MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or
the "Company”) today reported results for the first quarter of
2024.
First Quarter
2024
Summary1
-
Completed acquisition of Denver Bankshares, Inc. ("DNVB"), the
related core banking system conversion, and closure of the legacy
MidWestOne Denver banking office.
-
Net income of $3.3 million, or $0.21 per diluted common share.
-
Revenue was $44.5 million, comprised of net interest income of
$34.7 million and noninterest income of $9.8 million, which
included a negative MSR valuation adjustment of $368 thousand.
-
Credit loss expense of $4.7 million, which included day 1 credit
loss expense of $3.2 million related to the DNVB acquisition.
-
Noninterest Expense of $35.6 million, which included merger-related
costs of $1.3 million, OREO write-down expense of $311 thousand,
and non-acquisition related severance expense of $261
thousand.
-
Net interest margin (tax equivalent) expanded 11 bps to
2.33%2.
-
Annualized adjusted loan growth (excluding acquired DNVB loan
balances) of 8%.
-
Continued momentum in Wealth Management with revenue growth of
10%.
-
Nonperforming assets ratio remained stable at 0.49%; net charge-off
ratio was 0.02%.
CEO Commentary
Charles (Chip) Reeves, Chief Executive Officer
of the Company, commented, “We are very pleased with the underlying
strength of the first quarter as we continue to execute on our
strategic initiatives. During the quarter we closed and integrated
Denver Bankshares, the front end of our geographic realignment
announced in late September 2023, and our Florida divestiture
remains on track for a June 2024 closing.
Importantly, our net interest margin expanded
this quarter, rising 11 bps, with net interest income increasing 7%
from the fourth quarter of 2023. This outcome reflected the
strategic balance sheet actions taken in 2023, the completed merger
of DNVB, and continued loan growth in our targeted metro
markets.
In Commercial Banking and Wealth Management, our
customer and banker acquisition strategies led to robust balance
sheet, assets under management, and revenue gains, and we will
continue to invest in these critical business lines. Even amidst
significant talent, platform, and product investments, we have been
able to re-allocate resources to maintain expense discipline.
We welcome our new Bank of Denver team members,
and I am proud of our entire MidWestOne team for their commitment
to our customers and execution of our strategic plan."
__________________________________1 First Quarter Summary compares
to the fourth quarter of 2023 (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. |
|
|
As of or for the quarter ended |
(Dollars
in thousands, except per share amounts and as noted) |
|
March 31, |
|
December 31, |
|
March 31, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Financial
Results |
|
|
|
|
|
|
Revenue |
|
$ |
44,481 |
|
|
$ |
36,421 |
|
|
$ |
36,030 |
|
Credit loss expense |
|
|
4,689 |
|
|
|
1,768 |
|
|
|
933 |
|
Noninterest expense |
|
|
35,565 |
|
|
|
32,131 |
|
|
|
33,319 |
|
Net
income |
|
|
3,269 |
|
|
|
2,730 |
|
|
|
1,397 |
|
Per Common Share |
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
$ |
0.09 |
|
Book value |
|
|
33.53 |
|
|
|
33.41 |
|
|
|
31.94 |
|
Tangible book value(1) |
|
|
27.14 |
|
|
|
27.90 |
|
|
|
26.13 |
|
Balance Sheet & Credit Quality |
|
|
|
|
|
|
Loans In millions |
|
$ |
4,414.6 |
|
|
$ |
4,126.9 |
|
|
$ |
3,919.4 |
|
Investment securities In
millions |
|
|
1,862.2 |
|
|
|
1,870.3 |
|
|
|
2,071.8 |
|
Deposits In millions |
|
|
5,585.2 |
|
|
|
5,395.7 |
|
|
|
5,555.2 |
|
Net loan charge-offs In
millions |
|
|
0.2 |
|
|
|
2.1 |
|
|
|
0.3 |
|
Allowance for credit losses ratio |
|
|
1.27 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
Selected Ratios |
|
|
|
|
|
|
Return on average assets |
|
|
0.20 |
% |
|
|
0.17 |
% |
|
|
0.09 |
% |
Net interest margin, tax
equivalent(1) |
|
|
2.33 |
% |
|
|
2.22 |
% |
|
|
2.75 |
% |
Return on average equity |
|
|
2.49 |
% |
|
|
2.12 |
% |
|
|
1.14 |
% |
Return on average tangible
equity(1) |
|
|
4.18 |
% |
|
|
3.57 |
% |
|
|
2.70 |
% |
Efficiency ratio(1) |
|
|
71.28 |
% |
|
|
70.16 |
% |
|
|
62.32 |
% |
(1)
Non-GAAP measure. See the Non-GAAP Measures section for a
reconciliation to the most directly comparable GAAP measure. |
DENVER BANKSHARES, INC.
ACQUISITION
On January 31, 2024, we completed our
acquisition of Denver Bankshares, Inc, and its wholly-owned banking
subsidiary, the Bank of Denver. The assets acquired and liabilities
assumed have been accounted for under the acquisition method of
accounting. The assets and liabilities, both tangible and
intangible, were recorded at their fair values as of the January
31, 2024 acquisition date, net of any applicable tax effects. The
Company considers all purchase accounting estimates provisional and
fair values are subject to refinement for up to one year after the
close date.
The table below summarizes the amounts
recognized at the acquisition date for each major class of assets
acquired and liabilities assumed:
(In
thousands) |
|
As of January 31, 2024 |
Merger consideration |
|
|
Cash consideration |
|
$ |
32,600 |
|
Identifiable net
assets acquired, at fair value |
|
|
Assets acquired |
|
|
Cash and due from banks |
|
|
462 |
|
Interest earning deposits in banks |
|
|
3,517 |
|
Debt securities |
|
|
52,493 |
|
Loans held for investment |
|
|
207,095 |
|
Premises and equipment |
|
|
13,470 |
|
Core deposit intangible |
|
|
7,100 |
|
Other assets |
|
|
4,987 |
|
Total assets acquired |
|
|
289,124 |
|
Liabilities assumed |
|
|
Deposits |
|
|
(224,248 |
) |
Short-term borrowings |
|
|
(37,500 |
) |
Other liabilities |
|
|
(3,417 |
) |
Total liabilities assumed |
|
|
(265,165 |
) |
Identifiable net assets
acquired, at fair value |
|
|
23,959 |
|
Goodwill |
|
$ |
8,641 |
|
REVENUE REVIEW
Revenue |
|
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
1Q24 vs |
|
1Q24 vs |
(Dollars in
thousands) |
|
1Q24 |
|
4Q23 |
|
1Q23 |
|
4Q23 |
|
1Q23 |
Net interest income |
|
$ |
34,731 |
|
$ |
32,559 |
|
$ |
40,076 |
|
|
7 |
% |
|
(13 |
)% |
Noninterest income |
|
|
9,750 |
|
|
3,862 |
|
|
(4,046 |
) |
|
152 |
% |
|
n/m |
|
Total revenue, net of interest expense |
|
$ |
44,481 |
|
$ |
36,421 |
|
$ |
36,030 |
|
|
22 |
% |
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
Results
are not meaningful (n/m) |
Total revenue for the first quarter of 2024
increased $8.1 million from the fourth quarter of 2023 due to
higher noninterest income and net interest income during the
quarter. When compared to the first quarter of 2023, total revenue
increased $8.5 million due to higher noninterest income, partially
offset by lower net interest income.
Net interest income of $34.7 million for the
first quarter of 2024 increased $2.2 million from the fourth
quarter of 2023, primarily due to higher interest earning asset
volumes and yields, partially offset by higher interest bearing
liabilities volumes and funding costs. When compared to the first
quarter of 2023, net interest income decreased $5.3 million,
primarily due to higher funding costs and volumes, partially offset
by higher interest earning asset volumes and yields.
