Heritage Financial (HFWA) 10-K 9 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 17, 2017	Jun. 30, 2016
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, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		29,955,300
Entity Public Float			$ 512,568,088
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

Consolidated Statements of Fina

Consolidated Statements of Financial Condition - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash on hand and in banks	$ 77,117	$ 63,816
Interest earning deposits	26,628	62,824
Cash and cash equivalents	103,745	126,640
Other interest earning deposits	0	6,719
Investment securities available for sale, at fair value	794,645	811,869
Loans held for sale	11,662	7,682
Loans receivable, net	2,640,749	2,402,042
Allowance for loan losses	(31,083)	(29,746)
Total loans receivable, net	2,609,666	2,372,296
Other real estate owned	754	2,019
Premises and equipment, net	63,911	61,891
Federal Home Loan Bank stock, at cost	7,564	4,148
Bank owned life insurance	70,355	60,876
Accrued interest receivable	10,925	10,469
Prepaid expenses and other assets	79,351	58,365
Other intangible assets, net	7,374	8,789
Goodwill	119,029	119,029
Total assets	3,878,981	3,650,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	3,229,648	3,108,287
Federal Home Loan Bank advances	79,600	0
Junior subordinated debentures	19,717	19,424
Securities sold under agreement to repurchase	22,104	23,214
Accrued expenses and other liabilities	46,149	29,897
Total liabilities	3,397,218	3,180,822
Stockholders’ equity:
Preferred stock, no par value, 2,500,000 shares authorized; no shares issued and outstanding at December 31, 2016 and 2015	0	0
Common stock, no par value, 50,000,000 shares authorized; 29,954,931 and 29,975,439 shares issued and outstanding at December 31, 2016 and 2015, respectively	359,060	359,451
Retained earnings	125,309	107,960
Accumulated other comprehensive (loss) income, net	(2,606)	2,559
Total stockholders’ equity	481,763	469,970
Total liabilities and stockholders’ equity	$ 3,878,981	$ 3,650,792

Consolidated Statements of Fin3

Consolidated Statements of Financial Condition (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value (in usd per share)
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in usd per share)
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	29,954,931	29,975,439
Common stock, shares outstanding	29,954,931	29,975,439

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
INTEREST INCOME:
Interest and fees on loans	$ 122,147	$ 121,687	$ 110,437
Taxable interest on investment securities	11,215	9,578	7,328
Nontaxable interest on investment securities	4,870	4,196	2,886
Interest and dividends on other interest earning assets	280	278	455
Total interest income	138,512	135,739	121,106
INTEREST EXPENSE:
Deposits	5,010	5,229	5,150
Junior subordinated debentures	880	827	458
Other borrowings	116	64	73
Total interest expense	6,006	6,120	5,681
Net interest income	132,506	129,619	115,425
Provision for loan losses	4,931	4,372	4,594
Net interest income after provision for loan losses	127,575	125,247	110,831
NONINTEREST INCOME:
Service charges and other fees	14,354	14,179	11,143
Gain on sale of investment securities, net	1,315	1,516	287
Gain on sale of loans, net	6,994	4,683	1,518
Gain on termination of FDIC shared-loss agreements	0	1,747	0
Gain on sale of Merchant Visa portfolio	0	2,198	0
Interest rate swap fees	1,854	452	0
Other income	7,102	7,493	3,519
Total noninterest income	31,619	32,268	16,467
NONINTEREST EXPENSE:
Compensation and employee benefits	61,405	58,134	52,634
Occupancy and equipment	15,763	15,846	13,406
Data processing	7,312	7,700	9,243
Marketing	2,835	3,066	2,502
Professional services	3,606	3,536	6,185
State and local taxes	2,616	2,378	1,976
Impairment loss on investment securities, net	0	0	45
Federal deposit insurance premium	1,620	2,046	1,718
Other real estate owned, net	334	1,007	638
Amortization of intangible assets	1,415	2,100	1,920
Other expense	9,567	10,395	9,112
Total noninterest expense	106,473	106,208	99,379
Income before income taxes	52,721	51,307	27,919
Income tax expense	13,803	13,818	6,905
Net income	$ 38,918	$ 37,489	$ 21,014
Basic earnings per common share (in usd per share)	$ 1.30	$ 1.25	$ 0.0082
Diluted earnings per common share (in usd per share)	1.30	1.25	0.0082
Dividends declared per common share (in usd per share)	$ 0.72	$ 0.53	$ 0.5000

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 38,918	$ 37,489	$ 21,014
Change in fair value of investment securities available for sale, net of tax of $(2,316), $(306) and $2,531, respectively	(4,311)	(559)	4,676
Reclassification adjustment of net gain from sale of investment securities available for sale included in income, net of tax of $(461), $(574) and $(101), respectively	(854)	(1,067)	(186)
Accretion of other-than-temporary impairment on investment securities, net of tax of $0, $4 and $28, respectively	0	108	50
Reclassification of remaining unaccreted other-than-temporary impairment upon sale of investment securities held to maturity included in income, net of tax of $0, $44 and $0, respectively	0	81	0
Transfer of investment securities from held to maturity to available for sale, net of tax of $0, $334 and $0, respectively	0	618	0
Other comprehensive (loss) income	(5,165)	(819)	4,540
Comprehensive income	$ 33,753	$ 36,670	$ 25,554

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Change in fair value of securities available for sale, tax	$ (2,316)	$ (306)	$ 2,531
Reclassification adjustment of net gain from sale of investment securities available for sale included in income, tax	(461)	(574)	(101)
Accretion of other-than-temporary impairment on investment securities, tax	0	4	28
Reclassification of remaining unaccreted other-than-temporary impairment upon sale of investment securities held to maturity included in income, tax	0	44	0
Transfer of investment securities from held to maturity to available for sale, tax	$ 0	$ 334	$ 0

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($)	Total	Common stock	Retained earnings	Accumulated other comprehensive (loss) income, net
Beginning balance, shares at Dec. 31, 2013		16,211,000
Balance of AOCI at the beginning of the year at Dec. 31, 2013	$ 215,762,000	$ 138,659,000	$ 78,265,000	$ (1,162,000)
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	$ 20,000	$ 20,000
Exercise of stock options (including net excess tax benefits/deficiencies from nonqualified options), shares	84,189	84,000
Exercise of stock options (including net excess tax benefits/deficiencies from nonqualified options)	$ 921,000	$ 921,000
Restricted stock compensation expense	1,395,000	1,395,000
Net excess tax benefits/deficiencies from vesting of restricted stock	112,000	$ 112,000
Common stock repurchased, shares		(156,000)
Common stock repurchased	(2,601,000)	$ (2,601,000)
Net income	21,014,000		21,014,000
Other comprehensive income (loss), net of tax	4,540,000			4,540,000
Common stock issued in business combination, shares		14,000,000
Common stock issued in business combinations	226,235,000	$ 226,235,000
Cash dividends declared on common stock	(12,892,000)		(12,892,000)
Ending balance, shares at Dec. 31, 2014		30,260,000
Balance of AOCI at the end of the year at Dec. 31, 2014	454,506,000	$ 364,741,000	86,387,000	3,378,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Merger issuance costs	489,000
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 net excess tax benefits/deficiencies from nonqualified options), shares	61,529	61,000
Exercise of stock options (including net excess tax benefits/deficiencies from nonqualified options)	$ 765,000	$ 765,000
Restricted stock compensation expense	1,555,000	1,555,000
Net excess tax benefits/deficiencies from vesting of restricted stock	126,000	$ 126,000
Common stock repurchased, shares		(464,000)
Common stock repurchased	(7,736,000)	$ (7,736,000)
Net income	37,489,000		37,489,000
Other comprehensive income (loss), net of tax	(819,000)			(819,000)
Common stock issued in business combinations	0
Cash dividends declared on common stock	(15,916,000)		(15,916,000)
Ending balance, shares at Dec. 31, 2015		29,975,000
Balance of AOCI at the end of the year at Dec. 31, 2015	469,970,000	$ 359,451,000	107,960,000	2,559,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Merger issuance costs	0
Restricted and unrestricted stock awards issued, net of forfeitures, shares		110,000
Restricted and unrestricted stock awards issued, net of forfeitures	$ 0
Exercise of stock options (including net excess tax benefits/deficiencies from nonqualified options), shares	37,713	38,000
Exercise of stock options (including net excess tax benefits/deficiencies from nonqualified options)	$ 560,000	$ 560,000
Restricted stock compensation expense	1,840,000	1,840,000
Net excess tax benefits/deficiencies from vesting of restricted stock	103,000	$ 103,000
Common stock repurchased, shares		(168,000)
Common stock repurchased	(2,894,000)	$ (2,894,000)
Net income	38,918,000		38,918,000
Other comprehensive income (loss), net of tax	(5,165,000)			(5,165,000)
Common stock issued in business combinations	0
Cash dividends declared on common stock	(21,569,000)		(21,569,000)
Ending balance, shares at Dec. 31, 2016		29,955,000
Balance of AOCI at the end of the year at Dec. 31, 2016	$ 481,763,000	$ 359,060,000	$ 125,309,000	$ (2,606,000)

Consolidated Statement of Stoc8

Consolidated Statement of Stockholders' Equity (Parenthetical) - $ / shares	Oct. 26, 2016	Jul. 20, 2016	Apr. 20, 2016	Jan. 27, 2016	Oct. 21, 2015	Jul. 22, 2015	Apr. 22, 2015	Jan. 28, 2015	Oct. 23, 2014	Jul. 24, 2014	Mar. 27, 2014	Jan. 29, 2014	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in usd per share)	$ 0.12	$ 0.12	$ 0.12	$ 0.11	$ 0.11	$ 0.11	$ 0.11	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.08	$ 0.37	$ 0.12	$ 0.12	$ 0.11	$ 0.21	$ 0.11	$ 0.11	$ 0.10	$ 0.72	$ 0.53	$ 0.5000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 38,918	$ 37,489	$ 21,014
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	12,709	13,967	12,882
Changes in net deferred loan costs, net of amortization	(1,422)	(1,866)	(1,733)
Provision for loan losses	4,931	4,372	4,594
Net change in accrued interest receivable, FDIC indemnification asset, prepaid expenses and other assets, accrued expenses and other liabilities	2,147	(78)	13,236
Restricted stock compensation expense	1,840	1,555	1,395
Stock option compensation expense	0	0	20
Net excess tax benefit from exercise of stock options and vesting of restricted stock	(123)	(140)	(118)
Amortization of intangible assets	1,415	2,100	1,920
Gain on sale of investment securities, net	(1,315)	(1,516)	(287)
Impairment loss on investment securities, net	0	0	45
Origination of loans held for sale	(145,107)	(132,932)	(57,656)
Gain on sale of loans, net	(6,994)	(4,683)	(1,518)
Proceeds from sale of loans	148,121	135,515	57,515
Earnings on bank-owned life insurance	(1,460)	(1,354)	(455)
Valuation adjustment on other real estate owned	383	529	0
(Gain) loss on sale of other real estate owned, net	(173)	97	(23)
Gain on termination of FDIC shared-loss agreements	0	(1,747)	0
Loss on sale or write-off of furniture, equipment and leasehold improvements	110	89	505
Net cash provided by operating activities	53,980	51,397	51,336
Cash flows from investing activities:
Loans originated, net of principal payments	(242,310)	(154,111)	(21,651)
Maturities of other interest earning deposits	6,709	3,346	5,475
Maturities, calls and payments of investment securities available for sale	129,408	124,592	66,876
Maturities, calls and payments of investment securities held to maturity	0	5,221	3,284
Purchase of investment securities available for sale	(267,657)	(290,499)	(344,146)
Purchase of investment securities held to maturity	0	0	(3,294)
Purchase of premises and equipment	(6,722)	(1,821)	(3,940)
Purchase of other real estate owned	0	(188)	0
Proceeds from sales of other real estate owned	2,486	3,555	9,914
Proceeds from sales of investment securities available for sale	140,373	116,332	156,994
Proceeds from sales of investment securities held to maturity	0	972	0
Proceeds from redemption of FHLB stock	23,732	8,040	617
Purchases of FHLB stock	(27,148)	0	0
Proceeds from sale of premises and equipment	659	815	1,170
Purchase of bank owned life insurance	(8,000)	(25,019)	0
Investment in new market tax credit partnership	0	0	(25,000)
Investment in low-income housing tax credit partnership	(4,456)	(746)	0
Net cash used for termination of FDIC shared-loss agreements	0	(7,110)	0
Net cash received from acquisitions	0	0	32,052
Net cash used in investing activities	(252,926)	(216,621)	(121,649)
Cash flows from financing activities:
Net increase in deposits	121,361	201,956	73,248
FHLB advances	660,900	0	0
Repayments of FHLB advances	(581,300)	0	0
Common stock cash dividends paid	(21,569)	(15,916)	(12,892)
Net (decrease) increase in securities sold under agreement to repurchase	(1,110)	(8,967)	2,761
Proceeds from exercise of stock options	540	751	915
Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock	123	140	118
Repurchase of common stock	(2,894)	(7,736)	(2,601)
Net cash provided by financing activities	176,051	170,228	61,549
Net increase (decrease) in cash and cash equivalents	(22,895)	5,004	(8,764)
Cash and cash equivalents at beginning of year	126,640	121,636	130,400
Cash and cash equivalents at end of year	103,745	126,640	121,636
Supplemental disclosures of cash flow information:
Cash paid for interest	5,998	6,324	5,422
Cash paid for income taxes	11,500	15,286	9,786
Supplemental non-cash disclosures of cash flow information:
Transfers of loans receivable to other real estate owned	1,431	2,657	1,566
Investment in low income housing tax credit partnership and related funding commitment	19,663	0	3,817
Purchases (settlement) of investment securities available for sale not settled at year end	0	(1,288)	1,288
Common stock issued for business combinations	0	0	226,235
Stock issuance costs in connection with business combination	0	0	489
Transfer from investment securities held to maturity to available for sale	0	29,370	0
Receivable due from bank owned life insurance contract	0	445	0
Assets acquired (liabilities assumed) in merger:
Investment securities available for sale	0	0	458,312
Loans held for sale	0	0	3,923
Loans receivable	0	0	895,978
Loans receivable, covered at merger date	0	0	107,050
Other real estate owned	0	0	7,121
Premises and equipment	0	0	31,776
Federal Home Loan Bank stock	0	0	7,064
FDIC indemnification asset	0	0	7,174
Accrued interest receivable	0	0	4,943
Bank owned life insurance	0	0	32,519
Prepaid expenses and other assets	0	0	14,852
Other intangible assets	0	0	11,194
Deposits	0	0	(1,433,894)
Junior subordinated debentures	0	0	(18,937)
Accrued expenses and other liabilities	$ 0	$ 0	$ (24,067)

Description of Business, Basis

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements 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 63 branch offices 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 ("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 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. The Company reclassified $56.6 million of loans receivable previously classified as owner-occupied commercial real estate at December 31, 2015 to non-owner occupied commercial real estate for all comparative tables in Note (4) Loans Receivable. The related allowance for loan losses and provision for loan losses for all historical periods in Note (5) Allowance for Loan Losses were also reclassified. None of these loans were considered impaired at December 31, 2015. The reclassification was due to a review of certain loan products, including hotels, assisted-living housing and self-storage units, for which the Bank determined the risk characteristics were more akin to non-owner occupied loans. The Company also reclassified $179.0 million fair value ( $179.8 million amortized cost) of mortgage backed securities and collateralized mortgage obligations previously classified as residential to commercial based on a detailed review of the investment types. 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 external 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 external 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. Delinquent Loans : Delinquencies in the commercial business loan portfolio are handled by the assigned loan officer. Loan officers are responsible for collecting loans they originate or which are assigned to them. The Bank sends a borrower a delinquency notice 15 days after the due date when the borrower fails to make a required payment on a loan. If the delinquency is not brought current, additional delinquency notices are mailed at 30 and 45 days for commercial loans. Additional written and oral contacts are made with the borrower between 60 and 90 days after the due date. If a real estate loan payment is past due for 45 days or more, the collection manager may perform a review of the condition of the property. Depending on the nature of the loan and the type of collateral securing the loan, the Bank may negotiate and accept a modified payment program with the borrower, accept a voluntary deed in lieu of foreclosure or, when considered necessary, begin foreclosure proceedings. If foreclosed on, real property is generally sold at a public sale and the Bank may bid on the property to protect its interest. A decision as to whether and when to begin foreclosure proceedings is based on such factors as the amount of the outstanding loan relative to the value of the property securing the original indebtedness, the extent of the delinquency, and the borrower’s ability and willingness to cooperate in resolving the delinquency. 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 : The Bank routinely tests its problem loans for potential impairment. Problem loans that may be impaired are identified using the Bank's normal loan review procedures, which include post-approval reviews, quarterly reviews by credit administration of criticized loan reports, scheduled internal reviews, underwriting during extensions and renewals and the analysis of information routinely received on a borrower’s financial performance. 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 original 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. Subsequent to an initial measure of impairment, if there is a significant change in the amount or timing of a loan’s expected future cash flows or a change in the value of collateral or market price of a loan, based on new information received, the impairment is recalculated. However, the net carrying value of a loan never exceeds the recorded investment in the loan. 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 cash 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. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses 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. 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, 2016 and 2015 . This allowance is reported within accrued expenses and other liabilities on the Com

Business Combination

Business Combination	12 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Business Combination	Business Combination There were no acquisitions or mergers completed during the years ended December 31, 2016 and 2015. During the year ended December 31, 2014, the Company completed the merger of Washington Banking Company, referred to as the "Washington Banking Merger". 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 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 with a fair value of $226.7 million , which included the fair value of restricted stock unit awards and stock options. The Company also incurred $489,000 in capitalized stock issuance costs. 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 years ended December 31, 2016 and 2015. During the year ended December 31, 2014, the Company incurred Washington Banking Merger-related costs (including system conversion costs) of approximately $9.1 million . (The Company also incurred acquisition-related costs of approximately $443,000 during the year ended December 31, 2014 related to its Valley Community Bancshares acquisition effective July 15, 2013.) The Washington Banking Merger constitutes a business acquisition 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. Accordingly, the estimates of fair values of the acquired bank's assets, including the identifiable intangible assets, and the assumed liabilities in the merger were measured and recorded as of the effective date. The operating results of the Company for the years ended December 31, 2016, 2015 and 2014 include the operating results produced by the net assets acquired in the merger since the effective date. Disclosure of the amount of revenue and net income (excluding acquisition-related costs) of Washington Banking since the effective date 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. The following table presents certain pro forma information, for illustrative purposes only, for the year ended December 31, 2014 as if the Washington Banking Merger had occurred on January 1, 2014. 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, 2014. 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 expected 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. Year Ended December 31, 2014 (In thousands, except per share amounts) Net interest income $ 144,470 Net income $ 35,758 Basic earnings per common share $ 1.19 Diluted earnings per common share $ 1.18

Investment Securities

Investment Securities	12 Months Ended
	Dec. 31, 2016
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 year ended December 31, 2015, the Company transferred all of its investment securities classified as held to maturity to available for sale. 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, 2016 U.S. Treasury and U.S. Government-sponsored agencies $ 1,563 $ 6 $ — $ 1,569 Municipal securities 237,305 2,427 (2,476 ) 237,256 Mortgage-backed securities and collateralized mortgage obligations (1) : Residential 310,391 985 (2,200 ) 309,176 Commercial 211,259 599 (3,540 ) 208,318 Collateralized loan obligations 10,505 4 (31 ) 10,478 Corporate obligations 16,611 104 (9 ) 16,706 Other securities 11,005 156 (19 ) 11,142 Total $ 798,639 $ 4,281 $ (8,275 ) $ 794,645 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 (1) : Residential 351,606 1,749 (1,331 ) 352,024 Commercial 179,797 343 (1,129 ) 179,011 Collateralized loan obligations 15,251 — (154 ) 15,097 Corporate obligations 9,252 — (139 ) 9,113 Other securities 45 9 — 54 Total $ 807,921 $ 7,072 $ (3,124 ) $ 811,869 (1) U.S. Government-sponsored agencies. There were no securities classified as held to maturity or trading at December 31, 2016 or December 31, 2015 . The amortized cost and fair value of securities at December 31, 2016 , 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 $ 6,596 $ 6,666 Due after one year through five years 123,618 124,240 Due after five years through ten years 262,644 260,514 Due after ten years 405,736 403,102 Investment securities with no stated maturities 45 123 Total $ 798,639 $ 794,645 (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, 2016 and December 31, 2015 : 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, 2016 U.S. Treasury and U.S. Government-sponsored agencies $ — $ — $ — $ — $ — $ — Municipal securities 90,188 (2,476 ) — — 90,188 (2,476 ) Mortgage-backed securities and collateralized mortgage obligations (1) : Residential 181,562 (2,148 ) 10,854 (52 ) 192,416 (2,200 ) Commercial 157,055 (3,446 ) 12,597 (94 ) 169,652 (3,540 ) Collateralized loan obligations 2,976 (1 ) 2,969 (30 ) 5,945 (31 ) Corporate obligations 4,032 (9 ) — — 4,032 (9 ) Other securities 6,998 (19 ) — — 6,998 (19 ) Total $ 442,811 $ (8,099 ) $ 26,420 $ (176 ) $ 469,231 $ (8,275 ) 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 (1) : Residential 173,959 (870 ) 39,891 (461 ) 213,850 (1,331 ) Commercial 79,103 (1,117 ) 4,047 (12 ) 83,150 (1,129 ) Collateralized loan obligations 15,097 (154 ) — — 15,097 (154 ) Corporate obligations 8,134 (110 ) 979 (29 ) 9,113 (139 ) Total $ 328,603 $ (2,611 ) $ 46,985 $ (513 ) $ 375,588 $ (3,124 ) (1) U.S. Government-sponsored agencies. The Company has evaluated these investment securities available for sale as of December 31, 2016 and December 31, 2015 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. None of the underlying issuers of the municipal securities had credit ratings that were below investment grade levels at December 31, 2016 and December 31, 2015 . 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. 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 were 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 were then discounted at the interest rate used to recognize interest income on the security to arrive at a present value amount. For the years ended December 31, 2016 and 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, 2016 in earnings or other comprehensive income. The following table summarizes activity for the year ended December 31, 2014 related to the amount of other-than-temporary impairments on held to maturity securities. There were no initial or subsequent impairments recorded during the years ended December 31, 2016 and 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, 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, 2016, 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 securities that are pledged as collateral for the following obligations at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state to secure public deposits $ 214,834 $ 215,247 $ 212,325 $ 215,284 Federal Reserve Bank of San Francisco and FHLB to secure borrowing arrangements — — 506 506 Repurchase agreements 29,481 29,294 28,500 28,503 Other securities pledged 3,557 3,546 2,125 2,160 Total $ 247,872 $ 248,087 $ 243,456 $ 246,453

