EXHIBIT 99
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 10, 1999
StateFed Financial Corporation
519 Sixth Avenue
Des Moines, Iowa 50309
Phone: (515) 282-0236
STATEFED FINANCIAL CORPORATION
REPORTS YEAR-END 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, 1999. The company reported net income of $1,018,290 for the fiscal year
ended June 30, 1999 as compared to $1,017,279 for the same period in 1998, an
increase of $1,011. The increase in net earnings for the fiscal year was
primarily due to an increase in non-interest income of $172,314, a decrease in
provision for loan losses of $16,000, and a decrease in income tax expense of
$1,560, partially offset by a decrease in net interest income of $84,206 and an
increase of $104,657 in non-interest expense. The company also reported net
income of $264,362 for the three month period ended June 30, 1999 as compared to
$251,820 for the same period in 1998, an increase of $12,542, or 4.98%. At June
30, 1999 the company had total assets of $90.8 million and total liabilities of
$74.7 million, compared to total assets of $89.8 million and total liabilities
of $73.7 million at June 30, 1998. The book value of StateFed Financial
Corporation common stock increased to $10.61 per share at June 30, 1999.
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, 1999 AND JUNE 30, 1998
ASSETS (Unaudited) (Audited)
June 30, 1999 June 30, 1998
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Cash and amounts due from depository institutions $8,481,216 $9,445,404
Investments in certificates of deposit 884,300 1,478,514
Investment securities 1,944,374 2,743,518
Loans receivable, net 72,330,884 68,979,770
Real estate acquired for development 236,602 231,870
Real estate held for investment, net 2,645,245 2,262,060
Property acquired in settlement of loans 1,133,517 1,286,452
Office property and equipment, net 1,188,247 1,564,077
Federal Home Loan Bank stock, at cost 1,147,600 949,000
Accrued interest receivable 536,028 542,246
Prepaid expenses and other assets 295,695 318,654
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TOTAL ASSETS $90,823,708 $89,801,565
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $54,713,072 $53,671,860
Advances from Federal Home Loan Bank 18,877,047 18,964,890
Advances from borrowers for taxes and insurance 337,371 340,686
Accrued interest payable 133,773 134,251
Dividends payable 114,300 78,295
Income taxes: current and deferred 324,643 232,019
Other liabilities 200,122 295,278
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TOTAL LIABILITIES $74,700,328 $73,717,279
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Stockholders' equity:
Common stock $8,905 $8,905
Additional paid-in capital 8,526,563 8,483,110
Unearned compensation - restricted stock awards (271,290) (341,270)
Unrealized gain on investments 3,803 119,928
Treasury stock (2,234,986) (1,643,697)
Retained earnings - substantially restricted 10,090,385 9,457,310
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TOTAL STOCKHOLDERS' EQUITY $16,123,380 $16,084,286
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $90,823,708 $89,801,565
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STATEFED FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
Three Months Ended Fiscal Year Ended
June 30 June 30
Unaudited Unaudited Unaudited Audited
--------- --------- --------- -------
1999 1998 1999 1998
OPERATIONS DATA
Total interest income....................... $1,637,050 $1,727,490 $6,695,402 $6,822,566
Total interest expense...................... $972,286 $1,029,644 $3,999,569 $4,042,527
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Net interest income......................... $664,764 $697,846 $2,695,833 $2,780,039
Provision for loan losses................... $9,000 $34,000 $36,000 $52,000
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses........... $655,764 $663,846 $2,659,833 $2,728,039
Non-interest income:
Real estate operations...................... $139,155 $129,218 $565,503 $440,718
Gain (loss) on sale of investments.. $12,400 $--- $52,602 $(1,875)
Gain on sale of real estate................. $19,488 $13,043 $53,835 $44,017
Other non-interest income................... $27,874 $26,642 $101,211 $117,977
---------- ---------- ---------- ----------
Total non-interest income................... $198,917 $168,903 $773,151 $600,837
Total non-interest expense.................. $471,139 $471,564 $1,925,794 $1,821,137
---------- ---------- ---------- ----------
Income before income taxes.................. $383,542 $361,185 $1,507,190 $1,507,739
Income tax expense.......................... $119,180 $109,365 $488,900 $490,460
---------- ---------- ---------- ----------
Net Income.................................. $264,362 $251,820 $1,018,290 $1,017,279
========== ========== ========== ==========
Basic earnings per share.................... $0.18 $0.17 $0.68 $0.68
Diluted earnings per share.................. $0.17 $0.16 $0.67 $0.66