Heritage Financial (HFWA) 10-K 10 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 19, 2016	Jun. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	HERITAGE FINANCIAL CORP /WA/
Entity Central Index Key	1,046,025
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 521,358,429
Entity Common Stock, Shares Outstanding		29,965,708

Consolidated Statements of Fina

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Cash on hand and in banks	$ 63,816	$ 74,028
Interest earning deposits	62,824	47,608
Cash and cash equivalents	126,640	121,636
Other interest earning deposits	6,719	10,126
Investment securities available for sale, at fair value	811,869	742,846
Investment securities held to maturity (fair value of $0 and $36,874, respectively)	0	35,814
Loans held for sale	7,682	5,582
Loans receivable, net	2,402,042	2,251,077
Allowance for loan losses	(29,746)	(27,729)
Total loans receivable, net	2,372,296	2,223,348
FDIC indemnification asset	0	1,116
Other real estate owned	2,019	3,355
Premises and equipment, net	61,891	64,938
Federal Home Loan Bank stock, at cost	4,148	12,188
Bank owned life insurance	60,876	35,176
Accrued interest receivable	10,469	9,836
Prepaid expenses and other assets	58,365	61,871
Other intangible assets, net	8,789	10,889
Goodwill	119,029	119,029
Total assets	3,650,792	3,457,750
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	3,108,287	2,906,331
Junior subordinated debentures	19,424	19,082
Securities sold under agreement to repurchase	23,214	32,181
Accrued expenses and other liabilities	29,897	45,650
Total liabilities	3,180,822	3,003,244
Stockholders’ equity:
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding at December 31, 2015 and 2014	0	0
Common stock, no par value, 50,000,000 shares authorized; 29,975,439 and 30,259,838 shares issued and outstanding at December 31, 2015 and 2014, respectively	359,451	364,741
Retained earnings	107,960
Accumulated other comprehensive income, net	2,559	3,378
Total stockholders’ equity	469,970	454,506
Total liabilities and stockholders’ equity	$ 3,650,792	$ 3,457,750

Consolidated Statements of Fin3

Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Investment securities held to maturity	$ 0	$ 36,874
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	29,975,439	30,259,838
Common stock, shares outstanding	29,975,439	30,259,838

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INTEREST INCOME:
Interest and fees on loans	$ 121,687	$ 110,437	$ 67,630
Taxable interest on investment securities	9,578	7,328	1,918
Nontaxable interest on investment securities	4,196	2,886	1,539
Interest and dividends on other interest earning assets	278	455	341
Total interest income	135,739	121,106	71,428
INTEREST EXPENSE:
Deposits	5,229	5,150	3,673
Junior subordinated debentures	827	458	0
Other borrowings	64	73	51
Total interest expense	6,120	5,681	3,724
Net interest income	129,619	115,425	67,704
Provision for loan losses	4,372	4,594	3,672
Net interest income after provision for loan losses	125,247	110,831	64,032
NONINTEREST INCOME:
Bargain purchase gain on bank acquisition	0	0	399
Service charges and other fees	14,179	11,143	5,936
Merchant Visa income, net	513	1,076	862
Change in FDIC indemnification asset	(497)	(2,543)	(181)
Gain on sale of investment securities, net	1,516	287	0
Gain on sale of loans, net	4,683	1,518	142
Gain on termination of FDIC shared-loss agreements	1,747	0	0
Gain on sale of Merchant Visa portfolio	2,198	0	0
Other income	7,929	4,986	2,493
Total noninterest income	32,268	16,467	9,651
NONINTEREST EXPENSE:
Compensation and employee benefits	58,134	52,634	31,612
Occupancy and equipment	15,846	13,406	9,724
Data processing	7,700	9,243	4,806
Marketing	3,066	2,502	1,598
Professional services	3,536	6,185	3,936
State and local taxes	2,378	1,976	1,150
Impairment loss on investment securities, net	0	45	38
Federal deposit insurance premium	2,046	1,718	1,001
Other real estate owned, net	1,007	638	309
Amortization of intangible assets	2,100	1,920	543
Other expense	10,395	9,112	4,798
Total noninterest expense	106,208	99,379	59,515
Income before income taxes	51,307	27,919	14,168
Income tax expense	13,818	6,905	4,593
Net income	$ 37,489	$ 21,014	$ 9,575
Basic earnings per common share (in usd per share)	$ 1.25	$ 0.82	$ 0.01
Diluted earnings per common share (in usd per share)	1.25	0.82	0.01
Dividends declared per common share (in usd per share)	$ 0.53	$ 0.50	$ 0.42

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net income	$ 37,489	$ 21,014	$ 9,575
Change in fair value of investment securities available for sale, net of tax of $(306), $2,531 and $(1,596), respectively	(559)	4,676	(2,965)
Reclassification adjustment of net gain from sale of investment securities available for sale included in income, net of tax of $(574), $(101) and $0, respectively	(1,067)	(186)	0
Accretion of other-than-temporary impairment on investment securities, net of tax of $4, $28 and $31, respectively	108	50	59
Reclassification of remaining unaccreted other-than-temporary impairment upon sale of investment securities held to maturity included in income, net of tax of $44, $0 and $0, respectively	81	0	0
Transfer of investment securities from held to maturity to available for sale, net of tax of $334, $0 and $0, respectively	618	0	0
Other comprehensive (loss) income	(819)	4,540	(2,906)
Comprehensive income	$ 36,670	$ 25,554	$ 6,669

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Change in fair value of securities available for sale, tax	$ (306)	$ 2,531	$ (1,596)
Reclassification adjustment of net gain from sale of investment securities included in income, tax	(574)	(101)	0
Accretion of other-than-temporary impairment on investment securities, tax	4	28	31
Reclassification of remaining unaccreted other-than-temporary impairment upon sale of investment securities held to maturity included in income, tax	44	0	0
Transfer of investment securities from held to maturity to available for sale, tax	$ 334	$ 0	$ 0

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands		Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss), Net
Beginning balance, shares at Dec. 31, 2012			15,118,000
Beginning balance at Dec. 31, 2012		$ 198,938	$ 121,832	$ 75,362	$ 1,744
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted and unrestricted stock awards issued, net of forfeitures, shares			100,000
Restricted and unrestricted stock awards issued, net of forfeitures		0
Stock option compensation expense		71	$ 71
Exercise of stock options (including excess tax benefits from nonqualified stock options), shares			17,000
Exercise of stock options (including excess tax benefits from nonqualified stock options)		176	$ 176
Restricted stock compensation expense		1,223	1,223
Excess tax benefits from restricted stock		(13)	$ (13)
Common stock repurchased, shares			(557,000)
Common stock repurchased		(8,825)	$ (8,825)
Net income		9,575		9,575
Other comprehensive income (loss), net of tax		(2,906)			(2,906)
Common stock issued in business combination, shares			1,533,000
Common stock issued for business combinations		24,195	$ 24,195
Cash dividends declared on common stock		(6,672)		(6,672)
Ending balance, shares at Dec. 31, 2013			16,211,000
Ending balance at Dec. 31, 2013		215,762	$ 138,659	78,265	(1,162)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted and unrestricted stock awards issued, net of forfeitures, shares			121,000
Restricted and unrestricted stock awards issued, net of forfeitures		0
Stock option compensation expense		$ 20	$ 20
Exercise of stock options (including excess tax benefits from nonqualified stock options), shares		84,189	84,000
Exercise of stock options (including excess tax benefits from nonqualified stock options)		$ 921	$ 921
Restricted stock compensation expense		1,395	1,395
Excess tax benefits from restricted stock		112	$ 112
Common stock repurchased, shares			(156,000)
Common stock repurchased		(2,601)	$ (2,601)
Net income		21,014		21,014
Other comprehensive income (loss), net of tax		4,540			4,540
Common stock issued in business combination, shares			14,000,000
Common stock issued for business combinations	[1]	226,235	$ 226,200
Cash dividends declared on common stock		(12,892)		(12,892)
Ending balance, shares at Dec. 31, 2014			30,260,000
Ending balance at Dec. 31, 2014		454,506	$ 364,741	86,387	3,378
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted and unrestricted stock awards issued, net of forfeitures, shares			118,000
Restricted and unrestricted stock awards issued, net of forfeitures		$ 0
Exercise of stock options (including excess tax benefits from nonqualified stock options), shares		61,529	61,000
Exercise of stock options (including excess tax benefits from nonqualified stock options)		$ 765	$ 765
Restricted stock compensation expense		1,555	1,555
Excess tax benefits from restricted stock		126	$ 126
Common stock repurchased, shares			(464,000)
Common stock repurchased		(7,736)	$ (7,736)
Net income		37,489		37,489
Other comprehensive income (loss), net of tax		(819)			(819)
Common stock issued for business combinations		0
Cash dividends declared on common stock		(15,916)
Ending balance, shares at Dec. 31, 2015			29,975,000
Ending balance at Dec. 31, 2015		$ 469,970	$ 359,451	$ 107,960	$ 2,559
[1]	The amount of common stock issued in connection with the Washington Banking Merger is net of $489,000 of issuance costs.

Consolidated Statement of Stoc8

Consolidated Statement of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	Oct. 21, 2015	Jul. 22, 2015	Apr. 22, 2015	Jan. 28, 2015	Oct. 23, 2014	Jul. 24, 2014	Mar. 27, 2014	Jan. 29, 2014	Oct. 23, 2013	Jul. 23, 2013	Apr. 24, 2013	Jan. 30, 2013	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Stockholders' Equity [Abstract]
Issuance costs																						$ 489
Cash dividends declared on common stock (in usd per share)	$ 0.11	$ 0.11	$ 0.11	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.08	$ 0.08	$ 0.08	$ 0.08	$ 0.08	$ 0.21	$ 0.11	$ 0.11	$ 0.10	$ 0.25	$ 0.09	$ 0	$ 0.16	$ 0.53	$ 0.50	$ 0.42

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014		Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 37,489	$ 21,014		$ 9,575
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	13,967	12,882		5,411
Changes in net deferred loan costs, net of amortization	(1,866)	(1,733)		574
Provision for loan losses	4,372	4,594		3,672
Net change in accrued interest receivable, FDIC indemnification asset, prepaid expenses and other assets, accrued expenses and other liabilities	(78)	13,236		9,023
Restricted stock compensation expense	1,555	1,395		1,223
Stock option compensation expense	0	20		71
Net excess tax (benefit) deficiencies from exercise of stock options and vesting of restricted stock	(140)	(118)		37
Amortization of intangible assets	2,100	1,920		543
Bargain purchase gain on bank acquisition	0	0		(399)
Gain on sale of investment securities, net	(1,516)	(287)		0
Impairment loss on investment securities, net	0	45		38
Origination of loans held for sale	(132,932)	(57,656)		(6,784)
Gain on sale of loans, net	(4,683)	(1,518)		(142)
Proceeds from sale of loans	135,515	57,515		8,602
Earnings on bank owned life insurance	(1,354)	(455)		(70)
Valuation adjustment on other real estate owned	529	0		371
Loss (gain) on sale of other real estate owned, net	97	(23)		(264)
Gain on termination of FDIC shared-loss agreements	(1,747)	0		0
Loss (gain) on sale or write-off of furniture, equipment and leasehold improvements	89	505		(584)
Net cash provided by operating activities	51,397	51,336		30,897
Cash flows from investing activities:
Loans originated, net of principal payments	(154,111)	(21,651)		(43,140)
Maturities of other interest earning deposits	3,346	5,475		1,987
Maturities, calls and payments of investment securities available for sale	124,592	66,876		51,443
Maturities, calls and payments of investment securities held to maturity	5,221	3,284		4,192
Purchase of investment securities available for sale	(290,499)	(344,146)		(43,627)
Purchase of investment securities held to maturity	0	(3,294)		(7,414)
Purchase of premises and equipment	(1,821)	(3,940)		(5,205)
Purchase of bank owned life insurance	(25,019)	0		0
Purchase of other real estate owned	(188)	0		0
Proceeds from sales of other real estate owned	3,555	9,914		6,003
Proceeds from sales of investment securities available for sale	116,332	156,994		0
Proceeds from sales of investment securities held to maturity	972	0		0
Proceeds from redemption of FHLB stock	8,040	617		208
Proceeds from sale of premises and equipment	815	1,170		700
Investment in new market tax credit partnership	0	(25,000)		0
Investment in low-income housing tax credit partnership	(746)	0		0
Net cash used for termination of FDIC shared-loss agreements	(7,110)	0		0
Net cash received from acquisitions	0	32,052		18,260
Net cash used in investing activities	(216,621)	(121,649)		(16,593)
Cash flows from financing activities:
Net increase in deposits	201,956	73,248		13,763
Common stock cash dividends paid	(15,916)	(12,892)		(6,672)
Net (decrease) increase in securities sold under agreement to repurchase	(8,967)	2,761		13,399
Proceeds from exercise of stock options	751	915		200
Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock	140	118		(37)
Repurchase of common stock	(7,736)	(2,601)		(8,825)
Net cash used in financing activities	170,228	61,549		11,828
Net increase (decrease) in cash and cash equivalents	5,004	(8,764)		26,132
Cash and cash equivalents at beginning of year	121,636	130,400		104,268
Cash and cash equivalents at end of year	126,640	121,636		130,400
Supplemental disclosures of cash flow information:
Cash paid for interest	6,324	5,422		3,678
Cash paid for income taxes	15,286	9,786		3,574
Supplemental non-cash disclosures of cash flow information:
Transfers of loans receivable to other real estate owned	2,657	1,566		2,974
Seller-financed sale of other real estate owned	0	0		250
Investment in low income housing tax credit partnership and related funding commitment	0	3,817		0
Purchases of investment securities available for sale not settled at year end	(1,288)	1,288		0
Common stock issued for business combinations	0	226,235	[1]	24,195
Stock issuance costs in connection with business combinations	0	489		0
Transfer from investment securities held to maturity to available for sale	29,400	0		0
Receivable due from bank owned life insurance contract	445	0		0
Assets acquired (liabilities assumed) in acquisitions:
Other interest earning deposits	0	0		14,869
Investment securities available for sale	0	458,312		34,197
Investment securities held to maturity	0	0		22,908
Loans held for sale	0	3,923		0
Loans receivable	0	895,978		168,580
Loans receivable, covered at merger date	0	107,050		0
Other real estate owned	0	7,121		2,279
Premises and equipment	0	31,776		6,772
Federal Home Loan Bank stock	0	7,064		454
FDIC indemnification asset	0	7,174		0
Accrued interest receivable	0	4,943		697
Bank owned life insurance	0	32,519		0
Prepaid expenses and other assets	0	14,852		7,135
Other intangible assets	0	11,194		1,072
Deposits	0	(1,433,894)		(267,455)
Junior subordinated debentures	0	(18,937)		0
Accrued expenses and other liabilities	$ 0	$ (24,067)		$ (1,528)
[1]	The amount of common stock issued in connection with the Washington Banking Merger is net of $489,000 of issuance costs.

Description of Business, Basis

Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements	Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements (a) Description of Business Heritage Financial Corporation ("Heritage" or the “Company”) is a bank holding company that was incorporated in the State of Washington in August 1997. The Company is primarily engaged in the business of planning, directing and coordinating the business activities of its wholly-owned subsidiary, Heritage Bank (the “Bank”). The Bank is a Washington-chartered commercial bank and its deposits are insured by the FDIC. The Bank is headquartered in Olympia, Washington and conducts business from its 67 branch offices as of December 31, 2015 located throughout Washington State and the greater Portland, Oregon area. The Bank’s business consists primarily of commercial lending and deposit relationships with small businesses and their owners in its market areas and attracting deposits from the general public. The Bank also makes real estate construction and land development loans and consumer loans and originates first mortgage loans on residential properties primarily located in its market area. The Company has expanded its footprint through mergers and acquisitions. The largest of these transactions was the strategic merger with Washington Banking Company (“Washington Banking”) and its wholly owned subsidiary bank, Whidbey Island Bank ("Whidbey"). Effective May 1, 2014, Washington Banking merged with and into Heritage and Whidbey merged with and into Heritage Bank and this transaction is referred to herein as the "Washington Banking Merger". In connection with the Washington Banking Merger, Heritage also acquired as a subsidiary the Washington Banking Master Trust, a Delaware statutory business trust ("Master Trust"). Pursuant to the merger agreement, Heritage assumed the performance and observance of the covenants to be performed by Washington Banking under an indenture relating to $25.0 million in trust preferred securities issued in 2007 and the due and punctual payment of the principal of and premium and interest on such trust preferred securities. For additional information, see Note (11) Junior Subordinated Debentures. (b) Basis of Presentation The accounting and reporting policies of the Company and its subsidiaries conform to U.S. Generally Accepted Accounting Principles (“GAAP”). In preparing the Consolidated Financial Statements management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany balances and transactions among the Company and the Bank have been eliminated in consolidation. For financial reporting purposes, the Company's investment in the Master Trust is accounted for under the equity method and is included in prepaid expenses and other assets on the Company's Consolidated Statements of Financial Condition. The junior subordinated debentures issued and guaranteed by the Company and held by the Master Trust are reflected as liabilities on the Company's Consolidated Statements of Financial Condition. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Specifically, the Company has eliminated the classification of "noncovered" and "covered" loans from the Consolidated Financial Statements based on the termination of the FDIC shared-loss agreements during the year ended December 31, 2015. For more information on the termination agreement, see Note (6) FDIC Indemnification Asset. Accordingly, all loans receivable previously reported as "noncovered" and those previously reported as "covered" by FDIC shared-loss agreements have been combined and reclassified as "loans receivable" for all periods presented. Reclassifications had no effect on the prior years' net income or stockholders’ equity. (c) Significant Accounting Policies Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes cash on hand and in banks, interest earning deposits with original maturities of 90 days or less, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, other interest bearing deposits, federal funds sold and repurchase agreements. Investment Securities The Company identifies investments as held to maturity or available for sale at the time of acquisition. Securities are classified as held to maturity when the Company has the ability and positive intent to hold them to maturity. Securities classified as available for sale are available for future liquidity requirements and may be sold prior to maturity. During the year ended December 31, 2015, the Company transferred all of its investment securities classified as held to maturity to available for sale. See Note (3) Investment Securities for additional information. Investment securities held to maturity were recorded at amortized cost. Securities available for sale are carried at fair value. Interest income includes amortization of purchase premiums or accretion of purchase discounts using the interest method. Unrealized gains and losses on securities available for sale are generally excluded from earnings and are reported in other comprehensive income (loss), net of related income taxes. Realized gains and losses on sale of investment securities are computed on the specific identification method. Transfers of securities between the available for sale and held to maturity categories are accounted for at fair value. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Although these evaluations involve significant judgment, an unrealized loss in the fair value of a debt security is generally deemed to be temporary when the fair value of the security is below the carrying value primarily due to changes in interest rates, there has not been significant deterioration in the financial condition of the issuer, and it is not more likely than not that the Company will be required to, nor does it have the intent to sell the security before the anticipated recovery of its remaining carrying value. If any of these criteria is not met, the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. If any of these criteria are not met, the entire difference between amortized cost and fair value is recognized as impairment through earnings, and a new cost basis is established for the security. Continued deterioration of market conditions could result in additional impairment losses recognized within the investment portfolio. Other factors that may be considered in determining whether a decline in the value of either a debt or an equity security is “other than temporary” include ratings by recognized rating agencies; actions of commercial banks or other lenders relative to the continued extension of credit facilities to the issuer of the security; the financial condition, capital strength and near-term prospects of the issuer and recommendations of investment advisors or market analysts. Loans Held for Sale Mortgage loans held for sale are carried at the lower of amortized cost or fair value by loan type. Any loan that management does not have the intent and ability to hold for the foreseeable future or until maturity or payoff is classified as held for sale at the time of origination, purchase or securitization, or when such decision is made. Unrealized losses on such loans are recorded as a valuation allowance and included in income. Loans Receivable and Loan Commitments Loans receivable include loans originated by the Bank as well as loans acquired in business combinations. Loans acquired in a business combination are designated as “purchased” loans. These loans are recorded at their fair value at acquisition date, factoring in credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for loan losses is not carried over or recorded as of the acquisition date. Loans purchased with evidence of credit deterioration since origination for which it is probable that all contractually required payments will not be collected are accounted for under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“FASB ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . These loans are identified as purchased credit impaired ("PCI") loans. In situations where such loans have similar risk characteristics, loans may be aggregated into pools to estimate cash flows. A pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flow expectation. Expected cash flows at the acquisition date in excess of the fair value of loans are considered to be accretable yield, which is recognized as interest income over the life of the loan or pool using a level yield method if the timing and amount of the future cash flows of the loan or pool is reasonably estimable. The cash flows expected over the life of the PCI loan or pool are estimated quarterly using an internal cash flow model that projects cash flows and calculates the carrying values of the loans or pools, book yields, effective interest income and impairment, if any, based on loan or pool level events. Assumptions as to default rates, loss severity and prepayment speeds are utilized to calculate the expected cash flows. To the extent actual or projected cash flows are less than previously estimated, additional provisions for loan losses on the purchased loan portfolios will be recognized immediately into earnings. To the extent actual or projected cash flows are more than previously estimated, the increase in cash flows is recognized immediately as a recapture of provision for loan losses up to the amount of any provision previously recognized for that loan or pool, if any, then prospectively recognized in interest income as a yield adjustment. Any disposals of a loan in a pool, including sale of a loan, payment in full or foreclosure results in the removal of the loan from the loan pool at the carrying amount. Loans accounted for under FASB ASC 310-30 are generally considered accruing and performing loans as the loans accrete interest income over the estimated life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans and interest income may be recognized on a cash basis or all cash payments may be accounted for a as a reduction of the principal amount outstanding. Loans purchased that are not accounted for under FASB ASC 310-30 are accounted for under FASB ASC 310-20, Receivables—Nonrefundable fees and Other Costs . These loans are identified as non-PCI loans, and are initially recorded at their fair value, which is estimated using an internal cash flow model and assumptions similar to the FASB ASC 310-30 loans. The difference between the estimated fair value and the unpaid principal balance at acquisition date is recognized as interest income over the life of the loan using an effective interest method for non-revolving credits or a straight-line method, which approximates the effective interest method, for revolving credits. Any unrecognized discount for a loan that is subsequently repaid will be recognized immediately into income. Loans are generally recorded at the unpaid principal balance, net of premiums, unearned discounts and net deferred loan origination fees and costs. The premiums and unearned discounts may include values determined in purchase accounting. Interest on loans is calculated using the simple interest method based on the daily balance of the principal amount outstanding and is credited to income as earned. Loans are considered past due or delinquent when principal or interest payments are past due 30 days or more. Covered Loans : Purchased loans subject to FDIC shared-loss agreements were historically identified as “covered” on the Consolidated Financial Statements. The FDIC shared-loss agreements were terminated during the year ended December 31, 2015 and as such the covered designation was removed. For further information see Note (6) FDIC Indemnification Asset. The covered loans included the majority of loans from the Company's acquisition of Cowlitz Bank and certain loans from the Washington Banking Merger, which included loans from Washington Banking's acquisitions of City Bank and North County Bank. The same accounting principles that apply to loans receivable applied to covered loans receivable, with the added benefit of shared-loss agreements. Nonaccrual Loans : Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Delinquent loans may remain on accrual status between 30 days and 89 days past due. The accrual of interest is generally discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Loans are placed on nonaccrual at an earlier date if collection of the contractual principal or interest is doubtful. All interest accrued but not collected on loans deemed nonaccrual during the period is reversed against interest income in that period. The interest payments received on nonaccrual loans are generally accounted for on the cost-recovery method whereby the interest payment is applied to the principal balances. Loans may be returned to accrual status when improvements in credit quality eliminate the doubt as to the full collectability of both interest and principal and a period of sustained performance has occurred. Substantially all loans that are nonaccrual are also considered impaired. Income recognition on impaired loans conforms to that used on nonaccrual loans. Loans are charged-off if collection of the contractual principal or interest as scheduled in the loan agreement is doubtful. The Company's policies for placing loans on nonaccrual status, recording payments received on nonaccrual loans, resuming accrual of interest, determining past due or delinquency status and charging off uncollectible loans generally do not differ by loan segments or classes. However, credit card loans and other consumer loans are typically charged-off no later than 180 days past due. Impaired Loans : A loan is considered impaired when, based on current information and events, it is probable the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrowers, including length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amounts of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient the loan’s observable market price or the fair value of the collateral (less cost to sell) if the loan is collateral dependent. Income recognition on impaired loans conforms to that used on nonaccrual loans. Troubled Debt Restructures : A troubled debt restructured loan (“TDR”) is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that it would not otherwise consider. These concessions may include changes of the interest rate, forbearance of the outstanding principal or accrued interest, extension of the maturity date, delay in the timing of the regular payment, or any other actions intended to minimize potential losses. The Bank does not forgive principal for a majority of its TDRs, but in those situations where principal is forgiven, the entire amount of such principal forgiveness is immediately charged off to the extent not done so prior to the modification. The Bank also considers insignificant delays in payments when determining if a loan should be classified as a TDR. The Company has implemented more stringent definitions of concessions and impairment measures for PCI loans which are not in pools as these loans have known credit deteriorations and are generally accreting income at a lower discounted rate as compared to the contractual note rate based on the guidance of FASB ASC 310-30. Modifications of PCI loans which are not in pools are considered TDRs if they result in a decrease in expected cash flows when compared to the pre-modification expected ash flows, without any other changes to the agreement to consider. A loan that has been placed on nonaccrual status that is subsequently restructured will usually remain on nonaccrual status until the borrower is able to demonstrate repayment performance in compliance with the restructured terms for a sustained period, typically for six months. A restructured loan may return to accrual status sooner based on other significant events or mitigating circumstances. A loan that has not been placed on nonaccrual status may be restructured and such loan may remain on accrual status after such restructuring. In these circumstances, the borrower has made payments before the restructuring and is expected to continue to perform after the restructuring. Generally, this type of restructuring involves a reduction in the loan interest rate and/or a change to interest-only payments for a period of time. The restructured loan is considered impaired despite the accrual status and a specific valuation allowance, if any, is calculated in the manner previously described. A TDR is considered defaulted if, during the 12-month period after the restructure, the loan has not performed in accordance to the restructured terms. Defaults include loans whose payments are 90 days or more past due and loans whose revised maturity date passed and no further modifications will be granted for that borrower. A loan may subsequently be excluded from the TDR disclosures if: (i) the restructured interest rate was greater than or equal to the interest rate of a new loan with comparable risk at the time of the restructure, and (ii) the loan is no longer impaired based on the terms of the restructured agreement. The Bank's policy is that the borrower must demonstrate a sustained period, typically six consecutive months, of payments in accordance with the modified loan before it can be reviewed for removal from the TDR disclosure under the second criteria. However, the loan must be reported as a TDR in at least one annual report on Form 10-K. Once a loan has been classified as a TDR, it will continue to be disclosed as an impaired loan until paid off or charged-off, even if the loan subsequently is no longer disclosed as a TDR. Unfunded Loan Commitments : Unfunded loan commitments are generally related to the unused portion of the total commitment of a loan or providing credit facilities to clients of the Bank and are not actively traded financial instruments. These unfunded commitments are disclosed as financial instruments with off-balance sheet risk in Note (15) Commitments and Contingencies and Note (19) Fair Value in the Notes to Consolidated Financial Statements. Loan Fees and Costs Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment of the yields of the loans over their contractual lives, adjusted for prepayment of the loans, using the effective interest method or the straight-line method, when the straight-line method approximates the effective interest method. In the event loans are sold, the unamortized net deferred loan origination fees or costs are recognized as a component of the gains or losses on the sales of loans. Allowance for Loan Losses Allowance for Loan Losses : The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance for loan losses on loans designated as non-PCI loans is similar to the methodology described below except that for non-PCI loans, the remaining unaccreted discounts resulting from the fair value adjustments recorded at the time the loans were purchased are additionally factored into the allowance methodology. The allowance for loan losses on PCI loans is described in the “Allowance for Loan Losses on Purchased Credit Impaired Loans” section below. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses from risks inherent in the loan portfolio. The Company’s allowance for loan losses methodology includes allowance allocations calculated in accordance with FASB ASC 310, Receivables and allowance allocations calculated in accordance with FASB ASC 450, Contingencies . Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to nonaccrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for loan losses also reflects all actions taken on all loans for a particular period. Therefore, the amount of the provision reflects not only the necessary increases in the allowance for loan losses related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in specific valuation allowances for impaired loans or loan pools. Losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The level of the allowance reflects management’s continuing evaluation of known and inherent risks in the loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. Loans which management determines are impaired are individually evaluated for impairment, and specific valuation allowances are recorded, if any, on these loans based on the methodology previously described. Loans that are determined not to meet management's definition of impaired are collectively evaluated for impairment based on (i) historical loss factors determined in accordance with FASB ASC 450 based on historical loan loss experience for similar loans with similar characteristics and trends; and (ii) environmental loss factors that reflect the impact of current conditions, as determined in accordance with FASB ASC 450 based on general economic conditions and other qualitative risk factors both internal and external to the Company. The historical loss factors and environmental loss factors are combined and multiplied against the outstanding principal balances of loans in pools of similar loans with similar characteristics. The Company evaluates specific loans for credit quality indicators and performs regular analysis and evaluation of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor’s ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the loan officer level for all loans. When a loan is performing but has an assigned risk grade other than pass, the loan officer analyzes the loan to determine an appropriate monitoring and collection strategy. When a loan is nonperforming or has been classified as a nonaccrual loan, a member from the special assets department will analyze the loan to determine if it is impaired. If the loan is considered impaired, the special assets department will evaluate the need for a specific valuation allowance on the loan. Specific valuation allowances are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies and economic conditions affecting the borrower’s industry, among other things. Historical loss factors are calculated based on the historical loss experience and recovery experience of specific classes of loans. The Company calculates historical loss ratios for the classes of loans based on the proportion of actual charge-offs and recoveries experienced to the total loans in the pool for a rolling twelve quarter average. Environmental loss factors are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) levels of and trends in delinquencies and impaired loans; (ii) levels of and trends in charge-offs and recoveries; (iii) trends in volume and terms of loans (iv) effects of changes in risk selection and underwriting standards, and other changes in lending policies, procedures, and practices; (v) experience, ability, and depth of lending management and other relevant staff; (vi) national and local economic trends and conditions; (vii) other external factors such as competition, legal, and regulatory; (viii) effects of changes in credit concentrations, and (ix) other factors. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Each component is determined to be on a scale of risk. The results are then utilized in a matrix to determine an appropriate environmental loss factor for each class of loan. An additional environmental factor is added after the calculated matrix factor if the specific loan is risk graded worse than a rating of "watch". The allowance for loan losses evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. While management utilizes its best judgment and information available to recognize losses on loans, future additions to the allowance may be necessary based on declines in local and national economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to make adjustments to the allowance based on their judgments about information available to them at the time of their examinations. The Company believes the allowance for loan losses is appropriate given all of the above considerations. Allowance for Loan Losses on Purchased Credit Impaired Loans: The PCI loans acquired in the Company's mergers and acquisitions are subject to the Company’s internal and external credit review. Under the accounting guidance of FASB ASC 310-30, the allowance for loan losses on PCI loans is measured at each financial reporting period, or measurement date, based on expected cash flows. If and when credit deterioration, or decreases in expected cash flows initially estimated, occurs subsequent to the acquisition date, a provision for loan losses will be charged to earnings as of the measurement date. Prior to the termination of the FDIC shared-loss agreements, a provision for loan losses on PCI loans was charged to earnings for the full amount without regard to the FDIC shared-loss agreements, and the portion of the loss reimbursable from the FDIC was recorded in noninterest income and increased the FDIC indemnification asset. Allowance for Losses on Unfunded Commitments: The Bank is also party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the disbursed amounts recognized in the Consolidated Statements of Financial Condition. The Company has a policy in which it evaluates the risk on a quarterly basis, and provides for an allowance for credit losses, as necessary. The methodology is similar to the allowance for loan losses, and includes an estimate of the probability of drawdown of the loan commitment. Based on its analysis, the Company has recorded an allowance for off-balance sheet financial instruments of $170,000 as of both December 31, 2015 and 2014 . This allowance is reported within accrued expenses and other liabilities on the Company's Consolidated Statements of Financial Condition. Mortgage Banking Operations Prior to the second quarter of 2013 and since the second quarter 2014, the Company sells one-to-four family residential loans on a servicing released basis and recognizes a cash gain or loss. A cash gain or loss is recognized to the extent that the sales proceeds of the loans sold differ from the net book value at the time of sale. Income from one-to-four family residential loans brokered to other lenders is recognized into income on date of loan closing. Commitments to sell one-to-four family residential loans are made primarily during the period between the taking of the loan application and the closing of the loan. The timing of making these sale commitments is dependent upon the timing of the borrower’s election to lock-in the mortgage interest rate and fees prior to loan closing. Most of these sale commitments are made on a best-efforts basis whereby the Bank is only obligated to sell the loan if the loan is approved and closed by the Bank. Commitments to fund one-to-four family residential loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates between the date the interest on the loan was locked and the balance sheet date. The Company enters into forward commitments for the future delivery of one-to-four family residential loans when interest rate locks are entered into, in order to hedge the interest rate risk resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in other income. The fair value of these derivative instruments was not significant at December 31, 2015 and 2014. FDIC Indemnification Asset The FDIC indemnification asset represented the present value of the estimated losses on loans to be reimbursed by the FDIC. The termination of the FDIC shared-loss agreements during the year ended December 31, 2015 eliminated this asset. See Note (6) FDIC Indemnification Asset for further information on the termination agreement. The FDIC indemnification asset was measured at estimated fair value at acquisition dates on the same basis as the loans. The present value was calculated using the shorter of the shared-loss agreement terms or the life of the loan. Under the terms of the FDIC shared-loss agreements, the FDIC absorbed 80% of losses and received 80% of loss recoveries for the loans during the terms of the agre

