#United States #Olympia #Merger #Heritage Bank #Olympic Bancorp

Heritage Financial Corporation Completes Acquisition of Olympic Bancorp

On February 2, 2026, Heritage Financial Corporation (traded on Nasdaq as HFWA) announced that it has finalized its acquisition of Olympic Bancorp, Inc. The completion of this merger, effective January 31, 2026, marks a significant milestone for both institutions, as they aim to enhance their banking services and customer reach.

The merger entails Olympic Bancorp being integrated into Heritage Financial, alongside the merger of Kitsap Bank, which will also operate under the Heritage Bank brand. Bryan McDonald, President and CEO of Heritage Financial Corporation, expressed enthusiasm for this transition, stating, "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."

As a part of this strategic decision, Heritage has agreed to issue a total of 7,167,600 shares of its common stock in exchange for the shareholders of Olympic Bancorp. Each shareholder will receive 45.0 shares of Heritage's common stock for every share they hold of Olympic, and those with fractional shares will receive cash substitutions. Information regarding the share exchange process will be communicated to Olympic shareholders shortly.

Heritage Financial Corporation, based in Olympia, Washington, has a robust framework with Heritage Bank as its main subsidiary. This bank operates a comprehensive branch network across Washington, Oregon, and Idaho. With the merger, Heritage Bank is also acquiring additional branches under the Kitsap Bank name, further broadening its footprint in the Pacific Northwest. Customers will notice a seamless transition as both banks blend their services and resources while maintaining their commitment to quality customer service.

This merger not only expands Heritage's operational capabilities but also allows both institutions to leverage their strengths for better financial products and services. McDonald highlighted the anticipation around the merger, emphasizing that they are well-prepared to meet the evolving needs of their clientele and uphold a high standard of service.

However, like any merger, there are potential risks involved. As stipulated in the cautionary notes shared by Heritage, future outcomes tied to the merger may not unfold as expected due to various factors. These include potential delays in operation integration, the challenge of retaining key personnel, or alterations in business conditions that could influence the projected benefits of the merger. Understanding these risks is crucial for shareholders and customers alike as they navigate this new chapter.

Moreover, Heritage has pledged ongoing communication with both current and new customers to ensure transparency throughout the integration process. The focus will remain on delivering exceptional banking experiences, fostering lasting relationships within the communities served by Heritage Bank.

In summary, the merger between Heritage Financial Corporation and Olympic Bancorp is a significant development that aims to enhance the customer experience by broadening service offerings and operational frameworks. Stakeholders can look forward to the benefits that this merger promises to deliver in the coming months and years.

For more details about the merger and subsequent updates, individuals are encouraged to visit Heritage Financial's official website and stay informed through their official communiqués. This strategic move is not only a leap forward for the companies involved but also an exciting development for their customers who will benefit from a more expansive range of services and support.

Contact Information

For further inquiries or information, interested parties can reach Bryan D. McDonald, President and Chief Executive Officer at Heritage Financial Corporation at (360) 943-1500.