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United StatesSECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549

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FORM 10-Q

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|(Mark One)                                          
|----------------------------------------------------
|                                                    
|[X]                                                 
|                                                    
|For the quarterly period ended September 30, 2000 or
|                                                    
|[   ]                                               

For the transition period from
    ___________ to ___________

Commission file number000-18561

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UNITED SECURITY BANCORPORATION(Exact Name of Registrant as Specified in Its Charter)

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|Washington                      | 91-1259511         
|------------------------------- | -------------------
|(State or Other Jurisdiction of | (I.R.S. Employer   
|Incorporation or Organization)  | Identification No.)

9506 North Newport Highway, Spokane, WA 99218-1200(Address of Principal Executive Offices)

(509) 467-6949(Registrants Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes [X]   No [   ]

The issuer has one class of capital stock, that being common stock. On October 19, 2000, there were 7,065,146 shares of such stock outstanding.

1

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UNITED SECURITY BANCORPORATION

INDEX TO QUARTERLY REPORT ON FORM 10-Q
September 30, 2000 
Table of Contents



|                                |                       |                   |  |                                                                                                 |      |        | 
|------------------------------- | --------------------- | ----------------- |  | ----------------------------------------------------------------------------------------------- | ---- | ------ | 
|                                |                       |                   |  |                                                                                                 | Page |       
|                                |                       |                   |  |                                                                                                 |      |       
|Independent Accountants Report |                       | 3                 | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|Part I                          | Financial Information |                   |  |                                                                                                
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       | Item 1.           |  | Financial Statements                                                                            |      |        | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       |                   |  | Consolidated Statements of Condition  September 30, 2000 and December 31, 1999                 |      | 4      | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       |                   |  | Consolidated Statements of Income - Three and Nine Months Ended
    September 30, 2000 and 1999 |      | 5      | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       |                   |  | Consolidated Condensed Statements of Cash Flows - Nine Months Ended September 30, 2000 and 1999 |      | 6      | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       |                   |  | Notes to Consolidated Financial Statements                                                      |      | 7 - 8  | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       | Item 2.           |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations       |      | 9 - 10 | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       | Item 3.           |  | Quantitative and Qualitative Disclosures About Market Risk.                                     |      | 11     | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|Part II                         |                       | Other Information |  |                                                                                                 |     
|                                |                       |                   |  |                                                                                                 |      |        | 
|                                |                       | Item 6.           |  | Exhibits and Reports on Form 8-K                                                                |      | 11     | 
|                                |                       |                   |  |                                                                                                 |      |        | 
|Signatures                      |                       |                   |  |                                                                                                 |      | 11     | 

2

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UNITED SECURITY BANCORPORATION

Independent Accountants Report

Board of Directors and Shareholders
 United Security Bancorporation

We have reviewed the accompanying condensed consolidated statement of condition of United Security Bancorporation and subsidiaries as of September 30, 2000, and the related condensed consolidated statements of income for the three and nine
months ended September 30, 2000, and cash flows for the nine months ended September 30, 2000.  These financial statements are the responsibility of United Security Bancorporations management.

We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants.  A review of interim financial information consists principally of applying analytical procedures to financial data
and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for them to be in conformity with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing standards, the consolidated statement of condition of United Security Bancorporation and subsidiaries as of December 31, 1999, and the related consolidated statements
of income, stockholders equity and cash flows for the year then ended (which are not presented herein), and in our report dated January 21, 2000, we expressed an unqualified opinion on those consolidated financial statements.  In our opinion, the
information set forth in the accompanying condensed consolidated statement of condition as of December 31, 1999, is fairly presented, in all material respects, in relation to the consolidated statement of condition from which it has been derived.

