Heritage Financial (NASDAQ:HFWA) announced Monday that it has finalized its acquisition of Olympic Bancorp, a move that creates one of the most significant community banking platforms in the Pacific Northwest.
Effective January 31, 2026, the all-stock transaction integrates Kitsap Bank into Heritage Bank, bringing the combined entity’s total assets to approximately $8.8 billion.
Under the terms of the agreement, Heritage issued 7,167,600 shares of common stock to complete the merger.
Olympic shareholders received a fixed exchange ratio of 45 shares of Heritage common stock for each Olympic share held.
The deal, valued at approximately $176.6 million at the time of its 2025 announcement, is expected to be roughly 18% accretive to Heritage’s earnings per share once full operational efficiencies are realized by 2027.
The acquisition is a strategic geographic play, securing Heritage’s position as the second-largest community bank on the Kitsap and Olympic Peninsulas with a 14% deposit market share.
To preserve local brand equity, Heritage will continue to operate certain branches under the "Kitsap Bank" name, alongside its existing "Whidbey Island Bank" and "Heritage Bank" brands across Washington, Oregon, and Idaho.