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Business Combinations	Business Combinations There were no acquisitions or mergers completed during the year ended December 31, 2015. During the year ended December 31, 2014, the Company completed the merger of Washington Banking Company, referred to as the "Washington Banking Merger". During the year ended December 31, 2013, the Company completed the acquisitions of Northwest Commercial Bank and Valley Community Bancshares Inc., jointly referred to as the "NCB and Valley Acquisitions." During the year ended December 31, 2013, the Company also completed the merger of its wholly-owned bank subsidiary Central Valley Bank with and into Heritage Bank. The merger of Central Valley Bank with and into Heritage Bank was a common control merger which had no accounting impact on the consolidated Company. Washington Banking Merger On October 23, 2013, the Company, along with the Bank, and Washington Banking and its wholly owned subsidiary bank, Whidbey, jointly announced the signing of a merger agreement for the Washington Banking Merger. The Washington Banking Merger was effective on May 1, 2014. Pursuant to the terms of the Washington Banking Merger, Washington Banking branches adopted the Heritage Bank name in all markets, with the exception of six branches in the Whidbey Island markets which have continued to operate using the Whidbey Island Bank name. The primary reasons for the merger were to expand the Company's geographic footprint consistent with its ongoing growth strategy and to achieve operational scale and realize efficiencies of a larger combined organization. Under the terms of the merger agreement, Washington Banking shareholders received 0.89000 shares of Heritage common stock and $2.75 in cash for each share of Washington Banking common stock. The terms of the merger agreement also stipulated immediate vesting of the Washington Banking options and restricted stock awards units. At April 30, 2014, the number of Washington Banking common shares outstanding was 15,587,154 . The closing price of Heritage common stock was $16.16 as of April 30, 2014. The total consideration transferred by the Company in conjunction with the Washington Banking Merger was $269.6 million and the total number of Heritage shares of common stock issued were 14,000,178 . The Company also incurred $489,000 in capitalized stock issuance costs. The total consideration transferred in the Washington Banking Merger consisted of the following: Washington Banking (In thousands) Consideration transferred Cash paid (1) $ 42,895 Fair value of common shares issued (2) 224,151 Fair value of restricted stock unit awards (3) 2,092 Fair value of common stock options 481 Total consideration transferred $ 269,619 (1) Includes $3,000 of cash paid due to fractional shares and $27,000 of cash paid to dissenters. (2) Total of 13,870,716 shares issued. Excludes 1,686 shares held by dissenting shareholders and paid in cash and 165 fractional shares paid in cash. (3) Total number of converted shares was 129,462 . Fair value includes 26,783 shares which were forfeited by the Washington Banking shareholders to pay applicable taxes, totaling fair value of $433,000 . The Washington Banking Merger resulted in $89.7 million of goodwill. This goodwill is not deductible for tax purposes. The transaction qualified as a tax-free reorganization for U.S. federal income tax purposes and Washington Banking shareholders did not recognize any taxable gain or loss in connection with the share exchange and the stock consideration received. The Company did no t incur any merger-related costs during the year ended December 31, 2015. During the years ended December 31, 2014 and 2013, the Company incurred Washington Banking Merger-related costs (including system conversion costs) of approximately $9.1 million and $890,000 , respectively. Valley Community Bancshares On March 11, 2013, the Company entered into a definitive agreement to acquire Valley Community Bancshares ("Valley") and its wholly-owned subsidiary, Valley Bank, both headquartered in Puyallup, Washington. The Valley Acquisition was completed on July 15, 2013. Pursuant to the terms of the merger agreement, the shareholders of Valley common stock received $19.50 per share in cash and 1.3611 shares of Heritage common stock per Valley share. The merger consideration for Valley consisted of cash and stock, with $22.0 million paid in cash by the Company and 1,533,267 shares of the Company’s common stock being issued with fair value of $24.2 million . The Company also recognized $157,000 in capitalized costs related to the issuance of its securities. The Valley Acquisition resulted in $16.4 million of goodwill. This goodwill is not deductible for tax purposes. During the year ended December 31, 2015, the Company did no t incur any Valley Acquisition-related costs. During the years ended December 31, 2014 and 2013, the Company incurred Valley Acquisition-related costs (including system conversion costs) of approximately $443,000 and $2.1 million , respectively. Northwest Commercial Bank On September 14, 2012, the Company and Heritage Bank entered into a definitive agreement to acquire Northwest Commercial Bank ("NCB") headquartered in Lakewood, Washington. NCB was a full service commercial bank that operated two branch locations in Lakewood and Auburn, Washington. Prior to the closing of the transaction, NCB redeemed its outstanding preferred stock of approximately $2.0 million issued to the U.S. Department of Treasury in connection with its participation in the Troubled Asset Relief Program Capital Purchase Plan. The NCB Acquisition was completed on January 9, 2013 with the merger of NCB with and into Heritage Bank. In connection with the NCB Acquisition, the Company paid cash consideration of $3.0 million , or $5.50 per NCB share, to NCB shareholders on January 9, 2013. In addition, pursuant to the merger agreement, the NCB shareholders had the ability to potentially receive an additional cash payment based on an earn-out structure from the sale of a NCB asset included in “other real estate owned.” This contingent payment was factored into the NCB liabilities assumed by Heritage Bank as of the January 9, 2013 acquisition date. This asset was sold by Heritage Bank in June 2013, and the $491,000 of proceeds from the sale were paid to the NCB shareholders in July 2013. The payment of these proceeds did not impact the recorded bargain purchase gain on bank acquisition of $399,000 . During the years ended December 31, 2015 and 2014, the Company did no t incur any NCB Acquisition-related costs. During the year ended December 31, 2013, the Company incurred NCB Acquisition-related costs (including system conversion costs) of approximately $794,000 . Business Combination Accounting The above mentioned merger and acquisitions constitute business acquisitions as defined by FASB ASC 805, Business Combinations . FASB ASC 805 establishes principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired and the liabilities assumed. Heritage was considered the acquirer in the merger and acquisitions. Accordingly, the preliminary estimates of fair values of the acquired banks' assets, including the identifiable intangible assets, and the assumed liabilities in the merger and acquisitions were measured and recorded as of the respective effective dates. The fair value estimates of the assets acquired and liabilities assumed in the Washington Banking Merger were as follows: Washington Banking (In thousands) Assets Cash and cash equivalents $ 74,947 Investment securities available for sale 458,312 Loans held for sale 3,923 Loans receivable 895,978 Loans receivable, covered at merger date 107,050 FDIC indemnification asset 7,174 Other real estate owned ($5,122 covered by FDIC shared-loss agreements at May 1, 2014 merger date) 7,121 Premises and equipment 31,776 Federal Home Loan Bank stock 7,064 Bank owned life insurance 32,519 Accrued Interest Receivable 4,943 Other intangible assets 11,194 Prepaid expenses and other assets 14,852 Total assets acquired 1,656,853 Liabilities Deposits 1,433,894 Junior subordinated debentures 18,937 Accrued expenses and other liabilities 24,067 Total liabilities assumed 1,476,898 Net assets acquired $ 179,955 A summary of the net assets purchased, the fair value adjustments and resulting goodwill recognized from the Washington Banking Merger are presented in the following table. Goodwill on mergers represents the excess of the consideration transferred over the estimated fair value of the net assets acquired and liabilities assumed. Washington Banking (In thousands) Cost basis of net assets on merger date $ 181,782 Less: Consideration transferred (269,619 ) Fair value adjustments: Loans held for sale 86 Loans receivable (12,811 ) Loans receivable, covered at merger date 6,384 FDIC indemnification asset 357 Other real estate owned 387 Premises and equipment (1,540 ) Other intangible assets 10,216 Prepaid expenses and other assets (6,416 ) Deposits (1,737 ) Junior subordinated debentures 6,837 Accrued expenses and other liabilities (3,590 ) Goodwill recognized $ (89,664 ) The operating results of the Company for the years ended December 31, 2015, 2014 and 2013 include the operating results produced by the net assets acquired in the merger and acquisitions since the respective effective dates. Disclosure of the amount of revenue and net income (excluding acquisition-related costs) of Washington Banking, Valley and NCB since the effective dates included in the Company's Consolidated Statements of Income is impracticable due to the integration of the operations and accounting for the merger and acquisitions. The Company considered the pro forma requirements of FASB ASC 805 and deemed it not necessary to provide pro forma financial statements as required under the standard for the NCB and Valley Acquisitions as they were not material to the Company. The Company believes that the historical NCB and Valley operating results are not considered of enough significance to be meaningful to the Company’s results of operations. The Company also considered the pro forma requirements of FASB ASC 805 and deemed it necessary for the Washington Banking Merger. The following table presents certain pro forma information, for illustrative purposes only, for the years ended December 31, 2014 and 2013 as if the Washington Banking Merger had occurred on January 1, 2013. The estimated pro forma information combines the historical results of Washington Banking with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the Washington Banking Merger occurred on January 1, 2013. In particular, no adjustments have been made to eliminate the impact of the Washington Banking loans previously accounted for under ASC 310-30 that may have been necessary if these loans had been recorded at fair value at January 1, 2014. The pro forma information also does not consider any changes to the provision for loan losses resulting from recorded loans at fair value. Additionally, Heritage expects to achieve further operating savings and other business synergies, including interest income growth, as a result of the Washington Banking Merger which are not reflected in the pro forma amounts in the following table. As a result, actual amounts will differ from the pro forma information presented. Pro Forma for the Years Ended December 31, 2014 2013 (In thousands, except per share amounts) Net interest income $ 144,470 $ 147,267 Net income $ 35,758 $ 30,718 Basic earnings per common share $ 1.19 $ 1.04 Diluted earnings per common share $ 1.18 $ 1.04

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Investment Securities	Investment Securities The Company’s investment policy is designed primarily to provide and maintain liquidity, generate a favorable return on assets without incurring undue interest rate and credit risk, and complement the Bank’s lending activities. Securities are classified as either available for sale or held to maturity when acquired. During the quarter ended December 31, 2015, the Company transferred all of its investment securities classified as held to maturity to available for sale. Based on the changes in the current rate environment, management made this change in an effort to manage more effectively the investment portfolio, including subsequently selling securities that were formerly classified as held to maturity. The amortized cost of the securities that were transferred totaled $29.4 million and the pre-tax net unrealized gain related to these securities totaled $952,000 on the date of the transfer. As a result of the transfer and subsequent sales, the Company believes its held to maturity classification process has been compromised and careful evaluation and analysis will be required going forward in determining when circumstances are suitable for management to assert with a great degree of credibility that it has the intent and ability to hold investments to maturity. (a) Securities by Type and Maturity The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities available for sale at the dates indicated were as follows: Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2015 U.S. Treasury and U.S. Government-sponsored agencies $ 35,618 $ 145 $ (186 ) $ 35,577 Municipal securities 216,352 4,826 (185 ) 220,993 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 546,654 2,092 (2,614 ) 546,132 Corporate obligations 9,252 — (139 ) 9,113 Mutual funds and other equities 45 9 — 54 Total $ 807,921 $ 7,072 $ (3,124 ) $ 811,869 December 31, 2014 U.S. Treasury and U.S. Government-sponsored agencies $ 21,414 $ 44 $ (31 ) $ 21,427 Municipal securities 170,082 3,139 (184 ) 173,037 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 539,859 4,015 (1,475 ) 542,399 Corporate obligations 4,034 — (24 ) 4,010 Mutual funds and other equities 1,956 17 — 1,973 Total $ 737,345 $ 7,215 $ (1,714 ) $ 742,846 Due to the transfer of the held to maturity investments discussed above, there were no amortized costs, gross unrecognized gains, gross unrecognized losses or fair values of investment securities held to maturity at December 31, 2015. These balances at December 31, 2014 were as follows: Securities Held to Maturity Amortized Cost Gross Gross Fair Value (In thousands) December 31, 2014 U.S. Treasury and U.S. Government-sponsored agencies $ 1,591 $ 167 $ — $ 1,758 Municipal securities 22,486 643 (11 ) 23,118 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 10,866 364 (74 ) 11,156 Private residential collateralized mortgage obligations 871 75 (104 ) 842 Total $ 35,814 $ 1,249 $ (189 ) $ 36,874 There were no securities classified as trading at December 31, 2015 or December 31, 2014 . The amortized cost and fair value of securities at December 31, 2015 , by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available for Sale Amortized Cost Fair Value (In thousands) Due in one year or less $ 7,905 $ 7,952 Due after one year through three years 43,713 43,969 Due after three years through five years 59,295 59,911 Due after five years through ten years 213,007 214,058 Due after ten years 483,956 485,925 Investment securities with no stated maturities 45 54 Total $ 807,921 $ 811,869 (b) Unrealized Losses and Other-Than-Temporary Impairments The following table shows the gross unrealized losses and fair value of the Company's investment securities available for sale that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of December 31, 2015 and December 31, 2014 : Securities Available for Sale Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) December 31, 2015 U.S. Treasury and U.S. Government-sponsored agencies $ 30,381 $ (186 ) $ — $ — $ 30,381 $ (186 ) Municipal securities 21,929 (174 ) 2,068 (11 ) 23,997 (185 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 268,159 (2,141 ) 43,938 (473 ) 312,097 (2,614 ) Corporate obligations 8,134 (110 ) 979 (29 ) 9,113 (139 ) Total $ 328,603 $ (2,611 ) $ 46,985 $ (513 ) $ 375,588 $ (3,124 ) December 31, 2014 U.S. Treasury and U.S. Government-sponsored agencies $ 3,567 $ (31 ) $ — $ — $ 3,567 $ (31 ) Municipal securities 25,176 (184 ) — — 25,176 (184 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 182,970 (1,475 ) — — 182,970 (1,475 ) Corporate obligations 2,119 (24 ) — — 2,119 (24 ) Total $ 213,832 $ (1,714 ) $ — $ — $ 213,832 $ (1,714 ) The Company has evaluated these investment securities available for sale and has determined that the decline in their value is temporary. The unrealized losses are primarily due to increases in market interest rates and larger spreads in the market for mortgage-related products. The fair value of these securities is expected to recover as the securities approach their maturity date and/or as the pricing spreads narrow on mortgage-related securities. The Company has the ability and intent to hold the investments until recovery of the securities' amortized cost which may be the maturity date of the securities. During the year ended December 31, 2015, the Company sold its entire portfolio of private residential collateralized mortgage obligations with a carrying value of $1.1 million , all of which were formerly classified as held-to-maturity. Since acquisition these securities had been downgraded below the Company's acceptable investment grades. As of result of these downgrades and the effects of Basel III on the risk-weighting of sub-investment grade securities, the Company's intent to hold these securities changed and management elected to divest of its interest in the downgraded securities. The Company recorded a realized pre-tax loss of $125,000 on this sale. The following table shows the gross unrealized losses and fair value of the Company's investment securities held to maturity, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of as of December 31, 2014 : Securities Held to Maturity Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses (In thousands) December 31, 2014 Municipal securities $ 2,196 $ (11 ) $ — $ — $ 2,196 $ (11 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 2,553 (74 ) — — 2,553 (74 ) Private residential collateralized mortgage obligations 558 (104 ) — — 558 (104 ) Total $ 5,307 $ (189 ) $ — $ — $ 5,307 $ (189 ) Prior to the sale of the held to maturity securities noted above, to analyze the unrealized losses, the Company estimated expected future cash flows of the private residential collateralized mortgage obligations by estimating the expected future cash flows of the underlying collateral and applying those collateral cash flows, together with any credit enhancements such as subordinated interests owned by third parties, to the security. The expected future cash flows of the underlying collateral are determined using the remaining contractual cash flows adjusted for future expected credit losses (which considers current delinquencies and nonperforming assets, future expected default rates and collateral value by vintage and geographic region) and prepayments. The expected cash flows of the security are then discounted at the interest rate used to recognize interest income on the security to arrive at a present value amount. The average prepayment rate and average discount rate used in the valuation of the present value as of December 31, 2014 were 6.0% and 9.4% , respectively. For the year ended December 31, 2015 , there were no securities determined to be other-than-temporarily impaired and the Company recorded no unrealized losses for other-than-temporary impairment for the year ended December 31, 2015 in earnings or other comprehensive income. In comparison, for the year ended December 31, 2014 , there were four private residential collateralized mortgage obligations determined to be other-than-temporarily impaired. All unrealized losses for other-than-temporary impairment for the year ended December 31, 2014 were deemed to be credit related, and the Company recorded the impairment in earnings. The following table summarizes activity for the years ended December 31, 2014 and 2013 related to the amount of other-than-temporary impairments on held to maturity securities. There were no initial or subsequent impairments recorded during the year ended December 31, 2015 . Life-to-Date Gross Other-Than-Temporary Impairments (1) Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings (In thousands) December 31, 2012 $ 2,565 $ 1,152 $ 1,413 Subsequent impairments 38 — 38 December 31, 2013 2,603 1,152 1,451 Subsequent impairments 45 — 45 December 31, 2014 $ 2,648 $ 1,152 $ 1,496 (1) Life-to-date gross other-than-temporary impairments disclosed in this table are not reflective of subsequent recoveries, if any. As of December 31, 2015, the Company had no securities with other-than-temporary impairments because all such securities were sold prior to December 31, 2015. (c) Pledged Securities The following table summarizes the amortized cost and fair value of available for sale and previously classified as held to maturity securities that are pledged as collateral for the following obligations at December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state to secure public deposits $ 212,325 $ 215,284 $ 150,507 $ 153,785 Federal Reserve Bank of San Francisco and FHLB to secure borrowing arrangements 506 506 4,430 4,460 Repurchase agreements 28,500 28,503 43,676 44,457 Other securities pledged 2,125 2,160 14,828 14,922 Total $ 243,456 $ 246,453 $ 213,441 $ 217,624 At December 31, 2015 and December 31, 2014 , the total carrying value of pledged securities was $246.5 million and $216.7 million , respectively.

Loans Receivable

Loans Receivable	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Loans Receivable	Loans Receivable The Company originates loans in the ordinary course of business and has also acquired loans through FDIC-assisted and open bank transactions. Disclosures related to the Company's recorded investment in loans receivable generally exclude accrued interest receivable and net deferred loan origination fees and costs because they are insignificant. Loans acquired in a business combination may be further classified as “purchased” loans. Loans purchased with evidence of credit deterioration since origination for which it is probable that not all contractually required payments will be collected are accounted for under FASB ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . These loans are identified as “purchased credit impaired” ("PCI") loans. Loans purchased that are not accounted for under FASB ASC 310-30 are accounted for under FASB ASC 310-20, Receivables—Nonrefundable Fees and Other Costs and are referred to as "non-PCI" loans. (a) Loan Origination/Risk Management The Company categorizes loans in one of the four segments of the total loan portfolio: commercial business, one-to-four family residential, real estate construction and land development and consumer. Within these segments are classes of loans for which management monitors and assesses credit risk in the loan portfolios. The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies, and nonperforming and potential problem loans. The Company also conducts internal loan reviews and validates the credit risk assessment on a periodic basis and presents the results of these reviews to management. The loan review process complements and reinforces the risk identification and assessment decisions made by loan officers and credit personnel, as well as the Company’s policies and procedures. A discussion of the risk characteristics of each loan portfolio segment is as follows: Commercial Business : There are three significant classes of loans in the commercial portfolio segment: commercial and industrial loans, owner-occupied commercial real estate and non-owner occupied commercial real estate. The owner and non-owner occupied commercial real estate are both considered commercial real estate loans. As the commercial and industrial loans carry different risk characteristics than the commercial real estate loans, they are discussed separately below. Commercial and industrial. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may include a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial real estate. The Company originates commercial real estate loans within its primary market areas. These loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate involves more risk than other classes of loans in that the lending typically involves higher loan principal amounts, and payments on loans secured by real estate properties are dependent on successful operation and management of the properties. Repayment of these loans may be more adversely affected by conditions in the real estate market or the economy. Owner-occupied commercial real estate loans are generally of lower credit risk than non-owner occupied commercial real estate loans as the borrowers' businesses are likely dependent on the properties. One-to-Four Family Residential : The majority of the Company’s one-to-four family residential loans are secured by single-family residences located in its primary market areas. The Company’s underwriting standards require that single-family portfolio loans generally are owner-occupied and do not exceed 80% of the lower of appraised value at origination or cost of the underlying collateral. Terms of maturity typically range from 15 to 30 years. Historically, the Company sold most single-family loans in the secondary market and retained a smaller portion in its loan portfolio. From the second quarter of 2013 until May 1, 2014, the Company only originated single-family loans for its loan portfolio. As a result of the Washington Banking Merger, since May 1, 2014 the Company is originating and selling a majority of its single-family mortgages. Real Estate Construction and Land Development : The Company originates construction loans for one-to-four family residential and for five or more family residential and commercial properties. The one-to-four family residential construction loans generally include construction of custom homes whereby the home buyer is the borrower. The Company also provides financing to builders for the construction of pre-sold homes and, in selected cases, to builders for the construction of speculative residential property. Substantially all construction loans are short-term in nature and priced with variable rates of interest. Construction lending can involve a higher level of risk than other types of lending because funds are advanced partially based upon the value of the project, which is uncertain prior to the project’s completion. Because of the uncertainties inherent in estimating construction costs as well as the market value of a completed project and the effects of governmental regulation of real property, the Company’s estimates with regard to the total funds required to complete a project and the related loan-to-value ratio may vary from actual results. As a result, construction loans often involve the disbursement of substantial funds with repayment dependent, in part, on the success of the ultimate project and the ability of the borrower to sell or lease the property or refinance the indebtedness. If the Company’s estimate of the value of a project at completion proves to be overstated, it may have inadequate security for repayment of the loan and may incur a loss if the borrower does not repay the loan. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being dependent upon successful completion of the construction project, interest rate changes, government regulation of real property, general economic conditions and the availability of long-term financing. Consumer : The Company originates consumer loans and lines of credit that are both secured and unsecured. The underwriting process for these loans ensures a qualifying primary and secondary source of repayment. Underwriting standards for home equity loans are significantly influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80% , collection remedies, the number of such loans a borrower can have at one time and documentation requirements. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed. The majority of consumer loans are for relatively small amounts disbursed among many individual borrowers which reduces the credit risk for this type of loan. To further reduce the risk, trend reports are reviewed by management on a regular basis. As a result of the Washington Banking Merger, the Company is originating indirect consumer loans. These loans are for new and used automobile and recreational vehicles that are originated indirectly by selected dealers located in the Company's market areas. The Company has limited its purchase of indirect loans primarily to dealerships that are established and well known in their market areas and to applicants that are not classified as sub-prime. Loans receivable at December 31, 2015 and December 31, 2014 consisted of the following portfolio segments and classes: December 31, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 596,726 $ 570,453 Owner-occupied commercial real estate 629,207 594,986 Non-owner occupied commercial real estate 697,388 643,636 Total commercial business 1,923,321 1,809,075 One-to-four family residential 72,548 69,530 Real estate construction and land development: One-to-four family residential 51,752 49,195 Five or more family residential and commercial properties 55,325 64,920 Total real estate construction and land development 107,077 114,115 Consumer 298,167 259,294 Gross loans receivable 2,401,113 2,252,014 Net deferred loan costs (fees) 929 (937 ) Loans receivable, net 2,402,042 2,251,077 Allowance for loan losses (29,746 ) (27,729 ) Total loans receivable, net $ 2,372,296 $ 2,223,348 (b) Concentrations of Credit Most of the Company’s lending activity occurs within Washington State, and to a lesser extent Oregon. The Company’s primary market areas are concentrated along the I-5 corridor from Whatcom County to Clark County in Washington State and Multnomah County in Oregon, as well as other contiguous markets. The Washington Banking Merger allowed the expansion of the Company's market area north of Seattle, Washington to the Canadian border. The majority of the Company’s loan portfolio consists of (in order of balances at December 31, 2015 ) non-owner occupied commercial real estate, owner-occupied commercial real estate and commercial and industrial. As of December 31, 2015 and 2014, there were no concentrations of loans related to any single industry in excess of 10% of the Company’s total loans. (c) Credit Quality Indicators As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade of the loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) nonperforming loans, and (v) the general economic conditions of the United States of America, and specifically the states of Washington and Oregon. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 0 to 10. A description of the general characteristics of the risk grades is as follows: • Grades 0 to 5: These grades are considered “pass grade” and include loans with negligible to above average but acceptable risk. These borrowers generally have strong to acceptable capital levels and consistent earnings and debt service capacity. Loans with the higher grades within the “pass” category may include borrowers who are experiencing unusual operating difficulties, but have acceptable payment performance to date. Increased monitoring of financials and/or collateral may be appropriate. Loans with this grade show no immediate loss exposure. • Grade 6: This grade includes "Watch" loans and is considered a “pass grade”. The grade is intended to be utilized on a temporary basis for pass grade borrowers where a potentially significant risk-modifying action is anticipated in the near term. • Grade 7: This grade includes “Other Assets Especially Mentioned” (“OAEM”) loans in accordance with regulatory guidelines, and is intended to highlight loans with elevated risks. Loans with this grade show signs of deteriorating profits and capital, and the borrower might not be strong enough to sustain a major setback. The borrower is typically higher than normally leveraged, and outside support might be modest and likely illiquid. The loan is at risk of further decline unless active measures are taken to correct the situation. • Grade 8: This grade includes “Substandard” loans in accordance with regulatory guidelines, which the Company has determined have a high credit risk. These loans also have well-defined weaknesses which make payment default or principal exposure likely, but not yet certain. The borrower may have shown serious negative trends in financial ratios and performance. Such loans may be dependent upon collateral liquidation, a secondary source of repayment or an event outside of the normal course of business. Loans with this grade can be placed on accrual or nonaccrual status based on the Company’s accrual policy. • Grade 9: This grade includes “Doubtful” loans in accordance with regulatory guidelines, and the Company has determined these loans to have excessive credit risk. Such loans are placed on nonaccrual status and may be dependent upon collateral having a value that is difficult to determine or upon some near-term event which lacks certainty. Additionally, these loans generally have a specific valuation allowance or have been partially charged-off for the amount considered uncollectible. • Grade 10: This grade includes “Loss” loans in accordance with regulatory guidelines, and the Company has determined these loans have the highest risk of loss. Such loans are charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. Numerical loan grades for loans are established at the origination of the loan. Loan grades are reviewed on a quarterly basis, or more frequently if necessary, by the credit department. The Bank follows the FDIC’s Uniform Retail Credit Classification and Account Management Policy for subsequent classification in the event of payment delinquencies or default. Typically, an individual loan grade will not be changed from the prior period unless there is a specific indication of credit deterioration or improvement. Credit deterioration is evidenced by delinquency, direct communications with the borrower, or other borrower information that becomes known to management. Credit improvements are evidenced by known facts regarding the borrower or the collateral property. The loan grades relate to the likelihood of losses in that the higher the grade, the greater the loss potential. Loans with a pass grade may have some estimated inherent losses, but to a lesser extent than the other loan grades. The OAEM loan grade is transitory in that the Company is waiting on additional information to determine the likelihood and extent of the potential loss. The likelihood of loss for OAEM graded loans, however, is greater than Watch graded loans because there has been measurable credit deterioration. Loans with a Substandard grade are generally loans for which the Company has individually analyzed for potential impairment. For Doubtful and Loss graded loans, the Company is almost certain of the losses, and the unpaid principal balances are generally charged-off to the realizable value. The following tables present the balance of the loans receivable by credit quality indicator as of December 31, 2015 and December 31, 2014 . December 31, 2015 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 563,002 $ 8,093 $ 25,333 $ 298 $ 596,726 Owner-occupied commercial real estate 600,514 11,662 16,773 258 629,207 Non-owner occupied commercial real estate 643,674 23,447 30,267 — 697,388 Total commercial business 1,807,190 43,202 72,373 556 1,923,321 One-to-four family residential 71,457 — 1,091 — 72,548 Real estate construction and land development: One-to-four family residential 44,069 896 6,787 — 51,752 Five or more family residential and commercial properties 50,678 — 4,647 — 55,325 Total real estate construction and land development 94,747 896 11,434 — 107,077 Consumer 291,892 — 6,275 — 298,167 Gross loans receivable $ 2,265,286 $ 44,098 $ 91,173 $ 556 $ 2,401,113 December 31, 2014 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 520,780 $ 14,618 $ 32,491 $ 2,564 $ 570,453 Owner-occupied commercial real estate 536,591 27,903 30,145 347 594,986 Non-owner occupied commercial real estate 593,918 17,683 32,035 — 643,636 Total commercial business 1,651,289 60,204 94,671 2,911 1,809,075 One-to-four family residential 66,599 740 2,191 — 69,530 Real estate construction and land development: One-to-four family residential 36,534 3,977 8,684 — 49,195 Five or more family residential and commercial properties 58,783 — 6,137 — 64,920 Total real estate construction and land development 95,317 3,977 14,821 — 114,115 Consumer 249,866 — 9,428 — 259,294 Gross loans receivable $ 2,063,071 $ 64,921 $ 121,111 $ 2,911 $ 2,252,014 Potential problem loans are loans classified as OAEM or worse that are currently accruing interest and are not considered impaired, but which management is monitoring because the financial information of the borrower causes concern as to their ability to meet their loan repayment terms. Potential problem loans also include PCI loans as these loans continue to accrete loan discounts established at acquisition based on the guidance of ASC 310-30. Potential problem loans as of December 31, 2015 and December 31, 2014 were $110.4 million and $162.9 million , respectively. The balance of potential problem loans guaranteed by a governmental agency, which guarantee reduces the Company's credit exposure, was $1.2 million and $2.0 million as of December 31, 2015 and December 31, 2014 , respectively. (d) Nonaccrual Loans Nonaccrual loans, segregated by segments and classes of loans, were as follows as of December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 5,095 $ 5,784 Owner-occupied commercial real estate 2,027 2,295 Non-owner occupied commercial real estate — 517 Total commercial business 7,122 8,596 One-to-four family residential 38 — Real estate construction and land development: One-to-four family residential 2,414 2,831 Total real estate construction and land development 2,414 2,831 Consumer 94 145 Nonaccrual loans $ 9,668 $ 11,572 The Company had $1.1 million and $1.6 million of nonaccrual loans guaranteed by governmental agencies at December 31, 2015 and December 31, 2014 , respectively. PCI loans are not included in the nonaccrual loan table above because these loans are accounted for under ASC 310-30, which provides that accretable yield is calculated based on a loan's expected cash flow even if the loan is not performing under its contractual terms. (e) Past due loans The Company performs an aging analysis of past due loans using the categories of 30-89 days past due and 90 or more days past due. This policy is consistent with regulatory reporting requirements. The balances of past due loans, segregated by segments and classes of loans, as of December 31, 2015 and December 31, 2014 were as follows: December 31, 2015 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,900 $ 2,679 $ 5,579 $ 591,147 $ 596,726 Owner-occupied commercial real estate 2,753 2,609 5,362 623,845 629,207 Non-owner occupied commercial real estate 1,664 184 1,848 695,540 697,388 Total commercial business 7,317 5,472 12,789 1,910,532 1,923,321 One-to-four family residential 490 — 490 72,058 72,548 Real estate construction and land development: One-to-four family residential — 2,392 2,392 49,360 51,752 Five or more family residential and commercial properties 118 42 160 55,165 55,325 Total real estate construction and land development 118 2,434 2,552 104,525 107,077 Consumer 3,029 202 3,231 294,936 298,167 Gross loans receivable $ 10,954 $ 8,108 $ 19,062 $ 2,382,051 $ 2,401,113 December 31, 2014 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 4,765 $ 3,125 $ 7,890 $ 562,563 $ 570,453 Owner-occupied commercial real estate 1,683 2,780 4,463 590,523 594,986 Non-owner occupied commercial real estate 1,826 531 2,357 641,279 643,636 Total commercial business 8,274 6,436 14,710 1,794,365 1,809,075 One-to-four family residential 312 — 312 69,218 69,530 Real estate construction and land development: One-to-four family residential 240 2,225 2,465 46,730 49,195 Five or more family residential and commercial properties — 596 596 64,324 64,920 Total real estate construction and land development 240 2,821 3,061 111,054 114,115 Consumer 2,676 852 3,528 255,766 259,294 Gross loans receivable $ 11,502 $ 10,109 $ 21,611 $ 2,230,403 $ 2,252,014 There were no loans 90 days or more past due that were still accruing as of December 31, 2015 or 2014, excluding PCI loans. (f) Impaired loans Impaired loans includes nonaccrual loans and performing TDR loans. The balances of impaired loans as of December 31, 2015 and December 31, 2014 are set forth in the following tables. December 31, 2015 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 872 $ 8,769 $ 9,641 $ 11,368 $ 1,173 Owner-occupied commercial real estate — 4,295 4,295 4,342 809 Non-owner occupied commercial real estate 3,696 6,834 10,530 10,539 943 Total commercial business 4,568 19,898 24,466 26,249 2,925 One-to-four family residential — 275 275 276 85 Real estate construction and land development: One-to-four family residential 1,403 2,065 3,468 4,089 66 Five or more family residential and commercial properties — 1,960 1,960 1,960 203 Total real estate construction and land development 1,403 4,025 5,428 6,049 269 Consumer 48 145 193 200 29 Total $ 6,019 $ 24,343 $ 30,362 $ 32,774 $ 3,308 December 31, 2014 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 3,374 $ 8,000 $ 11,374 $ 13,045 $ 1,334 Owner-occupied commercial real estate 360 3,553 3,913 3,937 979 Non-owner occupied commercial real estate 2,459 5,270 7,729 7,719 531 Total commercial business 6,193 16,823 23,016 24,701 2,844 One-to-four family residential — 245 245 245 75 Real estate construction and land development: One-to-four family residential 2,307 2,396 4,703 5,146 447 Five or more family residential and commercial properties — 2,056 2,056 2,056 234 Total real estate construction and land development 2,307 4,452 6,759 7,202 681 Consumer 33 178 211 216 58 Total $ 8,533 $ 21,698 $ 30,231 $ 32,364 $ 3,658 The Company had governmental guarantees of $1.5 million and $2.4 million related to the impaired loan balances at December 31, 2015 and December 31, 2014 , respectively. The average recorded investment of impaired loans for the years ended December 31, 2015 , 2014 and 2013 are set forth in the following table. Years Ended December 31, 2015 2014 2013 (In thousands) Commercial business: Commercial and industrial $ 9,781 $ 14,367 $ 14,112 Owner-occupied commercial real estate 4,346 3,582 2,638 Non-owner occupied commercial real estate 9,257 7,915 7,897 Total commercial business 23,384 25,864 24,647 One-to-four family residential 257 604 1,339 Real estate construction and land development: One-to-four family residential 3,841 5,452 4,237 Five or more family residential and commercial properties 2,008 2,154 2,839 Total real estate construction and land development 5,849 7,606 7,076 Consumer 171 786 274 Total $ 29,661 $ 34,860 $ 33,336 For the years ended December 31, 2015 , 2014 and 2013 no interest income was recognized subsequent to a loan’s classification as nonaccrual. For the years ended December 31, 2015 , 2014 and 2013 , the Bank recorded $780,000 , $1.2 million and $1.1 million , respectively, of interest income related to performing TDR loans. (g) Troubled Debt Restructured Loans A troubled debt restructured loan is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDRs are considered impaired and are separately measured for impairment under FASB ASC 310-10-35, whether on accrual ("performing") or nonaccrual ("nonperforming") status. The Company has implemented more stringent definitions of concessions and impairment measures for PCI loans which are not in pools as these loans have known credit deteriorations and are generally accreting income at a lower discounted rate as compared to the contractual note rate based on the guidance of FASB ASC 310-30. At December 31, 2014, the Company reported $10.4 million of PCI loans as TDR loans. After further review of the Bank's modified definitions, these loans were no longer considered to have concessions and they were removed from TDR status during the year ended December 31, 2015. The balances as reported in the Annual Report on Form 10-K for the year ended December 31, 2014 has been updated in this filing to exclude these balances for comparative purposes. The majority of the Bank’s TDR loans are a result of granting extensions of maturity on troubled credits which have already been adversely classified. The Bank grants such extensions to reassess the borrower’s financial status and to develop a plan for repayment. Certain modifications with extensions also include interest rate reductions, which is the second most prevalent concession. Certain TDRs were additionally re-amortized over a longer period of time. The Bank additionally advanced funds to a troubled speculative home builder to complete established projects. These modifications would all be considered a concession for a borrower that could not obtain similar financing terms from another source other than from the Bank. The financial effects of each modification will vary based on the specific restructure. For the majority of the Bank’s TDRs, the loans were interest-only with a balloon payment at maturity. If the interest rate is not adjusted and the modified terms are consistent with other similar credits being offered, the Bank may not experience any loss associated with the restructure. If, however, the restructure involves forbearance agreements or interest rate modifications, the Bank may not collect all the principal and interest based on the original contractual terms. The Bank estimates the necessary allowance for loan losses on TDRs using the same guidance as used for other impaired loans. The recorded investment balance and related allowance for loan losses of performing and nonaccrual TDR loans as of December 31, 2015 and December 31, 2014 were as follows: December 31, 2015 December 31, 2014 Performing TDRs Nonaccrual TDRs Performing TDRs Nonaccrual (In thousands) TDR loans $ 20,695 $ 6,301 $ 18,659 $ 7,256 Allowance for loan losses on TDR loans 2,069 679 1,908 1,035 The unfunded commitment to borrowers related to TDRs was $551,000 and $1.8 million at December 31, 2015 and December 31, 2014 , respectively. Loans that were modified as TDRs during the years ended December 31, 2015 , 2014 and 2013 are set forth in the following table: Years Ended December 31, 2015 2014 2013 Number of Contracts (1) Outstanding Number of Contracts (1) Outstanding Principal Balance (1)(2) Number of Outstanding (Dollars in thousands) Commercial business: Commercial and industrial 25 $ 6,312 33 $ 8,166 36 $ 10,362 Owner-occupied commercial real estate 4 1,311 3 1,063 5 537 Non-owner occupied commercial real estate 4 7,496 3 6,548 2 192 Total commercial business 33 15,119 39 15,777 43 11,091 One-to-four family residential — — — — 1 252 Real estate construction and land development: One-to-four family residential 4 2,291 10 3,553 24 3,639 Five or more family residential and commercial properties — — — — 1 2,404 Total real estate construction and land development 4 2,291 10 3,553 25 6,043 Consumer 1 37 2 101 3 141 Total modified loans 38 $ 17,447 51 $ 19,431 72 $ 17,527 (1) Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-off or charged-off during the years ended December 31, 2015 , 2014 and 2013. (2) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modification, the Bank’s recorded investment in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification), except when the modification was the initial advance on a one-to-four family residential real estate construction and land development loan under a master guidance line. There were no advances on these types of loans during the year ended December 31, 2015 . During the year ended December 31, 2014 , the Company's initial advance at the time of modification on these construction loans totaled $45,000 and the total commitment amount was $190,000 and the outstanding principal balance at December 31, 2014 was $188,000 . During the year ended December 31, 2013, the Company's initial advance at the time of modification on these construction loans totaled $1.1 million and the total commitment amount was $4.3 million and the outstanding principal balance at December 31, 2013 was $3.4 million . Of the 38 loans modified during the year ended December 31, 2015 , 18 loans with a total outstanding principal balance of $7.0 million had no prior modifications. The remaining loans included in the table above for the year ended December 31, 2015 were previously reported as TDRs. The Bank typically grants shorter extension periods to continually monitor the troubled credits despite the fact that the extended date might not be the date the Bank expects the cash flow. The Company does not consider these modifications a subsequent default of a TDR as new loan terms, specifically maturity dates, were granted. The potential losses related to these loans would have been considered in the period the loan was first reported as a TDR and adjusted, as necessary, in the current periods based on more recent information. The related specific valuation allowance at December 31, 2015 for loans that were modified as TDRs during the year ended December 31, 2015 was $1.7 million . Of the 51 loans modified during the year ended December 31, 2014, 17 loans with a total outstanding principal balance of $4.7 million had no prior modifications. Of the 72 loans modified during the year ended December 31, 2013, 17 loans with a total outstanding principal balance of $5.5 million were previously reported as TDRs as of December 31, 2012. Similar to the year ended December 31, 2015 discussion above, the majority of the modifications in prior periods was the result of the Bank granting shorter extension periods to continually monitor the troubled credits, which resulted in TDR classification. The related specific valuation allowance for loans that were modified as TDRs during the years ended December 31, 2014 and 2013 was $1.8 million and $2.8 million , respectively. A significant portion of the loans modified during the year ended December 31, 2013 ( 24 loans totaling $3.4 million at December 31, 2013) relate to a speculative construction home builder. As the builder completes and sells the units, the Bank will advance funds for the construction of another unit. The builder's loans for each separate unit were considered TDR loans. The Bank closely monitors the activity of this borrower for potential losses. The loans modified during the previous twelve months ended December 31, 2015 , 2014 and 2013 that subsequently defaulted during the years ended December 31, 2015 , 2014 and 2013 are included in the following table:

