IOWA CITY, Iowa, July 24, 2025 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) ("we," "our," or the "Company") today reported results for the second quarter of 2025.
Second Quarter 2025 Summary1
- Pre-tax, pre-provision net revenue increased 15% to $24.5 million2.
- Net interest margin (tax equivalent) was 3.57%2; core net interest margin expanded 13 basis points ("bps") to 3.49%.2
- Noninterest income was $10.2 million.
- Noninterest expense was $35.8 million.
- Efficiency ratio improved to 56.20%2 from 59.38%2.
- Net income of $10.0 million, or $0.48 per diluted common share, reflected credit loss expense of $11.9 million stemming primarily from a single commercial real estate ("CRE") office credit.
- Criticized loans ratio improved 32 bps to 5.15%.
- Allowance for credit losses ratio increased to 1.50%, due primarily to the single CRE office credit.
- Annualized loan growth of 7.4%.
- Tangible book value per share of $23.92,2 an increase of 2.4%.
- Common equity tier 1 ("CET1") capital ratio improved 5 bps to 11.02%.
- Provided notice of redemption for all $65.0 million aggregate principal of the Company's 5.75% fixed-to-floating rate subordinated notes due 2030 set to reprice on July 30th.
CEO Commentary
Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "Due to the expertise of our MidWestOne team, we continued to execute well on our 2025 strategic initiatives. Strong loan growth and back book loan re-pricing led to tax equivalent net interest margin expansion of 13 basis points, to 3.57%2, and to 5% linked quarter net interest income growth. Investments in our relationship fee income businesses continue to bear fruit with wealth management, Small Business Administration ("SBA"), and residential mortgage revenues up quarter over quarter.
We maintained our expense discipline even as we added significant customer facing talent in Denver and the Twin Cities, as well as invested in our platforms to drive internal efficiencies and improve the customer experience.
Earnings and certain asset quality measures were unfavorably impacted by a single $24 million suburban Twin Cities CRE office credit. The loan was originated in June 2022 and previously classified, but moved to nonaccrual in the second quarter. A receiver is in place, resolution efforts have begun, and a specific reserve was established, which led to an increase in our allowance for credit losses ratio to 1.50%.
Our balance sheet, capital, and underlying earnings strength position us well for the second half of 2025 as we continue to make significant progress in building a high-performing, relationship-driven community bank."
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1 Second Quarter Summary compares to the first quarter of 2025 (the "linked quarter") unless noted.
2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
| (Dollars in thousands, except per share amounts and as noted) | As of or for the quarter ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Financial Results | ||||||||||||||||||||
| Revenue | $ | 60,231 | $ | 57,575 | $ | 57,901 | $ | 117,806 | $ | 102,382 | ||||||||||
| Credit loss expense | 11,889 | 1,687 | 1,267 | 13,576 | 5,956 | |||||||||||||||
| Noninterest expense | 35,767 | 36,293 | 35,761 | 72,060 | 71,326 | |||||||||||||||
| Net income | 9,980 | 15,138 | 15,819 | 25,118 | 19,088 | |||||||||||||||
| Pre-tax pre-provision net revenue(3) | 24,464 | 21,282 | 22,140 | 45,746 | 31,056 | |||||||||||||||
| Adjusted earnings(3) | 10,176 | 15,301 | 8,132 | 25,479 | 12,621 | |||||||||||||||
| Per Common Share | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.48 | $ | 0.73 | $ | 1.00 | $ | 1.20 | $ | 1.21 | ||||||||||
| Adjusted earnings per share(3) | 0.49 | 0.73 | 0.52 | 1.22 | 0.80 | |||||||||||||||
| Book value | 28.36 | 27.85 | 34.44 | 28.36 | 34.44 | |||||||||||||||
| Tangible book value(3) | 23.92 | 23.36 | 28.27 | 23.92 | 28.27 | |||||||||||||||
| Balance Sheet & Credit Quality | ||||||||||||||||||||
| Loans In millions | $ | 4,381.2 | $ | 4,304.2 | $ | 4,287.2 | $ | 4,381.2 | $ | 4,287.2 | ||||||||||
| Investment securities In millions | 1,235.0 | 1,305.5 | 1,824.1 | 1,235.0 | 1,824.1 | |||||||||||||||
| Deposits In millions | 5,388.1 | 5,489.1 | 5,412.4 | 5,388.1 | 5,412.4 | |||||||||||||||
| Net loan charge-offs In millions | 0.2 | 3.1 | 0.5 | 3.3 | 0.7 | |||||||||||||||
| Allowance for credit losses ratio | 1.50 | % | 1.25 | % | 1.26 | % | 1.50 | % | 1.26 | % | ||||||||||
| Selected Ratios | ||||||||||||||||||||
| Return on average assets | 0.65 | % | 1.00 | % | 0.95 | % | 0.82 | % | 0.58 | % | ||||||||||
| Net interest margin, tax equivalent(3) | 3.57 | % | 3.44 | % | 2.41 | % | 3.51 | % | 2.37 | % | ||||||||||
| Return on average equity | 6.81 | % | 10.74 | % | 11.91 | % | 8.74 | % | 7.23 | % | ||||||||||
| Return on average tangible equity(3) | 8.84 | % | 13.75 | % | 15.74 | % | 11.24 | % | 9.98 | % | ||||||||||
| Efficiency ratio(3) | 56.20 | % | 59.38 | % | 56.29 | % | 57.75 | % | 62.83 | % | ||||||||||
REVENUE REVIEW
| Revenue | Change | Change | |||||||||||||
| 2Q25 vs | 2Q25 vs | ||||||||||||||
| (Dollars in thousands) | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | ||||||||||
| Net interest income | $ | 49,982 | $ | 47,439 | $ | 36,347 | 5 | % | 38 | % | |||||
| Noninterest income | 10,249 | 10,136 | 21,554 | 1 | % | (52)% | |||||||||
| Total revenue, net of interest expense | $ | 60,231 | $ | 57,575 | $ | 57,901 | 5 | % | 4 | % | |||||
Total revenue for the second quarter of 2025 increased $2.7 million from the first quarter of 2025 due to higher net interest income and noninterest income during the quarter. When compared to the second quarter of 2024, total revenue increased $2.3 million due to higher net interest income partially offset by lower noninterest income.
Net interest income of $50.0 million for the second quarter of 2025 increased $2.5 million from the first quarter of 2025 due to higher earning asset volumes and yields and lower funding costs, partially offset by higher funding volumes. When compared to the second quarter of 2024, net interest income increased $13.6 million due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.
The Company's tax equivalent net interest margin was 3.57%3 in the second quarter of 2025, compared to 3.44%3 in the first quarter of 2025, driven by higher earning asset yields and lower interest bearing liability costs. Total earning asset yield increased 12 bps from the first quarter of 2025, primarily due to an increase of 10 bps in loan yield. Interest bearing liability costs during the second quarter of 2025 decreased 2 bps to 2.39%, primarily due to reductions in long-term debt costs and interest bearing deposits of 13 bps and 2 bps, to 6.28% and 2.29%, respectively, from the first quarter of 2025.
The Company's tax equivalent net interest margin was 3.57%3 in the second quarter of 2025, compared to 2.41%3 in the second quarter of 2024, driven by higher earning asset yields and lower interest bearing liability costs. Total earning assets yield increased 75 bps from the second quarter of 2024, primarily due to increases of 189 bps and 12 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 46 bps to 2.39%, due to long-term debt costs of 6.28% and interest bearing deposit costs of 2.29%, which decreased 67 bps, and 25 bps, respectively, from the second quarter of 2024.
