Washington, D.C. 20549

|(Mark One) |                                                                                         
|---------- | ----------------------------------------------------------------------------------------
|[   X   ]  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THESECURITIES EXCHANGE ACT OF 1934 
|           | For the quarter ended September 30, 2000                                                
|           |                                                                                         
|           | OR                                                                                      
|           |                                                                                         
|[        ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OFTHE SECURITIES EXCHANGE ACT OF 1934
|           |                                                                                         
|           | For the transition period from _______________ to _______________                       

|Commission file number | 0-22772
|---------------------- | -------

|WESTERFED FINANCIAL CORPORATION                        
|-------------------------------------------------------
|(Exact name of registrant as specified in this charter)
|                                                       
|                                                       

|Delaware                                                      |  | 81-0487794         
|------------------------------------------------------------- |  | -------------------
|(State or other jurisdiction ofincorporation or organization) |  | (IRS Employer ID #)
|                                                              |  |                    
|                                                              |  |                    
|110 East Broadway, Missoula, Montana                          |  | 59802              
|(Address of principal executive offices)                      |  | (Zip Code)         
|                                                              |  |                    
|                                                              |  |                    

|Yes | [  X  ] | NO | [     ]
|--- | ------- | -- | -------

|**PART I -- FINANCIAL INFORMATION** | Page                                                                                                                                 
|----------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------
|                                    |                                                                                                                                      
|ITEM 1.                             | FINANCIAL STATEMENTS                                                                                                                 
|                                    | Consolidated Balance Sheets - September 30, 2000 and December 31, 1999                                                               
|                                    | Consolidated Statements of Income - Three and Nine Month Periods Ended September 30,      2000 and September 30, 1999                
|                                    | Consolidated Statements of Comprehensive Income for Three and Nine Month Periods      Ended September 30, 2000 and September 30, 1999
|                                    | Consolidated Statement of Stockholders' Equity for the Nine Month Periods Ended      September 30, 2000                              
|                                    | Consolidated Statements of Cash Flows for the Nine Month Periods Ended September 30, 2000      and September 30, 1999                
|                                    |                                                                                                                                      
|                                    | Notes to Consolidated Financial Statements                                                                                           
|                                    | 1.                                                                                                                                   
|                                    | 2.                                                                                                                                   
|                                    | 3.                                                                                                                                   
|                                    | 4.                                                                                                                                   
|                                    | 5.                                                                                                                                   
|                                    | 6.                                                                                                                                   
|                                    | 7.                                                                                                                                   
|                                    |                                                                                                                                      
|ITEM 2.                             | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                
|                                    | 1.                                                                                                                                   
|                                    | 2.                                                                                                                                   
|                                    | 3.                                                                                                                                   
|                                    | 4.                                                                                                                                   
|                                    |                                                                                                                                      
|ITEM 3.                             | Quantitative and Qualitative Disclosures about Market Risk                                                                           
|                                    |                                                                                                                                      
|**PART II -- OTHER INFORMATION**    |                                                                                                                                      
|                                    |                                                                                                                                      
|                                    | Item 1                                                                                                                               
|                                    | Item 2                                                                                                                               
|                                    | Item 3                                                                                                                               
|                                    | Item 4                                                                                                                               
|                                    | Item 5                                                                                                                               
|                                    | Item 6                                                                                                                               
|                                    |                                                                                                                                      
|**SIGNATURES**                      | 26                                                                                                                                   

|**ASSETS**                                                                                                                                                                                                      | September 30, 2000 | December 31, 1999  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | -------------------
|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 market 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 values 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                                                                                                                                                                                                    | 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;
            5,986,653 shares issued,  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=========    