Everett, Washington                                     
                                          
                                   
/s/ Moss Adams LLP 
 October 13, 2000

3

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UNITED SECURITY BANCORPORATION

UNITED SECURITY BANCORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CONDITION

|($ In thousands)                                           |  | September 30, |         | December 31, |  
|---------------------------------------------------------- |  | ------------- | ------- | ------------ | -
|ASSETS                                                     |  | 2000          |         | 1999         |  
|                                                           |  |               |         |              |  
|Cash and due from banks                                    |  | $             | 20,485  |              | $
|Overnight interest bearing deposits with other banks       |  |               | 6,338   |              |  
|                                                           |  |               |         |              |  
|Cash and cash equivalents                                  |  |               | 26,823  |              |  
|                                                           |  |               |         |              |  
|Securities                                                 |  |               | 51,479  |              |  
|                                                           |  |               |         |              |  
|Loans, net of allowance for loan losses of $4,599 in 2000  |  |               |         |              |  
|and $4,349 in 1999                                         |  |               | 467,314 |              |  
|Accrued interest receivable                                |  |               | 6,259   |              |  
|Premises and equipment, net                                |  |               | 13,084  |              |  
|Foreclosed real estate and other foreclosed assets         |  |               | 1,524   |              |  
|Life insurance and salary continuation assets              |  |               | 4,268   |              |  
|Intangible assets                                          |  |               | 5,905   |              |  
|Other assets                                               |  |               | 1,598   |              |  
|                                                           |  |               |         |              |  
|TOTAL ASSETS                                               |  | $             | 578,254 |              | $
|                                                           |  |               |         |              |  
|LIABILITIES                                                |  |               |         |              |  
|Noninterest bearing - demand deposits                      |  | $             | 91,889  |              | $
|Interest bearing:                                          |  |               |         |              |  
|NOW and savings accounts                                   |  |               | 210,948 |              |  
|Time, $100,000 and over                                    |  |               | 60,314  |              |  
|Other time                                                 |  |               | 142,975 |              |  
|                                                           |  |               |         |              |  
|TOTAL DEPOSITS                                             |  |               | 506,126 |              |  
|Short-term borrowings                                      |  |               | 2,282   |              |  
|Capital lease obligations                                  |  |               | 672     |              |  
|Accrued interest payable                                   |  |               | 1,970   |              |  
|Other liabilities                                          |  |               | 3,311   |              |  
|                                                           |  |               |         |              |  
|TOTAL LIABILITIES                                          |  |               | 514,361 |              |  
|                                                           |  |               |         |              |  
|STOCKHOLDERS' EQUITY                                       |  |               |         |              |  
|Common stock, no par, shares authorized 15,000,000; issued |  |               |         |              |  
|and outstanding 7,139,947 in 2000 and 6,942,439 in 1999    |  |               | 47,912  |              |  
|Retained earnings                                          |  |               | 16,509  |              |  
|Accumulated other comprehensive loss, net of tax           |  |               | (528    | )            |  
|                                                           |  |               |         |              |  
|TOTAL STOCKHOLDERS' EQUITY                                 |  |               | 63,893  |              |  
|                                                           |  |               |         |              |  
|TOTAL LIABILITIES and STOCKHOLDERS' EQUITY                 |  | $             | 578,254 |              | $
|                                                           |  |               |         |              |  

The accompanying notes are an integral part of these statements.

4

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UNITED SECURITY BANCORPORATION

