PORT ORCHARD – If you’re a Kitsap Bank customer you may want to know that your bank has just been acquired by Heritage Financial Corporation, the company that owns Heritage Bank, which is headquartered in Olympia.
After closing the transaction, Heritage will be the second largest community bank serving the Kitsap and Olympic Peninsulas, though Kitsap Bank plans to continue to operate under the same name.
Kitsap Bank, established in 1908, is a privately owned community bank headquartered in Port Orchard with 17 banking offices and $1.7 billion in total assets. The merger means Heritage will have total assets of approximately $8.8 billion.
The merger agreement, which was unanimously approved by the boards of directors of both companies, is still subject to regulatory approvals and approval by Olympic and Heritage shareholders. The deal is expected to close in the first quarter of 2026.
Heritage Bank has a network of 50 branches.