Exhibit 13
2004
ANNUAL REPORT
Keeping Our Focus Where It Belongs.
[PHOTO APPEARS HERE]
2004
FINANCIAL HIGHLIGHTS
Year Ended December 31 (in thousands, except per share amounts) | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||
Summary of Income Data | ||||||||||||||||
Interest income excluding loan pool participations | $ | 27,977 | 28,593 | 27,482 | 30,510 | 31,551 | ||||||||||
Interest and discount on loan pool participations | 9,395 | 8,985 | 10,058 | 9,595 | 7,275 | |||||||||||
Total interest income | 37,372 | 37,578 | 37,540 | 40,105 | 38,826 | |||||||||||
Total interest expense | 13,370 | 14,767 | 17,027 | 21,427 | 21,427 | |||||||||||
Net interest income | 24,002 | 22,811 | 20,513 | 18,678 | 17,399 | |||||||||||
Provision for loan losses | 858 | 589 | 1,070 | 1,776 | 892 | |||||||||||
Other income | 4,276 | 4,358 | 3,787 | 4,287 | 2,566 | |||||||||||
Other operating expenses | 18,513 | 17,387 | 14,426 | 14,467 | 13,313 | |||||||||||
Income before income tax | 8,907 | 9,193 | 8,804 | 6,722 | 5,760 | |||||||||||
Income tax expense | 3,078 | 3,267 | 3,015 | 2,366 | 1,759 | |||||||||||
Net income | $ | 5,829 | 5,926 | 5,789 | 4,356 | 4,001 | ||||||||||
Per Share Data | ||||||||||||||||
Net income - basic | $ | 1.54 | 1.54 | 1.49 | 1.10 | 0.99 | ||||||||||
Net income - diluted | 1.50 | 1.50 | 1.46 | 1.09 | 0.99 | |||||||||||
Cash dividends declared | 0.68 | 0.64 | 0.64 | 0.60 | 0.60 | |||||||||||
Book value | 15.18 | 14.84 | 14.17 | 13.12 | 12.51 | |||||||||||
Net tangible book value | 11.32 | 11.08 | 11.53 | 10.37 | 9.54 | |||||||||||
Selected Financial Ratios | ||||||||||||||||
Net income to average assets | 0.92 | % | 0.98 | % | 1.07 | % | 0.82 | % | 0.81 | % | ||||||
Net income to average equity | 10.23 | % | 10.52 | % | 10.91 | % | 8.59 | % | 8.18 | % | ||||||
Dividend payout ratio | 44.16 | % | 41.56 | % | 42.95 | % | 54.55 | % | 60.61 | % | ||||||
Total shareholders’ equity to total assets | 8.75 | % | 9.01 | % | 10.37 | % | 9.32 | % | 9.59 | % | ||||||
Tangible shareholders’ equity to tangible assets | 6.67 | % | 6.88 | % | 8.60 | % | 7.51 | % | 7.48 | % | ||||||
Tier I capital ratio | 10.88 | % | 11.20 | % | 14.67 | % | 9.95 | % | 10.58 | % | ||||||
Net interest margin | 4.14 | % | 4.10 | % | 4.10 | % | 3.84 | % | 3.87 | % | ||||||
Gross revenue of loan pools to total gross revenue | 22.17 | % | 21.42 | % | 24.34 | % | 21.61 | % | 17.58 | % | ||||||
Allowance for loan losses to total loans | 1.19 | % | 1.29 | % | 1.30 | % | 1.05 | % | 0.94 | % | ||||||
Non-performing loans to total loans | 0.73 | % | 0.83 | % | 0.86 | % | 1.08 | % | 0.95 | % | ||||||
Net loans charged off to average loans | 0.25 | % | 0.08 | % | 0.15 | % | 0.42 | % | 0.65 | % | ||||||
December 31 (in thousands) | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||
Selected Balance Sheet Data | ||||||||||||||||
Total assets | $ | 650,564 | 623,306 | 537,026 | 545,160 | 513,814 | ||||||||||
Total loans net of unearned discount | 398,854 | 377,017 | 306,024 | 322,681 | 312,081 | |||||||||||
Total loan pool participations | 105,502 | 89,059 | 82,341 | 110,393 | 74,755 | |||||||||||
Allowance for loan losses | 4,745 | 4,857 | 3,967 | 3,381 | 2,933 | |||||||||||
Total deposits | 475,102 | 453,125 | 395,546 | 378,645 | 370,144 | |||||||||||
Total shareholders’ equity | 56,930 | 56,144 | 55,698 | 50,827 | 49,295 |
1 PAGE
MESSAGETOSHAREHOLDERS
The past year has provento be a thrilling and successful time for MidWestOne Financial Group’s shareholders, customers and employees. 2004 can be looked upon with pride when reflecting on our accomplishments and success.
