Olympia, Wash.-based Heritage Financial Corporation will acquire Olympic Bancorp next year for $176.6 million in stock..The deal is expected to close in the second quarter of 2026. Heritage Financial Corporation is the parent company of Heritage Bank. Olympic Bancorp is the holding company for Port Orchard, Wash.-based Kitsap Bank. As of June 30, Kitsap Bank has 17 branches and $1.7 billion in assets, $941.6 million in loans and $1.4 billion in deposits. Following the deal, the combined financial institution will have $8.8 billion in total assets, $5.7 billion in loans and $7.2 billion in deposits. Heritage will become the second-largest community bank in the Kitsap and Olympic Peninsulas with a 14 percent deposit market share.Heritage expects to keep the Kitsap Bank name in certain peninsula markets.“This combination with Heritage will create a more robust banking platform for communities across the Puget Sound region,” said Bryan McDonald, president and CEO of Heritage Financial and Heritage Bank.Great Falls, Mont.-based D.A. Davidson & Co. was financial adviser and provided a fairness opinion to Heritage, and Chicago-based Barack Ferrazzano Kirschbaum & Nagelberg was legal counsel. Minneapolis-based Piper Sandler & Co. was financial adviser and provided a fairness opinion to Olympic, while Denver-based Otteson Shapiro LLP was legal counsel.
