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 ...

MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q3 2023 Earnings Call Transcript October 27, 2023 12:00 PM ET Company Participants Barry Ray - Chief Financial Officer Charles Reeves - Chief Executive Officer Len Devaisher - President and Chief Operating Officer Gary Sims - Chief Credit Officer Conference Call Participants Terence McEvoy - Stephens Inc Damon DelMonte - KBW Brian Martin - Janney Montgomery Scott Operator Good morning, ladies and gentlemen, and welcome to the MidWestOne Financial Group Third Qu ...

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, 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 incorporation ...

MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q2 2023 Results Conference Call August 1, 2023 12:00 PM ET Company Participants Charles Reeves - Chief Executive Officer Barry Ray - Chief Financial Officer Len Devaisher - President and Chief Operating Officer Gary Sims - Chief Credit Officer Conference Call Participants Brendan Nosal - Piper Sandler Benjamin Gerlinger - Hovde Group Terence McEvoy - Stephens Inc Damon DelMonte - Keefe, Bruyette, & Woods Brian Martin - Janney Montgomery Scott Operator Good mor ...

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 March 31, 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 incorporation ...

PART I [Business](index=6&type=section&id=Item%201.%20Business) MidWestOne Financial Group, Inc is a bank holding company providing commercial and personal banking services across several US states Financial Snapshot as of December 31, 2022 | Metric | Value (USD) | | :--- | :--- | | Total Assets | $6.58 billion | | Total Loans, net | $3.84 billion | | Total Deposits | $5.47 billion | | Shareholders' Equity | $492.8 million | - On June 9, 2022, the Company completed the acquisition of Iowa First Bancshares Corp (IOFB) for cash consideration of **$46.7 million**, merging IOFB's subsidiary banks into MidWestOne Bank[20](index=20&type=chunk) Loan Portfolio Composition (December 31, 2022) | Loan Category | Percentage of Total Portfolio | | :--- | :--- | | Commercial Real Estate | 51.6% | | Commercial and Industrial | 27.5% | | Residential Real Estate | 15.9% | | Agricultural Loans | 3.0% | | Consumer Lending | 2.0% | - As of December 31, 2022, the company employed **811 full and part-time employees** across its geographical regions[40](index=40&type=chunk) - The company and its bank subsidiary are extensively regulated by federal and state agencies, including the Iowa Division of Banking, the Federal Reserve, the FDIC, and the CFPB, which affects business operations, capital levels, and growth[48](index=48&type=chunk)[49](index=49&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant economic, credit, operational, and regulatory risks, including interest rate fluctuations and cybersecurity threats - The company's business is heavily concentrated in the Iowa and Minneapolis/St Paul markets, making its financial condition **highly dependent on the economic health of these specific areas**[107](index=107&type=chunk) - Rising interest rates have negatively impacted the value of the company's securities portfolio, which had **$108.2 million in net unrealized losses** from available-for-sale investment securities at December 31, 2022[115](index=115&type=chunk) - A significant portion of the loan portfolio consists of commercial real estate loans, which comprised approximately **51.6% of the total loan portfolio** as of December 31, 2022, creating a concentration risk tied to real estate market values[127](index=127&type=chunk) - The company faces intense competition from a wide range of financial institutions, including large regional banks, community banks, credit unions, and emerging fintech and digital asset service providers[148](index=148&type=chunk)[149](index=149&type=chunk) - As a financial institution, the company is susceptible to fraudulent activity and cybersecurity incidents and relies on third-party vendors for critical systems, where failures could adversely affect operations[162](index=162&type=chunk)[168](index=168&type=chunk) [Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[186](index=186&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties) The company operates 57 banking offices across five states, with its corporate headquarters located in Iowa City, Iowa Number of Banking Offices by State (as of Dec 31, 2022) | State | Number of Offices | | :--- | :--- | | Iowa | 35 | | Minnesota | 12 | | Wisconsin | 7 | | Florida | 2 | | Colorado | 1 | | **Total** | **57** | [Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal actions that are not expected to materially impact its financial condition - The Company is party to various legal actions in the normal course of business but believes none are expected to have a material adverse effect on its consolidated financial condition[188](index=188&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[189](index=189&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on Nasdaq (MOFG), with an active share repurchase program in place through 2023 - The company's common stock is listed on the Nasdaq Global Select Market under the symbol "MOFG" with **15,675,325 shares outstanding** as of March 1, 2023[192](index=192&type=chunk) - A share repurchase program authorized for up to **$15.0 million** through December 31, 2023 had **$3.0 million** remaining available as of December 31, 2022[193](index=193&type=chunk) [Selected Financial Data](index=33&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is not applicable to the company - Not applicable[197](index=197&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income decreased in 2022 due to higher credit loss and noninterest expenses, despite growth in assets and net interest income Key Financial Results Comparison (2022 vs 2021) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Net Income | $60.8 million | $69.5 million | | Diluted EPS | $3.87 | $4.37 | | Total Assets | $6.58 billion | $6.03 billion | | Gross Loans Held for Investment | $3.85 billion | $3.25 billion | | Total Deposits | $5.47 billion | $5.11 billion | - Net interest income **increased by $10.1 million** to $166.4 million in 2022, driven by higher interest income from investments and loans[207](index=207&type=chunk)[238](index=238&type=chunk) - The company recorded a **credit loss expense of $4.5 million** in 2022, a significant shift from a credit loss benefit of $7.3 million in 