest demand deposits represented 37.2% of total deposits at June 30, 2021 compared to 36.6% at March 31, 2021 and 35.4% at December 31, 2020.
- Heritage announces plan to close and consolidate four branches on October 29, 2021, bringing the total branch count to 49, a reduction of 21% from 62 branches at September 30, 2020.

OLYMPIA, Wash., July 22, 2021 /PRNewswire/ -- Heritage Financial Corporation (NASDAQ GS: HFWA) (the "Company" or "Heritage"), the parent company of Heritage Bank ("Bank"), today reported that the Company had net income of $32.7 million for the quarter ended June 30, 2021 compared to $25.3 million for the linked-quarter ended March 31, 2021 and a net loss of $6.1 million for the quarter ended June 30, 2020. Diluted earnings per share for the quarter ended June 30, 2021 were $0.90 compared to $0.70 for the linked-quarter ended March 31, 2021 and a loss per share of $0.17 for the quarter ended June 30, 2020.

Jeffrey J. Deuel, President and Chief Executive Officer of Heritage, commented, "We are appreciative the Governors of Washington and Oregon, where our branches are located, allowed us to open up the region at the end of June. Most of our remote employees will return to the office over the summer and substantially all of our employees will have settled into their go-forward working environment by Labor Day.

We are also very pleased with our financial performance this quarter. We continue to effectively manage risk while reducing the expense base and deploying digital solutions to create efficiencies and enhance the customer experience.

Further, we are gratified with the success of our ongoing efforts to have a positive impact on housing in our local communities. Recently, we were selected by Mercy Housing Northwest to provide $14 million of construction financing and a $16 million equity investment in a new affordable housing development. The project located in Bellingham, Washington consists of 77 units of family housing as well as an Early Learning Center and will be known as Barkley Family Housing."

Financial Highlights

The following table provides financial highlights at the dates and for the periods indicated:


As of Period End or for the Three Months Ended


June 30,
2021


March 31,
2021


June 30,
2020


(Dollars in thousands, except per share amounts)

Net income (loss)

$

32,702



$

25,344



$

(6,139)


Pre-tax, pre-provision income (1)

$

26,166



$

23,247



$

21,488


Diluted earnings per share

$

0.90



$

0.70



$

(0.17)


Return on average assets (2)

1.85

%


1.51

%


(0.39)


Pre-tax, pre-provision return on average assets (1)(2)

1.48

%


1.39

%


1.37


Return on average common equity (2)

15.69

%


12.43

%


(3.06)


Return on average tangible common equity (1)(2)

22.94

%


18.37

%


(3.96)


Net interest margin (2)

3.44

%


3.51

%


3.64


Cost of total deposits (2)

0.10

%


0.12

%


0.26


Efficiency ratio

58.18

%


61.57

%


63.31


Noninterest expense to average total assets (2)

2.06

%


2.22

%


2.36


Total assets

$

7,105,672



$

7,028,392



$

6,562,359


Loans receivable, net

$

4,155,968



$

4,531,644



$

4,594,832


Total deposits

$

6,061,706



$

6,019,698



$

5,567,733


Loan to deposit ratio (3)

69.4

%


76.3

%


83.8


Book value per share

$

23.77



$

22.99



$

22.10


Tangible book value per share (1)

$

16.76



$

15.95



$

14.98



(1) See Non-GAAP Financial Measures section herein.

(2) Annualized.

(3) Loans receivable divided by deposits.

SBA PPP Loans

The Company has supported its community and customers during the COVID-19 pandemic through its participation in the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"). The Company has identified its PPP loans separately in two tranches based on the date of origination with the first tranche comprised of the SBA PPP loans originated in accordance with the Coronavirus Aid, Relief, and Economic Security Act enacted on March 27, 2020 ("CARES Act"), as amended ("PPP1"), and the second tranche comprised of PPP loans originated under the SBA's PPP in accordance with the Consolidated Appropriations Act of 2021 ("CA Act") enacted on December 27, 2020, as amended ("PPP2"). PPP1 and PPP2 ended on August 8, 2020 and May 31, 2021, respectively.

The following are key statistics of the Company's PPP loan activity for both tranches since inception:


As of June 30, 2021


PPP1


PPP2


Total PPP


(Dollars in thousands)

Total number of funded loans

4,642



2,542



7,184


Total amount funded

$

897,353



$

380,014



$

1,277,367


Average funded loan size

$

193



$

149



$

178


Total net fees deferred at funding

$

28,805



$

16,041



$

44,846


The following table summarizes the activity for both tranches of the SBA's PPP as of and for the period indicated:


As of or for the Three Months Ended


June 30, 2021


PPP1


PPP2


Total PPP


(In thousands)

Net deferred fees recognized during the period

$

6,353



$

1,674



$

8,027


Net deferred fees unrecognized as of period end

2,555



13,810



16,365


Principal payments received during the period, including forgiveness payments from the SBA

357,257



18,392



375,649


Amortized cost as of period end

196,437



347,813



544,250


Balance Sheet

Investment securities available for sale increased $156.0 million, or 17.5%, to $1.05 billion at June 30, 2021 from $893.6 million at March 31, 2021 primarily as a result of purchases to deploy excess cash and cash equivalents into higher yielding assets.

