IOWA CITY, Iowa, Oct. 10, 2025 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“MidWestOne” or the “Company”), parent company of MidWestOne Bank, today announced that its third quarter 2025 financial results will be released after market closes on Thursday, October 23, 2025. The Company will host a conference call to discuss its financial results at 11:00 a.m. Central Time on Friday, October 24, 2025. Investors and analysts interested in participating in the call may pre-register utiliz ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the unaudited consolidated financial statements for MidWestOne Financial Group, Inc. as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, income statements, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $6.16 billion, a slight decrease from year-end 2024, primarily due to reduced debt securities and cash equivalents, while total liabilities also decreased, and shareholders' equity rose Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$6,160,773** | **$6,236,329** | | Total cash and cash equivalents | $169,445 | $204,895 | | Total loans held for investment, net | $4,315,388 | $4,260,427 | | Debt securities available for sale | $1,235,045 | $1,328,433 | | **Total Liabilities** | **$5,571,733** | **$5,676,633** | | Total deposits | $5,388,098 | $5,477,982 | | Long-term debt | $112,320 | $113,376 | | **Total Shareholders' Equity** | **$589,040** | **$559,696** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q2 2025 was $10.0 million ($0.48 per diluted share), a decrease from Q2 2024 due to higher credit loss expense, while year-to-date net income increased to $25.1 million, supported by stronger net interest income Income Statement Highlights (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $49,982 | $36,347 | $97,421 | $71,078 | | Credit Loss Expense | $11,889 | $1,267 | $13,576 | $5,956 | | Noninterest Income | $10,249 | $21,554 | $20,385 | $31,304 | | Noninterest Expense | $35,767 | $35,761 | $72,060 | $71,326 | | **Net Income** | **$9,980** | **$15,819** | **$25,118** | **$19,088** | | **Earnings - diluted** | **$0.48** | **$1.00** | **$1.20** | **$1.21** | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q2 2025 was $15.5 million, a decrease from Q2 2024, reflecting lower net income partially offset by higher other comprehensive income from unrealized gains on AFS debt securities, while year-to-date comprehensive income increased to $40.3 million Comprehensive Income Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $9,980 | $15,819 | $25,118 | $19,088 | | Other comprehensive income, net of tax | $5,541 | $2,669 | $15,205 | $6,764 | | **Comprehensive Income** | **$15,521** | **$18,488** | **$40,323** | **$25,852** | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased from $559.7 million at December 31, 2024, to $589.0 million at June 30, 2025, driven by net income and other comprehensive income, partially offset by dividends and stock repurchases - For the six months ended June 30, 2025, total shareholders' equity increased by **$29.3 million**, from **$559.7 million** to **$589.0 million**[19](index=19&type=chunk) - Key drivers for the increase in shareholders' equity during the first half of 2025 were **net income ($25.1M)** and **other comprehensive income ($15.2M)**, offset by **dividends paid ($10.1M)** and **stock repurchases ($1.8M)**[19](index=19&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash and cash equivalents decreased by $35.5 million, as net cash provided by operating and investing activities was more than offset by net cash used in financing activities, primarily due to a net decrease in deposits Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $33,591 | $34,820 | | Net cash provided by (used in) investing activities | $37,587 | $(660) | | Net cash used in financing activities | $(106,628) | $(14,319) | | **Net change in cash and cash equivalents** | **$(35,450)** | **$19,841** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial data, covering business combinations, financial instruments, credit loss allowance, and regulatory capital - On January 31, 2024, the Company acquired DNVB and its subsidiary, Bank of Denver, for **$32.6 million in cash**[27](index=27&type=chunk)[36](index=36&type=chunk) - On June 7, 2024, the Bank sold its Florida banking operations, resulting in a **gain on sale of $10.9 million**[28](index=28&type=chunk)[41](index=41&type=chunk) - In Q1 2025, the company reclassified **$11.0 million of credit card receivables** to loans held for sale, with the sale expected to close in Q4 2025[28](index=28&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations for the three and six months ended June 30, 2025, covering key performance drivers and balance sheet changes [Financial Summary](index=45&type=section&id=Financial%20Summary) The company reported net income of $10.0 million for Q2 2025, a decrease from Q2 2024 due to higher credit loss expense, while year-to-date net income increased to $25.1 million, with total assets decreasing to $6.16 billion and the allowance for credit losses rising to $65.8 million Quarterly Financial Performance | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income | $10.0M | $15.8M | | Diluted EPS | $0.48 | $1.00 | Year-to-Date Financial Performance | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Income | $25.1M | $19.1M | | Diluted EPS | $1.20 | $1.21 | - The allowance for credit losses increased to **$65.8 million (1.50% of total loans)** at June 30, 2025, from **$55.2 million (1.28% of total loans)** at year-end 2024, primarily due to a specific reserve on a single CRE office credit[161](index=161&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) For Q2 2025, tax-equivalent net interest income increased by 35.9% to $51.2 million, driven by higher asset yields and lower funding costs, but a significant $11.9 million credit loss expense pressured earnings, while noninterest income fell due to the prior year's gain from branch sales - Q2 2025 tax equivalent net interest income was **$51.2 million**, a **35.9% increase** from Q2 2024, driven by higher earning asset yields and lower interest-bearing liability costs[171](index=171&type=chunk) - Credit loss expense for Q2 2025 was **$11.9 million**, a substantial increase from **$1.3 million** in Q2 2024, primarily due to a specific reserve on a single **$24.0 million CRE office credit**[173](index=173&type=chunk) - Q2 2025 noninterest income decreased by **$11.3 million** year-over-year, mainly because Q2 2024 included an **$11.1 million gain** from the sale of Florida banking operations[174](index=174&type=chunk) [Financial Condition](index=58&type=section&id=Financial%20Condition) As of June 30, 2025, total assets stood at $6.16 billion, down 1.2% from year-end 2024, with the loan portfolio growing 1.5% to $4.38 billion, while nonperforming assets increased significantly to $40.6 million, and total deposits decreased by 1.6% Balance Sheet Changes (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | $6,160,773 | $6,236,329 | (1.2)% | | Loans held for investment, net | $4,315,388 | $4,260,427 | 1.3% | | Total Deposits | $5,388,098 | $5,477,982 | (1.6)% | | Total Shareholders' Equity | $589,040 | $559,696 | 5.2% | - Nonperforming assets rose to **$40.6 million** at June 30, 2025, from **$25.2 million** at year-end 2024, primarily due to a single **$24.0 million CRE office credit**[203](index=203&type=chunk) - The allowance for credit losses to total loans ratio increased to **1.50%** at June 30, 2025, compared to **1.28%** at December 31, 2024[211](index=211&type=chunk) [Capital Resources](index=64&type=section&id=Capital%20Resources) The company's capital position remained strong and well-capitalized as of June 30, 2025, with total shareholders' equity increasing to $589.0 million and all regulatory capital ratios improving Key Capital Ratios | Ratio | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total risk-based capital | 14.44% | 14.07% | | Tier 1 leverage | 9.62% | 9.15% | | Tangible common equity | 8.19% | 7.57% | - As of June 30, 2025, the Company and the Bank met all capital adequacy requirements and the Bank was considered **"well capitalized"** under regulatory provisions[223](index=223&type=chunk) [Liquidity](index=64&type=section&id=Liquidity) The company manages liquidity risk through diverse funding sources, maintaining significant borrowing capacity through federal funds lines, the Federal Reserve Discount Window, and FHLB advances to meet its obligations - Principal sources of funds include deposits, FHLB advances, loan repayments, and proceeds from securities sales[226](index=226&type=chunk) - For the first six months of 2025, net cash from operations was **$33.6 million**, from investing was **$37.6 million**, while financing activities used **$106.6 million**[227](index=227&type=chunk)[246](index=246&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are interest rate and liquidity risk, with liquidity managed through diverse funding sources and interest rate risk monitored via NII simulation and EVE analysis, showing asset-sensitivity as of June 30, 2025 - The company's most significant market risks are **interest rate risk** and **liquidity risk**[243](index=243&type=chunk)[244](index=244&type=chunk) Net Interest Income Sensitivity Analysis (June 30, 2025) | Rate Shock | Dollar Change (in thousands) | Percent Change | | :--- | :--- | :--- | | +200 bps | $9,268 | 4.3% | | +100 bps | $4,725 | 2.2% | | -100 bps | $(5,117) | (2.4)% | | -200 bps | $(12,845) | (5.9)% | - The company maintains multiple sources of liquidity, including **$135.0 million** in federal funds lines, **$302.9 million** in borrowing capacity at the Federal Reserve Discount Window, and **$541.5 million** in additional borrowing capacity from the FHLB as of June 30, 2025[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk) [Item 4. Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the Company's disclosure controls and procedures were **effective** as of June 30, 2025[262](index=262&type=chunk) - No material changes to internal controls over financial reporting occurred during the quarter ended June 30, 2025[264](index=264&type=chunk) [PART II – OTHER INFORMATION](index=71&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company and its subsidiaries are involved in various legal actions arising in the normal course of business, with management believing the outcomes will not have a material adverse effect on the consolidated financial condition - The company is party to various legal actions from the normal course of business, but management does not expect any to have a **material adverse effect** on its financial condition[266](index=266&type=chunk) [Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Form 10-K for the fiscal year ended December 31, 2024 - No material changes have occurred to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[267](index=267&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 63,402 shares of common stock at an average price of $27.65 per share, with approximately $13.2 million remaining available under the repurchase program through December 31, 2025 Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | June 1 - 30, 2025 | 63,402 | $27.65 | | **Total Q2 2025** | **63,402** | **$27.65** | - The company has a share repurchase program allowing for up to **$15.0 million** in repurchases through December 31, 2025 As of June 30, 2025, **$11.5 million** remained available under this authorization[269](index=269&type=chunk) [Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[270](index=270&type=chunk) [Other Information](index=71&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements for the purchase or sale of company securities - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the fiscal quarter[272](index=272&type=chunk) [Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, award agreements, credit agreements, officer certifications, and XBRL data files - Exhibits filed include officer certifications (31.1, 31.2, 31.3, 32.1, 32.2, 32.3) and Inline XBRL financial data (101)[273](index=273&type=chunk)[274](index=274&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $10 million or 48 cents per diluted common share, with net interest income increasing by $2.5 million to $50 million compared to the linked quarter [13][14] - The tax equivalent net interest margin expanded by 13 basis points to 3.57% in the second quarter, driven by higher earning asset volumes and yields [14] - The consolidated CET1 ratio was 11.02% at June 30, 2025, up five basis points from March 31, 2025 [13] Business Line Data and Key Metrics Changes - Solid loan growth of 7.4% was reported, with commercial loan production reaching $215 million, the highest in the last six quarters [5][11] - Wealth management revenues increased by 5% linked quarter, and SBA fee income doubled compared to the same period last year [6][11] - Noninterest income was $10.2 million, slightly up from $10.1 million in the linked quarter, driven by increases in wealth management, card revenue, and mortgage origination fees [15] Market Data and Key Metrics Changes - Average deposits remained flat, while end-of-period deposits decreased slightly; however, noninterest-bearing balances were ahead of both the linked quarter and the year-ago quarter [10] - The loan pipeline showed strength, particularly in commercial and industrial lending, offsetting small declines in agricultural and commercial real estate lending [10][11] Company Strategy and Development Direction - The company continues to execute its 2025 strategic initiatives, focusing on disciplined balance sheet management and building a high-performing team [5][6] - There is a commitment to expanding talent in key markets, with significant new hires in commercial banking and wealth management [6][12] - The company is exploring M&A opportunities, focusing on geographic expansion and enhancing business lines that can add value [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the balance sheet and underlying earnings