MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or
the "Company”) today reported results for the second quarter of
2024.
Second Quarter
2024
Summary1
-
Completed sale of our Florida banking operations for a 7.5% deposit
premium.
-
Included in the sale were $133.3 million of deposits and $163.6
million of loans.
-
Net income of $15.8 million, or $1.00 per diluted common share.
-
Revenue of $57.9 million, which included gain on sale of $11.1
million and a positive MSR valuation adjustment of $129
thousand.
-
Noninterest expense of $35.8 million, which included merger-related
costs of $854 thousand.
-
Net interest margin (tax equivalent) expanded 8 bps to
2.41%2.
-
Classified loans declined 9%; net charge-off ratio was 0.05%.
-
Tangible book value per share of $28.272, an increase of $1.13 or
4%
CEO Commentary
Charles (Chip) Reeves, Chief Executive Officer
of the Company, commented, “We delivered another solid quarter of
strategic plan execution highlighted by the divestiture of our
Florida operations for a 7.5% net deposit premium, which completed
our geographic re-alignment announced last September, and will
allow complete focus on our targeted growth regions. Our net
interest margin, which inflected in the first quarter of 2024,
expanded an additional 8 bps in the second quarter of 2024 through
a combination of solid, well-priced loan originations, continued
earning asset mix shift, and well-controlled deposit costs. Our fee
generating products and services showed nice year-over-year
increases, including a 12% improvement in wealth management
revenues and a $476 thousand improvement from our customer
back-to-back swap product. Asset quality metrics improved in the
quarter led by a 9% reduction in classified assets.
I’m also very pleased with the level of talent
acquisition in the first half of 2024 and second quarter highlights
included our new EVP, Chief Information Officer and new SVP, Chief
Marketing Officer. Even with significant talent, product and
platform investments, our core noninterest expense levels
approximate year ago levels.
These accomplishments are due to the engagement
and expertise of our collective MOFG team, and we are humbled to
once again receive the honor of being an Iowa, and USA, Top
Workplace."
_________________________1 Second Quarter
Summary compares to the first quarter of 2024 (the "linked
quarter") unless noted. 2 Non-GAAP measure. See the separate
Non-GAAP Measures section for a reconciliation to the most directly
comparable GAAP measure.
|
|
As of or for the quarter ended |
|
Six Months Ended |
(Dollars
in thousands, except per share amounts and as noted) |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Financial
Results |
|
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
57,901 |
|
|
$ |
44,481 |
|
|
$ |
45,708 |
|
|
$ |
102,382 |
|
|
$ |
81,738 |
|
Credit loss expense |
|
|
1,267 |
|
|
|
4,689 |
|
|
|
1,597 |
|
|
|
5,956 |
|
|
|
2,530 |
|
Noninterest expense |
|
|
35,761 |
|
|
|
35,565 |
|
|
|
34,919 |
|
|
|
71,326 |
|
|
|
68,238 |
|
Net
income |
|
|
15,819 |
|
|
|
3,269 |
|
|
|
7,594 |
|
|
|
19,088 |
|
|
|
8,991 |
|
Per Common Share |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
1.00 |
|
|
$ |
0.21 |
|
|
$ |
0.48 |
|
|
$ |
1.21 |
|
|
$ |
0.57 |
|
Book value |
|
|
34.44 |
|
|
|
33.53 |
|
|
|
31.96 |
|
|
|
34.44 |
|
|
|
31.96 |
|
Tangible book value(1) |
|
|
28.27 |
|
|
|
27.14 |
|
|
|
26.26 |
|
|
|
28.27 |
|
|
|
26.26 |
|
Balance Sheet & Credit Quality |
|
|
|
|
|
|
|
|
|
|
LoansIn millions |
|
$ |
4,287.2 |
|
|
$ |
4,414.6 |
|
|
$ |
4,018.6 |
|
|
$ |
4,287.2 |
|
|
$ |
4,018.6 |
|
Investment securities In
millions |
|
|
1,824.1 |
|
|
|
1,862.2 |
|
|
|
2,003.1 |
|
|
|
1,824.1 |
|
|
|
2,003.1 |
|
DepositsIn millions |
|
|
5,412.4 |
|
|
|
5,585.2 |
|
|
|
5,445.4 |
|
|
|
5,412.4 |
|
|
|
5,445.4 |
|
Net loan charge-offs In
millions |
|
|
0.5 |
|
|
|
0.2 |
|
|
|
0.9 |
|
|
|
0.7 |
|
|
|
1.2 |
|
Allowance for credit losses ratio |
|
|
1.26 |
% |
|
|
1.27 |
% |
|
|
1.25 |
% |
|
|
1.26 |
% |
|
|
1.25 |
% |
Selected Ratios |
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
0.95 |
% |
|
|
0.20 |
% |
|
|
0.47 |
% |
|
|
0.58 |
% |
|
|
0.28 |
% |
Net interest margin, tax
equivalent(1) |
|
|
2.41 |
% |
|
|
2.33 |
% |
|
|
2.52 |
% |
|
|
2.37 |
% |
|
|
2.63 |
% |
Return on average equity |
|
|
11.91 |
% |
|
|
2.49 |
% |
|
|
6.03 |
% |
|
|
7.23 |
% |
|
|
3.61 |
% |
Return on average tangible equity(1) |
|
|
15.74 |
% |
|
|
4.18 |
% |
|
|
8.50 |
% |
|
|
9.98 |
% |
|
|
5.65 |
% |
Efficiency ratio(1) |
|
|
56.29 |
% |
|
|
71.28 |
% |
|
|
71.13 |
% |
|
|
62.83 |
% |
|
|
66.56 |
% |
(1)Non-GAAP measure. See the Non-GAAP Measures section
for a reconciliation to the most directly comparable GAAP
measure. |
|
GEOGRAPHIC RE-ALIGNMENT
Florida Banking Operations Divestiture
On June 7, 2024, we completed the sale of our
Florida banking operations for a 7.5% deposit premium, which
consisted of one bank branch in each of Naples and Ft. Myers,
Florida. The sale included all premises and equipment at those
locations. In addition, the sale involved the assignment of
deposits totaling $133.3 million and loans totaling $163.6
million.
Denver Bankshares, Inc. Acquisition
On January 31, 2024, we completed our
acquisition of Denver Bankshares, Inc. ("DNVB") and its
wholly-owned banking subsidiary, the Bank of Denver. The assets
acquired and liabilities assumed have been accounted for under the
acquisition method of accounting. The assets and liabilities, both
tangible and intangible, were recorded at their fair values as of
the January 31, 2024 acquisition date, net of any applicable tax
effects. The Company considers all purchase accounting estimates
provisional and fair values are subject to refinement for up to one
year after the close date.
The table below summarizes the amounts
recognized at the acquisition date for each major class of assets
acquired and liabilities assumed:
(In
thousands) |
|
As of January 31, 2024 |
Merger consideration |
|
|
Cash consideration |
|
$ |
32,600 |
|
Identifiable net
assets acquired, at fair value |
|
|
Assets acquired |
|
|
Cash and due from banks |
|
|
462 |
|
Interest earning deposits in banks |
|
|
3,517 |
|
Debt securities |
|
|
52,493 |
|
Loans held for investment |
|
|
207,095 |
|
Premises and equipment |
|
|
13,470 |
|
Core deposit intangible |
|
|
7,100 |
|
Other assets |
|
|
4,987 |
|
Total assets acquired |
|
|
289,124 |
|
Liabilities assumed |
|
|
Deposits |
|
|
(224,248 |
) |
Short-term borrowings |
|
|
(37,500 |
) |
Other liabilities |
|
|
(3,417 |
) |
Total liabilities assumed |
|
|
(265,165 |
) |
Identifiable net assets
acquired, at fair value |
|
|
23,959 |
|
Goodwill |
|
$ |
8,641 |
|
|
REVENUE REVIEW
Revenue |
|
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
|
2Q24 vs |
|
2Q24 vs |
(Dollars in
thousands) |
|
2Q24 |
|
1Q24 |
|
2Q23 |
|
1Q24 |
|
2Q23 |
Net interest income |
|
$ |
36,347 |
|
$ |
34,731 |
|
$ |
36,962 |
|
5 |
% |
|
(2 |
)% |
Noninterest income |
|
|
21,554 |
|
|
9,750 |
|
|
8,746 |
|
121 |
% |
|
146 |
% |
Total revenue, net of interest expense |
|
$ |
57,901 |
|
$ |
44,481 |
|
$ |
45,708 |
|
30 |
% |
|
27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue for the second quarter of 2024
increased $13.4 million from the first quarter of 2024 due to
higher noninterest income and net interest income during the
quarter. When compared to the second quarter of 2023, total revenue
increased $12.2 million due to higher noninterest income, due
primarily to the gain on sale from our Florida banking operations,
partially offset by lower net interest income due primarily to net
interest margin compression.
Net interest income of $36.3 million for the
second quarter of 2024 increased $1.6 million from the first
quarter of 2024, primarily due to higher interest earning asset
volumes and yields, partially offset by higher interest-bearing
liability volumes and costs. When compared to the second quarter of
2023, net interest income decreased $0.6 million, primarily due to
higher funding costs and volumes, partially offset by higher
interest earning asset volumes and yields.
The Company's tax equivalent net interest margin
was 2.41%3 in the second quarter of 2024, compared to 2.33%3 in the
first quarter of 2024, as higher earning asset yields more than
offset increased funding costs. Total interest earning assets yield
during the second quarter of 2024 increased 16 bps from the first
quarter of 2024 as a result of an increase in loan yields of 18
bps. The cost of interest-bearing liabilities during the second
quarter of 2024 increased 10 bps, to 2.85%, due primarily to
interest bearing deposit costs of 2.54%, short-term borrowing costs
of 4.86%, and long-term debt of 6.95%, which increased 9 bps, 4
bps, and 9 bps, respectively, from the first quarter of 2024. Our
cycle-to-date interest bearing deposit beta was 43%.
The Company's tax equivalent net interest margin
was 2.41%3 in the second quarter of 2024, compared to 2.52%3 in the
second quarter of 2023, driven by higher funding costs, partially
offset by higher interest earning asset yields. The cost of
interest-bearing liabilities increased 87 bps to 2.85%, primarily
due to interest bearing deposit costs of 2.54%, short-term
borrowing costs of 4.86%, and long-term debt costs of 6.95%, which
increased 75 bps, 195 bps and 57 bps, respectively from the second
quarter of 2023. Total interest earning assets yield increased 60
bps from the second quarter of 2023, primarily as a result of an
increase in loan yields of 64 bps.
