UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 2001

             [ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

            For the transaction period from __________ to __________

                         Commission File Number: 0-22140


                          FIRST MIDWEST FINANCIAL, INC.
             (Exact name of registrant as specified in its charter)

              Delaware                                  42-1406262
              --------                                  ----------
    (State or other jurisdiction of           (IRS Employer Identification No.)
    incorporation or organization)

                      Fifth at Erie, Storm Lake, Iowa 50588
                      -------------------------------------
                    (Address of principal executive offices)

                                 (712) 732-4117
                                 --------------
              (Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) filed all reports  required to
be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. Yes [X] No [ ]


Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

          Class:                               Outstanding at February 12, 2002:
Common Stock, $.01 par value                   2,459,912 Common Shares

Transitional Small Business Disclosure Format: Yes [ ]; No [X]





                          FIRST MIDWEST FINANCIAL, INC.

                                    FORM 10-Q

                                      INDEX



                                                                      Page No.
                                                                      --------
Part I.   Financial Information
-------------------------------

     Item 1. Financial Statements (unaudited):

             Consolidated Balance Sheets
              at December 31, 2001 and September 30, 2001                  3

             Consolidated Statements of Income for the
              Three Months Ended December 31, 2001 and 2000                4

             Consolidated Statements of Comprehensive Income (Loss)
              for the Three Months Ended December 31, 2001 and 2000        5

             Consolidated Statement of Changes in Shareholders'
              Equity for the Three Months Ended December 31, 2001          6

             Consolidated Statements of Cash Flows for the
              Three Months Ended December 31, 2001 and 2000                7

             Notes to Consolidated Financial Statements                    8

     Item 2. Management's  Discussion  and Analysis of Financial
              Condition and Results of Operations                         11

     Item 3. Quantitative and Qualitative Disclosure About Market Risk    18


Part II. Other Information                                                20
---------------------------

     Signatures                                                           21
     ----------


                                       2





Part I. Financial Information
Item I. Financial Statements



                          FIRST MIDWEST FINANCIAL, INC.
                                AND SUBSIDIARIES
                     Consolidated Balance Sheets (Unaudited)

                                                               December 31, 2001  September 30, 2001
                                                               -----------------  ------------------
                                                                              
Assets
Cash and due from banks                                          $   1,314,920      $   1,016,111
Interest-bearing deposits in other financial institutions -
   short-term (cost approximates market value)                       6,297,513          7,750,194
                                                                 -------------      -------------
      Total cash and cash equivalents                                7,612,433          8,766,305
Securities available for sale, amortized cost
   of $161,187,183 at December 31, 2001 and
   $144,836,919 at September 30, 2001                              160,676,665        145,374,339
Loans receivable - net of allowance for loan losses
  of $4,144,719 at December 31, 2001 and $3,868,664
  at September 30, 2001                                            345,942,074        333,062,025
Foreclosed real estate, net                                            979,753            940,143
Accrued interest receivable                                          4,306,283          4,750,792
Federal Home Loan Bank stock, at cost                                6,937,600          6,398,900
Premises and equipment, net                                          9,457,460          9,346,788
Excess of cost over net assets acquired                              3,403,019          3,403,019
Other assets                                                        11,596,523         11,140,752
                                                                 -------------      -------------

         Total Assets                                            $ 550,911,810      $ 523,183,063
                                                                 =============      =============

Liabilities and Shareholders' Equity
                          Liabilities
Deposits                                                         $ 342,957,168      $ 338,781,878
Advances from Federal Home Loan Bank                               124,067,057        126,351,761
Securities sold under agreements to repurchase                      28,392,720          1,992,720
Company Obligated Mandatorily Redeemable Preferred
  Securities of Subsidiary Trust Holding Solely
  Subordinated Debentures                                           10,000,000         10,000,000
Advances from borrowers for taxes and insurance                        321,246            446,397
Accrued interest payable                                               663,107            868,281
Other liabilities                                                    1,410,135          1,014,816
                                                                 -------------      -------------

         Total Liabilities                                         507,811,433        479,455,853
                                                                 -------------      -------------

                      Shareholders' Equity
Preferred stock, 800,000 shares authorized, no shares
   issued or outstanding                                                    --                 --
Common stock, $.01 par value, 5,200,000 shares authorized,
   2,957,999 shares issued and 2,459,912 shares outstanding
   at December 31, 2001; 2,957,999 shares issued and
   2,469,727 shares outstanding at September 30, 2001                   29,580             29,580
Additional paid-in capital                                          20,863,363         20,863,379
Retained earnings - substantially restricted                        31,183,640         31,066,643
Accumulated other comprehensive income (loss)                         (321,811)           338,427
Unearned Employee Stock Ownership Plan shares                         (135,000)          (180,000)
Treasury stock, 498,087 and 488,272 common shares, at cost,
   at December 31, 2001 and September 30, 2001, respectively        (8,519,395)        (8,390,819)
                                                                 -------------      -------------

         Total Shareholders' Equity                                 43,100,377         43,727,210
                                                                 -------------      -------------

         Total Liabilities and Shareholders' Equity              $ 550,911,810      $ 523,183,063
                                                                 =============      =============



The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       3







                          FIRST MIDWEST FINANCIAL, INC.
                                AND SUBSIDIARIES
                  Consolidated Statements of Income (Unaudited)

                                                                             Three Months Ended
                                                                                December 31,
                                                                           2001             2000
                                                                       -----------      -----------
                                                                                  
Interest and Dividend Income:
        Loans receivable, including fees                               $ 6,794,813      $ 7,081,316
        Securities available for sale                                    2,334,250        2,652,541
        Dividends on Federal Home Loan Bank stock                           70,222          148,204
                                                                       -----------      -----------
              Total interest and dividend income                         9,199,285        9,882,061

