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FIRST FEDERAL OF STORM LAKE AND BROOKINGS FEDERAL OF SOUTH DAKOTA TO MERGE

 BROOKINGS, S.D., Oct. 25 /PRNewswire/ -- James S. Haahr, president and chief executive officer of First Midwest Financial, Inc., Storm Lake, Iowa (NASDAQ: CASH), the holding company of First Federal Savings Bank of the Midwest, Storm Lake, and Steven P. Myers, president and chief executive officer of Community Financial Systems, Inc., parent company of Brookings Federal Bank, a federal savings bank, Brookings, announced today that the two companies have executed a definitive agreement pursuant to which First Midwest Financial, Inc. will acquire all of the outstanding shares of common stock, including shares subject to options, of Community Financial Systems, Inc., for an aggregate consideration of approximately $10.1 million, or approximately $31 per share, subject to increase based on the net earnings of Community during the last calendar quarter of 1993 and during the period commencing March 1, 1994 until closing, less certain expenses and dividends declared. Community Financial Systems, Inc. has 305,226 shares outstanding, and 28,287 shares subject to options.
 Community Financial Systems, Inc. has also granted First Midwest Financial, Inc. an option to purchase 10 percent of its common stock at $25 per share subject to certain terms and conditions.
 The acquisition, which will be accounted for as a purchase, is subject to approval by the shareholders of Community Financial Systems, Inc. and to the approval of the Office of Thrift Supervision. Both First Federal and Brookings Federal exceed all current and fully phased- in capital requirements, and First Federal, as the institution resulting from the merger, will continue to exceed all capital requirements after completion of the acquisition. Brookings Federal will continue to operate as a division of First Federal.
 First Midwest Financial, Inc. is a unitary savings bank holding company. At June 30, 1993, its predecessor institution, First Federal, had assets of $150.7 million and deposits of $130.3 million. First Midwest Financial, Inc. serves the northwest Iowa market through the seven offices of its wholly owned subsidiary First Federal.
 Community Financial Systems, Inc., headquartered in Brookings, serves the Brookings market through the two offices of its wholly owned subsidiary Brookings Federal. At Sept. 30, 1993, CFS, Inc. had assets of approximately $76.5 million, and deposits of approximately $62.5 million, and stockholders' equity of approximately $8.3 million.
 Commenting on the acquisition, Haahr stated, "We at First Midwest are very pleased to announce this transaction, which will compliment our existing markets with a well-run, well-known institution, Brookings Federal. We are delighted that Steve Myers has agreed to remain as president of Brookings Federal, which will operate as a division of First Federal."
 Myers added, "With the additional financial strengths resulting from the merger, Brookings Federal will be well positioned to serve the future financial needs of the Brookings area."
 -0- 10/25/93
 /CONTACT: James S. Haahr, chairman of the board, president and CEO of First Midwest Financial, 712-732-4117; or Steven P. Myers, president and CEO of Community Federal Systems, 605-692-2314/
 (CASH)


CO: First Midwest Financial; Community Financial Systems ST: Iowa, South Dakota IN: FIN SU: TNM

CP-DB -- MN021 -- 6603 10/25/93 18:27 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
Words:515
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