momentum, positioning the company well for the remainder of 2025 [8][73] - The expectation for mid-single-digit loan growth remains for the second half of 2025, with a focus on organic growth [5][11] - Management anticipates that credit loss expenses will normalize in the back half of the year, reflecting a more historical level [36] Other Important Information - A significant impact on asset quality and net income was noted due to a single $24 million nonaccrual loan, which has been classified and is undergoing resolution [7] - The company revised its 2025 annual expense guidance to a range of $146 million to $148 million due to recent talent investments [16] Q&A Session Summary Question: Can you unpack the C&I growth for the quarter? - Management noted strong contributions across various regions and industries, with a mix of existing and new clients driving growth [18][19] Question: What are the expectations for net interest margin in the second half of the year? - Management expects continued margin expansion, albeit at a slower pace of 4 to 5 basis points per quarter [48] Question: What happened with the large CRE loan that impacted asset quality? - Management explained that the loan was a non-owner occupied office in suburban Minneapolis that moved to nonaccrual due to payment issues, but it is currently cash flowing [26][28] Question: How do you see the impact of recent hires on long-term growth? - Management indicated that seasoned bankers are expected to contribute immediately, with a more significant impact anticipated in 2026 [44][45] Question: What are the priorities for potential M&A targets? - The focus is on geographic expansion and enhancing business lines that can add value, with a preference for digestible-sized transactions [66]

Financial Performance - Total assets decreased by 1.5% from Q1 2025 to $6.16 billion [6] - Loans held for investment increased by 1.8% from Q1 2025 to $4.38 billion [6] - Total deposits decreased by 1.8% from Q1 2025 to $5.39 billion [6] - Net income decreased by 34% from Q1 2025 to $10.0 million [30] - Diluted EPS decreased by 34% from Q1 2025 to $0.48 [6] - Net interest margin, tax equivalent, increased by 13 bps from Q1 2025 to 3.57% [6] Credit Risk Profile - Nonperforming loans ratio increased by 44 bps from Q1 2025 to 0.85% [6] - Net charge-off ratio decreased by 27 bps from Q1 2025 to 0.02% [6] - Allowance for credit losses ratio increased by 25 bps from Q1 2025 to 1.50% [6] Wealth Management - Wealth Management Assets Under Administration increased from $3.15 billion in 2024 to $3.28 billion in 2025 [21] - Investment Services and Private Wealth Revenue for Q2 2025 was $7.2 million and $4.9 million respectively [22]

Core Insights - MidWestOne (MOFG) reported revenue of $60.23 million for the quarter ended June 2025, reflecting a 4% increase year-over-year and a surprise of +1.48% over the Zacks Consensus Estimate of $59.35 million [1] - The company's EPS was $0.49, up from $0.45 in the same quarter last year, but fell short of the consensus estimate of $0.77, resulting in an EPS surprise of -36.36% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.5%, matching the average estimate from two analysts [4] - Efficiency Ratio stood at 56.2%, better than the two-analyst average estimate of 59.3% [4] - Total Noninterest Income was $10.25 million, slightly below the average estimate of $10.59 million from two analysts [4] - Net Interest Income reached $49.98 million, exceeding the average estimate of $48.8 million based on two analysts [4] Stock Performance - Over the past month, MidWestOne shares have returned +7.6%, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - MidWestOne (MOFG) reported quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.77 per share, representing a -36.36% earnings surprise [1][2] Financial Performance - The company posted revenues of $60.23 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.48%, compared to year-ago revenues of $57.9 million [2] - Over the last four quarters, MidWestOne has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - MidWestOne shares have increased by approximately 2.5% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.83 on revenues of $61.35 million, and for the current fiscal year, it is $3.19 on revenues of $241.05 million [7] - The outlook for the industry, specifically the Banks - Midwest sector, is currently in the top 29% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8]

[Executive Summary](index=1&type=section&id=Second%20Quarter%202025%20Summary) This section provides an overview of the second quarter 2025 performance, including CEO commentary and key financial highlights [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Charles Reeves highlighted strong Q2 2025 strategic execution, robust loan growth, and net interest margin expansion, despite an unfavorable $24 million CRE credit impact - Strong loan growth and back book loan re-pricing led to tax equivalent net interest margin expansion of **13 basis points**, to **3.57%**, and to **5%** linked quarter net interest income growth[4](index=4&type=chunk) - Wealth management, Small Business Administration ("SBA"), and residential mortgage revenues were up quarter over quarter, reflecting investments in relationship fee income businesses[4](index=4&type=chunk) - Earnings and certain asset quality measures were unfavorably impacted by a single **$24 million** suburban Twin Cities CRE office credit, which moved to nonaccrual and resulted in a specific reserve, increasing the allowance for credit losses ratio to **1.50%**[5](index=5&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Summary_Highlights) Q2 2025 highlights include a **15%** rise in pre-tax, pre-provision net revenue, **13 bps** NIM expansion, and **7.4%** annualized loan growth, despite higher credit loss expense Q2 2025 Key Financial Highlights (Linked Quarter Comparison) | Metric | Q2 2025 | Change from Q1 2025 | | :--------------------------------- | :------ | :------------------ | | Pre-tax, pre-provision net revenue | $24.5M | +15% | | Net interest margin (tax equivalent) | 3.57% | +13 bps | | Noninterest income | $10.2M | | | Noninterest expense | $35.8M | | | Efficiency ratio | 56.20% | Improved from 59.38% | | Net income | $10.0M | | | Diluted EPS | $0.48 | | | Credit loss expense | $11.9M | | | Criticized loans ratio | 5.15% | Improved 32 bps | | Allowance for credit losses ratio | 1.50% | | | Annualized loan growth | 7.4% | | | Tangible book value per share | $23.92 | +2.4% | | CET1 capital ratio | 11.02% | Improved 5 bps | - Provided notice of redemption for all **$65.0 million** aggregate principal of the Company's 5.75% fixed-to-floating rate subordinated notes due 2030[6](index=6&type=chunk) [Financial Performance Review](index=2&type=section&id=REVENUE%20REVIEW) This section reviews Q2 2025 financial performance, detailing revenue, net interest income, noninterest income, and expense trends [Revenue Review](index=2&type=section&id=Revenue%20Review_Sub) Total Q2 2025 revenue increased by **5%** linked quarter and **4%** year-over-year, driven by net interest income growth Total Revenue, Net Interest Income, and Noninterest Income (QoQ & YoY Changes in thousands) | Metric (in thousands) | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs 1Q25 | Change 2Q25 vs 2Q24 | | :-------------------- | :--- | :--- | :--- | :------------------ | :------------------ | | Net interest income | $49,982 | $47,439 | $36,347 | 5% | 38% | | Noninterest income | $10,249 | $10,136 | $21,554 | 1% | (52)% | | Total revenue | $60,231 | $57,575 | $57,901 | 5% | 4% | [Net Interest Income](index=2&type=section&id=Net%20interest%20income) Net interest income grew **5%** linked quarter and **38%** year-over-year, with tax equivalent net interest margin expanding to **3.57%** - Net interest income increased **$2.5 million** from Q1 2025 due to higher earning asset volumes and yields and lower funding costs[9](index=9&type=chunk) - Net interest income increased **$13.6 million** from Q2 2024 due to higher earning asset yields and lower funding volumes and costs[9](index=9&type=chunk) Tax Equivalent Net Interest Margin and Key Drivers | Metric | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs 1Q25 | Change 2Q25 vs 2Q24 | | :-------------------------- | :----- | :----- | :----- | :------------------ | :------------------ | | Tax equivalent NIM | 3.57% | 3.44% | 2.41% | +13 bps | +116 bps | | Total earning asset yield | | | | +12 bps | +75 bps | | Loan yield | | | | +10 bps | +12 bps | | Interest bearing liability costs | 2.39% | 2.41% | 2.85% | -2 bps | -46 bps | [Noninterest Income](index=4&type=section&id=Noninterest%20Income_Sub) Noninterest income increased **1%** linked quarter but decreased **52%** year-over-year, primarily due to a prior-year branch sale gain Noninterest Income Categories (QoQ & YoY Changes in thousands) | Category (in thousands) | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs 1Q25 | Change 2Q25 vs 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------ | :------------------ | | Investment services and trust activities | $3,705 | $3,544 | $3,504 | 5% | 6% | | Service charges and fees | $2,190 | $2,131 | $2,156 | 3% | 2% | | Card revenue | $1,934 | $1,744 | $1,907 | 11% | 1% | | Loan revenue | $1,417 | $1,194 | $1,525 | 19% | (7)% | | Bank-owned life insurance | $677 | $1,057 | $668 | (36)% | 1% | | Investment securities gains, net | $0 | $33 | $33 | (100)% | (100)% | | Other | $326 | $433 | $11,761 | (25)% | (97)% | | Total noninterest income | $10,249 | $10,136 | $21,554 | 1% | (52)% | - The significant decrease in noninterest income from Q2 2024 was primarily due to an **$11.1 million** gain from the sale of Florida banking operations in the prior year, recorded in 'Other' revenue[12](index=12&type=chunk) [Expense Review](index=4&type=section&id=EXPENSE%20REVIEW) Noninterest expense decreased **1%** linked quarter, remaining stable year-over-year, driven by lower data processing and compensation costs Noninterest Expense Categories (QoQ & YoY Changes in thousands) | Category (in thousands) | 2Q25 | 1Q25 | 2Q24 | Change 2Q25 vs 1Q25 | Change 2Q25 vs 2Q24 | | :---------------------- | :--- | :--- | :--- | :------------------ | :------------------ | | Compensation and employee benefits | $21,011 | $21,212 | $20,985 | (1)% | — % | | Occupancy expense of premises, net | $2,540 | $2,588 | $2,435 | (2)% | 4% | | Equipment | $2,550 | $2,426 | $2,530 | 5% | 1% | | Legal and professional | $2,153 | $2,226 | $2,253 | (3)% | (4)% | | Data processing | $1,486 | $1,698 | $1,645 | (12)% | (10)% | | Marketing | $762 | $552 | $636 | 38% | 20% | | Amortization of intangibles | $1,252 | $1,408 | $1,593 | (11)% | (21)% | | FDIC insurance | $851 | $917 | $1,051 | (7)% | (19)% | | Other | $2,918 | $3,033 | $2,304 | (4)% | 27% | | Total noninterest expense | $35,767 | $36,293 | $35,761 | (1)% | — % | Merger-related Expenses (in thousands) | Category | 2Q25 | 1Q25 | 2Q24 | | :------- | :--- | :--- | :--- | | Total merger-related expenses | $0 | $40 | $854 | - The decrease in compensation and employee benefits from Q1 2025 reflected the receipt of **$1.1 million** from Employee Retention Credit claims, partially offset by higher wage, equity compensation and employee benefits expense[15](index=15&type=chunk) [Income Tax Expense](index=5&type=section&id=Income%20Tax%20Expense) The effective tax rate for Q2 2025 was **20.6%**, with a full-year 2025 expectation of **22-23%** Effective Tax Rate | Period | Effective Tax Rate | | :----- | :----------------- | | 2Q25 | 20.6% | | 1Q25 | 22.7% | - The effective income tax rate for the full year 2025 is expected to be **22-23%**[17](index=17&type=chunk) [Balance Sheet Review](index=5&type=section&id=BALANCE%20SHEET%20REVIEW) This section reviews the company's balance sheet components, including assets, loans, securities, deposits, borrowed funds, and capital, for the second quarter of 2025 [Total Assets](index=5&type=section&id=Total%20Assets) Total assets decreased to **$6.16 billion** at June 30, 2025, primarily due to lower cash and security volumes, partially offset by loan growth Total Assets (in billions) | Date | Total Assets | Change from Mar 31, 2025 | Change from Jun 30, 2024 | | :--- | :----------- | :----------------------- | :----------------------- | | Jun 30, 2025 | $6.16B | -$0.09B | -$0.42B | | Mar 31, 2025 | $6.25B | | | | Jun 30, 2024 | $6.58B | | | [Loans Held for Investment](index=5&type=section&id=Loans%20Held%20for%20Investment) Loans held for investment grew to **$4.38 billion**, increasing **1.8%** linked quarter and **2.2%** year-over-year, driven by organic growth Loans Held for Investment (in thousands) | Category | Jun 30, 2025 Balance | % of Total | Mar 31, 2025 Balance | % of Total | Jun 30, 2024 Balance | % of Total | | :-------------------------- | :------------------- | :--------- | :------------------- | :--------- | :------------------- | :--------- | | Commercial and industrial | $1,226,265 | 28.0% | $1,140,138 | 26.5% | $1,120,983 | 26.1% | | Agricultural | $128,717 | 2.9% | $131,409 | 3.1% | $107,983 | 2.5% | | Commercial real estate | $2,313,074 | 52.8% | $2,320,179 | 53.8% | $2,313,856 | 54.0% | | Residential real estate | $656,641 | 15.0% | $654,034 | 15.2% | $668,646 | 15.6% | | Consumer | $56,491 | 1.3% | $58,424 | 1.4% | $75,764 | 1.8% | | Total loans held for investment | $4,381,188 | 100.0% | $4,304,184 | 100.0% | $4,287,232 | 100.0% | - Total loans held for investment increased **$77.0 million** (**1.8%**) from Q1 2025 and **$94.0 million** (**2.2%**) from Q2 2024, driven by organic loan growth and higher line of credit usage[19](index=19&type=chunk) [Investment Securities](index=5&type=section&id=Investment%20Securities) Investment securities decreased to **$1.24 billion**, down **$70.5 million** linked quarter and **$589.1 million** year-over-year, due to principal cash flows and balance sheet repositioning Investment Securities (in thousands) | Category | Jun 30, 2025 Balance | % of Total | Mar 31, 2025 Balance | % of Total | Jun 30, 2024 Balance | % of Total | | :------------------ | :------------------- | :--------- | :------------------- | :--------- | :------------------- | :--------- | | Available for sale | $1,235,045 | 100.0% | $1,305,530 | 100.0% | $771,034 | 42.3% | | Held to maturity | $0 | — % | $0 | — % | $1,053,080 | 57.7% | | Total investment securities | $1,235,045 | | $1,305,530 | | $1,824,114 | | - The decrease from Q2 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning[20](index=20&type=chunk) [Deposits](index=6&type=section&id=Deposits) Total deposits decreased to **$5.39 billion**, down **1.8%** linked quarter, while noninterest bearing deposits increased Deposits by Type (in thousands) | Category | Jun 30, 2025 Balance | % of Total | Mar 31, 2025 Balance | % of Total | Jun 30, 2024 Balance | % of Total | | :-------------------------- | :------------------- | :--------- | :------------------- | :--------- | :------------------- | :--------- | | Noninterest bearing deposits | $910,693 | 16.9% | $903,714 | 16.5% | $882,472 | 16.3% | | Interest checking deposits | $1,206,096 | 22.5% | $1,283,328 | 23.3% | $1,284,243 | 23.7% | | Money market deposits | $971,048 | 18.0% | $1,002,066 | 18.3% | $1,043,376 | 19.3% | | Savings deposits | $851,636 | 15.8% | $877,348 | 16.0% | $745,639 | 13.8% | | Time deposits of $250 and under | $837,302 | 15.5% | $818,012 | 14.9% | $803,301 | 14.8% | | Total core deposits | $4,776,775 | 88.7% | $4,884,468 | 89.0% | $4,759,031 | 87.9% | | Brokered time deposits | $200,000 | 3.7% | $200,000 | 3.6% | $196,000 | 3.6% | | Time deposits over $250 | $411,323 | 7.6% | $404,674 | 7.4% | $457,388 | 8.5% | | Total deposits | $5,388,098 | 100.0% | $5,489,142 | 100.0% | $5,412,419 | 100.0% | [Borrowed Funds](index=6&type=section&id=Borrowed%20Funds) Borrowed funds decreased to **$112.3 million**, significantly down year-over-year due to BTFP pay-offs and planned subordinated note redemption Borrowed Funds (in thousands) | Category | Jun 30, 2025 Balance | % of Total | Mar 31, 2025 Balance | % of Total | Jun 30, 2024 Balance | % of Total | | :------------------ | :------------------- | :--------- | :------------------- | :--------- | :------------------- | :--------- | | Short-term borrowings | $0 | — % | $1,482 | 1.3% | $414,684 | 78.3% | | Long-term debt | $112,320 | 100.0% | $111,398 | 98.7% | $114,839 | 21.7% | | Total borrowed funds | $112,320 | | $112,880 | | $529,523 | | - The decrease compared to June 30, 2024, was primarily due to the pay-off of **$405.0 million** of BTFP borrowings[22](index=22&type=chunk) - The Company provided notice to redeem all **$65.0 million** aggregate principal of its 5.75% fixed-to-floating rate subordinated notes due 2030, expecting to use cash on hand and proceeds from a **$50.0 million** senior term note[23](index=23&type=chunk) [Capital](index=6&type=section&id=Capital) Total shareholders' equity increased by **$9.4 million**, with all regulatory capital ratios showing improvement linked quarter and year-over-year Key Capital Ratios (MidWestOne Financial Group, Inc. Consolidated) | Ratio | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :---------------------------------- | :----------- | :----------- | :----------- | | Tier 1 leverage to average assets ratio | 9.62% | 9.50% | 8.29% | | Common equity tier 1 capital to risk-weighted assets ratio | 11.02% | 10.97% | 9.56% | | Tier 1 capital to risk-weighted assets ratio | 11.88% | 11.84% | 10.35% | | Total capital to risk-weighted assets ratio | 14.44% | 14.34% | 12.62% | - Total shareholders' equity at June 30, 2025, increased **$9.4 million** from March 31, 2025, primarily due to a decrease in accumulated other comprehensive loss and an increase in retained earnings[24](index=24&type=chunk) [Shareholder Information](index=7&type=section&id=Shareholder%20Information) This section provides details on dividends declared and the company's share repurchase program for the second quarter of 2025 [Dividends](index=7&type=section&id=Dividends) A cash dividend of **$0.2425 per common share** was declared, payable September 16, 2025 - A cash dividend of **$0.2425 per common share** was declared, payable September 16, 2025, to shareholders of record on September 2, 2025[25](index=25&type=chunk) [Share Repurchase Program](index=7&type=section&id=Share%20Repurchase%20Program) The company repurchased 63,402 shares for **$1.8 million** in Q2 2025, with **$13.2 million** remaining under the program Share Repurchase Activity (Q2 2025) | Metric | Value | | :-------------------------------- | :------ | | Shares repurchased (Q2 2025) | 63,402 | | Total cost (Q2 2025) | $1.8M | | Average price per share (Q2 2025) | $27.65 | | Remaining under program (Jun 30, 2025) | $13.2M | [Credit Quality Review](index=7&type=section&id=CREDIT%20QUALITY%20REVIEW) This section reviews the company's credit quality metrics, including nonperforming loans, allowance for credit losses, and net charge-offs [Credit Quality Metrics](index=7&type=section&id=Credit%20Quality%20Metrics) Nonperforming loans and assets increased significantly due to a **$24.0 million** CRE office credit, raising the allowance for credit losses ratio to **1.50%** Key Credit Quality Metrics (in thousands, except ratios) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :---------------------------------- | :----------- | :----------- | :----------- | | Credit loss expense related to loans | $12,089 | $1,787 | $467 | | Net charge-offs | $189 | $3,087 | $524 | | Allowance for credit losses | $65,800 | $53,900 | $53,900 | | Nonperforming loans | $37,192 | $17,470 | $25,128 | | Nonperforming assets | $40,606 | $20,889 | $31,181 | | Net charge-off ratio | 0.02% | 0.29% | 0.05% | | Classified loans ratio | 2.89% | 2.65% | 3.48% | | Criticized loans ratio | 5.15% | 5.47% | 6.89% | | Nonperforming loans ratio | 0.85% | 0.41% | 0.59% | | Nonperforming assets ratio | 0.66% | 0.33% | 0.47% | | Allowance for credit losses ratio | 1.50% | 1.25% | 1.26% | | Allowance for credit losses to nonaccrual loans ratio | 179.19% | 309.47% | 218.26% | - Nonperforming loans and nonperforming assets increased **$19.7 million** from the linked quarter, primarily due to a single **$24.0 million** CRE office credit, partially offset by the sale of a **$3.9 million** CRE office credit[28](index=28&type=chunk) - The allowance for credit losses was **$65.8 million** and the allowance for credit losses ratio was **1.50%** at June 30, 2025, reflecting the specific reserve established for the single CRE office credit[29](index=29&type=chunk) [Nonperforming Loans Roll Forward](index=8&type=section&id=Nonperforming%20Loans%20Roll%20Forward) The nonperforming loans roll forward shows a **$25.8 million** increase in nonaccrual or 90+ days past due loans, contributing to the rise in total nonperforming loans Nonperforming Loans Roll Forward (in thousands) | Activity | Nonaccrual | 90+ Days Past Due & Still Accruing | Total | | :------------------------------------------ | :--------- | :--------------------------------- | :---- | | Balance at March 31, 2025 | $17,417 | $53 | $17,470 | | Loans placed on nonaccrual or 90+ days past due & still accruing | $25,279 | $569 | $25,848 | | Proceeds related to repayment or sale | $(4,973) | $0 | $(4,973) | | Loans returned to accrual status or no longer past due | $(632) | $0 | $(632) | | Charge-offs | $(187) | $(151) | $(338) | | Transfers to foreclosed assets | $(183) | $0 | $(183) | | Balance at June 30, 2025 | $36,721 | $471 | $37,192 | [Company Information](index=8&type=section&id=ABOUT%20MIDWESTONE%20FINANCIAL%20GROUP%2C%20INC.) This section provides details on the upcoming conference call, company overview, and cautionary notes regarding forward-looking statements [Conference Call Details](index=8&type=section&id=CONFERENCE%20CALL%20DETAILS) The company will host an investor conference call on July 25, 2025, at 11:00 a.m. CT, with pre-registration and replay options available - A conference call for investors will be held at 11:00 a.m. CT on Friday, July 25, 2025. Pre-registration and dial-in details are available, along with a replay until October 23, 2025[31](index=31&type=chunk) [About MidWestOne Financial Group, Inc.](index=8&type=section&id=ABOUT%20MIDWESTONE%20FINANCIAL%20GROUP%2C%20INC._Sub) MidWestOne Financial Group, Inc. is an Iowa City-headquartered financial holding company operating MidWestOne Bank across multiple states and trading on Nasdaq - MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa, operating MidWestOne Bank across Iowa, Minnesota, Wisconsin, and Colorado[32](index=32&type=chunk) - The company provides electronic delivery of financial services through its website and trades on the Nasdaq Global Select Market under the symbol 'MOFG'[32](index=32&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=8&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section warns that forward-looking statements are subject to risks, including interest rate changes, credit quality, economic conditions, and regulatory factors, which could materially alter actual results - The release contains forward-looking statements subject to known and unknown risks and uncertainties that may cause actual results to differ materially from expectations[33](index=33&type=chunk) - Key risk factors include changes in interest rates, fluctuations in investment securities value, credit quality deterioration, economic conditions, governmental policies, regulatory changes, competition, and operational risks like cybersecurity incidents[34](index=34&type=chunk)[35](index=35&type=chunk) [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets and statements of income over five quarters, detailing financial position and performance [Five Quarter Consolidated Balance Sheets](index=10&type=section&id=FIVE%20QUARTER%20CONSOLIDATED%20BALANCE%20SHEETS) The consolidated balance sheet provides a detailed breakdown of assets, liabilities, and shareholders' equity over five quarters, showing trends in cash, securities, loans, deposits, and capital Consolidated Balance Sheet Summary (in thousands) | Category | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :---------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $6,160,773 | $6,254,394 | $6,236,329 | $6,552,482 | $6,581,658 | | Total loans held for investment, net | $4,315,388 | $4,250,284 | $4,260,427 | $4,274,756 | $4,233,332 | | Total securities | $1,235,045 | $1,305,530 | $1,328,433 | $1,623,104 | $1,824,114 | | Total deposits | $5,388,098 | $5,489,142 | $5,477,982 | $5,368,727 | $5,412,419 | | Total liabilities | $5,571,733 | $5,674,769 | $5,676,633 | $5,990,244 | $6,038,372 | | Total shareholders' equity | $589,040 | $579,625 | $559,696 | $562,238 | $543,286 | [Five Quarter Consolidated Statements of Income](index=11&type=section&id=FIVE%20QUARTER%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The consolidated statements of income present the company's revenues, expenses, and net income over five quarters, highlighting trends in interest income, interest expense, noninterest income, noninterest expense, and credit loss expense Consolidated Statements of Income Summary (in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :---------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest income | $77,420 | $74,739 | $78,267 | $73,696 | $72,776 | | Total interest expense | $27,438 | $27,300 | $29,329 | $36,175 | $36,429 | | Net interest income | $49,982 | $47,439 | $48,938 | $37,521 | $36,347 | | Credit loss expense | $11,889 | $1,687 | $1,291 | $1,535 | $1,267 | | Total noninterest income (loss) | $10,249 | $10,136 | $10,837 | $(130,388) | $21,554 | | Total noninterest expense | $35,767 | $36,293 | $37,372 | $35,798 | $35,761 | | Net income (loss) | $9,980 | $15,138 | $16,330 | $(95,707) | $15,819 | | Diluted earnings per common share | $0.48 | $0.73 | $0.78 | $(6.05) | $1.00 | [Financial Statistics & Ratios](index=12&type=section&id=FINANCIAL%20STATISTICS) This section provides a comprehensive overview of key financial metrics, including earnings, per share data, balance sheet figures, and various financial and credit risk ratios [Key Financial Statistics](index=12&type=section&id=Key%20Financial%20Statistics) This section provides a comprehensive overview of key financial metrics, including earnings, per share data, balance sheet figures, average balance sheet figures, and various financial and credit risk ratios for the current and prior periods Key Financial Statistics (Q2 2025 vs. Q1 2025 vs. Q2 2024) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | | :---------------------------------- | :----------- | :----------- | :----------- | | Net income | $9,980 | $15,138 | $15,819 | | Diluted earnings per share | $0.48 | $0.73 | $1.00 | | Total assets | $6,160,773 | $6,254,394 | $6,581,658 | | Total deposits | $5,388,098 | $5,489,142 | $5,412,419 | | Total shareholders' equity | $589,040 | $579,625 | $543,286 | | Return on average assets | 0.65% | 1.00% | 0.95% | | Return on average equity | 6.81% | 10.74% | 11.91% | | Net interest margin, tax equivalent | 3.57% | 3.44% | 2.41% | | Efficiency ratio | 56.20% | 59.38% | 56.29% | | Nonperforming loans ratio | 0.85% | 0.41% | 0.59% | | Allowance for credit losses ratio | 1.50% | 1.25% | 1.26% | [Average Balance Sheet and Yield Analysis](index=13&type=section&id=AVERAGE%20BALANCE%20SHEET%20AND%20YIELD%20ANALYSIS) This section details average balances, interest income/expense, and yields/costs for assets and liabilities over three and six-month periods, highlighting net interest income and margin drivers Average Balance Sheet and Yield Analysis (Q2 2025) | Category | Average Balance (000s) | Interest Income/Expense (000s) | Average Yield/Cost | | :---------------------------------- | :--------------------- | :----------------------------- | :----------------- | | **Assets** | | | | | Loans, including fees | $4,370,196 | $63,298 | 5.81% | | Total interest earning assets | $5,745,664 | $78,602 | 5.49% | | **Liabilities** | | | | | Total interest bearing deposits | $4,486,819 | $25,665 | 2.29% | | Total borrowed funds | $112,931 | $1,773 | 6.30% | | Total