The Company's tax equivalent net interest margin
was 2.33%3 in the first quarter of 2024, compared to 2.22%3 in the
fourth quarter of 2023, as higher earning asset yields more than
offset increased funding costs. Total interest earning assets yield
during the first quarter of 2024 increased 20 bps from the fourth
quarter of 2023, as a result of increased loan and securities
yields of 17 bps and 10 bps, respectively. The cost of interest
bearing liabilities during the first quarter of 2024 increased 10
bps, to 2.75%, due primarily to interest bearing deposit costs of
2.45% and long-term debt of 6.86%, which increased 6 bps and 7 bps,
respectively, from the fourth quarter of 2023, as well as a
mix-shift to increased short-term borrowings. Our cycle-to-date
interest bearing deposit beta was 41%.
The Company's tax equivalent net interest margin
was 2.33%3 in the first quarter of 2024, compared to 2.75%3 in the
first quarter of 2023, driven by higher funding costs, partially
offset by higher interest earning asset yields. The cost of
interest bearing liabilities increased 116 bps to 2.75%, due to
interest bearing deposit costs of 2.45%, short-term borrowing costs
of 4.82%, and long-term debt costs of 6.86%, which increased 107
bps, 200 bps and 67 bps, respectively from the first quarter of
2023. Total interest earning assets yield increased 56 bps from the
first quarter of 2023, primarily as a result of an increase in loan
yields of 56 bps.
Noninterest Income (Loss) |
|
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
|
1Q24 vs |
|
1Q24 vs |
(In
thousands) |
|
1Q24 |
|
4Q23 |
|
1Q23 |
|
4Q23 |
|
1Q23 |
Investment services and trust activities |
|
$ |
3,503 |
|
|
$ |
3,193 |
|
|
$ |
2,933 |
|
|
10 |
% |
|
19 |
% |
Service charges and fees |
|
|
2,144 |
|
|
|
2,148 |
|
|
|
2,008 |
|
|
— |
% |
|
7 |
% |
Card
revenue |
|
|
1,943 |
|
|
|
1,802 |
|
|
|
1,748 |
|
|
8 |
% |
|
11 |
% |
Loan
revenue |
|
|
856 |
|
|
|
909 |
|
|
|
1,420 |
|
|
(6 |
)% |
|
(40 |
)% |
Bank-owned life insurance |
|
|
660 |
|
|
|
656 |
|
|
|
602 |
|
|
1 |
% |
|
10 |
% |
Investment securities gains (losses), net |
|
|
36 |
|
|
|
(5,696 |
) |
|
|
(13,170 |
) |
|
n/m |
|
|
n/m |
|
Other |
|
|
608 |
|
|
|
850 |
|
|
|
413 |
|
|
(28 |
)% |
|
47 |
% |
Total noninterest income (loss) |
|
$ |
9,750 |
|
|
$ |
3,862 |
|
|
$ |
(4,046 |
) |
|
152 |
% |
|
n/m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSR
Valuation Adjustment (included in loan revenue) |
|
|
(368 |
) |
|
|
(105 |
) |
|
|
315 |
|
|
250 |
% |
|
(217 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Results are not meaningful (n/m) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________________3 Non-GAAP measure. See the
separate Non-GAAP Measures section for a reconciliation to the most
directly comparable GAAP measure. |
Noninterest income for the first quarter of 2024
increased $5.9 million from the linked quarter, primarily due to
investment securities losses, net, of $5.7 million recorded in the
fourth quarter of 2023 as part of a balance sheet repositioning,
which did not recur in the first quarter of 2024. Investment
services and trust activities income increased $0.3 million during
the first quarter of 2024, as a result of growth in assets under
administration and market valuation.
Noninterest income for the first quarter of 2024
increased $13.8 million from the first quarter of 2023, primarily
due to the investment securities losses, net, of $13.2 million
recorded in the first quarter of 2023 as part of a balance sheet
repositioning, which did not recur in the first quarter of 2024.
Investment services and trust activities income increased $0.6
million compared to the first quarter of 2023, due to growth in
assets under administration. Partially offsetting these identified
increases was a decline of $0.6 million in loan revenue, which
primarily reflected the unfavorable year-over-year change in the
fair value of our mortgage servicing rights, from a positive
adjustment of $315 thousand in the first quarter of 2023 to a
negative adjustment of $368 thousand in the first quarter of
2024.
EXPENSE REVIEW
Noninterest Expense |
|
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
1Q24 vs |
|
1Q24 vs |
(In
thousands) |
|
1Q24 |
|
4Q23 |
|
1Q23 |
|
4Q23 |
|
1Q23 |
Compensation and employee benefits |
|
$ |
20,930 |
|
$ |
17,859 |
|
$ |
19,607 |
|
|
17 |
% |
|
7 |
% |
Occupancy expense of premises,
net |
|
|
2,813 |
|
|
2,309 |
|
|
2,746 |
|
|
22 |
% |
|
2 |
% |
Equipment |
|
|
2,600 |
|
|
2,466 |
|
|
2,171 |
|
|
5 |
% |
|
20 |
% |
Legal and professional |
|
|
2,059 |
|
|
2,269 |
|
|
1,736 |
|
|
(9 |
)% |
|
19 |
% |
Data processing |
|
|
1,360 |
|
|
1,411 |
|
|
1,363 |
|
|
(4 |
)% |
|
— |
% |
Marketing |
|
|
598 |
|
|
700 |
|
|
986 |
|
|
(15 |
)% |
|
(39 |
)% |
Amortization of
intangibles |
|
|
1,637 |
|
|
1,441 |
|
|
1,752 |
|
|
14 |
% |
|
(7 |
)% |
FDIC insurance |
|
|
942 |
|
|
900 |
|
|
749 |
|
|
5 |
% |
|
26 |
% |
Communications |
|
|
196 |
|
|
183 |
|
|
261 |
|
|
7 |
% |
|
(25 |
)% |
Foreclosed assets, net |
|
|
358 |
|
|
45 |
|
|
(28 |
) |
|
696 |
% |
|
n/m |
|
Other |
|
|
2,072 |
|
|
2,548 |
|
|
1,976 |
|
|
(19 |
)% |
|
5 |
% |
Total noninterest expense |
|
$ |
35,565 |
|
$ |
32,131 |
|
$ |
33,319 |
|
|
11 |
% |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Results are not meaningful
(n/m) |
|
|
|
|
|
|
|
|
|
|
Merger-related Expenses |
|
|
|
|
|
|
(In
thousands) |
|
1Q24 |
|
4Q23 |
|
1Q23 |
Compensation and employee benefits |
|
$ |
241 |
|
$ |
— |
|
$ |
70 |
Occupancy expense of premises,
net |
|
|
152 |
|
|
— |
|
|
— |
Equipment |
|
|
149 |
|
|
— |
|
|
— |
Legal and professional |
|
|
573 |
|
|
180 |
|
|
— |
Data processing |
|
|
61 |
|
|
— |
|
|
65 |
Marketing |
|
|
32 |
|
|
38 |
|
|
— |
Communications |
|
|
1 |
|
|
— |
|
|
— |
Other |
|
|
105 |
|
|
27 |
|
|
1 |
Total merger-related expenses |
|
$ |
1,314 |
|
$ |
245 |
|
$ |
136 |
Noninterest expense for the first quarter of
2024 increased $3.4 million from the linked quarter primarily due
to increases of $3.1 million, $0.5 million, and $0.3 million in
compensation and employee benefits, occupancy expense of premises,
net, and foreclosed assets, net, respectively. The increase in
compensation and employee benefits was primarily driven by annual
compensation adjustments, increased headcount as a result of the
DNVB acquisition, increased incentive and commission expense, and
merger-related expenses. The increase in occupancy was primarily
driven by additional expense as a result of the DNVB acquisition,
merger-related expenses, and increased costs for snow removal. The
increase in foreclosed assets expense was driven by a $0.3 million
write-down of other real estate owned.
Noninterest expense for the first quarter of
2024 increased $2.2 million from the first quarter of 2023,
primarily due to increases of $1.3 million, $0.4 million, and $0.4
million in compensation and employee benefits, equipment, and
foreclosed assets, net, respectively. The increase in compensation
and employee benefits was primarily driven by annual compensation
adjustments, increased headcount as a result of the DNVB
acquisition, increased incentive and commission expense, and
merger-related expenses. The increase in equipment reflected higher
software costs and merger-related expenses. The increase in
foreclosed assets, net, was due to a $0.3 million write-down of
other real estate owned. Partially offsetting these increases was a
decline of $0.4 million in marketing.