Allowance for Loan Losses

Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is maintained at a level deemed appropriate by management to provide for probable incurred credit losses in the loan portfolio. The methodology for calculating the allowance for loan losses is completed on loans originated by the Bank and on loans purchased in mergers and acquisitions. The FDIC shared-loss agreements terminated on August 4, 2015. Prior to their termination, when a credit deterioration occurred subsequent to the acquisition on loan that was covered by the FDIC shared-loss agreements, a provision for loan losses was charged to earnings for the full amount of the impairment, without regard to the coverage of the FDIC shared-loss agreements. A summary of the changes in the allowance for loan losses during the years ended December 31, 2015 , 2014 and 2013 is as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at the beginning of the year $ 27,729 $ 28,824 $ 28,594 Charge-offs (3,482 ) (6,597 ) (4,371 ) Recoveries of loans previously charged-off 1,127 908 929 Provision for loan losses 4,372 4,594 3,672 Balance at the end of the year $ 29,746 $ 27,729 $ 28,824 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2015 : Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2015 Commercial business: Commercial and industrial $ 10,553 $ (1,488 ) $ 476 $ 431 $ 9,972 Owner-occupied commercial real estate 4,095 — — 473 4,568 Non-owner occupied commercial real estate 5,538 (188 ) — 2,174 7,524 Total commercial business 20,186 (1,676 ) 476 3,078 22,064 One-to-four family residential 1,200 — 13 (56 ) 1,157 Real estate construction and land development: One-to-four family residential 1,786 (106 ) 100 (722 ) 1,058 Five or more family residential and commercial properties 972 — — (159 ) 813 Total real estate construction and land development 2,758 (106 ) 100 (881 ) 1,871 Consumer 2,769 (1,700 ) 538 2,702 4,309 Unallocated 816 — — (471 ) 345 Total $ 27,729 $ (3,482 ) $ 1,127 $ 4,372 $ 29,746 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2015 . Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,173 $ 6,276 $ 2,523 $ 9,972 Owner-occupied commercial real estate 809 1,860 1,899 4,568 Non-owner occupied commercial real estate 943 4,138 2,443 7,524 Total commercial business 2,925 12,274 6,865 22,064 One-to-four family residential 85 546 526 1,157 Real estate construction and land development: One-to-four family residential 66 481 511 1,058 Five or more family residential and commercial properties 203 519 91 813 Total real estate construction and land development 269 1,000 602 1,871 Consumer 29 3,189 1,091 4,309 Unallocated — 345 — 345 Total $ 3,308 $ 17,354 $ 9,084 $ 29,746 The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2015 : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 9,641 $ 570,099 $ 16,986 $ 596,726 Owner-occupied commercial real estate 4,295 602,086 22,826 629,207 Non-owner occupied commercial real estate 10,530 659,597 27,261 697,388 Total commercial business 24,466 1,831,782 67,073 1,923,321 One-to-four family residential 275 66,881 5,392 72,548 Real estate construction and land development: One-to-four family residential 3,468 44,163 4,121 51,752 Five or more family residential and commercial properties 1,960 50,158 3,207 55,325 Total real estate construction and land development 5,428 94,321 7,328 107,077 Consumer 193 290,848 7,126 298,167 Total $ 30,362 $ 2,283,832 $ 86,919 $ 2,401,113 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2014. Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2014 Commercial business: Commercial and industrial $ 13,478 $ (4,504 ) $ 716 $ 863 $ 10,553 Owner-occupied commercial real estate 4,049 (337 ) — 383 4,095 Non-owner occupied commercial real estate 5,326 (411 ) — 623 5,538 Total commercial business 22,853 (5,252 ) 716 1,869 20,186 One-to-four family residential 1,100 (31 ) 7 124 1,200 Real estate construction and land development: One-to-four family residential 1,720 (345 ) 43 368 1,786 Five or more family residential and commercial properties 953 — — 19 972 Total real estate construction and land development 2,673 (345 ) 43 387 2,758 Consumer 1,597 (969 ) 142 1,999 2,769 Unallocated 601 — — 215 816 Total $ 28,824 $ (6,597 ) $ 908 $ 4,594 $ 27,729 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2014. Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,334 $ 6,557 $ 2,662 $ 10,553 Owner-occupied commercial real estate 979 1,643 1,473 4,095 Non-owner occupied commercial real estate 531 2,547 2,460 5,538 Total commercial business 2,844 10,747 6,595 20,186 One-to-four family residential 75 538 587 1,200 Real estate construction and land development: One-to-four family residential 447 322 1,017 1,786 Five or more family residential and commercial properties 234 650 88 972 Total real estate construction and land development 681 972 1,105 2,758 Consumer 58 1,943 768 2,769 Unallocated — 816 — 816 Total $ 3,658 $ 15,016 $ 9,055 $ 27,729 The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2014 : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 11,374 $ 533,905 $ 25,174 $ 570,453 Owner-occupied commercial real estate 3,913 554,199 36,874 594,986 Non-owner occupied commercial real estate 7,729 604,465 31,442 643,636 Total commercial business 23,016 1,692,569 93,490 1,809,075 One-to-four family residential 245 63,572 5,713 69,530 Real estate construction and land development: One-to-four family residential 4,703 38,961 5,531 49,195 Five or more family residential and commercial properties 2,056 58,099 4,765 64,920 Total real estate construction and land development 6,759 97,060 10,296 114,115 Consumer 211 249,311 9,772 259,294 Total $ 30,231 $ 2,102,512 $ 119,271 $ 2,252,014 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2013. Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2013 Commercial business: Commercial and industrial $ 9,912 $ (2,826 ) $ 248 $ 6,144 $ 13,478 Owner-occupied commercial real estate 4,021 (247 ) 560 (285 ) 4,049 Non-owner occupied commercial real estate 5,369 — — (43 ) 5,326 Total commercial business 19,302 (3,073 ) 808 5,816 22,853 One-to-four family residential 1,221 (52 ) — (69 ) 1,100 Real estate construction and land development: One-to-four family residential 3,131 (423 ) — (988 ) 1,720 Five or more family residential and commercial properties 2,309 (142 ) 32 (1,246 ) 953 Total real estate construction and land development 5,440 (565 ) 32 (2,234 ) 2,673 Consumer 1,761 (681 ) 89 428 1,597 Unallocated 870 — — (269 ) 601 Total $ 28,594 $ (4,371 ) $ 929 $ 3,672 $ 28,824

FDIC Indemnification Asset

FDIC Indemnification Asset	12 Months Ended
	Dec. 31, 2015
FDIC Indemnification Asset [Abstract]
FDIC Indemnification Asset	FDIC Indemnification Asset Changes in the FDIC indemnification asset during the years ended December 31, 2015 , 2014 and 2013 were as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at the beginning of the year $ 1,116 $ 4,382 $ 7,100 Additions as a result of the Washington Banking Merger — 7,174 — Cash payments received or receivable from the FDIC (231 ) (7,897 ) (2,537 ) FDIC share of additional estimated (gains) losses (352 ) (1,072 ) 1,086 Net amortization (145 ) (1,471 ) (1,267 ) Change due to termination of FDIC shared-loss agreements (388 ) — — Balance at the end of the year $ — $ 1,116 $ 4,382 On August 4, 2015, the Bank and the FDIC entered into an agreement terminating the FDIC shared-loss agreements for all three of the FDIC-assisted acquisitions (Cowlitz Bank, and Washington Banking's acquisitions of City Bank and North County Bank). The Bank paid consideration of $7.1 million to the FDIC for the termination of the shared-loss agreements related to these acquisitions. The termination of the shared-loss agreements resulted in a pre-tax gain of $1.7 million (included in "other income" in the Consolidated Statements of Income) and the elimination of the FDIC indemnification asset and the FDIC clawback liability (included in “accrued expenses and other liabilities” in the Consolidated Statements of Financial Condition) which was recorded as of the termination date. The FDIC indemnification asset and FDIC clawback liability amounts were $388,000 and $9.3 million , respectively, as of June 30, 2015. All rights and obligations of the parties under the FDIC shared-loss agreements, including the clawback provisions, were eliminated under the termination agreement. It is not anticipated that the termination of the FDIC shared-loss agreements will have any impact on the yields for the loans that were previously covered under these agreements. All future charge-offs, recoveries, gains, losses and expenses related to covered assets will now be recognized entirely by the Bank since the FDIC will no longer be sharing in such charge-offs, recoveries, gains, losses and expenses.

Other Real Estate Owned

Other Real Estate Owned	12 Months Ended
	Dec. 31, 2015
Real Estate [Abstract]
Other Real Estate Owned	Other Real Estate Owned Changes in other real estate owned during the years ended December 31, 2015 , 2014 and 2013 were as follows: Years Ended December 31, 2015 2014 2013 (In thousands Balance at the beginning of the year $ 3,355 $ 4,559 $ 5,666 Additions 2,845 1,566 2,974 Additions from acquisitions — 7,121 2,279 Proceeds from dispositions (3,555 ) (9,914 ) (6,253 ) (Loss) gain on sales, net (97 ) 23 264 Valuation adjustment (529 ) — (371 ) Balance at the end of the year $ 2,019 $ 3,355 $ 4,559

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Premises and Equipment	Premises and Equipment A summary of premises and equipment is as follows: December 31, 2015 December 31, 2014 (In thousands) Land $ 21,695 $ 22,364 Buildings and building improvements 49,630 52,067 Furniture, fixtures and equipment 17,234 14,280 Total premises and equipment 88,559 88,711 Accumulated depreciation 26,668 23,773 Premises and equipment, net $ 61,891 $ 64,938 Total depreciation expense on premises and equipment was $4.0 million , $3.5 million and $2.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets (a) Goodwill The Company’s goodwill represents the excess of the purchase price over the fair value of net assets acquired in the Washington Banking Merger on May 1, 2014, and in the acquisitions of Valley on July 15, 2013, Western Washington Bancorp in 2006 and North Pacific Bank in 1998. The Company’s goodwill is assigned to the Bank and is evaluated for impairment at the Bank level (reporting unit). There were no additions to goodwill during the year ended December 31, 2015 . The Company recorded $89.7 million in goodwill during the year ended December 31, 2014 as a result of the Washington Banking Merger. For additional information, see Note (2) Business Combinations. At December 31, 2015 , the Company’s step-one analysis concluded that the reporting unit’s fair value was greater than its carrying value and therefore no goodwill impairment charges were required for the year ended December 31, 2015 . The Company did no t record any goodwill impairment charges for the years ended December 31, 2014 and 2013 . Even though there was no goodwill impairment at December 31, 2015 , adverse events may impact the recoverability of goodwill and could result in a future impairment charge which could have a material impact on the Company’s operating results. b) Other Intangible Assets The other intangible assets represent the core deposit intangible ("CDI") acquired in business combinations. The useful life of the CDI related to the Washington Banking Merger, the acquisitions of Valley, NCB, Pierce, Cowlitz, and Western Washington Bancorp were estimated to be ten , ten , five , four , nine and eight years , respectively. The following table presents the change in the other intangible assets for the periods indicated: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at the beginning of the year $ 10,889 $ 1,615 $ 1,086 Additions as a result of acquisitions — 11,194 1,072 Less: Amortization 2,100 1,920 543 Balance at the end of the year $ 8,789 $ 10,889 $ 1,615 The estimated aggregate amortization expense related to these intangible assets for future years is as follows: Years Ending December 31, (In thousands) 2016 $ 1,416 2017 1,285 2018 1,122 2019 1,043 2020 989 Thereafter 2,934 $ 8,789

Deposits

Deposits	12 Months Ended
	Dec. 31, 2015
Deposits [Abstract]
Deposits	Deposits Deposits consisted of the following: December 31, 2015 December 31, 2014 Amount Percent Amount Percent (Dollars in thousands) Noninterest demand deposits $ 770,927 24.8 % $ 709,673 24.4 % NOW accounts 917,859 29.5 793,362 27.3 Money market accounts 545,342 17.6 520,065 17.9 Savings accounts 453,826 14.6 357,834 12.3 Total non-maturity deposits 2,687,954 86.5 2,380,934 81.9 Certificate of deposit accounts 420,333 13.5 525,397 18.1 Total deposits $ 3,108,287 100.0 % $ 2,906,331 100.0 % Accrued interest payable on deposits was $184,000 and $390,000 as of December 31, 2015 and 2014 , respectively and is included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Interest expense, by category, is as follows: Years Ended December 31, 2015 2014 2013 (In thousands) NOW accounts $ 1,476 $ 1,011 $ 645 Money market accounts 922 896 386 Savings accounts 445 252 164 Certificate of deposit accounts 2,386 2,991 2,478 $ 5,229 $ 5,150 $ 3,673 Scheduled maturities of certificates of deposit for future years are as follows: Years Ending December 31, (In thousands) 2016 $ 279,302 2017 83,298 2018 22,544 2019 17,861 2020 17,240 Thereafter 88 $ 420,333 Certificates of deposit issued in denominations equal to or in excess of $250,000 totaled $61.2 million and $79.8 million as of December 31, 2015 and 2014 , respectively.

Junior Subordinated Debentures

Junior Subordinated Debentures	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Junior Subordinated Debentures	Junior Subordinated Debentures As part of the Washington Banking Merger, the Company assumed trust preferred securities and junior subordinated debentures with a total fair value of $18.9 million at May 1, 2014. Washington Banking Master Trust ("Trust"), a Delaware statutory business trust, was a wholly-owned subsidiary of Washington Banking created for the exclusive purposes of issuing and selling capital securities and utilizing sale proceeds to acquire junior subordinated debt issued by Washington Banking. During 2007, the Trust issued $25.0 million of trust preferred securities with a 30 -year maturity, callable after the fifth year by Washington Banking. The trust preferred securities have a quarterly adjustable rate based upon the three-month London Interbank Offered Rate (“LIBOR”) plus 1.56% . On the Washington Banking Merger date of May 1, 2014, the Company acquired the Trust, which retained the Washington Banking Master Trust name, and assumed the performance and observance of the covenants under the indenture related to the trust preferred securities. The adjustable rate of the trust preferred securities at December 31, 2015 was 2.17% . The weighted average rate of the junior subordinated debentures was 4.29% and 3.59% for the years ended December 31, 2015 and 2014 , respectively. The weighted average rate includes the accretion of the discount established at the merger date which is amortized over the life of the trust preferred securities. The junior subordinated debentures are the sole assets of the Trust, and payments under the junior subordinated debentures are the sole revenues of the Trust. At December 31, 2015 , the balance of the junior subordinated debentures was $19.4 million . All of the common securities of the Trust are owned by the Company. Heritage has fully and unconditionally guaranteed the capital securities along with all obligations of the Trust under the trust agreements.

Repurchase Agreements

Repurchase Agreements	12 Months Ended
	Dec. 31, 2015
Disclosure of Repurchase Agreements [Abstract]
Repurchase Agreements	Repurchase Agreements The Company utilizes repurchase agreements with one day maturities as a supplement to funding sources. Repurchase agreements are secured by pledged investment securities available for sale. Under the repurchase agreements the Company is required to maintain an aggregate market value of securities pledged greater than the balance of the repurchase agreements. The Company is required to pledge additional securities to cover any declines below the balance of the repurchase agreements. The class of collateral pledged for the Company's repurchase agreement obligations as of December 31, 2015 and 2014 , totaling $23.2 million and $32.2 million , respectively, were mortgage backed securities and collateralized mortgage obligation - residential: U.S. Government-sponsored agencies. Additional information on the total value of securities pledged for repurchase agreements is found in Note (3) Investment Securities.

Other Borrowings

Other Borrowings	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Other Borrowings	Other Borrowings (a) FHLB Advances The Federal Home Loan Bank of Des Moines 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. 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. At December 31, 2015 , the Bank maintained a credit facility with the FHLB of Des Moines for $626.9 million . At December 31, 2015 and 2014 there were no FHLB advances outstanding. The following table sets forth the details of FHLB advances during and as of the year ended December 31, 2015: December 31, 2015 (In thousands) Balance at end of year $ — Average balance during the year $ 1,777 Maximum month-end balance during the year $ 48,200 Weighted average rate during the year 0.34 % Weighted average rate at end of year — % During the years ended December 31, 2014 , there were no FHLB borrowing transactions completed other than minimal amounts necessary to test the facilities. Advances from the FHLB are collateralized by a blanket pledge on FHLB stock owned by the Bank, deposits at the FHLB, certain one-to-four single family residential loans, investment securities which are obligations of or guaranteed by the United States 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) Federal Funds Purchased The Bank maintains advance lines with Wells Fargo Bank, US Bank, TIB and Pacific Coast Bankers’ Bank to purchase federal funds of up to $90.0 million as of December 31, 2015 . The lines generally mature annually or are reviewed annually. As of December 31, 2015 and 2014 , there were no federal funds purchased. (c) Credit facilities The Bank maintains a credit facility with the Federal Reserve Bank of San Francisco for $51.9 million as of December 31, 2015 , of which there were no borrowings outstanding as of December 31, 2015 or 2014 . Any advances on the credit facility would have to be first pledged with the Bank's investment securities or loans receivable.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2015
Employee Benefits and Share-based Compensation [Abstract]
Employee Benefit Plans	Employee Benefit Plans (a) 401(k) Plan Effective October 1, 1999, the Company combined three retirement plans, a money purchase pension plan, a 401(k) plan, and an employee stock ownership plan ("ESOP") at Heritage Bank, and the 401(k) plan at Central Valley Bank into one plan called the "Heritage Financial Corporation 401(k) Employee Stock Ownership Plan" (the “Plan”). In 2010, the Company amended the Plan to provide certain service credit for vesting and/or contribution purposes to employees of Cowlitz Bank and Pierce Commercial Bank at the time of each acquisition. As of December 31, 2012, the ESOP loan was repaid in full and the Company has no further ESOP commitments. Effective January 1, 2014, the Plan was converted from an ESOP to a profit sharing plan and the name was changed to "Heritage Financial Corporation 401(k) Profit Sharing Plan and Trust." The Plan includes the Company’s salary savings 401(k) plan for its employees. All employees may participate in the Plan beginning in the first of the month of hire and after thirty days of service. Participants may contribute a portion of their salary, which is matched by the Company at 50% , not to be greater than 3% of eligible compensation, up to certain Internal Revenue Service limits. All participants employed at May 1, 2014 became 100% vested in all employer contributions. All participants hired after May 1, 2014 are 100% vested in all accounts at all times. Employer matching contributions for the years ended December 31, 2015 , 2014 and 2013 were $954,000 , $852,000 and $497,000 , respectively. The profit sharing portion of the Plan is a defined contribution retirement plan. Participants are eligible for profit sharing contributions upon credit of 1,000 hours of service during the plan year and employment on the last day of the year. The Company funds Plan costs as accrued. Effective January 1, 2014, the Company changed the contribution formula to make all profit sharing and discretionary contributions completely discretionary. For the year ended December 31, 2015 , the Company made no employer profit sharing contributions. For the year ended December 31, 2014 , the Company contributed 1.5% of employees' eligible compensation. For the Plan year 2013 , the Company was required to contribute 2% of the participants’ eligible compensation and it could also provide discretionary profit sharing contributions beyond the required 2% contribution. For the year ended December 31, 2013 , the Company contributed 3% of employees' eligible compensation. Employees are vested in profit sharing contributions in the same manner as employer matching contributions discussed above. Employer profit sharing contributions were $475,000 and $600,000 for the years ended December 31, 2014 and 2013 , respectively. (b) Employment Agreements The Company has entered into contracts with certain senior officers that provide benefits under certain conditions following termination without cause, and/or following a change in control of the Company. (c) Deferred Compensation Plan During 2012, the Company adopted a Deferred Compensation Plan, which provides its directors and select executive officers with the opportunity to defer current compensation. Under the Plan, participants are permitted to elect to defer compensation and the Company has the discretion to make additional contributions to the Plan on behalf of any participant based on a number of factors. Compensation expense under the Deferred Compensation Plan totaled $570,000 , $343,000 and $445,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The Company’s contributions totaled $296,000 , $414,000 and $155,000 for the years ended December 31, 2015 , 2014 and 2013 , respectively. (d) Split-Dollar Life Insurance Benefit Plan In conjunction with the Washington Banking Merger, the Company assumed the split-dollar life insurance benefit plan previously maintained by Washington Banking. Life insurance policies are maintained for current officers of the Bank or former Washington Banking officers that are subject to split-dollar life insurance agreements, which continue after the participant's employment and retirement. All participants are fully vested in their split-dollar life insurance benefits. The accrued benefit liability for the split-dollar life insurance agreements represents the present value of the future death benefits payable to the participants' beneficiaries. The split-dollar life insurance projected benefit obligation is included in accrued expenses and other liabilities on the Company's Consolidated Statements of Financial Condition. As of both December 31, 2015 and 2014, the carrying value of the obligation was $1.2 million .

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a) Lease Commitments The Bank leases premises and equipment under operating leases. Rental expense of leased premises and equipment was $4.6 million , $3.4 million and $2.3 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, which is included in occupancy and equipment expense. The estimated future minimum annual rental commitments under noncancelable leases having an original or remaining term of more than one year are as follows: Years Ending December 31, (In thousands) 2016 $ 3,503 2017 3,207 2018 2,872 2019 2,197 2020 1,927 Thereafter 3,414 $ 17,120 Certain leases contain renewal options from two to ten years and escalation clauses based on increases in consumer price index, property taxes and other costs. (b) Commitments to Extend Credit In the ordinary course of business, the Company may enter into various types of transactions that include commitments to extend credit that are not included in the Consolidated Financial Statements. The Company applies the same credit standards to these commitments as it uses in all its lending activities and has included these commitments in its lending risk evaluations. The Company’s exposure to credit loss under commitments to extend credit is represented by the amount of these commitments. The following table presents outstanding commitments to extend credit, including letters of credit, at the dates indicated: December 31, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 350,227 $ 288,930 Owner-occupied commercial real estate 2,220 2,648 Non-owner occupied commercial real estate 11,168 20,240 Total commercial business 363,615 311,818 Real estate construction and land development: One-to-four family residential 21,778 24,028 Five or more family residential and commercial properties 52,772 32,653 Total real estate construction and land development 74,550 56,681 Consumer 134,313 122,633 Total outstanding commitments $ 572,478 $ 491,132 (c) Regulatory and Legal Proceedings The Company is involved in numerous business transactions, which, in some cases, depend on regulatory determination as to compliance with rules and regulations. Also, the Company has certain litigation and negotiations in progress. All such matters are attributable to activities arising from normal operations, except the matter related to the class action lawsuit mentioned below. In the opinion of management, after review with legal counsel, the eventual outcome of the aforementioned matters, including the class action lawsuit mentioned below, is unlikely to have a materially adverse effect on the Company’s Consolidated Financial Statements or its financial position. On April 4, 2014, Washington Banking, its directors and Heritage entered into and documented an agreement in principle among Washington Banking, its directors, Heritage and the plaintiffs for the settlement of the putative shareholder class action lawsuit captioned In Re Washington Banking Company Shareholder Litigation , Lead Case No. 13-2-38689-5 SEA, pending before the Superior Court of the State of Washington in and for King County (the “Action”). The Action alleges that Washington Banking’s directors breached their fiduciary duties to Washington Banking and its shareholders in connection with the transactions contemplated by the Agreement and Plan of Merger, dated October 23, 2013 (the “Merger Agreement”), under which Washington Banking and Heritage combined their organizations in a strategic combination, with Washington Banking merging with and into Heritage. The Action also alleges, among other things, that Heritage aided and abetted the alleged breaches of fiduciary duties by Washington Banking's directors and that the public disclosures concerning the Washington Banking Merger are misleading in various respects. On December 15, 2014, the Court entered an order preliminarily approving the settlement of the consolidated litigation and ordering Washington Banking to provide notice of the proposed settlement to those persons who held Washington Banking shares during the purported class period. On February 27, 2015, the Court held a hearing to consider whether the settlement was fair and reasonable to the class members and, if so, to approve the settlement and to consider plaintiffs’ counsel’s application for an award of attorneys’ fees and costs from Washington Banking. At the hearing, the Court approved the settlement and entered a Final Judgment and Order of Dismissal With Prejudice awarding plaintiffs’ counsel fees and expenses totaling $450,000 and terminating the litigation. The settlement of the Action did not affect the Washington Banking Merger consideration paid to Washington Banking’s shareholders in connection with the completion of the Washington Banking Merger on May 1, 2014. Washington Banking, its directors and Heritage took the position that the Action was without merit and denied any wrongdoing of any kind. Washington Banking, its directors and Heritage entered into the settlement solely to eliminate the costs, risks, burden, distraction and expense of further litigation and to put the claims that were or could have been asserted to rest. Nothing in the stipulation of settlement or any public filing, including this Annual Report on Form 10-K, shall be deemed an admission of the legal necessity of filing or the materiality under applicable laws of any of the additional information contained herein or in any public filing associated with the settlement of the Action.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments Beginning in the third quarter of 2015, the Company began entering into non-hedge related derivative positions primarily to accommodate the business needs of its customers. Upon the origination of a derivative contract with a customer, the Company simultaneously enters into an offsetting derivative contract with a third party. The Company recognizes immediate income based upon the difference in the bid/ask spread of the underlying transactions with its customers and the third party. Because the Company acts only as an intermediary for its customer, subsequent changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations. The notional amounts and estimated fair values of interest rate derivative contracts outstanding at December 31, 2015 are presented in the following table. The Company obtains dealer quotations to value its interest rate derivative contracts. December 31, 2015 Notional Amounts Estimated Fair Value (In thousands) Non-hedging interest rate derivatives Commercial business loan interest rate swaps $ 20,750 $ 543 Commercial business loan interest rate swaps (20,750 ) (543 ) The weighted average rates paid and received for interest rate swaps outstanding at December 31, 2015 were as follows: December 31, 2015 Interest Rate Paid Interest Rate Received Non-hedging interest rate swaps 4.34 % 2.52 % Non-hedging interest rate swaps 2.52 % 4.34 %

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity	Stockholders’ Equity (a) Earnings Per Common Share The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the years ended December 31, 2015 , 2014 and 2013 : Years Ended December 31, 2015 2014 2013 (Dollars in thousands) Net income: Net income $ 37,489 $ 21,014 $ 9,575 Less: Dividends and undistributed earnings allocated to participating securities (328 ) (163 ) (118 ) Net income allocated to common shareholders $ 37,161 $ 20,851 $ 9,457 Basic: Weighted average common shares outstanding 30,057,558 25,641,229 15,667,912 Less: Restricted stock awards (267,943 ) (210,690 ) (191,677 ) Total basic weighted average common shares outstanding 29,789,615 25,430,539 15,476,235 Diluted: Basic weighted average common shares outstanding 29,789,615 25,430,539 15,476,235 Incremental shares from stock options 22,725 46,750 11,480 Total diluted weighted average common shares outstanding 29,812,340 25,477,289 15,487,715 Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the years ended December 31, 2015 , 2014 and 2013 , anti-dilutive shares outstanding related to options to acquire common stock totaled 4,320 , 20,768 and 163,863 , respectively, as the assumed proceeds from exercise price, tax benefits and future compensation were in excess of the market value. (b) Dividends The timing and amount of cash dividends paid on the Company's common stock depends on the Company’s earnings, capital requirements, financial condition and other relevant factors. Dividends on common stock from the Company depend substantially upon receipt of dividends from the Bank, which is the Company’s predominant source of income. The following table summarizes the dividend activity for the years ended December 31, 2015 , 2014 and 2013 . Declared Cash Dividend per Share Record Date Paid Date January 30, 2013 $0.08 February 8, 2013 February 22, 2013 April 24, 2013 $0.08 May 10, 2013 May 24, 2013 July 23, 2013 $0.08 August 6, 2013 August 15, 2013 July 23, 2013 $0.10 August 6, 2013 August 15, 2013 * October 23, 2013 $0.08 November 5, 2013 November 15, 2013 January 29, 2014 $0.08 February 10, 2014 February 24, 2014 March 27, 2014 $0.08 April 8, 2014 April 23, 2014 July 24, 2014 $0.09 August 7, 2014 August 21, 2014 October 23, 2014 $0.09 November 6, 2014 November 20, 2014 November 11, 2014 $0.16 December 2, 2014 December 12, 2014 * January 28, 2015 $0.10 February 10, 2015 February 24, 2015 April 22, 2015 $0.11 May 7, 2015 May 21, 2015 July 22, 2015 $0.11 August 6, 2015 August 20, 2015 October 21, 2015 $0.11 November 4, 2015 November 18, 2015 October 21, 2015 $0.10 November 4, 2015 November 18, 2015 * * Denotes a special dividend. The FDIC and the Washington State Department of Financial Institutions, Division of Banks have the authority under their supervisory powers to prohibit the payment of dividends by the Bank to the Company. Additionally, current guidance from the Board of Governors of the Federal Reserve System ("Federal Reserve Board") provides, among other things, that dividends per share on the Company’s common stock generally should not exceed earnings per share, measured over the previous four fiscal quarters. Current regulations allow the Company and the Bank to pay dividends on their common stock if the Company’s or the Bank’s regulatory capital would not be reduced below the statutory capital requirements set by the Federal Reserve Board and the FDIC. (c) Stock Repurchase Program The Company has had various stock repurchase programs since March 1999. On October 23, 2014, the Company's Board of Directors authorized the repurchase of up to 5% of the Company's outstanding common shares, or approximately 1,513,000 shares, under the eleventh stock repurchase plan. The number, timing and price of shares repurchased will depend on business and market conditions, and other factors, including opportunities to deploy the Company's capital. On August 30, 2012, the Board of Directors approved the Company’s tenth stock repurchase plan, authorizing the repurchase of up to 5% of the Company’s outstanding shares of common stock, or approximately 757,000 shares. The Company repurchased 704,975 shares under the tenth stock repurchase plan, leaving 52,025 shares which will remain unpurchased as the eleventh repurchase program superseded the tenth repurchase program. The following table provides total repurchased shares and average share prices under the applicable plans for the periods indicated: Years Ended December 31, 2015 2014 2013 Plan Total (1) Tenth Plan Repurchased shares — 108,075 544,000 704,975 Stock repurchase average share price $ — $ 16.88 $ 15.88 $ 15.85 Eleventh Plan Repurchased shares 441,966 — — 441,966 Stock repurchase average share price $ 16.64 $ — $ — $ 16.64 (1) Represents shares repurchased and average price per share paid during the duration of each plan. During the years ended December 31, 2015 , 2014 and 2013 , the Company repurchased 22,300 , 48,304 and 13,138 shares at an average price of $17.09 , $16.53 and $14.29 respectively, to pay withholding taxes on the vesting of restricted stock that vested during the respective periods. (d) Issuance of Common Stock No common stock was issued during the year ended December 31, 2015, other than common stock related to the exercise of stock options and issuance of restricted stock awards as further described in Note (20) Stock-Based Compensation. In conjunction with the Washington Banking Merger effective on May 1, 2014, the Company issued 14,000,178 shares of the Company's common stock at a fair value of $226.2 million during the year ended December 31, 2014. In conjunction with the Valley Acquisition effective on July 15, 2013, the Company issued 1,533,267 shares of the Company's common stock at a fair value of $24.2 million during the year ended December 31, 2013. During the years ended December 31, 2014 and 2013, the Company additionally issued common stock related to the exercise of stock options and issuance of restricted stock awards.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) (“AOCI”) by component, during the years ended December 31, 2015 , 2014 and 2013 are as follows: December 31, 2015 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of the year $ 3,567 $ (189 ) $ 3,378 Other comprehensive (loss) income before reclassification (559 ) 108 (451 ) Amounts reclassified from AOCI for gain on sale of investment securities included in net income (1,067 ) 81 (986 ) Held to maturity transfer to available for sale 618 — 618 Net current period other comprehensive (loss) income (1,008 ) 189 (819 ) Balance of AOCI at the end of the year $ 2,559 $ — $ 2,559 (1) All amounts are net of tax. December 31, 2014 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of the year $ (923 ) $ (239 ) $ (1,162 ) Other comprehensive income before reclassification 4,676 50 4,726 Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income (186 ) — (186 ) Net current period other comprehensive income 4,490 50 4,540 Balance of AOCI at the end of the year $ 3,567 $ (189 ) $ 3,378 (1) All amounts are net of tax. December 31, 2013 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of the year $ 2,042 $ (298 ) $ 1,744 Other comprehensive (loss) income before reclassification (2,965 ) 59 (2,906 ) Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income — — — Net current period other comprehensive (loss) income (2,965 ) 59 (2,906 ) Balance of AOCI at the end of the year $ (923 ) $ (239 ) $ (1,162 ) (1) All amounts are net of tax.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value	Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 : Valuations for assets and liabilities traded in active exchange markets, or interest in open-end mutual funds that allow the Company to sell its ownership interest back to the fund at net asset value on a daily basis. Valuations are obtained from readily available pricing sources for market transactions involving identical assets, liabilities, or funds. Level 2 : Valuations for assets and liabilities traded in less active dealer, or broker markets, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or valuations using methodologies with observable inputs. Level 3 : Valuations for assets and liabilities that are derived from other valuation methodologies, such as option pricing models, discounted cash flow models and similar techniques using unobservable inputs, and not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. (a) Recurring and Nonrecurring Basis The Company used the following methods and significant assumptions to measure fair value of certain assets on a recurring and nonrecurring basis: Investment Securities Available for Sale and Held to Maturity : The fair values of all investment securities are based upon the assumptions market participants would use in pricing the security. If available, fair value of investment securities are determined by quoted market prices which is generally the case for mutual funds and other equities (Level 1). For investment securities where quoted market prices are not available, fair values are calculated based on market prices on similar securities (Level 2). Level 2 includes U.S. Treasury, U.S. Government and agency debt securities, municipal securities, corporate securities and mortgage-backed securities and collateralized mortgage obligations-residential. For investment securities where quoted prices or market prices of similar securities are not available, fair values are calculated by using observable and unobservable inputs such as discounted cash flows or other market indicators (Level 3). Security valuations are obtained from third party pricing services for comparable assets or liabilities. Impaired Loans : At the time a loan is considered impaired, its impairment is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, a loan’s observable market prices, or fair market value of the collateral if the loan is collateral-dependent. Impaired loans for which impairment is measured using the discounted cash flow approach are not considered to be measured at fair value because the loan’s effective interest rate is not a fair value input, and for the purposes of fair value disclosures, the fair value of these loans are measured commensurate with non-impaired loans. If the Company utilizes the fair market value of the collateral method, the fair value used to measure impairment is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business (Level 3). Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Other Real Estate Owned : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in Level 3 classification of the inputs for determining fair value. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers for commercial properties or certified residential appraisers for residential properties whose qualifications and licenses have been reviewed and verified by the Company. Once received, the Company reviews the assumptions and approaches utilized in the appraisal as well as the resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On a quarterly basis, the Company compares the actual selling price of collateral that has been liquidated to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Derivative Financial Instruments: The Company obtains broker/dealer quotes to value its interest rate derivative contracts, which use valuation models using observable market data as of the measurement date (Level 2). The following tables summarize the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014 . December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 35,577 $ — $ 35,577 $ — Municipal securities 220,993 — 220,993 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 546,132 — 546,132 — Corporate obligations 9,113 — 9,113 — Mutual funds and other equities 54 54 — — Total investment securities available for sale $ 811,869 $ 54 $ 811,815 $ — Derivative assets - interest rate swaps $ 543 $ — $ 543 $ — Derivative liability - interest rate swaps 543 — 543 — December 31, 2014 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 21,427 $ — $ 21,427 $ — Municipal securities 173,037 — 173,037 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 542,399 — 542,399 — Corporate obligations 4,010 — 4,010 — Mutual funds and other equities 1,973 1,973 — — Total $ 742,846 $ 1,973 $ 740,873 $ — There were no transfers between Level 1 and Level 2 during the years ended December 31, 2015 and 2014 . The Company may be required to measure certain financial assets and liabilities at fair value on a nonrecurring basis. These adjustments to fair value usually result from application of lower-of-cost-or-market accounting or write-downs of individual assets. The tables below represent assets measured at fair value on a nonrecurring basis at December 31, 2015 and December 31, 2014 and the net losses (gains) recorded in earnings during years ended December 31, 2015 and 2014 . Basis (1) Fair Value at December 31, 2015 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Year Ended December 31, 2015 (In thousands) Impaired loans: Real estate construction and land development: One-to-four family residential $ 1,753 $ 1,719 $ — $ — $ 1,719 $ 35 Total real estate construction and land development 1,753 1,719 — — 1,719 35 Total 1,753 1,719 — — 1,719 35 Total assets measured $ 1,753 $ 1,719 $ — $ — $ 1,719 $ 35 (1) Basis represents the unpaid principal balance of impaired loans. Basis (1) Fair Value at December 31, 2014 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Year Ended December 31, 2014 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 161 $ 138 $ — $ — $ 138 $ 23 Total commercial business 161 138 — — 138 23 Real estate construction and land development: One-to-four family residential 2,094 1,725 — — 1,725 350 Total real estate construction and land development 2,094 1,725 — — 1,725 350 Consumer 49 45 — — 45 5 Total 2,304 1,908 — — 1,908 378 Investment securities held to maturity: Mortgage back securities and collateralized mortgage obligations – residential: Private residential collateralized mortgage obligations 36 11 — 11 — 45 Total assets measured $ 2,340 $ 1,919 $ — $ 11 $ 1,908 $ 423 (1) Basis represents the unpaid principal balance of impaired loans and amortized cost of investment securities held to maturity. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015 and December 31, 2014 . December 31, 2015 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans measured at fair value $ 1,719 Market approach Adjustment for differences between the comparable sales (30.0%) - 63.9%; 24.5% December 31, 2014 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans measured at fair value $ 1,908 Market approach Adjustment for differences between the comparable sales (47.5%) - 96.2%; 7.0% (b) Fair Value of Financial Instruments Because broadly traded markets do not exist for most of the Company’s financial instruments, the fair value calculations attempt to incorporate the effect of current market conditions at a specific time. These determinations are subjective in nature, involve uncertainties and matters of significant judgment and do not include tax ramifications; therefore, the results cannot be determined with precision, substantiated by comparison to independent markets and may not be realized in an actual sale or immediate settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results. For all of these reasons, the aggregation of the fair value calculations presented herein do not represent, and should not be construed to represent, the underlying value of the Company. The tables below present the carrying value amount of the Company’s financial instruments and their corresponding estimated fair values at the dates indicated. December 31, 2015 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 126,640 $ 126,640 $ 126,640 $ — $ — Other interest earning deposits 6,719 6,723 — 6,723 — Investment securities available for sale 811,869 811,869 54 811,815 — Federal Home Loan Bank stock 4,148 N/A N/A N/A N/A Loans held for sale 7,682 7,883 — 7,883 — Loans receivable, net of allowance for loan losses 2,372,296 2,441,531 — — 2,441,531 Accrued interest receivable 10,469 10,469 5 3,335 7,129 Derivative assets - interest rate swaps 543 543 — 543 — Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,687,954 $ 2,687,954 $ 2,687,954 $ — $ — Certificate of deposit accounts 420,333 423,352 — 423,352 — Total deposits $ 3,108,287 $ 3,111,306 $ 2,687,954 $ 423,352 $ — Securities sold under agreement to repurchase $ 23,214 $ 23,214 $ 23,214 $ — $ — Junior subordinated debentures 19,424 15,000 — — 15,000 Accrued interest payable 207 207 50 133 24 Derivative liabilities - interest rate swaps 543 543 — 543 — December 31, 2014 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 121,636 $ 121,636 $ 121,636 $ — $ — Other interest earning deposits 10,126 10,145 — 10,145 — Investment securities available for sale 742,846 742,846 1,973 740,873 — Investment securities held to maturity 35,814 36,874 — 36,874 — Federal Home Loan Bank stock 12,188 N/A N/A N/A N/A Loans held for sale 5,582 5,710 — 5,710 — Loans receivable, net of allowance for loan losses 2,223,348 2,279,081 — — 2,279,081 Accrued interest receivable 9,836 9,836 3 3,009 6,824 Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,380,934 $ 2,380,934 $ 2,380,934 $ — $ — Certificate of deposit accounts 525,397 525,768 — 525,768 — Total deposits $ 2,906,331 $ 2,906,702 $ 2,380,934 $ 525,768 $ — Securities sold under agreement to repurchase $ 32,181 $ 32,181 $ 32,181 $ — $ — Junior subordinated debentures 19,082 19,082 — — 19,082 Accrued interest payable 411 411 62 328 21 The methods and assumptions, not previously presented, used to estimate fair value are described as follows: Cash and Cash Equivalents: The fair value of financial instruments that are short-term or reprice frequently and that have little or no risk are considered to have a fair value equal to carrying value (Level 1). Other Interest Earning Deposits: These deposits with other banks have maturities greater than three months. The fair value is calculated based upon market prices for similar deposits (Level 2). Federal Home Loan Bank Stock : Federal Home Loan Bank ("FHLB") stock is not publicly traded, as such, it is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. At December 31, 2015 the stock was stock of the FHLB of Des Moines and at December 31, 2014 the stock was stock of the FHLB of Seattle. The FHLB of Seattle merger with and into the FHLB of Des Moines was effective in second quarter of 2015. Loans Held for Sale : The fair value of loans held for sale is estimated based upon binding contracts or quotes from third party investors. (Level 2). Loans Receivable : Except for impaired loans discussed previously, fair value is based on discounted cash flows using current market rates applied to the estimated life (Level 3). While these methodologies are permitted under U.S. GAAP, they are not based on the exit price concept of the fair value required under ASC 820-10, Fair Value Measurements and Disclosures , and generally produce a higher value. Accrued Interest Receivable/Payable : The fair value of accrued interest receivable/payable balances are determined using inputs and fair value measurements commensurate with the asset or liability from which the accrued interest is generated. The carrying amounts of accrued interest approximate fair value (Level 1, Level 2 and Level 3). Deposits : For deposits with no contractual maturity, the fair value is assumed to equal the carrying value (Level 1). The fair value of fixed maturity deposits is based on discounted cash flows using the difference between the deposit rate and the rates offered by the Company for deposits of similar remaining maturities (Level 2). Securities Sold Under Agreement to Repurchase : Securities sold under agreement to repurchase are short-term in nature and they reprice on a daily basis. Fair value financial instruments that are short-term or reprice frequently and that have little or no risk are considered to have a fair value equal to carrying value (Level 1). Junior Subordinated Debentures: The fair value is estimated using discounted cash flow analysis based on current rates for similar types of debt, which many be unobservable, and considering recent trading activity of similar instruments in markets which can be inactive (Level 3). Off-Balance Sheet Financial Instruments : The majority of our commitments to extend credit, standby letters of credit and commitments to sell mortgage loans carry current market interest rates if converted to loans. As such, no premium or discount was ascribed to these commitments (Level 1). They are excluded from the preceding tables.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2015
Share-based Compensation [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock options generally vest ratably over three years and expire five years after they become exercisable or vest ratably over four years and expire ten years from date of grant. Restricted stock awards issued generally have a four -year cliff vesting or four -year ratable vesting schedule. The Company issues new shares of common stock to satisfy share option exercises and restricted stock awards. On July 24, 2014, the Company's shareholders approved the Heritage Financial Corporation 2014 Omnibus Equity Plan (the "Plan") that provides for the issuance of 1,500,000 shares of the Company's common stock in the form of stock options, stock appreciation rights, stock awards (which includes restricted stock unites, restricted stock, performance units, performance shares or bonus shares) and cash incentive awards. As of December 31, 2015 , 1,262,712 shares remain available for future issuance under the Company's stock-based compensation plans. (a) Stock Option Awards For the year ended December 31, 2015, the Company recognized no compensation expense and no related tax benefit related to stock options as all of the compensation expense related to the outstanding stock options had been recognized as of December 31, 2014. For the years ended December 31, 2014 and 2013 the Company recognized compensation expense related to stock options of $20,000 and $71,000 , respectively, with no related tax benefit for either period. The intrinsic value of options exercised during the years ended December 31, 2015 , 2014 and 2013 was $299,000 , $459,000 and $54,000 respectively. The cash proceeds from options exercised during the years ended December 31, 2015 , 2014 and 2013 were $751,000 , $915,000 and $200,000 , respectively. The following table summarizes the stock option activity for the years ended December 31, 2015 , 2014 and 2013 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) Outstanding at December 31, 2012 300,658 $ 17.48 Granted — — Exercised (16,553 ) 12.10 Forfeited or expired (89,623 ) 22.07 Outstanding at December 31, 2013 194,482 15.82 Granted (1) 90,248 10.72 Exercised (84,189 ) 10.86 Forfeited or expired (44,134 ) 22.76 Outstanding at December 31, 2014 156,407 13.59 Granted — — Exercised (61,529 ) 12.15 Forfeited or expired (15,470 ) 16.27 Outstanding at December 31, 2015 79,408 $ 14.19 2.89 $ 372 Vested and expected to vest at December 31, 2015 79,408 $ 14.19 2.89 $ 372 Exercisable at December 31, 2015 79,408 $ 14.19 2.89 $ 372 (1) Options granted during the year ended December 31, 2014 represent only the stock options issued in conjunction with the Washington Banking Merger. See Note (2) Business Combinations for additional information. The weighted average exercise price reflects the exchange ratio applied to the original Washington Banking exercise price pursuant to the Merger Agreement. (b) Restricted and Unrestricted Stock Awards For the years ended December 31, 2015 , 2014 and 2013 the Company recognized compensation expense related to restricted and unrestricted stock awards of $1.6 million , $1.4 million and $1.2 million , respectively, and a related tax benefit of $546,000 , $489,000 and $428,000 , respectively. As of December 31, 2015 , the total unrecognized compensation expense related to non-vested restricted stock awards was $2.9 million and the related weighted average period over which it is expected to be recognized is approximately 2.3 years. The vesting date fair value of restricted stock awards that vested during the years ended December 31, 2015 , 2014 and 2013 was $1.6 million , $1.4 million and $1.2 million , respectively. The following tables summarize the restricted and unrestricted stock award activity for the years ended December 31, 2015 , 2014 and 2013 : Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2012 189,670 $ 14.86 Granted 103,195 14.31 Vested (86,819 ) 15.55 Forfeited (3,107 ) 14.89 Nonvested at December 31, 2013 202,939 14.29 Granted 130,548 16.03 Vested (85,373 ) 14.37 Forfeited (9,445 ) 14.67 Nonvested at December 31, 2014 238,669 15.20 Granted 121,320 16.72 Vested (92,486 ) 15.12 Forfeited (2,982 ) 15.73 Nonvested at December 31, 2015 264,521 $ 15.92

