ADDED
Heritage Bank is headquartered in Olympia, Washington and conducts business from its 50 branch offices located throughout Washington State, the greater Portland, Oregon area, Eugene, Oregon and Boise, Idaho and its one loan production office in Spokane, Washington as of December 31, 2025.
On January 31, 2026, Heritage completed its acquisition of Olympic and Olympic s wholly-owned banking subsidiary, Kitsap Bank.
The acquisition added 16 branch offices to the franchise, doing business under the Kitsap Bank name as a division of Heritage Bank.
Pursuant to the terms of the merger agreement, Olympic shareholders received 45.0 shares of Heritage common stock for each share of Olympic common stock based on a fixed exchange ratio.
Olympic's principal activity was the ownership and operation of Kitsap Bank, a state-chartered banking institution that operated sixteen branches in Washington at the time of closing.
The merger consideration, consisting of 7,167,600 shares of Heritage common stock, totaled approximately $185.0 million, based on the closing price of Heritage common stock on January 30, 2026, as reported on the Nasdaq Global Select Market.
At close, Olympic had total assets of approximately $1.6 billion, loans of approximately $0.9 billion and deposits of approximately $1.4 billion.
The Company accounts for these transactions under the acquisition method of accounting, and thus, the financial position and results of operations of acquired institutions prior to the consummation date are not included in the accompanying consolidated financial statements.
The acquisition method of accounting requires assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition.
The Company determines the fair value of core deposit intangibles, securities, premises and equipment, loans, other assets and liabilities, deposits and borrowings with the assistance of third party valuations, appraisals, and third party advisors.
REMOVED
Heritage Bank is headquartered in Olympia, Washington and conducts business from its 50 branch offices located throughout Washington State, the greater Portland, Oregon area, Eugene, Oregon and Boise, Idaho as of December 31, 2024.
As of December 31, 2024, our on-balance sheet liquidity position was $117.1 million in cash and cash equivalents and $1.47 billion in total investment securities.
As of December 31, 2024, the regulatory capital ratios of the Bank were in excess of the levels required for well-capitalized status, and our consolidated common equity tier 1 capital ratio, leverage ratio, Tier 1 capital ratio, and total capital ratio were 12.0%, 10.0%, 12.4% and 13.3%, respectively.
At December 31, 2024, our non-maturity deposits were 82.8% of our total deposits.
Our incentive systems are designed to achieve balanced, high quality asset growth while maintaining appropriate mechanisms to reduce or eliminate incentive payments when appropriate.
There have been no material changes to our business strategy during the years ended December 31, 2024 and 2023.
Puget Sound Bank 571 Acquisition July 2018 Premier Commercial Bancorp Premier Community Bank 387 Description of Business Retail Banking We offer a full range of products and services to customers for personal and business banking needs designed to attract both short-term and long-term deposits.
Our loans are originated under policies that are reviewed and approved annually by our Board.
Commercial Business Lending At December 31, 2024, we had $3.76 billion, or 78.3% of our loans receivable, in commercial business loans.
Real Estate Construction and Land Development At December 31, 2024, we had $479.4 million, or 9.9% of our loans receivable, in real estate construction and land development loans, including residential construction loans and commercial and multifamily construction loans.