HERITAGE FINANCIAL CORP /WA/

Stockholders' Equity

Total stockholders' equity increased $18.0 million, or 2.1%, to $881.5 million at March 31, 2025, compared to $863.5 million at December 31, 2024, due primarily to $13.9 million of net income recognized for the three months ended March 31, 2025 and a $11.9 million decrease in accumulated other comprehensive loss, net, offset partially by $8.3 million in dividends paid to common shareholders and $0.8 million in common stock repurchases. The Company’s stockholders' equity to assets ratio was 12.4% at March 31, 2025, compared to 12.2% at December 31, 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 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 the receipt of dividends from the Bank, which is the Company’s predominant source of income. On April 23, 2025, the Board declared a regular quarterly dividend of $0.24 per common share payable on May 21, 2025 to shareholders of record on May 7, 2025.

On April 24, 2024, the Board authorized the repurchase of up to 5% of the Company's outstanding common shares or 1,734,492 shares, in total, under a new stock repurchase program, with 990,522 shares remaining available for repurchase as of March 31, 2025. 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.