WESTERFED FINANCIAL CORP
8-K, 1999-10-07
SAVINGS INSTITUTION, FEDERALLY CHARTERED
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                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 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)
                                September 30, 1999


                         WESTERFED FINANCIAL CORPORATION
- --------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)



   Delaware                         0-22772                        81-0487794
- --------------------------------------------------------------------------------
(State or other              (Commission File No.)               (IRS Employer
 jurisdiction of                                                 Identification
 incorporation)                                                      Number)


   110 East Broadway, Missoula, Montana                                59802
- --------------------------------------------------------------------------------
(Address of principal executive offices)                            (Zip Code)



Registrant's telephone number, including area code:              (406) 721-5254
- --------------------------------------------------------------------------------


                                       N/A
- --------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)










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<PAGE>

Item 5.           Other Events

                  On September 30, 1999 the Registrant  issued the press release
                  attached as Exhibit 99.


Item 7.           Financial Statements and Exhibits

                  (a)      Exhibits

                           99     Press release, dated September 30, 1999





















































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<PAGE>



                                   Signatures



         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this Report to be signed on its behalf by the
undersigned thereunto duly authorized.



                                          WesterFed Financial Corporation



Date: October 6, 1999                      By: /s/Lyle R. Grimes
      ---------------                         ---------------------------------

                                              Lyle R. Grimes
                                              President/Chief Executive Officer











































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<PAGE>


                                Index to Exhibits




                                                               Sequentially
                                                              Numbered Page
                                                              Where Attached
Exhibit                                                          Exhibits
 Number                                                         are located
 ------                                                        ------------
  99        Press Release dated September 30, 1999                   5



















































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<PAGE>
                    WESTERFED FINANCIAL CORPORATION ANNOUNCES
                          INCREASED QUARTERLY DIVIDEND


     Missoula,  Montana - September 30, 1999 - WesterFed  Financial  Corporation
(the "Company")  (NASDAQ - WSTR),  the holding company for Western Security Bank
(the "Bank"),  announced it will pay a regular cash dividend of $0.155 per share
for the quarter ended September 30, 1999. The regular quarterly cash dividend of
$0.155  represents  an increase of 3.3% over the prior  quarter's  regular  cash
dividend of $0.15 per share.  The Company has increased  regular cash  dividends
every quarter since becoming a public company.

     WesterFed Financial  Corporation's only subsidiary,  Western Security Bank,
which is Montana's largest savings bank, operates  thirty-four offices in twenty
Montana communities.

CONTACT:   James A. Salisbury, EVP/Treasurer/CFO
           (406) 721-5254











































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