MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”,
or the "Company”) today reported results for the first quarter of
2023.
First Quarter
2023 Highlights1
-
Net income of $1.4 million, or $0.09 per diluted common share,
compared to net income of $16.0 million, or $1.02 per diluted
common share, for the linked quarter. Excluding the loss from the
balance sheet repositioning, adjusted earnings for the first
quarter were $11.2 million2, or $0.72 per diluted common
share.
-
Executed the sale of $231 million in book value of available for
sale debt securities as part of a balance sheet repositioning,
resulting in a pre-tax loss of $13.2 million.
-
Total uninsured deposits, excluding collateralized municipal
deposits, represent approximately 18.5% of total deposits.
-
Strong liquidity position, with $1.7 billion of available borrowing
capacity from the FHLB, Federal Reserve Discount Window and Bank
Term Funding Program, and unsecured sources.
-
Annualized loan growth was 8.6% and remains centered in our
targeted metro markets of the Twin Cities, Denver and Metro
Iowa.
-
Nonperforming assets ratio improved 1 basis point ("bps") to 0.23%;
net charge-off ratio of 0.03%.
-
Efficiency ratio was 62.32%2.
-
Common equity tier 1 capital to risk-weighted assets ratio improved
11 bps.
-
Subsequent to quarter end, the Board of Directors declared a cash
dividend of $0.2425 per common share.
1 First Quarter Summary compares to the fourth
quarter of 2022 (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.
CEO COMMENTARY
Charles (Chip) Reeves, Chief Executive Officer
of the Company, commented, "Despite a difficult operating
environment, exacerbated by March’s banking turmoil, we made
significant progress executing on our initial strategic priorities.
After the actions taken in the fourth quarter of 2022 to improve
our credit, our asset quality metrics further improved in the first
quarter of 2023, positioning the Bank well for the uncertain
macroeconomic outlook. Importantly, we have low exposure to the
higher risk areas in the market, such as the office sector of
commercial real estate. Additionally, we took strategic action in
late February to reduce the Company’s liability sensitivity as we
executed the sale of $231.0 million of available for sale debt
securities, resulting in $220.0 million of proceeds used to pay off
high-cost FHLB borrowings and reinvest in higher yielding, floating
rate securities. The transaction positions our balance sheet more
favorably, improves our future earnings profile, enhances our
already strong liquidity profile, and, importantly, our capital
ratios still improved as compared to the linked quarter.”
Mr. Reeves continued, “Our core, granular
deposit franchise also performed well given the concerns that swept
the sector in the aftermath of Silicon Valley Bank’s ("SVB")
failure. While we experienced $154.0 million of deposit outflows,
excluding brokered deposits, in the quarter, $120.0 million
occurred in January, which is a typical, seasonal low. Subsequent
to the SVB failure and through the end of the first quarter,
deposits grew $3.7 million. At quarter end, our total uninsured
deposits, excluding collateralized municipal deposits, were
approximately 18.5% and we have $1.7 billion of available borrowing
capacity through the FHLB, Federal Reserve and the Bank Term
Funding Program, and unsecured sources, which covers our uninsured
deposit base. We believe we are in a strong liquidity
position.”
Mr. Reeves concluded, “Looking forward, I could
not be more excited for what lies ahead for our Company, employees,
customers, and shareholders. Today, we have launched a strategic
plan designed to unleash the potential that exists within
MidWestOne as we strive to become a high performing bank with
consistent performance. Importantly, none of this would be possible
without our talented team members and their continued focus on our
customers and communities. I am so proud of their hard work through
what has been a very challenging two months in our industry."
Strategic Plan
The Company has launched a strategic plan
focused on five pillars designed to improve the performance of the
Bank, including (1) driving a performance-oriented culture, (2)
protecting the Bank’s core community bank franchise, (3)
accelerating the growth of the Bank’s commercial and wealth
management businesses, (4) expanding into specialty commercial
segments, and (5) optimizing the Bank’s operational effectiveness
and efficiency. Management will remain prudent through the
execution of the plan with a strict focus on risk management with
further investments in credit administration, a key enabler to the
plan.
The goal of the plan is to exit 2025 with:
-
12% annual earnings per share growth
-
A return on average assets of 1.10 – 1.20%
-
10% annual tangible book value growth
- An
efficiency ratio of 55 - 57%
Further details on the strategic plan and
quarterly results can be found in the Company’s first quarter 2023
earnings supplemental presentation located on the investor
relations section of the Company’s website located at
www.midwestonefinancial.com.
|
|
As of or for the quarter ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands, except per share amounts and as
noted) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Financial
Results |
|
|
|
|
|
|
Revenue |
|
$ |
36,030 |
|
|
$ |
54,504 |
|
|
$ |
48,980 |
|
Credit loss expense |
|
|
933 |
|
|
|
572 |
|
|
|
— |
|
Noninterest expense |
|
|
33,319 |
|
|
|
34,440 |
|
|
|
31,643 |
|
Net
income |
|
|
1,397 |
|
|
|
16,002 |
|
|
|
13,895 |
|
Per Common Share |
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.09 |
|
|
$ |
1.02 |
|
|
$ |
0.88 |
|
Book value |
|
|
31.94 |
|
|
|
31.54 |
|
|
|
32.15 |
|
Tangible book value(1) |
|
|
26.13 |
|
|
|
25.60 |
|
|
|
26.98 |
|
Balance Sheet & Credit Quality |
|
|
|
|
|
|
Loans In millions |
|
$ |
3,919.4 |
|
|
$ |
3,840.5 |
|
|
$ |
3,250.0 |
|
Investment securities In
millions |
|
|
2,071.8 |
|
|
|
2,283.0 |
|
|
|
2,349.9 |
|
Deposits In millions |
|
|
5,555.2 |
|
|
|
5,468.9 |
|
|
|
5,077.7 |
|
Net loan charge-offs In
millions |
|
|
0.3 |
|
|
|
3.5 |
|
|
|
2.2 |
|
Allowance for credit losses ratio |
|
|
1.27 |
% |
|
|
1.28 |
% |
|
|
1.42 |
% |
Selected Ratios |
|
|
|
|
|
|
Return on average assets |
|
|
0.09 |
% |
|
|
0.97 |
% |
|
|
0.95 |
% |
Net interest margin, tax
equivalent(1) |
|
|
2.75 |
% |
|
|
2.93 |
% |
|
|
2.79 |
% |
Return on average equity |
|
|
1.14 |
% |
|
|
13.26 |
% |
|
|
10.74 |
% |
Return on average tangible
equity(1) |
|
|
2.70 |
% |
|
|
17.85 |
% |
|
|
13.56 |
% |
Efficiency ratio(1) |
|
|
62.32 |
% |
|
|
57.79 |
% |
|
|
60.46 |
% |
(1)Non-GAAP measure. See the Non-GAAP Measures section
for a reconciliation to the most directly comparable GAAP
measure. |
REVENUE REVIEW
Revenue |
|
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
1Q23 vs |
|
1Q23 vs |
(Dollars in
thousands) |
|
1Q23 |
|
4Q22 |
|
1Q22 |
|
4Q22 |
|
1Q22 |
Net interest income |
|
$ |
40,076 |
|
|
$ |
43,564 |
|
$ |
37,336 |
|
(8)% |
|
7% |
Noninterest (loss) income |
|
|
(4,046 |
) |
|
|
10,940 |
|
|
11,644 |
|
n / m |
|
n / m |
Total revenue, net of interest expense |
|
$ |
36,030 |
|
|
$ |
54,504 |
|
$ |
48,980 |
|
(34)% |
|
(26)% |
|
|
|
|
|
|
|
|
|
|
|
Results
are not meaningful (n/m) |
Total revenue for the first quarter of 2023
decreased $18.5 million from the fourth quarter of 2022 as a result
of lower net interest income and noninterest income. Compared to
the first quarter of 2022, total revenue decreased $13.0 million
primarily due to lower noninterest income. When excluding the loss
of $13.2 million from the balance sheet repositioning, total
revenue for the first quarter of 2023 was $49.2 million, a decline
of $5.3 million from the fourth quarter of 2022 and an increase of
$0.2 million from the first quarter of 2022.
Net interest income of $40.1 million for the
first quarter of 2023 decreased from $43.6 million in the fourth
quarter of 2022, due primarily to two fewer days in the quarter and
higher funding costs and volumes, partially offset by higher
interest earning asset yields and volumes. Compared to the first
quarter of 2022, net interest income increased $2.8 million as a
result of higher interest earning asset yields and volumes,
partially offset by higher funding costs and volumes.
