Heritage Financial Corporation, the parent company of Olympia's Heritage Bank, announced that effective today, it has completed its previously announced acquisition of Valley Community Bancshares, Inc. and its wholly owned subsidiary, Valley Bank, of Puyallup.

Pursuant to the previously announced terms of the merger, Valley shareholders are receiving $19.50 in cash, without interest, and 1.3611 shares of Heritage common stock per share. As a result of the merger, Heritage will expand its existing footprint in the Puget Sound region and have approximately $1.7 billion in assets and 43 branches. 

“We are excited to announce the completion of the merger and to welcome the Valley Bank team to Heritage Bank,” said Brian Vance, Heritage CEO. “We look forward to the opportunities this brings our existing and new customers as a result of the broader branching network and complementary franchises. Valley Bank is a well-established, respected organization and we are excited to partner with them to continue to grow our combined company.”

In addition, David H. Brown, president and CEO of Valley, will be appointed effective October 1, 2013 to serve on Heritage's and Heritage Bank's Boards of Directors. 

“We are very pleased to welcome Mr. Brown to the Heritage and Heritage Bank boards. His great depth of banking expertise and community leadership will be invaluable to us,” said Donald V. Rhodes, Chairman of the Board of Heritage and Heritage Bank.