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INTER-REGIONAL FINANCIAL GROUP REPORTS 1991 EARNINGS UP 103 PERCENT ON 35 PERCENT INCREASE IN NET REVENUES

 INTER-REGIONAL FINANCIAL GROUP REPORTS 1991 EARNINGS UP
 103 PERCENT ON 35 PERCENT INCREASE IN NET REVENUES
 Fourth-Quarter Results Also A Record
 MINNEAPOLIS, Feb. 5 /PRNewswire/ -- Inter-Regional Financial Group, Inc. (NYSE: IFG), parent company of regional broker-dealers Dain Bosworth Incorporated, Minneapolis, and Rauscher Pierce Refsnes, Inc., Dallas, today reported record net earnings for the year ended Dec. 31, 1991, of $27.7 million, 103 percent above 1990 net earnings of $13.7 million and 73 percent above its previous earnings record set in 1986. Earnings before extraordinary items were also a record, up $19.8 million to $21.1 million, or $2.50 per share primary, from the $1.3 million, or 16 cents per share primary, reported in 1990.
 Net earnings per share for 1991 were $3.28 primary and $2.96 fully diluted, compared with $1.66 primary and fully diluted for 1990. Net earnings in 1990 included an extraordinary gain of $12.3 million, or $1.50 per share, due mainly to the settlement of a lawsuit against a former auditor.
 Net revenues (revenues less interest expense) for 1991 totaled $322.6 million, an increase of 35 percent over net revenues of $239.6 million in the prior year. Dain Bosworth and Rauscher Pierce Refsnes contributed $204.3 million and $120.8 million, respectively, to that consolidated total.
 Irving Weiser, IFG's president and chief executive officer, called 1991 "an exciting year for IFG, the best year in our history" because the company capitalized on favorable market and economic trends and controlled its fixed expenses. "The bull market sparked a strong year for equity offerings, and falling interest rates prompted a rally in the bond markets and brought individual investors back to the market," Weiser said. He also noted that IFG's controllable expenses (non-volume related expenses) rose only 4 percent over 1990 levels.
 Prior to 1991, IFG management had taken steps to strengthen the company's balance sheet, reduce corporate overhead and enhance operations at its broker-dealers. As a result, IFG's return on average equity at year-end 1991 was "one of the industry's highest," 23.8 percent on earnings before extraordinary items and 31.3 percent on net earnings.
 For the 1991 fourth quarter, IFG's net earnings increased by $8.2 million to a record $8.5 million on quarterly net revenues of $93.8 million, also a record. Fourth-quarter net earnings per share were 99 cents primary and 93 cents fully diluted, compared with 3 cents per share, primary and fully diluted, in fourth-quarter 1990.
 Among the year's milestones, the company cited the launching of its new money management subsidiary, Insight Investment Management, Inc., a successor to Insight Bond Management, a former subsidiary of Dain Bosworth that managed bond funds and provided portfolio management services to individual and institutional investors. During the fourth quarter, Insight Investment Management began accepting client balances for its new series of money market funds, Great Hall Investment Funds, and by year end had appoximately $1 billion under management. "We are pleased by the progress made by this important new business in its start-up year," Weiser said. "Bringing all cash-management programs in- house gives us better cost-control and enables both Dain and Rauscher to provide high quality, competitive products and services that meet the investment needs of their clients."
 Also among the year's milestones, the company said it reached more than $100 million in shareholders' equity and achieved a debt-to-equity ratio that is its lowest in more than a decade. The company said its strong earnings, coupled with its redemption of the $17.8 million remaining balance of its 11-1/2 percent subordinated convertible debentures, gives IFG its strongest balance sheet in history. "We recognize that a strong balance sheet is absolutely essential in a cyclical industry such as ours," Weiser said.
 Inter-Regional Financial Group, Inc., provides full-service securities and investment banking services in 22 states through its subsidiaries, Dain Bosworth Incorporated, Minneapolis, and Rauscher Pierce Refsnes, Inc., Dallas. The parent company's common stock is traded on the New York Stock Exchange under the symbol IFG.
 INTER-REGIONAL FINANCIAL GROUP, INC.
 CONSOLIDATED SUMMARY OF OPERATIONS
 (In thousands, except per-share amounts)
 Three Months Ended Twelve Months Ended
 December 31, December 31,
 1991 1990 1991 1990
 ------------------ -------------------
 Revenues $104,743 $80,148 $378,274 $312,882
 Interest expense (10,971) (17,533) (55,682) (73,238)
 Net revenues 93,772 62,615 322,592 239,644
 Expenses excluding
 interest 82,610 62,476 289,574 238,038
 Earnings before income
 taxes and extraordinary
 items 11,162 139 33,018 1,606
 Income tax (expense)
 (benefit) (3,828) 56 (11,888) (281)
 Earnings before
 extraordinary items 7,334 195 21,130 1,325
 Extraordinary items 1,140 99 6,611 12,349
 Net earnings $ 8,474 $ 294 $ 27,741 $ 13,674
 Earnings per share:
 Primary:
 Before extraordinary
 items $ .86 $. 02 $ 2.50 $. 16
 Extraordinary items .13 .01 .78 1.50
 Net $ .99 $ .03 $ 3.28 $ 1.66
 Fully diluted:
 Before extraordinary
 items $ .81 $ .02 $ 2.30 $ .16
 Extraordinary items .12 .01 .66 1.50
 Net $ .93 $ .03 $ 2.96 $ 1.66
 Shares used for
 per-share calculation:
 Primary 8,590 8,095 8,463 8,216
 Fully diluted 9,445 8,095 10,067 8,216
 SELECTED SEGMENT DATA:
 Three Months Ended Twelve Months Ended
 December 31, December 31,
 1991 1990 1991 1990
 Net revenues:
 Dain Bosworth
 Incorporated $ 58,150 $ 39,445 $204,346 $157,805
 Rauscher Pierce
 Refsnes, Inc. 35,746 23,939 120,817 85,344
 Corporate, other
 and eliminations (124) (769) (2,571) (3,505)
 ----- $93,772 $62,615 $322,592 $239,644
 Earnings before income
 taxes and extraordinary
 items:
 Dain Bosworth
 Incorporated $ 8,772 $ 250 $ 26,072 $ 6,912
 Rauscher Pierce
 Refsnes, Inc. 4,430 539 12,839 (782)
 Corporate, other
 and eliminations (2,040) (650) (5,893 (4,524)
 ---- $ 11,162 $ 139 $ 33,018 $ 1,606
 -0- 02/05/92
 /CONTACT: B. J. French of IFG, 612-371-2363/
 (IFG) CO: Inter-Regional Financial Group, Inc. ST: Minnesota IN: SU: ERN


KH -- MN004 -- 7046 02/05/92 09:29 EST
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