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3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
| Noninterest Income | Change | Change | ||||||||||||||
| 2Q25 vs | 2Q25 vs | |||||||||||||||
| (Dollars in thousands) | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||||||||
| Investment services and trust activities | $ | 3,705 | $ | 3,544 | $ | 3,504 | 5 | % | 6 | % | ||||||
| Service charges and fees | 2,190 | 2,131 | 2,156 | 3 | % | 2 | % | |||||||||
| Card revenue | 1,934 | 1,744 | 1,907 | 11 | % | 1 | % | |||||||||
| Loan revenue | 1,417 | 1,194 | 1,525 | 19 | % | (7)% | ||||||||||
| Bank-owned life insurance | 677 | 1,057 | 668 | (36)% | 1 | % | ||||||||||
| Investment securities gains, net | - | 33 | 33 | (100)% | (100)% | |||||||||||
| Other | 326 | 433 | 11,761 | (25)% | (97)% | |||||||||||
| Total noninterest income | $ | 10,249 | $ | 10,136 | $ | 21,554 | 1 | % | (52)% | |||||||
| MSR adjustment (included above in Loan revenue) | $ | (264 | ) | $ | (213 | ) | $ | 129 | 24 | % | (305)% | |||||
Noninterest income for the second quarter of 2025 increased $0.1 million from the linked quarter, primarily due to increases of $0.2 million each in loan revenue, card revenue, and investment services and trust activities revenue. The increase in loan revenue was due primarily to a $0.2 million increase in mortgage origination fee revenue, coupled with an increase of $0.2 million in SBA gain on sale revenue. The increase in card revenue was driven primarily by higher interchange fee income. The increase in investment services and trust activities revenue was driven by higher assets under administration. Partially offsetting these increases was a decline of $0.4 million in bank-owned life insurance revenue stemming from the death benefit recognized in the first quarter of 2025.
Noninterest income for the second quarter of 2025 decreased $11.3 million from the second quarter of 2024 primarily due to the decline in other revenue stemming from the $11.1 million gain realized in connection with the sale of our Florida banking operations in the second quarter of 2024. Also contributing to the decline in noninterest income was a $0.4 million unfavorable change in the fair value of our mortgage servicing rights, which is included in loan revenue, and a decline of $0.4 million in swap origination fee income, which is recorded in other revenue. Partially offsetting these declines was an increase of $0.2 million in investment services and trust activities revenue, driven by higher assets under administration.
EXPENSE REVIEW
| Noninterest Expense | Change | Change | ||||||||||||
| 2Q25 vs | 2Q25 vs | |||||||||||||
| (Dollars in thousands) | 2Q25 | 1Q25 | 2Q24 | 1Q25 | 2Q24 | |||||||||
| Compensation and employee benefits | $ | 21,011 | $ | 21,212 | $ | 20,985 | (1)% | - | % | |||||
| Occupancy expense of premises, net | 2,540 | 2,588 | 2,435 | (2)% | 4 | % | ||||||||
| Equipment | 2,550 | 2,426 | 2,530 | 5 | % | 1 | % | |||||||
| Legal and professional | 2,153 | 2,226 | 2,253 | (3)% | (4)% | |||||||||
| Data processing | 1,486 | 1,698 | 1,645 | (12)% | (10)% | |||||||||
| Marketing | 762 | 552 | 636 | 38 | % | 20 | % | |||||||
| Amortization of intangibles | 1,252 | 1,408 | 1,593 | (11)% | (21)% | |||||||||
| FDIC insurance | 851 | 917 | 1,051 | (7)% | (19)% | |||||||||
| Communications | 161 | 159 | 191 | 1 | % | (16)% | ||||||||
| Foreclosed assets, net | 83 | 74 | 138 | 12 | % | (40)% | ||||||||
| Other | 2,918 | 3,033 | 2,304 | (4)% | 27 | % | ||||||||
| Total noninterest expense | $ | 35,767 | $ | 36,293 | $ | 35,761 | (1)% | - | % | |||||
| Merger-related Expenses | ||||||||
| (Dollars in thousands) | 2Q25 | 1Q25 | 2Q24 | |||||
| Compensation and employee benefits | $ | - | $ | - | $ | 73 | ||
| Equipment | - | - | 28 | |||||
| Legal and professional | - | 40 | 462 | |||||
| Data processing | - | - | 251 | |||||
| Communications | - | - | 8 | |||||
| Other | - | - | 32 | |||||
| Total merger-related expenses | $ | - | $ | 40 | $ | 854 | ||
Noninterest expense for the second quarter of 2025 decreased $0.5 million from the linked quarter, primarily due to decreases of $0.2 million each in data processing, compensation and employee benefits, and amortization of intangibles. The decrease in data processing was primarily driven by a decrease in core banking system costs. The decrease in compensation and employee benefits reflected the receipt of $1.1 million from Employee Retention Credit claims, which was partially offset by higher wage, equity compensation and employee benefits expense.
Noninterest expense for the second quarter of 2025 compared to the prior year was stable at $35.8 million. The $0.6 million increase in other noninterest expense stemmed primarily from customer deposits costs. Further, excluding merger-related expenses, legal and professional costs increased $0.4 million due primarily to higher litigation-related legal expenses. Those increases were partially offset by lower intangible amortization and FDIC insurance costs, which decreased $0.3 million and $0.2 million, respectively.
The Company's effective tax rate was 20.6% in the second quarter of 2025, compared to 22.7% in the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.
BALANCE SHEET REVIEW
Total assets were $6.16 billion at June 30, 2025, compared to $6.25 billion at March 31, 2025 and $6.58 billion at June 30, 2024. The decrease from March 31, 2025 was primarily due to lower cash and security volumes, partially offset by higher loan volumes. Compared to June 30, 2024, the decrease was primarily driven by lower security volumes, partially offset by higher loan volumes.
| Loans Held for Investment (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||
| Balance | % of Total | Balance | % of Total | Balance | % of Total | ||||||||||
| Commercial and industrial | $ | 1,226,265 | 28.0 | % | $ | 1,140,138 | 26.5 | % | $ | 1,120,983 | 26.1 | % | |||
| Agricultural | 128,717 | 2.9 | 131,409 | 3.1 | 107,983 | 2.5 | |||||||||
| Commercial real estate | |||||||||||||||
| Construction and development | 280,918 | 6.4 | 293,280 | 6.8 | 351,646 | 8.2 | |||||||||
| Farmland | 186,494 | 4.3 | 180,633 | 4.2 | 183,641 | 4.3 | |||||||||
| Multifamily | 438,193 | 10.0 | 421,204 | 9.8 | 430,054 | 10.0 | |||||||||
| Other | 1,407,469 | 32.1 | 1,425,062 | 33.0 | 1,348,515 | 31.5 | |||||||||
| Total commercial real estate | 2,313,074 | 52.8 | 2,320,179 | 53.8 | 2,313,856 | 54.0 | |||||||||
| Residential real estate | |||||||||||||||
| One-to-four family first liens | 467,970 | 10.7 | 471,688 | 11.0 | 492,541 | 11.5 | |||||||||
| One-to-four family junior liens | 188,671 | 4.3 | 182,346 | 4.2 | 176,105 | 4.1 | |||||||||
| Total residential real estate | 656,641 | 15.0 | 654,034 | 15.2 | 668,646 | 15.6 | |||||||||
| Consumer | 56,491 | 1.3 | 58,424 | 1.4 | 75,764 | 1.8 | |||||||||
| Loans held for investment, net of unearned income | $ | 4,381,188 | 100.0 | % | $ | 4,304,184 | 100.0 | % | $ | 4,287,232 | 100.0 | % | |||
| Total commitments to extend credit | $ | 1,074,935 | $ | 1,080,300 | $ | 1,200,605 | |||||||||
Loans held for investment, net of unearned income at June 30, 2025 were $4.38 billion, increasing $77.0 million, or 1.8%, from $4.30 billion at March 31, 2025 and increasing $94.0 million, or 2.2%, from $4.29 billion at June 30, 2024. The increases across both periods were primarily driven by organic loan growth and higher line of credit usage.
