MOFG MidWestOne Financial Group

MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported results for the fourth quarter and full year of 2024.

Fourth Quarter 2024 Summary1

• Net income of $16.3 million, or $0.78 per diluted common share.
  • Return on average assets of 1.03%.
  • Net interest margin (tax equivalent) was 3.43%;2 Core net interest margin expanded 85 bps to 3.26%.2
  • Efficiency ratio improved to 59.06%2 from 70.32%2 in the linked quarter.
• Noninterest bearing deposits and core deposits increased 3.7% and 2.3%, respectively.
• Classified loan ratio improved 54 bps to 2.57%; nonperforming assets ratio remained stable at 0.40%; net charge-off ratio was 0.06%.
• Common equity tier 1 ("CET1") ratio improved 82 bps to 10.73%.

Full Year 2024 Summary1

• Noninterest bearing deposits and core deposits increased 6.1% and 3.9%, respectively. 
• Investment services and trust activities revenue increased 15.9% to $14.2 million.
• CET1 ratio improved 114 bps to 10.73%.
• Classified loan ratio improved 150 bps to 2.57%; nonperforming assets ratio improved 7 bps to 0.40%; net charge-off ratio was 0.07%.
• Completed a common equity capital raise, resulting in net proceeds to the Company of $118.6 million to facilitate a balance sheet repositioning.

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “We are pleased with our fourth quarter results which highlight the successful execution of our balance sheet repositioning, as well as the continued momentum of our strategic initiatives. Return on average assets eclipsed the 1.0% threshold, driven by significant expansion of our net interest margin, thus net interest income. Our core deposit franchise expanded, with noninterest bearing deposits increasing for the second consecutive quarter, reflecting our Treasury Management initiatives and strong branch network. Our Wealth Management focus, including our Investment Services and Private Wealth teams, continues to bear fruit as revenue increased 16% year-over-year. In addition, asset quality metrics improved from the third quarter, as the classified loans ratio improved 54 bps and the charge-off ratio was only 0.06%."

Mr. Reeves continued, "2024 was an outstanding year of transformation and execution for MidWestOne. As we enter 2025, we are well positioned to become a consistent, high performing organization for the benefit of our stakeholders.” 

_________________________________________1 Fourth Quarter Summary compares to the third quarter of 2024 (the "linked quarter") unless noted. Full Year 2024 Summary compares to the full year 2023 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												Year Ended
(Dollars in thousands, except per share amounts and as noted)		December 31,				September 30,				December 31,				December 31,				December 31,
		2024				2024				2023				2024				2023
Financial Results
Revenue		$	59,775			$	(92,867	)		$	36,421			$	69,290			$	162,595
Credit loss expense			1,291				1,535				1,768				8,782				5,849
Noninterest expense			37,372				35,798				32,131				144,496				131,913
Net income (loss)			16,330				(95,707	)			2,730				(60,289	)			20,859
Adjusted earnings(3)			16,112				9,141				7,265				37,954				35,311
Per Common Share
Diluted earnings (loss) per share		$	0.78			$	(6.05	)		$	0.17			$	(3.54	)		$	1.33
Adjusted earnings per share(3)			0.77				0.58				0.46				2.23				2.25
Book value			26.94				27.06				33.41				26.94				33.41
Tangible book value(3)			22.37				22.43				27.90				22.37				27.90
Balance Sheet & Credit Quality
Loans In millions		$	4,315.6			$	4,328.8			$	4,126.9			$	4,315.6			$	4,126.9
Investment securities In millions			1,328.4				1,623.1				1,870.3				1,328.4				1,870.3
Deposits In millions			5,478.0				5,368.7				5,395.7				5,478.0				5,395.7
Net loan charge-offs In millions			0.7				1.7				2.1				3.1				3.7
Allowance for credit losses ratio			1.28	%			1.25	%			1.25	%			1.28	%			1.25	%
Selected Ratios
Return on average assets			1.03	%		(5.78		)%			0.17	%		(0.92		)%			0.32	%
Net interest margin, tax equivalent(3)			3.43	%			2.51	%			2.22	%			2.66	%			2.46	%
Return on average equity			11.53	%		(69.05		)%			2.12	%		(11.08		)%			4.12	%
Return on average tangible equity(3)			14.80	%		(82.78		)%			3.57	%		(12.45		)%			6.14	%
Efficiency ratio(3)			59.06	%			70.32	%			70.16	%			63.44	%			67.28	%

REVENUE REVIEW

Revenue														Change			Change
														4Q24 vs			4Q24 vs
(Dollars in thousands)		4Q24				3Q24				4Q23				3Q24			4Q23
Net interest income		$	48,938			$	37,521			$	32,559			30	%		50	%
Noninterest income (loss)			10,837				(130,388	)			3,862			n/m			181	%
Total revenue, net of interest expense		$	59,775			$	(92,867	)		$	36,421			n/m			64	%
(n/m) - Not meaningful

Total revenue for the fourth quarter of 2024 increased $152.6 million from the third quarter of 2024 and increased $23.4 million compared to the fourth quarter of 2023, due to higher net interest income and higher noninterest income. Excluding the pre-tax securities loss of $140.4 million that was recorded in the third quarter of 2024 in connection with balance sheet repositioning efforts, total revenue increased $12.3 million from the linked quarter. 

Net interest income of $48.9 million for the fourth quarter of 2024 increased $11.4 million from the third quarter of 2024, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes. When compared to the fourth quarter of 2023, net interest income increased $16.4 million, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

The Company's tax equivalent net interest margin was 3.43%3 in the fourth quarter of 2024, compared to 2.51%3 in the third quarter of 2024, driven by higher earning asset yields and lower funding costs. Total earning assets yield during the fourth quarter of 2024 increased 60 bps from the third quarter of 2024 due primarily to an increase of 171 bps in total investment securities yields. Funding costs during the fourth quarter of 2024 decreased 35 bps to 2.52%, due to reductions of 43 bps, 23 bps and 17 bps in long-term debt, short-term borrowings and interest bearing deposit costs, to 6.48%, 4.53% and  2.41%, respectively, from the third quarter of 2024.