It is difficult to believe, but 2004 marked the tenth anniversary of MidWestOne becoming a publicly traded company. Trading common stock on the Nasdaq National Market System has provided the capital necessary for our extensive expansion over the past decade. Through several transactions, we’ve grown to become one of the region’s largest holding companies with assets exceeding $650 million. And through it all, we’ve maintained the principles on which MidWestOne was built.
To preserve our competitive edge and continue profitable relationships with our shareholders and customers, MidWestOne Financial Group must continue to offer a wide range of products and services. The acquisition in July 2004 of Koogler Company of Iowa - an independent, full-service brokerage firm located in Pella - will allow us to further accommodate the changing financial needs of our customers. MidWestOne Investment Services intends to expand into other communities that are home to our member banks.
Technology has also become increasingly important to the financial services industry in recent years. MidWestOne carefully researches new technologies and utilizes those that will best serve our customers. 2004 marked the introduction ofOnline Cash Manager and imaged statements.Online Cash Manager, our Internet banking system designed specifically for business clients, is one of the most advanced in the region.
In 2004, our stock price closed at $20.96 per share, a 10% increase from $18.99 in 2003. Our 2004 net income was $5,829,000. Basic earnings per share stayed constant at $1.54. Quarterly dividends paid to shareholders were 17 cents per share, reflecting a 6% increase over last year.
Two directors, William D. Hassel and John W. N. Steddom, retired from our board in 2004. Mr. Hassel, former president of MidWestOne Bank in Burlington, Iowa, retired on March 31. Mr. Steddom’s retirement was effective December 31. With 30 years service on our board, John’s knowledge, judgment and insight truly helped guide our company.
In a world that is constantly changing, it is important to keep our focus where it belongs. Although our sights are set firmly on the future, those who contribute to our success... our customers, employees and the local communities we serve... will always remain the driving force of our business.
Charles S. Howard | ||
Chairman, President & CEO | ||
Thanks for your continued support. | ||
David A. Meinert | ||
Executive Vice President & CFO |
[PHOTO APPEARS HERE]
ABOUT ELAINE
“My husband and I bought an auto dealership over 30 years ago with a loan from MidWestOne Bank & Trust. Although I recently sold the dealership, I still bank with MidWestOne. They’ve always made me feel more like a friend than a customer.”
PAGE 2
Keeping Our Focus On … OUR CUSTOMERS!
[PHOTO APPEARS HERE]
Tom and Cindy Drost
Customers are more than just account numbers. They’re all people... with mortgages, car payments, kids in college... and they deserve the best. “Our focus has always been - and always will be - on community banking and customer service,” says Charles Howard, MidWestOne Financial Group’s CEO. “Knowing our customers is the key to serving all their financial needs.”
Tom and Cindy Drost, long-time customers of MidWestOne Bank & Trust, own a farm outside Oskaloosa. Two children - Jackson, 21 and Jordan, 13 - and a growing farm operation keep the Drosts busy. With their non-stop life styles, they enjoy the convenience MidWestOne Bank & Trust offers.
“All of our accounts are with MidWestOne Bank & Trust... our mortgage, checking, savings, student loans for Jackson... everything. I’ve never banked anywhere else,” remembers Tom. “We’ve even bought stock in the company as an investment for the kids.”
Confidence like that is a two-way street. “Several years ago a farm unexpectedly came up for sale, and thanks to my relationship with MidWestOne, I was able to purchase that land,” Tom reminisces. “The most unplanned things can be the biggest blessing. It’s good to know, when those things happen, MidWestOne will be there to back us up.”