The Company's tax equivalent net interest margin
was 2.75% in the first quarter of 2023 compared to 2.93% in the
fourth quarter of 2022, as higher earning asset yields were more
than offset by increased funding costs. The cost of interest
bearing liabilities increased 51 bps to 1.59%, due to interest
bearing deposit costs of 1.38%, short-term borrowing costs of
2.82%, and long-term debt costs of 6.19%, which increased 55 bps,
28 bps and 65 bps, respectively from the fourth quarter of 2022.
Total interest earning assets yield increased 23 bps primarily as a
result of an increase in loan and securities yields of 29 bps and 5
bps, respectively. Our cycle-to-date interest bearing deposit beta
was 24%.
The net interest margin was 2.75% in the first
quarter of 2023 compared to 2.79% in the first quarter of 2022,
driven by higher funding costs, partially offset by higher interest
earning asset yields. The cost of interest bearing liabilities
increased 117 bps to 1.59%, due to interest bearing deposit costs
of 1.38%, short-term borrowing costs of 2.82%, and long-term debt
costs of 6.19%, which increased 109 bps, 252 bps and 189 bps,
respectively from the first quarter of 2022. Total interest earning
assets yield increased 90 bps primarily as a result of an increase
in loan and securities yields of 97 bps and 43 bps,
respectively.
Noninterest (Loss) Income |
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
1Q23 vs |
|
1Q23 vs |
(In
thousands) |
1Q23 |
|
4Q22 |
|
1Q22 |
|
4Q22 |
|
1Q22 |
Investment services and trust
activities |
$ |
2,933 |
|
|
$ |
2,666 |
|
|
$ |
3,011 |
|
10% |
|
(3)% |
Service charges and fees |
|
2,008 |
|
|
|
2,028 |
|
|
|
1,657 |
|
(1)% |
|
21% |
Card revenue |
|
1,748 |
|
|
|
1,784 |
|
|
|
1,650 |
|
(2)% |
|
6% |
Loan revenue |
|
1,420 |
|
|
|
966 |
|
|
|
4,293 |
|
47% |
|
(67)% |
Bank-owned life insurance |
|
602 |
|
|
|
637 |
|
|
|
531 |
|
(5)% |
|
13% |
Investment securities (losses)
gains, net |
|
(13,170 |
) |
|
|
(1 |
) |
|
|
40 |
|
n / m |
|
n / m |
Other |
|
413 |
|
|
|
2,860 |
|
|
|
462 |
|
(86)% |
|
(11)% |
Total noninterest (loss) income |
$ |
(4,046 |
) |
|
$ |
10,940 |
|
|
$ |
11,644 |
|
n / m |
|
n / m |
Noninterest income for the first quarter of 2023
decreased $15.0 million from the linked quarter and $15.7 million
from the first quarter of 2022, primarily due to investment
security losses of $13.2 million related to the Company's balance
sheet repositioning. In addition, noninterest income declined from
the comparative periods due to the following factors: (1) the
fourth quarter of 2022 benefited from a nonrecurring bargain
purchase gain of $2.5 million and (2) the first quarter of 2022
benefited from a larger increase in the fair value of our mortgage
servicing rights, as well as a larger gain on sale from residential
mortgage loans as a result of higher mortgage origination
volumes.
EXPENSE REVIEW
Noninterest Expense |
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
1Q23 vs |
|
1Q23 vs |
(In
thousands) |
1Q23 |
|
4Q22 |
|
1Q22 |
|
4Q22 |
|
1Q22 |
Compensation and employee benefits |
$ |
19,607 |
|
|
$ |
20,438 |
|
$ |
18,664 |
|
|
(4)% |
|
5% |
Occupancy expense of premises,
net |
|
2,746 |
|
|
|
2,663 |
|
|
2,779 |
|
|
3% |
|
(1)% |
Equipment |
|
2,171 |
|
|
|
2,327 |
|
|
1,901 |
|
|
(7)% |
|
14% |
Legal and professional |
|
1,736 |
|
|
|
1,846 |
|
|
2,353 |
|
|
(6)% |
|
(26)% |
Data processing |
|
1,363 |
|
|
|
1,375 |
|
|
1,231 |
|
|
(1)% |
|
11% |
Marketing |
|
986 |
|
|
|
947 |
|
|
1,029 |
|
|
4 % |
|
(4)% |
Amortization of
intangibles |
|
1,752 |
|
|
|
1,770 |
|
|
1,227 |
|
|
(1)% |
|
43% |
FDIC insurance |
|
749 |
|
|
|
405 |
|
|
420 |
|
|
85% |
|
78% |
Communications |
|
261 |
|
|
|
285 |
|
|
272 |
|
|
(8)% |
|
(4)% |
Foreclosed assets, net |
|
(28 |
) |
|
|
48 |
|
|
(112 |
) |
|
n / m |
|
(75)% |
Other |
|
1,976 |
|
|
|
2,336 |
|
|
1,879 |
|
|
(15)% |
|
5% |
Total noninterest expense |
$ |
33,319 |
|
|
$ |
34,440 |
|
$ |
31,643 |
|
|
(3)% |
|
5% |
Merger-related Expenses |
|
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
1Q23 |
|
4Q22 |
|
1Q22 |
Compensation and employee benefits |
$ |
70 |
|
$ |
189 |
|
$ |
— |
Equipment |
|
— |
|
|
4 |
|
|
5 |
Legal and professional |
|
— |
|
|
54 |
|
|
63 |
Data processing |
|
65 |
|
|
131 |
|
|
38 |
Marketing |
|
— |
|
|
2 |
|
|
7 |
Communications |
|
— |
|
|
— |
|
|
1 |
Other |
|
1 |
|
|
29 |
|
|
14 |
Total merger-related expenses |
$ |
136 |
|
$ |
409 |
|
$ |
128 |
Noninterest expense for the first quarter of
2023 decreased $1.1 million, or 3.3%, from the linked quarter with
overall decreases in all noninterest expense categories except
occupancy, marketing and FDIC insurance. These decreases primarily
reflected the decline in incentive compensation and merger-related
expenses. Partially offsetting these decreases was an increase of
$0.3 million in FDIC insurance premiums and $0.1 million in
occupancy expense of premises, net. The decreases in net interest
income and noninterest income noted above, partially offset by
lower noninterest expense, were the primary drivers of the increase
in the efficiency ratio, which increased 4.53% to 62.32% from
57.79% in the linked quarter.
Noninterest expense for the first quarter of
2023 increased $1.7 million, or 5.30%, from the first quarter of
2022 primarily due to increases of $0.9 million and $0.5 million in
compensation and employee benefits and amortization of intangibles,
respectively. The increases primarily reflected costs associated
with the acquired operations of Iowa First Bancshares Corp.
("IOFB"), which closed in the second quarter of 2022. Partially
offsetting the increases above was a decline of $0.6 million in
legal and professional expenses stemming primarily from a reduction
in legal expenses related to litigation and executive recruitment.
The decline in noninterest income and the increase in noninterest
expense noted above, partially offset by higher net interest
income, were the primary drivers of the increase in the efficiency
ratio, which increased 1.86 percentage points to 62.32% from 60.46%
in the first quarter of 2022.
The Company's effective income tax rate
increased to 21.4% in the first quarter of 2023 compared to 17.9%
in the linked quarter. The increase was primarily due to a bargain
purchase gain increase that was recorded in the fourth quarter of
2022 related to the IOFB acquisition, which did not recur in the
first quarter of 2023. The effective income tax rate for the full
year 2023 is expected to be in the range of 19.5% - 21.5%.
BALANCE SHEET REVIEW
Total assets were $6.41 billion at
March 31, 2023 compared to $6.58 billion at December 31,
2022 and $5.96 billion at March 31, 2022. The decrease from
December 31, 2022 was driven by lower securities balances as a
result of the balance sheet repositioning. In comparison to
March 31, 2022, the increase was due primarily to the IOFB
assets acquired in the second quarter of 2022 and higher loan
balances from organic loan growth.
