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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 23, 2024
MidWestOne Financial Group, Inc.
(Exact name of registrant as specified in its charter)
Commission file number 001-35968
 
Iowa 42-1206172
(State or other jurisdiction
of incorporation)
 
(I.R.S. Employer
Identification Number)
102 South Clinton Street
Iowa City, Iowa 52240
(Address of principal executive offices, including zip code)
(319) 356-5800
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
 
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $1.00 par valueMOFGThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐


Item 2.02.     Results of Operations and Financial Condition.
On January 25, 2024, MidWestOne Financial Group, Inc. (the “Company”) issued a press release announcing its earnings for the three months and year ended December 31, 2023. The press release is furnished herewith as Exhibit 99.1. In addition, the Company is providing a financial supplement furnished as Exhibit 99.2 to this Current Report on Form 8-K.
The information in this item and the attached press release and financial supplement shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.
Item 8.01.    Other Events.
The Board of Directors of the Company declared a cash dividend of $0.2425 per common share on January 23, 2024. The dividend is payable March 15, 2024, to shareholders of record at the close of business on March 1, 2024.
Item 9.01.    Financial Statements and Exhibits.
(d)    Exhibits.
MidWestOne Financial Group, Inc. press release dated January 25, 2024
MidWestOne Financial Group, Inc. financial supplement dated January 25, 2024
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MIDWESTONE FINANCIAL GROUP, INC.
Dated:January 25, 2024By:
/s/ BARRY S. RAY
Barry S. Ray
Chief Financial Officer




mofglogoa01a.jpg
FOR IMMEDIATE RELEASEJanuary 25, 2024

MIDWESTONE FINANCIAL GROUP, INC.
REPORTS FINANCIAL RESULTS FOR THE
FOURTH QUARTER AND FULL YEAR OF 2023

Iowa City, Iowa - MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported results for the fourth quarter and full year of 2023.
Fourth Quarter 2023 Summary1
•Net income of $2.7 million, or $0.17 per diluted common share, including, on a pre-tax basis, securities net losses of $5.7 million, merger-related costs of $245 thousand, voluntary early retirement program costs of $438 thousand, and a negative mortgage servicing right valuation adjustment of $105 thousand.
•Sold $115.2 million of securities in a balance sheet repositioning, proceeds were utilized to purchase higher yielding debt securities and reduce short-term borrowings.
•Annualized loan growth of 6.1%.
•Deposits, excluding brokered deposits, increased $31.4 million, or 0.6%, the second sequential quarter of deposit growth.
•Nonperforming assets ratio remained stable at 0.47%; net charge-off ratio was 0.20%.
•Received all regulatory approvals for the previously announced acquisition of Denver Bankshares, Inc, which is expected to close early in the first quarter of 2024.
Full Year 2023 Summary1
•Net income for the full year was $20.9 million, or $1.33 per diluted common share.
•Sold $346.9 million of securities to reposition the balance sheet, proceeds were utilized to purchase higher yielding debt securities and reduce short-term borrowings.
•Net charge-off ratio declined 10 basis points ("bps") to 0.09%.
•Tangible book value of $27.902, an increase of $2.30 or 9%.
Subsequent Events
•On January 23, 2024, the Board of Directors declared a cash dividend of $0.2425 per common share, payable on March 15, 2024 to shareholders of record as of the close of business on March 1, 2024.
CEO Commentary
Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “I'm pleased with our balance sheet trends, as we delivered 6.1% annualized loan growth during the fourth quarter of 2023, and continue to benefit from the expansion of our major market banking teams. We also achieved core deposit growth in the quarter, and remain cautiously optimistic that we can grow our core deposit franchise through the year ahead. That said, we remain liability sensitive, and funding cost pressure continued to impact our margins and earnings through the fourth quarter, though that pressure has been moderating.”