Loans Receivable

Loans Receivable	12 Months Ended
	Dec. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]
Loan 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, 2016 and December 31, 2015 consisted of the following portfolio segments and classes: December 31, 2016 December 31, 2015 (In thousands) Commercial business: Commercial and industrial $ 637,773 $ 596,726 Owner-occupied commercial real estate 558,035 572,609 Non-owner occupied commercial real estate 880,880 753,986 Total commercial business 2,076,688 1,923,321 One-to-four family residential 77,391 72,548 Real estate construction and land development: One-to-four family residential 50,414 51,752 Five or more family residential and commercial properties 108,764 55,325 Total real estate construction and land development 159,178 107,077 Consumer 325,140 298,167 Gross loans receivable 2,638,397 2,401,113 Net deferred loan costs (fees) 2,352 929 Loans receivable, net 2,640,749 2,402,042 Allowance for loan losses (31,083 ) (29,746 ) Total loans receivable, net of allowance for loan losses $ 2,609,666 $ 2,372,296 (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, 2016 ) non-owner occupied commercial real estate, commercial and industrial and owner-occupied commercial real estate. As of December 31, 2016 and December 31, 2015 , 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 1 to 10. A description of the general characteristics of the risk grades is as follows: • Grades 1 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, 2016 and December 31, 2015 . December 31, 2016 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 601,273 $ 5,048 $ 31,452 $ — $ 637,773 Owner-occupied commercial real estate 532,585 4,437 21,013 — 558,035 Non-owner occupied commercial real estate 841,383 14,573 24,924 — 880,880 Total commercial business 1,975,241 24,058 77,389 — 2,076,688 One-to-four family residential 76,020 — 1,371 — 77,391 Real estate construction and land development: One-to-four family residential 44,752 500 5,162 — 50,414 Five or more family residential and commercial properties 105,723 1,150 1,891 — 108,764 Total real estate construction and land development 150,475 1,650 7,053 — 159,178 Consumer 320,140 — 5,000 — 325,140 Gross loans receivable $ 2,521,876 $ 25,708 $ 90,813 $ — $ 2,638,397 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 544,429 11,662 16,260 258 572,609 Non-owner occupied commercial real estate 699,759 23,447 30,780 — 753,986 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 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, 2016 and December 31, 2015 were $87.8 million and $110.4 million , respectively. The balance of potential problem loans guaranteed by a governmental agency, which guarantee reduces the Company's credit exposure, was $1.1 million and $3.0 million as of December 31, 2016 and December 31, 2015 , respectively. (d) Nonaccrual Loans Nonaccrual loans, segregated by segments and classes of loans, were as follows as of December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 (In thousands) Commercial business: Commercial and industrial $ 3,531 $ 5,095 Owner-occupied commercial real estate 3,728 2,027 Non-owner occupied commercial real estate 1,321 — Total commercial business 8,580 7,122 One-to-four family residential 94 38 Real estate construction and land development: One-to-four family residential 2,008 2,414 Total real estate construction and land development 2,008 2,414 Consumer 227 94 Nonaccrual loans $ 10,909 $ 9,668 The Company had $2.8 million and $1.3 million of nonaccrual loans guaranteed by governmental agencies at December 31, 2016 and December 31, 2015 , 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, 2016 and December 31, 2015 were as follows: December 31, 2016 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,687 $ 1,733 $ 4,420 $ 633,353 $ 637,773 Owner-occupied commercial real estate 1,807 2,915 4,722 553,313 558,035 Non-owner occupied commercial real estate 733 — 733 880,147 880,880 Total commercial business 5,227 4,648 9,875 2,066,813 2,076,688 One-to-four family residential 523 — 523 76,868 77,391 Real estate construction and land development: One-to-four family residential 90 2,008 2,098 48,316 50,414 Five or more family residential and commercial properties — 377 377 108,387 108,764 Total real estate construction and land development 90 2,385 2,475 156,703 159,178 Consumer 2,292 105 2,397 322,743 325,140 Gross loans receivable $ 8,132 $ 7,138 $ 15,270 $ 2,623,127 $ 2,638,397 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 2,240 2,609 4,849 567,760 572,609 Non-owner occupied commercial real estate 2,177 184 2,361 751,625 753,986 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 There were no loans 90 days or more past due that were still accruing as of December 31, 2016 or 2015 , excluding PCI loans. (f) Impaired loans Impaired loans include nonaccrual loans and performing TDR loans. The balances of impaired loans as of December 31, 2016 and December 31, 2015 are set forth in the following tables. December 31, 2016 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 $ 1,739 $ 10,636 $ 12,375 $ 13,249 $ 1,199 Owner-occupied commercial real estate 1,150 3,574 4,724 5,107 511 Non-owner occupied commercial real estate 4,905 6,413 11,318 11,386 797 Total commercial business 7,794 20,623 28,417 29,742 2,507 One-to-four family residential — 321 321 325 97 Real estate construction and land development: One-to-four family residential 2,243 828 3,071 3,755 6 Five or more family residential and commercial properties — 1,079 1,079 1,079 60 Total real estate construction and land development 2,243 1,907 4,150 4,834 66 Consumer 48 262 310 325 64 Total $ 10,085 $ 23,113 $ 33,198 $ 35,226 $ 2,734 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 The Company had governmental guarantees of $3.5 million and $1.8 million related to the impaired loan balances at December 31, 2016 and December 31, 2015 , respectively. The average recorded investment of impaired loans for the years ended December 31, 2016 , 2015 and 2014 are set forth in the following table. Year Ended December 31, 2016 2015 2014 (In thousands) Commercial business: Commercial and industrial $ 10,207 $ 9,781 $ 14,367 Owner-occupied commercial real estate 4,540 4,346 3,582 Non-owner occupied commercial real estate 11,709 9,257 7,915 Total commercial business 26,456 23,384 25,864 One-to-four family residential 279 257 604 Real estate construction and land development: One-to-four family residential 3,305 3,841 5,452 Five or more family residential and commercial properties 1,656 2,008 2,154 Total real estate construction and land development 4,961 5,849 7,606 Consumer 645 171 786 Total $ 32,341 $ 29,661 $ 34,860 For the years ended December 31, 2016 , 2015 and 2014 no interest income was recognized subsequent to a loan’s classification as nonaccrual. For the years ended December 31, 2016 , 2015 and 2014 , the Bank recorded $651,000 , $780,000 and $1.2 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. TDR loans 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 more stringent definitions of concessions and impairment measures for PCI loans as these loans have known credit deterioration 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. 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. The second most prevalent concessions are certain modifications with extensions that also include interest rate reductions. Certain TDR loans were additionally re-amortized over a longer period of time. 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 TDR loans, 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 TDR loans 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, 2016 and December 31, 2015 were as follows: December 31, 2016 December 31, 2015 Performing TDR loans Nonaccrual TDR loans Performing TDR loans Nonaccrual (In thousands) TDR loans $ 22,288 $ 6,900 $ 20,695 $ 6,301 Allowance for loan losses on TDR loans 1,965 437 2,069 679 The unfunded commitment to borrowers related to TDR loans was $249,000 and $551,000 at December 31, 2016 and December 31, 2015 , respectively. Loans that were modified as TDR loans during the years ended December 31, 2016 , 2015 and 2014 are set forth in the following table: Year Ended December 31, 2016 2015 2014 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 19 $ 7,398 25 $ 6,312 33 $ 8,166 Owner-occupied commercial real estate 2 569 4 1,311 3 1,063 Non-owner occupied commercial real estate 2 2,121 4 7,496 3 6,548 Total commercial business 23 10,088 33 15,119 39 15,777 Real estate construction and land development: One-to-four family residential 5 2,206 4 2,291 10 3,553 Five or more family residential and commercial properties 1 1,078 — — — — Total real estate construction and land development 6 3,284 4 2,291 10 3,553 Consumer 6 66 1 37 2 101 Total modified loans 35 $ 13,438 38 $ 17,447 51 $ 19,431 (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, 2016 , 2015 and 2014 . (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 years ended December 31, 2016 and 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 . Of the 35 loans modified during the year ended December 31, 2016 , 17 loans with a total outstanding principal balance of $7.2 million had no prior modifications. The remaining loans included in the table above for the year ended December 31, 2016 were previously reported as TDR loans. 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 loan and adjusted, as necessary, in the current periods based on more recent information. The related specific valuation allowance at December 31, 2016 for loans that were modified as TDR loans during the year ended December 31, 2016 was $1.0 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. 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. Similar to the year ended December 31, 2016 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 TDR loans during the years ended December 31, 2015 and 2014 was $1.7 million and $1.8 million , respectively. The loans modified during the previous twelve months ended December 31, 2016 , 2015 and 2014 that subsequently defaulted during the years ended December 31, 2016 , 2015 and 2014 are included in the following table: Year Ended December 31, 2016 2015 2014 Number of Contracts Outstanding Principal Balance Number of Outstanding Number of Outstanding (Dollars in thousands) Commercial business: Commercial and industrial — $ — 2 $ 1,755 — $ — Owner-occupied commercial real estate 1 488 — — — — Non-owner occupied commercial real estate — — — — 1 75 Total commercial business 1 488 2 1755 1 75 Real estate construction and land development: One-to-four family residential 2 1,143 — — — — Total real estate construction and land development 2 1,143 — — — — Total 3 $ 1,631 2 $ 1,755 1 $ 75 During the year ended December 31, 2016, the three loans defaulted because they were past their modified maturity dates, and the borrowers have not repaid the credits. The Bank is in the process of granting additional extensions on these loans. There was one commercial and industrial loan totaling $1.7 million at December 31, 2015 that was modified during the previous twelve months and subsequently defaulted because the borrower did not make specific curtailment, or additional, payments on the loan during the year. The borrower was 30-89 days past due as of December 31, 2015. The other commercial and industrial loan included in the above table that defaulted during the year ended December 31, 2015 and the one non-owner occupied commercial rea

Allowance for Loan Losses

Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2016
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 FDIC shared-loss agreements terminated on August 4, 2015. Prior to their termination, when a credit deterioration occurred subsequent to the acquisition, if a 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. This was the methodology for loans that were acquired in the Cowlitz acquisition and Washington Banking Merger (including Washington Banking's prior acquisitions of City Bank and North County Bank). A summary of the changes in the allowance for loan losses during the years ended December 31, 2016 , 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at the beginning of the year $ 29,746 $ 27,729 $ 28,824 Charge-offs (6,085 ) (3,482 ) (6,597 ) Recoveries of loans previously charged-off 2,491 1,127 908 Provision for loan losses 4,931 4,372 4,594 Balance at the end of the year $ 31,083 $ 29,746 $ 27,729 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2016 : Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2016 Commercial business: Commercial and industrial $ 9,972 $ (3,265 ) $ 1,844 $ 2,417 $ 10,968 Owner-occupied commercial real estate 4,370 (538 ) — (171 ) 3,661 Non-owner occupied commercial real estate 7,722 (350 ) — 381 7,753 Total commercial business 22,064 (4,153 ) 1,844 2,627 22,382 One-to-four family residential 1,157 — 2 (144 ) 1,015 Real estate construction and land development: One-to-four family residential 1,058 (100 ) 83 (244 ) 797 Five or more family residential and commercial properties 813 (54 ) — 600 1,359 Total real estate construction and land development 1,871 (154 ) 83 356 2,156 Consumer 4,309 (1,778 ) 562 1,931 5,024 Unallocated 345 — — 161 506 Total $ 29,746 $ (6,085 ) $ 2,491 $ 4,931 $ 31,083 The following table details the allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2016 . Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,199 $ 8,048 $ 1,721 $ 10,968 Owner-occupied commercial real estate 511 1,834 1,316 3,661 Non-owner occupied commercial real estate 797 5,142 1,814 7,753 Total commercial business 2,507 15,024 4,851 22,382 One-to-four family residential 97 643 275 1,015 Real estate construction and land development: One-to-four family residential 6 538 253 797 Five or more family residential and commercial properties 60 1,168 131 1,359 Total real estate construction and land development 66 1,706 384 2,156 Consumer 64 3,912 1,048 5,024 Unallocated — 506 — 506 Total $ 2,734 $ 21,791 $ 6,558 $ 31,083 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, 2016 : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 12,375 $ 616,081 $ 9,317 $ 637,773 Owner-occupied commercial real estate 4,724 537,338 15,973 558,035 Non-owner occupied commercial real estate 11,318 846,202 23,360 880,880 Total commercial business 28,417 1,999,621 48,650 2,076,688 One-to-four family residential 321 72,165 4,905 77,391 Real estate construction and land development: One-to-four family residential 3,071 45,220 2,123 50,414 Five or more family residential and commercial properties 1,079 105,197 2,488 108,764 Total real estate construction and land development 4,150 150,417 4,611 159,178 Consumer 310 318,548 6,282 325,140 Total $ 33,198 $ 2,540,751 $ 64,448 $ 2,638,397 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 4,032 — — 338 4,370 Non-owner occupied commercial real estate 5,601 (188 ) — 2,309 7,722 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 1,662 1,899 4,370 Non-owner occupied commercial real estate 943 4,336 2,443 7,722 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 4,295 546,001 22,313 572,609 Non-owner occupied commercial real estate 10,530 715,682 27,774 753,986 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 ) — 320 4,032 Non-owner occupied commercial real estate 5,326 (411 ) — 686 5,601 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

FDIC Indemnification Asset

FDIC Indemnification Asset	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
FDIC Indemnification Asset	FDIC Indemnification Asset 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 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. The following table provides changes in the FDIC indemnification asset during the years ended December 31, 2015 and 2014 . The year ended December 31, 2016 is not included because of the above-mentioned termination. Year Ended December 31, 2015 2014 (In thousands) Balance at the beginning of the year $ 1,116 $ 4,382 Additions as a result of the Washington Banking Merger — 7,174 Cash payments received or receivable from the FDIC (231 ) (7,897 ) FDIC share of additional estimated gains (352 ) (1,072 ) Net amortization (145 ) (1,471 ) Change due to termination of FDIC shared-loss agreements (388 ) — Balance at the end of the year $ — $ 1,116

Other Real Estate Owned

Other Real Estate Owned	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
Other Real Estate Owned	Other Real Estate Owned Changes in other real estate owned during the years ended December 31, 2016 , 2015 and 2014 were as follows: Year Ended December 31, 2016 2015 2014 (In thousands Balance at the beginning of the year $ 2,019 $ 3,355 $ 4,559 Additions 1,431 2,845 1,566 Additions from acquisitions — — 7,121 Proceeds from dispositions (2,486 ) (3,555 ) (9,914 ) Gain (loss) on sales, net 173 (97 ) 23 Valuation adjustment (383 ) (529 ) — Balance at the end of the year $ 754 $ 2,019 $ 3,355 At December 31, 2016 , the carrying amount of other real estate owned that was the result of foreclosure and obtaining physical possession of residential real estate properties was $523,000 . At December 31, 2016, the recorded investment of consumer mortgage loans secured by residential real estate properties (included in the one-to-four family residential loan class in Note (4) Loans Receivable) for which formal foreclosure proceedings were in process was $81,000 .

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Premises and Equipment	Premises and Equipment A summary of premises and equipment is as follows: December 31, 2016 December 31, 2015 (In thousands) Land $ 22,677 $ 21,695 Buildings and building improvements 52,432 49,630 Furniture, fixtures and equipment 18,723 17,234 Total premises and equipment 93,832 88,559 Accumulated depreciation 29,921 26,668 Premises and equipment, net $ 63,911 $ 61,891 Total depreciation expense on premises and equipment was $3.9 million , $4.0 million and $3.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2016
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 years ended December 31, 2016 and 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, 2016 , 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, 2016 . The Company did no t record any goodwill impairment charges for the years ended December 31, 2015 and 2014 . Even though there was no goodwill impairment at December 31, 2016 , 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 amortized during the periods noted below related to acquisitions of Washington Banking, Valley, Northwest Commercial Bank, Pierce, Cowlitz and Western Washington Bancorp were estimated to be ten , ten , five , four , nine and eight years, respectively. At December 31, 2016, the CDI balance related to Washington Banking, Valley and Northwest Commercial Bank. The following table presents the change in the other intangible assets for the periods indicated: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at the beginning of the year $ 8,789 $ 10,889 $ 1,615 Additions as a result of acquisitions — — 11,194 Less: Amortization 1,415 2,100 1,920 Balance at the end of the year $ 7,374 $ 8,789 $ 10,889 The estimated aggregate amortization expense related to these intangible assets for future years is as follows: Year Ending December 31, (In thousands) 2017 $ 1,285 2018 1,122 2019 1,043 2020 989 2021 938 Thereafter 1,997 $ 7,374

Deposits

Deposits	12 Months Ended
	Dec. 31, 2016
Deposits [Abstract]
Deposits	Deposits Deposits consisted of the following: December 31, 2016 December 31, 2015 Amount Percent Amount Percent (Dollars in thousands) Noninterest demand deposits $ 882,091 27.3 % $ 770,927 24.8 % NOW accounts 963,821 29.8 917,859 29.5 Money market accounts 523,875 16.2 545,342 17.6 Savings accounts 502,460 15.6 453,826 14.6 Total non-maturity deposits 2,872,247 88.9 2,687,954 86.5 Certificate of deposit accounts 357,401 11.1 420,333 13.5 Total deposits $ 3,229,648 100.0 % $ 3,108,287 100.0 % Accrued interest payable on deposits was $186,000 and $184,000 as of December 31, 2016 and 2015 , respectively and is included in accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Interest expense, by category, is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) NOW accounts $ 1,569 $ 1,476 $ 1,011 Money market accounts 749 922 896 Savings accounts 756 445 252 Certificate of deposit accounts 1,936 2,386 2,991 $ 5,010 $ 5,229 $ 5,150 Scheduled maturities of certificates of deposit for future years are as follows: Year Ending December 31, (In thousands) 2017 $ 235,173 2018 66,431 2019 28,740 2020 15,979 2021 11,029 Thereafter 49 $ 357,401 Certificates of deposit issued in denominations equal to or in excess of $250,000 totaled $54.8 million and $61.2 million as of December 31, 2016 and 2015 , respectively.

Junior Subordinated Debentures

Junior Subordinated Debentures	12 Months Ended
	Dec. 31, 2016
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, 2016 was 2.56% . The weighted average rate of the junior subordinated debentures was 4.50% and 4.29% for the years ended December 31, 2016 and 2015 , 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, 2016 , the balance of the junior subordinated debentures was $19.7 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, 2016
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 balance of the Company's repurchase agreement obligations by class of collateral pledged as of December 31, 2016 were residential mortgage backed securities and collateralized mortgage obligations of $5.2 million , commercial mortgage backed securities and collateralized mortgage obligations of $14.0 million and U.S. Government-sponsored agencies of $2.9 million . The balance of the Company's repurchase agreement obligations by class of collateral pledged as of December 31, 2015 , were residential mortgage backed securities and collateralized mortgage obligations of $18.0 million and commercial mortgage backed securities and collateralized mortgage obligations of $5.2 million . For additional information on the total value of investment securities pledged for repurchase agreements see Note (3) Investment Securities.

Other Borrowings

Other Borrowings	12 Months Ended
	Dec. 31, 2016
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, 2016 , the Bank maintained a credit facility with the FHLB of Des Moines for $549.0 million and there were $79.6 million of FHLB advances outstanding. At December 31, 2015 there were no FHLB advances outstanding. The following table sets forth the details of FHLB advances during and as of the years ended December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 (In thousands) FHLB Advances: Balance at end of year $ 79,600 $ — Average balance during the year $ 13,349 $ 1,777 Maximum month-end balance during the year $ 79,600 $ 48,200 Weighted average rate during the year 0.55 % 0.34 % Weighted average rate at end of year 0.81 % — % 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 or other assets, principally 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, The Independent Bankers Bank ("TIB") and Pacific Coast Bankers’ Bank to purchase federal funds of up to $90.0 million as of December 31, 2016 . The lines generally mature annually or are reviewed annually. As of December 31, 2016 and 2015 , there were no federal funds purchased. (c) Credit facilities The Bank maintains a credit facility with the Federal Reserve Bank of San Francisco for $45.9 million as of December 31, 2016 , of which there were no borrowings outstanding as of December 31, 2016 or 2015 . 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, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Employee Benefit Plans (a) 401(k) Plan Effective October 1, 1999, the Company combined three Heritage Bank retirement plans, including a money purchase pension plan, a 401(k) plan, and an employee stock ownership plan ("ESOP"), and the Central Valley Bank 401(k) plan 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 Company funds certain Plan costs as accrued. The Plan includes the Company’s salary savings 401(k) plan for its employees. All employees hired may participate in the Plan the first of the month following 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. A Roth feature was added to the plan in 2016. 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, 2016 , 2015 and 2014 were $1.0 million , $954,000 and $852,000 , 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, the attainment of 18 years of age, and employment on the last day of the year. Effective January 1, 2014, the Company changed the contribution formula to make all profit sharing and discretionary contributions completely discretionary. For the years ended December 31, 2016 and 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 totaling $475,000 . Employees are vested in profit sharing contributions in the same manner as employer matching contributions discussed above. (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 $540,000 , $570,000 and $343,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. The Company’s contributions totaled $518,000 , $296,000 and $414,000 for the years ended December 31, 2016 , 2015 and 2014 , respectively. As of December 31, 2016 and 2015, the carrying value of the obligation related to the deferred compensation plans was $2.2 million and $1.7 million , 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 December 31, 2016 and 2015, the carrying value of the obligation was $1.1 million and $1.2 million , respectively.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
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 $4.4 million , $4.6 million and $3.4 million for the years ended December 31, 2016 , 2015 and 2014 , 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: Year Ending December 31, (In thousands) 2017 $ 3,409 2018 3,010 2019 2,538 2020 2,175 2021 1,380 Thereafter 2,143 $ 14,655 At December 31, 2016, one lease contains a renewal option of five years and certain leases contain 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 majority of the commitments presented below are variable rate. The Company’s exposure to credit and market risk 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, 2016 December 31, 2015 (In thousands) Commercial business: Commercial and industrial $ 368,308 $ 350,227 Owner-occupied commercial real estate 3,443 2,220 Non-owner occupied commercial real estate 8,732 11,168 Total commercial business 380,483 363,615 One-to-four family residential — — Real estate construction and land development: One-to-four family residential 23,004 21,778 Five or more family residential and commercial properties 78,121 52,772 Total real estate construction and land development 101,125 74,550 Consumer 144,405 134,313 Total outstanding commitments $ 626,013 $ 572,478 (c) Variable Interests The Company has two equity investments in Low-Income Housing Tax Credit partnerships ("LIHTCs") which are indirect federal subsidies that finance low-income housing projects. The Company reported the investments in the unconsolidated LIHTCs as prepaid expenses and other assets on the Company’s Statements of Financial Condition with carrying values of $23.3 million and $4.1 million as of December 31, 2016 and 2015, respectively. As a limited liability investor in these partnerships, the Company receives tax benefits in the form of tax deductions from partnership operating losses and federal income tax credits. The federal income tax credits are earned over a 10-year period as a result of the investment properties meeting certain criteria and are subject to recapture for noncompliance with such criteria over a 15-year period. The Company accounts for the LIHTCs under the proportional amortization method as allowed in FASB ASU 2014-01 and amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the Company's Consolidated Statements of Income as a component of income tax expense. During the years ended December 31, 2016, 2015, and 2014 the Company recognized tax benefits of $640,000 , $273,000 and $70,000 , respectively. See Note (21) Income Taxes for further information on tax benefits. The maximum exposure to loss in the LIHTCs is the amount of equity invested and credit extended by the Company. Loans to these entities are underwritten in substantially the same manner as are other loans and are generally secured. The Company has evaluated the variable interests held by the Company in each LIHTC investment and determined that the Company does not have controlling financial interests in such investments, and is not the primary beneficiary. Total unfunded contingent commitments related to the Company’s LIHTC investments totaled $18.3 million and $3.1 million at December 31, 2016 and 2015, respectively, and is reported as accrued expenses and other liabilities on the Company's Statements of Financial Condition. The Company expects to fund LIHTC commitments of $8.8 million during the year ended December 31, 2017 and $7.1 million during the year ended December 31, 2018, with the remaining commitments of $2.4 million paid by December 31, 2034. There were no impairment losses on the Company’s LIHTC investments during the years ended December 31, 2016 or 2015. The Company also made a total of $25.0 million of Qualified Equity Investments ("QEIs") into three Certified Development Entities (“CDEs”) in May 2014 and is eligible to receive New Markets Tax Credits (“NMTC”) on the QEIs. The NMTC program provides federal tax incentives to investors to make investments in distressed communities and promotes economic improvements through the development of successful businesses in these communities. The NMTC is available to investors over a seven-year period and is subject to recapture if certain events occur during such period. Gross tax credits related to the Company's CDEs totaling $9.8 million are available through 2020 . The Company 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. The Company accounts for its NMTC on the equity method and reported the investment balance as prepaid expenses and other assets on the Company’s Statements of Financial Condition with carrying values of $26.8 million at both December 31, 2016 and December 31, 2015. The Company recorded investment income of $740,000 and $562,000 during the years ended December 31, 2016 and 2015, respectively, in other income on the Company's Statements of Income. There was no investment income recorded during the year ended December 31, 2014. (d) DOR Preliminary Findings In June 2016, the Company received preliminary findings from the Washington State Department of Revenue ("DOR") regarding its business and occupation ("B&O") tax audit on the B&O tax returns of Whidbey Island Bank for the years 2010-2014. The state B&O tax is a gross receipts tax and is calculated on the gross income from activities. It is measured on the value of products, gross proceeds of sale, or gross income of the business. A substantial portion of the preliminary findings related to the receipt of FDIC shared-loss payments from the FDIC to Washington Banking Company in connection with its acquisitions of City Bank in April 2010 and North County Bank in September 2010. In their preliminary findings, the DOR is considering those payments as taxable for B&O tax purposes. The total amount of this preliminary finding, along with calculated back interest, is approximately $1.6 million . Given the early stages of this DOR audit, management's estimates of the Company's ultimate liability, if any, involve significant judgment and are based on currently available information and an assessment of the validity of facts and calculations assumed by the DOR. Management does not believe a material loss is probable at this time and there are significant factual and legal issues to be resolved. Management believes that it is reasonably possible that future changes to the Company's estimates of loss and the ultimate amount paid for resolution of this B&O audit could impact the Company's results of operations in future periods. Any such losses would be reported as a noninterest expense in the Company's Consolidated Statement of Income.

Derivative Financial Instrument

Derivative Financial Instruments	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments The Company has entered into certain interest rate swap contracts that are not designated as hedging instruments. The purpose of these derivative contracts is primarily to provide commercial business loan customers the ability to convert their loans from variable to fixed interest rates. Upon the origination of a derivative contract with a customer, the Company simultaneously enters into an offsetting derivative contract with a third party in order to offset its exposure on the variable and fixed rate components of the customer agreement. 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, 2016 and December 31, 2015 are presented in the following table. December 31, 2016 December 31, 2015 Notional Amounts Estimated Fair Value Notional Amounts Estimated Fair Value (In thousands) Non-hedging interest rate derivatives Interest rate swaps with customer (1) $ 102,709 $ 1,099 $ 20,750 $ 543 Interest rate swap with third party (1) 102,709 (1,099 ) 20,750 (543 ) (1) The estimated fair value of the derivative included in prepaid and other assets on the Consolidated Statement of Condition was $2.8 million and $543,000 as of December 31, 2016 and 2015 , respectively. The estimated fair value of the derivative classified included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition was $2.8 million and $543,000 as of December 31, 2016 and 2015 , respectively.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
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, 2016 , 2015 and 2014 : Year Ended December 31, 2016 2015 2014 (Dollars in thousands) Net income: Net income $ 38,918 $ 37,489 $ 21,014 Less: Dividends and undistributed earnings allocated to participating securities (358 ) (328 ) (163 ) Net income allocated to common shareholders $ 38,560 $ 37,161 $ 20,851 Basic: Weighted average common shares outstanding 29,963,365 30,057,558 25,641,229 Less: Restricted stock awards (285,063 ) (267,943 ) (210,690 ) Total basic weighted average common shares outstanding 29,678,302 29,789,615 25,430,539 Diluted: Basic weighted average common shares outstanding 29,678,302 29,789,615 25,430,539 Incremental shares from stock options 13,851 22,725 46,750 Total diluted weighted average common shares outstanding 29,692,153 29,812,340 25,477,289 Potential dilutive shares are excluded from the computation of earnings per share if their effect is anti-dilutive. For the years ended December 31, 2016 , 2015 and 2014 , anti-dilutive shares outstanding related to options to acquire common stock totaled 436 , 4,320 and 20,768 , 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, 2016 , 2015 and 2014 . Declared Cash Dividend per Share Record Date Paid Date 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 * January 27, 2016 $0.11 February 10, 2016 February 24, 2016 April 20, 2016 $0.12 May 5, 2016 May 19, 2016 July 20, 2016 $0.12 August 4, 2016 August 18, 2016 October 26, 2016 $0.12 November 8, 2016 November 22, 2016 October 26, 2016 $0.25 November 8, 2016 November 22, 2016 * * 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: Year Ended December 31, 2016 2015 2014 Plan Total (1) Tenth Plan Repurchased shares — — 108,075 704,975 Stock repurchase average share price $ — $ — $ 16.88 $ 15.85 Eleventh Plan Repurchased shares 138,000 441,966 — 579,966 Stock repurchase average share price $ 17.16 $ 16.64 $ — $ 16.76 (1) Represents shares repurchased and average price per share paid during the duration of each plan. During the years ended December 31, 2016 , 2015 and 2014 , the Company repurchased 29,512 , 22,300 and 48,304 shares at an average price of $17.82 , $17.09 and $16.53 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 years ended December 31, 2016 and 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. During the year ended December 31, 2014, 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, 2016
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, 2016 , 2015 and 2014 are as follows: December 31, 2016 (1) (In thousands) Balance of AOCI at the beginning of the year $ 2,559 Other comprehensive loss before reclassification (4,311 ) Amounts reclassified from AOCI for gain on sale of investment securities included in net income (854 ) Net current period other comprehensive loss (5,165 ) Balance of AOCI at the end of the year $ (2,606 ) (1) All amounts are due to the changes in fair value of available for sale securities and are net of tax. 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.