|(Dollars in thousands, except share and per share data)  | 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                                  | 449                              | 511                            
|Service fees                                             | 2,231                            | 1,349                          
|Net gain on sale of loans available-for-sale             | 110                              | 156                            
|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 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                          
|                                                                                            |                                 |                               
|Net income                                                                                  | $2,567                          | $2,008                        
|Other comprehensive income (loss):                                                          |                                 |                               
|Unrealized gains (losses) on investment securities:                                         |                                 |                               
|Realized and unrealized holding gains (losses) arising               
 during the period    | 2,007                           | (319)                         
|Add:   reclassification adjustment for (gains) losses included          
     in net income | (7)                             | (5)                           
|Other comprehensive gains (losses), before tax                                              | 2,000                           | (324)                         
|Income tax benefit (expense) related to items of other comprehensive      income            | (760)                           | 123                           
|Other comprehensive income (loss), after tax                                                | 1,240                           | (201)                         
|Comprehensive income                                                                        | $3,807========                  | $1,807========                

|                                                                     | Common

Stock | Paid-inCapital | Common Stock
Acquiredby ESOP/RRP | TreasuryStock    | Accumulated
OtherCompre-hensiveLoss | RetainedEarnings | TotalStock-
holders'Equity
|-------------------------------------------------------------------- | ------------- | -------------- | -------------------------------- | ---------------- | ----------------------------------- | ---------------- | --------------------------
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Balance at December 31, 1999                                         | $56           | $70,040        | $(2,090)                         | $(28,974)        | $(2,930)                            | $53,423          | $89,525                   
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Net income                                                           | --            | --             | --                               | --               | --                                  | 6,461            | 6,461                     
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Change in net unrealized loss on
      securities available-for-sale | --            | --             | --                               | --               | 1,401                               | --               | 1,401                     
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|ESOP shares committed to
      be released                           | --            | 94             | 171                              | --               | --                                  | --               | 265                       
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Amortization of award of RRP stock                                   | --            | --             | 27                               | --               | --                                  | --               | 27                        
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Purchase of treasury stock,
      at cost (319,500 shares)           | --            | --             | --                               | (4,563)          | --                                  | --               | (4,563)                   
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Common stock options exercised
      (81,902 shares)                 | 1             | 883            | --                               | --               | --                                  | --               | 884                       
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Cash dividends declared
      ($0.51 per share)                      | --            | --             | --                               | --               | --                                  | (2,009)          | (2,009)                   
|                                                                     |               |                |                                  |                  |                                     |                  |                           
|Balance at September 30, 2000                                        | $57=======    | $71,017======= | $(1,892)=======                  | $(33,537)======= | $(1,529)=======                     | $57,875=======   | $91,991=======            

|(Dollars in thousands)                                       | Nine Months Ended
September 30,
|------------------------------------------------------------ | -------------------------------
|                                                             | 2000                           
|                                                             |                                
|Net cash provided by operating activities                    | $31,302========                
|Cash flows from investing activities:                        |                                
|Purchases of:                                                |                                
|Investment securities available-for-sale                     | (18,738)                       
|Proceeds from maturities of:                                 |                                
|Investment securities                                        | 90                             
|Investment securities available-for-sale                     | 1,865                          
|Proceeds from sales of:                                      |                                
|Investment securities                                        | 3,000                          
|Investment securities available-for-sale                     | 49,218                         
|Principal payments from:                                     |                                
|Investment securities                                        | 8,151                          
|Investment securities available-for-sale                     | 11,089                         
|Redemption of FHLB stock                                     | 3,000                          
|Net change in loans receivable                               | (14,917)                       
|Net change in interest-bearing deposits                      | --                             
|Purchases of premises and equipment                          | (1,141)                        
|Proceeds from sale of premises and equipment                 | 1,057                          
|Proceeds from sale of real estate owned                      | 266                            
|Purchase of life insurance policies                          | --                             
|Disposition of branches, net of cash and cash equivalents of | (35,983)                       
|Net cash provided (used) by investing activities             | 6,957                          
|Cash flows from financing activities:                        |                                
|Net change in deposits excluding interest credited           | (22,827)                       
|Net change in repurchase agreements                          | 1,022                          
|Proceeds from borrowings                                     | 925,293                        
|Payments on borrowings                                       | (948,631)                      
|Net change in advances from borrowers for taxes and          | 2,931                          
|Proceeds from exercise of options                            | 884                            
|Payments to acquire treasury stock                           | (4,563)                        
|Dividends paid to stockholders                               | (1,984)                        
|Net cash provided (used) by financing activities             | (47,875)                       
|Net decrease in cash and cash equivalents                    | (9,616)                        
|Cash and cash equivalents at beginning of period             | 26,143                         
|Cash and cash equivalents at end of period                   | $16,527==========              
|Supplemental disclosure of cash flow information:            |                                
|Payments during the period for:                              |                                
|Interest                                                     | $10,629                        
|Income taxes, net                                            | 3,896==========                