interest bearing liabilities | $4,599,750 | $27,438 | 2.39% | | **Key Ratios** | | | | | Net interest spread | | | 3.10% | | Net interest margin | | | 3.57% | | Cost of funds | | | 2.00% | Average Balance Sheet and Yield Analysis (Six Months Ended Jun 30, 2025) | Category | Average Balance (000s) | Interest Income/Expense (000s) | Average Yield/Cost | | :---------------------------------- | :--------------------- | :----------------------------- | :----------------- | | **Assets** | | | | | Loans, including fees | $4,330,659 | $123,741 | 5.76% | | Total interest earning assets | $5,736,992 | $154,484 | 5.43% | | **Liabilities** | | | | | Total interest bearing deposits | $4,481,765 | $51,149 | 2.30% | | Total borrowed funds | $114,491 | $3,589 | 6.32% | | Total interest bearing liabilities | $4,596,256 | $54,738 | 2.40% | | **Key Ratios** | | | | | Net interest spread | | | 3.03% | | Net interest margin | | | 3.51% | | Cost of funds | | | 2.00% | [Non-GAAP Measures Reconciliation](index=15&type=section&id=Non-GAAP%20Measures) This section reconciles GAAP to non-GAAP financial measures, including tangible common equity, return on average tangible equity, net interest margin, loan yield, efficiency ratio, and adjusted earnings [Tangible Common Equity & Book Value](index=15&type=section&id=Tangible%20Common%20Equity%2FTangible%20Book%20Value%20per%20Share%2FTangible%20Common%20Equity%20Ratio) This section reconciles GAAP to non-GAAP measures for tangible common equity, tangible book value per share, and tangible common equity ratio, used to evaluate financial condition and capital adequacy Tangible Common Equity Reconciliation (in thousands, except per share data) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total shareholders' equity | $589,040 | $579,625 | $559,696 | $562,238 | $543,286 | | Intangible assets, net | $(92,147) | $(93,399) | $(94,807) | $(96,257) | $(97,327) | | Tangible common equity | $496,893 | $486,226 | $464,889 | $465,981 | $445,959 | | Total assets | $6,160,773 | $6,254,394 | $6,236,329 | $6,552,482 | $6,581,658 | | Tangible assets | $6,068,626 | $6,160,995 | $6,141,522 | $6,456,225 | $6,484,331 | | Book value per share | $28.36 | $27.85 | $26.94 | $27.06 | $34.44 | | Tangible book value per share | $23.92 | $23.36 | $22.37 | $22.43 | $28.27 | | Common equity ratio | 9.56% | 9.27% | 8.97% | 8.58% | 8.25% | | Tangible common equity ratio | 8.19% | 7.89% | 7.57% | 7.22% | 6.88% | [Return on Average Tangible Equity](index=15&type=section&id=Return%20on%20Average%20Tangible%20Equity) This section reconciles net income to tangible net income and average shareholders' equity to average tangible equity to derive the non-GAAP measure of return on average tangible equity Return on Average Tangible Equity Reconciliation (in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 (Six Months) | Jun 30, 2024 (Six Months) | | :-------------------------- | :----------- | :----------- | :----------- | :------------------------ | :------------------------ | | Net income | $9,980 | $15,138 | $15,819 | $25,118 | $19,088 | | Intangible amortization, net of tax | $931 | $1,047 | $1,195 | $1,978 | $2,423 | | Tangible net income | $10,911 | $16,185 | $17,014 | $27,096 | $21,511 | | Average shareholders' equity | $587,708 | $571,378 | $533,994 | $579,588 | $530,763 | | Average intangible assets, net | $(92,733) | $(94,169) | $(99,309) | $(93,447) | $(97,302) | | Average tangible equity | $494,975 | $477,209 | $434,685 | $486,141 | $433,461 | | Return on average equity | 6.81% | 10.74% | 11.91% | 8.74% | 7.23% | | Return on average tangible equity | 8.84% | 13.75% | 15.74% | 11.24% | 9.98% | [Net Interest Margin (Tax Equivalent) & Core Net Interest Margin](index=16&type=section&id=Net%20Interest%20Margin%2C%20Tax%20Equivalent%2FCore%20Net%20Interest%20Margin) This section reconciles net interest income to tax equivalent and core net interest income, along with corresponding net interest margins, by adjusting for tax equivalent items and loan purchase discount accretion Net Interest Margin Reconciliation (in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 (Six Months) | Jun 30, 2024 (Six Months) | | :-------------------------- | :----------- | :----------- | :----------- | :------------------------ | :------------------------ | | Net interest income | $49,982 | $47,439 | $36,347 | $97,421 | $71,078 | | Tax equivalent adjustments: Loans | $1,022 | $981 | $938 | $2,003 | $1,858 | | Tax equivalent adjustments: Securities | $160 | $162 | $377 | $322 | $764 | | Net interest income, tax equivalent | $51,164 | $48,582 | $37,662 | $99,746 | $73,700 | | Loan purchase discount accretion | $(1,142) | $(1,166) | $(1,261) | $(2,308) | $(2,413) | | Core net interest income | $50,022 | $47,416 | $36,401 | $97,438 | $71,287 | | Net interest margin | 3.49% | 3.36% | 2.33% | 3.42% | 2.29% | | Net interest margin, tax equivalent | 3.57% | 3.44% | 2.41% | 3.51% | 2.37% | | Core net interest margin | 3.49% | 3.36% | 2.33% | 3.42% | 2.29% | [Loan Yield (Tax Equivalent) & Core Yield on Loans](index=16&type=section&id=Loan%20Yield%2C%20Tax%20Equivalent%20%2F%20Core%20Yield%20on%20Loans) This section reconciles loan interest income to tax equivalent and core loan interest income, providing corresponding loan yields, by adjusting for tax equivalent items and loan purchase discount accretion Loan Yield Reconciliation (in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 (Six Months) | Jun 30, 2024 (Six Months) | | :-------------------------- | :----------- | :----------- | :----------- | :------------------------ | :------------------------ | | Loan interest income, including fees | $62,276 | $59,462 | $61,643 | $121,738 | $119,590 | | Tax equivalent adjustment | $1,022 | $981 | $938 | $2,003 | $1,858 | | Tax equivalent loan interest income | $63,298 | $60,443 | $62,581 | $123,741 | $121,448 | | Loan purchase discount accretion | $(1,142) | $(1,166) | $(1,261) | $(2,308) | $(2,413) | | Core loan interest income | $62,156 | $59,277 | $61,320 | $121,433 | $119,035 | | Yield on loans | 5.72% | 5.62% | 5.61% | 5.67% | 5.52% | | Yield on loans, tax equivalent | 5.81% | 5.71% | 5.69% | 5.76% | 5.60% | | Core yield on loans | 5.70% | 5.60% | 5.58% | 5.65% | 5.49% | [Efficiency Ratio](index=16&type=section&id=Efficiency%20Ratio) This section reconciles total noninterest expense and total revenue to calculate the non-GAAP efficiency ratio, adjusting for specific non-operating items Efficiency Ratio Reconciliation (in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 (Six Months) | Jun 30, 2024 (Six Months) | | :-------------------------- | :----------- | :----------- | :----------- | :------------------------ | :------------------------ | | Total noninterest expense | $35,767 | $36,293 | $35,761 | $72,060 | $71,326 | | Amortization of intangibles | $(1,252) | $(1,408) | $(1,593) | $(2,660) | $(3,230) | | Merger-related expenses | $0 | $(40) | $(854) | $(40) | $(2,168) | | Noninterest expense used for efficiency ratio | $34,515 | $34,845 | $33,314 | $69,360 | $65,928 | | Net