HERITAGE FINANCIAL CORP /WA/HFWA

HERITAGE FINANCIAL CORP /WA/ Debt Disclosure

10-KFiled Feb 27, 20262 min read
Other Borrowings
(a) FHLB
At year end, advances from the FHLB were as follows:
December 31,
20252024
AmountAmount
(Dollars in thousands)
Fixed rate$20,000 $348,000 
Variable rate— 35,000 
Total
$20,000 $383,000 

At December 31, 2025, the Company had a fixed rate advance of $20.0 million with a rate of 4.16% which matures in 2026.
The FHLB functions as a member-owned cooperative providing credit for member financial institutions. Advances are made pursuant to several different programs. Each credit program has its own interest rate and range of maturities. Each advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. Limitations on the amount of advances are based on a percentage of the Bank's assets or on the FHLB’s assessment of the institution’s creditworthiness. The advances were collateralized by $1,306 million and $1,359 million of loans under a blanket lien arrangement at December 31, 2025 and December 31, 2024, respectively. At December 31, 2025, the Bank maintained a credit facility with the FHLB with available borrowing capacity of $1,286 million.
Advances from the FHLB may be collateralized by FHLB stock owned by the Bank, deposits at the FHLB, certain commercial and residential real estate loans, investment securities or other assets. In accordance with the pledge agreement, the Company must maintain unencumbered collateral in an amount equal to varying percentages ranging from 100% to 160% of outstanding advances depending on the type of collateral.
(b) FRB
The Bank maintains a credit facility with the FRB through the Discount Window with available borrowing capacity of $346.3 million as of December 31, 2025. The Bank had no FRB borrowings outstanding at December 31, 2025 and December 31, 2024. Any advances on the credit facility would be secured by either investment securities or certain types of the Bank's loans receivable.
(c) Federal Funds Purchased
The Bank maintains advance lines with four correspondent banks to purchase federal funds totaling $145.0 million as of December 31, 2025. The lines generally mature annually or renewed annually. As of December 31, 2025 and December 31, 2024, there were no federal funds purchased.
(d) Related Party Borrowings
The Company did not have any borrowings from related parties as of December 31, 2025 or December 31, 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 27, 2025
2022Feb 24, 2023
2021Feb 25, 2022
2019Feb 28, 2020
2018Mar 1, 2019
2017Feb 28, 2018
2016Mar 9, 2017
2015Mar 10, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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