The Company's effective tax rate was 22.7% in
the first quarter of 2024. The effective income tax rate for 2024
is expected to be 21-23%.
BALANCE SHEET REVIEW
Total assets were $6.75 billion at
March 31, 2024, compared to $6.43 billion at December 31,
2023 and $6.41 billion at March 31, 2023. The increase from
December 31, 2023 was primarily driven by the assets acquired
from the acquisition of DNVB and organic loan growth. Compared to
March 31, 2023, the increase was primarily driven by the
assets acquired from the acquisition of DNVB, organic loan growth,
and higher cash balances, partially offset by lower securities
balances resulting from balance sheet repositioning executed in
2023.
Loans Held for Investment |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in thousands) |
|
Balance |
|
% ofTotal |
|
Balance |
|
% ofTotal |
|
Balance |
|
% ofTotal |
|
Commercial and industrial |
|
$ |
1,105,718 |
|
25.0 |
% |
$ |
1,075,003 |
|
26.0 |
% |
$ |
1,080,514 |
|
27.6 |
% |
Agricultural |
|
|
113,029 |
|
2.6 |
|
|
118,414 |
|
2.9 |
|
|
106,641 |
|
2.7 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
|
403,571 |
|
9.1 |
|
|
323,195 |
|
7.8 |
|
|
320,924 |
|
8.2 |
|
Farmland |
|
|
184,109 |
|
4.2 |
|
|
184,955 |
|
4.5 |
|
|
182,528 |
|
4.7 |
|
Multifamily |
|
|
409,504 |
|
9.3 |
|
|
383,178 |
|
9.3 |
|
|
255,065 |
|
6.5 |
|
Other |
|
|
1,440,645 |
|
32.7 |
|
|
1,333,982 |
|
32.4 |
|
|
1,290,454 |
|
33.0 |
|
Total commercial real estate |
|
|
2,437,829 |
|
55.3 |
|
|
2,225,310 |
|
54.0 |
|
|
2,048,971 |
|
52.4 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family first liens |
|
|
495,408 |
|
11.2 |
|
|
459,798 |
|
11.1 |
|
|
448,459 |
|
11.4 |
|
One-to-four family junior liens |
|
|
182,001 |
|
4.1 |
|
|
180,639 |
|
4.4 |
|
|
162,403 |
|
4.1 |
|
Total residential real estate |
|
|
677,409 |
|
15.3 |
|
|
640,437 |
|
15.5 |
|
|
610,862 |
|
15.5 |
|
Consumer |
|
|
80,661 |
|
1.8 |
|
|
67,783 |
|
1.6 |
|
|
72,377 |
|
1.8 |
|
Loans held for investment, net of unearned income |
|
$ |
4,414,646 |
|
100.0 |
% |
$ |
4,126,947 |
|
100.0 |
% |
$ |
3,919,365 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total commitments to extend credit |
|
$ |
1,230,612 |
|
|
|
$ |
1,210,796 |
|
|
|
$ |
1,205,902 |
|
|
|
Loans held for investment, net of unearned
income, increased $287.7 million, or 7.0%, to $4.41 billion from
$4.13 billion at December 31, 2023 and $495.3 million, or
12.6%, from $3.92 billion at March 31, 2023. This increase
from the fourth quarter of 2023 was driven by loans acquired in the
DNVB acquisition, organic loan growth, and higher line of credit
usage. The increase from the first quarter of 2023 was driven by
loans acquired in the DNVB acquisition and organic loan growth.
Investment Securities |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in
thousands) |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Available for sale |
|
$ |
797,230 |
|
42.8 |
% |
$ |
795,134 |
|
42.5 |
% |
$ |
954,074 |
|
46.1 |
% |
Held to maturity |
|
|
1,064,939 |
|
57.2 |
% |
|
1,075,190 |
|
57.5 |
% |
|
1,117,709 |
|
53.9 |
% |
Total investment securities |
|
$ |
1,862,169 |
|
|
|
$ |
1,870,324 |
|
|
|
$ |
2,071,783 |
|
|
|
Investment securities at March 31, 2024
were $1.86 billion, decreasing $8.2 million from December 31,
2023 and $209.6 million from March 31, 2023. The decrease from
the fourth quarter of 2023 was primarily due to the principal cash
flows received from scheduled payments, calls, and maturities. The
decrease from the first quarter of 2023 was primarily due to
balance sheet repositioning executed in 2023.
Deposits |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in
thousands) |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Noninterest bearing deposits |
|
$ |
920,764 |
|
16.5 |
% |
$ |
897,053 |
|
16.6 |
% |
$ |
989,469 |
|
17.8 |
% |
Interest checking
deposits |
|
|
1,349,823 |
|
24.2 |
|
|
1,320,435 |
|
24.5 |
|
|
1,476,948 |
|
26.6 |
|
Money market deposits |
|
|
1,122,717 |
|
20.1 |
|
|
1,105,493 |
|
20.5 |
|
|
969,238 |
|
17.4 |
|
Savings deposits |
|
|
728,276 |
|
13.0 |
|
|
650,655 |
|
12.1 |
|
|
631,811 |
|
11.4 |
|
Time deposits of $250 and
under |
|
|
787,851 |
|
14.1 |
|
|
752,214 |
|
13.9 |
|
|
599,302 |
|
10.8 |
|
Total core deposits |
|
|
4,909,431 |
|
87.9 |
|
|
4,725,850 |
|
87.6 |
|
|
4,666,768 |
|
84.0 |
|
Brokered time deposits |
|
|
205,000 |
|
3.7 |
|
|
221,039 |
|
4.1 |
|
|
366,539 |
|
6.6 |
|
Time deposits over $250 |
|
|
470,805 |
|
8.4 |
|
|
448,784 |
|
8.3 |
|
|
521,846 |
|
9.4 |
|
Total deposits |
|
$ |
5,585,236 |
|
100.0 |
% |
$ |
5,395,673 |
|
100.0 |
% |
$ |
5,555,153 |
|
100.0 |
% |
Deposits increased $189.6 million, or 3.5%, to
$5.59 billion, from $5.40 billion at December 31, 2023,
primarily due to the $224.2 million of deposits assumed in the DNVB
acquisition. Total deposits increased $30.1 million, or 0.5%, from
$5.56 billion at March 31, 2023 due to the DNVB acquisition,
partially offset by a decline of $161.5 million in brokered
deposits.
Borrowed Funds |
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
|
(Dollars in
thousands) |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Short-term borrowings |
|
$ |
422,988 |
|
77.6 |
% |
$ |
300,264 |
|
70.9 |
% |
$ |
143,981 |
|
51.1 |
% |
Long-term debt |
|
|
122,066 |
|
22.4 |
% |
|
123,296 |
|
29.1 |
% |
|
137,981 |
|
48.9 |
% |
Total borrowed funds |
|
$ |
545,054 |
|
|
|
$ |
423,560 |
|
|
|
$ |
281,962 |
|
|
|
Borrowed funds were $545.1 million at
March 31, 2024, an increase of $121.5 million from
December 31, 2023 and an increase of $263.1 million from
March 31, 2023. The increase compared to the linked quarter
was due to higher Bank Term Funding Program borrowings and other
short-term borrowings, partially offset by lower Federal Home Loan
Bank overnight borrowings. The increase compared to March 31,
2023 was primarily due to higher Bank Term Funding Program
borrowings and other short-term borrowings, partially offset by
lower Federal Home Loan Bank overnight borrowings and securities
sold under agreements to repurchase.
