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, 2019 | | December 31, 2018 | | (In thousands) | ASSETS | | | | Cash and interest earning deposits | $ | 21,481 |
| | $ | 14,602 |
| Investment in subsidiary bank | 806,717 |
| | 764,097 |
| Other assets | 2,281 |
| | 2,520 |
| Total assets | $ | 830,479 |
| | $ | 781,219 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | Junior subordinated debentures | $ | 20,595 |
| | $ | 20,302 |
| Other liabilities | 573 |
| | 194 |
| Total stockholders’ equity | 809,311 |
| | 760,723 |
| Total liabilities and stockholders’ equity | $ | 830,479 |
| | $ | 781,219 |
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HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Income | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | | (In thousands) | INTEREST INCOME: | | | | | | Interest and dividends on interest earning deposits and other assets | $ | 57 |
| | $ | 7 |
| | $ | 44 |
| Total interest income | 57 |
| | 7 |
| | 44 |
| INTEREST EXPENSE: | | | | | | Junior subordinated debentures | 1,339 |
| | 1,263 |
| | 1,014 |
| Total interest expense | 1,339 |
| | 1,263 |
| | 1,014 |
| Net interest expense | (1,282 | ) | | (1,256 | ) | | (970 | ) | NONINTEREST INCOME: | | | | | | Dividends from subsidiary bank | 47,000 |
| | 30,000 |
| | 23,000 |
| Equity in undistributed income of subsidiary bank | 25,186 |
| | 29,258 |
| | 21,755 |
| Other income | 39 |
| | 22 |
| | — |
| Total noninterest income | 72,225 |
| | 59,280 |
| | 44,755 |
| NONONTEREST EXPENSE: | | | | | | Professional services | 517 |
| | 3,063 |
| | 768 |
| Other expense | 4,395 |
| | 3,833 |
| | 3,726 |
| Total noninterest expense | 4,912 |
| | 6,896 |
| | 4,494 |
| Income before income taxes | 66,031 |
| | 51,128 |
| | 39,291 |
| Income tax benefit | (1,526 | ) | | (1,929 | ) | | (2,500 | ) | Net income | $ | 67,557 |
| | $ | 53,057 |
| | $ | 41,791 |
|
HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Cash Flows | | | | | | | | | | | | | | Year Ended December 31, | | 2019 | | 2018 | | 2017 | | (In thousands) | Cash flows from operating activities: | | | | | | Net income | $ | 67,557 |
| | $ | 53,057 |
| | $ | 41,791 |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | Equity in undistributed income of subsidiary bank | (25,186 | ) | | (29,258 | ) | | (21,755 | ) | Stock-based compensation expense | 3,231 |
| | 2,744 |
| | 2,103 |
| Net change in other assets and liabilities | 763 |
| | 1,735 |
| | (1,925 | ) | Net cash provided by operating activities | 46,365 |
| | 28,278 |
| | 20,214 |
| 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 | (30,908 | ) | | (25,791 | ) | | (18,305 | ) | Proceeds from exercise of stock options | 58 |
| | 133 |
| | 164 |
| Repurchase of common stock | (8,636 | ) | | (1,704 | ) | | (737 | ) | Net cash used in financing activities | (39,486 | ) | | (27,362 | ) | | (18,878 | ) | Net increase in cash and cash equivalents | 6,879 |
| | 2,698 |
| | 1,336 |
| Cash and cash equivalents at the beginning of year | 14,602 |
| | 11,904 |
| | 10,568 |
| Cash and cash equivalents at the end of year | $ | 21,481 |
| | $ | 14,602 |
| | $ | 11,904 |
| | | | | | | 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 |
| | — |
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