WESTERFED FINANCIAL CORPORATION ANNOUNCES

RECORD THIRD QUARTER EARNINGS

Missoula, Montana -- October 19, 2000  -- WesterFed Financial Corporation (the "Company") (NASDAQ - WSTR), the holding company for Western Security Bank (the "Bank"), announced earnings for the quarter ended September 30, 2000 of $2.6
million, or  $0.64 per share diluted (cash earnings of $0.72 per share), as compared to $2.0 million, or $0.44 per share (cash earnings of $0.52 per share) for the same period last year.  Earnings for the nine-month period ended September 30, 2000 were
$6.5 million, or  $1.59 per share diluted (cash earnings of $1.83 per share), as compared to $5.3 million, or $1.18 per share diluted (cash earnings of $1.43 per share), for the same period last year.   Included in earnings for the current quarter and
year to date is a fee of $870,000 related to the prepayment of a large commercial real estate loan.  Earnings per share diluted without this fee for the quarter and nine-month period ended September 30, 2000 would be a record $0.50 and $1.45 respectively,
which are increases of 13.6% and 22.9%, respectively, over the same periods last year.  Cash earnings, which represent the amount by which tangible equity changes each period due to operating results, include reported earnings plus the non-cash charges
for goodwill amortization and amortization relating to core deposit intangible and certain employee stock plans and related tax benefit.

WesterFed President and Chief Executive Officer Ralph Holliday stated, "On September 20, 2000, it was jointly announced that WesterFed Financial Corporation had signed a definitive agreement to be acquired by Glacier Bancorp, Inc.
of Kalispell, Montana.  The new larger Glacier franchise will provide our organization with the ability to provide more banking products and services to our customers, as well as accelerating our transition to a commercial lending organization.  The
continued improvement of our earnings and performance ratios for this quarter and for the current year reflects that WesterFed is well positioned to contribute to the success of our new partnership with Glacier."

Holliday further stated, "We have continued to improve on the Company's efficiency ratio, (the ratio of non-interest expense to net interest income and non-interest income), which was 61.09% for the nine-month period ended
September 30, 2000 as compared to 67.73% for the same period last year, a 9.8% reduction.  The efficiency ratio without intangibles amortization decreased to 58.01% for the nine-month period ended September 30, 2000 as compared to 64.33% for the same
period last year, also a 9.8% reduction.   Asset quality remains good with a ratio of non-performing assets to total assets of 0.32% at September 30, 2000 as compared to 0.41% last year.  We have also charged income $450,000 this quarter and $1.3 million
year to date for additional loan loss provisions.  Loan loss reserves to total loans are now 0.99% as compared to 0.83% at December 31, 1999.  Allowance for loan losses to non-performing assets are 205.8% at September 30, 2000 as compared to 128.8% at
September 30, 1999.   In addition, because of our stock repurchase programs and earnings, our return on equity has increased 28.6% to 11.33% for the quarter ended September 30, 2000 as compared to 8.81% for the same period last year."

Total assets decreased $68.0 million to $933.0 million at September 30, 2000 as compared to $1.001 billion at December 31, 1999.  Loans receivable and loans available-for-sale increased $1.2 million, other non-earning assets decreased
$9.0 million and investment securities, Federal Home Loan Bank stock and all other interest earning assets decreased $60.0 million.  The $1.2 million increase in loans receivable and loans available-for-sale is primarily the result of increases in
commercial and agriculture loans of $19.3 million, other consumer related loans of $11.1 million and construction loans of $15.6 million, partially offset by decreases in residential loans of $23.7 million and  $18.4 million in dealer finance loans.  The
$60.0 million decrease in investment securities was primarily the result of the sale of $47.6 million of investment securities available-for-sale to pay down Federal Home Loan Bank advances that were used to fund the sale of bank branches during the year.
 Total
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deposits decreased $55.5 million, primarily as a result of the sale of $50.5 million of deposits related to that sale of branches.  Borrowed funds and repurchase agreements decreased $22.3 million as funds received from the reduction in assets discussed
above were used to pay down borrowings.  Stockholders' equity increased $2.5 million to $92.0 million, due primarily to earnings of $6.5 million, the issuance of 81,902 new common shares related to the exercise of stock options with a recorded value of
$884,000, and a $1.4 million change in net unrealized losses associated with securities classified as available-for-sale. These increases to stockholders' equity were partially offset by the repurchase of 319,500 shares of common stock at a total cost of
$4.6 million and dividends declared totaling $2.0 million.

