State is home to disloyal extremists, alas (5)
I believe the answer is:
sadly
'alas' is the definition.
(I've seen this before)
'state is home to disloyal extremists' is the wordplay.
'state' becomes 'say' (speak).
'is home to' is an insertion indicator (some letters house or home others).
'extremists' means to remove the middle letters (letters on the extreme ends of the word).
'disloyal' with its centre removed is 'dl'.
'say' going around 'dl' is 'SADLY'.
(Other definitions for sadly that I've seen before include "Mournfully" , "Unhappily" , "I regret to say" , "Lamentably, unfortunately" , "Alas" .)