Loans receivable decreased compared to March 31, 2021 due primarily to a decrease in SBA PPP loans as a result of  forgiveness payments received from the SBA. The following table summarizes the Company's loans receivable, net at the dates indicated:


June 30, 2021


March 31, 2021


Change


Balance


% of Total


Balance


% of Total


Amount


%


(Dollars in thousands)

Commercial business:












Commercial and industrial

$

651,915



15.5

%


$

693,539



15.1

%


$

(41,624)



(6.0)

%

SBA PPP

544,250



12.9



886,761



19.3



(342,511)



(38.6)


Owner-occupied CRE

865,662



20.6



881,168



19.2



(15,506)



(1.8)


Non-owner occupied CRE

1,425,238



33.8



1,427,953



31.1



(2,715)



(0.2)


Total commercial business

3,487,065



82.8



3,889,421



84.7



(402,356)



(10.3)


Residential real estate

120,148



2.9



114,856



2.5



5,292



4.6


Real estate construction and land development:












Residential

88,601



2.1



79,878



1.7



8,723



10.9


Commercial and multifamily

239,979



5.7



217,815



4.7



22,164



10.2


Total real estate construction and land development

328,580



7.8



297,693



6.4



30,887



10.4


Consumer

271,737



6.5



293,899



6.4



(22,162)



(7.5)


Loans receivable

4,207,530



100.0

%


4,595,869



100.0

%


(388,339)



(8.4)


Allowance for credit losses on loans

(51,562)





(64,225)





12,663



19.7


Loans receivable, net

$

4,155,968





$

4,531,644





$

(375,676)



(8.3)

%

Total deposits increased slightly from March 31, 2021 with growth concentrated in noninterest demand deposits. The following table summarizes the Company's total deposits at the dates indicated:


June 30, 2021


March 31, 2021


Change


Balance


% of Total


Balance


% of Total


Amount


%


(Dollars in thousands)




Noninterest demand deposits

$

2,256,341



37.2

%


$

2,205,562



36.6

%


$

50,779



2.3

%

Interest bearing demand deposits

1,807,033



29.8



1,796,949



29.9



10,084



0.6


Money market accounts

1,030,164



17.0



1,046,202



17.4



(16,038)



(1.5)


Savings accounts

593,269



9.8



584,582



9.7



8,687



1.5


Total non-maturity deposits

5,686,807



93.8



5,633,295



93.6



53,512



0.9


Certificates of deposit

374,899



6.2



386,403



6.4



(11,504)



(3.0)


Total deposits

$

6,061,706



100.0

%


$

6,019,698



100.0

%


$

42,008



0.7

%

The Company and Heritage Bank continue to maintain capital levels in excess of the applicable regulatory requirements for them both to be categorized as "well-capitalized". The following table summarizes capital ratios for the Company at the dates indicated:



June 30,
2021


March 31,
2021


Change

Capital Ratios:






Stockholders' equity to total assets

12.0

%


11.8

%


0.2

%

Tangible common equity to tangible assets (1)

8.8



8.5



0.3


Common equity Tier 1 capital to risk-weighted assets (2)

13.6



12.8



0.8


Tier 1 leverage capital to average quarterly assets (2)

9.1



9.1




Tier 1 capital to risk-weighted assets (2)

14.0



13.2



0.8


Total capital to risk-weighted assets (2)

15.1



14.5



0.6



(1) See Non-GAAP Financial Measures section herein.

(2) Current quarter ratios are estimates pending completion and filing of the Company's regulatory reports.

Allowance for Credit Losses and Provision for Credit Losses

The allowance for credit losses ("ACL") on loans decreased $12.7 million to $51.6 million at June 30, 2021 due primarily to a reversal of provision for credit losses on loans of $12.8 million during the quarter following continued improvements in the economic forecast as compared to the forecast for the linked-quarter ended March 31, 2021. The reversal of provision for credit losses on unfunded commitments of $1.2 million was also due primarily to the improvements in the economic forecast.

The following table provides detail on the changes in the ACL on loans and the ACL on unfunded commitments ("Unfunded") and the related (reversal of) provision for credit losses for the periods indicated:


As of Period End or for the Three Months Ended


As of Period End or for the Three Months Ended


As of Period End or for the Three Months Ended


June 30, 2021


March 31, 2021


June 30, 2020


ACL on Loans


ACL on Unfunded


Total


ACL on Loans


ACL on Unfunded


Total


ACL on Loans


ACL on Unfunded


Total


(Dollars in thousands)

Balance, beginning of 
     period

$

64,225



$

3,617



$

67,842



$

70,185



$

4,681



$

74,866



$

47,540



$

1,990



$

49,530


(Reversal of) provision 
     for credit losses

(12,821)



(1,166)



(13,987)



(6,135)



(1,064)



(7,199)



25,941



2,622



28,563


Net recoveries (charge-
     offs)

158





158



175





175



(1,980)





(1,980)


Balance, end of period

$

51,562



$

2,451



$

54,013



$

64,225



$

3,617



$

67,842



$

71,501



$

4,612



$

76,113


Credit Quality

Nonperforming assets decreased to 0.50% of total assets at June 30, 2021 compared to 0.75% of total assets at March 31, 2021 due primarily to a decrease in nonaccrual loans of $17.5 million during the quarter ended June 30, 2021. Nonperforming assets at both June 30, 2021 and March 31, 2021 consisted only of nonaccrual loans. Changes in nonaccrual loans during the periods indicated were as follows:


Three Months Ended


June 30,
2021


March 31,
2021


June 30,
2020


(In thousands)

Balance, beginning of period

$

52,868



$

58,092



$

34,163


Additions to nonaccrual loan classification

401



468



993


Net principal payments and transfers to accruing status

(2,093)



(3,119)



(891)


Payoffs

(15,835)



(2,571)



(608)


Charge-offs



(2)



(29)


Balance, end of period

$

35,341



$

52,868



$

33,628


The decrease in nonaccrual loans was due primarily to payoffs, including a payoff of an agricultural business relationship of $10.7 million which was initially classified as nonaccrual during the three months ended September 30, 2019. The Company also recovered $1.5 million of interest and fees on loans related to this payoff.

Net Interest Income and Net Interest Margin

Net interest income increased $2.0 million, or 3.9%, for the quarter ended June 30, 2021 compared to the linked-quarter ended March 31, 2021 due primarily to an increase in the loan yield. Loan yield benefited from the impact of SBA PPP loan forgiveness, which prompted the recognition of the remaining net deferred fees outstanding for the underlying forgiven SBA PPP loans, and recoveries of $2.0 million of interest and fees on loans classified as nonaccrual, including $1.5 million related to the full payoff of the agricultural business relationship discussed above.

