In a move set to reshape the Puget Sound banking landscape, Heritage Financial Corp., the parent company of Heritage Bank, announced it will acquire Olympic Bancorp Inc., the holding company of Kitsap Bank, in an all-stock transaction valued at nearly $177 million.
Deal Structure and Shareholder Impact
The agreement, revealed Thursday, outlines that Olympic shareholders will receive 45 shares of Heritage common stock for each share of Olympic stock under a fixed exchange ratio. With Heritage stock closing at $24.46 on Wednesday, the transaction’s value totals approximately $176.6 million.
Once finalized—expected in the first quarter of 2026—Olympic shareholders will own roughly 17.4% of the merged entity.
Kitsap’s Legacy Meets Heritage’s Growth
Founded in Port Orchard, Washington, Kitsap Bank operates 17 branches with $1.7 billion in total assets. Following the merger, Heritage’s total assets are projected to climb to $8.8 billion, giving the combined institution a stronger foothold in the region.
The merger is forecast to boost Heritage’s profitability and efficiency ratios while delivering about 18% earnings-per-share accretion after full cost synergies are realized.