Mr. Reeves concluded, "More importantly, we are well ahead of plan in executing our strategic initiatives designed to improve our performance and position the Bank to deliver financial results at the median of our peer group by the end of 2025. Highlights from 2023 include outstanding expense discipline and re-allocation, our geographic repositioning with the Denver Bankshares merger expected to close on January 31st, key new hires in our Iowa Metro and Twin Cities markets, the hiring of a talented executive to lead our wealth management business, and the expansion of our specialty business lines with the recruitment of an agri-business team. We are rapidly scaling in our core markets while adding new business lines, which taken together, provide visibility to improved growth and returns."
1 Fourth Quarter Summary compares to the third quarter of 2023 (the "linked quarter") unless noted. Full Year 2023 Summary compares to the full year 2022 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 endedYear Ended
(Dollars in thousands, except per share amounts and as noted)December 31,September 30,December 31,December 31,December 31,
20232023202220232022
Financial Results
Revenue$36,421 $44,436 $54,504 $162,595 $213,877 
Credit loss expense 1,768 1,551 572 5,849 4,492 
Noninterest expense32,131 31,544 34,440 131,913 132,788 
Net income 2,730 9,138 16,002 20,859 60,835 
Per Common Share
Diluted earnings per share$0.17 $0.58 $1.02 $1.33 $3.87 
Book value33.41 32.21 31.54 33.41 31.54 
Tangible book value(1)
27.90 26.60 25.60 27.90 25.60 
Balance Sheet & Credit Quality
Loans In millions
$4,126.9 $4,066.0 $3,840.5 $4,126.9 $3,840.5 
Investment securities In millions
1,870.3 1,958.5 2,283.0 1,870.3 2,283.0 
Deposits In millions
5,395.7 5,363.3 5,468.9 5,395.7 5,468.9 
Net loan charge-offs In millions
2.1 0.5 3.5 3.7 6.6 
Allowance for credit losses ratio1.25 %1.27 %1.28 %1.25 %1.28 %
Selected Ratios
Return on average assets0.17 %0.56 %0.97 %0.32 %0.97 %
Net interest margin, tax equivalent(1)
2.22 %2.35 %2.93 %2.46 %2.92 %
Return on average equity2.12 %7.14 %13.26 %4.12 %12.16 %
Return on average tangible equity(1)
3.57 %9.68 %17.85 %6.14 %15.89 %
Efficiency ratio(1)
70.16 %66.06 %57.79 %67.28 %56.98 %
(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

REVENUE REVIEW

RevenueChangeChange
4Q23 vs4Q23 vs
(Dollars in thousands)4Q233Q234Q223Q234Q22
Net interest income$32,559 $34,575 $43,564 (6)%(25)%
Noninterest income3,862 9,861 10,940 (61)%(65)%
Total revenue, net of interest expense$36,421 $44,436 $54,504 (18)%(33)%
Total revenue for the fourth quarter of 2023 decreased $8.0 million from the third quarter of 2023 and decreased $18.1 million from the fourth quarter of 2022 due to lower net interest income and noninterest income.
Net interest income of $32.6 million for the fourth quarter of 2023 decreased $2.0 million from the third quarter of 2023 primarily due to higher funding costs, partially offset by lower volumes of interest bearing liabilities, higher volumes of interest earning assets, and higher interest earning asset yields. When compared to the fourth quarter of 2022, net interest income decreased $11.0 million primarily due to higher funding costs and volumes and lower interest earning asset volumes, partially offset by higher interest earning asset yields.
The Company's tax equivalent net interest margin was 2.22% in the fourth quarter of 2023, compared to 2.35% in the third quarter of 2023, as higher earning asset yields were more than offset by increased funding costs. The cost of interest bearing liabilities increased 32 bps, to 2.65%, due primarily to interest bearing deposit costs of 2.39% and short-term borrowing costs of 4.91%, which increased 34 bps and 62 bps, respectively from the third quarter of 2023. Total interest earning assets yield increased 12 bps from the third quarter of 2023, as a result of an increase in loan yield of 15 bps. Our cycle-to-date interest bearing deposit beta was 40%.
The tax equivalent net interest margin was 2.22% in the fourth quarter of 2023, compared to 2.93% in the fourth quarter of 2022, driven by higher funding costs and volumes and lower interest earning asset volumes, partially offset by higher interest earning asset yields. The cost of interest bearing liabilities increased 157 bps to 2.65%, due to interest bearing deposit costs of 2.39%, short-term borrowing costs of 4.91%, and long-term debt costs of 6.79%, which increased 156 bps, 237 bps and 125 bps, respectively from the fourth quarter of 2022. Total interest earning assets yield increased 59 bps from the fourth quarter of 2022, primarily as a result of an increase in loan yields of 68 bps.


