Second Quarter Summary1
- Completed acquisition of Iowa First Bancshares Corp ("IOFB").
- Annualized adjusted core loan growth (excluding IOFB and PPP) of 10.53%2.
- Nonperforming assets ratio improved 10 basis points (bps) to 0.43%; net charge-off ratio improved 25 bps to 0.03%.
- Net interest margin (tax equivalent) expanded 8 bps to 2.87%2.
- Net income for the second quarter was $12.6 million, or $0.80 per diluted common share.
- Total revenue, net of interest expense, of $52.1 million, including a $1.4 million bargain purchase gain recognized in connection with the IOFB acquisition.
- Credit loss expense of $3.3 million stemming from the acquired IOFB loan portfolio.
- Noninterest expense of $32.1 million, including $0.9 million of merger-related expenses.
- Effective tax rate of 24.5%, reflecting a $0.8 million charge related to an Iowa tax law change.
- Efficiency ratio improved to 56.57%2.
IOWA CITY, Iowa, July 28, 2022 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported net income for the second quarter of 2022 of $12.6 million, or $0.80 per diluted common share, compared to net income of $13.9 million, or $0.88 per diluted common share, for the linked quarter.
CEO COMMENTARY
Charles Funk, Chief Executive Officer of the Company, commented, "This was a quarter of solid progress for MidWestOne. Annualized adjusted core loan growth of 10.53%, which excludes the impact from the acquisition of IOFB and PPP, represents strong work by our bankers. Our asset quality continues to show improvement, with total non-performing loans falling to 0.76% of total loans and net charge-offs falling to 0.03% of total loans. The 8 bps increase in our tax equivalent net interest margin was also a key to the Company's performance this past quarter.
We were pleased to enter the Muscatine, Iowa market and expand our Fairfield presence with the close of the Iowa First Bancshares transaction."
________________
1 Second Quarter Summary compares to the first quarter of 2022 (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.
| FINANCIAL HIGHLIGHTS | Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (Dollars in thousands, except per share amounts) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Net interest income | $ | 39,725 | $ | 37,336 | $ | 38,505 | $ | 77,061 | $ | 77,122 | ||||||||||
| Noninterest income | 12,347 | 11,644 | 10,218 | 23,991 | 22,042 | |||||||||||||||
| Total revenue, net of interest expense | 52,072 | 48,980 | 48,723 | 101,052 | 99,164 | |||||||||||||||
| Credit loss expense (benefit) | 3,282 | — | (2,144 | ) | 3,282 | (6,878 | ) | |||||||||||||
| Noninterest expense | 32,082 | 31,643 | 28,670 | 63,725 | 56,370 | |||||||||||||||
| Income before income tax expense | 16,708 | 17,337 | 22,197 | 34,045 | 49,672 | |||||||||||||||
| Income tax expense | 4,087 | 3,442 | 4,926 | 7,529 | 10,753 | |||||||||||||||
| Net income | $ | 12,621 | $ | 13,895 | $ | 17,271 | $ | 26,516 | $ | 38,919 | ||||||||||
| Diluted earnings per share | $ | 0.80 | $ | 0.88 | $ | 1.08 | $ | 1.69 | $ | 2.43 | ||||||||||
| Return on average assets | 0.83 | % | 0.95 | % | 1.18 | % | 0.89 | % | 1.38 | % | ||||||||||
| Return on average equity | 10.14 | % | 10.74 | % | 13.24 | % | 10.44 | % | 15.10 | % | ||||||||||
| Return on average tangible equity(1) | 13.13 | % | 13.56 | % | 16.75 | % | 13.35 | % | 19.10 | % | ||||||||||
| Efficiency ratio(1) | 56.57 | % | 60.46 | % | 54.83 | % | 58.46 | % | 52.76 | % | ||||||||||
| (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. | ||||||||||||||||||||
IOWA FIRST BANCSHARES CORP. ACQUISITION
On June 9, 2022, we completed our acquisition of IOFB, the parent company of First National Bank of Muscatine (“FNBM”) and First National Bank in Fairfield (“FNBF”). 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 June 9, 2022 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 June 9, 2022 | |||||||
| Merger consideration | ||||||||
| Cash consideration | $ | 46,672 | ||||||
| Identifiable net assets acquired, at fair value | ||||||||
| Assets acquired | ||||||||
| Cash and due from banks | $ | 10,192 | ||||||
| Interest earning deposits in banks | 67,855 | |||||||
| Debt securities | 119,230 | |||||||
| Loans held for investment | 281,470 | |||||||
| Premises and equipment | 7,363 | |||||||
| Core deposit intangible | 16,500 | |||||||
| Other assets | 12,218 | |||||||
| Total assets acquired | 514,828 | |||||||
| Liabilities assumed | ||||||||
| Deposits | (463,638 | ) | ||||||
| Other liabilities | (3,117 | ) | ||||||
| Total liabilities assumed | (466,755 | ) | ||||||
| Identifiable net assets acquired, at fair value | 48,073 | |||||||
| Bargain purchase gain (reported in Other noninterest income) | $ | 1,401 | ||||||
INCOME STATEMENT HIGHLIGHTS
Net Interest Income
Net interest income increased to $39.7 million in the second quarter of 2022 from $37.3 million in the first quarter of 2022, due primarily to a higher volume of interest earning assets in addition to an expansion in the net interest margin. These increases were partially offset by decreased Paycheck Protection Program ("PPP") loan fee accretion stemming from loan forgiveness. Net PPP loan fee accretion was $0.1 million in the second quarter of 2022 compared to $0.8 million in the linked quarter, and we expect this amount to continue to be negligible as remaining PPP loans are forgiven.
Average interest earning assets increased $130.8 million to $5.72 billion in the second quarter of 2022, when compared to the first quarter of 2022. This increase reflected average earning assets acquired in the IOFB acquisition coupled with higher volumes of debt securities and growth in the legacy MidWestOne loan portfolio.
The Company's tax equivalent net interest margin was 2.87% in the second quarter of 2022 compared to 2.79% in the linked quarter due to an increase in total interest earning asset yields, partially offset by a slight increase in funding costs. Total interest earning assets yield increased 10 bps from the linked quarter primarily as a result of an increase in the loan yield, which was partially offset by a decrease in PPP fee accretion, and an increase in the yield on taxable investment securities. The cost of interest bearing liabilities increased 3 bps to 0.45%, primarily as a result of interest bearing deposits costs of 0.31% and long-term debt costs of 4.45%, which increased 2 bps and 15 bps respectively, from the linked quarter.
Noninterest Income
Noninterest income for the second quarter of 2022 increased $0.7 million, or 6.0%, from the linked quarter. The increase was primarily due to the bargain purchase gain of $1.4 million recorded related to the IOFB acquisition, in addition to an increase of $0.2 million in card revenue. Partially offsetting the increases identified above was a decline of $0.8 million in loan revenue and a decline of $0.3 million in investment services and trust activities income. The decline in loan revenue was due to a $0.4 million decrease in mortgage origination income and a $0.3 million decline in the fair value adjustment of our mortgage servicing rights, from $2.7 million in the first quarter of 2022 to $2.4 million in the second quarter of 2022.
The following table presents details of noninterest income for the periods indicated:
| Three Months Ended | ||||||||
| Noninterest Income | June 30, | March 31, | June 30, | |||||
| (In thousands) | 2022 | 2022 | 2021 | |||||
| Investment services and trust activities | $ | 2,670 | $ | 3,011 | $ | 2,809 | ||
| Service charges and fees | 1,717 | 1,657 | 1,475 | |||||
| Card revenue | 1,878 | 1,650 | 1,913 | |||||
| Loan revenue | 3,523 | 4,293 | 3,151 | |||||
| Bank-owned life insurance | 558 | 531 | 538 | |||||
| Investment securities gains, net | 395 | 40 | 42 | |||||
| Other | 1,606 | 462 | 290 | |||||
| Total noninterest income | $ | 12,347 | $ | 11,644 | $ | 10,218 | ||
Noninterest Expense
Noninterest expense for the second quarter of 2022 increased $0.4 million, or 1.4%, from the linked quarter primarily due to an increase of $0.3 million in compensation and employee benefits and an increase of $0.2 million in equipment costs. The increase in compensation and employee benefits was primarily due to increased salary costs from the IOFB acquisition. The increase in equipment expense was primarily attributable to increased maintenance costs. Offsetting these increases identified above was a decline of $0.5 million in occupancy expense, which declined primarily due to a nonrecurring write-down expense in the first quarter of 2022 that did not recur in the second quarter of 2022.
