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EX - 99.1 2 a8 - kexhibit991063021.htm EX - 99.1 Heritage Financial CORPORATION FOR IMMEDIATE RELEASE DATE : July 22 , 2021 HERITAGE FINANCIAL ANNOUNCES SECOND QUARTER 2021 RESULTS AND DECLARES REGULAR CASH DIVIDEND • • • Net income was $ 32.7 million , or $ 0.90 per diluted share , for the quarter ended June 30 , 2021 , compared to $ 25.3 million , or $ 0.70 per diluted share , for the linked - quarter ended March 31 , 2021 and a net loss of $ 6.1 million , or $ ( 0.17 ) per diluted share , for the quarter ended June 30 , 2020 . Reversal of provision for credit losses was $ 14.0 million for the quarter ended June 30 , 2021 compared to $ 7.2 million for the linked - quarter ended March 31 , 2021 and a provision for credit loss of $ 28.6 million for the quarter ended June 30 , 2020 . The ratio of nonperforming assets to total assets decreased to 0.50 % at June 30 , 2021 compared to 0.75 % at March 31 , 2021 and 0.88 % at December 31 , 2020 . Noninterest expense to average total assets , annualized , was 2.06 % for the quarter ended June 30 , 2021 compared to 2.22 % for the linked - quarter ended March 31 , 2021 and 2.36 % for the quarter ended June 30 , 2020 . Capital remains strong with a Tier 1 leverage ratio of 9.1 % and a total risk - based capital ratio of 15.1 % at June 30 , 2021 . • Declared a regular cash dividend of $ 0.20 per common share on July 21 , 2021 . • Noninterest demand deposits represented 37.2 % of total deposits at June 30 , 2021 compared to 36.6 % at March 31 , 2021 and 35.4 % at December 31 , 2020 . Heritage announces plan to close and consolidate four branches on October 29 , 2021 , bringing the total branch count to 49 , a reduction of 21 % from 62 branches at September 30 , 2020 . 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 $ 32.7 million for the quarter ended June 30 , 2021 compared to $ 25.3 million for the linked - quarter ended March 31 , 2021 and a net loss of $ 6.1 million for the quarter ended June 30 , 2020. Diluted earnings per share for the quarter ended June 30 , 2021 were $ 0.90 compared to $ 0.70 for the linked - quarter ended March 31 , 2021 and a loss per share of $ 0.17 for the quarter ended June 30 , 2020 . Jeffrey J. Deuel , President and Chief Executive Officer of Heritage , commented , " We are appreciative the Governors of Washington and Oregon , where our branches are located , allowed us to open up the region at the end of June . Most of our remote employees will return to the office over the summer and substantially all of our employees will have settled into their go - forward working environment by Labor Day . We are also very pleased with our financial performance this quarter . We continue to effectively manage risk while reducing the expense base and deploying digital solutions to create efficiencies and enhance the customer experience . Further , we are gratified with the success of our ongoing efforts to have a positive impact on housing in our local communities . Recently , we were selected by Mercy Housing Northwest to provide $ 14 million of construction financing and a $ 16 million equity investment in a new affordable housing development . The project located in Bellingham , Washington consists of 77 units of family housing as well as an Early Learning Center and will be known as Barkley Family Housing . " 1