Exhibit 99.1
STATEFED FINANCIAL CORPORATION
13523 University Avenue
Clive, Iowa 50325
FOR IMMEDIATE RELEASE
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StateFed Financial Corp. Reports Year End Earnings
DES MOINES, Iowa (October 3, 2003) -- StateFed Financial Corporation (NASDAQ:
"SFFC"), the parent company of State Federal Bank, today reported fiscal year
results and quarterly earnings. For the fiscal year ending June 30, 2003, there
was a net loss totaling $38,820, compared to a net income of $530,820 for the
fiscal year ending June 30, 2002. The results yielded basic loss per share of
$0.03 compared with basic earnings per share of $0.42 for fiscal year 2002.
Net interest income before provision for loan losses increased 5.5
percent for the fiscal year to $3.3 million from $3.1 million for fiscal 2002,
primarily due to the continued efforts to reduce interest expense. The provision
for loan losses increased $197,190 to $762,850 for the year ended June 30, 2003
from $565,660 for the year ended June 30, 2002. The large increase in the
provision occurred during the fourth quarter. The provision was $596,190 for the
fourth quarter of fiscal 2003, compared to $180,160 for the fourth quarter of
fiscal 2002. The increase of $416,030 was primarily related to three commercial
loans. Non-interest income, excluding the impact of real estate operations and
the one-time gain on the sale of the Company's apartment buildings during fiscal
2002, continued to grow as a result of increases in fee income and gains on the
sale of loans to the secondary market. Non-interest expenses increased due to
increases in commissions, benefits, occupancy and marketing expenses associated
with the expansion and increased activity of mortgage lending. Income tax
recoveries and the resolution of income tax contingencies totaling $340,910
positively impacted earnings for the year.
Loan production for the fiscal year 2003 reached $37.2 million, more
than a 68.4% increase in the activity for fiscal-year 2002, which totaled $22.1
million. Net loans outstanding were $82.2 million at the end of the fiscal year
compared to $84.8 million at June 30, 2002. In addition, the company held $1.9
million in loans for sale at June 30, 2003.
StateFed grew deposits to a total of $73.0 million at June 30, 2003
compared to $66.9 million at June 30, 2002, an increase of $6.1 million or 9.1%.
On June 30, 2003, StateFed reported total assets of $96.8 million and
stockholders' equity of $13.9 million. State Federal Bank remains "well
capitalized" under federal banking regulations.
The Corporation's stock is traded on the NASDAQ Small-Cap Market under
the symbol "SFFC". When used in this press release or other public shareholder
communications, or in oral statements made with the approval of an authorized
executive officer, the words or phrases "will likely result," "are expected to,"
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"will continue," "is anticipated," "estimate," "project," "significantly" or
similar expressions are intended to identify "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. The Company
wishes to caution readers not to place undue reliance on any forward-looking
statements, which speak only as of the date made, and to advise readers that
various factors including regional and national economic conditions, changes in
levels of market interest rates, credit risks of lending activities and
competitive and regulatory factors could affect the Bank's financial performance
and could cause the Company's actual results for future periods to differ
materially from those anticipated or projected.
The Company does not undertake, and specifically disclaims, any
obligations to publicly release the result of any revisions that may be made to
any forward-looking statements to reflect the occurrence of events or
circumstances after the date of such statements.
For information, contact: Randall C. Bray, chairman, president & CEO,
515-252-0813.
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STATEFED FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, 2003 and June 30, 2002
June 30,
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2003 2002
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ASSETS
Cash and amounts due from depository institutions $ 4,407,300 $ 3,114,700
Investments in certificates of deposit 99,000 99,000
Investment securities available-for-sale 1,264,500 1,323,900
Loans held for sale 1,870,700 -
Loans receivable, net 82,193,600 84,771,500
Real estate held for sale, net 540,500 540,500
Property acquired in settlement of loans 87,500 364,600
Office property and equipment, net 3,323,500 3,405,700
Federal Home Loan Bank stock, at cost 1,762,200 1,762,200
Accrued interest receivable 470,400 572,400
Income tax refund receivable 90,700 -
Deferred income taxes 314,900 142,100
Other assets 328,600 308,600
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Total Assets $ 96,753,400 $ 96,405,200
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LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 72,973,500 $ 66,901,100
Advances from the Federal Home Loan Bank 9,000,000 14,000,000
Advances from borrowers for taxes and insurance 380,600 351,400
Accrued interest payable 1,700 174,900
Income taxes payable - 305,200
Accounts payable and other liabilities 361,700 349,100
Dividends payable 129,200 127,900
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Total Liabilities 82,846,700 82,209,600
Commitments and Contingencies
Stockholders' equity
Common stock 17,800 17,800
Additional paid-in capital 8,566,200 8,527,900
Retained earnings - substantially restricted 10,327,500 10,880,500
Treasury stock (5,041,200) (5,172,500)
Unearned employee stock ownership plan shares (30,900) (85,600)
Net unrealized gains on investments 67,300 27,500
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Total Stockholders' Equity 13,906,700 14,195,600
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Total Liabilities and Stockholders' Equity $ 96,753,400 $ 96,405,200
============ ============
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STATEFED FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATION
For the Three and Twelve Month Periods Ending June 30, 2003 and June 30, 2002
Three Months Ended Twelve Months Ended
June 30, June 30,
-------------------------- --------------------------
2003 2002 2003 2002
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Interest Income:
Loans $ 1,523,740 $ 1,646,010 $ 6,416,720 $ 6,937,020
Investments & other 25,970 34,460 116,110 238,170
----------- ----------- ----------- -----------
Total interest income 1,549,710 1,680,470 6,532,830 7,175,190
Interest Expense:
Deposits 611,190 668,530 2,626,350 3,059,880
Borrowings 117,540 195,150 595,510 976,760
----------- ----------- ----------- -----------
Total interest expense 728,730 863,680 3,221,860 4,036,640
Net interest Income 820,980 816,790 3,310,970 3,138,550
Provision for loan losses 596,190 180,160 762,850 565,660
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 224,790 636,630 2,548,120 2,572,890
Non-interest Income:
Real estate operations 13,400 5,270 48,930 247,000
Gain on sales of loans 68,700 - 176,730 -
Gain (loss) on sale of investments (1,560) 106,740 (7,090) 112,890
Gain (loss) on sale of real estate, net (2,390) (3,780) 14,400 634,660
Other 85,980 59,350 285,310 196,350
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Total non-interest income 164,130 167,580 518,280 1,190,900
Non-interest expense:
Salaries and benefits 433,230 362,710 1,648,060 1,369,300
Real estate operations - 19,320 - 183,740
Occupancy and equipment 107,680 168,360 551,830 429,380
FDIC Premiums and OTS assessments 11,270 11,200 44,150 44,390
Data processing 45,060 40,720 173,460 144,750
Provision for loss on assets held for sale - 157,890 - 157,890
Other 234,310 165,690 1,028,630 714,210
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Total non-interest expense 831,550 925,890 3,446,130 3,043,660
----------- ----------- ----------- -----------
Income (loss) before income taxes (442,630) (121,680) (379,730) 720,130
Income tax expense (benefit) (160,060) (65,210) (340,910) 189,310
----------- ----------- ----------- -----------
Net income (loss) $ (282,570) $ (56,470) $ (38,820) $ 530,820
=========== =========== =========== ===========
Basic earnings (loss) per share $ (0.22) $ (0.04) $ (0.03) $ 0.42
Diluted earnings (loss) per share $ (0.22) $ (0.04) $ (0.03) $ 0.41
Dividends declared per common share $ 0.10 $ 0.10 $ 0.40 $ 0.40
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