Net income increased $559,000, or 27.8%, to $2.6 million for the quarter ended September 30, 2000 from $2.0 million for the same period last year.  Net interest income before provision for loan losses for the quarter ended September
30, 2000 decreased $522,000 to $7.6 million as compared to $8.1 million over the same period last year.  Interest expense increased $428,000 while interest income decreased $94,000 for the quarter ended September 30, 2000 as compared to the same period
last year. The provision for loan losses was $450,000 for the quarter.  These provisions were required to bring the allowance for loan losses to a level which is considered adequate to absorb losses inherent in the loan portfolio, especially related to
charge-offs incurred with dealer finance loans and other consumer related loans.  Total non-interest income increased $758,000 to $2.9 million during the quarter ended September 30, 2000 from $2.1 million during the same period last year.   Loan
origination income decreased $108,000 while service fees increased $882,000 for the quarter ended September 30, 2000 as compared to the same period last year.  The $882,000 includes a fee of $870,000 related to the early payment of a large commercial real
estate loan.  Non-interest expenses decreased $649,000, or 10.0%, to $5.8 million for the quarter ended September 30, 2000, down from $6.5 million for the same period last year.

Net income increased $1.2 million, or 20.8%, to $6.5 million for the nine-month period ended September 30, 2000 as compared to $5.3 million for the same period last year.  The $1.2 million increase in net income was comprised primarily
of an increase in non-interest income of $1.1 million and a $2.0 million decrease in non-interest expense, partially offset by a $115,000 increase in provision for loan losses and a decrease in net interest income of $1.0 million. The interest rate spread
was 3.10% at September 30, 2000 as compared to 3.10% at December 31, 1999 and 3.17% at September 30, 1999.

Interest income increased $835,000 to $53.1 million for the nine-month period ended September 30, 2000 from $52.3 million for the same period last year.  This increase was primarily the result of an increase in the average yield on
interest-earning assets to 7.82% during nine -month period ended September 30, 2000 from 7.53% during the same period last year.

Interest expense increased $1.8 million to $30.3 million for the nine-month period ended September 30, 2000 from $28.5 million for the same period last year.  This increase in interest expense was primarily the result of an increase
in the average rate paid on interest-bearing liabilities to 4.70% during nine-month period ended September 30, 2000 from 4.30% during the same period last year.

The provision for loan losses increased $115,000 to $1.3 million for the nine-month period ended September 30, 2000 from $1.2 million for the same period last year. The increased provision is primarily related to dealer finance and
other consumer loans.  At September 30, 2000, the Company had $3.0 million of non-performing assets (representing 0.32% of total assets) compared to $3.1 million at December 31, 1999 (representing 0.31% of total assets) and $2.9 million at June 30, 2000
(representing 0.31% of total assets).  The 0.32% is less than the national composite for thrifts of 0.58% at June 30, 2000, which is the latest available information reported by the Office of Thrift Supervision.  At September 30, 2000, the Company had a
ratio of allowance for loan losses to non-performing assets of 205.8% as compared to 165.4% at December 31, 1999 and 196.9% at June 30,
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2000.  Management's evaluation of the adequacy of its loan loss reserves, the quality of the loan portfolio and economic conditions in Montana resulted in the $1.3 million provision for loan losses.  Future additions to the Company's allowance for loan
losses and any change in the related ratio of the allowance for loan losses to non-performing loans are dependent upon the performance and composition of the Company's loan portfolio, the economy, inflation, changes in real estate values and interest
rates and the view of the regulatory authorities toward adequate reserve levels.