The increase in net interest income and noninterest income noted above, were the primary drivers of the improvement in the efficiency ratio, which decreased 3.89 percentage points to 56.57% from 60.46% in the linked quarter.
The following table presents details of noninterest expense for the periods indicated:
| Three Months Ended | |||||||||
| Noninterest Expense | June 30, | March 31, | June 30, | ||||||
| (In thousands) | 2022 | 2022 | 2021 | ||||||
| Compensation and employee benefits | $ | 18,955 | $ | 18,664 | $ | 17,404 | |||
| Occupancy expense of premises, net | 2,253 | 2,779 | 2,198 | ||||||
| Equipment | 2,107 | 1,901 | 1,861 | ||||||
| Legal and professional | 2,435 | 2,353 | 1,375 | ||||||
| Data processing | 1,237 | 1,231 | 1,347 | ||||||
| Marketing | 1,157 | 1,029 | 873 | ||||||
| Amortization of intangibles | 1,283 | 1,227 | 1,341 | ||||||
| FDIC insurance | 420 | 420 | 245 | ||||||
| Communications | 266 | 272 | 371 | ||||||
| Foreclosed assets, net | 4 | (112 | ) | 136 | |||||
| Other | 1,965 | 1,879 | 1,519 | ||||||
| Total noninterest expense | $ | 32,082 | $ | 31,643 | $ | 28,670 | |||
The following table presents details of merger-related expenses for the periods indicated:
| Three Months Ended | ||||||||
| June 30, | March 31, | June 30, | ||||||
| Merger-related Expenses | 2022 | 2022 | 2021 | |||||
| (In thousands) | ||||||||
| Compensation and employee benefits | $ | 150 | $ | — | $ | — | ||
| Occupancy expense of premises, net | 1 | — | — | |||||
| Equipment | 6 | 5 | — | |||||
| Legal and professional | 638 | 63 | — | |||||
| Data processing | 38 | 38 | — | |||||
| Marketing | 65 | 7 | — | |||||
| Communications | 2 | 1 | — | |||||
| Other | 1 | 14 | — | |||||
| Total merger-related expenses | $ | 901 | $ | 128 | $ | — | ||
Income Taxes
The Company's effective income tax rate increased to 24.5% in the second quarter of 2022 compared to 19.9% in the linked quarter. The higher effective income tax rate in the second quarter of 2022 was due to a change in tax law in the state of Iowa, which resulted in a one-time income tax expense of $0.8 million stemming from the re-measurement of our deferred tax assets and liabilities. The effective income tax rate for the full year 2022 is expected to be in the range of 20-22%.
| BALANCE SHEET, LIQUIDITY AND CAPITAL HIGHLIGHTS | As of or for the Three Months Ended | ||||||||||
| June 30, | March 31, | June 30, | |||||||||
| (Dollars in millions, except per share amounts) | 2022 | 2022 | 2021 | ||||||||
| Ending Balance Sheet | |||||||||||
| Total assets | $ | 6,442.5 | $ | 5,960.2 | $ | 5,749.2 | |||||
| Loans held for investment, net of unearned income | 3,611.2 | 3,250.0 | 3,330.2 | ||||||||
| Total securities | 2,402.8 | 2,349.8 | 2,072.5 | ||||||||
| Total deposits | 5,537.4 | 5,077.7 | 4,792.7 | ||||||||
| Average Balance Sheet | |||||||||||
| Average total assets | $ | 6,079.0 | $ | 5,914.6 | $ | 5,851.7 | |||||
| Average total loans | 3,326.3 | 3,245.4 | 3,396.6 | ||||||||
| Average total deposits | 5,181.9 | 5,044.0 | 4,875.3 | ||||||||
| Funding and Liquidity | |||||||||||
| Short-term borrowings | $ | 193.9 | $ | 181.2 | $ | 212.3 | |||||
| Long-term debt | 159.2 | 139.9 | 169.8 | ||||||||
| Loans to deposits ratio | 65.21 | % | 64.01 | % | 69.48 | % | |||||
| Equity | |||||||||||
| Total shareholders' equity | $ | 488.8 | $ | 504.5 | $ | 530.3 | |||||
| Common equity ratio | 7.59 | % | 8.46 | % | 9.22 | % | |||||
| Tangible common equity(1) | 392.5 | 423.3 | 445.4 | ||||||||
| Tangible common equity ratio(1) | 6.18 | % | 7.20 | % | 7.86 | % | |||||
| Per Share Data | |||||||||||
| Book value | $ | 31.26 | $ | 32.15 | $ | 33.22 | |||||
| Tangible book value(1) | $ | 25.10 | $ | 26.98 | $ | 27.90 | |||||
| (1) Non-GAAP Measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. | |||||||||||
Loans Held for Investment
Loans held for investment, net of unearned income, increased $361.1 million, or 11.1%, to $3.61 billion from March 31, 2022. This increase reflected loans acquired in the IOFB acquisition, coupled with growth in the legacy MidWestOne loan portfolio during the second quarter of 2022.
The following table presents the composition of loans held for investment, net of unearned income, as of the dates indicated:
| Loans Held for Investment | June 30, 2022 | March 31, 2022 | June 30, 2021 | ||||||||||||||
| Balance | % of Total | Balance | % of Total | Balance | % of Total | ||||||||||||
| (dollars in thousands) | |||||||||||||||||
| Commercial and industrial | $ | 986,137 | 27.3 | % | $ | 898,942 | 27.7 | % | $ | 982,092 | 29.5 | % | |||||
| Agricultural | 110,263 | 3.1 | 94,649 | 2.9 | 107,834 | 3.2 | |||||||||||
| Commercial real estate | |||||||||||||||||
| Construction and development | 224,470 | 6.2 | 193,130 | 5.9 | 168,070 | 5.0 | |||||||||||
| Farmland | 181,820 | 5.0 | 140,846 | 4.3 | 134,877 | 4.1 | |||||||||||
| Multifamily | 239,676 | 6.6 | 259,609 | 8.0 | 255,826 | 7.7 | |||||||||||
| Other | 1,213,974 | 33.7 | 1,130,306 | 34.8 | 1,147,016 | 34.4 | |||||||||||
| Total commercial real estate | 1,859,940 | 51.5 | 1,723,891 | 53.0 | 1,705,789 | 51.2 | |||||||||||
| Residential real estate | |||||||||||||||||
| One-to-four family first liens | 430,157 | 11.9 | 331,883 | 10.2 | 332,117 | 10.0 | |||||||||||
| One-to-four family junior liens | 148,647 | 4.1 | 131,793 | 4.1 | 136,464 | 4.1 | |||||||||||
| Total residential real estate | 578,804 | 16.0 | 463,676 | 14.3 | 468,581 | 14.1 | |||||||||||
| Consumer | 76,008 | 2.1 | 68,877 | 2.1 | 65,860 | 2.0 | |||||||||||
| Loans held for investment, net of unearned income | $ | 3,611,152 | 100.0 | % | $ | 3,250,035 | 100.0 | % | $ | 3,330,156 | 100.0 | % | |||||
| Total commitments to extend credit | $ | 1,117,754 | $ | 1,034,843 | $ | 959,696 | |||||||||||
Credit Loss Expense & Allowance for Credit Losses
The following table shows the activity in the allowance for credit losses for the periods indicated:
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| Allowance for Credit Losses Roll Forward | June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
| (In thousands) | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Beginning balance | $ | 46,200 | $ | 48,700 | $ | 50,650 | $ | 48,700 | $ | 55,500 | |||||||||
| PCD allowance established in acquisition | 3,371 | — | — | 3,371 | — | ||||||||||||||
| Charge-offs | (440 | ) | (2,631 | ) | (840 | ) | (3,071 | ) | (1,843 | ) | |||||||||
| Recoveries | 159 | 409 | 434 | 568 | 1,121 | ||||||||||||||
| Net charge-offs | (281 | ) | (2,222 | ) | (406 | ) | (2,503 | ) | (722 | ) | |||||||||
| Credit loss (benefit) expense related to loans | 3,060 | (278 | ) | (2,244 | ) | 2,782 | (6,778 | ) | |||||||||||
| Ending balance | $ | 52,350 | $ | 46,200 | $ | 48,000 | $ | 52,350 | $ | 48,000 | |||||||||
As of June 30, 2022, the allowance for credit losses ("ACL") was $52.4 million, or 1.45% of loans held for investment, net of unearned income, compared with $46.2 million, or 1.42% of loans held for investment, net of unearned income, at March 31, 2022. Credit loss expense for the second quarter of 2022 was $3.3 million. No credit loss expense was recorded in the first quarter of 2022. Credit loss expense in the current quarter reflected $3.1 million related to the acquired non-purchase credit deteriorated (PCD) loans and $0.2 million related to unfunded loan commitments established in the acquisition. The allowance for credit losses also included the initial allowance for credit losses of $3.4 million recorded for the PCD loans acquired.