“I like the personal service and accessibility at MidWestOne.” remarks Cindy. “Although Internet banking is great, I prefer going into the bank and talking with everyone. They’re all friends! It’s nice to walk into a place and hear your name.”
The idea of friendship was a constant theme with the Drosts. They look at our staff not just as their bankers, but their friends. “Those are the sort of relationships that we like to cultivate with our customers,” says MidWestOne Bank & Trust executive vice president, Steve Hicks. “Our doors are always open and our customers know that.”
As the Drost family and their farming operation have grown, so has MidWestOne. “Through MidWestOne’s growth over the years, the values we admire have remained constant,” reflects Tom. As MidWestOne looks to the future, we will never lose sight of what we value most... our customers.
3 PAGE
KEEPING OUR FOCUS ON …
OUR BUSINESS PARTNERS!
[PHOTO APPEARS HERE]
Ron Arkema (left) and Joe Canfield (right), co-owners of Van Gorp, point out the support system for a drum pully to Mike Patrick (center), president of Pella State Bank.
The sparks are flying at Van Gorp Corporation. But that’s not a bad thing - it just signifies that business is good.
Van Gorp, a Pella-based pulley manufacturer, has been a fixture in the community for nearly fifty years. Founded in 1957, the company has expanded to become a leader in the industry. From a one-man shop to a state-of-the-art operation, Van Gorp now employs over fifty people. Joe Canfield and Ron Arkema, two long-time Van Gorp employees, purchased the company in October of 2002.
“When we first discussed the acquisition, it seemed like a really daunting task,” remembers Arkema. “I don’t think many people realize that only about ten percent of purchases like ours move from the letter of intent through to completion of the deal. It wouldn’t have been possible for us, either, without the help from Mike Patrick and Wayne Martens at Pella State Bank.”
“Every hurdle that presented itself, we tackled,” says Canfield. “Purchasing Van Gorp was a much bigger deal than Ron or I had ever anticipated. Since we put everything on the line for this company, we wanted bankers with the same dedication. It’s refreshing to find a financial institution that can fund a multi-million dollar project while maintaining personal service.”
Since those early days, the partnership between Van Gorp and Pella State Bank has developed into a multi-relational one. “Our line of credit, checking accounts... all of our accounts... are handled through Pella State Bank,” Canfield states. “AndOnlineCash Manager is incredible. We have the flexibility to manage our cash daily... the up-to-the-minute information helps me keep our books accurate without ever having to step away from my desk.”
Arkema’s opinion of Pella State Bank and MidWestOne is clear. “We’re really fortunate to have such a great group to work with - people who were willing to work with two guys who knew a lot about pulleys,” jokes Arkema. “So often, banks have a selfish outlook, kind of a what’s-in-my-interest view, but Pella State Bank was more interested in helping us make this factory thrive. Their commitment to our success was unwavering... that’s service you don’t often see.”
PAGE 4
KEEPING OUR FOCUS ON …
OUR EMPLOYEES!
[PHOTO APPEARS HERE]
MidWestOne Bank senior vice president,Michele Schnicker(left), showsJerry Krause(right), president of MidWestOne Bank, plans for an upcoming project.
1Scott Zaiser(right), owner of Zaiser Landscaping in Burlington, Iowa, discusses future plans for his business withJerry Krause(left).
[PHOTO APPEARS HERE]
2Jerry works closely with his management team to ensure the bank runs efficiently while the customers remain their primary focus.
A company cannot survive without its employees. MidWestOne is no exception to this rule. Every one of our employees is a vital member of our team and one of our most valuable assets.
MidWestOne Financial Group and each of our subsidiaries believe in developing skills and fine-tuning strengths in every employee. Listening, training and coaching are all crucial motivators that show our employees we value them. “It is each employee that makes our company what it is. Cultivating their skills is a proven investment,” says Charles Howard, CEO. “It is a regular occurrence that when a position opens, we are able to fill it with one of our own.”
