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MidWestOne Financial Group, Inc. Reports Financial Results For the First Quarter of 2025

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MidWestOne Financial Group (MOFG) reported Q1 2025 financial results with net income of $15.1 million, or $0.73 per diluted share. The company achieved a return on average assets of 1.00% and an efficiency ratio of 59.38%.

Key metrics include net interest margin of 3.44%, with core net interest margin expanding 10 basis points to 3.36%. Asset quality improved with criticized loans ratio decreasing 54 bps to 5.47% and nonperforming assets ratio improving 7 bps to 0.33%. Tangible book value per share increased 4.4% to $23.36.

Total revenue was $57.6 million, down $2.2 million from Q4 2024 but up $13.1 million year-over-year. The CET1 capital ratio improved 24 bps to 10.97%, approaching the target range of 11.0%-11.50%. Loan growth remained flat due to pay-offs and market volatility.

MidWestOne Financial Group (MOFG) ha riportato i risultati finanziari del primo trimestre 2025 con un utile netto di 15,1 milioni di dollari, pari a 0,73 dollari per azione diluita. La società ha raggiunto un rendimento medio degli attivi dell'1,00% e un indice di efficienza del 59,38%.

I principali indicatori includono un margine di interesse netto del 3,44%, con il margine di interesse netto core che è cresciuto di 10 punti base arrivando al 3,36%. La qualità degli attivi è migliorata con il rapporto prestiti criticati che è diminuito di 54 punti base al 5,47% e il rapporto di attività non performanti che è migliorato di 7 punti base allo 0,33%. Il valore contabile tangibile per azione è aumentato del 4,4% raggiungendo 23,36 dollari.

I ricavi totali sono stati di 57,6 milioni di dollari, in calo di 2,2 milioni rispetto al quarto trimestre 2024, ma in crescita di 13,1 milioni su base annua. Il rapporto CET1 è migliorato di 24 punti base arrivando al 10,97%, avvicinandosi all'intervallo target dell'11,0%-11,50%. La crescita dei prestiti è rimasta stabile a causa di rimborsi e volatilità di mercato.

MidWestOne Financial Group (MOFG) reportó los resultados financieros del primer trimestre de 2025 con una utilidad neta de 15,1 millones de dólares, o 0,73 dólares por acción diluida. La compañía logró un retorno sobre activos promedio del 1,00% y una ratio de eficiencia del 59,38%.

Las métricas clave incluyen un margen de interés neto del 3,44%, con el margen de interés neto core expandiéndose 10 puntos básicos hasta 3,36%. La calidad de los activos mejoró con la ratio de préstamos criticados disminuyendo 54 puntos básicos hasta 5,47% y la ratio de activos no productivos mejorando 7 puntos básicos hasta 0,33%. El valor contable tangible por acción aumentó un 4,4% hasta 23,36 dólares.

Los ingresos totales fueron de 57,6 millones de dólares, una disminución de 2,2 millones respecto al cuarto trimestre de 2024, pero un aumento de 13,1 millones interanual. La ratio de capital CET1 mejoró 24 puntos básicos hasta 10,97%, acercándose al rango objetivo del 11,0%-11,50%. El crecimiento de préstamos se mantuvo estable debido a amortizaciones y volatilidad del mercado.

MidWestOne Financial Group (MOFG)는 2025년 1분기 재무 실적을 발표했으며, 순이익은 1,510만 달러, 희석 주당순이익은 0.73달러였습니다. 회사는 평균자산수익률 1.00%와 효율성 비율 59.38%를 달성했습니다.

주요 지표로는 3.44%의 순이자마진과 10베이시스포인트 상승한 3.36%의 핵심 순이자마진이 포함됩니다. 자산 품질은 문제 대출 비율이 54bp 감소한 5.47%, 부실 자산 비율이 7bp 개선된 0.33%로 향상되었습니다. 유형 장부가치는 주당 4.4% 증가한 23.36달러를 기록했습니다.

총 수익은 5,760만 달러로 2024년 4분기 대비 220만 달러 감소했으나 전년 동기 대비 1,310만 달러 증가했습니다. CET1 자본비율은 24bp 상승한 10.97%로 목표 범위인 11.0%-11.50%에 근접했습니다. 대출 성장은 상환과 시장 변동성으로 인해 정체되었습니다.

MidWestOne Financial Group (MOFG) a publié ses résultats financiers du premier trimestre 2025 avec un bénéfice net de 15,1 millions de dollars, soit 0,73 dollar par action diluée. La société a réalisé un rendement moyen des actifs de 1,00% et un ratio d'efficacité de 59,38 %.

Les indicateurs clés comprennent une marge d'intérêt nette de 3,44 %, avec une marge d'intérêt nette de base en hausse de 10 points de base à 3,36 %. La qualité des actifs s'est améliorée, le ratio de prêts critiqués ayant diminué de 54 points de base pour atteindre 5,47 %, et le ratio d'actifs non performants s'étant amélioré de 7 points de base à 0,33 %. La valeur comptable tangible par action a augmenté de 4,4 % pour atteindre 23,36 dollars.

Le revenu total s'est élevé à 57,6 millions de dollars, en baisse de 2,2 millions par rapport au quatrième trimestre 2024 mais en hausse de 13,1 millions sur un an. Le ratio de capital CET1 s'est amélioré de 24 points de base pour atteindre 10,97 %, se rapprochant de la fourchette cible de 11,0 % à 11,50 %. La croissance des prêts est restée stable en raison des remboursements et de la volatilité du marché.

MidWestOne Financial Group (MOFG) meldete die Finanzergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 15,1 Millionen US-Dollar bzw. 0,73 US-Dollar je verwässerter Aktie. Das Unternehmen erzielte eine Rendite auf das durchschnittliche Vermögen von 1,00% und eine Effizienzquote von 59,38%.

Wichtige Kennzahlen umfassen eine Nettomarge von 3,44%, wobei die Kern-Nettomarge um 10 Basispunkte auf 3,36% anstieg. Die Vermögensqualität verbesserte sich, da das Verhältnis kritischer Kredite um 54 Basispunkte auf 5,47% sank und das Verhältnis notleidender Vermögenswerte um 7 Basispunkte auf 0,33% verbessert wurde. Der materielle Buchwert je Aktie stieg um 4,4% auf 23,36 US-Dollar.