Non-interest income increased $1.2 million to $7.7 million during the nine-month period ended September 30, 2000 from $6.5 million during the same period last year.  The $1.2 million increase resulted primarily from the $1.9 million
gain on sale of branches and a $1.3 million increase in service fees, partially offset by a $760,000 decrease in loan origination income and a $1.1 million loss on the sale of investment securities available-for-sale.  The increasing interest rate
environment that existed during the nine-month period ended September 30, 2000 as compared to the lower interest rate environment during the same period last year resulted in reduced loan refinance activity.   Loans sold decreased to $37.2 million during
the nine-month period ended September 30, 2000 as compared to $61.5 million during the same period last year.  Seasonal fluctuations in loan volume and a decline in loan volume due to increased interest rates could continue to adversely affect origination
fees and gains on sale of loans available-for- sale.

Non-interest expense decreased $2.0 million, or 9.5%, to $18.6 million during the nine-month period ended September 30, 2000 from $20.6 million during the same period last year.   Compensation and employee benefits decreased $1.2
million, equipment expense decreased $347,000 and other operating expenses decreased $491,000.  Compensation and employee benefits for the nine-month period ended September 30, 1999 included $575,000 related to the payment of early retirement incentives
and other compensation not incurred during the nine-month period ended September 30, 2000.

FORWARD LOOKING STATEMENTS

When used in this press release or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "will likely result," "are expected to," "will continue,"
"is anticipated," "estimate," "project," "significantly" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  The Company wishes to caution readers not to
place undue reliance on any forward-looking statements, which speak only as of the date made, and to advise readers that various factors including regional and national economic conditions, changes in levels of market interest rates, credit risks of
lending activities, competitive and regulatory factors could affect the Bank's financial performance and could cause the Company's actual results for future periods to differ materially from those anticipated or projected.

The Company does not undertake, and specifically disclaims, any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated
events or circumstances after the date of such statements.

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



| | CONTACT:       | Ralph K. Holliday, President/Chief Executive Officer or James A. Salisbury, Executive Vice President/Treasurer and Chief Financial Officer,
 both of WesterFed Financial Corporation (WSTR)
| | -------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (406) 721-5254

