First Securityfed Financial, Inc.
Ticker:FSFF 936 North Western Avenue
Exchange:NASDAQ-National Market Chicago, IL 60622
Industry:Financial (SIC Code 6035) (773) 772-4500

Offering Information
Type of Shares:Common Shares Filing Date:7/21/97
U.S. Shares:6,408,000 Offer Date:10/31/97
Non-U.S. Shares:0 Filing Price:$10.00
Primary Shares:6,408,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:
Offering Amount: $64,080,000 Selling:
Expenses: - Reallowance:
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Friedman, Billings, Ramsey & Co., Inc.Lead Manager (703) 312-9571

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Silver, Freedman & Taff
Bank's Law Firm: Chapman and Cutler
Auditor: Crowe, Chizek and Company

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
4 Month Ending Financials
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 4/30/97 4/30/96 4/30/97
Revenue:$19.75$6.69$6.32Assets:$260.00
Net Income:$0.45$0.76$0.99Curr Assets:
EPS:Liabilities:$230.05
Prior EPS:$0.38$1.36Curr Liabilities:$218.99
Cash Flow/Oper:$2.14Equity:$29.95
Cash Flow/Fin:-$3.03-$6.15Cash:$7.10
Cash Flow/Inv:-$18.59-$3.03

Business Description
The bank is a federally chartered mutual savings bank. The bank's business involves attracting deposits from the general public and using such deposits, together with other funds, to originate one-to-four family residential mortgage loans. The Bank currently serves the financial needs of communities in its market area through its main office located at 936 North Western Avenue, Chicago, Illinois 60622-4695 and from branch offices located in Chicago, Illinois, Philadelphia, Pennsylvania and Rolling Meadows, Illinois. Its deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation ("FDIC"). At April 30, 1997, First Security had total assets of $260.0 million, deposits of $219.0 million and equity of $30.0 million (or 11.54% of total assets). The bank has been, and intends to continue to remain, an independent, community oriented, financial institution. The bank's business involves attracting deposits from the general public and using such deposits, together with other funds, to originate primarily one- to four-family residential mortgages and, to a lesser extent, commercial real estate, multi-family, consumer and other loans primarily in its market area.

Competition
The bank experiences significant competition in its local market area in both originating real estate and other loans and attracting deposits. This competition arises from other savings institutions as well as credit unions, mortgage banks, commercial banks, mutual funds and, national and local securities firms. Due to their size, many competitors can achieve certain economies of scale and as a result offer a broader range of products and services than the Bank. The Bank attempts to mitigate the effect of such factors by emphasizing customer service and community outreach. Such competition may limit the bank's growth in the future.

Business Plan
The Bank seeks to obtain a competitive advantage in its deposit gathering and lending operations by maintaining a high level of community involvement and by offering a high level of personal service. In its deposit gathering operations, the Bank uses community outreach and customer service in an attempt to build and maintain a large volume of passbook and other non-certificate accounts. These accounts generally carry lower costs than certificate accounts and are believed to represent primarily "core" deposits that are less vulnerable to interest rate changes (and competition from other financial products) than certificate accounts. In its lending operations, the Bank seeks to obtain high quality residential and, to a lesser extent, other loans by maintaining a high level of local visibility, offering a high level of customer service and limiting its secondary market activities. The Bank's one- to four-family residential loan balances have increased significantly in recent years as a result of these efforts. At the same time, asset quality has remained high.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes.

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