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense is substantially due to Federal income taxes as the provision for the state of Oregon income taxes is insignificant. Income tax expense for the years ended December 31, 2015 , 2014 and 2013 consisted of the following: Years Ended December 31, 2015 2014 2013 (In thousands) Current tax expense $ 9,760 $ 9,992 $ 4,344 Deferred tax (benefit) expense 4,058 (3,087 ) 326 Decrease in valuation allowance — — (77 ) Income tax expense $ 13,818 $ 6,905 $ 4,593 A reconciliation of the Company's effective income tax rate with the Federal statutory income tax rate of 35% is as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Income tax expense at Federal statutory rate $ 17,957 $ 9,772 $ 4,959 Tax-exempt instruments (2,482 ) (1,598 ) (858 ) Non-deductible acquisition costs — 373 469 Federal tax credits (1) (812 ) (812 ) — Effects of BOLI (474 ) (159 ) (25 ) Tax resolutions (2) (300 ) (728 ) — Valuation allowance — — (77 ) Other, net (71 ) 57 125 Income tax expense $ 13,818 $ 6,905 $ 4,593 (1) Federal tax credits are provided for under the New Market Tax Credit program. A subsidiary of Heritage Bank was awarded an allocation of New Market Tax Credit investments consisting of three tranches totaling $25.0 million . Gross tax credits related to these tranches totaling $9.8 million are available through 2020 . The subsidiary is required to fund 85 percent of a tranche to claim the entire tax credit, and it had until May 15, 2015 to complete the funding. The tranche was funded in 2015 before the deadline. Tax benefits related to these credits were recognized for financial reporting purposes in the same period that the credits were recognized in the Company's income tax returns. As the tax credits were realized, the Company has reflected the impact of these credits in its estimated annual effective tax rate for 2015 and 2014. (2) Washington Banking Company had recorded tax-related liabilities prior to the merger effective date, which the Company assumed as part of the Washington Banking Merger. These tax-related liabilities were resolved during the years ended December 31, 2015 and 2014, resulting in a decrease of the Company's income tax expense for the years ended December 31, 2015 and 2014. The following table presents major components of the deferred income tax asset (liability) resulting from differences between financial reporting and tax basis: December 31, 2015 December 31, 2014 (In thousands) Deferred tax assets: Allowance for loan losses $ 6,317 $ 5,460 Accrued compensation 1,011 1,382 Stock compensation 890 818 Capital loss carryforward — 30 Unrealized losses charged to earnings on other than temporarily impaired investment securities — 338 Market discount on purchased loans 15,562 17,949 Foregone interest on nonaccrual loans 2,665 2,337 Net operating loss carryforward acquired from NCB 518 553 Difference in amounts reflected in financial statements and income tax basis of certain liabilities assumed in business combinations 89 3,492 Other deferred tax assets 1,503 1,394 Total deferred tax assets 28,555 33,753 Deferred tax liabilities: Deferred loan fees, net (3,489 ) (1,982 ) Premises and equipment (1,853 ) (1,937 ) FHLB stock (926 ) (2,768 ) Net unrealized gains charged to other comprehensive income on securities (1,389 ) (1,832 ) Indemnification asset — (392 ) Goodwill and other intangible assets (1,021 ) (1,560 ) Federal tax credits (876 ) (439 ) Junior subordinated debentures (2,225 ) (2,349 ) Other deferred tax liabilities (627 ) (730 ) Total deferred tax liabilities (12,406 ) (13,989 ) Deferred income tax asset, net $ 16,149 $ 19,764 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. A valuation allowance is required to be recognized for the portion of the deferred tax asset that will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. As of December 31, 2015, based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management expects to realize the benefits of these deductible differences. The Company had a net operating loss carryforward of $1.5 million and $1.6 million at December 31, 2015 and 2014 , respectively, that will expire in 2033 . The Company is limited to the amount of the net operating loss carryforward that it can deduct each year. The Company also had $85,000 of federal capital loss carryforwards as of December 31, 2014 , which were set to expire in 2018 , but the Company utilized these carryforwards on the 2014 tax return. There were no federal capital loss carryforwards as of December 31, 2015. A tax planning strategy has been developed that management believes will enable the Company to deduct all of the net operating loss carryforwards prior to the expiration date. Based on these estimates, management has no t recorded a valuation allowance as of December 31, 2015 . During the year ended December 31, 2013, management reversed the valuation allowance that was established in the prior year resulting in no valuation allowance at December 31, 2015. As of December 31, 2015 and 2014 , the Company had an insignificant amount of unrecognized tax benefits, none of which would materially affect its effective tax rate if recognized. The Company does not anticipate that the amount of unrecognized tax benefits will significantly increase or decrease in the next 12 months. The amount of interest and penalties accrued as of December 31, 2015 and 2014 and for the years ended December 31, 2015 , 2014 and 2013 were immaterial. The Company has qualified under provisions of the Internal Revenue Code to compute income taxes after deductions of additions to the bad debt reserves when it was registered as a Savings Bank. At December 31, 2015 , the Company had a taxable temporary difference of approximately $2.8 million that arose before 1988 (base-year amount). In accordance with FASB ASC 740, a deferred tax liability of an estimated $980,000 has not been recognized for the temporary difference. Management does not expect this temporary difference to reverse in the foreseeable future. The Company and its subsidiary file a United States consolidated federal income tax return and an Oregon State income tax return, and the tax years subject to examination by the Internal Revenue Service are the years ended December 31, 2015 , 2014 , 2013 and 2012 .

Regulatory Capital Requirements

Regulatory Capital Requirements	12 Months Ended
	Dec. 31, 2015
Regulatory Capital Requirements [Abstract]
Regulatory Capital Requirements	Regulatory Capital Requirements The Company is a bank holding company under the supervision of the Federal Reserve Bank of San Francisco. Bank holding companies are subject to capital adequacy requirements of the Federal Reserve Board under the Bank Holding Company Act of 1956, as amended, and the regulations of the Federal Reserve Board. Heritage Bank is a federally insured institution and thereby is subject to the capital requirements established by the FDIC. The Federal Reserve Board capital requirements generally parallel the FDIC requirements. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements and operations. Management believes as of December 31, 2015 , the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2015 and December 31, 2014 , the most recent regulatory notifications categorized Heritage Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's categories. Minimum Well- Actual $ % $ % $ % (Dollars in thousands) As of December 31, 2015: The Company consolidated Common equity Tier 1 capital to risk-weighted assets $ 129,673 4.5 % N/A N/A $ 345,993 12.0 % Tier 1 leverage capital to average assets 140,395 4.0 N/A N/A 365,232 10.4 Tier 1 capital to risk-weighted assets 172,897 6.0 N/A N/A 365,232 12.7 Total capital to risk-weighted assets 230,530 8.0 N/A N/A 395,148 13.7 Heritage Bank Common equity Tier 1 capital to risk-weighted assets 129,633 4.5 187,248 6.5 358,600 12.5 Tier 1 leverage capital to average assets 140,331 4.0 175,414 5.0 358,600 10.2 Tier 1 capital to risk-weighted assets 172,844 6.0 230,459 8.0 358,600 12.5 Total capital to risk-weighted assets 230,459 8.0 288,074 10.0 388,516 13.5 As of December 31, 2014: The Company consolidated Tier 1 leverage capital to average assets $ 132,881 4.0 % N/A N/A $ 340,292 10.2 % Tier 1 capital to risk-weighted assets 97,620 4.0 N/A N/A 340,292 13.9 Total capital to risk-weighted assets 195,240 8.0 N/A N/A 368,198 15.1 Heritage Bank Tier 1 leverage capital to average assets 132,853 4.0 166,066 5.0 332,147 10.0 Tier 1 capital to risk-weighted assets 97,585 4.0 146,378 6.0 332,147 13.6 Total capital to risk-weighted assets 195,171 8.0 243,964 10.0 360,053 14.8 Effective January 1, 2015 (with some changes transitioned into full effectiveness over two to four years), we became subject to new capital adequacy requirements approved by the Federal Reserve and the FDIC that implement the revised standards of the Basel Committee on Banking Supervision, commonly called Basel III, and address relevant provisions of the Dodd-Frank Act. Under the new capital requirements both the Company and the Bank are required to have a common equity Tier 1 capital ratio of 4.5%. In addition, both the Company and the Bank are required to have a Tier 1 leverage ratio of 4.0%, a Tier 1 risk-based ratio of 6.0% and a total risk-based ratio of 8.0%. Both the Company and the Bank are required to establish a “conservation buffer”, consisting of common equity Tier 1 capital, equal to 2.5%. The capital conservation buffer is designed to ensure that banks build up capital buffers outside periods of stress which can be drawn down as losses are incurred. An institution that does not meet the conservation buffer will be subject to restrictions on certain activities including payment of dividends, stock repurchases and discretionary bonuses to executive officers. The conservation buffer is being phased in beginning in 2016 and will take full effect on January 1, 2019. Certain calculations under the rules will also have phase-in periods.

Heritage Financial Corporation

Heritage Financial Corporation (Parent Company Only)	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Heritage Financial Corporation (Parent Company Only)	Heritage Financial Corporation (Parent Company Only) Following is the condensed financial statements of the Parent Company. HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Financial Condition December 31, 2015 December 31, 2014 (In thousands) ASSETS Cash and interest earning deposits $ 6,722 $ 8,835 Investment in subsidiary bank 482,749 465,442 Other assets 1,185 863 Total assets $ 490,656 $ 475,140 LIABILITIES AND STOCKHOLDERS’ EQUITY Junior subordinated debentures $ 19,424 $ 19,082 Other liabilities 1,262 1,552 Total stockholders’ equity 469,970 454,506 Total liabilities and stockholders’ equity $ 490,656 $ 475,140 HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Income Years Ended December 31, 2015 2014 2013 (In thousands) INTEREST INCOME: Interest and dividends on interest earning deposits and other assets $ 28 $ 17 $ 22 Total interest income 28 17 22 INTEREST EXPENSE: Junior subordinated debentures 827 458 — Total interest expense 827 458 — Net interest (expense) income (799 ) (441 ) 22 NONINTEREST INCOME: Dividends from subsidiary banks 22,000 66,300 26,000 Equity in (excess distributed) undistributed income of subsidiary banks 18,131 (40,737 ) (13,001 ) Other income — 3 — Total noninterest income 40,131 25,566 12,999 NONONTEREST EXPENSE: Professional services 263 2,943 1,718 Other expense 3,120 3,109 2,905 Total noninterest expense 3,383 6,052 4,623 Income before income taxes 35,949 19,073 8,398 Income tax benefit (1,540 ) (1,941 ) (1,177 ) Net income $ 37,489 $ 21,014 $ 9,575 HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Cash Flows Years Ended December 31, 2015 2014 2013 (In thousands) Cash flows from operating activities: Net income $ 37,489 $ 21,014 $ 9,575 Adjustments to reconcile net income to net cash provided by operating activities: Equity in excess distributed (undistributed) income of subsidiary bank (18,131 ) 40,737 13,001 Net excess tax (benefit) deficiencies from exercise of stock options and vesting of restricted stock (140 ) (118 ) 37 Restricted stock compensation expense 1,555 1,395 1,223 Stock option compensation expense — 20 71 Net change in other assets and liabilities (125 ) 817 (513 ) Net cash provided by operating activities 20,648 63,865 23,394 Cash flows from investing activities: Investment in subsidiary — (43,215 ) (21,666 ) Net cash used in investing activities — (43,215 ) (21,666 ) Cash flows from financing activities: Common stock cash dividends paid (15,916 ) (12,892 ) (6,672 ) Proceeds from exercise of stock options 751 915 200 Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock 140 118 (37 ) Repurchase of common stock (7,736 ) (2,601 ) (8,825 ) Net cash used in financing activities (22,761 ) (14,460 ) (15,334 ) Net (decrease) increase in cash and cash equivalents (2,113 ) 6,190 (13,606 ) Cash and cash equivalents at beginning of year 8,835 2,645 16,251 Cash and cash equivalents at end of year $ 6,722 $ 8,835 $ 2,645

Selected Quarterly Financial Da

Selected Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Selected Quarterly Financial Data (Unaudited)	Selected Quarterly Financial Data (Unaudited) Results of operations on a quarterly basis were as follows: Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest income $ 34,249 $ 33,990 $ 33,484 $ 34,016 Interest expense 1,575 1,520 1,544 1,481 Net interest income 32,674 32,470 31,940 32,535 Provision for loan losses 1,208 1,189 851 1,124 Net interest income after provision for loan losses 31,466 31,281 31,089 31,411 Noninterest income 8,345 6,881 9,544 7,498 Noninterest expense 26,038 26,079 27,322 26,769 Income before provision for income taxes 13,773 12,083 13,311 12,140 Income tax expense 3,994 3,358 3,819 2,647 Net income $ 9,779 $ 8,725 $ 9,492 $ 9,493 Basic earnings per common share $ 0.32 $ 0.29 $ 0.32 $ 0.32 Diluted earnings per common share 0.32 0.29 0.32 0.32 Cash dividends declared on common stock 0.10 0.11 0.11 0.21 Year Ended December 31, 2014 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest income $ 17,613 $ 30,023 $ 35,031 $ 38,439 Interest expense 872 1,426 1,724 1,659 Net interest income 16,741 28,597 33,307 36,780 Provision for loan losses 458 691 594 2,851 Net interest income after provision for loan losses 16,283 27,906 32,713 33,929 Noninterest income 2,307 4,780 5,483 3,897 Noninterest expense 14,779 26,994 28,363 29,243 Income before provision for income taxes 3,811 5,692 9,833 8,583 Income tax expense 1,268 1,544 2,765 1,328 Net income $ 2,543 $ 4,148 $ 7,068 $ 7,255 Basic earnings per common share $ 0.16 $ 0.16 $ 0.23 $ 0.24 Diluted earnings per common share 0.16 0.16 0.23 0.24 Cash dividends declared on common stock 0.16 — 0.09 0.25

Description of Business, Basi34

Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements (Policies)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Heritage Financial Corporation ("Heritage" or the “Company”) is a bank holding company that was incorporated in the State of Washington in August 1997. The Company is primarily engaged in the business of planning, directing and coordinating the business activities of its wholly-owned subsidiary, Heritage Bank (the “Bank”). The Bank is a Washington-chartered commercial bank and its deposits are insured by the FDIC. The Bank is headquartered in Olympia, Washington and conducts business from its 67 branch offices as of December 31, 2015 located throughout Washington State and the greater Portland, Oregon area. The Bank’s business consists primarily of commercial lending and deposit relationships with small businesses and their owners in its market areas and attracting deposits from the general public. The Bank also makes real estate construction and land development loans and consumer loans and originates first mortgage loans on residential properties primarily located in its market area. The Company has expanded its footprint through mergers and acquisitions. The largest of these transactions was the strategic merger with Washington Banking Company (“Washington Banking”) and its wholly owned subsidiary bank, Whidbey Island Bank ("Whidbey"). Effective May 1, 2014, Washington Banking merged with and into Heritage and Whidbey merged with and into Heritage Bank and this transaction is referred to herein as the "Washington Banking Merger". In connection with the Washington Banking Merger, Heritage also acquired as a subsidiary the Washington Banking Master Trust, a Delaware statutory business trust ("Master Trust"). Pursuant to the merger agreement, Heritage assumed the performance and observance of the covenants to be performed by Washington Banking under an indenture relating to $25.0 million in trust preferred securities issued in 2007 and the due and punctual payment of the principal of and premium and interest on such trust preferred securities. For additional information, see Note (11) Junior Subordinated Debentures.
Basis of Presentation	Basis of Presentation The accounting and reporting policies of the Company and its subsidiaries conform to U.S. Generally Accepted Accounting Principles (“GAAP”). In preparing the Consolidated Financial Statements management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting periods. Actual results could differ from these estimates. The accompanying Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiary, the Bank. All significant intercompany balances and transactions among the Company and the Bank have been eliminated in consolidation. For financial reporting purposes, the Company's investment in the Master Trust is accounted for under the equity method and is included in prepaid expenses and other assets on the Company's Consolidated Statements of Financial Condition. The junior subordinated debentures issued and guaranteed by the Company and held by the Master Trust are reflected as liabilities on the Company's Consolidated Statements of Financial Condition. Certain prior year amounts have been reclassified to conform to the current year’s presentation. Specifically, the Company has eliminated the classification of "noncovered" and "covered" loans from the Consolidated Financial Statements based on the termination of the FDIC shared-loss agreements during the year ended December 31, 2015. For more information on the termination agreement, see Note (6) FDIC Indemnification Asset. Accordingly, all loans receivable previously reported as "noncovered" and those previously reported as "covered" by FDIC shared-loss agreements have been combined and reclassified as "loans receivable" for all periods presented. Reclassifications had no effect on the prior years' net income or stockholders’ equity.
Significant Accounting Policies	Significant Accounting Policies Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents includes cash on hand and in banks, interest earning deposits with original maturities of 90 days or less, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, other interest bearing deposits, federal funds sold and repurchase agreements. Investment Securities The Company identifies investments as held to maturity or available for sale at the time of acquisition. Securities are classified as held to maturity when the Company has the ability and positive intent to hold them to maturity. Securities classified as available for sale are available for future liquidity requirements and may be sold prior to maturity. During the year ended December 31, 2015, the Company transferred all of its investment securities classified as held to maturity to available for sale. See Note (3) Investment Securities for additional information. Investment securities held to maturity were recorded at amortized cost. Securities available for sale are carried at fair value. Interest income includes amortization of purchase premiums or accretion of purchase discounts using the interest method. Unrealized gains and losses on securities available for sale are generally excluded from earnings and are reported in other comprehensive income (loss), net of related income taxes. Realized gains and losses on sale of investment securities are computed on the specific identification method. Transfers of securities between the available for sale and held to maturity categories are accounted for at fair value. Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Although these evaluations involve significant judgment, an unrealized loss in the fair value of a debt security is generally deemed to be temporary when the fair value of the security is below the carrying value primarily due to changes in interest rates, there has not been significant deterioration in the financial condition of the issuer, and it is not more likely than not that the Company will be required to, nor does it have the intent to sell the security before the anticipated recovery of its remaining carrying value. If any of these criteria is not met, the impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. If any of these criteria are not met, the entire difference between amortized cost and fair value is recognized as impairment through earnings, and a new cost basis is established for the security. Continued deterioration of market conditions could result in additional impairment losses recognized within the investment portfolio. Other factors that may be considered in determining whether a decline in the value of either a debt or an equity security is “other than temporary” include ratings by recognized rating agencies; actions of commercial banks or other lenders relative to the continued extension of credit facilities to the issuer of the security; the financial condition, capital strength and near-term prospects of the issuer and recommendations of investment advisors or market analysts. Loans Held for Sale Mortgage loans held for sale are carried at the lower of amortized cost or fair value by loan type. Any loan that management does not have the intent and ability to hold for the foreseeable future or until maturity or payoff is classified as held for sale at the time of origination, purchase or securitization, or when such decision is made. Unrealized losses on such loans are recorded as a valuation allowance and included in income. Loans Receivable and Loan Commitments Loans receivable include loans originated by the Bank as well as loans acquired in business combinations. Loans acquired in a business combination are designated as “purchased” loans. These loans are recorded at their fair value at acquisition date, factoring in credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for loan losses is not carried over or recorded as of the acquisition date. Loans purchased with evidence of credit deterioration since origination for which it is probable that all contractually required payments will not be collected are accounted for under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“FASB ASC”) 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality . These loans are identified as purchased credit impaired ("PCI") loans. In situations where such loans have similar risk characteristics, loans may be aggregated into pools to estimate cash flows. A pool is accounted for as a single asset with a single interest rate, cumulative loss rate and cash flow expectation. Expected cash flows at the acquisition date in excess of the fair value of loans are considered to be accretable yield, which is recognized as interest income over the life of the loan or pool using a level yield method if the timing and amount of the future cash flows of the loan or pool is reasonably estimable. The cash flows expected over the life of the PCI loan or pool are estimated quarterly using an internal cash flow model that projects cash flows and calculates the carrying values of the loans or pools, book yields, effective interest income and impairment, if any, based on loan or pool level events. Assumptions as to default rates, loss severity and prepayment speeds are utilized to calculate the expected cash flows. To the extent actual or projected cash flows are less than previously estimated, additional provisions for loan losses on the purchased loan portfolios will be recognized immediately into earnings. To the extent actual or projected cash flows are more than previously estimated, the increase in cash flows is recognized immediately as a recapture of provision for loan losses up to the amount of any provision previously recognized for that loan or pool, if any, then prospectively recognized in interest income as a yield adjustment. Any disposals of a loan in a pool, including sale of a loan, payment in full or foreclosure results in the removal of the loan from the loan pool at the carrying amount. Loans accounted for under FASB ASC 310-30 are generally considered accruing and performing loans as the loans accrete interest income over the estimated life of the loan when cash flows are reasonably estimable. Accordingly, PCI loans that are contractually past due are still considered to be accruing and performing loans. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans and interest income may be recognized on a cash basis or all cash payments may be accounted for a as a reduction of the principal amount outstanding. Loans purchased that are not accounted for under FASB ASC 310-30 are accounted for under FASB ASC 310-20, Receivables—Nonrefundable fees and Other Costs . These loans are identified as non-PCI loans, and are initially recorded at their fair value, which is estimated using an internal cash flow model and assumptions similar to the FASB ASC 310-30 loans. The difference between the estimated fair value and the unpaid principal balance at acquisition date is recognized as interest income over the life of the loan using an effective interest method for non-revolving credits or a straight-line method, which approximates the effective interest method, for revolving credits. Any unrecognized discount for a loan that is subsequently repaid will be recognized immediately into income. Loans are generally recorded at the unpaid principal balance, net of premiums, unearned discounts and net deferred loan origination fees and costs. The premiums and unearned discounts may include values determined in purchase accounting. Interest on loans is calculated using the simple interest method based on the daily balance of the principal amount outstanding and is credited to income as earned. Loans are considered past due or delinquent when principal or interest payments are past due 30 days or more. Covered Loans : Purchased loans subject to FDIC shared-loss agreements were historically identified as “covered” on the Consolidated Financial Statements. The FDIC shared-loss agreements were terminated during the year ended December 31, 2015 and as such the covered designation was removed. For further information see Note (6) FDIC Indemnification Asset. The covered loans included the majority of loans from the Company's acquisition of Cowlitz Bank and certain loans from the Washington Banking Merger, which included loans from Washington Banking's acquisitions of City Bank and North County Bank. The same accounting principles that apply to loans receivable applied to covered loans receivable, with the added benefit of shared-loss agreements. Nonaccrual Loans : Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Delinquent loans may remain on accrual status between 30 days and 89 days past due. The accrual of interest is generally discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Loans are placed on nonaccrual at an earlier date if collection of the contractual principal or interest is doubtful. All interest accrued but not collected on loans deemed nonaccrual during the period is reversed against interest income in that period. The interest payments received on nonaccrual loans are generally accounted for on the cost-recovery method whereby the interest payment is applied to the principal balances. Loans may be returned to accrual status when improvements in credit quality eliminate the doubt as to the full collectability of both interest and principal and a period of sustained performance has occurred. Substantially all loans that are nonaccrual are also considered impaired. Income recognition on impaired loans conforms to that used on nonaccrual loans. Loans are charged-off if collection of the contractual principal or interest as scheduled in the loan agreement is doubtful. The Company's policies for placing loans on nonaccrual status, recording payments received on nonaccrual loans, resuming accrual of interest, determining past due or delinquency status and charging off uncollectible loans generally do not differ by loan segments or classes. However, credit card loans and other consumer loans are typically charged-off no later than 180 days past due. Impaired Loans : A loan is considered impaired when, based on current information and events, it is probable the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrowers, including length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amounts of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient the loan’s observable market price or the fair value of the collateral (less cost to sell) if the loan is collateral dependent. Income recognition on impaired loans conforms to that used on nonaccrual loans. Troubled Debt Restructures : A troubled debt restructured loan (“TDR”) is a restructuring in which the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to a borrower that it would not otherwise consider. These concessions may include changes of the interest rate, forbearance of the outstanding principal or accrued interest, extension of the maturity date, delay in the timing of the regular payment, or any other actions intended to minimize potential losses. The Bank does not forgive principal for a majority of its TDRs, but in those situations where principal is forgiven, the entire amount of such principal forgiveness is immediately charged off to the extent not done so prior to the modification. The Bank also considers insignificant delays in payments when determining if a loan should be classified as a TDR. The Company has implemented more stringent definitions of concessions and impairment measures for PCI loans which are not in pools as these loans have known credit deteriorations and are generally accreting income at a lower discounted rate as compared to the contractual note rate based on the guidance of FASB ASC 310-30. Modifications of PCI loans which are not in pools are considered TDRs if they result in a decrease in expected cash flows when compared to the pre-modification expected ash flows, without any other changes to the agreement to consider. A loan that has been placed on nonaccrual status that is subsequently restructured will usually remain on nonaccrual status until the borrower is able to demonstrate repayment performance in compliance with the restructured terms for a sustained period, typically for six months. A restructured loan may return to accrual status sooner based on other significant events or mitigating circumstances. A loan that has not been placed on nonaccrual status may be restructured and such loan may remain on accrual status after such restructuring. In these circumstances, the borrower has made payments before the restructuring and is expected to continue to perform after the restructuring. Generally, this type of restructuring involves a reduction in the loan interest rate and/or a change to interest-only payments for a period of time. The restructured loan is considered impaired despite the accrual status and a specific valuation allowance, if any, is calculated in the manner previously described. A TDR is considered defaulted if, during the 12-month period after the restructure, the loan has not performed in accordance to the restructured terms. Defaults include loans whose payments are 90 days or more past due and loans whose revised maturity date passed and no further modifications will be granted for that borrower. A loan may subsequently be excluded from the TDR disclosures if: (i) the restructured interest rate was greater than or equal to the interest rate of a new loan with comparable risk at the time of the restructure, and (ii) the loan is no longer impaired based on the terms of the restructured agreement. The Bank's policy is that the borrower must demonstrate a sustained period, typically six consecutive months, of payments in accordance with the modified loan before it can be reviewed for removal from the TDR disclosure under the second criteria. However, the loan must be reported as a TDR in at least one annual report on Form 10-K. Once a loan has been classified as a TDR, it will continue to be disclosed as an impaired loan until paid off or charged-off, even if the loan subsequently is no longer disclosed as a TDR. Unfunded Loan Commitments : Unfunded loan commitments are generally related to the unused portion of the total commitment of a loan or providing credit facilities to clients of the Bank and are not actively traded financial instruments. These unfunded commitments are disclosed as financial instruments with off-balance sheet risk in Note (15) Commitments and Contingencies and Note (19) Fair Value in the Notes to Consolidated Financial Statements. Loan Fees and Costs Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment of the yields of the loans over their contractual lives, adjusted for prepayment of the loans, using the effective interest method or the straight-line method, when the straight-line method approximates the effective interest method. In the event loans are sold, the unamortized net deferred loan origination fees or costs are recognized as a component of the gains or losses on the sales of loans. Allowance for Loan Losses Allowance for Loan Losses : The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance for loan losses on loans designated as non-PCI loans is similar to the methodology described below except that for non-PCI loans, the remaining unaccreted discounts resulting from the fair value adjustments recorded at the time the loans were purchased are additionally factored into the allowance methodology. The allowance for loan losses on PCI loans is described in the “Allowance for Loan Losses on Purchased Credit Impaired Loans” section below. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses from risks inherent in the loan portfolio. The Company’s allowance for loan losses methodology includes allowance allocations calculated in accordance with FASB ASC 310, Receivables and allowance allocations calculated in accordance with FASB ASC 450, Contingencies . Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to nonaccrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for loan losses also reflects all actions taken on all loans for a particular period. Therefore, the amount of the provision reflects not only the necessary increases in the allowance for loan losses related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in specific valuation allowances for impaired loans or loan pools. Losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The level of the allowance reflects management’s continuing evaluation of known and inherent risks in the loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. Loans which management determines are impaired are individually evaluated for impairment, and specific valuation allowances are recorded, if any, on these loans based on the methodology previously described. Loans that are determined not to meet management's definition of impaired are collectively evaluated for impairment based on (i) historical loss factors determined in accordance with FASB ASC 450 based on historical loan loss experience for similar loans with similar characteristics and trends; and (ii) environmental loss factors that reflect the impact of current conditions, as determined in accordance with FASB ASC 450 based on general economic conditions and other qualitative risk factors both internal and external to the Company. The historical loss factors and environmental loss factors are combined and multiplied against the outstanding principal balances of loans in pools of similar loans with similar characteristics. The Company evaluates specific loans for credit quality indicators and performs regular analysis and evaluation of problem loans. Loans are classified based on an internal credit risk grading process that evaluates, among other things: (i) the obligor’s ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the loan officer level for all loans. When a loan is performing but has an assigned risk grade other than pass, the loan officer analyzes the loan to determine an appropriate monitoring and collection strategy. When a loan is nonperforming or has been classified as a nonaccrual loan, a member from the special assets department will analyze the loan to determine if it is impaired. If the loan is considered impaired, the special assets department will evaluate the need for a specific valuation allowance on the loan. Specific valuation allowances are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies and economic conditions affecting the borrower’s industry, among other things. Historical loss factors are calculated based on the historical loss experience and recovery experience of specific classes of loans. The Company calculates historical loss ratios for the classes of loans based on the proportion of actual charge-offs and recoveries experienced to the total loans in the pool for a rolling twelve quarter average. Environmental loss factors are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) levels of and trends in delinquencies and impaired loans; (ii) levels of and trends in charge-offs and recoveries; (iii) trends in volume and terms of loans (iv) effects of changes in risk selection and underwriting standards, and other changes in lending policies, procedures, and practices; (v) experience, ability, and depth of lending management and other relevant staff; (vi) national and local economic trends and conditions; (vii) other external factors such as competition, legal, and regulatory; (viii) effects of changes in credit concentrations, and (ix) other factors. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Each component is determined to be on a scale of risk. The results are then utilized in a matrix to determine an appropriate environmental loss factor for each class of loan. An additional environmental factor is added after the calculated matrix factor if the specific loan is risk graded worse than a rating of "watch". The allowance for loan losses evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. While management utilizes its best judgment and information available to recognize losses on loans, future additions to the allowance may be necessary based on declines in local and national economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. Such agencies may require the Bank to make adjustments to the allowance based on their judgments about information available to them at the time of their examinations. The Company believes the allowance for loan losses is appropriate given all of the above considerations. Allowance for Loan Losses on Purchased Credit Impaired Loans: The PCI loans acquired in the Company's mergers and acquisitions are subject to the Company’s internal and external credit review. Under the accounting guidance of FASB ASC 310-30, the allowance for loan losses on PCI loans is measured at each financial reporting period, or measurement date, based on expected cash flows. If and when credit deterioration, or decreases in expected cash flows initially estimated, occurs subsequent to the acquisition date, a provision for loan losses will be charged to earnings as of the measurement date. Prior to the termination of the FDIC shared-loss agreements, a provision for loan losses on PCI loans was charged to earnings for the full amount without regard to the FDIC shared-loss agreements, and the portion of the loss reimbursable from the FDIC was recorded in noninterest income and increased the FDIC indemnification asset. Allowance for Losses on Unfunded Commitments: The Bank is also party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the disbursed amounts recognized in the Consolidated Statements of Financial Condition. The Company has a policy in which it evaluates the risk on a quarterly basis, and provides for an allowance for credit losses, as necessary. The methodology is similar to the allowance for loan losses, and includes an estimate of the probability of drawdown of the loan commitment. Based on its analysis, the Company has recorded an allowance for off-balance sheet financial instruments of $170,000 as of both December 31, 2015 and 2014 . This allowance is reported within accrued expenses and other liabilities on the Company's Consolidated Statements of Financial Condition. Mortgage Banking Operations Prior to the second quarter of 2013 and since the second quarter 2014, the Company sells one-to-four family residential loans on a servicing released basis and recognizes a cash gain or loss. A cash gain or loss is recognized to the extent that the sales proceeds of the loans sold differ from the net book value at the time of sale. Income from one-to-four family residential loans brokered to other lenders is recognized into income on date of loan closing. Commitments to sell one-to-four family residential loans are made primarily during the period between the taking of the loan application and the closing of the loan. The timing of making these sale commitments is dependent upon the timing of the borrower’s election to lock-in the mortgage interest rate and fees prior to loan closing. Most of these sale commitments are made on a best-efforts basis whereby the Bank is only obligated to sell the loan if the loan is approved and closed by the Bank. Commitments to fund one-to-four family residential loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these loans are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates between the date the interest on the loan was locked and the balance sheet date. The Company enters into forward commitments for the future delivery of one-to-four family residential loans when interest rate locks are entered into, in order to hedge the interest rate risk resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in other income. The fair value of these derivative instruments was not significant at December 31, 2015 and 2014. FDIC Indemnification Asset The FDIC indemnification asset represented the present value of the estimated losses on loans to be reimbursed by the FDIC. The termination of the FDIC shared-loss agreements during the year ended December 31, 2015 eliminated this asset. See Note (6) FDIC Indemnification Asset for further information on the termination agreement. The FDIC indemnification asset was measured at estimated fair value at acquisition dates on the same basis as the loans. The present value was calculated using the shorter of the shared-loss agreement terms or the life of the loan. Under the terms of the FDIC shared-loss agreements, the FDIC absorbed 80% of losses and received 80% of loss recoveries for the loans during the terms of the agreements. Certain shared-loss agreements had loss minimums or tranches which reduced the shared-loss percentages during the coverage period. The FDIC indemnification asset was reduced as losses were recognized on loans and shared-loss payments were received from the FDIC. Since the FDIC indemnification asset was initially recorded at estimated fair value using a discount rate, a portion of the discount was accreted into noninterest income during each reporting period. The FDIC indemnification asset was evaluated quarterly. Realized losses in excess of prior estimates immediately increased the FDIC indemnification asset by a credit to noninterest income. Conversely, if realized losses were less than prior estimates, the FDIC indemnification asset was reduced by a charge to noninterest income on a prospective basis, and any change in value was limited to the contractual terms of the shared-loss agreements. Other Real Estate and Other Assets Owned Other real estate acquired by the Company in satisfaction of debt is held for sale and recorded at fair value at time of foreclosure. When property is acquired, it is recorded at the estimated fair value (less the costs to sell) at the date of acquisition, not to exceed net realizable value, and any resulting write-down is charged to the allowance for loan losses. After acquisition, all costs incurred in maintaining the property are expensed. Costs relating to the development and improvement of the property, however, are capitalized to the extent of the property’s net realizable value. Premises and Equipment Premises and equipment, including leasehold improvements, are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets or the lease period, whichever is shorter. The estimated useful lives used to compute depreciation and amortization for buildings and building improvements is 15 to 39 years; and for furniture, fixtures and equipment is three to seven years. The Company reviews buildings, leasehold improvements and equipment for impairment whenever events or changes in the circumstances indicate that the undiscounted cash flows for the property are less than its carrying value. If identified, an impairment loss is recognized through a charge to earnings based on the fair value of the property. Bank Owned Life Insurance The Company has bank owned life insurance (“BOLI”), of which $32.5 million was acquired in the Washington Banking Merger at May 1, 2014. These policies insure the lives of certain current or former Bank officers or former Whidbey officers, and name the Bank as beneficiary. Noninterest income is generated tax-free (subject to certain limitations) from the increase in the policies' underlying investments made by the insurance company. The Bank utilizes BOLI to partially offset costs associated with employee compensation and benefit programs with the earnings on the BOLI. The Company records BOLI at the amount that can be realized under the insurance contract at the statement of financial condition date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Other Intangible Assets The other intangible assets represents the core deposit intangible (“CDI”) acquired in business combinations. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI is amortized over an estimated useful life which approximates the existing deposit relationships acquired on an accelerated method. The Company evaluates such identifiable intangibles for impairment when an indication of impairment exists. Goodwill The Company’s goodwill represents the excess of the purchase price over the fair value of net assets acquired in acquisitions. In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU" or "Update") 2011-08 Intangibles – Goodwill and Other (Topic 350), an entity is not required to calculate the fair value of a rep
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements FASB ASU 2014-09 , Revenue from Contracts with Customers , was issued in May 2014. Under this Update, FASB created a new Topic 606 which is in response to a joint initiative of FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and international financial reporting standards that would: • Remove inconsistencies and weaknesses in revenue requirements. • Provide a more robust framework for addressing revenue issues. • Improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. • Provide more useful information to users of financial statements through improved disclosure requirements. • Simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The Update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. The Company is currently evaluating the impact that this Update will have on its Consolidated Financial Statements. FASB ASU 2014-11 , Transfers and Servicing: Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures , was issued in June 2014. This Update aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements, such as secured borrowings. The guidance eliminates sale accounting and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The Update requires new and expanded disclosures that are effective for interim or annual reporting periods beginning after December 15, 2014, with certain requirements applicable for periods beginning after March 31, 2015. The adoption of this Update did not have a material impact on the Company's Consolidated Financial Statements. FASB ASU 2014-17 , Business Combinations (Topic 805): Pushdown Accounting , was issued in November 2014. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity's most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This ASU did not have a material impact on the Company’s Consolidated Financial Statements. FASB ASU 2015-16 , Business Combinations (Topic 805) , was issued in September 2015. Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period. To simplify the accounting for adjustments made to provisional amounts, the Update requires that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The Update did not have an impact on the Company's Consolidated Financial Statements as of December 31, 2015. FASB ASU 2016-01 , Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10) , was issued in January 2016, to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information. This Update contains several provisions, including but not limited to 1) require equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; 2) simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminated the requirement to disclose the method(s) and significant assumptions used to estimate fair value ; and 4) require separate presentation of financial assets and liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The Update is effective for public entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently evaluating the impact that this Update will have on its Consolidated Financial Statements. FASB ASU 2016-02 , Leases (Topic 842) , was issued in February 2016, to increase transparency and comparability of leases among organizations and to disclose key information about leasing arrangements. The main difference between previous GAAP and Topic 842 is the lessees' recognition of lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP, and the classification of all cash payments within operating activities in the statement of cash flows. There continues to be differentiation between finance leases and operating leases. In transition, lessees and lessors are required to recognize and measure leases a the beginning of the earliest period presented using a modified retrospective approach. The Update is effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact that this Update will have on its Consolidated Financial Statements.

