UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

_X_ QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15(d) OF
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2004

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

For the transition period from __________ to __________.

Commission file number: 0-28080

UNITED FINANCIAL CORP.
(Exact Name of Registrant as Specified in its Charter)

MINNESOTA	81-0507591
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

P.O. Box 2779, 120 First Avenue North, Great Falls, Montana 59403
(Address of Principal Executive Offices) (Zip Code)

(406) 727-6106
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the Registrant is an accelerated filer
(as defined by Rule 12b-2 of the Securities Exchange Act of 1934).

Yes [ ] No [X]

Indicate the number of shares outstanding of each of the issuer's
classes of Common Stock, as of the latest practicable date:

Common Stock, no par value; 2,436,249 shares outstanding as of July 30, 2004

UNITED FINANCIAL CORP.
TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

*ITEM 1 FINANCIAL STATEMENTS*

Consolidated Condensed Statements of Financial Condition at
June 30, 2004 (unaudited) and December 31, 2003 (audited)		1

Consolidated Condensed Statements of Income - Three and Six Months Ended
June 30, 2004 and June 30, 2003 (unaudited)		2

Consolidated Condensed Statements of Cash Flows - Six Months Ended
June 30, 2004 and June 30, 2003 (unaudited)		3

Notes to Consolidated Condensed Financial Statements (unaudited)		4

*ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL*
*CONDITION AND RESULTS OF OPERATIONS*		8

*ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK*		18

*ITEM 4 CONTROLS AND PROCEDURES*		19

PART II - OTHER INFORMATION

*ITEM 1 LEGAL PROCEEDINGS*		19

*ITEM 2 CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES*
*OF EQUITY SECURITIES*		19

*ITEM 3 DEFAULTS UPON SENIOR SECURITIES*		19

*ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS*		20

*ITEM 5 OTHER INFORMATION*		20

*ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K*		20

SIGNATURES		21

Page i

PART I – FINANCIAL INFORMATION

ITEM 1 FINANCIAL STATEMENTS.

UNITED FINANCIAL CORP.
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except share and per share data)
(Unaudited)

	June 30, 2004			December 31, 2003

ASSETS
Cash and cash equivalents	$	12,673		$	13,514
Securities available-for-sale		42,637			43,279
Restricted stock, at cost		4,179			4,109
Loans held for sale		8,346			3,883
Loans receivable, net		252,092			227,179
Accrued interest receivable		2,092			1,784
Premises and equipment, net		8,092			7,512
Real estate and other personal property owned		592			678
Goodwill, net of accumulated amortization		1,422			1,422
Deferred income taxes, net		615			272
Other assets		1,323			1,185

	$	334,063		$	304,817

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand, NOW and money market demand accounts	$	77,582		$	69,851
Savings deposits		56,790			54,897
Time deposits		106,434			102,766

		240,806			227,514
Federal Home Loan Bank advances		48,919			31,000
Securities sold under agreements to repurchase		8,809			7,889
Accrued interest payable		1,081			1,015
Advances from borrowers for taxes and insurance		155			128
Subordinated debt owed to trust		3,093			3,093
Other liabilities		1,599			1,797

		304,462			272,436

Stockholders' equity:
Preferred stock, no par value; authorized 2,000,000
shares; no shares issued and outstanding		—			—
Common stock, no par value; authorized 8,000,000 shares;
2,433,965 and 2,437,042 shares issued and outstanding
at June 30, 2004 and December 31, 2003,
respectively		26,620			27,025
Retained earnings, substantially restricted		3,189			5,015
Accumulated other comprehensive income (loss), net		(208	)		341

		29,601			32,381

	$	334,063		$	304,817

Equity/Assets		8.86	%		10.62	%
Book Value/Share	$	12.16		$	13.29

See Notes to Consolidated Condensed Financial Statements

Page 1

UNITED FINANCIAL CORP.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,

	2004		2003		2004		2003

Interest Income
Loans receivable	$	4,036	$	4,034	$	7,828	$	7,927
Mortgage-backed securities		273		340		561		697
Other investment securities		135		104		263		246
Other interest earning assets		38		65		83		164

Total interest income		4,482		4,543		8,735		9,034

Interest Expense
Deposits		827		1,119		1,670		2,351
Other borrowings		416		412		786		878

Total interest expense		1,243		1,531		2,456		3,229

Net interest income		3,239		3,012		6,279		5,805
Provision for loan losses		18		313		70		575

Net interest income after provision for
loan losses		3,221		2,699		6,209		5,230
Non-interest Income
Gain on sale of loans		621		1,552		1,139		2,756
Service charges and fees		370		294		687		520
Gain on sale of securities available-for-sale		19		—		213		18
Other		73		43		112		85

Total non-interest income		1,083		1,889		2,151		3,379

Non-interest Expense
Compensation and benefits		1,621		1,810		3,076		3,328
Occupancy and equipment expense		354		308		682		600
Data processing fees		196		181		369		347
Other expenses		617		583		1,154		1,193

Total non-interest expense		2,788		2,882		5,281		5,468

Income from continuing operations before income taxes		1,516		1,706		3,079		3,141
Income taxes		570		643		1,159		1,183

Income from continuing operations		946		1,063		1,920		1,958
Discontinued Operations
Income from discontinued operations (net of tax)		—		81		—		168

Net income	$	946	$	1,144	$	1,920	$	2,126

Basic earnings per share
Continuing operations	$	.39	$	.44	$	.79	$	.80
Discontinued operations		—		.03		—		.07

Per Share Net Income	$	.39	$	.47	$	.79	$	.87

Diluted earnings per share
Continuing operations	$	.38	$	.43	$	.76	$	.79
Discontinued operations		—		.03		—		.06

Per Share Net Income	$	.38	$	.46	$	.76	$	.85

Dividends declared per share	$	1.27	$	.18	$	1.54	$	.36

Weighted average shares outstanding-basic		2,428		2,439		2,433		2,439

Weighted average shares outstanding-diluted		2,506		2,499		2,518		2,489

See Notes to Consolidated Condensed Financial Statements

Page 2

UNITED FINANCIAL CORP.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)

	Six Months Ended

	June 30, 2004			June 30, 2003

Cash flows from operating activities

Net cash from operating activities	$	(2,999	)	$	(4,038	)


Cash flows from investing activities

Net (increase) decrease in loans receivable		(25,022	)		(5,501	)
Purchases of securities available-for-sale		(8,994	)		(22,703	)
Proceeds from maturities, pay downs and sales of securities
available-for-sale		8,893			25,909
Purchases of premises and equipment		(849	)		(297	)
Proceeds from sale of premises and equipment		—			13
Proceeds from sale of real estate and other personal property
owned		123			36

Net cash from investing activities		(25,849	)		(2,543	)


Cash flows from financing activities

Net increase in deposits		13,292			12,616
Proceeds from Federal Home Loan Bank advances		42,000			18,500
Payments on Federal Home Loan Bank advances		(24,081	)		(22,500	)
Payments on line of credit		—			(700	)
Net increase (decrease) in securities sold under agreements to
repurchase		920			(3,378	)
Increase (decrease) in advances from borrowers for taxes and
insurance		27			(1	)
Dividends paid to stockholders

FORM 10-Q

UNITED FINANCIAL CORP.TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

UNITED FINANCIAL CORP.
TABLE OF CONTENTS