The Company's tax equivalent net interest margin was 3.43%3 in the fourth quarter of 2024, compared to 2.22%3 in the fourth quarter of 2023, driven by higher earning asset yields and lower funding costs. Total earning assets yield increased 106 bps from the fourth quarter of 2023, primarily due to increases of 172 bps and 52 bps in total investment securities and loan yields, respectively. Funding costs decreased 13 bps to 2.52%, due to short-term borrowing costs of 4.53% and long-term debt costs of 6.48%, which decreased 38 bps and 31 bps, respectively, from the fourth quarter of 2023.

_______________________________________3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

Noninterest Income (Loss)													Change			Change
													4Q24 vs			4Q24 vs
(In thousands)	4Q24				3Q24				4Q23				3Q24			4Q23
Investment services and trust activities	$	3,779			$	3,410			$	3,193			11	%		18	%
Service charges and fees		2,159				2,170				2,148			(1	)%		1	%
Card revenue		1,833				1,935				1,802			(5	)%		2	%
Loan revenue		1,841				760				909			142	%		103	%
Bank-owned life insurance		719				879				656			(18	)%		10	%
Investment securities gains (losses), net		161				(140,182	)			(5,696	)		n/m			n/m
Other		345				640				850			(46	)%		(59	)%
Total noninterest income (loss)	$	10,837			$	(130,388	)		$	3,862			n/m			181	%
MSR adjustment (included above in Loan revenue)	$	164			$	(1,026	)		$	(105	)		(116	)%		(256	)%
(n/m) - Not meaningful

Noninterest income for the fourth quarter of 2024 increased $141.2 million from the linked quarter, due primarily to the securities impairment of $140.4 million recognized in the linked quarter related to the Company's balance sheet repositioning, and increases of $1.1 million and $0.4 million in loan revenue and investment services and trust activities revenue, respectively. The increase in loan revenue stemmed from a favorable quarter-over-quarter change in the fair value of our mortgage servicing rights. The increase in investment services and trust activities revenue was driven by growth in assets under administration and transaction fees. Partially offsetting these increases in noninterest income was a decrease of $0.3 million in other revenue.

Noninterest income for the fourth quarter of 2024 increased $7.0 million from the fourth quarter of 2023, primarily due to an increases of $5.9 million, $0.9 million and $0.6 million in investment securities gains (losses), net, loan revenue, and investment services and trust activities revenue, respectively. The increase in investment securities gains (losses), net stemmed primarily from a balance sheet repositioning loss recognized in the fourth quarter of 2023. The increase in loan revenue was driven by an increase of $0.6 million in SBA gain on sale, coupled with a favorable year-over-year change in the fair value of our mortgage servicing rights. The increase in investment services and trust activities revenue was driven by growth in assets under administration and transaction fees. Partially offsetting these increases in noninterest income was a decrease of $0.5 million in other revenue, due primarily to a $0.3 million decline in swap origination fee income.

EXPENSE REVIEW

Noninterest Expense													Change			Change
													4Q24 vs			4Q24 vs
(In thousands)	4Q24				3Q24				4Q23				3Q24			4Q23
Compensation and employee benefits	$	20,684			$	19,943			$	17,859			4	%		16	%
Occupancy expense of premises, net		2,772				2,443				2,309			13	%		20	%
Equipment		2,688				2,486				2,466			8	%		9	%
Legal and professional		2,534				2,261				2,269			12	%		12	%
Data processing		1,719				1,580				1,411			9	%		22	%
Marketing		793				619				700			28	%		13	%
Amortization of intangibles		1,449				1,470				1,441			(1	)%		1	%
FDIC insurance		980				923				900			6	%		9	%
Communications		154				159				183			(3	)%		(16	)%
Foreclosed assets, net		56				330				45			(83	)%		24	%
Other		3,543				3,584				2,548			(1	)%		39	%
Total noninterest expense	$	37,372			$	35,798			$	32,131			4	%		16	%

 

Merger-related Expenses
(In thousands)	4Q24				3Q24				4Q23
Equipment	$	21			$	—			$	—
Legal and professional		—				127				180
Data processing		10				—				—
Marketing		—				—				38
Other		—				6				27
Total merger-related expenses	$	31			$	133			$	245

Noninterest expense for the fourth quarter of 2024 increased $1.6 million from the linked quarter, primarily due to increases in compensation and employee benefits and occupancy expense of premises, net, which increased $0.7 million and $0.3 million, respectively. The increase in compensation and employee benefits was primarily due to a $0.6 million increase in medical benefit expense compared to the linked quarter, as well as an increase in incentives and commissions. The increase in occupancy expense of premises, net was primarily driven by elevated property tax expense and building maintenance expense.

Noninterest expense for the fourth quarter of 2024 increased $5.2 million from the fourth quarter of 2023. The largest contributors to the increase in noninterest expense were compensation and employee benefits, other expense, and occupancy expense of premises, net, which increased $2.8 million, $1.0 million, and $0.5 million, respectively. The increase in compensation and employee benefits expense was primarily driven by an increase in headcount, annual compensation adjustments, incentive expense due to improved performance, and medical benefit expense. The increase in other expense was driven by an increase of $1.0 million in customer deposit expense. The increase in occupancy expense of premises, net was primarily driven by higher property tax expense, partially offset by a reduction in building rental expense, which stemmed from the sale of our Florida banking operations and the consolidation of our legacy Denver branch.

The Company's effective tax rate was 22.7% in the fourth quarter of 2024, compared to 26.5% in the linked quarter. The decrease in the effective tax rate reflected the impact of the investment security impairments that were recorded in the third quarter of 2024 related to the balance sheet repositioning. The effective income tax rate for the full year 2025 is expected to be 22-24%.