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2016
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 values of investment securities are determined by quoted market prices (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). 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, observable market price, 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 generally 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 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 based on 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 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, 2016 and December 31, 2015 . December 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 1,569 $ — $ 1,569 $ — Municipal securities 237,256 — 237,256 — Mortgage backed securities and collateralized mortgage obligations: Residential 309,176 — 309,176 — Commercial 208,318 — 208,318 — Collateralized loan obligations 10,478 — 10,478 — Corporate obligations 16,706 — 16,706 — Other securities 11,142 123 11,019 — Total investment securities available for sale $ 794,645 $ 123 $ 794,522 $ — Derivative assets - interest rate swaps $ 2,804 $ — $ 2,804 $ — Liabilities Derivative liabilities - interest rate swaps $ 2,804 $ — $ 2,804 $ — December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 35,577 $ 15,676 $ 19,901 $ — Municipal securities 220,993 — 220,993 — Mortgage backed securities and collateralized mortgage obligations: Residential 352,024 — 352,024 — Commercial 179,011 — 179,011 — Collateralized loan obligations 15,097 — 15,097 — Corporate obligations 9,113 — 9,113 — Other securities 54 54 — — Total investment securities available for sale $ 811,869 $ 15,730 $ 796,139 $ — Derivative assets - interest rate swaps $ 543 $ — $ 543 $ — Liabilities Derivative liabilities - interest rate swaps $ 543 $ — $ 543 $ — There were no transfers between Level 1 and Level 2 during the years ended December 31, 2016 and 2015 . 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, 2016 and December 31, 2015 and the net losses (gains) recorded in earnings during years ended December 31, 2016 and 2015 . Basis (1) Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Year Ended December 31, 2016 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 205 $ 200 $ — $ — $ 200 $ 5 Owner-occupied commercial real estate 780 603 — — 603 (145 ) Total commercial business 985 803 — — 803 (140 ) Real estate construction and land development: One-to-four family residential 828 822 — — 822 (23 ) Total real estate construction and land development 828 822 — — 822 (23 ) Consumer 16 9 — — 9 6 Total assets measured $ 1,829 $ 1,634 $ — $ — $ 1,634 $ (157 ) (1) Basis represents the unpaid principal balance of impaired loans. 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: Total assets measured at fair value on a nonrecurring basis (2) $ 1,753 $ 1,719 $ — $ — $ 1,719 $ 35 (1) Basis represents the unpaid principal balance of impaired loans and amortized cost of investment securities held to maturity. (2) The only assets measured at December 31, 2015 were one-to-four family residential real estate construction and land development impaired loans. 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, 2016 and December 31, 2015 . December 31, 2016 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans measured at fair value $ 1,634 Market approach Adjustment for differences between the comparable sales (23.8%) - 63.9%; 20.4% 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% (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, 2016 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 103,745 $ 103,745 $ 103,745 $ — $ — Investment securities available for sale 794,645 794,645 123 794,522 — Federal Home Loan Bank stock 7,564 N/A N/A N/A N/A Loans held for sale 11,662 11,988 — 11,988 — Total loans receivable, net of allowance for loan losses 2,609,666 2,675,811 — — 2,675,811 Accrued interest receivable 10,925 10,925 3 3,472 7,450 Derivative assets - interest rate swaps 2,804 2,804 — 2,804 — Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,872,247 $ 2,872,247 $ 2,872,247 $ — $ — Certificate of deposit accounts 357,401 357,536 — 357,536 — Total deposits $ 3,229,648 $ 3,229,783 $ 2,872,247 $ 357,536 $ — Federal Home Loan Bank advances $ 79,600 $ 79,600 $ — $ 79,600 $ — Securities sold under agreement to repurchase 22,104 22,104 22,104 — — Junior subordinated debentures 19,717 15,000 — — 15,000 Accrued interest payable 215 215 44 142 29 Derivative liabilities - interest rate swaps 2,804 2,804 — 2,804 — 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 15,730 796,139 — 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 — 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 : FHLB stock is not publicly traded; thus, it is not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. Loans Held for Sale : The fair value of loans held for sale is estimated based upon binding contracts or quotes from third party investors for similar loans. (Level 2). Loans Receivable : Except for certain 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 FASB 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). Federal Home Loan Bank Advances : The fair value of FHLB advances is estimated based on discounting the future cash flows using the market rate currently offered (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, 2016
Disclosure of Compensation Related Costs, Share-based Payments [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 units, restricted stock, performance units, performance shares or bonus shares) and cash incentive awards. Under the Company's stock-based compensation plans, 1,152,935 shares remain available for future issuance as of December 31, 2016 . (a) Stock Option Awards For the years ended December 31, 2016 and 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 year ended December 31, 2014 , the Company recognized compensation expense related to stock options of $20,000 , with no related tax benefit. The intrinsic value of options exercised during the years ended December 31, 2016 , 2015 and 2014 was $177,000 , $299,000 and $459,000 respectively. The cash proceeds from options exercised during the years ended December 31, 2016 , 2015 and 2014 were $540,000 , $751,000 and $915,000 , respectively. The following table summarizes the stock option activity for the years ended December 31, 2016 , 2015 and 2014 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) 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 Exercised (61,529 ) 12.15 Forfeited or expired (15,470 ) 16.27 Outstanding at December 31, 2015 79,408 14.19 Exercised (37,713 ) 14.31 Forfeited or expired (4,200 ) 16.80 Outstanding, vested and expected to vest and exercisable at December 31, 2016 37,495 $ 13.77 2.81 $ 449 (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 Combination 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, 2016 , 2015 and 2014 the Company recognized compensation expense related to restricted and unrestricted stock awards of $1.8 million , $1.6 million and $1.4 million , respectively, and a related tax benefit of $644,000 , $546,000 and $489,000 , respectively. As of December 31, 2016 , the total unrecognized compensation expense related to non-vested restricted stock awards was $3.1 million and the related weighted average period over which it is expected to be recognized is approximately 2.17 years. The vesting date fair value of restricted stock awards that vested during the years ended December 31, 2016 , 2015 and 2014 was $2.0 million , $1.6 million and $1.4 million , respectively. The following table summarize the restricted and unrestricted stock award activity for the years ended September 30, 2016 , 2015 and 2014 : Shares Weighted-Average Grant Date Fair Value 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 Granted 121,039 17.60 Vested (112,516 ) 15.62 Forfeited (11,748 ) 16.62 Nonvested at December 31, 2016 261,296 $ 16.80

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
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, 2016 , 2015 and 2014 consisted of the following: Year Ended December 31, 2016 2015 2014 (In thousands) Current tax expense $ 6,885 $ 9,760 $ 9,992 Deferred tax expense (benefit) 6,918 4,058 (3,087 ) Income tax expense $ 13,803 $ 13,818 $ 6,905 A reconciliation of the Company's effective income tax rate with the Federal statutory income tax rate of 35% is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Income tax expense at Federal statutory rate $ 18,452 $ 17,957 $ 9,772 Tax-exempt instruments (3,198 ) (2,482 ) (1,547 ) Non-deductible acquisition costs — — 373 Federal tax credits and other benefits (1) (931 ) (880 ) (830 ) Effects of BOLI (511 ) (474 ) (159 ) Tax resolutions (2) — (300 ) (728 ) Other, net (9 ) (3 ) 24 Income tax expense $ 13,803 $ 13,818 $ 6,905 (1) Federal tax credits are provided for under the NMTC program and LIHTC programs as described in Note (15) Commitments and Contingencies. 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. Other benefits include the proportional amortization of the LIHTC of $523,000 , $209,000 and $53,000 , for the years ended December 31, 2016, 2015 and 2014, respectively. (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, 2016 December 31, 2015 (In thousands) Deferred tax assets: Allowance for loan losses $ 4,739 $ 6,317 Accrued compensation 2,685 1,011 Stock compensation 910 890 Net unrealized losses charged to other comprehensive income on securities 1,388 — Market discount on purchased loans 10,506 15,562 Foregone interest on nonaccrual loans 1,536 2,665 Net operating loss carryforward acquired from NCB 483 518 Difference in amounts reflected in financial statements and income tax basis of certain liabilities assumed in business combinations 37 89 Other deferred tax assets 1,446 1,503 Total deferred tax assets 23,730 28,555 Deferred tax liabilities: Deferred loan fees, net (3,736 ) (3,489 ) Premises and equipment (1,660 ) (1,853 ) FHLB stock (926 ) (926 ) Net unrealized gains charged to other comprehensive income on securities — (1,389 ) Goodwill and other intangible assets (740 ) (1,021 ) Federal tax credits (1,314 ) (876 ) Junior subordinated debentures (2,122 ) (2,225 ) Other deferred tax liabilities (1,223 ) (627 ) Total deferred tax liabilities (11,721 ) (12,406 ) Deferred income tax asset, net $ 12,009 $ 16,149 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, 2016, 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 $1.4 million and $1.5 million at December 31, 2016 and 2015 , 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. 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, 2016 and 2015. As of December 31, 2016 and 2015 , 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, 2016 and 2015 and for the years ended December 31, 2016 , 2015 and 2014 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, 2016 , 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, 2016 , 2015 , 2014 and 2013 .

Regulatory Capital Requirements

Regulatory Capital Requirements	12 Months Ended
	Dec. 31, 2016
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, 2016 , the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2016 and December 31, 2015 , 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, 2016: The Company consolidated Common equity Tier 1 capital to risk-weighted assets $ 142,688 4.5 % N/A N/A $ 362,350 11.4 % Tier 1 leverage capital to average assets 148,144 4.0 N/A N/A 381,989 10.3 Tier 1 capital to risk-weighted assets 190,250 6.0 N/A N/A 381,989 12.0 Total capital to risk-weighted assets 253,667 8.0 N/A N/A 413,320 13.0 Heritage Bank Common equity Tier 1 capital to risk-weighted assets 142,573 4.5 205,938 6.5 369,915 11.7 Tier 1 leverage capital to average assets 148,024 4.0 185,030 5.0 369,915 10.0 Tier 1 capital to risk-weighted assets 190,097 6.0 253,462 8.0 369,915 11.7 Total capital to risk-weighted assets 253,462 8.0 316,828 10.0 401,168 12.7 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 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. The new capital conservation buffer requirement began to be phased-in on January 1, 2016 at 0.625% of risk-weighted assets, and will continue to increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019. At December 31, 2016, the capital conservation buffer was 5.04% and 4.66% for the Company and the Bank, respectively.

Heritage Financial Corporation

Heritage Financial Corporation (Parent Company Only)	12 Months Ended
	Dec. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed 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, 2016 December 31, 2015 (In thousands) ASSETS Cash and interest earning deposits $ 10,568 $ 6,722 Investment in subsidiary bank 489,388 482,749 Other assets 2,601 1,185 Total assets $ 502,557 $ 490,656 LIABILITIES AND STOCKHOLDERS’ EQUITY Junior subordinated debentures $ 19,717 $ 19,424 Other liabilities 1,077 1,262 Total stockholders’ equity 481,763 469,970 Total liabilities and stockholders’ equity $ 502,557 $ 490,656 HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Income Year Ended December 31, 2016 2015 2014 (In thousands) INTEREST INCOME: Interest and dividends on interest earning deposits and other assets $ 34 $ 28 $ 17 Total interest income 34 28 17 INTEREST EXPENSE: Junior subordinated debentures 880 827 458 Total interest expense 880 827 458 Net interest (expense) income (846 ) (799 ) (441 ) NONINTEREST INCOME: Dividends from subsidiary banks 30,000 22,000 66,300 Equity in (excess distributed) undistributed income of subsidiary banks 11,848 18,131 (40,737 ) Other income — — 3 Total noninterest income 41,848 40,131 25,566 NONONTEREST EXPENSE: Professional services 385 263 2,943 Other expense 3,437 3,120 3,109 Total noninterest expense 3,822 3,383 6,052 Income before income taxes 37,180 35,949 19,073 Income tax benefit (1,738 ) (1,540 ) (1,941 ) Net income $ 38,918 $ 37,489 $ 21,014 HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Cash Flows Year Ended December 31, 2016 2015 2014 (In thousands) Cash flows from operating activities: Net income $ 38,918 $ 37,489 $ 21,014 Adjustments to reconcile net income to net cash provided by operating activities: Equity in excess of (undistributed) distributed income of subsidiary bank (11,848 ) (18,131 ) 40,737 Net excess tax benefit from exercise of stock options and vesting of restricted stock (123 ) (140 ) (118 ) Restricted stock compensation expense 1,840 1,555 1,395 Stock option compensation expense — — 20 Net change in other assets and liabilities (1,141 ) (125 ) 817 Net cash provided by operating activities 27,646 20,648 63,865 Cash flows from investing activities: Investment in subsidiary — — (43,215 ) Net cash used in investing activities — — (43,215 ) Cash flows from financing activities: Common stock cash dividends paid (21,569 ) (15,916 ) (12,892 ) Proceeds from exercise of stock options 540 751 915 Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock 123 140 118 Repurchase of common stock (2,894 ) (7,736 ) (2,601 ) Net cash used in financing activities (23,800 ) (22,761 ) (14,460 ) Net increase (decrease) in cash and cash equivalents 3,846 (2,113 ) 6,190 Cash and cash equivalents at beginning of year 6,722 8,835 2,645 Cash and cash equivalents at end of year $ 10,568 $ 6,722 $ 8,835

Selected Quarterly Financial Da

Selected Quarterly Financial Data	12 Months Ended
	Dec. 31, 2016
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, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest income $ 34,235 $ 34,592 $ 35,114 $ 34,571 Interest expense 1,475 1,507 1,508 1,516 Net interest income 32,760 33,085 33,606 33,055 Provision for loan losses 1,139 1,120 1,495 1,177 Net interest income after provision for loan losses 31,621 31,965 32,111 31,878 Noninterest income 6,990 6,576 9,867 8,186 Noninterest expense 26,369 26,477 26,818 26,809 Income before provision for income taxes 12,242 12,064 15,160 13,255 Income tax expense 3,151 3,169 4,121 3,362 Net income $ 9,091 $ 8,895 $ 11,039 $ 9,893 Basic earnings per common share $ 0.30 $ 0.30 $ 0.37 $ 0.33 Diluted earnings per common share 0.30 0.30 0.37 0.33 Cash dividends declared on common stock 0.11 0.12 0.12 0.37 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

Description of Business, Basi34

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements (Policies)	12 Months Ended
	Dec. 31, 2016
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 63 branch offices 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 ("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 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. The Company reclassified $56.6 million of loans receivable previously classified as owner-occupied commercial real estate at December 31, 2015 to non-owner occupied commercial real estate for all comparative tables in Note (4) Loans Receivable. The related allowance for loan losses and provision for loan losses for all historical periods in Note (5) Allowance for Loan Losses were also reclassified. None of these loans were considered impaired at December 31, 2015. The reclassification was due to a review of certain loan products, including hotels, assisted-living housing and self-storage units, for which the Bank determined the risk characteristics were more akin to non-owner occupied loans. The Company also reclassified $179.0 million fair value ( $179.8 million amortized cost) of mortgage backed securities and collateralized mortgage obligations previously classified as residential to commercial based on a detailed review of the investment types. Reclassifications had no effect on the prior years' net income or stockholders’ equity.
Cash and Cash Equivalents	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	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	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 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 external 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 external 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. Delinquent Loans : Delinquencies in the commercial business loan portfolio are handled by the assigned loan officer. Loan officers are responsible for collecting loans they originate or which are assigned to them. The Bank sends a borrower a delinquency notice 15 days after the due date when the borrower fails to make a required payment on a loan. If the delinquency is not brought current, additional delinquency notices are mailed at 30 and 45 days for commercial loans. Additional written and oral contacts are made with the borrower between 60 and 90 days after the due date. If a real estate loan payment is past due for 45 days or more, the collection manager may perform a review of the condition of the property. Depending on the nature of the loan and the type of collateral securing the loan, the Bank may negotiate and accept a modified payment program with the borrower, accept a voluntary deed in lieu of foreclosure or, when considered necessary, begin foreclosure proceedings. If foreclosed on, real property is generally sold at a public sale and the Bank may bid on the property to protect its interest. A decision as to whether and when to begin foreclosure proceedings is based on such factors as the amount of the outstanding loan relative to the value of the property securing the original indebtedness, the extent of the delinquency, and the borrower’s ability and willingness to cooperate in resolving the delinquency. 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 : The Bank routinely tests its problem loans for potential impairment. Problem loans that may be impaired are identified using the Bank's normal loan review procedures, which include post-approval reviews, quarterly reviews by credit administration of criticized loan reports, scheduled internal reviews, underwriting during extensions and renewals and the analysis of information routinely received on a borrower’s financial performance. 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 original 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. Subsequent to an initial measure of impairment, if there is a significant change in the amount or timing of a loan’s expected future cash flows or a change in the value of collateral or market price of a loan, based on new information received, the impairment is recalculated. However, the net carrying value of a loan never exceeds the recorded investment in the loan. 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 cash 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 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 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. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses 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. 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, 2016 and 2015 . This allowance is reported within accrued expenses and other liabilities on the Company's Consolidated Statements of Financial Condition.
Mortgage Banking Operations	Mortgage Banking Operations 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 no t significant at December 31, 2016 and 2015 .
FDIC Indemnification Asset	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 Owned	Other Real Estate Owned Other real estate acquired by the Company in partial or full satisfaction of a loan obligation is classified as held for sale and recorded at fair value at time of foreclosure. When acquired, the property 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. Physical possession of residential real estate property collateralizing a consumer mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the properly to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. 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. If the estimated realizable value of the other real estate owned property declines after the acquisition date, the adjustment to the value is charged to other real estate owned expense, net.
Premises and Equipment	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	Bank Owned Life Insurance The Company has bank owned life insurance (“BOLI”) of $70.4 million at December 31, 2016, 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	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	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 Accounting Standards Update ("ASU") 2011-08 Intangibles – Goodwill and Other (Topic 350), an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. In other words, before the first step of the existing guidance, the entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that the fair value of goodwill is less than carrying value. The qualitative assessment includes adverse events or circumstances identified that could negatively affect the reporting units’ fair value as well as positive and mitigating events. Such indicators may include, among others: a significant change in legal factors or in the general business climate; significant change in the Company’s stock price and market capitalization; unanticipated competition; and an action or assessment by a regulator. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step process is unnecessary. The entity has the option to bypass the qualitative assessment step for any reporting unit in any period and proceed directly to the first step of the two-step process. The entity can resume performing the qualitative assessment in any subsequent period. The first step of the goodwill impairment test is performed, when considered necessary, by comparing the reporting unit’s aggregate fair value to its carrying value. Absent other indicators of impairment, if the aggregate fair value exceeds the carrying value, goodwill is not considered impaired and no additional analysis is necessary. If the carrying value of the reporting unit were to exceed the aggregate fair value, a second step would be performed to measure the amount of impairment loss, if any. To measure any impairment loss the implied fair value would be determined in the same manner as if the reporting unit were being acquired in a business combination. If the implied fair value of goodwill is less than the recorded goodwill, an impairment charge would be recorded for the difference.
Income Taxes	Income Taxes The Company and the Bank file a United States consolidated federal income tax return and an Oregon State income tax return. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applicable to taxable income in the periods in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets to the amounts expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company’s policy is to recognize interest and penalties on unrecognized tax benefits in “income taxes” in the Consolidated Statements of Income as the amounts are generally insignificant each year.
Stock-Based Compensation and Deferred Compensation Plan	Stock-Based Compensation The Company maintains a number of stock-based incentive programs, which are discussed in more detail in Note (20) Stock-Based Compensation. Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. The Company did no t grant stock option awards for the years ended December 31, 2016 , 2015 or 2014 , other than the options granted in 2014 as part of the Washington Banking Merger. The fair value of stock options granted would be estimated on the date of grant using the Black-Scholes-Merton option pricing model. The market price of the Company’s common stock at the date of grant is used for the restricted stock awards. Compensation cost is recognized over the requisite service period, generally defined as the vesting period, on a straight-line basis. Deferred Compensation Plan The Company has adopted a Deferred Compensation Plan and has entered into arrangements with certain executive officers. 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. Such discretionary contributions are generally approved by the Compensation Committee of the Company's Board of Directors. The notional account balances of participants under the Plan earn interest on an annual basis. The applicable interest rate is the Moody’s Seasoned Aaa Corporate Bond Yield as of January 1 of each year. Generally, a participant’s account is payable upon the earliest of the participant’s separation from service with the Company, the participant’s death or disability, or a specified date that is elected by the participant in accordance with applicable rules of the Internal Revenue Code. The Company’s obligation to make payments under the Plan is a general obligation of the Company and is to be paid from the Company’s general assets. As such, participants are general unsecured creditors of the Company with respect to their participation under the Plan. The Company records a liability within accrued expenses and other liabilities on the Consolidated Statements of Financial Condition and records compensation expense in a systematic and rational manner. Since the amounts earned are generally based on the Company’s annual performance, the Company records deferred compensation expense each year for an amount calculated based on that year’s financial performance.
Earnings per Share	Earnings per Share The two-class method is used in the calculation of basic and diluted earnings per common share. Basic earnings per common share is net income allocated to common shareholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Dividends and undistributed earnings allocated to participating securities are excluded from net income allocated to common shareholders and participating securities are excluded from weighted average common shares outstanding. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options. Earnings and dividends per share are restated for all stock splits and stock dividends through the date of issuance of the financial statements.
Derivative Financial Instruments	Derivative Financial Instruments The Company utilizes interest rate swaps to facilitate the needs of its customers. The Company enters into interest rate swaps that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Company’s customer to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s results of operations. The fair value of derivative positions outstanding is included in prepaid expenses and other assets and accrued expenses and other liabilities in the Company's Consolidated Statements of Financial Condition and the net change in each of these financial statement line items is included in the Consolidated Statements of Cash Flows. For non-hedging derivative instruments, gains and losses due to changes in fair value and all cash flows are included in other noninterest income in the Company's Consolidated Statements of Income, but net to zero for the years ended December 31, 2016 and 2015 based on the identical back-to-back interest rate swaps.
Operating Segments	Operating Segments While the Company’s chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements FASB Accounting Standards Update ("ASU" or "Update") 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 original effective date for this Update was deferred in FASB ASU 2015-14 below. FASB ASU 2015-14 , Revenue from Contracts with Customers (Topic 606) , was issued in August 2015 and defers the effective date of the above-mentioned FASB ASU 2014-09 for certain entities. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in Update 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is now permitted, but only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company expects to adopt the revenue recognition guidance on January 1, 2018 using the modified retrospective approach. A significant amount of the Company’s revenues are derived from net interest income on financial assets and liabilities, which are excluded from the scope of the amended guidance. With respect to noninterest income, the Company is in its preliminary stages of identifying and evaluating the revenue streams and underlying revenue contracts within the scope of the guidance. The Company is expecting to begin developing processes and procedures during 2017 to ensure it is fully compliant with these amendments. To date, the Company has not yet identified any significant changes in the timing of revenue recognition when considering the amended accounting guidance; however, the Company’s implementation efforts are ongoing and such assessments may change prior to the January 1, 2018 implementation date. 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 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, 2016. 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) requiring equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; 2) simplifying the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) eliminating the requirement to disclose the method(s) and significant assumptions used to estimate fair value; and 4) requiring 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 also changes certain financial statement disclosure requirements, including requiring disclosures of the fair value of financial instruments be made on the basis of exit price. 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 the 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 Update sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. The Update requires lessees to apply a dual approach, classifying leases as either a finance or operating lease. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months regardless of their classification. All cash payments will be classified within operating activities in the statement of cash flows. In transition, lessees and lessors are required to recognize and measure leases at 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 anticipates adopting the Update on January 1, 2019. Upon adoption of the guidance, the Company expects to report increased assets and increased liabilities on its Consolidated Statements of Financial Condition as a result of recognizing right-of-use assets and lease liabilities related to certain banking offices and certain equipment under noncancelable operating lease agreements, which currently are not reflected in its Consolidated Statements of Financial Condition. The Company is anticipating electing an accounting policy to not recognize lease assets and lease liabilities for leases with a term of twelve months or less. As described in Note (15) Commitments and Contingencies, the Company is committed to $14.7 million of minimum lease payments under noncancelable operating lease agreements at December 31, 2016. The Company does not expect the adoption of this amendment will have a significant impact to its Consolidated Statements of Income. FASB ASU 2016-08 , Revenue from Contracts with Customers (Topic 606) : Principal versus Agent Considerations, was issued in March 2016 and it clarifies the implementation guidance of the above-mentioned FASB ASU 2014-09 as it relates to principal versus agent considerations. The Update addresses identifying the unit of account and nature of the goods or services as well as applying the control principle and interactions with the control principle. The amendments to the Update do not change the core principle of the guidance. The effective date, transition requirements and impact on the Company's Consolidated Financial Statements for this Update are the same as those described in FASB ASU 2015-14 above. FASB ASU 2016-09 , Stock Compensation (Topic 718) , issued in March 2016, is intended to simplify several aspects of the accounting for share-based payment award transactions. For public business entities, the guidance is effective for annual periods after December 15, 2016, including interim periods within those annual periods with early adoption permitted. Certain amendments will be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Other amendments will be applied retroactively (such as presentation of employee taxes paid on the statement of cash flows) or prospectively (such as recognition of excess tax benefits on the income statement). The Company has evaluated the new guidance and does not anticipate that its adoption of this Update on January 1, 2017 will have a significant impact on its Consolidated Financial Statements. FASB ASU 2016-10 , Revenue from Contracts with Customers (Topic 606) : Identifying Performance Obligations and Licensing, was issued in April 2016 which clarifies the implementation guidance of the above-mentioned FASB ASU 2014-09 as it relates to identifying performance obligations and licensing. The effective date, transition requirements and impact on the Company's Consolidated Financial Statements for this Update are the same as those described in FASB ASU 2015-14 above. FASB ASU 2016-12 , Revenue from Contracts with Customers (Topic 606) : Narrow-scope Improvements and Practical Expedients, was issued in May 2016. The amendments in this Update do not change the core principle of the guidance in Topic 606. Rather, the amendments in this Update affect only the narrow aspects of Topic 606. The effective date, transition requirements and impact on the Company's Consolidated Financial Statements for this Update are the same as those described in FASB ASU 2015-14 above. FASB ASU 2016-13 , Financial Instruments: Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, was issued in June 2016. Commonly referred to as the current expected credit loss model ("CECL"), this Update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. The measurement of expected credit losses is based on relevant information about past events including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The amendment affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial asset not excluded from the scope that have the contractual right to receive cash. The Update replaces the incurred loss impairment methodology, which generally only considered past events and current conditions, with a methodology that reflects the expected credit losses and required consideration of a broader range of reasonable and supportable information to estimate all expected credit losses. The Update additionally addresses purchased assets and introduces the purchased financial asset with a more-than-insignificant amount of credit deterioration since origination ("PCD"). The accounting for these PCD assets is similar to the existing accounting guidance of FASB Accounting Standards Codification ("ASC") 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, for purchased credit impaired ("PCI") assets, except the subsequent improvements in estimated cash flows will be immediately recognized into income, similar to the immediate recognition of subsequent deteriorations in cash flows. Current guidance only allows for the prospective recognition of these cash flow improvements. Because the terminology has been changed to a "more-than-insignificant" amount of credit deterioration, the presumption is that more assets might qualify for this accounting under the Update than those under current guidance. For public business entities, the Update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years with early adoption permitted for fiscal years after December 15, 2018. An entity will apply the amendments through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. A prospective transition approach is required for debt securities. An entity that has previously applied the guidance of ASC 310-30 will prospectively apply the guidance in this Update for PCD assets. A prospective transition approach should be used for PCD assets where upon adoption, the amortized cost basis should be adjusted to reflect the addition of the allowance for credit losses. The Company is anticipating adopting the Update on January 1, 2020. Upon adoption, the Company expects a change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The new guidance may result in an increase in the allowance for loan losses which will also reflect the new requirement to include the nonaccretable principal differences on purchased credit impaired loans; however, the Company is still in the process of determining the magnitude of the increase and its impact on the Consolidated Financial Statements. In addition, the current accounting policy and procedures for other-than-temporary impairment on investment securities available for sale will be replaced with an allowance approach. The Company is expecting to begin developing and implementing processes and procedures during the next two years to ensure it is fully compliant with the amendments at the adoption date. FASB ASU 2016-15 , Statement of Cash Flows (Topic 213) : Classification of Certain Cash Receipts and Cash Payments, was issued in August 2016. The Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and must be applied using a retrospective transitional method to each period presented. The Company has evaluated the new guidance and does not anticipate that its adoption of this Update on January 1, 2018 will have a significant impact on its Consolidated Financial Statements. FASB ASU 2017-03 , Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update), was issued in January 2017. The SEC staff view is that a registrant should evaluate ASC updates that have not yet been adopted to determine the appropriate financial disclosures about the potential material effects of the updates on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact of an update, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact. The staff expects the additional qualitative disclosures to include a description of the effect of the accounting policies expected to be applied compared to current accounting policies. Also, the registrant should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. The amendments specifically addressed recent ASC amendments to Topic 326, Financial Instruments - Credit Losses; Topic 842, Leases; and Topic 606, Revenue from Contracts with Customers; although, the amendments apply to any subsequent amendments to guidance in the ASC. The Company adopted the amendments in this Update during the fourth quarter of 2016 and appropriate disclosures have been included in this Note for each recently issued accounting standard. FASB ASU 2017-04 , Goodwill (Topic 350), was issued in January 2017 and eliminates Step 2 from the goodwill impairment test. Under the amendments, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The loss recognized, however, should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The Update is effective for annual periods or any interim goodwill impairment tests beginning after December 15, 2019 using a prospective transition method and early adoption is permitted. The Company does not expect the Update will have a material impact on its Consolidated Financial Statements.