Net interest income increased $4.0 million, or 7.9%, compared to the quarter ended June 30, 2020 due primarily to the increases in loan yield discussed above and secondarily due to the Bank decreasing deposit rates following decreases in short-term market interest rates.

Net interest margin decreased to 3.44% for the quarter ended June 30, 2021 as compared to 3.51% for the linked-quarter ended March 31, 2021 due primarily to a change in the mix of total interest earning assets, including an increase in the balance of average interest earning deposits yielding 11 basis points, and the impact to yields in a persistent, low-rate environment, offset partially by the benefit to loan yield from SBA PPP loan forgiveness and recoveries of interest and fees on loans classified as nonaccrual discussed above.

Net interest margin decreased from 3.64% for the same period in 2020 due primarily to the change in the mix of total interest earning assets, including a significant increase in average interest earning deposits to 15.2% of total earning assets at June 30, 2021 compared to 3.3% at June 30, 2020, and decreases in yields on interest earning assets over the past year following decreases in short-term market rates during the quarter ended March 31, 2020. The decrease in net interest margin was offset partially by a decrease in the cost of total interest bearing deposits reflecting the decreases in short-term market rates.

The following table presents the loan yield and the impacts of SBA PPP loans and the incremental accretion on purchased loans on this financial measure for the periods presented below:


Three Months Ended


June 30,
2021


March 31,
2021


June 30,
2020

Non-GAAP Measure: (1)

Loan yield (GAAP)

4.62

%


4.47

%


4.38

%

Exclude impact from SBA PPP loans

(0.12)



0.01



0.24


Exclude impact from incremental accretion on purchased loans(2)

(0.05)



(0.12)



(0.06)


Loan yield, excluding SBA PPP loans and incremental accretion on purchased loans (non-GAAP)

4.45

%


4.36

%


4.56

%





(1) 

See Non-GAAP Financial Measures section.


(2)

Represents the amount of interest income recorded on purchased loans in excess of the contractual stated interest rate in the individual loan notes due to incremental accretion of purchased discount or premium. Purchased discount or premium is the difference between the contractual loan balance and the fair value of acquired loans at the acquisition date, or as modified by the adoption of Accounting Standards Update ("ASU") 2016-13. The purchased discount is accreted into income over the remaining life of the loan. The impact of incremental accretion on loan yield will change during any period based on the volume of prepayments, but it is expected to decrease over time as the balance of the purchased loans decreases.

The impact to loan yield from recoveries of interest and fees on loans classified as nonaccrual was 18 and five basis points during the three months ended June 30, 2021 and March 31, 2021, respectively.

Noninterest Income

The following table presents the key components of noninterest income and the change for the periods indicated:


Three Months Ended


Linked-quarter Change


Prior Year Quarter Change


June 30,
2021


March 31,
2021


June 30,
2020


Change


% Change


Change


% Change


(Dollar amounts in thousands)









Service charges and other fees

$

4,422



$

4,000



$

3,600



$

422



10.6

%


$

822



22.8

%

Gain on sale of investment securities, net



29



409



(29)



(100.0)



(409)



(100.0)


Gain on sale of loans, net

1,003



1,370



1,135



(367)



(26.8)



(132)



(11.6)


Interest rate swap fees

209



152



769



57



37.5



(560)



(72.8)


Bank owned life insurance income

717



656



645



61



9.3



72



11.2


Other income

1,946



2,044



1,690



(98)



(4.8)



256



15.1


Total noninterest income

$

8,297



$

8,251



$

8,248



$

46



0.6

%


$

49



0.6

%

Noninterest income increased from the linked-quarter ended March 31, 2021 due primarily to an increase in service charges and other fees due mostly to higher interchange income and increased deposit fee income, offset partially by a decrease in gain on sale of loans due primarily to lower sales volume.

Noninterest income increased from the same period in 2020 due primarily to an increase in service charges and other fees also due mostly to higher interchange income and increased deposit fee income, offset partially by fewer executions of interest rate swap contracts and a reduced gain on sale of investment securities due to fewer sales.

Noninterest Expense

The following table presents the key components of noninterest expense and the change for the periods indicated:


Three Months Ended


Linked-quarter Change


Prior Year Quarter Change


June 30,
2021


March 31,
2021


June 30,
2020


Change


% Change


Change


% Change


(Dollar amounts in thousands)









Compensation and employee benefits

$

22,088



$

22,461



$

21,927



$

(373)



(1.7)

%


$

161



0.7

%

Occupancy and equipment

4,091



4,454



4,335



(363)



(8.1)



(244)



(5.6)


Data processing

3,998



3,812



3,517



186



4.9



481



13.7


Marketing

892



669



696



223



33.3



196



28.2


Professional services

1,102



1,331



2,169



(229)



(17.2)



(1,067)



(49.2)


State/municipal business and use tax

991



972



905



19



2.0



86



9.5


Federal deposit insurance premium

339



589



238



(250)



(42.4)



101



42.4


Other real estate owned, net





(170)







170



100.0


Amortization of intangible assets

797



797



903







(106)



(11.7)


Other expense

2,098



2,157



2,553



(59)



(2.7)



(455)



(17.8)


Total noninterest expense

$

36,396



$

37,242



$

37,073



$

(846)



(2.3)

%


$

(677)



(1.8)

%

Noninterest expense decreased from the linked-quarter ended March 31, 2021 due to a decrease in occupancy and equipment expense primarily as a result of branch closings during the quarter ended March 31, 2021; lower federal deposit insurance premium expense as a result of a decrease in the quarterly assessment rate; and a decrease in professional services expense which was elevated during the linked-quarter ended March 31, 2021 due to our participation in SBA PPP2.

Noninterest expense decreased compared to the quarter ended June 30, 2020 due primarily to a decrease in professional services expense due to costs incurred during the quarter ended June 30, 2020 related to the launch of the new mobile and online commercial banking platform, "Heritage Direct". The decrease in noninterest expense was offset partially by an increase in data processing as the Bank continues to invest in technology.