Capital |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in
thousands) |
|
2024(1) |
|
|
2023 |
|
|
|
2023 |
|
Total shareholders' equity |
|
$ |
528,040 |
|
|
$ |
524,378 |
|
|
$ |
500,650 |
|
Accumulated other comprehensive loss |
|
|
(60,804 |
) |
|
|
(64,899 |
) |
|
|
(78,885 |
) |
MidWestOne Financial
Group, Inc. Consolidated |
|
|
|
|
|
|
Tier 1 leverage to average
assets ratio |
|
|
8.16 |
% |
|
|
8.58 |
% |
|
|
8.30 |
% |
Common equity tier 1 capital
to risk-weighted assets ratio |
|
|
8.98 |
% |
|
|
9.59 |
% |
|
|
9.39 |
% |
Tier 1 capital to
risk-weighted assets ratio |
|
|
9.75 |
% |
|
|
10.38 |
% |
|
|
10.18 |
% |
Total capital to risk-weighted
assets ratio |
|
|
11.97 |
% |
|
|
12.53 |
% |
|
|
12.31 |
% |
MidWestOne
Bank |
|
|
|
|
|
|
Tier 1 leverage to average
assets ratio |
|
|
9.36 |
% |
|
|
9.39 |
% |
|
|
9.28 |
% |
Common equity tier 1 capital
to risk-weighted assets ratio |
|
|
11.20 |
% |
|
|
11.54 |
% |
|
|
11.40 |
% |
Tier 1 capital to
risk-weighted assets ratio |
|
|
11.20 |
% |
|
|
11.54 |
% |
|
|
11.40 |
% |
Total
capital to risk-weighted assets ratio |
|
|
12.25 |
% |
|
|
12.49 |
% |
|
|
12.31 |
% |
(1) Regulatory capital ratios for March 31, 2024 are
preliminary |
|
|
|
|
|
|
Total shareholders' equity at March 31,
2024 increased $3.7 million from December 31, 2023, driven by
decreases in accumulated other comprehensive loss and treasury
stock, partially offset by the decline in additional paid-in
capital and retained earnings. Total shareholders' equity at
March 31, 2024 increased $27.4 million from March 31,
2023, driven by decreases in accumulated other comprehensive loss
and treasury stock, coupled with an increase in retained
earnings.
Accumulated other comprehensive loss at
March 31, 2024 decreased $4.1 million compared to
December 31, 2023, primarily due to an increase in available
for sale securities valuations. Accumulated other comprehensive
loss decreased $18.1 million from March 31, 2023, primarily
due to an increase in available for sale securities valuations and
the recognition of the loss from the fourth quarter of 2023 sale of
securities.
On April 25, 2024, the Board of Directors
of the Company declared a cash dividend of $0.2425 per common
share. The dividend is payable June 17, 2024, to shareholders
of record at the close of business on June 3, 2024.
No common shares were repurchased by the Company
during the period December 31, 2023 through March 31,
2024 or for the subsequent period through April 25, 2024. The
current share repurchase program allows for the repurchase of up to
$15.0 million of the Company's common shares.
CREDIT QUALITY REVIEW
Credit Quality |
|
As of or For the Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Credit loss expense related to
loans |
|
$ |
4,589 |
|
|
$ |
1,968 |
|
|
$ |
933 |
|
Net charge-offs |
|
|
189 |
|
|
|
2,068 |
|
|
|
333 |
|
Allowance for credit losses |
|
|
55,900 |
|
|
|
51,500 |
|
|
|
49,800 |
|
Pass |
|
$ |
4,098,102 |
|
|
$ |
3,846,012 |
|
|
$ |
3,728,522 |
|
Special Mention / Watch |
|
|
152,604 |
|
|
|
113,029 |
|
|
|
92,075 |
|
Classified |
|
|
163,940 |
|
|
|
167,906 |
|
|
|
98,768 |
|
Loans greater than 30 days past due and accruing |
|
$ |
8,772 |
|
|
$ |
10,778 |
|
|
$ |
4,932 |
|
Nonperforming loans |
|
$ |
29,267 |
|
|
$ |
26,359 |
|
|
$ |
14,442 |
|
Nonperforming assets |
|
|
33,164 |
|
|
|
30,288 |
|
|
|
14,442 |
|
Net charge-off ratio(1) |
|
|
0.02 |
% |
|
|
0.20 |
% |
|
|
0.03 |
% |
Classified loans ratio(2) |
|
|
3.71 |
% |
|
|
4.07 |
% |
|
|
2.52 |
% |
Nonperforming loans
ratio(3) |
|
|
0.66 |
% |
|
|
0.64 |
% |
|
|
0.37 |
% |
Nonperforming assets
ratio(4) |
|
|
0.49 |
% |
|
|
0.47 |
% |
|
|
0.23 |
% |
Allowance for credit losses
ratio(5) |
|
|
1.27 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
Allowance for credit losses to
nonaccrual loans ratio(6) |
|
|
197.53 |
% |
|
|
198.91 |
% |
|
|
344.88 |
% |
(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. |
Compared to the linked quarter, the
nonperforming loans and nonperforming assets ratios remained
stable, with slight increases in both ratios of 2 bps, to 0.66% and
0.49%, respectively. Special mention/watch balances increased $39.6
million from the linked quarter primarily due to two trucking
industry relationships, while the classified loans ratio decreased
36 bps from the linked quarter. When compared to the prior year,
the nonperforming loans and assets ratios increased 29 bps and 26
bps, respectively. Further, the net charge-off ratio declined 18
bps from the linked quarter and 1 bp from the same period in the
prior year.
As of March 31, 2024, the allowance for
credit losses was $55.9 million and the allowance for credit losses
ratio was 1.27%, compared with $51.5 million and 1.25% at
December 31, 2023. Credit loss expense of $4.7 million in the
first quarter of 2024 reflected $3.2 million of day 1 credit loss
expense related to the DNVB acquisition, as well as additional
reserve taken to support organic loan growth.
Nonperforming Loans Roll Forward(Dollars in
thousands) |
|
Nonaccrual |
|
|
90+ Days Past Due & Still Accruing |
|
|
Total |
|
Balance at December 31,
2023 |
|
$ |
25,891 |
|
|
$ |
468 |
|
|
$ |
26,359 |
|
Loans placed on nonaccrual or
90+ days past due & still accruing |
|
|
3,509 |
|
|
|
1,034 |
|
|
|
4,543 |
|
Acquired loan portfolio |
|
|
6 |
|
|
|
164 |
|
|
|
170 |
|
Proceeds related to repayment
or sale |
|
|
(306 |
) |
|
|
(1 |
) |
|
|
(307 |
) |
Loans returned to accrual
status or no longer past due |
|
|
(352 |
) |
|
|
(293 |
) |
|
|
(645 |
) |
Charge-offs |
|
|
(183 |
) |
|
|
(353 |
) |
|
|
(536 |
) |
Transfers to foreclosed
assets |
|
|
(265 |
) |
|
|
(16 |
) |
|
|
(281 |
) |
Transfer to nonaccrual |
|
|
— |
|
|
|
(36 |
) |
|
|
(36 |
) |
Balance at March 31,
2024 |
|
$ |
28,300 |
|
|
$ |
967 |
|
|
$ |
29,267 |
|
CONFERENCE CALL DETAILS
The Company will host a conference call for
investors at 11:00 a.m. CT on Friday, April 26, 2024. To
participate, you may pre-register for this call utilizing the
following link:
https://www.netroadshow.com/events/login?show=0114d1d0&confId=63215.