Business Combination (Tables)

Business Combination (Tables)	12 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Unaudited pro forma information	The following table presents certain pro forma information, for illustrative purposes only, for the year ended December 31, 2014 as if the Washington Banking Merger had occurred on January 1, 2014. 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, 2014. 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 expected 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. Year Ended December 31, 2014 (In thousands, except per share amounts) Net interest income $ 144,470 Net income $ 35,758 Basic earnings per common share $ 1.19 Diluted earnings per common share $ 1.18

Investment Securities (Tables)

Investment Securities (Tables)	12 Months Ended
	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Reconciliation of available for sale securities	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, 2016 U.S. Treasury and U.S. Government-sponsored agencies $ 1,563 $ 6 $ — $ 1,569 Municipal securities 237,305 2,427 (2,476 ) 237,256 Mortgage-backed securities and collateralized mortgage obligations (1) : Residential 310,391 985 (2,200 ) 309,176 Commercial 211,259 599 (3,540 ) 208,318 Collateralized loan obligations 10,505 4 (31 ) 10,478 Corporate obligations 16,611 104 (9 ) 16,706 Other securities 11,005 156 (19 ) 11,142 Total $ 798,639 $ 4,281 $ (8,275 ) $ 794,645 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 (1) : Residential 351,606 1,749 (1,331 ) 352,024 Commercial 179,797 343 (1,129 ) 179,011 Collateralized loan obligations 15,251 — (154 ) 15,097 Corporate obligations 9,252 — (139 ) 9,113 Other securities 45 9 — 54 Total $ 807,921 $ 7,072 $ (3,124 ) $ 811,869 (1) U.S. Government-sponsored agencies.
Schedule of securities available for sale	The amortized cost and fair value of securities at December 31, 2016 , 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 $ 6,596 $ 6,666 Due after one year through five years 123,618 124,240 Due after five years through ten years 262,644 260,514 Due after ten years 405,736 403,102 Investment securities with no stated maturities 45 123 Total $ 798,639 $ 794,645
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, 2016 and December 31, 2015 : 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, 2016 U.S. Treasury and U.S. Government-sponsored agencies $ — $ — $ — $ — $ — $ — Municipal securities 90,188 (2,476 ) — — 90,188 (2,476 ) Mortgage-backed securities and collateralized mortgage obligations (1) : Residential 181,562 (2,148 ) 10,854 (52 ) 192,416 (2,200 ) Commercial 157,055 (3,446 ) 12,597 (94 ) 169,652 (3,540 ) Collateralized loan obligations 2,976 (1 ) 2,969 (30 ) 5,945 (31 ) Corporate obligations 4,032 (9 ) — — 4,032 (9 ) Other securities 6,998 (19 ) — — 6,998 (19 ) Total $ 442,811 $ (8,099 ) $ 26,420 $ (176 ) $ 469,231 $ (8,275 ) 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 (1) : Residential 173,959 (870 ) 39,891 (461 ) 213,850 (1,331 ) Commercial 79,103 (1,117 ) 4,047 (12 ) 83,150 (1,129 ) Collateralized loan obligations 15,097 (154 ) — — 15,097 (154 ) Corporate obligations 8,134 (110 ) 979 (29 ) 9,113 (139 ) Total $ 328,603 $ (2,611 ) $ 46,985 $ (513 ) $ 375,588 $ (3,124 ) (1) U.S. Government-sponsored agencies.
Schedule of other-than-temporary impairment losses investment securities	The following table summarizes activity for the year ended December 31, 2014 related to the amount of other-than-temporary impairments on held to maturity securities. There were no initial or subsequent impairments recorded during the years ended December 31, 2016 and 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, 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, 2016, 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 securities that are pledged as collateral for the following obligations at December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 Amortized Cost Fair Value Amortized Cost Fair Value (In thousands) Washington and Oregon state to secure public deposits $ 214,834 $ 215,247 $ 212,325 $ 215,284 Federal Reserve Bank of San Francisco and FHLB to secure borrowing arrangements — — 506 506 Repurchase agreements 29,481 29,294 28,500 28,503 Other securities pledged 3,557 3,546 2,125 2,160 Total $ 247,872 $ 248,087 $ 243,456 $ 246,453

Loans Receivable (Tables)

Loans Receivable (Tables)	12 Months Ended
	Dec. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]
Schedule of loans receivable	Loans receivable at December 31, 2016 and December 31, 2015 consisted of the following portfolio segments and classes: December 31, 2016 December 31, 2015 (In thousands) Commercial business: Commercial and industrial $ 637,773 $ 596,726 Owner-occupied commercial real estate 558,035 572,609 Non-owner occupied commercial real estate 880,880 753,986 Total commercial business 2,076,688 1,923,321 One-to-four family residential 77,391 72,548 Real estate construction and land development: One-to-four family residential 50,414 51,752 Five or more family residential and commercial properties 108,764 55,325 Total real estate construction and land development 159,178 107,077 Consumer 325,140 298,167 Gross loans receivable 2,638,397 2,401,113 Net deferred loan costs (fees) 2,352 929 Loans receivable, net 2,640,749 2,402,042 Allowance for loan losses (31,083 ) (29,746 ) Total loans receivable, net of allowance for loan losses $ 2,609,666 $ 2,372,296
Loans receivable by credit quality indicator	The following tables present the balance of the loans receivable by credit quality indicator as of December 31, 2016 and December 31, 2015 . December 31, 2016 Pass OAEM Substandard Doubtful Total (In thousands) Commercial business: Commercial and industrial $ 601,273 $ 5,048 $ 31,452 $ — $ 637,773 Owner-occupied commercial real estate 532,585 4,437 21,013 — 558,035 Non-owner occupied commercial real estate 841,383 14,573 24,924 — 880,880 Total commercial business 1,975,241 24,058 77,389 — 2,076,688 One-to-four family residential 76,020 — 1,371 — 77,391 Real estate construction and land development: One-to-four family residential 44,752 500 5,162 — 50,414 Five or more family residential and commercial properties 105,723 1,150 1,891 — 108,764 Total real estate construction and land development 150,475 1,650 7,053 — 159,178 Consumer 320,140 — 5,000 — 325,140 Gross loans receivable $ 2,521,876 $ 25,708 $ 90,813 $ — $ 2,638,397 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 544,429 11,662 16,260 258 572,609 Non-owner occupied commercial real estate 699,759 23,447 30,780 — 753,986 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
Schedule of nonaccrual loans	Nonaccrual loans, segregated by segments and classes of loans, were as follows as of December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 (In thousands) Commercial business: Commercial and industrial $ 3,531 $ 5,095 Owner-occupied commercial real estate 3,728 2,027 Non-owner occupied commercial real estate 1,321 — Total commercial business 8,580 7,122 One-to-four family residential 94 38 Real estate construction and land development: One-to-four family residential 2,008 2,414 Total real estate construction and land development 2,008 2,414 Consumer 227 94 Nonaccrual loans $ 10,909 $ 9,668
Past due financing receivables	The balances of past due loans, segregated by segments and classes of loans, as of December 31, 2016 and December 31, 2015 were as follows: December 31, 2016 30-89 Days 90 Days or Greater Total Past Due Current Total (In thousands) Commercial business: Commercial and industrial $ 2,687 $ 1,733 $ 4,420 $ 633,353 $ 637,773 Owner-occupied commercial real estate 1,807 2,915 4,722 553,313 558,035 Non-owner occupied commercial real estate 733 — 733 880,147 880,880 Total commercial business 5,227 4,648 9,875 2,066,813 2,076,688 One-to-four family residential 523 — 523 76,868 77,391 Real estate construction and land development: One-to-four family residential 90 2,008 2,098 48,316 50,414 Five or more family residential and commercial properties — 377 377 108,387 108,764 Total real estate construction and land development 90 2,385 2,475 156,703 159,178 Consumer 2,292 105 2,397 322,743 325,140 Gross loans receivable $ 8,132 $ 7,138 $ 15,270 $ 2,623,127 $ 2,638,397 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 2,240 2,609 4,849 567,760 572,609 Non-owner occupied commercial real estate 2,177 184 2,361 751,625 753,986 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
Schedule of impaired loans, including restructured	Impaired loans include nonaccrual loans and performing TDR loans. The balances of impaired loans as of December 31, 2016 and December 31, 2015 are set forth in the following tables. December 31, 2016 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 $ 1,739 $ 10,636 $ 12,375 $ 13,249 $ 1,199 Owner-occupied commercial real estate 1,150 3,574 4,724 5,107 511 Non-owner occupied commercial real estate 4,905 6,413 11,318 11,386 797 Total commercial business 7,794 20,623 28,417 29,742 2,507 One-to-four family residential — 321 321 325 97 Real estate construction and land development: One-to-four family residential 2,243 828 3,071 3,755 6 Five or more family residential and commercial properties — 1,079 1,079 1,079 60 Total real estate construction and land development 2,243 1,907 4,150 4,834 66 Consumer 48 262 310 325 64 Total $ 10,085 $ 23,113 $ 33,198 $ 35,226 $ 2,734 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
Schedule of average recorded investment impaired loans including restructuring loans	The average recorded investment of impaired loans for the years ended December 31, 2016 , 2015 and 2014 are set forth in the following table. Year Ended December 31, 2016 2015 2014 (In thousands) Commercial business: Commercial and industrial $ 10,207 $ 9,781 $ 14,367 Owner-occupied commercial real estate 4,540 4,346 3,582 Non-owner occupied commercial real estate 11,709 9,257 7,915 Total commercial business 26,456 23,384 25,864 One-to-four family residential 279 257 604 Real estate construction and land development: One-to-four family residential 3,305 3,841 5,452 Five or more family residential and commercial properties 1,656 2,008 2,154 Total real estate construction and land development 4,961 5,849 7,606 Consumer 645 171 786 Total $ 32,341 $ 29,661 $ 34,860
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, 2016 and December 31, 2015 were as follows: December 31, 2016 December 31, 2015 Performing TDR loans Nonaccrual TDR loans Performing TDR loans Nonaccrual (In thousands) TDR loans $ 22,288 $ 6,900 $ 20,695 $ 6,301 Allowance for loan losses on TDR loans 1,965 437 2,069 679
Troubled debt restructurings on financing receivables	Loans that were modified as TDR loans during the years ended December 31, 2016 , 2015 and 2014 are set forth in the following table: Year Ended December 31, 2016 2015 2014 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 19 $ 7,398 25 $ 6,312 33 $ 8,166 Owner-occupied commercial real estate 2 569 4 1,311 3 1,063 Non-owner occupied commercial real estate 2 2,121 4 7,496 3 6,548 Total commercial business 23 10,088 33 15,119 39 15,777 Real estate construction and land development: One-to-four family residential 5 2,206 4 2,291 10 3,553 Five or more family residential and commercial properties 1 1,078 — — — — Total real estate construction and land development 6 3,284 4 2,291 10 3,553 Consumer 6 66 1 37 2 101 Total modified loans 35 $ 13,438 38 $ 17,447 51 $ 19,431 (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, 2016 , 2015 and 2014 . (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 years ended December 31, 2016 and 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 .
Troubled debt restructuring loans, subsequently defaulted	The loans modified during the previous twelve months ended December 31, 2016 , 2015 and 2014 that subsequently defaulted during the years ended December 31, 2016 , 2015 and 2014 are included in the following table: Year Ended December 31, 2016 2015 2014 Number of Contracts Outstanding Principal Balance Number of Outstanding Number of Outstanding (Dollars in thousands) Commercial business: Commercial and industrial — $ — 2 $ 1,755 — $ — Owner-occupied commercial real estate 1 488 — — — — Non-owner occupied commercial real estate — — — — 1 75 Total commercial business 1 488 2 1755 1 75 Real estate construction and land development: One-to-four family residential 2 1,143 — — — — Total real estate construction and land development 2 1,143 — — — — Total 3 $ 1,631 2 $ 1,755 1 $ 75
Purchased impaired loans	The following table reflects the outstanding principal balance and recorded investment at December 31, 2016 and December 31, 2015 of the PCI loans: December 31, 2016 December 31, 2015 Outstanding Principal Recorded Investment Outstanding Principal Recorded Investment (In thousands) Commercial business: Commercial and industrial $ 13,067 $ 9,317 $ 20,110 $ 16,986 Owner-occupied commercial real estate 17,639 15,973 24,730 22,313 Non-owner occupied commercial real estate 25,037 23,360 30,685 27,774 Total commercial business 55,743 48,650 75,525 67,073 One-to-four family residential 5,120 4,905 5,707 5,392 Real estate construction and land development: One-to-four family residential 2,958 2,123 6,904 4,121 Five or more family residential and commercial properties 2,614 2,488 3,071 3,207 Total real estate construction and land development 5,572 4,611 9,975 7,328 Consumer 5,296 6,282 6,720 7,126 Gross PCI loans $ 71,731 $ 64,448 $ 97,927 $ 86,919
Schedule of impaired purchased loans accretable yield	The following table summarizes the accretable yield on the PCI loans for the years ended December 31, 2016 , 2015 and 2014. Year Ended December 31, 2016 2015 2014 (In thousands) Balance at the beginning of the year $ 17,592 $ 21,092 $ 17,249 Accretion (4,962 ) (6,993 ) (8,054 ) Disposal and other (3,329 ) (3,111 ) (4,981 ) Change in accretable yield (1) 4,559 6,604 16,878 Balance at the end of the year $ 13,860 $ 17,592 $ 21,092 (1) Includes accretable yield of PCI loans at acquisition date for the year ended December 31, 2014.
Activity in related party loans	Activity in related party loans for the years ended December 31, 2016 , 2015 and 2014 was as follows: Year Ended or As of December 31, (in thousands) Balance outstanding at December 31, 2013 $ 7,474 Principal additions 23 Elimination 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 Principal additions 738 Principal reductions (1,596 ) Balance outstanding at December 31, 2016 $ 19,917
Mortgage banking activities	The following table presents information concerning the origination and sale of the Bank's one-to-four family residential loans and the gains from the sale of loans as a result of our mortgage banking activities. Year Ended December 31, 2016 2015 2014 (In thousands) One-to-four family residential loans: Originated (1) $ 178,169 $ 164,974 $ 75,500 Sold 141,127 132,365 55,997 Gains on sales of loans, net (2) 3,723 3,150 1,080 (1) Includes loans originated for sale in the secondary market or for the Bank's loan portfolio. (2) Excludes net gains on sales of SBA and other loans.
Contractual amounts of commitments to sell and fund with off-balance sheet risk	The contractual amounts of commitments to sell and fund with off-balance sheet risk at year-end were as follows: December 31, 2016 December 31, 2015 (In thousands) Commitments to sell mortgage loans $ 18,166 $ 11,621 Commitments to fund mortgage loans (at interest rates approximating market rates) for portfolio or for sale: Fixed rate $ 19,301 $ 11,884 Variable or adjustable rate 4,189 4,857 Total commitments to fund mortgage loans $ 23,490 $ 16,741
Details of SBNA loans serviced	Details of certain SBA loans serviced are as follows: December 31, 2016 December 31, 2015 (In thousands) SBA loans serviced for others with participating interest, gross loan balance $ 48,359 $ 43,771 SBA loans serviced for others with participating interest, participation balance owned by Bank (1) 11,218 10,076 (1) 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, 2016
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, 2016 , 2015 and 2014 is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at the beginning of the year $ 29,746 $ 27,729 $ 28,824 Charge-offs (6,085 ) (3,482 ) (6,597 ) Recoveries of loans previously charged-off 2,491 1,127 908 Provision for loan losses 4,931 4,372 4,594 Balance at the end of the year $ 31,083 $ 29,746 $ 27,729 The following table details the activity in the allowance for loan losses disaggregated by segment and class for the year ended December 31, 2016 : Balance at Beginning of Year Charge-offs Recoveries Provision for Loan Losses Balance at End of Year (In thousands) Year Ended December 31, 2016 Commercial business: Commercial and industrial $ 9,972 $ (3,265 ) $ 1,844 $ 2,417 $ 10,968 Owner-occupied commercial real estate 4,370 (538 ) — (171 ) 3,661 Non-owner occupied commercial real estate 7,722 (350 ) — 381 7,753 Total commercial business 22,064 (4,153 ) 1,844 2,627 22,382 One-to-four family residential 1,157 — 2 (144 ) 1,015 Real estate construction and land development: One-to-four family residential 1,058 (100 ) 83 (244 ) 797 Five or more family residential and commercial properties 813 (54 ) — 600 1,359 Total real estate construction and land development 1,871 (154 ) 83 356 2,156 Consumer 4,309 (1,778 ) 562 1,931 5,024 Unallocated 345 — — 161 506 Total $ 29,746 $ (6,085 ) $ 2,491 $ 4,931 $ 31,083 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 ) — 320 4,032 Non-owner occupied commercial real estate 5,326 (411 ) — 686 5,601 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 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 4,032 — — 338 4,370 Non-owner occupied commercial real estate 5,601 (188 ) — 2,309 7,722 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
Schedule of loan receivables on the basis of impairment method	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 1,662 1,899 4,370 Non-owner occupied commercial real estate 943 4,336 2,443 7,722 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 4,295 546,001 22,313 572,609 Non-owner occupied commercial real estate 10,530 715,682 27,774 753,986 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 allowance for loan losses disaggregated on the basis of the Company's impairment method as of December 31, 2016 . Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Total Allowance for Loan Losses (In thousands) Commercial business: Commercial and industrial $ 1,199 $ 8,048 $ 1,721 $ 10,968 Owner-occupied commercial real estate 511 1,834 1,316 3,661 Non-owner occupied commercial real estate 797 5,142 1,814 7,753 Total commercial business 2,507 15,024 4,851 22,382 One-to-four family residential 97 643 275 1,015 Real estate construction and land development: One-to-four family residential 6 538 253 797 Five or more family residential and commercial properties 60 1,168 131 1,359 Total real estate construction and land development 66 1,706 384 2,156 Consumer 64 3,912 1,048 5,024 Unallocated — 506 — 506 Total $ 2,734 $ 21,791 $ 6,558 $ 31,083 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, 2016 : Loans Individually Evaluated for Impairment Loans Collectively Evaluated for Impairment PCI Loans Gross Loans Receivable (In thousands) Commercial business: Commercial and industrial $ 12,375 $ 616,081 $ 9,317 $ 637,773 Owner-occupied commercial real estate 4,724 537,338 15,973 558,035 Non-owner occupied commercial real estate 11,318 846,202 23,360 880,880 Total commercial business 28,417 1,999,621 48,650 2,076,688 One-to-four family residential 321 72,165 4,905 77,391 Real estate construction and land development: One-to-four family residential 3,071 45,220 2,123 50,414 Five or more family residential and commercial properties 1,079 105,197 2,488 108,764 Total real estate construction and land development 4,150 150,417 4,611 159,178 Consumer 310 318,548 6,282 325,140 Total $ 33,198 $ 2,540,751 $ 64,448 $ 2,638,397

FDIC Indemnification Asset (Tab

FDIC Indemnification Asset (Tables)	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
Schedule of FDIC indemnification asset	The following table provides changes in the FDIC indemnification asset during the years ended December 31, 2015 and 2014 . The year ended December 31, 2016 is not included because of the above-mentioned termination. Year Ended December 31, 2015 2014 (In thousands) Balance at the beginning of the year $ 1,116 $ 4,382 Additions as a result of the Washington Banking Merger — 7,174 Cash payments received or receivable from the FDIC (231 ) (7,897 ) FDIC share of additional estimated gains (352 ) (1,072 ) Net amortization (145 ) (1,471 ) Change due to termination of FDIC shared-loss agreements (388 ) — Balance at the end of the year $ — $ 1,116