Deposits
The following table presents the composition of our deposit portfolio as of the dates indicated:
| Deposit Composition | June 30, 2022 | March 31, 2022 | June 30, 2021 | ||||||||||||||
| (Dollars in thousands) | Balance | % of Total | Balance | % of Total | Balance | % of Total | |||||||||||
| Noninterest bearing deposits | $ | 1,114,825 | 20.1 | % | $ | 1,002,415 | 19.7 | % | $ | 952,764 | 19.9 | % | |||||
| Interest checking deposits | 1,749,748 | 31.7 | 1,601,249 | 31.5 | 1,414,942 | 29.6 | |||||||||||
| Money market deposits | 1,070,912 | 19.3 | 983,709 | 19.4 | 936,683 | 19.5 | |||||||||||
| Savings deposits | 715,829 | 12.9 | 650,314 | 12.8 | 596,199 | 12.4 | |||||||||||
| Total non-maturity deposits | 4,651,314 | 84.0 | 4,237,687 | 83.4 | 3,900,588 | 81.4 | |||||||||||
| Time deposits of $250 and under | 547,427 | 9.9 | 501,904 | 9.9 | 538,331 | 11.2 | |||||||||||
| Time deposits over $250 | 338,700 | 6.1 | 338,134 | 6.7 | 353,747 | 7.4 | |||||||||||
| Total time deposits | 886,127 | 16.0 | 840,038 | 16.6 | 892,078 | 18.6 | |||||||||||
| Total deposits | $ | 5,537,441 | 100.0 | % | $ | 5,077,725 | 100.0 | % | $ | 4,792,666 | 100.0 | % | |||||
CREDIT RISK PROFILE
| As of or For the Three Months Ended | |||||||||||
| Highlights | June 30, | March 31, | June 30, | ||||||||
| (Dollars in thousands) | 2022 | 2022 | 2021 | ||||||||
| Credit loss expense (benefit) related to loans | $ | 3,060 | $ | (278 | ) | $ | (2,244 | ) | |||
| Net charge-offs | $ | 281 | $ | 2,222 | $ | 406 | |||||
| Net charge-off ratio(1) | 0.03 | % | 0.28 | % | 0.05 | % | |||||
| At period-end | |||||||||||
| Pass | $ | 3,402,508 | $ | 3,041,649 | $ | 3,102,688 | |||||
| Special Mention / Watch | 111,893 | 106,241 | 115,414 | ||||||||
| Classified | 96,751 | 102,145 | 112,054 | ||||||||
| Total loans held for investment, net | $ | 3,611,152 | $ | 3,250,035 | $ | 3,330,156 | |||||
| Classified loans ratio(2) | 2.68 | % | 3.14 | % | 3.36 | % | |||||
| Nonaccrual loans held for investment | $ | 25,978 | $ | 31,182 | $ | 40,764 | |||||
| Accruing loans contractually past due 90 days or more | 1,359 | — | 665 | ||||||||
| Total nonperforming loans | 27,337 | 31,182 | 41,429 | ||||||||
| Foreclosed assets, net | 284 | 273 | 755 | ||||||||
| Total nonperforming assets | $ | 27,621 | $ | 31,455 | $ | 42,184 | |||||
| Nonperforming loans ratio(3) | 0.76 | % | 0.96 | % | 1.24 | % | |||||
| Nonperforming assets ratio(4) | 0.43 | % | 0.53 | % | 0.73 | % | |||||
| Allowance for credit losses | $ | 52,350 | $ | 46,200 | $ | 48,000 | |||||
| Allowance for credit losses ratio(5) | 1.45 | % | 1.42 | % | 1.44 | % | |||||
| Adjusted allowance for credit losses ratio(6) | 1.45 | % | 1.42 | % | 1.53 | % | |||||
| Allowance for credit losses to nonaccrual loans ratio(7) | 201.52 | % | 148.16 | % | 117.75 | % | |||||
| (1) Net charge-off ratio is calculated as annualized net charge-offs divided by average loans held for investment, net of unearned income, 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 total 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 total 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) Non-GAAP Measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. | |||||||||||
| (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. | |||||||||||
During the second quarter of 2022, overall asset quality was improved. The nonperforming loans ratio declined 20 bps from the linked quarter and 48 bps from the prior year to 0.76%. In addition, the classified loans ratio declined 46 bps from the linked quarter and 68 bps from the prior year to 2.68%. Further, net charge-offs declined $1.9 million from the linked quarter.
The following table presents a roll forward of nonperforming loans for the period:
| Nonperforming Loans | Nonaccrual | 90+ Days Past Due & Still Accruing | Total | ||||||||
| (Dollars in thousands) | |||||||||||
| Balance at March 31, 2022 | $ | 31,182 | $ | — | $ | 31,182 | |||||
| Loans placed on nonaccrual or 90+ days past due & still accruing | 1,679 | 1,243 | 2,922 | ||||||||
| Acquired loan portfolio | 3,963 | 152 | 4,115 | ||||||||
| Proceeds related to repayment or sale | (9,814 | ) | — | (9,814 | ) | ||||||
| Loans returned to accrual status or no longer past due | (693 | ) | (1 | ) | (694 | ) | |||||
| Charge-offs | (328 | ) | (35 | ) | (363 | ) | |||||
| Transfers to foreclosed assets | (11 | ) | — | (11 | ) | ||||||
| Balance at June 30, 2022 | $ | 25,978 | $ | 1,359 | $ | 27,337 | |||||
CAPITAL
Effective March 31, 2020, we elected the 5-year phase-in option allowed under the interim final rule (IFR) issued by the federal banking regulatory agencies that delays the estimated impact on regulatory capital stemming from the implementation of the current expected credit losses (CECL) accounting standard. The IFR allows the add back of 100% of the capital effect from the day one CECL transition adjustment and 25% of the capital effect from subsequent increases in the allowance for credit losses through the two-year period ending December 31, 2021. The modified CECL transitional amount of $9.4 million is then reduced from capital over the subsequent three-year period.
| Regulatory Capital Ratios | June 30, | March 31, | June 30, | |||||
| 2022 (1) | 2022 | 2021 | ||||||
| MidWestOne Financial Group, Inc. Consolidated | ||||||||
| Tier 1 leverage to average assets ratio | 8.51 | % | 8.85 | % | 8.50 | % | ||
| Common equity tier 1 capital to risk-weighted assets ratio | 8.82 | % | 9.81 | % | 10.26 | % | ||
| Tier 1 capital to risk-weighted assets ratio | 9.61 | % | 10.68 | % | 11.21 | % | ||
| Total capital to risk-weighted assets ratio | 11.73 | % | 12.89 | % | 13.63 | % | ||
| MidWestOne Bank | ||||||||
| Tier 1 leverage to average assets ratio | 9.70 | % | 9.30 | % | 9.15 | % | ||
| Common equity tier 1 capital to risk-weighted assets ratio | 10.99 | % | 11.25 | % | 12.09 | % | ||
| Tier 1 capital to risk-weighted assets ratio | 10.99 | % | 11.25 | % | 12.09 | % | ||
| Total capital to risk-weighted assets ratio | 11.90 | % | 12.12 | % | 13.02 | % | ||
| (1) Capital ratios for June 30, 2022 are preliminary | ||||||||
CORPORATE UPDATE
Share Repurchase Program
Under our current repurchase program, the Company repurchased 65,315 shares of its common stock at an average price of $29.67 per share and a total cost of $1.9 million in the second quarter of 2022. At June 30, 2022, the total amount available under the Company's current share repurchase program was $3.5 million.
