Heritage Financial Corporation Receives Regulatory Approval to Acquire Olympic Bancorp, Inc.

Heritage Financial (Nasdaq: HFWA) has received all required regulatory approvals to complete its previously announced merger to acquire Olympic Bancorp and to merge Kitsap Bank into Heritage Bank.

Rhea-AI Summary

Heritage Financial (Nasdaq: HFWA) has received all required regulatory approvals to complete its previously announced merger to acquire Olympic Bancorp and to merge Kitsap Bank into Heritage Bank.

The company expects the transaction to close on or about January 31, 2026, subject to customary closing conditions and shareholder approval by both Heritage and Olympic shareholders. Heritage operates a network of 51 banking offices across Washington, Oregon, and Idaho.

Positive

• Regulatory approvals received to proceed with the merger
• Expected close date of on or about Jan 31, 2026
• Combines Kitsap Bank into Heritage Bank to expand regional platform

Negative

• Closing remains subject to shareholder approval by both Heritage and Olympic
• Transaction still contingent on customary closing conditions
• Deal financial terms not disclosed in the announcement

Argus Dec 29 session

-0.45% close to close Open Argus

Details

News Market Reaction – HFWA

On Dec 29, the day this news came out, HFWA closed 0.45% below the previous close.

Data tracked by StockTitan Argus for the Dec 29 session.

Market Context

This announcement confirms that all required regulatory approvals for the Olympic Bancorp merger hav...

Analysis

This announcement confirms that all required regulatory approvals for the Olympic Bancorp merger have been obtained, moving the transaction closer to the targeted Jan 31, 2026 closing, pending shareholder votes. It builds on the initial deal terms disclosed on Sep 25, 2025 and subsequent integration communications in recent 425 filings. Investors may monitor upcoming shareholder meetings, closing timing, and future filings for updates on integration progress and financial impacts.

Key Figures

Expected closing date: January 31, 2026 Current price: $24.45 52-week high: $26.09 +5 more

Expected closing date

January 31, 2026

Targeted merger close date, subject to shareholder approvals

Current price

$24.45

Pre-news trading level on Nasdaq for HFWA

52-week high

$26.09

Upper end of 52-week trading range before this news

52-week low

$19.84

Lower end of 52-week trading range before this news

Market cap

$832,958,783

Equity value prior to regulatory approval announcement

Branch offices

51 banking offices

Heritage Bank locations across Washington, Oregon, and Idaho

Regulatory approvals

All required approvals

Approvals needed to complete the Olympic Bancorp merger

Ownership stake (historical)

17.4% ownership

Olympic shareholders’ stake in combined company from Sep 25, 2025 deal terms

Historical Context

5 past events · Latest: Dec 19

5 events

1. Dec 19

   Board appointment

   24h Move

   -3.6%

   New director Scott T. Allan appointed to Heritage and bank boards.

2. Oct 23

   Earnings & dividend

   24h Move

   +0.3%

   Stronger Q3 2025 earnings and $0.24 per share cash dividend.

3. Oct 02

   Earnings call notice

   24h Move

   -0.5%

   Announcement of Q3 2025 earnings release date and conference call.

4. Sep 25

   Olympic acquisition

   24h Move

   +1.0%

   All-stock deal to acquire Olympic Bancorp and expand regional footprint.

5. Jul 24

   Q2 results

   24h Move

   -6.8%

   Q2 2025 earnings pressured by $6.9M pre-tax loss on security sales.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

regulatory approvals, merger, bank holding company

3 terms

regulatory approvals regulatory

"it has received all regulatory approvals required to complete the previously announced merger"

Regulatory approvals are official permissions from government agencies that a company needs before launching a new product, service, or business activity. They matter because without this approval, the company might not be allowed to operate legally or sell its products, similar to how a driver needs a license to legally drive a car.

merger financial

"complete the previously announced merger (the "Merger") of Olympic Bancorp, Inc."

A merger is when two companies combine into a single business, with ownership and control reorganized so they operate as one entity. For investors it matters because mergers can change the value and risk of holdings—shares may be exchanged, diluted, or rise if the combined company saves costs or gains market power, and the deal often depends on regulatory approval and successful integration like two households joining resources and routines.

bank holding company financial

"Heritage Financial Corporation is an Olympia-based bank holding company with Heritage Bank"

A bank holding company is a parent corporation that owns one or more banks and other financial businesses, like a household that controls several shops under the same roof. Investors care because this structure determines how the business is regulated, how it raises capital, pays dividends, and absorbs losses; it can make a banking group safer or riskier and affects the value and liquidity of the company’s shares.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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OLYMPIA, Wash., Dec. 29, 2025 /PRNewswire/ -- Heritage Financial Corporation ("Heritage") (Nasdaq: HFWA) announced today that it has received all regulatory approvals required to complete the previously announced merger (the "Merger") of Olympic Bancorp, Inc. ("Olympic") with and into Heritage, and the merger of Kitsap Bank with and into Heritage Bank.

Heritage expects the transaction to close on or about January 31, 2026, subject to the satisfaction of customary closing conditions, including the receipt of shareholder approval by the shareholders of both Heritage and Olympic.

"We are pleased to have received the necessary regulatory approvals as this is an important step towards integrating a successful merger," said Bryan McDonald, Heritage President and CEO. "Kitsap Bank's relationship banking strategy nicely compliments Heritage's strategies. This combination will create a more robust banking platform for communities across the Puget Sound region." 

About Heritage
Heritage Financial Corporation is an Olympia-based bank holding company with Heritage Bank, a full-service commercial bank, as its sole wholly-owned banking subsidiary. Heritage Bank has a branching network of 51 banking offices in Washington, Oregon, and Idaho. Heritage Bank also does business under the Whidbey Island Bank name on Whidbey Island. Heritage's stock is traded on the NASDAQ Global Select Market under the symbol "HFWA." More information about Heritage Financial Corporation can be found on its website at www.hf-wa.com and more information about Heritage Bank can be found on its website at www.heritagebanknw.com.

View original content:https://www.prnewswire.com/news-releases/heritage-financial-corporation-receives-regulatory-approval-to-acquire-olympic-bancorp-inc-302650281.html

SOURCE Heritage Financial Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

When will Heritage Financial (HFWA) complete the Olympic Bancorp merger?

Heritage expects the transaction to close on or about January 31, 2026, subject to closing conditions and shareholder approval.

Has Heritage Financial (HFWA) received regulatory approval for the Olympic Bancorp acquisition?

Yes. Heritage announced it has received all required regulatory approvals to complete the merger.

What approvals are still needed for HFWA to close the Olympic Bancorp merger?

The closing remains subject to shareholder approval by both Heritage and Olympic and customary closing conditions.

How will the Olympic Bancorp deal affect Heritage Bank's branch network (HFWA)?

The announcement says the combination will create a more robust banking platform across the Puget Sound region, and Heritage currently operates 51 banking offices.

Where can investors find more information about Heritage Financial (HFWA)?

Investors can visit Heritage Financial's website at www.hf-wa.com and Heritage Bank's site at www.heritagebanknw.com.