HERITAGE FINANCIAL CORP WA

The Company’s stockholders' equity to assets ratio was 12.0% at June 30, 2024, compared to 11.9% at December 31, 2023. Total stockholders' equity decreased $2.8 million, or 0.3%, to $850.5 million at June 30, 2024, compared to $853.3 million at December 31, 2023, due primarily to $16.2 million in dividends paid to common shareholders and $10.5 million in common stock repurchases, offset partially by $19.9 million of net income recognized for the six months ended June 30, 2024.

The Company has historically paid cash dividends to its common shareholders. Payments of future cash dividends, if any, will be at the discretion of our Board of Directors after taking into account various factors, including our business, operating results and financial condition, capital requirements, current and anticipated cash needs, plans for expansion, any legal or contractual limitation on our ability to pay dividends and other relevant factors. Dividends on common stock from the Company depend substantially upon receipt of dividends from the Bank, which is the Company’s predominant source of income. On July 24, 2024, the Company’s Board of Directors declared a regular quarterly dividend of $0.23 per common share payable on August 21, 2024 to shareholders of record on August 7, 2024.

On April 24, 2024, the Company's Board of Directors authorized the repurchase of up to 5% of the Company's outstanding common shares or 1,734,492 shares, in total, under the new stock repurchase plan. The stock repurchase program does not obligate the Company to repurchase any shares of its common stock, and other than repurchases that have been completed to date, there is no assurance that the Company will do so. Under the stock repurchase program, the Company may repurchase shares of common stock from time to time in open market or privately negotiated transactions. The number, timing and price of shares repurchased will depend on business and market conditions, regulatory requirements, availability of funds and other factors, including opportunities to deploy the Company's capital. The Company may, in its discretion, begin, suspend or terminate repurchases at any time prior to the Program’s expiration, without any prior notice. The new stock repurchase program superseded the previous stock repurchase program authorized in March 2020, which allowed for the buyback of 1,799,054 shares and was completed during the six months ended June 30, 2024.