CONFERENCE CALL DETAILS
The Company will host a conference call for investors at 11:00 a.m. CT on Friday, July 29, 2022. To participate, you may pre-register for this call utilizing the following link: https://ige.netroadshow.com/registration/q4inc/11244/midwestone-financial-group-inc-2nd-quarter-2022/. 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 1-844-200-6205, using an access code of 952429 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 27, 2022, by calling 1-866-813-9403 and using the replay access code of 413921. 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, Florida, 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 (including with IOFB), 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 or pronounced and sustained reduction in real estate market values causing 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 actual and expected increases in 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, including the expected elimination of LIBOR and the adoption of a substitute; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators; (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; (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 war in 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 effects of cyber-attacks; (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) effects of the ongoing COVID-19 pandemic, including its effects on the economic environment, our customers, employees and supply chain; and (25) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
FIVE QUARTER CONSOLIDATED BALANCE SHEETS
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| (In thousands) | 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 60,622 | $ | 47,677 | $ | 42,949 | $ | 53,562 | $ | 52,297 | |||||||||
| Interest earning deposits in banks | 23,242 | 12,152 | 160,881 | 84,952 | 11,124 | ||||||||||||||
| Federal funds sold | — | — | — | — | 13 | ||||||||||||||
| Total cash and cash equivalents | 83,864 | 59,829 | 203,830 | 138,514 | 63,434 | ||||||||||||||
| Debt securities available for sale at fair value | 1,234,789 | 1,145,638 | 2,288,110 | 2,136,902 | 2,072,452 | ||||||||||||||
| Held to maturity securities at amortized cost | 1,168,042 | 1,204,212 | — | — | — | ||||||||||||||
| Total securities | 2,402,831 | 2,349,850 | 2,288,110 | 2,136,902 | 2,072,452 | ||||||||||||||
| Loans held for sale | 4,991 | 6,466 | 12,917 | 58,679 | 6,149 | ||||||||||||||
| Gross loans held for investment | 3,627,728 | 3,256,294 | 3,252,194 | 3,278,150 | 3,344,156 | ||||||||||||||
| Unearned income, net | (16,576 | ) | (6,259 | ) | (7,182 | ) | (9,506 | ) | (14,000 | ) | |||||||||
| Loans held for investment, net of unearned income | 3,611,152 | 3,250,035 | 3,245,012 | 3,268,644 | 3,330,156 | ||||||||||||||
| Allowance for credit losses | (52,350 | ) | (46,200 | ) | (48,700 | ) | (47,900 | ) | (48,000 | ) | |||||||||
| Total loans held for investment, net | 3,558,802 | 3,203,835 | 3,196,312 | 3,220,744 | 3,282,156 | ||||||||||||||
| Premises and equipment, net | 89,048 | 82,603 | 83,492 | 84,130 | 84,667 | ||||||||||||||
| Goodwill | 62,477 | 62,477 | 62,477 | 62,477 | 62,477 | ||||||||||||||
| Other intangible assets, net | 33,874 | 18,658 | 19,885 | 21,130 | 22,394 | ||||||||||||||
| Foreclosed assets, net | 284 | 273 | 357 | 454 | 755 | ||||||||||||||
| Other assets | 206,320 | 176,223 | 157,748 | 152,393 | 154,731 | ||||||||||||||
| Total assets | $ | 6,442,491 | $ | 5,960,214 | $ | 6,025,128 | $ | 5,875,423 | $ | 5,749,215 | |||||||||
| LIABILITIES | |||||||||||||||||||
| Noninterest bearing deposits | $ | 1,114,825 | $ | 1,002,415 | $ | 1,005,369 | $ | 999,887 | $ | 952,764 | |||||||||
| Interest bearing deposits | 4,422,616 | 4,075,310 | 4,109,150 | 3,957,894 | 3,839,902 | ||||||||||||||
| Total deposits | 5,537,441 | 5,077,725 | 5,114,519 | 4,957,781 | 4,792,666 | ||||||||||||||
| Short-term borrowings | 193,894 | 181,193 | 181,368 | 187,508 | 212,261 | ||||||||||||||
| Long-term debt | 159,168 | 139,898 | 154,879 | 154,860 | 169,839 | ||||||||||||||
| Other liabilities | 63,156 | 56,941 | 46,887 | 45,010 | 44,156 | ||||||||||||||
| Total liabilities | 5,953,659 | 5,455,757 | 5,497,653 | 5,345,159 | 5,218,922 | ||||||||||||||
| SHAREHOLDERS' EQUITY | |||||||||||||||||||
| Common stock | 16,581 | 16,581 | 16,581 | 16,581 | 16,581 | ||||||||||||||
| Additional paid-in capital | 300,859 | 300,505 | 300,940 | 300,327 | 299,888 | ||||||||||||||
| Retained earnings | 262,395 | 253,500 | 243,365 | 232,639 | 219,884 | ||||||||||||||
| Treasury stock | (25,772 | ) | (24,113 | ) | (24,546 | ) | (22,735 | ) | (15,888 | ) | |||||||||
| Accumulated other comprehensive (loss) income | (65,231 | ) | (42,016 | ) | (8,865 | ) | 3,452 | 9,828 | |||||||||||
| Total shareholders' equity | 488,832 | 504,457 | 527,475 | 530,264 | 530,293 | ||||||||||||||
| Total liabilities and shareholders' equity | $ | 6,442,491 | $ | 5,960,214 | $ | 6,025,128 | $ | 5,875,423 | $ | 5,749,215 | |||||||||
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
FIVE QUARTER AND YEAR TO DATE 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) | 2022 | 2022 | 2021 | 2021 | 2021 | 2022 | 2021 | ||||||||||||||||||
| Interest income | |||||||||||||||||||||||||
| Loans, including fees | $ | 32,746 | $ | 31,318 | $ | 33,643 | $ | 36,115 | $ | 34,736 | $ | 64,064 | $ | 71,278 | |||||||||||
| Taxable investment securities | 9,576 | 8,123 | 7,461 | 6,655 | 6,483 | 17,699 | 11,576 | ||||||||||||||||||
| Tax-exempt investment securities | 2,367 | 2,383 | 2,415 | 2,428 | 2,549 | 4,750 | 5,104 | ||||||||||||||||||
| Other | 40 | 28 | 37 | 21 | 19 | 68 | 33 | ||||||||||||||||||
| Total interest income | 44,729 | 41,852 | 43,556 | 45,219 | 43,787 | 86,581 | 87,991 | ||||||||||||||||||
| Interest expense | |||||||||||||||||||||||||
| Deposits | 3,173 | 2,910 | 3,031 | 3,150 | 3,409 | 6,083 | 7,017 | ||||||||||||||||||
| Short-term borrowings | 229 | 119 | 130 | 132 | 161 | 348 | 289 | ||||||||||||||||||
| Long-term debt | 1,602 | 1,487 | 1,576 | 1,597 | 1,712 | 3,089 | 3,563 | ||||||||||||||||||