Der Gesamtumsatz betrug 57,6 Millionen US-Dollar, was einem Rückgang von 2,2 Millionen gegenüber dem vierten Quartal 2024 entspricht, jedoch einem Anstieg von 13,1 Millionen im Jahresvergleich. Die CET1-Kapitalquote verbesserte sich um 24 Basispunkte auf 10,97% und nähert sich dem Zielbereich von 11,0 % bis 11,50 %. Das Kreditwachstum blieb aufgrund von Rückzahlungen und Marktvolatilität stabil.

Positive
  • Net income of $15.1 million, up significantly from $3.27 million in Q1 2024
  • Core net interest margin expanded 10 basis points to 3.36%
  • Asset quality improved with criticized loans ratio down 54 bps to 5.47%
  • Tangible book value per share increased 4.4% to $23.36
  • CET1 capital ratio improved to 10.97%
  • Total revenue up 29% year-over-year to $57.6 million
Negative
  • Revenue decreased $2.2 million from Q4 2024
  • Net loan charge-offs increased to 29 basis points
  • Flat loan growth due to pay-offs and market volatility
  • Net income declined from $16.33 million in Q4 2024 to $15.1 million

Insights

MidWestOne delivers improved asset quality and capital ratios in Q1 2025 despite slight earnings decrease, maintaining above 1% ROA.

MidWestOne Financial Group's Q1 2025 results reveal a company successfully executing its strategic plan amid market volatility. Net income of $15.1 million ($0.73 per diluted share) represents a modest decrease from Q4 2024's $16.3 million but a dramatic 363% improvement from Q1 2024. The return on average assets reached 1.00% for the second consecutive quarter – a key profitability benchmark for banking institutions.

The bank's asset quality metrics show significant improvement, with the criticized loans ratio declining 54 basis points to 5.47% and nonperforming assets ratio improving 7 basis points to 0.33%. These improvements indicate strengthened risk management and reduced potential future credit losses.

Core net interest margin – a fundamental measure of banking profitability – expanded 10 basis points to 3.36%, demonstrating effective balance sheet management despite interest rate pressures. This expansion came from reduced funding costs, with interest-bearing liability costs declining 11 basis points to 2.41%.

Revenue decreased 4% quarter-over-quarter but increased 29% year-over-year, with net interest income showing particularly strong annual growth of 37%. Expenses were well-controlled with noninterest expenses declining 3% from the previous quarter.

Flat loan growth reflects market conditions rather than operational issues, with management citing payoffs and market volatility as primary factors. Net charge-offs increased to 29 basis points primarily due to a single previously identified and reserved commercial real estate loan.

Capital position continued strengthening with tangible book value per share increasing 4.4% to $23.36 and Common Equity Tier 1 capital ratio improving 24 basis points to 10.97%, approaching management's target range of 11.0-11.5%. This improved capital base provides both greater loss absorption capacity and future growth flexibility.

IOWA CITY, Iowa, April 24, 2025 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) ("we," "our," or the "Company") today reported results for the first quarter of 2025.

First Quarter 2025 Summary1

  • Net income of $15.1 million, or $0.73 per diluted common share.
    • Net interest margin (tax equivalent) was 3.44%;2 core net interest margin expanded 10 basis points ("bps") to 3.36%.2
    • Noninterest expenses were $36.3 million; efficiency ratio was 59.38%.2
    • Return on average assets of 1.00%.
  • Criticized loans ratio improved 54 bps to 5.47%; nonperforming assets ratio improved 7 bps to 0.33%.
  • Tangible book value per share of $23.36,2 an increase of 4.4%.
  • Common equity tier 1 ("CET1") capital ratio improved 24 bps to 10.97%.

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "We are pleased with the continued execution of our strategic plan initiatives despite a more uncertain economic environment. Our return on average assets eclipsed 1% for the second straight quarter driven by disciplined balance sheet management, core net interest margin expansion of 10 bps2 and solid expense control. Loan growth was flat in the quarter, somewhat softer than anticipated, due to pay-offs and latter quarter market volatility. The majority of our asset quality metrics improved significantly, led by reductions in nonperforming assets and criticized loans. Net charge-offs increased to 29 basis points, with the majority of the increase due to a partial charge-off on a previously reserved CRE loan as we prepare for resolution. Driven by earnings and lower accumulated other comprehensive loss, tangible book value per share increased 4.4% to $23.362 and the CET1 ratio grew to 10.97%, edging closer to our target range of 11.0%-11.50%.

Thank you to our team members who continued to execute well and serve our customers amidst market volatility. We are pleased with the transformation of our company and our solid foundation of increased capital, earnings power, asset quality, and a premium core deposit franchise position us well for uncertain economic times and the remainder of 2025.”

1 First Quarter Summary compares to the fourth 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
(Dollars in thousands, except per share amounts and as noted) March 31, December 31, March 31,
  2025   2024   2024 
Financial Results      
Revenue $57,575  $59,775  $44,481 
Credit loss expense  1,687   1,291   4,689 
Noninterest expense  36,293   37,372   35,565 
Net income  15,138   16,330   3,269 
Adjusted earnings(3)  15,301   16,112   4,504 
Per Common Share      
Diluted earnings per share $0.73  $0.78  $0.21 
Adjusted earnings per share(3)  0.73   0.77   0.29 
Book value  27.85   26.94   33.53 
Tangible book value(3)  23.36   22.37   27.14 
Balance Sheet & Credit Quality      
Loans In millions $4,304.2  $4,315.6  $4,414.6 
Investment securities In millions  1,305.5   1,328.4   1,862.2 
Deposits In millions  5,489.1   5,478.0   5,585.2 
Net loan charge-offs In millions  3.1   0.7   0.2 
Allowance for credit losses ratio  1.25%  1.28%  1.27%
Selected Ratios      
Return on average assets  1.00%  1.03%  0.20%
Net interest margin, tax equivalent(3)  3.44%  3.43%  2.33%
Return on average equity  10.74%  11.53%  2.49%
Return on average tangible equity(3)  13.75%  14.80%  4.18%
Efficiency ratio(3)  59.38%  59.06%  71.28%
             

REVENUE REVIEW

Revenue       Change Change
       1Q25 vs 1Q25 vs
(Dollars in thousands) 1Q25 4Q24 1Q24 4Q24 1Q24
Net interest income $          47,439  $        48,938 $       34,731 (3)% 37%
Noninterest income              10,136             10,837             9,750 (6)% 4%
Total revenue, net of interest expense $          57,575  $        59,775 $       44,481 (4)% 29%
               

Total revenue for the first quarter of 2025 decreased $2.2 million from the fourth quarter of 2024 due to lower net interest income and noninterest income during the quarter. When compared to the first quarter of 2024, total revenue increased $13.1 million, due to higher net interest income and higher noninterest income.

