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EX - 99.1 2 a8 - kexhibit991033121.htm EX - 99.1 • • Heritage Financial CORPORATION FOR IMMEDIATE RELEASE DATE : April 22 , 2021 HERITAGE FINANCIAL ANNOUNCES FIRST QUARTER 2021 RESULTS AND DECLARES REGULAR CASH DIVIDEND Net income was $ 25.3 million , or $ 0.70 per diluted share , for the quarter ended March 31 , 2021 , compared to $ 23.9 million , or $ 0.66 per diluted share , for the linked - quarter ended December 31 , 2020 and $ 12.2 million , or $ 0.34 per diluted share , for the quarter ended March 31 , 2020 . Noninterest expense to average total assets , annualized , was 2.22 % for the quarter ended March 31 , 2021 compared to 2.30 % for the linked - quarter ended December 31 , 2020 and 2.70 % for the quarter ended March 31 , 2020 . Reversal of provision for credit losses was $ 7.2 million for the quarter ended March 31 , 2021 compared to $ 3.1 million for the linked - quarter ended December 31 , 2020 and a provision for credit loss of $ 7.9 million for the quarter ended March 31 , 2020 . Capital remains strong with Tier 1 leverage ratio of 9.1 % and total risk - based capital ratio of 14.5 % at March 31 , 2021 . Noninterest demand deposits represent 36.6 % of total deposits at March 31 , 2021 . • Heritage declared a regular cash dividend of $ 0.20 per common share on April 21 , 2021 . • Heritage completed the consolidation of eight branches during the quarter ended March 31 , 2021 . • Total assets exceeded $ 7.0 billion for the first time in the Company's history . Olympia , WA - 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 $ 25.3 million for the quarter ended March 31 , 2021 compared to $ 23.9 million for the linked - quarter ended December 31 , 2020 and $ 12.2 million for the quarter ended March 31 , 2020. Diluted earnings per share for the quarter ended March 31 , 2021 were $ 0.70 compared to $ 0.66 for the linked - quarter ended December 31 , 2020 and $ 0.34 for the quarter ended March 31 , 2020 . Jeffrey J. Deuel , President and Chief Executive Officer of Heritage , commented , " We are very pleased to see the progress in our region as more people are vaccinated . The improving conditions have allowed us to re - open our branch lobbies in all of our non - metro locations which represents 46 of our 53 locations . We are also happy with our quarterly performance given the backdrop of the pandemic as we continue to effectively manage risk , enhance our operations with digital solutions , and also support the ongoing PPP programs . Further , we are pleased with the success of our ongoing efforts to have a positive impact on housing in our local communities . Recently , we were selected to provide $ 5 million of financing to Community Partners for Affordable Housing in Portland . Proceeds will be used to refinance and renovate the Washington Square Village apartments taking advantage of Oregon Facilities Authority's " SNAP Loan " program that passes our tax savings onto this worthy nonprofit borrower in the form of a lower interest rate . " 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 March 31 , December 31 , 2020 2021 March 31 , 2020 ( Dollars in thousands , except per share amounts ) Net income Pre - tax , pre - provision income ( 1 ) 1 $ $ 25,344 $ 23,247 $ 23,882 $ 25,178 $ 12,191 20,777