| Total interest expense | 5,004 | 4,516 | 4,737 | 4,879 | 5,282 | 9,520 | 10,869 | ||||||||||||||||||
| Net interest income | 39,725 | 37,336 | 38,819 | 40,340 | 38,505 | 77,061 | 77,122 | ||||||||||||||||||
| Credit loss expense (benefit) | 3,282 | — | 622 | (1,080 | ) | (2,144 | ) | 3,282 | (6,878 | ) | |||||||||||||||
| Net interest income after credit loss expense (benefit) | 36,443 | 37,336 | 38,197 | 41,420 | 40,649 | 73,779 | 84,000 | ||||||||||||||||||
| Noninterest income | |||||||||||||||||||||||||
| Investment services and trust activities | 2,670 | 3,011 | 3,115 | 2,915 | 2,809 | 5,681 | 5,645 | ||||||||||||||||||
| Service charges and fees | 1,717 | 1,657 | 1,684 | 1,613 | 1,475 | 3,374 | 2,962 | ||||||||||||||||||
| Card revenue | 1,878 | 1,650 | 1,746 | 1,820 | 1,913 | 3,528 | 3,449 | ||||||||||||||||||
| Loan revenue | 3,523 | 4,293 | 3,132 | 1,935 | 3,151 | 7,816 | 7,881 | ||||||||||||||||||
| Bank-owned life insurance | 558 | 531 | 550 | 532 | 538 | 1,089 | 1,080 | ||||||||||||||||||
| Investment securities gains, net | 395 | 40 | 137 | 36 | 42 | 435 | 69 | ||||||||||||||||||
| Other | 1,606 | 462 | 865 | 331 | 290 | 2,068 | 956 | ||||||||||||||||||
| Total noninterest income | 12,347 | 11,644 | 11,229 | 9,182 | 10,218 | 23,991 | 22,042 | ||||||||||||||||||
| Noninterest expense | |||||||||||||||||||||||||
| Compensation and employee benefits | 18,955 | 18,664 | 18,266 | 17,350 | 17,404 | 37,619 | 34,321 | ||||||||||||||||||
| Occupancy expense of premises, net | 2,253 | 2,779 | 2,211 | 2,547 | 2,198 | 5,032 | 4,516 | ||||||||||||||||||
| Equipment | 2,107 | 1,901 | 2,189 | 1,973 | 1,861 | 4,008 | 3,654 | ||||||||||||||||||
| Legal and professional | 2,435 | 2,353 | 1,826 | 1,272 | 1,375 | 4,788 | 2,158 | ||||||||||||||||||
| Data processing | 1,237 | 1,231 | 1,211 | 1,406 | 1,347 | 2,468 | 2,599 | ||||||||||||||||||
| Marketing | 1,157 | 1,029 | 1,121 | 1,022 | 873 | 2,186 | 1,879 | ||||||||||||||||||
| Amortization of intangibles | 1,283 | 1,227 | 1,245 | 1,264 | 1,341 | 2,510 | 2,848 | ||||||||||||||||||
| FDIC insurance | 420 | 420 | 380 | 435 | 245 | 840 | 757 | ||||||||||||||||||
| Communications | 266 | 272 | 277 | 275 | 371 | 538 | 780 | ||||||||||||||||||
| Foreclosed assets, net | 4 | (112 | ) | 7 | 43 | 136 | (108 | ) | 183 | ||||||||||||||||
| Other | 1,965 | 1,879 | 1,711 | 2,191 | 1,519 | 3,844 | 2,675 | ||||||||||||||||||
| Total noninterest expense | 32,082 | 31,643 | 30,444 | 29,778 | 28,670 | 63,725 | 56,370 | ||||||||||||||||||
| Income before income tax expense | 16,708 | 17,337 | 18,982 | 20,824 | 22,197 | 34,045 | 49,672 | ||||||||||||||||||
| Income tax expense | 4,087 | 3,442 | 4,726 | 4,513 | 4,926 | 7,529 | 10,753 | ||||||||||||||||||
| Net income | $ | 12,621 | $ | 13,895 | $ | 14,256 | $ | 16,311 | $ | 17,271 | $ | 26,516 | $ | 38,919 | |||||||||||
| Earnings per common share | |||||||||||||||||||||||||
| Basic | $ | 0.81 | $ | 0.89 | $ | 0.91 | $ | 1.03 | $ | 1.08 | $ | 1.69 | $ | 2.43 | |||||||||||
| Diluted | $ | 0.80 | $ | 0.88 | $ | 0.91 | $ | 1.03 | $ | 1.08 | $ | 1.69 | $ | 2.43 | |||||||||||
| Weighted average basic common shares outstanding | 15,668 | 15,683 | 15,692 | 15,841 | 15,987 | 15,675 | 15,989 | ||||||||||||||||||
| Weighted average diluted common shares outstanding | 15,688 | 15,718 | 15,734 | 15,863 | 16,012 | 15,703 | 16,016 | ||||||||||||||||||
| Dividends paid per common share | $ | 0.2375 | $ | 0.2375 | $ | 0.2250 | $ | 0.2250 | $ | 0.2250 | $ | 0.4750 | $ | 0.4500 | |||||||||||
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
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) | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Earnings: | |||||||||||||||||||
| Net interest income | $ | 39,725 | $ | 37,336 | $ | 38,505 | $ | 77,061 | $ | 77,122 | |||||||||
| Noninterest income | 12,347 | 11,644 | 10,218 | 23,991 | 22,042 | ||||||||||||||
| Total revenue, net of interest expense | 52,072 | 48,980 | 48,723 | 101,052 | 99,164 | ||||||||||||||
| Credit loss expense (benefit) | 3,282 | — | (2,144 | ) | 3,282 | (6,878 | ) | ||||||||||||
| Noninterest expense | 32,082 | 31,643 | 28,670 | 63,725 | 56,370 | ||||||||||||||
| Income before income tax expense | 16,708 | 17,337 | 22,197 | 34,045 | 49,672 | ||||||||||||||
| Income tax expense | 4,087 | 3,442 | 4,926 | 7,529 | 10,753 | ||||||||||||||
| Net income | $ | 12,621 | $ | 13,895 | $ | 17,271 | $ | 26,516 | $ | 38,919 | |||||||||
| Per Share Data: | |||||||||||||||||||
| Diluted earnings | $ | 0.80 | $ | 0.88 | $ | 1.08 | $ | 1.69 | $ | 2.43 | |||||||||
| Book value | 31.26 | 32.15 | 33.22 | 31.26 | 33.22 | ||||||||||||||
| Tangible book value(1) | 25.10 | 26.98 | 27.90 | 25.10 | 27.90 | ||||||||||||||
| Ending Balance Sheet: | |||||||||||||||||||
| Total assets | $ | 6,442,491 | $ | 5,960,214 | $ | 5,749,215 | $ | 6,442,491 | $ | 5,749,215 | |||||||||
| Loans held for investment, net of unearned income | 3,611,152 | 3,250,035 | 3,330,156 | 3,611,152 | 3,330,156 | ||||||||||||||
| Total securities | 2,402,831 | 2,349,850 | 2,072,452 | 2,402,831 | 2,072,452 | ||||||||||||||
| Total deposits | 5,537,441 | 5,077,725 | 4,792,666 | 5,537,441 | 4,792,666 | ||||||||||||||
| Short-term borrowings | 193,894 | 181,193 | 212,261 | 193,894 | 212,261 | ||||||||||||||
| Long-term debt | 159,168 | 139,898 | 169,839 | 159,168 | 169,839 | ||||||||||||||
| Total shareholders' equity | 488,832 | 504,457 | 530,293 | 488,832 | 530,293 | ||||||||||||||
| Average Balance Sheet: | |||||||||||||||||||
| Average total assets | $ | 6,078,950 | $ | 5,914,604 | $ | 5,851,736 | $ | 5,997,231 | $ | 5,686,936 | |||||||||
| Average total loans | 3,326,269 | 3,245,449 | 3,396,575 | 3,286,083 | 3,413,069 | ||||||||||||||
| Average total deposits | 5,181,927 | 5,044,046 | 4,875,324 | 5,113,368 | 4,725,444 | ||||||||||||||
| Financial Ratios: | |||||||||||||||||||
| Return on average assets | 0.83 | % | 0.95 | % | 1.18 | % | 0.89 | % | 1.38 | % | |||||||||
| Return on average equity | 10.14 | % | 10.74 | % | 13.24 | % | 10.44 | % | 15.10 | % | |||||||||