Net interest income of $47.4 million for the first quarter of 2025 decreased $1.5 million from the fourth quarter of 2024, due to lower earning asset volumes and yields, partially offset by lower funding volumes and costs. When compared to the first quarter of 2024, net interest income increased $12.7 million, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

The Company's tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 3.43%3 in the fourth quarter of 2024, driven by lower funding costs, partially offset by a decline in earning asset yields. Interest bearing liability costs during the first quarter of 2025 decreased 11 bps to 2.41%, due to reductions of short-term borrowings, interest bearing deposits, and long-term debt costs of 78 bps, 10 bps, and 7 bps, to 3.75%, 2.31%, and 6.41%, respectively, from the fourth quarter of 2024.

The Company's tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 2.33%3 in the first quarter of 2024, driven by higher earning asset yields and lower interest-bearing liability costs. Total earning assets yield increased 79 bps from the first quarter of 2024, primarily due to increases of 192 bps and 20 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 34 bps to 2.41%, due to short-term borrowing costs of 3.75%, long-term debt costs of 6.41%, and interest-bearing deposit costs of 2.31%, which decreased 107 bps, 45 bps, and 14 bps, respectively, from the first quarter of 2024.

3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

Noninterest Income       Change Change
      1Q25 vs 1Q25 vs
(In thousands)1Q25 4Q24 1Q24 4Q24 1Q24
Investment services and trust activities$3,544  $3,779 $3,503  (6)% 1%
Service charges and fees 2,131   2,159  2,144  (1)% (1)%
Card revenue 1,744   1,833  1,943  (5)% (10)%
Loan revenue 1,194   1,841  856  (35)% 39%
Bank-owned life insurance 1,057   719  660  47% 60%
Investment securities gains, net 33   161  36  (80)% (8)%
Other 433   345  608  26% (29)%
Total noninterest income$10,136  $10,837 $9,750  (6)% 4%
          
MSR adjustment (included above in Loan revenue)$(213) $164 $(368) (230)% (42)%
               

Noninterest income for the first quarter of 2025 decreased $0.7 million from the linked quarter, primarily due to declines of $0.6 million and $0.2 million in loan revenue and investment services and trust activities revenue, respectively. The decrease in loan revenue was reflective of an unfavorable change in the fair value of our mortgage servicing rights of $0.4 million, coupled with a decrease in Small Business Administration ("SBA") gain on sale revenue of $0.3 million. The decrease in investment services and trust activities revenue was driven by a decline in assets under administration due to market volatility. Partially offsetting these decreases was an increase of $0.3 million in bank-owned life insurance revenue, due primarily to $0.4 million of death benefit recognized in the first quarter of 2025.

Noninterest income for the first quarter of 2025 increased $0.4 million from the first quarter of 2024 due primarily to increases of $0.4 million and $0.3 million in bank-owned life insurance and loan revenue, respectively. The bank-owned life insurance increase was due primarily to the death benefit noted above. The increase in loan revenue was due primarily to the mortgage servicing right valuation adjustment, coupled with higher SBA gain on sale revenue and other loan income. Partially offsetting these increases were decreases of $0.2 million in each of card revenue and other revenue.

EXPENSE REVIEW

Noninterest Expense      Change Change
      1Q25 vs 1Q25 vs
(In thousands)1Q25 4Q24 1Q24 4Q24 1Q24
Compensation and employee benefits$21,212 $20,684 $20,930 3% 1%
Occupancy expense of premises, net 2,588  2,772  2,813 (7)% (8)%
Equipment 2,426  2,688  2,600 (10)% (7)%
Legal and professional 2,226  2,534  2,059 (12)% 8%
Data processing 1,698  1,719  1,360 (1)% 25%
Marketing 552  793  598 (30)% (8)%
Amortization of intangibles 1,408  1,449  1,637 (3)% (14)%
FDIC insurance 917  980  942 (6)% (3)%
Communications 159  154  196 3% (19)%
Foreclosed assets, net 74  56  358 32% (79)%
Other 3,033  3,543  2,072 (14)% 46%
     Total noninterest expense$36,293 $37,372 $35,565 (3)% 2%
              


Merger-related Expenses     
     
(In thousands)1Q25 4Q24 1Q24
Compensation and employee benefits$                —  $                — $              241
Occupancy expense of premises, net                   —                     —                  152
Equipment                   —                     21                  149
Legal and professional                   40                     —                  573
Data processing                   —                     10                    61
Marketing                   —                     —                    32
Communications                   —                     —                      1
Other                   —                     —                  105
Total merger-related expenses$                40  $                31 $           1,314
         

Noninterest expense for the first quarter of 2025 decreased $1.1 million from the linked quarter, primarily due to decreases in other noninterest expense, legal and professional, equipment, and occupancy expense of premises, net, of $0.5 million, $0.3 million, $0.3 million, and $0.2 million, respectively. The primary drivers of the decrease in other noninterest expense were declines in fraud loss expense of $0.3 million and customer deposit costs of $0.1 million. The $0.3 million decrease in legal and professional expense was primarily driven by lower litigation-related legal costs. The decrease in equipment of $0.3 million was primarily driven by fewer small equipment purchases, while the decrease in occupancy expense of premises, net was due primarily to lower property tax expense. Partially offsetting these decreases was an increase of $0.5 million in compensation and employee benefits which reflected an increase in equity compensation and payroll tax expenses.