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 891090 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 25,
2024 by calling 1-866-813-9403 and using the replay access code of
561214. 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 or
branch sales (including the sale of our Florida branches and the
recent acquisition of DNVB), 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
significant increases in inflation and interest rates since 2020,
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; (8) legislative and regulatory changes, including
changes in banking, securities, trade, and tax laws and regulations
and their application by our regulators, including the 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, including the risk of a
recession; (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 ongoing Israeli-Palestinian conflict 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; (22) 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; (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) potential
changes in federal policy and at regulatory agencies as a result of
the upcoming 2024 presidential election; (25) the concentration of
large deposits from certain clients who have balances above current
FDIC insurance limits; (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 that
resulted in recent bank failures; and (27) 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
|
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
(In thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
68,430 |
|
|
$ |
76,237 |
|
|
$ |
71,015 |
|
|
$ |
75,955 |
|
|
$ |
63,945 |
|
Interest earning deposits in
banks |
|
|
29,328 |
|
|
|
5,479 |
|
|
|
3,773 |
|
|
|
68,603 |
|
|
|
5,273 |
|
Federal funds sold |
|
|
4 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total cash and cash equivalents |
|
|
97,762 |
|
|
|
81,727 |
|
|
|
74,788 |
|
|
|
144,558 |
|
|
|
69,218 |
|
Debt securities available for
sale at fair value |
|
|
797,230 |
|
|
|
795,134 |
|
|
|
872,770 |
|
|
|
903,520 |
|
|
|
954,074 |
|
Held to maturity securities at
amortized cost |
|
|
1,064,939 |
|
|
|
1,075,190 |
|
|
|
1,085,751 |
|
|
|
1,099,569 |
|
|
|
1,117,709 |
|
Total securities |
|
|
1,862,169 |
|
|
|
1,870,324 |
|
|
|
1,958,521 |
|
|
|
2,003,089 |
|
|
|
2,071,783 |
|
Loans held for sale |
|
|
2,329 |
|
|
|
1,045 |
|
|
|
2,528 |
|
|
|
2,821 |
|
|
|
2,553 |
|
Gross loans held for
investment |
|
|
4,433,258 |
|
|
|
4,138,352 |
|
|
|
4,078,060 |
|
|
|
4,031,377 |
|
|
|
3,932,900 |
|
Unearned income, net |
|
|
(18,612 |
) |
|
|
(11,405 |
) |
|
|
(12,091 |
) |
|
|
(12,728 |
) |
|
|
(13,535 |
) |
Loans held for investment, net of unearned income |
|
|
4,414,646 |
|
|
|
4,126,947 |
|
|
|
4,065,969 |
|
|
|
4,018,649 |
|
|
|
3,919,365 |
|
Allowance for credit
losses |
|
|
(55,900 |
) |
|
|
(51,500 |
) |
|
|
(51,600 |
) |
|
|
(50,400 |
) |
|
|
(49,800 |
) |
Total loans held for investment, net |
|
|
4,358,746 |
|
|
|
4,075,447 |
|
|
|
4,014,369 |
|
|
|
3,968,249 |
|
|
|
3,869,565 |
|
Premises and equipment,
net |
|
|
95,986 |
|
|
|
85,742 |
|
|
|
85,589 |
|
|
|
85,831 |
|
|
|
86,208 |
|
Goodwill |
|
|
71,118 |
|
|
|
62,477 |
|
|
|
62,477 |
|
|
|
62,477 |
|
|
|
62,477 |
|
Other intangible assets,
net |
|
|
29,531 |
|
|
|
24,069 |
|
|
|
25,510 |
|
|
|
26,969 |
|
|
|
28,563 |
|
Foreclosed assets, net |
|
|
3,897 |
|
|
|
3,929 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other assets |
|
|
226,477 |
|
|
|
222,780 |
|
|
|
244,036 |
|
|
|
227,495 |
|
|
|
219,585 |
|
Total assets |
|
$ |
6,748,015 |
|
|
$ |
6,427,540 |
|
|
$ |
6,467,818 |
|
|
$ |
6,521,489 |
|
|
$ |
6,409,952 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
deposits |
|
$ |
920,764 |
|
|
$ |
897,053 |
|
|
$ |
924,213 |
|
|
$ |
897,923 |
|
|
$ |
989,469 |
|
Interest bearing deposits |
|
|
4,664,472 |
|
|
|
4,498,620 |
|
|
|
4,439,111 |
|
|
|
4,547,524 |
|
|
|
4,565,684 |
|
Total deposits |
|
|
5,585,236 |
|
|
|
5,395,673 |
|
|
|
5,363,324 |
|
|
|
5,445,447 |
|
|
|
5,555,153 |
|
Short-term borrowings |
|
|
422,988 |
|
|
|
300,264 |
|
|
|
373,956 |
|
|
|
362,054 |
|
|
|
143,981 |
|
Long-term debt |
|
|
122,066 |
|
|
|
123,296 |
|
|
|
124,526 |
|
|
|
125,752 |
|
|
|
137,981 |
|
Other liabilities |
|
|
89,685 |
|
|
|
83,929 |
|
|
|
100,601 |
|
|
|
86,895 |
|
|
|
72,187 |
|
Total liabilities |
|
|
6,219,975 |
|
|
|
5,903,162 |
|
|
|
5,962,407 |
|
|
|
6,020,148 |
|
|
|
5,909,302 |
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
Additional paid-in
capital |
|
|
300,845 |
|
|
|
302,157 |
|
|
|
301,889 |
|
|
|
301,424 |
|
|
|
300,966 |
|
Retained earnings |
|
|
294,066 |
|
|
|
294,784 |
|
|
|
295,862 |
|
|
|
290,548 |
|
|
|
286,767 |
|
Treasury stock |
|
|
(22,648 |
) |
|
|
(24,245 |
) |
|
|
(24,315 |
) |
|
|
(24,508 |
) |
|
|
(24,779 |
) |
Accumulated other
comprehensive loss |
|
|
(60,804 |
) |
|
|
(64,899 |
) |
|
|
(84,606 |
) |
|
|
(82,704 |
) |
|
|
(78,885 |
) |
Total shareholders' equity |
|
|
528,040 |
|
|
|
524,378 |
|
|
|
505,411 |
|
|
|
501,341 |
|
|
|
500,650 |
|
Total liabilities and shareholders' equity |
|
$ |
6,748,015 |
|
|
$ |
6,427,540 |
|
|
$ |
6,467,818 |
|
|
$ |
6,521,489 |
|
|
$ |
6,409,952 |
|
MIDWESTONE FINANCIAL
GROUP, INC. 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) |
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2023 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
57,947 |
|
$ |
54,093 |
|
|
$ |
51,870 |
|
$ |
49,726 |
|
|
$ |
46,490 |
|
Taxable investment securities |
|
|
9,460 |
|
|
9,274 |
|
|
|
9,526 |
|
|
9,734 |
|
|
|
10,444 |
|
Tax-exempt investment securities |
|
|
1,710 |
|
|
1,789 |
|
|
|
1,802 |
|
|
1,822 |
|
|
|
2,127 |
|
Other |
|
|
418 |
|
|
230 |
|
|
|
374 |
|
|
68 |
|
|
|
244 |
|
