Exhibit 99.1
[First Midwest Financial, Inc. Letterhead]
FOR IMMEDIATE RELEASE
Contact: Investor Relations
Telephone: 712.732.4117
FIRST MIDWEST FINANCIAL, INC. REPORTS FIRST QUARTER EARNINGS
(Storm Lake, Iowa - January 20, 2004) First Midwest reports net income of
$977,000, or $.39 per diluted share, for the first quarter ending December 31,
2003. This compares to earnings during the previous quarter of $745,000 or $.30
per diluted share. First quarter earnings in the 2003 fiscal year were $844,000,
or $.34 per diluted share.
Net interest income for the first quarter rose $543,000, or 13.8 percent,
compared to the same period last year. This was due, in part, to the Company's
first quarter transactional deposit balance (checking, money market, and savings
accounts) growth of more than 14 percent, total deposit growth of more than 5
percent, and loan growth exceeding 5 percent. Wider interest rate spreads also
contributed significantly to the increase in net interest income.
First Midwest announced the construction of a second Sioux Falls bank location
to be opened for business in Summer 2004. Start up costs associated with this
expansion, the recently constructed Des Moines bank main office, and the
development and centralization of mortgage loan operations contributed to an
increase in noninterest expense for the 2004 first quarter. These costs and
lower mortgage loan fees were more than offset by the wider interest margins and
growth.
First Midwest is also pleased to report that it had no charge-offs reported
during the 2004 first quarter. At December 31, 2003 the ratio of non-performing
assets to total assets was 0.90 percent. The increase from September 30 relates
to one $5 million loan which became non-performing during the quarter.
Shareholders of record on December 15, 2003, received a quarterly cash dividend
of 13 cents per share. This dividend was paid on January 2, 2004. The Company
has paid regular quarterly cash dividends since the first dividend paid on
January 5, 1995.
At December 31, 2003, assets of First Midwest totaled $782.7 million.
Shareholders' equity totaled $45.8 million, or $18.27 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 December 31, 2003.
During this quarter, First Midwest shares traded between $21.50 and $23.75. 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. Fifteen
offices support customers throughout northwest and central Iowa, and in
Brookings and Sioux Falls, South Dakota.
Financial Highlights
Consolidated Statements of Financial Condition
(In Thousands)
Assets Dec. 31, 2003 Sept. 30, 2003
Cash and Cash Equivalents $ 14,371 $ 9,757
Investments & Mortgage-backed Securities 356,545 366,075
Loans, net 366,938 349,692
Other Assets 44,818 46,761
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Total Assets $ 782,672 $ 772,285
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Liabilities
Deposits $ 459,111 $ 435,553
Borrowed Money 275,252 291,486
Other Liabilities 2,475 2,215
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Total Liabilities $ 736,838 $ 729,254
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Shareholders' Equity $ 45,834 $ 43,031
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Total Liabilities and Shareholders' Equity $ 782,672 $ 772,285
============== ==============
Consolidated Statements of Income
For the 3 Months
Ended Dec.31:
(In Thousands except per share data) 2003 2002
Interest Income $ 9,054 $ 8,952
Interest Expense 4,586 5,027
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Net Interest Income 4,468 3,925
Provision for Loan Losses 101 175
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Net Interest Income After Provision for Loan Losses 4,367 3,750
Other Income 675 1,013
Other Expenses 3,560 3,515
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Income Before Income Tax 1,482 1,248
Income Tax Expense 505 404
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Net Income $ 977 $ 844
============== ==============
Earnings Per Common Share (Basic): $0.39 $0.34
============== ==============
Earnings Per Common Share (Diluted): $0.39 $0.34
============== ==============
Selected Financial Information
For the 3 Months Ended December 31, 2003 2002
Return on Average Assets 0.50% 0.53%
Return on Average Equity 8.88% 7.53%
Average Shares Outstanding for Diluted Earnings per Share 2,534,360 2,491,606
At Period Ended: Dec. 31, 2003 Sept. 30, 2003
Equity to Total Assets 5.86% 5.57%
Book Value per Common Share Outstanding $18.27 $17.25
Tangible Book Value per Common Share Outstanding $16.92 $15.89
Common Shares Outstanding 2,508,067 2,493,949
Non-Performing Assets to Total Assets 0.90% 0.28%
First Midwest Financial, Inc. \ First Federal Building \ Fifth at Erie \ P.O.
Box 1307 \ Storm Lake, Iowa 50588