BALANCE SHEET REVIEW

Total assets were $6.24 billion at December 31, 2024, compared to $6.55 billion at September 30, 2024 and $6.43 billion at December 31, 2023. The decrease from September 30, 2024 was primarily driven by lower securities balances due to the sale of securities, with the proceeds from the sale being used to pay-off Bank Term Funding Program ("BTFP") borrowings and purchase higher yielding securities, as part of balance sheet repositioning efforts. Compared to December 31, 2023, the decrease was primarily driven by the sale of assets associated with our Florida banking operations and lower securities balances due to balance sheet repositioning transactions, partially offset by the assets acquired in the Denver Bankshares, Inc ("DNVB") acquisition, as well as higher cash and loan balances.

Loans Held for Investment	December 31, 2024						September 30, 2024						December 31, 2023
	Balance			% of Total			Balance			% of Total			Balance			% of Total
(Dollars in thousands)
Commercial and industrial	$	1,126,813		26.1	%		$	1,149,758		26.6	%		$	1,075,003		26.0	%
Agricultural		119,051		2.8				112,696		2.6				118,414		2.9
Commercial real estate
Construction and development		324,896		7.5				386,920		8.9				323,195		7.8
Farmland		182,460		4.2				182,164		4.2				184,955		4.5
Multifamily		423,157		9.8				409,544		9.5				383,178		9.3
Other		1,414,168		32.7				1,353,513		31.2				1,333,982		32.4
Total commercial real estate		2,344,681		54.2				2,332,141		53.8				2,225,310		54.0
Residential real estate
One-to-four family first liens		477,150		11.1				485,210		11.2				459,798		11.1
One-to-four family junior liens		179,232		4.2				176,827		4.1				180,639		4.4
Total residential real estate		656,382		15.3				662,037		15.3				640,437		15.5
Consumer		68,700		1.6				72,124		1.7				67,783		1.6
Loans held for investment, net of unearned income	$	4,315,627		100.0	%		$	4,328,756		100.0	%		$	4,126,947		100.0	%
Total commitments to extend credit	$	1,080,737					$	1,149,815					$	1,210,796

Loans held for investment, net of unearned income, remained stable, reflecting a slight decrease of $13.1 million, or 0.3%, to $4.32 billion from $4.33 billion at September 30, 2024, primarily due to payoffs during the quarter.  

Loans held for investment, net of unearned income, increased $188.7 million, or 4.6%, to $4.32 billion from $4.13 billion at December 31, 2023. The increase from the fourth quarter of 2023 was driven primarily by loans acquired in the DNVB transaction, organic loan growth, and higher line of credit usage. Partially offsetting these identified increases was a decline stemming from the sale of loans associated with our Florida banking operations. 

Investment Securities	December 31, 2024						September 30, 2024						December 31, 2023
(Dollars in thousands)	Balance			% of Total			Balance			% of Total			Balance			% of Total
Available for sale	$	1,328,433		100.0	%		$	1,623,104		100.0	%		$	795,134		42.5	%
Held to maturity		—		—	%			—		—	%			1,075,190		57.5	%
Total investment securities	$	1,328,433					$	1,623,104					$	1,870,324

Investment securities at December 31, 2024 were $1.33 billion, decreasing $294.7 million from September 30, 2024 and $541.9 million from December 31, 2023. The decrease from each prior period stemmed primarily from the sale of debt securities as part of the balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities. 

Deposits	December 31, 2024						September 30, 2024						December 31, 2023
(Dollars in thousands)	Balance			% of Total			Balance			% of Total			Balance			% of Total
Noninterest bearing deposits	$	951,423		17.4	%		$	917,715		17.1	%		$	897,053		16.6	%
Interest checking deposits		1,258,191		22.9				1,230,605		23.0				1,320,435		24.5
Money market deposits		1,053,988		19.2				1,038,575		19.3				1,105,493		20.5
Savings deposits		820,549		15.0				768,298		14.3				650,655		12.1
Time deposits of $250 and under		826,793		15.1				844,298		15.7				752,214		13.9
Total core deposits		4,910,944		89.6				4,799,491		89.4				4,725,850		87.6
Brokered time deposits		200,000		3.7				200,000		3.7				221,039		4.1
Time deposits over $250		367,038		6.7				369,236		6.9				448,784		8.3
Total deposits	$	5,477,982		100.0	%		$	5,368,727		100.0	%		$	5,395,673		100.0	%

Total deposits increased $109.3 million, or 2.0%, to $5.48 billion, from $5.37 billion at September 30, 2024. Core deposits increased $111.5 million, while noninterest bearing deposits increased $33.7 million from September 30, 2024. Total deposits increased $82.3 million, or 1.5%, from $5.40 billion at December 31, 2023, primarily due to $224.2 million of deposits assumed in the DNVB acquisition, partially offset by $133.3 million of deposits divested as part of the sale of our Florida banking operations and a decline of $21.0 million in brokered deposits.

Borrowed Funds	December 31, 2024						September 30, 2024						December 31, 2023
(Dollars in thousands)	Balance			% of Total			Balance			% of Total			Balance			% of Total
Short-term borrowings	$	3,186		2.7	%		$	410,630		78.1	%		$	300,264		70.9	%
Long-term debt		113,376		97.3	%			115,051		21.9	%			123,296		29.1	%
Total borrowed funds	$	116,562					$	525,681					$	423,560

Borrowed funds were $116.6 million at December 31, 2024, a decrease of $409.1 million from September 30, 2024 and a decrease of $307.0 million from December 31, 2023. The decrease compared to the linked quarter was primarily due to the payoff of BTFP borrowings. The decrease compared to December 31, 2023 was primarily due to the pay-off of BTFP borrowings, coupled with lower overnight borrowings from the Federal Home Loan Bank and scheduled payments on long-term debt.