Income Tax Expense

The following table presents the income tax expense and related metrics and the change for the periods indicated:


Three Months Ended


Linked-quarter Change


Prior Year Quarter Change


June 30,
2021


March 31,
2021


June 30,
2020


Change


% Change


Change


% Change


(Dollar amounts in thousands)









Income (loss) before income taxes

$

40,153



$

30,446



$

(7,075)



$

9,707



31.9

%


$

47,228



667.5

%

Income tax expense (benefit)

$

7,451



$

5,102



$

(936)



$

2,349



46.0

%


$

8,387



896.0

%

Effective income tax rate

18.6

%


16.8

%


(13.2)

%


1.8

%


10.7

%


31.8

%


240.9

%

Income tax expense and the effective income tax rate both increased for the quarter ended June 30, 2021 compared to the linked-quarter ended March 31, 2021 due primarily to an increase in estimated annual pre-tax income for the year ended December 31, 2021, which decreased the impact of favorable permanent tax items such as tax-exempt investments, investments in bank owned life insurance, and low-income housing tax credits.

Income tax expense (benefit) and the effective income tax rate both increased from the quarter ended June 30, 2020 due primarily to income before income taxes recognized during the quarter ended June 30, 2021 compared to a loss before income taxes recognized for the quarter ended June 30, 2020.

Dividend

On July 21, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable on August 18, 2021 to shareholders of record as of the close of business on August 4, 2021.

Earnings Conference Call

The Company will hold a telephone conference call to discuss this earnings release on July 22, 2021 at 11:00 a.m. Pacific time. To access the call, please dial (844) 291-6362 -- access code 1137604 a few minutes prior to 11:00 a.m. Pacific time. The call will be available for replay through August 5, 2021 by dialing (866) 207-1041 -- access code 4937664.

About Heritage Financial

Heritage Financial Corporation is an Olympia-based bank holding company with Heritage Bank, a full-service commercial bank, as its sole wholly-owned banking subsidiary. Heritage Bank has a branching network of 53 banking offices in Washington and Oregon. Heritage Bank does business under the Whidbey Island Bank name on Whidbey Island. Heritage's stock is traded on the NASDAQ Global Select Market under the symbol "HFWA". More information about Heritage Financial Corporation can be found on its website at www.hf-wa.com and more information about Heritage Bank can be found on its website at www.heritagebanknw.com.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. The COVID-19 pandemic is adversely affecting us, our customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on our business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions, including increases in unemployment rates, or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding, lead to a tightening of credit, and further increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, could affect us in substantial and unpredictable ways. Other factors that could cause or contribute to such differences include, but are not limited to: changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in Heritage's latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission-which are available on our website at www.heritagebanknw.com and on the SEC's website at www.sec.gov. The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, any of the forward-looking statements that we make in this press release or the documents we file with or furnish to the SEC are based only on information then actually known to the Company and upon management's beliefs and assumptions at the time they are made which may turn out to be wrong because of inaccurate assumptions we might make, because of the factors described above or because of other factors that we cannot foresee. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2021 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company's operating and stock price performance.

 

HERITAGE FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(Dollar amounts in thousands, except shares)



June 30,
2021


March 31,
2021


December 31,
2020

Assets






Cash on hand and in banks

$

94,179



$

93,306



$

91,918


Interest earning deposits

1,170,754



841,010



651,404


Cash and cash equivalents

1,264,933



934,316



743,322


Investment securities available for sale, at fair value, net (amortized cost of $1,029,001, $876,357 and $770,195, respectively)

1,049,524



893,558



802,163


Loans held for sale

2,739



6,801



4,932


Loans receivable

4,207,530



4,595,869



4,468,647


Allowance for credit losses on loans

(51,562)



(64,225)



(70,185)


Loans receivable, net

4,155,968



4,531,644



4,398,462


Other real estate owned






Premises and equipment, net

82,835



84,533



85,452


Federal Home Loan Bank ("FHLB") stock, at cost

7,933



7,933



6,661


Bank owned life insurance

108,988



108,341



107,580


Accrued interest receivable

17,113



19,447



19,418


Prepaid expenses and other assets

163,206



188,589



193,301


Other intangible assets, net

11,494



12,291



13,088


Goodwill

240,939



240,939



240,939


Total assets

$

7,105,672



$

7,028,392



$

6,615,318








Liabilities and Stockholders' Equity






Deposits

$

6,061,706



$

6,019,698



$

5,597,990


Junior subordinated debentures

21,034



20,960



20,887


Securities sold under agreement to repurchase

46,429



36,503



35,683


Accrued expenses and other liabilities

120,519



124,080



140,319


Total liabilities

6,249,688



6,201,241



5,794,879








Common stock

572,060



571,204



571,021


Retained earnings

267,863



242,486



224,400


Accumulated other comprehensive income, net

16,061



13,461



25,018


Total stockholders' equity

855,984



827,151



820,439


Total liabilities and stockholders' equity

$

7,105,672



$

7,028,392



$

6,615,318








Shares outstanding

36,006,560



35,981,317



35,912,243


 

HERITAGE FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollar amounts in thousands, except per share amounts)



Three Months Ended


Six Months Ended


June 30,
2021


March 31,
2021


June 30,
2020


June 30,
2021


June 30,
2020

Interest income










Interest and fees on loans

$

50,750



$

49,524



$

48,404



$

100,274



$

94,681


Taxable interest on investment securities

4,050



3,534



4,570



7,584



10,203


Nontaxable interest on investment securities

947



958



977



1,905



1,733


Interest on interest earning deposits

263



175



43



438



463


Total interest income

56,010



54,191



53,994



110,201



107,080


Interest expense










Deposits

1,524



1,728



3,417



3,252



7,633


Junior subordinated debentures

186



187



218



373



503


Other borrowings

35



38



46



73



80


Total interest expense

1,745



1,953



3,681



3,698



8,216


Net interest income

54,265



52,238



50,313



106,503



98,864


(Reversal of) provision for credit losses

(13,987)