Noninterest Income |
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
2Q24 vs |
|
2Q24 vs |
(In
thousands) |
2Q24 |
|
1Q24 |
|
2Q23 |
|
1Q24 |
|
2Q23 |
Investment services and trust activities |
$ |
3,504 |
|
$ |
3,503 |
|
|
$ |
3,119 |
|
|
— |
% |
|
12 |
% |
Service charges and fees |
|
2,156 |
|
|
2,144 |
|
|
|
2,047 |
|
|
1 |
% |
|
5 |
% |
Card
revenue |
|
1,907 |
|
|
1,943 |
|
|
|
1,847 |
|
|
(2 |
)% |
|
3 |
% |
Loan
revenue |
|
1,525 |
|
|
856 |
|
|
|
909 |
|
|
78 |
% |
|
68 |
% |
Bank-owned life insurance |
|
668 |
|
|
660 |
|
|
|
616 |
|
|
1 |
% |
|
8 |
% |
Investment securities gains (losses), net |
|
33 |
|
|
36 |
|
|
|
(2 |
) |
|
(8 |
)% |
|
n/m |
Other |
|
11,761 |
|
|
608 |
|
|
|
210 |
|
|
n/m |
|
n/m |
Total noninterest income |
$ |
21,554 |
|
$ |
9,750 |
|
|
$ |
8,746 |
|
|
121 |
% |
|
146 |
% |
|
|
|
|
|
|
|
|
|
|
MSR
adjustment (included above in Loan revenue) |
|
129 |
|
|
(368 |
) |
|
|
(581 |
) |
|
(135 |
)% |
|
(122 |
)% |
Gain on branch sale (included above in Other) |
|
11,056 |
|
|
— |
|
|
|
— |
|
|
n/m |
|
n/m |
(n/m) - Not meaningful |
|
|
|
|
|
|
|
|
|
|
Noninterest income for the second quarter of
2024 increased $11.8 million from the linked quarter, primarily due
to the sale of our Florida banking operations, which resulted in a
gain on sale of $11.1 million that was recorded in other revenue,
coupled with an increase of $0.7 million in loan revenue. The
increase in loan revenue primarily reflected a favorable
quarter-over-quarter change in the fair value of our mortgage
servicing rights, from a negative adjustment of $368 thousand in
the first quarter of 2024 to a positive adjustment of $129 thousand
in the second quarter of 2024. Also contributing to the increase in
noninterest income compared to the linked quarter was an increase
of $0.3 million in customer back-to-back swap origination fee
income, which was recorded in other revenue.
Noninterest income for the second quarter of
2024 increased $12.8 million from the second quarter of 2023,
primarily due to the gain on sale of $11.1 million previously
noted. Loan revenue increased $0.6 million and reflected the
favorable year-over-year change in the fair value of our mortgage
servicing rights, from a negative adjustment of $581 thousand in
the second quarter of 2023 to a positive adjustment of $129
thousand in the second quarter of 2024. Also contributing to the
increase in noninterest income compared to the second quarter of
2023 was an increase of $0.5 million in customer back-to-back swap
origination fee income, which was recorded in other revenue, and an
increase of $0.4 million in investment services and trust
activities revenue, driven by growth in assets under administration
and market valuation.
_________________________3 Non-GAAP measure. See
the separate Non-GAAP Measures section for a reconciliation to the
most directly comparable GAAP measure.
EXPENSE REVIEW
Noninterest Expense |
|
|
|
|
|
|
Change |
|
Change |
|
|
|
|
|
|
2Q24 vs |
|
2Q24 vs |
(In
thousands) |
2Q24 |
|
1Q24 |
|
2Q23 |
|
1Q24 |
|
2Q23 |
Compensation and employee benefits |
$ |
20,985 |
|
$ |
20,930 |
|
$ |
20,386 |
|
|
— |
% |
|
3 |
% |
Occupancy expense of premises,
net |
|
2,435 |
|
|
2,813 |
|
|
2,574 |
|
|
(13 |
)% |
|
(5 |
)% |
Equipment |
|
2,530 |
|
|
2,600 |
|
|
2,435 |
|
|
(3 |
)% |
|
4 |
% |
Legal and professional |
|
2,253 |
|
|
2,059 |
|
|
1,682 |
|
|
9 |
% |
|
34 |
% |
Data processing |
|
1,645 |
|
|
1,360 |
|
|
1,521 |
|
|
21 |
% |
|
8 |
% |
Marketing |
|
636 |
|
|
598 |
|
|
1,142 |
|
|
6 |
% |
|
(44 |
)% |
Amortization of
intangibles |
|
1,593 |
|
|
1,637 |
|
|
1,594 |
|
|
(3 |
)% |
|
— |
% |
FDIC insurance |
|
1,051 |
|
|
942 |
|
|
862 |
|
|
12 |
% |
|
22 |
% |
Communications |
|
191 |
|
|
196 |
|
|
260 |
|
|
(3 |
)% |
|
(27 |
)% |
Foreclosed assets, net |
|
138 |
|
|
358 |
|
|
(6 |
) |
|
(61 |
)% |
|
n/m |
Other |
|
2,304 |
|
|
2,072 |
|
|
2,469 |
|
|
11 |
% |
|
(7 |
)% |
Total noninterest expense |
$ |
35,761 |
|
$ |
35,565 |
|
$ |
34,919 |
|
|
1 |
% |
|
2 |
% |
(n/m) - Not meaningful |
|
|
|
|
|
|
|
|
|
Merger-related Expenses |
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
2Q24 |
|
1Q24 |
|
2Q23 |
Compensation and employee benefits |
$ |
73 |
|
$ |
241 |
|
$ |
— |
Occupancy expense of premises,
net |
|
— |
|
|
152 |
|
|
— |
Equipment |
|
28 |
|
|
149 |
|
|
— |
Legal
and professional |
|
462 |
|
|
573 |
|
|
— |
Data
processing |
|
251 |
|
|
61 |
|
|
— |
Marketing |
|
— |
|
|
32 |
|
|
— |
Communications |
|
8 |
|
|
1 |
|
|
— |
Other |
|
32 |
|
|
105 |
|
|
— |
Total merger-related expenses |
$ |
854 |
|
$ |
1,314 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
Noninterest expense for the second quarter of
2024 increased $0.2 million from the linked quarter primarily due
to increases of $0.3 million, $0.2 million and $0.2 million in data
processing, other, and legal and professional expenses,
respectively. The increase in data processing expense was primarily
driven by merger-related expenses. The increase in other expense
was primarily driven by increases in operating losses and loan
expenses. The increase in legal and professional expense was due to
increased costs for other outside services, consulting, and audit
expense. Partially offsetting these increases was a decline in
occupancy expense of premises, net, of $0.4 million, primarily due
to a decrease in rental expense and grounds upkeep, and $0.2
million of foreclosed assets, net, stemming from the first quarter
of 2024 write-down of other real estate owned, which did not recur
in the second quarter of 2024.
Noninterest expense for the second quarter of
2024 increased $0.8 million from the second quarter of 2023
primarily due to increases of $0.6 million in both compensation and
employee benefits and legal and professional expenses. The increase
in compensation and employee benefits expense was primarily driven
by annual compensation adjustments, increased headcount as a result
of the DNVB acquisition, increased incentive and commission
expense, and merger-related expenses. The increase in legal and
professional expense stemmed primarily from higher merger-related
expenses. Partially offsetting these increases was a decline of
$0.5 million in marketing.
The Company's effective tax rate was 24.0% in
the second quarter of 2024, compared to 22.7% in the linked
quarter. The increase in the effective tax rate reflected higher
taxable income from the Florida banking operations gain on sale
previously noted, which has a higher effective tax rate due to the
non-taxable allocation of goodwill. The effective income tax rate
for 2024 is expected to be 21-23%.
BALANCE SHEET REVIEW
Total assets were $6.58 billion at June 30,
2024, compared to $6.75 billion at March 31, 2024 and $6.52
billion at June 30, 2023. The decrease from March 31,
2024 was primarily driven by the sale of our Florida banking
operations and lower securities balances. Compared to June 30,
2023, the increase was primarily driven by the assets acquired from
the acquisition of DNVB, organic loan growth, and higher line of
credit usage, partially offset by the sale of our Florida banking
operations and lower securities balances due to balance sheet
repositioning executed in fourth quarter of 2023 and calls,
maturities, and paydowns.
Loans Held for Investment |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
(Dollars in
thousands) |
|
|
|
|
|
|
Commercial and industrial |
$ |
1,120,983 |
|
26.1 |
% |
$ |
1,105,718 |
|
25.0 |
% |
$ |
1,089,269 |
|
27.1 |
% |
Agricultural |
|
107,983 |
|
2.5 |
|
|
113,029 |
|
2.6 |
|
|
106,148 |
|
2.6 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
351,646 |
|
8.2 |
|
|
403,571 |
|
9.1 |
|
|
313,836 |
|
7.8 |
|
Farmland |
|
183,641 |
|
4.3 |
|
|
184,109 |
|
4.2 |
|
|
183,378 |
|
4.6 |
|
Multifamily |
|
430,054 |
|
10.0 |
|
|
409,504 |
|
9.3 |
|
|
305,519 |
|
7.6 |
|
Other |
|
1,348,515 |
|
31.5 |
|
|
1,440,645 |
|
32.7 |
|
|
1,331,886 |
|
33.1 |
|
Total commercial real estate |
|
2,313,856 |
|
54.0 |
|
|
2,437,829 |
|
55.3 |
|
|
2,134,619 |
|
53.1 |
|
Residential real estate |
|
|
|
|
|
|
|
|
|
|
|
|
One-to-four family first liens |
|
492,541 |
|
11.5 |
|
|
495,408 |
|
11.2 |
|
|
448,096 |
|
11.2 |
|
One-to-four family junior liens |
|
176,105 |
|
4.1 |
|
|
182,001 |
|
4.1 |
|
|
168,755 |
|
4.2 |
|
Total residential real estate |
|
668,646 |
|
15.6 |
|
|
677,409 |
|
15.3 |
|
|
616,851 |
|
15.4 |
|
Consumer |
|
75,764 |
|
1.8 |
|
|
80,661 |
|
1.8 |
|
|
71,762 |
|
1.8 |
|
Loans held for investment, net of unearned income |
$ |
4,287,232 |
|
100.0 |
% |
$ |
4,414,646 |
|
100.0 |
% |
$ |
4,018,649 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
commitments to extend credit |
$ |
1,200,605 |
|
|
|
$ |
1,230,612 |
|
|
|
$ |
1,296,719 |
|
|
|
|
Loans held for investment, net of unearned
income, decreased $127.4 million, or 2.9%, to $4.29 billion from
$4.41 billion at March 31, 2024. The decrease from the first
quarter of 2024 was driven primarily by $163.6 million of loans
divested as part of the sale of our Florida banking operations and
lower line of credit usage.
Loans held for investment, net of unearned
income, increased $268.6 million, or 6.7%, to $4.29 billion from
$4.02 billion at June 30, 2023. The increase from the second
quarter of 2023 was driven primarily by the loans acquired in the
DNVB acquisition, organic loan growth, and higher line of credit
usage. Partially offsetting these identified increases was a
decline in loans held for investment, net of unearned income
stemming from the divestiture of our Florida banking
operations.