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Breakdown of consideration transferred	The total consideration transferred in the Washington Banking Merger consisted of the following: Washington Banking (In thousands) Consideration transferred Cash paid (1) $ 42,895 Fair value of common shares issued (2) 224,151 Fair value of restricted stock unit awards (3) 2,092 Fair value of common stock options 481 Total consideration transferred $ 269,619 (1) Includes $3,000 of cash paid due to fractional shares and $27,000 of cash paid to dissenters. (2) Total of 13,870,716 shares issued. Excludes 1,686 shares held by dissenting shareholders and paid in cash and 165 fractional shares paid in cash. (3) Total number of converted shares was 129,462 . Fair value includes 26,783 shares which were forfeited by the Washington Banking shareholders to pay applicable taxes, totaling fair value of $433,000 .
Preliminary fair value estimates of assets acquired and liabilities assumed	The fair value estimates of the assets acquired and liabilities assumed in the Washington Banking Merger were as follows: Washington Banking (In thousands) Assets Cash and cash equivalents $ 74,947 Investment securities available for sale 458,312 Loans held for sale 3,923 Loans receivable 895,978 Loans receivable, covered at merger date 107,050 FDIC indemnification asset 7,174 Other real estate owned ($5,122 covered by FDIC shared-loss agreements at May 1, 2014 merger date) 7,121 Premises and equipment 31,776 Federal Home Loan Bank stock 7,064 Bank owned life insurance 32,519 Accrued Interest Receivable 4,943 Other intangible assets 11,194 Prepaid expenses and other assets 14,852 Total assets acquired 1,656,853 Liabilities Deposits 1,433,894 Junior subordinated debentures 18,937 Accrued expenses and other liabilities 24,067 Total liabilities assumed 1,476,898 Net assets acquired $ 179,955 A summary of the net assets purchased, the fair value adjustments and resulting goodwill recognized from the Washington Banking Merger are presented in the following table. Goodwill on mergers represents the excess of the consideration transferred over the estimated fair value of the net assets acquired and liabilities assumed. Washington Banking (In thousands) Cost basis of net assets on merger date $ 181,782 Less: Consideration transferred (269,619 ) Fair value adjustments: Loans held for sale 86 Loans receivable (12,811 ) Loans receivable, covered at merger date 6,384 FDIC indemnification asset 357 Other real estate owned 387 Premises and equipment (1,540 ) Other intangible assets 10,216 Prepaid expenses and other assets (6,416 ) Deposits (1,737 ) Junior subordinated debentures 6,837 Accrued expenses and other liabilities (3,590 ) Goodwill recognized $ (89,664 )
Unaudited pro forma information	The following table presents certain pro forma information, for illustrative purposes only, for the years ended December 31, 2014 and 2013 as if the Washington Banking Merger had occurred on January 1, 2013. The estimated pro forma information combines the historical results of Washington Banking with the Company's consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods. The pro forma information is not indicative of what would have occurred had the Washington Banking Merger occurred on January 1, 2013. In particular, no adjustments have been made to eliminate the impact of the Washington Banking loans previously accounted for under ASC 310-30 that may have been necessary if these loans had been recorded at fair value at January 1, 2014. The pro forma information also does not consider any changes to the provision for loan losses resulting from recorded loans at fair value. Additionally, Heritage expects to achieve further operating savings and other business synergies, including interest income growth, as a result of the Washington Banking Merger which are not reflected in the pro forma amounts in the following table. As a result, actual amounts will differ from the pro forma information presented. Pro Forma for the Years Ended December 31, 2014 2013 (In thousands, except per share amounts) Net interest income $ 144,470 $ 147,267 Net income $ 35,758 $ 30,718 Basic earnings per common share $ 1.19 $ 1.04 Diluted earnings per common share $ 1.18 $ 1.04

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Schedule of securities available for sale	The amortized cost, gross unrealized gains, gross unrealized losses and fair values of investment securities available for sale at the dates indicated were as follows: Securities Available for Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2015 U.S. Treasury and U.S. Government-sponsored agencies $ 35,618 $ 145 $ (186 ) $ 35,577 Municipal securities 216,352 4,826 (185 ) 220,993 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 546,654 2,092 (2,614 ) 546,132 Corporate obligations 9,252 — (139 ) 9,113 Mutual funds and other equities 45 9 — 54 Total $ 807,921 $ 7,072 $ (3,124 ) $ 811,869 December 31, 2014 U.S. Treasury and U.S. Government-sponsored agencies $ 21,414 $ 44 $ (31 ) $ 21,427 Municipal securities 170,082 3,139 (184 ) 173,037 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 539,859 4,015 (1,475 ) 542,399 Corporate obligations 4,034 — (24 ) 4,010 Mutual funds and other equities 1,956 17 — 1,973 Total $ 737,345 $ 7,215 $ (1,714 ) $ 742,846
Schedule of securities held to maturity	These balances at December 31, 2014 were as follows: Securities Held to Maturity Amortized Cost Gross Gross Fair Value (In thousands) December 31, 2014 U.S. Treasury and U.S. Government-sponsored agencies $ 1,591 $ 167 $ — $ 1,758 Municipal securities 22,486 643 (11 ) 23,118 Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 10,866 364 (74 ) 11,156 Private residential collateralized mortgage obligations 871 75 (104 ) 842 Total $ 35,814 $ 1,249 $ (189 ) $ 36,874
Schedule of maturities of investment securities	The amortized cost and fair value of securities at December 31, 2015 , by contractual maturity, are set forth below. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities Available for Sale Amortized Cost Fair Value (In thousands) Due in one year or less $ 7,905 $ 7,952 Due after one year through three years 43,713 43,969 Due after three years through five years 59,295 59,911 Due after five years through ten years 213,007 214,058 Due after ten years 483,956 485,925 Investment securities with no stated maturities 45 54 Total $ 807,921 $ 811,869
Schedule of fair value and unrealized losses of available for sale investment securities	The following table shows the gross unrealized losses and fair value of the Company's investment securities available for sale that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of December 31, 2015 and December 31, 2014 : Securities Available for Sale Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) December 31, 2015 U.S. Treasury and U.S. Government-sponsored agencies $ 30,381 $ (186 ) $ — $ — $ 30,381 $ (186 ) Municipal securities 21,929 (174 ) 2,068 (11 ) 23,997 (185 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 268,159 (2,141 ) 43,938 (473 ) 312,097 (2,614 ) Corporate obligations 8,134 (110 ) 979 (29 ) 9,113 (139 ) Total $ 328,603 $ (2,611 ) $ 46,985 $ (513 ) $ 375,588 $ (3,124 ) December 31, 2014 U.S. Treasury and U.S. Government-sponsored agencies $ 3,567 $ (31 ) $ — $ — $ 3,567 $ (31 ) Municipal securities 25,176 (184 ) — — 25,176 (184 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 182,970 (1,475 ) — — 182,970 (1,475 ) Corporate obligations 2,119 (24 ) — — 2,119 (24 ) Total $ 213,832 $ (1,714 ) $ — $ — $ 213,832 $ (1,714 )
Schedule of fair value and unrealized losses of held to maturity investment securities	The following table shows the gross unrealized losses and fair value of the Company's investment securities held to maturity, aggregated by investment category and length of time that the individual securities have been in continuous unrealized loss positions as of as of December 31, 2014 : Securities Held to Maturity Less than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses (In thousands) December 31, 2014 Municipal securities $ 2,196 $ (11 ) $ — $ — $ 2,196 $ (11 ) Mortgage backed securities and collateralized mortgage obligations-residential: U.S. Government-sponsored agencies 2,553 (74 ) — — 2,553 (74 ) Private residential collateralized mortgage obligations 558 (104 ) — — 558 (104 ) Total $ 5,307 $ (189 ) $ — $ — $ 5,307 $ (189 )
Schedule of other-than-temporary impairment losses investment securities	The following table summarizes activity for the years ended December 31, 2014 and 2013 related to the amount of other-than-temporary impairments on held to maturity securities. There were no initial or subsequent impairments recorded during the year ended December 31, 2015 . Life-to-Date Gross Other-Than-Temporary Impairments (1) Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings (In thousands) December 31, 2012 $ 2,565 $ 1,152 $ 1,413 Subsequent impairments 38 — 38 December 31, 2013 2,603 1,152 1,451 Subsequent impairments 45 — 45 December 31, 2014 $ 2,648 $ 1,152 $ 1,496 (1) Life-to-date gross other-than-temporary impairments disclosed in this table are not reflective of subsequent recoveries, if any. As of December 31, 2015, the Company had no securities with other-than-temporary impairments because all such securities were sold prior to December 31, 2015.
Scheduled of amortized cost and fair value of securities pledged as collateral	The following table summarizes the amortized cost and fair value of available for sale and previously classified as held to maturity securities that are pledged as collateral for the following obligations at December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state to secure public deposits $ 212,325 $ 215,284 $ 150,507 $ 153,785 Federal Reserve Bank of San Francisco and FHLB to secure borrowing arrangements 506 506 4,430 4,460 Repurchase agreements 28,500 28,503 43,676 44,457 Other securities pledged 2,125 2,160 14,828 14,922 Total $ 243,456 $ 246,453 $ 213,441 $ 217,624

Loans Receivable (Tables)

Loans Receivable (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Schedule of loans receivable	Loans receivable at December 31, 2015 and December 31, 2014 consisted of the following portfolio segments and classes: December 31, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 596,726 $ 570,453 Owner-occupied commercial real estate 629,207 594,986 Non-owner occupied commercial real estate 697,388 643,636 Total commercial business 1,923,321 1,809,075 One-to-four family residential 72,548 69,530 Real estate construction and land development: One-to-four family residential 51,752 49,195 Five or more family residential and commercial properties 55,325 64,920 Total real estate construction and land development 107,077 114,115 Consumer 298,167 259,294 Gross loans receivable 2,401,113 2,252,014 Net deferred loan costs (fees) 929 (937 ) Loans receivable, net 2,402,042 2,251,077 Allowance for loan losses (29,746 ) (27,729 ) Total loans receivable, net $ 2,372,296 $ 2,223,348
Loans receivable by credit quality indicator	The following tables present the balance of the loans receivable by credit quality indicator as of December 31, 2015 and December 31, 2014 . December 31, 2015 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 563,002 $ 8,093 $ 25,333 $ 298 $ 596,726 Owner-occupied commercial real estate 600,514 11,662 16,773 258 629,207 Non-owner occupied commercial real estate 643,674 23,447 30,267 — 697,388 Total commercial business 1,807,190 43,202 72,373 556 1,923,321 One-to-four family residential 71,457 — 1,091 — 72,548 Real estate construction and land development: One-to-four family residential 44,069 896 6,787 — 51,752 Five or more family residential and commercial properties 50,678 — 4,647 — 55,325 Total real estate construction and land development 94,747 896 11,434 — 107,077 Consumer 291,892 — 6,275 — 298,167 Gross loans receivable $ 2,265,286 $ 44,098 $ 91,173 $ 556 $ 2,401,113 December 31, 2014 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 520,780 $ 14,618 $ 32,491 $ 2,564 $ 570,453 Owner-occupied commercial real estate 536,591 27,903 30,145 347 594,986 Non-owner occupied commercial real estate 593,918 17,683 32,035 — 643,636 Total commercial business 1,651,289 60,204 94,671 2,911 1,809,075 One-to-four family residential 66,599 740 2,191 — 69,530 Real estate construction and land development: One-to-four family residential 36,534 3,977 8,684 — 49,195 Five or more family residential and commercial properties 58,783 — 6,137 — 64,920 Total real estate construction and land development 95,317 3,977 14,821 — 114,115 Consumer 249,866 — 9,428 — 259,294 Gross loans receivable $ 2,063,071 $ 64,921 $ 121,111 $ 2,911 $ 2,252,014
Schedule of nonaccrual loans	Nonaccrual loans, segregated by segments and classes of loans, were as follows as of December 31, 2015 and December 31, 2014 : December 31, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 5,095 $ 5,784 Owner-occupied commercial real estate 2,027 2,295 Non-owner occupied commercial real estate — 517 Total commercial business 7,122 8,596 One-to-four family residential 38 — Real estate construction and land development: One-to-four family residential 2,414 2,831 Total real estate construction and land development 2,414 2,831 Consumer 94 145 Nonaccrual loans $ 9,668 $ 11,572
Past due financing receivables	The balances of past due loans, segregated by segments and classes of loans, as of December 31, 2015 and December 31, 2014 were as follows: December 31, 2015 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,900 $ 2,679 $ 5,579 $ 591,147 $ 596,726 Owner-occupied commercial real estate 2,753 2,609 5,362 623,845 629,207 Non-owner occupied commercial real estate 1,664 184 1,848 695,540 697,388 Total commercial business 7,317 5,472 12,789 1,910,532 1,923,321 One-to-four family residential 490 — 490 72,058 72,548 Real estate construction and land development: One-to-four family residential — 2,392 2,392 49,360 51,752 Five or more family residential and commercial properties 118 42 160 55,165 55,325 Total real estate construction and land development 118 2,434 2,552 104,525 107,077 Consumer 3,029 202 3,231 294,936 298,167 Gross loans receivable $ 10,954 $ 8,108 $ 19,062 $ 2,382,051 $ 2,401,113 December 31, 2014 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 4,765 $ 3,125 $ 7,890 $ 562,563 $ 570,453 Owner-occupied commercial real estate 1,683 2,780 4,463 590,523 594,986 Non-owner occupied commercial real estate 1,826 531 2,357 641,279 643,636 Total commercial business 8,274 6,436 14,710 1,794,365 1,809,075 One-to-four family residential 312 — 312 69,218 69,530 Real estate construction and land development: One-to-four family residential 240 2,225 2,465 46,730 49,195 Five or more family residential and commercial properties — 596 596 64,324 64,920 Total real estate construction and land development 240 2,821 3,061 111,054 114,115 Consumer 2,676 852 3,528 255,766 259,294 Gross loans receivable $ 11,502 $ 10,109 $ 21,611 $ 2,230,403 $ 2,252,014
Schedule of impaired loans, including restructured	Impaired loans includes nonaccrual loans and performing TDR loans. The balances of impaired loans as of December 31, 2015 and December 31, 2014 are set forth in the following tables. December 31, 2015 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 872 $ 8,769 $ 9,641 $ 11,368 $ 1,173 Owner-occupied commercial real estate — 4,295 4,295 4,342 809 Non-owner occupied commercial real estate 3,696 6,834 10,530 10,539 943 Total commercial business 4,568 19,898 24,466 26,249 2,925 One-to-four family residential — 275 275 276 85 Real estate construction and land development: One-to-four family residential 1,403 2,065 3,468 4,089 66 Five or more family residential and commercial properties — 1,960 1,960 1,960 203 Total real estate construction and land development 1,403 4,025 5,428 6,049 269 Consumer 48 145 193 200 29 Total $ 6,019 $ 24,343 $ 30,362 $ 32,774 $ 3,308 December 31, 2014 Recorded Investment With No Specific Valuation Allowance Recorded Investment With Specific Valuation Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Specific Valuation Allowance (In thousands) Commercial business: Commercial and industrial $ 3,374 $ 8,000 $ 11,374 $ 13,045 $ 1,334 Owner-occupied commercial real estate 360 3,553 3,913 3,937 979 Non-owner occupied commercial real estate 2,459 5,270 7,729 7,719 531 Total commercial business 6,193 16,823 23,016 24,701 2,844 One-to-four family residential — 245 245 245 75 Real estate construction and land development: One-to-four family residential 2,307 2,396 4,703 5,146 447 Five or more family residential and commercial properties — 2,056 2,056 2,056 234 Total real estate construction and land development 2,307 4,452 6,759 7,202 681 Consumer 33 178 211 216 58 Total $ 8,533 $ 21,698 $ 30,231 $ 32,364 $ 3,658
Schedule of average recorded investment impaired loans including restructuring loans	The average recorded investment of impaired loans for the years ended December 31, 2015 , 2014 and 2013 are set forth in the following table. Years Ended December 31, 2015 2014 2013 (In thousands) Commercial business: Commercial and industrial $ 9,781 $ 14,367 $ 14,112 Owner-occupied commercial real estate 4,346 3,582 2,638 Non-owner occupied commercial real estate 9,257 7,915 7,897 Total commercial business 23,384 25,864 24,647 One-to-four family residential 257 604 1,339 Real estate construction and land development: One-to-four family residential 3,841 5,452 4,237 Five or more family residential and commercial properties 2,008 2,154 2,839 Total real estate construction and land development 5,849 7,606 7,076 Consumer 171 786 274 Total $ 29,661 $ 34,860 $ 33,336
Recorded investment balance and related allowance for loan losses of accruing and non-accruing TDRs	The recorded investment balance and related allowance for loan losses of performing and nonaccrual TDR loans as of December 31, 2015 and December 31, 2014 were as follows: December 31, 2015 December 31, 2014 Performing TDRs Nonaccrual TDRs Performing TDRs Nonaccrual (In thousands) TDR loans $ 20,695 $ 6,301 $ 18,659 $ 7,256 Allowance for loan losses on TDR loans 2,069 679 1,908 1,035
Troubled debt restructurings on financing receivables	Loans that were modified as TDRs during the years ended December 31, 2015 , 2014 and 2013 are set forth in the following table: Years Ended December 31, 2015 2014 2013 Number of Contracts (1) Outstanding Number of Contracts (1) Outstanding Principal Balance (1)(2) Number of Outstanding (Dollars in thousands) Commercial business: Commercial and industrial 25 $ 6,312 33 $ 8,166 36 $ 10,362 Owner-occupied commercial real estate 4 1,311 3 1,063 5 537 Non-owner occupied commercial real estate 4 7,496 3 6,548 2 192 Total commercial business 33 15,119 39 15,777 43 11,091 One-to-four family residential — — — — 1 252 Real estate construction and land development: One-to-four family residential 4 2,291 10 3,553 24 3,639 Five or more family residential and commercial properties — — — — 1 2,404 Total real estate construction and land development 4 2,291 10 3,553 25 6,043 Consumer 1 37 2 101 3 141 Total modified loans 38 $ 17,447 51 $ 19,431 72 $ 17,527 (1) Number of contracts and outstanding principal balance represent loans which have balances as of period end as certain loans may have been paid-off or charged-off during the years ended December 31, 2015 , 2014 and 2013. (2) Includes subsequent payments after modifications and reflects the balance as of period end. As the Bank did not forgive any principal or interest balance as part of the loan modification, the Bank’s recorded investment in each loan at the date of modification (pre-modification) did not change as a result of the modification (post-modification), except when the modification was the initial advance on a one-to-four family residential real estate construction and land development loan under a master guidance line. There were no advances on these types of loans during the year ended December 31, 2015 . During the year ended December 31, 2014 , the Company's initial advance at the time of modification on these construction loans totaled $45,000 and the total commitment amount was $190,000 and the outstanding principal balance at December 31, 2014 was $188,000 . During the year ended December 31, 2013, the Company's initial advance at the time of modification on these construction loans totaled $1.1 million and the total commitment amount was $4.3 million and the outstanding principal balance at December 31, 2013 was $3.4 million .
Troubled debt restructuring loans, subsequently defaulted	The loans modified during the previous twelve months ended December 31, 2015 , 2014 and 2013 that subsequently defaulted during the years ended December 31, 2015 , 2014 and 2013 are included in the following table: Years Ended December 31, 2015 2014 2013 Number of Contracts Outstanding Principal Balance Number of Outstanding Number of Outstanding (Dollars in thousands) Commercial business: Commercial and industrial 2 $ 1,755 — $ — 3 $ 918 Non-owner occupied commercial real estate — — 1 75 — — Total commercial business 2 1755 1 75 3 918 Total 2 $ 1,755 1 $ 75 3 $ 918
Purchased impaired loans	The following table reflects the outstanding principal balance and recorded investment at December 31, 2015 and December 31, 2014 of the PCI loans: December 31, 2015 December 31, 2014 Outstanding Principal Recorded Investment Outstanding Principal Recorded Investment (In thousands) Commercial business: Commercial and industrial $ 20,110 $ 16,986 $ 31,779 $ 25,174 Owner-occupied commercial real estate 25,237 22,826 41,236 36,874 Non-owner occupied commercial real estate 30,178 27,261 33,291 31,442 Total commercial business 75,525 67,073 106,306 93,490 One-to-four family residential 5,707 5,392 6,106 5,713 Real estate construction and land development: One-to-four family residential 6,904 4,121 8,559 5,531 Five or more family residential and commercial properties 3,071 3,207 4,861 4,765 Total real estate construction and land development 9,975 7,328 13,420 10,296 Consumer 6,720 7,126 8,928 9,772 Gross PCI loans $ 97,927 $ 86,919 $ 134,760 $ 119,271
Schedule of impaired purchased loans accretable yield	The following table summarizes the accretable yield on the PCI loans for the years ended December 31, 2015 , 2014 and 2013. Years Ended December 31, 2015 2014 2013 (In thousands) Balance at the beginning of the year $ 21,092 $ 17,249 $ 21,638 Accretion (6,993 ) (8,054 ) (8,612 ) Disposal and other (3,111 ) (4,981 ) (5,220 ) Change in accretable yield (1) 6,604 16,878 9,443 Balance at the end of the year $ 17,592 $ 21,092 $ 17,249 (1) Includes accretable yield of PCI loans at acquisition dates. The following table summarizes the contractual cash flows, expected cash flows, non-accretable yield and accretable yield of the PCI loans on the May 1, 2014 merger date for the Washington Banking Merger. As there were no business combinations during the year ended December 31, 2015, there are no values to disclose. Washington Banking (In thousands) Contractual cash flow $ 147,223 Expected cash flow 111,286 Non-accretable yield $ 35,937 Expected cash flow $ 111,286 Fair value 97,580 Accretable yield $ 13,706
Schedule of activity in related party loans	Activity in related party loans for the years ended December 31, 2015 , 2014 and 2013 was as follows (in thousands): Years Ended or As of December 31, (in thousands) Balance outstanding at December 31, 2012 $ 11,442 Principal additions — Elimination of outstanding loan balance due to change in related party status (3,045 ) Principal reductions (923 ) Balance outstanding at December 31, 2013 7,474 Principal additions 23 Addition of outstanding loan balance due to change in related party status 1,858 Principal reductions (191 ) Balance outstanding at December 31, 2014 9,164 Principal additions 12,189 Principal reductions (578 ) Balance outstanding at December 31, 2015 $ 20,775
Details of mortgage banking activities	The Bank does not retain servicing on loans sold in the secondary market. Details of certain mortgage banking activities are as follows: Years Ended or As of December 31, 2015 2014 (In thousands) Loans held for sale at lower of cost or market $ 7,682 $ 5,582 One-to-four family residential loans sold during the year 132,149 55,997 Commitments to sell mortgage loans 16,741 10,625 Commitments to fund mortgage loans (at interest rates approximating market rates): Fixed rate $ 11,884 $ 8,467 Variable or adjustable rate 4,857 2,158
Details of SBA loans serviced	Details of certain SBA loans serviced are as follows: December 31, 2015 December 31, 2014 (In thousands) SBA loans serviced for others with participating interest (1) $ 43,771 $ 31,009 SBA loans serviced for others with no participating interest — — (1) Represents the gross balances of the loans at year end. The participations owned by the Bank totaled $10.1 million and $7.4 million , respectively, at December 31, 2015 and 2014 and are included in the balances of total loans receivable, net on the Company's Consolidated Statements of Financial Condition.

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
Schedule of changes in allowance for loan losses	A summary of the changes in the allowance for loan losses during the years ended December 31, 2015 , 2014 and 2013 is as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at the beginning of the year $ 27,729 $ 28,824 $ 28,594 Charge-offs (3,482 ) (6,597 ) (4,371 ) Recoveries of loans previously charged-off 1,127 908 929 Provision for loan losses 4,372 4,594 3,672 Balance at the end of the year $ 29,746 $ 27,729 $ 28,824 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2015 : Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2015 Commercial business: Commercial and industrial $ 10,553 $ (1,488 ) $ 476 $ 431 $ 9,972 Owner-occupied commercial real estate 4,095 — — 473 4,568 Non-owner occupied commercial real estate 5,538 (188 ) — 2,174 7,524 Total commercial business 20,186 (1,676 ) 476 3,078 22,064 One-to-four family residential 1,200 — 13 (56 ) 1,157 Real estate construction and land development: One-to-four family residential 1,786 (106 ) 100 (722 ) 1,058 Five or more family residential and commercial properties 972 — — (159 ) 813 Total real estate construction and land development 2,758 (106 ) 100 (881 ) 1,871 Consumer 2,769 (1,700 ) 538 2,702 4,309 Unallocated 816 — — (471 ) 345 Total $ 27,729 $ (3,482 ) $ 1,127 $ 4,372 $ 29,746 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2015 . Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,173 $ 6,276 $ 2,523 $ 9,972 Owner-occupied commercial real estate 809 1,860 1,899 4,568 Non-owner occupied commercial real estate 943 4,138 2,443 7,524 Total commercial business 2,925 12,274 6,865 22,064 One-to-four family residential 85 546 526 1,157 Real estate construction and land development: One-to-four family residential 66 481 511 1,058 Five or more family residential and commercial properties 203 519 91 813 Total real estate construction and land development 269 1,000 602 1,871 Consumer 29 3,189 1,091 4,309 Unallocated — 345 — 345 Total $ 3,308 $ 17,354 $ 9,084 $ 29,746 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2013. Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2013 Commercial business: Commercial and industrial $ 9,912 $ (2,826 ) $ 248 $ 6,144 $ 13,478 Owner-occupied commercial real estate 4,021 (247 ) 560 (285 ) 4,049 Non-owner occupied commercial real estate 5,369 — — (43 ) 5,326 Total commercial business 19,302 (3,073 ) 808 5,816 22,853 One-to-four family residential 1,221 (52 ) — (69 ) 1,100 Real estate construction and land development: One-to-four family residential 3,131 (423 ) — (988 ) 1,720 Five or more family residential and commercial properties 2,309 (142 ) 32 (1,246 ) 953 Total real estate construction and land development 5,440 (565 ) 32 (2,234 ) 2,673 Consumer 1,761 (681 ) 89 428 1,597 Unallocated 870 — — (269 ) 601 Total $ 28,594 $ (4,371 ) $ 929 $ 3,672 $ 28,824 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2014. Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2014 Commercial business: Commercial and industrial $ 13,478 $ (4,504 ) $ 716 $ 863 $ 10,553 Owner-occupied commercial real estate 4,049 (337 ) — 383 4,095 Non-owner occupied commercial real estate 5,326 (411 ) — 623 5,538 Total commercial business 22,853 (5,252 ) 716 1,869 20,186 One-to-four family residential 1,100 (31 ) 7 124 1,200 Real estate construction and land development: One-to-four family residential 1,720 (345 ) 43 368 1,786 Five or more family residential and commercial properties 953 — — 19 972 Total real estate construction and land development 2,673 (345 ) 43 387 2,758 Consumer 1,597 (969 ) 142 1,999 2,769 Unallocated 601 — — 215 816 Total $ 28,824 $ (6,597 ) $ 908 $ 4,594 $ 27,729 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2014. Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,334 $ 6,557 $ 2,662 $ 10,553 Owner-occupied commercial real estate 979 1,643 1,473 4,095 Non-owner occupied commercial real estate 531 2,547 2,460 5,538 Total commercial business 2,844 10,747 6,595 20,186 One-to-four family residential 75 538 587 1,200 Real estate construction and land development: One-to-four family residential 447 322 1,017 1,786 Five or more family residential and commercial properties 234 650 88 972 Total real estate construction and land development 681 972 1,105 2,758 Consumer 58 1,943 768 2,769 Unallocated — 816 — 816 Total $ 3,658 $ 15,016 $ 9,055 $ 27,729
Schedule of loan receivables on the basis of impairment method	The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2014 : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 11,374 $ 533,905 $ 25,174 $ 570,453 Owner-occupied commercial real estate 3,913 554,199 36,874 594,986 Non-owner occupied commercial real estate 7,729 604,465 31,442 643,636 Total commercial business 23,016 1,692,569 93,490 1,809,075 One-to-four family residential 245 63,572 5,713 69,530 Real estate construction and land development: One-to-four family residential 4,703 38,961 5,531 49,195 Five or more family residential and commercial properties 2,056 58,099 4,765 64,920 Total real estate construction and land development 6,759 97,060 10,296 114,115 Consumer 211 249,311 9,772 259,294 Total $ 30,231 $ 2,102,512 $ 119,271 $ 2,252,014 The following table details the recorded investment balance of the loan receivables disaggregated on the basis of the Company’s impairment method as of December 31, 2015 : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 9,641 $ 570,099 $ 16,986 $ 596,726 Owner-occupied commercial real estate 4,295 602,086 22,826 629,207 Non-owner occupied commercial real estate 10,530 659,597 27,261 697,388 Total commercial business 24,466 1,831,782 67,073 1,923,321 One-to-four family residential 275 66,881 5,392 72,548 Real estate construction and land development: One-to-four family residential 3,468 44,163 4,121 51,752 Five or more family residential and commercial properties 1,960 50,158 3,207 55,325 Total real estate construction and land development 5,428 94,321 7,328 107,077 Consumer 193 290,848 7,126 298,167 Total $ 30,362 $ 2,283,832 $ 86,919 $ 2,401,113

FDIC Indemnification Asset (Tab

FDIC Indemnification Asset (Tables)	12 Months Ended
	Dec. 31, 2015
FDIC Indemnification Asset [Abstract]
Schedule of FDIC indemnification asset	Changes in the FDIC indemnification asset during the years ended December 31, 2015 , 2014 and 2013 were as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at the beginning of the year $ 1,116 $ 4,382 $ 7,100 Additions as a result of the Washington Banking Merger — 7,174 — Cash payments received or receivable from the FDIC (231 ) (7,897 ) (2,537 ) FDIC share of additional estimated (gains) losses (352 ) (1,072 ) 1,086 Net amortization (145 ) (1,471 ) (1,267 ) Change due to termination of FDIC shared-loss agreements (388 ) — — Balance at the end of the year $ — $ 1,116 $ 4,382