UNITED SECURITY BANCORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME

|($ In thousands, except per share)                  |  | Three Months Ended
September 30, |           | Year-to-Date
September 30, |  
|--------------------------------------------------- |  | -------------------------------- | --------- | -------------------------- | -
|                                                    |  |                                  |           |                            |  
|                                                    |  | 2000                             |           | 1999                       |  
|                                                    |  |                                  |           |                            |  
|INTEREST INCOME                                     |  |                                  |           |                            |  
|Interest and fees on loans and leases               |  | $                                | 12,128    |                            | $
|Interest on securities                              |  |                                  | 874       |                            |  
|Other interest income                               |  |                                  | 53        |                            |  
|                                                    |  |                                  |           |                            |  
|TOTAL INTEREST INCOME                               |  |                                  | 13,055    |                            |  
|                                                    |  |                                  |           |                            |  
|INTEREST EXPENSE                                    |  |                                  |           |                            |  
|Interest on deposits                                |  |                                  | 5,050     |                            |  
|Interest on borrowings                              |  |                                  | 221       |                            |  
|                                                    |  |                                  |           |                            |  
|TOTAL INTEREST EXPENSE                              |  |                                  | 5,271     |                            |  
|                                                    |  |                                  |           |                            |  
|NET INTEREST INCOME                                 |  |                                  | 7,784     |                            |  
|Provision for loan losses                           |  |                                  | 352       |                            |  
|                                                    |  |                                  |           |                            |  
|NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |  |                                  | 7,432     |                            |  
|                                                    |  |                                  |           |                            |  
|NONINTEREST INCOME                                  |  |                                  |           |                            |  
|Fees and service charges                            |  |                                  | 617       |                            |  
|Insurance commissions                               |  |                                  | 268       |                            |  
|Securities gains/(losses)                           |  |                                  | (340      | )                          |  
|Other                                               |  |                                  | 380       |                            |  
|                                                    |  |                                  |           |                            |  
|TOTAL NONINTEREST INCOME                            |  |                                  | 925       |                            |  
|                                                    |  |                                  |           |                            |  
|NONINTEREST EXPENSE                                 |  |                                  |           |                            |  
|Salaries and employee benefits                      |  |                                  | 3,194     |                            |  
|Occupancy expense, net                              |  |                                  | 446       |                            |  
|Equipment expense                                   |  |                                  | 362       |                            |  
|Intangible amortization                             |  |                                  | 93        |                            |  
|Other operating expense                             |  |                                  | 1,028     |                            |  
|                                                    |  |                                  |           |                            |  
|TOTAL NONINTEREST EXPENSE                           |  |                                  | 5,123     |                            |  
|                                                    |  |                                  |           |                            |  
|INCOME BEFORE TAXES                                 |  |                                  | 3,234     |                            |  
|                                                    |  |                                  |           |                            |  
|INCOME TAX EXPENSE                                  |  |                                  | 1,058     |                            |  
|                                                    |  |                                  |           |                            |  
|NET INCOME                                          |  | $                                | 2,176     |                            | $
|                                                    |  |                                  |           |                            |  
|Basic earnings per common share                     |  | $                                | 0.30      |                            | $
|                                                    |  |                                  |           |                            |  
|Diluted earnings per common share                   |  | $                                | 0.30      |                            | $
|Basic weighted average shares outstanding           |  |                                  | 7,258,305 |                            |  
|Diluted weighted average shares outstanding         |  |                                  | 7,299,085 |                            |  

The accompanying notes are an integral part of these
statements.

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UNITED SECURITY BANCORPORATION

UNITED SECURITY BANCORPORATION AND SUBSIDIARIESCONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
September 30, 2000 and 1999
($ in thousands)

|                                                |  | 2000 |         | 1999 |  
|----------------------------------------------- |  | ---- | ------- | ---- | -
|                                                |  |      |         |      |  
|Cash flows from operating activities:           |  |      |         |      |  
|Net income                                      |  | $    | 5,984   |      | $
|Provision for loan losses                       |  |      | 996     |      |  
|Depreciation and amortization                   |  |      | 828     |      |  
|(Increase)/decrease in assets and liabilities:  |  |      |         |      |  
|Accrued interest receivable                     |  |      | (1,765  | )    |  
|Life insurance and salary continuation assets   |  |      | (219    | )    |  
|Other assets                                    |  |      | (2      | )    |  
|Accrued interest payable                        |  |      | 603     |      |  
|Other liabilities                               |  |      | 971     |      |  
|                                                |  |      |         |      |  
|Net cash provided by operating activities       |  |      | 7,396   |      |  
|                                                |  |      |         |      |  
|Cash flows from investing activities:           |  |      |         |      |  
|Securities:                                     |  |      |         |      |  
|Maturities                                      |  |      | 10,483  |      |  
|Sales                                           |  |      | 5,128   |      |  
|Purchases                                       |  |      | (13,468 | )    |  
|Net increase in loans                           |  |      | (50,100 | )    |  
|Sales of premises and equipment                 |  |      | 509     |      |  
|Purchases of premises and equipment             |  |      | (1,288  | )    |  
|Foreclosed real estate activity                 |  |      | (345    | )    |  
|                                                |  |      |         |      |  
|Net cash change in investing activities         |  |      | (49,081 | )    |  
|                                                |  |      |         |      |  
|Cash flows from financing activities:           |  |      |         |      |  
|Net change in deposits                          |  |      | 53,227  |      |  
|Short-term borrowings activity                  |  |      | (5,226  | )    |  
|Principal payments on capital lease obligations |  |      | (18     | )    |  
|Cash payments for stock repurchases             |  |      | (5,916  | )    |  
|Cash received from stock sales                  |  |      | 422     |      |  
|Cash redemption of fractional shares            |  |      |         |      |  
|                                                |  |      |         |      |  
|Net cash provided by financing activities       |  |      | 42,489  |      |  
|                                                |  |      |         |      |  
|Net change in cash and cash equivalents         |  |      | 804     |      |  
|Cash and cash equivalents, beginning of year    |  |      | 26,019  |      |  
|                                                |  |      |         |      |  
|Cash and cash equivalents, end of quarter       |  | $    | 26,823  |      | $
|                                                |  |      |         |      |  