Loans Held for Investment |
March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
|
Balance |
|
% of |
|
Balance |
|
% of |
|
Balance |
|
% of |
|
(Dollars in thousands) |
|
|
|
Total |
|
|
|
|
Total |
|
|
|
|
Total |
|
Commercial and industrial |
$ |
1,080,514 |
|
27.6 |
% |
$ |
1,055,162 |
|
27.5 |
% |
$ |
898,942 |
|
27.7 |
% |
Agricultural |
|
106,641 |
|
2.7 |
|
|
115,320 |
|
3.0 |
|
|
94,649 |
|
2.9 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
320,924 |
|
8.2 |
|
|
270,991 |
|
7.1 |
|
|
193,130 |
|
5.9 |
|
Farmland |
|
182,528 |
|
4.7 |
|
|
183,913 |
|
4.8 |
|
|
140,846 |
|
4.3 |
|
Multifamily |
|
255,065 |
|
6.5 |
|
|
252,129 |
|
6.6 |
|
|
259,609 |
|
8.0 |
|
Other |
|
1,290,454 |
|
33.0 |
|
|
1,272,985 |
|
33.1 |
|
|
1,130,306 |
|
34.8 |
|
Total commercial real estate |
|
2,048,971 |
|
52.4 |
|
|
1,980,018 |
|
51.6 |
|
|
1,723,891 |
|
53.0 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family first liens |
|
448,459 |
|
11.4 |
|
|
451,210 |
|
11.7 |
|
|
331,883 |
|
10.2 |
|
One-to-four family junior liens |
|
162,403 |
|
4.1 |
|
|
163,218 |
|
4.2 |
|
|
131,793 |
|
4.1 |
|
Total residential real estate |
|
610,862 |
|
15.5 |
|
|
614,428 |
|
15.9 |
|
|
463,676 |
|
14.3 |
|
Consumer |
|
72,377 |
|
1.8 |
|
|
75,596 |
|
2.0 |
|
|
68,877 |
|
2.1 |
|
Loans held for investment, net of unearned income |
$ |
3,919,365 |
|
100.0 |
% |
$ |
3,840,524 |
|
100.0 |
% |
$ |
3,250,035 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commitments to extend credit |
$ |
1,205,902 |
|
|
|
$ |
1,190,607 |
|
|
|
$ |
1,034,843 |
|
|
|
Loans held for investment, net of unearned
income, increased $78.8 million, or 2.1%, to $3.92 billion from
$3.84 billion at December 31, 2022. This increase was driven
by new loan production, draws on construction loans, and higher
line of credit usage during the first quarter of 2023.
Investment Securities |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in
thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Available for sale |
$ |
954,074 |
|
46.1 |
% |
$ |
1,153,547 |
|
50.5 |
% |
$ |
1,145,638 |
|
48.8 |
% |
Held to maturity |
|
1,117,709 |
|
53.9 |
% |
|
1,129,421 |
|
49.5 |
% |
|
1,204,212 |
|
51.2 |
% |
Total investment securities |
$ |
2,071,783 |
|
|
|
$ |
2,282,968 |
|
|
|
$ |
2,349,850 |
|
|
|
Investment securities at March 31, 2023
were $2.07 billion, decreasing $211.2 million from
December 31, 2022 and $278.1 million from March 31, 2022.
The decrease from both periods was due primarily to the sale of
$231.0 million of available for sale securities during the first
quarter of 2023, as well as principal cash flows received from
scheduled payments, calls, and maturities. The Company executed the
sale of securities as part of a strategic balance sheet
repositioning. The sale resulted in a pre-tax realized loss of
$13.2 million. The proceeds of $220.0 million were redeployed
towards paying off existing short-term borrowings and purchasing
higher yielding, floating rate securities.
Deposits |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in
thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Noninterest bearing deposits |
$ |
989,469 |
|
17.8 |
% |
$ |
1,053,450 |
|
19.3 |
% |
$ |
1,002,415 |
|
19.7 |
% |
Interest checking
deposits |
|
1,476,948 |
|
26.6 |
|
|
1,624,278 |
|
29.8 |
|
|
1,601,249 |
|
31.5 |
|
Money market deposits |
|
969,238 |
|
17.4 |
|
|
937,340 |
|
17.1 |
|
|
983,709 |
|
19.4 |
|
Savings deposits |
|
631,811 |
|
11.4 |
|
|
664,169 |
|
12.1 |
|
|
650,314 |
|
12.8 |
|
Time deposits of $250 and
under |
|
599,302 |
|
10.8 |
|
|
559,466 |
|
10.2 |
|
|
501,904 |
|
9.9 |
|
Total core deposits |
|
4,666,768 |
|
84.0 |
|
|
4,838,703 |
|
88.5 |
|
|
4,739,591 |
|
93.3 |
|
Brokered time deposits |
|
366,539 |
|
6.6 |
|
|
126,767 |
|
2.3 |
|
|
— |
|
— |
|
Time deposits over $250 |
|
521,846 |
|
9.4 |
|
|
503,472 |
|
9.2 |
|
|
338,134 |
|
6.7 |
|
Total deposits |
$ |
5,555,153 |
|
100.0 |
% |
$ |
5,468,942 |
|
100.0 |
% |
$ |
5,077,725 |
|
100.0 |
% |
Total deposits increased $86.2 million, or 1.6%,
to $5.56 billion from $5.47 billion at December 31, 2022.
Brokered deposits increased $239.8 million from $126.8 million at
December 31, 2022. When excluding the increase in brokered
time deposits, total deposits declined $153.6 million from
December 31, 2022. Total uninsured deposits were $1.72
billion, which included $692.1 million of collateralized municipal
deposits at March 31, 2023. Total uninsured deposits,
excluding collateralized municipal deposits, represented
approximately 18.5% of total deposits.
Borrowed Funds |
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
|
(Dollars in
thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Short-term borrowings |
$ |
143,981 |
|
51.1 |
% |
$ |
391,873 |
|
73.8 |
% |
$ |
181,193 |
|
56.4 |
% |
Long-term debt |
|
137,981 |
|
48.9 |
% |
|
139,210 |
|
26.2 |
% |
|
139,898 |
|
43.6 |
% |
Total borrowed funds |
$ |
281,962 |
|
|
|
$ |
531,083 |
|
|
|
$ |
321,091 |
|
|
|
Total borrowed funds were $282.0 million at
March 31, 2023 a decrease of $249.1 million from
December 31, 2022 and $39.1 million from March 31, 2022.
The decrease from both periods was due to lower Federal Home Loan
Bank borrowings.
Capital |
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
2023(1) |
|
|
2022 |
|
|
|
2022 |
|
Total shareholders' equity |
$ |
500,650 |
|
|
$ |
492,793 |
|
|
$ |
504,457 |
|
Accumulated other comprehensive loss |
|
(78,885 |
) |
|
|
(89,047 |
) |
|
|
(42,016 |
) |
MidWestOneFinancial
Group, Inc. Consolidated |
|
|
|
|
|
Tier 1 leverage to average
assets ratio |
|
8.30 |
% |
|
|
8.35 |
% |
|
|
8.85 |
% |
Common equity tier 1 capital
to risk-weighted assets ratio |
|
9.39 |
% |
|
|
9.28 |
% |
|
|
9.81 |
% |
Tier 1 capital to
risk-weighted assets ratio |
|
10.18 |
% |
|
|
10.05 |
% |
|
|
10.68 |
% |
Total capital to risk-weighted
assets ratio |
|
12.31 |
% |
|
|
12.07 |
% |
|
|
12.89 |
% |
MidWestOneBank |
|
|
|
|
|
Tier 1 leverage to average
assets ratio |
|
9.28 |
% |
|
|
9.36 |
% |
|
|
9.30 |
% |
Common equity tier 1 capital
to risk-weighted assets ratio |
|
11.40 |
% |
|
|
11.29 |
% |
|
|
11.25 |
% |
Tier 1 capital to
risk-weighted assets ratio |
|
11.40 |
% |
|
|
11.29 |
% |
|
|
11.25 |
% |
Total
capital to risk-weighted assets ratio |
|
12.31 |
% |
|
|
12.10 |
% |
|
|
12.12 |
% |
(1) Regulatory capital ratios for March 31, 2023 are
preliminary |
|
|
|
|
|
Total shareholders' equity at March 31,
2023 increased $7.9 million from December 31, 2022, driven by
the benefit of first quarter net income and a decrease in
accumulated other comprehensive loss, partially offset by dividends
paid during the first quarter of 2023.
Accumulated other comprehensive loss at
March 31, 2023 decreased $10.2 million compared to
December 31, 2022, due primarily to accretion of unrealized
losses and the favorable impact of interest rate changes on
available for sale securities valuations. Accumulated other
comprehensive loss increased $36.9 million from March 31,
2022, driven by the impact of higher interest rates on available
for sale securities valuations.