Total interest income |
|
|
69,535 |
|
|
65,386 |
|
|
|
63,572 |
|
|
61,350 |
|
|
|
59,305 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
27,726 |
|
|
27,200 |
|
|
|
23,128 |
|
|
20,117 |
|
|
|
15,319 |
|
Short-term borrowings |
|
|
4,975 |
|
|
3,496 |
|
|
|
3,719 |
|
|
2,118 |
|
|
|
1,786 |
|
Long-term debt |
|
|
2,103 |
|
|
2,131 |
|
|
|
2,150 |
|
|
2,153 |
|
|
|
2,124 |
|
Total interest expense |
|
|
34,804 |
|
|
32,827 |
|
|
|
28,997 |
|
|
24,388 |
|
|
|
19,229 |
|
Net interest income |
|
|
34,731 |
|
|
32,559 |
|
|
|
34,575 |
|
|
36,962 |
|
|
|
40,076 |
|
Credit loss expense |
|
|
4,689 |
|
|
1,768 |
|
|
|
1,551 |
|
|
1,597 |
|
|
|
933 |
|
Net interest income after credit loss expense |
|
|
30,042 |
|
|
30,791 |
|
|
|
33,024 |
|
|
35,365 |
|
|
|
39,143 |
|
Noninterest income (loss) |
|
|
|
|
|
|
|
|
|
|
Investment services and trust activities |
|
|
3,503 |
|
|
3,193 |
|
|
|
3,004 |
|
|
3,119 |
|
|
|
2,933 |
|
Service charges and fees |
|
|
2,144 |
|
|
2,148 |
|
|
|
2,146 |
|
|
2,047 |
|
|
|
2,008 |
|
Card revenue |
|
|
1,943 |
|
|
1,802 |
|
|
|
1,817 |
|
|
1,847 |
|
|
|
1,748 |
|
Loan revenue |
|
|
856 |
|
|
909 |
|
|
|
1,462 |
|
|
909 |
|
|
|
1,420 |
|
Bank-owned life insurance |
|
|
660 |
|
|
656 |
|
|
|
626 |
|
|
616 |
|
|
|
602 |
|
Investment securities gains (losses), net |
|
|
36 |
|
|
(5,696 |
) |
|
|
79 |
|
|
(2 |
) |
|
|
(13,170 |
) |
Other |
|
|
608 |
|
|
850 |
|
|
|
727 |
|
|
210 |
|
|
|
413 |
|
Total noninterest income (loss) |
|
|
9,750 |
|
|
3,862 |
|
|
|
9,861 |
|
|
8,746 |
|
|
|
(4,046 |
) |
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
|
20,930 |
|
|
17,859 |
|
|
|
18,558 |
|
|
20,386 |
|
|
|
19,607 |
|
Occupancy expense of premises, net |
|
|
2,813 |
|
|
2,309 |
|
|
|
2,405 |
|
|
2,574 |
|
|
|
2,746 |
|
Equipment |
|
|
2,600 |
|
|
2,466 |
|
|
|
2,123 |
|
|
2,435 |
|
|
|
2,171 |
|
Legal and professional |
|
|
2,059 |
|
|
2,269 |
|
|
|
1,678 |
|
|
1,682 |
|
|
|
1,736 |
|
Data processing |
|
|
1,360 |
|
|
1,411 |
|
|
|
1,504 |
|
|
1,521 |
|
|
|
1,363 |
|
Marketing |
|
|
598 |
|
|
700 |
|
|
|
782 |
|
|
1,142 |
|
|
|
986 |
|
Amortization of intangibles |
|
|
1,637 |
|
|
1,441 |
|
|
|
1,460 |
|
|
1,594 |
|
|
|
1,752 |
|
FDIC insurance |
|
|
942 |
|
|
900 |
|
|
|
783 |
|
|
862 |
|
|
|
749 |
|
Communications |
|
|
196 |
|
|
183 |
|
|
|
206 |
|
|
260 |
|
|
|
261 |
|
Foreclosed assets, net |
|
|
358 |
|
|
45 |
|
|
|
2 |
|
|
(6 |
) |
|
|
(28 |
) |
Other |
|
|
2,072 |
|
|
2,548 |
|
|
|
2,043 |
|
|
2,469 |
|
|
|
1,976 |
|
Total noninterest expense |
|
|
35,565 |
|
|
32,131 |
|
|
|
31,544 |
|
|
34,919 |
|
|
|
33,319 |
|
Income before income tax expense |
|
|
4,227 |
|
|
2,522 |
|
|
|
11,341 |
|
|
9,192 |
|
|
|
1,778 |
|
Income tax expense (benefit) |
|
|
958 |
|
|
(208 |
) |
|
|
2,203 |
|
|
1,598 |
|
|
|
381 |
|
Net income |
|
$ |
3,269 |
|
$ |
2,730 |
|
|
$ |
9,138 |
|
$ |
7,594 |
|
|
$ |
1,397 |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.21 |
|
$ |
0.17 |
|
|
$ |
0.58 |
|
$ |
0.48 |
|
|
$ |
0.09 |
|
Diluted |
|
$ |
0.21 |
|
$ |
0.17 |
|
|
$ |
0.58 |
|
$ |
0.48 |
|
|
$ |
0.09 |
|
Weighted average basic common
shares outstanding |
|
|
15,723 |
|
|
15,693 |
|
|
|
15,689 |
|
|
15,680 |
|
|
|
15,650 |
|
Weighted average diluted
common shares outstanding |
|
|
15,774 |
|
|
15,756 |
|
|
|
15,711 |
|
|
15,689 |
|
|
|
15,691 |
|
Dividends paid per common
share |
|
$ |
0.2425 |
|
$ |
0.2425 |
|
|
$ |
0.2425 |
|
$ |
0.2425 |
|
|
$ |
0.2425 |
|
MIDWESTONE FINANCIAL
GROUP, INC. FINANCIAL STATISTICS
|
|
As of or for the Three Months Ended |
|
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands, except per share
amounts) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Earnings: |
|
|
|
|
|
|
Net interest income |
|
$ |
34,731 |
|
|
$ |
32,559 |
|
|
$ |
40,076 |
|
Noninterest income |
|
|
9,750 |
|
|
|
3,862 |
|
|
|
(4,046 |
) |
Total revenue, net of interest expense |
|
|
44,481 |
|
|
|
36,421 |
|
|
|
36,030 |
|
Credit loss expense |
|
|
4,689 |
|
|
|
1,768 |
|
|
|
933 |
|
Noninterest expense |
|
|
35,565 |
|
|
|
32,131 |
|
|
|
33,319 |
|
Income before income tax expense |
|
|
4,227 |
|
|
|
2,522 |
|
|
|
1,778 |
|
Income tax expense
(benefit) |
|
|
958 |
|
|
|
(208 |
) |
|
|
381 |
|
Net income |
|
$ |
3,269 |
|
|
$ |
2,730 |
|
|
$ |
1,397 |
|
Per Share
Data: |
|
|
|
|
|
|
Diluted earnings |
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
$ |
0.09 |
|
Book value |
|
|
33.53 |
|
|
|
33.41 |
|
|
|
31.94 |
|
Tangible book value(1) |
|
|
27.14 |
|
|
|
27.90 |
|
|
|
26.13 |
|
Ending Balance
Sheet: |
|
|
|
|
|
|
Total assets |
|
$ |
6,748,015 |
|
|
$ |
6,427,540 |
|
|
$ |
6,409,952 |
|
Loans held for investment, net
of unearned income |
|
|
4,414,646 |
|
|
|
4,126,947 |
|
|
|
3,919,365 |
|
Total securities |
|
|
1,862,169 |
|
|
|
1,870,324 |
|
|
|
2,071,783 |
|
Total deposits |
|
|
5,585,236 |
|
|
|
5,395,673 |
|
|
|
5,555,153 |
|
Short-term borrowings |
|
|
422,988 |
|
|
|
300,264 |
|
|
|
143,981 |
|
Long-term debt |
|
|
122,066 |
|
|
|
123,296 |
|
|
|
137,981 |
|
Total shareholders'
equity |
|
|
528,040 |
|
|
|
524,378 |
|
|
|
500,650 |
|
Average Balance
Sheet: |
|
|
|
|
|
|
Average total assets |
|
$ |
6,635,379 |
|
|
$ |
6,459,705 |
|
|
$ |
6,524,065 |
|
Average total loans |
|
|
4,298,216 |
|
|
|
4,080,243 |
|
|
|
3,867,110 |
|
Average total deposits |
|
|
5,481,114 |
|
|
|
5,443,323 |
|
|
|
5,546,694 |
|
Financial
Ratios: |
|
|
|
|
|
|
Return on average assets |
|
|
0.20 |
% |
|
|
0.17 |
% |
|
|
0.09 |
% |
Return on average equity |
|
|
2.49 |
% |
|
|
2.12 |
% |
|
|
1.14 |
% |
Return on average tangible
equity(1) |
|
|
4.18 |
% |
|
|
3.57 |
% |
|
|
2.70 |
% |
Efficiency ratio(1) |
|
|
71.28 |
% |
|
|
70.16 |
% |
|
|
62.32 |
% |
Net interest margin, tax
equivalent(1) |
|
|
2.33 |
% |
