Heritage Financial Corporation to Acquire Olympic Bancorp, Inc.
Heritage Financial Corporation (Nasdaq: HFWA) has announced the acquisition of Olympic Bancorp, Inc. (parent of Kitsap Bank) in an all-stock transaction valued at $176.6 million. Under the agreement, Olympic shareholders will receive 45.0 shares of Heritage common stock for each Olympic share, representing approximately 17.4% ownership in the combined company.
The merger will create a stronger banking platform with combined assets of $8.8 billion, total loans of $5.7 billion, and deposits of $7.2 billion. Post-merger, Heritage will become the second-largest community bank in the Kitsap and Olympic Peninsulas, commanding a 14% deposit market share. The transaction is expected to close in Q1 2026, subject to regulatory and shareholder approvals.
Heritage anticipates an 18% earnings per share accretion following full realization of operating efficiencies. The combined entity will continue operating under the Kitsap Bank name in certain markets on the Kitsap and Olympic peninsulas.
Heritage Financial Corporation (Nasdaq: HFWA) ha annunciato l'acquisizione di Olympic Bancorp, Inc. (società madre di Kitsap Bank) in una operazione interamente azionaria valutata 176,6 milioni di dollari. Secondo l'accordo, gli azionisti di Olympic riceveranno 45 azioni ordinarie di Heritage per ogni azione Olympic, pari a circa il 17,4% di proprietà nella società combinata.
La fusione creerà una piattaforma bancaria più solida con asset di 8,8 miliardi, prestiti totali di 5,7 miliardi e depositi di 7,2 miliardi. Dopo la fusione, Heritage sarà la seconda banca comunitaria più grande delle penisole Kitsap e Olympic, con una quota di mercato sui depositi pari al 14%. L'operazione dovrebbe chiudersi nel Q1 2026, soggetta alle approvazioni regolamentari e degli azionisti.
Heritage prevede un'accrescimento degli utili per azione dell'18% una volta realizzate pienamente le sinergie operative. L'entità combinata continuerà a operare con il nome Kitsap Bank in alcuni mercati delle penisole Kitsap e Olympic.
Heritage Financial Corporation (Nasdaq: HFWA) ha anunciado la adquisición de Olympic Bancorp, Inc. (matriz de Kitsap Bank) en una operación 100% en acciones valorada en 176,6 millones de dólares. Según el acuerdo, los accionistas de Olympic recibirán 45 acciones ordinarias de Heritage por cada acción de Olympic, representando aproximadamente un 17,4% de propiedad en la empresa combinada.
La fusión creará una plataforma bancaria más sólida con activos de 8,8 mil millones, préstamos totales de 5,7 mil millones y depósitos de 7,2 mil millones. Después de la fusión, Heritage será el segundo banco comunitario más grande de las penínsulas de Kitsap y Olympic, con una cuota de mercado de depósitos del 14%. Se espera que la operación se cierre en el primer trimestre de 2026, sujeto a aprobaciones regulatorias y de los accionistas.
Heritage anticipa una revalorización de las ganancias por acción del 18% tras la plena realización de las eficiencias operativas. La entidad combinada continuará operando bajo el nombre Kitsap Bank en ciertos mercados de las penínsulas de Kitsap y Olympic.
Heritage Financial Corporation (Nasdaq: HFWA)는 Kitsap Bank의 모회사인 Olympic Bancorp, Inc.를 순수 주식 거래로 인수했다고 발표했습니다. 협상 가치는 176.6백만 달러이며, 합의에 따르면 Olympic 주주들은 합병 후 회사의 17.4% 지분을 차지하는 Heritage 보통주 45주를 주당 받게 됩니다.
이번 합병은 88억 달러의 자산, 57억 달러의 총 대출, 72억 달러의 예금을 가진 더 강력한 은행 플랫폼을 창출합니다. 합병 후 Heritage는 Kitsap 및 Olympic 반도에서 두 번째로 큰 커뮤니티 뱅크가 되며 예금 시장 점유율은 14%입니다. 거래는 규제 당국과 주주 승인을 조건으로 2026년 1분기에 마감될 예정입니다.
운영 효율성의 완전 실현 이후 주당순이익(EPS)이 18% 증가할 것으로 Heritage는 기대합니다. 합병 법인은 Kitsap 반도와 Olympic 반도 일부 시장에서 Kitsap Bank 이름으로 계속 운영될 예정입니다.