The accompanying notes are an integral part of these statements.

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UNITED SECURITY BANCORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1.   Management Statement

The consolidated financial statements include United Security Bancorporation and its wholly owned subsidiaries (USBN), United Security Bank, Home Security Bank, Bank of Pullman, Grant National Bank, AmericanWest Bank, and USB Insurance
Agencies, Inc. after eliminating all significant intercompany balances and transactions.

The interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. In
the opinion of management, all adjustments consisting only of normal recurring accruals necessary for a fair presentation of the financial condition and the results of operations for the interim periods included herein have been made. The consolidated
statement of condition of USBN as of December 31, 1999 has been derived from the audited consolidated statement of condition of USBN as of that date. The results of operations for the nine months ended September 30, 2000, are not necessarily indicative of
results to be anticipated for the year ending December 31, 2000.  For additional information, refer to the consolidated financial statements and footnotes thereto included in USBNs annual report on Form 10-K for the year ended December 31, 1999.

NOTE 2.   Securities

Most of the securities are classified as available-for-sale and are stated at fair value, and unrealized holding gains and losses, net of related deferred taxes, are reported as a separate component of stockholders equity.  Gains or
losses on available-for-sale securities sales are reported as part of noninterest income based on the net proceeds and the adjusted carrying amount of the securities sold, using the specific identification method.  Carrying amount and fair values at
September 30, 2000 and December 31, 1999 were as follows:

|                                           |  | September 30, 2000 |           | December 31, 1999 |  
|------------------------------------------ |  | ------------------ | --------- | ----------------- | -
|                                           |  |                    |           |                   |  
|                                           |  |                    | Amortized |                   |  
|($ in thousands)                           |  |                    | Cost      |                   |  
|                                           |  |                    |           |                   |  
|Securities available-for-sale:             |  |                    |           |                   |  
|U.S. Treasury securities                   |  | $                  | 2,499     |                   | $
|Obligations of federal government agencies |  |                    | 18,790    |                   |  
|Mortgage backed securities                 |  |                    | 9,513     |                   |  
|Obligations of states, municipalities and  |  |                    |           |                   |  
|political subdivisions                     |  |                    | 7,646     |                   |  
|Other securities                           |  |                    | 13,127    |                   |  
|                                           |  |                    |           |                   |  
|                                           |  |                    | 51,575    |                   |  
|Securities held-to-maturity:               |  |                    |           |                   |  
|Obligations of states, municipalities and  |  |                    |           |                   |  
|political subdivisions                     |  |                    | 705       |                   |  
|                                           |  |                    |           |                   |  
|Total                                      |  | $                  | 52,280    |                   | $
|                                           |  |                    |           |                   |  

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UNITED SECURITY BANCORPORATION

NOTE 3.   LOANS

Loan detail by category as of September 30, 2000 and December 31, 1999 were as follows:

|($ in thousands)                          |  | September 30, 
 2000 |         | December 31, 
 1999 |  
|----------------------------------------- |  | -------------------- | ------- | ------------------- | -
|                                          |  |                      |         |                     |  
|Commercial and industrial                 |  | $                    | 299,709 |                     | $
|Agricultural                              |  |                      | 71,781  |                     |  
|Real estate mortgage                      |  |                      | 58,756  |                     |  
|Real estate construction                  |  |                      | 12,863  |                     |  
|Installment                               |  |                      | 21,957  |                     |  
|Bank cards and other                      |  |                      | 7,668   |                     |  
|                                          |  |                      |         |                     |  
|Total loans                               |  |                      | 472,734 |                     |  
|Allowance for loan losses                 |  |                      | (4,599  | )                   |  
|Deferred loan fees, net of deferred costs |  |                      | (821    | )                   |  
|                                          |  |                      |         |                     |  
|Net loans                                 |  | $                    | 467,314 |                     | $
|                                          |  |                      |         |                     |  