Other Real Estate Owned (Tables

Other Real Estate Owned (Tables)	12 Months Ended
	Dec. 31, 2016
Banking and Thrift [Abstract]
Changes in other real estate owned	Changes in other real estate owned during the years ended December 31, 2016 , 2015 and 2014 were as follows: Year Ended December 31, 2016 2015 2014 (In thousands Balance at the beginning of the year $ 2,019 $ 3,355 $ 4,559 Additions 1,431 2,845 1,566 Additions from acquisitions — — 7,121 Proceeds from dispositions (2,486 ) (3,555 ) (9,914 ) Gain (loss) on sales, net 173 (97 ) 23 Valuation adjustment (383 ) (529 ) — Balance at the end of the year $ 754 $ 2,019 $ 3,355

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of premises and equipment	A summary of premises and equipment is as follows: December 31, 2016 December 31, 2015 (In thousands) Land $ 22,677 $ 21,695 Buildings and building improvements 52,432 49,630 Furniture, fixtures and equipment 18,723 17,234 Total premises and equipment 93,832 88,559 Accumulated depreciation 29,921 26,668 Premises and equipment, net $ 63,911 $ 61,891

Goodwill and Other Intangible42

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2016
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: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at the beginning of the year $ 8,789 $ 10,889 $ 1,615 Additions as a result of acquisitions — — 11,194 Less: Amortization 1,415 2,100 1,920 Balance at the end of the year $ 7,374 $ 8,789 $ 10,889
Estimated aggregate amortization expense for future years	The estimated aggregate amortization expense related to these intangible assets for future years is as follows: Year Ending December 31, (In thousands) 2017 $ 1,285 2018 1,122 2019 1,043 2020 989 2021 938 Thereafter 1,997 $ 7,374

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2016
Deposits [Abstract]
Schedule of deposits	Deposits consisted of the following: December 31, 2016 December 31, 2015 Amount Percent Amount Percent (Dollars in thousands) Noninterest demand deposits $ 882,091 27.3 % $ 770,927 24.8 % NOW accounts 963,821 29.8 917,859 29.5 Money market accounts 523,875 16.2 545,342 17.6 Savings accounts 502,460 15.6 453,826 14.6 Total non-maturity deposits 2,872,247 88.9 2,687,954 86.5 Certificate of deposit accounts 357,401 11.1 420,333 13.5 Total deposits $ 3,229,648 100.0 % $ 3,108,287 100.0 %
Schedule of interest expense, by category	Interest expense, by category, is as follows: Year Ended December 31, 2016 2015 2014 (In thousands) NOW accounts $ 1,569 $ 1,476 $ 1,011 Money market accounts 749 922 896 Savings accounts 756 445 252 Certificate of deposit accounts 1,936 2,386 2,991 $ 5,010 $ 5,229 $ 5,150
Schedule of maturities of certificates of deposit	Scheduled maturities of certificates of deposit for future years are as follows: Year Ending December 31, (In thousands) 2017 $ 235,173 2018 66,431 2019 28,740 2020 15,979 2021 11,029 Thereafter 49 $ 357,401

Other Borrowings (Tables)

Other Borrowings (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of FHLB advances	The following table sets forth the details of FHLB advances during and as of the years ended December 31, 2016 and December 31, 2015 : December 31, 2016 December 31, 2015 (In thousands) FHLB Advances: Balance at end of year $ 79,600 $ — Average balance during the year $ 13,349 $ 1,777 Maximum month-end balance during the year $ 79,600 $ 48,200 Weighted average rate during the year 0.55 % 0.34 % Weighted average rate at end of year 0.81 % — %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
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: Year Ending December 31, (In thousands) 2017 $ 3,409 2018 3,010 2019 2,538 2020 2,175 2021 1,380 Thereafter 2,143 $ 14,655
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, 2016 December 31, 2015 (In thousands) Commercial business: Commercial and industrial $ 368,308 $ 350,227 Owner-occupied commercial real estate 3,443 2,220 Non-owner occupied commercial real estate 8,732 11,168 Total commercial business 380,483 363,615 One-to-four family residential — — Real estate construction and land development: One-to-four family residential 23,004 21,778 Five or more family residential and commercial properties 78,121 52,772 Total real estate construction and land development 101,125 74,550 Consumer 144,405 134,313 Total outstanding commitments $ 626,013 $ 572,478

Derivative Financial Instrume46

Derivative Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2016
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, 2016 and December 31, 2015 are presented in the following table. December 31, 2016 December 31, 2015 Notional Amounts Estimated Fair Value Notional Amounts Estimated Fair Value (In thousands) Non-hedging interest rate derivatives Interest rate swaps with customer (1) $ 102,709 $ 1,099 $ 20,750 $ 543 Interest rate swap with third party (1) 102,709 (1,099 ) 20,750 (543 ) (1) The estimated fair value of the derivative included in prepaid and other assets on the Consolidated Statement of Condition was $2.8 million and $543,000 as of December 31, 2016 and 2015 , respectively. The estimated fair value of the derivative classified included in accrued expenses and other liabilities on the Consolidated Statements of Financial Condition was $2.8 million and $543,000 as of December 31, 2016 and 2015 , respectively.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2016
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, 2016 , 2015 and 2014 : Year Ended December 31, 2016 2015 2014 (Dollars in thousands) Net income: Net income $ 38,918 $ 37,489 $ 21,014 Less: Dividends and undistributed earnings allocated to participating securities (358 ) (328 ) (163 ) Net income allocated to common shareholders $ 38,560 $ 37,161 $ 20,851 Basic: Weighted average common shares outstanding 29,963,365 30,057,558 25,641,229 Less: Restricted stock awards (285,063 ) (267,943 ) (210,690 ) Total basic weighted average common shares outstanding 29,678,302 29,789,615 25,430,539 Diluted: Basic weighted average common shares outstanding 29,678,302 29,789,615 25,430,539 Incremental shares from stock options 13,851 22,725 46,750 Total diluted weighted average common shares outstanding 29,692,153 29,812,340 25,477,289
Schedule of dividends activity	The following table summarizes the dividend activity for the years ended December 31, 2016 , 2015 and 2014 . Declared Cash Dividend per Share Record Date Paid Date 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 * January 27, 2016 $0.11 February 10, 2016 February 24, 2016 April 20, 2016 $0.12 May 5, 2016 May 19, 2016 July 20, 2016 $0.12 August 4, 2016 August 18, 2016 October 26, 2016 $0.12 November 8, 2016 November 22, 2016 October 26, 2016 $0.25 November 8, 2016 November 22, 2016 * * Denotes a special dividend.
Schedule of repurchased shares	The following table provides total repurchased shares and average share prices under the applicable plans for the periods indicated: Year Ended December 31, 2016 2015 2014 Plan Total (1) Tenth Plan Repurchased shares — — 108,075 704,975 Stock repurchase average share price $ — $ — $ 16.88 $ 15.85 Eleventh Plan Repurchased shares 138,000 441,966 — 579,966 Stock repurchase average share price $ 17.16 $ 16.64 $ — $ 16.76

Accumulated Other Comprehensi48

Accumulated Other Comprehensive Income (Loss) (Tables)	12 Months Ended
	Dec. 31, 2016
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, 2016 , 2015 and 2014 are as follows: December 31, 2016 (1) (In thousands) Balance of AOCI at the beginning of the year $ 2,559 Other comprehensive loss before reclassification (4,311 ) Amounts reclassified from AOCI for gain on sale of investment securities included in net income (854 ) Net current period other comprehensive loss (5,165 ) Balance of AOCI at the end of the year $ (2,606 ) (1) All amounts are due to the changes in fair value of available for sale securities and are net of tax. 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.

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2016
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, 2016 and December 31, 2015 . December 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 1,569 $ — $ 1,569 $ — Municipal securities 237,256 — 237,256 — Mortgage backed securities and collateralized mortgage obligations: Residential 309,176 — 309,176 — Commercial 208,318 — 208,318 — Collateralized loan obligations 10,478 — 10,478 — Corporate obligations 16,706 — 16,706 — Other securities 11,142 123 11,019 — Total investment securities available for sale $ 794,645 $ 123 $ 794,522 $ — Derivative assets - interest rate swaps $ 2,804 $ — $ 2,804 $ — Liabilities Derivative liabilities - interest rate swaps $ 2,804 $ — $ 2,804 $ — December 31, 2015 Total Level 1 Level 2 Level 3 (In thousands) Assets Investment securities available for sale: U.S. Treasury and U.S. Government-sponsored agencies $ 35,577 $ 15,676 $ 19,901 $ — Municipal securities 220,993 — 220,993 — Mortgage backed securities and collateralized mortgage obligations: Residential 352,024 — 352,024 — Commercial 179,011 — 179,011 — Collateralized loan obligations 15,097 — 15,097 — Corporate obligations 9,113 — 9,113 — Other securities 54 54 — — Total investment securities available for sale $ 811,869 $ 15,730 $ 796,139 $ — Derivative assets - interest rate swaps $ 543 $ — $ 543 $ — Liabilities Derivative liabilities - interest rate swaps $ 543 $ — $ 543 $ —
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, 2016 and December 31, 2015 and the net losses (gains) recorded in earnings during years ended December 31, 2016 and 2015 . Basis (1) Fair Value at December 31, 2016 Total Level 1 Level 2 Level 3 Net Losses (Gains) Recorded in Earnings During the Year Ended December 31, 2016 (In thousands) Impaired loans: Commercial business: Commercial and industrial $ 205 $ 200 $ — $ — $ 200 $ 5 Owner-occupied commercial real estate 780 603 — — 603 (145 ) Total commercial business 985 803 — — 803 (140 ) Real estate construction and land development: One-to-four family residential 828 822 — — 822 (23 ) Total real estate construction and land development 828 822 — — 822 (23 ) Consumer 16 9 — — 9 6 Total assets measured $ 1,829 $ 1,634 $ — $ — $ 1,634 $ (157 ) (1) Basis represents the unpaid principal balance of impaired loans. 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: Total assets measured at fair value on a nonrecurring basis (2) $ 1,753 $ 1,719 $ — $ — $ 1,719 $ 35 (1) Basis represents the unpaid principal balance of impaired loans and amortized cost of investment securities held to maturity. (2) The only assets measured at December 31, 2015 were one-to-four family residential real estate construction and land development impaired loans.
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, 2016 and December 31, 2015 . December 31, 2016 Fair Value Valuation Technique(s) Unobservable Input(s) Range of Inputs; Weighted Average (Dollars in thousands) Impaired loans measured at fair value $ 1,634 Market approach Adjustment for differences between the comparable sales (23.8%) - 63.9%; 20.4% 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%
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, 2016 Carrying Value Fair Value Fair Value Measurements Using: Level 1 Level 2 Level 3 (In thousands) Financial Assets: Cash and cash equivalents $ 103,745 $ 103,745 $ 103,745 $ — $ — Investment securities available for sale 794,645 794,645 123 794,522 — Federal Home Loan Bank stock 7,564 N/A N/A N/A N/A Loans held for sale 11,662 11,988 — 11,988 — Total loans receivable, net of allowance for loan losses 2,609,666 2,675,811 — — 2,675,811 Accrued interest receivable 10,925 10,925 3 3,472 7,450 Derivative assets - interest rate swaps 2,804 2,804 — 2,804 — Financial Liabilities: Deposits: Noninterest deposits, NOW accounts, money market accounts and savings accounts $ 2,872,247 $ 2,872,247 $ 2,872,247 $ — $ — Certificate of deposit accounts 357,401 357,536 — 357,536 — Total deposits $ 3,229,648 $ 3,229,783 $ 2,872,247 $ 357,536 $ — Federal Home Loan Bank advances $ 79,600 $ 79,600 $ — $ 79,600 $ — Securities sold under agreement to repurchase 22,104 22,104 22,104 — — Junior subordinated debentures 19,717 15,000 — — 15,000 Accrued interest payable 215 215 44 142 29 Derivative liabilities - interest rate swaps 2,804 2,804 — 2,804 — 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 15,730 796,139 — 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 —

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	The following table summarizes the stock option activity for the years ended December 31, 2016 , 2015 and 2014 : Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (In thousands) 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 Exercised (61,529 ) 12.15 Forfeited or expired (15,470 ) 16.27 Outstanding at December 31, 2015 79,408 14.19 Exercised (37,713 ) 14.31 Forfeited or expired (4,200 ) 16.80 Outstanding, vested and expected to vest and exercisable at December 31, 2016 37,495 $ 13.77 2.81 $ 449 (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 Combination 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 stock award activity	The following table summarize the restricted and unrestricted stock award activity for the years ended September 30, 2016 , 2015 and 2014 : Shares Weighted-Average Grant Date Fair Value 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 Granted 121,039 17.60 Vested (112,516 ) 15.62 Forfeited (11,748 ) 16.62 Nonvested at December 31, 2016 261,296 $ 16.80

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of income tax expense	Income tax expense for the years ended December 31, 2016 , 2015 and 2014 consisted of the following: Year Ended December 31, 2016 2015 2014 (In thousands) Current tax expense $ 6,885 $ 9,760 $ 9,992 Deferred tax expense (benefit) 6,918 4,058 (3,087 ) Income tax expense $ 13,803 $ 13,818 $ 6,905
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: Year Ended December 31, 2016 2015 2014 (In thousands) Income tax expense at Federal statutory rate $ 18,452 $ 17,957 $ 9,772 Tax-exempt instruments (3,198 ) (2,482 ) (1,547 ) Non-deductible acquisition costs — — 373 Federal tax credits and other benefits (1) (931 ) (880 ) (830 ) Effects of BOLI (511 ) (474 ) (159 ) Tax resolutions (2) — (300 ) (728 ) Other, net (9 ) (3 ) 24 Income tax expense $ 13,803 $ 13,818 $ 6,905 (1) Federal tax credits are provided for under the NMTC program and LIHTC programs as described in Note (15) Commitments and Contingencies. 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. Other benefits include the proportional amortization of the LIHTC of $523,000 , $209,000 and $53,000 , for the years ended December 31, 2016, 2015 and 2014, respectively. (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, 2016 December 31, 2015 (In thousands) Deferred tax assets: Allowance for loan losses $ 4,739 $ 6,317 Accrued compensation 2,685 1,011 Stock compensation 910 890 Net unrealized losses charged to other comprehensive income on securities 1,388 — Market discount on purchased loans 10,506 15,562 Foregone interest on nonaccrual loans 1,536 2,665 Net operating loss carryforward acquired from NCB 483 518 Difference in amounts reflected in financial statements and income tax basis of certain liabilities assumed in business combinations 37 89 Other deferred tax assets 1,446 1,503 Total deferred tax assets 23,730 28,555 Deferred tax liabilities: Deferred loan fees, net (3,736 ) (3,489 ) Premises and equipment (1,660 ) (1,853 ) FHLB stock (926 ) (926 ) Net unrealized gains charged to other comprehensive income on securities — (1,389 ) Goodwill and other intangible assets (740 ) (1,021 ) Federal tax credits (1,314 ) (876 ) Junior subordinated debentures (2,122 ) (2,225 ) Other deferred tax liabilities (1,223 ) (627 ) Total deferred tax liabilities (11,721 ) (12,406 ) Deferred income tax asset, net $ 12,009 $ 16,149

Regulatory Capital Requiremen52

Regulatory Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2016
Regulatory Capital Requirements [Abstract]
Minimum capital requirements to maintain leverage ratio	Minimum Well- Actual $ % $ % $ % (Dollars in thousands) As of December 31, 2016: The Company consolidated Common equity Tier 1 capital to risk-weighted assets $ 142,688 4.5 % N/A N/A $ 362,350 11.4 % Tier 1 leverage capital to average assets 148,144 4.0 N/A N/A 381,989 10.3 Tier 1 capital to risk-weighted assets 190,250 6.0 N/A N/A 381,989 12.0 Total capital to risk-weighted assets 253,667 8.0 N/A N/A 413,320 13.0 Heritage Bank Common equity Tier 1 capital to risk-weighted assets 142,573 4.5 205,938 6.5 369,915 11.7 Tier 1 leverage capital to average assets 148,024 4.0 185,030 5.0 369,915 10.0 Tier 1 capital to risk-weighted assets 190,097 6.0 253,462 8.0 369,915 11.7 Total capital to risk-weighted assets 253,462 8.0 316,828 10.0 401,168 12.7 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

Heritage Financial Corporatio53

Heritage Financial Corporation (Parent Company Only) (Tables)	12 Months Ended
	Dec. 31, 2016
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, 2016 December 31, 2015 (In thousands) ASSETS Cash and interest earning deposits $ 10,568 $ 6,722 Investment in subsidiary bank 489,388 482,749 Other assets 2,601 1,185 Total assets $ 502,557 $ 490,656 LIABILITIES AND STOCKHOLDERS’ EQUITY Junior subordinated debentures $ 19,717 $ 19,424 Other liabilities 1,077 1,262 Total stockholders’ equity 481,763 469,970 Total liabilities and stockholders’ equity $ 502,557 $ 490,656
Condensed Statements of Income	HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Income Year Ended December 31, 2016 2015 2014 (In thousands) INTEREST INCOME: Interest and dividends on interest earning deposits and other assets $ 34 $ 28 $ 17 Total interest income 34 28 17 INTEREST EXPENSE: Junior subordinated debentures 880 827 458 Total interest expense 880 827 458 Net interest (expense) income (846 ) (799 ) (441 ) NONINTEREST INCOME: Dividends from subsidiary banks 30,000 22,000 66,300 Equity in (excess distributed) undistributed income of subsidiary banks 11,848 18,131 (40,737 ) Other income — — 3 Total noninterest income 41,848 40,131 25,566 NONONTEREST EXPENSE: Professional services 385 263 2,943 Other expense 3,437 3,120 3,109 Total noninterest expense 3,822 3,383 6,052 Income before income taxes 37,180 35,949 19,073 Income tax benefit (1,738 ) (1,540 ) (1,941 ) Net income $ 38,918 $ 37,489 $ 21,014
Condensed Statements of Cash Flow	HERITAGE FINANCIAL CORPORATION (PARENT COMPANY ONLY) Condensed Statements of Cash Flows Year Ended December 31, 2016 2015 2014 (In thousands) Cash flows from operating activities: Net income $ 38,918 $ 37,489 $ 21,014 Adjustments to reconcile net income to net cash provided by operating activities: Equity in excess of (undistributed) distributed income of subsidiary bank (11,848 ) (18,131 ) 40,737 Net excess tax benefit from exercise of stock options and vesting of restricted stock (123 ) (140 ) (118 ) Restricted stock compensation expense 1,840 1,555 1,395 Stock option compensation expense — — 20 Net change in other assets and liabilities (1,141 ) (125 ) 817 Net cash provided by operating activities 27,646 20,648 63,865 Cash flows from investing activities: Investment in subsidiary — — (43,215 ) Net cash used in investing activities — — (43,215 ) Cash flows from financing activities: Common stock cash dividends paid (21,569 ) (15,916 ) (12,892 ) Proceeds from exercise of stock options 540 751 915 Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock 123 140 118 Repurchase of common stock (2,894 ) (7,736 ) (2,601 ) Net cash used in financing activities (23,800 ) (22,761 ) (14,460 ) Net increase (decrease) in cash and cash equivalents 3,846 (2,113 ) 6,190 Cash and cash equivalents at beginning of year 6,722 8,835 2,645 Cash and cash equivalents at end of year $ 10,568 $ 6,722 $ 8,835

Selected Quarterly Financial 54

Selected Quarterly Financial Data (Tables)	12 Months Ended
	Dec. 31, 2016
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, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per share amounts) Interest income $ 34,235 $ 34,592 $ 35,114 $ 34,571 Interest expense 1,475 1,507 1,508 1,516 Net interest income 32,760 33,085 33,606 33,055 Provision for loan losses 1,139 1,120 1,495 1,177 Net interest income after provision for loan losses 31,621 31,965 32,111 31,878 Noninterest income 6,990 6,576 9,867 8,186 Noninterest expense 26,369 26,477 26,818 26,809 Income before provision for income taxes 12,242 12,064 15,160 13,255 Income tax expense 3,151 3,169 4,121 3,362 Net income $ 9,091 $ 8,895 $ 11,039 $ 9,893 Basic earnings per common share $ 0.30 $ 0.30 $ 0.37 $ 0.33 Diluted earnings per common share 0.30 0.30 0.37 0.33 Cash dividends declared on common stock 0.11 0.12 0.12 0.37 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

Description of Business, Basi55

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Description of Business and Basis of Presentation (Details) $ in Thousands	Dec. 31, 2016USD ($)branch	Dec. 31, 2015USD ($)
Business Description and Basis of Presentation [Line Items]
Investment securities available for sale, at fair value	$ 794,645	$ 811,869
Available-for-sale securities, amortized cost	798,639	807,921
Restatement adjustment | Non-owner occupied commercial real estate
Business Description and Basis of Presentation [Line Items]
Loans receivable		56,600
Commercial mortgage-backed securities
Business Description and Basis of Presentation [Line Items]
Investment securities available for sale, at fair value	208,318	179,011
Available-for-sale securities, amortized cost	$ 211,259	$ 179,797
Heritage Bank
Business Description and Basis of Presentation [Line Items]
Number of branches operating | branch	63

Description of Business, Basi56

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Allowance for off-balance sheet financial instruments	$ 170	$ 170

Description of Business, Basi57

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Mortgage Banking Operations (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fair value of derivative instruments	$ 0	$ 0

Description of Business, Basi58

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - FDIC Indemnification Asset (Details)	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Percentage of losses absorbed by FDIC	80.00%
Percentage of loss recoveries received by FDIC	80.00%

Description of Business, Basi59

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
Minimum | Buildings and building improvements
Property, Plant and Equipment [Line Items]
Useful lives	15 years
Minimum | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Useful lives	3 years
Maximum | Buildings and building improvements
Property, Plant and Equipment [Line Items]
Useful lives	39 years
Maximum | Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Useful lives	7 years

Description of Business, Basi60

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Bank Owned Life Insurance (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	May 01, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Bank owned life insurance	$ 70,355	$ 60,876	$ 32,500

Description of Business, Basi61

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Stock-Based Compensation (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Stock option awards granted (in shares)	0	0	0

Description of Business, Basi62

Description of Business, Basis of Presentation and Significant Accounting Policies and Recently Issued Accounting Pronouncements - Operating Segments (Details)	12 Months Ended
	Dec. 31, 2016segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	1

Business Combination - Textuals

Business Combination - Textuals (Details) - USD ($)	May 01, 2014	Dec. 31, 2016	Dec. 31, 2014	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill		$ 119,029,000		$ 119,029,000
Merger-related costs		$ 0
Washington Banking
Business Acquisition [Line Items]
Number of shares of common stock issued	0.89000
Share price paid in cash (in usd per share)	$ 2.75
Total consideration paid	$ 269,600,000
Number of shares issued in conjunction with the merger	14,000,178
Fair value of equity interest issued	$ 226,700,000
Capitalized stock issuance costs	489,000
Goodwill	$ 89,700,000
Merger-related costs			$ 9,100,000
Valley Community Bancshares
Business Acquisition [Line Items]
Merger-related costs			$ 443,000

Business Combination - Unaudite

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

Investment Securities - Reconci

Investment Securities - Reconciliation (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 798,639	$ 807,921
Gross Unrealized Gains	4,281	7,072
Gross Unrealized Losses	(8,275)	(3,124)
Fair Value	794,645	811,869
U.S. Treasury and U.S. Government-sponsored agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,563	35,618
Gross Unrealized Gains	6	145
Gross Unrealized Losses	0	(186)
Fair Value	1,569	35,577
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	237,305	216,352
Gross Unrealized Gains	2,427	4,826
Gross Unrealized Losses	(2,476)	(185)
Fair Value	237,256	220,993
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	310,391	351,606
Gross Unrealized Gains	985	1,749
Gross Unrealized Losses	(2,200)	(1,331)
Fair Value	309,176	352,024
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	211,259	179,797
Gross Unrealized Gains	599	343
Gross Unrealized Losses	(3,540)	(1,129)
Fair Value	208,318	179,011
Collateralized loan obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,505	15,251
Gross Unrealized Gains	4	0
Gross Unrealized Losses	(31)	(154)
Fair Value	10,478	15,097
Corporate obligations
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	16,611	9,252
Gross Unrealized Gains	104	0
Gross Unrealized Losses	(9)	(139)
Fair Value	16,706	9,113
Other securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,005	45
Gross Unrealized Gains	156	9
Gross Unrealized Losses	(19)	0
Fair Value	$ 11,142	$ 54

Investment Securities - Textual

Investment Securities - Textual (Details)	12 Months Ended
	Dec. 31, 2016USD ($)security	Dec. 31, 2015USD ($)security
Investment Holdings [Line Items]
Securities classified as trading	$ 0	$ 0
Securities classified as held to maturity	0	0
OTTI, unrealized losses	$ 0	0
Private residential collateralized mortgage obligations
Investment Holdings [Line Items]
Carrying value of held to maturity securities sold		1,100,000
Realized pre-tax loss from sales of held to maturity securities		$ 125,000
Mortgage backed securities evaluation non temporary decline number (securities) | security	0	0

Investment Securities - Contrac

Investment Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amortized Cost
Due in one year or less	$ 6,596
Due after one year through five years	123,618
Due after five years through ten years	262,644
Due after ten years	405,736
Investment securities with no stated maturities	45
Amortized Cost	798,639	$ 807,921
Fair Value
Due in one year or less	6,666
Due after one year through five years	124,240
Due after five years through ten years	260,514
Due after ten years	403,102
Investment securities with no stated maturities	123
Fair Value	$ 794,645	$ 811,869