Interest Expense:
        Deposits                                                         3,804,005        4,520,175
        FHLB advances and other borrowings                               2,124,030        2,024,877
                                                                       -----------      -----------
              Total interest expense                                     5,928,035        6,545,052
                                                                       -----------      -----------

Net interest income                                                      3,271,250        3,337,009
Provision for loan losses                                                  299,000          150,000
                                                                       -----------      -----------
Net interest income after provision for loan losses                      2,972,250        3,187,009

Noninterest income:
        Deposit service charges and other fees                             296,152          227,645
        Gain (loss) on sales of securities available for sale, net           6,879               --
        Gain (loss) on sales of foreclosed real estate, net                 (1,704)            (457)
        Brokerage commissions                                               75,655           27,863
        Other income                                                       192,696           32,828
                                                                       -----------      -----------
              Total noninterest income                                     569,678          287,879

Noninterest expense:
        Employee compensation and benefits                               1,851,407        1,550,573
        Occupancy and equipment expense                                    454,466          346,772
        Federal deposit insurance premium                                   15,781           15,964
        Data processing expense                                            139,745           88,721
        Other expense                                                      474,846          473,989
                                                                       -----------      -----------
              Total noninterest expense                                  2,936,245        2,476,019
                                                                       -----------      -----------

Income before income taxes                                                 605,683          998,869
Income tax expense                                                         168,898          392,563
                                                                       -----------      -----------
Net income                                                             $   436,785      $   606,306
                                                                       ===========      ===========
Earnings per common share:
        Basic                                                          $      0.18      $      0.25
                                                                       -----------      -----------
        Diluted                                                        $      0.18      $      0.25
                                                                       -----------      -----------




The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       4







                          FIRST MIDWEST FINANCIAL, INC.
                                AND SUBSIDIARIES
       Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

                                                                    Three Months Ended
                                                                        December 31,
                                                                   2001             2000
                                                               -----------      -----------

                                                                          
Net income                                                     $   436,785      $   606,306

Other comprehensive income (loss):
          Net change in net unrealized gains and losses on
            securities available for sale                       (1,047,938)     $ 1,759,169
          Deferred income tax expense (benefit)                   (387,700)         654,633
                                                               -----------      -----------

          Total other comprehensive income (loss)                 (660,238)       1,104,536
                                                               -----------      -----------

Total comprehensive income (loss)                              $  (223,453)     $ 1,710,842
                                                               ===========      ===========



The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       5







                          FIRST MIDWEST FINANCIAL, INC.
                                AND SUBSIDIARIES
      Consolidated Statement of Changes in Shareholders' Equity (Unaudited)
                  For the Three Months Ended December 31, 2001


                                                                                           Accumulated
                                                                                              Other
                                                              Additional                  Comprehensive
                                                 Common        Paid-In       Retained     Income (Loss),
                                                 Stock         Capital       Earnings       Net of Tax
                                               ---------    ------------   ------------     -----------

                                                                                
Balance at September 30, 2001                  $  29,580    $ 20,863,379   $ 31,066,643     $   338,427

Cash dividends declared on common
  stock ($0.13 per share)                             --              --       (319,788)             --

Purchase of 12,315 common shares of
  treasury stock                                      --              --             --              --

3,750 common shares committed to be
  released under the ESOP                             --           5,015             --              --

Issuance of 2,500 common shares from
  treasury stock due to exercise of stock
  options                                             --          (5,031)            --              --

Net change in net unrealized losses on
  securities available for sale, net of
  effect of income taxes of $(387,700)                --              --             --        (660,238)

Net income for the three months ended
  December 31, 2001                                   --              --        436,785              --
                                               ---------    ------------   ------------     -----------
Balance at December 31, 2001                   $  29,580    $ 20,863,363   $ 31,183,640     $  (321,811)
                                               =========    ============   ============     ===========





                                                Unearned
                                                Employee
                                                  Stock                         Total
                                                Ownership       Treasury      Shareholders'
                                               Plan Shares       Stock          Equity
                                               -----------    ------------    ------------
                                                                     
Balance at September 30, 2001                  $  (180,000)   $ (8,390,819)   $ 43,727,210

Cash dividends declared on common
  stock ($0.13 per share)                               --              --        (319,788)

Purchase of 12,315 common shares of
  treasury stock                                        --        (161,326)       (161,326)

3,750 common shares committed to be
  released under the ESOP                           45,000              --          50,015

Issuance of 2,500 common shares from
  treasury stock due to exercise of stock
  options                                               --          32,750          27,719

Net change in net unrealized losses on
  securities available for sale, net of
  effect of income taxes of $(387,700)                  --              --        (660,238)

Net income for the three months ended
  December 31, 2001                                     --              --         436,785
                                               -----------    ------------    ------------
Balance at December 31, 2001                   $  (135,000)   $ (8,519,395)   $ 43,100,377
                                               ===========    ============    ============




The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       6





                          FIRST MIDWEST FINANCIAL, INC.
                                AND SUBSIDIARIES
                Consolidated Statements of Cash Flows (Unaudited)



                                                                                  Three Months Ended December 31,
                                                                                      2001            2000
                                                                                  ------------    ------------
Cash flows from operating activities:

                                                                                            
     Net income                                                                   $    436,785    $    606,306
     Adjustments to reconcile net income to net cash from operating activities:
         Depreciation, amoritization and accretion, net                                441,097         235,182
         Provision for loan losses                                                     299,000         150,000
         (Gain) loss on sales of foreclosed real estate, net                             1,704             457
         (Gain) loss on sales of securities available for sale                          (6,879)             --
         Proceeds from sales of loans held for sale                                  8,982,122       1,501,909
         Originations of loans held for sale                                        (8,982,122)     (1,501,909)
         Net change in accrued interest receivable                                     444,509          40,936
         Net change in other assets                                                    161,160         425,758
         Net change in accrued interest payable                                       (205,174)         32,223
         Net change in accrued expenses and other liabilities                          166,087        (466,791)
                                                                                  ------------    ------------
               Net cash from operating activities                                    1,738,289       1,024,071

