Heritage Financial Corporation reported full-year 2025 net income of $67.5 million, or $1.96 per diluted share, reflecting year-over-year growth from $43.3 million in 2024. The company declared $0.96 in total dividends for 2025 and announced a $0.24 dividend in Q1 2026.
Heritage completed acquisitions of Olympic, Bancorp, Inc. and Kitsap Bank on January 31, 2026, and expects the core systems conversion to finish during the third quarter of 2026. Net interest margin improved to 3.58% for 2025 and capital remained strong with a 14.1% total risk-based capital ratio as of December 31, 2025.
Heritage Financial Corporation is asking shareholders to vote at its virtual 2026 annual meeting on May 7, 2026. The proxy seeks approval to elect eleven directors for one-year terms, hold an advisory vote on named executive officer pay, and ratify Crowe LLP as independent auditor for 2026.
The board is largely independent, with 10 of 11 directors meeting independence standards, average tenure of 11 years, and 55% gender or ethnic diversity. Directors must retire at 75 and meet stock ownership guidelines. The company highlights strong 2025 results: net income of $67.5 million versus $43.3 million in 2024, diluted EPS of $1.96 versus $1.24, and 4.1% deposit growth to $5.92 billion, despite a 2.0% decline in total assets to $6.97 billion.
Heritage notes a balance sheet restructuring that produced $10.7 million of pre-tax losses on securities sales and $1.0 million of 2025 merger-related costs tied to its Olympic Bancorp acquisition, completed in early 2026. Executive and director pay programs emphasize performance-based incentives, stock ownership, and clawback and anti-hedging policies.
Heritage Financial Corp EVP Chief Banking Officer Kelli Ann Wilson reported exercising restricted stock units into Common Stock on March 16, 2026. She acquired a total of 3,818 shares of Common Stock at a reported price of $24.89 per share through derivative exercises.
In a related transaction, 719 shares of Common Stock were withheld to cover tax obligations, a non‑market disposition coded as “F.” Following these transactions, Wilson directly holds 6,877 shares of Heritage Financial Common Stock.
HERITAGE FINANCIAL CORP /WA/ executive Sabrina C. Robison exercised restricted stock units into common shares as part of equity compensation. On 2026-03-16, she converted 4,038 restricted stock units into common stock at $24.89 per share and 744 shares were withheld to cover tax obligations. Following these transactions, she directly owns 33,647 shares of common stock. The footnotes indicate these awards were granted under the company’s 2023 and 2024 Omnibus Equity Plans and vest over three years, so the activity reflects routine vesting and settlement rather than open-market buying or selling.
Heritage Financial Corp EVP Chief Lending Officer Matthew T. Ray exercised restricted stock units into common shares of HFWA. On March 16, 2026, he converted a total of 4,516 RSUs into the same number of common shares at a stated value of $24.89 per share. 749 of these shares were withheld to cover tax obligations, and he now directly owns 26,427 shares of Heritage Financial common stock.
Heritage Financial Corp. President Bryan McDonald reported routine equity award activity. On 2026-03-16, he exercised restricted stock units and performance share units covering a total of 4,991 shares of Common Stock at a reported value of $24.89 per share.
Following these derivative exercises, 939 shares of Common Stock were disposed of to satisfy tax obligations, and McDonald directly held 35,115 shares of Common Stock. The awards were granted under the company’s omnibus equity plans and vest over three-year periods.
HERITAGE FINANCIAL CORP (HFWA) EVP and CFO Donald Hinson exercised equity awards into common stock. On March 16, 2026, he converted a total of 3,685 restricted stock units and performance share units into shares of common stock, reflecting vesting of prior grants under the company’s omnibus equity plans.
Following these exercises and a related tax-withholding transaction of 689 shares, Hinson directly owned 45,083 shares of common stock. The underlying awards include grants from 2023 and 2024 that vest over three years or upon meeting performance metrics, highlighting compensation tied to multi‑year performance and service.
Heritage Financial Corp executive Thomas J. Henning exercised restricted stock units into common stock as part of his equity compensation. He converted 5,116 restricted stock units into shares of Heritage Financial common stock at a reference price of $24.89 per share.
Following these transactions, Henning held 18,611 shares of common stock directly. The company withheld 938 shares to cover tax obligations, which is recorded as a disposition but is not an open-market sale. The remaining activity reflects routine equity awards vesting under the company’s omnibus equity plans.
Heritage Financial Corp (HFWA) executive William Glasby exercised restricted stock units into common shares. On March 16, 2026, he converted 5,291 RSUs into the same number of shares of common stock at a reference price of $24.89 per share.
Of these shares, 1,338 were withheld to cover tax obligations, a non-market disposition, leaving Glasby with 12,908 shares of common stock held directly. The RSUs were granted under the company’s omnibus equity plans and vest over three years, reflecting routine equity-based compensation rather than open-market buying or selling.
Heritage Financial Corp executive Amy E. Curran reported routine equity compensation activity. On March 16, 2026, she exercised and converted restricted stock units into 5,040 shares of Heritage Financial common stock, at a reference price of $24.89 per share as disclosed in the filing.
These transactions reflect vesting and settlement of multiple restricted stock unit awards granted under the company’s omnibus equity plans, where each unit converts into one common share upon vesting. As part of the same event, 918 common shares were withheld to cover tax obligations, a non-market disposition that does not represent an open-market sale. After these transactions, Curran directly held 29,453 shares of Heritage Financial common stock, indicating that the withholding was a relatively small portion of her overall position and that she retained the majority of the newly acquired shares.