Investment Securities - Unreali

Investment Securities - Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value
Less than 12 Months	$ 442,811	$ 328,603
12 Months or Longer	26,420	46,985
Total	469,231	375,588
Unrealized Losses
Less than 12 Months	(8,099)	(2,611)
12 Months or Longer	(176)	(513)
Total	(8,275)	(3,124)
U.S. Treasury and U.S. Government-sponsored agencies
Fair Value
Less than 12 Months	0	30,381
12 Months or Longer	0	0
Total	0	30,381
Unrealized Losses
Less than 12 Months	0	(186)
12 Months or Longer	0	0
Total	0	(186)
Municipal securities
Fair Value
Less than 12 Months	90,188	21,929
12 Months or Longer	0	2,068
Total	90,188	23,997
Unrealized Losses
Less than 12 Months	(2,476)	(174)
12 Months or Longer	0	(11)
Total	(2,476)	(185)
Residential mortgage-backed securities
Fair Value
Less than 12 Months	181,562	173,959
12 Months or Longer	10,854	39,891
Total	192,416	213,850
Unrealized Losses
Less than 12 Months	(2,148)	(870)
12 Months or Longer	(52)	(461)
Total	(2,200)	(1,331)
Commercial mortgage-backed securities
Fair Value
Less than 12 Months	157,055	79,103
12 Months or Longer	12,597	4,047
Total	169,652	83,150
Unrealized Losses
Less than 12 Months	(3,446)	(1,117)
12 Months or Longer	(94)	(12)
Total	(3,540)	(1,129)
Collateralized loan obligations
Fair Value
Less than 12 Months	2,976	15,097
12 Months or Longer	2,969	0
Total	5,945	15,097
Unrealized Losses
Less than 12 Months	(1)	(154)
12 Months or Longer	(30)	0
Total	(31)	(154)
Corporate obligations
Fair Value
Less than 12 Months	4,032	8,134
12 Months or Longer	0	979
Total	4,032	9,113
Unrealized Losses
Less than 12 Months	(9)	(110)
12 Months or Longer	0	(29)
Total	(9)	$ (139)
Other securities
Fair Value
Less than 12 Months	6,998
12 Months or Longer	0
Total	6,998
Unrealized Losses
Less than 12 Months	(19)
12 Months or Longer	0
Total	$ (19)

Investment Securities - Impairm

Investment Securities - Impairment Activity on Held to Maturity Securities(Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of other-than-temporary impairment losses investment securities
Life-to-Date Gross Other-Than-Temporary Impairments, Beginning Balance		$ 2,648	$ 2,603
Life-to-Date Gross Other-Than-Temporary Impairments, Subsequent impairments			45
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
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Subsequent impairments			0
Life-to-Date Other-Than-Temporary Impairments Included in Other Comprehensive Income, Ending Balance			1,152
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Beginning Balance		1,496	1,451
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Subsequent impairments	$ 0	$ 0	45
Life-to-Date Net Other-Than-Temporary Impairments Included in Earnings, Ending Balance			$ 1,496

Investment Securities - Amortiz

Investment Securities - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Investment Holdings [Line Items]
Amortized Cost	$ 247,872	$ 243,456
Fair Value	248,087	246,453
Washington and Oregon state to secure public deposits
Investment Holdings [Line Items]
Amortized Cost	214,834	212,325
Fair Value	215,247	215,284
Federal Reserve Bank of San Francisco and FHLB to secure borrowing arrangements
Investment Holdings [Line Items]
Amortized Cost	0	506
Fair Value	0	506
Repurchase agreements
Investment Holdings [Line Items]
Amortized Cost	29,481	28,500
Fair Value	29,294	28,503
Other securities pledged
Investment Holdings [Line Items]
Amortized Cost	3,557	2,125
Fair Value	$ 3,546	$ 2,160

Loans Receivable - Textuals (De

Loans Receivable - Textuals (Details)	12 Months Ended
	Dec. 31, 2016segment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of loan segments	4
Maximum percentage consumer loans (percent)	80.00%
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%
One-to-four Family Residential | Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan term	15 years
One-to-four Family Residential | Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan term	30 years

Loans Receivable - Components o

Loans Receivable - Components of Loans Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	$ 2,638,397	$ 2,401,113
Net deferred loan costs (fees)	2,352	929
Loans receivable, net	2,640,749	2,402,042
Allowance for loan losses	(31,083)	(29,746)	$ (27,729)	$ (28,824)
Total loans receivable, net	2,609,666	2,372,296
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	2,076,688	1,923,321
Allowance for loan losses	(22,382)	(22,064)	(20,186)	(22,853)
Commercial business | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	637,773	596,726
Allowance for loan losses	(10,968)	(9,972)	(10,553)	(13,478)
Commercial business | Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	558,035	572,609
Allowance for loan losses	(3,661)	(4,370)	(4,032)	(4,049)
Commercial business | Non-owner occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	880,880	753,986
Allowance for loan losses	(7,753)	(7,722)	(5,601)	(5,326)
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	77,391	72,548
Allowance for loan losses	(1,015)	(1,157)	(1,200)	(1,100)
Real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	159,178	107,077
Allowance for loan losses	(2,156)	(1,871)	(2,758)	(2,673)
Real estate construction and land development | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	50,414	51,752
Allowance for loan losses	(797)	(1,058)	(1,786)	(1,720)
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	108,764	55,325
Allowance for loan losses	(1,359)	(813)	(972)	(953)
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross loans receivable	325,140	298,167
Allowance for loan losses	$ (5,024)	$ (4,309)	$ (2,769)	$ (1,597)

Loans Receivable - Concentratio

Loans Receivable - Concentrations of Credit (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Concentration of loans greater than 10%	0	0
Percentage of concentrations of loans in any industry (in excess of 10%) (percent)	10.00%	10.00%

Loans Receivable - Credit Quali

Loans Receivable - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Pass	$ 2,521,876	$ 2,265,286
OAEM	25,708	44,098
Substandard	90,813	91,173
Doubtful	0	556
Total	2,638,397	2,401,113
Potential problem loans receivable	87,800	110,400
Government guaranteed potential problem loans	1,100	3,000
Commercial business
Financing Receivable, Recorded Investment [Line Items]
Pass	1,975,241	1,807,190
OAEM	24,058	43,202
Substandard	77,389	72,373
Doubtful	0	556
Total	2,076,688	1,923,321
Commercial business | Commercial and industrial
Financing Receivable, Recorded Investment [Line Items]
Pass	601,273	563,002
OAEM	5,048	8,093
Substandard	31,452	25,333
Doubtful	0	298
Total	637,773	596,726
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Pass	532,585	544,429
OAEM	4,437	11,662
Substandard	21,013	16,260
Doubtful	0	258
Total	558,035	572,609
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Pass	841,383	699,759
OAEM	14,573	23,447
Substandard	24,924	30,780
Doubtful	0	0
Total	880,880	753,986
One-to-four family residential
Financing Receivable, Recorded Investment [Line Items]
Pass	76,020	71,457
OAEM	0	0
Substandard	1,371	1,091
Doubtful	0	0
Total	77,391	72,548
Real estate construction and land development
Financing Receivable, Recorded Investment [Line Items]
Pass	150,475	94,747
OAEM	1,650	896
Substandard	7,053	11,434
Doubtful	0	0
Total	159,178	107,077
Real estate construction and land development | One-to-four family residential
Financing Receivable, Recorded Investment [Line Items]
Pass	44,752	44,069
OAEM	500	896
Substandard	5,162	6,787
Doubtful	0	0
Total	50,414	51,752
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Recorded Investment [Line Items]
Pass	105,723	50,678
OAEM	1,150	0
Substandard	1,891	4,647
Doubtful	0	0
Total	108,764	55,325
Consumer
Financing Receivable, Recorded Investment [Line Items]
Pass	320,140	291,892
OAEM	0	0
Substandard	5,000	6,275
Doubtful	0	0
Total	$ 325,140	$ 298,167

Loans Receivable - Nonaccrual L

Loans Receivable - Nonaccrual Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	$ 10,909	$ 9,668
Nonaccrual originated loans guaranteed by governmental agencies	2,800	1,300
Commercial business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	8,580	7,122
Commercial business | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	3,531	5,095
Commercial business | Owner-occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	3,728	2,027
Commercial business | Non-owner occupied commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	1,321	0
One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	94	38
Real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	2,008	2,414
Real estate construction and land development | One-to-four family residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	2,008	2,414
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross nonaccrual loans	$ 227	$ 94

Loans Receivable - Past Due Loa

Loans Receivable - Past Due Loans (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 15,270,000	$ 19,062,000
Current	2,623,127,000	2,382,051,000
Total	2,638,397,000	2,401,113,000
90 Days or More and Still Accruing	0	0
30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,132,000	10,954,000
90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7,138,000	8,108,000
Commercial business
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,875,000	12,789,000
Current	2,066,813,000	1,910,532,000
Total	2,076,688,000	1,923,321,000
Commercial business | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,227,000	7,317,000
Commercial business | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,648,000	5,472,000
Commercial business | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,420,000	5,579,000
Current	633,353,000	591,147,000
Total	637,773,000	596,726,000
Commercial business | Commercial and industrial | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,687,000	2,900,000
Commercial business | Commercial and industrial | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,733,000	2,679,000
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,722,000	4,849,000
Current	553,313,000	567,760,000
Total	558,035,000	572,609,000
Commercial business | Owner-occupied commercial real estate | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,807,000	2,240,000
Commercial business | Owner-occupied commercial real estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,915,000	2,609,000
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	733,000	2,361,000
Current	880,147,000	751,625,000
Total	880,880,000	753,986,000
Commercial business | Non-owner occupied commercial real estate | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	733,000	2,177,000
Commercial business | Non-owner occupied commercial real estate | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	184,000
One-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	523,000	490,000
Current	76,868,000	72,058,000
Total	77,391,000	72,548,000
One-to-four family residential | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	523,000	490,000
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	2,475,000	2,552,000
Current	156,703,000	104,525,000
Total	159,178,000	107,077,000
Real estate construction and land development | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	90,000	118,000
Real estate construction and land development | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,385,000	2,434,000
Real estate construction and land development | One-to-four family residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,098,000	2,392,000
Current	48,316,000	49,360,000
Total	50,414,000	51,752,000
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	90,000	0
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	2,008,000	2,392,000
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	377,000	160,000
Current	108,387,000	55,165,000
Total	108,764,000	55,325,000
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	0	118,000
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	377,000	42,000
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,397,000	3,231,000
Current	322,743,000	294,936,000
Total	325,140,000	298,167,000
Consumer | 30-89 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,292,000	3,029,000
Consumer | 90 Days or Greater
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 105,000	$ 202,000

Loans Receivable - Impaired Loa

Loans Receivable - Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	$ 10,085	$ 6,019
Recorded Investment With Specific Valuation Allowance	23,113	24,343
Total Recorded Investment	33,198	30,362
Unpaid Contractual Principal Balance	35,226	32,774
Related Specific Valuation Allowance	2,734	3,308
Government guarantee of originated impaired loans	3,500	1,800
Commercial business
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	7,794	4,568
Recorded Investment With Specific Valuation Allowance	20,623	19,898
Total Recorded Investment	28,417	24,466
Unpaid Contractual Principal Balance	29,742	26,249
Related Specific Valuation Allowance	2,507	2,925
Commercial business | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	1,739	872
Recorded Investment With Specific Valuation Allowance	10,636	8,769
Total Recorded Investment	12,375	9,641
Unpaid Contractual Principal Balance	13,249	11,368
Related Specific Valuation Allowance	1,199	1,173
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	1,150	0
Recorded Investment With Specific Valuation Allowance	3,574	4,295
Total Recorded Investment	4,724	4,295
Unpaid Contractual Principal Balance	5,107	4,342
Related Specific Valuation Allowance	511	809
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	4,905	3,696
Recorded Investment With Specific Valuation Allowance	6,413	6,834
Total Recorded Investment	11,318	10,530
Unpaid Contractual Principal Balance	11,386	10,539
Related Specific Valuation Allowance	797	943
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	321	275
Total Recorded Investment	321	275
Unpaid Contractual Principal Balance	325	276
Related Specific Valuation Allowance	97	85
Real estate construction and land development
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	2,243	1,403
Recorded Investment With Specific Valuation Allowance	1,907	4,025
Total Recorded Investment	4,150	5,428
Unpaid Contractual Principal Balance	4,834	6,049
Related Specific Valuation Allowance	66	269
Real estate construction and land development | One-to-four family residential
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	2,243	1,403
Recorded Investment With Specific Valuation Allowance	828	2,065
Total Recorded Investment	3,071	3,468
Unpaid Contractual Principal Balance	3,755	4,089
Related Specific Valuation Allowance	6	66
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	1,079	1,960
Total Recorded Investment	1,079	1,960
Unpaid Contractual Principal Balance	1,079	1,960
Related Specific Valuation Allowance	60	203
Consumer
Financing Receivable, Impaired [Line Items]
Recorded Investment With No Specific Valuation Allowance	48	48
Recorded Investment With Specific Valuation Allowance	262	145
Total Recorded Investment	310	193
Unpaid Contractual Principal Balance	325	200
Related Specific Valuation Allowance	$ 64	$ 29

Loans Receivable - Average Reco

Loans Receivable - Average Recorded Investment of Impaired Loans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	$ 32,341,000	$ 29,661,000	$ 34,860,000
Nonaccrual
Financing Receivable, Modifications [Line Items]
Interest income recognized	0	0	0
Restructured performing
Financing Receivable, Modifications [Line Items]
Interest income recognized	651,000	780,000	1,200,000
Commercial business
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	26,456,000	23,384,000	25,864,000
Commercial business | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	10,207,000	9,781,000	14,367,000
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	4,540,000	4,346,000	3,582,000
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	11,709,000	9,257,000	7,915,000
One-to-four family residential
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	279,000	257,000	604,000
Real estate construction and land development
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	4,961,000	5,849,000	7,606,000
Real estate construction and land development | One-to-four family residential
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	3,305,000	3,841,000	5,452,000
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	1,656,000	2,008,000	2,154,000
Consumer
Financing Receivable, Modifications [Line Items]
Average recorded investment of impaired loans	$ 645,000	$ 171,000	$ 786,000

Loans Receivable - Performing a

Loans Receivable - Performing and Nonaccrual TDR (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Performing TDR loans	$ 22,288	$ 20,695
Nonaccrual TDR loans	6,900	6,301
Performing TDR loans, Allowance for loan losses	1,965	2,069
Nonaccrual TDR loans, Allowance for loan losses	437	679
Unfunded commitment to borrowers related to TDR loans	$ 249	$ 551

Loans Receivable - Modified TDR

Loans Receivable - Modified TDRs (Details) - Troubled Debt Restructured Loans	12 Months Ended
	Dec. 31, 2016USD ($)contract	Dec. 31, 2015USD ($)contract	Dec. 31, 2014USD ($)contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	35	38	51
Outstanding Principal Balance	$ 13,438,000	$ 17,447,000	$ 19,431,000
Commercial business
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	23	33	39
Outstanding Principal Balance	$ 10,088,000	$ 15,119,000	$ 15,777,000
Commercial business | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	19	25	33
Outstanding Principal Balance	$ 7,398,000	$ 6,312,000	$ 8,166,000
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	2	4	3
Outstanding Principal Balance	$ 569,000	$ 1,311,000	$ 1,063,000
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	2	4	3
Outstanding Principal Balance	$ 2,121,000	$ 7,496,000	$ 6,548,000
Real estate construction and land development
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	6	4	10
Outstanding Principal Balance	$ 3,284,000	$ 2,291,000	$ 3,553,000
Real estate construction and land development | One-to-four family residential
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	5	4	10
Outstanding Principal Balance	$ 2,206,000	$ 2,291,000	$ 3,553,000
Initial advance at the time of modification	$ 0	$ 0	45,000
Loan and Lease, Impaired, Commitment to Lend at Modification Date			190,000
Financing Receivable, Modifications, Recorded Investment			$ 188,000
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	1	0	0
Outstanding Principal Balance	$ 1,078,000	$ 0	$ 0
Consumer
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	6	1	2
Outstanding Principal Balance	$ 66,000	$ 37,000	$ 101,000

Loans Receivable - TDRs Textual

Loans Receivable - TDRs Textuals (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)contract	Dec. 31, 2015USD ($)contract	Dec. 31, 2014USD ($)contract
Financing Receivable, Modifications [Line Items]
Related specific valuation allowance for TDRs	$ 2,734	$ 3,308
Commercial business
Financing Receivable, Modifications [Line Items]
Related specific valuation allowance for TDRs	2,507	2,925
Commercial business | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Related specific valuation allowance for TDRs	1,199	1,173
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Related specific valuation allowance for TDRs	$ 797	$ 943
Troubled Debt Restructured Loans
Financing Receivable, Modifications [Line Items]
Number of contracts modified | contract	35	38	51
Number of contracts with no modifications | contract	17	18	17
Total outstanding principal balance with no prior modifications	$ 7,200	$ 7,000	$ 4,700
Number of contracts modified that subsequently defaulted | contract	3	2	1
Loans modified during the previous twelve months and subsequently defaulted	$ 1,631	$ 1,755	$ 75
Troubled Debt Restructured Loans | Modified during the year
Financing Receivable, Modifications [Line Items]
Related specific valuation allowance for TDRs	1,000	1,700	1,800
Troubled Debt Restructured Loans | Modified subsequently
Financing Receivable, Modifications [Line Items]
Related specific valuation allowance for TDRs	$ 111	$ 191	$ 4
Troubled Debt Restructured Loans | Commercial business
Financing Receivable, Modifications [Line Items]
Number of contracts modified | contract	23	33	39
Number of contracts modified that subsequently defaulted | contract	1	2	1
Loans modified during the previous twelve months and subsequently defaulted	$ 488	$ 1,755	$ 75
Troubled Debt Restructured Loans | Commercial business | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Number of contracts modified | contract	19	25	33
Number of contracts modified that subsequently defaulted | contract	0	2	0
Loans modified during the previous twelve months and subsequently defaulted	$ 0	$ 1,755	$ 0
Troubled Debt Restructured Loans | Commercial business | Commercial and industrial | 30-89 Days Past Due
Financing Receivable, Modifications [Line Items]
Number of contracts modified that subsequently defaulted | contract		1
Loans modified during the previous twelve months and subsequently defaulted		$ 1,700
Troubled Debt Restructured Loans | Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Number of contracts modified | contract	2	4	3
Number of contracts modified that subsequently defaulted | contract	0	0	1
Loans modified during the previous twelve months and subsequently defaulted	$ 0	$ 0	$ 75

Loans Receivable - TDRs Subsequ

Loans Receivable - TDRs Subsequently Defaulted (Details) - Troubled Debt Restructured Loans $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)contract	Dec. 31, 2015USD ($)contract	Dec. 31, 2014USD ($)contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	3	2	1
Outstanding Principal Balance | $	$ 1,631	$ 1,755	$ 75
Commercial business
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	1	2	1
Outstanding Principal Balance | $	$ 488	$ 1,755	$ 75
Commercial business | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	2	0
Outstanding Principal Balance | $	$ 0	$ 1,755	$ 0
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	1	0	0
Outstanding Principal Balance | $	$ 488	$ 0	$ 0
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0	1
Outstanding Principal Balance | $	$ 0	$ 0	$ 75
Real estate construction and land development
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	2	0	0
Outstanding Principal Balance | $	$ 1,143	$ 0	$ 0
Real estate construction and land development | One-to-four family residential
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	2	0	0
Outstanding Principal Balance | $	$ 1,143	$ 0	$ 0

Loans Receivable - Purchased Cr

Loans Receivable - Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Outstanding Principal	$ 71,731	$ 97,927
Recorded Investment	64,448	86,919
Commercial business
Financing Receivable, Impaired [Line Items]
Outstanding Principal	55,743	75,525
Recorded Investment	48,650	67,073
Commercial business | Commercial and industrial
Financing Receivable, Impaired [Line Items]
Outstanding Principal	13,067	20,110
Recorded Investment	9,317	16,986
Commercial business | Owner-occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Outstanding Principal	17,639	24,730
Recorded Investment	15,973	22,313
Commercial business | Non-owner occupied commercial real estate
Financing Receivable, Impaired [Line Items]
Outstanding Principal	25,037	30,685
Recorded Investment	23,360	27,774
One-to-four family residential
Financing Receivable, Impaired [Line Items]
Outstanding Principal	5,120	5,707
Recorded Investment	4,905	5,392
Real estate construction and land development
Financing Receivable, Impaired [Line Items]
Outstanding Principal	5,572	9,975
Recorded Investment	4,611	7,328
Real estate construction and land development | One-to-four family residential
Financing Receivable, Impaired [Line Items]
Outstanding Principal	2,958	6,904
Recorded Investment	2,123	4,121
Real estate construction and land development | Five or more family residential and commercial properties
Financing Receivable, Impaired [Line Items]
Outstanding Principal	2,614	3,071
Recorded Investment	2,488	3,207
Consumer
Financing Receivable, Impaired [Line Items]
Outstanding Principal	5,296	6,720
Recorded Investment	$ 6,282	$ 7,126

Loans Receivable - Change in Ac

Loans Receivable - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at the beginning of the year	$ 17,592	$ 21,092	$ 17,249
Accretion	(4,962)	(6,993)	(8,054)
Disposal and other	(3,329)	(3,111)	(4,981)
Change in accretable yield	4,559	6,604	16,878
Balance at the end of the year	$ 13,860	$ 17,592	$ 21,092

Loans Receivable - Related Part

Loans Receivable - Related Party Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance outstanding at beginning of year	$ 20,775	$ 9,164	$ 7,474
Principal additions	738	12,189	23
Elimination of outstanding loan balance due to change in related party status			1,858
Principal reductions	(1,596)	(578)	(191)
Balance outstanding at end of year	19,917	20,775	$ 9,164
Unfunded commitments to related parties	$ 891	$ 603

Loans Receivable - Mortgage Ban

Loans Receivable - Mortgage Banking (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Receivables [Abstract]
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage	$ 11,662	$ 7,682
Commitments to fund mortgage loans (at interest rates approximating market rates) for portfolio or for sale:
Total commitments to fund mortgage loans	23,490	16,741
One-to-four family residential
One-to-four family residential loans:
Originated	178,169	164,974	$ 75,500
Sold	141,127	132,365	55,997
Gains on sales of loans, net	3,723	3,150	$ 1,080
Contractual amounts of commitments to sell and fund with off-balance sheet risk:
Commitments to sell mortgage loans	18,166	11,621
Commitments to fund mortgage loans (at interest rates approximating market rates) for portfolio or for sale:
Fixed rate	19,301	11,884
Variable or adjustable rate	$ 4,189	$ 4,857

Loans Receivable - SBA Loans (D

Loans Receivable - SBA Loans (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
SBA Loans [Line Items]
SBA loans serviced for others with no participating interest	$ 0
SBA Loans
SBA Loans [Line Items]
SBA loans serviced for others with participating interest, gross loan balance	48,359,000	$ 43,771,000
SBA loans serviced for others with participating interest, participation balance owned by Bank	11,218,000	10,076,000
SBA loans serviced for others with no participating interest		0
Servicing fee income and fees from SBA loans serviced for others	$ 460,000	$ 392,000	$ 260,000

Allowance for Loan Losses - Sum

Allowance for Loan Losses - Summary of Changes in Loan Allowance (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of changes in allowance for loan losses
Balance at the beginning of the year				$ 29,746				$ 27,729	$ 29,746	$ 27,729	$ 28,824
Charge-offs									(6,085)	(3,482)	(6,597)
Recoveries of loans previously charged -off									2,491	1,127	908
Provision for loan losses	$ 1,177	$ 1,495	$ 1,120	$ 1,139	$ 1,124	$ 851	$ 1,189	$ 1,208	4,931	4,372	4,594
Balance at the end of the year	$ 31,083				$ 29,746				$ 31,083	$ 29,746	$ 27,729

Allowance for Loan Losses - Act

Allowance for Loan Losses - Activity in Allowance for Losses Disaggregated on Basis of Impairment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				$ 29,746				$ 27,729	$ 29,746	$ 27,729	$ 28,824
Charge-offs									(6,085)	(3,482)	(6,597)
Recoveries									2,491	1,127	908
Provision for loan losses	$ 1,177	$ 1,495	$ 1,120	1,139	$ 1,124	$ 851	$ 1,189	1,208	4,931	4,372	4,594
Balance at the end of the year	31,083				29,746				31,083	29,746	27,729
Commercial business
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				22,064				20,186	22,064	20,186	22,853
Charge-offs									(4,153)	(1,676)	(5,252)
Recoveries									1,844	476	716
Provision for loan losses									2,627	3,078	1,869
Balance at the end of the year	22,382				22,064				22,382	22,064	20,186
Commercial business | Commercial and industrial
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				9,972				10,553	9,972	10,553	13,478
Charge-offs									(3,265)	(1,488)	(4,504)
Recoveries									1,844	476	716
Provision for loan losses									2,417	431	863
Balance at the end of the year	10,968				9,972				10,968	9,972	10,553
Commercial business | Owner-occupied commercial real estate
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				4,370				4,032	4,370	4,032	4,049
Charge-offs									(538)	0	(337)
Recoveries									0	0	0
Provision for loan losses									(171)	338	320
Balance at the end of the year	3,661				4,370				3,661	4,370	4,032
Commercial business | Non-owner occupied commercial real estate
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				7,722				5,601	7,722	5,601	5,326
Charge-offs									(350)	(188)	(411)
Recoveries									0	0	0
Provision for loan losses									381	2,309	686
Balance at the end of the year	7,753				7,722				7,753	7,722	5,601
One-to-four family residential
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				1,157				1,200	1,157	1,200	1,100
Charge-offs									0	0	(31)
Recoveries									2	13	7
Provision for loan losses									(144)	(56)	124
Balance at the end of the year	1,015				1,157				1,015	1,157	1,200
Real estate construction and land development
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				1,871				2,758	1,871	2,758	2,673
Charge-offs									(154)	(106)	(345)
Recoveries									83	100	43
Provision for loan losses									356	(881)	387
Balance at the end of the year	2,156				1,871				2,156	1,871	2,758
Real estate construction and land development | One-to-four family residential
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				1,058				1,786	1,058	1,786	1,720
Charge-offs									(100)	(106)	(345)
Recoveries										100	43
Provision for loan losses									(244)	(722)	368
Balance at the end of the year	797				1,058				797	1,058	1,786
Real estate construction and land development | Five or more family residential and commercial properties
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				813				972	813	972	953
Charge-offs									(54)	0	0
Recoveries									0	0	0
Provision for loan losses									600	(159)	19
Balance at the end of the year	1,359				813				1,359	813	972
Consumer
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				4,309				2,769	4,309	2,769	1,597
Charge-offs									(1,778)	(1,700)	(969)
Recoveries									562	538	142
Provision for loan losses									1,931	2,702	1,999
Balance at the end of the year	5,024				4,309				5,024	4,309	2,769
Unallocated
Schedule of allowance for loan losses on the basis of impairment method
Balance at the beginning of the year				$ 345				$ 816	345	816	601
Charge-offs									0	0	0
Recoveries									0	0	0
Provision for loan losses									161	(471)	215
Balance at the end of the year	$ 506				$ 345				$ 506	$ 345	$ 816