Heritage Financial Corporation (Nasdaq: HFWA) a annoncé l'acquisition d'
La fusion créera une plateforme bancaire plus solide avec 8,8 milliards de dollars d'actifs, des prêts totaux de 5,7 milliards et des dépôts de 7,2 milliards. Après la fusion, Heritage deviendra la deuxième banque communautaire des péninsules Kitsap et Olympic, détenant une part de marché des dépôts de 14%. La transaction devrait être finalisée au t1 2026, sous réserve des approbations réglementaires et des actionnaires.
Heritage prévoit une accrétion EPS de 18% après la pleine réalisation des synergies opérationnelles. L'entité fusionnée continuera d'opérer sous le nom Kitsap Bank dans certains marchés des péninsules Kitsap et Olympic.
Heritage Financial Corporation (Nasdaq: HFWA) hat die Übernahme von Olympic Bancorp, Inc. (Mutter von Kitsap Bank) in einer rein aktienbasierten Transaktion im Wert von 176,6 Millionen USD bekannt gegeben. Gemäß der Vereinbarung erhalten die Aktionäre von Olympic 45 Heritage-Stammaktien pro Aktie von Olympic, was etwa 17,4% Eigentum an der fusionierten Gesellschaft bedeutet.
Die Fusion schafft eine stärkere Bankenplattform mit Aktiva von 8,8 Milliarden USD, 41>2? Darlehen von 5,7 Milliarden USD und Einlagen von 7,2 Milliarden USD. Nach der Fusion wird Heritage zur zweitgrößten Community Bank auf den Kitsap- und Olympic-Halbinseln, mit einem Einlagenmarktanteil von 14%. Die Transaktion soll im Q1 2026 abgeschlossen werden, vorbehaltlich behördlicher und Aktionärsgenehmigungen.
Heritage geht von einer EPS-Akzession von 18% nach vollständiger Realisierung der operativen Effizienz aus. Die fusionierte Einheit wird in bestimmten Märkten der Kitsap- und Olympic-Halbinsel weiterhin unter dem Namen Kitsap Bank operieren.
Heritage Financial Corporation (Nasdaq: HFWA) أعلنت عن استحواذ Olympic Bancorp, Inc. (الشركة الأم لبنك Kitsap) في صفقة تمت بالكامل بالأسهم وتقدر قيمتها بـ 176.6 مليون دولار. وفقاً للاتفاق، سيحصل مساهمو Olympic على 45 سهماً من Heritage مقابل كل سهم Olympic، ما يمثل نحو 17.4% من الملكية في الشركة المدمجة.
ستنشئ الصفقة منصة مصرفية أقوى بوجود أصول مجمّعة تبلغ 8.8 مليار دولار، وإجمالي القروض 5.7 مليار دولار، وودائع بقيمة 7.2 مليار دولار. بعد الاندماج، ستصبح Heritage ثاني أكبر بنك مجتمعي في شبه جزيرتي Kitsap وOlympic، بوجود حصة سوقية للودائع تبلغ 14%. من المتوقع إغلاق الصفقة في الربع الأول من عام 2026، رهناً بموافقات الجهات التنظيمية وموافقات المساهمين. وتتوقع Heritage زيادة ربحية السهم 8%؟ لا، 18% بعد تحقيق الفعالية التشغيلية كاملة. ستواصل الكيان المدمج العمل باسم Kitsap Bank في بعض الأسواق في شبه جزيرتي Kitsap وOlympic.
Heritage Financial Corporation (纳斯达克：HFWA) 宣布以全股票交易方式收购 Olympic Bancorp, Inc.（Kitsap Bank 的母公司），交易价值为 1.766亿美元。根据协议，Olympic 股东将按每股 Olympic 获得 45 股 Heritage 普通股，相当于合并后公司约 17.4% 的所有权。
此次合并将带来更强的银行平台，合并资产为 88 亿美元，总贷款为 57 亿美元，存款为 72 亿美元。并购完成后，Heritage 将成为 Kitsap 与 Olympic 半岛地区的第二大社区银行，存款市场份额为 14%。交易预计在 2026 年第一季度 完成，需获得监管机构和股东的批准。Heritage 预计在充分实现运营效率后，每股收益将增长 18%。合并实体将在 Kitsap 与 Olympic 半岛的部分市场继续以 Kitsap Bank 的名称运营。
- 18% earnings per share accretion expected post-merger
- Combined entity will have substantial $8.8 billion in total assets
- Will become second-largest community bank in target region with 14% market share
- Acquisition adds $1.7 billion in assets and 17 banking offices
- Enhances profitability and efficiency ratios while improving balance sheet liquidity
- 17.4% dilution for existing Heritage shareholders
- Stock-based transaction value subject to fluctuation until closing
- Integration risks and potential operational challenges during merger
- Regulatory and shareholder approval requirements could delay closing
Insights
Heritage's acquisition of Olympic creates Washington's second-largest community bank in the Kitsap region, boosting assets to $8.8B with 18% EPS accretion.