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	12 Months Ended
	Dec. 31, 2015
Real Estate [Abstract]
Changes in other real estate owned	Changes in other real estate owned during the years ended December 31, 2015 , 2014 and 2013 were as follows: Years Ended December 31, 2015 2014 2013 (In thousands Balance at the beginning of the year $ 3,355 $ 4,559 $ 5,666 Additions 2,845 1,566 2,974 Additions from acquisitions — 7,121 2,279 Proceeds from dispositions (3,555 ) (9,914 ) (6,253 ) (Loss) gain on sales, net (97 ) 23 264 Valuation adjustment (529 ) — (371 ) Balance at the end of the year $ 2,019 $ 3,355 $ 4,559

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment [Abstract]
Summary of premises equipment	A summary of premises and equipment is as follows: December 31, 2015 December 31, 2014 (In thousands) Land $ 21,695 $ 22,364 Buildings and building improvements 49,630 52,067 Furniture, fixtures and equipment 17,234 14,280 Total premises and equipment 88,559 88,711 Accumulated depreciation 26,668 23,773 Premises and equipment, net $ 61,891 $ 64,938

Goodwill and Other Intangible42

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Change in other intangible assets	The following table presents the change in the other intangible assets for the periods indicated: Years Ended December 31, 2015 2014 2013 (In thousands) Balance at the beginning of the year $ 10,889 $ 1,615 $ 1,086 Additions as a result of acquisitions — 11,194 1,072 Less: Amortization 2,100 1,920 543 Balance at the end of the year $ 8,789 $ 10,889 $ 1,615
Schedule intangible assets, future amortization expense	The estimated aggregate amortization expense related to these intangible assets for future years is as follows: Years Ending December 31, (In thousands) 2016 $ 1,416 2017 1,285 2018 1,122 2019 1,043 2020 989 Thereafter 2,934 $ 8,789

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2015
Deposits [Abstract]
Summary of deposits	Deposits consisted of the following: December 31, 2015 December 31, 2014 Amount Percent Amount Percent (Dollars in thousands) Noninterest demand deposits $ 770,927 24.8 % $ 709,673 24.4 % NOW accounts 917,859 29.5 793,362 27.3 Money market accounts 545,342 17.6 520,065 17.9 Savings accounts 453,826 14.6 357,834 12.3 Total non-maturity deposits 2,687,954 86.5 2,380,934 81.9 Certificate of deposit accounts 420,333 13.5 525,397 18.1 Total deposits $ 3,108,287 100.0 % $ 2,906,331 100.0 %
Schedule of interest expense	Interest expense, by category, is as follows: Years Ended December 31, 2015 2014 2013 (In thousands) NOW accounts $ 1,476 $ 1,011 $ 645 Money market accounts 922 896 386 Savings accounts 445 252 164 Certificate of deposit accounts 2,386 2,991 2,478 $ 5,229 $ 5,150 $ 3,673
Schedule maturities of certificates of deposits for future years	Scheduled maturities of certificates of deposit for future years are as follows: Years Ending December 31, (In thousands) 2016 $ 279,302 2017 83,298 2018 22,544 2019 17,861 2020 17,240 Thereafter 88 $ 420,333

Other Borrowings (Tables)

Other Borrowings (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of FHLB advances	The following table sets forth the details of FHLB advances during and as of the year ended December 31, 2015: December 31, 2015 (In thousands) Balance at end of year $ — Average balance during the year $ 1,777 Maximum month-end balance during the year $ 48,200 Weighted average rate during the year 0.34 % Weighted average rate at end of year — %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of estimated future minimum annual rental commitments under noncancelable leases	The estimated future minimum annual rental commitments under noncancelable leases having an original or remaining term of more than one year are as follows: Years Ending December 31, (In thousands) 2016 $ 3,503 2017 3,207 2018 2,872 2019 2,197 2020 1,927 Thereafter 3,414 $ 17,120
Summary of outstanding commitments to extend credit, including letters of credit	The following table presents outstanding commitments to extend credit, including letters of credit, at the dates indicated: December 31, 2015 December 31, 2014 (In thousands) Commercial business: Commercial and industrial $ 350,227 $ 288,930 Owner-occupied commercial real estate 2,220 2,648 Non-owner occupied commercial real estate 11,168 20,240 Total commercial business 363,615 311,818 Real estate construction and land development: One-to-four family residential 21,778 24,028 Five or more family residential and commercial properties 52,772 32,653 Total real estate construction and land development 74,550 56,681 Consumer 134,313 122,633 Total outstanding commitments $ 572,478 $ 491,132

Derivative Financial Instrume46

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of notional amounts and estimated fair values of interest rate derivative contracts	The notional amounts and estimated fair values of interest rate derivative contracts outstanding at December 31, 2015 are presented in the following table. The Company obtains dealer quotations to value its interest rate derivative contracts. December 31, 2015 Notional Amounts Estimated Fair Value (In thousands) Non-hedging interest rate derivatives Commercial business loan interest rate swaps $ 20,750 $ 543 Commercial business loan interest rate swaps (20,750 ) (543 )
Schedule of weighted average rates paid and received for interest rate swaps outstanding	The weighted average rates paid and received for interest rate swaps outstanding at December 31, 2015 were as follows: December 31, 2015 Interest Rate Paid Interest Rate Received Non-hedging interest rate swaps 4.34 % 2.52 % Non-hedging interest rate swaps 2.52 % 4.34 %

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of earnings per share reconciliation	The following table illustrates the reconciliation of weighted average shares used for earnings per common share computations for the years ended December 31, 2015 , 2014 and 2013 : Years Ended December 31, 2015 2014 2013 (Dollars in thousands) Net income: Net income $ 37,489 $ 21,014 $ 9,575 Less: Dividends and undistributed earnings allocated to participating securities (328 ) (163 ) (118 ) Net income allocated to common shareholders $ 37,161 $ 20,851 $ 9,457 Basic: Weighted average common shares outstanding 30,057,558 25,641,229 15,667,912 Less: Restricted stock awards (267,943 ) (210,690 ) (191,677 ) Total basic weighted average common shares outstanding 29,789,615 25,430,539 15,476,235 Diluted: Basic weighted average common shares outstanding 29,789,615 25,430,539 15,476,235 Incremental shares from stock options 22,725 46,750 11,480 Total diluted weighted average common shares outstanding 29,812,340 25,477,289 15,487,715
Schedule of dividends activity	The following table summarizes the dividend activity for the years ended December 31, 2015 , 2014 and 2013 . Declared Cash Dividend per Share Record Date Paid Date January 30, 2013 $0.08 February 8, 2013 February 22, 2013 April 24, 2013 $0.08 May 10, 2013 May 24, 2013 July 23, 2013 $0.08 August 6, 2013 August 15, 2013 July 23, 2013 $0.10 August 6, 2013 August 15, 2013 * October 23, 2013 $0.08 November 5, 2013 November 15, 2013 January 29, 2014 $0.08 February 10, 2014 February 24, 2014 March 27, 2014 $0.08 April 8, 2014 April 23, 2014 July 24, 2014 $0.09 August 7, 2014 August 21, 2014 October 23, 2014 $0.09 November 6, 2014 November 20, 2014 November 11, 2014 $0.16 December 2, 2014 December 12, 2014 * January 28, 2015 $0.10 February 10, 2015 February 24, 2015 April 22, 2015 $0.11 May 7, 2015 May 21, 2015 July 22, 2015 $0.11 August 6, 2015 August 20, 2015 October 21, 2015 $0.11 November 4, 2015 November 18, 2015 October 21, 2015 $0.10 November 4, 2015 November 18, 2015 * * Denotes a special dividend.
Schedule of repurchased shares and average share prices	The following table provides total repurchased shares and average share prices under the applicable plans for the periods indicated: Years Ended December 31, 2015 2014 2013 Plan Total (1) Tenth Plan Repurchased shares — 108,075 544,000 704,975 Stock repurchase average share price $ — $ 16.88 $ 15.88 $ 15.85 Eleventh Plan Repurchased shares 441,966 — — 441,966 Stock repurchase average share price $ 16.64 $ — $ — $ 16.64 (1) Represents shares repurchased and average price per share paid during the duration of each plan.

Accumulated Other Comprehensi48

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Changes in accumulated other comprehensive income (loss)	The changes in accumulated other comprehensive income (loss) (“AOCI”) by component, during the years ended December 31, 2015 , 2014 and 2013 are as follows: December 31, 2015 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of the year $ 3,567 $ (189 ) $ 3,378 Other comprehensive (loss) income before reclassification (559 ) 108 (451 ) Amounts reclassified from AOCI for gain on sale of investment securities included in net income (1,067 ) 81 (986 ) Held to maturity transfer to available for sale 618 — 618 Net current period other comprehensive (loss) income (1,008 ) 189 (819 ) Balance of AOCI at the end of the year $ 2,559 $ — $ 2,559 (1) All amounts are net of tax. December 31, 2014 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of the year $ (923 ) $ (239 ) $ (1,162 ) Other comprehensive income before reclassification 4,676 50 4,726 Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income (186 ) — (186 ) Net current period other comprehensive income 4,490 50 4,540 Balance of AOCI at the end of the year $ 3,567 $ (189 ) $ 3,378 (1) All amounts are net of tax. December 31, 2013 Changes in (1) Accretion of other-than- (1) Total (In thousands) Balance of AOCI at the beginning of the year $ 2,042 $ (298 ) $ 1,744 Other comprehensive (loss) income before reclassification (2,965 ) 59 (2,906 ) Amounts reclassified from AOCI for gain on sale of investment securities available for sale included in net income — — — Net current period other comprehensive (loss) income (2,965 ) 59 (2,906 ) Balance of AOCI at the end of the year $ (923 ) $ (239 ) $ (1,162 ) (1) All amounts are net of tax.

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair value measurements of assets on a recurring basis	The following tables summarize the balances of assets and liabilities measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014 . December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 35,577 $ — $ 35,577 $ — Municipal securities 220,993 — 220,993 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 546,132 — 546,132 — Corporate obligations 9,113 — 9,113 — Mutual funds and other equities 54 54 — — Total investment securities available for sale $ 811,869 $ 54 $ 811,815 $ — Derivative assets - interest rate swaps $ 543 $ — $ 543 $ — Derivative liability - interest rate swaps 543 — 543 — December 31, 2014 Total Level 1 Level 2 Level 3 (In thousands) Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 21,427 $ — $ 21,427 $ — Municipal securities 173,037 — 173,037 — Mortgage backed securities and collateralized mortgage obligations—residential: U.S Government-sponsored agencies 542,399 — 542,399 — Corporate obligations 4,010 — 4,010 — Mutual funds and other equities 1,973 1,973 — — Total $ 742,846 $ 1,973 $ 740,873 $ —
Fair value measurements of assets on a nonrecurring basis	The tables below represent assets measured at fair value on a nonrecurring basis at December 31, 2015 and December 31, 2014 and the net losses (gains) recorded in earnings during years ended December 31, 2015 and 2014 . Basis (1) Fair Value at December 31, 2015 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Year Ended December 31, 2015 (In thousands) Impaired loans: Real estate construction and land development: One-to-four family residential $ 1,753 $ 1,719 $ — $ — $ 1,719 $ 35 Total real estate construction and land development 1,753 1,719 — — 1,719 35 Total 1,753 1,719 — — 1,719 35 Total assets measured $ 1,753 $ 1,719 $ — $ — $ 1,719 $ 35 (1) Basis represents the unpaid principal balance of impaired loans. Basis (1) Fair Value at December 31, 2014 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Year Ended December 31, 2014 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 161 $ 138 $ — $ — $ 138 $ 23 Total commercial business 161 138 — — 138 23 Real estate construction and land development: One-to-four family residential 2,094 1,725 — — 1,725 350 Total real estate construction and land development 2,094 1,725 — — 1,725 350 Consumer 49 45 — — 45 5 Total 2,304 1,908 — — 1,908 378 Investment securities held to maturity: Mortgage back securities and collateralized mortgage obligations – residential: Private residential collateralized mortgage obligations 36 11 — 11 — 45 Total assets measured $ 2,340 $ 1,919 $ — $ 11 $ 1,908 $ 423 (1) Basis represents the unpaid principal balance of impaired loans and amortized cost of investment securities held to maturity.
Fair value measurements for financial instruments measured at fair value on a non-recurring basis	The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2015 and December 31, 2014 . December 31, 2015 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans measured at fair value $ 1,719 Market approach Adjustment for differences between the comparable sales (30.0%) - 63.9%; 24.5% December 31, 2014 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans measured at fair value $ 1,908 Market approach Adjustment for differences between the comparable sales (47.5%) - 96.2%; 7.0%
Schedule of carrying value and fair value of financial instruments	The tables below present the carrying value amount of the Company’s financial instruments and their corresponding estimated fair values at the dates indicated. December 31, 2015 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 126,640 $ 126,640 $ 126,640 $ — $ — Other interest earning deposits 6,719 6,723 — 6,723 — Investment securities available for sale 811,869 811,869 54 811,815 — Federal Home Loan Bank stock 4,148 N/A N/A N/A N/A Loans held for sale 7,682 7,883 — 7,883 — Loans receivable, net of allowance for loan losses 2,372,296 2,441,531 — — 2,441,531 Accrued interest receivable 10,469 10,469 5 3,335 7,129 Derivative assets - interest rate swaps 543 543 — 543 — Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,687,954 $ 2,687,954 $ 2,687,954 $ — $ — Certificate of deposit accounts 420,333 423,352 — 423,352 — Total deposits $ 3,108,287 $ 3,111,306 $ 2,687,954 $ 423,352 $ — Securities sold under agreement to repurchase $ 23,214 $ 23,214 $ 23,214 $ — $ — Junior subordinated debentures 19,424 15,000 — — 15,000 Accrued interest payable 207 207 50 133 24 Derivative liabilities - interest rate swaps 543 543 — 543 — December 31, 2014 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 121,636 $ 121,636 $ 121,636 $ — $ — Other interest earning deposits 10,126 10,145 — 10,145 — Investment securities available for sale 742,846 742,846 1,973 740,873 — Investment securities held to maturity 35,814 36,874 — 36,874 — Federal Home Loan Bank stock 12,188 N/A N/A N/A N/A Loans held for sale 5,582 5,710 — 5,710 — Loans receivable, net of allowance for loan losses 2,223,348 2,279,081 — — 2,279,081 Accrued interest receivable 9,836 9,836 3 3,009 6,824 Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,380,934 $ 2,380,934 $ 2,380,934 $ — $ — Certificate of deposit accounts 525,397 525,768 — 525,768 — Total deposits $ 2,906,331 $ 2,906,702 $ 2,380,934 $ 525,768 $ — Securities sold under agreement to repurchase $ 32,181 $ 32,181 $ 32,181 $ — $ — Junior subordinated debentures 19,082 19,082 — — 19,082 Accrued interest payable 411 411 62 328 21

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2015
Share-based Compensation [Abstract]
Schedule of stock option activity	The following table summarizes the stock option activity for the years ended December 31, 2015 , 2014 and 2013 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) Outstanding at December 31, 2012 300,658 $ 17.48 Granted — — Exercised (16,553 ) 12.10 Forfeited or expired (89,623 ) 22.07 Outstanding at December 31, 2013 194,482 15.82 Granted (1) 90,248 10.72 Exercised (84,189 ) 10.86 Forfeited or expired (44,134 ) 22.76 Outstanding at December 31, 2014 156,407 13.59 Granted — — Exercised (61,529 ) 12.15 Forfeited or expired (15,470 ) 16.27 Outstanding at December 31, 2015 79,408 $ 14.19 2.89 $ 372 Vested and expected to vest at December 31, 2015 79,408 $ 14.19 2.89 $ 372 Exercisable at December 31, 2015 79,408 $ 14.19 2.89 $ 372 (1) Options granted during the year ended December 31, 2014 represent only the stock options issued in conjunction with the Washington Banking Merger. See Note (2) Business Combinations for additional information. The weighted average exercise price reflects the exchange ratio applied to the original Washington Banking exercise price pursuant to the Merger Agreement.
Schedule of restricted and unrestricted stock award activity	The following tables summarize the restricted and unrestricted stock award activity for the years ended December 31, 2015 , 2014 and 2013 : Shares Weighted-Average Grant Date Fair Value Nonvested at December 31, 2012 189,670 $ 14.86 Granted 103,195 14.31 Vested (86,819 ) 15.55 Forfeited (3,107 ) 14.89 Nonvested at December 31, 2013 202,939 14.29 Granted 130,548 16.03 Vested (85,373 ) 14.37 Forfeited (9,445 ) 14.67 Nonvested at December 31, 2014 238,669 15.20 Granted 121,320 16.72 Vested (92,486 ) 15.12 Forfeited (2,982 ) 15.73 Nonvested at December 31, 2015 264,521 $ 15.92

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of income tax expense	Income tax expense for the years ended December 31, 2015 , 2014 and 2013 consisted of the following: Years Ended December 31, 2015 2014 2013 (In thousands) Current tax expense $ 9,760 $ 9,992 $ 4,344 Deferred tax (benefit) expense 4,058 (3,087 ) 326 Decrease in valuation allowance — — (77 ) Income tax expense $ 13,818 $ 6,905 $ 4,593
Reconciliation of effective income tax rate	A reconciliation of the Company's effective income tax rate with the Federal statutory income tax rate of 35% is as follows: Years Ended December 31, 2015 2014 2013 (In thousands) Income tax expense at Federal statutory rate $ 17,957 $ 9,772 $ 4,959 Tax-exempt instruments (2,482 ) (1,598 ) (858 ) Non-deductible acquisition costs — 373 469 Federal tax credits (1) (812 ) (812 ) — Effects of BOLI (474 ) (159 ) (25 ) Tax resolutions (2) (300 ) (728 ) — Valuation allowance — — (77 ) Other, net (71 ) 57 125 Income tax expense $ 13,818 $ 6,905 $ 4,593 (1) Federal tax credits are provided for under the New Market Tax Credit program. A subsidiary of Heritage Bank was awarded an allocation of New Market Tax Credit investments consisting of three tranches totaling $25.0 million . Gross tax credits related to these tranches totaling $9.8 million are available through 2020 . The subsidiary is required to fund 85 percent of a tranche to claim the entire tax credit, and it had until May 15, 2015 to complete the funding. The tranche was funded in 2015 before the deadline. Tax benefits related to these credits were recognized for financial reporting purposes in the same period that the credits were recognized in the Company's income tax returns. As the tax credits were realized, the Company has reflected the impact of these credits in its estimated annual effective tax rate for 2015 and 2014. (2) Washington Banking Company had recorded tax-related liabilities prior to the merger effective date, which the Company assumed as part of the Washington Banking Merger. These tax-related liabilities were resolved during the years ended December 31, 2015 and 2014, resulting in a decrease of the Company's income tax expense for the years ended December 31, 2015 and 2014.
Components of deferred income tax asset (liability)	The following table presents major components of the deferred income tax asset (liability) resulting from differences between financial reporting and tax basis: December 31, 2015 December 31, 2014 (In thousands) Deferred tax assets: Allowance for loan losses $ 6,317 $ 5,460 Accrued compensation 1,011 1,382 Stock compensation 890 818 Capital loss carryforward — 30 Unrealized losses charged to earnings on other than temporarily impaired investment securities — 338 Market discount on purchased loans 15,562 17,949 Foregone interest on nonaccrual loans 2,665 2,337 Net operating loss carryforward acquired from NCB 518 553 Difference in amounts reflected in financial statements and income tax basis of certain liabilities assumed in business combinations 89 3,492 Other deferred tax assets 1,503 1,394 Total deferred tax assets 28,555 33,753 Deferred tax liabilities: Deferred loan fees, net (3,489 ) (1,982 ) Premises and equipment (1,853 ) (1,937 ) FHLB stock (926 ) (2,768 ) Net unrealized gains charged to other comprehensive income on securities (1,389 ) (1,832 ) Indemnification asset — (392 ) Goodwill and other intangible assets (1,021 ) (1,560 ) Federal tax credits (876 ) (439 ) Junior subordinated debentures (2,225 ) (2,349 ) Other deferred tax liabilities (627 ) (730 ) Total deferred tax liabilities (12,406 ) (13,989 ) Deferred income tax asset, net $ 16,149 $ 19,764

Regulatory Capital Requiremen52

Regulatory Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2015
Regulatory Capital Requirements [Abstract]
Minimum capital requirements to maintain leverage ratio	Minimum Well- Actual $ % $ % $ % (Dollars in thousands) As of December 31, 2015: The Company consolidated Common equity Tier 1 capital to risk-weighted assets $ 129,673 4.5 % N/A N/A $ 345,993 12.0 % Tier 1 leverage capital to average assets 140,395 4.0 N/A N/A 365,232 10.4 Tier 1 capital to risk-weighted assets 172,897 6.0 N/A N/A 365,232 12.7 Total capital to risk-weighted assets 230,530 8.0 N/A N/A 395,148 13.7 Heritage Bank Common equity Tier 1 capital to risk-weighted assets 129,633 4.5 187,248 6.5 358,600 12.5 Tier 1 leverage capital to average assets 140,331 4.0 175,414 5.0 358,600 10.2 Tier 1 capital to risk-weighted assets 172,844 6.0 230,459 8.0 358,600 12.5 Total capital to risk-weighted assets 230,459 8.0 288,074 10.0 388,516 13.5 As of December 31, 2014: The Company consolidated Tier 1 leverage capital to average assets $ 132,881 4.0 % N/A N/A $ 340,292 10.2 % Tier 1 capital to risk-weighted assets 97,620 4.0 N/A N/A 340,292 13.9 Total capital to risk-weighted assets 195,240 8.0 N/A N/A 368,198 15.1 Heritage Bank Tier 1 leverage capital to average assets 132,853 4.0 166,066 5.0 332,147 10.0 Tier 1 capital to risk-weighted assets 97,585 4.0 146,378 6.0 332,147 13.6 Total capital to risk-weighted assets 195,171 8.0 243,964 10.0 360,053 14.8

Heritage Financial Corporatio53

Heritage Financial Corporation (Parent Company Only) (Tables)	12 Months Ended
	Dec. 31, 2015
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Statements of Financial Condition	HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Financial Condition December 31, 2015 December 31, 2014 (In thousands) ASSETS Cash and interest earning deposits $ 6,722 $ 8,835 Investment in subsidiary bank 482,749 465,442 Other assets 1,185 863 Total assets $ 490,656 $ 475,140 LIABILITIES AND STOCKHOLDERS’ EQUITY Junior subordinated debentures $ 19,424 $ 19,082 Other liabilities 1,262 1,552 Total stockholders’ equity 469,970 454,506 Total liabilities and stockholders’ equity $ 490,656 $ 475,140
Condensed Statements of Income	HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Income Years Ended December 31, 2015 2014 2013 (In thousands) INTEREST INCOME: Interest and dividends on interest earning deposits and other assets $ 28 $ 17 $ 22 Total interest income 28 17 22 INTEREST EXPENSE: Junior subordinated debentures 827 458 — Total interest expense 827 458 — Net interest (expense) income (799 ) (441 ) 22 NONINTEREST INCOME: Dividends from subsidiary banks 22,000 66,300 26,000 Equity in (excess distributed) undistributed income of subsidiary banks 18,131 (40,737 ) (13,001 ) Other income — 3 — Total noninterest income 40,131 25,566 12,999 NONONTEREST EXPENSE: Professional services 263 2,943 1,718 Other expense 3,120 3,109 2,905 Total noninterest expense 3,383 6,052 4,623 Income before income taxes 35,949 19,073 8,398 Income tax benefit (1,540 ) (1,941 ) (1,177 ) Net income $ 37,489 $ 21,014 $ 9,575
Condensed Statements of Cash Flow	HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Cash Flows Years Ended December 31, 2015 2014 2013 (In thousands) Cash flows from operating activities: Net income $ 37,489 $ 21,014 $ 9,575 Adjustments to reconcile net income to net cash provided by operating activities: Equity in excess distributed (undistributed) income of subsidiary bank (18,131 ) 40,737 13,001 Net excess tax (benefit) deficiencies from exercise of stock options and vesting of restricted stock (140 ) (118 ) 37 Restricted stock compensation expense 1,555 1,395 1,223 Stock option compensation expense — 20 71 Net change in other assets and liabilities (125 ) 817 (513 ) Net cash provided by operating activities 20,648 63,865 23,394 Cash flows from investing activities: Investment in subsidiary — (43,215 ) (21,666 ) Net cash used in investing activities — (43,215 ) (21,666 ) Cash flows from financing activities: Common stock cash dividends paid (15,916 ) (12,892 ) (6,672 ) Proceeds from exercise of stock options 751 915 200 Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock 140 118 (37 ) Repurchase of common stock (7,736 ) (2,601 ) (8,825 ) Net cash used in financing activities (22,761 ) (14,460 ) (15,334 ) Net (decrease) increase in cash and cash equivalents (2,113 ) 6,190 (13,606 ) Cash and cash equivalents at beginning of year 8,835 2,645 16,251 Cash and cash equivalents at end of year $ 6,722 $ 8,835 $ 2,645

Selected Quarterly Financial 54

Selected Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Results of operations on a quarterly basis	Results of operations on a quarterly basis were as follows: Year Ended December 31, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest income $ 34,249 $ 33,990 $ 33,484 $ 34,016 Interest expense 1,575 1,520 1,544 1,481 Net interest income 32,674 32,470 31,940 32,535 Provision for loan losses 1,208 1,189 851 1,124 Net interest income after provision for loan losses 31,466 31,281 31,089 31,411 Noninterest income 8,345 6,881 9,544 7,498 Noninterest expense 26,038 26,079 27,322 26,769 Income before provision for income taxes 13,773 12,083 13,311 12,140 Income tax expense 3,994 3,358 3,819 2,647 Net income $ 9,779 $ 8,725 $ 9,492 $ 9,493 Basic earnings per common share $ 0.32 $ 0.29 $ 0.32 $ 0.32 Diluted earnings per common share 0.32 0.29 0.32 0.32 Cash dividends declared on common stock 0.10 0.11 0.11 0.21 Year Ended December 31, 2014 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest income $ 17,613 $ 30,023 $ 35,031 $ 38,439 Interest expense 872 1,426 1,724 1,659 Net interest income 16,741 28,597 33,307 36,780 Provision for loan losses 458 691 594 2,851 Net interest income after provision for loan losses 16,283 27,906 32,713 33,929 Noninterest income 2,307 4,780 5,483 3,897 Noninterest expense 14,779 26,994 28,363 29,243 Income before provision for income taxes 3,811 5,692 9,833 8,583 Income tax expense 1,268 1,544 2,765 1,328 Net income $ 2,543 $ 4,148 $ 7,068 $ 7,255 Basic earnings per common share $ 0.16 $ 0.16 $ 0.23 $ 0.24 Diluted earnings per common share 0.16 0.16 0.23 0.24 Cash dividends declared on common stock 0.16 — 0.09 0.25

Description of Business, Basi55

Description of Business, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Pronouncements (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2013shares	Dec. 31, 2015USD ($)segmentbranchshares	Dec. 31, 2014USD ($)shares	Dec. 31, 2013shares	May. 01, 2014USD ($)
Business Description and Basis of Presentation [Line Items]
Allowance for off-balance sheet financial instruments		$ 170	$ 170,000
Percentage of losses absorbed by FDIC		80.00%
Percentage of loss recoveries received by FDIC		80.00%
Bank owned life insurance		$ 60,876	$ 35,176		$ 32,500
Number of shares granted | shares	0	0	0	0
Number of operating segments | segment		1
Minimum | Buildings and Building Improvements
Business Description and Basis of Presentation [Line Items]
Estimated useful life		15 years
Minimum | Furniture, Fixtures and Equipment
Business Description and Basis of Presentation [Line Items]
Estimated useful life		3 years
Maximum | Buildings and Building Improvements
Business Description and Basis of Presentation [Line Items]
Estimated useful life		39 years
Maximum | Furniture, Fixtures and Equipment
Business Description and Basis of Presentation [Line Items]
Estimated useful life		7 years
Heritage Bank
Business Description and Basis of Presentation [Line Items]
Number of branches operating | branch		67

Business Combinations - Textual

Business Combinations - Textuals (Details)	May. 01, 2014USD ($)$ / sharesshares	Jul. 15, 2013USD ($)$ / sharesshares	Jan. 09, 2013USD ($)branch$ / shares	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Apr. 30, 2014$ / sharesshares
Business Acquisition [Line Items]
Goodwill				$ 119,029,000	$ 119,029,000
Issuance costs					489,000
Bargain purchase gain on bank acquisition				0	0	$ 399,000
Washington Banking
Business Acquisition [Line Items]
Number of shares of common stock issued | shares	0.89000
Share price paid in cash (in usd per share) | $ / shares	$ 2.75
Common stock, shares outstanding | shares							15,587,154
Closing price per share (in usd per share) | $ / shares							$ 16.16
Total consideration paid	$ 269,619,000
Number of shares issued in conjunction with the merger | shares	14,000,178
Capitalized stock issuance costs	$ 489,000
Goodwill	$ 89,664,000
Merger-related costs				0	9,100,000	890,000
Number of shares issued | shares	13,870,716
Valley Community Bancshares
Business Acquisition [Line Items]
Number of shares of common stock issued | shares		1.3611
Capitalized stock issuance costs		$ 157,000
Goodwill		$ 16,400,000
Common stock received (in usd per share) | $ / shares		$ 19.50
Cash paid		$ 22,000,000
Number of shares issued | shares		1,533,267
Fair value of stock issued		$ 24,200,000
Issuance costs				0	443,000	2,100,000
Northwest Commercial Bank
Business Acquisition [Line Items]
Total consideration paid			$ 3,000,000
Common stock received (in usd per share) | $ / shares			$ 5.50
Issuance costs				$ 0	$ 0	$ 794,000
Number of branch locations operated | branch			2
Redemption of outstanding preferred stock			$ 2,000,000
Proceeds from sale			491,000
Bargain purchase gain on bank acquisition			$ 399,000

Business Combinations - Conside

Business Combinations - Consideration Transferred (Details) - Washington Banking $ in Thousands	May. 01, 2014USD ($)shares
Consideration transferred
Cash paid	$ 42,895
Total consideration transferred	$ 269,619
Total shares issued | shares	13,870,716
Converted restricted stock award units | shares	129,462
Number of shares surrendered at conversion | shares	26,783
Fair value of forfeited shares	$ 433
Cash Paid Due to Fractional Shares
Consideration transferred
Cash paid	$ 3
Number of shares paid in cash | shares	165
Cash Paid from Dissenters
Consideration transferred
Cash paid	$ 27
Number of shares paid in cash | shares	1,686
Restricted Stock Units
Consideration transferred
Fair value of equity interest issued	$ 2,092
Stock Options
Consideration transferred
Fair value of equity interest issued	481
Common Stock
Consideration transferred
Fair value of equity interest issued	$ 224,151

Business Combinations - Prelimi

Business Combinations - Preliminary Fair Value Estimate (Details) - Washington Banking $ in Thousands	May. 01, 2014USD ($)
Assets
Cash and cash equivalents	$ 74,947
Investment securities available for sale	458,312
Loans held for sale	3,923
Loans receivable	895,978
FDIC indemnification asset	7,174
Other real estate owned ($5,122 covered by FDIC shared-loss agreements at May 1, 2014 merger date)	7,121
Premises and equipment	31,776
Federal Home Loan Bank stock	7,064
Bank owned life insurance	32,519
Accrued Interest Receivable	4,943
Other intangible assets	11,194
Prepaid expenses and other assets	14,852
Total assets acquired	1,656,853
Liabilities
Deposits	1,433,894
Junior subordinated debentures	18,937
Accrued expenses and other liabilities	24,067
Total liabilities assumed	1,476,898
Net assets acquired	179,955
Covered Loans
Assets
Loans receivable	107,050
Other real estate owned ($5,122 covered by FDIC shared-loss agreements at May 1, 2014 merger date)	$ 5,122

Business Combinations - Summary

Business Combinations - Summary of Net Assets Purchased and Goodwill Recognized (Details) - USD ($) $ in Thousands	May. 01, 2014	Dec. 31, 2015	Dec. 31, 2014
Fair value adjustments:
Goodwill recognized		$ (119,029)	$ (119,029)
Washington Banking
Business Acquisition [Line Items]
Cost basis of net assets on merger date	$ 181,782
Less: Consideration transferred	(269,619)
Fair value adjustments:
Loans held for sale	86
Loans receivable	(12,811)
FDIC indemnification asset	357
Other real estate owned	387
Premises and equipment	(1,540)
Other intangible assets	10,216
Prepaid expenses and other assets	(6,416)
Deposits	(1,737)
Junior subordinated debentures	6,837
Accrued expenses and other liabilities	(3,590)
Goodwill recognized	(89,664)
Washington Banking | Covered Loans
Fair value adjustments:
Loans receivable	$ 6,384

Business Combinations - Unaudit

Business Combinations - Unaudited Pro Forma (Details) - Washington Banking - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Net interest income	$ 144,470	$ 147,267
Net income	$ 35,758	$ 30,718
Basic earnings per common share (in usd per share)	$ 1.19	$ 1.04
Diluted earnings per common share (in usd per share)	$ 1.18	$ 1.04

Investment Securities - Narrati

Investment Securities - Narrative (Details)	12 Months Ended
	Dec. 31, 2015USD ($)security	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Investments, Debt and Equity Securities [Abstract]
Transfer from investment securities held to maturity to available for sale	$ 29,400,000	$ 0	$ 0
Pre-tax net unrealized gain on securities transferred	952,000
Held to maturity, amortized cost	0	35,814,000
Held to maturity, gross unrecognized gains	0	1,249,000
Held to maturity, gross unrecognized losses	0	189,000
Investment securities held to maturity	0	36,874,000
Securities classified as trading	0	$ 0
Average prepayment rate (percent)		6.00%
Discount interest rate (percent)		9.40%
OTTI, unrealized losses	0
Pledge securities, carrying value	246,500,000	$ 216,700,000
Private residential collateralized mortgage obligations
Investments, Debt and Equity Securities [Abstract]
Held to maturity, amortized cost		871,000
Held to maturity, gross unrecognized gains		75,000
Held to maturity, gross unrecognized losses		104,000
Investment securities held to maturity		$ 842,000
Investment Holdings [Line Items]
Sale of private residential collateralized mortgage obligation at carrying value	$ 1,100,000
Mortgage backed securities evaluation non temporary decline number (securities)	0	4
Realized pre-tax loss on sale	$ 125,000

Investment Securities - Securit

Investment Securities - Securities by Type and Maturity (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Securities Available for Sale
Amortized Cost	$ 807,921,000	$ 737,345,000
Gross Unrealized Gains	7,072,000	7,215,000
Gross Unrealized Losses	(3,124,000)	(1,714,000)
Fair Value	811,869,000	742,846,000
Securities Held to Maturity
Amortized Cost	0	35,814,000
Gross Unrecognized Gains	0	1,249,000
Gross Unrecognized Losses	0	(189,000)
Fair Value	0	36,874,000
U.S. Treasury and U.S. Government-sponsored agencies
Securities Available for Sale
Amortized Cost	35,618,000	21,414,000
Gross Unrealized Gains	145,000	44,000
Gross Unrealized Losses	(186,000)	(31,000)
Fair Value	35,577,000	21,427,000
Securities Held to Maturity
Amortized Cost		1,591,000
Gross Unrecognized Gains		167,000
Gross Unrecognized Losses		0
Fair Value		1,758,000
Municipal securities
Securities Available for Sale
Amortized Cost	216,352,000	170,082,000
Gross Unrealized Gains	4,826,000	3,139,000
Gross Unrealized Losses	(185,000)	(184,000)
Fair Value	220,993,000	173,037,000
Securities Held to Maturity
Amortized Cost		22,486,000
Gross Unrecognized Gains		643,000
Gross Unrecognized Losses		(11,000)
Fair Value		23,118,000
U.S Government-sponsored agencies
Securities Available for Sale
Amortized Cost	546,654,000	539,859,000
Gross Unrealized Gains	2,092,000	4,015,000
Gross Unrealized Losses	(2,614,000)	(1,475,000)
Fair Value	546,132,000	542,399,000
Securities Held to Maturity
Amortized Cost		10,866,000
Gross Unrecognized Gains		364,000
Gross Unrecognized Losses		(74,000)
Fair Value		11,156,000
Corporate obligations
Securities Available for Sale
Amortized Cost	9,252,000	4,034,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(139,000)	(24,000)
Fair Value	9,113,000	4,010,000
Mutual funds and other equities
Securities Available for Sale
Amortized Cost	45,000	1,956,000
Gross Unrealized Gains	9,000	17,000
Gross Unrealized Losses	0	0
Fair Value	$ 54,000	1,973,000
Private residential collateralized mortgage obligations
Securities Held to Maturity
Amortized Cost		871,000
Gross Unrecognized Gains		75,000
Gross Unrecognized Losses		(104,000)
Fair Value		$ 842,000

Investment Securities - Contrac

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Securities Available for Sale, Amortized Cost
Due in one year or less	$ 7,905
Due after one year through three years	43,713
Due after three years through five years	59,295
Due after five years through ten years	213,007
Due after ten years	483,956
Investment securities with no stated maturities	45
Amortized Cost	807,921	$ 737,345
Securities Available for Sale, Fair Value
Due in one year or less	7,952
Due after one year through three years	43,969
Due after three years through five years	59,911
Due after five years through ten years	214,058
Due after ten years	485,925
Investment securities with no stated maturities	54
Fair Value	$ 811,869	$ 742,846