On April 27, 2023, the Board of Directors
of the Company declared a cash dividend of $0.2425 per common
share. The dividend is payable June 15, 2023, to shareholders
of record at the close of business on June 1, 2023.
Due to increased economic uncertainty and recent
market volatility, no common shares were repurchased by the Company
during the period January 1, 2023 through March 31, 2023 or for the
subsequent period through April 27, 2023. On April 27, 2023, the
Board of Directors of the Company approved a new repurchase
program, which replaced the prior repurchase program, allowing for
the repurchase of up to $15.0 million of the Company's common stock
through December 31, 2025.
CREDIT QUALITY REVIEW
Credit Quality |
As of or For the Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Credit loss expense (benefit)
related to loans |
$ |
933 |
|
|
$ |
572 |
|
|
$ |
(278 |
) |
Net charge-offs |
|
333 |
|
|
|
3,472 |
|
|
|
2,222 |
|
Allowance for credit losses |
|
49,800 |
|
|
|
49,200 |
|
|
|
46,200 |
|
Pass |
$ |
3,728,522 |
|
|
$ |
3,635,766 |
|
|
$ |
3,041,649 |
|
Special Mention / Watch |
|
92,075 |
|
|
|
108,064 |
|
|
|
106,241 |
|
Classified |
|
98,768 |
|
|
|
96,694 |
|
|
|
102,145 |
|
Loans greater than 30 days past due and accruing |
$ |
4,932 |
|
|
$ |
6,680 |
|
|
$ |
8,298 |
|
Nonperforming loans |
$ |
14,442 |
|
|
$ |
15,821 |
|
|
$ |
31,182 |
|
Nonperforming assets |
|
14,442 |
|
|
|
15,924 |
|
|
|
31,455 |
|
Net charge-off ratio(1) |
|
0.03 |
% |
|
|
0.36 |
% |
|
|
0.28 |
% |
Classified loans ratio(2) |
|
2.52 |
% |
|
|
2.52 |
% |
|
|
3.14 |
% |
Nonperforming loans
ratio(3) |
|
0.37 |
% |
|
|
0.41 |
% |
|
|
0.96 |
% |
Nonperforming assets
ratio(4) |
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.53 |
% |
Allowance for credit losses
ratio(5) |
|
1.27 |
% |
|
|
1.28 |
% |
|
|
1.42 |
% |
Allowance for credit losses to
nonaccrual loans ratio(6) |
|
344.88 |
% |
|
|
322.50 |
% |
|
|
148.16 |
% |
(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) Nonperforming loans ratio is calculated as nonperforming loans
divided by loans held for investment, net of unearned income, at
the end of the period. |
(4) Nonperforming assets ratio is calculated as nonperforming
assets divided by total assets at the end of the period. |
(5) 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. |
(6)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. |
During the first quarter of 2023, overall asset
quality improved when compared to the linked quarter and the
corresponding period in the prior year. The nonperforming loans
ratio declined 4 bps from the linked quarter and 59 bps from the
prior year to 0.37%. In addition, the classified loans ratio was
consistent with the linked quarter at 2.52%, and declined 62 bps
from the prior year. Further, the net charge-off ratio declined 33
bps from the linked quarter and 25 bps from the prior year.
As of March 31, 2023, the allowance for
credit losses was $49.8 million, or 1.27% of loans held for
investment, net of unearned income, compared with $49.2 million, or
1.28% of loans held for investment, net of unearned income, at
December 31, 2022. Credit loss expense of $0.9 million in the
first quarter of 2023 was primarily attributable to loan
growth.
Nonperforming Loans Roll Forward |
|
|
90+ Days Past Due |
|
|
(Dollars in
thousands) |
Nonaccrual |
|
& Still
Accruing |
|
Total |
Balance at December 31,
2022 |
$ |
15,256 |
|
|
$ |
565 |
|
|
$ |
15,821 |
|
Loans placed on nonaccrual or
90+ days past due & still accruing |
|
1,445 |
|
|
|
25 |
|
|
|
1,470 |
|
Proceeds related to repayment
or sale |
|
(796 |
) |
|
|
— |
|
|
|
(796 |
) |
Loans returned to accrual
status or no longer past due |
|
(1,110 |
) |
|
|
(515 |
) |
|
|
(1,625 |
) |
Charge-offs |
|
(355 |
) |
|
|
(23 |
) |
|
|
(378 |
) |
Transfer to nonaccrual |
|
— |
|
|
|
(50 |
) |
|
|
(50 |
) |
Balance at March 31,
2023 |
$ |
14,440 |
|
|
$ |
2 |
|
|
$ |
14,442 |
|
CONFERENCE CALL DETAILS
The Company will host a conference call for
investors at 11:00 a.m. CT on Friday, April 28, 2023. To
participate, you may pre-register for this call utilizing the
following link:
https://www.netroadshow.com/events/login?show=586c53ba&confId=49008.
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 390276 at least fifteen
minutes before the call start time. If you are unable to
participate on the call, a replay will be available until July 20,
2023, by calling 1-866-813-9403 and using the replay access code of
126764. 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, Florida, 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 risks of mergers
(including with IOFB), 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; (2) credit quality deterioration, pronounced and
sustained reduction in real estate market values, or other
uncertainties, including the impact of inflationary pressures 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; (3) the effects of actual
and expected increases in inflation and interest rates, including
on our net income and the value of our securities portfolio; (4)
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; (5) fluctuations
in the value of our investment securities; (6) governmental
monetary and fiscal policies; (7) changes in and uncertainty
related to benchmark interest rates used to price loans and
deposits, including the expected elimination of LIBOR and the
adoption of a substitute; (8) legislative and regulatory changes,
including changes in banking, securities, trade, and tax laws and
regulations and their application by our regulators, including the
new 1.0% excise tax on stock buybacks by publicly traded companies
and any changes in response to the recent failures of other banks;
(9) the ability to attract and retain key executives and employees
experienced in banking and financial services; (10) the sufficiency
of the allowance for credit losses to absorb the amount of actual
losses inherent in our existing loan portfolio; (11) our ability to
adapt successfully to technological changes to compete effectively
in the marketplace; (12) credit risks and risks from concentrations
(by geographic area and by industry) within our loan portfolio;
(13) 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; (14) the failure of assumptions
underlying the establishment of allowances for credit losses and
estimation of values of collateral and various financial assets and
liabilities; (15) volatility of rate-sensitive deposits; (16)
operational risks, including data processing system failures or
fraud; (17) asset/liability matching risks and liquidity risks;
(18) the costs, effects and outcomes of existing or future
litigation; (19) changes in general economic, political, or
industry conditions, nationally, internationally or in the
communities in which we conduct business; (20) changes in
accounting policies and practices, as may be adopted by state and
federal regulatory agencies and the Financial Accounting Standards
Board; (21) war or terrorist activities, including the war in
Ukraine, widespread disease or pandemic, or other adverse external
events, which may cause deterioration in the economy or cause
instability in credit markets; (22) the effects of cyber-attacks;
(23) the imposition of tariffs or other domestic or international
governmental policies impacting the value of the agricultural or
other products of our borrowers; (24) effects of the ongoing
COVID-19 pandemic, including its effects on the economic
environment, our customers, employees and supply chain; (25) the
concentration of large deposits from certain clients who have
balances above current FDIC insurance limits and may withdraw
deposits to diversify their exposure; (26) the effects of recent
developments and events in the financial services industry,
including the large-scale deposit withdrawals over a short period
of time at other banks that resulted in failure of those
institutions; and (27) other risk factors detailed from time to
time in Securities and Exchange Commission filings made by the
Company.