(7,199)



28,563



(21,186)



36,509


Net interest income after (reversal of) provision for credit losses

68,252



59,437



21,750



127,689



62,355


Noninterest income










Service charges and other fees

4,422



4,000



3,600



8,422



7,976


Gain on sale of investment securities, net



29



409



29



1,423


Gain on sale of loans, net

1,003



1,370



1,135



2,373



1,682


Interest rate swap fees

209



152



769



361



1,065


Bank owned life insurance income

717



656



645



1,373



1,530


Other income

1,946



2,044



1,690



3,990



4,058


Total noninterest income

8,297



8,251



8,248



16,548



17,734


Noninterest expense










Compensation and employee benefits

22,088



22,461



21,927



44,549



44,433


Occupancy and equipment

4,091



4,454



4,335



8,545



8,899


Data processing

3,998



3,812



3,517



7,810



7,044


Marketing

892



669



696



1,561



1,562


Professional services

1,102



1,331



2,169



2,433



3,546


State/municipal business and use taxes

991



972



905



1,963



1,662


Federal deposit insurance premium

339



589



238



928



238


Other real estate owned, net





(170)





(145)


Amortization of intangible assets

797



797



903



1,594



1,806


Other expense

2,098



2,157



2,553



4,255



5,288


Total noninterest expense

36,396



37,242



37,073



73,638



74,333


Income (loss) before income taxes

40,153



30,446



(7,075)



70,599



5,756


Income tax expense (benefit)

7,451



5,102



(936)



12,553



(296)


Net income (loss)

$

32,702



$

25,344



$

(6,139)



$

58,046



$

6,052












Basic earnings (losses) per share

$

0.91



$

0.70



$

(0.17)



$

1.61



$

0.17


Diluted earnings (losses) per share

$

0.90



$

0.70



$

(0.17)



$

1.60



$

0.17


Dividends declared per share

$

0.20



$

0.20



$

0.20



$

0.40



$

0.40


 

HERITAGE FINANCIAL CORPORATION
FINANCIAL STATISTICS (Unaudited)
(Dollar amounts in thousands, except per share amounts)


Nonperforming Assets and Credit Quality Metrics:



Three Months Ended


Six Months Ended


June 30,
2021


March 31,
2021


June 30,
2020


June 30,
2021


June 30,
2020

Allowance for Credit Losses on Loans:




Balance, beginning of period

$

64,225



$

70,185



$

47,540



$

70,185



$

36,171


Impact of CECL adoption









1,822


Adjusted balance, beginning of period

64,225



70,185



47,540



70,185



37,993


(Reversal of) provision for credit losses on loans

(12,821)



(6,135)



25,941



(18,956)



35,905


Charge-offs:










Commercial business

(13)



(1)



(1,824)



(14)



(3,046)


Real estate construction and land development



(1)





(1)




Consumer

(120)



(185)



(431)



(305)



(806)


Total charge-offs

(133)



(187)



(2,255)



(320)



(3,852)


Recoveries:










Commercial business

143



207



71



350



1,140


Residential real estate









3


Real estate construction and land development

4



16



7



20



21


Consumer

144



139



197



283



291


Total recoveries

291



362



275



653



1,455


Net recoveries (charge-offs)

158



175



(1,980)



333



(2,397)


Balance, end of period

$

51,562



$

64,225



$

71,501



$

51,562



$

71,501


Net recoveries (charge-offs) on loans to average loans, annualized

0.01

%


0.02

%


(0.18)

%


0.02

%


(0.12)

%



June 30,
2021


March 31,
2021


December 31,
2020

Nonperforming Assets:






Nonaccrual loans:






Commercial business

$

34,209



$

51,755



$

56,786


Residential real estate

60



66



184


Real estate construction and land development

1,014



1,021



1,022


Consumer

58



26



100


Total nonaccrual loans

35,341



52,868



58,092


Other real estate owned






Nonperforming assets

$

35,341



$

52,868



$

58,092








Restructured performing loans

$

55,391



$

55,691



$

52,872


Accruing loans past due 90 days or more

286






Potential problem loans (1)

148,823



163,813



182,342


ACL on loans to:






Loans receivable

1.23

%


1.40

%


1.57

%

Loans receivable, excluding SBA PPP loans (2)

1.41

%


1.73

%


1.87

%

Nonaccrual loans

145.90

%


121.48

%


120.82

%

Nonperforming loans to loans receivable

0.84

%


1.15

%


1.30

%

Nonperforming assets to total assets

0.50

%


0.75

%


0.88

%



(1)

Potential problem loans are loans classified as Special Mention or worse that are not classified as a troubled debt restructuring or nonaccrual loan and are not individually evaluated for credit loss, but which management is closely monitoring because the financial information of the borrower causes concern as to their ability to meet their loan repayment terms.

(2)

See Non-GAAP Financial Measures section herein.

 

Average Balances, Yields, and Rates Paid:


Three Months Ended


June 30, 2021


March 31, 2021


June 30, 2020


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)


Average

Balance


Interest

Earned/

Paid


Average
Yield/
Rate (1)

Interest Earning Assets:


















Loans receivable, net (2) (3)

$

4,402,868



$

50,750



4.62

%


$

4,490,499



$

49,524



4.47

%


$

4,442,108



$

48,404



4.38

%

Taxable securities

799,023



4,050



2.03



674,268



3,534



2.13



764,691



4,570



2.40


Nontaxable securities (3)

160,489



947



2.37



163,914



958



2.37



160,296



977



2.45


Interest earning deposits

964,791



263



0.11



713,885



175



0.10



185,399



43



0.09


Total interest earning assets

6,327,171



56,010



3.55

%


6,042,566



54,191



3.64

%


5,552,494



53,994



3.91

%

Noninterest earning assets

752,034







757,059







757,530






Total assets

$

7,079,205







$

6,799,625







6,310,024






Interest Bearing Liabilities:


