|                                                                                                                                                                           | September 30,2000                 |  | December 31, 1999                
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------- |  | ---------------------------------
|ASSETS                                                                                                                                                                     |                                   |  |                                  
|Cash and due from banks                                                                                                                                                    | $             15,289              |  | $             20,233             
|Interest-bearing due from banks                                                                                                                                            | 1,238                             |  | 5,910                            
|Cash and cash equivalents                                                                                                                                                  | 16,527                            |  | 26,143                           
|Interest-bearing deposits                                                                                                                                                  | 100                               |  | 100                              
|Investment securities available-for-sale                                                                                                                                   | 145,020                           |  | 187,488                          
|Investment securities, at amortized cost (estimated fair value
      of $76,337 at September 30, 2000 and $87,121 at December 31, 1999)                                    | 75,980                            |  | 86,877                           
|Stock in Federal Home Loan Bank of Seattle, at cost                                                                                                                        | 12,852                            |  | 15,154                           
|Loans available-for-sale                                                                                                                                                   | 4,183                             |  | 4,470                            
|Loans receivable, net                                                                                                                                                      | 617,768                           |  | 616,281                          
|Interest receivable                                                                                                                                                        | 7,284                             |  | 7,492                            
|Premises and equipment, net                                                                                                                                                | 25,118                            |  | 27,477                           
|Core deposit intangible                                                                                                                                                    | 2,961                             |  | 3,401                            
|Goodwill                                                                                                                                                                   | 14,264                            |  | 14,763                           
|Cash surrender value of life insurance policies                                                                                                                            | 8,465                             |  | 8,164                            
|Other assets                                                                                                                                                               | 2,487                             |  | 3,075                            
|Total assets                                                                                                                                                               | $           933,009 ============  |  | $         1,000,885 ============ 
|                                                                                                                                                                           |                                   |  |                                  
|**LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                                                                                   |                                   |  |                                  
|Liabilities:                                                                                                                                                               |                                   |  |                                  
|Deposits                                                                                                                                                                   | $           602,913               |  | $           658,404              
|Repurchase agreements                                                                                                                                                      | 8,753                             |  | 7,731                            
|Borrowed funds                                                                                                                                                             | 203,760                           |  | 227,078                          
|Advances from borrowers for taxes and insurance                                                                                                                            | 6,200                             |  | 3,296                            
|Income taxes - current and deferred                                                                                                                                        | 1,546                             |  | 597                              
|Accrued interest payable                                                                                                                                                   | 8,069                             |  | 6,476                            
|Accrued expenses and other liabilities                                                                                                                                     | 9,777                             |  | 7,778                            
|Total liabilities                                                                                                                                                          | 841,018                           |  | 911,360                          
|Stockholders' Equity:                                                                                                                                                      |                                   |  |                                  
|Preferred stock, $.01 par value, 5,000,000 shares authorized;      none outstanding                                                                                        | --                                |  | --                               
|Common stock, $.01 par value, 10,000,000 shares authorized;
      4,113,886 shares outstanding at September 30, 2000, and
      4,351,404 outstanding at December 31, 1999 | 57                                |  | 56                               
|Paid-in capital                                                                                                                                                            | 71,017                            |  | 70,040                           
|Common stock acquired by ESOP/RRP                                                                                                                                          | (1,892)                           |  | (2,090)                          
|Treasury stock, at cost                                                                                                                                                    | (33,537)                          |  | (28,974)                         
|Accumulated other comprehensive loss                                                                                                                                       | (1,529)                           |  | (2,930)                          
|Retained earnings                                                                                                                                                          | 57,875                            |  | 53,423                           
|Total stockholders' equity                                                                                                                                                 | 91,991                            |  | 89,525                           
|Total liabilities and stockholders' equity                                                                                                                                 | $           933,009============   |  | $        1,000,885============   
|Book value per common share outstanding                                                                                                                                    | $              22.36
============ |  | $              20.57
============
|Tangible book value per common share outstanding                                                                                                                           | $              18.17
============ |  | $             16.40
============ 

|                                                         | Three Months Ended
September 30, | Nine Months Ended
September 30,
|-------------------------------------------------------- | -------------------------------- | -------------------------------
|                                                         | 2000                             | 1999                           
|Interest income:                                         |                                  |                                
|Loans receivable                                         | $      13,443                    | $      12,950                  
|Investment securities                                    | 4,052                            | 4,609                          
|Interest-bearing deposits                                | 29                               | 96                             
|Other                                                    | 127                              | 90                             
|Total interest income                                    | 17,651                           | 17,745                         
|Interest expense:                                        |                                  |                                
|NOW and money market demand                              | 1,044                            | 935                            
|Savings                                                  | 483                              | 545                            
|Certificates of deposit                                  | 5,001                            | 4,634                          
|                                                         | 6,528                            | 6,114                          
|Borrowed funds and repurchase agreements                 | 3,551                            | 3,537                          
|Total interest expense                                   | 10,079                           | 9,651                          
|Net interest income                                      | 7,572                            | 8,094                          
|Provision for loan losses                                | 450                              | 445                            
|Net interest income after provision for loan losses      | 7,122                            | 7,649                          
|Non-interest income:                                     |                                  |                                
|Loan origination income                                  | 559                              | 667                            
|Service fees                                             | 2,231                            | 1,349                          
|Net gain (loss) on sale of securities available-for-sale | 7                                | 5                              
|Net gain on sale of branches                             | --                               | --                             
|Other                                                    | 78                               | 96                             
|Total non-interest income                                | 2,875                            | 2,117                          
|Non-interest expenses:                                   |                                  |                                
|Compensation and employee benefits                       | 2,838                            | 3,137                          
|Net occupancy and expense of premises                    | 396                              | 399                            
|Equipment and furnishings                                | 373                              | 500                            
|Data processing                                          | 399                              | 407                            
|Deposit insurance premium                                | 31                               | 84                             
|Intangibles amortization                                 | 306                              | 337                            
|Marketing and advertising                                | 140                              | 181                            
|Other                                                    | 1,338                            | 1,425                          
|Total non-interest expense                               | 5,821                            | 6,470                          
|Income before income taxes                               | 4,176                            | 3,296                          
|Income taxes                                             | 1,609                            | 1,288                          
|Net income                                               | $      2,567
========            | $      2,008
========          
|Net income per common share:                             |                                  |                                
|Basic                                                    | $        0.66
========           | $        0.46
========         
|Diluted                                                  | $        0.64
========           | $        0.44
========         
|Dividends per share                                      | $      0.175
========            | $      0.155
========          
|Dividend payout ratio -- basic                           | 26.52%
========                  | 33.70%
========                
|Average common and common equivalent shares outstanding: |                                  |                                
|Basic                                                    | 3,899,295 
========              | 4,354,871 
========            
|Diluted                                                  | 4,024,907 
========              | 4,516,508 
========            