Cash flows from investing activities:
     Purchase of securities available for sale                                     (27,091,067)             --
     Proceeds from maturities and principal repayments of
       securities available for sale                                                10,532,068       2,783,343
     Net change in loans receivable                                                 (6,696,745)      6,911,142
     Loans purchased                                                                (6,566,454)     (2,801,910)
     Proceeds from sales of foreclosed real estate                                      53,146         404,596
     Purchase of FHLB stock                                                           (538,700)             --
     Purchase of premises and equipment, net                                          (296,450)       (592,722)
                                                                                  ------------    ------------
               Net cash from investing activities                                  (30,604,202)      6,704,449

Cash flows from financing activities:
     Net change in noninterest-bearing demand, savings, NOW, and
       money market demand deposits                                                  6,770,290       5,119,950
     Net change in other time deposits                                              (2,594,999)     10,205,475
     Proceeds from advances from Federal Home Loan Bank                             84,650,000      47,215,000
     Repayments of advances from Federal Home Loan Bank                            (86,934,704)    (63,569,952)
     Proceeds from other borrowings                                                 88,900,000              --
     Repayments of other borrowings                                                (62,800,000)             --
     Net change in securities sold under agreements to repurchase                      300,000        (916,601)
     Net change in advances from borrowers for taxes and insurance                    (125,151)         59,208
     Cash dividends paid                                                              (319,788)       (315,865)
     Proceeds from the exercise of stock options                                        27,719              --
     Purchase of treasury stock                                                       (161,326)        (17,778)
                                                                                  ------------    ------------
               Net cash from financing activities                                   27,712,041      (2,220,563)
                                                                                  ------------    ------------

Net change in cash and cash equivalents                                             (1,153,872)      5,507,957

Cash and cash equivalents at beginning of period                                     8,766,305       6,922,531
                                                                                  ------------    ------------
Cash and cash equivalents at end of period                                        $  7,612,433    $ 12,430,488
                                                                                  ============    ============
Supplemental disclosure of cash flow information
     Cash paid during the period for:
         Interest                                                                 $  6,133,209    $  6,512,829
         Income taxes                                                                    9,200           9,500

Supplemental schedule of non-cash investing and financing activities:
     Loans transferred to foreclosed real estate                                  $     94,459    $     34,000




The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       7





                          FIRST MIDWEST FINANCIAL, INC.
                                AND SUBSIDIARIES
             Notes to Consolidated Financial Statements (Unaudited)


1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     The accounting  policies followed by First Midwest Financial,  Inc. ("First
     Midwest" or the "Company") and its consolidated subsidiaries, First Federal
     Savings  Bank  of  the  Midwest  ("First  Federal"),  Security  State  Bank
     ("Security"),  First  Services  Financial  Limited  and  Brookings  Service
     Corporation,  for interim  reporting  are  consistent  with the  accounting
     policies followed for annual financial reporting.  All adjustments that, in
     the opinion of  management,  are necessary for a fair  presentation  of the
     results for the periods  reported  have been  included in the  accompanying
     unaudited consolidated  financial statements,  and all such adjustments are
     of a normal recurring nature. The accompanying  financial statements do not
     purport to contain  all the  necessary  financial  disclosures  required by
     generally accepted accounting  principles that might otherwise be necessary
     in the  circumstances  and should be read in conjunction with the Company's
     consolidated  financial  statements,  and notes thereto, for the year ended
     September 30, 2001.

2.   EARNINGS PER SHARE

     Basic earnings  per share is based on net income  divided  by the  weighted
     average number of shares  outstanding  during the period.  Diluted earnings
     per share shows the dilutive  effect of additional  common shares  issuable
     under stock options.

     A  reconciliation  of the  numerators  and  denominators  used in the basic
     earnings  per  common  share and the  diluted  earnings  per  common  share
     computations  for the three  months  ended  December  31,  2001 and 2000 is
     presented below.

                                                        Three Months Ended
                                                            December 31,
                                                            ------------
                                                        2001            2000
                                                        ----            ----
Basic Earnings Per Common Share:
 Numerator:
   Net Income                                       $   436,785      $   606,306
                                                    ===========      ===========
 Denominator:
   Weighted average common
       shares outstanding                             2,466,639        2,429,727
   Less: Weighted average
       unallocated ESOP shares                          (13,750)              --
                                                    -----------      -----------
   Weighted average common shares
       outstanding for basic earnings
       per share                                      2,452,889        2,429,727
                                                    ===========      ===========

   Basic earnings per common share                  $      0.18      $      0.25
                                                    ===========      ===========


                                       8





                                                          Three Months Ended
                                                             December 31,
                                                          2000          1999
                                                          ----          ----
Diluted Earnings Per Common Share:
  Numerator:
   Net Income                                          $  436,785     $  606,306
                                                       ==========     ==========
  Denominator:
   Weighted average common
       shares outstanding for basic
       earnings per common share                        2,452,889      2,429,727
   Add: Dilutive effects of assumed
       exercise of stock options, net
       of tax benefits                                     39,331         28,006
                                                       ----------     ----------
   Weighted average common and
       dilutive potential common
       shares outstanding                               2,492,220      2,457,733
                                                       ==========     ==========

       Diluted earnings per common share               $     0.18     $     0.25
                                                       ==========     ==========

3.   COMMITMENTS

     At December 31, 2001 and  September 30, 2001,  the Company had  outstanding
     commitments  to originate  and purchase  loans  totaling  $24.2 million and
     $29.7 million,  respectively,  excluding  undisbursed  portions of loans in
     process.  It is expected that  outstanding  loan commitments will be funded
     with existing liquid assets.