MIDWESTONE FINANCIAL
GROUP, INC. AND SUBSIDIARIES FIVE QUARTER
CONSOLIDATED BALANCE SHEETS
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
63,945 |
|
|
$ |
83,990 |
|
|
$ |
77,513 |
|
|
$ |
60,622 |
|
|
$ |
47,677 |
|
Interest earning deposits in
banks |
|
5,273 |
|
|
|
2,445 |
|
|
|
1,001 |
|
|
|
23,242 |
|
|
|
12,152 |
|
Total cash and cash equivalents |
|
69,218 |
|
|
|
86,435 |
|
|
|
78,514 |
|
|
|
83,864 |
|
|
|
59,829 |
|
Debt securities available for
sale at fair value |
|
954,074 |
|
|
|
1,153,547 |
|
|
|
1,153,304 |
|
|
|
1,234,789 |
|
|
|
1,145,638 |
|
Held to maturity securities at
amortized cost |
|
1,117,709 |
|
|
|
1,129,421 |
|
|
|
1,146,583 |
|
|
|
1,168,042 |
|
|
|
1,204,212 |
|
Total securities |
|
2,071,783 |
|
|
|
2,282,968 |
|
|
|
2,299,887 |
|
|
|
2,402,831 |
|
|
|
2,349,850 |
|
Loans held for sale |
|
2,553 |
|
|
|
612 |
|
|
|
2,320 |
|
|
|
4,991 |
|
|
|
6,466 |
|
Gross loans held for
investment |
|
3,932,900 |
|
|
|
3,854,791 |
|
|
|
3,761,664 |
|
|
|
3,627,728 |
|
|
|
3,256,294 |
|
Unearned income, net |
|
(13,535 |
) |
|
|
(14,267 |
) |
|
|
(15,375 |
) |
|
|
(16,576 |
) |
|
|
(6,259 |
) |
Loans held for investment, net of unearned income |
|
3,919,365 |
|
|
|
3,840,524 |
|
|
|
3,746,289 |
|
|
|
3,611,152 |
|
|
|
3,250,035 |
|
Allowance for credit
losses |
|
(49,800 |
) |
|
|
(49,200 |
) |
|
|
(52,100 |
) |
|
|
(52,350 |
) |
|
|
(46,200 |
) |
Total loans held for investment, net |
|
3,869,565 |
|
|
|
3,791,324 |
|
|
|
3,694,189 |
|
|
|
3,558,802 |
|
|
|
3,203,835 |
|
Premises and equipment,
net |
|
86,208 |
|
|
|
87,125 |
|
|
|
87,732 |
|
|
|
89,048 |
|
|
|
82,603 |
|
Goodwill |
|
62,477 |
|
|
|
62,477 |
|
|
|
62,477 |
|
|
|
62,477 |
|
|
|
62,477 |
|
Other intangible assets,
net |
|
28,563 |
|
|
|
30,315 |
|
|
|
32,086 |
|
|
|
33,874 |
|
|
|
18,658 |
|
Foreclosed assets, net |
|
— |
|
|
|
103 |
|
|
|
103 |
|
|
|
284 |
|
|
|
273 |
|
Other assets |
|
219,585 |
|
|
|
236,517 |
|
|
|
233,753 |
|
|
|
206,320 |
|
|
|
176,223 |
|
Total assets |
$ |
6,409,952 |
|
|
$ |
6,577,876 |
|
|
$ |
6,491,061 |
|
|
$ |
6,442,491 |
|
|
$ |
5,960,214 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest bearing
deposits |
$ |
989,469 |
|
|
$ |
1,053,450 |
|
|
$ |
1,139,694 |
|
|
$ |
1,114,825 |
|
|
$ |
1,002,415 |
|
Interest bearing deposits |
|
4,565,684 |
|
|
|
4,415,492 |
|
|
|
4,337,088 |
|
|
|
4,422,616 |
|
|
|
4,075,310 |
|
Total deposits |
|
5,555,153 |
|
|
|
5,468,942 |
|
|
|
5,476,782 |
|
|
|
5,537,441 |
|
|
|
5,077,725 |
|
Short-term borrowings |
|
143,981 |
|
|
|
391,873 |
|
|
|
304,536 |
|
|
|
193,894 |
|
|
|
181,193 |
|
Long-term debt |
|
137,981 |
|
|
|
139,210 |
|
|
|
154,190 |
|
|
|
159,168 |
|
|
|
139,898 |
|
Other liabilities |
|
72,187 |
|
|
|
85,058 |
|
|
|
83,324 |
|
|
|
63,156 |
|
|
|
56,941 |
|
Total liabilities |
|
5,909,302 |
|
|
|
6,085,083 |
|
|
|
6,018,832 |
|
|
|
5,953,659 |
|
|
|
5,455,757 |
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
Common stock |
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
Additional paid-in
capital |
|
300,966 |
|
|
|
302,085 |
|
|
|
301,418 |
|
|
|
300,859 |
|
|
|
300,505 |
|
Retained earnings |
|
286,767 |
|
|
|
289,289 |
|
|
|
276,998 |
|
|
|
262,395 |
|
|
|
253,500 |
|
Treasury stock |
|
(24,779 |
) |
|
|
(26,115 |
) |
|
|
(26,145 |
) |
|
|
(25,772 |
) |
|
|
(24,113 |
) |
Accumulated other
comprehensive loss |
|
(78,885 |
) |
|
|
(89,047 |
) |
|
|
(96,623 |
) |
|
|
(65,231 |
) |
|
|
(42,016 |
) |
Total shareholders' equity |
|
500,650 |
|
|
|
492,793 |
|
|
|
472,229 |
|
|
|
488,832 |
|
|
|
504,457 |
|
Total liabilities and shareholders' equity |
$ |
6,409,952 |
|
|
$ |
6,577,876 |
|
|
$ |
6,491,061 |
|
|
$ |
6,442,491 |
|
|
$ |
5,960,214 |
|
MIDWESTONE FINANCIAL
GROUP, INC. AND SUBSIDIARIES FIVE QUARTER
CONSOLIDATED STATEMENTS OF INCOME
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
2022 |
|
Interest income |
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
46,490 |
|
|
$ |
43,769 |
|
|
$ |
40,451 |
|
|
$ |
32,746 |
|
$ |
31,318 |
|
Taxable investment securities |
|
10,444 |
|
|
|
10,685 |
|
|
|
10,635 |
|
|
|
9,576 |
|
|
8,123 |
|
Tax-exempt investment securities |
|
2,127 |
|
|
|
2,303 |
|
|
|
2,326 |
|
|
|
2,367 |
|
|
2,383 |
|
Other |
|
244 |
|
|
|
— |
|
|
|
9 |
|
|
|
40 |
|
|
28 |
|
Total interest income |
|
59,305 |
|
|
|
56,757 |
|
|
|
53,421 |
|
|
|
44,729 |
|
|
41,852 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
Deposits |
|
15,319 |
|
|
|
9,127 |
|
|
|
5,035 |
|
|
|
3,173 |
|
|
2,910 |
|
Short-term borrowings |
|
1,786 |
|
|
|
1,955 |
|
|
|
767 |
|
|
|
229 |
|
|
119 |
|
Long-term debt |
|
2,124 |
|
|
|
2,111 |
|
|
|
1,886 |
|
|
|
1,602 |
|
|
1,487 |
|
Total interest expense |
|
19,229 |
|
|
|
13,193 |
|
|
|
7,688 |
|
|
|
5,004 |
|
|
4,516 |
|
Net interest income |
|
40,076 |
|
|
|
43,564 |
|
|
|
45,733 |
|
|
|
39,725 |
|
|
37,336 |
|
Credit loss expense |
|
933 |
|
|
|
572 |
|
|
|
638 |
|
|
|
3,282 |
|
|
— |
|
Net interest income after credit loss expense |
|
39,143 |
|
|
|
42,992 |
|
|
|
45,095 |
|
|
|
36,443 |
|
|
37,336 |
|
Noninterest (loss) income |
|
|
|
|
|
|
|
|
|
Investment services and trust activities |
|
2,933 |
|
|
|
2,666 |
|
|
|
2,876 |
|
|
|
2,670 |
|
|
3,011 |
|
Service charges and fees |
|
2,008 |
|
|
|
2,028 |
|
|
|
2,075 |
|
|
|
1,717 |
|
|
1,657 |
|
Card revenue |
|
1,748 |
|
|
|
1,784 |
|
|
|
1,898 |
|
|
|
1,878 |
|
|
1,650 |
|
Loan revenue |
|
1,420 |
|
|
|
966 |
|
|
|
1,722 |
|
|
|
3,523 |
|
|
4,293 |
|
Bank-owned life insurance |
|
602 |
|
|
|
637 |
|
|
|
579 |
|
|
|
558 |
|
|
531 |
|
Investment securities (losses) gains, net |
|
(13,170 |
) |
|
|
(1 |
) |
|
|
(163 |
) |
|
|
395 |
|
|
40 |
|
Other |
|
413 |
|
|
|
2,860 |
|
|
|
3,601 |
|
|
|
1,606 |
|
|
462 |
|
Total noninterest (loss) income |
|
(4,046 |
) |
|
|
10,940 |
|
|
|
12,588 |
|
|
|
12,347 |
|
|
11,644 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
19,607 |
|
|
|
20,438 |
|
|
|
