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: October 30, 1997
StateFed Financial Corporation
519 Sixth Avenue
Des Moines, Iowa 50309
Phone: (515) 282-0236
STATEFED FINANCIAL CORPORATION
ANNOUNCES FIRST QUARTER 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 quarter ended September
30, 1997. For the three month period ended September 30, 1997, the company
reported net income of $224,141 as compared to $67,179 for the same period in
1996, an increase of $156,962. The increase in net earnings was primarily due to
a decrease in non-interest expense of $314,900, partially offset by an increase
in income tax expense of $81,300, and a decrease in net interest income of
$76,100. The decrease in non-interest expense was primarily the result of a
one-time special assessment of $291,300 required by legislation, of 65.7 cents
per $100 of SAIF "Savings Association Insurance Fund" deposits held by the Bank
at March 31, 1995.
At September 30, 1997, the company had total assets of $87.5 million
and total liabilities of $72.2 million, compared to total assets of $85.7
million and total liabilities of $70.4 million at June 30, 1997. The increase in
total assets for the three month period ending September 30, 1997 was due to an
increase in cash and amounts due from depository institutions of $2.3 million,
an increase in investment securities of $500,000, an increase in real estate
acquired for development of $280,000, partially offset by a decrease in
investments in certificates of deposit of $1.0 million and a decrease in loans
of $283,000.
The book value of StateFed Financial Corporation increased to $19.71
per share at September 30, 1997. Earnings per share for the first quarter ended
September 30, 1997 were 29 cents per share. As of September 30, 1997, there was
778,723 shares outstanding.
Continued
STATEFED FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
September 30, 1997 and June 30, 1997
ASSETS (Unaudited)
September 30, 1997 June 30, 1997
Cash and amounts due from depository institutions $ 5,896,882 $ 3,634,086
Investments in certificates of deposit 3,452,007 4,435,425
Investment securities available-for-sale 3,928,498 3,477,168
Loans receivable, net 67,894,619 68,177,746
Real estate acquired for development 445,322 435,484
Real estate held for investment, net 2,213,519 1,933,532
Property acquired in settlement of loans 368,497 333,939
Office property and equipment, net 1,459,717 1,418,982
Federal Home Loan Bank stock, at cost 950,000 950,000
Accrued interest receivable 536,539 567,478
Prepaid expenses and other assets 396,840 314,754
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TOTAL ASSETS $ 87,542,440 $ 85,678,594
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 52,333,096 $ 50,345,972
Advances from Federal Home Loan Bank 19,000,000 19,000,000
Advances from borrowers for taxes and insurance 88,836 490,053
Accrued interest payable 188,916 128,881
Dividends payable 78,372 78,372
Income taxes:current and deferred 317,492 200,327
Other liabilities 190,650 201,982
------------ ------------
TOTAL LIABILITIES $ 72,197,362 $ 70,445,587
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Stockholders' equity:
Common stock $ 8,905 $ 8,905
Additional paid-in capital 8,421,311 8,398,857
Unearned compensation - restricted stock awards (400,205) (423,576)
Unrealized gain (loss) on investments 89,514 57,462
Treasury stock (1,672,734) (1,560,859)
Retained earnings - substantially restricted 8,898,287 8,752,218
------------ ------------
TOTAL STOCKHOLDERS' EQUITY $ 15,345,078 $ 15,233,007
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 87,542,440 $ 85,678,594
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STATEFED FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
1st Quarter
September 30
Unaudited Unaudited
1997 1996
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OPERATIONS DATA
Total interest income ........... $1,632,963 $1,549,172
Total interest expense .......... 998,046 838,168
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Net interest income ............. 634,917 711,004
Provision for loan losses ....... 6,000 6,000
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Net interest income after
provision for loan losses 628,917 705,004
Non-interest income:
Real estate operations .......... 94,370 97,684
Other non-interest income ....... 17,064 14,219
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Total non-interest income ....... 111,434 111,903
Non-interest expense:
FDIC premium & OTS assessments .. 9,938 323,532
Other non-interest expense ...... 389,107 390,376
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Total non-interest expense ...... 399,045 713,908
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Income before income taxes ...... 341,306 102,999
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Income tax expense .............. 117,165 35,820
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Net Income ...................... $ 224,141 $ 67,179
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