Noninterest expense for the first quarter of 2025 increased $0.7 million from the first quarter of 2024 primarily due to increases in other noninterest expense, data processing, and compensation and employee benefits of $1.0 million, $0.3 million and $0.3 million, respectively. The increase in other noninterest expense was due primarily to customer deposit costs while the increase in data processing was driven core banking system costs. The increase in compensation and employee benefits was primarily driven by medical benefits expenses, wages expense, and incentive expense due to improved performance. Partially offsetting these identified increases was a decline of $1.3 million in merger-related expenses.

The Company's effective tax rate was 22.7% in the first quarter of 2025 and the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.

BALANCE SHEET REVIEW

Total assets were $6.25 billion at March 31, 2025, compared to $6.24 billion at December 31, 2024 and $6.75 billion at March 31, 2024. The increase from December 31, 2024 was primarily due to higher cash balances, partially offset by lower securities balances. Compared to March 31, 2024, the decrease was primarily driven by the sale of assets associated with our Florida banking operations in the second quarter of 2024 coupled with the pay-off of Bank Term Funding Program ("BTFP") borrowings with proceeds received from securities sales transactions in the fourth quarter of 2024.

Loans Held for InvestmentMarch 31, 2025 December 31, 2024 March 31, 2024 
(Dollars in thousands)Balance % of Total Balance % of Total Balance % of Total 
Commercial and industrial$1,140,138 26.5%$1,126,813 26.1%$1,105,718 25.0%
Agricultural131,409 3.1 119,051 2.8 113,029 2.6 
Commercial real estate            
Construction and development293,280 6.8 324,896 7.5 403,571 9.1 
Farmland180,633 4.2 182,460 4.2 184,109 4.2 
Multifamily421,204 9.8 423,157 9.8 409,504 9.3 
Other1,425,062 33.0 1,414,168 32.7 1,440,645 32.7 
Total commercial real estate2,320,179 53.8 2,344,681 54.2 2,437,829 55.3 
Residential real estate            
One-to-four family first liens471,688 11.0 477,150 11.1 495,408 11.2 
One-to-four family junior liens182,346 4.2 179,232 4.2 182,001 4.1 
Total residential real estate654,034 15.2 656,382 15.3 677,409 15.3 
Consumer58,424 1.4 68,700 1.6 80,661 1.8 
Loans held for investment, net of unearned income$4,304,184 100.0%$4,315,627 100.0%$4,414,646 100.0%
             
Total commitments to extend credit$1,080,300   $1,080,737   $1,230,612   


Loans held for investment, net of unearned income, decreased $11.4 million, or 0.3%, to $4.30 billion from $4.32 billion at December 31, 2024, primarily due to the reclassification of $11.0 million of credit card receivables to loans held for sale in the first quarter of 2025. Management expects the credit card portfolio sale to close in the fourth quarter of 2025.

Loans held for investment, net of unearned income, decreased $110.5 million, or 2.5%, to $4.30 billion from $4.41 billion at March 31, 2024. The decrease from the first quarter of 2024 was driven primarily by the sale of loans associated with our Florida banking operations in the second quarter of 2024, partially offset by organic loan growth and higher line of credit usage.

Investment SecuritiesMarch 31, 2025 December 31, 2024 March 31, 2024 
(Dollars in thousands)Balance % of Total Balance % of Total Balance % of Total 
Available for sale$1,305,530 100.0%$1,328,433 100.0%$797,230 42.8%
Held to maturity— —%— —%1,064,939 57.2%
Total investment securities$1,305,530   $1,328,433   $1,862,169   


Investment securities at March 31, 2025 were $1.31 billion, decreasing $22.9 million from December 31, 2024 and decreasing $556.6 million from March 31, 2024. The decrease from the fourth quarter of 2024 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the first quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities. 

DepositsMarch 31, 2025 December 31, 2024 March 31, 2024 
(Dollars in thousands)Balance % of Total Balance % of Total Balance % of Total 
Noninterest bearing deposits$903,714 16.5%$951,423 17.4%$920,764 16.5%
Interest checking deposits1,283,328 23.3 1,258,191 22.9 1,349,823 24.2 
Money market deposits1,002,066 18.3 1,053,988 19.2 1,122,717 20.1 
Savings deposits877,348 16.0 820,549 15.0 728,276 13.0 
Time deposits of $250 and under818,012 14.9 826,793 15.1 787,851 14.1 
Total core deposits4,884,468 89.0 4,910,944 89.6 4,909,431 87.9 
Brokered time deposits200,000 3.6 200,000 3.7 205,000 3.7 
Time deposits over $250404,674 7.4 367,038 6.7 470,805 8.4 
Total deposits$5,489,142 100.0%$5,477,982 100.0%$5,585,236 100.0%


Total deposits increased $11.2 million, or 0.2%, to $5.49 billion, from $5.48 billion at December 31, 2024. Total deposits decreased $96.1 million, or 1.7%, from $5.59 billion at March 31, 2024, primarily due to the deposits transferred in the sale of our Florida banking operations, partially offset by organic deposit growth in our targeted metropolitan markets.

Borrowed FundsMarch 31, 2025 December 31, 2024 March 31, 2024 
(Dollars in thousands)Balance % of Total Balance % of Total Balance % of Total 
Short-term borrowings$1,482 1.3%$3,186 2.7%$422,988 77.6%
Long-term debt111,398 98.7%113,376 97.3%122,066 22.4%
Total borrowed funds$112,880   $116,562   $545,054   


Borrowed funds were $112.9 million at March 31, 2025, a decrease of $3.7 million from December 31, 2024 and a decrease of $432.2 million from March 31, 2024. The decrease compared to the linked quarter was due to lower customer repurchase agreement volumes and scheduled payments on long-term debt. The decrease compared to March 31, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and $13.0 million of a revolving credit facility, as well as scheduled payments on long-term debt.