2021, primarily due to loan growth[207](index=207&type=chunk)[240](index=240&type=chunk) - Noninterest income **rose by $5.1 million** to $47.5 million in 2022, largely due to a **$3.8 million bargain purchase gain** from the IOFB acquisition[207](index=207&type=chunk)[243](index=243&type=chunk) - Noninterest expense **increased by $16.2 million** to $132.8 million in 2022, driven by costs associated with the IOFB acquisition and higher operating expenses[207](index=207&type=chunk)[247](index=247&type=chunk) - Subsequent to year-end 2022, the company executed a balance sheet repositioning, selling approximately **$231 million in securities** for an estimated pre-tax loss of **$13.2 million**[257](index=257&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate and liquidity risk, managed through diverse funding sources and sensitivity analysis - The company's most significant market risk is **interest rate risk**, which affects earnings and capital, alongside prevalent liquidity risk[308](index=308&type=chunk)[309](index=309&type=chunk) - Key liquidity sources include **$155.0 million** in unsecured federal funds lines and **$405.1 million** in available FHLB advances as of December 31, 2022[313](index=313&type=chunk)[314](index=314&type=chunk)[315](index=315&type=chunk) Net Interest Income Sensitivity Analysis (as of Dec 31, 2022) | Immediate Change in Rates | Dollar Change (in thousands) | Percent Change | | :--- | :--- | :--- | | +200 bps | $(13,921) | (8.7)% | | +100 bps | $(6,738) | (4.2)% | | -100 bps | $5,637 | 3.5% | | -200 bps | $8,398 | 5.2% | [Financial Statements and Supplementary Data](index=60&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements, notes, and the independent auditor's unqualified opinion - The independent registered public accounting firm, RSM US LLP, issued an **unqualified opinion** on the Company's consolidated financial statements for the period ended December 31, 2022[331](index=331&type=chunk) - The auditor identified the qualitative factors applied to the **allowance for credit losses as a critical audit matter** due to the highly subjective nature of management's inputs[337](index=337&type=chunk) Consolidated Balance Sheet Summary | (in thousands) | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$6,577,876** | **$6,025,128** | | Total Loans, net | $3,791,324 | $3,196,312 | | Total Securities | $2,282,968 | $2,288,110 | | **Total Liabilities** | **$6,085,083** | **$5,497,653** | | Total Deposits | $5,468,942 | $5,114,519 | | **Total Shareholders' Equity** | **$492,793** | **$527,475** | Consolidated Income Statement Summary | (in thousands) | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | Net Interest Income | $166,358 | $156,281 | $152,964 | | Credit Loss Expense (Benefit) | $4,492 | $(7,336) | $28,369 | | Noninterest Income | $47,519 | $42,453 | $38,620 | | Noninterest Expense | $132,788 | $116,592 | $149,893 | | **Net Income** | **$60,835** | **$69,486** | **$6,623** | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=122&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants - None[634](index=634&type=chunk) [Controls and Procedures](index=122&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2022 - Management concluded that the Company's **disclosure controls and procedures were effective** as of December 31, 2022[636](index=636&type=chunk) - Management asserted that the Company maintained **effective internal control over financial reporting** as of December 31, 2022, based on the COSO framework (2013)[640](index=640&type=chunk) - The assessment of internal control over financial reporting **excluded Iowa First Bancshares Corporation**, which was acquired on June 9, 2022[639](index=639&type=chunk) [Other Information](index=125&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[652](index=652&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=125&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - Not Applicable[653](index=653&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=125&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Required information is incorporated by reference from the company's 2023 Definitive Proxy Statement - The information required by this item will be included in the Company's Definitive Proxy Statement for the 2023 Annual Meeting of Shareholders and is incorporated by reference[655](index=655&type=chunk) [Executive Compensation](index=125&type=section&id=Item%2011.%20Executive%20Compensation) Required information is incorporated by reference from the company's 2023 Definitive Proxy Statement - The information required by this item will be included in the Company's Definitive Proxy Statement for the 2023 Annual Meeting of Shareholders and is incorporated by reference[656](index=656&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=125&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Required information is incorporated by reference from the company's 2023 Definitive Proxy Statement - The information required by this item will be included in the Company's Definitive Proxy Statement for the 2023 Annual Meeting of Shareholders and is incorporated by reference[657](index=657&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=125&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Required information is incorporated by reference from the company's 2023 Definitive Proxy Statement - The information required by this item will be included in the Company's Definitive Proxy Statement for the 2023 Annual Meeting of Shareholders and is incorporated by reference[658](index=658&type=chunk) [Principal Accountant Fees and Services](index=125&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Required information is incorporated by reference from the company's 2023 Definitive Proxy Statement - The information required by this item will be included in the Company's Definitive Proxy Statement for the 2023 Annual Meeting of Shareholders and is incorporated by reference[659](index=659&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=125&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed as part of the Form 10-K report - This section lists all financial statements, schedules, and exhibits filed with the report, including certifications from the Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer[661](index=661&type=chunk)[662](index=662&type=chunk)[664](index=664&type=chunk) [Form 10-K Summary](index=130&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary for this item - None[666](index=666&type=chunk)