|                                                                   | For the Three Month Period
Ended September 30, | For the Nine Month Period
Ended September 30,
|------------------------------------------------------------------ | ---------------------------------------------- | ---------------------------------------------
|(Dollars in thousands, except share and per share data)            | 2000                                           | 1999                                         
|Numbers of shares on which basic earnings per share is calculated: |                                                |                                              
|Average outstanding shares during the period                       | 3,899,295                                      | 4,354,871                                    
|Add:      Incremental shares under stock option plans              | 125,612                                        | 161,637                                      
|Incremental shares related to RRP's                                | --                                             | --                                           
|Number of shares on which diluted earnings per share is calculated | 4,024,907========                              | 4,516,508========                            
|Net income applicable to common stockholders                       | $2,567========                                 | $2,008========                               
|Basic earnings per share                                           | $0.66========                                  | $0.46========                                
|Diluted earnings per share                                         | $0.64========                                  | $0.44========                                

|                            | HELD-TO-MATURITY      
|--------------------------- | ----------------------
|                            | (Dollars in Thousands)
|                            | September 30, 2000    
|                            | AmortizedCost         
|                            |                       
|Corporate obligations       | $3,998                
|                            |                       
|Other investments           | 2,128                 
|                            |                       
|Total investment securities | 6,126                 
|                            |                       
|Mortgage-backed securities  | 69,854                
|                            | $75,980========       

|                            | AVAILABLE-FOR-SALE    
|--------------------------- | ----------------------
|                            | (Dollars in Thousands)
|                            | September 30, 2000    
|                            | AmortizedCost         
|                            |                       
|Federal Agency obligations  | $39,665               
|                            |                       
|Corporate obligations       | 16,838                
|                            |                       
|Other investments           | 3,811                 
|                            |                       
|Total investment securities | 60,314                
|                            |                       
|Mortgage-backed securities  | 87,171                
|                            | $147,485========      

|HELD-TO-MATURITY                  
|----------------------------------
|(Dollars in Thousands)            
|                                  
|                                  
|                                  
|                                  
|Due in one year or less           
|Due after one year through 5 years
|Due after 5 years through 10 years
|Due after 10 years                
|                                  

|AVAILABLE-FOR-SALE                
|----------------------------------
|(Dollars in Thousands)            
|                                  
|                                  
|                                  
|                                  
|Due in one year or less           
|Due after one year through 5 years
|Due after 5 years through 10 years
|Due after 10 years                
|Other                             
|                                  

|                                                    | Three Months Ended
|--------------------------------------------------- | ------------------
|                                                    | September 30,     
|                                                    | 2000Amount        
|                                                    | (In Thousands)    
|                                                    |                   
|Total interest income                               | $17,651           
|Total interest expense                              | (10,079)          
|                                                    |                   
|Net interest income                                 | 7,572             
|Provision for loan losses                           | (450)             
|Net interest income after provision for loan losses | 7,122             
|                                                    |                   
|Fees and service charges                            | 2,790             
|Net gain on sale of securities available-for-sale   | 7                 
|Other non-interest income                           | 78                
|Total non-interest income                           | 2,875             
|                                                    |                   
|Income before non-interest expense                  | 9,997             
|Total non-interest expense                          | (5,821)           
|                                                    |                   
|Income before income taxes                          | 4,176             
|Income taxes                                        | (1,609)           
|                                                    |                   
|Net income                                          | $2,567========    