Allowance for Loan Losses - Rec

Allowance for Loan Losses - Recorded Investment Disaggregated on Basis of Impairment (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	$ 33,198	$ 30,362
Loans Collectively Evaluated for Impairment	2,540,751	2,283,832
PCI Loans	64,448	86,919
Gross Loans Receivable	2,638,397	2,401,113
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	2,734	3,308
Loans Collectively Evaluated for Impairment	21,791	17,354
PCI Loans	6,558	9,084
Total Allowance for Loan Losses	31,083	29,746	$ 27,729	$ 28,824
Commercial business
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	28,417	24,466
Loans Collectively Evaluated for Impairment	1,999,621	1,831,782
PCI Loans	48,650	67,073
Gross Loans Receivable	2,076,688	1,923,321
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	2,507	2,925
Loans Collectively Evaluated for Impairment	15,024	12,274
PCI Loans	4,851	6,865
Total Allowance for Loan Losses	22,382	22,064	20,186	22,853
Commercial business | Commercial and industrial
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	12,375	9,641
Loans Collectively Evaluated for Impairment	616,081	570,099
PCI Loans	9,317	16,986
Gross Loans Receivable	637,773	596,726
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	1,199	1,173
Loans Collectively Evaluated for Impairment	8,048	6,276
PCI Loans	1,721	2,523
Total Allowance for Loan Losses	10,968	9,972	10,553	13,478
Commercial business | Owner-occupied commercial real estate
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	4,724	4,295
Loans Collectively Evaluated for Impairment	537,338	546,001
PCI Loans	15,973	22,313
Gross Loans Receivable	558,035	572,609
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	511	809
Loans Collectively Evaluated for Impairment	1,834	1,662
PCI Loans	1,316	1,899
Total Allowance for Loan Losses	3,661	4,370	4,032	4,049
Commercial business | Non-owner occupied commercial real estate
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	11,318	10,530
Loans Collectively Evaluated for Impairment	846,202	715,682
PCI Loans	23,360	27,774
Gross Loans Receivable	880,880	753,986
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	797	943
Loans Collectively Evaluated for Impairment	5,142	4,336
PCI Loans	1,814	2,443
Total Allowance for Loan Losses	7,753	7,722	5,601	5,326
One-to-four family residential
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	321	275
Loans Collectively Evaluated for Impairment	72,165	66,881
PCI Loans	4,905	5,392
Gross Loans Receivable	77,391	72,548
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	97	85
Loans Collectively Evaluated for Impairment	643	546
PCI Loans	275	526
Total Allowance for Loan Losses	1,015	1,157	1,200	1,100
Real estate construction and land development
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	4,150	5,428
Loans Collectively Evaluated for Impairment	150,417	94,321
PCI Loans	4,611	7,328
Gross Loans Receivable	159,178	107,077
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	66	269
Loans Collectively Evaluated for Impairment	1,706	1,000
PCI Loans	384	602
Total Allowance for Loan Losses	2,156	1,871	2,758	2,673
Real estate construction and land development | One-to-four family residential
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	3,071	3,468
Loans Collectively Evaluated for Impairment	45,220	44,163
PCI Loans	2,123	4,121
Gross Loans Receivable	50,414	51,752
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	6	66
Loans Collectively Evaluated for Impairment	538	481
PCI Loans	253	511
Total Allowance for Loan Losses	797	1,058	1,786	1,720
Real estate construction and land development | Five or more family residential and commercial properties
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	1,079	1,960
Loans Collectively Evaluated for Impairment	105,197	50,158
PCI Loans	2,488	3,207
Gross Loans Receivable	108,764	55,325
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	60	203
Loans Collectively Evaluated for Impairment	1,168	519
PCI Loans	131	91
Total Allowance for Loan Losses	1,359	813	972	953
Consumer
Loan Receivables, Disaggregated:
Loans Individually Evaluated for Impairment	310	193
Loans Collectively Evaluated for Impairment	318,548	290,848
PCI Loans	6,282	7,126
Gross Loans Receivable	325,140	298,167
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	64	29
Loans Collectively Evaluated for Impairment	3,912	3,189
PCI Loans	1,048	1,091
Total Allowance for Loan Losses	5,024	4,309	2,769	1,597
Unallocated
Allowance for Loan Losses Disaggregated:
Loans Individually Evaluated for Impairment	0	0
Loans Collectively Evaluated for Impairment	506	345
PCI Loans	0	0
Total Allowance for Loan Losses	$ 506	$ 345	$ 816	$ 601

FDIC Indemnification Asset - Te

FDIC Indemnification Asset - Textuals (Details) $ in Thousands	Aug. 04, 2015USD ($)acquisition	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2013USD ($)
Banking and Thrift [Abstract]
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	$ 0	$ 1,747	$ 0
FDIC indemnification asset		$ 0	$ 0	$ 1,116	$ 388	$ 4,382
FDIC clawback liability					$ 9,300

FDIC Indemnification Asset - Ro

FDIC Indemnification Asset - Rollforward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
FDIC Indemnification Asset [Roll Forward]
Balance at the beginning of the year	$ 1,116	$ 4,382
Additions as a result of the Washington Banking Merger	0	7,174
Cash payments received or receivable from the FDIC	(231)	(7,897)
FDIC share of additional estimated gains	(352)	(1,072)
Net amortization	(145)	(1,471)
Change due to termination of FDIC shared-loss agreements	(388)	0
Balance at the end of the year	$ 0	$ 1,116

Other Real Estate Owned - Chang

Other Real Estate Owned - Changes in Other Real Estate Owned (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Changes in other real estate owned
Balance at the beginning of the year	$ 2,019	$ 3,355	$ 4,559
Additions	1,431	2,845	1,566
Additions from acquisitions	0	0	7,121
Proceeds from dispositions	(2,486)	(3,555)	(9,914)
Gain (loss) on sales, net	173	(97)	23
Valuation adjustment	(383)	(529)	0
Balance at the end of the year	$ 754	$ 2,019	$ 3,355

Other Real Estate Owned - Textu

Other Real Estate Owned - Textuals (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Mortgage Loans on Real Estate [Line Items]
Carrying amount of other real estate owned from foreclosure	$ 754	$ 2,019	$ 3,355	$ 4,559
Mortgage loans secured by residential real estate properties	81
One-to-four family residential
Mortgage Loans on Real Estate [Line Items]
Carrying amount of other real estate owned from foreclosure	$ 523

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 93,832		$ 88,559
Accumulated depreciation	29,921		26,668
Premises and equipment, net	63,911	$ 61,891	61,891
Depreciation	3,900	$ 4,000	3,500
Land
Property, Plant and Equipment [Line Items]
Total premises and equipment	22,677		21,695
Buildings and building improvements
Property, Plant and Equipment [Line Items]
Total premises and equipment	52,432		49,630
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Total premises and equipment	$ 18,723		$ 17,234

Goodwill and Other Intangible96

Goodwill and Other Intangible Assets - Textuals (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Goodwill additions	$ 0	$ 0
Goodwill impairment charges	$ 0	$ 0	$ 0
Washington Banking
Finite-Lived Intangible Assets [Line Items]
Goodwill additions			$ 89,700,000
Washington Banking | Core Deposits
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
Valley | Core Deposits
Finite-Lived Intangible Assets [Line Items]
Useful life	10 years
NCB | Core Deposits
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years
Pierce | Core Deposits
Finite-Lived Intangible Assets [Line Items]
Useful life	4 years
Cowlitz | Core Deposits
Finite-Lived Intangible Assets [Line Items]
Useful life	9 years
Western Washington Bancorp | Core Deposits
Finite-Lived Intangible Assets [Line Items]
Useful life	8 years

Goodwill and Other Intangible97

Goodwill and Other Intangible Assets - Change in Other Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-lived Intangible Assets [Roll Forward]
Balance at the beginning of the year	$ 8,789	$ 10,889	$ 1,615
Additions as a result of acquisitions	0	0	11,194
Less: Amortization	1,415	2,100	1,920
Balance at the end of the year	$ 7,374	$ 8,789	$ 10,889

Goodwill and Other Intangible98

Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 1,285
2,018	1,122
2,019	1,043
2,020	989
2,021	938
Thereafter	1,997
Intangible assets, net	$ 7,374

Deposits - Components of Deposi

Deposits - Components of Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Amount
Noninterest demand deposits	$ 882,091	$ 770,927
NOW accounts	963,821	917,859
Money market accounts	523,875	545,342
Savings accounts	502,460	453,826
Total non-maturity deposits	2,872,247	2,687,954
Certificate of deposit accounts	357,401	420,333
Total deposits	$ 3,229,648	$ 3,108,287
Percent
Noninterest demand deposits (as a percent)	27.30%	24.80%
NOW accounts (as a percent)	29.80%	29.50%
Money market accounts (as a percent)	16.20%	17.60%
Savings accounts (as a percent)	15.60%	14.60%
Total non-maturity deposits (as a percent)	88.90%	86.50%
Certificate of deposit accounts (as a percent)	11.10%	13.50%
Total deposits (as a percent)	100.00%	100.00%

Deposits - Textuals (Details)

Deposits - Textuals (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deposits [Abstract]
Accrued interest payable on deposits	$ 186	$ 184
Certificates of deposit equal to or in excess of $250,000	$ 54,800	$ 61,200

Deposits - Schedule of Interest

Deposits - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deposits [Abstract]
NOW accounts	$ 1,569	$ 1,476	$ 1,011
Money market accounts	1,936	2,386	2,991
Savings accounts	756	445	252
Certificate of deposit accounts	749	922	896
Total interest expense	$ 5,010	$ 5,229	$ 5,150

Deposits - Schedule of Maturiti

Deposits - Schedule of Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deposits [Abstract]
2,017	$ 235,173
2,018	66,431
2,019	28,740
2,020	15,979
2,021	11,029
Thereafter	49
Certificates of deposit	$ 357,401	$ 420,333

Junior Subordinated Debentures

Junior Subordinated Debentures (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2007	May 01, 2014
Debt Instrument [Line Items]
Issued amount			$ 25,000
Debt term			30 years
Adjustable rate of trust preferred securities	2.56%
Junior subordinated debentures	$ 19,717	$ 19,424
Junior Subordinated Debentures
Debt Instrument [Line Items]
Weighted average rate (as a percent)	4.50%	4.29%
LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			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	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Assets Sold under Agreements to Repurchase [Line Items]
Maturity period	1 day
Repurchase agreement obligations	$ 22,104	$ 23,214
Residential mortgage-backed securities
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreement obligations	5,200	18,000
Commercial mortgage-backed securities
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreement obligations	14,000	$ 5,200
U.S. Treasury and U.S. Government-sponsored agencies
Assets Sold under Agreements to Repurchase [Line Items]
Repurchase agreement obligations	$ 2,900

Other Borrowings - FHLB Advance

Other Borrowings - FHLB Advances (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Credit facility with the FHLB	$ 549,000,000
FHLB Advances:
Balance at end of year	79,600,000	$ 0
Average balance during the year	13,349,000	1,777,000
Maximum month-end balance during the year	$ 79,600,000	$ 48,200,000
Weighted average rate during the year	0.55%	0.34%
Weighted average rate at end of year	0.81%	0.00%
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) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Advance line maintained to purchase federal funds	$ 90,000,000
Federal funds purchased	$ 0	$ 0

Other Borrowings - Credit Facil

Other Borrowings - Credit Facilities (Details) - Federal Reserve Bank Advances - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	$ 45,900,000
Borrowings outstanding	$ 0	$ 0

Employee Benefit Plans (Details

Employee Benefit Plans (Details)	May 01, 2014	Dec. 31, 2016USD ($)hourplan	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Number of retirement plans combined | plan		3
Percentage of employer contribution fully vested	100.00%	100.00%
Carrying value of obligation related to deferred compensation plan		$ 2,200,000	$ 1,700,000
Accrued Expenses and Other Liabilities | Washington Banking
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Carrying value of obligation		$ 1,100,000	1,200,000
401(k) Plan and Trust Salary Saving Plan
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Minimum service days required for eligibility under the plan		30 days
Employer matching contribution, percent of employee's gross pay		50.00%
Maximum annual contributions per employee, percent		3.00%
Defined contribution plan, employer matching contribution amount		$ 1,000,000	954,000	$ 852,000
401(k) Plan and Trust
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Minimum hours of service required for eligibility under the plan | hour		1,000
Minimum age required for eligibility under the plan		18 years
Discretionary contribution percent by employer under profit sharing plan				1.50%
Employer profit sharing contributions		$ 0	0	$ 475,000
Deferred Compensation Plan
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Compensation expense		540,000	570,000	343,000
Company's contributions		$ 518,000	$ 296,000	$ 414,000

Commitments and Contingencies -

Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Rental expense	$ 4.4	$ 4.6	$ 3.4
Renewal option, term	5 years

Commitments and Contingencie110

Commitments and Contingencies - Future Minimum Rental Payments (Details) $ in Thousands	Dec. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,017	$ 3,409
2,018	3,010
2,019	2,538
2,020	2,175
2,021	1,380
Thereafter	2,143
Future minimum annual rental commitments	$ 14,655

Commitments and Contingencie111

Commitments and Contingencies - Outstanding Commitments to Extend Credit (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Other Commitments [Line Items]
Total outstanding commitments	$ 626,013	$ 572,478
Commercial business
Other Commitments [Line Items]
Total outstanding commitments	380,483	363,615
Commercial business | Commercial and industrial
Other Commitments [Line Items]
Total outstanding commitments	368,308	350,227
Commercial business | Owner-occupied commercial real estate
Other Commitments [Line Items]
Total outstanding commitments	3,443	2,220
Commercial business | Non-owner occupied commercial real estate
Other Commitments [Line Items]
Total outstanding commitments	8,732	11,168
One-to-four family residential
Other Commitments [Line Items]
Total outstanding commitments	0	0
Real estate construction and land development
Other Commitments [Line Items]
Total outstanding commitments	101,125	74,550
Real estate construction and land development | One-to-four family residential
Other Commitments [Line Items]
Total outstanding commitments	23,004	21,778
Real estate construction and land development | Five or more family residential and commercial properties
Other Commitments [Line Items]
Total outstanding commitments	78,121	52,772
Consumer
Other Commitments [Line Items]
Total outstanding commitments	$ 144,405	$ 134,313

Commitments and Contingencie112

Commitments and Contingencies - Variable Interests (Details)	12 Months Ended
	Dec. 31, 2016USD ($)investmenttranch	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2034USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Variable Interest Entity [Line Items]
Number of equity investments in LIHTCs | investment	2
Investments in unconsolidated LIHTCs	$ 23,300,000	$ 4,100,000
Tax benefits	640,000	273,000	$ 70,000
Commitments	18,300,000	3,100,000
Impairment losses on LIHTC investments	0	0
Carrying value of NMTC	26,800,000	26,800,000
Investment income	740,000	$ 562,000	$ 0
Subsidiaries | Investment Tax Credit Carryforward
Variable Interest Entity [Line Items]
Qualified Equity Investments	$ 25,000,000
Number of tranches | tranch	3
Percentage of tranche required to fund to claim the entire tax credit	85.00%
Subsidiaries | Investment Tax Credit Carryforward | 2020
Variable Interest Entity [Line Items]
Gross tax credits related to the Company's CDEs	$ 9,800,000
Forecast
Variable Interest Entity [Line Items]
Qualified Affordable Housing Project Investments, future commitment				$ 2,400,000	$ 7,100,000	$ 8,800,000

Commitments and Contingencie113

Commitments and Contingencies - DOR Preliminary Findings (Details) $ in Millions	Dec. 31, 2016USD ($)
Business and Occupation Tax Audit
Loss Contingencies [Line Items]
Total amount of preliminary findings with back interest	$ 1.6

Derivative Financial Instrum114

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Not Designated as Hedging Instrument | Interest Rate Contract
Derivative [Line Items]
Notional Amounts - Interest rate swaps with customer	$ 102,709	$ 20,750
Notional Amounts - Interest rate swap with third party	102,709	20,750
Estimated Fair Value - Interest rate swaps with customer	1,099	543
Estimated Fair Value - Interest rate swap with third party	(1,099)	(543)
Prepaid Expenses and Other Assets
Derivative [Line Items]
Estimated Fair Value - Interest rate swaps with customer	2,800	543
Accrued Expenses and Other Liabilities
Derivative [Line Items]
Estimated Fair Value - Interest rate swap with third party	$ 2,800	$ 543

Stockholders' Equity - Reconcil

Stockholders' Equity - Reconciliation of Weighted Average Shares (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income:
Net income	$ 9,893	$ 11,039	$ 8,895	$ 9,091	$ 9,493	$ 9,492	$ 8,725	$ 9,779	$ 38,918	$ 37,489	$ 21,014
Less: Dividends and undistributed earnings allocated to participating securities									(358)	(328)	(163)
Net income allocated to common shareholders									$ 38,560	$ 37,161	$ 20,851
Basic:
Weighted average common shares outstanding (in shares)									29,963,365	30,057,558	25,641,229
Less: Restricted stock awards (in shares)									(285,063)	(267,943)	(210,690)
Total basic weighted average common shares outstanding (in shares)									29,678,302	29,789,615	25,430,539
Diluted:
Basic weighted average common shares outstanding (in shares)									29,678,302	29,789,615	25,430,539
Incremental shares from stock options (in shares)									13,851	22,725	46,750
Total diluted weighted average common shares outstanding (in shares)									29,692,153	29,812,340	25,477,289

Stockholders' Equity - Textuals

Stockholders' Equity - Textuals (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 23, 2014	May 01, 2014	Aug. 30, 2012	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Class of Stock [Line Items]
Anti-dilutive securities excluded from computation (in shares)						435.61	4,320	20,768
Common stock issued, fair value						$ 0	$ 0	$ 226,235
Washington Banking
Class of Stock [Line Items]
Number of shares issued in conjunction with the merger		14,000,178
Shares Related to Withholding Taxes on the Vesting of Restricted Stock
Class of Stock [Line Items]
Shares repurchased				5,267	388	29,512	22,300	48,304
Average price of shares repurchased (in usd per share)				$ 18.64	$ 17.63	$ 17.82	$ 17.09	$ 16.53
Common Stock
Class of Stock [Line Items]
Number of shares issued in conjunction with the merger								14,000,000
Common stock issued, fair value		$ 226,200						$ 226,235
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
Shares repurchased						704,975
Number of shares unpurchased				52,025		52,025

Stockholders' Equity - Dividend

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

Oct. 26, 2016

Jul. 20, 2016

Apr. 20, 2016

Jan. 27, 2016

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

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Subsequent Event [Line Items]

Declared

Oct. 26, 2016

Jul. 20, 2016

Apr. 20, 2016

Jan. 27, 2016

Oct. 21, 2015

Jul. 22, 2015

Apr. 22, 2015

Jan. 28, 2015

Oct. 23, 2014

Jul. 24, 2014

Mar. 27, 2014

Jan. 29, 2014

Cash Dividend per Share (in usd per share)

$ 0.12

$ 0.12

$ 0.12

$ 0.11

$ 0.11

$ 0.11

$ 0.11

$ 0.10

$ 0.09

$ 0.09

$ 0.08

$ 0.08

$ 0.37

$ 0.12

$ 0.12

$ 0.11

$ 0.21

$ 0.11

$ 0.11

$ 0.10

$ 0.72

$ 0.53

$ 0.5000

Record Date

Nov. 8, 2016

Aug. 4, 2016

May 5, 2016

Feb. 10, 2016

Nov. 4, 2015

Aug. 6, 2015

May 7, 2015

Feb. 10, 2015

Nov. 6, 2014

Aug. 7, 2014

Apr. 8, 2014

Feb. 10, 2014

Paid Date

Nov. 22, 2016

Aug. 18, 2016

May 19, 2016

Feb. 24, 2016

Nov. 18, 2015

Aug. 20, 2015

May 21, 2015

Feb. 24, 2015

Nov. 20, 2014

Aug. 21, 2014

Apr. 23, 2014

Feb. 24, 2014

Special Dividend

Subsequent Event [Line Items]

Declared

Oct. 26, 2016

Oct. 21, 2015

Nov. 11, 2014

Cash Dividend per Share (in usd per share)

$ 0.25

$ 0.10

$ 0.16

Record Date

Nov. 8, 2016

Nov. 4, 2015

Dec. 2, 2014

Paid Date

Nov. 22, 2016

Nov. 18, 2015

Dec. 12, 2014

Stockholders' Equity - Shares R

Stockholders' Equity - Shares Repurchased (Details) - $ / shares	12 Months Ended			26 Months Ended	52 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2016
Tenth Plan
Equity, Class of Treasury Stock [Line Items]
Repurchased shares	0	0	108,075		704,975
Stock repurchase average share price (in usd per share)	$ 0	$ 0	$ 16.88		$ 15.85
Eleventh Plan
Equity, Class of Treasury Stock [Line Items]
Repurchased shares	138,000	441,966	0	579,966
Stock repurchase average share price (in usd per share)	$ 17.16	$ 16.64	$ 0	$ 16.76

Accumulated Other Comprehens119

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance of AOCI at the beginning of the year	$ 469,970	$ 454,506	$ 215,762
Transfer of investment securities from held to maturity to available for sale, net of tax of $0, $334 and $0, respectively	0	618	0
Other comprehensive (loss) income	(5,165)	(819)	4,540
Balance of AOCI at the end of the year	481,763	469,970	454,506
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	2,559	3,567	(923)
Other comprehensive loss before reclassification		(559)	4,676
Amounts reclassified from AOCI for gain on sale of investment securities included in net income		(1,067)	(186)
Transfer of investment securities from held to maturity to available for sale, net of tax of $0, $334 and $0, respectively		618
Other comprehensive (loss) income		(1,008)	4,490
Balance of AOCI at the end of the year		2,559	3,567
Accretion of Other-than-Temporary-Impairment on Held to Maturity Securities [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance of AOCI at the beginning of the year	0	(189)	(239)
Other comprehensive loss before reclassification		108	50
Amounts reclassified from AOCI for gain on sale of investment securities included in net income		81	0
Transfer of investment securities from held to maturity to available for sale, net of tax of $0, $334 and $0, respectively		0
Other comprehensive (loss) income		189	50
Balance of AOCI at the end of the year		0	(189)
AOCI Attributable to Parent
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance of AOCI at the beginning of the year	2,559	3,378	(1,162)
Other comprehensive loss before reclassification	(4,311)	(451)	4,726
Amounts reclassified from AOCI for gain on sale of investment securities included in net income	(854)	(986)	(186)
Transfer of investment securities from held to maturity to available for sale, net of tax of $0, $334 and $0, respectively		618
Other comprehensive (loss) income	(5,165)	(819)	4,540
Balance of AOCI at the end of the year	$ (2,606)	$ 2,559	$ 3,378