| Return on average tangible equity(1) | 13.13 | % | 13.56 | % | 16.75 | % | 13.35 | % | 19.10 | % | |||||||||
| Efficiency ratio(1) | 56.57 | % | 60.46 | % | 54.83 | % | 58.46 | % | 52.76 | % | |||||||||
| Net interest margin, tax equivalent(1) | 2.87 | % | 2.79 | % | 2.88 | % | 2.83 | % | 2.99 | % | |||||||||
| Loans to deposits ratio | 65.21 | % | 64.01 | % | 69.48 | % | 65.21 | % | 69.48 | % | |||||||||
| Common equity ratio | 7.59 | % | 8.46 | % | 9.22 | % | 7.59 | % | 9.22 | % | |||||||||
| Tangible common equity ratio(1) | 6.18 | % | 7.20 | % | 7.86 | % | 6.18 | % | 7.86 | % | |||||||||
| Credit Risk Profile: | |||||||||||||||||||
| Total nonperforming loans | $ | 27,337 | $ | 31,182 | $ | 41,429 | $ | 27,337 | $ | 41,429 | |||||||||
| Nonperforming loans ratio | 0.76 | % | 0.96 | % | 1.24 | % | 0.76 | % | 1.24 | % | |||||||||
| Total nonperforming assets | $ | 27,621 | $ | 31,455 | $ | 42,184 | $ | 27,621 | $ | 42,184 | |||||||||
| Nonperforming assets ratio | 0.43 | % | 0.53 | % | 0.73 | % | 0.43 | % | 0.73 | % | |||||||||
| Net charge-offs | $ | 281 | $ | 2,222 | $ | 406 | $ | 2,503 | $ | 722 | |||||||||
| Net charge-off ratio | 0.03 | % | 0.28 | % | 0.05 | % | 0.15 | % | 0.04 | % | |||||||||
| Allowance for credit losses | $ | 52,350 | $ | 46,200 | $ | 48,000 | $ | 52,350 | $ | 48,000 | |||||||||
| Allowance for credit losses ratio | 1.45 | % | 1.42 | % | 1.44 | % | 1.45 | % | 1.44 | % | |||||||||
| Adjusted allowance for credit losses ratio(1) | 1.45 | % | 1.42 | % | 1.53 | % | 1.45 | % | 1.53 | % | |||||||||
| Allowance for credit losses to nonaccrual ratio | 201.52 | % | 148.16 | % | 117.75 | % | 201.52 | % | 117.75 | % | |||||||||
| PPP Loans: | |||||||||||||||||||
| Average PPP loans | $ | 1,061 | $ | 14,975 | $ | 233,982 | $ | 4,327 | $ | 234,515 | |||||||||
| Fee Income | 59 | 797 | 2,469 | 856 | 6,143 | ||||||||||||||
| (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. | |||||||||||||||||||
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
| Three Months Ended | ||||||||||||||||||||||||||
| June 30, 2022 | March 31, 2022 | June 30, 2021 | ||||||||||||||||||||||||
| (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) | $ | 3,326,269 | $ | 33,315 | 4.02 | % | $ | 3,245,449 | $ | 31,858 | 3.98 | % | $ | 3,396,575 | $ | 35,255 | 4.16 | % | ||||||||
| Taxable investment securities | 1,923,155 | 9,576 | 2.00 | % | 1,835,911 | 8,123 | 1.79 | % | 1,604,463 | 6,483 | 1.62 | % | ||||||||||||||
| Tax-exempt investment securities (2)(4) | 439,385 | 2,975 | 2.72 | % | 450,547 | 2,998 | 2.70 | % | 473,181 | 3,196 | 2.71 | % | ||||||||||||||
| Total securities held for investment(2) | 2,362,540 | 12,551 | 2.13 | % | 2,286,458 | 11,121 | 1.97 | % | 2,077,644 | 9,679 | 1.87 | % | ||||||||||||||
| Other | 30,016 | 40 | 0.53 | % | 56,094 | 28 | 0.20 | % | 48,208 | 19 | 0.16 | % | ||||||||||||||
| Total interest earning assets(2) | $ | 5,718,825 | 45,906 | 3.22 | % | $ | 5,588,001 | 43,007 | 3.12 | % | $ | 5,522,427 | 44,953 | 3.26 | % | |||||||||||
| Other assets | 360,125 | 326,603 | 329,309 | |||||||||||||||||||||||
| Total assets | $ | 6,078,950 | $ | 5,914,604 | $ | 5,851,736 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||
| Interest checking deposits | $ | 1,641,337 | $ | 1,189 | 0.29 | % | $ | 1,560,402 | $ | 1,061 | 0.28 | % | $ | 1,469,853 | $ | 1,095 | 0.30 | % | ||||||||
| Money market deposits | 1,003,386 | 571 | 0.23 | % | 953,943 | 499 | 0.21 | % | 942,072 | 502 | 0.21 | % | ||||||||||||||
| Savings deposits | 662,449 | 287 | 0.17 | % | 641,703 | 279 | 0.18 | % | 595,150 | 324 | 0.22 | % | ||||||||||||||
| Time deposits | 836,143 | 1,126 | 0.54 | % | 883,997 | 1,071 | 0.49 | % | 896,169 | 1,488 | 0.67 | % | ||||||||||||||
| Total interest bearing deposits | 4,143,315 | 3,173 | 0.31 | % | 4,040,045 | 2,910 | 0.29 | % | 3,903,244 | 3,409 | 0.35 | % | ||||||||||||||
| Securities sold under agreements to repurchase | 154,107 | 111 | 0.29 | % | 159,417 | 96 | 0.24 | % | 179,253 | 116 | 0.26 | % | ||||||||||||||
| Federal funds purchased | — | — | — | % | — | — | — | % | — | — | — | % | ||||||||||||||
| Other short-term borrowings | 41,859 | 118 | 1.13 | % | 3,029 | 23 | 3.08 | % | 39,238 | 45 | 0.46 | % | ||||||||||||||
| Short-term borrowings | 195,966 | 229 | 0.47 | % | 162,446 | 119 | 0.30 | % | 218,491 | 161 | 0.30 | % | ||||||||||||||
| Long-term debt | 144,440 | 1,602 | 4.45 | % | 140,389 | 1,487 | 4.30 | % | 189,644 | 1,712 | 3.62 | % | ||||||||||||||
| Total borrowed funds | 340,406 | 1,831 | 2.16 | % | 302,835 | 1,606 | 2.15 | % | 408,135 | 1,873 | 1.84 | % | ||||||||||||||
| Total interest bearing liabilities | $ | 4,483,721 | $ | 5,004 | 0.45 | % | $ | 4,342,880 | $ | 4,516 | 0.42 | % | $ | 4,311,379 | $ | 5,282 | 0.49 | % | ||||||||
| Noninterest bearing deposits | 1,038,612 | 1,004,001 | 972,080 | |||||||||||||||||||||||
| Other liabilities | 57,157 | 42,872 | 45,035 | |||||||||||||||||||||||
| Shareholders’ equity | 499,460 | 524,851 | 523,242 | |||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,078,950 | $ | 5,914,604 | $ | 5,851,736 | ||||||||||||||||||||
| Net interest income(2) | $ | 40,902 | $ | 38,491 | $ | 39,671 | ||||||||||||||||||||
| Net interest spread(2) | 2.77 | % | 2.70 | % | 2.77 | % | ||||||||||||||||||||
| Net interest margin(2) | 2.87 | % | 2.79 | % | 2.88 | % | ||||||||||||||||||||
| Total deposits(5) | $ | 5,181,927 | $ | 3,173 | 0.25 | % | $ | 5,044,046 | $ | 2,910 | 0.23 | % | $ | 4,875,324 | $ | 3,409 | 0.28 | % | ||||||||
| Cost of funds(6) | 0.36 | % | 0.34 | % | 0.40 | % | ||||||||||||||||||||
(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 $(31) thousand, $674 thousand, and $2.3 million for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively. Loan purchase discount accretion was $528 thousand, $732 thousand, and $873 thousand for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively. Tax equivalent adjustments were $569 thousand, $540 thousand, and $519 thousand for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, respectively. The federal statutory tax rate utilized was 21%.
