SECURITIES AND EXCHANGE COMMISSION

                      WASHINGTON, D.C. 20549

                            FORM 8-K


                         CURRENT REPORT

               PURSUANT TO SECTION 13 OR 15 (d) OF THE
                   SECURITIES EXCHANGE ACT OF 1934

     Date of Report (Date of earliest event reported):  June
10, 1997


                   United Security Bancorporation
         (Exact Name of Registrant as Specified in Charter)


          Washington           0-18561            91-1259511
          ----------           -------            ----------
(State or other jurisdiction   (Commission        (IRS
Employer Identi-
        of incorporation)       File Number)       fication
Number)

       9506 North Newport Highway, Spokane, Washington 99218-
1200
       -----------------------------------------------------
- -----
            (Address of principal executive offices/Zip
Code)

   Registrant's telephone number, including area code:
(509) 467-6949
   ---------------------------------------------------------
- ----------

                    Item 5.  Other Events

Subsequent to the disclosures made in the Company's 1996
Form 10-KSB and the Form 8-K filed on April 4, 1997 the
following additional information is now available regarding
the embezzlement activities at the Company's subsidiary,
Home Security Bank ("HSB").

Management believes that the embezzler began the embezzling
activities in 1989 and continued such activity into 1996.
Funds were taken in small increments over eight years from
customer certificate of deposit accounts entrusted to the
embezzlers supervision.

HSB had, and continues to have, specific internal controls
in place designed to prevent fraud of this kind.  Internal
control policies and procedures include segregation of
duties, cash drawers maintained only by tellers, cashier's
checks payable to customers and not banks, and early
withdrawal penalties when funds are drawn from certificates
of deposit during their term.  The internal controls were
circumvented without detection because, as previously
reported, the embezzler had a personal relationship with the
president of HSB, and as vice-president of operations of
HSB, the embezzler was in a position that commanded trust
and respect.  HSB employees were therefore reluctant to
challenge or even question the embezzlers directives.

In April 1996, the president of HSB resigned for reasons
unrelated to the embezzlement.  In August 1996, the Company
terminated the embezzler

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because of disagreements with the Company.  The
disagreements were
unrelated to the embezzlement.  Approximately two weeks
after the
termination of the embezzler the Company became aware of the
embezzlement through researching customer questions.
Previously these questions would have been answered by the
embezzler.

HSB has revised its internal control procedures to prevent
similar embezzlement in the future.  The revisions include a
review of all personal relationships between senior
management, early withdrawals of certificates of deposit
must be accompanied by a special review of early withdrawal
penalties, new accounts personnel are not allowed to
maintain a teller cash drawer, cashier checks are reviewed
to determine payment is made only to a customer, and
certificate of deposit withdrawals are only made by cashier
check, not cash.

The Company and HSB have filed a claim with its insurance
carrier.  No further information is available at this time.

SIGNATURES

Pursuant to the requirements of the Security Exchange Act of
1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.

Dated:  June 10, 1997

                         UNITED SECURITY BANCORPORATION

                         By:  /s/ Chad Galloway
                         ------------------------------
                         Name:    Chad Galloway
                         Title:   Vice President and
                                  Chief Financial Officer



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