Financial Data and Key Metrics Changes - The company reported a tangible common equity ratio near 8%, consistent with its long-term target of 8% to 8.5% [7] - Loan totals grew by 2.2% in the linked quarter, excluding PPP loans [8] - The net interest margin remains a challenge, with expectations for continued pressure in the current rate environment [13] Business Line Data and Key Metrics Changes - The Home Mortgage Center showed strong performance, although revenue slightly declined due to narrower margins amid increased competition [15] - Wealth management services are performing well, with significant growth in investment services and the addition of new representatives [17][18] - Card revenue has shown positive trends, indicating unexpected momentum in this area [19] Market Data and Key Metrics Changes - The company is experiencing brutal competition for good loans, with rates quoted in the low 2% range for longer durations [10] - There is a notable decline in line usage on credit lines, currently in the low 30% range compared to the mid-40s typically seen at this time of year [9] Company Strategy and Development Direction - The company is focusing on stock buybacks as a compelling use of capital, while remaining open to M&A opportunities that would benefit shareholders [32] - The management emphasizes the need for continued loan growth and effective management of the net interest margin as key challenges moving forward [23] Management's Comments on Operating Environment and Future Outlook - Management noted a stable to improving asset quality, with minimal charge-offs and a positive outlook for the agricultural portfolio despite some regional challenges [21][22] - The loan pipeline for the third quarter is described as reasonable, with expectations for measured growth rather than aggressive targets [11][34] Other Important Information - The company proactively sold long-duration bonds to increase asset sensitivity and manage interest rate risk [14] - Noninterest expenses are considered stable, with some one-time adjustments noted [20] Q&A Session Summary Question: Liquidity flows and deposit growth - Management indicated that liquidity outflows have slowed down, with deposit growth not negative but considerably reduced [26][28] Question: Margin defense and loan production - Management expressed that a steeper yield curve would help defend margins, and they are optimistic about replacing PPP loans with regular loan production [30] Question: M&A opportunities and capital allocation - The company is actively considering M&A opportunities but prioritizes stock buybacks as a strong use of capital at current levels [32] Question: Non-PPP commercial loan growth - Management highlighted diverse loan growth across various markets and sectors, with an increase in capital deployment activity among customers [41][44] Question: Mortgage business revenue expectations - Management expects mortgage revenue to normalize, with a potential run rate of around $2 million per quarter [46] Question: Credit trends and reserve adequacy - Management indicated that positive credit trends may lead to further reserve releases in the future [48] Question: Expense run rate expectations - Management is comfortable with the current expense run rate in the upper $28 million range [49]

Financial Performance - Net income for the three months ended March 31, 2021, was $21,648 thousand, compared to a net loss of $1,975 thousand for the same period in 2020, indicating a significant turnaround[14]. - Consolidated net income for Q1 2021 was $21.6 million, an increase of $23.6 million from a net loss of $2.0 million in Q1 2020[163]. - Basic and diluted earnings per share for Q1 2021 were $1.35 compared to a loss of $0.12 per share in Q1 2020[163]. - Annualized return on average shareholders' equity was 17.01% for Q1 2021, compared to (1.54)% in Q1 2020[165]. - The effective income tax rate for Q1 2021 was 21.2%, compared to (52.7)% in Q1 2020, with an expected full-year rate of 20-22%[181]. Asset and Deposit Growth - Total assets increased to $5,737,312 thousand as of March 31, 2021, up from $5,556,648 thousand at December 31, 2020, representing a growth of 3.25%[11]. - Total deposits rose to $4,794,563 thousand as of March 31, 2021, an increase of 5.45% from $4,547,049 thousand at December 31, 2020[11]. - Total deposits increased by $247,469,000 in Q1 2021, compared to an increase of $131,094,000 in Q1 2020, reflecting a growth of approximately 88% year-over-year[21]. - As of March 31, 2021, total long-term debt amounted to $44.8 million, with a weighted average interest rate of 1.99%[109]. Income and Expense Analysis - Net interest income after credit loss expense was $43,351 thousand for Q1 2021, compared to $15,673 thousand in Q1 2020, reflecting a substantial improvement[14]. - Noninterest income for the three months ended March 31, 2021, was $11,824 thousand, up from $10,155 thousand in the same period of 2020, showing a growth of 16.5%[14]. - Total noninterest expense decreased to $27,700 thousand in Q1 2021 from $30,001 thousand in Q1 2020, a reduction of 7.67%[14]. - Noninterest expense decreased by $2.3 million, or 7.7%, primarily due to reductions in 'Other' noninterest expense, legal and professional expenses, and amortization of intangibles[163]. Credit Quality and Losses - The allowance for credit losses decreased to $50,650 thousand as of March 31, 2021, down from $55,500 thousand at December 31, 2020, indicating improved credit quality[11]. - The company reported a decrease in credit loss expense of $4,734,000 in Q1 2021, compared to an expense of $21,733,000 in Q1 2020, indicating improved asset quality[21]. - The total allowance for credit losses (ACL) as of March 31, 2021, was $50.7 million, representing 1.51% of loans held for investment, a decrease from 1.59% ($55.5 million) as of December 31, 2020[198]. - The company recorded a credit loss benefit of $4.5 million for the three months ended March 31, 2021, compared to a credit loss expense of $19.3 million for the same period in 2020[199]. Loan Portfolio and Modifications - The total loans held for investment, net of unearned income, was $3,358.2 million as of March 31, 2021, a decrease from $3,482.2 million at December 31, 2020[49]. - The Company modified 43 loans totaling $16.7 million due to COVID-19, down from 76 loans totaling $44.1 million as of December 31, 2020[156]. - The total amount of commercial and industrial loans in 2021 was $993,770,000, a decrease from $1,175,644,000 in 2020, reflecting a decline of approximately 15.4%[62]. - The total amount of agricultural loans in 2021 was $117,099,000, compared to $51,726,000 in 2020, indicating an increase of approximately 126.5%[62]. Economic Outlook - The economic forecast predicts a slight increase in Midwest unemployment in the next quarter, followed by decreases in the subsequent three quarters, suggesting a cautious outlook[68]. - The national unemployment rate decreased from 6.7% in December 2020 to 6.0% in March 2021, but remains elevated compared to pre-pandemic levels of 3.5%[146]. - The Company anticipates a decline in the volume of PPP loan originations after March 31, 2021 compared to the first quarter of 2021[157]. - The Federal Reserve's monetary policy actions significantly increased the country's money supply, influencing overall credit distribution and interest rates[161]. Shareholder Returns - The company paid dividends of $0.2250 per share in Q1 2021, slightly up from $0.2200 per share in Q1 2020[14]. - The Company declared a cash dividend of $0.2250 per share on April 29, 2021, payable on June 15, 2021[134]. - The Company repurchased 1,890 shares of common stock for a total cost of $55.5 thousand, leaving $2.6 million available under the share repurchase program[135].