CapitalMarch 31, December 31, March 31,
(Dollars in thousands)2025 (1)  2024   2024 
Total shareholders' equity$579,625  $559,696  $528,040 
Accumulated other comprehensive loss (63,098)  (72,762)  (60,804)
MidWestOneFinancial Group, Inc. Consolidated     
Tier 1 leverage to average assets ratio 9.50%  9.15%  8.16%
Common equity tier 1 capital to risk-weighted assets ratio 10.97%  10.73%  8.98%
Tier 1 capital to risk-weighted assets ratio 11.84%  11.59%  9.75%
Total capital to risk-weighted assets ratio 14.34%  14.07%  11.97%
MidWestOneBank     
Tier 1 leverage to average assets ratio 10.42%  10.12%  9.36%
Common equity tier 1 capital to risk-weighted assets ratio 13.02%  12.86%  11.20%
Tier 1 capital to risk-weighted assets ratio 13.02%  12.86%  11.20%
Total capital to risk-weighted assets ratio 14.21%  14.02%  12.25%
(1) Regulatory capital ratios for March 31, 2025 are preliminary     
      

Total shareholders' equity at March 31, 2025 increased $19.9 million from December 31, 2024, driven primarily by an increase in retained earnings and a decrease in accumulated other comprehensive loss. Total shareholders' equity at March 31, 2025 increased $51.6 million from March 31, 2024, primarily due to increases in common stock and additional pain-in-capital stemming from the common equity capital raise in the third quarter of 2024, partially offset by a decrease in retained earnings.

On April 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable June 16, 2025, to shareholders of record at the close of business on June 2, 2025.

No common shares were repurchased by the Company during the period December 31, 2024 through March 31, 2025 or for the subsequent period through April 24, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. As of March 31, 2025, $15.0 million remained available under this program.

CREDIT QUALITY REVIEW

Credit QualityAs of or For the Three Months Ended
March 31, December 31, March 31,
(Dollars in thousands) 2025   2024   2024 
Credit loss expense related to loans$1,787  $1,891  $4,589 
Net charge-offs 3,087   691   189 
Allowance for credit losses 53,900   55,200   55,900 
Pass$4,068,707  $4,056,361  $4,098,102 
Special Mention 121,494   148,462   152,604 
Classified 113,983   110,804   163,940 
Criticized 235,477   259,266   316,544 
Loans greater than 30 days past due and accruing$6,119  $9,378  $8,772 
Nonperforming loans$17,470  $21,847  $29,267 
Nonperforming assets 20,889   25,184   33,164 
Net charge-off ratio(1) 0.29%  0.06%  0.02%
Classified loans ratio(2) 2.65%  2.57%  3.71%
Criticized loans ratio(3) 5.47%  6.01%  7.17%
Nonperforming loans ratio(4) 0.41%  0.51%  0.66%
Nonperforming assets ratio(5) 0.33%  0.40%  0.49%
Allowance for credit losses ratio(6) 1.25%  1.28%  1.27%
Allowance for credit losses to nonaccrual loans ratio(7) 309.47%  254.32%  197.53%
(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) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(6) 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.
(7) 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.
 

Nonperforming loans and nonperforming assets ratios improved 10 bps and 7 bps, to 0.41% and 0.33%, respectively, compared to the linked quarter. In addition, special mention loan balances decreased $27.0 million, or 18%, while classified loan balances remained relatively stable with an increase of $3.2 million, or 3%. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios improved 25 bps and 16 bps, respectively, while the classified loan ratio improved 106 bps. Special mention loan balances decreased $31.1 million, or 20%. The net charge-off ratio increased 23 bps from the linked quarter and 27 bps from the same period in the prior year.

As of March 31, 2025, the allowance for credit losses was $53.9 million and the allowance for credit losses ratio was 1.25%, compared with $55.2 million and 1.28%, respectively, at December 31, 2024. Credit loss expense of $1.7 million in the first quarter of 2025 primarily reflected additional reserve on pooled loans, offset by a reduction of $0.1 million in the reserve for unfunded loan commitments.

Nonperforming Loans Roll ForwardNonaccrual 90+ Days Past Due
& Still Accruing		 Total
(Dollars in thousands)  
Balance at December 31, 2024$21,705 $142 $21,847
Loans placed on nonaccrual or 90+ days past due & still accruing3,121 225 3,346
Proceeds related to repayment or sale(4,158) — (4,158)
Loans returned to accrual status or no longer past due(336) (49) (385)
Charge-offs(2,774) (259) (3,033)
Transfers to foreclosed assets(141) — (141)
Transfer to nonaccrual— (6) (6)
Balance at March 31, 2025$17,417 $53 $17,470


CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=29396e9f&confId=80376. 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 527448 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until July 24, 2025 by calling 1-866-813-9403 and using the replay access code of 162684. 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 effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto 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; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) 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; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East 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; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) 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; (20) changes in the business and economic conditions generally and in the financial services industry, and 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 prior bank failures; (21) 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 or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), 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; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) 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

