For Immediate Release                     Contact:     Mike Pete
                                                       (206)654-7834
                                          Or:          Pat Patrick
                                                       (206)654-7820


                   Metropolitan Bancorp Completes Redemption
                         of 8.5% Subordinated Notes,
             Updates Status of Merger with Washington Federal, Inc.



     Seattle--October 1, 1996--Metropolitan Bancorp (NASDAQ:MSEA) today
completed the redemption of all Metropolitan Bancorp 8.5% Subordinated
Notes due July 31, 2003.  The funds to redeem the $23 million in notes
were borrowed by Metropolitan Bancorp from Washington Federal Savings, a
subsidiary of Washington Federal, Inc.

     Patrick F. Patrick, President and Chief Executive Officer, said
today, "The notes were replaced with borrowings on terms that will
immediately lower our cost of money."

     He continued, "The previously announced merger with Washington
Federal is continuing on schedule and is expected to be completed by
late November or December, 1996."  Approval is required from the
applicable regulatory authorities and shareholders of Metropolitan.

     Metropolitan Bancorp is a savings and loan holding company formed
in July 1993.  Its principal subsidiaries are Metropolitan Savings and
Phoenix Mortgage & Investment, Inc.  Metropolitan Savings is an FDIC-
insured, federally chartered savings and loan association organized in
1935 with 10 offices serving the greater Puget Sound area.  Phoenix
Mortgage is a mortgage banking company with six offices in the Puget
Sound area.

     Washington Federal, Inc. is the holding company for Washington
Federal Savings which operates 93 offices in Washington, Idaho, Oregon,
Utah and Arizona.