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Stockholders' Equity
6 Months Ended
Jun. 30, 2019
Stockholders' Equity Note [Abstract]  
Stockholders' Equity
Stockholders’ Equity
(a) Earnings Per Common Share
The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the three and six months ended June 30, 2019 and 2018:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Net income:
 
 
 
 
 
 
 
Net income
$
15,984

 
$
11,857

 
$
32,536

 
$
20,944

Dividends and undistributed earnings allocated to participating securities
(48
)
 
(57
)
 
(100
)
 
(110
)
Net income allocated to common shareholders
$
15,936

 
$
11,800

 
$
32,436

 
$
20,834

Basic:
 
 
 
 
 
 
 
Weighted average common shares outstanding
36,895,625

 
34,023,566

 
36,888,601

 
33,680,014

Restricted stock awards
(25,466
)
 
(88,905
)
 
(40,632
)
 
(107,897
)
Total basic weighted average common shares outstanding
36,870,159

 
33,934,661

 
36,847,969

 
33,572,117

Diluted:
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
36,870,159

 
33,934,661

 
36,847,969

 
33,572,117

Effect of potentially dilutive common shares (1)
144,714

 
172,631

 
163,767

 
157,819

Total diluted weighted average common shares outstanding
37,014,873

 
34,107,292

 
37,011,736

 
33,729,936


(1) 
Represents the effect of the assumed exercise of stock options and vesting of restricted stock awards and units.
Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. Anti-dilution occurs when the exercise price of a stock option or the unrecognized compensation cost per share of a restricted stock award exceeds the market price of the Company’s stock. For the three and six months ended June 30, 2019, there were 89,507 and 61,333 anti-dilutive shares outstanding, respectively. There were no anti-dilutive shares outstanding for the three and six months ended June 30, 2018.
(b) Dividends
The timing and amount of cash dividends paid on the Company's common stock depends on the Company’s earnings, capital requirements, financial condition and other relevant factors. Dividends on common stock from the Company depend substantially upon receipt of dividends from the Bank, which is the Company’s predominant source of income.
The following table summarizes the dividend activity for the six months ended June 30, 2019 and calendar year 2018:
Declared
 
Cash Dividend per Share
 
Record Date
 
Paid Date
 
January 24, 2018
 
$0.15
 
February 7, 2018
 
February 21, 2018
 
April 25, 2018
 
$0.15
 
May 10, 2018
 
May 24, 2018
 
July 24, 2018
 
$0.15
 
August 9, 2018
 
August 23, 2018
 
October 24, 2018
 
$0.17
 
November 7, 2018
 
November 21, 2018
 
October 24, 2018
 
$0.10
 
November 7, 2018
 
November 21, 2018
*
January 23, 2019
 
$0.18
 
February 7, 2019
 
February 21, 2019
 
April 24, 2019
 
$0.18
 
May 8, 2019
 
May 22, 2019
 

* Denotes a special dividend.
The FDIC and the Washington State Department of Financial Institutions, Division of Banks have the authority under their supervisory powers to prohibit the payment of dividends by the Bank to the Company. Additionally, current guidance from the Board of Governors of the Federal Reserve System provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. Current regulations allow the Company and the Bank to pay dividends on their common stock if the Company’s or the Bank’s regulatory capital would not be reduced below the statutory capital requirements set by the Board of Governors of the Federal Reserve System and the FDIC.
(c) Stock Repurchase Program
The Company has had various stock repurchase programs since March 1999. On October 23, 2014, the Company's Board of Directors authorized the repurchase of up to 5% of the Company's outstanding common shares, or approximately 1,513,000 shares, under the eleventh stock repurchase plan. The number, timing and price of shares repurchased will depend on business and market conditions and other factors, including opportunities to deploy the Company's capital.
Since the inception of the eleventh plan, the Company has repurchased 607,966 shares at an average share price of $17.33, including 28,000 shares repurchased at an average share price of $29.12 during both the three and six months ended June 30, 2019. No shares were repurchased under this plan during the three and six months ended June 30, 2018.
In addition to the stock repurchases under a plan, the Company repurchases shares to pay withholding taxes on the vesting of restricted stock awards and units. The following table provides total repurchased shares for the periods indicated:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
Repurchased shares to pay withholding taxes (1)
2,175

 
7,394

 
28,029

 
52,820

Stock repurchase to pay withholding taxes average share price
$
29.31

 
$
33.84

 
$
30.88

 
$
31.96

(1) During the six months ended June 30, 2018, the Company repurchased 26,741 shares related to the withholding taxes due on the accelerated vesting of the restricted stock units of Puget Sound which were converted to Heritage common stock shares with an average share price of $31.80 under the terms of the Puget Sound Merger. See Note (2) Business Combinations.