Jerry Krause is a perfect example of an employee advancing within our company. With over thirty years of experience and a degree from the Graduate School of Banking in Madison, Wisconsin, Jerry has performed a wide variety of duties in banking and bank management. In June of 1996, he joined CentralValley Bank as senior vice president and progressed to executive vice president. Jerry’s career with the company further advanced in 2004 when he was elected president of MidWestOne Bank in Burlington.
“Since the beginning of Jerry’s career with Central Valley Bank, it was apparent that he was destined for bigger and better things. Fortunately for all of us, MidWestOne Financial Group is a company with nearly unlimited potential for advancement,” says Tom Campbell, president of Central Valley Bank.
“Jerry has been an excellent addition to our bank,” relates Michele Schnicker, a member of MidWestOne Bank’s management team. “He is a man who follows his heart and leads with integrity, encouraging all of us to do the same.”
“Being a member of Central Valley Bank’s management team was one of my best banking experiences and helped prepare me for career advancement,” says Jerry. “I always tell my employees that we’re fortunate to work in an organization structured the way we are. If anyone makes a suggestion or has an idea, I guarantee that it will be heard all the way up to the chairman of the board. That sort of accessibility is unique in an organization of this size.”
Jerry reminisces, “As my career with this company has progressed, I have grown immensely. During my tenure with MidWestOne, my experiences have been incredible and my goal is to offer the same opportunity for growth to every employee.”
5 PAGE
Keeping Our Focus On … OUR COMMUNITIES!
[PHOTO APPEARS HERE]
Chris Baumert of Central Valley Bank, coordinator of the Angel Tree Program.
No matter the season...spring, summer, fall or winter... the employees of MidWestOne Financial Group and its subsidiaries keep busy helping others. From food drives to fund raisers, Boy and Girl Scouts to Relay for Life, we are committed to our hometown communities.
“We take pride in the fact that each location employs people who volunteer for civic organizations and serve on the boards of local charitable groups,” says Charles Howard, CEO. “All our member banks adopt various community projects in which several employees, if not all of them, participate.”
Each year, nearly one hundred charities and civic groups benefit from the generosity and assistance of MidWestOne. A shining example is the Angel Tree at Central Valley Bank in Sigourney. For nearly twenty years, employees of Central Valley Bank have decorated a tree in the lobby of the bank. But the gifts that spill from the bottom aren’t for them. Those gifts are destined for needy recipients in the Sigourney area.
“The holidays offer us the opportunity to reflect on our own good fortune and spread some of that fortune around,” beams Chris Baumert, coordinator of the Angel Tree program.
“Every year we gather the names of about fifty children and thirty elderly residents and list their age or what they need on an angel ornament. Then those angels decorate our tree.” However, they don’t stay on the tree for long. Employees and community members choose an angel, purchase a gift and then bring it in to be wrapped. “We put up the tree right after Thanksgiving, but people are asking weeks ahead of time for their angels. They are too excited to wait.”
“Many of our angels are for kids who wouldn’t get anything for the holidays if it weren’t for the gifts under our tree,” says Baumert. The Angel Tree, just like the holiday projects put on by other members of MidWestOne Financial Group, ensures a lot of smiling faces and warm hearts in the chilly holiday season.
“The idea that Central Valley Bank can pull together Sigourney’s residents and brighten their holidays makes me want to put up that tree every day.”
You can witness the evidence of MidWestOne’s corporate citizenship all year long. “We are proud of each community we serve,” Howard relates. “Giving back to the communities that do so much for us is one of the timeless values on which our company is built.”