4.   INTANGIBLE ASSETS

     On October 1, 2001,  the Company  elected  early  adoption of  Statement of
     Financial  Accounting  Standards No. 141, "Business  Combinations," and No.
     142,  "Goodwill and Other  Intangible  Assets" (SFAS 141 and 142). SFAS 141
     addresses financial accounting and reporting for business  combinations and
     replaces APB Opinion No. 16, "Business  Combinations" (APB 16). SFAS 141 no
     longer  allows  the  pooling  of  interests   method  of   accounting   for
     acquisitions,  provides new recognition  criteria for intangible assets and
     carries forward without  reconsideration  the guidance in APB 16 related to
     the  application of the purchase  method of accounting.  SFAS 142 addresses
     financial   accounting  and  reporting  for  acquired  goodwill  and  other
     intangible  assets and  replaces APB Opinion No. 17,  "Intangible  Assets."
     SFAS 142 addresses how intangible assets should be accounted for upon their
     acquisition and after they have been initially  recognized in the financial
     statements.  The new  standards  provide  specific  guidance  on  measuring
     goodwill for impairment  annually using a two-step process.  The first step
     identifies  potential impairment and the second step measures the amount of
     goodwill impairment loss to be recognized.

     As of October  1, 2001,  the  Company  has  undertaken  to  identify  those
     intangible  assets that remain  separable  under the  provisions of the new
     standard  and those that are to be included in goodwill  and has  concluded
     that all amounts  should be included in goodwill.  In the year of adoption,
     SFAS 142  requires  the first step of the  goodwill  impairment  test to be
     completed  within the first six  months and the final step to be  completed
     within twelve  months of adoption.  The Company has not completed the first
     step of the goodwill  impairment test, but will perform the test during the
     second quarter of fiscal 2001.


                                       9





     Had the  provisions  of SFAS 141 and 142 been  applied in fiscal year 2001,
     the  Company's  net  income  and net  income  per share  would have been as
     follows:


                                                    3 Months ended
                                                  December 31, 2000
                                                  -----------------

                                                        Basic        Diluted
                                            Net        earnings     earnings
                                          Income       Per Share    Per share
                                         --------      ---------    ---------
  Net Income:
     As reported                         $606,306       $   .25      $   .25
     Add:  Goodwill amortization           92,187           .04          .03
                                         --------       -------      -------

      Pro forma net income               $698,493       $   .29      $   .28
                                         ========       =======      =======



     As of September  30, 2001 and December 31, 2001 the Company had  intangible
     assets of  $3,403,019,  all of which has been  determined  to be  goodwill.
     There was no goodwill  impairment loss or amortization  related to goodwill
     during the three months ended December 31, 2001.


                                       10





Part I. Financial Information

Item 2. Management's  Discussion and Analysis of Financial Condition and Results
        of Operations


                          FIRST MIDWEST FINANCIAL, INC.
                                AND SUBSIDIARIES

GENERAL

First  Midwest  Financial,  Inc.  ("First  Midwest" or the  "Company") is a bank
holding  company  whose  primary  assets are First  Federal  Savings Bank of the
Midwest ("First Federal") and Security State Bank ("Security").  The Company was
incorporated  in 1993 as a  unitary  non-diversified  savings  and loan  holding
company and, on September  20, 1993,  acquired all of the capital stock of First
Federal in connection with First Federal's  conversion from mutual to stock form
of ownership.  On September 30, 1996, the Company became a bank holding  company
in conjunction with the acquisition of Security.

The following discussion focuses on the consolidated  financial condition of the
Company and its  subsidiaries,  at December 31, 2001,  compared to September 30,
2001,  and the  consolidated  results of  operations  for the three months ended
December 31, 2001,  compared to the same period in 2000. This discussion  should
be read in conjunction with the Company's consolidated financial statements, and
notes thereto, for the year ended September 30, 2001.

FINANCIAL CONDITION

Total assets increased by $27.7 million,  or 5.3%, to $550.9 million at December
31, 2001, from $523.2 million at September 30, 2001.

The  portfolio of securities  available for sale  increased  $15.3  million,  or
10.5%,  to $160.7 million at December 31, 2001, from $145.4 million at September
30, 2001.  The increase  resulted from the purchase of securities  available for
sale in an amount  greater than  maturities  and principal  repayments  received
during the period.

The portfolio of net loans  receivable  increased by $12.8 million,  or 3.8%, to
$345.9 million at December 31, 2001,  from $333.1 million at September 30, 2001.
The increase was due to increases in  commercial  and  multi-family  real estate
loans and commercial business loans, which were partially offset by decreases in
single-family residential mortgage loans, consumer loans and agricultural loans.

Deposit  balances  increased  by $4.2  million,  or 1.2%,  to $343.0  million at
December 31, 2001,  from $338.8  million at September 30, 2001.  The increase in
deposit  balances  resulted from  increases in checking  accounts,  money market
demand accounts, and savings accounts in the amounts of $4.3 million,  $772,000,
and $1.7 million, respectively.  These increases were partially offset by a $2.6
million decrease in certificates of deposit.

The balance in advances  from the  Federal  Home Loan Bank of Des Moines  (FHLB)
decreased by $2.3 million,  or 1.8%, to $124.1 million at December 31, 2001 from
$126.4  million at September  30, 2001.  In addition,  the balance in securities
sold under agreements to repurchase  increased by $26.4 million to $28.4 million
at December 31, 2001 from $2.0 million at  September  30, 2001.  The increase in
securities sold under  agreements to repurchase  reflects the use of alternative
borrowing  sources at  comparatively  lower costs to fund  balance  sheet growth
during the quarter.


