Heritage Financial Corporation reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company's total interest income was $34,571,000 compared to $34,016,000 a year ago. Net interest income was $33,055,000 compared to $32,535,000 a year ago. The increase in net interest income from the same periods in 2015 was primarily due to an increase in average interest earning assets, partially offset by a decrease in the yield on average interest earning assets during the respective periods. Net interest income after provision for loan losses was $31,878,000 compared to $31,411,000 a year ago. Income before income taxes was $13,255,000 compared to $12,140,000 a year ago. Net income was $9,893,000 compared to $9,493,000 a year ago. Diluted earnings per common share was $0.33 compared to $0.32 a year ago. Return on average assets, annualized was 1.03% compared to 1.04% a year ago. Return on average equity, annualized was 8.04% compared to 8.03% a year ago. Return on average tangible common equity, annualized was 10.84% compared to 11.04% a year ago. Book value per common share was $16.08 compared to $15.68 a year ago. Tangible book value per common share was $11.86 compared to $11.41 a year ago.

For the year, the company's total interest income was $138,512,000 compared to $135,739,000 a year ago. Net interest income was $132,506,000 compared to $129,619,000 a year ago. Net interest income after provision for loan losses was $127,575,000 compared to $125,247,000 a year ago. Income before income taxes was $52,721,000 compared to $51,307,000 a year ago. Net income was $38,918,000 compared to $37,489,000 a year ago. Diluted earnings per common share was $1.30 compared to $1.25 a year ago. Return on average assets, annualized was 1.04% compared to 1.06% a year ago. Return on average equity, annualized was 8.01% compared to 8.08% a year ago. Return on average tangible common equity, annualized was 10.85% compared to 11.18% a year ago.

The company also announced total net charge-offs of $305,000 for the fourth quarter of 2016 compared to $382,000 a year ago. The net charge-offs for the quarter ended December 31, 2016 was due primarily to a partial charge-off of $224,000 on a commercial and industrial loan that became delinquent during the quarter.