Heritage Financial Corporation's all-stock acquisition of Olympic Bancorp (Kitsap Bank) represents a $176.6 million transaction that will significantly enhance Heritage's market position in Washington state. The combined entity will reach $8.8 billion in assets, $5.7 billion in loans, and $7.2 billion in deposits, creating the second-largest community bank serving the Kitsap and Olympic Peninsulas with 14% deposit market share.
This transaction exemplifies the ongoing consolidation trend among regional banks seeking scale advantages. The acquisition price reflects a premium consistent with healthy community bank valuations, with Olympic shareholders receiving 45 Heritage shares for each Olympic share. The fixed exchange ratio structure shifts market risk to Olympic shareholders until closing, as the final valuation will fluctuate with Heritage's stock price.
The strategic rationale centers on three key value drivers: geographic complementarity, financial synergies, and deposit franchise quality. Heritage gains immediate scale in complementary markets while projecting 18% earnings per share accretion following full integration. Olympic's high-quality deposit base is particularly valuable in today's rate environment, as these core deposits typically have lower funding costs and greater stability.
The operational approach indicates sensitivity to community banking dynamics, with Heritage planning to retain the Kitsap Bank name in certain markets - a smart strategy to preserve customer relationships and brand equity. The projected Q1 2026 closing timeline allows adequate preparation for integration, though executing cleanly will be crucial to achieving the projected financial benefits while managing customer and employee retention.
From a market positioning perspective, this acquisition transforms Heritage from a mid-sized regional player into a more substantial banking franchise with enhanced competitive capabilities throughout the Puget Sound region, while maintaining its community banking identity.
Strategic Expansion for Heritage Bank in the Puget Sound Region
Kitsap Bank, established in 1908, is a privately owned community bank headquartered in
Highlights of the Announced Transaction
- Expected to meaningfully enhance Heritage's pro forma financial metrics, improving profitability and efficiency ratios while also improving balance sheet liquidity.
- Natural geographic extension builds density and scale in the combined market footprint. After closing the transaction, Heritage will be the second largest community bank serving the
Kitsap and Olympic Peninsulas with approximately14% combined deposit market share. - Heritage expects to realize approximately
18% earnings per share accretion following full realization of operating efficiencies.
"Kitsap Bank is one of the longest tenured banks in
Steve Politakis, Chief Executive Officer of Olympic and Kitsap Bank, added, "We are proud of the team we have assembled and the organization we have built together. Kitsap Bank has always operated with a community-first mindset, building strong, trust-based relationships with our clients and the markets we serve. Going forward, we are excited for our customers, bankers, and shareholders to experience our next chapter as we join Heritage Bank. The combination of our two organizations provides the scale and capabilities of a larger bank while maintaining the high-touch community bank approach our customers have come to expect. We believe the like-minded culture at Heritage and manner in which they operate will create significant benefits for all stakeholders."
Mr. McDonald continued, "We welcome the employees and customers of Kitsap Bank to Heritage Bank, and we look forward to our combined success. Further, we plan to continue operating with the Kitsap Bank name in certain markets on the
Under the terms of the merger agreement, Olympic shareholders will receive 45.0 shares of Heritage common stock for each share of Olympic common stock based on a fixed exchange ratio. Based on the closing price of Heritage common stock of
The merger agreement has been unanimously approved by the boards of directors of Heritage and Olympic. The merger is subject to regulatory approvals, approval by Olympic and Heritage shareholders, and certain other customary closing conditions and is expected to close in the first quarter of 2026. All of the respective members of the boards of directors of Heritage and Olympic have agreed to vote their shares in favor of the merger.
A slide presentation to accompany management's commentary may be accessed from Heritage's September 25, 2025, Form 8-K filing with the Securities and Exchange Commission ("SEC") or on Heritage's website at www.hf-wa.com under the tab "Events & Presentations."
D.A. Davidson & Co. served as financial advisor and provided a fairness opinion to Heritage, and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to Heritage. Piper Sandler & Co. served as financial advisor and provided a fairness opinion to Olympic, and Otteson Shapiro LLP served as legal counsel to Olympic.