Investment Securities |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
(Dollars in
thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Available for sale |
$ |
771,034 |
|
42.3 |
% |
$ |
797,230 |
|
42.8 |
% |
$ |
903,520 |
|
45.1 |
% |
Held to maturity |
|
1,053,080 |
|
57.7 |
% |
|
1,064,939 |
|
57.2 |
% |
|
1,099,569 |
|
54.9 |
% |
Total investment securities |
$ |
1,824,114 |
|
|
|
$ |
1,862,169 |
|
|
|
$ |
2,003,089 |
|
|
|
|
Investment securities at June 30, 2024 were
$1.82 billion, decreasing $38.1 million from March 31, 2024
and $179.0 million from June 30, 2023. The decrease from the
first quarter of 2024 was primarily due to principal cash flows
received from scheduled payments, calls, and maturities. The
decrease from the second quarter of 2023 was primarily due to
balance sheet repositioning executed in fourth quarter of 2023 and
principal cash flows received from scheduled payments, calls, and
maturities.
Deposits |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
(Dollars in
thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Noninterest bearing deposits |
$ |
882,472 |
|
16.3 |
% |
$ |
920,764 |
|
16.5 |
% |
$ |
897,923 |
|
16.5 |
% |
Interest checking
deposits |
|
1,284,243 |
|
23.7 |
|
|
1,349,823 |
|
24.2 |
|
|
1,397,276 |
|
25.7 |
|
Money market deposits |
|
1,043,376 |
|
19.3 |
|
|
1,122,717 |
|
20.1 |
|
|
1,096,432 |
|
20.1 |
|
Savings deposits |
|
745,639 |
|
13.8 |
|
|
728,276 |
|
13.0 |
|
|
585,967 |
|
10.8 |
|
Time deposits of $250 and
under |
|
803,301 |
|
14.8 |
|
|
787,851 |
|
14.1 |
|
|
648,586 |
|
11.9 |
|
Total core deposits |
|
4,759,031 |
|
87.9 |
|
|
4,909,431 |
|
87.9 |
|
|
4,626,184 |
|
85.0 |
|
Brokered time deposits |
|
196,000 |
|
3.6 |
|
|
205,000 |
|
3.7 |
|
|
365,623 |
|
6.7 |
|
Time deposits over $250 |
|
457,388 |
|
8.5 |
|
|
470,805 |
|
8.4 |
|
|
453,640 |
|
8.3 |
|
Total deposits |
$ |
5,412,419 |
|
100.0 |
% |
$ |
5,585,236 |
|
100.0 |
% |
$ |
5,445,447 |
|
100.0 |
% |
|
Deposits declined $172.8 million, or 3.1%, to
$5.41 billion, from $5.59 billion at March 31, 2024, primarily
due to $133.3 million of deposits divested as part of the sale of
our Florida banking operations. Included in the deposits that were
sold were $31.8 million of noninterest bearing deposits. Total
deposits decreased $33.0 million, or 0.6%, from $5.45 billion at
June 30, 2023 primarily due to the sale of our Florida banking
operations and a decline of $169.6 million in brokered deposits,
partially offset by deposits assumed in the DNVB acquisition.
Borrowed Funds |
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|
(Dollars in
thousands) |
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Balance |
|
% of Total |
|
Short-term borrowings |
$ |
414,684 |
|
78.3 |
% |
$ |
422,988 |
|
77.6 |
% |
$ |
362,054 |
|
74.2 |
% |
Long-term debt |
|
114,839 |
|
21.7 |
% |
|
122,066 |
|
22.4 |
% |
|
125,752 |
|
25.8 |
% |
Total borrowed funds |
$ |
529,523 |
|
|
|
$ |
545,054 |
|
|
|
$ |
487,806 |
|
|
|
|
Borrowed funds were $529.5 million at
June 30, 2024, a decrease of $15.5 million from March 31,
2024 and an increase of $41.7 million from June 30, 2023. The
decrease compared to the linked quarter was due to a $13 million
payoff of a revolving credit facility and scheduled payments on
long-term debt, partially offset by an increase in overnight
borrowings from the Federal Home Loan Bank and securities sold
under agreements to repurchase. The increase compared to
June 30, 2023 was primarily due to higher Bank Term Funding
Program borrowings, partially offset by lower securities sold under
agreements to repurchase, overnight borrowings from the Federal
Home Loan Bank, and scheduled payments on long-term debt.
Capital |
June 30, |
|
March 31, |
|
June 30, |
(Dollars in
thousands) |
2024(1) |
|
|
2024 |
|
|
|
2023 |
|
Total shareholders' equity |
$ |
543,286 |
|
|
$ |
528,040 |
|
|
$ |
501,341 |
|
Accumulated other comprehensive loss |
|
(58,135 |
) |
|
|
(60,804 |
) |
|
|
(82,704 |
) |
MidWestOneFinancial
Group, Inc. Consolidated |
|
|
|
|
|
Tier 1 leverage to average
assets ratio |
|
8.29 |
% |
|
|
8.16 |
% |
|
|
8.47 |
% |
Common equity tier 1 capital
to risk-weighted assets ratio |
|
9.56 |
% |
|
|
8.98 |
% |
|
|
9.36 |
% |
Tier 1 capital to
risk-weighted assets ratio |
|
10.35 |
% |
|
|
9.75 |
% |
|
|
10.15 |
% |
Total capital to risk-weighted
assets ratio |
|
12.62 |
% |
|
|
11.97 |
% |
|
|
12.26 |
% |
MidWestOneBank |
|
|
|
|
|
Tier 1 leverage to average
assets ratio |
|
9.24 |
% |
|
|
9.36 |
% |
|
|
9.42 |
% |
Common equity tier 1 capital
to risk-weighted assets ratio |
|
11.55 |
% |
|
|
11.20 |
% |
|
|
11.31 |
% |
Tier 1 capital to
risk-weighted assets ratio |
|
11.55 |
% |
|
|
11.20 |
% |
|
|
11.31 |
% |
Total
capital to risk-weighted assets ratio |
|
12.61 |
% |
|
|
12.25 |
% |
|
|
12.22 |
% |
(1) Regulatory capital ratios for June 30, 2024 are
preliminary |
|
|
|
|
|
|
Total shareholders' equity at June 30, 2024
increased $15.2 million from March 31, 2024, driven by an
increase in retained earnings and decreases in accumulated other
comprehensive loss and treasury stock. Total shareholders' equity
at June 30, 2024 increased $41.9 million from June 30,
2023, driven by decreases in accumulated other comprehensive loss
and treasury stock, coupled with an increase in retained
earnings.
Accumulated other comprehensive loss at
June 30, 2024 decreased $2.7 million compared to
March 31, 2024, primarily due to an increase in available for
sale securities valuations. Accumulated other comprehensive loss
decreased $24.6 million from June 30, 2023, primarily due to
an increase in available for sale securities valuations and the
recognition of the loss from the fourth quarter 2023 sale of
securities as part of a balance sheet repositioning.
On July 23, 2024, the Board of Directors of
the Company declared a cash dividend of $0.2425 per common share.
The dividend is payable September 17, 2024, to shareholders of
record at the close of business on September 3, 2024.
No common shares were repurchased by the Company
during the period March 31, 2024 through June 30, 2024 or
for the subsequent period through July 25, 2024. The current
share repurchase program allows for the repurchase of up to $15.0
million of the Company's common shares. As of June 30, 2024,
$15.0 million was available under this program.
CREDIT QUALITY REVIEW
Credit Quality |
As of or For the Three Months Ended |
June 30, |
|
March 31, |
|
June 30, |
(Dollars in thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
Credit loss expense related to
loans |
$ |
467 |
|
|
$ |
4,589 |
|
|
$ |
1,497 |
|
Net charge-offs |
|
524 |
|
|
|
189 |
|
|
|
897 |
|
Allowance for credit losses |
|
53,900 |
|
|
|
55,900 |
|
|
|
50,400 |
|
Pass |
$ |
3,991,692 |
|
|
$ |
4,098,102 |
|
|
$ |
3,769,309 |
|
Special Mention / Watch |
|
146,253 |
|
|
|
152,604 |
|
|
|
133,904 |
|
Classified |
|
149,287 |
|
|
|
163,940 |
|
|
|
115,436 |
|
Loans greater than 30 days past due and accruing |
$ |
9,358 |
|
|
$ |
8,772 |
|
|
$ |
6,201 |
|
Nonperforming loans |
$ |
25,128 |
|
|
$ |
29,267 |
|
|
$ |
14,448 |
|
Nonperforming assets |
|
31,181 |
|
|
|
33,164 |
|
|
|
14,448 |
|
Net charge-off ratio(1) |
|
0.05 |
% |
|
|
0.02 |
% |
|
|
0.09 |
% |
Classified loans ratio(2) |
|
3.48 |
% |
|
|
3.71 |
% |
|
|
2.87 |
% |
Nonperforming loans
ratio(3) |
|
0.59 |
% |
|
|
0.66 |
% |
|
|
0.36 |
% |
Nonperforming assets
ratio(4) |
|
0.47 |
% |
|
|
0.49 |
% |
|
|
0.22 |
% |
Allowance for credit losses
ratio(5) |
|
1.26 |
% |
|
|
1.27 |
% |
|
|
1.25 |
% |
Allowance for credit losses to
nonaccrual loans ratio(6) |
|
218.26 |
% |
|
|
197.53 |
% |
|
|
355.03 |
% |
(1)Net charge-off ratio is calculated as annualized net charge-offs
divided by the sum of average loans held for investment, net of
unearned income and average loans held for sale, during the
period. |
(2)Classified loans ratio is calculated as classified loans divided
by loans held for investment, net of unearned income, at the end of
the period. |
(3)Nonperforming loans ratio is calculated as nonperforming loans
divided by loans held for investment, net of unearned income, at
the end of the period. |
(4)Nonperforming assets ratio is calculated as nonperforming assets
divided by total assets at the end of the period. |
(5)Allowance for credit losses ratio is calculated as allowance for
credit losses divided by loans held for investment, net of unearned
income, at the end of the period. |
(6)Allowance for credit losses to nonaccrual loans ratio is
calculated as allowance for credit losses divided by nonaccrual
loans at the end of the period. |
|
Compared to the linked quarter, the
nonperforming loans and nonperforming assets ratios declined 7 bps
and 2 bps, to 0.59% and 0.47%, respectively. Special mention/watch
loan balances decreased $6.4 million, or 4%, from the linked
quarter, while classified loan balances decreased $14.7 million, or
9%, from the linked quarter due to the proactive management of
troubled assets. When compared to the same period of the prior
year, the nonperforming loans and nonperforming asset ratios
increased 23 bps and 25 bps, respectively. Further, the net
charge-off ratio increased 3 bps from the linked quarter and
decreased 4 bps from the same period in the prior year.
