Exhibit 13
Financial Highlights
Year Ended December 31 (in thousands, except per share data) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||
Summary of Income Data | ||||||||||||||||
Interest income excluding loan pool participations | $ | 28,593 | 27,482 | 30,510 | 31,551 | 21,162 | ||||||||||
Interest and discount on loan pool participations | 8,985 | 10,058 | 9,595 | 7,275 | 7,668 | |||||||||||
Total interest income | 37,578 | 37,540 | 40,105 | 38,826 | 28,830 | |||||||||||
Total interest expense | 14,767 | 17,027 | 21,427 | 21,427 | 13,195 | |||||||||||
Net interest income | 22,811 | 20,513 | 18,678 | 17,399 | 15,635 | |||||||||||
Provision for loan losses | 589 | 1,070 | 1,776 | 892 | 3,628 | |||||||||||
Other income | 4,358 | 3,787 | 4,287 | 2,566 | 1,947 | |||||||||||
Other operating expenses | 17,387 | 14,426 | 14,467 | 13,313 | 10,462 | |||||||||||
Income before income tax | 9,193 | 8,804 | 6,722 | 5,760 | 3,492 | |||||||||||
Income tax expense | 3,267 | 3,015 | 2,366 | 1,759 | 1,270 | |||||||||||
Net income | $ | 5,926 | 5,789 | 4,356 | 4,001 | 2,222 | ||||||||||
Per Share Data | ||||||||||||||||
Net income - basic | $ | 1.54 | 1.49 | 1.10 | 0.99 | 0.58 | ||||||||||
Net income - diluted | 1.50 | 1.46 | 1.09 | 0.99 | 0.56 | |||||||||||
Cash dividends declared | 0.64 | 0.64 | 0.60 | 0.60 | 0.60 | |||||||||||
Book value | 14.84 | 14.17 | 13.12 | 12.51 | 11.59 | |||||||||||
Net tangible book value | 11.08 | 11.53 | 10.37 | 9.54 | 8.62 | |||||||||||
Selected Financial Ratios | ||||||||||||||||
Net income to average assets | 0.98 | % | 1.07 | % | 0.82 | % | 0.81 | % | 0.64 | % | ||||||
Net income to average equity | 10.52 | % | 10.91 | % | 8.59 | % | 8.18 | % | 5.29 | % | ||||||
Dividend payout ratio | 41.56 | % | 42.95 | % | 54.55 | % | 60.61 | % | 103.45 | % | ||||||
Total shareholders’ equity to total assets | 9.01 | % | 10.37 | % | 9.32 | % | 9.59 | % | 10.33 | % | ||||||
Tangible shareholders’ equity to tangible assets | 6.88 | % | 8.60 | % | 7.51 | % | 7.48 | % | 7.90 | % | ||||||
Tier 1 capital ratio | 11.20 | % | 14.67 | % | 9.95 | % | 10.58 | % | 11.42 | % | ||||||
Net interest margin | 4.10 | % | 4.10 | % | 3.84 | % | 3.87 | % | �� | 4.89 | % | |||||
Gross revenue of loan pools to total gross revenue | 21.42 | % | 24.34 | % | 21.61 | % | 17.58 | % | 24.91 | % | ||||||
Allowance for loan losses to total loans | 1.29 | % | 1.30 | % | 1.05 | % | 0.94 | % | 1.42 | % | ||||||
Non-performing loans to total loans | 0.83 | % | 0.86 | % | 1.08 | % | 0.95 | % | 1.71 | % | ||||||
Net loans charged off to average loans | 0.08 | % | 0.15 | % | 0.42 | % | 0.65 | % | 1.14 | % | ||||||
December 31 (in thousands) | 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||
Selected Balance Sheet Data | ||||||||||||||||
Total assets | $ | 623,306 | 537,026 | 545,160 | 513,814 | 486,368 | ||||||||||
Total loans net of unearned discount | 377,017 | 306,024 | 322,681 | 312,081 | 282,091 | |||||||||||
Total loan pool participations | 89,059 | 82,341 | 110,393 | 74,755 | 67,756 | |||||||||||
Allowance for loan losses | 4,857 | 3,967 | 3,381 | 2,933 | 4,006 | |||||||||||
Total deposits | 453,125 | 395,546 | 378,645 | 370,144 | 348,672 | |||||||||||
Total shareholders’ equity | 56,144 | 55,698 | 50,827 | 49,295 | 50,235 |
Company Information,
Auditor’s Report
MidWestOne Financial Group, Inc. Common Stock
trades on the Nasdaq National Market and the quotations are furnished by the Nasdaq system. There were 442 shareholders of record on December 31, 2003, and an estimated 1,100 additional beneficial holders whose stock was held in street name by brokerage houses.
