Exhibit 99.1
[First Midwest Financial, Inc. Letterhead]
FOR IMMEDIATE RELEASE
Contact: Investor Relations
Telephone: 712.732.4117
FIRST MIDWEST FINANCIAL, INC. REPORTS FISCAL YEAR EARNINGS
(Storm Lake, Iowa - October 24, 2003) For the fiscal year ended September 30,
2003, First Midwest Financial reports net income of $3,397,000, or $1.36 per
diluted share. This reflects a 57 percent increase compared to earnings during
the previous fiscal year when net income was $2,157,000, or $.87 per diluted
share. Net income for the fourth quarter of fiscal 2003 totaled $745,000 or $.30
per diluted share, compared to net income of $743,000, or $.30 per diluted
share, for the same period last year.
During the 2003 fiscal year, net interest income increased $2,028,000 or 15
percent compared to the previous year. The increase is a result of the Company's
34 percent growth in checking, money market, and savings accounts and an
increase of $53 million, or 44 percent, in originated commercial loans, which
contributed to a wider loan to deposit interest rate spread during the year.
During fiscal 2003, total deposit balances grew $79.8 million, or 22 percent, to
$435.6 million.
The Company opened its fourth Des Moines, Iowa 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 fiscal 2003
compared to fiscal 2002. The Company experienced narrowing interest rate spreads
in the fourth quarter, primarily from increasing prepayment speeds on its
securities portfolio. It expects prepayment speeds to slow again with the recent
increase in interest rates.
In July 2003 First Midwest announced its intention to repurchase up to 150,000
shares or approximately 6 percent of the Company's outstanding shares during the
following twelve
months. Since initiating its first stock repurchase program in 1994, the Company
has invested a total of $14.7 million in the repurchase of approximately
1,013,000 shares.
Shareholders of record on September 15, 2003 received a quarterly cash dividend
of 13 cents per share. This dividend was paid on October 1, 2003. The Company
has paid regular quarterly cash dividends since the first dividend paid on
January 5, 1995.
First Midwest had assets of $772.3 million at September 30, 2003, compared to
$607.6 million at the beginning of the fiscal year. Shareholders' equity totaled
$43.0 million or $17.25 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 September 30, 2003.
First Midwest shares traded between $18.37 and $24.50 during the fiscal fourth
quarter. 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
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Consolidated Statement of Financial Condition
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(In Thousands)
Assets Sept. 30, 2003 Sept. 30, 2002
Cash and Cash Equivalents $ 9,757 $ 7,376
Investments & Mortgage-backed Securities 366,075 218,247
Loans, net 350,818 343,192
Other Assets 45,635 38,833
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Total Assets $772,285 $607,648
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Liabilities
Deposits $435,553 $355,779
Borrowed Money 291,486 205,267
Other Liabilities 2,215 2,014
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Total Liabilities $729,254 $563,060
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Shareholders' Equity $ 43,031 $ 44,588
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Total Liabilities and Shareholders' Equity $772,285 $607,648
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Consolidated Statements of Income
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For the 3 Months For the 12 Months
Ended Sept. 30: Ended Sept.30:
(In Thousands except per share data) 2003 2002 2003 2002
Interest Income $ 8,451 $ 8,904 $35,179 $35,434
Interest Expense 4,727 5,083 19,451 21,734
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Net Interest Income 3,724 3,821 15,728 13,700
Provision for Loan Losses 0 375 350 1,090
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Net Interest Income After Provision for Loan Losses 3,724 3,446 15,378 12,610
Other Income 776 780 3,555 2,781
Other Expenses 3,379 3,121 13,858 12,268
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Income Before Income Tax and Extraordinary Item 1,121 1,105 5,075 3,123
Income Tax Expense 376 362 1,678 966
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Net Income $ 745 $ 743 $ 3,397 $ 2,157
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Earnings Per Common Share (Basic): $ 0.30 $ 0.30 $ 1.37 $ 0.88
Earnings Per Common Share (Diluted): $ 0.30 $ 0.30 $ 1.36 $ 0.87
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Selected Financial Information
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For the 12 Months Ended September 30, 2003 2002
Return on Average Assets 0.47% 0.38%
Return on Average Shareholders' Equity 7.57% 4.95%
Average Shares Outstanding for Diluted Earnings per Share 2,504,945 2,484,536
At Period Ended: Sept. 30, 2003 Sept. 30, 2002
Shareholders' Equity to Total Assets 5.57% 7.34%
Book Value per Common Share Outstanding $17.25 $18.06
Tangible Book Value per Common Share Outstanding $15.89 $16.68
Common Shares Outstanding 2,493,949 2,468,804
Non-Performing Assets to Total Assets 0.28% 0.58%
First Midwest Financial, Inc. \ First Federal Building \ Fifth at Erie \
P.O. Box 1307 \ Storm Lake, Iowa 50588