MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q2 2020 Earnings Conference Call July 31, 2020 12:00 PM ET Company Participants Charlie Funk - CEO Barry Ray - CFO Gary Sims - CCO Jim Cantrell - Treasurer & CIO Len Devaisher - President & COO Conference Call Participants Brendan Nosal - Piper Sandler Jeff Rulis - D.A. Davidson Terry McEvoy - Stephens Damon Delmonte - KBW Brian Martin - Janney Montgomery Operator Good day and welcome to the MidWestOne Financial Group's Second Quarter 2020 Earnings Conference C ...

COVID-19 RESPONSE AND SUPPLEMENTAL FINANCIAL INFORMATION SECOND QUARTER 2020 June 30, 2020 COVID-19 Response t One™ Mi FINANCIAL GROUP, INC. 2 Providing Support During COVID-19 Pandemic | --- | --- | --- | --- | --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------------------------|-------|-----------------------------------------------------------------------------------------------------------------------------------------|- ...

Financial Performance - Net loss for the three months ended March 31, 2020, was $1,975 thousand, compared to a net income of $7,285 thousand for the same period in 2019, marking a shift from profit to loss[13]. - Credit loss expense surged to $21,733 thousand in Q1 2020, compared to $1,594 thousand in Q1 2019, indicating a significant increase of 1265.5%[13]. - Noninterest expense rose to $30,001 thousand in Q1 2020, compared to $20,617 thousand in Q1 2019, representing an increase of 45.5%[13]. - The company incurred a net loss of $2.0 million for the quarter ended March 31, 2020, a decrease of $9.3 million from a net income of $7.3 million for the same period in 2019[204]. - Credit loss expenses increased by $20.1 million, significantly impacting the company's financial results[204]. - Noninterest expense rose by $9.4 million, or 45.5%, compared to the previous year, while net interest income increased by $11.4 million, or 44.0%[204]. Asset and Liability Management - Total assets increased to $4,763,909 thousand as of March 31, 2020, compared to $4,653,573 thousand as of December 31, 2019, reflecting a growth of 2.37%[11]. - Total deposits rose to $3,859,844 thousand as of March 31, 2020, up from $3,728,655 thousand as of December 31, 2019, an increase of 3.5%[11]. - The allowance for credit losses increased to $51,187 thousand as of March 31, 2020, compared to $29,079 thousand as of March 31, 2019, indicating an increase of 75.9%[11]. - The total loans held for investment, net of unearned income, amounted to $3.43 billion as of March 31, 2020[105]. - The total allowance for credit losses was $51.2 million, an increase from $47.3 million as of December 31, 2019, reflecting a rise of approximately 4.1%[105]. Credit Quality and Risk Management - The company uses a risk rating system to classify loans, including categories such as Special Mention/Watch, Substandard, Doubtful, and Loss[94][95][96][97]. - The company analyzes loans individually to assess credit risk, particularly for non-homogenous loans like agricultural and commercial real estate[94]. - The total nonaccrual loans increased from $41,483,000 to $43,973,000, with $28,418,000 classified as losses[93]. - The company reported zero TDRs that redefaulted within 12 months for both the three months ended March 31, 2020, and March 31, 2019[108]. - The company recorded a liability for off-balance-sheet credit exposures of $5.8 million as of March 31, 2020, with a total amount recorded within credit loss expense of $2.4 million[154]. Economic Environment and Impact - The economic forecast indicates a significant increase in Midwest unemployment and a decline in national retail sales, CRE index, and US GDP due to the COVID-19 pandemic[102]. - The company anticipates a complex and significant adverse impact on its financial condition and results of operations due to the COVID-19 pandemic[179]. - Unemployment insurance claims increased significantly, with Colorado at 701%, Florida at 389%, and Iowa at 335% from January 4, 2020, to April 18, 2020[181]. - The Federal Reserve decreased the federal funds target rate to a range of 0.0 – 0.25% on March 16, 2020[184]. - The CARES Act established a $2.0 trillion economic stimulus package, including a $349 billion loan program through the SBA for the PPP[184]. Operational Adjustments - The company is actively working with COVID-19 affected borrowers to defer payments, which may impact future interest income[36]. - As of March 31, 2020, the company executed 842 loan payment deferrals on outstanding balances totaling $398.1 million due to COVID-19[194]. - The company closed or approved 2,327 PPP loans representing $334.5 million in funding, with expectations that most will be forgiven by the SBA[195]. - The company discontinued stock repurchases in mid-March 2020 and has no near-term plans to resume until there is more clarity on the economic outlook[199]. Capital and Regulatory Compliance - As of March 31, 2020, the company's total capital to risk-weighted assets ratio was 11.48%, exceeding the minimum regulatory requirement of 10.50%[148]. - The company's Tier 1 capital to risk-weighted assets ratio was 10.25%, above the required minimum of 8.50%[148]. - The bank's total capital to risk-weighted assets ratio was 12.03% as of March 31, 2020, also exceeding the well-capitalized requirement of 10.00%[148]. - Commitments to extend credit as of March 31, 2020, totaled $840,090,000, a decrease from $859,212,000 as of December 31, 2019[151].

MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q1 2020 Earnings Conference Call May 1, 2020 12:00 PM ET Company Participants Charles Funk - President and Chief Executive Officer Barry Ray - Chief Financial Officer Gary Sims - Chief Credit Officer Conference Call Participants Jeff Rulis - D.A. Davidson Andrew Liesch - Piper Sandler Damon DelMonte - KBW Brian Martin - Janney Montgomery Operator Good morning and welcome to the MidWestOne Financial Group, Incorporated First Quarter 2020 Earnings Conference Cal ...

COVID-19 RESPONSE AND SUPPLEMENTAL FINANCIAL INFORMATION FIRST QUARTER 2020 APRIL 30, 2020 SUPPORTING OUR EMPLOYEES • Focus on safety: • implemented social distancing throughout our locations • servicing customers via drive-up and closure of bank lobbies • significant expansion of work from home capabilities • increased cleaning services • business travel restrictions • Employee assistance: pandemic pay benefits for employees impacted by COVID-19, accommodations for employees with pre-existing health condit ...

Employment and Workplace Recognition - The company had 771 full-time equivalent employees as of December 31, 2019, and was recognized as one of Des Moines Register's "Top Workplaces" for the 7th consecutive year[41]. Financial Structure and Capital Requirements - The company relies on deposits and external financing sources, employing various financing arrangements including term debt and subordinated debt[39]. - Regulatory capital requirements have become more stringent post-global financial crisis, affecting the company's earnings capabilities[49]. - The Dodd-Frank Act and Basel III establish capital standards that are significantly more stringent than previous requirements[50]. - The company must maintain minimum capital levels based on guidelines established by bank regulatory agencies, which have evolved to focus on the quality of capital[50]. - The Basel III Rules require a minimum Common Equity Tier 1 Capital ratio of 4.5% of risk-weighted assets, with an increase to 7% when including the capital conservation buffer[57]. - The minimum required amount of Tier 1 Capital has increased from 4% to 6% of risk-weighted assets[61]. - The minimum Total Capital ratio remains at 8% of risk-weighted assets[61]. - A well-capitalized banking organization must maintain a Common Equity Tier 1 Capital ratio of 6.5% or more[62]. - The capital conservation buffer requires institutions to maintain more than 2.5% in Common Equity Tier 1 Capital to avoid restrictions on capital distributions[58]. - As of December 31, 2019, the Bank was well-capitalized and met all Basel III Rules requirements[63]. - Community banks with total consolidated assets of less than $10 billion can elect a Community Bank Leverage Ratio (CBLR) framework between 8% and 10%[65]. - The Federal Reserve requires bank holding companies to be well-capitalized and well-managed to effect interstate mergers or acquisitions[67]. - The Federal Reserve has enforcement powers to restrict dividend payments if a bank holding company does not meet minimum regulatory capital adequacy ratios[74]. - The Bank is required to maintain adequate capital levels and is prohibited from paying dividends if it would become undercapitalized[88]. Risk Management and Compliance - The company faces risks from credit quality deterioration and fluctuations in interest rates, which could impact net earnings[14]. - The interagency guidance on incentive compensation emphasizes balancing risk and reward, effective controls, and strong corporate governance[76]. - The Bank did not exceed capital guidelines related to CRE concentration risk as of December 31, 2019[102]. - The CFPB has broad rulemaking authority affecting all consumer financial product providers, including the Bank, with enforcement over institutions with more than $10 billion in assets[103]. Regulatory Environment - The Economic Growth, Regulatory Relief and Consumer Protection Act provides regulatory relief for community banks, eliminating certain Dodd-Frank requirements[45]. - The Bank's deposit accounts are insured by the FDIC's Deposit Insurance Fund (DIF) up to $250,000 per insured depositor category[80]. - The reserve ratio of the DIF reached 1.36% as of September 30, 2018, exceeding the minimum required reserve ratio of 1.35%[82]. - The FDIC's total base assessment rates for deposit insurance premiums currently range from 1.5 basis points to 30 basis points[81]. - For 2020, the first $16.9 million of reservable balances are exempt from reserves, with a zero percent reserve requirement[98]. - The Dodd-Frank Act increased the minimum reserve ratio of the DIF from 1.15% to 1.35%[82]. Operational Adaptation and Community Engagement - The company is committed to adapting to technological changes to remain competitive in the marketplace[14]. - The Community Reinvestment Act requires the Bank to meet the credit needs of the entire community, including low- and moderate-income neighborhoods[99]. - The Dodd-Frank Act expanded underwriting requirements for loans secured by 1-4 family residential real property, impacting mortgage origination standards[104]. - The Regulatory Relief Act allows mortgages held in portfolio for the life of the loan to be considered qualified mortgages for banks with assets under $10 billion[104]. - The CFPB's rules have resulted in higher compliance costs for the Bank, but have not significantly impacted operations[105].

MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q4 2019 Earnings Conference Call January 24, 2020 12:00 PM ET Company Participants Charles Funk - President, CEO & Director Barry Ray - CFO, Principal Accounting Officer & SVP Gary Sims - Chief Credit Officer James Cantrell - CIO, VP & Treasurer Conference Call Participants Jeffrey Rulis - D.A. Davidson & Co. Andrew Liesch - Sandler O'Neill Damon DelMonte - KBW Brian Martin - Janney Montgomery Scott Operator Good day and welcome to the MidWestOne Financial Grou ...

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, 2019 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) Iowa 42-1206172 (State or other jurisdictio ...

Financial Data and Key Metrics Changes - The overall theme of the report is positive, with earnings per share calculated at approximately $0.88 when excluding merger-related expenses [5][4] - The core net interest margin improved to 3.48% from 3.45% in the previous quarter, aided by a higher loan-to-deposit ratio [13][12] - The company reported a provision of $4.3 million, with $3 million not related to a deterioration in loan quality but rather a transition in measurement methodology [17][18] Business Line Data and Key Metrics Changes - The mortgage servicing rights adjustment negatively impacted noninterest income, with $657,000 recorded this quarter [15] - The wealth management unit, particularly the Trust Department, has assets under management between $1.6 billion and $1.7 billion, showing strong integration post-acquisition [15][16] - Ag loans increased by 1% during the quarter, representing 9.7% of the total portfolio, with a slight improvement in the quality of the ag portfolio [20][19] Market Data and Key Metrics Changes - The company experienced tough lending competition, particularly on pricing, but maintained reasonable credit terms [11] - Deposit growth was positive across all regions, with notable increases in Denver and Florida [12][43] - The Twin Cities region showed mixed loan growth, with two out of four areas experiencing negative growth year-to-date [8][9] Company Strategy and Development Direction - The company is focused on improving operational efficiency and leveraging the AT acquisition, with a goal of maintaining a core efficiency ratio under 60% [16] - Future growth is expected to be driven by a strong pipeline of loans, although the economic environment remains uncertain [10][36] - The company is cautious about future M&A activity, indicating a focus on internal efficiency before pursuing new acquisitions [52][53] Management's Comments on Operating Environment and Future Outlook - Management noted that the economic environment appears slower, contributing to higher-than-normal loan paydowns [6][36] - The outlook for net interest margin is dependent on the shape of the yield curve rather than solely on Federal Reserve actions [14][30] - Management expressed confidence in the company's ability to generate capital and improve tangible book value per share [22][23] Other Important Information - The company is managing high-cost deposits effectively, which has positively impacted the net interest margin [12] - There are expectations of additional expenses in the fourth quarter due to technology upgrades and fintech investments [16][28] Q&A Session Summary Question: Expectations for expenses in Q4 and 2020 - Management indicated that expenses may trend higher in Q4 due to normalizing FDIC insurance costs, with a budgeted increase in technology spending for 2020 [26][28] Question: Loan growth outlook for 2020 - Management aims for a loan growth target of 4% to 5% for 2020, contingent on economic conditions and existing pipeline activity [36] Question: Insights on investment services and trust growth - Management reported strong growth in investment services, with expectations for continued success driven by market conditions and effective integration [41] Question: Deposit growth drivers - Positive deposit growth was attributed to retail promotions and strong performance across various regions, particularly in Denver and Florida [43] Question: Accretion levels for Q4 - Management expects accretion levels to be around $3 million to $3.5 million per quarter, declining thereafter in 2020 [32][48]

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, 2019 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) Iowa 42-1206172 (State or other jurisdiction o ...