Certificates of deposit

$

381,417



$

481



0.51

%


$

393,268



$

559



0.58

%


$

513,539



$

1,810



1.42

%

Savings accounts

591,616



89



0.06



560,094



95



0.07



476,312



115



0.10


Interest bearing demand and money market accounts

2,836,717



954



0.13



2,732,134



1,074



0.16



2,440,691



1,492



0.25


Total interest bearing deposits

3,809,750



1,524



0.16



3,685,496



1,728



0.19



3,430,542



3,417



0.40


Junior subordinated debentures

20,986



186



3.55



20,913



187



3.63



20,693



218



4.24


Securities sold under agreement to repurchase

43,259



35



0.32



40,074



38



0.38



23,702



39



0.66


FHLB advances and other borrowings













4,909



7



0.57


Total interest bearing liabilities

3,873,995



1,745



0.18

%


3,746,483



1,953



0.21

%


3,479,846



3,681



0.43

%

Noninterest demand deposits

2,246,929







2,091,359







1,883,227






Other noninterest bearing liabilities

122,520







134,762







139,412






Stockholders' equity

835,761







827,021







807,539






Total liabilities and stockholders' equity

$

7,079,205







$

6,799,625







$

6,310,024






Net interest income



$

54,265







$

52,238







$

50,313




Net interest spread





3.37

%






3.43

%






3.48

%

Net interest margin





3.44

%






3.51

%






3.64

%

Average interest earning assets to average interest bearing liabilities





163.32

%






161.29

%






159.56

%



(1)

Annualized.

(2)

The average loan balances presented in the table are net of the ACL on loans and include loans held for sale. Nonaccrual loans have been included in the table as loans carrying a zero yield.

(3)

Yields on tax-exempt securities and loans have not been stated on a tax-equivalent basis.

 



Six Months Ended


June 30, 2021


June 30, 2020


Average

Balance


Interest

Earned/

Paid


Average

Yield/

Rate (1)


Average

Balance


Interest

Earned/

Paid


Average

Yield/

Rate (1)

Interest Earning Assets:












Loans receivable, net (2) (3)

$

4,446,442



$

100,274



4.55

%


$

4,095,340



$

94,681



4.65

%

Taxable securities

736,990



7,584



2.08



790,189



10,203



2.60


Nontaxable securities (3)

162,192



1,905



2.37



141,224



1,733



2.47


Interest earning deposits

840,030



438



0.11



155,379



463



0.60


Total interest earning assets

6,185,654



110,201



3.59

%


5,182,132



107,080



4.16

%

Noninterest earning assets

754,533







752,986






Total assets

$

6,940,187







$

5,935,118






Interest Bearing Liabilities:












Certificates of deposit

$

387,310



$

1,040



0.54

%


$

520,774



$

3,822



1.48

%

Savings accounts

575,942



184



0.06



455,386



303



0.13


Interest bearing demand and money market accounts

2,784,714



2,028



0.15



2,321,305



3,508



0.30


Total interest bearing deposits

3,747,966



3,252



0.17



3,297,465



7,633



0.47


Junior subordinated debentures

20,950



373



3.59



20,657



503



4.90


Securities sold under agreement to repurchase

41,676



73



0.35



21,474



72



0.67


FHLB advances and other borrowings







2,949



8



0.55


Total interest bearing liabilities

3,810,592



3,698



0.20

%


3,342,545



8,216



0.49

%

Noninterest demand deposits

2,169,574







1,651,737






Other noninterest bearing liabilities

128,606







134,031






Stockholders' equity

831,415







806,805






Total liabilities and stockholders' equity

$

6,940,187







$

5,935,118






Net interest income



$

106,503







$

98,864




Net interest spread





3.39

%






3.67

%

Net interest margin





3.47

%






3.84

%

Average interest earning assets to average interest bearing liabilities





162.33

%






155.04

%



(1)

Annualized.

(2)

The average loan balances presented in the table are net of the ACL on loans and include loans held for sale. Nonaccrual loans have been included in the table as loans carrying a zero yield.

(3)

Yields on tax-exempt securities and loans have not been stated on a tax-equivalent basis.

 

HERITAGE FINANCIAL CORPORATION
QUARTERLY FINANCIAL STATISTICS (Unaudited)
(Dollar amounts in thousands, except per share amounts)



Three Months Ended


June 30,
2021


March 31,
2021


December 31,
2020


September 30,
2020


June 30,
2020

Earnings:










Net interest income

$

54,265



$

52,238



$

52,455



$

49,678



$

50,313


(Reversal of) provision for credit losses

(13,987)



(7,199)



(3,133)



2,730



28,563


Noninterest income

8,297



8,251



11,285



8,210



8,248


Noninterest expense

36,396



37,242



38,562



36,045



37,073


Net income (loss)

32,702



25,344



23,882



16,363



(6,139)


Pre-tax, pre-provision net income (3)

26,166



23,247



25,178



21,843



21,488


Basic earnings (losses) per share

$

0.91



$

0.70



$

0.66



$

0.46



$

(0.17)


Diluted earnings (losses) per share

$

0.90



$

0.70



$

0.66



$

0.46



$

(0.17)


Average Balances:










Loans receivable, net (1)

$

4,402,868



$

4,490,499



$

4,540,962



$

4,605,389



$

4,442,108


Investment securities

959,512



838,182



813,312



860,198



924,987


Total interest earning assets

6,327,171



6,042,566



5,913,765



5,855,240



5,552,494


Total assets

7,079,205



6,799,625



6,675,477



6,620,980



6,310,024


Total interest bearing deposits

3,809,750



3,685,496



3,634,018



3,620,503



3,430,542


Total noninterest demand deposits

2,246,929



2,091,359



2,034,425



1,998,772



1,883,227


Stockholders' equity

835,761



827,021



808,999



799,738



807,539


Financial Ratios:










Return on average assets (2)

1.85

%


1.51

%


1.42

%


1.00

%


(0.39)

%

Pre-tax, pre-provision return on average assets (2)(3)

1.48



1.39



1.50



1.31



1.37


Return on average common equity (2)

15.69



12.43



11.74



8.28



(3.06)


Return on average tangible common equity (2) (3)

22.94



18.37



17.62



12.66



(3.96)


Efficiency ratio

58.18



61.57



60.50



62.27



63.31


Noninterest expense to average total assets (2)

2.06



2.22



2.30



2.17



2.36


Net interest margin (2)

3.44



3.51



3.53



3.38



3.64


Net interest spread (2)

3.37



3.43



3.44



3.26



3.48




(1)

The average loan balances are net of the ACL on loans and include loans held for sale.

