EXHIBIT 99

FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:             DONALD V. RHODES
                                             CHAIRMAN, PRESIDENT AND CEO
                                             360/943-1500

                      HERITAGE FINANCIAL CORPORATION AND
                    WASHINGTON INDEPENDENT BANCSHARES, INC.
                             ANNOUNCE AFFILIATION
                                        
Olympia, Washington September 28, 1998 Heritage Financial Corp. and Washington
Independent Bancshares, Inc. today announced the signing of a definitive
agreement to affiliate with each other through a merger. The agreement has been
approved by the Boards of Directors of both companies and is subject to approval
of shareholders of both companies and appropriate regulatory agencies.

Upon completion, Washington Independent Bancshares's bank subsidiary, Central
Valley Bank, N.A., which has five locations in Yakima County in central
Washington will become part of the expanding Heritage Financial banking family
and will operate as a separate subsidiary of Heritage Financial with its own
Board and management.  Heritage Financial recently announced a merger agreement
with Harbor Bancorp, parent company of The Bank of Grays Harbor which operates
five banking offices in Grays Harbor County.  The proposed transactions with
Harbor Bancorp and Washington Independent Bancshares will bring Heritage
Financial's asset size to over $580 million and expand its banking network to 22
offices in the state of Washington.  Heritage Financial expects to complete both
transactions during the first quarter of 1999.

The proposed transaction with Washington Independent Bancshares is expected to
be accounted for as a pooling of interests. The definitive agreement calls for
Heritage to issue a total of 1.0 million shares of its common stock for all
outstanding shares of Washington Independent Bancshares common stock, plus up to
an additional 50,000 shares, depending on Heritage's average stock price shortly
before the transaction closes. The transaction is expected to have a positive
impact on Heritage Financial's earnings beginning in 1999.

Donald V. Rhodes, Chairman, President and Chief Executive Officer of Heritage
Financial, has a long-standing relationship at Washington Independent
Bancshares, where he also serves as Chairman, President, and Chief Executive
Officer of Washington 

 
Independent Bancshares and Chairman and Chief Executive officer of Central
Valley Bank. Rhodes stated "The affiliation with Washington Independent
Bancshares adds strength to Heritage Financial's growing franchise. Washington
Independent Bancshares's offices in Yakima County help us accomplish our goal of
growth through acquisition of well managed, profitable commercial banks in good
markets. Their style of community banking fits well with ours. They bring a
shared commitment to superior customer service."

Michael Broadhead, President of Central Valley Bank, N.A., said, "The
affiliation with Heritage Financial will enhance our ability to provide our
customers with a wider variety of products and services, including the ability
to expand our branch network and lending capacity in Yakima County and in other
nearby markets. We look forward to continuing the partnership that has existed
between management of the institutions over the past decade." Mr. Broadhead will
remain as president of Central Valley Bank, N.A. and will be in charge of
operations in central Washington.

Customers of Central Valley Bank, N.A. will continue to be served by the same
employees who have helped them in the past and will not need to make any changes
to their banking routine.

Heritage Financial Corporation, with assets of approximately $404 million, is
the parent of Heritage Savings Bank, Olympia, Washington, which operates ten
banking offices in the South Puget Sound area of Washington and North Pacific
Bank, Tacoma, Washington, which operates two offices in Tacoma. Washington
Independent Bancshares, Inc. has assets in excess of $57 million.

Heritage Financial Corp.'s common stock trades on The Nasdaq Stock Market
under the symbol "HFWA."

Safe Harbor Statement Under The Private Securities Litigation Reform Act Of
1995:  Statements in this news release looking forward in time involve risks and
uncertainties, including regulatory approvals, completion of the due diligence
process, success of acquiring new locations and integrating newly-acquired
branches, additional expansion opportunities, the effect of changing economic
conditions, product demand, changes in the regulatory environment, and other
risk factors detailed in Heritage Financial's Securities and Exchange Commission
Filings.