TACOMA, Wash. Columbia Banking System Inc. has announced its wholly owned subsidiary, Columbia State Bank, has acquired all of the deposits and substantially all of the assets of First Heritage Bank from the Federal Deposit Insurance Corporation (FDIC), which was appointed receiver of the institution.

We sincerely welcome former First Heritage Bank customers into our extended Columbia Bank network of 88 branches in Washington and Oregon. We are also looking forward to working with the First Heritage team, who have served their communities in Snohomish and King counties so well, said Melanie Dressel, president and CEO, Columbia Banking System. Branches will open under new ownership; however, customers will be able to bank as usual during regular business hours, and their deposits are safe, available and remain FDIC insured.

Columbia State Bank will acquire approximately $173 million in assets and $163 million in deposits located in five branches in Washington state: Snohomish, Everett, Monroe, Arlington and Woodinville. Approximately $142 million of First Heritage Banks total assets will be subject to a loss-sharing agreement with the FDIC. 

Columbia State Bank participated in a competitive bid process, whereby it agreed to assume substantially all of the assets and all deposits of First Heritage Bank.

Columbia Bank does business under the Bank of Astoria name in Astoria, Warrenton, Seaside, Cannon Beach, Manzanita and Tillamook. Website is at www.columbia bank.com or www.bankofastoria.com