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Heritage Financial Corporation (Parent Company Only)
12 Months Ended
Dec. 31, 2019
Condensed Financial Information 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, 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



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