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James B. Mitchell, Vice President & CFO
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FOR IMMEDIATE RELEASE

FIRST INDEPENDENCE ANNOUNCES THIRD QUARTER EARNINGS

     INDEPENDENCE, KS (July 17, 2003) -- First Independence Corporation (Pink Sheets: FFSL.PK) (the “Company”), reported net earnings of $309,000 for the third quarter of fiscal 2003, compared to $295,000 for the third quarter of fiscal 2002.  Diluted earnings per share of common stock for the third quarter of fiscal 2003 were $.33, compared to diluted earnings per share of $.30 for the third quarter of fiscal 2002.  Net earnings for the first nine months of fiscal 2003 were $1,056,000, compared to $1,650,000 for the first nine months of fiscal 2002.  Diluted earnings per share for the nine months ended June 30, 2003 were $1.13, compared to diluted earnings per share of $1.69 for the nine months ended June 30, 2002.  Earnings for the nine months ended June 30, 2002 included $682,000 due to the adoption on October 1, 2001, of Statement of Financial Accounting Standards No. 141, “Business Combinations” which addresses the accounting for negative goodwill.  Negative goodwill of $682,000, arising from an earlier business combination, was recognized as the cumulative effect of the accounting change and increased diluted earnings per share for the nine months ended June 30, 2002 by $.70.  Excluding the cumulative effect of a change in accounting principle, net earnings for the nine months ended June 30, 2002, would have been $968,000.

      Return on average assets for the third quarter of fiscal 2003 was .77% (annualized), compared to .77% (annualized), for the same period last year.  Return on average equity for the third quarter of fiscal 2003 was 8.21% (annualized), compared to 7.88% (annualized), in the third quarter of fiscal 2002.  Return on average assets for the first nine months of fiscal 2003 was .88% (annualized), compared to .85% (annualized, exclusive of effect of change in accounting principle) for the same period last year.  Return on average equity for the first nine months of fiscal 2003 was 9.40% (annualized), compared to 8.75% (annualized, exclusive of effect of change in accounting principle) for the first nine months of fiscal 2002.

    We had $158.5 million in assets and $15.2 million in stockholders’ equity as of June 30, 2003.  At June 30, 2003, total shares outstanding were 926,680.

     The Company is the parent corporation for First Federal Savings and Loan Association of Independence, Kansas ("First Federal").  At June 30, 2003, First Federal exceeded all of its regulatory capital requirements.  First Federal has four full-service branch offices primarily serving Montgomery, Wilson, Crawford and Chautauqua Counties in Kansas along with a loan production office in Lawrence, Kansas.

     This release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.  These risks and uncertainties include, among others, changes in economic conditions in our market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in our market area and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected.  For additional discussion of factors that may affect the Company’s performance, refer to those described from time to time in our press releases and other communications.

    A consolidated financial summary follows.

 

FIRST INDEPENDENCE CORPORATION FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share data)
					June 30, 2003																September 30, 2002
Financial Condition Highlights:
Total assets					$ 158,479																$ 156,050
Loans receivable					107,547																118,578
Loans held for sale					---																88
Mortgage-backed and investment securities       held to maturity					34,396																19,809
Real estate acquired through foreclosure					520																730
Deposits					104,038																108,221
Borrowed funds					38,676																32,000
Stockholders' equity					15,159																14,577
Stockholders' equity per outstanding      common share					$16.36																$15.92
Selected Asset Quality Ratios:
Non-performing loans to total loans					1.10%																1.52%
Non-performing assets to total assets					1.08%																1.63%
Allowance for loan losses to non-performing loans					65.49%																45.51%
Allowance for loan losses to non-performing assets					45.57%																32.48%
			Three months ended June 30,															Nine months ended June 30,
			2003								2002								2003							2002
Operating Highlights:
Net interest income			$ 1,215								$ 1,321								$ 3,773							$ 3,948
Provision for loan losses			22								76								22							208
Earnings before cumulative effect of       change in accounting principle			309								295								1,056							968
Cumulative effect of change in accounting      for negative goodwill amortization			---								---								---							682
Net earnings			309								295								1,056							1,650
Operating Ratios (annualized):
Return on average assets			.77%								.77%								.88%							1.44%
Return on average equity			8.21%								7.88%								9.40%							14.92%
Interest rate spread information:
Average yield on interest-earning assets			5.96%								7.06%								6.22%							7.34%
Average cost of interest-bearing liabilities			3.10%								3.86%								3.24%							4.16%
Average rate spread during period			2.86%								3.20%								2.98%							3.18%
Net interest margin			3.11%								3.53%								3.24%							3.53%
Ratio of average interest-earning assets      to average interest-bearing liabilities			108.66%								109.32%								108.70%							109.18%
Stock price for period:
High bid			$16.12								$16.45								$16.12							$16.45
Low bid			$15.80								$15.05								$14.50							$12.52
Closing bid at 6/30			$16.12								$16.25								$16.12							$16.25
Net earnings per share (diluted)				$.33						$.30										$1.13							$1.69
	Weighted average shares of common stock and common stock equivalents	933,210						981,862									932,464								975,576