As of June 30, 2024, the allowance for
credit losses was $53.9 million and the allowance for credit losses
ratio was 1.26%, compared with $55.9 million and 1.27% at
March 31, 2024. Credit loss expense of $1.3 million in the
second quarter of 2024 reflected an additional reserve of $0.8
million on unfunded loan commitments, coupled with an additional
reserve taken to support organic loan growth. Credit loss expense
in the linked quarter reflected $3.2 million of day 1 credit loss
expense related to the DNVB acquisition, as well as additional
reserve taken to support organic loan growth.
Nonperforming Loans Roll Forward |
Nonaccrual |
|
90+ Days Past Due & Still Accruing |
|
Total |
(Dollars in
thousands) |
|
|
Balance at March 31,
2024 |
$ |
28,300 |
|
|
$ |
967 |
|
|
$ |
29,267 |
|
Loans placed on nonaccrual or
90+ days past due & still accruing |
|
964 |
|
|
|
446 |
|
|
|
1,410 |
|
Proceeds related to repayment
or sale |
|
(1,856 |
) |
|
|
(1 |
) |
|
|
(1,857 |
) |
Loans returned to accrual
status or no longer past due |
|
(25 |
) |
|
|
(596 |
) |
|
|
(621 |
) |
Charge-offs |
|
(508 |
) |
|
|
(158 |
) |
|
|
(666 |
) |
Transfers to foreclosed
assets |
|
(2,180 |
) |
|
|
— |
|
|
|
(2,180 |
) |
Transfer to nonaccrual |
|
— |
|
|
|
(225 |
) |
|
|
(225 |
) |
Balance at June 30,
2024 |
$ |
24,695 |
|
|
$ |
433 |
|
|
$ |
25,128 |
|
|
CONFERENCE CALL DETAILS
The Company will host a conference call for
investors at 11:00 a.m. CT on Friday, July 26, 2024. To
participate, you may pre-register for this call utilizing the
following link:
https://www.netroadshow.com/events/login?show=25afc13e&confId=68332.
After pre-registering for this event you will receive your access
details via email. On the day of the call, you are also able to
dial 1-833-470-1428 using an access code of 162387 at least fifteen
minutes before the call start time. If you are unable to
participate on the call, a replay will be available until October
24, 2024 by calling 1-866-813-9403 and using the replay access code
of 323537. A transcript of the call will also be available on the
Company’s web site (www.midwestonefinancial.com) within three
business days of the call.
ABOUT
MIDWESTONE FINANCIAL GROUP,
INC.
MidWestOne Financial Group, Inc. is a financial
holding company headquartered in Iowa City, Iowa. MidWestOne is the
parent company of MidWestOne Bank, which operates banking offices
in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides
electronic delivery of financial services through its website,
MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the
Nasdaq Global Select Market under the symbol “MOFG”.
Cautionary Note Regarding Forward-Looking
Statements
This release contains certain “forward-looking
statements” within the meaning of such term in the Private
Securities Litigation Reform Act of 1995. We and our
representatives may, from time to time, make written or oral
statements that are “forward-looking” and provide information other
than historical information. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results to be materially different from any results, levels
of activity, performance or achievements expressed or implied by
any forward-looking statement. These factors include, among other
things, the factors listed below. Forward-looking statements, which
may be based upon beliefs, expectations and assumptions of our
management and on information currently available to management,
are generally identifiable by the use of words such as “believe,”
“expect,” “anticipate,” “should,” “could,” “would,” “plans,”
“goals,” “intend,” “project,” “estimate,” “forecast,” “may” or
similar expressions. These forward-looking statements are subject
to certain risks and uncertainties that could cause actual results
to differ materially from those expressed in, or implied by, these
statements. Readers are cautioned not to place undue reliance on
any such forward-looking statements, which speak only as of the
date made. Additionally, we undertake no obligation to update any
statement in light of new information or future events, except as
required under federal securities law.
Our ability to predict results or the actual
effect of future plans or strategies is inherently uncertain.
Factors that could have an impact on our ability to achieve
operating results, growth plan goals and future prospects include,
but are not limited to, the following: (1) the risks of mergers or
branch sales (including the recent sale of our Florida banking
operations and the acquisition of DNVB), including, without
limitation, the related time and costs of implementing such
transactions, integrating operations as part of these transactions
and possible failures to achieve expected gains, revenue growth
and/or expense savings from such transactions; (2) credit quality
deterioration, pronounced and sustained reduction in real estate
market values, or other uncertainties, including the impact of
inflationary pressures on economic conditions and our business,
resulting in an increase in the allowance for credit losses, an
increase in the credit loss expense, and a reduction in net
earnings; (3) the effects of sustained high interest rates,
including on our net income and the value of our securities
portfolio; (4) changes in the economic environment, competition, or
other factors that may affect our ability to acquire loans or
influence the anticipated growth rate of loans and deposits and the
quality of the loan portfolio and loan and deposit pricing; (5)
fluctuations in the value of our investment securities; (6)
governmental monetary and fiscal policies; (7) changes in and
uncertainty related to benchmark interest rates used to price loans
and deposits; (8) legislative and regulatory changes, including
changes in banking, securities, trade, and tax laws and regulations
and their application by our regulators, and any changes in
response to the recent failures of other banks; (9) the ability to
attract and retain key executives and employees experienced in
banking and financial services; (10) the sufficiency of the
allowance for credit losses to absorb the amount of actual losses
inherent in our existing loan portfolio; (11) our ability to adapt
successfully to technological changes to compete effectively in the
marketplace; (12) credit risks and risks from concentrations (by
geographic area and by industry) within our loan portfolio; (13)
the effects of competition from other commercial banks, thrifts,
mortgage banking firms, consumer finance companies, credit unions,
securities brokerage firms, insurance companies, money market and
other mutual funds, financial technology companies, and other
financial institutions operating in our markets or elsewhere or
providing similar services; (14) the failure of assumptions
underlying the establishment of allowances for credit losses and
estimation of values of collateral and various financial assets and
liabilities; (15) volatility of rate-sensitive deposits; (16)
operational risks, including data processing system failures or
fraud; (17) asset/liability matching risks and liquidity risks;
(18) the costs, effects and outcomes of existing or future
litigation; (19) changes in general economic, political, or
industry conditions, nationally, internationally or in the
communities in which we conduct business, including the risk of a
recession; (20) changes in accounting policies and practices, as
may be adopted by state and federal regulatory agencies and the
Financial Accounting Standards Board; (21) war or terrorist
activities, including the ongoing Israeli-Palestinian conflict and
the Russian invasion of Ukraine, widespread disease or pandemic, or
other adverse external events, which may cause deterioration in the
economy or cause instability in credit markets; (22) the occurrence
of fraudulent activity, breaches, or failures of our or our
third-party vendors' information security controls or
cyber-security related incidents, including as a result of
sophisticated attacks using artificial intelligence and similar
tools; (23) the imposition of tariffs or other domestic or
international governmental policies impacting the value of the
agricultural or other products of our borrowers; (24) potential
changes in federal policy and at regulatory agencies as a result of
the upcoming 2024 presidential election; (25) the concentration of
large deposits from certain clients who have balances above current
FDIC insurance limits; (26) the effects of recent developments and
events in the financial services industry, including the
large-scale deposit withdrawals over a short period of time that
resulted in recent bank failures; and (27) other risk factors
detailed from time to time in Securities and Exchange Commission
filings made by the Company.
MIDWESTONE FINANCIAL
GROUP, INC. FIVE QUARTER CONSOLIDATED BALANCE
SHEETS
