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                                  UNITED STATES
                        SECURITY AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB/A


[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
     EXCHANGE ACT OF 1934

For the quarterly period ended       September 30, 1996
                               -----------------------------
                                       or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from                       to                       
                               ---------------------    ----------------------

Commission File Number:  0-27700

                         Heritage Financial Corporation
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             (Exact name of registrant as specified in its charter)

                                    Delaware
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         (State or other jurisdiction of incorporation or organization)

                                   37-1351506
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                      (I.R.S. Employer identification No.)

                 619 12th Street, Lawrenceville, Illinois 62439
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              (Address of principal executive offices) (Zip Code)

                                 (618) 943-2515
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              (Registrant's telephone number, including area code)

                                       N/A
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                 (Former name, former address and former fiscal
                       year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing for the past 90
days. [ X ]   Yes     [  ]  No

As of September 30, 1996 there were 493,320 shares of the Registrant's common
stock issued and outstanding.

Transitional Small Business Disclosure Format (Check One):

[   ]   Yes     [ X ]  No

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                                   SIGNATURES



Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                   HERITAGE FINANCIAL CORPORATION
                                   Registrant



Date:   November 26, 1996           /s/  Kevin J. Kavanaugh
        -----------------          ---------------------------------------
                                   Kevin J. Kavanaugh, President and Chief
                                   Executive Officer




Date:   November 26, 1996           /s/  Cleora Gillespie
        -----------------          ---------------------------------------
                                   Cleora Gillespie, Secretary and Treasurer































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