Exhibit 99.1 STATEFED FINANCIAL CORPORATION
13523 University Avenue
Clive, Iowa 50325
FOR IMMEDIATE RELEASE
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STATEFED FINANCIAL CORP. REPORTS THIRD-QUARTER EARNINGS
DES MOINES, IOWA (APRIL 28, 2003) -- STATEFED FINANCIAL CORPORATION (NASDAQ:
"SFFC"), the parent company of STATE FEDERAL BANK, today reported net income of
$241,800 for the quarter ended March 31, 2003, compared to $14,400 for the
quarter ended March 31, 2002. The results total $0.19 basic earnings per share
compared to $0.01 per share for the same quarter a year earlier. For the first
nine months of fiscal year 2003, the company realized a net profit of $243,800.
Net interest income before provision for loans increased 12 percent for the
quarter to $890,900 and rose 7 percent for the first nine months of the fiscal
year to $2.5 million. Net interest income after the provision improved due to
increased loan production and continued efforts to reduce interest expense.
Non-interest income, excluding the impact of real estate operations, 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 for the quarter and the
nine months of the year 34 percent and 24 percent, respectively, due to
increases in commissions, benefits, and occupancy expenses associated with the
expansion of mortgage lending and other increased occupancy expenses. Earnings
for the quarter were also positively impacted by income tax recoveries and the
resolution of income tax contingencies totaling approximately $150,000.
Loan originations were up 67% from the same quarter last year. Deposits
were $9.7 million higher this quarter than the same quarter last year, while
interest expense on deposits decreased $53,000 for the same period. The
provision for loan losses decreased $218,800 for the year to date as compared to
the same period last year.
Loan production for the first three-quarters of fiscal year 2003 reached
$25.9 million, more than a 73% increase in the activity for the first
three-quarters of fiscal-year 2002, which totaled $14.9 million. The company
continues to sell approximately 40 percent of its mortgages to the secondary
market. Net loans outstanding were $86.2 million at the end of the third fiscal
quarter compared to $84.8 million at June 30, 2002. In addition the company held
$1.1 million in loans for sale at March 31, 2003.
StateFed continues to grow deposits, which totaled $77.0 million at March
31, 2003 compared to $66.9 million at June 30, 2002, an increase of $10.1
million or 15.2%.
On March 31, 2003, StateFed reported total assets of $100.7 million and
stockholders' equity of $14.2 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,"
"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.
STATEFED FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, 2003 and June 30, 2002
(Unaudited)
ASSETS
MARCH 31, 2003 JUNE 30, 2002
Cash and amounts due from depository institutions $ 5,056,700 $ 3,114,700
Investments in certificates of deposit 99,000 99,000
Investment securities available for sale 1,298,900 1,323,900
Loans held for sale 1,092,300 -
Loans receivable, net 86,199,500 84,771,500
Real estate held for sale, net 540,500 540,500
Property acquired in settlement of loans 138,700 364,600
Office property and equipment, net 3,386,700 3,405,700
Federal Home Loan Bank stock, at cost 1,762,200 1,762,200
Accrued interest receivable 536,400 572,400
Accrued and deferred income taxes 239,700 142,100
Other assets 344,200 308,600
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TOTAL ASSETS $ 100,694,800 96,405,200
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 77,048,900 $ 66,901,100
Advances from Federal Home Loan Bank 9,000,000 14,000,000
Advances from borrowers for taxes and insurance 29,900 351,400
Accrued interest payable 9,700 174,900
Dividends payable 129,200 127,900
Income taxes payable - 305,200
Other liabilities 256,200 349,100
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TOTAL LIABILITIES 86,473,900 82,209,600
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Stockholders' equity:
Common stock 17,800 17,800
Additional paid-in capital 8,524,200 8,527,900
Unearned compensation - Employee Stock Ownership Plan (44,200) (85,600)
Accumulated other comprehensive income - unrealized gains
on investment securities available for sale, net of deferred taxes 25,100 27,500
Treasury stock (5,041,200) (5,172,500)
Retained earnings - substantially restricted 10,739,200 10,880,500
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TOTAL STOCKHOLDERS' EQUITY 14,220,900 14,195,600
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 100,694,800 $ 96,405,200
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STATEFED FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATION
FOR THE THREE AND NINE MONTH PERIODS ENDED MARCH 31, 2003 AND MARCH 31, 2002
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31 MARCH 31
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2003 2002 2003 2002
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Interest Income:
Loans $ 1,630,000 $ 1,647,900 $ 4,893,000 $ 5,291,000
Investments & other 22,200 36,000 90,100 203,700
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Total interest income 1,652,200 1,683,900 4,983,100 5,494,700
Interest Expense:
Deposits 645,000 697,800 2,015,100 2,391,300
Borrowings 116,300 193,300 478,000 781,600
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Total interest expense 761,300 891,100 2,493,100 3,172,900
Net interest income 890,900 792,800 2,490,000 2,321,800
Provision for loan losses 63,600 207,500 166,700 385,500
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Net interest income after
provision for loan losses 827,300 585,300 2,323,300 1,936,300
Non-interest Income:
Real estate operations 9,500 6,900 35,500 241,700
Gain on sales of loans 64,300 - 108,000 -
Gain (loss) on sale of investments (1,000) 6,100 (5,500) 6,100
Gain on sale of real estate, net 7,100 200 16,800 638,400
Other 79,900 61,300 199,300 123,700
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Total non-interest income 159,800 74,500 354,100 1,009,900
Non-interest Expense:
Salaries and benefits 405,100 341,000 1,214,800 1,006,600
Real estate operations - 23,400 - 164,400
Occupancy and equipment 146,900 85,200 444,100 259,200
FDIC premiums and OTS assessments 11,200 10,900 32,900 33,200
Data processing 43,600 39,600 128,400 104,000
Other 279,800 160,300 794,300 537,000
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Total non-interest expense 886,600 660,400 2,614,500 2,104,400
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Income (loss) before income taxes 100,500 (600) 62,900 841,800
Income tax expense (benefit) (141,300) (15,000) (180,900) 254,500
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Net income $ 241,800 $ 14,400 $ 243,800 $ 587,300
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Basic earnings per share $ 0.19 $ 0.01 $ 0.19 $ 0.47
Diluted earnings per share 0.19 0.01 0.19 0.46
Dividends declared per common share $ 0.10 $ 0.10 $ 0.30 $ 0.30