Heritage Financial Corporation Finalizes Acquisition of Olympic Bancorp Following Approval

Heritage Financial Corporation Completes Major Acquisition

Heritage Financial Corporation, a prominent bank holding company based in Olympia, Washington, has achieved a significant milestone in its growth strategy. On December 29, 2025, the company announced it successfully received regulatory approvals to finalize its acquisition of Olympic Bancorp. This marks a major step for Heritage, as it seeks to integrate Olympic into its operations along with the merger of Kitsap Bank, creating a more robust banking entity in the region.

In a statement from Bryan McDonald, President and CEO of Heritage, he expressed elation over securing the necessary approvals, viewing it as a crucial step in the merger process. McDonald highlighted the alignment between Kitsap Bank's relationship banking approach and Heritage's strategies, indicating that combining forces will significantly enhance banking services for communities throughout the Puget Sound region.

The Merger's Impact on Local Communities

The merger signifies not only a structural shift within the organization but also an opportunity to better serve the needs of local communities. Heritage Bank, which is known for offering a variety of financial services including commercial banking, has a significant presence with 51 branches across Washington, Oregon, and Idaho. With the addition of Olympic Bancorp and Kitsap Bank, Heritage is poised to expand its customer base and service offerings further.

The new banking platform aims to elevate community engagement and foster long-term relationships with customers. By merging with Olympic Bancorp, Heritage is not just looking to expand its physical footprint, but also to enhance its product and service offerings, creating a more comprehensive and supportive financial institution for its clients.

Timeline and Future Prospects

The merger is slated to close on or around January 31, 2026, pending typical closing conditions, including the necessary shareholder approval from both Heritage and Olympic Bancorp shareholders. This timeline indicates a swift progression from announcement to completion, reflecting the urgency and commitment of Heritage to embark on this strategic journey.

Looking ahead, the integration process will focus on ensuring a seamless transition for customers of both entities. Heritage Bank is recognized for its commitment to customer service, and it is expected that the newly formed entity will uphold this standard, enhancing customer experiences across the board.

As the Puget Sound banking landscape undergoes these changes, stakeholders watch closely to see how the merger will influence competition and customer relations in the region. The strengthening of Heritage's position in the banking sector may lead to new innovations in banking practices and customer outreach initiatives, ultimately benefiting local economies.

About Heritage Financial Corporation

Heritage Financial Corporation operates Heritage Bank, a full-service commercial bank dedicated to meeting the financial needs of individuals and businesses. The bank prides itself on its community involvement and supportive banking practices geared towards local economic growth. Heritage’s stock is listed on the NASDAQ under the symbol 'HFWA', and more information about its operations can be found on its website.

With the completion of this merger, Heritage Financial Corporation is well positioned to not only lead but also innovate in the regional banking sector, marking a new chapter in its expansion strategy.