IOWA CITY, Iowa, June 03, 2024 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (NASDAQ: MOFG), parent company of MidWestOne Bank, a pre-eminent relationship-driven community bank, is pleased to announce the hiring of three new executive leaders: Paul Ho-Sing-Loy, Executive Vice President and Chief Information Officer; Steve Heimermann, Executive Vice President and Head of Wealth Management; and Elda Macias, Senior Vice President and Chief Marketing Officer. MidWestOne Financial Group has introduced a n ...

[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 MidWestOne Financial Group's unaudited consolidated financial statements for Q1 2024, including balance sheets, income, equity, and cash flows, highlighting the impact of the DNVB acquisition [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased to $6.75 billion from $6.43 billion at year-end 2023, primarily driven by growth in loans and goodwill from the DNVB acquisition, with total deposits growing to $5.59 billion and shareholders' equity to $528.0 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$6,748,015** | **$6,427,540** | | Gross loans held for investment | $4,433,258 | $4,138,352 | | Total securities | $1,862,169 | $1,870,324 | | Goodwill | $71,118 | $62,477 | | **Total Liabilities** | **$6,219,975** | **$5,903,162** | | Total deposits | $5,585,236 | $5,395,673 | | Short-term borrowings | $422,988 | $300,264 | | **Total Shareholders' Equity** | **$528,040** | **$524,378** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For Q1 2024, net income significantly improved to $3.3 million ($0.21 per diluted share) from $1.4 million ($0.09 per diluted share) in Q1 2023, primarily due to the absence of prior year's investment securities losses Q1 2024 vs Q1 2023 Income Statement (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Interest Income | $34,731 | $40,076 | | Credit Loss Expense | $4,689 | $933 | | Noninterest Income (Loss) | $9,750 | $(4,046) | | Investment securities gains (losses), net | $36 | $(13,170) | | Total Noninterest Expense | $35,565 | $33,319 | | **Net Income** | **$3,269** | **$1,397** | | **Earnings - diluted (per share)** | **$0.21** | **$0.09** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q1 2024, operating activities provided $9.6 million, investing activities used $38.3 million, and financing activities provided $44.8 million, resulting in a net increase of $16.0 million in cash and cash equivalents Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,588 | $17,599 | | Net cash (used in) provided by investing activities | $(38,337) | $132,544 | | Net cash provided by (used in) financing activities | $44,784 | $(167,360) | | **Net change in cash and cash equivalents** | **$16,035** | **$(17,217)** | - The company paid **$20.0 million** in cash for a business acquisition during the first quarter of 2024[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial statement items, including the DNVB acquisition for $32.6 million, which boosted assets and goodwill, and the loan portfolio's growth to $4.41 billion with increased ACL and deposits - On January 31, 2024, the Company acquired DNVB and its subsidiary, Bank of Denver, for **$32.6 million** in cash, adding identifiable net assets of **$24.0 million** and resulting in **$8.6 million** of goodwill[28](index=28&type=chunk)[37](index=37&type=chunk)[40](index=40&type=chunk) - The Allowance for Credit Losses (ACL) increased from **$51.5 million** at year-end 2023 to **$55.9 million** at March 31, 2024, including **$3.1 million** of day-one credit loss expense for acquired DNVB loans[76](index=76&type=chunk)[79](index=79&type=chunk) - The company's loan portfolio is concentrated in real estate, with commercial real estate loans (excluding farmland) comprising approximately **66%** of total loans[129](index=129&type=chunk) - As of March 31, 2024, the company and its bank subsidiary met all regulatory capital requirements and were considered **'well capitalized'**[122](index=122&type=chunk)[197](index=197&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) Management discusses Q1 2024 financial results, noting a net income increase to $3.3 million due to the absence of prior year's securities losses, a decline in net interest income, and growth in loans and deposits driven by the DNVB acquisition - The company completed the acquisition of DNVB on January 31, 2024, for **$32.6 million** in cash and announced a definitive agreement to sell its Florida operations, expected to close in June 2024[148](index=148&type=chunk)[149](index=149&type=chunk) Q1 2024 vs Q1 2023 Performance Summary (in thousands) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Interest Income | $34,731 | $40,076 | | Credit Loss Expense | $4,689 | $933 | | Noninterest Income (Loss) | $9,750 | $(4,046) | | Net Income | $3,269 | $1,397 | | Diluted EPS | $0.21 | $0.09 | - Tax equivalent net interest margin declined to **2.33%** in Q1 2024 from **2.75%** in Q1 2023, as the cost of interest-bearing liabilities rose by **116 basis points**, outpacing the **56 basis point** increase in the yield on interest-earning assets[166](index=166&type=chunk) - Noninterest expense increased by **$2.2 million** (**6.7%**) year-over-year, primarily due to higher compensation and benefits from the DNVB acquisition and annual adjustments, as well as increased equipment costs[170](index=170&type=chunk) [Financial Condition Analysis](index=50&type=section&id=Financial%20Condition%20Analysis) Total assets grew by $320.5 million (5.0%) to $6.75 billion, driven by a $287.7 million (7.0%) increase in loans and a $189.6 million (3.5%) rise in deposits, primarily from the DNVB acquisition, while nonperforming assets remained stable Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2024 | % of Total | December 31, 2023 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Commercial and industrial | $1,105,718 | 25.0% | $1,075,003 | 26.0% | | Commercial real estate | $2,437,829 | 55.3% | $2,225,310 | 54.0% | | Residential real estate | $677,409 | 15.3% | $640,437 | 15.5% | | Agricultural | $113,029 | 2.6% | $118,414 | 2.9% | | Consumer | $80,661 | 1.8% | $67,783 | 1.6% | | **Total Loans** | **$4,414,646** | **100.0%** | **$4,126,947** | **100.0%** | - The Allowance for Credit Losses (ACL) was **$55.9 million**, or **1.27%** of total loans, at March 31, 2024, up from **$51.5 million**, or **1.25%** of loans, at December 31, 2023, mainly due to a **$3.1 million** day-one provision for DNVB loans and reserves for organic growth[188](index=188&type=chunk) - Nonperforming loans increased slightly to **$29.3 million** (**0.66%** of total loans) from **$26.4 million** (**0.64%** of total loans) at year-end 2023[179](index=179&type=chunk) - Deposits increased by **$189.6 million**, primarily due to the **$224.2 million** of deposits assumed in the DNVB acquisition, with core deposits representing **87.9%** of total deposits[194](index=194&type=chunk) [Capital Resources and Liquidity](index=57&type=section&id=Capital%20Resources%20and%20Liquidity) The company maintains a strong capital position, exceeding 'well-capitalized' standards with a Tier 1 leverage ratio of 8.16% and total risk-based capital ratio of 11.97%, while managing liquidity through diverse funding sources Key Capital Ratios | Ratio | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Tangible common equity ratio | 6.43% | 6.90% | | Total risk-based capital ratio | 11.97% | 12.53% | | Tier 1 leverage ratio | 8.16% | 8.58% | | Tangible book value per share | $27.14 | $27.90 | - Total shareholders' equity increased by **$3.7 million** to **$528.0 million** as of March 31, 2024, driven by a decrease in accumulated other comprehensive loss[196](index=196&type=chunk) - The company maintains multiple sources of liquidity, including **$155.0 million** in unsecured federal funds lines, and had additional borrowing capacity of **$421.4 million** from the Federal Reserve and **$795.9 million** from the FHLB as of March 31, 2024[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate risk, its primary market risk, and as of March 31, 2024, is positioned to benefit from falling rates, with a 100 basis point rate decrease projected to increase net interest income by $1.3 million Net Interest Income Sensitivity Analysis (as of March 31, 2024) | Immediate Change in Rates | Dollar Change (in thousands) | Percent Change | | :--- | :--- | :--- | | +200 bps | $(4,634) | (3.1)% | | +100 bps | $(2,220) | (1.5)% | | -100 bps | $1,273 | 0.9% | | -200 bps | $2,832 | 1.9% | - The company's main sources of liquidity risk management include Federal Funds Lines (**$155.0 million**), Federal Reserve Bank borrowing capacity (**$421.4 million**), and FHLB advances capacity (**$795.9 million**)[222](index=222&type=chunk)[223](index=223&type=chunk)[224](index=224&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting during the quarter - The CEO, CFO, and CAO concluded that the Company's disclosure controls and procedures were **effective** as of the end of the period covered by this report[237](index=237&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter ended March 31, 2024, that materially affected or are likely to materially affect these controls[239](index=239&type=chunk) [PART II – OTHER INFORMATION](index=64&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal actions, the outcomes of which management believes will not materially adversely affect its consolidated financial condition - The company states that any pending or threatened legal proceedings are ordinary routine litigation incidental to its business and are **not expected to have a material adverse effect** on its financial condition[242](index=242&type=chunk) [Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - **No material changes** have occurred in the risk factors since the filing of the Form 10-K for the year ended December 31, 2023[243](index=243&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, the company did not repurchase shares under its program, but acquired 21,278 shares from employees for tax obligations, with $15.0 million remaining for repurchases through December 31, 2025 - **No shares were repurchased** under the company's publicly announced program in Q1 2024; the program, approved in April 2023, has **$15.0 million** remaining for repurchases through December 31, 2025[244](index=244&type=chunk)[245](index=245&type=chunk) - A total of **21,278 shares** were acquired by the company from employees to cover withholding taxes related to the vesting of restricted stock awards[244](index=244&type=chunk) [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) During Q1 2024, no directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements - **No directors or executive officers adopted or terminated** a Rule 10b5-1 trading plan during the quarter ended March 31, 2024[248](index=248&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $3.3 million or $0.21 per diluted share, with adjusted net income at $7.2 million or $0.46 per diluted share after accounting for merger-related expenses and other costs [47] - Total deposits increased by $189.6 million to $5.59 billion as of March 31, 2024, although excluding deposits from the Bank of Denver acquisition, deposits decreased by $34.7 million [66] - The tax equivalent net interest margin increased by 11 basis points to 2.33%, driven by asset yield increases outpacing funding cost increases [67] Business Line Data and Key Metrics Changes - Wealth Management revenue increased by 10% quarter-over-quarter and 19% year-over-year, reaching $3.5 million [42] - Commercial and industrial loans increased by $30.7 million or 12% annualized from the linked quarter, contributing to overall loan growth of $287.7 million or 7% [9] - Non-interest income increased by $5.9 million, primarily due to the absence of a net loss on security sales that occurred in the previous quarter [48] Market Data and Key Metrics Changes - The company noted stable asset quality metrics, with net charge-offs and delinquency rates remaining low [7] - The Denver market is highlighted as a key growth area, with loans of $673 million and deposits of $429 million post-acquisition, with a goal to reach a $1 billion franchise [60] Company Strategy and Development Direction - The company is focused on expanding its core deposit franchise and enhancing its commercial banking and wealth management businesses [5][61] - Strategic talent acquisition is emphasized, with new hires in various departments to support growth initiatives [5][8] - The company plans to divest its Florida branches in June 2024, which is expected to reduce quarterly expenses by approximately $700,000 starting in July [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding deposit growth and overall business momentum, particularly in the Denver market [4][8] - The company anticipates continued margin expansion even without rate cuts, supported by the current balance sheet position [52][61] - Management highlighted the importance of maintaining expense discipline while investing in growth opportunities [5][11] Other Important Information - The company completed the acquisition of Denver Bankshares, which is expected to enhance its market presence and operational scale [60] - The allowance for credit losses increased to 1.27% of total loans, reflecting both the acquisition and organic loan growth [9] Q&A Session Summary Question: What is the outlook for new client acquisitions in Wealth Management? - Management noted strong momentum in client acquisitions and expects double-digit annual revenue growth in this segment [53] Question: Can you provide insights on loan deposit growth and the impact of hiring relationship managers? - Management indicated that while legacy balances declined, they are optimistic about resuming core deposit growth throughout 2024 [16] Question: What is the expected margin impact from potential rate cuts? - Management expects incremental margin improvement without rate cuts and greater improvement with rate cuts, depending on the pace of those cuts [28] Question: Can you elaborate on the trucking industry credits that were downgraded? - Management clarified that exposure to the trucking industry is limited, with total exposure at $55 million, and noted that some customers experienced cash flow deterioration [70] Question: What are the expectations for commercial real estate maturities and re-pricing opportunities? - Management provided insights on the re-pricing of fixed-rate loans, estimating around $250 million in fixed-rate re-pricing over the next year [90]