|                                                                              | Three Month Period Ended      
|----------------------------------------------------------------------------- | ------------------------------
|                                                                              | September 30, 2000            
|                                                                              | AverageOutstanding
Balance (1)
|INTEREST EARNING ASSETS:                                                      |                               
|Loans receivable (2) (3)                                                      | $631,114                      
|Investment securities                                                         | 236,518                       
|Other interest-earning assets (4)                                             | 1,689                         
|Cash surrender value of life insurance                                        | 8,433                         
|Total Interest-earning Assets                                                 | $877,754========              
|                                                                              |                               
|INTEREST-BEARING LIABILITIES:                                                 |                               
|Certificates of deposits                                                      | $335,258                      
|Savings accounts                                                              | 74,717                        
|Demand and NOW accounts                                                       | 114,841                       
|Money market accounts                                                         | 79,106                        
|Total deposits                                                                | 603,922                       
|Borrowed funds                                                                | 221,684                       
|Total interest-bearing liabilities                                            | $825,606========              
|Net interest income                                                           |                               
|Net interest rate spread                                                      |                               
|Net interest-earning assets                                                   | $52,148========               
|Net interest margin (5)                                                       |                               
|Average interest-earning assets to average
      interest-bearing liabilities |                               

|                                                         | Nine Months EndedSeptember 30,
|-------------------------------------------------------- | ------------------------------
|                                                         | 2000Amount                    
|                                                         | (In Thousands)                
|                                                         |                               
|Total interest income                                    | $53,130                       
|Total interest expense                                   | (30,346)                      
|                                                         |                               
|Net interest income                                      | 22,784                        
|Provision for loan losses                                | (1,350)                       
|Net interest income after provision for loan losses      | 21,434                        
|                                                         |                               
|Fees and service charges                                 | 6,344                         
|Net gain (loss) on sale of securities available-for-sale | (1,068)                       
|Gain on sale of branches                                 | 1,878                         
|Other non-interest income                                | 514                           
|Total non-interest income                                | 7,668                         
|                                                         |                               
|Income before non-interest expense                       | 29,102                        
|Total non-interest expense                               | (18,603)                      
|                                                         |                               
|Income before income taxes                               | 10,499                        
|Income taxes                                             | (4,038)                       
|                                                         |                               
|Net income                                               | $6,461==========              

|                                                                              | Nine Month Period Ended       
|----------------------------------------------------------------------------- | ------------------------------
|                                                                              | September 30, 2000            
|                                                                              | Average
OutstandingBalance (1)
|INTEREST EARNING ASSETS:                                                      |                               
|Loans receivable (2) (3)                                                      | $626,442                      
|Investment securities                                                         | 268,363                       
|Other interest-earning assets (4)                                             | 2,563                         
|Cash surrender value of life insurance                                        | 8,321                         
|Total interest-earning assets                                                 | $905,689=======               
|INTEREST-BEARING LIABILITIES:                                                 |                               
|Certificates of deposits                                                      | $351,861                      
|Savings accounts                                                              | 79,883                        
|Demand and NOW accounts                                                       | 116,243                       
|Money market accounts                                                         | 79,046                        
|Total deposits                                                                | 627,033                       
|Borrowed funds                                                                | 233,678                       
|Total interest-bearing liabilities                                            | $860,711=======               
|Net interest income                                                           |                               
|Net interest rate spread                                                      |                               
|Net interest-earning assets                                                   | $44,978=======                
|Net interest margin (5)                                                       |                               
|Average interest-earning assets to average
      interest-bearing liabilities |                               