Capital	December 31,				September 30,				December 31,
(Dollars in thousands)	2024(1)				2024				2023
Total shareholders' equity	$	559,696			$	562,238			$	524,378
Accumulated other comprehensive loss		(72,762	)			(58,842	)			(64,899	)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio		9.15	%			8.78	%			8.58	%
Common equity tier 1 capital to risk-weighted assets ratio		10.73	%			9.91	%			9.59	%
Tier 1 capital to risk-weighted assets ratio		11.59	%			10.70	%			10.38	%
Total capital to risk-weighted assets ratio		14.07	%			12.96	%			12.53	%
MidWestOne Bank
Tier 1 leverage to average assets ratio		10.12	%			9.69	%			9.39	%
Common equity tier 1 capital to risk-weighted assets ratio		12.86	%			11.83	%			11.54	%
Tier 1 capital to risk-weighted assets ratio		12.86	%			11.83	%			11.54	%
Total capital to risk-weighted assets ratio		14.02	%			12.88	%			12.49	%
(1)Regulatory capital ratios for December 31, 2024 are preliminary

Total shareholders' equity at December 31, 2024 decreased $2.5 million from September 30, 2024, driven primarily by an increase in accumulated other comprehensive loss, partially offset by an increase in retained earnings. Total shareholders' equity at December 31, 2024 increased $35.3 million from December 31, 2023, primarily due to increases in common stock and additional paid-in-capital stemming from the common equity capital raise in the third quarter of 2024, partially offset by a decrease in retained earnings and an increase in accumulated other comprehensive loss.

On January 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable March 17, 2025, to shareholders of record at the close of business on March 3, 2025.

No common shares were repurchased by the Company during the period September 30, 2024 through December 31, 2024 or for the subsequent period through January 23, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. As of December 31, 2024, $15.0 million remained available under this program.

CREDIT QUALITY REVIEW

Credit Quality	As of or For the Three Months Ended
	December 31,				September 30,				December 31,
(Dollars in thousands)	2024				2024				2023
Credit loss expense related to loans	$	1,891			$	1,835			$	1,968
Net charge-offs		691				1,735				2,068
Allowance for credit losses		55,200				54,000				51,500
Pass	$	4,056,361			$	4,016,683			$	3,846,012
Special Mention		148,462				177,241				113,029
Classified		110,804				134,832				167,906
Loans greater than 30 days past due and accruing	$	9,378			$	11,940			$	10,778
Nonperforming loans	$	21,847			$	21,954			$	26,359
Nonperforming assets		25,184				25,537				30,288
Net charge-off ratio(1)		0.06	%			0.16	%			0.20	%
Classified loans ratio(2)		2.57	%			3.11	%			4.07	%
Nonperforming loans ratio(3)		0.51	%			0.51	%			0.64	%
Nonperforming assets ratio(4)		0.40	%			0.39	%			0.47	%
Allowance for credit losses ratio(5)		1.28	%			1.25	%			1.25	%
Allowance for credit losses to nonaccrual loans ratio(6)		254.32	%			260.84	%			198.91	%
(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.

Nonperforming loans and nonperforming assets ratios remained stable at 0.51% and 0.40%, respectively, compared to the linked quarter, while the classified loans ratio improved 54 bps to 2.57%. In addition, special mention loan balances decreased $28.8 million, or 16%. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios decreased 13 bps and 7 bps, respectively, while the classified loan ratio improved 150 bps. Special mention loan balances increased $35.4 million, or 31%. The net charge-off ratio decreased 10 bps from the linked quarter and 14 bps from the same period in the prior year.

As of December 31, 2024, the allowance for credit losses was $55.2 million and the allowance for credit losses ratio was 1.28%, compared with $54.0 million and 1.25%, respectively, at September 30, 2024. Credit loss expense of $1.3 million in the fourth quarter of 2024 reflected additional reserve primarily related to additions to nonperforming loans, offset by a reduction of $0.6 million in the reserve for unfunded loan commitments.

Nonperforming Loans Roll Forward	Nonaccrual				90+ Days Past Due & Still Accruing				Total
(Dollars in thousands)
Balance at September 30, 2024	$	20,702			$	1,252			$	21,954
Loans placed on nonaccrual or 90+ days past due & still accruing		9,824				312				10,136
Proceeds related to repayment or sale		(7,802	)			(65	)			(7,867	)
Charge-offs		(1,003	)			(273	)			(1,276	)
Transfers to foreclosed assets		(16	)			—				(16	)
Transfer to nonaccrual		—				(1,084	)			(1,084	)
Balance at December 31, 2024	$	21,705			$	142			$	21,847

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, January 24, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=edad992a&confId=75837.  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 135335 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until April 24, 2025 by calling 1-866-813-9403 and using the replay access code of 395859. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

Cautionary Note Regarding Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including the sale of our Florida banking operations and the 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 changing 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 changes in 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) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including changes in interpretation or prioritization, and any changes in response to the 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 type of borrower, collateral, 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 or other legal proceedings and regulatory actions; (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) new or revised 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 ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (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 or as a result of insider fraud; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of products produced by our borrowers; (24) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company's cost of funds; (25) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (26) changes in the business and economic conditions generally and in the financial services industry, and the effects of developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; 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

