MidWestOne(US:MOFG)2024-10-24 20:20Financial Performance - The company reported a net loss of $95.7 million, or $(6.05) per diluted common share, for Q3 2024, with adjusted earnings of $9.1 million, or $0.58 per diluted common share [2]. - Total revenue for Q3 2024 decreased by $150.8 million from Q2 2024 and by $137.3 million compared to Q3 2023, primarily due to lower noninterest income [5]. - Noninterest income for Q3 2024 showed a significant decline of $151.9 million from the linked quarter, primarily due to securities impairment [9]. - The net loss income for September 30, 2024, was $(95,707,000), a decrease from a net income of $15,819,000 in June 30, 2024 [34]. - The earnings per common share (diluted) for the three months ended September 30, 2024, was $(6.05), compared to $1.00 in the previous quarter and $0.58 in the same quarter last year [47]. Revenue and Income - Total interest income for September 30, 2024, was $73,696,000, an increase from $72,776,000 in June 30, 2024, and $63,572,000 in September 30, 2023 [34]. - Total revenue, net of interest expense, was $(92,867,000) for the three months ended September 30, 2024, down from $57,901,000 in the previous quarter and $44,436,000 in the same quarter last year [35]. - Net interest income for the three months ended September 30, 2024, was $37,521,000, an increase from $36,347,000 in the previous quarter and $34,575,000 in the same quarter last year [35]. Assets and Liabilities - Total assets decreased to $6.55 billion at September 30, 2024, from $6.58 billion at June 30, 2024, primarily due to lower securities balances [13]. - Total liabilities decreased to $5,990,244,000 from $6,038,372,000, a reduction of about 0.8% [32]. - The company’s total assets amounted to $6,643,897 thousand as of September 30, 2024, compared to $6,480,636 thousand a year earlier [37]. Deposits and Loans - Total deposits decreased by $43.7 million, or 0.8%, to $5.37 billion from $5.41 billion at June 30, 2024, while core deposits increased by $40.5 million [18]. - Loans held for investment, net of unearned income, increased by $262.8 million, or 6.5%, to $4.33 billion from Q3 2023, driven by organic loan growth and the DNVB transaction [16]. - Total loans, including fees, increased to $62,521,000 for September 30, 2024, from $61,643,000 in June 30, 2024 [34]. Expenses - Noninterest expense for Q3 2024 was stable at $35.8 million, with a 13% increase compared to Q3 2023, primarily due to increases in other expenses and compensation and employee benefits [11]. - Total noninterest expense was $35,798,000 for September 30, 2024, slightly up from $35,761,000 in June 30, 2024 [34]. - The largest contributors to the increase in noninterest expense from Q3 2023 were other expenses, compensation and employee benefits, and legal and professional expenses [11]. Capital and Equity - The company completed a common equity capital raise, resulting in net proceeds of $118.6 million, and recognized $140.4 million in securities impairment related to balance sheet repositioning [2]. - Total shareholders' equity increased by $19.0 million from June 30, 2024, to $562.2 million, primarily due to an increase in common stock and additional paid-in-capital [20]. - Tangible common equity increased to $465,981 thousand as of September 30, 2024, with a tangible common equity ratio of 7.22% [40]. Credit Quality - The allowance for credit losses was $54.0 million, with a ratio of 1.25% as of September 30, 2024, compared to $53.9 million and 1.26% at June 30, 2024 [24]. - Nonperforming loans decreased to $21.954 million, with a nonperforming loans ratio of 0.51% as of September 30, 2024 [23]. - The estimated earn back period for the securities losses is projected to be 4.5 years [2]. Dividends - The company declared a cash dividend of $0.2425 per common share, payable on December 16, 2024 [21]. - The company paid dividends of $0.2425 per common share for the quarter ending September 30, 2024, consistent with the previous quarter [34].