Exhibit 99


                         STATEFED FINANCIAL CORPORATION
                                519 Sixth Avenue
                             Des Moines, Iowa 50309



FOR MORE INFORMATION                        FOR IMMEDIATE RELEASE
         Contact John F. Golden, President           Date:  May 24, 1999
         and Chief Executive Officer
         at (515) 282-0236


                         STATEFED FINANCIAL CORPORATION
              ANNOUNCES STOCK REPURCHASE AND DECLARES CASH DIVIDEND


         DES MOINES, IOWA - May 24, 1999 StateFed Financial Corporation,  parent
corporation  of State  Federal  Savings  and  Loan  Association  of Des  Moines,
announced its intention today to repurchase  approximately 5% of its outstanding
shares in the open  market  over the next  twelve  months.  The  shares  will be
purchased  at  prevailing  market  prices from time to time over a twelve  month
period depending upon market conditions.

John F.  Golden,  President  of the  Corporation,  indicated  that the  Board of
Directors  approved the repurchase program in view of the current price level of
the  Corporation's   common  stock  and  the  strong  capital  position  of  the
Corporation's  subsidiary,  State Federal  Savings and Loan  Association  of Des
Moines.  Mr.  Golden  stated that "we believe that the  repurchase of our shares
represents  an  attractive   investment   opportunity  which  will  benefit  the
Corporation and our  stockholders.  The repurchased  shares will become treasury
shares and will be used for general corporate  purposes,  including the issuance
of shares in connection with the exercise of stock options."

Over the past three months,  the shares traded  between $9.00 and $12.50.  As of
May 24, 1999, the Corporation has 1,549,004 shares outstanding.

StateFed  Financial  Corporation  also announced today that the Corporation will
pay a regular  cash  dividend  of $.075 (7 1/2  cents)  per share for the fourth
quarter of 1999. The dividend will be payable on July 9, 1999 to shareholders of
record on June 30, 1999.

State Federal serves central Iowa through its two offices located in Des Moines,
Iowa. At May 24, 1999 State Federal exceeded all applicable  regulatory  capital
requirements on a fully-phased in basis.

The Corporation  had $90.7 million in assets and $16.3 million in  stockholders'
equity as of March 31,  1999.  The  Corporation's  stock is traded on the NASDAQ
System under the symbol "SFFC".