20,046 |
|
|
|
18,955 |
|
|
18,664 |
|
Occupancy expense of premises, net |
|
2,746 |
|
|
|
2,663 |
|
|
|
2,577 |
|
|
|
2,253 |
|
|
2,779 |
|
Equipment |
|
2,171 |
|
|
|
2,327 |
|
|
|
2,358 |
|
|
|
2,107 |
|
|
1,901 |
|
Legal and professional |
|
1,736 |
|
|
|
1,846 |
|
|
|
2,012 |
|
|
|
2,435 |
|
|
2,353 |
|
Data processing |
|
1,363 |
|
|
|
1,375 |
|
|
|
1,731 |
|
|
|
1,237 |
|
|
1,231 |
|
Marketing |
|
986 |
|
|
|
947 |
|
|
|
1,139 |
|
|
|
1,157 |
|
|
1,029 |
|
Amortization of intangibles |
|
1,752 |
|
|
|
1,770 |
|
|
|
1,789 |
|
|
|
1,283 |
|
|
1,227 |
|
FDIC insurance |
|
749 |
|
|
|
405 |
|
|
|
415 |
|
|
|
420 |
|
|
420 |
|
Communications |
|
261 |
|
|
|
285 |
|
|
|
302 |
|
|
|
266 |
|
|
272 |
|
Foreclosed assets, net |
|
(28 |
) |
|
|
48 |
|
|
|
42 |
|
|
|
4 |
|
|
(112 |
) |
Other |
|
1,976 |
|
|
|
2,336 |
|
|
|
2,212 |
|
|
|
1,965 |
|
|
1,879 |
|
Total noninterest expense |
|
33,319 |
|
|
|
34,440 |
|
|
|
34,623 |
|
|
|
32,082 |
|
|
31,643 |
|
Income before income tax expense |
|
1,778 |
|
|
|
19,492 |
|
|
|
23,060 |
|
|
|
16,708 |
|
|
17,337 |
|
Income tax expense |
|
381 |
|
|
|
3,490 |
|
|
|
4,743 |
|
|
|
4,087 |
|
|
3,442 |
|
Net income |
$ |
1,397 |
|
|
$ |
16,002 |
|
|
$ |
18,317 |
|
|
$ |
12,621 |
|
$ |
13,895 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.09 |
|
|
$ |
1.02 |
|
|
$ |
1.17 |
|
|
$ |
0.81 |
|
$ |
0.89 |
|
Diluted |
$ |
0.09 |
|
|
$ |
1.02 |
|
|
$ |
1.17 |
|
|
$ |
0.80 |
|
$ |
0.88 |
|
Weighted average basic common
shares outstanding |
|
15,650 |
|
|
|
15,624 |
|
|
|
15,623 |
|
|
|
15,668 |
|
|
15,683 |
|
Weighted average diluted
common shares outstanding |
|
15,691 |
|
|
|
15,693 |
|
|
|
15,654 |
|
|
|
15,688 |
|
|
15,718 |
|
Dividends paid per common
share |
$ |
0.2425 |
|
|
$ |
0.2375 |
|
|
$ |
0.2375 |
|
|
$ |
0.2375 |
|
$ |
0.2375 |
|
MIDWESTONE FINANCIAL
GROUP, INC. AND SUBSIDIARIES FINANCIAL
STATISTICS
|
As of or for the Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands, except per share
amounts) |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Earnings: |
|
|
|
|
|
Net interest income |
$ |
40,076 |
|
|
$ |
43,564 |
|
|
$ |
37,336 |
|
Noninterest (loss) income |
|
(4,046 |
) |
|
|
10,940 |
|
|
|
11,644 |
|
Total revenue, net of interest expense |
|
36,030 |
|
|
|
54,504 |
|
|
|
48,980 |
|
Credit loss expense |
|
933 |
|
|
|
572 |
|
|
|
— |
|
Noninterest expense |
|
33,319 |
|
|
|
34,440 |
|
|
|
31,643 |
|
Income before income tax expense |
|
1,778 |
|
|
|
19,492 |
|
|
|
17,337 |
|
Income tax expense |
|
381 |
|
|
|
3,490 |
|
|
|
3,442 |
|
Net income |
$ |
1,397 |
|
|
$ |
16,002 |
|
|
$ |
13,895 |
|
Per Share
Data: |
|
|
|
|
|
Diluted earnings |
$ |
0.09 |
|
|
$ |
1.02 |
|
|
$ |
0.88 |
|
Book value |
|
31.94 |
|
|
|
31.54 |
|
|
|
32.15 |
|
Tangible book value(1) |
|
26.13 |
|
|
|
25.60 |
|
|
|
26.98 |
|
Ending Balance
Sheet: |
|
|
|
|
|
Total assets |
$ |
6,409,952 |
|
|
$ |
6,577,876 |
|
|
$ |
5,960,214 |
|
Loans held for investment, net
of unearned income |
|
3,919,365 |
|
|
|
3,840,524 |
|
|
|
3,250,035 |
|
Total securities |
|
2,071,783 |
|
|
|
2,282,968 |
|
|
|
2,349,850 |
|
Total deposits |
|
5,555,153 |
|
|
|
5,468,942 |
|
|
|
5,077,725 |
|
Short-term borrowings |
|
143,981 |
|
|
|
391,873 |
|
|
|
181,193 |
|
Long-term debt |
|
137,981 |
|
|
|
139,210 |
|
|
|
139,898 |
|
Total shareholders'
equity |
|
500,650 |
|
|
|
492,793 |
|
|
|
504,457 |
|
Average Balance
Sheet: |
|
|
|
|
|
Average total assets |
$ |
6,524,065 |
|
|
$ |
6,516,969 |
|
|
$ |
5,914,604 |
|
Average total loans |
|
3,867,110 |
|
|
|
3,791,880 |
|
|
|
3,245,449 |
|
Average total deposits |
|
5,546,694 |
|
|
|
5,495,599 |
|
|
|
5,044,046 |
|
Financial
Ratios: |
|
|
|
|
|
Return on average assets |
|
0.09 |
% |
|
|
0.97 |
% |
|
|
0.95 |
% |
Return on average equity |
|
1.14 |
% |
|
|
13.26 |
% |
|
|
10.74 |
% |
Return on average tangible
equity(1) |
|
2.70 |
% |
|
|
17.85 |
% |
|
|
13.56 |
% |
Efficiency ratio(1) |
|
62.32 |
% |
|
|
57.79 |
% |
|
|
60.46 |
% |
Net interest margin, tax
equivalent(1) |
|
2.75 |
% |
|
|
2.93 |
% |
|
|
2.79 |
% |
Loans to deposits ratio |
|
70.55 |
% |
|
|
70.22 |
% |
|
|
64.01 |
% |
Uninsured deposits excluding
collateralized municipal deposits ratio |
|
18.54 |
% |
|
|
21.13 |
% |
|
|
24.72 |
% |
Common equity ratio |
|
7.81 |
% |
|
|
7.49 |
% |
|
|
8.46 |
% |
Tangible common equity
ratio(1) |
|
6.48 |
% |
|
|
6.17 |
% |
|
|
7.20 |
% |
Credit Risk
Profile: |
|
|
|
|
|
Total nonperforming loans |
$ |
14,442 |
|
|
$ |
15,821 |
|
|
$ |
31,182 |
|
Nonperforming loans ratio |
|
0.37 |
% |
|
|
0.41 |
% |
|
|
0.96 |
% |
Total nonperforming
assets |
$ |
14,442 |
|
|
$ |
15,924 |
|
|
$ |
31,455 |
|
Nonperforming assets
ratio |
|
0.23 |
% |
|
|
0.24 |
% |
|
|
0.53 |
% |
Net charge-offs |
$ |
333 |
|
|
$ |
3,472 |
|
|
$ |
2,222 |
|
Net charge-off ratio |
|
0.03 |
% |
|
|
0.36 |
% |
|
|
0.28 |
% |
Allowance for credit
losses |
$ |
49,800 |
|
|
$ |
49,200 |
|
|
$ |
46,200 |
|
Allowance for credit losses
ratio |
|
1.27 |
% |
|
|
1.28 |
% |
|
|
1.42 |
% |
Allowance for credit losses to
nonaccrual ratio |
|
344.88 |
% |
|
|
322.50 |
% |
|
|
148.16 |
% |
|
|
|
|
|
|
(1) Non-GAAP
measure. See the Non-GAAP Measures section for a reconciliation to
the most directly comparable GAAP measure. |
|
MIDWESTONE FINANCIAL
GROUP, INC. AND SUBSIDIARIESAVERAGE BALANCE SHEET
AND YIELD ANALYSIS
|
Three Months Ended |
|
March 31, 2023 |
|
December 31, 2022 |
|
March 31, 2022 |
(Dollars in
thousands) |
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
|
Average Balance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees(1)(2)(3) |
$ |
3,867,110 |
|
$ |
47,206 |
|
4.95 |
% |
|
$ |
3,791,880 |
|
$ |
44,494 |
|
4.66 |
% |
|
$ |
3,245,449 |
|
$ |
31,858 |
|
3.98 |
% |
Taxable investment
securities |
|
1,811,388 |
|
|
10,444 |
|
2.34 |
% |
|
|
1,865,494 |
|
|
10,685 |
|
2.27 |
% |
|
|
1,835,911 |
|
|
8,123 |
|
1.79 |
% |
Tax-exempt investment
securities(2)(4) |