PAGE 6
CONSOLIDATED BALANCE SHEETS
December 31 (in thousands) | 2004 | 2003 | |||||
ASSETS | |||||||
Cash and due from banks | $ | 14,117 | 13,683 | ||||
Interest-bearing deposits in banks | 368 | 857 | |||||
Federal funds sold | 930 | — | |||||
Cash and cash equivalents | 15,415 | 14,540 | |||||
Investment securities: | |||||||
Available for sale | 87,795 | 100,848 | |||||
Held to maturity (fair value of $9,486 in 2004 and $11,161 in 2003) | 9,190 | 10,596 | |||||
Loans, net of unearned discount | 398,854 | 377,017 | |||||
Allowance for loan losses | (4,745 | ) | (4,857 | ) | |||
Net loans | 394,109 | 372,160 | |||||
Loan pool participations | 105,502 | 89,059 | |||||
Premises and equipment, net | 10,492 | 10,436 | |||||
Accrued interest receivable | 4,573 | 5,107 | |||||
Goodwill | 13,156 | 12,976 | |||||
Other intangible assets | 1,318 | 1,244 | |||||
Other assets | 9,014 | 6,340 | |||||
Total assets | $ | 650,564 | 623,306 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Deposits: | |||||||
Demand | $ | 46,016 | 40,579 | ||||
NOW and Super NOW | 67,993 | 57,795 | |||||
Savings | 125,247 | 120,274 | |||||
Certificates of deposit | 235,846 | 234,477 | |||||
Total deposits | 475,102 | 453,125 | |||||
Federal funds purchased | 2,090 | 10,450 | |||||
Federal Home Loan Bank advances | 91,874 | 78,944 | |||||
Notes payable | 9,700 | 9,000 | |||||
Long-term debt | 10,310 | 10,310 | |||||
Other liabilities | 4,558 | 5,333 | |||||
Total liabilities | 593,634 | 567,162 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $5 par value; authorized 20,000,000 shares; issued 4,912,849 as of December 31, 2004 and December 31, 2003 | 24,564 | 24,564 | |||||
Capital surplus | 12,956 | 12,976 | |||||
Treasury stock at cost, 1,161,463 and 1,130,141 shares as of December 31, 2004 and December 31, 2003,respectively | (15,640 | ) | (14,589 | ) | |||
Retained earnings | 35,085 | 31,832 | |||||
Accumulated other comprehensive income (loss) | (35 | ) | 1,361 | ||||
Total shareholders’ equity | 56,930 | 56,144 | |||||
Total liabilities and shareholders’ equity | $ | 650,564 | 623,306 | ||||
7 PAGE
CONSOLIDATED STATEMENTS OF INCOME
Year Ended December 31 (in thousands, except per share amounts) | 2004 | 2003 | 2002 | ||||
INTEREST INCOME | |||||||
Interest and fees on loans | $ | 23,885 | 23,894 | 22,845 | |||
Interest income and discount on loan pool participations | 9,395 | 8,985 | 10,058 | ||||
Interest on bank deposits | 4 | 10 | 22 | ||||
Interest on federal funds sold | 50 | 27 | 115 | ||||
Interest on investment securities: | |||||||
Available for sale | 3,589 | 3,916 | 3,376 | ||||
Held to maturity | 449 | 746 | 1,124 | ||||
Total interest income | 37,372 | 37,578 | 37,540 | ||||
INTEREST EXPENSE | |||||||
Interest on deposits: | |||||||
NOW and Super NOW | 239 | 181 | 270 | ||||
Savings | 1,328 | 1,334 | 1,876 | ||||
Certificates of deposit | 6,770 | 8,527 | 9,422 | ||||
Interest on federal funds purchased | 82 | 63 | 21 | ||||
Interest on Federal Home Loan Bank advances | 3,975 | 3,880 | 4,872 | ||||
Interest on notes payable | 428 | 262 | 270 | ||||
Interest on long-term debt | 548 | 520 | 296 | ||||
Total interest expense | 13,370 | 14,767 | 17,027 | ||||
Net interest income | 24,002 | 22,811 | 20,513 | ||||
Provision for loan losses | 858 | 589 | 1,070 | ||||
Net interest income after provision for loan losses | 23,144 | 22,222 | 19,443 | ||||
OTHER INCOME | |||||||
Service charges | 2,618 | 2,341 | 2,185 | ||||
Data processing income | 209 | 242 | 227 | ||||
Mortgage origination fees | 455 | 721 | 555 | ||||
Other operating income | 768 | 879 | 820 | ||||
Gains on sale of available for sale securities | 226 | 175 | — | ||||
Total noninterest income | 4,276 | 4,358 | 3,787 | ||||
OTHER EXPENSE | |||||||
Salaries and employee benefits expense | 10,539 | 9,668 | 7,612 | ||||
Net occupancy expense | 3,222 | 2,874 | 2,339 | ||||
Professional fees | 854 | 706 | 658 | ||||
Other intangible asset amortization | 308 | 344 | 290 | ||||
Other operating expense | 3,590 | 3,795 | 3,527 | ||||