Investor Conference Call
Heritage will host a conference call to discuss the transaction at 10:00 a.m. Pacific Time, September 26, 2025. Interested parties are invited to listen in by dialing (833) 470-1428 access code 390443. A presentation regarding the transaction will be discussed on this call and a copy will be available at www.hf-wa.com under the tab "Events & Presentations." The call will be available for replay through October 3, 2025, by dialing (866) 813-9403 access code 843531. Participants may register for the call using the link below to receive dial-in details and their own unique PINs. It is recommended you join 10 minutes prior to the start time.
https://www.netroadshow.com/events/login/LE9zwo3kJzHn6au1J7Dcf8oaOEViFwxQXYO
About Heritage Financial Corporation
Heritage Financial Corporation is an
About Kitsap Bank, Wholly-Owned Subsidiary of Olympic Bancorp, Inc.
Established in 1908, Kitsap Bank is headquartered in
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would," and "could," as well as the negative of such words. Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. In addition to factors disclosed in reports filed by Heritage with the SEC, risks and uncertainties for Heritage, Olympic and the combined company that may cause actual results or outcomes to differ materially from those anticipated include, but are not limited to: (1) the possibility that any of the anticipated benefits of the proposed merger will not be realized or will not be realized within the expected time period; (2) the risk that integration of Olympic's operations with those of Heritage will be materially delayed or will be more costly or difficult than expected; (3) the parties' inability to meet expectations regarding the timing of the proposed merger; (4) changes to tax legislation and their potential effects on the accounting for the merger; (5) the inability to complete the proposed merger due to the failure of Olympic's shareholders to adopt the merger agreement, or the failure of Heritage's shareholders to approve the issuance of Heritage's common stock in connection with the merger; (6) the failure to satisfy other conditions to completion of the proposed merger, including receipt of required regulatory and other approvals; (7) the failure of the proposed merger to close for any other reason; (8) diversion of management's attention from ongoing business operations and opportunities due to the proposed merger; (9) the challenges of integrating and retaining key employees; (10) the effect of the announcement of the proposed merger on Heritage's, Olympic's or the combined company's respective customer and employee relationships and operating results; (11) the possibility that the proposed merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (12) the dilution caused by Heritage's issuance of additional shares of Heritage's common stock in connection with the merger; and (13) changes in the global economy and financial market conditions and the business, results of operations and financial condition of Heritage, Olympic and the combined company. Please refer to Heritage's Annual Report on Form 10-K for the year ended December 31, 2024, as well as Heritage's other filings with the SEC, for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.
Any forward-looking statement included in this report is based only on information currently available to management and speaks only as of the date on which it is made. Neither Heritage nor Olympic undertakes any obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.
Additional Information and Where to Find It
Heritage will file a registration statement on Form S-4 with the SEC in connection with the proposed transaction. The registration statement will include a joint proxy statement of Heritage and Olympic that also constitutes a prospectus of Heritage, which will be sent to the shareholders of Heritage and Olympic. Heritage and Olympic shareholders are advised to read the joint proxy statement/prospectus when it becomes available because it will contain important information about Heritage, Olympic and the proposed transaction. When filed, this document and other documents relating to the merger filed by Heritage can be obtained free of charge from the SEC's website at www.sec.gov. These documents also can be obtained free of charge by accessing Heritage's website at hf-wa.com under the tab "Financials." Alternatively, these documents, when available, can be obtained free of charge from Heritage upon written request to Heritage Financial Corporation, Attn: Investor Relations, 201 Fifth Avenue S.W.,
Participants In This Transaction
This press release does not constitute a solicitation of proxy, an offer to purchase or a solicitation of an offer to sell any securities. Heritage, Olympic, and certain of their directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Heritage and Olympic in connection with the proposed merger under SEC rules. Information about the directors and executive officers of Heritage and Olympic will be included in the joint proxy statement/prospectus for the proposed merger filed with the SEC. These documents (when available) may be obtained free of charge in the manner described above under "Additional Information and Where to Find It."
Security holders may obtain information regarding the names, affiliations and interests of Heritage's directors and executive officers in the definitive proxy statement of Heritage relating to its 2025 Annual Meeting of Shareholders filed with the SEC on March 21, 2025 and in Heritage's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025. To the extent the holdings of Heritage's securities by Heritage's directors and executive officers have changed since the amounts set forth in Heritage's proxy statement for its 2025 Annual Meeting of Shareholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. These documents can be obtained free of charge in the manner described above under "Additional Information and Where to Find It."
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SOURCE Heritage Financial Corporation
FAQ
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