Len Cereghino & Co.            CLIENT:  UNITED SECURITY
BANCORPORATION
CORPORATE INVESTOR RELATIONS   CONTACT: William C. Dashiell
2605 WESTERN AVE.                       Chief Executive
Officer
SEATTLE, WA 98121                       (509) 467-6993
(206) 448-1996
NEWS RELEASE
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            UNITED SECURITY COLLECTS INSURANCE SETTLEMENT

  SPOKANE, WA-July 22,1997-United Security Bancorporation
(NASDAQ:USBN)
announced it has received an insurance payment of
approximately $637,000 as reimbursement for losses from a
previously-disclosed embezzlement.  The funds (equal to
approximately $420,000, or $.11 per share, after tax) will
be credited to USBN's third quarter earnings.
  "The prompt payment of this insurance claim confirms
management's belief that our operating systems and controls
are sound, and that our team responded quickly and
responsibility," stated President and Chief Executive
Officer, William C. Dashiell.  "Depositors have not lost a
penny throughout this period because we fully reimbursed our
customers' principal and interest.
  "Reliance Insurance Company was quick to recognize the
validity of our claim and they have been very prompt with
their decision," Dashiell noted.  "We are pleased with their
responsiveness.  Today's payment covers the reconciled
amount of principal stolen, less our $50,000 deductible."
  The Company announced on April 4 that it filed an 8-K
report with the Securities and Exchange Commission reporting
the embezzlement.  The Federal Bureau of Investigation is
continuing to investigate the crime.  The embezzlement
resulted in an after-tax adjustment to USBN's 1996 earnings
of approximately $530,000, reducing net income from $3.7
million to $3.2 million, or $.86 per share.
  United Security Bancorporation is a multi-bank holding
company that currently owns two banks (United Security Bank
and Home Security Bank) with banking facilities in fifteen
central and eastern Washington communities.  At March 31,
USBN had total assets of $235.4 million, total deposits of
$201 million, and loans of $175.4 million.  On July 18, USBN
completed the purchase of five former branches of Wells
Fargo Bank.  In addition, the company owns USB Insurance, a
full-line insurance agency, USB Mortgage, a mortgage
company, and USB Leasing, a commercial leasing company.

NOTE:  Transmitted on PR Newswire at 3:01 a.m. PDT, July 22,
1997.