|                                                                                            | Three Months EndedSeptember 30, | Nine Months EndedSeptember 30,
|------------------------------------------------------------------------------------------- | ------------------------------- | ------------------------------
|                                                                                            | 2000                            | 1999                          
|Performance Ratios:                                                                         |                                 |                               
|Return on assets (ratio of net income to average total assets) (1)                          | 1.09%                           | 0.79%                         
|Return on equity (ratio of net income to average equity) (1)                                | 11.33                           | 8.81                          
|                                                                                            |                                 |                               
|Interest rate spread information:                                                           |                                 |                               
|Average during period                                                                       | 3.16                            | 3.26                          
|End of period                                                                               | 3.10                            | 3.17                          
|Net interest margin (1) (4)                                                                 | 3.45                            | 3.45                          
|Ratio of non-interest expense to average total assets (1)                                   | 2.48                            | 2.56                          
|Efficiency ratio (2)                                                                        | 55.72                           | 63.36                         
|Efficiency ratio without intangibles (3)                                                    | 52.78                           | 60.06                         
|                                                                                            |                                 |                               
|Asset Quality Ratios:                                                                       |                                 |                               
|Non-performing assets to total assets, at end of period                                     | 0.32                            | 0.41                          
|Total allowance for loan losses to total non-performing            assets (5)               | 205.79                          | 128.80                        
|Capital Ratios:                                                                             |                                 |                               
|Stockholders' equity to total assets, at end of period                                      | 9.86                            | 8.92                          
|Tangible stockholders' equity to tangible assets, at end of period                          | 8.16                            | 7.22                          
|Ratio of average interest-earning assets to average            interest-bearing liabilities | 106.32                          | 104.50                        

---

|                                                                              | Three Months Ended            | Nine Months Ended     
|----------------------------------------------------------------------------- | ----------------------------- | ----------------------
|                                                                              | SEPTEMBER 30, 2000            | SEPTEMBER 30, 1999    
|                                                                              | AverageOutstandingBalance (1) | InterestEarned/Paid   
|                                                                              | (Dollars in Thousands)        | (Dollars in Thousands)
|INTEREST EARNING  ASSETS:                                                     |                               |                       
|Loans receivable (2) (3)                                                      | $631,114                      | $13,443               
|Investment securities                                                         | 236,518                       | 4,052                 
|Other interest-earning    assets (4)                                          | 1,689                         | 29                    
|Cash surrender value of    life insurance                                     | 8,433                         | 127                   
|Total Interest-Earning Assets                                                 | $877,754======                | $17,651======         
|INTEREST-BEARING
  LIABILITIES:                                               |                               |                       
|Certificates of deposits                                                      | $335,258                      | $5,001                
|Savings accounts                                                              | 74,717                        | 483                   
|Demand and NOW accounts                                                       | 114,841                       | 193                   
|Money market accounts                                                         | 79,106                        | 851                   
|Total deposits                                                                | 603,922                       | 6,528                 
|FHLB advances and other
    borrowed money                                    | 221,684                       | 3,551                 
|Total Interest-Bearing Liabilities                                            | $825,606======                | $10,079======         
|Net interest income                                                           |                               | $7,572======          
|Net interest rate spread                                                      |                               |                       
|Net interest earning assets                                                   | $ 52,148======                |                       
|Net interest margin (5)                                                       |                               |                       
|Average interest-earning
   assets to average interest-
  bearing liabilities |                               | 106.32%======         

