HERITAGE FINANCIAL CORP WA
For the period ended Dec 31, 2023. Filed Feb 27, 2024.
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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Feb 27, 2024
HFWA$28.64+0.9%Stored close · as of Nov 9, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Table of Contents
FORM 10-K
December 31, 2023
TABLE OF CONTENTS
| Page | |||
|---|---|---|---|
| GLOSSARY OF ACRONYMS, ABBREVIATIONS AND TERMS | 4 | ||
| CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS | 5 | ||
| PART I | |||
| ITEM 1. | BUSINESS | 6 | |
| ITEM 1A. | RISK FACTORS | 16 | |
| ITEM 1B. | UNRESOLVED STAFF COMMENTS | 25 | |
| ITEM 1C | CYBERSECURITY | 25 | |
| ITEM 2. | PROPERTIES | 26 | |
| ITEM 3. | LEGAL PROCEEDINGS | 26 | |
| ITEM 4. | MINE SAFETY DISCLOSURES | 26 | |
| PART II | |||
| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES | 26 | |
| ITEM 6. | [RESERVED] | 28 | |
| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 28 | |
| OVERVIEW | 28 | ||
| RESULTS OF OPERATIONS | 28 | ||
| NET INTEREST INCOME AND MARGIN OVERVIEW | 29 | ||
| PROVISION FOR CREDIT LOSSES OVERVIEW | 31 | ||
| NONINTEREST INCOME OVERVIEW | 32 | ||
| NONINTEREST EXPENSE OVERVIEW | 32 | ||
| INCOME TAX EXPENSE OVERVIEW | 33 | ||
| FINANCIAL CONDITION OVERVIEW | 33 | ||
| INVESTMENT ACTIVITIES OVERVIEW | 34 | ||
| LOAN PORTFOLIO OVERVIEW | 35 | ||
| ALLOWANCE FOR CREDIT LOSSES ON LOANS OVERVIEW | 38 | ||
| DEPOSITS OVERVIEW | 39 | ||
| STOCKHOLDERS' EQUITY OVERVIEW | 40 | ||
| LIQUIDITY AND CAPITAL RESOURCES | 40 | ||
| CRITICAL ACCOUNTING ESTIMATES | 41 | ||
| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 42 | |
| ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA | 44 | |
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID: 173) | 44 | ||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION—DECEMBER 31, 2023 AND DECEMBER 31, 2022 | 46 | ||
| CONSOLIDATED STATEMENTS OF INCOME—FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 | 47 | ||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)—FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 | 48 | ||
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY—FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 | 49 | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS—FOR THE YEARS ENDED DECEMBER 31, 2023, 2022 AND 2021 | 50 | ||
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | 52 | ||
| NOTE 1. | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 52 | |
| NOTE 2. | INVESTMENT SECURITIES | 60 | |
| NOTE 3. | LOANS RECEIVABLE | 64 | |
| NOTE 4. | ALLOWANCE FOR CREDIT LOSSES ON LOANS | 73 | |
| NOTE 5. | PREMISES AND EQUIPMENT | 75 | |
| NOTE 6. | GOODWILL AND OTHER INTANGIBLE ASSETS | 75 | |
| NOTE 7. | DERIVATIVE FINANCIAL INSTRUMENTS | 76 | |
| NOTE 8. | DEPOSITS | 76 | |
| NOTE 9. | JUNIOR SUBORDINATED DEBENTURES | 76 | |
| NOTE 10. | SECURITIES SOLD UNDER AGREEMENT TO REPURCHASE | 77 | |
| NOTE 11. | OTHER BORROWINGS | 77 | |
| NOTE 12. | LEASES | 78 | |
| NOTE 13. | EMPLOYEE BENEFIT PLANS | 78 | |
| NOTE 14. | STOCKHOLDERS’ EQUITY | 79 | |
| NOTE 15. | FAIR VALUE MEASUREMENTS | 80 | |
| NOTE 16. | STOCK-BASED COMPENSATION | 84 | |
| NOTE 17. | CASH RESTRICTION | 85 | |
| NOTE 18. | INCOME TAXES | 85 | |
| NOTE 19. | COMMITMENTS AND CONTINGENCIES | 87 | |
| NOTE 20. | REGULATORY CAPITAL REQUIREMENTS | 88 | |
| NOTE 21. | HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) | 88 | |
| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE | 90 | |
|---|---|---|---|
| ITEM 9A. | CONTROLS AND PROCEDURES | 90 | |
| ITEM 9B. | OTHER INFORMATION | 90 | |
| ITEM 9C. | DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS | 90 | |
| PART III | |||
| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE | 90 | |
| ITEM 11. | EXECUTIVE COMPENSATION | 91 | |
| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS | 91 | |
| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE | 91 | |
| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | 91 | |
| PART IV | |||
| ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES | 91 | |
| SIGNATURES | 93 | ||
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