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(In thousands) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
66,228 |
|
|
$ |
68,430 |
|
|
$ |
76,237 |
|
|
$ |
71,015 |
|
|
$ |
75,955 |
|
Interest earning deposits in
banks |
|
35,340 |
|
|
|
29,328 |
|
|
|
5,479 |
|
|
|
3,773 |
|
|
|
68,603 |
|
Federal funds sold |
|
— |
|
|
|
4 |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
Total cash and cash equivalents |
|
101,568 |
|
|
|
97,762 |
|
|
|
81,727 |
|
|
|
74,788 |
|
|
|
144,558 |
|
Debt securities available for
sale at fair value |
|
771,034 |
|
|
|
797,230 |
|
|
|
795,134 |
|
|
|
872,770 |
|
|
|
903,520 |
|
Held to maturity securities at
amortized cost |
|
1,053,080 |
|
|
|
1,064,939 |
|
|
|
1,075,190 |
|
|
|
1,085,751 |
|
|
|
1,099,569 |
|
Total securities |
|
1,824,114 |
|
|
|
1,862,169 |
|
|
|
1,870,324 |
|
|
|
1,958,521 |
|
|
|
2,003,089 |
|
Loans held for sale |
|
2,850 |
|
|
|
2,329 |
|
|
|
1,045 |
|
|
|
2,528 |
|
|
|
2,821 |
|
Gross loans held for
investment |
|
4,304,619 |
|
|
|
4,433,258 |
|
|
|
4,138,352 |
|
|
|
4,078,060 |
|
|
|
4,031,377 |
|
Unearned income, net |
|
(17,387 |
) |
|
|
(18,612 |
) |
|
|
(11,405 |
) |
|
|
(12,091 |
) |
|
|
(12,728 |
) |
Loans held for investment, net of unearned income |
|
4,287,232 |
|
|
|
4,414,646 |
|
|
|
4,126,947 |
|
|
|
4,065,969 |
|
|
|
4,018,649 |
|
Allowance for credit
losses |
|
(53,900 |
) |
|
|
(55,900 |
) |
|
|
(51,500 |
) |
|
|
(51,600 |
) |
|
|
(50,400 |
) |
Total loans held for investment, net |
|
4,233,332 |
|
|
|
4,358,746 |
|
|
|
4,075,447 |
|
|
|
4,014,369 |
|
|
|
3,968,249 |
|
Premises and equipment,
net |
|
91,793 |
|
|
|
95,986 |
|
|
|
85,742 |
|
|
|
85,589 |
|
|
|
85,831 |
|
Goodwill |
|
69,388 |
|
|
|
71,118 |
|
|
|
62,477 |
|
|
|
62,477 |
|
|
|
62,477 |
|
Other intangible assets,
net |
|
27,939 |
|
|
|
29,531 |
|
|
|
24,069 |
|
|
|
25,510 |
|
|
|
26,969 |
|
Foreclosed assets, net |
|
6,053 |
|
|
|
3,897 |
|
|
|
3,929 |
|
|
|
— |
|
|
|
— |
|
Other assets |
|
224,621 |
|
|
|
226,477 |
|
|
|
222,780 |
|
|
|
244,036 |
|
|
|
227,495 |
|
Total assets |
$ |
6,581,658 |
|
|
$ |
6,748,015 |
|
|
$ |
6,427,540 |
|
|
$ |
6,467,818 |
|
|
$ |
6,521,489 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
Noninterest bearing
deposits |
$ |
882,472 |
|
|
$ |
920,764 |
|
|
$ |
897,053 |
|
|
$ |
924,213 |
|
|
$ |
897,923 |
|
Interest bearing deposits |
|
4,529,947 |
|
|
|
4,664,472 |
|
|
|
4,498,620 |
|
|
|
4,439,111 |
|
|
|
4,547,524 |
|
Total deposits |
|
5,412,419 |
|
|
|
5,585,236 |
|
|
|
5,395,673 |
|
|
|
5,363,324 |
|
|
|
5,445,447 |
|
Short-term borrowings |
|
414,684 |
|
|
|
422,988 |
|
|
|
300,264 |
|
|
|
373,956 |
|
|
|
362,054 |
|
Long-term debt |
|
114,839 |
|
|
|
122,066 |
|
|
|
123,296 |
|
|
|
124,526 |
|
|
|
125,752 |
|
Other liabilities |
|
96,430 |
|
|
|
89,685 |
|
|
|
83,929 |
|
|
|
100,601 |
|
|
|
86,895 |
|
Total liabilities |
|
6,038,372 |
|
|
|
6,219,975 |
|
|
|
5,903,162 |
|
|
|
5,962,407 |
|
|
|
6,020,148 |
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
Common stock |
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
|
|
16,581 |
|
Additional paid-in
capital |
|
300,831 |
|
|
|
300,845 |
|
|
|
302,157 |
|
|
|
301,889 |
|
|
|
301,424 |
|
Retained earnings |
|
306,030 |
|
|
|
294,066 |
|
|
|
294,784 |
|
|
|
295,862 |
|
|
|
290,548 |
|
Treasury stock |
|
(22,021 |
) |
|
|
(22,648 |
) |
|
|
(24,245 |
) |
|
|
(24,315 |
) |
|
|
(24,508 |
) |
Accumulated other
comprehensive loss |
|
(58,135 |
) |
|
|
(60,804 |
) |
|
|
(64,899 |
) |
|
|
(84,606 |
) |
|
|
(82,704 |
) |
Total shareholders' equity |
|
543,286 |
|
|
|
528,040 |
|
|
|
524,378 |
|
|
|
505,411 |
|
|
|
501,341 |
|
Total liabilities and shareholders' equity |
$ |
6,581,658 |
|
|
$ |
6,748,015 |
|
|
$ |
6,427,540 |
|
|
$ |
6,467,818 |
|
|
$ |
6,521,489 |
|
|
MIDWESTONE FINANCIAL
GROUP, INC. FIVE QUARTER CONSOLIDATED STATEMENTS
OF INCOME
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
June 30, |
|
June 30, |
(In thousands, except per share data) |
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
|
2023 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
61,643 |
|
$ |
57,947 |
|
$ |
54,093 |
|
|
$ |
51,870 |
|
$ |
49,726 |
|
|
$ |
119,590 |
|
$ |
96,216 |
|
Taxable investment securities |
|
9,228 |
|
|
9,460 |
|
|
9,274 |
|
|
|
9,526 |
|
|
9,734 |
|
|
|
18,688 |
|
|
20,178 |
|
Tax-exempt investment securities |
|
1,663 |
|
|
1,710 |
|
|
1,789 |
|
|
|
1,802 |
|
|
1,822 |
|
|
|
3,373 |
|
|
3,949 |
|
Other |
|
242 |
|
|
418 |
|
|
230 |
|
|
|
374 |
|
|
68 |
|
|
|
660 |
|
|
312 |
|
Total interest income |
|
72,776 |
|
|
69,535 |
|
|
65,386 |
|
|
|
63,572 |
|
|
61,350 |
|
|
|
142,311 |
|
|
120,655 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
28,942 |
|
|
27,726 |
|
|
27,200 |
|
|
|
23,128 |
|
|
20,117 |
|
|
|
56,668 |
|
|
35,436 |
|
Short-term borrowings |
|
5,409 |
|
|
4,975 |
|
|
3,496 |
|
|
|
3,719 |
|
|
2,118 |
|
|
|
10,384 |
|
|
3,904 |
|
Long-term debt |
|
2,078 |
|
|
2,103 |
|
|
2,131 |
|
|
|
2,150 |
|
|
2,153 |
|
|
|
4,181 |
|
|
4,277 |
|
Total interest expense |
|
36,429 |
|
|
34,804 |
|
|
32,827 |
|
|
|
28,997 |
|
|
24,388 |
|
|
|
71,233 |
|
|
43,617 |
|
Net interest income |
|
36,347 |
|
|
34,731 |
|
|
32,559 |
|
|
|
34,575 |
|
|
36,962 |
|
|
|
71,078 |
|
|
77,038 |
|
Credit loss expense |
|
1,267 |
|
|
4,689 |
|
|
1,768 |
|
|
|
1,551 |
|
|
1,597 |
|
|
|
5,956 |
|
|
2,530 |
|
Net interest income after credit loss expense |
|
35,080 |
|
|
30,042 |
|
|
30,791 |
|
|
|
33,024 |
|
|
35,365 |
|
|
|
65,122 |
|
|
74,508 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment services and trust activities |
|
3,504 |
|
|
3,503 |
|
|
3,193 |
|
|
|
3,004 |
|
|
3,119 |
|
|
|
7,007 |
|
|
6,052 |
|
Service charges and fees |
|
2,156 |
|
|
2,144 |
|
|
2,148 |
|
|
|
2,146 |
|
|
2,047 |
|
|
|
4,300 |
|
|
4,055 |
|
Card revenue |
|
1,907 |
|
|
1,943 |
|
|
1,802 |
|
|
|
1,817 |
|
|
1,847 |
|
|
|
3,850 |
|
|
3,595 |
|
Loan revenue |
|
1,525 |
|
|
856 |
|
|
909 |
|
|
|
1,462 |
|
|
909 |
|
|
|
2,381 |
|
|
2,329 |
|
Bank-owned life insurance |
|
668 |
|
|
660 |
|
|
656 |
|
|
|
626 |
|
|
616 |
|
|
|
1,328 |
|
|
1,218 |
|
Investment securities gains (losses), net |
|
33 |
|
|
36 |
|
|
(5,696 |
) |
|
|
79 |
|
|
(2 |
) |
|
|
69 |
|
|
(13,172 |
) |
Other |
|
11,761 |
|
|
608 |
|
|
850 |
|
|
|
727 |
|
|
210 |
|
|
|
12,369 |
|
|
623 |
|
Total noninterest income |
|
21,554 |
|
|
9,750 |
|
|
3,862 |
|
|
|
9,861 |
|
|
8,746 |
|
|
|
31,304 |
|
|
4,700 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and employee benefits |
|
20,985 |
|
|
20,930 |
|
|
17,859 |
|
|
|
18,558 |
|
|
20,386 |
|
|
|
41,915 |
|
|
39,993 |
|
Occupancy expense of premises, net |
|
2,435 |
|
|
2,813 |
|
|
2,309 |
|
|
|
2,405 |
|
|
2,574 |
|
|
|
5,248 |
|
|
5,320 |
|
Equipment |
|
2,530 |
|
|
2,600 |
|
|
2,466 |
|
|
|
2,123 |
|
|
2,435 |
|
|
|
5,130 |
|
|
4,606 |
|
Legal and professional |
|
2,253 |
|
|
2,059 |
|
|
2,269 |
|
|
|
1,678 |
|
|
1,682 |
|
|
|
4,312 |
|
|
3,418 |
|
Data processing |
|
1,645 |
|
|
1,360 |
|
|
1,411 |
|
|
|
1,504 |
|
|
1,521 |
|
|
|
3,005 |
|
|
2,884 |
|
Marketing |
|
636 |
|
|
598 |
|
|
700 |
|
|
|
782 |
|
|
1,142 |
|
|
|
1,234 |
|
|
2,128 |
|
Amortization of intangibles |
|
1,593 |
|
|
1,637 |
|
|
1,441 |
|
|
|
1,460 |
|
|
1,594 |
|
|
|
3,230 |
|
|
3,346 |
|
FDIC insurance |
|
1,051 |
|
|
942 |
|
|
900 |
|
|
|
783 |
|
|
862 |
|
|
|
1,993 |
|
|
1,611 |
|
Communications |
|
191 |
|
|
196 |
|
|
183 |
|
|
|
206 |
|
|
260 |
|
|
|
387 |
|
|
521 |
|
Foreclosed assets, net |
|
138 |
|
|
358 |
|
|
45 |
|
|
|
2 |
|
|
(6 |
) |
|
|
496 |
|
|
(34 |
) |
Other |
|
2,304 |
|
|
2,072 |
|
|
2,548 |
|
|
|
2,043 |
|
|
2,469 |
|
|
|
4,376 |
|
|
4,445 |
|
Total noninterest expense |
|
35,761 |
|
|
35,565 |
|
|
32,131 |
|
|
|
31,544 |
|
|
34,919 |
|
|
|
71,326 |
|
|
68,238 |
|
Income before income tax expense |
|
20,873 |
|
|
4,227 |
|
|
2,522 |
|
|
|
11,341 |
|
|
9,192 |
|
|
|
25,100 |
|
|
10,970 |
|
Income tax expense (benefit) |
|
5,054 |
|
|
958 |
|
|
(208 |
) |
|
|
2,203 |
|
|
1,598 |
|
|
|
6,012 |
|
|
1,979 |
|
Net income |
$ |
15,819 |
|
$ |
3,269 |
|
$ |
2,730 |
|
|
$ |
9,138 |
|
$ |
7,594 |
|
|
$ |
19,088 |
|
$ |
8,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.00 |
|
$ |
0.21 |
|
$ |
0.17 |
|
|
$ |
0.58 |
|
$ |
0.48 |
|
|
$ |
1.21 |
|
$ |
0.57 |
|
Diluted |
$ |
1.00 |
|
$ |
0.21 |
|
$ |
0.17 |
|
|
$ |
0.58 |
|
$ |
0.48 |
|
|
$ |
1.21 |
|
$ |
0.57 |
|
Weighted average basic common
shares outstanding |
|
15,763 |
|
|
15,723 |
|
|
15,693 |
|
|
|
15,689 |
|
|
15,680 |
|
|
|
15,743 |
|
|
15,665 |
|
Weighted average diluted
common shares outstanding |
|
15,781 |
|
|
15,774 |
|
|
15,756 |
|
|
|
15,711 |
|
|
15,689 |
|
|
|
15,775 |
|
|
15,688 |
|
Dividends paid per common
share |
$ |
0.2425 |
|
$ |
0.2425 |
|
$ |
0.2425 |
|
|
$ |
0.2425 |
|
$ |
0.2425 |
|
|
$ |
0.4850 |
|
$ |
0.4850 |
|
|
MIDWESTONE FINANCIAL
GROUP, INC. FINANCIAL STATISTICS
|
As of or for the Three Months Ended |
