Heritage Financial in Olympia, Wash., has agreed to buy Olympic Bancorp in Port Orchard, Wash.
The $7.1 billion-asset Heritage said in a press release that it will pay $176.6 million in stock for the parent of the $1.7 billion-asset Kitsap Bank. The deal is expected to close in the first quarter.
Kitsap has 17 branches, $942 million of loans and $1.4 billion of deposits.
The deal should be 18% accretive to Heritage’s earnings per share, taking into account cost savings.
Kitsap “is one of the longest tenured banks in Washington state, and we have deep respect for the banking institution they have built over the last 117 years,” Bryan McDonald, Heritage’s president and CEO, said in the release. “Their relationship banking strategy has created an exceptionally high-quality, low-cost core deposit franchise.”
D.A. Davidson and Barack Ferrazzano Kirschbaum & Nagelberg advised Heritage. Piper Sandler and Otteson Shapiro advised Olympic.