Nasdaq Symbol OSKY
Market Participants
Howe Barnes Investments, Inc.
RBC Dain Rauscher, Inc.
Knight Equity Markets, L.P.
Schwab Capital Markets
Goldman, Sachs & Co.
National Stock Exchange
Wien Securities Corp.
Archipelago Exchange (The)
THE BRUT ECN, LLC
B-Trade Services, LLC
Corporate Headquarters
222 1st Avenue East
P.O. Box 1104
Oskaloosa, IA 52577
(641) 673-8448
www.midwestonefinancial.com
Annual Shareholders’ Meeting
April 30, 2004, 10:30 a.m.
Elmhurst Country Club
2214 South 11th Street
Oskaloosa, IA 52577
Wall Street Journal and Other Newspapers
MdWstOneFnl or MdWsOnFn
Transfer Agent/Dividend Disbursing Agent
Illinois Stock Transfer Company
209 West Jackson Boulevard
Suite 903
Chicago, IL 60606
(312) 427-2953
(800) 757-5755
Independent Auditor
KPMG LLP
2500 Ruan Center
Des Moines, IA 50309
Annual Report Design
J.W. Morton & Associates
Cedar Rapids, IA
The following table sets forth the quarterly high and low sales per share for the Company’s stock during 2003 and 2002.
’03 Quarter Ended | High | Low | ||||
March 31 | $ | 16.59 | $ | 15.47 | ||
June 30 | 16.40 | 14.95 | ||||
September 30 | 18.09 | 15.97 | ||||
December 31 | 19.00 | 17.95 |
[GRAPHIC APPEARS HERE]
’02 Quarter Ended | High | Low | ||||
March 31 | $ | 13.64 | $ | 11.10 | ||
June 30 | 14.52 | 13.15 | ||||
September 30 | 14.30 | 11.70 | ||||
December 31 | 16.23 | 13.36 |
As of December 31, 2003, the Company had 3,782,708 shares of Common Stock outstanding. On December 31, 2002, there were 3,930,508 shares outstanding. The Company has declared per share cash dividends with respect to its Common Stock as follows:
Quarter | 1st | 2nd | 3rd | 4th | ||||||||
2003 | $ | .16 | $ | .16 | $ | .16 | $ | .16 | ||||
2002 | $ | .16 | $ | .16 | $ | .16 | $ | .16 |
Independent Auditor’s Report
To the Board of Directors of MidWestOne Financial Group, Inc.:
We have audited, in accordance with the auditing standards generally accepted in the United States of America, the consolidated balance sheets of MidWestOne Financial Group, Inc. as of December 31, 2003 and 2002, and the related consolidated statements of income, changes in stockholders equity and comprehensive income and cash flows for each of the years in the three year period ended December 31, 2003 (not presented herein); and in our report dated February 13, 2004, we expressed an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the condensed consolidated financial information appearing on pages 9 through 11 is fairly presented, in all material respects, in relation to the consolidated financial statements from which it has been derived.
KPMG LLP
KPMG LLP
Des Moines, Iowa
February 13, 2004
Copies of the MidWestOne Financial Group Inc. Annual Report to the Securities and Exchange Commission Form 10-K will be mailed when available [ILLEGIBLE] to shareholders upon [ILLEGIBLE] request to [ILLEGIBLE], Secretary/Treasurer at the corporate headquarters. It is also available on the Securities and Exchange Commission’s Internet web site at [ILLEGIBLE]