Heritage Financial is a bank holding company headquartered in Olympia, Washington, operating through its wholly-owned subsidiary Heritage Bank. Heritage Bank is a community bank focused on commercial lending and deposit-taking with small and medium-sized businesses across the Pacific Northwest, with 50 branch offices (growing to 66 after the January 2026 acquisition of Kitsap Bank) across Washington, Oregon, and Idaho. Commercial business loans — including lines of credit, term equipment loans, and commercial real estate loans — make up about 82% of the loan portfolio. Heritage makes money primarily through net interest income, the spread between what it earns on loans and investments and what it pays on deposits. Heritage targets operating relationship deposits from businesses, which tend to carry compensating balances and be less rate-sensitive than retail deposits. Non-maturity deposits make up about 84% of total deposits. Heritage positions itself as a relationship-focused, high-touch lender for SMBs, competing on local expertise and conservative, cash-flow-based underwriting rather than price alone. Heritage has grown primarily through acquisitions, completing 11 bank deals since 1998, and views further consolidation in the Pacific Northwest community banking market as a key opportunity. Heritage supplements M&A-driven growth by hiring commercial lending and deposit teams from competitors, particularly when competitor M&A creates disruption. Beyond M&A, Heritage allocates capital to dividends, share repurchases, and periodic repositioning of its securities portfolio into higher-yielding assets.