Heritage continues dividend tradition

CHRIS CLOUGH, THE OLYMPIAN

OLYMPIA -- Heritage Financial Corp. declared a cash dividend of 11 cents per share Thursday, adding to a dividend string that dates back about four years.

It is the company's sixteenth quarterly dividend since going public in January 1998 and is payable Jan. 30 to shareholders of record Jan. 15.

"The board of directors takes a look at each quarter and declares a dividend based on earnings and our total capital position," Heritage Chairman and CEO Donald Rhodes said of the Olympia-based financial institution that has about $593 million in assets and decades-long roots in South Sound.

Rhodes said the board decided a quarterly dividend was appropriate and raised it half a cent since the last dividend of 10.5 cents a share in October.

Coupled with an aggressive stock buy-back program, Rhodes said quarterly dividends are a way to return capital to shareholders.

"It's the 15th consecutive quarter we've raised the dividend half a cent," Rhodes said. "It's not automatic, but is a conclusion made on a quarterly basis and the increase shows continued good results."

As for earnings for the fourth quarter and fiscal year 2001, Rhodes said he expects the financial report to be out at the end of the third week in January.

For the third quarter ending Sept. 30, Heritage had earnings of $2.08 million, up 38 percent from the same quarter in 2000.

Rhodes said Heritage and the banking industry are seeing the symptoms of an economic slowdown in Puget Sound.

"As expected, activity is down across the board," said Rhodes, adding that a recent boost in residential lending and refinancing spurred by low interest rates is showing signs of slowing as well.

Heritage Financial Corp.

- Company: Operates two independent community banks, Heritage Bank in South Sound and Central Valley Bank in Eastern Washington.

- Stock: Traded on the Nasdaq under the symbol HFWA.

- Thursday's closing price: $11.81

On the Web:

Heritage Financial Corp.

The Olympian Copyright 2001

back to main Taking Stock in South Sound index