Exhibit 99.1
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                                  Press Release


                  CITY SAVINGS FINANCIAL CORPORATION ANNOUNCES
                       AGREEMENT TO SELL TRUST PREFERRED

     June 17, 2003 (Michigan City, Indiana).  City Savings Financial Corporation
(the  "Company")  (OTCBB:  CSFC),  the holding company of City Savings Bank (the
"Bank"),  announced  that it has formed the City  Savings  Statutory  Trust I, a
Connecticut  business  trust.  On June  16,  2003,  the  Trust  agreed  to issue
$5,000,000 in principal amount of Capital  Securities in a private placement and
$155,000 in principal amount of Common Securities to the Company.  The aggregate
proceeds of  $5,155,000  will be used by the City Savings  Statutory  Trust I to
purchase  $5,155,000 in Floating Rate Junior  Subordinated  Deferrable  Interest
Debentures from the Company.

     The Debentures and the Common and Capital Securities will have a term of 30
years,  bear interest at the annual rate of 4.16% until  September 26, 2003, and
thereafter bear interest at the rate of the 3-Month Libor plus 3.10%;  provided,
however, that prior to June 26, 2008, this interest rate will not exceed 11.75%.
City Savings Financial Corporation has guaranteed payment of amounts owed by the
City  Savings  Statutory  Trust I to  holders  of the  Capital  Securities.  The
transaction is expected to close on June 26, 2003.

     The proceeds of the offering will be used for general  corporate  purposes.
The Capital  Securities  were offered  outside the United  States in reliance on
Regulation S under the  Securities  Act of 1933.  They have not been  registered
under  that Act and may not be offered  or sold in the  absence of an  effective
registration statement or exemption from registration requirements.

     The Bank  conducts  business  from  two full  service  offices  located  in
Michigan  City,  Indiana,  and  Rolling  Prairie,  Indiana  with the main office
located in Michigan  City.  The Bank has  recently  entered into an agreement to
purchase land to establish a new branch in Chesterton, Indiana.

     CONTACT: City Savings Financial Corporation, Thomas F. Swirski or George L.
Koehm, 219/879-5364.