interest income, tax equivalent | $51,164 | $48,582 | $37,662 | $99,746 | $73,700 | | Plus: Noninterest income | $10,249 | $10,136 | $21,554 | $20,385 | $31,304 | | Less: Investment securities gains, net | $0 | $33 | $33 | $33 | $69 | | Net revenues used for efficiency ratio | $61,413 | $58,685 | $59,183 | $120,098 | $104,935 | | Efficiency ratio | 56.20% | 59.38% | 56.29% | 57.75% | 62.83% | [Adjusted Earnings & EPS](index=17&type=section&id=Adjusted%20Earnings) This section reconciles net income to adjusted earnings and diluted EPS to adjusted EPS, by adjusting for specific non-recurring or non-operating items Adjusted Earnings Reconciliation (in thousands, except per share data) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 (Six Months) | Jun 30, 2024 (Six Months) | | :---------------------------------- | :----------- | :----------- | :----------- | :------------------------ | :------------------------ | | Net income | $9,980 | $15,138 | $15,819 | $25,118 | $19,088 | | Less: Investment securities gains, net of tax | $0 | $25 | $24 | $24 | $51 | | Less: Mortgage servicing rights (loss) gain, net of tax | $(196) | $(158) | $96 | $(355) | $(177) | | Plus: Merger-related expenses, net of tax | $0 | $30 | $634 | $30 | $1,608 | | Less: Gain on branch sale, net of tax | $0 | $0 | $8,201 | $0 | $8,201 | | Adjusted earnings | $10,176 | $15,301 | $8,132 | $25,479 | $12,621 | | Earnings per common share - diluted | $0.48 | $0.73 | $1.00 | $1.20 | $1.21 | | Adjusted earnings per common share | $0.49 | $0.73 | $0.52 | $1.22 | $0.80 | [Pre-tax Pre-provision Net Revenue](index=17&type=section&id=Pre-tax%20Pre-provision%20Net%20Revenue) This section calculates pre-tax pre-provision net revenue (PTPP), a non-GAAP measure, by summing net interest income and noninterest income and subtracting noninterest expense Pre-tax Pre-provision Net Revenue (in thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Jun 30, 2024 | Jun 30, 2025 (Year Ended) | Jun 30, 2024 (Year Ended) | | :-------------------------- | :----------- | :----------- | :----------- | :------------------------ | :------------------------ | | Net interest income | $49,982 | $47,439 | $36,347 | $97,421 | $71,078 | | Noninterest income | $10,249 | $10,136 | $21,554 | $20,385 | $31,304 | | Noninterest expense | $(35,767) | $(36,293) | $(35,761) | $(72,060) | $(71,326) |\ | Pre-tax Pre-provision Net Revenue | $24,464 | $21,282 | $22,140 | $45,746 | $31,056 |

Core Viewpoint - MidWestOne Financial Group, Inc. reported strong performance in Q2 2025, driven by loan growth and improved net interest margins, despite challenges from a specific commercial real estate credit issue [3][5][8]. Financial Performance - Total revenue for Q2 2025 was $60.2 million, a 5% increase from Q1 2025 and a 4% increase from Q2 2024 [10]. - Net interest income reached $50.0 million, up 5% from Q1 2025 and 38% from Q2 2024 [10][11]. - Noninterest income was $10.2 million, a slight increase of 1% from Q1 2025 but a significant decrease of 52% from Q2 2024 [10][17]. - Net income for Q2 2025 was $10.0 million, or $0.48 per diluted share, down from $15.1 million in Q1 2025 [8][10]. Asset Quality - The allowance for credit losses increased to $65.8 million, with a ratio of 1.50%, up from 1.25% in Q1 2025, primarily due to a single commercial real estate credit [5][35]. - Nonperforming loans increased to $37.2 million, with a nonperforming loans ratio of 0.85% [31][34]. - Criticized loans ratio improved to 5.15%, down from 5.47% in Q1 2025 [8][31]. Balance Sheet - Total assets decreased to $6.16 billion as of June 30, 2025, from $6.25 billion at March 31, 2025 [22]. - Loans held for investment increased to $4.38 billion, a 1.8% increase from Q1 2025 [23]. - Total deposits were $5.39 billion, down 1.8% from Q1 2025 [25]. Capital and Dividends - Total shareholders' equity increased to $589.0 million, up from $579.6 million at March 31, 2025 [28]. - The company declared a cash dividend of $0.2425 per common share, payable on September 16, 2025 [29]. Strategic Initiatives - The company continues to focus on strategic initiatives, including investments in customer-facing talent and internal efficiencies [3][4]. - A notice of redemption for $65.0 million of subordinated notes is planned, with funding expected from a new senior term note [27].

Core Viewpoint - MidWestOne Financial Group, Inc. is set to release its second quarter 2025 financial results on July 24, 2025, followed by a conference call on July 25, 2025 to discuss these results [1]. Financial Results Announcement - The financial results for the second quarter of 2025 will be announced after market closes on July 24, 2025 [1]. - A conference call to discuss the financial results will take place at 11:00 a.m. Central Time on July 25, 2025 [1]. Participation Details - Investors and analysts can pre-register for the conference call via a provided link [2]. - On the day of the call, participants can dial in approximately 15 minutes before the start time using specific access codes [2]. Replay Information - A replay of the conference call will be available within four hours after the call concludes and can be accessed online or via a dedicated phone number [3]. - The replay will remain available until October 23, 2025 [3]. Company Overview - MidWestOne Financial Group, Inc. is a financial holding company based in Iowa City, Iowa, and is the parent company of MidWestOne Bank [4]. - The bank operates in Iowa, Minnesota, Wisconsin, and Colorado, providing electronic financial services through its website [4]. - The company is listed on the Nasdaq Global Select Market under the ticker symbol "MOFG" [4].

Cash Flow - Net cash inflows from operating activities were $8.7 million in Q1 2025, down from $9.6 million in Q1 2024[216] - Net cash inflows from investing activities were $35.5 million in Q1 2025, compared to net cash outflows of $38.3 million in Q1 2024[216] - Net cash inflows from financing activities were $1.9 million in Q1 2025, significantly lower than $44.8 million in Q1 2024[216] Deposits and Borrowing - As of March 31, 2025, the Bank had brokered deposits of $200.0 million, unchanged from December 31, 2024[221] - The Bank maintains unsecured federal funds lines totaling $110.0 million, with no amounts outstanding as of March 31, 2025[218] - The Company had additional borrowing capacity of $323.0 million through the Federal Reserve Bank Discount Window as of March 31, 2025[219] Investment and Liquidity - The Bank had investment securities with a market value of approximately $346.9 million pledged for liquidity purposes as of March 31, 2025[219] Interest Rate Sensitivity - The anticipated effect on net interest income shows a dollar change of $(15,324) thousand for a 200 bps decrease in rates as of March 31, 2025[229] - As of March 31, 2025, 42.7% of the Company's earning asset balances are expected to reprice in the next twelve months[229] Credit Limits - The current credit limit established by the Federal Home Loan Bank is equal to 45% of the Bank's total assets[220]