What are any or all of the answers to these questions:

Use Heritage Financial Corporation (HFC) 2012 annual report to answer the following questions:

1. What are the types of deposits that HFC uses to obtain most of its funds?

2. What are the main uses of funds by HFC?

3. Summarize any statements made by HFC in its annual report about how recent or potential regulations will affect its performance.

4. Assess HFC's balance sheet as well as any comments in its annual report about the gap between its rate-sensitive assets and its rate-sensitive liabilities. Does HFC have a positive gap or a negative gap?

5. What methods does HFC use to reduce its gap and therefore reduce its exposure to interest rate risk?

6. Summarize any statements made by HFC in its annual report about how it attempts to limit its exposure to credit risk on the loans it provides.

7. What is HFC's interest income as a percentage of its total assets?

8. What is HFC's interest expenses as a percentage of its total assets?

9. What is HFC's net interest margin?

10. What is HFC's noninterest income as a percentage of its total assets?

11. What is HFC's noninterest expenses (excluding the addition to loan loss reserves) as a percentage of its total assets?

12. What is HFC's addition to loan loss reserves as a percentage of its total assets?

13. What is HFC's return on assets? What is HFC's return on equity?

14. Identify HFC's income statement items that would be affected if interest rates rise in the next year, and explain how they would be affected.

15. Identify HFC's income statement items that would be affected if U.S. economic conditions deteriorate, and explain how they would be affected.