Financial Data and Key Metrics Changes - The company reported its best bottom line quarter in history, indicating significant financial performance improvement [6] - The core margin remained stable at 3.02%, slightly up from 3.01% in the prior quarter, highlighting resilience in net interest margin despite competitive pressures [17] - The allowance for credit losses stood at 1.63%, which is deemed sufficient to withstand potential challenges ahead [25] Business Line Data and Key Metrics Changes - Non-interest income was solid, driven by strong performance in the mortgage center and wealth management, with wealth management revenues up 12.6% linked quarter and 11.8% year-over-year [20] - Mortgage production saw a decline from $128 million in Q4 2020 to $94 million in Q1 2021, although a good pipeline remains for future quarters [19] - The investment portfolio exceeded $2 billion, reflecting a strategic focus on high cash flow, shorter-term investments and high-quality municipal bonds [15][16] Market Data and Key Metrics Changes - Loan growth was down approximately 4% linked quarter, with significant price competition observed in the market, particularly for strong credits [10][11] - The agricultural portfolio is 7.5% of total loans, with improved conditions for agricultural loans, particularly in corn and soybean prices [27][25] - The company noted a significant increase in jumbo deposits, which rose by approximately $90 million, indicating a shift in deposit composition [61] Company Strategy and Development Direction - The company aims to focus on technology and digital initiatives while managing asset quality and loan growth [30] - There is an ongoing emphasis on maintaining a strong capital position, with all regulatory capital ratios improving during the quarter [29] - The company is actively engaging in share repurchase programs when deemed beneficial for shareholders [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding credit quality stabilization and the potential for continued improvement in asset quality metrics [90] - The outlook for loan growth remains cautious, with expectations for a stable margin environment unless there is significant deposit growth or a steepening yield curve [49][50] - Management acknowledged the competitive landscape, particularly in agricultural lending, where competition from farm credit services is significant [28] Other Important Information - The company has seen a prolonged retention of deposits on its balance sheet, which has exceeded initial forecasts [30] - There is potential for loan swap revenue in the upcoming quarters, contingent on loan closings [21] Q&A Session Summary Question: Thoughts on reserve and provisioning needs - Management indicated that the reserve position is adequate given improved economic conditions and credit quality stabilization, with expectations for continued releases [37][39] Question: Loan demand across geographic areas - Management noted pockets of strength in the Twin Cities, Colorado, and Iowa City, while overall loan demand appeared soft [42][43] Question: Margin expectations and loan growth - Management emphasized that loan growth is crucial for margin improvement, with a focus on the yield curve's slope [48][49] Question: Sustainability of fee income - Management expects wealth management to continue growing at a rate of 5% to 8%, while mortgage banking remains dependent on economic conditions [52] Question: Deposit growth trends - Management observed a slight slowdown in deposit growth, particularly in non-maturing business deposits, but noted that PPP forgiveness has not yet led to significant deposit outflows [63] Question: Expense flexibility in response to revenue changes - Management highlighted potential expense rationalization, particularly in branch infrastructure, while also emphasizing the need for continued technology investment [65][66] Question: Update on M&A activity - Management reported increased conversations around M&A opportunities but noted that no imminent deals are in place [88] Question: Credit quality trends - Management expressed optimism for continued improvement in criticized and classified loan ratios over the coming quarters [90] Question: Accretable yield outlook - Management indicated that a reasonable assumption for accretable yield is around $1 million per quarter for the near term [76][77] Question: PPP loan origination status - Management reported approximately $152 million in PPP loans originated in round two, with around 200 to 210 loans forgiven from round one [95][96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission file number 001-35968 MIDWESTONE FINANCIAL GROUP, INC. (Exact name of Registrant as specified in its charter) (State or Other Jurisdiction of (I.R.S. ...

