Exhibit 99.1
[First Midwest Financial, Inc. Letterhead]
FOR IMMEDIATE RELEASE
Contact: Investor Relations
Telephone: 712.732.4117
FIRST MIDWEST FINANCIAL, INC. REPORTS THIRD QUARTER EARNINGS
(Storm Lake, Iowa - July 18, 2003) First Midwest reports net income of $892,000,
or $.36 per diluted share, for the third quarter ended June 30, 2003. This
reflects a 68.9 percent increase compared to the same period last year when net
income was $528,000 or $.21 per diluted share. Net income for the first nine
months of the 2003 fiscal year totaled $2,652,000 or $1.06 per diluted share
compared to $1,413,000 or $.57 per diluted share during the same period last
year.
Net interest income for the first nine months of the 2003 fiscal year increased
$2,126,000, or 21.5 percent, compared to the same period last year. The increase
reflects the Company's 33 percent growth in checking and money market accounts
during the current fiscal year and a higher percentage of originated commercial
loans. During the first nine months of the 2003 fiscal year, total deposit
balances grew $77.1 million to $432.9 million.
The Company opened its fourth Des Moines bank in November 2002. In addition, the
Company is expanding and centralizing its mortgage loan operations. Startup
costs associated with this expansion and the new Des Moines office contributed
to an increase in noninterest expense for the first nine months of the current
fiscal year compared to the same period last year.
Shareholders of record on June 13, 2003, received a quarterly cash dividend of
13 cents per share. This dividend was paid on July 1, 2003. The company has paid
regular quarterly cash dividends since the first dividend paid on January 5,
1995.
At June 30, 2003, assets of First Midwest totaled $775 million, up 27.5 percent
or $167 million from 2002 fiscal year end. Shareholders' equity totaled $44.5
million, or $17.83 per common share outstanding. First Midwest is the holding
company for First Federal Savings Bank of the Midwest and Security State Bank.
All three companies had capital ratios well in excess of regulatory requirements
at June 30, 2003.
During this quarter, First Midwest shares traded between $16.21 and $19.25. The
stock of First Midwest Financial, Inc. trades on the Nasdaq National Market
under the symbol "CASH".
Corporate Profile: First Midwest Financial, Inc. is the holding company for
First Federal Savings Bank of the Midwest, headquartered in Storm Lake, Iowa,
and for Security State Bank, headquartered in Stuart, Iowa. First Federal
Savings Bank operates as a thrift with four divisions: First Federal Storm Lake,
Brookings Federal Bank, Iowa Savings Bank, and First Federal Sioux Falls.
Security State Bank operates as a state-chartered commercial bank. Sixteen
offices support customers throughout northwest and central Iowa, and in
Brookings and Sioux Falls, South Dakota.
Financial Highlights
Consolidated Statement of Financial Condition
(In Thousands)
Assets June 30, 2003 Sept. 30, 2002
Cash and Cash Equivalents $ 14,755 $ 7,376
Investments & Mortgage-backed Securities 366,904 218,247
Loans, net 347,163 343,192
Other Assets 46,054 38,833
-------- --------
Total Assets $774,876 $607,648
======== ========
Liabilities
Deposits $432,928 $355,779
Borrowed Money 295,770 205,267
Other Liabilities 1,708 2,014
-------- --------
Total Liabilities $730,406 $563,060
-------- --------
Shareholders' Equity $ 44,470 $ 44,588
-------- --------
Total Liabilities and Shareholders' Equity $774,876 $607,648
======== ========
Consolidated Statements of Income
For the 3 Months Ended For the 9 Months Ended
June 30: June 30:
(In Thousands except per share data) 2003 2002 2003 2002
Interest Income $ 8,773 $ 8,905 $26,728 $26,529
Interest Expense 4,842 5,294 14,724 16,651
------- ------- ------- -------
Net Interest Income 3,931 3,611 12,004 9,878
Provision for Loan Losses 67 280 350 715
------- ------- ------- -------
Net Interest Income After
Provision for Loan Losses 3,864 3,331 11,654 9,163
Other Income/(Loss) 874 581 2,779 2,000
Other Expenses 3,399 3,184 10,479 9,146
------- ------- ------- -------
Income Before Income Tax 1,339 728 3,954 2,017
Income Tax Expense 447 200 1,302 604
------- ------- ------- -------
Net Income $ 892 $ 528 $ 2,652 $ 1,413
======= ======= ======= =======
Earnings Per Common Share (Basic): $ 0.36 $ 0.22 $ 1.07 $ 0.58
Earnings Per Common Share (Diluted): $ 0.36 $ 0.21 $ 1.06 $ 0.57
Selected Financial Information
For the 9 Months Ended June 30, 2003 2002
Return on Average Assets 0.50% 0.34%
Return on Average Equity 7.84% 4.36%
Average Shares Outstanding for Diluted Earnings per Share 2,500,175 2,485,063
At Period Ended: June 30, 2003 Sept. 30, 2002
Equity to Total Assets 5.74% 7.34%
Book Value per Common Share Outstanding $ 17.83 $ 18.06
Tangible Book Value per Common Share Outstanding $ 16.47 $ 16.68
Common Shares Outstanding 2,493,949 2,468,804
Non-Performing Assets to Total Assets 0.39% 0.63%
First Midwest Financial, Inc. \ First Federal Building \ Fifth at Erie \
P.O. Box 1307 \ Storm Lake, Iowa 50588