<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July
22, 1997
United Security Bancorporation
(Exact Name of Registrant as Specified in Charter)
Washington 0-18561 91-1259511
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(State or other jurisdiction (Commission (IRS
Employer Identi-
of incorporation) File Number) fication
Number)
9506 North Newport Highway, Spokane, Washington 99218-
1200
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(Address of principal executive offices/Zip
Code)
Registrant's telephone number, including area code:
(509) 467-6949
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Item 5. Other Events
United Security Bancorporation announced that it has
received an insurance settlement of $637,000. In a Form 8-K
filed on April 4, 1997 it announced that 1996 earnings had
been adjusted for an embezzlement at its subsidiary, Home
Security Bank. The $860,000 loss recorded for 1996 was the
than identified principal and interest due to the
embezzlement. The insurance settlement is a total recovery
of the principal loss, less a $50,000 deductible. The press
release is incorporated by reference as Exhibit 99.
99. Press release dated July 22, 1997, issued by United
Security
Bancorporation.
1
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EXHIBIT INDEX
Exhibit No. Title
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99. Press release dated July 22, 1997,
issued by United Security
Bancorporation
SIGNATURES
Pursuant to the requirements of the Security Exchange Act of
1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
Dated: July 24, 1997
UNITED SECURITY BANCORPORATION
By: /s/ Chad Galloway
------------------------------
Name: Chad Galloway
Title: Vice President and
Chief Financial Officer
2
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<S> <C> <C>
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.
