EXHIBIT 99.1

   Timothy M. Scannell
   Senior Vice President
   (219) 465-6627

                                                                    May 17, 1996

                  INDIANA FEDERAL CORPORATION FORMS NEW SUBSIDIARY
                    OFFERING FULL INVESTMENT BROKERAGE SERVICES


         Valparaiso, Indiana - In a move to further expand the spectrum of
   financial services it offers its clients, Indiana Federal Corporation (the
   "Corporation") announces the formation of IFB Investment Services, Inc., a
   subsidiary specializing in financial advise and planning, portfolio
   management, stocks, bonds and other investment products.  This new
   organization will provide locally-based and managed brokerage services which
   replaces the Corporation's alliance with out-of-state, third party
   broker/dealers.
         The concept continues the Corporation's commitment to offering
   personalized service to its clients.  "Our goal was always to make our
   third-party broker relationship transparent to our customers, and we were
   successful in that endeavor," said Timothy Scannell, Senior Vice President. 
   "But in a fast-paced world of technological change, we need to be able to
   react quickly to these changes for our clients.  Therefore, having control
   over the information and the processes gives us the advantage we need to
   better serve those people who have entrusted their investments with us."
         Scannell also points out that with IFB Investment Services, Inc., the
   general public, as well as current Indiana Federal customers, can obtain
   professional, objective investment advise, carefully researched investment
   recommendations and a wide variety of investment options.
         Maintaining continuity for clients was one of the key goals in the
   subsidiary's formation.  "This is a one-on-one, person-to-person business. 
   Our customers have built long-standing relationships with our
   representatives, so we've kept those key personnel in place," Scannell said. 
   "Current customers will still be able to sit down with the same registered
   representative and get personalized investment advice."
         The timing of the IFB Investment Services launch was predicated on 




   having the right team in place, according to Donald A. Lesch, Chairman of
   Indiana Federal Corporation.  "Regardless of the financial service or
   product we offer, we succeed by building trust, by performing well and by
   serving our customer beyond their expectations," he said.  "So it was
   imperative that we pull together a team of real professionals who not only
   have experience and savvy in the marketplace, but who also know, understand
   and are committed to their responsibility to customer service.  I think we
   have that team, and we're very excited about the potential of this important
   segment of our market."
         The creation of IFB Investment Services, Inc. is the second major
   strategic extension of the Corporation's financial services this year.  It
   follows Indiana Federal's February 1996 acquisition of one-third ownership
   in Forrest Holdings, Inc., a multi-faceted leasing company located in Oak
   Brook, Illinois.  Lesch emphasizes that more strategic alliances such as
   these are in the works.
         "In today's dynamic financial world, diversification of products,
   services and markets is key to growth," Lesch said.  "IFB Investment
   Services, Inc. is another piece that fits perfectly into the Corporation's
   mission and goal of building shareholder value by creating greater customer
   value."
         Indiana Federal Corporation shares are traded on the Nasdaq National
   Market under the symbol "IFSL."

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