SUPPLEMENTAL INFORMATION FOURTH QUARTER 2020 December 31, 2020 Credit Monitoring EIN 2 Credit Monitoring | --- | --- | --- | |-------|----------------------------------------------|-----------------------------------------------------------------------------------------------------------------| | | | | | • | | During the fourth quarter of 2020, credit monitoring procedures included a review of the following loan totals: | | | Enhanced Risk Rating Review $779.6 million | 22% of the loan portfolio. | | | Loan ...

Financial Data and Key Metrics Changes - The company reported a return on assets (ROA) of 1.22% and a return on tangible equity of over 17% for the quarter, with earnings of $1.04 per share [6] - Core net income for 2020 was $38.1 million, down from $43.6 million in 2019, with earnings per share decreasing from $2.93 to $2.37 [19] - The tangible book value increased to $26.69 per share as of December 31, 2020 [18] Business Line Data and Key Metrics Changes - The home mortgage center achieved a record volume of approximately $466 million, significantly aided by the merger with American Trust [12] - Investment services also had a record year, with plans to expand their footprint, particularly in the Twin Cities market [13] - Non-interest income was strong, with expectations for continued growth in mortgage and investment services [81] Market Data and Key Metrics Changes - Strong loan growth was noted in regions such as Denver, Florida, and the Twin Cities, with a positive outlook for rural areas [8] - The agricultural sector showed strong performance, with farmers experiencing their best year since 2013, driven by high corn and soybean prices [17] Company Strategy and Development Direction - The company aims for 4% to 5% loan growth for the calendar year 2021, with a focus on organic growth in the trust department [7][13] - There is an emphasis on enhancing digital platforms and fintech initiatives to improve efficiency and customer service [49] Management's Comments on Operating Environment and Future Outlook - Management expressed a generally positive outlook on credit quality, despite some challenges in the hotel portfolio [16] - The company anticipates a stable net interest margin, with potential for compression depending on liquidity and loan demand [46] Other Important Information - The company experienced significant deposit inflows, making it challenging to predict deposit growth for 2021 [9] - Non-performing assets (NPAs) increased slightly due to a $9.5 million hotel loan placed on non-accrual, but overall asset quality remained stable [15] Q&A Session Summary Question: Discussion on liquidity dynamics and strategy for managing excess funds - Management indicated a strategy to invest excess liquidity into short-term cash-flowing securities rather than leaving it in cash, which would yield minimal returns [25] Question: Expectations for expense run-rate in the new year - The anticipated expense run-rate is expected to return to the $29 million to $30 million per quarter range [26] Question: Outlook on agricultural credits compared to non-ag credits - Management noted a more positive outlook on agricultural credits due to strong prices and government assistance, while acknowledging challenges in other sectors [34] Question: Expectations for charge-offs and provisions in 2021 - The company expects charge-offs to be around 53 basis points for the year, with provisions potentially being lower due to improving economic conditions [85][87] Question: Contribution of fee income in 2021 - Management expects strong contributions from mortgage and investment services, with a potential decline in service charges [81]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35968 MIDWESTONE FINANCIAL GROUP, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorpora ...

MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q3 2020 Earnings Conference Call October 30, 2020 12:00 PM ET Company Participants Charlie Funk ??? Chief Executive Officer Barry Ray ??? Chief Financial Officer Gary Sims ??? Chief Credit Officer Jim Cantrell ??? Treasurer and Chief Investment Officer Conference Call Participants Brendan Nosal ??? Piper Sandler Jeff Rulis ??? D.A. Davidson Terence McEvoy ??? Stephens Damon DelMonte ??? KBW Brian Martin ??? Janney Montgomery Operator Good morning, and welcome t ...

SUPPLEMENTAL INFORMATION THIRD QUARTER 2020 September 30, 2020 Credit Monitoring EIN 2 Credit Monitoring | --- | --- | --- | |-------|--------------------------------------------|----------------------------------------------------------------------------------------------------------------| | | | | | • | | During the third quarter of 2020, credit monitoring procedures included a review of the following loan totals: | | | Enhanced Risk Rating Review $801 million | 23% of the loan portfolio. | | | Loan Strat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35968 MIDWESTONE FINANCIAL GROUP, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation ...