Heritage Financial announced it has completed its previously announced acquisition of Olympic Bancorp, Inc., with the merger becoming effective January 31, 2026. As part of the transaction, Olympic merged into Heritage, and Kitsap Bank merged into Heritage Bank, expanding Heritage’s footprint and adding branches that will continue operating under the Kitsap Bank name.
The company said it will issue an aggregate of 7,167,600 shares of Heritage common stock in connection with the merger. Under the merger agreement, shareholders of Olympic immediately prior to the closing are set to receive 45.0 shares of Heritage common stock for each Olympic share they held, with cash paid in lieu of fractional shares. Heritage said Olympic shareholders will receive instructions on how to exchange their Olympic shares for Heritage shares.
Heritage is an Olympia-based bank holding company whose sole wholly owned banking subsidiary is Heritage Bank, a full-service commercial bank with a branch network across Washington, Oregon, and Idaho. The bank also operates under the Whidbey Island Bank name on Whidbey Island and will use the Kitsap Bank name for the branches acquired in the transaction. Heritage’s common stock trades on the NASDAQ Global Select Market under the ticker symbol HFWA.
KEY QUOTE:
“We welcome Kitsap Bank’s customers and employees to Heritage Bank and look forward to continuing to provide them with excellent service and quality products.”
Bryan McDonald, President and CEO, Heritage Financial Corporation