|
As of or for the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in thousands, except per share
amounts) |
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Earnings: |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
36,347 |
|
|
$ |
34,731 |
|
|
$ |
36,962 |
|
|
$ |
71,078 |
|
|
$ |
77,038 |
|
Noninterest income |
|
21,554 |
|
|
|
9,750 |
|
|
|
8,746 |
|
|
|
31,304 |
|
|
|
4,700 |
|
Total revenue, net of interest expense |
|
57,901 |
|
|
|
44,481 |
|
|
|
45,708 |
|
|
|
102,382 |
|
|
|
81,738 |
|
Credit loss expense |
|
1,267 |
|
|
|
4,689 |
|
|
|
1,597 |
|
|
|
5,956 |
|
|
|
2,530 |
|
Noninterest expense |
|
35,761 |
|
|
|
35,565 |
|
|
|
34,919 |
|
|
|
71,326 |
|
|
|
68,238 |
|
Income before income tax expense |
|
20,873 |
|
|
|
4,227 |
|
|
|
9,192 |
|
|
|
25,100 |
|
|
|
10,970 |
|
Income tax expense |
|
5,054 |
|
|
|
958 |
|
|
|
1,598 |
|
|
|
6,012 |
|
|
|
1,979 |
|
Net income |
$ |
15,819 |
|
|
$ |
3,269 |
|
|
$ |
7,594 |
|
|
$ |
19,088 |
|
|
$ |
8,991 |
|
Per Share
Data: |
|
|
|
|
|
|
|
|
|
Diluted earnings |
$ |
1.00 |
|
|
$ |
0.21 |
|
|
$ |
0.48 |
|
|
$ |
1.21 |
|
|
$ |
0.57 |
|
Book value |
|
34.44 |
|
|
|
33.53 |
|
|
|
31.96 |
|
|
|
34.44 |
|
|
|
31.96 |
|
Tangible book value(1) |
|
28.27 |
|
|
|
27.14 |
|
|
|
26.26 |
|
|
|
28.27 |
|
|
|
26.26 |
|
Ending Balance
Sheet: |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
6,581,658 |
|
|
$ |
6,748,015 |
|
|
$ |
6,521,489 |
|
|
$ |
6,581,658 |
|
|
$ |
6,521,489 |
|
Loans held for investment, net
of unearned income |
|
4,287,232 |
|
|
|
4,414,646 |
|
|
|
4,018,649 |
|
|
|
4,287,232 |
|
|
|
4,018,649 |
|
Total securities |
|
1,824,114 |
|
|
|
1,862,169 |
|
|
|
2,003,089 |
|
|
|
1,824,114 |
|
|
|
2,003,089 |
|
Total deposits |
|
5,412,419 |
|
|
|
5,585,236 |
|
|
|
5,445,447 |
|
|
|
5,412,419 |
|
|
|
5,445,447 |
|
Short-term borrowings |
|
414,684 |
|
|
|
422,988 |
|
|
|
362,054 |
|
|
|
414,684 |
|
|
|
362,054 |
|
Long-term debt |
|
114,839 |
|
|
|
122,066 |
|
|
|
125,752 |
|
|
|
114,839 |
|
|
|
125,752 |
|
Total shareholders'
equity |
|
543,286 |
|
|
|
528,040 |
|
|
|
501,341 |
|
|
|
543,286 |
|
|
|
501,341 |
|
Average Balance
Sheet: |
|
|
|
|
|
|
|
|
|
Average total assets |
$ |
6,713,573 |
|
|
$ |
6,635,379 |
|
|
$ |
6,465,810 |
|
|
$ |
6,674,476 |
|
|
$ |
6,494,777 |
|
Average total loans |
|
4,419,697 |
|
|
|
4,298,216 |
|
|
|
4,003,717 |
|
|
|
4,358,957 |
|
|
|
3,935,791 |
|
Average total deposits |
|
5,514,924 |
|
|
|
5,481,114 |
|
|
|
5,454,517 |
|
|
|
5,498,020 |
|
|
|
5,500,350 |
|
Financial
Ratios: |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.95 |
% |
|
|
0.20 |
% |
|
|
0.47 |
% |
|
|
0.58 |
% |
|
|
0.28 |
% |
Return on average equity |
|
11.91 |
% |
|
|
2.49 |
% |
|
|
6.03 |
% |
|
|
7.23 |
% |
|
|
3.61 |
% |
Return on average tangible
equity(1) |
|
15.74 |
% |
|
|
4.18 |
% |
|
|
8.50 |
% |
|
|
9.98 |
% |
|
|
5.65 |
% |
Efficiency ratio(1) |
|
56.29 |
% |
|
|
71.28 |
% |
|
|
71.13 |
% |
|
|
62.83 |
% |
|
|
66.56 |
% |
Net interest margin, tax
equivalent(1) |
|
2.41 |
% |
|
|
2.33 |
% |
|
|
2.52 |
% |
|
|
2.37 |
% |
|
|
2.63 |
% |
Loans to deposits ratio |
|
79.21 |
% |
|
|
79.04 |
% |
|
|
73.80 |
% |
|
|
79.21 |
% |
|
|
73.80 |
% |
Common equity ratio |
|
8.25 |
% |
|
|
7.83 |
% |
|
|
7.69 |
% |
|
|
8.25 |
% |
|
|
7.69 |
% |
Tangible common equity
ratio(1) |
|
6.88 |
% |
|
|
6.43 |
% |
|
|
6.40 |
% |
|
|
6.88 |
% |
|
|
6.40 |
% |
Credit Risk
Profile: |
|
|
|
|
|
|
|
|
|
Total nonperforming loans |
$ |
25,128 |
|
|
$ |
29,267 |
|
|
$ |
14,448 |
|
|
$ |
25,128 |
|
|
$ |
14,448 |
|
Nonperforming loans ratio |
|
0.59 |
% |
|
|
0.66 |
% |
|
|
0.36 |
% |
|
|
0.59 |
% |
|
|
0.36 |
% |
Total nonperforming
assets |
$ |
31,181 |
|
|
$ |
33,164 |
|
|
$ |
14,448 |
|
|
$ |
31,181 |
|
|
$ |
14,448 |
|
Nonperforming assets
ratio |
|
0.47 |
% |
|
|
0.49 |
% |
|
|
0.22 |
% |
|
|
0.47 |
% |
|
|
0.22 |
% |
Net charge-offs |
$ |
524 |
|
|
$ |
189 |
|
|
$ |
897 |
|
|
$ |
713 |
|
|
$ |
1,230 |
|
Net charge-off ratio |
|
0.05 |
% |
|
|
0.02 |
% |
|
|
0.09 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
Allowance for credit
losses |
$ |
53,900 |
|
|
$ |
55,900 |
|
|
$ |
50,400 |
|
|
$ |
53,900 |
|
|
$ |
50,400 |
|
Allowance for credit losses
ratio |
|
1.26 |
% |
|
|
1.27 |
% |
|
|
1.25 |
% |
|
|
1.26 |
% |
|
|
1.25 |
% |
Allowance for credit losses to
nonaccrual ratio |
|
218.26 |
% |
|
|
197.53 |
% |
|
|
355.03 |
% |
|
|
218.26 |
% |
|
|
355.03 |
% |
(1)Non-GAAP
measure. See the Non-GAAP Measures section for a
reconciliation to the most directly comparable GAAP measure. |
|
MIDWESTONE FINANCIAL
GROUP, INC. AVERAGE BALANCE SHEET AND YIELD
ANALYSIS
|
Three Months Ended |
|
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
(Dollars in
thousands) |
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
|
Average Balance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees(1)(2)(3) |
$ |
4,419,697 |
|
$ |
62,581 |
|
5.69 |
% |
|
$ |
4,298,216 |
|
$ |
58,867 |
|
5.51 |
% |
|
$ |
4,003,717 |
|
$ |
50,439 |
|
5.05 |
% |
Taxable investment
securities |
|
1,520,253 |
|
|
9,228 |
|
2.44 |
% |
|
|
1,557,603 |
|
|
9,460 |
|
2.44 |
% |
|
|
1,698,003 |
|
|
9,734 |
|
2.30 |
% |
Tax-exempt investment
securities(2)(4) |
|
322,092 |
|
|
2,040 |
|
2.55 |
% |
|
|
328,736 |
|
|
2,097 |
|
2.57 |
% |
|
|
345,934 |
|
|
2,253 |
|
2.61 |
% |
Total securities held for investment(2) |
|
1,842,345 |
|
|
11,268 |
|
2.46 |
% |
|
|
1,886,339 |
|
|
11,557 |
|
2.46 |
% |
|
|
2,043,937 |
|
|
11,987 |
|
2.35 |
% |
Other |
|
20,452 |
|
|
242 |
|
4.76 |
% |
|
|
30,605 |
|
|
418 |
|
5.49 |
% |
|
|
9,078 |
|
|
68 |
|
3.00 |
% |
Total interest earning assets(2) |
$ |
6,282,494 |
|
$ |
74,091 |
|
4.74 |
% |
|
$ |
6,215,160 |
|
$ |
70,842 |
|
4.58 |
% |
|
$ |
6,056,732 |
|
$ |
62,494 |
|
4.14 |
% |
Other assets |
|
431,079 |
|
|
|
|
|
|
420,219 |
|
|
|
|
|
|
409,078 |
|
|
|
|
Total assets |
$ |
6,713,573 |
|
|
|
|
|
$ |
6,635,379 |
|
|
|
|
|
$ |
6,465,810 |
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest checking
deposits |
$ |
1,297,356 |
|
$ |
3,145 |
|
0.97 |
% |
|
$ |
1,301,470 |
|
$ |
2,890 |
|
0.89 |
% |
|
$ |
1,420,741 |
|
$ |
1,971 |
|
0.56 |
% |
Money market deposits |
|
1,072,688 |
|
|
7,821 |
|
2.93 |
% |
|
|
1,102,543 |
|
|
8,065 |
|
2.94 |
% |
|
|
999,436 |
|
|
5,299 |
|
2.13 |
% |
Savings deposits |
|
738,773 |
|
|
2,673 |
|
1.46 |
% |
|
|
694,143 |
|
|
2,047 |
|
1.19 |
% |
|
|
603,905 |
|
|
288 |
|
0.19 |
% |
Time deposits |
|
1,470,956 |
|
|
15,303 |
|
4.18 |
% |
|
|
1,446,981 |
|
|
14,724 |
|
4.09 |
% |
|
|
1,490,332 |
|
|
12,559 |
|
3.38 |
% |
Total interest bearing deposits |
|
4,579,773 |
|
|
28,942 |
|
2.54 |
% |
|
|
4,545,137 |
|
|
27,726 |
|
2.45 |
% |
|
|
4,514,414 |
|
|
20,117 |
|
1.79 |
% |
Securities sold under
agreements to repurchase |
|
5,300 |
|
|
10 |
|
0.76 |
% |
|
|
5,330 |
|
|
11 |
|
0.83 |
% |
|
|
159,583 |
|
|
423 |
|
1.06 |
% |
Other short-term
borrowings |
|
442,546 |
|
|
5,399 |
|
4.91 |
% |
|
|
409,525 |
|
|
4,964 |
|
4.88 |
% |
|
|
132,495 |
|
|
1,695 |
|
5.13 |
% |
Total short-term borrowings |
|
447,846 |
|
|
5,409 |
|
4.86 |
% |
|
|
414,855 |
|
|
4,975 |
|
4.82 |
% |
|
|
292,078 |
|
|
2,118 |
|
2.91 |
% |
Long-term debt |
|
120,256 |
|
|
2,078 |
|
6.95 |
% |
|
|
123,266 |
|
|
2,103 |
|
6.86 |
% |
|
|
135,329 |
|
|
2,153 |
|
6.38 |
% |
Total borrowed funds |
|
568,102 |
|
|
7,487 |
|
5.30 |
% |
|
|
538,121 |
|
|
7,078 |
|
5.29 |
% |
|
|
427,407 |
|
|
4,271 |
|
4.01 |
% |
Total interest bearing liabilities |
$ |
5,147,875 |
|
$ |
36,429 |
|
2.85 |
% |
|
$ |
5,083,258 |
|
$ |
34,804 |
|
2.75 |
% |
|
$ |
4,941,821 |
|
$ |
24,388 |
|
1.98 |
% |
Noninterest bearing
deposits |
|
935,151 |
|
|
|
|
|
|
935,977 |
|
|
|
|
|
|
940,103 |
|
|
|
|
Other liabilities |
|
96,553 |
|
|
|
|
|
|
88,611 |
|
|
|
|
|
|
78,898 |
|
|
|
|
Shareholders’ equity |
|
533,994 |
|
|
|
|
|
|
527,533 |
|
|
|
|
|
|
504,988 |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
6,713,573 |
|
|
|
|
|
$ |
6,635,379 |
|
|
|
|
|
$ |
6,465,810 |
|
|
|
|
Net interest income(2) |
|
|
$ |
37,662 |
|
|
|
|
|
$ |
36,038 |
|
|
|
|
|
$ |
38,106 |
|
|
Net interest spread(2) |
|
|
|
|
1.89 |
% |
|
|
|
|
|
1.83 |
% |
|
|
|
|
|
2.16 |
% |
Net interest margin(2) |
|
|
|
|
2.41 |
% |
|
|
|
|
|
2.33 |
% |
|
|
|
|
|
2.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits(5) |
$ |
5,514,924 |
|
$ |
28,942 |
|
2.11 |
% |
|
$ |
5,481,114 |
|
$ |
27,726 |
|
2.03 |
% |
|
$ |
5,454,517 |
|
$ |
20,117 |
|
1.48 |
% |
Cost of funds(6) |
|
|
|
|
2.41 |
% |
|
|
|
|
|
2.33 |
% |
|
|
|
|
|
1.66 |
% |
(1) Average
balance includes nonaccrual loans. |
(2) Tax
equivalent. The federal statutory tax rate utilized was 21%. |
(3) Interest
income includes net loan fees, loan purchase discount accretion and
tax equivalent adjustments. Net loan fees were $337 thousand, $237
thousand, and $79 thousand for the three months ended June 30,
2024, March 31, 2024, and June 30, 2023, respectively.