	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)	2024				2024				2024				2024				2023
ASSETS
Cash and due from banks	$	71,803			$	72,173			$	66,228			$	68,430			$	76,237
Interest earning deposits in banks		133,092				129,695				35,340				29,328				5,479
Federal funds sold		—				—				—				4				11
Total cash and cash equivalents		204,895				201,868				101,568				97,762				81,727
Debt securities available for sale at fair value		1,328,433				1,623,104				771,034				797,230				795,134
Held to maturity securities at amortized cost		—				—				1,053,080				1,064,939				1,075,190
Total securities		1,328,433				1,623,104				1,824,114				1,862,169				1,870,324
Loans held for sale		749				3,283				2,850				2,329				1,045
Gross loans held for investment		4,328,413				4,344,559				4,304,619				4,433,258				4,138,352
Unearned income, net		(12,786	)			(15,803	)			(17,387	)			(18,612	)			(11,405	)
Loans held for investment, net of unearned income		4,315,627				4,328,756				4,287,232				4,414,646				4,126,947
Allowance for credit losses		(55,200	)			(54,000	)			(53,900	)			(55,900	)			(51,500	)
Total loans held for investment, net		4,260,427				4,274,756				4,233,332				4,358,746				4,075,447
Premises and equipment, net		90,851				90,750				91,793				95,986				85,742
Goodwill		69,788				69,788				69,388				71,118				62,477
Other intangible assets, net		25,019				26,469				27,939				29,531				24,069
Foreclosed assets, net		3,337				3,583				6,053				3,897				3,929
Other assets		252,830				258,881				224,621				226,477				222,780
Total assets	$	6,236,329			$	6,552,482			$	6,581,658			$	6,748,015			$	6,427,540
LIABILITIES
Noninterest bearing deposits	$	951,423			$	917,715			$	882,472			$	920,764			$	897,053
Interest bearing deposits		4,526,559				4,451,012				4,529,947				4,664,472				4,498,620
Total deposits		5,477,982				5,368,727				5,412,419				5,585,236				5,395,673
Short-term borrowings		3,186				410,630				414,684				422,988				300,264
Long-term debt		113,376				115,051				114,839				122,066				123,296
Other liabilities		82,089				95,836				96,430				89,685				83,929
Total liabilities		5,676,633				5,990,244				6,038,372				6,219,975				5,903,162
SHAREHOLDERS' EQUITY
Common stock		21,580				21,580				16,581				16,581				16,581
Additional paid-in capital		414,987				414,965				300,831				300,845				302,157
Retained earnings		217,776				206,490				306,030				294,066				294,784
Treasury stock		(21,885	)			(21,955	)			(22,021	)			(22,648	)			(24,245	)
Accumulated other comprehensive loss		(72,762	)			(58,842	)			(58,135	)			(60,804	)			(64,899	)
Total shareholders' equity		559,696				562,238				543,286				528,040				524,378
Total liabilities and shareholders' equity	$	6,236,329			$	6,552,482			$	6,581,658			$	6,748,015			$	6,427,540

MIDWESTONE FINANCIAL GROUP, INC. FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended																				Year Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
(In thousands, except per share data)	2024				2024				2024				2024				2023				2024				2023
Interest income
Loans, including fees	$	62,458			$	62,521			$	61,643			$	57,947			$	54,093			$	244,569			$	202,179
Taxable investment securities		11,320				8,779				9,228				9,460				9,274				38,787				38,978
Tax-exempt investment securities		728				1,611				1,663				1,710				1,789				5,712				7,540
Other		3,761				785				242				418				230				5,206				916
Total interest income		78,267				73,696				72,776				69,535				65,386				294,274				249,613
Interest expense
Deposits		27,324				29,117				28,942				27,726				27,200				113,109				85,764
Short-term borrowings		115				5,043				5,409				4,975				3,496				15,542				11,119
Long-term debt		1,890				2,015				2,078				2,103				2,131				8,086				8,558
Total interest expense		29,329				36,175				36,429				34,804				32,827				136,737				105,441
Net interest income		48,938				37,521				36,347				34,731				32,559				157,537				144,172
Credit loss expense		1,291				1,535				1,267				4,689				1,768				8,782				5,849
Net interest income after credit loss expense		47,647				35,986				35,080				30,042				30,791				148,755				138,323
Noninterest income
Investment services and trust activities		3,779				3,410				3,504				3,503				3,193				14,196				12,249
Service charges and fees		2,159				2,170				2,156				2,144				2,148				8,629				8,349
Card revenue		1,833				1,935				1,907				1,943				1,802				7,618				7,214
Loan revenue		1,841				760				1,525				856				909				4,982				4,700
Bank-owned life insurance		719				879				668				660				656				2,926				2,500
Investment securities gains (losses), net		161				(140,182	)			33				36				(5,696	)			(139,952	)			(18,789	)
Other		345				640				11,761				608				850				13,354				2,200
Total noninterest income (loss)		10,837				(130,388	)			21,554				9,750				3,862				(88,247	)			18,423
Noninterest expense
Compensation and employee benefits		20,684				19,943				20,985				20,930				17,859				82,542				76,410
Occupancy expense of premises, net		2,772				2,443				2,435				2,813				2,309				10,463				10,034
Equipment		2,688				2,486				2,530				2,600				2,466				10,304				9,195
Legal and professional		2,534				2,261				2,253				2,059				2,269				9,107				7,365
Data processing		1,719				1,580				1,645				1,360				1,411				6,304				5,799
Marketing		793				619				636				598				700				2,646				3,610
Amortization of intangibles		1,449				1,470				1,593				1,637				1,441				6,149				6,247
FDIC insurance		980				923				1,051				942				900				3,896				3,294
Communications		154				159				191				196				183				700				910
Foreclosed assets, net		56				330				138				358				45				882				13
Other		3,543				3,584				2,304				2,072				2,548				11,503				9,036
Total noninterest expense		37,372				35,798				35,761				35,565				32,131				144,496				131,913
Income (loss) before income tax expense		21,112				(130,200	)			20,873				4,227				2,522				(83,988	)			24,833
Income tax expense (benefit)		4,782				(34,493	)			5,054				958				(208	)			(23,699	)			3,974
Net income (loss)	$	16,330			$	(95,707	)		$	15,819			$	3,269			$	2,730			$	(60,289	)		$	20,859
Earnings (loss) per common share
Basic	$	0.79			$	(6.05	)		$	1.00			$	0.21			$	0.17			$	(3.54	)		$	1.33
Diluted	$	0.78			$	(6.05	)		$	1.00			$	0.21			$	0.17			$	(3.54	)		$	1.33
Weighted average basic common shares outstanding		20,776				15,829				15,763				15,723				15,693				17,030				15,678
Weighted average diluted common shares outstanding		20,851				15,829				15,781				15,774				15,756				17,030				15,725
Dividends paid per common share	$	0.2425			$	0.2425			$	0.2425			$	0.2425			$	0.2425			$	0.9700			$	0.9700

