EXHIBIT I
STATEFED FINANCIAL CORPORATION
519 Sixth Avenue
Des Moines, Iowa 50309
For Further Information Contact: FOR IMMEDIATE RELEASE
John F. Golden, President and CEO Date: August 5, 1998
StateFed Financial Corporation
519 Sixth Avenue
Des Moines, Iowa 50309
Phone: (515) 282-0236
STATEFED FINANCIAL CORPORATION
REPORTS EARNINGS
Des Moines, Iowa (NASDAQ: "SFFC") ------ StateFed Financial Corporation,
the parent company for State Federal Savings and Loan Association of Des Moines,
today announced record earnings for the fiscal year ended June 30, 1998.
Earnings for the fiscal year ended June 30, 1998 made history as StateFed
Financial Corporation topped the "million dollar milestone" for the first time.
For the fiscal year ended June 30, 1998 the company reported net income of
$1,017,276 as compared to $921,325 for the same period in 1997, an increase of
$95,951, or 10.41%. The increase in net earnings for the fiscal year was
primarily due to a decrease in non-interest expense of $169,900, an increase in
net interest income of $24,500, and a decrease in income tax expense of $12,400,
partially offset by a decrease in non-interest income of $94,900 and an increase
of $16,000 in provision for loan losses. The company also reported net income of
$251,820 for the three month period ended June 30, 1998 as compared to $331,961
for the same period in 1997, a decrease of $80,141, or 24.14%. Included in the
net income for the three month period ended June 30, 1997 was an after tax gain
of $85,000 on the sale of real estate held for investment. At June 30, 1998 the
company has total assets of $89.8 million and total liabilities of $73.7
million, compared to total assets of $85.7
million and total liabilities of $70.4 million at June 30, 1997. The book value
of StateFed Financial Corporation increased to $10.27 per share at June 30,
1998.
State Federal Savings and Loan Association's capital continues to exceed
all regulatory requirements.
Continued
STATEFED FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
JUNE 30, 1998 AND JUNE 30, 1997
(Unaudited) (Unaudited)
June 30, June 30,
1998 1997
------------ ------------
ASSETS
Cash and amounts due from depository institutions $ 9,445,404 $ 3,634,086
Investments in certificates of deposit 1,478,514 4,435,425
Investment securities 2,743,518 3,477,168
Loans receivable, net 68,979,770 68,177,746
Real estate acquired for development 231,870 435,484
Real estate held for investment, net 2,262,060 1,933,532
Property acquired in settlement of loans 1,286,452 333,939
Office property and equipment, net 1,564,077 1,418,982
Federal Home Loan Bank stock, at cost 949,000 950,000
Accrued interest receivable 542,246 567,478
Prepaid expenses and other assets 318,654 314,754
------------ ------------
TOTAL ASSETS $ 89,801,565 $ 85,678,594
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 53,671,860 $ 50,345,972
Advances from Federal Home Loan Bank 18,964,890 19,000,000
Advances from borrowers for taxes and insurance 340,686 490,053
Accrued interest payable 134,251 128,881
Dividends payable 78,295 78,372
Income taxes:current and deferred 232,019 200,327
Other liabilities 295,278 201,981
------------ ------------
TOTAL LIABILITIES $ 73,717,279 $ 70,445,586
------------ ------------
Stockholders' equity:
Common stock $ 8,905 $ 8,905
Additional paid-in capital 8,483,110 8,398,857
Unearned compensation - restricted stock awards (341,270) (423,576)
Unrealized gain (loss) on investments 119,928 57,462
Treasury stock (1,643,697) (1,560,859)
Retained earnings - substantially restricted 9,457,310 8,752,518
------------ ------------
TOTAL STOCKHOLDERS' EQUITY $ 16,084,286 $ 15,233,307
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 89,801,565 $ 85,678,893
============ ============
STATEFED FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
Three Months Ended Fiscal Year Ended
June 30 June 30
Unaudited Unaudited Unaudited
---------- ---------- ---------- ----------
1998 1997 1998 1997
OPERATIONS DATA
Total interest income ........... $1,727,490 $1,665,500 $6,848,370 $6,407,032
Total interest expense .......... $1,029,644 $ 952,218 $4,042,526 $3,625,737
---------- ---------- ---------- ----------
Net interest income ............. $ 697,846 $ 713,282 $2,805,844 $2,781,295
Provision for loan losses ....... $ 34,000 $ 18,000 $ 52,000 $ 36,000
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses ... $ 663,846 $ 695,282 $2,753,844 $2,745,295
Non-interest income:
Real estate operations .......... $ 129,218 $ 54,135 $ 440,718 $ 404,035
Gain on sale of real estate ..... $ 13,043 $ 147,092 $ 44,017 $ 158,221
Other non-interest income ....... $ 26,642 $ 54,766 $ 90,297 $ 107,651
---------- ---------- ---------- ----------
Total non-interest income ....... $ 168,903 $ 255,993 $ 575,032 $ 669,907
Total non-interest expense ...... $ 471,564 $ 434,356 $1,821,140 $1,991,059
---------- ---------- ---------- ----------
Income before income taxes ...... $ 361,185 $ 516,919 $1,507,736 $1,424,143
Income tax expense .............. $ 109,365 $ 184,958 $ 490,460 $ 502,818
---------- ---------- ---------- ----------
Net Income ...................... $ 251,820 $ 331,961 $1,017,276 $ 921,325
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Earnings per share .............. $ 0.17 $ 0.22 $ 0.68 $ 0.62
Diluted earnings per share ...... $ 0.16 $ 0.22 $ 0.66 $ 0.60