|
397,110 |
|
|
2,649 |
|
2.71 |
% |
|
|
422,156 |
|
|
2,893 |
|
2.72 |
% |
|
|
450,547 |
|
|
2,998 |
|
2.70 |
% |
Total securities held for investment(2) |
|
2,208,498 |
|
|
13,093 |
|
2.40 |
% |
|
|
2,287,650 |
|
|
13,578 |
|
2.35 |
% |
|
|
2,286,458 |
|
|
11,121 |
|
1.97 |
% |
Other |
|
24,848 |
|
|
244 |
|
3.98 |
% |
|
|
5,562 |
|
|
— |
|
— |
% |
|
|
56,094 |
|
|
28 |
|
0.20 |
% |
Total interest earning assets(2) |
$ |
6,100,456 |
|
$ |
60,543 |
|
4.02 |
% |
|
$ |
6,085,092 |
|
$ |
58,072 |
|
3.79 |
% |
|
$ |
5,588,001 |
|
$ |
43,007 |
|
3.12 |
% |
Other assets |
|
423,609 |
|
|
|
|
|
|
431,877 |
|
|
|
|
|
|
326,603 |
|
|
|
|
Total assets |
$ |
6,524,065 |
|
|
|
|
|
$ |
6,516,969 |
|
|
|
|
|
$ |
5,914,604 |
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking
deposits |
$ |
1,515,845 |
|
$ |
1,849 |
|
0.49 |
% |
|
$ |
1,632,749 |
|
$ |
1,703 |
|
0.41 |
% |
|
$ |
1,560,402 |
|
$ |
1,061 |
|
0.28 |
% |
Money market deposits |
|
930,543 |
|
|
3,269 |
|
1.42 |
% |
|
|
995,512 |
|
|
2,369 |
|
0.94 |
% |
|
|
953,943 |
|
|
499 |
|
0.21 |
% |
Savings deposits |
|
653,043 |
|
|
272 |
|
0.17 |
% |
|
|
683,538 |
|
|
306 |
|
0.18 |
% |
|
|
641,703 |
|
|
279 |
|
0.18 |
% |
Time deposits |
|
1,417,688 |
|
|
9,929 |
|
2.84 |
% |
|
|
1,067,044 |
|
|
4,749 |
|
1.77 |
% |
|
|
883,997 |
|
|
1,071 |
|
0.49 |
% |
Total interest bearing deposits |
|
4,517,119 |
|
|
15,319 |
|
1.38 |
% |
|
|
4,378,843 |
|
|
9,127 |
|
0.83 |
% |
|
|
4,040,045 |
|
|
2,910 |
|
0.29 |
% |
Securities sold under
agreements to repurchase |
|
145,809 |
|
|
450 |
|
1.25 |
% |
|
|
151,880 |
|
|
437 |
|
1.14 |
% |
|
|
159,417 |
|
|
96 |
|
0.24 |
% |
Federal funds purchased |
|
— |
|
|
— |
|
— |
% |
|
|
940 |
|
|
10 |
|
4.22 |
% |
|
|
— |
|
|
— |
|
— |
% |
Other short-term
borrowings |
|
111,306 |
|
|
1,336 |
|
4.87 |
% |
|
|
152,215 |
|
|
1,508 |
|
3.93 |
% |
|
|
3,029 |
|
|
23 |
|
3.08 |
% |
Short-term borrowings |
|
257,115 |
|
|
1,786 |
|
2.82 |
% |
|
|
305,035 |
|
|
1,955 |
|
2.54 |
% |
|
|
162,446 |
|
|
119 |
|
0.30 |
% |
Long-term debt |
|
139,208 |
|
|
2,124 |
|
6.19 |
% |
|
|
151,266 |
|
|
2,111 |
|
5.54 |
% |
|
|
140,389 |
|
|
1,487 |
|
4.30 |
% |
Total borrowed funds |
|
396,323 |
|
|
3,910 |
|
4.00 |
% |
|
|
456,301 |
|
|
4,066 |
|
3.54 |
% |
|
|
302,835 |
|
|
1,606 |
|
2.15 |
% |
Total interest bearing liabilities |
$ |
4,913,442 |
|
$ |
19,229 |
|
1.59 |
% |
|
$ |
4,835,144 |
|
$ |
13,193 |
|
1.08 |
% |
|
$ |
4,342,880 |
|
$ |
4,516 |
|
0.42 |
% |
Noninterest bearing
deposits |
|
1,029,575 |
|
|
|
|
|
|
1,116,756 |
|
|
|
|
|
|
1,004,001 |
|
|
|
|
Other liabilities |
|
82,501 |
|
|
|
|
|
|
86,242 |
|
|
|
|
|
|
42,872 |
|
|
|
|
Shareholders’ equity |
|
498,547 |
|
|
|
|
|
|
478,827 |
|
|
|
|
|
|
524,851 |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
6,524,065 |
|
|
|
|
|
$ |
6,516,969 |
|
|
|
|
|
$ |
5,914,604 |
|
|
|
|
Net interest income(2) |
|
|
$ |
41,314 |
|
|
|
|
|
$ |
44,879 |
|
|
|
|
|
$ |
38,491 |
|
|
Net interest spread(2) |
|
|
|
|
2.43 |
% |
|
|
|
|
|
2.71 |
% |
|
|
|
|
|
2.70 |
% |
Net interest margin(2) |
|
|
|
|
2.75 |
% |
|
|
|
|
|
2.93 |
% |
|
|
|
|
|
2.79 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits(5) |
$ |
5,546,694 |
|
$ |
15,319 |
|
1.12 |
% |
|
$ |
5,495,599 |
|
$ |
9,127 |
|
0.66 |
% |
|
$ |
5,044,046 |
|
$ |
2,910 |
|
0.23 |
% |
Cost of funds(6) |
|
|
|
|
1.31 |
% |
|
|
|
|
|
0.88 |
% |
|
|
|
|
|
0.34 |
% |
(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 $95
thousand, $87 thousand, and $674 thousand for the three months
ended March 31, 2023, December 31, 2022, and
March 31, 2022, respectively. Loan purchase discount accretion
was $1.2 million, $1.3 million, and $732 thousand for the three
months ended March 31, 2023, December 31, 2022, and
March 31, 2022, respectively. Tax equivalent adjustments were
$716 thousand, $725 thousand, and $540 thousand for the three
months ended March 31, 2023, December 31, 2022, and
March 31, 2022, respectively. The federal statutory tax rate
utilized was 21%. (4) Interest income includes tax equivalent
adjustments of $522 thousand, $590 thousand, and $615 thousand for
the three months ended March 31, 2023, December 31, 2022,
and March 31, 2022, 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, and
adjusted earnings. 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 |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(Dollars in thousands, except per share data) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
Total shareholders’
equity |
|
$ |
500,650 |
|
|
$ |
492,793 |
|
|
$ |
472,229 |
|
|
$ |
488,832 |
|
|
$ |
504,457 |
|
Intangible assets, net |
|
|
(91,040 |
) |
|
|
(92,792 |
) |
|
|
(94,563 |
) |
|
|
(96,351 |
) |
|
|
(81,135 |
) |
Tangible common equity |
|
$ |
409,610 |
|
|
$ |
400,001 |
|
|
$ |
377,666 |
|
|
$ |
392,481 |
|
|
$ |
423,322 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,409,952 |
|
|
$ |
6,577,876 |
|
|
$ |
6,491,061 |
|
|
$ |
6,442,491 |
|
|
$ |
5,960,214 |
|
Intangible assets, net |
|
|
(91,040 |
) |
|
|
(92,792 |
) |
|
|
(94,563 |
) |
|
|
(96,351 |
) |
|
|
(81,135 |
) |
Tangible assets |
|
$ |
6,318,912 |
|
|
$ |
6,485,084 |
|
|
$ |
6,396,498 |
|
|
$ |
6,346,140 |
|
|
$ |
5,879,079 |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
31.94 |
|
|
$ |
31.54 |
|
|
$ |
30.23 |
|
|
$ |
31.26 |
|
|
$ |
32.15 |
|
Tangible book value per
share(1) |
|
$ |
26.13 |
|
|
$ |
25.60 |
|
|
$ |
24.17 |
|
|
$ |
25.10 |
|
|
$ |
26.98 |
|
Shares outstanding |
|
|
15,675,325 |
|
|
|
15,623,977 |
|
|
|
15,622,825 |
|
|
|
15,635,131 |
|
|
|
15,690,125 |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity ratio |
|
|
7.81 |
% |
|
|
7.49 |
% |
|
|
7.28 |
% |
|
|
7.59 |
% |
|
|
8.46 |
% |
Tangible common equity
ratio(2) |
|
|
6.48 |
% |
|
|
6.17 |
% |
|
|
5.90 |
% |
|
|
6.18 |
% |
|
|
7.20 |
% |
(1) Tangible common equity divided by shares outstanding.(2)
Tangible common equity divided by tangible assets.