MIDWESTONE FINANCIAL GROUP, INC. FINANCIAL STATISTICS

	As of or for the Three Months Ended												As of or for the Year Ended
	December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands, except per share amounts)	2024				2024				2023				2024				2023
Earnings:
Net interest income	$	48,938			$	37,521			$	32,559			$	157,537			$	144,172
Noninterest income (loss)		10,837				(130,388	)			3,862				(88,247	)			18,423
Total revenue, net of interest expense		59,775				(92,867	)			36,421				69,290				162,595
Credit loss expense		1,291				1,535				1,768				8,782				5,849
Noninterest expense		37,372				35,798				32,131				144,496				131,913
Income (loss) before income tax expense		21,112				(130,200	)			2,522				(83,988	)			24,833
Income tax expense (benefit)		4,782				(34,493	)			(208	)			(23,699	)			3,974
Net income (loss)	$	16,330			$	(95,707	)		$	2,730			$	(60,289	)		$	20,859
Adjusted earnings(1)	$	16,112			$	9,141			$	7,265			$	37,954			$	35,311
Per Share Data:
Diluted earnings (loss)	$	0.78			$	(6.05	)		$	0.17			$	(3.54	)		$	1.33
Adjusted earnings(1)		0.77				0.58				0.46				2.23				2.25
Book value		26.94				27.06				33.41				26.94				33.41
Tangible book value(1)		22.37				22.43				27.90				22.37				27.90
Ending Balance Sheet:
Total assets	$	6,236,329			$	6,552,482			$	6,427,540			$	6,236,329			$	6,427,540
Loans held for investment, net of unearned income		4,315,627				4,328,756				4,126,947				4,315,627				4,126,947
Total securities		1,328,433				1,623,104				1,870,324				1,328,433				1,870,324
Total deposits		5,477,982				5,368,727				5,395,673				5,477,982				5,395,673
Short-term borrowings		3,186				410,630				300,264				3,186				300,264
Long-term debt		113,376				115,051				123,296				113,376				123,296
Total shareholders' equity		559,696				562,238				524,378				559,696				524,378
Average Balance Sheet:
Average total assets	$	6,279,975			$	6,583,404			$	6,459,705			$	6,552,420			$	6,475,360
Average total loans		4,307,583				4,311,693				4,080,243				4,334,163				3,993,389
Average total deposits		5,464,900				5,402,634				5,443,323				5,465,718				5,455,609
Financial Ratios:
Return on average assets		1.03	%		(5.78) %					0.17	%		(0.92) %					0.32	%
Return on average equity		11.53	%		(69.05) %					2.12	%		(11.08) %					4.12	%
Return on average tangible equity(1)		14.80	%		(82.78) %					3.57	%		(12.45) %					6.14	%
Efficiency ratio(1)		59.06	%			70.32	%			70.16	%			63.44	%			67.28	%
Net interest margin, tax equivalent(1)		3.43	%			2.51	%			2.22	%			2.66	%			2.46	%
Loans to deposits ratio		78.78	%			80.63	%			76.49	%			78.78	%			76.49	%
CET1 Ratio		10.73	%			9.91	%			9.59	%			10.73	%			9.59	%
Common equity ratio		8.97	%			8.58	%			8.16	%			8.97	%			8.16	%
Tangible common equity ratio(1)		7.57	%			7.22	%			6.90	%			7.57	%			6.90	%
Credit Risk Profile:
Total nonperforming loans	$	21,847			$	21,954			$	26,359			$	21,847			$	26,359
Nonperforming loans ratio		0.51	%			0.51	%			0.64	%			0.51	%			0.64	%
Total nonperforming assets	$	25,184			$	25,537			$	30,288			$	25,184			$	30,288
Nonperforming assets ratio		0.40	%			0.39	%			0.47	%			0.40	%			0.47	%
Net charge-offs	$	691			$	1,735			$	2,068			$	3,139			$	3,749
Net charge-off ratio		0.06	%			0.16	%			0.20	%			0.07	%			0.09	%
Allowance for credit losses	$	55,200			$	54,000			$	51,500			$	55,200			$	51,500
Allowance for credit losses ratio		1.28	%			1.25	%			1.25	%			1.28	%			1.25	%
Allowance for credit losses to nonaccrual ratio		254.32	%			260.84	%			198.91	%			254.32	%			198.91	%
(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
	December 31, 2024									September 30, 2024									December 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)	$	4,307,583		$	63,443		5.86	%		$	4,311,693		$	63,472		5.86	%		$	4,080,243		$	54,939		5.34	%
Taxable investment securities		1,080,716			11,320		4.17	%			1,489,843			8,779		2.34	%			1,593,699			9,274		2.31	%
Tax-exempt investment securities(2)(4)		109,183			896		3.26	%			313,935			1,976		2.50	%			338,243			2,217		2.60	%
Total securities held for investment(2)		1,189,899			12,216		4.08	%			1,803,778			10,755		2.37	%			1,931,942			11,491		2.36	%
Other		309,904			3,761		4.83	%			52,054			785		6.00	%			22,937			230		3.98	%
Total interest earning assets(2)	$	5,807,386		$	79,420		5.44	%		$	6,167,525		$	75,012		4.84	%		$	6,035,122		$	66,660		4.38	%
Other assets		472,589									415,879									424,583
Total assets	$	6,279,975								$	6,583,404								$	6,459,705
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,252,481		$	2,205		0.70	%		$	1,243,327		$	3,041		0.97	%		$	1,305,759		$	2,991		0.91	%
Money market deposits		1,046,571			7,197		2.74	%			1,047,081			7,758		2.95	%			1,103,637			7,954		2.86	%
Savings deposits		799,931			3,158		1.57	%			761,922			3,128		1.63	%			639,766			1,493		0.93	%
Time deposits		1,410,542			14,764		4.16	%			1,430,723			15,190		4.22	%			1,463,498			14,762		4.00	%
Total interest bearing deposits		4,509,525			27,324		2.41	%			4,483,053			29,117		2.58	%			4,512,660			27,200		2.39	%
Securities sold under agreements to repurchase		3,640			8		0.87	%			5,812			12		0.82	%			8,661			17		0.78	%
Other short-term borrowings		6,465			107		6.58	%			415,961			5,031		4.81	%			273,963			3,479		5.04	%
Total short-term borrowings		10,105			115		4.53	%			421,773			5,043		4.76	%			282,624			3,496		4.91	%
Long-term debt		116,018			1,890		6.48	%			116,032			2,015		6.91	%			124,495			2,131		6.79	%
Total borrowed funds		126,123			2,005		6.32	%			537,805			7,058		5.22	%			407,119			5,627		5.48	%
Total interest bearing liabilities	$	4,635,648		$	29,329		2.52	%		$	5,020,858		$	36,175		2.87	%		$	4,919,779		$	32,827		2.65	%
Noninterest bearing deposits		955,375									919,581									930,663
Other liabilities		125,536									91,551									98,027
Shareholders’ equity		563,416									551,414									511,236
Total liabilities and shareholders’ equity	$	6,279,975								$	6,583,404								$	6,459,705
Net interest income(2)				$	50,091								$	38,837								$	33,833
Net interest spread(2)							2.92	%								1.97	%								1.73	%
Net interest margin(2)							3.43	%								2.51	%								2.22	%
Total deposits(5)	$	5,464,900		$	27,324		1.99	%		$	5,402,634		$	29,117		2.14	%		$	5,443,323		$	27,200		1.98	%
Cost of funds(6)							2.09	%								2.42	%								2.23	%