|
|
2.22 |
% |
|
|
2.75 |
% |
Loans to deposits ratio |
|
|
79.04 |
% |
|
|
76.49 |
% |
|
|
70.55 |
% |
Common equity ratio |
|
|
7.83 |
% |
|
|
8.16 |
% |
|
|
7.81 |
% |
Tangible common equity
ratio(1) |
|
|
6.43 |
% |
|
|
6.90 |
% |
|
|
6.48 |
% |
Credit Risk
Profile: |
|
|
|
|
|
|
Total nonperforming loans |
|
$ |
29,267 |
|
|
$ |
26,359 |
|
|
$ |
14,442 |
|
Nonperforming loans ratio |
|
|
0.66 |
% |
|
|
0.64 |
% |
|
|
0.37 |
% |
Total nonperforming
assets |
|
$ |
33,164 |
|
|
$ |
30,288 |
|
|
$ |
14,442 |
|
Nonperforming assets
ratio |
|
|
0.49 |
% |
|
|
0.47 |
% |
|
|
0.23 |
% |
Net charge-offs |
|
$ |
189 |
|
|
$ |
2,068 |
|
|
$ |
333 |
|
Net charge-off ratio |
|
|
0.02 |
% |
|
|
0.20 |
% |
|
|
0.03 |
% |
Allowance for credit
losses |
|
$ |
55,900 |
|
|
$ |
51,500 |
|
|
$ |
49,800 |
|
Allowance for credit losses
ratio |
|
|
1.27 |
% |
|
|
1.25 |
% |
|
|
1.27 |
% |
Allowance for credit losses to
nonaccrual ratio |
|
|
197.53 |
% |
|
|
198.91 |
% |
|
|
344.88 |
% |
|
|
|
|
|
|
|
(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 |
|
|
March 31, 2024 |
|
December 31, 2023 |
|
March 31, 2023 |
(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) |
|
$ |
4,298,216 |
|
$ |
58,867 |
|
5.51 |
% |
|
$ |
4,080,243 |
|
$ |
54,939 |
|
5.34 |
% |
|
$ |
3,867,110 |
|
$ |
47,206 |
|
4.95 |
% |
Taxable investment
securities |
|
|
1,557,603 |
|
|
9,460 |
|
2.44 |
% |
|
|
1,593,699 |
|
|
9,274 |
|
2.31 |
% |
|
|
1,811,388 |
|
|
10,444 |
|
2.34 |
% |
Tax-exempt investment
securities (2)(4) |
|
|
328,736 |
|
|
2,097 |
|
2.57 |
% |
|
|
338,243 |
|
|
2,217 |
|
2.60 |
% |
|
|
397,110 |
|
|
2,649 |
|
2.71 |
% |
Total securities held for investment(2) |
|
|
1,886,339 |
|
|
11,557 |
|
2.46 |
% |
|
|
1,931,942 |
|
|
11,491 |
|
2.36 |
% |
|
|
2,208,498 |
|
|
13,093 |
|
2.40 |
% |
Other |
|
|
30,605 |
|
|
418 |
|
5.49 |
% |
|
|
22,937 |
|
|
230 |
|
3.98 |
% |
|
|
24,848 |
|
|
244 |
|
3.98 |
% |
Total interest earning assets(2) |
|
$ |
6,215,160 |
|
$ |
70,842 |
|
4.58 |
% |
|
$ |
6,035,122 |
|
$ |
66,660 |
|
4.38 |
% |
|
$ |
6,100,456 |
|
$ |
60,543 |
|
4.02 |
% |
Other assets |
|
|
420,219 |
|
|
|
|
|
|
424,583 |
|
|
|
|
|
|
423,609 |
|
|
|
|
Total assets |
|
$ |
6,635,379 |
|
|
|
|
|
$ |
6,459,705 |
|
|
|
|
|
$ |
6,524,065 |
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking
deposits |
|
$ |
1,301,470 |
|
$ |
2,890 |
|
0.89 |
% |
|
$ |
1,305,759 |
|
$ |
2,991 |
|
0.91 |
% |
|
$ |
1,515,845 |
|
$ |
1,849 |
|
0.49 |
% |
Money market deposits |
|
|
1,102,543 |
|
|
8,065 |
|
2.94 |
% |
|
|
1,103,637 |
|
|
7,954 |
|
2.86 |
% |
|
|
930,543 |
|
|
3,269 |
|
1.42 |
% |
Savings deposits |
|
|
694,143 |
|
|
2,047 |
|
1.19 |
% |
|
|
639,766 |
|
|
1,493 |
|
0.93 |
% |
|
|
653,043 |
|
|
272 |
|
0.17 |
% |
Time deposits |
|
|
1,446,981 |
|
|
14,724 |
|
4.09 |
% |
|
|
1,463,498 |
|
|
14,762 |
|
4.00 |
% |
|
|
1,417,688 |
|
|
9,929 |
|
2.84 |
% |
Total interest bearing deposits |
|
|
4,545,137 |
|
|
27,726 |
|
2.45 |
% |
|
|
4,512,660 |
|
|
27,200 |
|
2.39 |
% |
|
|
4,517,119 |
|
|
15,319 |
|
1.38 |
% |
Securities sold under
agreements to repurchase |
|
|
5,330 |
|
|
11 |
|
0.83 |
% |
|
|
8,661 |
|
|
17 |
|
0.78 |
% |
|
|
145,809 |
|
|
450 |
|
1.25 |
% |
Other short-term
borrowings |
|
|
409,525 |
|
|
4,964 |
|
4.88 |
% |
|
|
273,963 |
|
|
3,479 |
|
5.04 |
% |
|
|
111,306 |
|
|
1,336 |
|
4.87 |
% |
Short-term borrowings |
|
|
414,855 |
|
|
4,975 |
|
4.82 |
% |
|
|
282,624 |
|
|
3,496 |
|
4.91 |
% |
|
|
257,115 |
|
|
1,786 |
|
2.82 |
% |
Long-term debt |
|
|
123,266 |
|
|
2,103 |
|
6.86 |
% |
|
|
124,495 |
|
|
2,131 |
|
6.79 |
% |
|
|
139,208 |
|
|
2,124 |
|
6.19 |
% |
Total borrowed funds |
|
|
538,121 |
|
|
7,078 |
|
5.29 |
% |
|
|
407,119 |
|
|
5,627 |
|
5.48 |
% |
|
|
396,323 |
|
|
3,910 |
|
4.00 |
% |
Total interest bearing liabilities |
|
$ |
5,083,258 |
|
$ |
34,804 |
|
2.75 |
% |
|
$ |
4,919,779 |
|
$ |
32,827 |
|
2.65 |
% |
|
$ |
4,913,442 |
|
$ |
19,229 |
|
1.59 |
% |
Noninterest bearing
deposits |
|
|
935,977 |
|
|
|
|
|
|
930,663 |
|
|
|
|
|
|
1,029,575 |
|
|
|
|
Other liabilities |
|
|
88,611 |
|
|
|
|
|
|
98,027 |
|
|
|
|
|
|
82,501 |
|
|
|
|
Shareholders’ equity |
|
|
527,533 |
|
|
|
|
|
|
511,236 |
|
|
|
|
|
|
498,547 |
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
6,635,379 |
|
|
|
|
|
$ |
6,459,705 |
|
|
|
|
|
$ |
6,524,065 |
|
|
|
|
Net interest income(2) |
|
|
|
$ |
36,038 |
|
|
|
|
|
$ |
33,833 |
|
|
|
|
|
$ |
41,314 |
|
|
Net interest spread(2) |
|
|
|
|
|
1.83 |
% |
|
|
|
|
|
1.73 |
% |
|
|
|
|
|
2.43 |
% |
Net interest margin(2) |
|
|
|
|
|
2.33 |
% |
|
|
|
|
|
2.22 |
% |
|
|
|
|
|
2.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits(5) |
|
$ |
5,481,114 |
|
$ |
27,726 |
|
2.03 |
% |
|
$ |
5,443,323 |
|
$ |
27,200 |
|
1.98 |
% |
|
$ |
5,546,694 |
|
$ |
15,319 |
|
1.12 |
% |
Cost of funds(6) |
|
|
|
|
|
2.33 |
% |
|
|
|
|
|
2.23 |
% |
|
|
|
|
|
1.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 $237 thousand, $207
thousand, and $95 thousand for the three months ended
March 31, 2024, December 31, 2023, and March 31,
2023, respectively. Loan purchase discount accretion was $1.2
million, $765 thousand, and $1.2 million for the three months ended
March 31, 2024, December 31, 2023, and March 31,
2023, respectively. Tax equivalent adjustments were $920 thousand,
$846 thousand, and $716 thousand for the three months ended
March 31, 2024, December 31, 2023, and March 31,
2023, respectively. The federal statutory tax rate utilized was
21%. |
(4) Interest
income includes tax equivalent adjustments of $387 thousand, $428
thousand, and $522 thousand for the three months ended
March 31, 2024, December 31, 2023, and March 31,
2023, 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, and efficiency ratio.