Financial Data and Key Metrics Changes - Net interest income decreased by $2.1 million in Q4 to $43.6 million compared to the previous quarter, primarily due to higher funding costs and increased high-cost borrowings, partially offset by higher interest-earning asset levels and yields [2] - Net interest margin declined by 15 basis points to 2.93% in Q4 from 3.08% in the previous quarter [2] - Total shareholders' equity rose by $20.6 million to $492.8 million, driven by net income of $16 million and a favorable change in AOCI of $7.6 million, partially offset by cash dividends of $3.7 million [21] Business Line Data and Key Metrics Changes - Commercial loans increased by $82.5 million or 11.2% annualized from the previous quarter, with new loans at an average coupon of 6.06% [20] - Loan growth exceeded 10% annualized for the third consecutive quarter, driven by talent acquisition and relationship banking, primarily in metro markets like Twin Cities and Denver [13][24] - Nonperforming assets ratio decreased by 16 basis points to 0.24%, with the allowance coverage ratio at 1.28% [14] Market Data and Key Metrics Changes - Deposits were down slightly from the previous quarter but up 6.9% to $5.5 billion compared to year-end 2021, amid increased competition for deposits [34] - The cost of interest-bearing liabilities increased by 44 basis points to 1.08%, influenced by rising interest-bearing deposits and borrowing costs [20] Company Strategy and Development Direction - The company aims to actively manage its balance sheet and review business lines and geographies for profitable growth opportunities [17] - A strategic plan is being developed to enhance operations and growth engines, with more details expected in the first quarter 2023 earnings call [16] - The company is focused on becoming a top-performing bank, leveraging its strong foundation and diverse business lines [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's ability to navigate uncertain economic conditions, having remedied legacy credit issues [14] - There is an expectation of continued deposit pricing pressures, with a deposit beta of 25% noted in Q4 [40] - The outlook for mortgage banking remains challenging due to low housing inventory and high rates, with no significant momentum expected in 2023 [69] Other Important Information - The wealth business has seen slower revenue growth but is expected to gain momentum, with $180 million of new AUM brought on in 2022 [100] - The company plans to open a new wealth and commercial office in Cedar Rapids within the next 90 days [100] Q&A Session Summary Question: How does the company plan to fund loan growth? - The company indicated that securities cash flows could fund mid-single-digit loan growth, with wholesale funding sources like brokered deposits considered if growth exceeds that target [39] Question: What is the current state of deposit pricing pressures? - Management noted that they are currently experiencing significant deposit pricing pressures, with a cycle-to-date deposit beta of 15% and an increase to 25% in Q4 [40][41] Question: How far along is the company in resolving legacy loan issues? - The company has made significant progress in resolving legacy credit issues, reducing the nonperforming asset ratio to 24 basis points [47] Question: What is the outlook for the margin? - Management expects downward pressure on the margin in the near term, with potential stabilization in the latter half of the year [85] Question: What is the company's exposure to the office space? - The company has 4.5% of its portfolio in office space, which is a decrease from the previous year [81]

Forward-Looking Statements & Non-GAAP Measures Cautionary Note Regarding Forward-Looking Statements This investor presentation contains certain "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are "forward-looking" and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors ...

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, 2022 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 2022 Earnings Conference Call October 28, 2022 12:00 PM ET Company Participants Len Devaisher ??? Interim Chief Executive Officer Kevin Monson ??? Chairman Barry Ray ??? Senior Executive Vice President and Chief Financial Officer Jim Cantrell ??? Senior Executive Vice President, Chief Investment Officer and Treasurer Gary Sims ??? Senior Vice President and Chief Credit Officer Conference Call Participants Brendan Nosal ??? Piper Sandler & Co. Jeff Rulis ??? ...