(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 $456 thousand, $378 thousand, and $207 thousand for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Loan purchase discount accretion was $2.5 million, $1.4 million, and $0.8 million for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. Tax equivalent adjustments were $985 thousand, $951 thousand, and $846 thousand for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The federal statutory tax rate utilized was 21%.(4) Interest income includes tax equivalent adjustments of $168 thousand, $365 thousand, and $428 thousand for the three months ended December 31, 2024, September 30, 2024, and December 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.

MIDWESTONE FINANCIAL GROUP, INC. AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Year Ended
	December 31, 2024									December 31, 2023
(Dollars in thousands)	AverageBalance			InterestIncome/Expense			AverageYield/Cost			AverageBalance			InterestIncome/Expense			AverageYield/Cost
ASSETS
Loans, including fees(1)(2)(3)	$	4,334,163		$	248,409		5.73	%		$	3,993,389		$	205,189		5.14	%
Taxable investment securities		1,411,411			38,787		2.75	%			1,684,360			38,978		2.31	%
Tax-exempt investment securities(2)(4)		268,175			7,028		2.62	%			355,454			9,353		2.63	%
Total securities held for investment(2)		1,679,586			45,815		2.73	%			2,039,814			48,331		2.37	%
Other		103,679			5,206		5.02	%			22,791			916		4.02	%
Total interest earning assets(2)	$	6,117,428		$	299,430		4.89	%		$	6,055,994		$	254,436		4.20	%
Other assets		434,992									419,366
Total assets	$	6,552,420								$	6,475,360
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,273,518		$	11,281		0.89	%		$	1,398,538		$	8,990		0.64	%
Money market deposits		1,067,109			30,841		2.89	%			1,037,123			23,924		2.31	%
Savings deposits		748,868			11,006		1.47	%			624,990			2,802		0.45	%
Time deposits		1,439,697			59,981		4.17	%			1,443,770			50,048		3.47	%
Total interest bearing deposits		4,529,192			113,109		2.50	%			4,504,421			85,764		1.90	%
Securities sold under agreements to repurchase		5,019			41		0.82	%			94,563			975		1.03	%
Other short-term borrowings		318,037			15,501		4.87	%			199,530			10,144		5.08	%
Total short-term borrowings		323,056			15,542		4.81	%			294,093			11,119		3.78	%
Long-term debt		118,877			8,086		6.80	%			131,137			8,558		6.53	%
Total borrowed funds		441,933			23,628		5.35	%			425,230			19,677		4.63	%
Total interest bearing liabilities	$	4,971,125		$	136,737		2.75	%		$	4,929,651		$	105,441		2.14	%
Noninterest bearing deposits		936,526									951,188
Other liabilities		100,607									88,770
Shareholders’ equity		544,162									505,751
Total liabilities and shareholders’ equity	$	6,552,420								$	6,475,360
Net interest income(2)				$	162,693								$	148,995
Net interest spread(2)							2.14	%								2.06	%
Net interest margin(2)							2.66	%								2.46	%
Total deposits(5)	$	5,465,718		$	113,109		2.07	%		$	5,455,609		$	85,764		1.57	%
Cost of funds(6)							2.31	%								1.79	%

(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 $1.4 million and $522 thousand for the year ended December 31, 2024 and December 31, 2023, respectively. Loan purchase discount accretion was $6.3 million and $3.7 million for the  year ended December 31, 2024 and December 31, 2023, respectively. Tax equivalent adjustments were $3.8 million and $3.0 million for the  year ended December 31, 2024 and December 31, 2023, respectively. The federal statutory tax rate utilized was 21%.(4) Interest income includes tax equivalent adjustments of $1.3 million and $1.8 million for the  year ended December 31, 2024 and December 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, efficiency ratio, adjusted earnings and adjusted earnings per share. 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		December 31,				September 30,				June 30,				March 31,				December 31,
(Dollars in thousands, except per share data)		2024				2024				2024				2024				2023
Total shareholders’ equity		$	559,696			$	562,238			$	543,286			$	528,040			$	524,378
Intangible assets, net			(94,807	)			(96,257	)			(97,327	)			(100,649	)			(86,546	)
Tangible common equity		$	464,889			$	465,981			$	445,959			$	427,391			$	437,832
Total assets		$	6,236,329			$	6,552,482			$	6,581,658			$	6,748,015			$	6,427,540
Intangible assets, net			(94,807	)			(96,257	)			(97,327	)			(100,649	)			(86,546	)
Tangible assets		$	6,141,522			$	6,456,225			$	6,484,331			$	6,647,366			$	6,340,994
Book value per share		$	26.94			$	27.06			$	34.44			$	33.53			$	33.41
Tangible book value per share(1)		$	22.37			$	22.43			$	28.27			$	27.14			$	27.90
Shares outstanding			20,777,485				20,774,919				15,773,468				15,750,471				15,694,306
Common equity ratio			8.97	%			8.58	%			8.25	%			7.83	%			8.16	%
Tangible common equity ratio(2)			7.57	%			7.22	%			6.88	%			6.43	%			6.90	%

(1) Tangible common equity divided by shares outstanding.(2) Tangible common equity divided by tangible assets.

