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Heritage Financial Corporation (Parent Company Only)
12 Months Ended
Dec. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Heritage Financial Corporation (Parent Company Only)
Heritage Financial Corporation (Parent Company Only)
Following is the condensed financial statements of the Parent Company.

HERITAGE FINANCIAL CORPORATION
(PARENT COMPANY ONLY)
Condensed Statements of Financial Condition
 
 
 
December 31, 2018
 
December 31, 2017
 
 
(In thousands)
ASSETS
 
 
 
 
Cash and interest earning deposits
 
$
14,602

 
$
11,904

Investment in subsidiary bank
 
764,097

 
512,655

Other assets
 
2,520

 
4,696

Total assets
 
$
781,219

 
$
529,255

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
Junior subordinated debentures
 
$
20,302

 
$
20,009

Other liabilities
 
194

 
941

Total stockholders’ equity
 
760,723

 
508,305

Total liabilities and stockholders’ equity
 
$
781,219

 
$
529,255



HERITAGE FINANCIAL CORPORATION
(PARENT COMPANY ONLY)
Condensed Statements of Income
 
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(In thousands)
INTEREST INCOME:
 
 
 
 
 
 
Interest and dividends on interest earning deposits and other assets
 
$
7

 
$
44

 
$
34

Total interest income
 
7

 
44

 
34

INTEREST EXPENSE:
 
 
 
 
 
 
Junior subordinated debentures
 
1,263

 
1,014

 
880

Total interest expense
 
1,263

 
1,014

 
880

Net interest expense
 
(1,256
)
 
(970
)
 
(846
)
NONINTEREST INCOME:
 
 
 
 
 
 
Dividends from subsidiary bank
 
30,000

 
23,000

 
30,000

Equity in undistributed income of subsidiary bank
 
29,258

 
21,755

 
11,848

Other income
 
22

 

 

Total noninterest income
 
59,280

 
44,755

 
41,848

NONONTEREST EXPENSE:
 
 
 
 
 
 
Professional services
 
3,063

 
768

 
385

Other expense
 
3,833

 
3,726

 
3,437

Total noninterest expense
 
6,896

 
4,494

 
3,822

Income before income taxes
 
51,128

 
39,291

 
37,180

Income tax benefit
 
(1,929
)
 
(2,500
)
 
(1,738
)
Net income
 
$
53,057

 
$
41,791

 
$
38,918




HERITAGE FINANCIAL CORPORATION
(PARENT COMPANY ONLY)
Condensed Statements of Cash Flows
 
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
 
 
Net income
 
$
53,057

 
$
41,791

 
$
38,918

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
 
Equity in undistributed income of subsidiary bank
 
(29,258
)
 
(21,755
)
 
(11,848
)
Net excess tax benefit from exercise of stock options and vesting of restricted stock
 

 

 
(123
)
Stock-based compensation expense
 
2,744

 
2,103

 
1,840

Net change in other assets and liabilities
 
1,735

 
(1,925
)
 
(1,141
)
Net cash provided by operating activities
 
28,278

 
20,214

 
27,646

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
 
(25,791
)
 
(18,305
)
 
(21,569
)
Proceeds from exercise of stock options
 
133

 
164

 
540

Net excess tax benefit from exercise of stock options and vesting of restricted stock
 

 

 
123

Repurchase of common stock
 
(1,704
)
 
(737
)
 
(2,894
)
Net cash used in financing activities
 
(27,362
)
 
(18,878
)
 
(23,800
)
Net increase in cash and cash equivalents
 
2,698

 
1,336

 
3,846

Cash and cash equivalents at the beginning of year
 
11,904

 
10,568

 
6,722

Cash and cash equivalents at the end of year
 
$
14,602

 
$
11,904

 
$
10,568

 
 
 
 
 
 
 
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