Heritage Financial Corp. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the quarter, the company reported total interest income of $16,700,000 against $17,847,000 for the same period last year. Net interest income was $15,716,000 against $16,487,000 for the same period last year. The decrease in net interest income is primarily due to the decline in net interest margins during the respective periods. Income before income taxes was $4,369,000 against $3,254,000 for the same period last year. Net income was $3,034,000 or $0.20 per diluted share against $2,233,000 or $0.14 per diluted share for the same period last year. Return on average assets was 0.89% against 0.65% for the same period last year. Return on average equity was 5.99% against 4.32% for the same period last year.

For the year, the company reported total interest income of $69,109,000 against $74,120,000 for the same period last year. Net interest income was $64,575,000 against $67,538,000 for the same period last year. Income before income taxes was $19,439,000 against $9,151,000 for the same period last year. Net income was $13,261,000 or $0.87 per diluted share against $6,518,000 or $0.42 per diluted share for the same period last year. Return on average assets was 0.98% against 0.48% for the same period last year. Return on average equity was 6.52% against 3.17% for the same period last year. Book value per common share as at December 31, 2012 was $13.16 against $13.10 as at December 31, 2011. Tangible book value per common share as at December 31, 2012 was $12.23 against $12.16 as at December 31, 2011.

The company had net charge-offs on originated loans of $1.7 million for the quarter ended December 31, 2012 compared to $525,000 for the quarter ended September 30, 2012 and $265,000 for the quarter ended December 31, 2011.