		Three Months Ended												Year Ended
Return on Average Tangible Equity		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)		2024				2024				2023				2024				2023
Net income (loss)		$	16,330			$	(95,707	)		$	2,730			$	(60,289	)		$	20,859
Intangible amortization, net of tax(1)			1,075				1,090				1,081				4,561				4,685
Tangible net income (loss)		$	17,405			$	(94,617	)		$	3,811			$	(55,728	)		$	25,544
Average shareholders’ equity		$	563,416			$	551,414			$	511,236			$	544,162			$	505,751
Average intangible assets, net			(95,498	)			(96,706	)			(87,258	)			(96,699	)			(89,539	)
Average tangible equity		$	467,918			$	454,708			$	423,978			$	447,463			$	416,212
Return on average equity			11.53	%		(69.05) %					2.12	%		(11.08) %					4.12	%
Return on average tangible equity(2)			14.80	%		(82.78) %					3.57	%		(12.45) %					6.14	%

(1) The income tax rate utilized was the blended marginal tax rate. (2) Annualized tangible net income divided by average tangible equity.

Net Interest Margin, Tax Equivalent/Core Net Interest Margin		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)		2024				2024				2023				2024				2023
Net interest income		$	48,938			$	37,521			$	32,559			$	157,537			$	144,172
Tax equivalent adjustments:
Loans(1)			985				951				846				3,840				3,010
Securities(1)			168				365				428				1,316				1,813
Net interest income, tax equivalent		$	50,091			$	38,837			$	33,833			$	162,693			$	148,995
Loan purchase discount accretion			(2,496	)			(1,426	)			(765	)			(6,335	)			(3,729	)
Core net interest income		$	47,595			$	37,411			$	33,068			$	156,358			$	145,266
Net interest margin			3.35	%			2.42	%			2.14	%			2.58	%			2.38	%
Net interest margin, tax equivalent(2)			3.43	%			2.51	%			2.22	%			2.66	%			2.46	%
Core net interest margin(3)			3.26	%			2.41	%			2.17	%			2.56	%			2.40	%
Average interest earning assets		$	5,807,386			$	6,167,525			$	6,035,122			$	6,117,428			$	6,055,994

(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												Year Ended
Loan Yield, Tax Equivalent / Core Yield on Loans		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)		2024				2024				2023				2024				2023
Loan interest income, including fees		$	62,458			$	62,521			$	54,093			$	244,569			$	202,179
Tax equivalent adjustment(1)			985				951				846				3,840				3,010
Tax equivalent loan interest income		$	63,443			$	63,472			$	54,939			$	248,409			$	205,189
Loan purchase discount accretion			(2,496	)			(1,426	)			(765	)			(6,335	)			(3,729	)
Core loan interest income		$	60,947			$	62,046			$	54,174			$	242,074			$	201,460
Yield on loans			5.77	%			5.77	%			5.26	%			5.64	%			5.06	%
Yield on loans, tax equivalent(2)			5.86	%			5.86	%			5.34	%			5.73	%			5.14	%
Core yield on loans(3)			5.63	%			5.72	%			5.27	%			5.59	%			5.04	%
Average loans		$	4,307,583			$	4,311,693			$	4,080,243			$	4,334,163			$	3,993,389

(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												Year Ended
Efficiency Ratio		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands)		2024				2024				2023				2024				2023
Total noninterest expense		$	37,372			$	35,798			$	32,131			$	144,496			$	131,913
Amortization of intangibles			(1,449	)			(1,470	)			(1,441	)			(6,149	)			(6,247	)
Merger-related expenses			(31	)			(133	)			(245	)			(2,332	)			(392	)
Noninterest expense used for efficiency ratio		$	35,892			$	34,195			$	30,445			$	136,015			$	125,274
Net interest income, tax equivalent(1)		$	50,091			$	38,837			$	33,833			$	162,693			$	148,995
Plus: Noninterest income (loss)			10,837				(130,388	)			3,862				(88,247	)			18,423
Less: Investment securities gains (losses), net			161				(140,182	)			(5,696	)			(139,952	)			(18,789	)
Net revenues used for efficiency ratio		$	60,767			$	48,631			$	43,391			$	214,398			$	186,207
Efficiency ratio(2)			59.06	%			70.32	%			70.16	%			63.44	%			67.28	%

(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												Year Ended
Adjusted Earnings		December 31,				September 30,				December 31,				December 31,				December 31,
(Dollars in thousands, except per share data)		2024				2024				2023				2024				2023
Net income (loss)		$	16,330			$	(95,707	)		$	2,730			$	(60,289	)		$	20,859
Less: Investment securities gains (losses), net of tax(1)			119				(103,988	)			(4,272	)			(103,818	)			(14,092	)
Less: Mortgage servicing rights gain (loss), net of tax(1)			122				(761	)			(79	)			(817	)			(66	)
Plus: Merger-related expenses, net of tax(1)			23				99				184				1,730				294
Less: Gain on branch sale, net of tax(1)			—				—				—				8,122				—
Adjusted earnings		$	16,112			$	9,141			$	7,265			$	37,954			$	35,311
Weighted average diluted common shares outstanding			20,851				15,829				15,756				17,030				15,725
Earnings (loss) per common share - diluted		$	0.78			$	(6.05	)		$	0.17			$	(3.54	)		$	1.33
Adjusted earnings per common share(2)		$	0.77			$	0.58			$	0.46			$	2.23			$	2.25

(1) The income tax rate utilized was the blended marginal tax rate. (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

Contacts:
Charles N. Reeves	Barry S. Ray
Chief Executive Officer	Chief Financial Officer
319.356.5800	319.356.5800