Heritage Financial Announces First Quarter 2011 Results and Highlights

HERITAGE FINANCIAL CORPORATION HFWA Brian L. Vance, President and CEO of Heritage Financial Corporation, today reported net income for the quarter ended March 31, 2011 of $764,000 compared to net income of $696,000 for the quarter ended March 31, 2010 and $9.8 million for the linked-quarter ended December 31, 2010. The net income applicable to common shareholders for the quarter ended March 31, 2011 was $0.05 per diluted common share, compared to $0.03 per diluted common share for the quarter ended March 31, 2010 and $0.77 per diluted common share for the linked-quarter ended December 31, 2010. The decrease in earnings from the linked-quarter ended December 31, 2010 was substantially attributable to the gain on bank acquisitions in connection with the acquisition of Pierce Commercial Bank in November 2010.