Heritage Financial Corp.’s board of directors has authorized the repurchase of up to 5 percent of the company’s outstanding shares, or about 782,000 shares.

The purchases will take place over the next 12 months. 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. “Current market conditions present us with a unique opportunity to repurchase our shares at attractive prices that will benefit all of our shareholders,” said Brian Vance, president and CEO. “Considering our strong liquidity position and capital levels, well in excess of regulatory requirements, we believe share repurchases are an appropriate strategy at this time.”

As of June 30, 2011, the company had consolidated total assets of $1.34 billion and shareholder’s equity of $205.7 million with tangible common equity to tangible assets at 14.4 percent.

Heritage Financial is a bank holding company headquartered in Olympia. It operates two community banks, Heritage Bank and Central Valley Bank.