(4) Interest income includes tax equivalent adjustments of $608 thousand, $615 thousand, and $647 thousand for the three months ended June 30, 2022, March 31, 2022, and June 30, 2021, 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. AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
| Six Months Ended | |||||||||||||||||
| June 30, 2022 | June 30, 2021 | ||||||||||||||||
| (Dollars in thousands) | Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | |||||||||||
| ASSETS | |||||||||||||||||
| Loans, including fees (1)(2)(3) | $ | 3,286,083 | $ | 65,173 | 4.00 | % | $ | 3,413,069 | $ | 72,328 | 4.27 | % | |||||
| Taxable investment securities | 1,879,773 | 17,699 | 1.90 | % | 1,436,522 | 11,576 | 1.63 | % | |||||||||
| Tax-exempt investment securities (2)(4) | 444,936 | 5,973 | 2.71 | % | 469,507 | 6,399 | 2.75 | % | |||||||||
| Total securities held for investment(2) | 2,324,709 | 23,672 | 2.05 | % | 1,906,029 | 17,975 | 1.90 | % | |||||||||
| Other | 42,983 | 68 | 0.32 | % | 42,404 | 33 | 0.16 | % | |||||||||
| Total interest earning assets(2) | $ | 5,653,775 | 88,913 | 3.17 | % | $ | 5,361,502 | 90,336 | 3.40 | % | |||||||
| Other assets | 343,456 | 325,434 | |||||||||||||||
| Total assets | $ | 5,997,231 | $ | 5,686,936 | |||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||
| Interest checking deposits | $ | 1,601,093 | $ | 2,250 | 0.28 | % | $ | 1,410,094 | $ | 2,086 | 0.30 | % | |||||
| Money market deposits | 978,801 | 1,070 | 0.22 | % | 927,660 | 980 | 0.21 | % | |||||||||
| Savings deposits | 652,134 | 566 | 0.18 | % | 574,602 | 610 | 0.21 | % | |||||||||
| Time deposits | 859,938 | 2,197 | 0.52 | % | 866,976 | 3,341 | 0.78 | % | |||||||||
| Total interest bearing deposits | 4,091,966 | 6,083 | 0.30 | % | 3,779,332 | 7,017 | 0.37 | % | |||||||||
| Securities sold under agreements to repurchase | 156,747 | 207 | 0.27 | % | 172,592 | 217 | 0.25 | % | |||||||||
| Federal funds purchased | — | — | — | % | — | — | — | % | |||||||||
| Other short-term borrowings | 22,551 | 141 | 1.26 | % | 24,370 | 72 | 0.60 | % | |||||||||
| Short-term borrowings | 179,298 | 348 | 0.39 | % | 196,962 | 289 | 0.30 | % | |||||||||
| Long-term debt | 142,426 | 3,089 | 4.37 | % | 197,762 | 3,563 | 3.63 | % | |||||||||
| Total borrowed funds | 321,724 | 3,437 | 2.15 | % | 394,724 | 3,852 | 1.97 | % | |||||||||
| Total interest bearing liabilities | $ | 4,413,690 | $ | 9,520 | 0.43 | % | $ | 4,174,056 | $ | 10,869 | 0.53 | % | |||||
| Noninterest bearing deposits | 1,021,402 | 946,112 | |||||||||||||||
| Other liabilities | 50,054 | 47,008 | |||||||||||||||
| Shareholders’ equity | 512,085 | 519,760 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 5,997,231 | $ | 5,686,936 | |||||||||||||
| Net interest income(2) | $ | 79,393 | $ | 79,467 | |||||||||||||
| Net interest spread(2) | 2.74 | % | 2.87 | % | |||||||||||||
| Net interest margin(2) | 2.83 | % | 2.99 | % | |||||||||||||
| Total deposits(5) | $ | 5,113,368 | $ | 6,083 | 0.24 | % | $ | 4,725,444 | $ | 7,017 | 0.30 | % | |||||
| Cost of funds(6) | 0.35 | % | 0.43 | % | |||||||||||||
(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 $0.6 million and $5.8 million for the six months ended June 30, 2022 and June 30, 2021, respectively. Loan purchase discount accretion was $1.3 million and $2.0 million for the six months ended June 30, 2022 and June 30, 2021, respectively. Tax equivalent adjustments were $1.1 million and $1.0 million for the six months ended June 30, 2022 and June 30, 2021, respectively. The federal statutory tax rate utilized was 21%.
(4) Interest income includes tax equivalent adjustments of $1.2 million and $1.3 million for the six months ended June 30, 2022 and June 30, 2021, 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 allowance for credit losses ratio, core loans, and core commercial loans. 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) | 2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||||
| Total shareholders’ equity | $ | 488,832 | $ | 504,457 | $ | 527,475 | $ | 530,264 | $ | 530,293 | ||||||||||
| Intangible assets, net | (96,351 | ) | (81,135 | ) | (82,362 | ) | (83,607 | ) | (84,871 | ) | ||||||||||
| Tangible common equity | $ | 392,481 | $ | 423,322 | $ | 445,113 | $ | 446,657 | $ | 445,422 | ||||||||||
| Total assets | $ | 6,442,491 | $ | 5,960,214 | $ | 6,025,128 | $ | 5,875,423 | $ | 5,749,215 | ||||||||||
| Intangible assets, net | (96,351 | ) | (81,135 | ) | (82,362 | ) | (83,607 | ) | (84,871 | ) | ||||||||||
| Tangible assets | $ | 6,346,140 | $ | 5,879,079 | $ | 5,942,766 | $ | 5,791,816 | $ | 5,664,344 | ||||||||||
| Book value per share | $ | 31.26 | $ | 32.15 | $ | 33.66 | $ | 33.71 | $ | 33.22 | ||||||||||
| Tangible book value per share(1) | $ | 25.10 | $ | 26.98 | $ | 28.40 | $ | 28.40 | $ | 27.90 | ||||||||||
| Shares outstanding | 15,635,131 | 15,690,125 | 15,671,147 | 15,729,451 | 15,963,468 | |||||||||||||||
| Common equity ratio | 7.59 | % | 8.46 | % | 8.75 | % | 9.03 | % | 9.22 | % | ||||||||||
| Tangible common equity ratio(2) | 6.18 | % | 7.20 | % | 7.49 | % | 7.71 | % | 7.86 | % | ||||||||||
(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) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Net income | $ | 12,621 | $ | 13,895 | $ | 17,271 | $ | 26,516 | $ | 38,919 | ||||||||||
| Intangible amortization, net of tax(1) | 962 | 920 | 1,006 | 1,883 | 2,136 | |||||||||||||||
| Tangible net income | $ | 13,583 | $ | 14,815 | $ | 18,277 | $ | 28,399 | $ | 41,055 | ||||||||||
| Average shareholders’ equity | $ | 499,460 | $ | 524,851 | $ | 523,242 | $ | 512,085 | $ | 519,760 | ||||||||||
| Average intangible assets, net | (84,540 | ) | (81,763 | ) | (85,518 | ) | (83,159 | ) | (86,235 | ) | ||||||||||
| Average tangible equity | $ | 414,920 | $ | 443,088 | $ | 437,724 | $ | 428,926 | $ | 433,525 | ||||||||||
| Return on average equity | 10.14 | % | 10.74 | % | 13.24 | % | 10.44 | % | 15.10 | % | ||||||||||
| Return on average tangible equity(2) | 13.13 | % | 13.56 | % | 16.75 | % | 13.35 | % | 19.10 | % | ||||||||||
(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) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Net interest income | $ | 39,725 | $ | 37,336 | $ | 38,505 | $ | 77,061 | $ | 77,122 | ||||||||||
