Jeffry Deuel Named President and CEO of Heritage Financial

Brian L. Vance, President and Chief Executive Officer of Heritage Financial Corporation ("Company"), announced today that effective September 7, 2012, Jeffrey J. Deuel was named President and Chief Operating Officer of Heritage Bank ("Bank") and that Donald J. Hinson, the Company's and the Bank's Chief Financial Officer, was promoted to Executive Vice President of the Company and the Bank. Mr. Deuel will continue to serve as Executive Vice President of the Company. Mr. Deuel joined Heritage Bank in February 2010 as Executive Vice President of Corporate Strategies. In response to the growing organization, Mr. Deuel was appointed Executive Vice President and Chief Operating Officer of Heritage Bank and Executive Vice President of the Company in December 2010. Prior to joining Heritage, Mr. Deuel held various senior positions in commercial banking with extensive experience in lending, credit administration, and operations. Mr. Deuel has been in commercial banking for 30 years. Mr. Hinson joined Heritage Bank in 2005 as Vice President and Controller. In 2007, Mr. Hinson was named Senior Vice President and Chief Financial Officer of the Company. Mr. Hinson is a Certified Public Accountant and prior to joining Heritage he served 11 years in the banking and audit practice of local and national accounting firms of Knight, Vale and Gregory and RSM McGladrey.