Loan purchase discount accretion was $1.3 million, $1.2 million,
and $1.0 million for the three months ended June 30, 2024,
March 31, 2024, and June 30, 2023, respectively. Tax
equivalent adjustments were $938 thousand, $920 thousand, and $713
thousand for the three months ended June 30, 2024,
March 31, 2024, and June 30, 2023, respectively. The
federal statutory tax rate utilized was 21%. |
(4) Interest
income includes tax equivalent adjustments of $377 thousand, $387
thousand, and $431 thousand for the three months ended
June 30, 2024, March 31, 2024, and June 30, 2023,
respectively. The federal statutory tax rate utilized was 21%. |
(5) Total
deposits is the sum of total interest-bearing deposits and
noninterest bearing deposits. The cost of total deposits is
calculated as annualized interest expense on deposits divided by
average total deposits. |
(6) Cost of funds
is calculated as annualized total interest expense divided by the
sum of average total deposits and borrowed funds. |
|
MIDWESTONE FINANCIAL
GROUP, INC.AVERAGE BALANCE SHEET AND YIELD
ANALYSIS
|
Six Months Ended |
|
June 30, 2024 |
|
June 30, 2023 |
(Dollars in
thousands) |
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
|
AverageBalance |
|
InterestIncome/Expense |
|
AverageYield/Cost |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees(1)(2)(3) |
$ |
4,358,957 |
|
$ |
121,448 |
|
5.60 |
% |
|
$ |
3,935,791 |
|
$ |
97,645 |
|
5.00 |
% |
Taxable investment
securities |
|
1,538,928 |
|
|
18,688 |
|
2.44 |
% |
|
|
1,754,382 |
|
|
20,178 |
|
2.32 |
% |
Tax-exempt investment
securities(2)(4) |
|
325,414 |
|
|
4,137 |
|
2.56 |
% |
|
|
371,381 |
|
|
4,902 |
|
2.66 |
% |
Total securities held for investment(2) |
|
1,864,342 |
|
|
22,825 |
|
2.46 |
% |
|
|
2,125,763 |
|
|
25,080 |
|
2.38 |
% |
Other |
|
25,529 |
|
|
660 |
|
5.20 |
% |
|
|
16,919 |
|
|
312 |
|
3.72 |
% |
Total interest earning assets(2) |
$ |
6,248,828 |
|
$ |
144,933 |
|
4.66 |
% |
|
$ |
6,078,473 |
|
$ |
123,037 |
|
4.08 |
% |
Other assets |
|
425,648 |
|
|
|
|
|
|
416,304 |
|
|
|
|
Total assets |
$ |
6,674,476 |
|
|
|
|
|
$ |
6,494,777 |
|
|
|
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Interest checking
deposits |
$ |
1,299,413 |
|
$ |
6,035 |
|
0.93 |
% |
|
$ |
1,468,030 |
|
$ |
3,820 |
|
0.52 |
% |
Money market deposits |
|
1,087,616 |
|
|
15,886 |
|
2.94 |
% |
|
|
965,180 |
|
|
8,568 |
|
1.79 |
% |
Savings deposits |
|
716,458 |
|
|
4,720 |
|
1.32 |
% |
|
|
628,338 |
|
|
560 |
|
0.18 |
% |
Time deposits |
|
1,458,969 |
|
|
30,027 |
|
4.14 |
% |
|
|
1,454,210 |
|
|
22,488 |
|
3.12 |
% |
Total interest bearing deposits |
|
4,562,456 |
|
|
56,668 |
|
2.50 |
% |
|
|
4,515,758 |
|
|
35,436 |
|
1.58 |
% |
Securities sold under
agreements to repurchase |
|
5,315 |
|
|
21 |
|
0.79 |
% |
|
|
152,734 |
|
|
873 |
|
1.15 |
% |
Other short-term
borrowings |
|
426,036 |
|
|
10,363 |
|
4.89 |
% |
|
|
121,959 |
|
|
3,031 |
|
5.01 |
% |
Total short-term borrowings |
|
431,351 |
|
|
10,384 |
|
4.84 |
% |
|
|
274,693 |
|
|
3,904 |
|
2.87 |
% |
Long-term debt |
|
121,761 |
|
|
4,181 |
|
6.91 |
% |
|
|
137,258 |
|
|
4,277 |
|
6.28 |
% |
Total borrowed funds |
|
553,112 |
|
|
14,565 |
|
5.30 |
% |
|
|
411,951 |
|
|
8,181 |
|
4.00 |
% |
Total interest bearing liabilities |
$ |
5,115,568 |
|
$ |
71,233 |
|
2.80 |
% |
|
$ |
4,927,709 |
|
$ |
43,617 |
|
1.78 |
% |
Noninterest bearing
deposits |
|
935,564 |
|
|
|
|
|
|
984,592 |
|
|
|
|
Other liabilities |
|
92,581 |
|
|
|
|
|
|
80,690 |
|
|
|
|
Shareholders’ equity |
|
530,763 |
|
|
|
|
|
|
501,786 |
|
|
|
|
Total liabilities and shareholders’ equity |
$ |
6,674,476 |
|
|
|
|
|
$ |
6,494,777 |
|
|
|
|
Net interest income(2) |
|
|
$ |
73,700 |
|
|
|
|
|
$ |
79,420 |
|
|
Net interest spread(2) |
|
|
|
|
1.86 |
% |
|
|
|
|
|
2.30 |
% |
Net interest margin(2) |
|
|
|
|
2.37 |
% |
|
|
|
|
|
2.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Total deposits(5) |
$ |
5,498,020 |
|
$ |
56,668 |
|
2.07 |
% |
|
$ |
5,500,350 |
|
$ |
35,436 |
|
1.30 |
% |
Cost of funds(6) |
|
|
|
|
2.37 |
% |
|
|
|
|
|
1.49 |
% |
(1) Average
balance includes nonaccrual loans. |
(2) Tax
equivalent. The federal statutory tax rate utilized was 21%. |
(3) Interest
income includes net loan fees, loan purchase discount accretion and
tax equivalent adjustments. Net loan fees were $574 thousand and
$174 thousand for the six months ended June 30, 2024 and
June 30, 2023, respectively. Loan purchase discount accretion
was $2.4 million and $2.2 million for the six months ended
June 30, 2024 and June 30, 2023, respectively. Tax
equivalent adjustments were $1.9 million and $1.4 million
for the six months ended June 30, 2024 and June 30, 2023,
respectively. The federal statutory tax rate utilized was 21%. |
(4) Interest
income includes tax equivalent adjustments of $0.8 million and
$1.0 million for the six months ended June 30, 2024 and
June 30, 2023, respectively. The federal statutory tax rate
utilized was 21%. |
(5) Total
deposits is the sum of total interest-bearing deposits and
noninterest bearing deposits. The cost of total deposits is
calculated as annualized interest expense on deposits divided by
average total deposits. |
(6) Cost of funds
is calculated as annualized total interest expense divided by the
sum of average total deposits and borrowed funds. |
|
Non-GAAP Measures
This earnings release contains non-GAAP measures
for tangible common equity, tangible book value per share, tangible
common equity ratio, return on average tangible equity, net
interest margin (tax equivalent), core net interest margin, loan
yield (tax equivalent), core yield on loans, and efficiency ratio.
Management believes these measures provide investors with useful
information regarding the Company’s profitability, financial
condition and capital adequacy, consistent with how management
evaluates the Company’s financial performance. The following tables
provide a reconciliation of each non-GAAP measure to the most
comparable GAAP measure.
