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                            FOR IMMEDIATE RELEASE

               WESTERFED COMPLETES SECURITY BANCORP ACQUISITION


      MISSOULA, MONTANA, February 28, 1997--WesterFed Financial Corporation
(NASDAQ: WSTR), the holding company for Western Federal Savings Bank, announced
today that it has completed the acquisition of Security Bancorp (NASDAQ: SFBM),
a savings and loan holding company with $377.8 million in assets located in
Billings, Montana. 
        Pursuant to the terms of the merger, the Security Bancorp
stockholders were given the opportunity to elect to receive either cash,
WesterFed stock or a combination of both in exchange for their Security Bancorp
Common Stock, subject to the total shares of WesterFed stock issued not
exceeding 45% of the aggregate merger consideration. As a result, Security
stockholders electing to receive cash, and stockholders making no election, will
receive $30.00 for each share of Security Bancorp Common Stock. Security
stockholders electing to receive stock will have approximately 48.9% of their
Security stock exchanged for WesterFed Financial Common Stock (on a ratio of
1.78 shares of WesterFed for each share of Security) and the remainder of their
Security Bancorp stock will be exchanged for cash at the rate of $30.00 per
share.

      As a result of the Merger, WesterFed Financial is the largest publicly
traded financial institution holding company based in Montana with combined
total assets of approximately $ 940 WesterFed Financial now conducts business
through 35 branches located throughout Montana.