NOTE 4.   ALLOWANCE FOR LOAN LOSSES

The allowance for loan loss is maintained at levels considered adequate by management to provide for possible loan losses.  The allowance is based on managements assessment of various factors affecting the loan portfolio, including
problem loans, business conditions and loss experience, and an overall evaluation of the quality of the underlying collateral. Changes in the allowance for loan losses during the three and nine months ended September 30, 2000 and 1999 were as follows:



|                             |  | Three Months
 Ended
    September 30, |       | Year-To-DateSeptember 30, |  
|---------------------------- |  | ------------------------------------- | ----- | ------------------------- | -
|                             |  |                                       |       |                           |  
|($ in thousands)             |  |                                       | 2000  |                           |  
|                             |  |                                       |       |                           |  
|Balance, beginning of period |  | $                                     | 4,300 |                           | $
|Provision for loan losses    |  |                                       | 352   |                           |  
|Loan charge-offs             |  |                                       | (75   | )                         |  
|Loan recoveries              |  |                                       | 22    |                           |  
|Balance, end of period       |  | $                                     | 4,599 |                           | $
|                             |  |                                       |       |                           |  

NOTE 5. Stock Repurchases

In June 2000 the Board of Directors approved a stock repurchase program authorizing the repurchase of up to 732,000 shares. If all 732,000 shares are repurchased, it will represent approximately 10% of USBNs outstanding common stock.
As of September 30, 2000 approximately 177,000 shares have been repurchased for $1.7 million. Currently, USBN has 7.1 million shares outstanding.  In addition to the current stock repurchase program approximately 385,000 shares were repurchased in first
quarter 2000.

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UNITED SECURITY BANCORPORATION

Item 2.   Managements Discussion and Analysis of Financial Condition and Results of Operations

The following discussion contains a review of the results of operations and financial condition for third quarter and the  results in 2000 and 1999.  This information should be read in conjunction with the financial statements and related
notes appearing in this report. The reader is assumed to have access to USBNs Form 10-K for the year ended December 31, 1999, which contains additional information.

This discussion may contain certain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from those stated. Readers are cautioned not to place undue reliance on these forward-looking statements.

Overview

A performance summary and detailed discussion regarding the third quarter and  results for 2000 and 1999 follows this table.

UNITED SECURITY BANCORPORATION AND SUBSIDIARIES
PERFORMANCE SUMMARY

|                                                    |  | Three Months Ended September 30, |        | Year-To-Date September 30, |  
|--------------------------------------------------- |  | -------------------------------- | ------ | -------------------------- | -
|                                                    |  |                                  |        |                            |  
|                                                    |  |                                  |        |                            |  
|($ in thousands, except per share)                  |  | 2000                             |        | 1999                       |  
|                                                    |  |                                  |        |                            |  
|Interest income                                     |  | $                                | 13,055 |                            | $
|Interest expense                                    |  |                                  | 5,271  |                            |  
|                                                    |  |                                  |        |                            |  
|Net interest income                                 |  |                                  | 7,784  |                            |  
|Provision for loan losses                           |  |                                  | 352    |                            |  
|                                                    |  |                                  |        |                            |  
|Net interest income after provision for loan losses |  |                                  | 7,432  |                            |  
|Noninterest income                                  |  |                                  | 925    |                            |  
|Noninterest expense                                 |  |                                  | 5,123  |                            |  
|                                                    |  |                                  |        |                            |  
|Income before income taxes                          |  |                                  | 3,234  |                            |  
|Income taxes                                        |  |                                  | 1,058  |                            |  
|                                                    |  |                                  |        |                            |  
|Net income                                          |  | $                                | 2,176  |                            | $
|                                                    |  |                                  |        |                            |  
|                                                    |  |                                  |        |                            |  
|Basic earnings per common share                     |  | $                                | 0.30   |                            | $
|Diluted earnings per common share                   |  | $                                | 0.30   |                            | $