Tangible Common
Equity/Tangible Book Value |
|
|
|
|
|
|
|
|
|
|
per Share/Tangible
Common Equity Ratio |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(Dollars in thousands, except per share data) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
Total shareholders’
equity |
|
$ |
543,286 |
|
|
$ |
528,040 |
|
|
$ |
524,378 |
|
|
$ |
505,411 |
|
|
$ |
501,341 |
|
Intangible assets, net |
|
|
(97,327 |
) |
|
|
(100,649 |
) |
|
|
(86,546 |
) |
|
|
(87,987 |
) |
|
|
(89,446 |
) |
Tangible common equity |
|
$ |
445,959 |
|
|
$ |
427,391 |
|
|
$ |
437,832 |
|
|
$ |
417,424 |
|
|
$ |
411,895 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,581,658 |
|
|
$ |
6,748,015 |
|
|
$ |
6,427,540 |
|
|
$ |
6,467,818 |
|
|
$ |
6,521,489 |
|
Intangible assets, net |
|
|
(97,327 |
) |
|
|
(100,649 |
) |
|
|
(86,546 |
) |
|
|
(87,987 |
) |
|
|
(89,446 |
) |
Tangible assets |
|
$ |
6,484,331 |
|
|
$ |
6,647,366 |
|
|
$ |
6,340,994 |
|
|
$ |
6,379,831 |
|
|
$ |
6,432,043 |
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share |
|
$ |
34.44 |
|
|
$ |
33.53 |
|
|
$ |
33.41 |
|
|
$ |
32.21 |
|
|
$ |
31.96 |
|
Tangible book value per
share(1) |
|
$ |
28.27 |
|
|
$ |
27.14 |
|
|
$ |
27.90 |
|
|
$ |
26.60 |
|
|
$ |
26.26 |
|
Shares outstanding |
|
|
15,773,468 |
|
|
|
15,750,471 |
|
|
|
15,694,306 |
|
|
|
15,691,738 |
|
|
|
15,685,123 |
|
|
|
|
|
|
|
|
|
|
|
|
Common equity ratio |
|
|
8.25 |
% |
|
|
7.83 |
% |
|
|
8.16 |
% |
|
|
7.81 |
% |
|
|
7.69 |
% |
Tangible common equity
ratio(2) |
|
|
6.88 |
% |
|
|
6.43 |
% |
|
|
6.90 |
% |
|
|
6.54 |
% |
|
|
6.40 |
% |
(1) Tangible
common equity divided by shares outstanding. |
(2) Tangible
common equity divided by tangible assets. |
|
|
|
Three Months Ended |
|
Six Months Ended |
Return on Average
Tangible Equity |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in thousands) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income |
|
$ |
15,819 |
|
|
$ |
3,269 |
|
|
$ |
7,594 |
|
|
$ |
19,088 |
|
|
$ |
8,991 |
|
Intangible amortization, net
of tax(1) |
|
|
1,195 |
|
|
|
1,228 |
|
|
|
1,196 |
|
|
|
2,423 |
|
|
|
2,510 |
|
Tangible net income |
|
$ |
17,014 |
|
|
$ |
4,497 |
|
|
$ |
8,790 |
|
|
$ |
21,511 |
|
|
$ |
11,501 |
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders’
equity |
|
$ |
533,994 |
|
|
$ |
527,533 |
|
|
$ |
504,988 |
|
|
$ |
530,763 |
|
|
$ |
501,786 |
|
Average intangible assets,
net |
|
|
(99,309 |
) |
|
|
(95,296 |
) |
|
|
(90,258 |
) |
|
|
(97,302 |
) |
|
|
(91,125 |
) |
Average tangible equity |
|
$ |
434,685 |
|
|
$ |
432,237 |
|
|
$ |
414,730 |
|
|
$ |
433,461 |
|
|
$ |
410,661 |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity |
|
|
11.91 |
% |
|
|
2.49 |
% |
|
|
6.03 |
% |
|
|
7.23 |
% |
|
|
3.61 |
% |
Return on average tangible
equity(2) |
|
|
15.74 |
% |
|
|
4.18 |
% |
|
|
8.50 |
% |
|
|
9.98 |
% |
|
|
5.65 |
% |
(1) The combined
income tax rate utilized was 25%. |
(2) Annualized
tangible net income divided by average tangible equity. |
|
Net
Interest Margin, Tax Equivalent/Core Net Interest
Margin |
|
Three Months Ended |
|
Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in thousands) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net interest income |
|
$ |
36,347 |
|
|
$ |
34,731 |
|
|
$ |
36,962 |
|
|
$ |
71,078 |
|
|
$ |
77,038 |
|
Tax equivalent
adjustments: |
|
|
|
|
|
|
|
|
|
|
Loans(1) |
|
|
938 |
|
|
|
920 |
|
|
|
713 |
|
|
|
1,858 |
|
|
|
1,429 |
|
Securities(1) |
|
|
377 |
|
|
|
387 |
|
|
|
431 |
|
|
|
764 |
|
|
|
953 |
|
Net interest income, tax equivalent |
|
$ |
37,662 |
|
|
$ |
36,038 |
|
|
$ |
38,106 |
|
|
$ |
73,700 |
|
|
$ |
79,420 |
|
Loan purchase discount
accretion |
|
|
(1,261 |
) |
|
|
(1,152 |
) |
|
|
(984 |
) |
|
|
(2,413 |
) |
|
|
(2,173 |
) |
Core net interest income |
|
$ |
36,401 |
|
|
$ |
34,886 |
|
|
$ |
37,122 |
|
|
$ |
71,287 |
|
|
$ |
77,247 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin |
|
|
2.33 |
% |
|
|
2.25 |
% |
|
|
2.45 |
% |
|
|
2.29 |
% |
|
|
2.56 |
% |
Net interest margin, tax
equivalent(2) |
|
|
2.41 |
% |
|
|
2.33 |
% |
|
|
2.52 |
% |
|
|
2.37 |
% |
|
|
2.63 |
% |
Core net interest
margin(3) |
|
|
2.33 |
% |
|
|
2.26 |
% |
|
|
2.46 |
% |
|
|
2.29 |
% |
|
|
2.56 |
% |
Average interest earning
assets |
|
$ |
6,282,494 |
|
|
$ |
6,215,160 |
|
|
$ |
6,056,732 |
|
|
$ |
6,248,828 |
|
|
$ |
6,078,473 |
|
(1) The federal
statutory tax rate utilized was 21%. |
(2) Annualized
tax equivalent net interest income divided by average interest
earning assets. |
(3) Annualized
core net interest income divided by average interest earning
assets. |
|
|
|
Three Months Ended |
|
Six Months Ended |
Loan Yield, Tax
Equivalent / Core Yield on Loans |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in thousands) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Loan interest income, including fees |
|
$ |
61,643 |
|
|
$ |
57,947 |
|
|
$ |
49,726 |
|
|
$ |
119,590 |
|
|
$ |
96,216 |
|
Tax equivalent
adjustment(1) |
|
|
938 |
|
|
|
920 |
|
|
|
713 |
|
|
|
1,858 |
|
|
|
1,429 |
|
Tax equivalent loan interest income |
|
$ |
62,581 |
|
|
$ |
58,867 |
|
|
$ |
50,439 |
|
|
$ |
121,448 |
|
|
$ |
97,645 |
|
Loan purchase discount
accretion |
|
|
(1,261 |
) |
|
|
(1,152 |
) |
|
|
(984 |
) |
|
|
(2,413 |
) |
|
|
(2,173 |
) |
Core loan interest income |
|
$ |
61,320 |
|
|
$ |
57,715 |
|
|
$ |
49,455 |
|
|
$ |
119,035 |
|
|
$ |
95,472 |
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans |
|
|
5.61 |
% |
|
|
5.42 |
% |
|
|
4.98 |
% |
|
|
5.52 |
% |
|
|
4.93 |
% |
Yield on loans, tax
equivalent(2) |
|
|
5.69 |
% |
|
|
5.51 |
% |
|
|
5.05 |
% |
|
|
5.60 |
% |
|
|
5.00 |
% |
Core yield on loans(3) |
|
|
5.58 |
% |
|
|
5.40 |
% |
|
|
4.95 |
% |
|
|
5.49 |
% |
|
|
4.89 |
% |
Average loans |
|
$ |
4,419,697 |
|
|
$ |
4,298,216 |
|
|
$ |
4,003,717 |
|
|
$ |
4,358,957 |
|
|
$ |
3,935,791 |
|
(1) The federal
statutory tax rate utilized was 21%. |
(2) Annualized
tax equivalent loan interest income divided by average loans. |
(3) Annualized
core loan interest income divided by average loans. |
|
|
|
Three Months Ended |
|
Six Months Ended |
Efficiency
Ratio |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(Dollars in thousands) |
|
|
2024 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Total noninterest expense |
|
$ |
35,761 |
|
|
$ |
35,565 |
|
|
$ |
34,919 |
|
|
$ |
71,326 |
|
|
$ |
68,238 |
|
Amortization of
intangibles |
|
|
(1,593 |
) |
|
|
(1,637 |
) |
|
|
(1,594 |
) |
|
|
(3,230 |
) |
|
|
(3,346 |
) |
Merger-related expenses |
|
|
(854 |
) |
|
|
(1,314 |
) |
|
|
— |
|
|
|
(2,168 |
) |
|
|
(136 |
) |
Noninterest expense used for efficiency ratio |
|
$ |
33,314 |
|
|
$ |
32,614 |
|
|
$ |
33,325 |
|
|
$ |
65,928 |
|
|
$ |
64,756 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, tax
equivalent(1) |
|
$ |
37,662 |
|
|
$ |
36,038 |
|
|
$ |
38,106 |
|
|
$ |
73,700 |
|
|
$ |
79,420 |
|
Plus: Noninterest income |
|
|
21,554 |
|
|
|
9,750 |
|
|
|
8,746 |
|
|
|
31,304 |
|
|
|
4,700 |
|
Less: Investment securities
(losses) gains, net |
|
|
33 |
|
|
|
36 |
|
|
|
(2 |
) |
|
|
69 |
|
|
|
(13,172 |
) |
Net revenues used for efficiency ratio |
|
$ |
59,183 |
|
|
$ |
45,752 |
|
|
$ |
46,854 |
|
|
$ |
104,935 |
|
|
$ |
97,292 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio(2) |
|
|
56.29 |
% |
|
|
71.28 |
% |
|
|
71.13 |
% |
|
|
62.83 |
% |
|
|
66.56 |
% |
(1) The federal
statutory tax rate utilized was 21%. |
(2) Noninterest
expense adjusted for amortization of intangibles and merger-related
expenses divided by the sum of tax equivalent net interest income,
noninterest income and net investment securities gains. |
|
Category: Earnings
This news release may be downloaded from
https://www.midwestonefinancial.com/corporate-profile/default.aspx
Source: MidWestOne Financial Group, Inc.
Industry: Banks
Contact: |
|
|
|
Charles N. Reeves |
|
Barry S. Ray |
|
Chief Executive Officer |
|
Chief Financial Officer |
|
319.356.5800 |
|
319.356.5800 |
MidWestOne Financial (NASDAQ:MOFG)
Graphique Historique de l'Action
De Août 2024 à Sept 2024
MidWestOne Financial (NASDAQ:MOFG)
Graphique Historique de l'Action
De Sept 2023 à Sept 2024