Consumers Financial Corp. Announces 3rd Quarter and Year-to-Date 1997 Operating Results.

CAMP HILL, Pa.--(BUSINESS WIRE)--Nov. 14, 1997--Consumers Financial Corp. (NASDAQ:CFIN) Friday announced third quarter net income of $102,000 (a loss of 1 cent per share) compared to a loss of $225,000 (13 cents per share) in the same period of 1996.

On a year-to-date basis, the company's loss totaled $1.2 million (60 cents per share) in 1997 versus a loss of $891,000 (47 cents per share) last year. The loss from continuing operations declined slightly from $1.3 million in 1996 to $1.1 million this year as a result of higher income tax benefits than in 1996.

The operating results of the company's auto auction and individual life insurance segments are presented as discontinued operations as a result of the sale of those businesses in the fourth quarter of 1996 and the first quarter of 1997, respectively. A loss from discontinued operations of $125,000 was reported in the first nine months of 1997 compared to net income of $435,000 in the same period of 1996.

The Automotive Resource Division, which currently is the company's only remaining business segment, markets credit insurance and other products and services primarily to automobile dealers. The Division's premium revenues in the first nine months of 1997 were $20.6 million, which represents a decline of 14% compared to the same period in 1996.

A significant portion of the decline is attributable to the company's cancellation during 1996 of unprofitable business in North Carolina, Tennessee, Ohio and Virginia. Although the Division's pre-tax operating results improved slightly in the third quarter, year-to-date results have declined significantly from a $1.4 million loss last year to a $2.2 million loss in 1997.

The decline is the result of higher credit insurance claims ratios for both life and disability business. Lower expenses partially offset the higher claim. A decrease in earned premiums due to a decline in the written premium base also contributed to the poorer results.

Following the termination of the merger agreement with LaSalle Group Inc. in July 1997 (because of LaSalle's inability to provide the funding to complete the transaction), the company entered into a letter of intent to sell the operations of its Automotive Resource Division to Life of the South Corp. Closing on this transaction which is effective Oct. 1, 1997, is expected to occur in late January 1998.

The transaction is subject to approval of insurance regulators in Delaware, Ohio and Arizona and the approval of the company's shareholders. -0-

                           Consumers Financial Corp.
                       Financial Highlights (unaudited)

                                Three Months          Nine Months
                               Ended Sept. 30,        Ended Sept. 30,
(in thousands, except          1997        1996      1997        1996
 per share data)              ------------------    ------------------

Revenues (from continuing operations):

     Premiums written       $ 7,055    $ 7,817    $20,535    $24,328
     Net investment income      450        540      1,589      1,578
     Net realized investment
      gains (losses)            (22)      (136)       224       (158)
     Fees and other income      360        317        903      1,070
                              -----      -----      -----      -----
                            $ 7,843    $ 8,538    $23,251    $26,818
                            =======    =======    =======    =======

Loss from continuing
 operations before income
 tax benefit                  ($122)     ($644)   ($1,909)   ($1,766)
Income tax benefit             (231)      (363)      (828)      (440)
                              -----      -----      -----      -----
Income (loss) from
 continuing operations          109       (281)    (1,081)    (1,326)

Discontinued operations,
 net of income taxes             (7)        56       (125)       435
                              -----      -----      -----      -----

Net income (loss)              $102      ($225)   ($1,206)     ($891)
                            =======    =======    =======    =======

Per share data:

  Loss from continuing
   operations                ($0.01)    ($0.01)    ($0.55)    ($0.64)
  Discontinued operations        --         --      (0.05)      0.17
                            -------    -------   --------    -------
  Net loss                   ($0.01)    ($0.01)    ($0.60)    ($0.47)
                            =======    =======   ========    =======
Cash dividends declared
 per common share              none       none       none       none

====================================================================

                                           Sept. 30,        Dec. 31,
(in thousands, except                        1997             1996
 per share data)                           --------         --------

Assets                                     $ 91,490         $114,619
                                           ========         ========

Total debt                                 $      0         $      0
                                           ========         ========

Shareholders' equity and redeemable
  preferred stock                          $ 11,917         $ 13,343
                                           ========         ========

Shareholders' equity per common share         $2.71            $3.31
                                           ========         ========

CONTACT: Consumers Financial Corp., Camp Hill

R. Fredric Zullinger, CFO, 717/761-4230