                                       11





Total  shareholders'  equity  decreased  $627,000,  or 1.4%, to $43.1 million at
December  31, 2001 from $43.7  million at September  30,  2001.  The decrease in
shareholders'  equity  during the period was due primarily to an increase in the
unrealized loss on securities available for sale in accordance with SFAS 115.

NON-PERFORMING ASSETS AND ALLOWANCE FOR LOAN LOSSES

Generally,  when a loan  becomes  delinquent  90  days  or  more,  or  when  the
collection of principal or interest becomes doubtful, the Company will place the
loan on non-accrual  status and, as a result of this action,  previously accrued
interest income on the loan is taken out of current income. The loan will remain
on non-accrual  status until the loan has been brought  current,  or until other
circumstances  occur  that  provide  adequate  assurance  of full  repayment  of
interest and principal.

At December 31, 2001, the Company had loans delinquent 30 days and over totaling
$14.3  million,  or 4.1% of total loans  compared to $15.1  million,  or 4.5% of
total loans at September 30, 2001.

At December 31, 2001,  commercial and multi-family  real estate loans delinquent
30 days and over totaled $10.7  million,  or 3.1% of the total loan portfolio as
compared  to $11.3  million,  or 3.4% of  total  loans at  September  30,  2001.
Multi-family  and commercial real estate loans generally  present a higher level
of risk than loans secured by one- to four-family residences.  This greater risk
is due to several factors, including the concentration of principal in a limited
number of loans and  borrowers,  the effect of general  economic  conditions  on
income  producing  properties  and the increased  difficulty  of evaluating  and
monitoring  these  types of loans.  The  majority  of the  Company's  delinquent
commercial   and   multi-family   real  estate  loans  have  been  purchased  as
participations with other lenders, are serviced by other lenders and are secured
by properties  outside the Company's  primary market area. These loans are being
closely  monitored by  management,  however,  there can be no assurance that all
loans will be fully collectible.

At December 31, 2001,  agricultural  operating loans delinquent 30 days and over
totaled $1.5 million,  or 0.43% of the total loan  portfolio as compared to $1.6
million,  or 0.48% of total loans at September  30, 2001.  Agricultural  lending
involves a greater degree of risk than one- to four-family  residential mortgage
loans because of the typically  larger loan  amounts.  In addition,  payments on
loans are  dependent  on the  successful  operation  or  management  of the farm
property  securing  the loan or for which an  operating  loan is  utilized.  The
success of the loan may also be affected  by factors  outside the control of the
agricultural  borrower,  such as the  weather  and grain and  livestock  prices.
Although management believes the Company's portfolio of agricultural real estate
and operating loans is well structured and adequately  secured,  there can be no
assurance that all loans will be fully collectible.

The table below sets forth the amounts and categories of  non-performing  assets
in the  Company's  loan  portfolio.  The  Company's  restructured  loans  (which
involved  forgiving a portion of the interest or principal on the loan or making
loans at a rate materially less than market rates) are included in the table and
were  performing as agreed at the date shown.  Foreclosed  assets include assets
acquired in settlement of loans.


                                         December 31, 2001    September 30, 2001
                                         -----------------    ------------------
                                                (Dollars in Thousands)
Non-accruing loans:
     One-to four family                        $  154             $  168
     Commercial and multi-family                4,926                464
     Agricultural real estate                      --                 --
     Consumer                                      64                 33
     Agricultural operating                       677                569
     Commercial business                          539                369
                                               ------             ------
       Total non-accruing loans                 6,360              1,603

Accruing loans delinquent 90 days or more          --                 --
                                               ------             ------
       Total non-performing loans               6,360              1,603
                                               ------             ------

Restructured loans:
     Consumer                                      10                 10
     Agricultural operating                        14                 14
     Commercial business                           --                 --
                                               ------             ------
       Total  restructured loans                   24                 24
                                               ------             ------

Foreclosed assets:
     Commercial real estate                       931                889
     Consumer                                      49                 51
                                               ------             ------
     Total foreclosed assets                      980                940
     Less: Allowance for losses                    --                 --
                                               ------             ------
       Total foreclosed assets, net               980                940
                                               ------             ------

Total non-performing assets                    $7,364             $2,567
                                               ======             ======

Total as a percentage of total assets            1.34%              0.49%
                                               ======             ======


The increase in non-accruing loans at December 31, 2001 as compared to September
30, 2001 was  primarily  due to the transfer of a $4.5 million  commercial  real
estate participation loan secured by a hotel to non-accrual status.

Classified Assets.  Federal  regulations provide for the classification of loans
and other assets as "substandard",  "doubtful" or "loss",  based on the level of
weakness  determined  to be  inherent in the  collection  of the  principal  and
interest.  When loans are  classified  as either  substandard  or doubtful,  the
Company may  establish  general  allowances  for loan losses in an amount deemed
prudent by management.  General allowances  represent loss allowances which have
been  established  to  recognize  the  inherent  risk  associated  with  lending
activities,  but which, unlike specific  allowances,  have not been allocated to
particular  problem  loans.  When assets are  classified as loss, the Company is
required either to establish a specific  allowance for loan losses equal to 100%
of that portion of the loan so  classified,  or to charge-off  such amount.  The
Company's  determination as to the classification of its loans and the amount of
its valuation  allowances are subject to review by its  regulatory  authorities,
whom may require  the  establishment  of  additional  general or  specific  loss
allowances.

