MidWestOne(MOFG) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2025 was $15.1 million, or $0.73 per diluted common share, compared to $16.3 million in Q4 2024[5] - Total revenue for Q1 2025 decreased by $2.2 million to $57.575 million from Q4 2024, but increased by $13.1 million compared to Q1 2024[7] - Noninterest income for Q1 2025 was $10.136 million, a decrease of 6% from Q4 2024, but an increase of 4% from Q1 2024[10] - Net income for the quarter was $15,138 thousand, compared to $16,330 thousand in the previous quarter, representing a decline of 7.29%[37] - Basic earnings per share for the quarter was $0.73, compared to $0.79 in the previous quarter, reflecting a decrease of 7.59%[37] - Adjusted earnings for the quarter were $15,301 thousand, a slight decrease from $16,112 thousand in the previous quarter[55] Interest and Revenue Metrics - Net interest margin (tax equivalent) increased to 3.44%, with core net interest margin expanding by 10 basis points to 3.36%[5] - Net interest income for Q1 2025 was $47,439 thousand, a decrease of 3.06% from $48,938 thousand in Q4 2024, and an increase of 36.61% from $34,731 thousand in Q1 2024[38] - Interest income from loans, including fees, was $59,462 thousand for the quarter ended March 31, 2025, compared to $62,458 thousand in the previous quarter[37] - Core net interest income for the quarter was $47,416 thousand, slightly down from $47,595 thousand in the previous quarter[49] Asset and Liability Overview - Total assets as of March 31, 2025, were $6.25 billion, a slight increase from $6.24 billion at December 31, 2024, but a decrease from $6.75 billion at March 31, 2024[17] - Total liabilities were $5,674,769 thousand as of March 31, 2025, a slight decrease from $5,676,633 thousand at December 31, 2024[36] - Total deposits increased to $5.49 billion from $5.48 billion at December 31, 2024, but decreased by $96.1 million, or 1.7%, from $5.59 billion at March 31, 2024[21] - Total loans amounted to $4.304 billion, a slight decrease from $4.316 billion in Q4 2024[6] Credit Quality and Loan Performance - Criticized loans ratio improved by 54 basis points to 5.47%, and nonperforming assets ratio improved by 7 basis points to 0.33%[5] - Nonperforming loans decreased to $17.5 million as of March 31, 2025, from $21.8 million at December 31, 2024, reflecting a reduction of 20.8%[29] - The nonperforming loans ratio improved to 0.41% as of March 31, 2025, compared to 0.51% in the previous quarter and 0.66% a year ago[27] - Net loan charge-offs increased to $3.1 million, with a charge-off of 29 basis points primarily related to a commercial real estate loan[5] - The net charge-off ratio increased to 0.29% for the three months ended March 31, 2025, up 23 basis points from the previous quarter and 27 basis points from the same period last year[27] Capital and Equity - Tangible book value per share increased by 4.4% to $23.36, while the CET1 capital ratio improved by 24 basis points to 10.97%[5] - Total shareholders' equity increased by $19.9 million from December 31, 2024, to $579.6 million as of March 31, 2025, driven by an increase in retained earnings[24] - The common equity tier 1 capital to risk-weighted assets ratio was 10.97% as of March 31, 2025, compared to 10.73% at December 31, 2024[23] - The allowance for credit losses stood at $53,900 thousand as of March 31, 2025, slightly down from $55,200 thousand at December 31, 2024[36] Operational Efficiency - Noninterest expenses were $36.3 million, resulting in an efficiency ratio of 59.38%[5] - The efficiency ratio for Q1 2025 was 59.38%, slightly up from 59.06% in Q4 2024, and significantly improved from 71.28% in Q1 2024[38] - Return on average assets for Q1 2025 was 1.00%, down from 1.03% in Q4 2024, and up from 0.20% in Q1 2024[38] - Return on average tangible equity was 13.75% for the quarter ended March 31, 2025, down from 14.80% in the previous quarter[47] Dividends and Share Repurchase - The Board of Directors declared a cash dividend of $0.2425 per common share, payable on June 16, 2025[25] - No common shares were repurchased during the period from December 31, 2024, to March 31, 2025, with $15.0 million remaining available under the current share repurchase program[26] Miscellaneous - The company will host a conference call for investors on April 25, 2025, at 11:00 a.m. CT[30] - The company operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado, and trades on the Nasdaq Global Select Market under the symbol "MOFG"[31]