| Investment Securities (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||
| Balance | % of Total | Balance | % of Total | Balance | % of Total | ||||||||||
| Available for sale | $ | 1,235,045 | 100.0 | % | $ | 1,305,530 | 100.0 | % | $ | 771,034 | 42.3 | % | |||
| Held to maturity | - | - | % | - | - | % | 1,053,080 | 57.7 | % | ||||||
| Total investment securities | $ | 1,235,045 | $ | 1,305,530 | $ | 1,824,114 | |||||||||
Investment securities at June 30, 2025 were $1.24 billion, decreasing $70.5 million from March 31, 2025 and decreasing $589.1 million from June 30, 2024. The decrease from the first quarter of 2025 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the second quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities.
| Deposits | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||
| (Dollars in thousands) | Balance | % of Total | Balance | % of Total | Balance | % of Total | |||||||||
| Noninterest bearing deposits | $ | 910,693 | 16.9 | % | $ | 903,714 | 16.5 | % | $ | 882,472 | 16.3 | % | |||
| Interest checking deposits | 1,206,096 | 22.5 | 1,283,328 | 23.3 | 1,284,243 | 23.7 | |||||||||
| Money market deposits | 971,048 | 18.0 | 1,002,066 | 18.3 | 1,043,376 | 19.3 | |||||||||
| Savings deposits | 851,636 | 15.8 | 877,348 | 16.0 | 745,639 | 13.8 | |||||||||
| Time deposits of $250 and under | 837,302 | 15.5 | 818,012 | 14.9 | 803,301 | 14.8 | |||||||||
| Total core deposits | 4,776,775 | 88.7 | 4,884,468 | 89.0 | 4,759,031 | 87.9 | |||||||||
| Brokered time deposits | 200,000 | 3.7 | 200,000 | 3.6 | 196,000 | 3.6 | |||||||||
| Time deposits over $250 | 411,323 | 7.6 | 404,674 | 7.4 | 457,388 | 8.5 | |||||||||
| Total deposits | $ | 5,388,098 | 100.0 | % | $ | 5,489,142 | 100.0 | % | $ | 5,412,419 | 100.0 | % | |||
Total deposits at June 30, 2025 were $5.39 billion, decreasing $101.0 million, or 1.8%, from $5.49 billion at March 31, 2025, and decreasing $24.3 million, or 0.4%, from $5.41 billion at June 30, 2024. Noninterest bearing deposits at June 30, 2025 were $910.7 million, an increase of $7.0 million from March 31, 2025 and an increase of $28.2 million from June 30, 2024.
| Borrowed Funds | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||
| (Dollars in thousands) | Balance | % of Total | Balance | % of Total | Balance | % of Total | |||||||||
| Short-term borrowings | $ | - | - | % | $ | 1,482 | 1.3 | % | $ | 414,684 | 78.3 | % | |||
| Long-term debt | 112,320 | 100.0 | % | 111,398 | 98.7 | % | 114,839 | 21.7 | % | ||||||
| Total borrowed funds | $ | 112,320 | $ | 112,880 | $ | 529,523 | |||||||||
Borrowed funds were $112.3 million at June 30, 2025, a decrease of $0.6 million from March 31, 2025 and a decrease of $417.2 million from June 30, 2024. The decrease compared to the linked quarter was due primarily to lower securities sold under agreements to repurchase. The decrease compared to June 30, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and scheduled payments on long-term debt.
In June 2025, the Company provided notice to the trustee of its intent to redeem all $65.0 million aggregate principal of its 5.75% fixed-to-floating rate subordinated notes due 2030. To complete the redemption, the Company expects to utilize a combination of cash on hand and proceeds from a $50.0 million senior term note. The senior term note is expected to be structured as a 5-year maturity, 7-year amortization facility, and bear interest at a floating rate of 1-month term SOFR plus 1.75%. The financing pursuant to the senior note is expected to close on July 29, 2025, and the redemption is expected to occur on July 30, 2025.
| Capital | June 30, | March 31, | June 30, | ||||||||
| (Dollars in thousands) | 2025 (1) | 2025 | 2024 | ||||||||
| Total shareholders' equity | $ | 589,040 | $ | 579,625 | $ | 543,286 | |||||
| Accumulated other comprehensive loss | (57,557 | ) | (63,098 | ) | (58,135 | ) | |||||
| MidWestOne Financial Group, Inc. Consolidated | |||||||||||
| Tier 1 leverage to average assets ratio | 9.62 | % | 9.50 | % | 8.29 | % | |||||
| Common equity tier 1 capital to risk-weighted assets ratio | 11.02 | % | 10.97 | % | 9.56 | % | |||||
| Tier 1 capital to risk-weighted assets ratio | 11.88 | % | 11.84 | % | 10.35 | % | |||||
| Total capital to risk-weighted assets ratio | 14.44 | % | 14.34 | % | 12.62 | % | |||||
| MidWestOne Bank | |||||||||||
| Tier 1 leverage to average assets ratio | 10.43 | % | 10.42 | % | 9.24 | % | |||||
| Common equity tier 1 capital to risk-weighted assets ratio | 12.95 | % | 13.02 | % | 11.55 | % | |||||
| Tier 1 capital to risk-weighted assets ratio | 12.95 | % | 13.02 | % | 11.55 | % | |||||
| Total capital to risk-weighted assets ratio | 14.20 | % | 14.21 | % | 12.61 | % | |||||
| (1) Regulatory capital ratios for June 30, 2025 are preliminary | |||||||||||
Total shareholders' equity at June 30, 2025 increased $9.4 million from March 31, 2025, driven primarily by a decrease in accumulated other comprehensive loss and an increase in retained earnings, partially offset by an increase in treasury stock. Total shareholders' equity at June 30, 2025 increased $45.8 million from June 30, 2024, primarily due to increases in common stock and additional paid-in-capital stemming from the common equity capital raise in the third quarter of 2024, and partially offset by a decrease in retained earnings.
On July 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable September 16, 2025, to shareholders of record at the close of business on September 2, 2025.
The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. Under such program, the Company repurchased 63,402 shares of its common stock at an average price of $27.65 per share and a total cost of $1.8 million during the period March 31, 2025 through June 30, 2025. No shares were repurchased during the subsequent period through July 24, 2025. As of June 30, 2025, $13.2 million remained available under this program.
CREDIT QUALITY REVIEW
| Credit Quality | As of or For the Three Months Ended | ||||||||||
| June 30, | March 31, | June 30, | |||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | ||||||||
| Credit loss expense related to loans | $ | 12,089 | $ | 1,787 | $ | 467 | |||||
| Net charge-offs | 189 | 3,087 | 524 | ||||||||
| Allowance for credit losses | 65,800 | 53,900 | 53,900 | ||||||||
| Pass | $ | 4,155,385 | $ | 4,068,707 | $ | 3,991,692 | |||||
| Special Mention | 98,998 | 121,494 | 146,253 | ||||||||
| Classified | 126,805 | 113,983 | 149,287 | ||||||||
| Criticized | 225,803 | 235,477 | 295,540 | ||||||||
| Loans greater than 30 days past due and accruing | $ | 12,161 | $ | 6,119 | $ | 9,358 | |||||
| Nonperforming loans | $ | 37,192 | $ | 17,470 | $ | 25,128 | |||||
| Nonperforming assets | 40,606 | 20,889 | 31,181 | ||||||||
| Net charge-off ratio(1) | 0.02 | % | 0.29 | % | 0.05 | % | |||||
| Classified loans ratio(2) | 2.89 | % | 2.65 | % | 3.48 | % | |||||
| Criticized loans ratio(3) | 5.15 | % | 5.47 | % | 6.89 | % | |||||
| Nonperforming loans ratio(4) | 0.85 | % | 0.41 | % | 0.59 | % | |||||
| Nonperforming assets ratio(5) | 0.66 | % | 0.33 | % | 0.47 | % | |||||
| Allowance for credit losses ratio(6) | 1.50 | % | 1.25 | % | 1.26 | % | |||||
| Allowance for credit losses to nonaccrual loans ratio(7) | 179.19 | % | 309.47 | % | 218.26 | % | |||||
| (1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period. | |||||||||||
| (2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||
| (3) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||
| (4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||
| (5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period. | |||||||||||
| (6) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||
| (7) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period. | |||||||||||
Compared to the linked quarter, both nonperforming loans and nonperforming assets increased $19.7 million, primarily due to a single $24.0 million CRE office credit, partially offset by the sale of a $3.9 million CRE office credit. Special mention loan balances decreased $22.5 million, or 19%, while classified loan balances increased $12.8 million, or 11%. Compared to the prior year period, nonperforming loans and nonperforming assets increased $12.1 million and $9.4 million, respectively. Special mention loan balances decreased $47.3 million, or 32%, while classified loan balances decreased $22.5 million, or 15%. The net charge-off ratio declined 27 bps from the linked quarter and 3 bps from the same period in the prior year.