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Noninterest IncomeChangeChange
4Q23 vs4Q23 vs
(In thousands)4Q233Q234Q223Q234Q22
Investment services and trust activities$3,193 $3,004 $2,666 6 %20 %
Service charges and fees2,148 2,146 2,028 — %6 %
Card revenue1,802 1,817 1,784 (1)%1 %
Loan revenue909 1,462 966 (38)%(6)%
Bank-owned life insurance656 626 637 5 %3 %
Investment securities gains (losses), net(5,696)79 (1)n/mn/m
Other850 727 2,860 17 %(70)%
Total noninterest income$3,862 $9,861 $10,940 (61)%(65)%
Results are not meaningful (n/m)
Noninterest income for the fourth quarter of 2023 decreased $6.0 million from the linked quarter, primarily due to investment securities losses, net, of $5.7 million in the fourth quarter of 2023, coupled with a $0.6 million unfavorable change in loan revenue. Investment securities losses stemmed from a balance sheet repositioning in the fourth quarter of 2023, in which $115.2 million of securities, yielding 2.26%, were sold and sale proceeds of $109.5 million were utilized to purchase $63.3 million of securities, yielding 5.62%, with the balance utilized to reduce short-term borrowings. Loan revenue primarily reflected an unfavorable quarter-over quarter change in the fair value of our mortgage servicing rights of $0.4 million and a decline of $0.1 million in revenue from our mortgage origination business.
Noninterest income for the fourth quarter of 2023 decreased $7.1 million from the fourth quarter of 2022 due to investment securities losses, net, of $5.7 million and a $2.0 million decline in other revenue, partially offset by an increase of $0.5 million in investment services and trust activities revenue. Investment securities losses stemmed from the balance sheet repositioning previously described. Other revenue in the fourth quarter of 2022 benefited from a nonrecurring bargain purchase gain of $2.5 million recognized in connection with the acquisition of Iowa First Bancshares Corp., which was partially offset by an increase of $0.5 million in swap origination fee income. The increase in investment services and trust activities revenue was driven by higher assets under management.

EXPENSE REVIEW
Noninterest ExpenseChangeChange
4Q23 vs2Q23 vs
(In thousands)4Q233Q234Q223Q234Q22
Compensation and employee benefits$17,859 $18,558 $20,438 (4)%(13)%
Occupancy expense of premises, net2,309 2,405 2,663 (4)%(13)%
Equipment2,466 2,123 2,327 16 %6 %
Legal and professional2,269 1,678 1,846 35 %23 %
Data processing1,411 1,504 1,375 (6)%3 %
Marketing700 782 947 (10)%(26)%
Amortization of intangibles1,441 1,460 1,770 (1)%(19)%
FDIC insurance900 783 405 15 %122 %
Communications183 206 285 (11)%(36)%
Foreclosed assets, net45 2 48 2150 %(6)%
Other2,548 2,043 2,336 25 %9 %
     Total noninterest expense $32,131 $31,544 $34,440 2 %(7)%
Merger-related Expenses
(In thousands)4Q233Q234Q22
Compensation and employee benefits$— $— $189 
Equipment— — 4 
Legal and professional180 11 54 
Data processing— — 131 
Marketing38 — 2 
Other27 — 29 
Total merger-related expenses$245 $11 $409 


