| Further Information Contact: Andra K. Black, Co-President Craig A. Wood, Co-President StateFed Financial Corporation 13523 University Avenue Clive, Iowa 50325 Phone: (515) 223-8484 | For Immediate Release May 3, 2001 |
Des Moines, Iowa (NASDAQ: "SFFC") -- StateFed Financial Corporation, the parent company for State Federal Savings and Loan Association of Des Moines, today announced financial results for the quarter ended March 31, 2001.
For the three month period ended March 31, 2001, the company reported net income of $95,732 as compared to $307,854 for the same period in 2000, a decrease of $212,122. The decrease in net earnings was primarily due to an increase in non-interest expense (which primarily was due to a one-time expense associated with the retirement of the Company's Chairman of the Board, recently announced, and to a lesser extent with the opening of a new branch office) and a small decrease in non-interest income, which was partially offset by an increase in net interest income and a decrease in income tax expense. For the three months ended March 31, 2001, net interest income after provisions for loan losses totaled $791,000 compared to $768,000 for the three month period ended March 31, 2000, an increase of 3 percent.
For the nine month period ended March 31, 2001, the company reported net income of $596,188 as compared to $808,471 for the same period in 2000, a decrease of $212,283. The decrease in net earnings was primarily due to an increase in non-interest expense (which primarily was due to a one-time expense associated with the retirement of the Company's Chairman of the Board, expenses incurred as a result of an unsuccessful proxy fight launched by the Krause Gentle Corporation during last year's annual meeting, and to a lesser extent with the opening of a new branch office) and a decrease in non-interest income, which was partially offset by an increase in net interest income and a decrease in income tax expense. For the nine months ended March 31, 2001, net interest income after provision for loan losses totaled $2.5 million compared to $2.2 million for the nine month period ended March 31, 2000, an increase of 12 percent.
"We are glad to have these one-time expenses behind us so that we can continue to move the Company forward," stated Craig Wood, Co-President. "We are particularly pleased that our net interest rate margin, which represents our core earnings, continues to increase," added Andra Black, Co-President.
Basic and diluted earnings per share for the nine months ended March 31, 2001 were $0.40 cents per share, compared to $0.55 and $0.54, respectively, for the nine months ended March 31, 2000. As of March 31, 2001 there were 1,504,100 shares outstanding. The Corporation's stock is traded on the NASDAQ Small-Cap Market under the symbol "SFFC".
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 and 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 obligations to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements.
| STATEFED FINANCIAL CORPORATION | ||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
| March 31, 2001 and June 30, 2000 | ||||||||
| ASSETS | (Unaudited) | |||||||
| March 31, 2001 | June 30, 2000 | |||||||
| Cash and amounts due from depository institutions | $ 5,033,782 | $ 2,477,494 | ||||||
| Investments in certificates of deposit | $ 396,355 | $ 495,692 | ||||||
| Investment securities held-for-sale | $ 1,956,709 | $ 2,231,274 | ||||||
| Loans receivable, net | $ 91,919,477 | $ 86,572,585 | ||||||
| Real estate held for investment, net | $ 2,124,714 | $ 2,175,785 | ||||||
| Property acquired in settlement of loans | $ 1,320,523 | $ 1,337,847 | ||||||
| Office property and equipment, net | $ 3,821,412 | $ 2,965,659 | ||||||
| Federal Home Loan Bank stock, at cost | $ 1,762,200 | $ 1,464,600 | ||||||
| Accrued interest receivable | $ 694,203 | $ 573,293 | ||||||
| Other assets | $ 471,473 | $ 390,550 | ||||||
| TOTAL ASSETS | $109,500,848 | $100,684,779 | ||||||
| Liabilities: | ||||||||
| Deposits | $ 56,607,041 | $ 53,648,118 | ||||||
| Advances from Federal Home Loan Bank | $ 35,210,383 | $ 29,283,906 | ||||||
| Advances from borrowers for taxes and insurance | $ --- | $ 353,743 | ||||||
| Accrued interest payable | $ 86,637 | $ 140,243 | ||||||
| Dividends payable | $ 150,410 | $ 113,220 | ||||||
| Income taxes:current and deferred | $ 198,978 | $ 296,992 | ||||||
| Other liabilities | $ 325,131 | $ 198,689 | ||||||
| TOTAL LIABILITIES | $ 92,578,580 | $ 84,034,911 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | $ 17,810 | $ 17,810 | ||||||
| Additional paid-in capital | $ 8,510,231 | $ 8,546,501 | ||||||
| Unearned compensation - restricted stock awards | $ (159,001) | $ (205,761) | ||||||
| Unrealized gain (loss) on investments | $ 65,131 | $ 124,579) | ||||||
| Treasury stock | $ (2,433,317) | $ (2,362,921) | ||||||
| Retained earnings - substantially restricted | $ 10,921,414 | $ 10,778,818 | ||||||
| TOTAL STOCKHOLDERS' EQUITY | $ 16,922,268 | $ 16,649,868 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 109,500,848 | $ 100,684,779 | ||||||
| Three Months Ended | Nine Months Ended | ||||||
| March 31 | March 31 | ||||||
| 2001 | 2000 | 2001 | 2000 | ||||
| OPERATIONS DATA | |||||||
| Total interest income | $ 2,096,808 | $ 1,751,608 | $ 6,225,806 | $ 5,144,692 | |||
| Total interest expense | $ 1,291,084 | $ 974,939 | $ 3,698,917 | $ 2,893,286 | |||
| Net interest income | $ 805,724 | $ 776,669 | $ 2,526,889 | $ 2,251,406 | |||
| Provision for loan losses | $ 15,000 | $ 9,000 | $ 33,000 | $ 27,000 | |||
| Net interest income after | |||||||
| provision for loan losses | $ 790,724 | $ 767,669 | $ 2,493,889 | $ 2,224,406 | |||
| Non-interest income: | |||||||
| Real estate operations | $ 129,039 | $ 127,418 | $ 391,169 | $ 391,829 | |||
| Other non-interest income | $ 26,658 | $ 62,344 | $ 4,116 | $ 121,925 | |||
| Total non-interest income | $ 155,697 | $ 189,762 | $ 395,285 | $ 513,754 | |||
| Total non-interest expense | $ 802,449 | $ 495,337 | $ 1,993,220 | $ 1,524,069 | |||
| Income before income taxes | $ 143,972 | $ 462,094 | $ 895,954 | $ 1,214,091 | |||
| Income tax expense | $ 48,240 | $ 154,240 | $ 299,766 | $ 405,620 | |||
| Net Income | $ 95,732 | $ 307,854 | $ 596,188 | $ 808,471 | |||
| Basic earnings per share | $0.06 | $0.21 | $0.40 | $0.55 | |||
| Diluted earnings per share | $0.06 | $0.21 | $0.40 | $0.54 | |||
