EXHIBIT 99

                      [HF HERITAGE FINANCIAL LETTERHEAD]


                                                         FOR IMMEDIATE RELEASE
                                                         ---------------------
                                                         DATE:  October 22, 1999

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

                     HERITAGE FINANCIAL CORPORATION BOARD
                          AUTHORIZES STOCK REPURCHASE

Heritage Financial Corporation, Olympia, WA (Nasdaq: HFWA): The Board of
Directors of Heritage Financial Corporation has authorized the purchase of up to
10% of the Company's outstanding shares or approximately 1.1 million shares. The
purchase will take place over the next 15 months in the open market or in
privately negotiated transactions at times deemed appropriate.

Heritage's Chairman, President and Chief Executive Officer, Donald V. Rhodes,
stated, "Heritage operates with capital levels well in excess of regulatory
requirements and well in excess of our internal needs. Buying in our own shares
with some of our excess capital funds is the best use of this capital,
especially given current market conditions."

Heritage Financial Corporation is a $487 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.