On the basis of management's  review of its loans and other assets,  at December
31, 2001,  the Company had  classified a total of $13.8 million of its assets as
substandard,   $181,000   as   doubtful   and  none  as  loss  as   compared  to
classifications  at  September  30, 2001 of $7.2  million  substandard,  $49,000
doubtful and none as loss.

Allowance  for Loan  Losses.  The Company  establishes  its  provision  for loan
losses, and evaluates the adequacy of its allowance for loan losses based upon a
systematic  methodology  consisting  of a number  of


                                       13





factors including,  among others, historic loss experience, the overall level of
non-performing  loans,  the  composition  of its loan  portfolio and the general
economic environment within which the Bank and its borrowers operate.

Current economic  conditions in the agricultural  sector of the Company's market
area indicate potential  weakness due to low commodity prices.  Price levels for
grain crops have generally been depressed since mid-1998 and currently remain at
historically  low  levels.  Grain  crop  prices  are not  expected  to  increase
significantly in the near term. Livestock prices have improved and are currently
at levels that present minimal concern.  The agricultural  economy is accustomed
to  commodity  price   fluctuations   and  is  generally  able  to  handle  such
fluctuations without significant  problem.  Although the Company underwrites its
agricultural  loans based on the current level of commodity  prices, an extended
period of low commodity  prices or adverse  growing  conditions  could result in
weakness in the  agricultural  loan  portfolio  and could  create a need for the
Company to increase its allowance for loan losses through  increased  charges to
the provision for loan losses.

At December 31, 2001,  the Company has  established an allowance for loan losses
totaling $4.1 million. The allowance  represents  approximately 65% of the total
non-performing  loans at December 31, 2001 as compared to approximately  240% of
the total non-performing loans at September 30, 2001.

The  following  table sets forth an  analysis of the  activity in the  Company's
allowance for loan losses for the  three-month  periods ended  December 31, 2001
and December 31, 2000:

                                               2001            2000
                                               ----            ----
                                                  (In Thousands)
    Balance, September 30,                   $ 3,869         $ 3,590
      Charge-offs                                (39)            (33)
      Recoveries                                  16              26
      Additions charged to operations            299             150
                                             -------         -------
    Balance, December 31,                    $ 4,145         $ 3,733
                                             =======         =======

The allowance for loan losses  reflects  management's  best estimate of probable
losses  inherent in the  portfolio  based on  currently  available  information.
Future  additions to the  allowance for loan losses may become  necessary  based
upon changing  economic  conditions,  increased  loan balances or changes in the
underlying collateral of the loan portfolio.

RESULTS OF OPERATIONS

General.  For the three months ended December 31, 2001, the Company recorded net
income of $437,000  compared  to net income of  $606,000  for the same period in
2000.  The decline in net income was the result of a reduction  in net  interest
income due to a narrowing of the net interest  margin and, in addition,  was due
to an increase in noninterest  expense  resulting from start-up costs associated
with the opening of two new offices.

Net income for the three months ended December 31, 2001 was positively  impacted
by the adoption of Statement of Financial  Accounting  Standards No. 141 and 142
(SFAS  141 and  142)  related  to  business  combinations,  goodwill  and  other
intangible  assets.  The  adoption  of  SFAS  141  and 142 on  October  1,  2001
eliminated goodwill  amortization,  which increased earnings by $92,000, or $.04
per diluted  share,  for the three months ended December 31, 2001 as compared to
the same period in 2000.


                                       14





Net Interest  Income.  Net interest income  decreased by $328,000,  or 10.0%, to
$2,960,000 for the three months ended December 31, 2001 from  $3,288,000 for the
same period in 2000. The decline in net interest  income reflects a reduction in
net yield on average interest-earning assets between the comparable periods. The
net yield on average interest-earning assets for the three months ended December
31, 2001 was 2.30% compared to 2.68% for the comparable period in 2000.

Provision for Loan Losses.  For the three-month  period ended December 31, 2001,
the  provision  for loan losses was  $299,000  compared to $150,000 for the same
period in 2000.  Management  believes that, based on a detail review of the loan
portfolio, historic loan losses, current economic conditions, and other factors,
the current level of provision for loan losses,  and the resulting  level of the
allowance for loan losses,  reflects a best estimate of probable losses inherent
in the loan portfolio.

Noninterest Income.  Noninterest income increased $544,000,  161.4%, to $881,000
for the three months ended  December 31, 2001 from  $337,000 for the same period
in 2000.  The  increase  in  noninterest  income  reflects  an  increase in fees
collected from the origination and purchase of loans, and an increase in service
charges  collected  on  deposit  accounts  during  the  comparable  periods.  In
addition,  the increase  reflects  the  accretion of income from bank owned life
insurance during the three months ended December 31, 2001.

Noninterest  Expense.  Noninterest  expense  increased  $460,000,  or 18.6%,  to
$2,936,000 for the three months ended December 31, 2001, from $2,476,000 for the
same period in 2000.  The  increase in  noninterest  expense  reflects the costs
associated with opening a new office in Sioux Falls,  South Dakota,  which moved
into its newly  constructed  facilities in April 2001. In addition,  the Company
opened its third Des Moines location in November 2001.  Noninterest expense also
increased as a result of the Company's  on-going  effort to maintain and enhance
its  technology  systems for the  efficient  delivery of products  and  customer
service. This includes on-line banking, which was made available to customers in
January 2002.

Income Tax  Expense.  Income tax expense was $169,000 for the three months ended
December 31, 2001 compared to $393,000 for the same period in 2000. The decrease
reflects  the  decrease in the level of taxable  income  between the  comparable
periods.

