Exhibit 99
Len Cereghino & Co. CLIENT: UNITED SECURITY
BANCORPORATION
CORPORATE INVESTOR RELATIONS CONTACT: Richard C. Emery
2605 WESTERN AVE. President & CEO
SEATTLE, WA 98121 United Security
(509) 467-6949
(206) 448-1996 Larry Mitson,
President
NEWS RELEASE Grant National (509)
754-5650
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UNITED SECURITY BANCORPORATION COMPLETES ACQUISITION OF
GRANT NATIONAL BANK
Spokane, WA-July 20, 1998-United Security Bancorporation
(NASDAQ: USBN) today announced it has completed its
acquisition of Grant National Bank for a total consideration
of approximately $10 million in USBN stock, following
approval by Grant National shareholders and regulatory
agencies. The transaction will be treated as a pooling of
interests for accounting purposes.
Headquartered in Ephrata, WA, Grant National will retain
its own name, staff, and Board of Directors, and will
operate as USBN's fourth independent banking subsidiary.
The bank's second branch is in the city of Moses Lake, WA.
"Both Grant National and United Security focus on small
business banking and superb customer service," said Richard
C. Emery, President and Chief Executive Officer. "Grant
National Bank is a logical extension of our presence in
Central Washington. We expect this acquisition to be
accretive to earnings during 1999 and cause only minor
dilution to earnings in the first year. Larry Mitson,
Grant's president, and his excellent staff will be integral
to our regional growth."
"United Security's growth has been very impressive and we
have similar corporate cultures," Mitson noted. "Both
companies are dedicated to fine customer service, community
businesses, consumer banking and community involvement."
Founded in 1989, Grant National Bank had approximately $32
million in total assets, $28 million in deposits, $21
million in loans and $3.4 million in total equity at March
31, 1998. the bank generated a 13.5% return on equity and
1.4% return on assets during 1997. United Security
Bancorporation had total assets of $348.9 million, total
deposits of $301.1 million, and loans of $241.5 million at
March 31.
"Our 1997 acquisition of five Wells Fargo (NYSE: WFC)
branches included a small office in Moses Lake," noted
Chairman William C. Dashiell. "We will be studying
customers' banking preferences regarding the eventual
consolidation of our staffs while providing our market area
and employees the best possible opportunities. And, we will
continue to evaluate additional, appropriate partners to
join the USBN banking family."
Based on an exchange formula tied to the average price of
USBN stock for a period prior to closing, Grant National
Bank shareholders will receive approximately 14 shares of
United Security Bancorporation common stock for each share
of Grant National they currently own. The 33,000 shares of
Grant National did not trade on an exchange.
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UNITED SECURITY BANCORPORATION
United Security Bancorporation is a multi-bank holding
company. Its three other banking subsidiaries include
United Security (based in Spokane), Home Security (based in
the Yakima Valley) and Bank of Pullman (based in Pullman,
near the Idaho border). With this acquisition, USBN has 26
branch offices - 25 in Central and Eastern Washington and
one in Idaho. USBN also owns USB insurance, a full-line
insurance agency, USB Mortgage, a mortgage company, and USB
Leasing, a commercial leasing company.
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