Report|12 Jun 2026

Heritage Financial Corporation Surveillance Report

Company Profile

  • 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%).…
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