(2)

Annualized.

(3)

See Non-GAAP Financial Measures section herein.

 


As of Period End or for the Three Months Ended


June 30,
2021


March 31,
2021


December 31,
2020


September 30,
2020


June 30,
2020

Select Balance Sheet:










Total assets

$

7,105,672



$

7,028,392



$

6,615,318



$

6,685,889



$

6,562,359


Loans receivable, net

4,155,968



4,531,644



4,398,462



4,593,390



4,594,832


Investment securities

1,049,524



893,558



802,163



834,492



879,927


Deposits

6,061,706



6,019,698



5,597,990



5,689,048



5,567,733


Noninterest demand deposits

2,256,341



2,205,562



1,980,531



1,989,247



1,999,754


Stockholders' equity

855,984



827,151



820,439



803,129



793,652


Financial Measures:










Book value per share

$

23.77



$

22.99



$

22.85



$

22.36



$

22.10


Tangible book value per share (1)

16.76



15.95



15.77



15.27



14.98


Stockholders' equity to total assets

12.0

%


11.8

%


12.4

%


12.0

%


12.1

%

Tangible common equity to tangible assets (1)

8.8



8.5



8.9



8.5



8.5


Loans to deposits ratio

69.4



76.3



79.8



82.0



83.8


Regulatory Capital Ratios:










Common equity Tier 1 capital to risk-weighted assets(2)

13.6

%


12.8

%


12.3

%


11.7

%


11.4

%

Tier 1 leverage capital to average assets(2)

9.1

%


9.1

%


9.0

%


8.8

%


9.1

%

Tier 1 capital to risk-weighted assets(2)

14.0

%


13.2

%


12.8

%


12.2

%


11.8

%

Total capital to risk-weighted assets(2)

15.1

%


14.5

%


14.0

%


13.4

%


13.1

%

Credit Quality Metrics:










ACL on loans to:










Loans receivable

1.23

%


1.40

%


1.57

%


1.57

%


1.53

%

Loans receivable, excluding SBA PPP loans (1)

1.41



1.73



1.87



1.93



1.88


Nonperforming loans

145.90



121.48



120.82



139.42



212.62


Nonperforming loans to loans receivable

0.84



1.15



1.30



1.13



0.72


Nonperforming assets to total assets

0.50



0.75



0.88



0.79



0.51


Net recoveries (charge-offs) on loans to average loans receivable

0.01



0.02



(0.03)



(0.04)



(0.18)


Criticized Loans by Credit Quality Rating:










Special Mention

$

100,317



$

108,975



$

132,036



$

104,781



$

60,498


Substandard

135,374



160,461



158,515



123,570



90,552


Other Metrics:










Number of banking offices

53



53



61



62



62


Average number of full-time equivalent employees

822



840



848



857



877


Deposits per branch

$

114,372



$

113,579



$

91,770



$

91,759



$

89,802


Average assets per full-time equivalent employee

8,607



8,098



7,873



7,727



7,195




(1)

See Non-GAAP Financial Measures section herein.

(2)

Current quarter ratios are estimates pending completion and filing of the Company's regulatory reports.

Non-GAAP Financial Measures

This earnings release contains certain financial measures not presented in accordance with Generally Accepted Accounting Principles ("GAAP") in addition to financial measures presented in accordance with GAAP. The Company has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in the Company's capital, performance and asset quality reflected in the current quarter and comparable period results and to facilitate comparison of its performance with the performance of its peers. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for financial measures presented in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of the GAAP and non-GAAP financial measures are presented below.

The Company considers the tangible common equity to tangible assets ratio and tangible book value per share to be useful measurements of the adequacy of the Company's capital levels.


June 30,
2021


March 31,
2021


December 31,
2020


September 30,
2020


June 30,
2020


(Dollar amounts in thousands, except per share amounts)

Tangible common equity to tangible assets and tangible book value per share:

Total stockholders' equity (GAAP)

$

855,984



$

827,151



$

820,439



$

803,129



$

793,652


Exclude intangible assets

(252,433)



(253,230)



(254,027)



(254,886)



(255,746)


Tangible common equity (non-GAAP)

$

603,551



$

573,921



$

566,412



$

548,243



$

537,906












Total assets (GAAP)

$

7,105,672



$

7,028,392



$

6,615,318



$

6,685,889



$

6,562,359


Exclude intangible assets

(252,433)



(253,230)



(254,027)



(254,886)



(255,746)


Tangible assets (non-GAAP)

$

6,853,239



$

6,775,162



$

6,361,291



$

6,431,003



$

6,306,613












Stockholders' equity to total assets (GAAP)

12.0

%


11.8

%


12.4

%


12.0

%


12.1

%

Tangible common equity to tangible assets (non-GAAP)

8.8

%


8.5

%


8.9

%


8.5

%


8.5

%











Shares outstanding

36,006,560



35,981,317



35,912,243



35,910,300



35,908,908


Book value per share (GAAP)

$

23.77



$

22.99



$

22.85



$

22.36



$

22.10


Tangible book value per share (non-GAAP)

$

16.76



$

15.95



$

15.77



$

15.27



$

14.98


The Company considers presenting the ratio of ACL on loans to loans receivable, excluding SBA PPP loans, to be a useful measurement in evaluating the adequacy of the Company's ACL on loans as the balance of SBA PPP loans is significant to the loan portfolio, however, since SBA PPP loans are guaranteed by the SBA, the Company has not provided an ACL on loans for these loans.