 March 31, December 31, September 30, June 30, March 31,
(In thousands) 2025   2024   2024   2024   2024 
ASSETS         
Cash and due from banks$           68,545   $           71,803  $           72,173  $           66,228  $           68,430 
Interest earning deposits in banks            182,360               133,092              129,695                35,340                29,328 
Federal funds sold                     —                        —                       —                       —                        4 
Total cash and cash equivalents            250,905               204,895              201,868              101,568                97,762 
Debt securities available for sale at fair value         1,305,530            1,328,433           1,623,104              771,034              797,230 
Held to maturity securities at amortized cost                     —                        —                       —           1,053,080           1,064,939 
Total securities         1,305,530            1,328,433           1,623,104           1,824,114           1,862,169 
Loans held for sale              13,836                      749                  3,283                  2,850                  2,329 
Gross loans held for investment         4,315,546            4,328,413           4,344,559           4,304,619           4,433,258 
Unearned income, net            (11,362)             (12,786)             (15,803)             (17,387)             (18,612)
Loans held for investment, net of unearned income         4,304,184            4,315,627           4,328,756           4,287,232           4,414,646 
Allowance for credit losses            (53,900)             (55,200)             (54,000)             (53,900)             (55,900)
Total loans held for investment, net         4,250,284            4,260,427           4,274,756           4,233,332           4,358,746 
Premises and equipment, net              90,031                 90,851                90,750                91,793                95,986 
Goodwill              69,788                 69,788                69,788                69,388                71,118 
Other intangible assets, net              23,611                 25,019                26,469                27,939                29,531 
Foreclosed assets, net                3,419                   3,337                  3,583                  6,053                  3,897 
Other assets            246,990               252,830              258,881              224,621              226,477 
Total assets$      6,254,394   $      6,236,329  $      6,552,482  $      6,581,658  $      6,748,015 
LIABILITIES              
Noninterest bearing deposits$         903,714   $         951,423  $         917,715  $         882,472  $         920,764 
Interest bearing deposits         4,585,428            4,526,559           4,451,012           4,529,947           4,664,472 
Total deposits         5,489,142            5,477,982           5,368,727           5,412,419           5,585,236 
Short-term borrowings                1,482                   3,186              410,630              414,684              422,988 
Long-term debt            111,398               113,376              115,051              114,839              122,066 
Other liabilities              72,747                 82,089                95,836                96,430                89,685 
Total liabilities         5,674,769            5,676,633           5,990,244           6,038,372           6,219,975 
SHAREHOLDERS' EQUITY              
Common stock              21,580                 21,580                21,580                16,581                16,581 
Additional paid-in capital            414,258               414,987              414,965              300,831              300,845 
Retained earnings            227,790               217,776              206,490              306,030              294,066 
Treasury stock            (20,905)             (21,885)             (21,955)             (22,021)             (22,648)
Accumulated other comprehensive loss            (63,098)             (72,762)             (58,842)             (58,135)             (60,804)
Total shareholders' equity            579,625               559,696              562,238              543,286              528,040 
Total liabilities and shareholders' equity$      6,254,394   $      6,236,329  $      6,552,482  $      6,581,658  $      6,748,015 
                    

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

 Three Months Ended
 March 31, December 31, September 30, June 30, March 31,
(In thousands, except per share data) 2025  2024  2024   2024  2024
Interest income         
Loans, including fees$           59,462  $           62,458 $           62,521  $           61,643 $           57,947
Taxable investment securities              13,327                11,320                8,779                 9,228                9,460
Tax-exempt investment securities                  703                    728                1,611                 1,663                1,710
Other               1,247                 3,761                   785                    242                   418
Total interest income              74,739                78,267               73,696                72,776               69,535
Interest expense         
Deposits              25,484                27,324               29,117                28,942               27,726
Short-term borrowings                    25                    115                5,043                 5,409                4,975
Long-term debt               1,791                 1,890                2,015                 2,078                2,103
Total interest expense              27,300                29,329               36,175                36,429               34,804
Net interest income              47,439                48,938               37,521                36,347               34,731
Credit loss expense               1,687                 1,291                1,535                 1,267                4,689
Net interest income after credit loss expense              45,752                47,647               35,986                35,080               30,042
Noninterest income         
Investment services and trust activities               3,544                 3,779                3,410                 3,504                3,503
Service charges and fees               2,131                 2,159                2,170                 2,156                2,144
Card revenue               1,744                 1,833                1,935                 1,907                1,943
Loan revenue               1,194                 1,841                   760                 1,525                   856
Bank-owned life insurance               1,057                    719                   879                    668                   660
Investment securities gains (losses), net                    33                    161           (140,182)                     33                     36
Other                  433                    345                   640                11,761                   608
Total noninterest income (loss)              10,136                10,837           (130,388)               21,554                9,750
Noninterest expense         
Compensation and employee benefits              21,212                20,684               19,943                20,985               20,930
Occupancy expense of premises, net               2,588                 2,772                2,443                 2,435                2,813
Equipment               2,426                 2,688                2,486                 2,530                2,600
Legal and professional               2,226                 2,534                2,261                 2,253                2,059
Data processing               1,698                 1,719                1,580                 1,645                1,360
Marketing                  552                    793                   619                    636                   598
Amortization of intangibles               1,408                 1,449                1,470                 1,593                1,637
FDIC insurance                  917                    980                   923                 1,051                   942
Communications                  159                    154                   159                    191                   196
Foreclosed assets, net                    74                      56                   330                    138                   358
Other               3,033                 3,543                3,584                 2,304                2,072
Total noninterest expense              36,293                37,372               35,798                35,761               35,565
Income (loss) before income tax expense              19,595                21,112           (130,200)               20,873                4,227
Income tax expense (benefit)               4,457                 4,782             (34,493)                5,054                   958
Net income (loss)$           15,138  $           16,330 $         (95,707) $           15,819 $            3,269
          
Earnings (loss) per common share         
Basic$              0.73  $              0.79 $             (6.05) $              1.00 $              0.21
Diluted$              0.73  $              0.78 $             (6.05) $              1.00 $              0.21
Weighted average basic common shares outstanding              20,797                20,776               15,829                15,763               15,723
Weighted average diluted common shares outstanding              20,849                20,851               15,829                15,781               15,774
Dividends paid per common share$           0.2425  $           0.2425 $           0.2425  $           0.2425 $           0.2425
                

