Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-29480 HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Washington 9 ...

Financial Data and Key Metrics Changes - The company reported a net interest income increase of $3.8 million or 6.4%, primarily due to a higher net interest margin which rose by 41 basis points to 3.98% for Q4 [40] - Non-interest expense increased by $1.2 million to $40.4 million in Q4, attributed to inflationary pressures and higher full-time equivalent (FTE) levels [31] - The total criticized loans decreased by approximately 10% or $15.6 million in Q4, now down 26% from year-end 2021 [33] Business Line Data and Key Metrics Changes - The commercial lending group closed $329 million in new loan commitments for the quarter, consistent with the same amount closed in Q4 2021 [46] - Consumer loan production was $21 million during the quarter, down from $29 million in the previous quarter [64] - The average interest rate for new commercial loans was 5.72%, up from 4.87% in the previous quarter [65] Market Data and Key Metrics Changes - Deposits decreased by $313 million or 5% in Q4, primarily due to rate-sensitive customers seeking higher-yielding investments [57] - The company added $125 million in funds under management from deposit customers during the quarter through its Wealth Management division [41] - The loan-to-deposit ratio stood at 68%, indicating ample liquidity for loan portfolio growth [42] Company Strategy and Development Direction - The company aims to maintain a conservative risk profile while focusing on organic loan growth and expanding its production teams in new markets [29][36] - There is an ongoing strategy to enhance technology to support efficient operations and improve customer experience [50][67] - The company is open to pursuing acquisitions in its three-state region when suitable opportunities arise [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong credit quality metrics despite potential economic challenges in 2023 [62] - The company anticipates continued margin expansion, contingent on deposit runoff and the actions required to manage liquidity [96] - Management noted that while there may be some impact from tech company layoffs, the overall credit quality remains stable [104][116] Other Important Information - The company reported net recoveries of approximately $1.2 million for the full year, a significant improvement compared to net charge-offs in previous years [44] - The company has seen a significant reduction in non-accrual loans, totaling $5.9 million, representing only 0.15% of total loans [43] Q&A Session Summary Question: What is the outlook for liquidity and potential outflows? - Management indicated a mix of strategies may be employed, including borrowings and possibly selling securities to defend the deposit base [75][91] Question: How does the company view capital going forward? - The focus remains on growth, with potential buybacks not being a priority at this time [77] Question: What are the expectations for margin expansion in 2023? - Management expects some margin expansion, but it will depend on deposit runoff and the associated costs of managing liquidity [96] Question: Can you provide details on the office portfolio exposure? - The company has limited exposure in core markets, with criticized office loans totaling approximately $23 million, representing 4% of the total office loan portfolio [34][60]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-29480 HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Was ...

Heritage Financial Corporation (NASDAQ:HFWA) Q3 2022 Earnings Conference Call October 20, 2022 1:00 PM ET Company Participants Jeff Deuel - CEO Donald Hinson - CFO Tony Chalfant - Chief Credit Officer Bryan McDonald - President and COO Conference Call Participants Eric Spector - Raymond James Jeff Rulis - DA Davidson Eleanor Hagan - KBW Operator Good morning. Thank you for attending today's Heritage Financial Corporation Q3 2022 Earnings Call. My name is Bethany, I will be the moderator for today's call. [O ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Table of Content WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-29480 HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Washingto ...

Heritage Financial Corporation (NASDAQ:HFWA) Q2 2022 Earnings Conference Call July 21, 2022 2:00 PM ET Company Participants Jeff Deuel - Chief Executive Officer Donald Hinson - Executive Vice President and Chief Financial Officer Tony Chalfant - Executive Vice President and Chief Credit Officer Bryan McDonald - President and Chief Operating Officer Conference Call Participants Adam Butler - Piper Sandler & Co. Kelly Motta - Keefe, Bruyette & Woods, Inc. Operator Good afternoon. Thank you for attending today ...

Heritage Financial CORPORATION INVESTOR PRESENTATION Q2 2022 FORWARD LOOKING STATEMENTS Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements, include, but are not limited to, the following: • the U.S. and global economies, and consumer and corporate customers, including economic activity, market liquidity, employment levels and labor shortages, including the effects of inflation, a potential recession or slowed economic growth caus ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) Washington 91-1857900 (State or other jurisdiction of incorporation or organization) 201 Fifth Avenue SW, Olympia WA 98501 (Address of principal executive offices) (Zip Code) (I.R.S. Employer Identification No.) (360) 943-1500 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: ☒ QUARTERLY REPOR ...

Financial Data and Key Metrics Changes - The annualized loan growth excluding PPP was 9.5% for the quarter, supported by lower payoffs and higher line utilization [4] - Net interest income decreased by almost $1 million, primarily due to a $1.8 million decrease in income from PPP loans [12] - Total deposits grew by $97 million or 1.5% in Q1, with a year-over-year increase of $458 million or 7.6% [16] - Non-interest income decreased by $1.3 million from the prior quarter, mainly due to a $2.7 million gain on sale of property recognized in Q4 [19] - The overhead ratio improved to 1.95% compared to 2.06% in the prior quarter [19] Business Line Data and Key Metrics Changes - Commercial lending closed $225 million in new loan commitments, down from $329 million in the previous quarter [34] - Consumer loan production was $22 million during the quarter, down from $23 million in the previous quarter [38] - The mortgage department closed $37 million of new loans in Q1, compared to $45 million in Q4 [41] Market Data and Key Metrics Changes - The average interest rate for new commercial loans was 3.54%, down 17 basis points from the previous quarter [39] - The average interest rate for all new loans was 3.39%, down 11 basis points from the previous quarter [39] Company Strategy and Development Direction - The company is focused on maintaining a moderate risk profile and has not loosened underwriting standards despite competitive pressures [32] - There is an intention to pursue acquisitions in the three-state region when suitable opportunities arise [46] - The company continues to refine its technology strategy to support efficient operations and enhance customer experience [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about organic growth due to the economic vitality of the Pacific Northwest [8] - The company anticipates high single-digit loan growth for the year [43] - Management acknowledged inflationary pressures on compensation expenses and technology investments [20] Other Important Information - The allowance for credit losses (ACL) settled at 1.07% excluding PPP, compared to the pre-pandemic ACL of 1.01% [7] - Non-accrual loans declined by $7.2 million or 30% from year-end 2021 levels [23] - The company experienced net recoveries of $494,000 for the quarter [30] Q&A Session Summary Question: Is there a figure for net interest margin excluding PPP, interest recoveries, and accretion? - The margin would be about 260 basis points, unchanged from the prior quarter [51] Question: What is the buyback appetite compared to last quarter? - The company does not have a significant appetite for buybacks, maintaining a steady share count [52] Question: Is the expense outlook of $37 million to $38 million still appropriate? - Yes, that range is still appropriate, but expenses are expected to increase due to inflationary pressures [56][58] Question: Will the company continue to purchase residential mortgages? - The company may utilize this strategy as a lever to manage excess cash, depending on the environment [59][61] Question: What are the expectations for deposit rates with upcoming rate hikes? - The company expects a lag in deposit rate increases, with a potential need to raise rates later in the year [62] Question: What is the near-term margin outlook? - The company is optimistic about margin increases in the coming quarters, anticipating a bottoming out in Q1 [68][69] Question: What is the status of M&A discussions? - There has been no significant change in the M&A environment, and discussions are ongoing but not imminent [74] Question: Are there increased conversations regarding digitalization opportunities? - Opportunities are still expected to emerge later in the year as the market stabilizes [76]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 000-29480 HERITAGE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) (State or ot ...