LIQUIDITY AND CAPITAL RESOURCES

The Company's primary sources of funds are deposits,  borrowings,  principal and
interest  payments on loans,  investments and  mortgage-backed  securities,  and
funds provided by operations. While scheduled payments on loans, mortgage-backed
securities and short-term  investments  are  relatively  predictable  sources of
funds, deposit flows and early loan repayments are greatly influenced by general
interest rates, economic conditions and competition.

The Company uses its capital resources  principally to meet ongoing  commitments
to fund  maturing  certificates  of deposits and loan  commitments,  to maintain
liquidity, and to meet operating expenses. At December 31, 2001, the Company had
commitments to originate and purchase loans totaling $24.2 million.  The Company
believes that loan repayment and other sources of funds will be adequate to meet
its foreseeable short- and long-term liquidity needs.

During July 2001,  the  Company's  trust  subsidiary,  First  Midwest  Financial
Capital  Trust  I,  sold $10  million  in  floating  rate  cumulative  preferred
securities. Proceeds from the sale were used to purchase subordinated debentures
of First Midwest,  which mature in the year 2031, and are redeemable at any time
after five years. The Company used the proceeds for general corporate purposes.


                                       15





Regulations  require First Federal and Security to maintain  minimum amounts and
ratios of total risk-based  capital and Tier 1 capital to risk-weighted  assets,
and a  leverage  ratio  consisting  of Tier 1 capital  to  average  assets.  The
following  table sets forth First  Federal's and  Security's  actual capital and
required  capital  amounts and ratios at December 31, 2001 which,  at that date,
exceeded the capital adequacy requirements:




                                                                                                         Minimum Requirement
                                                                                                             To Be Well
                                                                                  Minimum Requirement     Capitalized Under
                                                                                 For Capital Adequacy     Prompt Corrective
                                                                 Actual                 Purposes          Action Provisions
                                                                 ------                 --------          -----------------
At December 31, 2001                                      Amount        Ratio     Amount       Ratio      Amount     Ratio
--------------------                                      ------        -----     ------       -----      ------     -----
(Dollars in Thousands)
                                                                                                    
Total Capital (to risk weighted assets):
        First Federal                                    $45,229        12.8%    $28,230        8.0%     $35,287      10.0%
        Security                                           4,398        15.0       2,349        8.0        2,936      10.0
Tier 1 (Core) Capital (to risk weighted assets):
        First Federal                                     41,305        11.7      14,115        4.0       21,172      6.0
        Security                                           4,086        13.9       1,175        4.0        1,762      6.0
Tier 1 (Core) Capital (to adjusted total assets):
        First Federal                                     41,305         8.4      19,748        4.0       24,685      5.0
        Security                                           4,086         8.4       1,938        4.0        2,423      5.0
Tier 1 (Core) Capital (to average assets):
        First Federal                                     41,305         8.4      19,736        4.0       24,670      5.0



The Federal  Deposit  Insurance  Corporation  Improvement  Act of 1991  (FDICIA)
established  five  regulatory  capital  categories  and  authorized  the banking
regulators to take prompt  corrective  action with respect to institutions in an
undercapitalized  category.  At December  31, 2001,  First  Federal and Security
exceeded minimum requirements for the well-capitalized category.

Forward-Looking Statements

The Company, and its wholly-owned subsidiaries,  First Federal and Security, may
from time to time make written or oral "forward-looking  statements,"  including
statements contained in its filings with the Securities and Exchange Commission,
in its reports to  shareholders,  and in other  communications  by the  Company,
which  are made in good  faith by the  Company  pursuant  to the  "safe  harbor"
provisions of the Private Securities Litigation Reform Act of 1995.

These  forward-looking   statements  include  statements  with  respect  to  the
Company's beliefs, expectations,  estimates, and intentions, that are subject to
significant risks and uncertainties,  and are subject to change based on various
factors, some of which are beyond the Company's control. Such statements address
the following subjects: future operating results; customer growth and retention;
loan and other product demand;  earnings growth and  expectations;  new products
and  services;  credit  quality and  adequacy of reserves;  technology;  and our
employees.  The  following  factors,  among  others,  could cause the  Company's
financial performance to differ materially from the expectations, estimates, and
intentions  expressed in such  forward-looking  statements:  the strength of the
United  States  economy in general and the  strength of the local  economies  in
which the Company  conducts  operations;  the effects of, and changes in, trade,
monetary,  and fiscal policies and laws, including interest rate policies of the
Federal  Reserve  Board;   inflation,   interest  rate,   market,  and  monetary
fluctuations;  the timely  development  of and  acceptance  of new  products and
services of the Company and the perceived  overall  value of these  products and
services  by users;  the  impact of  changes  in  financial  services'  laws and
regulations;


                                       16





technological  changes;  acquisitions;  changes in consumer  spending and saving
habits;  and the success of the Company at  managing  the risks  involved in the
foregoing.

The foregoing list of factors is not exclusive. Additional discussion of factors
affecting  the  Company's  business and  prospects is contained in the Company's
periodic  filings with the SEC. The Company does not  undertake,  and  expressly
disclaims any intent or  obligation,  to update any  forward-looking  statement,
whether  written or oral,  that may be made from time to time by or on behalf of
the Company.


                                       17





Part I. Financial Information
Item 3. Quantitative and Qualitative Disclosure About Market Risk


Market Risk

The Company is exposed to the impact of interest rate changes and changes in the
market value of its investments.

The Company currently focuses lending efforts toward  originating and purchasing
competitively priced  adjustable-rate loan products and fixed-rate loan products
with relatively  short terms to maturity.  This allows the Company to maintain a
portfolio  of loans that will be  sensitive  to changes in the level of interest
rates while  providing a reasonable  spread to the cost of  liabilities  used to
fund the loans.