| Tax equivalent adjustments: | ||||||||||||||||||||
| Loans(1) | 569 | 540 | 519 | 1,109 | 1,050 | |||||||||||||||
| Securities(1) | 608 | 615 | 647 | 1,223 | 1,295 | |||||||||||||||
| Net interest income, tax equivalent | $ | 40,902 | $ | 38,491 | $ | 39,671 | $ | 79,393 | $ | 79,467 | ||||||||||
| Loan purchase discount accretion | (528 | ) | (732 | ) | (873 | ) | (1,260 | ) | (1,971 | ) | ||||||||||
| Core net interest income | $ | 40,374 | $ | 37,759 | $ | 38,798 | $ | 78,133 | $ | 77,496 | ||||||||||
| Net interest margin | 2.79 | % | 2.71 | % | 2.80 | % | 2.75 | % | 2.90 | % | ||||||||||
| Net interest margin, tax equivalent(2) | 2.87 | % | 2.79 | % | 2.88 | % | 2.83 | % | 2.99 | % | ||||||||||
| Core net interest margin(3) | 2.83 | % | 2.74 | % | 2.82 | % | 2.79 | % | 2.91 | % | ||||||||||
| Average interest earning assets | $ | 5,718,825 | $ | 5,588,001 | $ | 5,522,427 | $ | 5,653,775 | $ | 5,361,502 | ||||||||||
(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) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Loan interest income, including fees | $ | 32,746 | $ | 31,318 | $ | 34,736 | $ | 64,064 | $ | 71,278 | ||||||||||
| Tax equivalent adjustment(1) | 569 | 540 | 519 | 1,109 | 1,050 | |||||||||||||||
| Tax equivalent loan interest income | $ | 33,315 | $ | 31,858 | $ | 35,255 | $ | 65,173 | $ | 72,328 | ||||||||||
| Loan purchase discount accretion | (528 | ) | (732 | ) | (873 | ) | (1,260 | ) | (1,971 | ) | ||||||||||
| Core loan interest income | $ | 32,787 | $ | 31,126 | $ | 34,382 | $ | 63,913 | $ | 70,357 | ||||||||||
| Yield on loans | 3.95 | % | 3.91 | % | 4.10 | % | 3.93 | % | 4.21 | % | ||||||||||
| Yield on loans, tax equivalent(2) | 4.02 | % | 3.98 | % | 4.16 | % | 4.00 | % | 4.27 | % | ||||||||||
| Core yield on loans(3) | 3.95 | % | 3.89 | % | 4.06 | % | 3.92 | % | 4.16 | % | ||||||||||
| Average loans | $ | 3,326,269 | $ | 3,245,449 | $ | 3,396,575 | $ | 3,286,083 | $ | 3,413,069 | ||||||||||
(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) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Total noninterest expense | $ | 32,082 | $ | 31,643 | $ | 28,670 | $ | 63,725 | $ | 56,370 | ||||||||||
| Amortization of intangibles | (1,283 | ) | (1,227 | ) | (1,341 | ) | (2,510 | ) | (2,848 | ) | ||||||||||
| Merger-related expenses | (901 | ) | (128 | ) | — | (1,029 | ) | — | ||||||||||||
| Noninterest expense used for efficiency ratio | $ | 29,898 | $ | 30,288 | $ | 27,329 | $ | 60,186 | $ | 53,522 | ||||||||||
| Net interest income, tax equivalent(1) | $ | 40,902 | $ | 38,491 | $ | 39,671 | $ | 79,393 | $ | 79,467 | ||||||||||
| Noninterest income | 12,347 | 11,644 | 10,218 | 23,991 | 22,042 | |||||||||||||||
| Investment securities gains, net | (395 | ) | (40 | ) | (42 | ) | (435 | ) | (69 | ) | ||||||||||
| Net revenues used for efficiency ratio | $ | 52,854 | $ | 50,095 | $ | 49,847 | $ | 102,949 | $ | 101,440 | ||||||||||
| Efficiency ratio (2) | 56.57 | % | 60.46 | % | 54.83 | % | 58.46 | % | 52.76 | % | ||||||||||
(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.
| Adjusted Allowance for Credit Losses Ratio | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| (Dollars in thousands) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Loans held for investment, net of unearned income | $ | 3,611,152 | $ | 3,250,035 | $ | 3,245,012 | $ | 3,268,644 | $ | 3,330,156 | ||||||||||
| PPP loans | (402 | ) | (3,037 | ) | (30,841 | ) | (89,354 | ) | (184,390 | ) | ||||||||||
| Core loans | $ | 3,610,750 | $ | 3,246,998 | $ | 3,214,171 | $ | 3,179,290 | $ | 3,145,766 | ||||||||||
| Allowance for credit losses | $ | 52,350 | $ | 46,200 | $ | 48,700 | $ | 47,900 | $ | 48,000 | ||||||||||
| Allowance for credit losses ratio | 1.45 | % | 1.42 | % | 1.50 | % | 1.47 | % | 1.44 | % | ||||||||||
| Adjusted allowance for credit losses ratio(1) | 1.45 | % | 1.42 | % | 1.52 | % | 1.51 | % | 1.53 | % | ||||||||||
(1) Allowance for credit losses divided by core loans.
| Core Loans/Core Commercial Loans | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
| (Dollars in thousands) | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||
| Commercial loans: | |||||||||||||||
| Commercial and industrial | $ | 986,137 | $ | 898,942 | $ | 902,314 | $ | 927,258 | $ | 982,092 | |||||
| Agricultural | 110,263 | 94,649 | 103,417 | 106,356 | 107,834 | ||||||||||
| Commercial real estate | 1,859,940 | 1,723,891 | 1,704,541 | 1,699,358 | 1,705,789 | ||||||||||
| Total commercial loans | $ | 2,956,340 | $ | 2,717,482 | $ | 2,710,272 | $ | 2,732,972 | $ | 2,795,715 | |||||
| Consumer loans: | |||||||||||||||
| Residential real estate | $ | 578,804 | $ | 463,676 | $ | 466,322 | $ | 468,136 | $ | 468,581 | |||||
| Other consumer | 76,008 | 68,877 | 68,418 | 67,536 | 65,860 | ||||||||||
| Total consumer loans | $ | 654,812 | $ | 532,553 | $ | 534,740 | $ | 535,672 | $ | 534,441 | |||||
| Loans held for investment, net of unearned income | $ | 3,611,152 | $ | 3,250,035 | $ | 3,245,012 | $ | 3,268,644 | $ | 3,330,156 | |||||
| PPP loans | $ | 402 | $ | 3,037 | $ | 30,841 | $ | 89,354 | $ | 184,390 | |||||
| Acquired IOFB loan portfolio | $ | 281,470 | $ | — | $ | — | $ | — | $ | — | |||||
| Core loans(1) | $ | 3,610,750 | $ | 3,246,998 | $ | 3,214,171 | $ | 3,179,290 | $ | 3,145,766 | |||||
| Adjusted core loans(2) | $ | 3,329,280 | $ | 3,246,998 | $ | 3,214,171 | $ | 3,179,290 | $ | 3,145,766 | |||||
| Core commercial loans(3) | $ | 2,955,938 | $ | 2,714,445 | $ | 2,679,431 | $ | 2,643,618 | $ | 2,611,325 | |||||
(1) Core loans are calculated as loans held for investment, net of unearned income less PPP loans.
(2) Adjusted core loans are calculated as loans held for investment, net of unearned income, less PPP loans and the acquired IOFB loan portfolio.
(3) Core commercial loans are calculated as total commercial loans less PPP loans.
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. Funk | Barry S. Ray | ||
| Chief Executive Officer | Senior Executive Vice President and Chief Financial Officer | ||
| 319.356.5800 | 319.356.5800 | ||