For the quarter ended March 2024, MidWestOne (MOFG) reported revenue of $44.48 million, up 23.5% over the same period last year. EPS came in at $0.21, compared to $0.72 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $44.5 million, representing a surprise of -0.04%. The company delivered an EPS surprise of -51.16%, with the consensus EPS estimate being $0.43.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

MidWestOne (MOFG) came out with quarterly earnings of $0.21 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -51.16%. A quarter ago, it was expected that this holding company for MidWestOne Bank would post earnings of $0.47 per share when it actually produced earnings of $0.51, delivering a surprise of 8.51%.Over the last four ...

FOR IMMEDIATE RELEASE April 25, 2024 MIDWESTONE FINANCIAL GROUP, INC. REPORTS FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2024 Iowa City, Iowa - MidWestOne Financial Group, Inc. (Nasdaq: MOFG) ("we", "our", or the "Company") today reported results for the first quarter of 2024. First Quarter 2024 Summary 1 CEO Commentary Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "We are very pleased with the underlying strength of the first quarter as we continue to execute on our strategic in ...

IOWA CITY, Iowa, April 25, 2024 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (NASDAQ:MOFG) ("we", "our", or the "Company") today reported results for the first quarter of 2024. First Quarter 2024 Summary1 Completed acquisition of Denver Bankshares, Inc. ("DNVB"), the related core banking system conversion, and closure of the legacy MidWestOne Denver banking office.Net income of $3.3 million, or $0.21 per diluted common share. Revenue was $44.5 million, comprised of net interest income of $34.7 milli ...

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, 2023 ☐ 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. ...

Call Now: 12:35 MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q4 2023 Earnings Conference Call January 26, 2024, 12:00 PM ET Company Participants Barry Ray - Senior Executive Vice President and Chief Financial Officer Charles Reeves - Chief Executive Officer Len Devaisher - President and Chief Operating Officer Gary Sims - Senior Vice President and Chief Credit Officer Conference Call Participants Terry McEvoy - Stephens Damon DelMonte - KBW Brian Martin - Janney Montgomery Scott Operator Good morning, lad ...

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, 2023 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 ...