As of June 30, 2025, the allowance for credit losses was $65.8 million and the allowance for credit losses ratio was 1.50%, compared with $53.9 million and 1.25%, respectively, at March 31, 2025. Credit loss expense of $11.9 million in the second quarter of 2025 primarily reflected the specific reserve established in connection with the single CRE office credit previously discussed.
| Nonperforming Loans Roll Forward (Dollars in thousands) | Nonaccrual | 90+ Days Past Due & Still Accruing | Total | ||||||||
| Balance at March 31, 2025 | $ | 17,417 | $ | 53 | $ | 17,470 | |||||
| Loans placed on nonaccrual or 90+ days past due & still accruing | 25,279 | 569 | 25,848 | ||||||||
| Proceeds related to repayment or sale | (4,973 | ) | - | (4,973 | ) | ||||||
| Loans returned to accrual status or no longer past due | (632 | ) | - | (632 | ) | ||||||
| Charge-offs | (187 | ) | (151 | ) | (338 | ) | |||||
| Transfers to foreclosed assets | (183 | ) | - | (183 | ) | ||||||
| Balance at June 30, 2025 | $ | 36,721 | $ | 471 | $ | 37,192 | |||||
CONFERENCE CALL DETAILS
The Company will host a conference call for investors at 11:00 a.m. CT on Friday, July 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login'show=a6070726&confId=80381. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 293794 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until October 23, 2025 by calling 1-866-813-9403 and using the replay access code of 763204. A transcript of the call will also be available on the Company's web site (www.midwestonefinancial.com) within three business days of the call.
ABOUT MIDWESTONE FINANCIAL GROUP, INC.
MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol "MOFG".
Cautionary Note Regarding Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are "forward-looking" and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "should," "could," "would," "plans," "goals," "intend," "project," "estimate," "forecast," "may" or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.
Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, DEI and ESG initiative trends, changes in consumer protection policies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company's cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (20) changes in the business and economic conditions generally and in the financial services industry, and the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; (21) the occurrence of fraudulent activity, breaches, or failures of our or our third party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.
MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED BALANCE SHEETS
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 78,696 | $ | 68,545 | $ | 71,803 | $ | 72,173 | $ | 66,228 | |||||||||
| Interest earning deposits in banks | 90,749 | 182,360 | 133,092 | 129,695 | 35,340 | ||||||||||||||
| Total cash and cash equivalents | 169,445 | 250,905 | 204,895 | 201,868 | 101,568 | ||||||||||||||
| Debt securities available for sale at fair value | 1,235,045 | 1,305,530 | 1,328,433 | 1,623,104 | 771,034 | ||||||||||||||
| Held to maturity securities at amortized cost | - | - | - | - | 1,053,080 | ||||||||||||||
| Total securities | 1,235,045 | 1,305,530 | 1,328,433 | 1,623,104 | 1,824,114 | ||||||||||||||
| Loans held for sale | 16,812 | 13,836 | 749 | 3,283 | 2,850 | ||||||||||||||
| Gross loans held for investment | 4,391,426 | 4,315,546 | 4,328,413 | 4,344,559 | 4,304,619 | ||||||||||||||
| Unearned income, net | (10,238 | ) | (11,362 | ) | (12,786 | ) | (15,803 | ) | (17,387 | ) | |||||||||
| Loans held for investment, net of unearned income | 4,381,188 | 4,304,184 | 4,315,627 | 4,328,756 | 4,287,232 | ||||||||||||||
| Allowance for credit losses | (65,800 | ) | (53,900 | ) | (55,200 | ) | (54,000 | ) | (53,900 | ) | |||||||||
| Total loans held for investment, net | 4,315,388 | 4,250,284 | 4,260,427 | 4,274,756 | 4,233,332 | ||||||||||||||
| Premises and equipment, net | 89,910 | 90,031 | 90,851 | 90,750 | 91,793 | ||||||||||||||
| Goodwill | 69,788 | 69,788 | 69,788 | 69,788 | 69,388 | ||||||||||||||
| Other intangible assets, net | 22,359 | 23,611 | 25,019 | 26,469 | 27,939 | ||||||||||||||
| Foreclosed assets, net | 3,414 | 3,419 | 3,337 | 3,583 | 6,053 | ||||||||||||||
| Other assets | 238,612 | 246,990 | 252,830 | 258,881 | 224,621 | ||||||||||||||
| Total assets | $ | 6,160,773 | $ | 6,254,394 | $ | 6,236,329 | $ | 6,552,482 | $ | 6,581,658 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Noninterest bearing deposits | $ | 910,693 | $ | 903,714 | $ | 951,423 | $ | 917,715 | $ | 882,472 | |||||||||
| Interest bearing deposits | 4,477,405 | 4,585,428 | 4,526,559 | 4,451,012 | 4,529,947 | ||||||||||||||
| Total deposits | 5,388,098 | 5,489,142 | 5,477,982 | 5,368,727 | 5,412,419 | ||||||||||||||
| Short-term borrowings | - | 1,482 | 3,186 | 410,630 | 414,684 | ||||||||||||||
| Long-term debt | 112,320 | 111,398 | 113,376 | 115,051 | 114,839 | ||||||||||||||
| Other liabilities | 71,315 | 72,747 | 82,089 | 95,836 | 96,430 | ||||||||||||||
| Total liabilities | 5,571,733 | 5,674,769 | 5,676,633 | 5,990,244 | 6,038,372 | ||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Common stock | 21,580 | 21,580 | 21,580 | 21,580 | 16,581 | ||||||||||||||
| Additional paid-in capital | 414,485 | 414,258 | 414,987 | 414,965 | 300,831 | ||||||||||||||
| Retained earnings | 232,718 | 227,790 | 217,776 | 206,490 | 306,030 | ||||||||||||||
| Treasury stock | (22,186 | ) | (20,905 | ) | (21,885 | ) | (21,955 | ) | (22,021 | ) | |||||||||
| Accumulated other comprehensive loss | (57,557 | ) | (63,098 | ) | (72,762 | ) | (58,842 | ) | (58,135 | ) | |||||||||
| Total shareholders' equity | 589,040 | 579,625 | 559,696 | 562,238 | 543,286 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 6,160,773 | $ | 6,254,394 | $ | 6,236,329 | $ | 6,552,482 | $ | 6,581,658 | |||||||||
MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | June 30, | March 31, | December 31, | September 30, | June 30, | June 30, | June 30, | ||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | 2025 | 2024 | |||||||||||||||
| Interest income | |||||||||||||||||||||
| Loans, including fees | $ | 62,276 | $ | 59,462 | $ | 62,458 | $ | 62,521 | $ | 61,643 | $ | 121,738 | $ | 119,590 | |||||||
| Taxable investment securities | 12,928 | 13,327 | 11,320 | 8,779 | 9,228 | 26,255 | 18,688 | ||||||||||||||
| Tax-exempt investment securities | 699 | 703 | 728 | 1,611 | 1,663 | 1,402 | 3,373 | ||||||||||||||
| Other | 1,517 | 1,247 | 3,761 | 785 | 242 | 2,764 | 660 | ||||||||||||||
| Total interest income | 77,420 | 74,739 | 78,267 | 73,696 | 72,776 | 152,159 | 142,311 | ||||||||||||||
| Interest expense | |||||||||||||||||||||
| Deposits | 25,665 | 25,484 | 27,324 | 29,117 | 28,942 | 51,149 | 56,668 | ||||||||||||||
| Short-term borrowings | 19 | 25 | 115 | 5,043 | 5,409 | 44 | 10,384 | ||||||||||||||
| Long-term debt | 1,754 | 1,791 | 1,890 | 2,015 | 2,078 | 3,545 | 4,181 | ||||||||||||||
| Total interest expense | 27,438 | 27,300 | 29,329 | 36,175 | 36,429 | 54,738 | 71,233 | ||||||||||||||
| Net interest income | 49,982 | 47,439 | 48,938 | 37,521 | 36,347 | 97,421 | 71,078 | ||||||||||||||
| Credit loss expense | 11,889 | 1,687 | 1,291 | 1,535 | 1,267 | 13,576 | 5,956 | ||||||||||||||
| Net interest income after credit loss expense | 38,093 | 45,752 | 47,647 | 35,986 | 35,080 | 83,845 | 65,122 | ||||||||||||||
| Noninterest income | |||||||||||||||||||||
| Investment services and trust activities | 3,705 | 3,544 | 3,779 | 3,410 | 3,504 | 7,249 | 7,007 | ||||||||||||||
| Service charges and fees | 2,190 | 2,131 | 2,159 | 2,170 | 2,156 | 4,321 | 4,300 | ||||||||||||||
| Card revenue | 1,934 | 1,744 | 1,833 | 1,935 | 1,907 | 3,678 | 3,850 | ||||||||||||||
| Loan revenue | 1,417 | 1,194 | 1,841 | 760 | 1,525 | 2,611 | 2,381 | ||||||||||||||
| Bank-owned life insurance | 677 | 1,057 | 719 | 879 | 668 | 1,734 | 1,328 | ||||||||||||||
| Investment securities gains (losses), net | - | 33 | 161 | (140,182 | ) | 33 | 33 | 69 | |||||||||||||
| Other | 326 | 433 | 345 | 640 | 11,761 | 759 | 12,369 | ||||||||||||||
| Total noninterest income (loss) | 10,249 | 10,136 | 10,837 | (130,388 | ) | 21,554 | 20,385 | 31,304 | |||||||||||||
| Noninterest expense | |||||||||||||||||||||
| Compensation and employee benefits | 21,011 | 21,212 | 20,684 | 19,943 | 20,985 | 42,223 | 41,915 | ||||||||||||||
| Occupancy expense of premises, net | 2,540 | 2,588 | 2,772 | 2,443 | 2,435 | 5,128 | 5,248 | ||||||||||||||
| Equipment | 2,550 | 2,426 | 2,688 | 2,486 | 2,530 | 4,976 | 5,130 | ||||||||||||||
| Legal and professional | 2,153 | 2,226 | 2,534 | 2,261 | 2,253 | 4,379 | 4,312 | ||||||||||||||
| Data processing | 1,486 | 1,698 | 1,719 | 1,580 | 1,645 | 3,184 | 3,005 | ||||||||||||||
| Marketing | 762 | 552 | 793 | 619 | 636 | 1,314 | 1,234 | ||||||||||||||
| Amortization of intangibles | 1,252 | 1,408 | 1,449 | 1,470 | 1,593 | 2,660 | 3,230 | ||||||||||||||
| FDIC insurance | 851 | 917 | 980 | 923 | 1,051 | 1,768 | 1,993 | ||||||||||||||
| Communications | 161 | 159 | 154 | 159 | 191 | 320 | 387 | ||||||||||||||
| Foreclosed assets, net | 83 | 74 | 56 | 330 | 138 | 157 | 496 | ||||||||||||||
| Other | 2,918 | 3,033 | 3,543 | 3,584 | 2,304 | 5,951 | 4,376 | ||||||||||||||
| Total noninterest expense | 35,767 | 36,293 | 37,372 | 35,798 | 35,761 | 72,060 | 71,326 | ||||||||||||||
| Income (loss) before income tax expense (benefit) | 12,575 | 19,595 | 21,112 | (130,200 | ) | 20,873 | 32,170 | 25,100 | |||||||||||||
| Income tax expense (benefit) | 2,595 | 4,457 | 4,782 | (34,493 | ) | 5,054 | 7,052 | 6,012 | |||||||||||||
| Net income (loss) | $ | 9,980 | $ | 15,138 | $ | 16,330 | $ | (95,707 | ) | $ | 15,819 | $ | 25,118 | $ | 19,088 | ||||||
| Earnings (loss) per common share | |||||||||||||||||||||
| Basic | $ | 0.48 | $ | 0.73 | $ | 0.79 | $ | (6.05 | ) | $ | 1.00 | $ | 1.21 | $ | 1.21 | ||||||
| Diluted | $ | 0.48 | $ | 0.73 | $ | 0.78 | $ | (6.05 | ) | $ | 1.00 | $ | 1.20 | $ | 1.21 | ||||||
| Weighted average basic common shares outstanding | 20,816 | 20,797 | 20,776 | 15,829 | 15,763 | 20,807 | 15,743 | ||||||||||||||
| Weighted average diluted common shares outstanding | 20,843 | 20,849 | 20,851 | 15,829 | 15,781 | 20,846 | 15,775 | ||||||||||||||
| Dividends paid per common share | $ | 0.2425 | $ | 0.2425 | $ | 0.2425 | $ | 0.2425 | $ | 0.2425 | $ | 0.4850 | $ | 0.4850 | |||||||
MIDWESTONE FINANCIAL GROUP, INC.
FINANCIAL STATISTICS
| As of or for the Three Months Ended | As of or for the Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| (Dollars in thousands, except per share amounts) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Earnings: | |||||||||||||||||||
| Net interest income | $ | 49,982 | $ | 47,439 | $ | 36,347 | $ | 97,421 | $ | 71,078 | |||||||||
| Noninterest income | 10,249 | 10,136 | 21,554 | 20,385 | 31,304 | ||||||||||||||
| Total revenue, net of interest expense | 60,231 | 57,575 | 57,901 | 117,806 | 102,382 | ||||||||||||||
| Credit loss expense | 11,889 | 1,687 | 1,267 | 13,576 | 5,956 | ||||||||||||||
| Noninterest expense | 35,767 | 36,293 | 35,761 | 72,060 | 71,326 | ||||||||||||||
| Income before income tax expense | 12,575 | 19,595 | 20,873 | 32,170 | 25,100 | ||||||||||||||
| Income tax expense | 2,595 | 4,457 | 5,054 | 7,052 | 6,012 | ||||||||||||||
| Net income | $ | 9,980 | $ | 15,138 | $ | 15,819 | $ | 25,118 | $ | 19,088 | |||||||||
| Pre-tax pre-provision net revenue(1) | $ | 24,464 | $ | 21,282 | $ | 22,140 | $ | 45,746 | $ | 31,056 | |||||||||
| Adjusted earnings(1) | 10,176 | 15,301 | 8,132 | 25,479 | 12,621 | ||||||||||||||
| Per Share Data: | |||||||||||||||||||
| Diluted earnings | $ | 0.48 | $ | 0.73 | $ | 1.00 | $ | 1.20 | $ | 1.21 | |||||||||
| Adjusted earnings(1) | 0.49 | 0.73 | 0.52 | 1.22 | 0.80 | ||||||||||||||
| Book value | 28.36 | 27.85 | 34.44 | 28.36 | 34.44 | ||||||||||||||
| Tangible book value(1) | 23.92 | 23.36 | 28.27 | 23.92 | 28.27 | ||||||||||||||
| Ending Balance Sheet: | |||||||||||||||||||
| Total assets | $ | 6,160,773 | $ | 6,254,394 | $ | 6,581,658 | $ | 6,160,773 | $ | 6,581,658 | |||||||||
| Loans held for investment, net of unearned income | 4,381,188 | 4,304,184 | 4,287,232 | 4,381,188 | 4,287,232 | ||||||||||||||
| Total securities | 1,235,045 | 1,305,530 | 1,824,114 | 1,235,045 | 1,824,114 | ||||||||||||||
| Total deposits | 5,388,098 | 5,489,142 | 5,412,419 | 5,388,098 | 5,412,419 | ||||||||||||||
| Short-term borrowings | - | 1,482 | 414,684 | - | 414,684 | ||||||||||||||
| Long-term debt | 112,320 | 111,398 | 114,839 | 112,320 | 114,839 | ||||||||||||||
| Total shareholders' equity | 589,040 | 579,625 | 543,286 | 589,040 | 543,286 | ||||||||||||||
| Average Balance Sheet: | |||||||||||||||||||
| Average total assets | $ | 6,172,649 | $ | 6,168,546 | $ | 6,713,573 | $ | 6,170,609 | $ | 6,674,476 | |||||||||
| Average total loans | 4,370,196 | 4,290,710 | 4,419,697 | 4,330,659 | 4,358,957 | ||||||||||||||
| Average total deposits | 5,398,916 | 5,398,819 | 5,514,924 | 5,398,868 | 5,498,020 | ||||||||||||||
| Financial Ratios: | |||||||||||||||||||
| Return on average assets | 0.65 | % | 1.00 | % | 0.95 | % | 0.82 | % | 0.58 | % | |||||||||
| Return on average equity | 6.81 | % | 10.74 | % | 11.91 | % | 8.74 | % | 7.23 | % | |||||||||
| Return on average tangible equity(1) | 8.84 | % | 13.75 | % | 15.74 | % | 11.24 | % | 9.98 | % | |||||||||
| Efficiency ratio(1) | 56.20 | % | 59.38 | % | 56.29 | % | 57.75 | % | 62.83 | % | |||||||||
| Net interest margin, tax equivalent(1) | 3.57 | % | 3.44 | % | 2.41 | % | 3.51 | % | 2.37 | % | |||||||||
| Loans to deposits ratio | 81.31 | % | 78.41 | % | 79.21 | % | 81.31 | % | 79.21 | % | |||||||||
| CET1 Ratio | 11.02 | % | 10.97 | % | 9.56 | % | 11.02 | % | 9.56 | % | |||||||||
| Common equity ratio | 9.56 | % | 9.27 | % | 8.25 | % | 9.56 | % | 8.25 | % | |||||||||
| Tangible common equity ratio(1) | 8.19 | % | 7.89 | % | 6.88 | % | 8.19 | % | 6.88 | % | |||||||||
| Credit Risk Profile: | |||||||||||||||||||
| Total nonperforming loans | $ | 37,192 | $ | 17,470 | $ | 25,128 | $ | 37,192 | $ | 25,128 | |||||||||
| Nonperforming loans ratio | 0.85 | % | 0.41 | % | 0.59 | % | 0.85 | % | 0.59 | % | |||||||||
| Total nonperforming assets | $ | 40,606 | $ | 20,889 | $ | 31,181 | $ | 40,606 | $ | 31,181 | |||||||||
| Nonperforming assets ratio | 0.66 | % | 0.33 | % | 0.47 | % | 0.66 | % | 0.47 | % | |||||||||
| Net charge-offs | $ | 189 | $ | 3,087 | $ | 524 | $ | 3,276 | $ | 713 | |||||||||
| Net charge-off ratio | 0.02 | % | 0.29 | % | 0.05 | % | 0.15 | % | 0.03 | % | |||||||||
| Allowance for credit losses | $ | 65,800 | $ | 53,900 | $ | 53,900 | $ | 65,800 | $ | 53,900 | |||||||||
| Allowance for credit losses ratio | 1.50 | % | 1.25 | % | 1.26 | % | 1.50 | % | 1.26 | % | |||||||||
| Allowance for credit losses to nonaccrual ratio | 179.19 | % | 309.47 | % | 218.26 | % | 179.19 | % | 218.26 | % | |||||||||
| (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. | |||||||||||||||||||
MIDWESTONE FINANCIAL GROUP, INC.
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
| Three Months Ended | ||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | |||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||
| Loans, including fees (1)(2)(3) | $ | 4,370,196 | $ | 63,298 | 5.81 | % | $ | 4,290,710 | $ | 60,443 | 5.71 | % | $ | 4,419,697 | $ | 62,581 | 5.69 | % | ||||||||
| Taxable investment securities | 1,168,048 | 12,928 | 4.44 | % | 1,207,844 | 13,327 | 4.47 | % | 1,520,253 | 9,228 | 2.44 | % | ||||||||||||||
| Tax-exempt investment securities (2)(4) | 102,792 | 859 | 3.35 | % | 105,563 | 865 | 3.32 | % | 322,092 | 2,040 | 2.55 | % | ||||||||||||||
| Total securities held for investment(2) | 1,270,840 | 13,787 | 4.35 | % | 1,313,407 | 14,192 | 4.38 | % | 1,842,345 | 11,268 | 2.46 | % | ||||||||||||||
| Other | 104,628 | 1,517 | 5.82 | % | 124,133 | 1,247 | 4.07 | % | 20,452 | 242 | 4.76 | % | ||||||||||||||
| Total interest earning assets(2) | $ | 5,745,664 | $ | 78,602 | 5.49 | % | $ | 5,728,250 | $ | 75,882 | 5.37 | % | $ | 6,282,494 | $ | 74,091 | 4.74 | % | ||||||||
| Other assets | 426,985 | 440,296 | 431,079 | |||||||||||||||||||||||
| Total assets | $ | 6,172,649 | $ | 6,168,546 | $ | 6,713,573 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
| Interest checking deposits | $ | 1,221,266 | $ | 2,101 | 0.69 | % | $ | 1,240,586 | $ | 2,127 | 0.70 | % | $ | 1,297,356 | $ | 3,145 | 0.97 | % | ||||||||
| Money market deposits | 986,029 | 6,057 | 2.46 | % | 1,002,743 | 6,333 | 2.56 | % | 1,072,688 | 7,821 | 2.93 | % | ||||||||||||||
| Savings deposits | 843,223 | 3,161 | 1.50 | % | 835,731 | 3,057 | 1.48 | % | 738,773 | 2,673 | 1.46 | % | ||||||||||||||
| Time deposits | 1,436,301 | 14,346 | 4.01 | % | 1,397,595 | 13,967 | 4.05 | % | 1,470,956 | 15,303 | 4.18 | % | ||||||||||||||
| Total interest bearing deposits | 4,486,819 | 25,665 | 2.29 | % | 4,476,655 | 25,484 | 2.31 | % | 4,579,773 | 28,942 | 2.54 | % | ||||||||||||||
| Securities sold under agreements to repurchase | 896 | 1 | 0.45 | % | 2,705 | 5 | 0.75 | % | 5,300 | 10 | 0.76 | % | ||||||||||||||
| Other short-term borrowings | - | 18 | - | % | - | 20 | - | % | 442,546 | 5,399 | 4.91 | % | ||||||||||||||
| Total short-term borrowings | 896 | 19 | 8.51 | % | 2,705 | 25 | 3.75 | % | 447,846 | 5,409 | 4.86 | % | ||||||||||||||
| Long-term debt | 112,035 | 1,754 | 6.28 | % | 113,364 | 1,791 | 6.41 | % | 120,256 | 2,078 | 6.95 | % | ||||||||||||||
| Total borrowed funds | 112,931 | 1,773 | 6.30 | % | 116,069 | 1,816 | 6.35 | % | 568,102 | 7,487 | 5.30 | % | ||||||||||||||
| Total interest bearing liabilities | $ | 4,599,750 | $ | 27,438 | 2.39 | % | $ | 4,592,724 | $ | 27,300 | 2.41 | % | $ | 5,147,875 | $ | 36,429 | 2.85 | % | ||||||||
| Noninterest bearing deposits | 912,097 | 922,164 | 935,151 | |||||||||||||||||||||||
| Other liabilities | 73,094 | 82,280 | 96,553 | |||||||||||||||||||||||
| Shareholders' equity | 587,708 | 571,378 | 533,994 | |||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 6,172,649 | $ | 6,168,546 | $ | 6,713,573 | ||||||||||||||||||||
| Net interest income(2) | $ | 51,164 | $ | 48,582 | $ | 37,662 | ||||||||||||||||||||
| Net interest spread(2) | 3.10 | % | 2.96 | % | 1.89 | % | ||||||||||||||||||||
| Net interest margin(2) | 3.57 | % | 3.44 | % | 2.41 | % | ||||||||||||||||||||
| Total deposits(5) | $ | 5,398,916 | $ | 25,665 | 1.91 | % | $ | 5,398,819 | $ | 25,484 | 1.91 | % | $ | 5,514,924 | $ | 28,942 | 2.11 | % | ||||||||
| Cost of funds(6) | 2.00 | % | 2.01 | % | 2.41 | % | ||||||||||||||||||||
| (1) Average balance includes nonaccrual loans. (2) Tax equivalent. The federal statutory tax rate utilized was 21%. (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $272 thousand, $256 thousand, and $337 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Loan purchase discount accretion was $1.1 million, $1.2 million, and $1.3 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Tax equivalent adjustments were $1.0 million, $981 thousand, and $938 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (4) Interest income includes tax equivalent adjustments of $160 thousand, $162 thousand, and $377 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds. | ||||||||||||||||||||||||||
MIDWESTONE FINANCIAL GROUP, INC.
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
| Six Months Ended | |||||||||||||||||
| June 30, 2025 | June 30, 2024 | ||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | |||||||||||
| ASSETS | |||||||||||||||||
| Loans, including fees (1)(2)(3) | $ | 4,330,659 | $ | 123,741 | 5.76 | % | $ | 4,358,957 | $ | 121,448 | 5.60 | % | |||||
| Taxable investment securities | 1,187,836 | 26,255 | 4.46 | % | 1,538,928 | 18,688 | 2.44 | % | |||||||||
| Tax-exempt investment securities (2)(4) | 104,170 | 1,724 | 3.34 | % | 325,414 | 4,137 | 2.56 | % | |||||||||
| Total securities held for investment(2) | 1,292,006 | 27,979 | 4.37 | % | 1,864,342 | 22,825 | 2.46 | % | |||||||||
| Other | 114,327 | 2,764 | 4.88 | % | 25,529 | 660 | 5.20 | % | |||||||||
| Total interest earning assets(2) | $ | 5,736,992 | $ | 154,484 | 5.43 | % | $ | 6,248,828 | $ | 144,933 | 4.66 | % | |||||
| Other assets | 433,617 | 425,648 | |||||||||||||||
| Total assets | $ | 6,170,609 | $ | 6,674,476 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||
| Interest checking deposits | $ | 1,230,873 | $ | 4,228 | 0.69 | % | $ | 1,299,413 | $ | 6,035 | 0.93 | % | |||||
| Money market deposits | 994,340 | 12,390 | 2.51 | % | 1,087,616 | 15,886 | 2.94 | % | |||||||||
| Savings deposits | 839,498 | 6,218 | 1.49 | % | 716,458 | 4,720 | 1.32 | % | |||||||||
| Time deposits | 1,417,054 | 28,313 | 4.03 | % | 1,458,969 | 30,027 | 4.14 | % | |||||||||
| Total interest bearing deposits | 4,481,765 | 51,149 | 2.30 | % | 4,562,456 | 56,668 | 2.50 | % | |||||||||
| Securities sold under agreements to repurchase | 1,795 | 6 | 0.67 | % | 5,315 | 21 | 0.79 | % | |||||||||
| Other short-term borrowings | - | 38 | - | % | 426,036 | 10,363 | 4.89 | % | |||||||||
| Total short-term borrowings | 1,795 | 44 | 4.94 | % | 431,351 | 10,384 | 4.84 | % | |||||||||
| Long-term debt | 112,696 | 3,545 | 6.34 | % | 121,761 | 4,181 | 6.91 | % | |||||||||
| Total borrowed funds | 114,491 | 3,589 | 6.32 | % | 553,112 | 14,565 | 5.30 | % | |||||||||
| Total interest bearing liabilities | $ | 4,596,256 | $ | 54,738 | 2.40 | % | $ | 5,115,568 | $ | 71,233 | 2.80 | % | |||||
| Noninterest bearing deposits | 917,103 | 935,564 | |||||||||||||||
| Other liabilities | 77,662 | 92,581 | |||||||||||||||
| Shareholders' equity | 579,588 | 530,763 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 6,170,609 | $ | 6,674,476 | |||||||||||||
| Net interest income(2) | $ | 99,746 | $ | 73,700 | |||||||||||||
| Net interest spread(2) | 3.03 | % | 1.86 | % | |||||||||||||
| Net interest margin(2) | 3.51 | % | 2.37 | % | |||||||||||||
| Total deposits(5) | $ | 5,398,868 | $ | 51,149 | 1.91 | % | $ | 5,498,020 | $ | 56,668 | 2.07 | % | |||||
| Cost of funds(6) | 2.00 | % | 2.37 | % | |||||||||||||
| (1) Average balance includes nonaccrual loans. (2) Tax equivalent. The federal statutory tax rate utilized was 21%. (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $528 thousand and $574 thousand for the six months ended June 30, 2025 and June 30, 2024, respectively. Loan purchase discount accretion was $2.3 million and $2.4 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Tax equivalent adjustments were $2.0 million and $1.9 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (4) Interest income includes tax equivalent adjustments of $0.3 million and $0.8 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds. | |||||||||||||||||
Non-GAAP Measures
This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share, and pre-tax pre-provision net revenue. Management believes these measures provide investors with useful information regarding the Company's profitability, financial condition and capital adequacy, consistent with how management evaluates the Company's financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.