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Noninterest expense for the fourth quarter of 2023 increased $0.6 million from the linked quarter primarily as a result of increases of $0.6 million and $0.5 million in legal and professional and other, respectively. The largest offset to increases in noninterest expense was a decline of $0.7 million in compensation and employee benefits. The increase in legal and professional expenses stemmed primarily from higher executive recruitment and merger-related expenses. The increase in other noninterest expense was driven by various changes, including increases in loan expenses, travel, meals and entertainment, and operating losses. The largest driver in the decrease in compensation and employee benefits was a reduction in incentive and commission expense.
Noninterest expense for the fourth quarter of 2023 decreased $2.3 million from the fourth quarter of 2022 due primarily to a $2.6 million decline in compensation and employee benefits, which reflected a $1.6 million reduction in incentives and commissions, and a $0.6 million decline in employee benefits. The $0.3 million decrease in occupancy expense reflected a write-down of assets held for sale in the fourth quarter of 2022, which did not recur in the fourth quarter of 2023. Partially offsetting the decreases in noninterest expense was an increase of $0.5 million in FDIC insurance expense and an increase of $0.4 million in legal and professional expense, which stemmed primarily from higher recruitment and merger-related expenses.
The Company recognized a tax benefit in the fourth quarter of 2023 to reduce the full-year 2023 effective income tax rate to 16.0%, as compared to 20.6% in the prior year. The decrease in the 2023 annual effective income tax rate reflected lower taxable income and a larger benefit from tax exempt investment income. The effective income tax rate for 2024 is expected to be 20-22%.

BALANCE SHEET REVIEW
Total assets were $6.43 billion at December 31, 2023, compared to $6.47 billion at September 30, 2023 and $6.58 billion at December 31, 2022. The decrease from September 30, 2023 was primarily driven by lower securities balances as a result of the balance sheet repositioning, partially offset by higher loan balances. Compared to December 31, 2022, the decrease was primarily due to lower securities balances resulting from balance sheet repositioning in the first and fourth quarters of 2023, partially offset by higher loan balances.
Loans Held for InvestmentDecember 31, 2023September 30, 2023December 31, 2022
Balance% of TotalBalance% of TotalBalance% of Total
(Dollars in thousands)
Commercial and industrial$1,075,003 26.0 %$1,078,773 26.5 %$1,055,162 27.5 %
Agricultural118,414 2.9 111,950 2.8 115,320 3.0 
Commercial real estate
Construction and development323,195 7.8 331,868 8.2 270,991 7.1 
Farmland184,955 4.5 182,621 4.5 183,913 4.8 
Multifamily383,178 9.3 337,509 8.3 252,129 6.6 
Other1,333,982 32.4 1,324,019 32.5 1,272,985 33.1 
Total commercial real estate2,225,310 54.0 2,176,017 53.5 1,980,018 51.6 
Residential real estate
One-to-four family first liens459,798 11.1 456,771 11.2 451,210 11.7 
One-to-four family junior liens180,639 4.4 173,275 4.3 163,218 4.2 
Total residential real estate640,437 15.5 630,046 15.5 614,428 15.9 
Consumer67,783 1.6 69,183 1.7 75,596 2.0 
Loans held for investment, net of unearned income$4,126,947 100.0 %$4,065,969 100.0 %$3,840,524 100.0 %
Total commitments to extend credit$1,210,796 $1,251,345 $1,190,607 
Loans held for investment, net of unearned income, increased $61.0 million, or 1.5%, to $4.13 billion from $4.07 billion at September 30, 2023 and $286.4 million, or 7.5%, from December 31, 2022. This increase from the third quarter of 2023 was driven by new loan production in the fourth quarter of 2023 and higher line of credit usage. The increase from the fourth quarter of 2022 was due to new loan production.
Investment SecuritiesDecember 31, 2023September 30, 2023December 31, 2022
(Dollars in thousands)Balance% of TotalBalance% of TotalBalance% of Total
Available for sale$795,134 42.5 %$872,770 44.6 %$1,153,547 50.5 %
Held to maturity1,075,190 57.5 %1,085,751 55.4 %1,129,421 49.5 %
Total investment securities$1,870,324 $1,958,521 $2,282,968 
Investment securities at December 31, 2023 were $1.87 billion, decreasing $88.2 million from September 30, 2023 and $412.6 million from December 31, 2022. The decrease from the third quarter of 2023 was primarily due to the balance sheet repositioning previously discussed, as well as principal cash flows received from scheduled


