OLYMPIA, Wash., Jan. 27 /PRNewswire-FirstCall/ -- Heritage Financial
Corporation (Nasdaq: HFWA), The Board of Directors of Heritage Financial
Corporation, parent company of Heritage Bank and Central Valley Bank, declared
a cash dividend of $0.10 per share payable on February 20, 2009 to common
shareholders of record on February 5, 2009.
The Company has paid cash dividends for forty-four consecutive quarters
since the Company's stock began trading on the Nasdaq National Market on
January 9, 1998. In order to maintain appropriate capital levels in these
challenging economic times, the Company determined it prudent to reduce the
cash dividend from the $0.14 per share declared in the prior quarter.
President and CEO, Brian Vance stated that, "Our cash dividend analysis
and decision considers two primary variables: capital adequacy and the
dividend payout ratio. Although we consider dividend yield as well, it is a
secondary consideration. Due to the current economic volatility, we believe
it is absolutely necessary to preserve our strong capital position. We
anticipate the current economic recession will further impact community bank
profitability and therefore want to ensure the dividend payout ratio is
reasonable in relation to our profitability levels."
Mr. Vance added, "We remain committed to our shareholders with a
competitive dividend strategy and yet must consider the importance of capital
adequacy during these difficult times. Our strong capital position gives us
the ability to continue our local lending efforts and protect our depositors,
which we know is vitally critical to the health and recovery of our
communities".
Heritage Financial Corporation is a $900 million bank holding company
headquartered in Olympia, Washington. The Company operates two community
banks, Heritage Bank and Central Valley Bank. Heritage Bank serves Pierce,
Thurston, Mason and south King Counties in the South Puget Sound region of
Washington through its fourteen full-service banking offices and its Online
Banking Website http://www.HeritageBankWA.com. Central Valley Bank serves
Yakima and Kittitas Counties in central Washington through its six full-
service banking offices and its Online Banking Website
http://www.CVBankWA.com.
Additional information about Heritage Financial Corporation is available
on its Internet Website http://www.HF-WA.com
SOURCE Heritage Financial Corporation