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: July 21, 1997
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 financial results for the period ended June 30,
1997. For the fiscal year ended June 30, 1997, the company reported net income
of $921,325 as compared to $882,853 for the same period in 1996, an increase
of $38,472, or 4.36%. The increase in net earnings for the fiscal year was
primarily due to an increase in net interest income of $190,100, and an
increase in non-interest income of $175,800, partially offset by an increase
in non-interest expense of $288,000, an increase of $12,000 in provision for
loan lossses, and an increase in income tax expense of $27,400. The increase
in non-interest expense was primarily the result of a one-time special
assessment of $291,300, required by legislation, which is 65.7 cents per $100
of Savings Associations Insurance Fund (SAIF) deposits held by the Bank at
March 31, 1995. Net income for the fiscal year ended June 30, 1997, would have
been approximately $1,110,600 had this special assessment not been required.
The company also reported net income of $331,961 for the three month period
ended June 30, 1997 as compared to $241,249 for the same period in 1996, an
increase of $90,712, or 37.60%. At June 30, 1997 the company has total assets
of $85.7 million and total liabilities of $70.4 million, compared to total
assets of $76.7 million and total liabilities of $61.8 million at June 30,
1996. The book value of StateFed Financial Corporation increased to $19.44 per
share at June 30, 1997.
State Federal Savings and Loan Association's capital continues to
exceed all regulatory requirements.
STATEFED FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
Three Months Ended Fiscal Year Ended
June 30 June 30
Unaudited Unaudited Unaudited
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1997 1996 1997 1996
OPERATIONS DATA
Total interest income...................$ 1,665,500 $ 1,492,075 $ 6,407,032 $ 5,785,425
Total interest expense.................. 952,218 821,593 3,625,737 3,194,244
----------- ----------- ----------- -----------
Net interest income..................... 713,282 670,482 2,781,295 2,591,181
Provision for loan losses............... 18,000 6,000 36,000 24,000
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses....... 695,282 664,482 2,745,295 2,567,181
Non-interest income:
Real estate operations.................. 54,135 102,361 404,035 406,698
Gain on sale of RE...................... 147,092 -- 158,221 --
Other non-interest income............... 54,766 17,379 107,651 87,389
----------- ----------- ----------- -----------
Total non-interest income............... 255,993 119,740 669,907 494,087
Total non-interest expense.............. 434,356 411,373 1,991,059 1,703,015
----------- ----------- ----------- -----------
Income before income taxes.............. 516,919 372,849 1,424,143 1,358,253
Income tax expense...................... 184,958 131,600 502,818 475,400
----------- ----------- ----------- -----------
Net Income..............................$ 331,961 $ 241,249 $ 921,325 $ 882,853
=========== =========== =========== ===========
Earnings per share......................$ 0.43 $ 0.30 $ 1.20 $ 1.11
STATEFED FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
JUNE 30, 1997 AND JUNE 30, 1996
ASSETS (Unaudited) (Unaudited)
June 30, 1997 June 30, 1996
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Cash and amounts due from depository institutions $ 3,634,086 $ 2,564,267
Investments in certificates of deposit 4,435,425 4,439,567
Investment securities 3,477,168 2,347,048
Loans receivable, net 68,177,746 62,708,487
Real estate held for investment and development 2,703,254 1,535,466
Office property and equipment, net 1,418,982 1,464,796
Federal Home Loan Bank stock, at cost 950,000 750,000
Accrued interest receivable 567,478 533,706
Prepaid expenses and other assets 314,754 361,287
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TOTAL ASSETS $ 85,678,893 $ 76,704,624
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 50,345,972 $ 45,731,828
Advances from Federal Home Loan Bank 19,000,000 15,000,000
Advances from borrowers for taxes and insurance 490,053 505,749
Accrued interest payable 128,881 129,833
Dividends payable 78,372 81,349
Income taxes:current and deferred 200,327 138,255
Other liabilities 201,981 189,305
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TOTAL LIABILITIES $ 70,445,586 $61,776,319
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Stockholders' equity:
Common stock $ 8,905 $ 8,905
Additional paid-in capital 8,398,857 8,376,924
Unearned compensation - restricted stock awards (423,576) (531,989)
Unrealized gain (loss) on investments 57,462 (22,251)
Treasury stock (1,560,859) (1,049,358)
Retained earnings - substantially restricted 8,752,518 8,146,074
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TOTAL STOCKHOLDERS' EQUITY $ 15,233,307 $ 14,928,305
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 85,678,893 $ 76,704,624
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