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) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
Total shareholders’
equity |
|
$ |
528,040 |
|
|
$ |
524,378 |
|
|
$ |
505,411 |
|
|
$ |
501,341 |
|
|
$ |
500,650 |
|
Intangible assets, net |
|
|
(100,649 |
) |
|
|
(86,546 |
) |
|
|
(87,987 |
) |
|
|
(89,446 |
) |
|
|
(91,040 |
) |
Tangible common equity |
|
$ |
427,391 |
|
|
$ |
437,832 |
|
|
$ |
417,424 |
|
|
$ |
411,895 |
|
|
$ |
409,610 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,748,015 |
|
|
$ |
6,427,540 |
|
|
$ |
6,467,818 |
|
|
$ |
6,521,489 |
|
|
$ |
6,409,952 |
|
Intangible assets, net |
|
|
(100,649 |
) |
|
|
(86,546 |
) |
|
|
(87,987 |
) |
|
|
(89,446 |
) |
|
|
(91,040 |
) |
Tangible assets |
|
$ |
6,647,366 |
|
|
$ |
6,340,994 |
|
|
$ |
6,379,831 |
|
|
$ |
6,432,043 |
|
|
$ |
6,318,912 |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
33.53 |
|
|
$ |
33.41 |
|
|
$ |
32.21 |
|
|
$ |
31.96 |
|
|
$ |
31.94 |
|
Tangible book value per
share(1) |
|
$ |
27.14 |
|
|
$ |
27.90 |
|
|
$ |
26.60 |
|
|
$ |
26.26 |
|
|
$ |
26.13 |
|
Shares outstanding |
|
|
15,750,471 |
|
|
|
15,694,306 |
|
|
|
15,691,738 |
|
|
|
15,685,123 |
|
|
|
15,675,325 |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity ratio |
|
|
7.83 |
% |
|
|
8.16 |
% |
|
|
7.81 |
% |
|
|
7.69 |
% |
|
|
7.81 |
% |
Tangible common equity
ratio(2) |
|
|
6.43 |
% |
|
|
6.90 |
% |
|
|
6.54 |
% |
|
|
6.40 |
% |
|
|
6.48 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Net income |
|
$ |
3,269 |
|
|
$ |
2,730 |
|
|
$ |
1,397 |
|
Intangible amortization, net
of tax(1) |
|
|
1,228 |
|
|
|
1,081 |
|
|
|
1,314 |
|
Tangible net income |
|
$ |
4,497 |
|
|
$ |
3,811 |
|
|
$ |
2,711 |
|
|
|
|
|
|
|
|
Average shareholders’
equity |
|
$ |
527,533 |
|
|
$ |
511,236 |
|
|
$ |
498,547 |
|
Average intangible assets,
net |
|
|
(95,296 |
) |
|
|
(87,258 |
) |
|
|
(92,002 |
) |
Average tangible equity |
|
$ |
432,237 |
|
|
$ |
423,978 |
|
|
$ |
406,545 |
|
|
|
|
|
|
|
|
Return on average equity |
|
|
2.49 |
% |
|
|
2.12 |
% |
|
|
1.14 |
% |
Return on average tangible
equity(2) |
|
|
4.18 |
% |
|
|
3.57 |
% |
|
|
2.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The combined
income tax rate utilized was 25%. |
(2) Annualized
tangible net income divided by average tangible equity. |
|
Net
Interest Margin, Tax Equivalent/Core Net Interest
Margin |
|
Three Months Ended |
|
March 31, |
|
December 31, |
|
March 31, |
(Dollars in thousands) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Net interest income |
|
$ |
34,731 |
|
|
$ |
32,559 |
|
|
$ |
40,076 |
|
Tax equivalent
adjustments: |
|
|
|
|
|
|
Loans(1) |
|
|
920 |
|
|
|
846 |
|
|
|
716 |
|
Securities(1) |
|
|
387 |
|
|
|
428 |
|
|
|
522 |
|
Net interest income, tax equivalent |
|
$ |
36,038 |
|
|
$ |
33,833 |
|
|
$ |
41,314 |
|
Loan purchase discount
accretion |
|
|
(1,152 |
) |
|
|
(765 |
) |
|
|
(1,189 |
) |
Core net interest income |
|
$ |
34,886 |
|
|
$ |
33,068 |
|
|
$ |
40,125 |
|
|
|
|
|
|
|
|
Net interest margin |
|
|
2.25 |
% |
|
|
2.14 |
% |
|
|
2.66 |
% |
Net interest margin, tax
equivalent(2) |
|
|
2.33 |
% |
|
|
2.22 |
% |
|
|
2.75 |
% |
Core net interest
margin(3) |
|
|
2.26 |
% |
|
|
2.17 |
% |
|
|
2.67 |
% |
Average interest earning
assets |
|
$ |
6,215,160 |
|
|
$ |
6,035,122 |
|
|
$ |
6,100,456 |
|
|
(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) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Loan interest income, including fees |
|
$ |
57,947 |
|
|
$ |
54,093 |
|
|
$ |
46,490 |
|
Tax equivalent
adjustment(1) |
|
|
920 |
|
|
|
846 |
|
|
|
716 |
|
Tax equivalent loan interest income |
|
$ |
58,867 |
|
|
$ |
54,939 |
|
|
$ |
47,206 |
|
Loan purchase discount
accretion |
|
|
(1,152 |
) |
|
|
(765 |
) |
|
|
(1,189 |
) |
Core loan interest income |
|
$ |
57,715 |
|
|
$ |
54,174 |
|
|
$ |
46,017 |
|
|
|
|
|
|
|
|
Yield on loans |
|
|
5.42 |
% |
|
|
5.26 |
% |
|
|
4.88 |
% |
Yield on loans, tax
equivalent(2) |
|
|
5.51 |
% |
|
|
5.34 |
% |
|
|
4.95 |
% |
Core yield on loans(3) |
|
|
5.40 |
% |
|
|
5.27 |
% |
|
|
4.83 |
% |
Average loans |
|
$ |
4,298,216 |
|
|
$ |
4,080,243 |
|
|
$ |
3,867,110 |
|
|
(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) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
Total noninterest expense |
|
$ |
35,565 |
|
|
$ |
32,131 |
|
|
$ |
33,319 |
|
Amortization of
intangibles |
|
|
(1,637 |
) |
|
|
(1,441 |
) |
|
|
(1,752 |
) |
Merger-related expenses |
|
|
(1,314 |
) |
|
|
(245 |
) |
|
|
(136 |
) |
Noninterest expense used for efficiency ratio |
|
$ |
32,614 |
|
|
$ |
30,445 |
|
|
$ |
31,431 |
|
|
|
|
|
|
|
|
Net interest income, tax
equivalent(1) |
|
$ |
36,038 |
|
|
$ |
33,833 |
|
|
$ |
41,314 |
|
Plus: Noninterest income |
|
|
9,750 |
|
|
|
3,862 |
|
|
|
(4,046 |
) |
Less: Investment securities
(losses) gains, net |
|
|
36 |
|
|
|
(5,696 |
) |
|
|
(13,170 |
) |
Net revenues used for efficiency ratio |
|
$ |
45,752 |
|
|
$ |
43,391 |
|
|
$ |
50,438 |
|
|
|
|
|
|
|
|
Efficiency ratio (2) |
|
|
71.28 |
% |
|
|
70.16 |
% |
|
|
62.32 |
% |
|
(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. |
|
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 |
MidWestOne Financial (NASDAQ:MOFG)
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