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payments, calls, and maturities. The decrease from the fourth quarter of 2022 was primarily due to balance sheet repositioning in the first and fourth quarters of 2023.
DepositsDecember 31, 2023September 30, 2023December 31, 2022
(Dollars in thousands)Balance% of TotalBalance% of TotalBalance% of Total
Noninterest bearing deposits$897,053 16.6 %$924,213 17.2 %$1,053,450 19.3 %
Interest checking deposits1,320,435 24.5 1,334,481 24.9 1,624,278 29.8 
Money market deposits1,105,493 20.5 1,127,287 21.0 937,340 17.1 
Savings deposits650,655 12.1 619,805 11.6 664,169 12.1 
Time deposits of $250 and under752,214 13.9 703,646 13.1 559,466 10.2 
Total core deposits4,725,850 87.6 4,709,432 87.8 4,838,703 88.5 
Brokered time deposits221,039 4.1 220,063 4.1 126,767 2.3 
Time deposits over $250 448,784 8.3 433,829 8.1 503,472 9.2 
Total deposits
$5,395,673 100.0 %$5,363,324 100.0 %$5,468,942 100.0 %

Total deposits increased $32.3 million, or 0.6%, to $5.40 billion from $5.36 billion at September 30, 2023. Core deposits increased $16.4 million from September 30, 2023. Total deposits decreased $73.3 million, or 1.3%, from $5.47 billion at December 31, 2022. Brokered deposits increased $94.3 million from $126.8 million at December 31, 2022, with core deposits declining $112.9 million from December 31, 2022.

Borrowed FundsDecember 31, 2023September 30, 2023December 31, 2022
(Dollars in thousands)Balance% of TotalBalance% of TotalBalance% of Total
Short-term borrowings$300,264 70.9 %$373,956 75.0 %$391,873 73.8 %
Long-term debt123,296 29.1 %124,526 25.0 %139,210 26.2 %
Total borrowed funds$423,560 $498,482 $531,083 

Total borrowed funds were $423.6 million at December 31, 2023, a decrease of $74.9 million from September 30, 2023 and a decrease of $107.5 million from December 31, 2022. The decrease when compared to the linked quarter was due to lower Federal Home Loan Bank overnight borrowings and securities sold under agreements to repurchase, partially offset by higher Bank Term Funding Program borrowings. The decrease when compared to December 31, 2022 was primarily due to lower Federal Home Loan Bank overnight borrowings and securities sold under agreements to repurchase, partially offset by Bank Term Funding Program borrowings of $285 million, as compared to no such borrowings in the prior year.
CapitalDecember 31,September 30,December 31,
(Dollars in thousands)
2023 (1)
20232022
Total shareholders' equity$524,378 $505,411 $492,793 
Accumulated other comprehensive loss(64,899)(84,606)(89,047)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio8.58 %8.58 %8.35 %
Common equity tier 1 capital to risk-weighted assets ratio9.59 %9.52 %9.28 %
Tier 1 capital to risk-weighted assets ratio10.38 %10.31 %10.05 %
Total capital to risk-weighted assets ratio12.53 %12.45 %12.07 %
MidWestOne Bank
Tier 1 leverage to average assets ratio9.39 %9.51 %9.36 %
Common equity tier 1 capital to risk-weighted assets ratio11.54 %11.43 %11.29 %
Tier 1 capital to risk-weighted assets ratio11.54 %11.43 %11.29 %
Total capital to risk-weighted assets ratio12.49 %12.36 %12.10 %
(1) Regulatory capital ratios for December 31, 2023 are preliminary
Total shareholders' equity at December 31, 2023 increased $19.0 million from September 30, 2023, driven by a decrease in accumulated other comprehensive loss. Total shareholders' equity at December 31, 2023 increased $31.6 million from December 31, 2022, driven by a decrease in accumulated other comprehensive loss and an increase in retained earnings.


