SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 17, 1998
FIRST MIDWEST FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22140 42-1406262
(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
Fifth at Erie, Storm Lake, Iowa 50588
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (712) 732-4117
N/A
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On April 17, 1998, the Registrant issued the attached press release
announcing second quarter earnings, which included the effect of a $1.5
million charge to provision for loan losses related to mismanagement and
possible fraud by a former loan officer.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99 Additional Exhibits
Press release, dated April 17, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.
FIRST MIDWEST FINANCIAL, INC.
Date: April 17, 1998 By: /s/ Donald J. Winchell
Donald J. Winchell, Vice President,
Treasurer, Chief Financial Officer and
Principal Accounting Officer
FOR IMMEDIATE RELEASE
Contact: Investor Relations Department
Telephone: 712-732-4117
FIRST MIDWEST FINANCIAL, INC. ANNOUNCES SECOND QUARTER EARNINGS:
(Storm Lake, Iowa - April 17, 1998) First Midwest is
pleased to announce net income of $987,000, or $.36 per share,
for the 1998 fiscal year second quarter ended March 31, 1998,
prior to taking a one-time charge to its provision for loan
losses in the amount of $1.5 million. The one-time charge
relates to mismanagement and possible fraud by one loan officer
who is no longer with the Company and resulted in a net loss for
the second quarter of $513,000, or $.19 per share.
The Company has contacted the proper authorities and is in
the process of investigating the extent of the mismanagement and
possible fraud, as well as the Company's avenues of recourse.
James S. Haahr, Chairman of the Board, President and CEO of First
Midwest, stated that "while the investigation has not been
completed, the matter appears to be an isolated incident. The
Company remains very strong financially and customer deposits
were not affected and continue to be federally insured."
Second quarter earnings of $.36 per share, excluding the charge,
represent a per share increase of over 24 percent from second
quarter last year when earnings were $850,000, or $.29 per share.
Net income for the first six months of the 1998 fiscal year
was $1,976,000, or $.71 per share, prior to the $1.5 million one-
time charge to provision for loan losses, and $476,000, or $.17
per share, after the charge. This compares to $1,803,000, or
$.62 per share, for the same period last year.
Stockholders of record on March 16, 1998, received a quarterly
cash dividend of $.12 per share, a 33% increase from the $.09 per
share paid quarterly during the previous year. This quarterly cash
dividend was paid on April 1, 1998. The Company has increased
dividends each year since its first cash dividend on January 5,
1995.
At March 31, 1998, assets of First Midwest totaled $405.4
million, compared to $404.6 million at the beginning of the fiscal
year. Stockholders' equity totaled $42.1 million, or $15.92 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, 1998.
During this quarter, First Midwest shares traded between
$21.88 and $23.25. 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 and Security State Bank. First
Federal Savings Bank has its main bank office in Storm Lake, Iowa,
and six branch offices in a four-county area of Northwest Iowa. It
also includes two Brookings Federal Bank Division offices in
Brookings, South Dakota, and two Iowa Savings Bank Division offices
in Des Moines and West Des Moines, Iowa. Security State Bank, with
offices in Stuart, Casey and Menlo, Iowa, is a separate holding of
First Midwest and operates as a commercial bank chartered by the
State of Iowa.
