FSF Financial Corp. and MidCountry Financial Corp. Announce Completion of Merger

FSF Financial Corp. and MidCountry Financial Corp., a privately-held company based in Macon, Georgia, today jointly announced the completion of the merger of the two financial services companies.

"Since announcing the agreement to merge in May of this year, a considerable amount of effort has been dedicated to making the merger as smooth as possible for our customers and our employees," said FSF Co-Chairman and Chief Executive Officer, Donald Glas. "We are convinced that the merger is beneficial to our shareholders, affords our employees with new and exciting opportunities, and will provide our customers with more banking options in an ever growing trade area," added Mr. Glas.

"The acquisition of FSF's family of companies will allow us to strengthen the community banking philosophy that the two organizations have exemplified. Our commitment is to our customers, our employees and our shareholders," noted Robert F. Hatcher, President and CEO of MidCountry.

Before the merger with FSF, MidCountry Financial Corp. had two principal subsidiaries: MidCountry Bank, based in Minnetonka, Minnesota, and Heights Finance Corporation, based in Peoria, Illinois. As a result of the merger, MidCountry Bank merged with First Federal Bank and the surviving institution retained the MidCountry Bank name. FSF's other subsidiaries will continue their pre-merger operations. Homeowners Mortgage Corporation has been renamed MidCountry Mortgage Corp.; Firstate Services, Inc. has been renamed MidCountry Investments, Inc., and Insurance Planners of Hutchinson continues under that name.

MidCountry Financial Corp. has assets of approximately $950 million. MidCountry Bank has assets of approximately $772 million and deposits of approximately $557 million, and operates through 23 offices in Minnesota and Illinois. Heights Finance Corporation has assets of approximately $163 million and operates through 106 offices in Illinois, Indiana, Missouri, Kentucky, and Tennessee.

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