Exhibit 99.1

                      Press release issued July 12, 1996

Washington Federal, Inc.
425 Pike Street
Seattle, WA 98101
(206) 624-7930, Contact: Bob Hawkins

Metropolitan Bancorp
1520 Fourth Avenue
Seattle, WA 98101
(206) 654-7820, Contact: Patrick Patrick


                                          Friday, July 12, 1996
                                          FOR  IMMEDIATE  RELEASE


              WASHINGTON FEDERAL, INC. AND METROPOLITAN BANCORP
                                ANNOUNCE MERGER

   SEATTLE, WASHINGTON-Washington Federal, Inc. (NASDAQ-WFSL) and Metropolitan
Bancorp (NASDAQ-MSEA) announced today the execution of a definitive agreement
pursuant to which Metropolitan will merge with and into Washington Federal
(the "Merger").  In connection with the Merger, each stockholder of
Metropolitan will receive shares of Washington Federal Common Stock at an
expected value of $18.00 in exchange for each share of his or her Metropolitan
Common Stock, subject to the pricing and other provisions set forth in the
agreement.

   It is intended that the transaction constitute a tax-free reorganization
under the Internal Revenue Code so that stockholders of Metropolitan will not
recognize gain or loss in connection with the receipt of Washington Federal
Common Stock.

   The transaction has been unanimously approved by the Boards of Directors of
both companies.  It is anticipated that the merger will be completed by
December 31, 1996.  Approval is required from the applicable regulatory
authorities and the shareholders of Metropolitan.

July 12, 1996                                                          page 2

   The number of shares of Washington Federal Common Stock that will be
exchanged for each share of Metropolitan Common Stock will be determined by
applying a formula, set forth in the definitive agreement, which is based on
the average market price of Washington Federal Common Stock over a 20 trading
day period ending on the fifth business day prior to the closing of the
Merger.  If, over the pricing period, the average market price of Washington
Federal Common Stock is between $18.00 and $24.50, Metropolitan stockholders
will receive a number of shares of Washington Federal Common Stock equal to
the ratio determined by dividing $18.00 by the average market price of
Washington Federal Common Stock multiplied by the number of shares of
Metropolitan Common Stock exchanged.  If the average market price of
Washington Federal Common Stock exceeds $24.50, the exchange ratio will equal
 .735 shares of Washington Federal Common Stock for each share of Metropolitan
Common Stock, whereas the exchange ratio will be one-for-one if the Washington
Federal Common Stock average market price for the 20-day period is less than
$18.00 per share.

   In connection with the Merger, Phoenix Mortgage & Investment, Inc., a
subsidiary of Metropolitan, will be acquired by Phoenix management.

July 12, 1996                                                         page 3

   Patrick F. Patrick, President and Chief Executive Officer of Metropolitan
commented, "We are very excited about our affiliation with Washington Federal.  
Washington Federal is the premier company in the thrift industry and offers
our stockholders an excellent return and investment.  The larger company
offers more opportunities for employees to apply their time and talents.  The
customer, most valued of all, will continue to receive a high level of
uninterrupted personal service and the utmost safety in one of the strongest
financial institutions in the country"

   Guy C. Pinkerton, Chairman, President and Chief Executive Officer of
Washington Federal stated, "We look forward to joining with Metropolitan.  The
combination will provide enhanced management capabilities, improved cost
efficiencies and increased market penetration which will lead to improved
financial performance in the years ahead."

   In connection with the agreement, Metropolitan granted Washington Federal
an option to acquire up to 19.9% of the outstanding Metropolitan Common Stock
upon the occurrence of certain events.

   Metropolitan Bancorp is the holding company of Metropolitan Federal Savings
and Loan Association of Seattle which operates

July 12, 1996                                                          page 4

ten offices in the greater Puget Sound area.  At June 30, 1996, Metropolitan
Bancorp had $761 million in assets, $424 million in deposits and $51 million
in equity.

   Washington Federal, Inc. is the holding company of Washington Federal
Savings which operates 89 offices in Washington, Idaho, Oregon, Utah and
Arizona.  At June 30, 1996, Washington Federal, Inc. had $5.0 billion in
assets, $2.5 billion in deposits and $597 million in equity.