|
|
Three Months Ended |
Return on Average
Tangible Equity |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Net income |
|
$ |
1,397 |
|
|
$ |
16,002 |
|
|
$ |
13,895 |
|
Intangible amortization, net
of tax(1) |
|
|
1,314 |
|
|
|
1,328 |
|
|
|
920 |
|
Tangible net income |
|
$ |
2,711 |
|
|
$ |
17,330 |
|
|
$ |
14,815 |
|
|
|
|
|
|
|
|
Average shareholders’
equity |
|
$ |
498,547 |
|
|
$ |
478,827 |
|
|
$ |
524,851 |
|
Average intangible assets,
net |
|
|
(92,002 |
) |
|
|
(93,662 |
) |
|
|
(81,763 |
) |
Average tangible equity |
|
$ |
406,545 |
|
|
$ |
385,165 |
|
|
$ |
443,088 |
|
|
|
|
|
|
|
|
Return on average equity |
|
|
1.14 |
% |
|
|
13.26 |
% |
|
|
10.74 |
% |
Return on average tangible
equity(2) |
|
|
2.70 |
% |
|
|
17.85 |
% |
|
|
13.56 |
% |
(1) The combined income tax rate utilized was 25%.(2) Annualized
tangible net income divided by average tangible equity.
|
|
Three Months Ended |
Net Interest Margin,
Tax Equivalent / Core Net Interest Margin |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Net interest income |
|
$ |
40,076 |
|
|
$ |
43,564 |
|
|
$ |
37,336 |
|
Tax equivalent
adjustments: |
|
|
|
|
|
|
Loans(1) |
|
|
716 |
|
|
|
725 |
|
|
|
540 |
|
Securities(1) |
|
|
522 |
|
|
|
590 |
|
|
|
615 |
|
Net interest income, tax equivalent |
|
$ |
41,314 |
|
|
$ |
44,879 |
|
|
$ |
38,491 |
|
Loan purchase discount
accretion |
|
|
(1,189 |
) |
|
|
(1,286 |
) |
|
|
(732 |
) |
Core net interest income |
|
$ |
40,125 |
|
|
$ |
43,593 |
|
|
$ |
37,759 |
|
|
|
|
|
|
|
|
Net interest margin |
|
|
2.66 |
% |
|
|
2.84 |
% |
|
|
2.71 |
% |
Net interest margin, tax
equivalent(2) |
|
|
2.75 |
% |
|
|
2.93 |
% |
|
|
2.79 |
% |
Core net interest
margin(3) |
|
|
2.67 |
% |
|
|
2.84 |
% |
|
|
2.74 |
% |
Average interest earning
assets |
|
$ |
6,100,456 |
|
|
$ |
6,085,092 |
|
|
$ |
5,588,001 |
|
(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 |
Loan Yield, Tax
Equivalent / Core Yield on Loans |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Loan interest income, including fees |
|
$ |
46,490 |
|
|
$ |
43,769 |
|
|
$ |
31,318 |
|
Tax equivalent
adjustment(1) |
|
|
716 |
|
|
|
725 |
|
|
|
540 |
|
Tax equivalent loan interest income |
|
$ |
47,206 |
|
|
$ |
44,494 |
|
|
$ |
31,858 |
|
Loan purchase discount
accretion |
|
|
(1,189 |
) |
|
|
(1,286 |
) |
|
|
(732 |
) |
Core loan interest income |
|
$ |
46,017 |
|
|
$ |
43,208 |
|
|
$ |
31,126 |
|
|
|
|
|
|
|
|
Yield on loans |
|
|
4.88 |
% |
|
|
4.58 |
% |
|
|
3.91 |
% |
Yield on loans, tax
equivalent(2) |
|
|
4.95 |
% |
|
|
4.66 |
% |
|
|
3.98 |
% |
Core yield on loans(3) |
|
|
4.83 |
% |
|
|
4.52 |
% |
|
|
3.89 |
% |
Average loans |
|
$ |
3,867,110 |
|
|
$ |
3,791,880 |
|
|
$ |
3,245,449 |
|
(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 |
Efficiency
Ratio |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Total noninterest expense |
|
$ |
33,319 |
|
|
$ |
34,440 |
|
|
$ |
31,643 |
|
Amortization of
intangibles |
|
|
(1,752 |
) |
|
|
(1,770 |
) |
|
|
(1,227 |
) |
Merger-related expenses |
|
|
(136 |
) |
|
|
(409 |
) |
|
|
(128 |
) |
Noninterest expense used for efficiency ratio |
|
$ |
31,431 |
|
|
$ |
32,261 |
|
|
$ |
30,288 |
|
|
|
|
|
|
|
|
Net interest income, tax
equivalent(1) |
|
$ |
41,314 |
|
|
$ |
44,879 |
|
|
$ |
38,491 |
|
Plus: Noninterest income |
|
|
(4,046 |
) |
|
|
10,940 |
|
|
|
11,644 |
|
Less: Investment securities
(losses) gains, net |
|
|
(13,170 |
) |
|
|
(1 |
) |
|
|
40 |
|
Net revenues used for efficiency ratio |
|
$ |
50,438 |
|
|
$ |
55,820 |
|
|
$ |
50,095 |
|
|
|
|
|
|
|
|
Efficiency ratio(2) |
|
|
62.32 |
% |
|
|
57.79 |
% |
|
|
60.46 |
% |
(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 |
Adjusted
Earnings |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands, except per share data) |
|
|
2023 |
|
|
2022 |
|
|
2022 |
Net income |
|
$ |
1,397 |
|
$ |
16,002 |
|
$ |
13,895 |
After tax loss on sale of debt
securities(1) |
|
|
9,837 |
|
|
— |
|
|
— |
Adjusted earnings |
|
$ |
11,234 |
|
$ |
16,002 |
|
$ |
13,895 |
|
|
|
|
|
|
|
Weighted average diluted
common shares outstanding |
|
|
15,691 |
|
|
15,693 |
|
|
15,718 |
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
Earnings per common share - diluted |
|
$ |
0.09 |
|
$ |
1.02 |
|
$ |
0.88 |
Adjusted earnings per common share - diluted(2) |
|
$ |
0.72 |
|
$ |
1.02 |
|
$ |
0.88 |
(1) The income tax rate utilized was 25.3%.(2)
Adjusted earnings divided by weighted average diluted common shares
outstanding.
Category: Earnings
This news release may be downloaded from:
https://www.midwestonefinancial.com/corporate-profile/default.aspx
Source: MidWestOne Financial Group, Inc.
Industry: Banks
Contact: |
|
|
|
Charles N. Reeves |
|
Barry S. Ray |
|
Chief Executive Officer |
|
Chief Financial Officer |
|
319.356.5800 |
|
319.356.5800 |
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