Total noninterest expense | 18,513 | 17,387 | 14,426 | ||||
Income before income tax expense | 8,907 | 9,193 | 8,804 | ||||
Income tax expense | 3,078 | 3,267 | 3,015 | ||||
Net income | $ | 5,829 | 5,926 | 5,789 | |||
Net income per share - basic | $ | 1.54 | 1.54 | 1.49 | |||
Net income per share - diluted | $ | 1.50 | 1.50 | 1.46 | |||
PAGE 8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except share amounts) | Common Stock | Capital Surplus | Treasury Stock | Retained Earnings | Accumulated Income (Loss) | Total | ||||||||||||
Balance at December 31, 2001 | $ | 24,564 | 13,033 | (12,595 | ) | 25,082 | 743 | 50,827 | ||||||||||
Comprehensive income: | ||||||||||||||||||
Net income | — | — | — | 5,789 | — | 5,789 | ||||||||||||
Unrealized gains arising during the year on securities available for sale | — | — | — | — | 1,037 | 1,037 | ||||||||||||
Total comprehensive income | — | — | — | 5,789 | 1,037 | 6,826 | ||||||||||||
Dividends paid ($.64 per share) | — | — | — | (2,496 | ) | — | (2,496 | ) | ||||||||||
Stock options exercised (90,014 shares) | — | (172 | ) | 1,091 | — | — | 919 | |||||||||||
Treasury stock purchased (32,100 shares) | — | — | (459 | ) | — | — | (459 | ) | ||||||||||
ESOP shares allocated | — | 81 | — | — | — | 81 | ||||||||||||
Balance at December 31, 2002 | 24,564 | 12,942 | (11,963 | ) | 28,375 | 1,780 | 55,698 | |||||||||||
Comprehensive income: | ||||||||||||||||||
Net income | — | — | — | 5,926 | — | 5,926 | ||||||||||||
Unrealized losses arising during the year on securities available for sale | — | — | — | — | (310 | ) | (310 | ) | ||||||||||
Less realized gains on securities available for sale, net of tax | — | — | — | — | (109 | ) | (109 | ) | ||||||||||
Total comprehensive income | — | — | — | 5,926 | (419 | ) | 5,507 | |||||||||||
Dividends paid ($.64 per share) | — | — | — | (2,469 | ) | — | (2,469 | ) | ||||||||||
Stock options exercised (27,800 shares) | — | (49 | ) | 350 | — | — | 301 | |||||||||||
Treasury stock purchased (175,600 shares) | — | — | (2,976 | ) | — | — | (2,976 | ) | ||||||||||
ESOP shares allocated | — | 83 | — | — | — | 83 | ||||||||||||
Balance at December 31, 2003 | 24,564 | 12,976 | (14,589 | ) | 31,832 | 1,361 | 56,144 | |||||||||||
Comprehensive income: | ||||||||||||||||||
Net income | — | — | — | 5,829 | — | 5,829 | ||||||||||||
Unrealized losses arising during the year on securities available for sale | — | — | — | — | (1,256 | ) | (1,256 | ) | ||||||||||
Less realized gains on securities available for sale, net of tax | — | — | — | — | (140 | ) | (140 | ) | ||||||||||
Total comprehensive income | — | — | — | 5,829 | (1,396 | ) | 4,433 | |||||||||||
Dividends paid ($.68 per share) | — | — | — | (2,576 | ) | — | (2,576 | ) | ||||||||||
Treasury stock reissued for the purchase of intangible assets (6,601 shares) | — | 27 | 88 | — | — | 115 | ||||||||||||
Stock options exercised (77,456 shares) | — | (129 | ) | 1,005 | — | — | 876 | |||||||||||
Treasury stock purchased (115,379 shares) | — | — | (2,144 | ) | — | — | (2,144 | ) | ||||||||||
ESOP shares allocated | — | 82 | — | — | — | 82 | ||||||||||||
Balance at December 31, 2004 | $ | 24,564 | 12,956 | (15,640 | ) | 35,085 | (35 | ) | 56,930 | |||||||||
9 PAGE
COMPANYINFORMATION AUDITORS’REPORT
Independent Auditors’ Report
To the Board of Directors of MidWestOne Financial Group, Inc.:
We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of MidWestOne Financial Group, Inc. as of December 31, 2004 and 2003, 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, 2004 (not presented herein); and in our report dated February 18, 2005, 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 7 through 9 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 18, 2005 |
MidWestOne Financial Group, Inc. Common Stock
trades on the Nasdaq National Market and the quotations are furnished by the Nasdaq system. There were 420 shareholders of record on December 31, 2004 and an estimated 1,100 additional beneficial holders whose stock was held in street name by brokerage houses.
