[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]

For the quarter ended June 2025, MidWestOne (MOFG) reported revenue of $60.23 million, up 4% over the same period last year. EPS came in at $0.49, compared to $0.45 in the year-ago quarter.The reported revenue represents a surprise of +1.48% over the Zacks Consensus Estimate of $59.35 million. With the consensus EPS estimate being $0.77, the EPS surprise was -36.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

MidWestOne (MOFG) came out with quarterly earnings of $0.49 per share, missing the Zacks Consensus Estimate of $0.77 per share. This compares to earnings of $0.45 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -36.36%. A quarter ago, it was expected that this holding company for MidWestOne Bank would post earnings of $0.73 per share when it actually produced earnings of $0.73, delivering no surprise.Over the last four quarter ...

FOR IMMEDIATE RELEASE July 24, 2025 Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "Due to the expertise of our MidWestOne team, we continued to execute well on our 2025 strategic initiatives. Strong loan growth and back book loan re-pricing led to tax equivalent net interest margin expansion of 13 basis points, to 3.57% , and to 5% linked quarter net interest income growth. Investments in our relationship fee income businesses continue to bear fruit with wealth management, Small ...

IOWA CITY, Iowa, July 24, 2025 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) ("we," "our," or the "Company") today reported results for the second quarter of 2025. Second Quarter 2025 Summary1 Pre-tax, pre-provision net revenue increased 15% to $24.5 million2. Net interest margin (tax equivalent) was 3.57%2; core net interest margin expanded 13 basis points ("bps") to 3.49%.2Noninterest income was $10.2 million.Noninterest expense was $35.8 million.Efficiency ratio improved to 56.20%2 ...

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]

Financial Performance Highlights - Total assets reached $6.25 billion, a slight increase of 0.3% compared to the previous quarter (4Q24), but a decrease of 7.3% compared to the first quarter of the previous year (1Q24) [6] - Total loans held for investment, net, amounted to $4.30 billion, decreasing by 0.3% from 4Q24 and 2.5% from 1Q24 [6] - Total deposits were $5.49 billion, up 0.2% from 4Q24 but down 1.7% from 1Q24 [6] - Net interest margin, tax equivalent, was 3.44%, a 1 basis point increase from 4Q24 and a 111 basis point increase from 1Q24 [6] - Diluted EPS was $0.73, down 6% from 4Q24 but up 248% from 1Q24 [6] - Adjusted EPS was $0.73, down 5% from 4Q24 but up 152% from 1Q24 [6] Credit Risk Profile - Nonperforming loans ratio was 0.41%, a decrease of 10 basis points from 4Q24 and 25 basis points from 1Q24 [6] - Net charge-off ratio was 0.29%, an increase of 23 basis points from 4Q24 and 27 basis points from 1Q24 [6] - Allowance for credit losses ratio was 1.25%, a decrease of 3 basis points from 4Q24 and 2 basis points from 1Q24 [6] Loan Portfolio - The loan portfolio is diversified, with Commercial Real Estate (CRE-Other) constituting 33%, C&I 27%, and Residential Real Estate 15% of the $4.30 billion portfolio [10] - The loan portfolio yield is 5.71% [10] - Commercial loan growth in targeted regions shows Iowa Metro with a 4% increase (+$44 million), Twin Cities with a 5% increase (+$52 million), and Denver with a 14% increase (+$84 million) [12] Wealth Management - Wealth Management Assets Under Administration reached $14.2 billion in 2024 [22] - Investment Services and Private Wealth Revenue reached $3.15 million in 2024 [25]