Investment Securities - Unreali

Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months	$ 328,603	$ 213,832
12 Months or Longer	46,985	0
Total	375,588	213,832
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses
Less than 12 Months	(2,611)	(1,714)
12 Months or Longer	(513)	0
Total	(3,124)	(1,714)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months		5,307
12 Months or Longer		0
Total		5,307
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses
Less than 12 Months		(189)
12 Months or Longer		0
Total		(189)
U.S. Treasury and U.S. Government-sponsored agencies
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months	30,381	3,567
12 Months or Longer	0	0
Total	30,381	3,567
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses
Less than 12 Months	(186)	(31)
12 Months or Longer	0	0
Total	(186)	(31)
Municipal securities
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months	21,929	25,176
12 Months or Longer	2,068	0
Total	23,997	25,176
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses
Less than 12 Months	(174)	(184)
12 Months or Longer	(11)	0
Total	(185)	(184)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months		2,196
12 Months or Longer		0
Total		2,196
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses
Less than 12 Months		(11)
12 Months or Longer		0
Total		(11)
U.S Government-sponsored agencies
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months	268,159	182,970
12 Months or Longer	43,938	0
Total	312,097	182,970
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses
Less than 12 Months	(2,141)	(1,475)
12 Months or Longer	(473)	0
Total	(2,614)	(1,475)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months		2,553
12 Months or Longer		0
Total		2,553
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses
Less than 12 Months		(74)
12 Months or Longer		0
Total		(74)
Corporate obligations
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months	8,134	2,119
12 Months or Longer	979	0
Total	9,113	2,119
Available-for-sale Securities, Continuous Unrealized Loss Position, Unrealized Losses
Less than 12 Months	(110)	(24)
12 Months or Longer	(29)	0
Total	$ (139)	(24)
Private residential collateralized mortgage obligations
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value
Less than 12 Months		558
12 Months or Longer		0
Total		558
Held-to-maturity Securities, Continuous Unrealized Loss Position, Unrecognized Losses
Less than 12 Months		(104)
12 Months or Longer		0
Total		$ (104)

Investment Securities - Impairm

Investment Securities - Impairment Activity on Held to Maturity Securities(Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Investments, Debt and Equity Securities [Abstract]
Life-to-Date Gross Other-Than-Temporary Impairments, Beginning Balance	$ 2,648	$ 2,603	$ 2,565
Life-to-Date Gross Other-Than-Temporary Impairments, Subsequent impairments		45	38
Life-to-Date Gross Other-Than-Temporary Impairments, Ending Balance		2,648	2,603
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Beginning Balance	1,152	1,152	1,152
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Subsequent impairments		0	0
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Ending Balance		1,152	1,152
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Beginning Balance	1,496	1,451	1,413
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Subsequent impairments	$ 0	45	38
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Ending Balance		$ 1,496	$ 1,451

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Scheduled of amortized cost and fair value of securities pledged as collateral
Amortized Cost	$ 243,456	$ 213,441
Fair Value	246,453	217,624
Washington and Oregon state to secure public deposits
Scheduled of amortized cost and fair value of securities pledged as collateral
Amortized Cost	212,325	150,507
Fair Value	215,284	153,785
Federal Reserve Bank of San Francisco and FHLB to secure borrowing arrangements
Scheduled of amortized cost and fair value of securities pledged as collateral
Amortized Cost	506	4,430
Fair Value	506	4,460
Repurchase agreements
Scheduled of amortized cost and fair value of securities pledged as collateral
Amortized Cost	28,500	43,676
Fair Value	28,503	44,457
Other securities pledged
Scheduled of amortized cost and fair value of securities pledged as collateral
Amortized Cost	2,125	14,828
Fair Value	$ 2,160	$ 14,922

Loans Receivable - Loan Origina

Loans Receivable - Loan Origination/Risk Management (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)segment	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Dec. 31, 2012USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan segments | segment	4
Maximum percentage consumer loans (percent)	80.00%
Gross loans receivable	$ 2,401,113	$ 2,252,014
Net deferred loan costs (fees)	929	(937)
Loans receivable, net	2,402,042	2,251,077
Allowance for loan losses	(29,746)	(27,729)	$ (28,824)	$ (28,594)
Total loans receivable, net	2,372,296	2,223,348
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	1,923,321	1,809,075
Allowance for loan losses	(22,064)	(20,186)	(22,853)	(19,302)
Commercial business | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	596,726	570,453
Allowance for loan losses	(9,972)	(10,553)	(13,478)	(9,912)
Commercial business | Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	629,207	594,986
Allowance for loan losses	(4,568)	(4,095)	(4,049)	(4,021)
Commercial business | Non-owner occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	697,388	643,636
Allowance for loan losses	$ (7,524)	(5,538)	(5,326)	(5,369)
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maximum percent of appraised value or underlying collateral mortgage (not to exceed 80%) residential loans (percent)	80.00%
Gross loans receivable	$ 72,548	69,530
Allowance for loan losses	(1,157)	(1,200)	(1,100)	(1,221)
Real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	107,077	114,115
Allowance for loan losses	(1,871)	(2,758)	(2,673)	(5,440)
Real estate construction and land development | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	51,752	49,195
Allowance for loan losses	(1,058)	(1,786)	(1,720)	(3,131)
Real estate construction and land development | Five or more family residential and commercial properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	55,325	64,920
Allowance for loan losses	(813)	(972)	(953)	(2,309)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	298,167	259,294
Allowance for loan losses	$ (4,309)	$ (2,769)	$ (1,597)	$ (1,761)
Minimum | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan term	15 years
Maximum | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan term	30 years

Loans Receivable - Credit Quali

Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Pass	$ 2,265,286	$ 2,063,071
OAEM	44,098	64,921
Substandard	91,173	121,111
Doubtful	556	2,911
Total	2,401,113	2,252,014
Potential problem loans receivable	110,400	162,900
Government guaranteed potential problem loans	1,200	2,000
Commercial business
Financing Receivable, Recorded Investment [Line Items]
Pass	1,807,190	1,651,289
OAEM	43,202	60,204
Substandard	72,373	94,671
Doubtful	556	2,911
Total	1,923,321	1,809,075
Commercial business | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Pass	563,002	520,780
OAEM	8,093	14,618
Substandard	25,333	32,491
Doubtful	298	2,564
Total	596,726	570,453
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Pass	600,514	536,591
OAEM	11,662	27,903
Substandard	16,773	30,145
Doubtful	258	347
Total	629,207	594,986
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Pass	643,674	593,918
OAEM	23,447	17,683
Substandard	30,267	32,035
Doubtful	0	0
Total	697,388	643,636
One-to-four family residential
Financing Receivable, Recorded Investment [Line Items]
Pass	71,457	66,599
OAEM	0	740
Substandard	1,091	2,191
Doubtful	0	0
Total	72,548	69,530
Real estate construction and land development
Financing Receivable, Recorded Investment [Line Items]
Pass	94,747	95,317
OAEM	896	3,977
Substandard	11,434	14,821
Doubtful	0	0
Total	107,077	114,115
Real estate construction and land development | One-to-four family residential
Financing Receivable, Recorded Investment [Line Items]
Pass	44,069	36,534
OAEM	896	3,977
Substandard	6,787	8,684
Doubtful	0	0
Total	51,752	49,195
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Recorded Investment [Line Items]
Pass	50,678	58,783
OAEM	0	0
Substandard	4,647	6,137
Doubtful	0	0
Total	55,325	64,920
Consumer
Financing Receivable, Recorded Investment [Line Items]
Pass	291,892	249,866
OAEM	0	0
Substandard	6,275	9,428
Doubtful	0	0
Total	$ 298,167	$ 259,294

Loans Receivable - Nonaccrual L

Loans Receivable - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	$ 9,668	$ 11,572
Nonaccrual originated loans guaranteed by governmental agencies	1,100	1,600
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	7,122	8,596
Commercial business | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	5,095	5,784
Commercial business | Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	2,027	2,295
Commercial business | Non-owner occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	0	517
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	38	0
Real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	2,414	2,831
Real estate construction and land development | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	2,414	2,831
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	$ 94	$ 145

Loans Receivable - Past Due Loa

Loans Receivable - Past Due Loans (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 19,062,000	$ 21,611,000
Current	2,382,051,000	2,230,403,000
Total	2,401,113,000	2,252,014,000
Loans, 90 days or more past due that are still accruing	0	0
30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	10,954,000	11,502,000
90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,108,000	10,109,000
Commercial business
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	12,789,000	14,710,000
Current	1,910,532,000	1,794,365,000
Total	1,923,321,000	1,809,075,000
Commercial business | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7,317,000	8,274,000
Commercial business | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,472,000	6,436,000
Commercial business | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,579,000	7,890,000
Current	591,147,000	562,563,000
Total	596,726,000	570,453,000
Commercial business | Commercial and industrial | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,900,000	4,765,000
Commercial business | Commercial and industrial | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,679,000	3,125,000
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,362,000	4,463,000
Current	623,845,000	590,523,000
Total	629,207,000	594,986,000
Commercial business | Owner-occupied commercial real estate | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,753,000	1,683,000
Commercial business | Owner-occupied commercial real estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,609,000	2,780,000
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,848,000	2,357,000
Current	695,540,000	641,279,000
Total	697,388,000	643,636,000
Commercial business | Non-owner occupied commercial real estate | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,664,000	1,826,000
Commercial business | Non-owner occupied commercial real estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	184,000	531,000
One-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	490,000	312,000
Current	72,058,000	69,218,000
Total	72,548,000	69,530,000
One-to-four family residential | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	490,000	312,000
One-to-four family residential | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Real estate construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,552,000	3,061,000
Current	104,525,000	111,054,000
Total	107,077,000	114,115,000
Real estate construction and land development | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	118,000	240,000
Real estate construction and land development | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,434,000	2,821,000
Real estate construction and land development | One-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,392,000	2,465,000
Current	49,360,000	46,730,000
Total	51,752,000	49,195,000
Real estate construction and land development | One-to-four family residential | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	240,000
Real estate construction and land development | One-to-four family residential | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,392,000	2,225,000
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	160,000	596,000
Current	55,165,000	64,324,000
Total	55,325,000	64,920,000
Real estate construction and land development | Five or more family residential and commercial properties | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	118,000	0
Real estate construction and land development | Five or more family residential and commercial properties | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	42,000	596,000
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,231,000	3,528,000
Current	294,936,000	255,766,000
Total	298,167,000	259,294,000
Consumer | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,029,000	2,676,000
Consumer | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 202,000	$ 852,000

Loans Receivable - Impaired Loa

Loans Receivable - Impaired Loans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	$ 6,019,000	$ 8,533,000
Recorded Investment With Specific Valuation Allowance	24,343,000	21,698,000
Total Recorded Investment	30,362,000	30,231,000
Unpaid Contractual Principal Balance	32,774,000	32,364,000
Related Specific Valuation Allowance	3,308,000	3,658,000
Government guarantee of originated impaired loans	1,500,000	2,400,000
Average Recorded Investment on Impaired Loans	29,661,000	34,860,000	$ 33,336,000
Impaired Loans | Nonaccrual
Financing Receivable, Impaired [Line Items]
Interest income recognized on impaired loans	0	0	0
Impaired Loans | Performing TDR
Financing Receivable, Impaired [Line Items]
Interest income recognized on impaired loans	780,000	1,200,000	1,100,000
Commercial business
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	4,568,000	6,193,000
Recorded Investment With Specific Valuation Allowance	19,898,000	16,823,000
Total Recorded Investment	24,466,000	23,016,000
Unpaid Contractual Principal Balance	26,249,000	24,701,000
Related Specific Valuation Allowance	2,925,000	2,844,000
Average Recorded Investment on Impaired Loans	23,384,000	25,864,000	24,647,000
Commercial business | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	872,000	3,374,000
Recorded Investment With Specific Valuation Allowance	8,769,000	8,000,000
Total Recorded Investment	9,641,000	11,374,000
Unpaid Contractual Principal Balance	11,368,000	13,045,000
Related Specific Valuation Allowance	1,173,000	1,334,000
Average Recorded Investment on Impaired Loans	9,781,000	14,367,000	14,112,000
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	0	360,000
Recorded Investment With Specific Valuation Allowance	4,295,000	3,553,000
Total Recorded Investment	4,295,000	3,913,000
Unpaid Contractual Principal Balance	4,342,000	3,937,000
Related Specific Valuation Allowance	809,000	979,000
Average Recorded Investment on Impaired Loans	4,346,000	3,582,000	2,638,000
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	3,696,000	2,459,000
Recorded Investment With Specific Valuation Allowance	6,834,000	5,270,000
Total Recorded Investment	10,530,000	7,729,000
Unpaid Contractual Principal Balance	10,539,000	7,719,000
Related Specific Valuation Allowance	943,000	531,000
Average Recorded Investment on Impaired Loans	9,257,000	7,915,000	7,897,000
One-to-four family residential
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	0	0
Recorded Investment With Specific Valuation Allowance	275,000	245,000
Total Recorded Investment	275,000	245,000
Unpaid Contractual Principal Balance	276,000	245,000
Related Specific Valuation Allowance	85,000	75,000
Average Recorded Investment on Impaired Loans	257,000	604,000	1,339,000
Real estate construction and land development
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	1,403,000	2,307,000
Recorded Investment With Specific Valuation Allowance	4,025,000	4,452,000
Total Recorded Investment	5,428,000	6,759,000
Unpaid Contractual Principal Balance	6,049,000	7,202,000
Related Specific Valuation Allowance	269,000	681,000
Average Recorded Investment on Impaired Loans	5,849,000	7,606,000	7,076,000
Real estate construction and land development | One-to-four family residential
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	1,403,000	2,307,000
Recorded Investment With Specific Valuation Allowance	2,065,000	2,396,000
Total Recorded Investment	3,468,000	4,703,000
Unpaid Contractual Principal Balance	4,089,000	5,146,000
Related Specific Valuation Allowance	66,000	447,000
Average Recorded Investment on Impaired Loans	3,841,000	5,452,000	4,237,000
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	0	0
Recorded Investment With Specific Valuation Allowance	1,960,000	2,056,000
Total Recorded Investment	1,960,000	2,056,000
Unpaid Contractual Principal Balance	1,960,000	2,056,000
Related Specific Valuation Allowance	203,000	234,000
Average Recorded Investment on Impaired Loans	2,008,000	2,154,000	2,839,000
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	48,000	33,000
Recorded Investment With Specific Valuation Allowance	145,000	178,000
Total Recorded Investment	193,000	211,000
Unpaid Contractual Principal Balance	200,000	216,000
Related Specific Valuation Allowance	29,000	58,000
Average Recorded Investment on Impaired Loans	$ 171,000	$ 786,000	$ 274,000

Loans Receivable - TDR Loans, R

Loans Receivable - TDR Loans, Recorded Investment and Allowance (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Performing TDRs	$ 20,695	$ 18,659
Nonaccrual TDRs	6,301	7,256
Performing TDRs, Allowance for loan losses on TDRs	2,069	1,908
Nonaccrual TDRs, Allowance for loan losses on TDRs	679	1,035
Unfunded commitments related to credits classified as TDRs	$ 551	1,800
PCI Loans
Financing Receivable, Modifications [Line Items]
Performing TDRs		$ 10,400

Loans Receivable - Modified TDR

Loans Receivable - Modified TDRs (Details)	12 Months Ended
	Dec. 31, 2015USD ($)loan	Dec. 31, 2014USD ($)loan	Dec. 31, 2013USD ($)loan
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	$ 3,308,000	$ 3,658,000
Commercial business
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	2,925,000	2,844,000
Commercial business | Commercial and industrial
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	1,173,000	1,334,000
Commercial business | Owner-occupied commercial real estate
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	809,000	979,000
Commercial business | Non-owner occupied commercial real estate
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	943,000	531,000
One-to-four family residential
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	85,000	75,000
Real estate construction and land development
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	269,000	681,000
Real estate construction and land development | One-to-four family residential
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	66,000	447,000
Real estate construction and land development | Five or more family residential and commercial properties
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	203,000	234,000
Consumer
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	$ 29,000	$ 58,000
Troubled Debt Restructured Loans
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	38	51	72
Outstanding Principal Balance	$ 17,447,000	$ 19,431,000	$ 17,527,000
Loans Modified, Subsequently Defaulted [Abstract]
Number of Contracts | loan	2	1	3
Outstanding Principal Balance	$ 1,755,000	$ 75,000	$ 918,000
Number of contracts with no modifications | loan	18	17	17
Total outstanding principal balance with no prior modifications	$ 7,000,000	$ 4,700,000	$ 5,500,000
Specific valuation allowance for loans that were modified as TDRs	$ 1,700,000
Troubled Debt Restructured Loans | Speculative Construction Home Builder
Loans Modified as TDRs [Abstract]
Number of Contracts | loan			24
Loans Modified, Subsequently Defaulted [Abstract]
Total outstanding principal balance with no prior modifications			$ 3,400,000
Troubled Debt Restructured Loans | Commercial business
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	33	39	43
Outstanding Principal Balance	$ 15,119,000	$ 15,777,000	$ 11,091,000
Loans Modified, Subsequently Defaulted [Abstract]
Number of Contracts | loan	2	1	3
Outstanding Principal Balance	$ 1,755,000	$ 75,000	$ 918,000
Troubled Debt Restructured Loans | Commercial business | Commercial and industrial
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	25	33	36
Outstanding Principal Balance	$ 6,312,000	$ 8,166,000	$ 10,362,000
Loans Modified, Subsequently Defaulted [Abstract]
Number of Contracts | loan	2	0	3
Outstanding Principal Balance	$ 1,755,000	$ 0	$ 918,000
Troubled Debt Restructured Loans | Commercial business | Owner-occupied commercial real estate
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	4	3	5
Outstanding Principal Balance	$ 1,311,000	$ 1,063,000	$ 537,000
Troubled Debt Restructured Loans | Commercial business | Non-owner occupied commercial real estate
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	4	3	2
Outstanding Principal Balance	$ 7,496,000	$ 6,548,000	$ 192,000
Loans Modified, Subsequently Defaulted [Abstract]
Number of Contracts | loan	0	1	0
Outstanding Principal Balance	$ 0	$ 75,000	$ 0
Troubled Debt Restructured Loans | One-to-four family residential
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	0	0	1
Outstanding Principal Balance	$ 0	$ 0	$ 252,000
Troubled Debt Restructured Loans | Real estate construction and land development
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	4	10	25
Outstanding Principal Balance	$ 2,291,000	$ 3,553,000	$ 6,043,000
Troubled Debt Restructured Loans | Real estate construction and land development | One-to-four family residential
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	4	10	24
Outstanding Principal Balance	$ 2,291,000	$ 3,553,000	$ 3,639,000
Loans Modified, Subsequently Defaulted [Abstract]
Initial advance at the time of modification	$ 0	45,000	1,100,000
Total commitment amount		190,000	4,300,000
Outstanding principal balance		$ 188,000	$ 3,400,000
Troubled Debt Restructured Loans | Real estate construction and land development | Five or more family residential and commercial properties
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	0	0	1
Outstanding Principal Balance	$ 0	$ 0	$ 2,404,000
Troubled Debt Restructured Loans | Consumer
Loans Modified as TDRs [Abstract]
Number of Contracts | loan	1	2	3
Outstanding Principal Balance	$ 37,000	$ 101,000	$ 141,000
Troubled Debt Restructured Loans | Modified during the year
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs		1,800,000	2,800,000
Troubled Debt Restructured Loans | Credits defaulted during the year
Loans Modified, Subsequently Defaulted [Abstract]
Related specific valuation allowance for TDRs	191,000	$ 4,000	$ 63,000
Borrower Did Not Make Specific Curtailment | Commercial business | Commercial and industrial
Loans Modified, Subsequently Defaulted [Abstract]
Outstanding Principal Balance	$ 1,700,000

Loans Receivable - Purchased Cr

Loans Receivable - Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Outstanding Principal	$ 97,927	$ 134,760
Recorded Investment	86,919	119,271
Commercial business
Financing Receivable, Impaired [Line Items]
Outstanding Principal	75,525	106,306
Recorded Investment	67,073	93,490
Commercial business | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Outstanding Principal	20,110	31,779
Recorded Investment	16,986	25,174
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Outstanding Principal	25,237	41,236
Recorded Investment	22,826	36,874
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Outstanding Principal	30,178	33,291
Recorded Investment	27,261	31,442
One-to-four family residential
Financing Receivable, Impaired [Line Items]
Outstanding Principal	5,707	6,106
Recorded Investment	5,392	5,713
Real estate construction and land development
Financing Receivable, Impaired [Line Items]
Outstanding Principal	9,975	13,420
Recorded Investment	7,328	10,296
Real estate construction and land development | One-to-four family residential
Financing Receivable, Impaired [Line Items]
Outstanding Principal	6,904	8,559
Recorded Investment	4,121	5,531
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Impaired [Line Items]
Outstanding Principal	3,071	4,861
Recorded Investment	3,207	4,765
Consumer
Financing Receivable, Impaired [Line Items]
Outstanding Principal	6,720	8,928
Recorded Investment	$ 7,126	$ 9,772

Loans Receivable - Change in Ac

Loans Receivable - Change in Accretable Yield (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at the beginning of the year	$ 21,092	$ 17,249	$ 21,638
Accretion	(6,993)	(8,054)	(8,612)
Disposal and other	(3,111)	(4,981)	(5,220)
Change in accretable yield	6,604	16,878	9,443
Balance at the end of the year	$ 17,592	$ 21,092	$ 17,249

Loans Receivable - Contractual

Loans Receivable - Contractual Cash Flows (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	May. 01, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accretable yield	$ 17,592	$ 21,092		$ 17,249	$ 21,638
Washington Banking
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractual cash flow			$ 147,223
Expected cash flow			111,286
Non-accretable yield			35,937
Expected cash flow			111,286
Fair value			97,580
Accretable yield			$ 13,706

Loans Receivable - Related Part

Loans Receivable - Related Party Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance outstanding at beginning of period	$ 9,164	$ 7,474	$ 11,442
Principal additions	12,189	23	0
Addition of outstanding loan balance due to change in related party status		1,858
Elimination of outstanding loan balance due to change in related party status			(3,045)
Principal reductions	(578)	(191)	(923)
Balance outstanding at end of period	20,775	9,164	$ 7,474
Unfunded commitments to related parties	$ 603	$ 543

Loans Receivable - Mortgage Ban

Loans Receivable - Mortgage Banking (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Mortgage Banking [Line Items]
Loans held for sale at lower of cost or market	$ 7,682	$ 5,582
Mortgage Receivable
Mortgage Banking [Line Items]
Loans held for sale at lower of cost or market	7,682	5,582
One-to-four family residential loans sold during the year	132,149	55,997
Commitments to sell mortgage loans	16,741	10,625
Commitments to fund mortgage loans (at interest rates approximating market rates): Fixed rate	11,884	8,467
Commitments to fund mortgage loans (at interest rates approximating market rates): Variable or adjustable rate	$ 4,857	$ 2,158

Loans Receivable - SBA Loans (D

Loans Receivable - SBA Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
SBA Loans [Line Items]
Servicing fee income and fees	$ 392	$ 260	$ 106
SBA Loans
SBA Loans [Line Items]
SBA loans serviced for others with participating interest	43,771	31,009
SBA loans serviced for others with no participating interest	0	0
Participations owned by the Bank	$ 10,100	$ 7,400

Allowance for Loan Losses - Act

Allowance for Loan Losses - Activity in Allowance for Losses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				$ 27,729				$ 28,824	$ 27,729	$ 28,824	$ 28,594
Charge-offs									(3,482)	(6,597)	(4,371)
Recoveries									1,127	908	929
Provision for Loan Losses	$ 1,124	$ 851	$ 1,189	1,208	$ 2,851	$ 594	$ 691	458	4,372	4,594	3,672
Balance at Beginning of Year	29,746				27,729				29,746	27,729	28,824
Commercial business
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				20,186				22,853	20,186	22,853	19,302
Charge-offs									(1,676)	(5,252)	(3,073)
Recoveries									476	716	808
Provision for Loan Losses									3,078	1,869	5,816
Balance at Beginning of Year	22,064				20,186				22,064	20,186	22,853
One-to-four family residential
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				1,200				1,100	1,200	1,100	1,221
Charge-offs									0	(31)	(52)
Recoveries									13	7	0
Provision for Loan Losses									(56)	124	(69)
Balance at Beginning of Year	1,157				1,200				1,157	1,200	1,100
Real estate construction and land development
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				2,758				2,673	2,758	2,673	5,440
Charge-offs									(106)	(345)	(565)
Recoveries									100	43	32
Provision for Loan Losses									(881)	387	(2,234)
Balance at Beginning of Year	1,871				2,758				1,871	2,758	2,673
Consumer
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				2,769				1,597	2,769	1,597	1,761
Charge-offs									(1,700)	(969)	(681)
Recoveries									538	142	89
Provision for Loan Losses									2,702	1,999	428
Balance at Beginning of Year	4,309				2,769				4,309	2,769	1,597
Unallocated
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				816				601	816	601	870
Charge-offs									0	0	0
Recoveries									0	0	0
Provision for Loan Losses									(471)	215	(269)
Balance at Beginning of Year	345				816				345	816	601
Commercial and industrial | Commercial business
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				10,553				13,478	10,553	13,478	9,912
Charge-offs									(1,488)	(4,504)	(2,826)
Recoveries									476	716	248
Provision for Loan Losses									431	863	6,144
Balance at Beginning of Year	9,972				10,553				9,972	10,553	13,478
Owner-occupied commercial real estate | Commercial business
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				4,095				4,049	4,095	4,049	4,021
Charge-offs									0	(337)	(247)
Recoveries									0	0	560
Provision for Loan Losses									473	383	(285)
Balance at Beginning of Year	4,568				4,095				4,568	4,095	4,049
Non-owner occupied commercial real estate | Commercial business
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				5,538				5,326	5,538	5,326	5,369
Charge-offs									(188)	(411)	0
Recoveries									0	0	0
Provision for Loan Losses									2,174	623	(43)
Balance at Beginning of Year	7,524				5,538				7,524	5,538	5,326
One-to-four family residential | Real estate construction and land development
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				1,786				1,720	1,786	1,720	3,131
Charge-offs									(106)	(345)	(423)
Recoveries									100	43	0
Provision for Loan Losses									(722)	368	(988)
Balance at Beginning of Year	1,058				1,786				1,058	1,786	1,720
Five or more family residential and commercial properties | Real estate construction and land development
Schedule of changes in allowance for loan losses
Balance at Beginning of Year				$ 972				$ 953	972	953	2,309
Charge-offs									0	0	(142)
Recoveries									0	0	32
Provision for Loan Losses									(159)	19	(1,246)
Balance at Beginning of Year	$ 813				$ 972				$ 813	$ 972	$ 953

Allowance for Loan Losses - Dis

Allowance for Loan Losses - Disaggregated on Basis of Impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	$ 3,308	$ 3,658
Loans Collectively Evaluated for Impairment	17,354	15,016
PCI Loans	9,084	9,055
Total Allowance for Loan Losses	29,746	27,729	$ 28,824	$ 28,594
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	2,925	2,844
Loans Collectively Evaluated for Impairment	12,274	10,747
PCI Loans	6,865	6,595
Total Allowance for Loan Losses	22,064	20,186	22,853	19,302
Commercial business | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	1,173	1,334
Loans Collectively Evaluated for Impairment	6,276	6,557
PCI Loans	2,523	2,662
Total Allowance for Loan Losses	9,972	10,553	13,478	9,912
Commercial business | Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	809	979
Loans Collectively Evaluated for Impairment	1,860	1,643
PCI Loans	1,899	1,473
Total Allowance for Loan Losses	4,568	4,095	4,049	4,021
Commercial business | Non-owner occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	943	531
Loans Collectively Evaluated for Impairment	4,138	2,547
PCI Loans	2,443	2,460
Total Allowance for Loan Losses	7,524	5,538	5,326	5,369
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	85	75
Loans Collectively Evaluated for Impairment	546	538
PCI Loans	526	587
Total Allowance for Loan Losses	1,157	1,200	1,100	1,221
Real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	269	681
Loans Collectively Evaluated for Impairment	1,000	972
PCI Loans	602	1,105
Total Allowance for Loan Losses	1,871	2,758	2,673	5,440
Real estate construction and land development | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	66	447
Loans Collectively Evaluated for Impairment	481	322
PCI Loans	511	1,017
Total Allowance for Loan Losses	1,058	1,786	1,720	3,131
Real estate construction and land development | Five or more family residential and commercial properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	203	234
Loans Collectively Evaluated for Impairment	519	650
PCI Loans	91	88
Total Allowance for Loan Losses	813	972	953	2,309
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	29	58
Loans Collectively Evaluated for Impairment	3,189	1,943
PCI Loans	1,091	768
Total Allowance for Loan Losses	4,309	2,769	1,597	1,761
Unallocated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Individually evaluated for impairment	0	0
Loans Collectively Evaluated for Impairment	345	816
PCI Loans	0	0
Total Allowance for Loan Losses	$ 345	$ 816	$ 601	$ 870

Allowance for Loan Losses - Rec

Allowance for Loan Losses - Recorded Investment Disaggregated on Basis of Impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	$ 30,362	$ 30,231
Loans Collectively Evaluated for Impairment	2,283,832	2,102,512
PCI Loans	86,919	119,271
Total	2,401,113	2,252,014
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	24,466	23,016
Loans Collectively Evaluated for Impairment	1,831,782	1,692,569
PCI Loans	67,073	93,490
Total	1,923,321	1,809,075
Commercial business | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	9,641	11,374
Loans Collectively Evaluated for Impairment	570,099	533,905
PCI Loans	16,986	25,174
Total	596,726	570,453
Commercial business | Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	4,295	3,913
Loans Collectively Evaluated for Impairment	602,086	554,199
PCI Loans	22,826	36,874
Total	629,207	594,986
Commercial business | Non-owner occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	10,530	7,729
Loans Collectively Evaluated for Impairment	659,597	604,465
PCI Loans	27,261	31,442
Total	697,388	643,636
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	275	245
Loans Collectively Evaluated for Impairment	66,881	63,572
PCI Loans	5,392	5,713
Total	72,548	69,530
Real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	5,428	6,759
Loans Collectively Evaluated for Impairment	94,321	97,060
PCI Loans	7,328	10,296
Total	107,077	114,115
Real estate construction and land development | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	3,468	4,703
Loans Collectively Evaluated for Impairment	44,163	38,961
PCI Loans	4,121	5,531
Total	51,752	49,195
Real estate construction and land development | Five or more family residential and commercial properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	1,960	2,056
Loans Collectively Evaluated for Impairment	50,158	58,099
PCI Loans	3,207	4,765
Total	55,325	64,920
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Individually Evaluated for Impairment	193	211
Loans Collectively Evaluated for Impairment	290,848	249,311
PCI Loans	7,126	9,772
Total	$ 298,167	$ 259,294

FDIC Indemnification Asset (Det

FDIC Indemnification Asset (Details) $ in Thousands	Aug. 04, 2015USD ($)acquisition	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Jun. 30, 2015USD ($)
FDIC Indemnification Asset [Roll Forward]
Balance at the beginning of the period		$ 1,116	$ 4,382	$ 7,100
Additions as a result of the Washington Banking Merger		0	7,174	0
Cash payments received or receivable from the FDIC		(231)	(7,897)	(2,537)
FDIC share of additional estimated (gains) losses		(352)	(1,072)	1,086
Net amortization		(145)	(1,471)	(1,267)
Change due to termination of FDIC shared-loss agreements		(388)	0	0
Balance at the end of the period		0	1,116	4,382
Number of FDIC-assisted acquisitions | acquisition	3
Consideration paid to FDIC for the termination of shared-loss agreements	$ 7,100
Gain on termination of FDIC shared-loss agreements	$ 1,700	$ 1,747	$ 0	$ 0
FDIC clawback liability					$ 9,300

Other Real Estate Owned (Detail

Other Real Estate Owned (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Changes in other real estate owned
Balance at the beginning of the year	$ 3,355	$ 4,559	$ 5,666
Additions	2,845	1,566	2,974
Additions from acquisitions	0	7,121	2,279
Proceeds from dispositions	(3,555)	(9,914)	(6,253)
(Loss) gain on sales, net	(97)	23	264
Valuation adjustment	(529)	0	(371)
Balance at the end of the year	$ 2,019	$ 3,355	$ 4,559

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 88,559	$ 88,711
Accumulated depreciation	26,668	23,773
Premises and equipment, net	61,891	64,938
Depreciation	4,000	3,500	$ 2,300
Land
Property, Plant and Equipment [Line Items]
Total premises and equipment	21,695	22,364
Buildings and Building Improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	49,630	52,067
Furniture, Fixtures and Equipment
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 17,234	$ 14,280

Goodwill and Other Intangible86

Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Goodwill additions	$ 0	$ 89,700,000
Goodwill impairment charges	$ 0	$ 0	$ 0
Core Deposits | Washington Banking
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
Core Deposits | Valley
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
Core Deposits | NCB
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years
Core Deposits | Pierce
Finite-Lived Intangible Assets [Line Items]
Useful life	4 years
Core Deposits | Cowlitz
Finite-Lived Intangible Assets [Line Items]
Useful life	9 years
Core Deposits | Western Washington Bancorp
Finite-Lived Intangible Assets [Line Items]
Useful life	8 years

Goodwill and Other Intangible87

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-lived Intangible Assets [Roll Forward]
Balance at the beginning of the year	$ 10,889	$ 1,615	$ 1,086
Additions as a result of acquisitions	0	11,194	1,072
Less: Amortization	2,100	1,920	543
Balance at the end of the year	$ 8,789	$ 10,889	$ 1,615

Goodwill and Other Intangible88

Goodwill and Other Intangible Assets - Future Amoriization (Details) $ in Thousands	Dec. 31, 2015USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,016	$ 1,416
2,017	1,285
2,018	1,122
2,019	1,043
2,020	989
Thereafter	2,934
Total intangible assets	$ 8,789

Deposits - Component of Deposit

Deposits - Component of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deposits [Abstract]
Noninterest demand deposits, Amount	$ 770,927	$ 709,673
NOW accounts, Amount	917,859	793,362
Money market accounts, Amount	545,342	520,065
Savings accounts, Amount	453,826	357,834
Total non-maturity deposits, Amount	2,687,954	2,380,934
Certificates of deposits accounts, Amount	420,333	525,397
Deposits	$ 3,108,287	$ 2,906,331
Noninterest demand deposits, Percent	24.80%	24.40%
NOW accounts, Percent	29.50%	27.30%
Money market accounts, Percent	17.60%	17.90%
Savings accounts, Percent	14.60%	12.30%
Total non-maturity deposits, Percent	86.50%	81.90%
Certificate of deposit accounts, Percent	13.50%	18.10%
Total deposits, Percent	100.00%	100.00%

Deposits - Textuals (Details)

Deposits - Textuals (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deposits [Abstract]
Accrued interest payable on deposits	$ 184	$ 390
Certificates of deposit issued in excess of $250,000	$ 61,200	$ 79,800

Deposits - Schedule of Interest

Deposits - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Deposits [Abstract]
NOW accounts	$ 1,476	$ 1,011	$ 645
Money market accounts	922	896	386
Savings accounts	445	252	164
Certificate of deposit accounts	2,386	2,991	2,478
Interest expense	$ 5,229	$ 5,150	$ 3,673

Deposits - Schedule of Maturiti

Deposits - Schedule of Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deposits [Abstract]
2,016	$ 279,302
2,017	83,298
2,018	22,544
2,019	17,861
2,020	17,240
Thereafter	88
Certificates of deposits	$ 420,333	$ 525,397

Junior Subordinated Debentures

Junior Subordinated Debentures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2007	May. 01, 2014
Debt Instrument [Line Items]
Issued amount			$ 25,000
Debt term			30 years
Adjustable rate of trust preferred securities	2.17%
Junior subordinated debentures	$ 19,424	$ 19,082
Junior Subordinated Debentures
Debt Instrument [Line Items]
Weighted average rate	4.29%	3.59%
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate			1.56%
Washington Banking
Debt Instrument [Line Items]
Assumed trust preferred securities and junior subordinated debentures, fair value				$ 18,900

Repurchase Agreements (Details)

Repurchase Agreements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Repurchase Agreements [Abstract]
Securities sold under agreement to repurchase	$ 23,214	$ 32,181

Other Borrowings - Textuals (De

Other Borrowings - Textuals (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Federal Home Loan Bank, Advances [Line Items]
Credit facility with the FHLB	$ 626,900,000
FHLB advances outstanding	0	$ 0
Borrowing transactions with federal home loan bank		0
Maximum federal funds purchases	90,000,000
Federal funds purchased	0	0
Federal Reserve Bank Advances
Federal Home Loan Bank, Advances [Line Items]
Credit facility with the Federal Reserve Bank of San Francisco	51,900,000
Borrowings outstanding	$ 0	$ 0
Minimum
Federal Home Loan Bank, Advances [Line Items]
Unencumbered collateral in amount equal to varying percentages	100.00%
Maximum
Federal Home Loan Bank, Advances [Line Items]
Unencumbered collateral in amount equal to varying percentages	160.00%

Other Borrowings - Federal Fund

Other Borrowings - Federal Funds Purchased (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Debt Disclosure [Abstract]
Balance at end of year	$ 0
Average balance during the year	1,777
Maximum month-end balance during the year	$ 48,200
Weighted average rate during the year	0.34%
Weighted average rate at end of year	0.00%

Employee Benefit Plans Employee

Employee Benefit Plans Employee Benefit Plans (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)hourplan	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Employee Benefits and Share-based Compensation [Line Items]
Number of retirement plans combined | plan	3
Vesting in employer contributions of all participants employed at and after May 1, 2014, percentage	100.00%
Heritage Financial Corporation 401(k) Plan and Trust Salary Saving Plan
Employee Benefits and Share-based Compensation [Line Items]
Minimum service days required for eligibility under the Plan	30 days
Employer matching contribution, percentage of employee's gross pay	50.00%
Maximum annual contribution per employee, percentage	3.00%
Employer matching contributions	$ 954	$ 852	$ 497
Heritage Financial Corporation 401(k) Plan and Trust
Employee Benefits and Share-based Compensation [Line Items]
Minimum hours of service required for eligibility under the Plan | hour	1,000
Contribution percentage by employer under profit sharing contribution	0.00%	1.50%
Employer contribution for profit sharing and discretionary		$ 475	$ 600
KSOP Defined Contribution Plan
Employee Benefits and Share-based Compensation [Line Items]
Contribution percentage by employer under profit sharing contribution			3.00%
Percent of participant eligible compensation contributed for profit share			2.00%
Deferred Compensation Plan
Employee Benefits and Share-based Compensation [Line Items]
Compensation expense under the Deferred Compensation Plan	$ 570	343	$ 445
Company's contributions	296	414	$ 155
Washington Banking | Accrued Expenses and Other Liabilities
Employee Benefits and Share-based Compensation [Line Items]
Carrying value of the obligation	$ 1,200	$ 1,200

