MidWestOne(MOFG) - 2024 Q3 - Quarterly Report

Cash Flow - Net cash inflows from operating activities were $32.1 million in the first nine months of 2024, down from$ 55.8 million in the same period of 2023, representing a decrease of 42.5%[254] - Net cash inflows from investing activities were $35.3 million in the first nine months of 2024, compared to$ 83.1 million in the comparable period of 2023, indicating a decline of 57.5%[254] - Net cash inflows from financing activities were $52.8 million in the first nine months of 2024, contrasting with net cash outflows of$ 150.5 million for the same period in 2023[255] Liquidity - As of September 30, 2024, the Bank had brokered deposits of $200.0 million, a decrease from$ 221.0 million as of December 31, 2023[259] - The Bank's liquidity sources include Federal Funds Lines totaling $135.0 million as of September 30, 2024, which are tested annually for availability[256] - The Bank had investment securities with a market value of approximately$ 744.3 million pledged to the Federal Reserve Bank of Chicago for liquidity purposes[257] - As of September 30, 2024, the Company had $23.7 million of reciprocal time deposits that qualified for the brokered deposit exemption[260] Interest Rate Sensitivity - As of September 30, 2024, 39.9% of the Company's earning asset balances are expected to reprice or pay down in the next twelve months[267] - The anticipated effect on net interest income over a twelve-month period shows a potential decrease of$ 5.989 million (3.5%) if short- and long-term interest rates decrease by 200 basis points[268] - The interest rate gap measures the difference between interest-earning assets and interest-bearing liabilities re-pricing within a given period[270] - This gap represents the net asset or liability sensitivity at a specific point in time[270] - External factors significantly affect the interest rate gap, including loan prepayments and early withdrawals of deposits[270] - Changes in the correlation of various interest-bearing instruments can impact the interest rate gap[270] - Competition in the market influences the interest rate gap dynamics[270] - A rise or decline in interest rates can significantly alter the interest rate gap[270] Credit Limit - The current credit limit established by the Federal Home Loan Bank of Des Moines is equal to 45% of the Bank's total assets[258]