Exhibit 99.1
[First Midwest Financial, Inc. Letterhead]
FOR IMMEDIATE RELEASE
Contact: Investor Relations
Telephone: 712.732.4117
FIRST MIDWEST FINANCIAL, INC. REPORTS SECOND QUARTER
EARNINGS
Storm Lake, Iowa - (April 21, 2004) Today First Midwest Financial, Inc. reported
net income of $1.7 million or $.66 per diluted share, for the 2004 fiscal year
second quarter ended March 31, 2004, compared to net income of $915,000, or $.37
per diluted share, for the same period last year. Net income for the first six
months of the 2004 fiscal year totaled $2.7 million or $1.05 per diluted share
compared to $1.8 million, or $.71 per diluted share, during the same period last
year. The Company results for both the quarter and the six-month period ended
March 31, 2004 included a net gain, after income taxes, of $699,000 on the
January 8, 2004 sale of a branch office in Manson, Iowa. Earnings per diluted
share were increased by $.27 for both the quarter and the six-month period as a
result of this gain. Excluding the net gain on the sale of the branch office,
net income was $976,000 and $2.0 million, respectively, and diluted earnings per
share was $.39 and $.77 per share, respectively, for the quarter and six-month
period ended March 31, 2004. First Midwest was especially pleased to be able to
continue to increase its earnings from operations from the prior quarter, even
with the sale of over $16.1 million in deposits and over $730,000 in loans early
in the quarter.
Net interest income for the first six months of the 2004 fiscal year increased
$810,000, or 10.0 percent, compared to the same period last year. This was due,
in part, to the Company's first six months deposit and loan growth. Excluding
the impact of the Manson branch sale, transaction deposits (checking, money
market, and savings accounts) grew more than 31.5 percent, total deposits grew
more than 14.6 percent, and loans grew more than 6.6 percent. Wider interest
rate spreads also contributed significantly to the increase in net interest
income.
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Previously announced construction on the second Sioux Falls bank location is
progressing ahead of schedule, and the office will be opened for business this
summer. Start up costs associated with this expansion, the opening of the Des
Moines bank main office in late 2002, and the development and centralization of
mortgage loan operations were offset by reductions and other non-interest
expenses for the first six months of fiscal 2004. Wider interest margins more
than offset a decrease in gain on the sale of loans.
First Midwest is also pleased to report that it had only $1,300 of loan charge
offs during the first six months of 2004. At March 31, 2004 the ratio of
non-performing assets to total assets was 0.90 percent. The increase from
September 30, 2003 relates to one $5.0 million loan which became non-performing
during the quarter ended December 31, 2003.
Shareholders of record on March 15, 2004, received a quarterly cash dividend of
13 cents per share. This dividend was paid on April 1, 2004. The company has
paid regular quarterly cash dividends since the first dividend paid on January
5, 1995.
At March 31, 2004, assets of First Midwest totaled $759.7 million. Shareholders'
equity totaled $48.3 million, or $19.32 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 March 31, 2004.
During the quarter ended March 31, 2004, First Midwest shares traded between
$21.40 and $23.90. 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.
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Financial Highlights
Consolidated Statement of Financial Condition
(In Thousands)
Assets March 31, 2004 Sept. 30, 2003
Cash and Cash Equivalents $ 8,295 $ 9,757
Investments & Mortgage-backed Securities 337,796 366,075
Loans, net 372,187 349,692
Other Assets 41,468 46,761
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Total Assets $759,746 $772,285
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Liabilities
Deposits $483,168 $435,553
Borrowed Money 225,386 291,486
Other Liabilities 2,939 2,215
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Total Liabilities $711,493 $729,254
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Shareholders' Equity $ 48,253 $ 43,031
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Total Liabilities and Shareholders' Equity $759,746 $772,285
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Consolidated Statements of Income
For the 3 Months For the 6 Months
Ended March 31: Ended March 31:
(Dollars In Thousands except per share data) 2004 2003 2004 2003
Interest Income $ 8,891 $ 9,002 $17,944 $17,954
Interest Expense 4,476 4,855 9,061 9,882
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Net Interest Income 4,415 4,147 8,883 8,072
Provision for Loan Losses 56 108 157 283
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Net Interest Income After
Provision for Loan Losses 4,359 4,039 8,726 7,789
Other Income 1,691 892 2,365 1,906
Other Expenses 3,465 3,565 7,024 7,080
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Income Before Income Tax 2,585 1,366 4,067 2,615
Income Tax Expense 910 451 1,415 856
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Net Income $ 1,675 $ 915 $ 2,652 $ 1,759
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Earnings Per Common Share (Basic): $ 0.67 $ 0.37 $ 1.07 $ 0.71
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Earnings Per Common Share (Diluted): $ 0.66 $ 0.37 $ 1.05 $ 0.71
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Selected Financial Information
For the 6 Months Ended March 31, 2004 2003
Return on Average Assets 0.68% 0.52%
Return on Average Equity 11.73% 7.82%
Average Shares Outstanding for Diluted Earnings per Share 2,535,708 2,495,633
At Period Ended: March 31, 2004 Sept. 30, 2003
Equity to Total Assets 6.35% 5.57%
Book Value per Common Share Outstanding $ 19.32 $ 17.25
Tangible Book Value per Common Share Outstanding $ 17.96 $ 15.89
Common Shares Outstanding 2,497,197 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