A bank that started in Coupeville has come a long way, baby.

Heritage Bank, which also does business as Whidbey Island Bank, is acquiring the Kitsap Bank company, the two banks announced Thursday. On a combined basis following the transaction, Heritage will have total assets of about $8.8 billion.

Whidbey Island Bank started in Coupeville in the early 1960s. Clark Sherman was a founding board member, and other members of the Sherman family also served on the board for decades. The small-town bank was successful and later moved its headquarters to Oak Harbor, according to Whidbey News-Times stories.

Then in 2013, the Washington Banking Company, the holding company for Whidbey Island Bank, merged with Olympia-based Heritage Financial Corporation. Under the merger agreement, the six branches in the Whidbey market remained named “Whidbey Island Bank,” although the logo was later changed. Today, the island has four branches — in Oak Harbor, Coupeville, Freeland and Langley.

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, according to a press release. The merger agreement was unanimously approved by the boards of directors of Heritage and Olympic Bancorp. The merger is subject to regulatory approvals, approval by Olympic and Heritage shareholders and certain other customary closing conditions and is expected to close in the first quarter of 2026.

Currently, Heritage Bank has a network of 50 branches and one loan production office in Washington, Oregon and Idaho.