MidWestOne(US:MOFG)2025-10-23 20:35Financial Performance - Net income for Q3 2025 was $17.0 million, or $0.82 per diluted common share, with adjusted earnings of $18.1 million, or $0.87 per share [7]. - The company reported a net income of $17,015,000 for the three months ended September 30, 2025, compared to a net income of $9,980,000 in the previous quarter, an increase of 70.4% [36]. - Earnings per share for the three months ended September 30, 2025, was $0.73, compared to $0.48 in the previous quarter, reflecting a growth of 52.1% [36]. - Adjusted earnings for the three months ended September 30, 2025, were $18,054 thousand, compared to $10,176 thousand in the previous quarter, indicating a significant increase of 77.5% [59]. - The return on average assets improved to 1.09% from 0.65% in the previous quarter, while the return on average equity rose to 11.34% from 6.81% [37]. Asset and Deposit Growth - Total assets increased to $6.25 billion as of September 30, 2025, up from $6.16 billion at June 30, 2025, but down from $6.55 billion at September 30, 2024 [18]. - Total deposits increased to $5.478 billion, an increase of 1.68% from $5.388 billion in the prior quarter [35]. - Total deposits reached $5.48 billion, increasing by $90.9 million, or 1.7%, from $5.39 billion at June 30, 2025, and up $110.3 million, or 2.1%, from $5.37 billion at September 30, 2024 [22]. - Noninterest bearing deposits increased to $958.1 million, up $47.4 million from June 30, 2025, and up $40.4 million from September 30, 2024 [22]. Loan Performance - Loans held for investment rose to $4.42 billion, an increase of $38.4 million, or 0.9%, from $4.38 billion at June 30, 2025, and up $90.9 million, or 2.1%, from $4.33 billion at September 30, 2024 [19]. - Nonperforming loans decreased by $7.2 million to $29.992 million compared to the previous quarter, while nonperforming assets decreased by $6.7 million to $33.944 million [27]. - The ratio of nonperforming loans to total loans was 0.68%, down from 0.85% in the previous quarter [27]. - The net charge-off ratio increased to 1.38%, up 136 basis points from the linked quarter and 122 basis points from the same period last year, primarily due to a $14.6 million charge-off on a single commercial real estate credit [27]. Income and Expense Analysis - Total interest income for the three months ended September 30, 2025, was $74,739,000, compared to $78,267,000 for the previous quarter, reflecting a decrease of 2.5% [36]. - Net interest income after credit loss expense for the three months ended September 30, 2025, was $45,752,000, down from $47,647,000 in the previous quarter, a decline of 4.0% [36]. - Total noninterest expense for the three months ended September 30, 2025, was $37,637,000, up from $35,767,000 in the previous quarter, representing a rise of 5.2% [36]. - Noninterest expense for Q3 2025 was $37.6 million, reflecting a 5% increase from the previous quarter [14]. Equity and Capital Management - Total shareholders' equity increased to $606.1 million as of September 30, 2025, up $17.0 million from June 30, 2025, and up $43.8 million from September 30, 2024 [24]. - Tangible book value per share rose to $24.96, an increase of 4.3% [7]. - The company repurchased 203,802 shares at an average price of $27.44 per share, totaling $5.6 million, with $9.4 million remaining under the share repurchase program [25]. Strategic Initiatives - The company announced a partnership with Nicolet Bankshares, Inc. to create a leading midsize bank in the Upper Midwest [5]. - The company plans to expand its market presence through strategic partnerships and new product offerings in the upcoming quarters [36]. - The management team, including the CEO and CFO, is committed to maintaining transparency and providing regular updates on financial performance and strategic initiatives [62].