EXHIBIT 99

                        [HERITAGE FINANCIAL LETTERHEAD]

                                                        FOR IMMEDIATE RELEASE
                                                        ------------------------
                                                        DATE:  February 18, 2000

CONTACT:  Donald V. Rhodes
          Chairman, President and
          Chief Executive Officer
          (360) 943-1500



                      HERITAGE FINANCIAL CORPORATION BOARD
                   INCREASES STOCK REPURCHASE PROGRAM TARGET

Olympia, WA:  The Board of Directors of Heritage Financial Corporation (Nasdaq:
HFWA) has authorized the purchase of an additional ten percent (10%) of the
Company's outstanding shares, or approximately 975,000 shares, for an aggregate
stock repurchase of approximately nineteen percent (19%) of its outstanding
shares from the inception of the stock repurchase program announced on October
22, 1999.  As of February 17, 2000, Heritage had repurchased 1,008,150 shares
for a total of  9.3% of its total shares outstanding.  The additional share
repurchase will take place over the next 18 months in the open market or in
privately negotiated transactions at times considered appropriate.

Heritage Financial Corporation is a $510 million asset sized bank holding
company headquartered in Olympia, Washington.  Heritage operates two community
banks, Heritage Bank and Central Valley Bank, N.A.  Heritage Bank serves Pierce,
Thurston, and Mason Counties in the South Puget Sound region of Washington
through its twelve full-service banking offices.  Central Valley Bank serves
Yakima County in central Washington through its five full-service banking
offices.