EXHIBIT 99.2

   Donald A. Lesch
   Chairman of the Board/CEO
   (219) 465-6607

                                                                   June 10, 1996

                       INDIANA FEDERAL CORPORATION ANNOUNCES
                     REALIGNMENT OF MANAGEMENT RESPONSIBILITIES


         Valparaiso, Indiana - In an effort to further enhance its emphasis on
   strategic expansion and growth, the Board of Directors of Indiana Federal
   Corporation (the "Corporation") and its wholly-owned subsidiary, Indiana
   Federal Bank for Savings (the "Bank"), has announced the realignment of
   specific management duties for two of its key officers.  The changes, which
   are effective June 10, 1996, include the appointment of Board Chairman
   Donald A. Lesch as Chief Executive Officer of the Corporation and Bank; with
   President Peter Candela becoming Chief Operating Officer to the Corporation
   and Bank.
        Lesch, who has served as Chairman of the Board of the Corporation and
   Bank since 1992, will primarily focus on strategic direction and growth
   opportunities.  Candela, who has been Corporation and Bank President since
   1985, will concentrate on the management of support services and
   administrative functions.
        "These moves are aligned with our growth strategies and formation of
   strategic alliances," Lesch said.  "In the dynamic financial services
   market, it is imperative that we re-engineer ourselves as necessary to the
   benefit of our shareholders, our customers and our employees, while
   maintaining our focus on our strategic goals.  A critical component of that
   re-engineering is the placement of key personnel, both management and staff,
   to their greatest strengths.  These changes accomplish just that."
        Lesch pointed out that the Corporation's growth strategies include
   diversifying the range of financial products and services it provides by
   developing key strategic partnerships and concepts.  Examples of these
   growth tactics include the Corporation's recent creation of IFB Investment
   Services, Inc., a subsidiary specializing in financial advice and planning,
   portfolio management, stocks, bonds and other investment products.  This
   organization, which was launched in April of this year, provides 



   locally-based and managed brokerage services which replace the Corporation's
   alliance with out-of-state, third party broker/dealers.  Another Indiana
   Federal strategic partnership is its February 1996 acquisition of one-third
   ownership of Forrest Holdings, Inc., a multi-faceted leasing company located
   in Oak Brook, Illinois.  Lesch emphasizes that more strategic alliances such
   as these will continually be looked at.
        "While these moves don't radically change the way we've been doing
   business, they fine tune the responsibilities of two key individuals in the
   Corporation so that we can more efficiently and effectively deploy those
   day-to-day management activities to the execution of our growth and
   profitability tactics," Lesch said.
        Indiana Federal Corporation's wholly-owned subsidiary, Indiana Federal
   Bank for Savings, maintains a network of fifteen full-service offices in
   Northwest Indiana and loan production offices in Valparaiso, Highland and
   Mishawaka, Indiana.  Indiana Federal Corporation shares are traded on the
   NASDAQ National Market System under the symbol "IFSL".


                                        ####