MIDWESTONE FINANCIAL GROUP, INC.
FINANCIAL STATISTICS

 As of or for the Three Months Ended
 March 31, December 31, March 31,
(Dollars in thousands, except per share amounts) 2025   2024   2024 
Earnings:     
Net interest income$47,439  $48,938  $34,731 
Noninterest income 10,136   10,837   9,750 
Total revenue, net of interest expense 57,575   59,775   44,481 
Credit loss expense 1,687   1,291   4,689 
Noninterest expense 36,293   37,372   35,565 
Income before income tax expense 19,595   21,112   4,227 
Income tax expense 4,457   4,782   958 
Net income$15,138  $16,330  $3,269 
Adjusted earnings(1)$15,301  $16,112  $4,504 
Per Share Data:     
Diluted earnings$0.73  $0.78  $0.21 
Adjusted earnings(1) 0.73   0.77   0.29 
Book value 27.85   26.94   33.53 
Tangible book value(1) 23.36   22.37   27.14 
Ending Balance Sheet:     
Total assets$6,254,394  $6,236,329  $6,748,015 
Loans held for investment, net of unearned income 4,304,184   4,315,627   4,414,646 
Total securities 1,305,530   1,328,433   1,862,169 
Total deposits 5,489,142   5,477,982   5,585,236 
Short-term borrowings 1,482   3,186   422,988 
Long-term debt 111,398   113,376   122,066 
Total shareholders' equity 579,625   559,696   528,040 
Average Balance Sheet:     
Average total assets$6,168,546  $6,279,975  $6,635,379 
Average total loans 4,290,710   4,307,583   4,298,216 
Average total deposits 5,398,819   5,464,900   5,481,114 
Financial Ratios:     
Return on average assets 1.00%  1.03%  0.20%
Return on average equity 10.74%  11.53%  2.49%
Return on average tangible equity(1) 13.75%  14.80%  4.18%
Efficiency ratio(1) 59.38%  59.06%  71.28%
Net interest margin, tax equivalent(1) 3.44%  3.43%  2.33%
Loans to deposits ratio 78.41%  78.78%  79.04%
CET1 Ratio 10.97%  10.73%  8.98%
Common equity ratio 9.27%  8.97%  7.83%
Tangible common equity ratio(1) 7.89%  7.57%  6.43%
Credit Risk Profile:     
Total nonperforming loans$17,470  $21,847  $29,267 
Nonperforming loans ratio 0.41%  0.51%  0.66%
Total nonperforming assets$20,889  $25,184  $33,164 
Nonperforming assets ratio 0.33%  0.40%  0.49%
Net charge-offs$3,087  $691  $189 
Net charge-off ratio 0.29%  0.06%  0.02%
Allowance for credit losses$53,900  $55,200  $55,900 
Allowance for credit losses ratio 1.25%  1.28%  1.27%
Allowance for credit losses to nonaccrual ratio 309.47%  254.32%  197.53%
      
(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
 March 31, 2025 December 31, 2024 March 31, 2024
(Dollars in thousands)Average
Balance		 Interest
Income/
Expense		 Average
Yield/
Cost		 Average
Balance		 Interest
Income/
Expense		 Average
Yield/
Cost		 Average Balance Interest
Income/
Expense		 Average
Yield/
Cost
ASSETS                 
Loans, including fees (1)(2)(3)$4,290,710 $60,443 5.71% $4,307,583 $63,443 5.86% $4,298,216 $58,867 5.51%
Taxable investment securities1,207,844 13,327 4.47% 1,080,716 11,320 4.17% 1,557,603 9,460 2.44%
Tax-exempt investment securities (2)(4)105,563 865 3.32% 109,183 896 3.26% 328,736 2,097 2.57%
Total securities held for investment(2)1,313,407 14,192 4.38% 1,189,899 12,216 4.08% 1,886,339 11,557 2.46%
Other124,133 1,247 4.07% 309,904 3,761 4.83% 30,605 418 5.49%
Total interest earning assets(2)$5,728,250 $75,882 5.37% $5,807,386 $79,420 5.44% $6,215,160 $70,842 4.58%
Other assets440,296     472,589     420,219    
Total assets$6,168,546     $6,279,975     $6,635,379    
LIABILITIES AND SHAREHOLDERS’ EQUITY                 
Interest checking deposits$1,240,586 $2,127 0.70% $1,252,481 $2,205 0.70% $1,301,470 $2,890 0.89%
Money market deposits1,002,743 6,333 2.56% 1,046,571 7,197 2.74% 1,102,543 8,065 2.94%
Savings deposits835,731 3,057 1.48% 799,931 3,158 1.57% 694,143 2,047 1.19%
Time deposits1,397,595 13,967 4.05% 1,410,542 14,764 4.16% 1,446,981 14,724 4.09%
Total interest bearing deposits4,476,655 25,484 2.31% 4,509,525 27,324 2.41% 4,545,137 27,726 2.45%
Securities sold under agreements to repurchase2,705 5 0.75% 3,640 8 0.87% 5,330 11 0.83%
Other short-term borrowings— 20 —% 6,465 107 6.58% 409,525 4,964 4.88%
Total short-term borrowings2,705 25 3.75% 10,105 115 4.53% 414,855 4,975 4.82%
Long-term debt113,364 1,791 6.41% 116,018 1,890 6.48% 123,266 2,103 6.86%
Total borrowed funds116,069 1,816 6.35% 126,123 2,005 6.32% 538,121 7,078 5.29%
Total interest bearing liabilities$4,592,724 $27,300 2.41% $4,635,648 $29,329 2.52% $5,083,258 $34,804 2.75%
Noninterest bearing deposits922,164     955,375     935,977    
Other liabilities82,280     125,536     88,611    
Shareholders’ equity571,378     563,416     527,533    
Total liabilities and shareholders’ equity$6,168,546     $6,279,975     $6,635,379    
Net interest income(2)  $48,582     $50,091     $36,038  
Net interest spread(2)    2.96%     2.92%     1.83%
Net interest margin(2)    3.44%     3.43%     2.33%
                  
Total deposits(5)$5,398,819 $25,484 1.91% $5,464,900 $27,324 1.99% $5,481,114 $27,726 2.03%
Cost of funds(6)    2.01%     2.09%     2.33%


(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 $256 thousand, $456 thousand, and $237 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Loan purchase discount accretion was $1.2 million, $2.5 million, and $1.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Tax equivalent adjustments were $981 thousand, $985 thousand, and $920 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
(4)Interest income includes tax equivalent adjustments of $162 thousand, $168 thousand, and $387 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, 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, efficiency ratio, adjusted earnings and adjusted earnings per share. 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 March 31, December 31, September 30, June 30, March 31,
(Dollars in thousands, except per share data)  2025   2024   2024   2024   2024 
Total shareholders’ equity $579,625  $559,696  $562,238  $543,286  $528,040 
Intangible assets, net  (93,399)  (94,807)  (96,257)  (97,327)  (100,649)
Tangible common equity $486,226  $464,889  $465,981  $445,959  $427,391 
           
Total assets $6,254,394  $6,236,329  $6,552,482  $6,581,658  $6,748,015 
Intangible assets, net  (93,399)  (94,807)  (96,257)  (97,327)  (100,649)
Tangible assets $6,160,995  $6,141,522  $6,456,225  $6,484,331  $6,647,366 
           
Book value per share $27.85  $26.94  $27.06  $34.44  $33.53 
Tangible book value per share(1) $23.36  $22.37  $22.43  $28.27  $27.14 
Shares outstanding  20,815,715   20,777,485   20,774,919   15,773,468   15,750,471 
           
Common equity ratio  9.27%  8.97%  8.58%  8.25%  7.83%
Tangible common equity ratio(2)  7.89%  7.57%  7.22%  6.88%  6.43%
                     

(1) Tangible common equity divided by shares outstanding. 
(2) Tangible common equity divided by tangible assets.  

