Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: Investor Relations
Telephone: 712.732.4117
FIRST MIDWEST FINANCIAL, INC. REPORTS FIRST QUARTER EARNINGS
Storm Lake, Iowa - (January 21, 2005) First Midwest Financial, Inc.
(NASDAQNM:CASH) today reported net income of $442,000, or $0.18 per diluted
share, for the first quarter ended December 31, 2004, compared to net income of
$977,000, or $0.39 per diluted share, for the first quarter of the previous
fiscal year. This represents a decrease of $535,000, or 54.8 percent, in
earnings. The decrease in earnings, which was expected, includes a net operating
loss of $370,000, or $0.15 per diluted share, net of income taxes, for the
payment systems division (Meta Payment Systems). The operating loss for Meta
Payment Systems represents a continuation of start-up costs for the division
which was formed in May 2004. Excluding the payment systems start-up costs, net
income would have been $812,000, or $0.32 per diluted share, for the quarter.
During the first quarter of fiscal 2005, Meta Payment Systems launched a number
of programs and began to generate revenue as a result of these programs. First
Midwest has been pleased with its earnings given the payments systems start-up
and the additional impact of costs related to our second Sioux Falls office,
which opened in May 2004, and significant one-time expenditures associated with
the previously announced impending name change.
Net interest income for the quarter increased $219,000, or 4.9 percent, compared
to last year. This was due, in part, to the Company's exceptional growth in both
loans and deposits, which increased $34.7 million or 8.6 percent, and $28.0
million or 6.1 percent, respectively, during the first quarter. This growth plus
an improvement in interest rate spreads contributed to the increase in net
interest income in the first quarter, and resulted in the Company's assets
surpassing $800 million for the first time.
During the quarter the Company moved forward with its planned name change to
Meta Financial Group, and with plans for additional branch offices in both Sioux
Falls, South Dakota and West Des Moines, Iowa. Both new offices are expected to
be open prior to the end of calendar 2005.
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First Midwest is also pleased to report that it had less than $7,600 of net loan
charge offs during the first quarter of fiscal 2005. At December 31, 2004, the
ratio of non-performing assets to total assets was 0.09 percent. At 0.09
percent, the ratio is at the same level as it had been at September 30, 2004 and
represents non-performing assets totaling less than $750,000.
Shareholders of record on December 15, 2004, received a quarterly cash dividend
of 13 cents per share. This dividend was paid on January 3, 2005. The company
has paid regular quarterly cash dividends since the first dividend paid on
January 5, 1995.
At December 31, 2004, assets of First Midwest totaled $808.4 million.
Shareholders' equity totaled $46.3 million, or $18.58 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, 2004.
During the quarter ended December 31, 2004, First Midwest shares traded between
$22.50 and $26.00.
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 five divisions: First Federal Northwest
Iowa, Brookings Federal Bank, Iowa Savings Bank, First Federal Sioux Falls, and
Meta Payment Systems. Security State Bank operates as a state-chartered
commercial bank. Seventeen offices support customers throughout northwest and
central Iowa, and in Brookings and Sioux Falls, South Dakota. During the first
half of calendar 2005, First Midwest Financial, Inc., will change its name to
Meta Financial Group, Inc. (pending shareholder approval). The Company's stock
will continue to trade on the NASDAQ National Market under the symbol "CASH".
For more information see www.fmficash.com.
This release may contain forward-looking statements which reflect management's
expectations regarding future events and speaks only as of the date of this
release. These forward-looking statements involve a number of risks and
uncertainties. A list of factors that could cause actual results to differ
materially from those expressed in, or underlying, the Company's forward-looking
statements is detailed in the Company's filings with the Securities and Exchange
Commission, such as its annual and quarterly reports.
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Financial Highlights
Consolidated Statements of Financial Condition
(In Thousands)
Assets Dec. 31, 2004 Sept. 30, 2004
Cash and Cash Equivalents $ 9,121 $ 8,937
Investments & Mortgage-backed Securities 314,709 322,524
Loans, net 438,699 404,051
Other Assets 45,891 45,287
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Total Assets $ 808,420 $ 780,799
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Liabilities
Deposits $ 489,535 $ 461,581
Borrowed Money 269,383 269,109
Other Liabilities 3,180 2,835
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Total Liabilities $ 762,098 $ 733,525
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Shareholders' Equity $ 46,322 $ 47,274
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Total Liabilities and Shareholders' Equity $ 808,420 $ 780,799
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Consolidated Statements of Income
For the 3 Months
Ended Dec.31:
(In Thousands except per share data) 2004 2003
Interest Income $ 9,785 $ 9,054
Interest Expense 5,098 4,586
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Net Interest Income 4,687 4,468
Provision for Loan Losses 177 101
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Net Interest Income After Provision for Loan Losses 4,510 4,367
Other Income 612 675
Other Expenses 4,486 3,560
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Income Before Income Tax 636 1,482
Income Tax Expense 194 505
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Net Income $ 442 $ 977
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Earnings Per Common Share (Basic): $ 0.18 $ 0.39
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Earnings Per Common Share (Diluted): $ 0.18 $ 0.39
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Selected Financial Information
For the 3 Months Ended December 31, 2004 2003
Return on Average Assets 0.22% 0.50%
Return on Average Equity 3.77% 8.88%
Average Shares Outstanding for Diluted Earnings per Share 2,522,264 2,534,360
At Period Ended: Dec. 31, 2004 Sept. 30, 2004
Equity to Total Assets 5.73% 6.05%
Book Value per Common Share Outstanding $18.58 $18.98
Tangible Book Value per Common Share Outstanding $17.22 $17.61
Common Shares Outstanding 2,492,860 2,491,025
Non-Performing Assets to Total Assets 0.09% 0.09%
First Midwest Financial, Inc. \ First Federal Building \ Fifth at Erie \ P.O.
Box 1307 \ Storm Lake, Iowa 50588