|                                                                                              | September2000       | December1999       
|--------------------------------------------------------------------------------------------- | ------------------- | -------------------
|                                                                                              | (In Thousands)     
|Non-accruing loans:                                                                           |                     |                    
|Real Estate:                                                                                  |                     |                    
|One- to four-family                                                                           | $      918          | $      549         
|Multi-family                                                                                  | --                  | --                 
|Commercial                                                                                    | 47                  | 348                
|Construction                                                                                  | 110                 | 324                
|Agricultural (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:                                                                                  |                     |                    
|One- to four-family                                                                           | --                  | 40                 
|Multi-family                                                                                  | --                  | --                 
|Commercial                                                                                    | --                  | --                 
|Construction                                                                                  | --                  | --                 
|Agriculture (non-real estate)                                                                 | --                  | --                 
|Commercial (non-real estate)                                                                  | --                  | --                 
|Consumer                                                                                      | 2                   | 20                 
|Total                                                                                         | 2                   | 60                 
|Foreclosed Assets:                                                                            |                     |                    
|Real Estate:                                                                                  |                     |                    
|One- to four-family                                                                           | 220                 | 94                 
|Multi-family                                                                                  | --                  | --                 
|Commercial                                                                                    | --                  | --                 
|Land                                                                                          | --                  | 26                 
|Consumer                                                                                      | 52                  | 48                 
|Total                                                                                         | 272                 | 168                
|Total non-performing assets                                                                   | $   3,025========== | $   3,121==========
|Total as a percentage of total assets                                                         | 0.32%==========     | 0.31%==========    
|Total allowance for loan losses to non-performing loans (exclusive of      foreclosed assets) | 226.12%==========   | 174.77%==========  
|Total allowance for loan losses to total non-performing assets                                | 205.79%==========   | 165.36%==========  

|                                                                                                    | For the Three Month
Period EndedSeptember 30, | For the Nine Month
Period EndedSeptember 30,
|--------------------------------------------------------------------------------------------------- | --------------------------------------------- | --------------------------------------------
|                                                                                                    | 2000                                          | 1999                                        
|Balance of 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 loans receivable, net
      before allowance                  | 0.99%========                                 | 0.83%========                               

|                                                | Actual       | Minimum to be
adequately capitalizedunder prompt correctiveactions provision | Minimum to be well
capitalized under promptcorrective actionsprovision
|----------------------------------------------- | ------------ | ---------------------------------------------------------------------------- | ----------------------------------------------------------------------
|As of September 30, 2000:                       | Amount       | Ratio                                                                        | Amount                                                                
|                                                |              |                                                                              |                                                                       
|Total capital (to risk-weighted assets)         | $77,746      | 13.16%                                                                       | $47,264                                                               
|                                                |              |                                                                              |                                                                       
|Core (Tier 1) capital (to risk-weighted assets) | 72,631       | 12.29                                                                        | 23,632                                                                
|                                                |              |                                                                              |                                                                       
|Core (Tier 1) capital (to adjusted assets)      | 72,631       | 7.95                                                                         | 36,526                                                                
|                                                |              |                                                                              |                                                                       
|Tangible capital (to tangible assets)           | 72,631====== | 7.95    ======                                                               | 13,697======                                                          

|      |                  |  | WESTERFED FINANCIAL CORPORATION           
|----- | ---------------- |  | ------------------------------------------
|      |                  |  |                                           
|      |                  |  |                                           
|Date: | November 6, 2000 |  | /s/ Lyle R. Grimes                        
|      |                  |  | Lyle R. Grimes                            
|      |                  |  | Chairman of the Board                     
|      |                  |  |                                           
|      |                  |  |                                           
|Date: | November 6, 2000 |  | /s/ Ralph K. Holliday                     
|      |                  |  | Ralph K. Holliday                         
|      |                  |  | President/ Chief Executive Officer        
|      |                  |  |                                           
|      |                  |  |                                           
|Date: | November 6, 2000 |  | /s/ James A. Salisbury                    
|      |                  |  | James A. Salisbury                        
|      |                  |  | Treasurer and Chief Financial Officer     
|      |                  |  | (Principal Finance and Accounting Officer)