  Three Months Ended
Return on Average Tangible Equity March 31, December 31, March 31,
(Dollars in thousands)  2025   2024   2024 
Net income $15,138  $16,330  $3,269 
Intangible amortization, net of tax(1)  1,047   1,075   1,228 
Tangible net income $16,185  $17,405  $4,497 
       
Average shareholders’ equity $571,378  $563,416  $527,533 
Average intangible assets, net  (94,169)  (95,498)  (95,296)
Average tangible equity $477,209  $467,918  $432,237 
       
Return on average equity  10.74%  11.53%  2.49%
Return on average tangible equity(2)  13.75%  14.80%  4.18%
             

(1) The income tax rate utilized was the blended marginal tax rate.  
(2) Annualized tangible net income divided by average tangible equity.

Net Interest Margin, Tax Equivalent/
Core Net Interest Margin		 Three Months Ended
 March 31, December 31, March 31,
(Dollars in thousands)  2025   2024   2024 
Net interest income $47,439  $48,938  $34,731 
Tax equivalent adjustments:      
Loans(1)  981   985   920 
Securities(1)  162   168   387 
Net interest income, tax equivalent $48,582  $50,091  $36,038 
Loan purchase discount accretion  (1,166)  (2,496)  (1,152)
Core net interest income $47,416  $47,595  $34,886 
       
Net interest margin  3.36%  3.35%  2.25%
Net interest margin, tax equivalent(2)  3.44%  3.43%  2.33%
Core net interest margin(3)  3.36%  3.26%  2.26%
Average interest earning assets $5,728,250  $5,807,386  $6,215,160 
             

(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
Loan Yield, Tax Equivalent / Core Yield on Loans March 31, December 31, March 31,
(Dollars in thousands)  2025   2024   2024 
Loan interest income, including fees  $59,462  $62,458  $57,947 
Tax equivalent adjustment(1)   981   985   920 
Tax equivalent loan interest income  $60,443  $63,443  $58,867 
Loan purchase discount accretion   (1,166)  (2,496)  (1,152)
Core loan interest income  $59,277  $60,947  $57,715 
        
Yield on loans   5.62%  5.77%  5.42%
Yield on loans, tax equivalent(2)   5.71%  5.86%  5.51%
Core yield on loans(3)   5.60%  5.63%  5.40%
Average loans  $4,290,710  $4,307,583  $4,298,216 
              

(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
Efficiency Ratio March 31, December 31, March 31,
(Dollars in thousands)  2025   2024   2024 
Total noninterest expense  $36,293  $37,372  $35,565 
Amortization of intangibles   (1,408)  (1,449)  (1,637)
Merger-related expenses   (40)  (31)  (1,314)
Noninterest expense used for efficiency ratio  $34,845  $35,892  $32,614 
        
Net interest income, tax equivalent(1)  $48,582  $50,091  $36,038 
Plus: Noninterest income   10,136   10,837   9,750 
Less: Investment securities gains, net   33   161   36 
Net revenues used for efficiency ratio  $58,685  $60,767  $45,752 
        
Efficiency ratio (2)   59.38%  59.06%  71.28%
              

(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.  

   Three Months Ended
Adjusted Earnings  March 31, December 31, March 31,
(Dollars in thousands, except per share data)  2025   2024  2024 
Net income  $        15,138   $        16,330 $          3,269 
Less: Investment securities gains, net of tax(1)                    25                   119                   27 
Less: Mortgage servicing rights (loss) gain, net of tax(1)                 (158)                 122                (276)
Plus: Merger-related expenses, net of tax(1)                    30                     23                 986 
Adjusted earnings  $        15,301   $        16,112 $          4,504 
        
Weighted average diluted common shares outstanding             20,849              20,851            15,774 
        
Earnings per common share - diluted  $            0.73   $            0.78 $            0.21 
Adjusted earnings per common share(2)  $            0.73   $            0.77 $            0.29 
             

(1) The income tax rate utilized was the blended marginal tax rate.      
(2) Adjusted earnings divided by weighted average diluted common shares outstanding.  

Category: Earnings

This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.

Source: MidWestOne Financial Group, Inc.

Industry: Banks

Contact:

 Charles N. ReevesBarry S. Ray
 Chief Executive OfficerChief Financial Officer
 319.356.5800  319.356.5800
   

FAQ

What was MOFG's earnings per share in Q1 2025?

MOFG reported earnings of $0.73 per diluted share in Q1 2025.

How did MOFG's net interest margin perform in Q1 2025?

The net interest margin was 3.44%, with core net interest margin expanding 10 basis points to 3.36%.

What was MOFG's total revenue in Q1 2025 compared to previous quarters?

Total revenue was $57.6 million, down from $59.8 million in Q4 2024 but up from $44.5 million in Q1 2024.

How did MOFG's asset quality metrics change in Q1 2025?

Asset quality improved with criticized loans ratio decreasing 54 bps to 5.47% and nonperforming assets ratio improving 7 bps to 0.33%.

What was MOFG's capital position at the end of Q1 2025?

The CET1 capital ratio improved 24 bps to 10.97%, approaching the target range of 11.0%-11.50%.
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Midwestone

NASDAQ:MOFG

MOFG Rankings

#1887 Ranked by Market Cap
#1024 Ranked by Dividends

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MOFG Stock Data

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80.65%
1.15%
Banks - Regional
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