Commitments and Contingencies C

Commitments and Contingencies Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands	Feb. 27, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Rent expense		$ 4,600	$ 3,400	$ 2,300
Counsel fees and expenses	$ 450
Minimum
Operating Leased Assets [Line Items]
Leases renewal option term		2 years
Maximum
Operating Leased Assets [Line Items]
Leases renewal option term		10 years

Commitments and Contingencies99

Commitments and Contingencies Commitments and Contingencies - Future Minimum Rental Payments (Details) $ in Thousands	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 3,503
2,017	3,207
2,018	2,872
2,019	2,197
2,020	1,927
Thereafter	3,414
Total estimated future minimum annual rental commitments	$ 17,120

Commitments and Contingencie100

Commitments and Contingencies Commitments and Contingencies - Outstanding Commitments to Extend Credit (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	$ 572,478	$ 491,132
Commercial business
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	363,615	311,818
Commercial business | Commercial and industrial
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	350,227	288,930
Commercial business | Owner-occupied commercial real estate
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	2,220	2,648
Commercial business | Non-owner occupied commercial real estate
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	11,168	20,240
Real estate construction and land development
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	74,550	56,681
Real estate construction and land development | One-to-four family residential
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	21,778	24,028
Real estate construction and land development | Five or more family residential and commercial properties
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	52,772	32,653
Consumer
Long-term Purchase Commitment [Line Items]
Total outstanding commitments	$ 134,313	$ 122,633

Derivative Financial Instrum101

Derivative Financial Instruments (Details) - Interest rate derivatives - Non-hedging interest rate swaps $ in Thousands	Dec. 31, 2015USD ($)
Derivative Asset
Notional Amounts	$ 20,750
Estimated Fair Value	$ 543
Interest Rate Paid (as a percent)	4.34%
Interest Rate Received (as a percent)	2.52%
Derivative Liability
Notional Amounts	$ (20,750)
Estimated Fair Value	$ (543)
Interest Rate Paid (as a percent)	2.52%
Interest Rate Received (as a percent)	4.34%

Stockholders' Equity - Reconcil

Stockholders' Equity - Reconciliation of Weighted Average Shares (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Net income:
Net income	$ 9,493	$ 9,492	$ 8,725	$ 9,779	$ 7,255	$ 7,068	$ 4,148	$ 2,543	$ 37,489	$ 21,014	$ 9,575
Less: Dividends and undistributed earnings allocated to participating securities									(328)	(163)	(118)
Net income allocated to common shareholders									$ 37,161	$ 20,851	$ 9,457
Basic:
Weighted average common shares outstanding (in shares)									30,057,558	25,641,229	15,667,912
Less: Restricted stock awards (in shares)									(267,943)	(210,690)	(191,677)
Total basic weighted average common shares outstanding (in shares)									29,789,615	25,430,539	15,476,235
Diluted:
Basic weighted average common shares outstanding (in shares)									29,789,615	25,430,539	15,476,235
Incremental shares from stock options (in shares)									22,725	46,750	11,480
Total diluted weighted average common shares outstanding (in shares)									29,812,340	25,477,289	15,487,715

Stockholders' Equity - Dividend

Stockholders' Equity - Dividends (Details) - $ / shares

Oct. 21, 2015

Jul. 22, 2015

Apr. 22, 2015

Jan. 28, 2015

Nov. 11, 2014

Oct. 23, 2014

Jul. 24, 2014

Mar. 27, 2014

Jan. 29, 2014

Oct. 23, 2013

Jul. 23, 2013

Apr. 24, 2013

Jan. 30, 2013

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Sep. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Dec. 31, 2015

Dec. 31, 2014

Dec. 31, 2013

Dividends [Line Items]

Declared

Oct. 21, 2015

Jul. 22, 2015

Apr. 22, 2015

Jan. 28, 2015

Oct. 23, 2014

Jul. 24, 2014

Mar. 27, 2014

Jan. 29, 2014

Oct. 23, 2013

Jul. 23, 2013

Apr. 24, 2013

Jan. 30, 2013

Cash Dividend per Share (in usd per share)

$ 0.11

$ 0.11

$ 0.11

$ 0.10

$ 0.09

$ 0.09

$ 0.08

$ 0.08

$ 0.08

$ 0.08

$ 0.08

$ 0.08

$ 0.21

$ 0.11

$ 0.11

$ 0.10

$ 0.25

$ 0.09

$ 0

$ 0.16

$ 0.53

$ 0.50

$ 0.42

Record Date

Nov. 4, 2015

Aug. 6, 2015

May 7, 2015

Feb. 10, 2015

Nov. 6, 2014

Aug. 7, 2014

Apr. 8, 2014

Feb. 10, 2014

Nov. 5, 2013

Aug. 6, 2013

May 10, 2013

Feb. 8, 2013

Paid Date

Nov. 18, 2015

Aug. 20, 2015

May 21, 2015

Feb. 24, 2015

Nov. 20, 2014

Aug. 21, 2014

Apr. 23, 2014

Feb. 24, 2014

Nov. 15, 2013

Aug. 15, 2013

May 24, 2013

Feb. 22, 2013

Special Dividend

Dividends [Line Items]

Declared

Oct. 21, 2015

Nov. 11, 2014

Jul. 23, 2013

Cash Dividend per Share (in usd per share)

$ 0.10

$ 0.16

$ 0.10

Record Date

Nov. 4, 2015

Dec. 2, 2014

Aug. 6, 2013

Paid Date

Nov. 18, 2015

Dec. 12, 2014

Aug. 15, 2013

Stockholders' Equity Stockholde

Stockholders' Equity Stockholder's Equity - Shares Repurchased (Details) - $ / shares	12 Months Ended			36 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015
Tenth Plan
Share Repurchase Program [Line Items]
Repurchased shares	0	108,075	544,000	704,975
Stock repurchase average share price (in usd per share)	$ 0	$ 16.88	$ 15.88	$ 15.85
Eleventh Plan
Share Repurchase Program [Line Items]
Repurchased shares	441,966	0	0	441,966
Stock repurchase average share price (in usd per share)	$ 16.64	$ 0	$ 0	$ 16.64

Stockholders' Equity - Narrativ

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 23, 2014	May. 01, 2014	Jul. 15, 2013	Aug. 30, 2012	Dec. 31, 2015	Dec. 31, 2014		Dec. 31, 2013
Class of Stock [Line Items]
Anti-dilutive securities excluded from computation (in shares)					4,320	20,768		163,863
Shares repurchased at an average price					22,300	48,304		13,138
Withholding taxes average price per share (in usd per share)					$ 17.09	$ 16.53		$ 14.29
Fair value of common stock issued for business combinations					$ 0	$ 226,235	[1]	$ 24,195
Common Stock
Class of Stock [Line Items]
Common stock issued in business combination, shares						14,000,000		1,533,000
Fair value of common stock issued for business combinations						$ 226,200	[1]	$ 24,195
Washington Banking
Class of Stock [Line Items]
Common stock issued in business combination, shares		14,000,178
Number of shares issued		13,870,716
Valley Community Bancshares
Class of Stock [Line Items]
Number of shares issued			1,533,267
Eleventh Plan
Class of Stock [Line Items]
Outstanding share percent	5.00%
Outstanding common shares in the plan	1,513,000
Tenth Plan
Class of Stock [Line Items]
Outstanding share percent				5.00%
Outstanding common shares in the plan				757,000
Repurchased shares					704,975
Number of remaining shares authorized to be repurchased					52,025
[1]	The amount of common stock issued in connection with the Washington Banking Merger is net of $489,000 of issuance costs.

Accumulated Other Comprehens106

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014		Dec. 31, 2013
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance of AOCI at the beginning of the year	$ 3,378	$ (1,162)		$ 1,744
Other comprehensive (loss) income before reclassification	(451)	4,726		(2,906)
Amounts reclassified from AOCI for gain on sale of investment securities included in net income	(986)	(186)		0
Held to maturity transfer to available for sale	618	0		0
Other comprehensive (loss) income	(819)	4,540		(2,906)
Balance of AOCI at the end of the year	2,559	3,378		(1,162)
Changes in fair value of available for sale securities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance of AOCI at the beginning of the year	3,567	(923)	[1]	2,042	[1]
Other comprehensive (loss) income before reclassification	(559)	4,676		(2,965)	[1]
Amounts reclassified from AOCI for gain on sale of investment securities included in net income	(1,067)	(186)		0	[1]
Held to maturity transfer to available for sale	618
Other comprehensive (loss) income	(1,008)	4,490		(2,965)	[1]
Balance of AOCI at the end of the year	2,559	3,567		(923)	[1]
Accretion of other-than- temporary impairment on held to maturity securities
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance of AOCI at the beginning of the year	(189)	(239)	[1]	(298)	[1]
Other comprehensive (loss) income before reclassification	108	50		59	[1]
Amounts reclassified from AOCI for gain on sale of investment securities included in net income	81	0		0	[1]
Held to maturity transfer to available for sale	0
Other comprehensive (loss) income	189	50		59	[1]
Balance of AOCI at the end of the year	$ 0	$ (189)		$ (239)	[1]
[1]	All amounts are net of tax.

Fair Value - Fair Value Measure

Fair Value - Fair Value Measurement on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair value measurements of assets on a recurring basis
Investment securities available for sale	$ 811,869	$ 742,846
Recurring
Fair value measurements of assets on a recurring basis
Total investment securities available for sale	811,869	742,846
Recurring | U.S. Treasury and U.S. Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	35,577	21,427
Recurring | Municipal securities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	220,993	173,037
Recurring | U.S Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	546,132	542,399
Recurring | Corporate obligations
Fair value measurements of assets on a recurring basis
Investment securities available for sale	9,113	4,010
Recurring | Mutual funds and other equities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	54	1,973
Recurring | Derivative assets - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative assets - interest rate swaps	543
Recurring | Derivative liability - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative liability - interest rate swaps	543
Recurring | Level 1
Fair value measurements of assets on a recurring basis
Total investment securities available for sale	54	1,973
Recurring | Level 1 | U.S. Treasury and U.S. Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 1 | Municipal securities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 1 | U.S Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 1 | Corporate obligations
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 1 | Mutual funds and other equities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	54	1,973
Recurring | Level 1 | Derivative assets - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative assets - interest rate swaps	0
Recurring | Level 1 | Derivative liability - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative liability - interest rate swaps	0
Recurring | Level 2
Fair value measurements of assets on a recurring basis
Total investment securities available for sale	811,815	740,873
Recurring | Level 2 | U.S. Treasury and U.S. Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	35,577	21,427
Recurring | Level 2 | Municipal securities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	220,993	173,037
Recurring | Level 2 | U.S Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	546,132	542,399
Recurring | Level 2 | Corporate obligations
Fair value measurements of assets on a recurring basis
Investment securities available for sale	9,113	4,010
Recurring | Level 2 | Mutual funds and other equities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 2 | Derivative assets - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative assets - interest rate swaps	543
Recurring | Level 2 | Derivative liability - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative liability - interest rate swaps	543
Recurring | Level 3
Fair value measurements of assets on a recurring basis
Total investment securities available for sale	0	0
Recurring | Level 3 | U.S. Treasury and U.S. Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 3 | Municipal securities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 3 | U.S Government-sponsored agencies
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 3 | Corporate obligations
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	0
Recurring | Level 3 | Mutual funds and other equities
Fair value measurements of assets on a recurring basis
Investment securities available for sale	0	$ 0
Recurring | Level 3 | Derivative assets - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative assets - interest rate swaps	0
Recurring | Level 3 | Derivative liability - interest rate swaps
Fair value measurements of assets on a recurring basis
Derivative liability - interest rate swaps	$ 0

Fair Value - Fair Value Meas108

Fair Value - Fair Value Measurement on Nonrecurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair value measurements of assets on a nonrecurring basis
Investment securities held to maturity, Fair Value	$ 0	$ 36,874
Level 1
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Investment securities held to maturity, Fair Value		0
Level 2
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Investment securities held to maturity, Fair Value		36,874
Level 3
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	2,441,531	2,279,081
Investment securities held to maturity, Fair Value		0
Nonrecurring
Fair value measurements of assets on a nonrecurring basis
Basis	1,753	2,340
Total assets measured, Fair Value	1,719	1,919
Net Losses (Gains) Recorded in Earnings	35	423
Nonrecurring | Private residential collateralized mortgage obligations
Fair value measurements of assets on a nonrecurring basis
Basis		36
Investment securities held to maturity, Fair Value		11
Net Losses (Gains) Recorded in Earnings		45
Nonrecurring | Impaired Loans
Fair value measurements of assets on a nonrecurring basis
Basis	1,753	2,304
Impaired loans, Fair Value	1,719	1,908
Net Losses (Gains) Recorded in Earnings	35	378
Nonrecurring | Impaired Loans | Commercial business
Fair value measurements of assets on a nonrecurring basis
Basis		161
Impaired loans, Fair Value		138
Net Losses (Gains) Recorded in Earnings		23
Nonrecurring | Impaired Loans | Commercial business | Commercial and industrial
Fair value measurements of assets on a nonrecurring basis
Basis		161
Impaired loans, Fair Value		138
Net Losses (Gains) Recorded in Earnings		23
Nonrecurring | Impaired Loans | Real estate construction and land development
Fair value measurements of assets on a nonrecurring basis
Basis	1,753	2,094
Impaired loans, Fair Value	1,719	1,725
Net Losses (Gains) Recorded in Earnings	35	350
Nonrecurring | Impaired Loans | Real estate construction and land development | One-to-four family residential
Fair value measurements of assets on a nonrecurring basis
Basis	1,753	2,094
Impaired loans, Fair Value	1,719	1,725
Net Losses (Gains) Recorded in Earnings	35	350
Nonrecurring | Impaired Loans | Consumer
Fair value measurements of assets on a nonrecurring basis
Basis		49
Impaired loans, Fair Value		45
Net Losses (Gains) Recorded in Earnings		5
Nonrecurring | Level 1
Fair value measurements of assets on a nonrecurring basis
Total assets measured, Fair Value	0	0
Nonrecurring | Level 1 | Private residential collateralized mortgage obligations
Fair value measurements of assets on a nonrecurring basis
Investment securities held to maturity, Fair Value		0
Nonrecurring | Level 1 | Impaired Loans
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Nonrecurring | Level 1 | Impaired Loans | Commercial business
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		0
Nonrecurring | Level 1 | Impaired Loans | Commercial business | Commercial and industrial
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		0
Nonrecurring | Level 1 | Impaired Loans | Real estate construction and land development
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Nonrecurring | Level 1 | Impaired Loans | Real estate construction and land development | One-to-four family residential
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Nonrecurring | Level 1 | Impaired Loans | Consumer
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		0
Nonrecurring | Level 2
Fair value measurements of assets on a nonrecurring basis
Total assets measured, Fair Value	0	11
Nonrecurring | Level 2 | Private residential collateralized mortgage obligations
Fair value measurements of assets on a nonrecurring basis
Investment securities held to maturity, Fair Value		11
Nonrecurring | Level 2 | Impaired Loans
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Nonrecurring | Level 2 | Impaired Loans | Commercial business
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		0
Nonrecurring | Level 2 | Impaired Loans | Commercial business | Commercial and industrial
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		0
Nonrecurring | Level 2 | Impaired Loans | Real estate construction and land development
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Nonrecurring | Level 2 | Impaired Loans | Real estate construction and land development | One-to-four family residential
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	0	0
Nonrecurring | Level 2 | Impaired Loans | Consumer
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		0
Nonrecurring | Level 3
Fair value measurements of assets on a nonrecurring basis
Total assets measured, Fair Value	1,719	1,908
Nonrecurring | Level 3 | Private residential collateralized mortgage obligations
Fair value measurements of assets on a nonrecurring basis
Investment securities held to maturity, Fair Value		0
Nonrecurring | Level 3 | Impaired Loans
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	1,719	1,908
Nonrecurring | Level 3 | Impaired Loans | Commercial business
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		138
Nonrecurring | Level 3 | Impaired Loans | Commercial business | Commercial and industrial
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		138
Nonrecurring | Level 3 | Impaired Loans | Real estate construction and land development
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	1,719	1,725
Nonrecurring | Level 3 | Impaired Loans | Real estate construction and land development | One-to-four family residential
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value	$ 1,719	1,725
Nonrecurring | Level 3 | Impaired Loans | Consumer
Fair value measurements of assets on a nonrecurring basis
Impaired loans, Fair Value		$ 45

Fair Value - Quantitative Infor

Fair Value - Quantitative Information, Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Nonrecurring | Impaired Loans
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Fair Value	$ 1,719	$ 1,908
Level 3
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Fair Value	2,441,531	2,279,081
Level 3 | Nonrecurring | Impaired Loans
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Fair Value	$ 1,719	$ 1,908
Valuation Technique(s)	Market approach	Market approach
Unobservable Input(s)	Adjustment for differences between the comparable sales	Adjustment for differences between the comparable sales
Level 3 | Nonrecurring | Impaired Loans | Minimum
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Range of Inputs; Weighted Average	(30.00%)	(47.50%)
Level 3 | Nonrecurring | Impaired Loans | Maximum
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Range of Inputs; Weighted Average	63.90%	96.20%
Level 3 | Nonrecurring | Impaired Loans | Weighted Average
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Range of Inputs; Weighted Average	24.50%	7.00%

Fair Value - Carrying Value and

Fair Value - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Financial Assets:
Investment securities held to maturity	$ 0	$ 36,874
Level 1
Financial Assets:
Cash and cash equivalents	126,640	121,636
Other interest earning deposits	0	0
Investment securities available for sale	54	1,973
Investment securities held to maturity		0
Loans held for sale	0	0
Loans receivable, net of allowance for loan losses	0	0
Accrued interest receivable	5	3
Derivative assets - interest rate swaps	0
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	2,687,954	2,380,934
Certificate of deposit accounts	0	0
Total deposits	2,687,954	2,380,934
Securities sold under agreement to repurchase	23,214	32,181
Junior subordinated debentures	0	0
Accrued interest payable	50	62
Derivative liabilities - interest rate swaps	0
Level 2
Financial Assets:
Cash and cash equivalents	0	0
Other interest earning deposits	6,723	10,145
Investment securities available for sale	811,815	740,873
Investment securities held to maturity		36,874
Loans held for sale	7,883	5,710
Loans receivable, net of allowance for loan losses	0	0
Accrued interest receivable	3,335	3,009
Derivative assets - interest rate swaps	543
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	0	0
Certificate of deposit accounts	423,352	525,768
Total deposits	423,352	525,768
Securities sold under agreement to repurchase	0	0
Junior subordinated debentures	0	0
Accrued interest payable	133	328
Derivative liabilities - interest rate swaps	543
Level 3
Financial Assets:
Cash and cash equivalents	0	0
Other interest earning deposits	0	0
Investment securities available for sale	0	0
Investment securities held to maturity		0
Loans held for sale	0	0
Loans receivable, net of allowance for loan losses	2,441,531	2,279,081
Accrued interest receivable	7,129	6,824
Derivative assets - interest rate swaps	0
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	0	0
Certificate of deposit accounts	0	0
Total deposits	0	0
Securities sold under agreement to repurchase	0	0
Junior subordinated debentures	15,000	19,082
Accrued interest payable	24	21
Derivative liabilities - interest rate swaps	0
Carrying Value
Financial Assets:
Cash and cash equivalents	126,640	121,636
Other interest earning deposits	6,719	10,126
Investment securities available for sale	811,869	742,846
Investment securities held to maturity		35,814
Federal Home Loan Bank stock	4,148	12,188
Loans held for sale	7,682	5,582
Loans receivable, net of allowance for loan losses	2,372,296	2,223,348
Accrued interest receivable	10,469	9,836
Derivative assets - interest rate swaps	543
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	2,687,954	2,380,934
Certificate of deposit accounts	420,333	525,397
Total deposits	3,108,287	2,906,331
Securities sold under agreement to repurchase	23,214	32,181
Junior subordinated debentures	19,424	19,082
Accrued interest payable	207	411
Derivative liabilities - interest rate swaps	543
Fair Value
Financial Assets:
Cash and cash equivalents	126,640	121,636
Other interest earning deposits	6,723	10,145
Investment securities available for sale	811,869	742,846
Investment securities held to maturity		36,874
Loans held for sale	7,883	5,710
Loans receivable, net of allowance for loan losses	2,441,531	2,279,081
Accrued interest receivable	10,469	9,836
Derivative assets - interest rate swaps	543
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	2,687,954	2,380,934
Certificate of deposit accounts	423,352	525,768
Total deposits	3,111,306	2,906,702
Securities sold under agreement to repurchase	23,214	32,181
Junior subordinated debentures	15,000	19,082
Accrued interest payable	207	$ 411
Derivative liabilities - interest rate swaps	$ 543

Fair Value - Narrative (Details

Fair Value - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Fair value assets transfers between level 1 and level 2 transfer amount	$ 0	$ 0

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($)	Jul. 24, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares remain available for future issuances under stock-based compensation plans		1,262,712
Proceeds from exercise of stock options		$ 751,000	$ 915,000	$ 200,000
Restricted stock awards issued, net of forfeitures		1,600,000	1,400,000	1,200,000
the Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance	1,500,000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation		0	20,000	71,000
Tax benefit		0	0	0
Intrinsic value of options exercised		299,000	459,000	54,000
Proceeds from exercise of stock options		$ 751,000	915,000	200,000
Employee Stock Option | Option 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Expiration period		5 years
Employee Stock Option | Option 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Expiration period		10 years
Restricted Stock Awards | Award 1
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Restricted Stock Awards | Award 2
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Restricted and Unrestricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation		$ 1,600,000	1,400,000	1,200,000
Tax benefit		546,000	$ 489,000	$ 428,000
Unrecognized compensation expense related to non-vested stock option		$ 2,900,000
Weighted average period		2 years 3 months 18 days

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Shares
Outstanding at beginning of period (in shares)	300,658	156,407	194,482	300,658
Granted (in shares)	0	0	0	0
Exercised (in shares)	(16,553)	(61,529)	(84,189)
Forfeited or expired (in shares)	(89,623)	(15,470)	(44,134)
Outstanding at end of period (in shares)		79,408	156,407	194,482
Vested and expected to vest at end of period (in shares)		79,408
Exercisable at end of period (in shares)		79,408
Weighted-Average Exercise Price
Outstanding at beginning of period (in usd per share)	$ 17.48	$ 13.59	$ 15.82	$ 17.48
Granted (in usd per share)	0	0	10.72
Exercised (in usd per share)	12.10	12.15	10.86
Forfeited or expired (in usd per share)	$ 22.07	16.27	22.76
Outstanding at end of period (in usd per share)		14.19	$ 13.59	$ 15.82
Vested and expected to vest at end of period (in usd per share)		14.19
Exercisable at end of period (in usd per share)		$ 14.19
Weighted-Average Remaining Contractual Term, Outstanding		2 years 10 months 20 days
Weighted-Average Remaining Contractual Term, Vested and expected to vest		2 years 10 months 20 days
Weighted-Average Remaining Contractual Term, Exercisable		2 years 10 months 20 days
Aggregate Intrinsic Value, Outstanding		$ 372
Aggregate Intrinsic Value, Vested and expected to vest		372
Aggregate Intrinsic Value, Exercisable		$ 372
Washington Banking
Shares
Granted (in shares)			90,248

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted and Unrestricted Stock Award Activity (Details) - Restricted and Unrestricted Stock - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2015	Dec. 31, 2014
Shares
Nonvested at beginning of period (in shares)	189,670	238,669	202,939
Granted (in shares)	103,195	121,320	130,548
Vested (in shares)	(86,819)	(92,486)	(85,373)
Forfeited (in shares)	(3,107)	(2,982)	(9,445)
Nonvested at end of period (in shares)		264,521	238,669
Weighted-Average Grant Date Fair Value
Nonvested at beginning of period (in usd per share)	$ 14.86	$ 15.20	$ 14.29
Granted (in usd per share)	14.31	16.72	16.03
Vested (in usd per share)	15.55	15.12	14.37
Forfeited (in usd per share)	$ 14.89	15.73	14.67
Nonvested at end of period (in usd per share)		$ 15.92	$ 15.20

Income Taxes - Income Tax Expen

Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Current tax expense									$ 9,760	$ 9,992	$ 4,344
Deferred tax (benefit) expense									4,058	(3,087)	326
Decrease in valuation allowance									0	0	(77)
Income tax expense	$ 2,647	$ 3,819	$ 3,358	$ 3,994	$ 1,328	$ 2,765	$ 1,544	$ 1,268	$ 13,818	$ 6,905	$ 4,593

Income Taxes - Effective Income

Income Taxes - Effective Income Tax (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015USD ($)tranch	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2014USD ($)	Mar. 31, 2014USD ($)	Dec. 31, 2015USD ($)tranch	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)
Income Tax Disclosure [Abstract]
Income tax expense at Federal statutory rate									$ 17,957	$ 9,772	$ 4,959
Tax-exempt instruments									(2,482)	(1,598)	(858)
Non-deductible acquisition costs									0	373	469
Federal tax credits									(812)	(812)	0
Effects of BOLI									(474)	(159)	(25)
Tax resolutions									(300)	(728)	0
Valuation allowance									0	0	(77)
Other, net									(71)	57	125
Income tax expense	$ 2,647	$ 3,819	$ 3,358	$ 3,994	$ 1,328	$ 2,765	$ 1,544	$ 1,268	$ 13,818	$ 6,905	$ 4,593
Subsidiaries | Investment Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Number of tranches | tranch	3								3
Allocation of New Market Tax Credit investments	$ 25,000								$ 25,000
Percentage of tranche required to be funded to claim the entire tax credit									85.00%
Subsidiaries | Investment Tax Credit Carryforward | 2020
Operating Loss Carryforwards [Line Items]
Gross tax credits related to the tranches	$ 9,800								$ 9,800

Income Taxes - Deferred Income

Income Taxes - Deferred Income Tax Asset (Liability) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Allowance for loan losses	$ 6,317	$ 5,460
Accrued compensation	1,011	1,382
Stock compensation	890	818
Capital loss carryforward	0	30
Unrealized losses charged to earnings on other than temporarily impaired investment securities	0	338
Market discount on purchased loans	15,562	17,949
Foregone interest on nonaccrual loans	2,665	2,337
Net operating loss carryforward acquired from NCB	518	553
Difference in amounts reflected in financial statements and income tax basis of certain liabilities assumed in business combinations	89	3,492
Other deferred tax assets	1,503	1,394
Total deferred tax assets	28,555	33,753
Deferred tax liabilities:
Deferred loan fees, net	(3,489)	(1,982)
Premises and equipment	(1,853)	(1,937)
FHLB stock	(926)	(2,768)
Net unrealized gains charged to other comprehensive income on securities	(1,389)	(1,832)
Indemnification asset	0	(392)
Goodwill and other intangible assets	(1,021)	(1,560)
Federal tax credits	(876)	(439)
Junior subordinated debentures	(2,225)	(2,349)
Other deferred tax liabilities	(627)	(730)
Total deferred tax liabilities	(12,406)	(13,989)
Deferred income tax asset, net	$ 16,149	$ 19,764

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Income Tax Expense [Line Items]
Net operating loss carryforward	$ 1,500,000	$ 1,600,000
Valuation allowance	0
Taxable temporary difference	2,800,000
Estimated deferred tax liability not recognized for temporary difference	980,000
Domestic Tax Authority | Capital Loss Carryforward
Income Tax Expense [Line Items]
Federal capital loss carryforwards	$ 0	$ 85,000

Regulatory Capital Requireme119

Regulatory Capital Requirements (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital Required for Capital Adequacy	$ 129,673
Common Equity Tier One Capital Required for Capital Adequacy to Average Assets	4.50%
Common Equity Tier One Capital	$ 345,993
Common Equity Tier One Capital to Average Assets	12.00%
Tier One Leverage Capital Required for Capital Adequacy	$ 140,395	$ 132,881
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier One Leverage Capital	$ 365,232	$ 340,292
Tier One Leverage Capital to Average Assets	10.40%	10.20%
Tier One Risk Based Capital Required for Capital Adequacy	$ 172,897	$ 97,620
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	4.00%
Tier One Risk Based Capital	$ 365,232	$ 340,292
Tier One Risk Based Capital to Risk Weighted Assets	12.70%	13.90%
Capital Required for Capital Adequacy	$ 230,530	$ 195,240
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Capital	$ 395,148	$ 368,198
Capital to Risk Weighted Assets	13.70%	15.10%
Heritage Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital Required for Capital Adequacy	$ 129,633
Common Equity Tier One Capital Required for Capital Adequacy to Average Assets	4.50%
Common Equity Tier One Capital Required to be Well Capitalized	$ 187,248
Common Equity Tier One Capital Required to be Well Capitalized to Average Assets	6.50%
Common Equity Tier One Capital	$ 358,600
Common Equity Tier One Capital to Average Assets	12.50%
Tier One Leverage Capital Required for Capital Adequacy	$ 140,331	$ 132,853
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier One Leverage Capital	$ 358,600	$ 332,147
Tier One Leverage Capital to Average Assets	10.20%	10.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 175,414	$ 166,000
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Tier One Risk Based Capital Required for Capital Adequacy	$ 172,844	$ 97,585
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	4.00%
Tier One Risk Based Capital	$ 358,600	$ 332,147
Tier One Risk Based Capital to Risk Weighted Assets	12.50%	13.60%
Tier One Risk Based Capital Required to be Well Capitalized	$ 230,459	$ 146,000
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	6.00%
Capital Required for Capital Adequacy	$ 230,459	$ 195,171
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Capital	$ 388,516	$ 360,053
Capital to Risk Weighted Assets	13.50%	14.80%
Capital Required to be Well Capitalized	$ 288,074	$ 244,000
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%

Heritage Financial Corporati120

Heritage Financial Corporation (Parent Company Only) - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
ASSETS
Total assets	$ 3,650,792	$ 3,457,750
LIABILITIES AND STOCKHOLDERS' EQUITY
Junior subordinated debentures	19,424	19,082
Other liabilities	29,897	45,650
Total stockholders’ equity	469,970	454,506	$ 215,762	$ 198,938
Total liabilities and stockholders’ equity	3,650,792	3,457,750
Parent Company
ASSETS
Cash and interest earning deposits	6,722	8,835	$ 2,645	$ 16,251
Investment in subsidiary bank	482,749	465,442
Other assets	1,185	863
Total assets	490,656	475,140
LIABILITIES AND STOCKHOLDERS' EQUITY
Junior subordinated debentures	19,424	19,082
Other liabilities	1,262	1,552
Total stockholders’ equity	469,970	454,506
Total liabilities and stockholders’ equity	$ 490,656	$ 475,140

Heritage Financial Corporati121

Heritage Financial Corporation (Parent Company Only) - Condensed Statements of Income (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
INTEREST INCOME:
Total interest income	$ 34,016	$ 33,484	$ 33,990	$ 34,249	$ 38,439	$ 35,031	$ 30,023	$ 17,613	$ 135,739	$ 121,106	$ 71,428
INTEREST EXPENSE:
Junior subordinated debentures									827	458	0
Interest expense	1,481	1,544	1,520	1,575	1,659	1,724	1,426	872	6,120	5,681	3,724
Net interest income	32,535	31,940	32,470	32,674	36,780	33,307	28,597	16,741	129,619	115,425	67,704
NONINTEREST INCOME:
Other income									7,929	4,986	2,493
Total noninterest income	7,498	9,544	6,881	8,345	3,897	5,483	4,780	2,307	32,268	16,467	9,651
NONINTEREST EXPENSE:
Professional services									3,536	6,185	3,936
Other expense									10,395	9,112	4,798
Total noninterest expense	26,769	27,322	26,079	26,038	29,243	28,363	26,994	14,779	106,208	99,379	59,515
Income before income taxes	12,140	13,311	12,083	13,773	8,583	9,833	5,692	3,811	51,307	27,919	14,168
Income tax benefit	2,647	3,819	3,358	3,994	1,328	2,765	1,544	1,268	13,818	6,905	4,593
Net income	$ 9,493	$ 9,492	$ 8,725	$ 9,779	$ 7,255	$ 7,068	$ 4,148	$ 2,543	37,489	21,014	9,575
Parent Company
INTEREST INCOME:
Interest and dividends on interest earning deposits and other assets									28	17	22
Total interest income									28	17	22
INTEREST EXPENSE:
Junior subordinated debentures									827	458	0
Interest expense									827	458	0
Net interest income									(799)	(441)	22
NONINTEREST INCOME:
Dividends from subsidiary banks									22,000	66,300	26,000
Equity in (excess distributed) undistributed income of subsidiary banks									18,131	(40,737)	(13,001)
Other income									0	3	0
Total noninterest income									40,131	25,566	12,999
NONINTEREST EXPENSE:
Professional services									263	2,943	1,718
Other expense									3,120	3,109	2,905
Total noninterest expense									3,383	6,052	4,623
Income before income taxes									35,949	19,073	8,398
Income tax benefit									(1,540)	(1,941)	(1,177)
Net income									$ 37,489	$ 21,014	$ 9,575

Heritage Financial Corporati122

Heritage Financial Corporation (Parent Company Only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 9,493	$ 9,492	$ 8,725	$ 9,779	$ 7,255	$ 7,068	$ 4,148	$ 2,543	$ 37,489	$ 21,014	$ 9,575
Stock option compensation expense									1,555	1,395	1,223
Stock option compensation expense									0	20	71
Net cash provided by operating activities									51,397	51,336	30,897
Cash flows from investing activities:
Net cash used in investing activities									(216,621)	(121,649)	(16,593)
Cash flows from financing activities:
Common stock cash dividends paid									(15,916)	(12,892)	(6,672)
Proceeds from exercise of stock options									751	915	200
Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock									140	118	(37)
Repurchase of common stock									(7,736)	(2,601)	(8,825)
Net cash used in financing activities									170,228	61,549	11,828
Net increase (decrease) in cash and cash equivalents									5,004	(8,764)	26,132
Parent Company
Cash flows from operating activities:
Net income									37,489	21,014	9,575
Equity in (excess distributed) undistributed income of subsidiary banks									(18,131)	40,737	13,001
Net excess tax (benefit) deficiencies from exercise of stock options and vesting of restricted stock									(140)	(118)	37
Stock option compensation expense									1,555	1,395	1,223
Stock option compensation expense									0	20	71
Net change in other assets and liabilities									(125)	817	(513)
Net cash provided by operating activities									20,648	63,865	23,394
Cash flows from investing activities:
Investment in subsidiary									0	(43,215)	(21,666)
Net cash used in investing activities									0	(43,215)	(21,666)
Cash flows from financing activities:
Common stock cash dividends paid									(15,916)	(12,892)	(6,672)
Proceeds from exercise of stock options									751	915	200
Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock									140	118	(37)
Repurchase of common stock									(7,736)	(2,601)	(8,825)
Net cash used in financing activities									(22,761)	(14,460)	(15,334)
Net increase (decrease) in cash and cash equivalents									(2,113)	6,190	(13,606)
Cash and cash equivalents at beginning of year				$ 8,835				$ 2,645	8,835	2,645	16,251
Cash and cash equivalents at end of year	$ 6,722				$ 8,835				$ 6,722	$ 8,835	$ 2,645

Selected Quarterly Financial123

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 21, 2015	Jul. 22, 2015	Apr. 22, 2015	Jan. 28, 2015	Oct. 23, 2014	Jul. 24, 2014	Mar. 27, 2014	Jan. 29, 2014	Oct. 23, 2013	Jul. 23, 2013	Apr. 24, 2013	Jan. 30, 2013	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Interest income													$ 34,016	$ 33,484	$ 33,990	$ 34,249	$ 38,439	$ 35,031	$ 30,023	$ 17,613	$ 135,739	$ 121,106	$ 71,428
Interest expense													1,481	1,544	1,520	1,575	1,659	1,724	1,426	872	6,120	5,681	3,724
Net interest income													32,535	31,940	32,470	32,674	36,780	33,307	28,597	16,741	129,619	115,425	67,704
Provision for loan losses													1,124	851	1,189	1,208	2,851	594	691	458	4,372	4,594	3,672
Net interest income after provision for loan losses													31,411	31,089	31,281	31,466	33,929	32,713	27,906	16,283	125,247	110,831	64,032
Noninterest income													7,498	9,544	6,881	8,345	3,897	5,483	4,780	2,307	32,268	16,467	9,651
Noninterest expense													26,769	27,322	26,079	26,038	29,243	28,363	26,994	14,779	106,208	99,379	59,515
Income before income taxes													12,140	13,311	12,083	13,773	8,583	9,833	5,692	3,811	51,307	27,919	14,168
Income tax expense													2,647	3,819	3,358	3,994	1,328	2,765	1,544	1,268	13,818	6,905	4,593
Net income													$ 9,493	$ 9,492	$ 8,725	$ 9,779	$ 7,255	$ 7,068	$ 4,148	$ 2,543	$ 37,489	$ 21,014	$ 9,575
Basic earnings per common share (in usd per share)													$ 0.32	$ 0.32	$ 0.29	$ 0.32	$ 0.24	$ 0.23	$ 0.16	$ 0.16	$ 1.25	$ 0.82	$ 0.01
Diluted earnings per common share (in usd per share)													0.32	0.32	0.29	0.32	0.24	0.23	0.16	0.16	1.25	0.82	0.01
Cash dividends declared on common stock (in usd per share)	$ 0.11	$ 0.11	$ 0.11	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.08	$ 0.08	$ 0.08	$ 0.08	$ 0.08	$ 0.21	$ 0.11	$ 0.11	$ 0.10	$ 0.25	$ 0.09	$ 0	$ 0.16	$ 0.53	$ 0.50	$ 0.42