Whidbey Island Bank will no longer be headquartered in Oak Harbor after a merger with Olympia-based Heritage Financial Corporation.

Washington Banking Company, the holding company for Whidbey Island Bank, and Heritage Financial jointly announced today the signing of an agreement for the “strategic merger.”

“The combination will result in one of the largest bank mergers between two in-state Washington banks with transactions valued at approximately $265.1 million,” the press release states.

Branches of Whidbey Island Bank will adopt the “Heritage Bank” name in all markets, except the six branches in the Whidbey Island market.

The leadership team of the merged company will be comprised of executives from both organizations. Brian Vance, current chief executive officer of Heritage, will continue as CEO of the merged bank. Washington Banking CEO Jack Wagner will serve as special adviser.

“Additionally, the board of directors will be comprised of eight directors from Heritage and seven directors from Washington Banking,” the press release states.