Net Income

USBN reported net income of $5,984,000 for the first nine months of 2000 compared to $7,645,000 for the same period in 1999. Diluted earnings per share were $.81 in 2000 and $.99 in 1999. Third quarter earnings were $2,176,000 for 2000 and
$2,641,000 for 1999. Diluted earnings per share were $.30 for 2000 and $.34 for 1999. Third quarter and  2000 net earnings were reduced $125,000 and $.02 due to a loss on the sale of securities, offset with a gain on the sale of real estate. 1999 net
earnings were improved by $825,000 and $.11 per share from the gain on the sale of the Bank of the West name.

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UNITED SECURITY BANCORPORATION

Net Interest Income

Year 2000 net interest income grew 4% to $22,014,000 compared to $21,175,000 in 1999. The growth in net interest income was due to loan volume growth, which on an average basis grew to $442 million in 2000 from $386 million in 1999. The net
interest margin to average earning assets declined from 6.16% in 1999 to 5.87% in 2000. The net interest margin was .07% lower in 2000 compared to 1999 due to the impact of reduced interest income from nonaccrual loans.

Provision for Loan Losses

The allowance for possible loan losses is based on managements evaluation of the loan portfolio. The allowance for loan losses is .97% of loans as of September 30, 2000 and 1.02% as of September 30, 1999.  Loans outstanding have grown
14% during that same period.

Noninterest Income

Noninterest income declined by $1,250,000 due to a nonrecurring gain from the sale of the Bank of the West name in June 1999. Noninterest income was $3,011,000 in 2000 and $4,906,000 in 1999 including the gain on the sale of the name. Fees
and service charges declined slightly to $1,857,000 in 2000 from $1,891,000 in 1999 with a comparative improvement during third quarter 2000 as the fees related to deposits increased. Insurance commissions declined to $735,000 in 2000 compared to $771,000
in 1999.  During third quarter 2000 USBN sold $2,663,000 of marketable equity securities, which lead to a loss of $340,000 in securities losses.  The funds received from the sale were reinvested in new loan originations, which will improve future net
interest income. This loss was offset by a gain of $168,000 on the sale of real estate related to the relocation of a bank branch. Other noninterest income was lower in 2000 primarily due to nonrecurring gains on the sale of the name, escrow servicing and
real estate owned.

Noninterest Expense

Noninterest expense increased 8% to $15,491,000 in 2000 from $14,358,000 in 1999. The increase was primarily due to additional expenses for the six new branches opened by USB and BOP in the latter part of 1999 and to accrue expense for a new
employee incentive program designed to create and reward productivity.  Also expense was incurred for a new Computer Center opened in first quarter 2000.

Stock Repurchase Program

In June 2000 the Board of Directors approved a stock repurchase program authorizing the repurchase of up to 732,000 shares. If all 732,000 shares are repurchased, it will represent approximately 10% of USBNs outstanding common stock.
As of September 30, 2000 approximately 177,000 shares have been repurchased for $1.7 million. Currently, USBN has 7.1 million shares outstanding.  In addition to the current stock repurchase program approximately 385,000 shares were repurchased in first
quarter 2000.

10

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UNITED SECURITY BANCORPORATION

Item 3.   Quantitative and Qualitative Disclosures About Market Risk.

Management considers interest rate risk to be a market risk that could have a significant effect on the financial condition of USBN.  There have been no material changes in reported market risks faced by USBN since the end of the most recent
fiscal year.

Part II
Other Information

Item 6.   Exhibits and Reports on Form 8-K

| | (a) | Exhibits   
    Exhibit 27                             | Financial Data Schedule.
| | --- | ------------------------------------------------------ | ------------------------
| |     |                                                        |                         
| | (b) | Reports on Form 8-K   
    None in third quarter 2000. |                         

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 on October 19, 2000.

| | UNITED SECURITY BANCORPORATION                                 
| | ---------------------------------------------------------------
| |                                                                
| | \s\ WESCOLLEY                                                  
| |                                                                
| | Wes Colley, President and
      Chief Executive Officer        
| |                                                                
| | \s\ CHADGALLOWAY                                               
| |                                                                
| | Chad Galloway, Vice President and
      Chief Financial Officer

11

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