Heritage Financial (HFWA) in Olympia, Wash., plans to merge its two banks.
The company will consolidate the $170 million-asset Central Valley Bank in Toppenish, Wash., into the $1.2 billion-asset Heritage Bank in Olympia, it said Monday. Heritage expects to complete the merger by June 30.
Mike Broadhead, who has led Central Valley for 27 years, will retire in April 2014. The bank, which specializes in agricultural lending, has six branches in central Washington. The bank will continue to operate under its brand after the merger.
"The decision … was ultimately one of management succession and economies of scale," Brian Vance, Heritage Financial's chief executive, said in a press release. "We continually strive to enhance shareholder value and the consolidation will streamline processes and create efficiencies."
Heritage raised more than $100 million during the economic downturn to fund acquisitions. Last month, it agreed to pay $44 million to buy Valley Community Bancshares in Puyallup, Wash. In January, it completed the purchase of the $72 million-asset Northwest Commercial Bank in Lakewood, Wash.