The Company's primary  objective for its investment  portfolio is to provide the
liquidity  necessary to meet loan funding  needs.  This portfolio is used in the
ongoing  management  of  changes to the  Company's  asset/liability  mix,  while
contributing  to  profitability  through  earnings flow.  The investment  policy
generally  calls for funds to be invested  among various  categories of security
types and  maturities  based upon the Company's  need for  liquidity,  desire to
achieve a proper balance between  minimizing risk while  maximizing  yield,  the
need  to  provide  collateral  for  borrowings,  and to  fulfill  the  Company's
asset/liability management goals.

The  Company's  cost of funds  responds to changes in interest  rates due to the
relatively short-term nature of its deposit portfolio. Consequently, the results
of  operations  are generally  influenced  by the level of  short-term  interest
rates.  The Company  offers a range of  maturities  on its  deposit  products at
competitive rates and monitors the maturities on an ongoing basis.

The Company  emphasizes and promotes its savings,  money market,  demand and NOW
accounts  and,  subject  to market  conditions,  certificates  of  deposit  with
maturities of six months through five years, principally from its primary market
area. The savings and NOW accounts tend to be less  susceptible to rapid changes
in interest rates.

In managing its  asset/liability  mix, the Company,  at times,  depending on the
relationship  between long- and short-term interest rates, market conditions and
consumer  preference,  may place somewhat greater emphasis on maximizing its net
interest margin than on strictly  matching the interest rate  sensitivity of its
assets and liabilities.  Management believes that the increased net income which
may result from an  acceptable  mismatch in the actual  maturity or repricing of
its asset and liability  portfolios  can,  during periods of declining or stable
interest rates,  provide sufficient returns to justify the increased exposure to
sudden and  unexpected  increases in interest rates which may result from such a
mismatch.  The Company  has  established  limits,  which may change from time to
time, on the level of acceptable  interest rate risk. There can be no assurance,
however,  that in the event of an adverse change in interest rates the Company's
efforts to limit interest rate risk will be successful.


Net Portfolio Value The Company uses a Net Portfolio  Value ("NPV")  approach to
the  quantification  of  interest  rate  risk.  This  approach   calculates  the
difference  between the present value of expected cash flows from assets and the
present  value of expected  cash flows from  liabilities,  as well as cash flows
from  off-balance-sheet  contracts.  Management  of  the  Company's  assets  and
liabilities is performed within the context of the marketplace,  but also within
limits established by the Board of Directors on the amount of change in NPV that
is acceptable given certain interest rate changes.


                                       18





Presented  below, as of December 31, 2001 and September 30, 2001, is an analysis
of the  Company's  interest  rate  risk as  measured  by  changes  in NPV for an
instantaneous  and  sustained  parallel  shift in the yield curve,  in 100 basis
point increments, up and down 200 basis points. As illustrated in the table, the
Company's NPV at December 31, 2001 is somewhat more sensitive to increasing rate
changes than declining rates. This occurs primarily because,  as rates rise, the
market value of the Company's  fixed-rate loans and  mortgage-backed  securities
declines  due both to the  interest  rate  increase  and the related  slowing of
prepayments.  When rates decline,  the Company does not experience a significant
rise in market  value for these  loans and  mortgage-backed  securities  because
borrowers prepay at relatively higher rates. The value of the Company's deposits
and borrowings change in approximately the same proportion in rising and falling
interest  rate  scenarios.  At September  30, 2001,  the  Company's NPV was more
sensitive to deelining interest rates than to increasing interest rate



                                                At December 31, 2001           At September 30, 2001
                                                --------------------           ---------------------
  Change in Interest Rates    Board Limit
  (Basis Points)               % Change       $ Change      % Change         $ Change        % Change
  --------------               --------       --------      --------         --------        --------
                                               (Dollars in Thousands)
                                                                                 
     +200 bp                     (40)%        $ (6,294)         (15)%         $ (2,472)        ( 6)%
     +100 bp                     (25)           (2,623)         ( 6)              (698)        ( 2)
        0 bp                       --               --           --                 --          --
     -100 bp                     (10)           (1,191)         ( 3)            (4,336)        (11)
     -200 bp                     (15)           (5,715)         (14)           (11,377)        (29)




Certain  shortcomings  are  inherent in the method of analysis  presented in the
foregoing table.  For example,  although certain assets and liabilities may have
similar maturities or periods to repricing,  they may react in different degrees
to changes in market interest  rates.  Also, the interest rates on certain types
of assets and liabilities may fluctuate in advance of changes in market interest
rates,  while  interest  rates on other  types may lag behind  changes in market
rates. Additionally, certain assets such as adjustable-rate mortgage loans, have
features which restrict changes in interest rates on a short-term basis and over
the life of the  asset.  Further,  in the event of a change in  interest  rates,
prepayments and early withdrawal  levels would likely deviate from those assumed
in  calculating  the tables.  Finally,  the ability of some borrowers to service
their debt may decrease in the event of an interest rate  increase.  The Company
considers all of these factors in monitoring its exposure to interest rate risk.


                                       19





                          FIRST MIDWEST FINANCIAL, INC.

                           PART II - OTHER INFORMATION

                                    FORM 10-Q


Item 6. Exhibits and Reports on Form 8-K

        (a)  Exhibits:                                  None

        (b)  Reports on Form 8-K:                       None



All other items have been  omitted as not required or not  applicable  under the
instructions.


                                       20





                          FIRST MIDWEST FINANCIAL, INC.

                                   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:  February 14, 2002       By:    /s/ James S. Haahr
       -----------------              ------------------------------------------
                                      James S. Haahr, Chairman of the Board,
                                       President and Chief Executive Officer



Date:  February 14, 2002       By:    /s/ Donald J. Winchell
       -----------------              ------------------------------------------
                                      Donald J. Winchell, Senior Vice President,
                                       Treasurer and Chief Financial Officer