---

|                                           | September 30,2000 | December 31,1999
|------------------------------------------ | ----------------- | ----------------
|                                           | (In Thousands)   
|Non-accruing loans:                        |                   |                 
|Real Estate:                               |                   |                 
|One- to four-family                        | $   918           | $   549         
|Multi-family                               | --                | --              
|Nonresidential property (except land)      | 47                | 348             
|Land                                       | --                | --              
|Construction                               | 110               | 324             
|Agriculture (non-real estate)              | 1,143             | 1,113           
|Commercial (non-real estate)               | 39                | 51              
|Consumer                                   | 494               | 508             
|Total                                      | 2,751             | 2,893           
|                                           |                   |                 
|Accruing loans delinquent 90 days or more: |                   |                 
|Real Estate:                               | --                | 40              
|One- to four-family                        | --                | --              
|Multi-family                               | --                | --              
|Nonresidential property (except land)      | --                | --              
|Construction                               | --                | --              
|Agriculture (non-real estate)              | --                | --              
|Commercial (non-real estate)               | 2                 | 20              
|Total                                      | 2                 | 60              
|                                           |                   |                 
|Foreclosed assets:                         |                   |                 
|Real Estate:                               |                   |                 
|One- to four-family                        | 220               | 94              
|Multi-family                               | --                | --              
|Commercial                                 | --                | --              
|Land                                       | --                | 26              
|Construction                               | --                | --              
|Consumer                                   | 52                | 48              
|Total                                      | 272               | 168             
|Total non-performing assets                | $   3,025======   | $   3,121====== 

|                                                                                                    | For the Three Month
Period Ended September 30, | For the Nine Month
Period Ended September 30,
|--------------------------------------------------------------------------------------------------- | ---------------------------------------------- | ---------------------------------------------
|                                                                                                    | 2000                                           | 1999                                         
|                                                                                                    | (In Thousands)                                 | (In Thousands)                               
|Balance at beginning of period                                                                      | $5,780                                         | $5,080                                       
|                                                                                                    |                                                |                                              
|Charge-Offs:                                                                                        |                                                |                                              
|Real Estate:                                                                                        |                                                |                                              
|One- to four-family                                                                                 | --                                             | (4)                                          
|Commercial                                                                                          | --                                             | --                                           
|Other:                                                                                              |                                                |                                              
|Commercial                                                                                          | --                                             | (45)                                         
|Consumer                                                                                            | (103)                                          | (212)                                        
|Total charge-offs                                                                                   | (103)                                          | (261)                                        
|                                                                                                    |                                                |                                              
|Recoveries:                                                                                         |                                                |                                              
|Real Estate:                                                                                        |                                                |                                              
|One- to four-family                                                                                 | --                                             | --                                           
|Commercial                                                                                          | --                                             | --                                           
|Other:                                                                                              |                                                |                                              
|Commercial                                                                                          | 5                                              | --                                           
|Consumer                                                                                            | 93                                             | 36                                           
|Total recoveries                                                                                    | 98                                             | 36                                           
|Net charge-offs                                                                                     | (5)                                            | (225)                                        
|Provisions charged to operations                                                                    | 450                                            | 445                                          
|Balance at end of period                                                                            | $6,225========                                 | $5,300========                               
|                                                                                                    |                                                |                                              
|Ratio of net charge-offs during the period to average
      loans outstanding during the period     | 0.00%========                                  | 0.04%========                                
|                                                                                                    |                                                |                                              
|Ratio of net charge-offs during the period to average
      non-performing assets during the period | 0.12%========                                  | 3.68%========                                
|                                                                                                    |                                                |                                              
|Ratio of allowance for loan losses to net loans before
      allowance                              | 0.99%========                                  | 0.83%========