On January 31, 2026, Olympia, WA-based Heritage Financial Corporation (NASDAQ: “HFWA”, or “the company”) completed an all-stock acquisition of Port Orchard, WA-based Olympic Bancorp, Inc. (“Olympic”), which added $954 million in loans and $1.4 billion in deposits, including a significant share of low-cost deposits. The merger deepened Heritage Bank’s (“the bank”) geographical presence in Washington and added 16 full-service branches in Kitsap, Pierce, Clallam, Jefferson, King, and Mason counties, increasing the number of branches to 65 at 1Q26. In recent years, the company has expanded beyond the I-5 corridor of western WA and the greater Portland area, adding branches in Eugene, OR, Boise, ID, and Spokane, WA.
HFWA’s loan portfolio is well diversified across loan types and commercially focused, with the majority of loans consisting of non-owner-occupied CRE (30%), owner-occupied CRE (21%), C&I (13%), residential mortgage (12%), and multifamily (9%).…
Log in or Sign up for free access to this report.
KBRA is a global full-service rating agency with a mission to set a standard of excellence and integrity. Established in 2010, KBRA remains dedicated to the restoration of trust in credit ratings by creating new standards for assessing risk and by offering timely and transparent ratings. KBRA provides market participants with an alternative solution by delivering in-depth research across various sectors within the United States and European markets. We strive to provide the investment community with the products and tools needed to make informed investment decisions.