Fair Value - Fair Value Measure

Fair Value - Fair Value Measurement on Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Assets
Investment securities available for sale	$ 794,645	$ 811,869
Recurring
Assets
Investment securities available for sale	794,645	811,869
Derivative assets - interest rate swaps	2,804	543
Liabilities
Derivative liabilities - interest rate swaps	2,804	543
Recurring | U.S. Treasury and U.S. Government-sponsored agencies
Assets
Investment securities available for sale	1,569	35,577
Recurring | Municipal securities
Assets
Investment securities available for sale	237,256	220,993
Recurring | Residential mortgage-backed securities
Assets
Investment securities available for sale	309,176	352,024
Recurring | Commercial mortgage-backed securities
Assets
Investment securities available for sale	208,318	179,011
Recurring | Collateralized loan obligations
Assets
Investment securities available for sale	10,478	15,097
Recurring | Corporate obligations
Assets
Investment securities available for sale	16,706	9,113
Recurring | Other securities
Assets
Investment securities available for sale	11,142	54
Recurring | Level 1
Assets
Investment securities available for sale	123	15,730
Derivative assets - interest rate swaps	0	0
Liabilities
Derivative liabilities - interest rate swaps	0	0
Recurring | Level 1 | U.S. Treasury and U.S. Government-sponsored agencies
Assets
Investment securities available for sale	0	15,676
Recurring | Level 1 | Municipal securities
Assets
Investment securities available for sale	0	0
Recurring | Level 1 | Residential mortgage-backed securities
Assets
Investment securities available for sale	0	0
Recurring | Level 1 | Commercial mortgage-backed securities
Assets
Investment securities available for sale	0	0
Recurring | Level 1 | Collateralized loan obligations
Assets
Investment securities available for sale	0	0
Recurring | Level 1 | Corporate obligations
Assets
Investment securities available for sale	0	0
Recurring | Level 1 | Other securities
Assets
Investment securities available for sale	123	54
Recurring | Level 2
Assets
Investment securities available for sale	794,522	796,139
Derivative assets - interest rate swaps	2,804	543
Liabilities
Derivative liabilities - interest rate swaps	2,804	543
Recurring | Level 2 | U.S. Treasury and U.S. Government-sponsored agencies
Assets
Investment securities available for sale	1,569	19,901
Recurring | Level 2 | Municipal securities
Assets
Investment securities available for sale	237,256	220,993
Recurring | Level 2 | Residential mortgage-backed securities
Assets
Investment securities available for sale	309,176	352,024
Recurring | Level 2 | Commercial mortgage-backed securities
Assets
Investment securities available for sale	208,318	179,011
Recurring | Level 2 | Collateralized loan obligations
Assets
Investment securities available for sale	10,478	15,097
Recurring | Level 2 | Corporate obligations
Assets
Investment securities available for sale	16,706	9,113
Recurring | Level 2 | Other securities
Assets
Investment securities available for sale	11,019	0
Recurring | Level 3
Assets
Investment securities available for sale	0	0
Derivative assets - interest rate swaps	0	0
Liabilities
Derivative liabilities - interest rate swaps	0	0
Recurring | Level 3 | U.S. Treasury and U.S. Government-sponsored agencies
Assets
Investment securities available for sale	0	0
Recurring | Level 3 | Municipal securities
Assets
Investment securities available for sale	0	0
Recurring | Level 3 | Residential mortgage-backed securities
Assets
Investment securities available for sale	0	0
Recurring | Level 3 | Commercial mortgage-backed securities
Assets
Investment securities available for sale	0	0
Recurring | Level 3 | Collateralized loan obligations
Assets
Investment securities available for sale	0	0
Recurring | Level 3 | Corporate obligations
Assets
Investment securities available for sale	0	0
Recurring | Level 3 | Other securities
Assets
Investment securities available for sale	$ 0	$ 0

Fair Value - Fair Value Meas121

Fair Value - Fair Value Measurement on Nonrecurring Basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	$ 0	$ 0
Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0	0
Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	2,675,811	2,441,531
Nonrecurring | Impaired Loans
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Basis	1,829	1,753
Impaired loans	1,634	1,719
Net Losses (Gains) Recorded in Earnings	(157)	35
Nonrecurring | Impaired Loans | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0	0
Nonrecurring | Impaired Loans | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0	0
Nonrecurring | Impaired Loans | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	1,634	$ 1,719
Nonrecurring | Impaired Loans | Commercial business
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Basis	985
Impaired loans	803
Net Losses (Gains) Recorded in Earnings	(140)
Nonrecurring | Impaired Loans | Commercial business | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Commercial business | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Commercial business | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	803
Nonrecurring | Impaired Loans | Commercial business | Commercial and industrial
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Basis	205
Impaired loans	200
Net Losses (Gains) Recorded in Earnings	5
Nonrecurring | Impaired Loans | Commercial business | Commercial and industrial | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Commercial business | Commercial and industrial | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Commercial business | Commercial and industrial | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	200
Nonrecurring | Impaired Loans | Commercial business | Owner-occupied commercial real estate
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Basis	780
Impaired loans	603
Net Losses (Gains) Recorded in Earnings	(145)
Nonrecurring | Impaired Loans | Commercial business | Owner-occupied commercial real estate | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Commercial business | Owner-occupied commercial real estate | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Commercial business | Owner-occupied commercial real estate | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	603
Nonrecurring | Impaired Loans | Real estate construction and land development
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Basis	828
Impaired loans	822
Net Losses (Gains) Recorded in Earnings	(23)
Nonrecurring | Impaired Loans | Real estate construction and land development | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Real estate construction and land development | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Real estate construction and land development | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	822
Nonrecurring | Impaired Loans | Real estate construction and land development | One-to-four family residential
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Basis	828
Impaired loans	822
Net Losses (Gains) Recorded in Earnings	(23)
Nonrecurring | Impaired Loans | Real estate construction and land development | One-to-four family residential | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Real estate construction and land development | One-to-four family residential | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Real estate construction and land development | One-to-four family residential | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	822
Nonrecurring | Impaired Loans | Consumer
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Basis	16
Impaired loans	9
Net Losses (Gains) Recorded in Earnings	6
Nonrecurring | Impaired Loans | Consumer | Level 1
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Consumer | Level 2
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	0
Nonrecurring | Impaired Loans | Consumer | Level 3
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Impaired loans	$ 9

Fair Value - Quantitative Infor

Fair Value - Quantitative Information, Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Level 3
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Fair Value	$ 2,675,811	$ 2,441,531
Impaired Loans | Nonrecurring
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Fair Value	1,634	1,719
Impaired Loans | Level 3 | Nonrecurring
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Fair Value	$ 1,634	$ 1,719
Valuation Technique(s)	Market approach	Market approach
Unobservable Input(s)	Adjustment for differences between the comparable sales	Adjustment for differences between the comparable sales
Impaired Loans | Level 3 | Nonrecurring | Minimum
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Range of Inputs; Weighted Average	(23.80%)	(30.00%)
Impaired Loans | Level 3 | Nonrecurring | Maximum
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Range of Inputs; Weighted Average	63.90%	63.90%
Impaired Loans | Level 3 | Nonrecurring | Weighted Average
Fair value measurements for financial instruments measured at fair value on a non-recurring basis
Range of Inputs; Weighted Average	20.40%	24.50%

Fair Value - Carrying Value and

Fair Value - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Level 1
Financial Assets:
Cash and cash equivalents	$ 103,745	$ 126,640
Other interest earning deposits		0
Investment securities available for sale	123	15,730
Loans held for sale	0	0
Total loans receivable, net of allowance for loan losses	0	0
Accrued interest receivable	3	5
Derivative assets - interest rate swaps	0	0
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	2,872,247	2,687,954
Certificate of deposit accounts	0	0
Total deposits	2,872,247	2,687,954
Federal Home Loan Bank advances	0
Securities sold under agreement to repurchase	22,104	23,214
Junior subordinated debentures	0	0
Accrued interest payable	44	50
Derivative liabilities - interest rate swaps	0	0
Level 2
Financial Assets:
Cash and cash equivalents	0	0
Other interest earning deposits		6,723
Investment securities available for sale	794,522	796,139
Loans held for sale	11,988	7,883
Total loans receivable, net of allowance for loan losses	0	0
Accrued interest receivable	3,472	3,335
Derivative assets - interest rate swaps	2,804	543
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	0	0
Certificate of deposit accounts	357,536	423,352
Total deposits	357,536	423,352
Federal Home Loan Bank advances	79,600
Securities sold under agreement to repurchase	0	0
Junior subordinated debentures	0	0
Accrued interest payable	142	133
Derivative liabilities - interest rate swaps	2,804	543
Level 3
Financial Assets:
Cash and cash equivalents	0	0
Other interest earning deposits		0
Investment securities available for sale	0	0
Loans held for sale	0	0
Total loans receivable, net of allowance for loan losses	2,675,811	2,441,531
Accrued interest receivable	7,450	7,129
Derivative assets - interest rate swaps	0	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
Federal Home Loan Bank advances	0
Securities sold under agreement to repurchase	0	0
Junior subordinated debentures	15,000	15,000
Accrued interest payable	29	24
Derivative liabilities - interest rate swaps	0	0
Carrying Value
Financial Assets:
Cash and cash equivalents	103,745	126,640
Other interest earning deposits		6,719
Investment securities available for sale	794,645	811,869
Federal Home Loan Bank stock	7,564	4,148
Loans held for sale	11,662	7,682
Total loans receivable, net of allowance for loan losses	2,609,666	2,372,296
Accrued interest receivable	10,925	10,469
Derivative assets - interest rate swaps	2,804	543
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	2,872,247	2,687,954
Certificate of deposit accounts	357,401	420,333
Total deposits	3,229,648	3,108,287
Federal Home Loan Bank advances	79,600
Securities sold under agreement to repurchase	22,104	23,214
Junior subordinated debentures	19,717	19,424
Accrued interest payable	215	207
Derivative liabilities - interest rate swaps	2,804	543
Fair Value
Financial Assets:
Cash and cash equivalents	103,745	126,640
Other interest earning deposits		6,723
Investment securities available for sale	794,645	811,869
Loans held for sale	11,988	7,883
Total loans receivable, net of allowance for loan losses	2,675,811	2,441,531
Accrued interest receivable	10,925	10,469
Derivative assets - interest rate swaps	2,804	543
Financial Liabilities:
Noninterest deposits, NOW accounts, money market accounts and savings accounts	2,872,247	2,687,954
Certificate of deposit accounts	357,536	423,352
Total deposits	3,229,783	3,111,306
Federal Home Loan Bank advances	79,600
Securities sold under agreement to repurchase	22,104	23,214
Junior subordinated debentures	15,000	15,000
Accrued interest payable	215	207
Derivative liabilities - interest rate swaps	$ 2,804	$ 543

Fair Value - Textuals (Details)

Fair Value - Textuals (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair value assets transfers between level 1 and level 2 transfer amount	$ 0	$ 0

Stock-Based Compensation - Text

Stock-Based Compensation - Textuals (Details) - USD ($)	Jul. 24, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares remain available for future issuances under stock-based compensation plans		1,152,935
Proceeds from exercise of stock options		$ 540,000	$ 751,000	$ 915,000
Restricted stock awards issued, net of forfeitures		2,000,000	1,600,000	1,400,000
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	0	20,000
Tax benefit		0	0	0
Intrinsic value of options exercised		177,000	299,000	459,000
Proceeds from exercise of stock options		$ 540,000	751,000	915,000
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		$ 1,800,000	1,600,000	1,400,000
Tax benefit		644,000	$ 546,000	$ 489,000
Unrecognized compensation expense related to non-vested stock option		$ 3,100,000
Weighted average period		2 years 2 months 1 day

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares
Outstanding at beginning of period (in shares)	79,408	156,407	194,482
Granted (in shares)	0	0	0
Exercised (in shares)	(37,713)	(61,529)	(84,189)
Forfeited or expired (in shares)	(4,200)	(15,470)	(44,134)
Outstanding at end of period (in shares)	37,495	79,408	156,407
Vested and expected to vest at end of period (in shares)	37,495
Exercisable at end of period (in shares)	37,495
Weighted-Average Exercise Price
Outstanding at beginning of period (in usd per share)	$ 14.19	$ 13.59	$ 15.82
Exercised (in usd per share)	14.31	12.15	10.86
Forfeited or expired (in usd per share)	16.80	16.27	22.76
Outstanding at end of period (in usd per share)	13.77	$ 14.19	$ 13.59
Vested and expected to vest at end of period (in usd per share)	13.77
Exercisable at end of period (in usd per share)	$ 13.77
Weighted-Average Remaining Contractual Term, Outstanding	2 years 9 months 21 days
Weighted-Average Remaining Contractual Term, Vested and expected to vest	2 years 9 months 21 days
Weighted-Average Remaining Contractual Term, Exercisable	2 years 9 months 21 days
Aggregate Intrinsic Value, Outstanding	$ 449
Aggregate Intrinsic Value, Vested and expected to vest	449
Aggregate Intrinsic Value, Exercisable	$ 449
Washington Banking
Shares
Granted (in shares)			90,248
Weighted-Average Exercise Price
Granted (in usd per share)			$ 10.72

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted and Unrestricted Stock Award Activity (Details) - Restricted and Unrestricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares
Nonvested at beginning of period (in shares)	264,521	238,669	202,939
Granted (in shares)	121,039	121,320	130,548
Vested (in shares)	(112,516)	(92,486)	(85,373)
Forfeited (in shares)	(11,748)	(2,982)	(9,445)
Nonvested at end of period (in shares)	261,296	264,521	238,669
Weighted-Average Grant Date Fair Value
Nonvested at beginning of period (in usd per share)	$ 15.92	$ 15.20	$ 14.29
Granted (in usd per share)	17.60	16.72	16.03
Vested (in usd per share)	15.62	15.12	14.37
Forfeited (in usd per share)	16.62	15.73	14.67
Nonvested at end of period (in usd per share)	$ 16.80	$ 15.92	$ 15.20

Income Taxes - Components of In

Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current tax expense									$ 6,885	$ 9,760	$ 9,992
Deferred tax expense (benefit)									6,918	4,058	(3,087)
Income tax expense	$ 3,362	$ 4,121	$ 3,169	$ 3,151	$ 2,647	$ 3,819	$ 3,358	$ 3,994	$ 13,803	$ 13,818	$ 6,905

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Effective Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal statutory tax rate (as a percent)									35.00%	35.00%	35.00%
Income tax expense at Federal statutory rate									$ 18,452	$ 17,957	$ 9,772
Tax-exempt instruments									(3,198)	(2,482)	(1,547)
Non-deductible acquisition costs									0	0	373
Federal tax credits and other benefits									(931)	(880)	(830)
Effects of BOLI									(511)	(474)	(159)
Tax resolutions									0	(300)	(728)
Other, net									(9)	(3)	24
Income tax expense	$ 3,362	$ 4,121	$ 3,169	$ 3,151	$ 2,647	$ 3,819	$ 3,358	$ 3,994	13,803	13,818	6,905
Amortization Method Qualified Affordable Housing Project Investments, Amortization									$ 523	$ 209	$ 53

Income Taxes - Deferred Income

Income Taxes - Deferred Income Tax Asset (Liability) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Allowance for loan losses	$ 4,739	$ 6,317
Accrued compensation	2,685	1,011
Stock compensation	910	890
Net unrealized losses charged to other comprehensive income on securities	1,388	0
Market discount on purchased loans	10,506	15,562
Foregone interest on nonaccrual loans	1,536	2,665
Net operating loss carryforward acquired from NCB	483	518
Difference in amounts reflected in financial statements and income tax basis of certain liabilities assumed in business combinations	37	89
Other deferred tax assets	1,446	1,503
Total deferred tax assets	23,730	28,555
Deferred tax liabilities:
Deferred loan fees, net	(3,736)	(3,489)
Premises and equipment	(1,660)	(1,853)
FHLB stock	(926)	(926)
Net unrealized gains charged to other comprehensive income on securities	0	(1,389)
Goodwill and other intangible assets	(740)	(1,021)
Federal tax credits	(1,314)	(876)
Junior subordinated debentures	(2,122)	(2,225)
Other deferred tax liabilities	(1,223)	(627)
Total deferred tax liabilities	(11,721)	(12,406)
Deferred income tax asset, net	$ 12,009	$ 16,149

Income Taxes - Textuals (Detail

Income Taxes - Textuals (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Net operating loss carryforward	$ 1,400,000	$ 1,500,000
Valuation allowance	0	$ 0
Taxable temporary difference	2,800,000
Deferred tax liability not recognized	$ 980,000

Regulatory Capital Requireme132

Regulatory Capital Requirements (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital Required for Capital Adequacy	$ 142,688	$ 129,673
Common Equity Tier One Capital Required for Capital Adequacy to Average Assets	4.50%	4.50%
Common Equity Tier One Capital	$ 362,350	$ 345,993
Common Equity Tier One Capital to Average Assets	11.40%	12.00%
Tier One Leverage Capital Required for Capital Adequacy	$ 148,144	$ 140,395
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier One Leverage Capital	$ 381,989	$ 365,232
Tier One Leverage Capital to Average Assets	10.30%	10.40%
Tier One Risk Based Capital Required for Capital Adequacy	$ 190,250	$ 172,897
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier One Risk Based Capital	$ 381,989	$ 365,232
Tier One Risk Based Capital to Risk Weighted Assets	12.00%	12.70%
Capital Required for Capital Adequacy	$ 253,667	$ 230,530
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Capital	$ 413,320	$ 395,148
Capital to Risk Weighted Assets	13.00%	13.70%
Capital conservation buffer, percentage	5.04%
Heritage Bank
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier One Capital Required for Capital Adequacy	$ 142,573	$ 129,633
Common Equity Tier One Capital Required for Capital Adequacy to Average Assets	4.50%	4.50%
Common Equity Tier One Capital Required to be Well Capitalized	$ 205,938	$ 187,248
Common Equity Tier One Capital Required to be Well Capitalized to Average Assets	6.50%	6.50%
Common Equity Tier One Capital	$ 369,915	$ 358,600
Common Equity Tier One Capital to Average Assets	11.70%	12.50%
Tier One Leverage Capital Required for Capital Adequacy	$ 148,024	$ 140,331
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 185,030	$ 175,414
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%
Tier One Leverage Capital	$ 369,915	$ 358,600
Tier One Leverage Capital to Average Assets	10.00%	10.20%
Tier One Risk Based Capital Required for Capital Adequacy	$ 190,097	$ 172,844
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Tier One Risk Based Capital Required to be Well Capitalized	$ 253,462	$ 230,459
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier One Risk Based Capital	$ 369,915	$ 358,600
Tier One Risk Based Capital to Risk Weighted Assets	11.70%	12.50%
Capital Required for Capital Adequacy	$ 253,462	$ 230,459
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Capital Required to be Well Capitalized	$ 316,828	$ 288,074
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Capital	$ 401,168	$ 388,516
Capital to Risk Weighted Assets	12.70%	13.50%
Capital conservation buffer, percentage	4.66%

Heritage Financial Corporati133

Heritage Financial Corporation (Parent Company Only) - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Total assets	$ 3,878,981	$ 3,650,792
LIABILITIES AND STOCKHOLDERS’ EQUITY
Junior subordinated debentures	19,717	19,424
Other liabilities	46,149	29,897
Total stockholders’ equity	481,763	469,970	$ 454,506	$ 215,762
Total liabilities and stockholders’ equity	3,878,981	3,650,792
Parent Company
ASSETS
Cash and interest earning deposits	10,568	6,722	$ 8,835	$ 2,645
Investment in subsidiary bank	489,388	482,749
Other assets	2,601	1,185
Total assets	502,557	490,656
LIABILITIES AND STOCKHOLDERS’ EQUITY
Junior subordinated debentures	19,717	19,424
Other liabilities	1,077	1,262
Total stockholders’ equity	481,763	469,970
Total liabilities and stockholders’ equity	$ 502,557	$ 490,656

Heritage Financial Corporati134

Heritage Financial Corporation (Parent Company Only) - Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Condensed Income Statements, Captions [Line Items]
Total interest income	$ 34,571	$ 35,114	$ 34,592	$ 34,235	$ 34,016	$ 33,484	$ 33,990	$ 34,249	$ 138,512	$ 135,739	$ 121,106
Junior subordinated debentures									880	827	458
Total interest expense	1,516	1,508	1,507	1,475	1,481	1,544	1,520	1,575	6,006	6,120	5,681
Net interest income	33,055	33,606	33,085	32,760	32,535	31,940	32,470	32,674	132,506	129,619	115,425
Other income									7,102	7,493	3,519
Total noninterest income	8,186	9,867	6,576	6,990	7,498	9,544	6,881	8,345	31,619	32,268	16,467
Professional services									3,606	3,536	6,185
Other expense									9,567	10,395	9,112
Total noninterest expense	26,809	26,818	26,477	26,369	26,769	27,322	26,079	26,038	106,473	106,208	99,379
Income before income taxes	13,255	15,160	12,064	12,242	12,140	13,311	12,083	13,773	52,721	51,307	27,919
Income tax expense	3,362	4,121	3,169	3,151	2,647	3,819	3,358	3,994	13,803	13,818	6,905
Net income	$ 9,893	$ 11,039	$ 8,895	$ 9,091	$ 9,493	$ 9,492	$ 8,725	$ 9,779	38,918	37,489	21,014
Parent Company
Condensed Income Statements, Captions [Line Items]
Interest and dividends on interest earning deposits and other assets									34	28	17
Total interest income									34	28	17
Junior subordinated debentures									880	827	458
Total interest expense									880	827	458
Net interest income									(846)	(799)	(441)
Dividends from subsidiary banks									30,000	22,000	66,300
Equity in (excess distributed) undistributed income of subsidiary banks									11,848	18,131	(40,737)
Other income									0	0	3
Total noninterest income									41,848	40,131	25,566
Professional services									385	263	2,943
Other expense									3,437	3,120	3,109
Total noninterest expense									3,822	3,383	6,052
Income before income taxes									37,180	35,949	19,073
Income tax expense									(1,738)	(1,540)	(1,941)
Net income									$ 38,918	$ 37,489	$ 21,014

Heritage Financial Corporati135

Heritage Financial Corporation (Parent Company Only) - Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 9,893	$ 11,039	$ 8,895	$ 9,091	$ 9,493	$ 9,492	$ 8,725	$ 9,779	$ 38,918	$ 37,489	$ 21,014
Adjustments to reconcile net income to net cash provided by operating activities:
Restricted stock compensation expense									1,840	1,555	1,395
Stock option compensation expense									0	0	20
Net cash provided by operating activities									53,980	51,397	51,336
Cash flows from investing activities:
Net cash used in investing activities									(252,926)	(216,621)	(121,649)
Cash flows from financing activities:
Common stock cash dividends paid									(21,569)	(15,916)	(12,892)
Proceeds from exercise of stock options									540	751	915
Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock									123	140	118
Repurchase of common stock									(2,894)	(7,736)	(2,601)
Net cash provided by financing activities									176,051	170,228	61,549
Net increase (decrease) in cash and cash equivalents									(22,895)	5,004	(8,764)
Parent Company
Cash flows from operating activities:
Net income									38,918	37,489	21,014
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in excess of (undistributed) distributed income of subsidiary bank									(11,848)	(18,131)	40,737
Net excess tax benefit from exercise of stock options and vesting of restricted stock									(123)	(140)	(118)
Restricted stock compensation expense									1,840	1,555	1,395
Stock option compensation expense									0	0	20
Net change in other assets and liabilities									(1,141)	(125)	817
Net cash provided by operating activities									27,646	20,648	63,865
Cash flows from investing activities:
Investment in subsidiary									0	0	(43,215)
Net cash used in investing activities									0	0	(43,215)
Cash flows from financing activities:
Common stock cash dividends paid									(21,569)	(15,916)	(12,892)
Proceeds from exercise of stock options									540	751	915
Net excess tax benefit (deficiencies) from exercise of stock options and vesting of restricted stock									123	140	118
Repurchase of common stock									(2,894)	(7,736)	(2,601)
Net cash provided by financing activities									(23,800)	(22,761)	(14,460)
Net increase (decrease) in cash and cash equivalents									3,846	(2,113)	6,190
Cash and cash equivalents at beginning of year				$ 6,722				$ 8,835	6,722	8,835	2,645
Cash and cash equivalents at end of year	$ 10,568				$ 6,722				$ 10,568	$ 6,722	$ 8,835

Selected Quarterly Financial136

Selected Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	Oct. 26, 2016	Jul. 20, 2016	Apr. 20, 2016	Jan. 27, 2016	Oct. 21, 2015	Jul. 22, 2015	Apr. 22, 2015	Jan. 28, 2015	Oct. 23, 2014	Jul. 24, 2014	Mar. 27, 2014	Jan. 29, 2014	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Interest income													$ 34,571	$ 35,114	$ 34,592	$ 34,235	$ 34,016	$ 33,484	$ 33,990	$ 34,249	$ 138,512	$ 135,739	$ 121,106
Interest expense													1,516	1,508	1,507	1,475	1,481	1,544	1,520	1,575	6,006	6,120	5,681
Net interest income													33,055	33,606	33,085	32,760	32,535	31,940	32,470	32,674	132,506	129,619	115,425
Provision for loan losses													1,177	1,495	1,120	1,139	1,124	851	1,189	1,208	4,931	4,372	4,594
Net interest income after provision for loan losses													31,878	32,111	31,965	31,621	31,411	31,089	31,281	31,466	127,575	125,247	110,831
Noninterest income													8,186	9,867	6,576	6,990	7,498	9,544	6,881	8,345	31,619	32,268	16,467
Noninterest expense													26,809	26,818	26,477	26,369	26,769	27,322	26,079	26,038	106,473	106,208	99,379
Income before income taxes													13,255	15,160	12,064	12,242	12,140	13,311	12,083	13,773	52,721	51,307	27,919
Income tax expense													3,362	4,121	3,169	3,151	2,647	3,819	3,358	3,994	13,803	13,818	6,905
Net income													$ 9,893	$ 11,039	$ 8,895	$ 9,091	$ 9,493	$ 9,492	$ 8,725	$ 9,779	$ 38,918	$ 37,489	$ 21,014
Basic earnings per common share (in usd per share)													$ 0.33	$ 0.37	$ 0.30	$ 0.30	$ 0.32	$ 0.32	$ 0.29	$ 0.32	$ 1.30	$ 1.25	$ 0.0082
Diluted earnings per common share (in usd per share)													0.33	0.37	0.30	0.30	0.32	0.32	0.29	0.32	1.30	1.25	0.0082
Cash dividends declared on common stock (in usd per share)	$ 0.12	$ 0.12	$ 0.12	$ 0.11	$ 0.11	$ 0.11	$ 0.11	$ 0.10	$ 0.09	$ 0.09	$ 0.08	$ 0.08	$ 0.37	$ 0.12	$ 0.12	$ 0.11	$ 0.21	$ 0.11	$ 0.11	$ 0.10	$ 0.72	$ 0.53	$ 0.5000