Nasdaq SymbolOSKY
Corporate Headquarters
222 1st Avenue East
P.O. Box 1104
Oskaloosa, IA 52577
(641) 673-8448
www.midwestonefinancial.com
Annual Shareholders’ Meeting
April 29, 2005, 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
The following table sets forth the quarterly high and low closing price per share for the Company’s stock during 2004 and 2003.
‘04 Quarter Ended | High | Low | ||||
March 31 | $ | 19.10 | $ | 18.25 | ||
June 30 | 18.95 | 17.65 | ||||
September 30 | 18.36 | 17.20 | ||||
December 31 | 20.96 | 17.68 | ||||
‘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 |
As of December 31, 2004, the Company had 3,751,386 shares of Common Stock outstanding. On December 31, 2003, there were 3,782,708 shares outstanding. The Company has declared per share cash dividends with respect to its Common Stock as follows:
Quarter | 1st | 2nd | 3rd | 4th | ||||||||
2004 | $ | .17 | $ | .17 | $ | .17 | $ | .17 | ||||
2003 | $ | .16 | $ | .16 | $ | .16 | $ | .16 |
Form 10-K
Copies of the MidWestOne Financial Group, Inc. Annual Report to the Securities and Exchange Commission Form 10-K will be mailed when available without charge to shareholders upon written request to Karen K. Binns, Secretary/Treasurer, at the corporate headquarters. It is also available on the Securities and Exchange Commission’s Internet web site at: www.sec.gov/cgi-bin/srch-edgar.
PAGE 10
OUR BOARD OF DIRECTORS
Richard R. Donohue
Managing Partner, Theobald
Donohue & Thompson, P.C.
Charles S. Howard
Chairman, President & CEO
David A. Meinert
Executive Vice President & CFO
John P. Pothoven
Chairman, President & CEO
MidWestOneBank & Trust
James G.Wake
General Manager,
Smith-Wake Ag Group
Michael R.Welter
General Contractor
Edward C.Whitham
Financial Management
Accounting, Inc.
OUR LOCATIONS
MidWestOneBank & Trust
www.midwestonebanktrust.com
Oskaloosa • Belle Plaine • Hudson
North English • Waterloo
Central Valley Bank
www.centralvalleybank.com
Ottumwa • Fairfield • Sigourney
Pella State Bank
www.pellabank.com
Pella
MidWestOneBank
www.midwestonebank.com
Burlington • Fort Madison • Wapello
MidWestOne Investment Services, Inc.
Pella • Burlington • Oskaloosa • Sigourney
OUR CORPORATE OFFICERS
Charles S. Howard
Chairman, President & CEO
David A. Meinert
Executive Vice President & CFO
Roger A. Parlett
Senior Vice President,
Data Processing
Keith C. Comfort
Vice President Finance
& Controller
Barbara A. Finney
Internet Banking Manager/
Operations Officer
Marcie L. Jones
Human Resources Director
Karen K. Binns
Secretary/Treasurer
Bryce C. Abbas
Auditor
Jeffrey D. Richards
Loan Review Officer
Jeffrey L. Rhoads
Financial Reporting Officer
T. Wayne Little
EDP Officer
Sara L. Hierstein
Marketing Director
[MAP APPEARS HERE]