| Tangible Common Equity/Tangible Book Value | ||||||||||||||||||||
| per Share/Tangible Common Equity Ratio | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| (Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Total shareholders' equity | $ | 589,040 | $ | 579,625 | $ | 559,696 | $ | 562,238 | $ | 543,286 | ||||||||||
| Intangible assets, net | (92,147 | ) | (93,399 | ) | (94,807 | ) | (96,257 | ) | (97,327 | ) | ||||||||||
| Tangible common equity | $ | 496,893 | $ | 486,226 | $ | 464,889 | $ | 465,981 | $ | 445,959 | ||||||||||
| Total assets | $ | 6,160,773 | $ | 6,254,394 | $ | 6,236,329 | $ | 6,552,482 | $ | 6,581,658 | ||||||||||
| Intangible assets, net | (92,147 | ) | (93,399 | ) | (94,807 | ) | (96,257 | ) | (97,327 | ) | ||||||||||
| Tangible assets | $ | 6,068,626 | $ | 6,160,995 | $ | 6,141,522 | $ | 6,456,225 | $ | 6,484,331 | ||||||||||
| Book value per share | $ | 28.36 | $ | 27.85 | $ | 26.94 | $ | 27.06 | $ | 34.44 | ||||||||||
| Tangible book value per share(1) | $ | 23.92 | $ | 23.36 | $ | 22.37 | $ | 22.43 | $ | 28.27 | ||||||||||
| Shares outstanding | 20,769,577 | 20,815,715 | 20,777,485 | 20,774,919 | 15,773,468 | |||||||||||||||
| Common equity ratio | 9.56 | % | 9.27 | % | 8.97 | % | 8.58 | % | 8.25 | % | ||||||||||
| Tangible common equity ratio(2) | 8.19 | % | 7.89 | % | 7.57 | % | 7.22 | % | 6.88 | % | ||||||||||
| (1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets. | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| Return on Average Tangible Equity | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Net income | $ | 9,980 | $ | 15,138 | $ | 15,819 | $ | 25,118 | $ | 19,088 | ||||||||||
| Intangible amortization, net of tax(1) | 931 | 1,047 | 1,195 | 1,978 | 2,423 | |||||||||||||||
| Tangible net income | $ | 10,911 | $ | 16,185 | $ | 17,014 | $ | 27,096 | $ | 21,511 | ||||||||||
| Average shareholders' equity | $ | 587,708 | $ | 571,378 | $ | 533,994 | $ | 579,588 | $ | 530,763 | ||||||||||
| Average intangible assets, net | (92,733 | ) | (94,169 | ) | (99,309 | ) | (93,447 | ) | (97,302 | ) | ||||||||||
| Average tangible equity | $ | 494,975 | $ | 477,209 | $ | 434,685 | $ | 486,141 | $ | 433,461 | ||||||||||
| Return on average equity | 6.81 | % | 10.74 | % | 11.91 | % | 8.74 | % | 7.23 | % | ||||||||||
| Return on average tangible equity(2) | 8.84 | % | 13.75 | % | 15.74 | % | 11.24 | % | 9.98 | % | ||||||||||
| (1) The income tax rate utilized was the blended marginal tax rate. (2) Annualized tangible net income divided by average tangible equity. | ||||||||||||||||||||
| Net Interest Margin, Tax Equivalent/ Core Net Interest Margin | Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Net interest income | $ | 49,982 | $ | 47,439 | $ | 36,347 | $ | 97,421 | $ | 71,078 | ||||||||||
| Tax equivalent adjustments: | ||||||||||||||||||||
| Loans(1) | 1,022 | 981 | 938 | 2,003 | 1,858 | |||||||||||||||
| Securities(1) | 160 | 162 | 377 | 322 | 764 | |||||||||||||||
| Net interest income, tax equivalent | $ | 51,164 | $ | 48,582 | $ | 37,662 | $ | 99,746 | $ | 73,700 | ||||||||||
| Loan purchase discount accretion | (1,142 | ) | (1,166 | ) | (1,261 | ) | (2,308 | ) | (2,413 | ) | ||||||||||
| Core net interest income | $ | 50,022 | $ | 47,416 | $ | 36,401 | $ | 97,438 | $ | 71,287 | ||||||||||
| Net interest margin | 3.49 | % | 3.36 | % | 2.33 | % | 3.42 | % | 2.29 | % | ||||||||||
| Net interest margin, tax equivalent(2) | 3.57 | % | 3.44 | % | 2.41 | % | 3.51 | % | 2.37 | % | ||||||||||
| Core net interest margin(3) | 3.49 | % | 3.36 | % | 2.33 | % | 3.42 | % | 2.29 | % | ||||||||||
| Average interest earning assets | $ | 5,745,664 | $ | 5,728,250 | $ | 6,282,494 | $ | 5,736,992 | $ | 6,248,828 | ||||||||||
| (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent net interest income divided by average interest earning assets. (3) Annualized core net interest income divided by average interest earning assets. | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Loan Yield, Tax Equivalent / Core Yield on Loans | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Loan interest income, including fees | $ | 62,276 | $ | 59,462 | $ | 61,643 | $ | 121,738 | $ | 119,590 | |||||||||||
| Tax equivalent adjustment(1) | 1,022 | 981 | 938 | 2,003 | 1,858 | ||||||||||||||||
| Tax equivalent loan interest income | $ | 63,298 | $ | 60,443 | $ | 62,581 | $ | 123,741 | $ | 121,448 | |||||||||||
| Loan purchase discount accretion | (1,142 | ) | (1,166 | ) | (1,261 | ) | (2,308 | ) | (2,413 | ) | |||||||||||
| Core loan interest income | $ | 62,156 | $ | 59,277 | $ | 61,320 | $ | 121,433 | $ | 119,035 | |||||||||||
| Yield on loans | 5.72 | % | 5.62 | % | 5.61 | % | 5.67 | % | 5.52 | % | |||||||||||
| Yield on loans, tax equivalent(2) | 5.81 | % | 5.71 | % | 5.69 | % | 5.76 | % | 5.60 | % | |||||||||||
| Core yield on loans(3) | 5.70 | % | 5.60 | % | 5.58 | % | 5.65 | % | 5.49 | % | |||||||||||
| Average loans | $ | 4,370,196 | $ | 4,290,710 | $ | 4,419,697 | $ | 4,330,659 | $ | 4,358,957 | |||||||||||
| (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent loan interest income divided by average loans. (3) Annualized core loan interest income divided by average loans. | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| Efficiency Ratio | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Total noninterest expense | $ | 35,767 | $ | 36,293 | $ | 35,761 | $ | 72,060 | $ | 71,326 | |||||||||||
| Amortization of intangibles | (1,252 | ) | (1,408 | ) | (1,593 | ) | (2,660 | ) | (3,230 | ) | |||||||||||
| Merger-related expenses | - | (40 | ) | (854 | ) | (40 | ) | (2,168 | ) | ||||||||||||
| Noninterest expense used for efficiency ratio | $ | 34,515 | $ | 34,845 | $ | 33,314 | $ | 69,360 | $ | 65,928 | |||||||||||
| Net interest income, tax equivalent(1) | $ | 51,164 | $ | 48,582 | $ | 37,662 | $ | 99,746 | $ | 73,700 | |||||||||||
| Plus: Noninterest income | 10,249 | 10,136 | 21,554 | 20,385 | 31,304 | ||||||||||||||||
| Less: Investment securities gains, net | - | 33 | 33 | 33 | 69 | ||||||||||||||||
| Net revenues used for efficiency ratio | $ | 61,413 | $ | 58,685 | $ | 59,183 | $ | 120,098 | $ | 104,935 | |||||||||||
| Efficiency ratio (2) | 56.20 | % | 59.38 | % | 56.29 | % | 57.75 | % | 62.83 | % | |||||||||||
| (1) The federal statutory tax rate utilized was 21%. (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains. | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Adjusted Earnings | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
| (Dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net income | $ | 9,980 | $ | 15,138 | $ | 15,819 | $ | 25,118 | $ | 19,088 | |||||||||
| Less: Investment securities gains, net of tax(1) | - | 25 | 24 | 24 | 51 | ||||||||||||||
| Less: Mortgage servicing rights (loss) gain, net of tax(1) | (196 | ) | (158 | ) | 96 | (355 | ) | (177 | ) | ||||||||||
| Plus: Merger-related expenses, net of tax(1) | - | 30 | 634 | 30 | 1,608 | ||||||||||||||
| Less: Gain on branch sale, net of tax(1) | - | - | 8,201 | - | 8,201 | ||||||||||||||
| Adjusted earnings | $ | 10,176 | $ | 15,301 | $ | 8,132 | $ | 25,479 | $ | 12,621 | |||||||||
| Weighted average diluted common shares outstanding | 20,843 | 20,849 | 15,781 | 20,846 | 15,775 | ||||||||||||||
| Earnings per common share - diluted | $ | 0.48 | $ | 0.73 | $ | 1.00 | $ | 1.20 | $ | 1.21 | |||||||||
| Adjusted earnings per common share(2) | $ | 0.49 | $ | 0.73 | $ | 0.52 | $ | 1.22 | $ | 0.80 | |||||||||
| (1) The income tax rate utilized was the blended marginal tax rate. (2) Adjusted earnings divided by weighted average diluted common shares outstanding. | |||||||||||||||||||
| For the Three Months Ended | Year Ended | |||||||||||||||||||
| Pre-tax Pre-provision Net Revenue | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| (Dollars in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Net interest income | $ | 49,982 | $ | 47,439 | $ | 36,347 | $ | 97,421 | $ | 71,078 | ||||||||||
| Noninterest income | 10,249 | 10,136 | 21,554 | 20,385 | 31,304 | |||||||||||||||
| Noninterest expense | (35,767 | ) | (36,293 | ) | (35,761 | ) | (72,060 | ) | (71,326 | ) | ||||||||||
| Pre-tax Pre-provision Net Revenue | $ | 24,464 | $ | 21,282 | $ | 22,140 | $ | 45,746 | $ | 31,056 | ||||||||||
Category: Earnings
This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.
Source: MidWestOne Financial Group, Inc.
Industry: Banks
| Contacts: | |
| Charles N. Reeves | Barry S. Ray |
| Chief Executive Officer | Chief Financial Officer |
| 319.356.5800 | 319.356.5800 |