June 30,
2021


March 31,
2021


December 31,
2020


September 30,
2020


June 30,
2020


(Dollar amounts in thousands)

ACL on loans to loans receivable, excluding SBA PPP loans:

Allowance for credit losses on loans

$

51,562



$

64,225



$

70,185



$

73,340



$

71,501












Loans receivable (GAAP)

$

4,207,530



$

4,595,869



$

4,468,647



$

4,666,730



$

4,666,333


Exclude SBA PPP loans

(544,250)



(886,761)



(715,121)



(867,782)



(856,490)


Loans receivable, excluding SBA PPP loans (non-GAAP)

$

3,663,280



$

3,709,108



$

3,753,526



$

3,798,948



$

3,809,843












ACL on loans to loans receivable (GAAP)

1.23

%


1.40

%


1.57

%


1.57

%


1.53

%

ACL on loans to loans receivable, excluding SBA PPP loans (non-GAAP)

1.41

%


1.73

%


1.87

%


1.93

%


1.88

%

The Company considers the return on average tangible common equity ratio to be a useful measurement of the Company's ability to generate returns for its common shareholders. By removing the impact of intangible assets and their related amortization and tax effects, the performance of the Company's ongoing business operations can be evaluated.


Three Months Ended


June 30,
2021


March 31,
2021


December 31,
2020


September 30,
2020


June 30,
2020


(Dollar amounts in thousands)

Return on average tangible common equity, annualized:

Net income (GAAP)

$

32,702



$

25,344



$

23,882



$

16,636



$

(6,139)


Add amortization of intangible assets

797



797



859



860



903


Exclude tax effect of adjustment

(167)



(167)



(180)



(181)



(190)


Tangible net income (non-GAAP)

$

33,332



$

25,974



$

24,561



$

17,315



$

(5,426)












Average stockholders' equity (GAAP)

$

835,761



$

827,021



$

808,999



$

799,738



$

807,539


Exclude average intangible assets

(252,956)



(253,747)



(254,587)



(255,453)



(256,338)


Average tangible common stockholders' equity (non-GAAP)

$

582,805



$

573,274



$

554,412



$

544,285



$

551,201












Return on average common equity, annualized (GAAP)

15.69

%


12.43

%


11.74

%


8.28

%


(3.06)

%

Return on average tangible common equity, annualized (non-GAAP)

22.94

%


18.37

%


17.62

%


12.66

%


(3.96)

%

The Company believes that presenting pre-tax pre-provision income, which reflects its profitability before income taxes and provision for credit losses, and the pre-tax, pre-provision return on average assets, are useful measurements in assessing its operating income and expenses by removing the volatility that may be associated with credit loss provisions. The Company also believes that during a crisis such as the COVID-19 pandemic, this information is useful as the impact of the pandemic on credit loss provisions of various institutions has varied based on the geography of the communities served by a particular institution and the decision to adopt or defer CECL methodology required by ASU 2016-13.


Three Months Ended


June 30,
2021


March 31,
2021


December 31,
2020


September 30,
2020


June 30,
2020


(Dollar amounts in thousands)

Pre-tax, pre-provision income and pre-tax, pre-provision return on average equity, annualized:

Net income (loss) (GAAP)

$

32,702



$

25,344



$

23,882



$

16,636



$

(6,139)


Add income tax expense

7,451



5,102



4,429



2,477



(936)


Add (reversal of) provision for credit losses

(13,987)



(7,199)



(3,133)



2,730



28,563


Pre-tax, pre-provision income (non-GAAP)

$

26,166



$

23,247



$

25,178



$

21,843



$

21,488












Average total assets (GAAP)

$

7,079,205



$

6,799,625



$

6,675,477



$

6,620,980



$

6,310,024












Return on average assets, annualized (GAAP)

1.85

%


1.51

%


1.42

%


1.00

%


(0.39)

%

Pre-tax, pre-provision return on average assets (non-GAAP)

1.48

%


1.39

%


1.50

%


1.31

%


1.37

%

The Company believes presenting loan yield excluding the effect of discount accretion on purchased loans is useful in assessing the impact of acquisition accounting on loan yield as the effect of loan discount accretion is expected to decrease as the acquired loans mature or roll off its balance sheet. Similarly, presenting loan yield excluding the effect of SBA PPP loans is useful in assessing the impact of these special program loans that are anticipated to substantially decrease upon forgiveness by the SBA within a short time frame.


Three Months Ended


June 30,
2021


March 31,
2021


June 30,
2020


(Dollar amounts in thousands)

Loan yield, excluding SBA PPP loans and incremental accretion on purchased loans, annualized:

Interest and fees on loans (GAAP)

$

50,750



$

49,524



$

48,404


Exclude SBA PPP loans interest and fees

(10,003)



(9,136)



(4,923)


Exclude incremental accretion on purchased loans

(495)



(1,075)



(696)


Adjusted interest and fees on loans (non-GAAP)

$

40,252



$

39,313



$

42,785








Average loans receivable, net (GAAP)

$

4,402,868



$

4,490,499



$

4,442,108


Exclude average SBA PPP loans

(777,156)



(832,148)



(667,390)


Adjusted average loans receivable, net (non-GAAP)

$

3,625,712



$

3,658,351



$

3,774,718








Loan yield, annualized (GAAP)

4.62

%


4.47

%


4.38

%

Loan yield, excluding SBA PPP loans and incremental accretion on purchased loans, annualized (non-GAAP)

4.45

%


4.36

%


4.56

%

 

 

Cision View original content:https://www.prnewswire.com/news-releases/heritage-financial-announces-second-quarter-2021-results-and-declares-regular-cash-dividend-301339034.html

SOURCE Heritage Financial Corporation