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Accumulated other comprehensive loss at December 31, 2023 decreased $19.7 million compared to September 30, 2023, primarily due to an increase in available for sale securities valuations and the recognition of the loss from the fourth quarter sale of securities. Accumulated other comprehensive loss decreased $24.1 million from December 31, 2022.
On January 23, 2024, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable March 15, 2024, to shareholders of record at the close of business on March 1, 2024.
No common shares were repurchased by the Company during the period September 30, 2023 through December 31, 2023 or for the subsequent period through January 25, 2024. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares.


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CREDIT QUALITY REVIEW

Credit QualityAs of or For the Three Months Ended
December 31,September 30,December 31,
(Dollars in thousands)202320232022
Credit loss expense related to loans$1,968 $1,651 $572 
Net charge-offs2,068 451 3,472 
Allowance for credit losses51,500 51,600 49,200 
Pass$3,846,012 $3,785,908 $3,635,766 
Special Mention / Watch113,029 163,222 108,064 
Classified167,906 116,839 96,694 
Loans greater than 30 days past due and accruing$10,778 $6,449 $6,680 
Nonperforming loans$26,359 $28,987 $15,821 
Nonperforming assets30,288 28,987 15,924 
Net charge-off ratio(1)
0.20 %0.04 %0.36 %
Classified loans ratio(2)
4.07 %2.87 %2.52 %
Nonperforming loans ratio(3)
0.64 %0.71 %0.41 %
Nonperforming assets ratio(4)
0.47 %0.45 %0.24 %
Allowance for credit losses ratio(5)
1.25 %1.27 %1.28 %
Allowance for credit losses to nonaccrual loans ratio(6)
198.91 %178.63 %322.50 %
(1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
(3) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(5) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
(6)Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.
Compared to the linked quarter, the nonperforming loans ratio declined 7 bps and the nonperforming assets ratio increased 2 bps. The classified loans ratio increased 120 bps from the linked quarter, primarily due to the downgrade of three larger commercial relationships. When compared to the prior year, the nonperforming loans and assets ratios both increased 23 bps, to 0.64% and 0.47%.
As of December 31, 2023, the allowance for credit losses was $51.5 million and the allowance for credit losses ratio was 1.25%, compared with $51.6 million and 1.27% at September 30, 2023. When compared to the linked quarter, credit loss expense of $1.8 million in the fourth quarter of 2023 was primarily attributable to loan growth, with the increase compared to the prior year stemming from loan growth and individually evaluated loans.
Nonperforming Loans Roll ForwardNonaccrual90+ Days Past Due & Still AccruingTotal
(Dollars in thousands)
Balance at September 30, 2023
$28,887 $100 $28,987 
Loans placed on nonaccrual or 90+ days past due & still accruing4,377 432 4,809 
Proceeds related to repayment or sale(1,285)(1)(1,286)
Loans returned to accrual status or no longer past due(289)1 (288)
Charge-offs(1,955)(64)(2,019)
Transfers to foreclosed assets(3,844)— (3,844)
Balance at December 31, 2023
$25,891 $468 $26,359 

CONFERENCE CALL DETAILS
The Company will host a conference call for investors at 11:00 a.m. CT on Friday, January 26, 2024. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=0492f968&confId=59127. 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 827546 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until April 25, 2024 by calling 1-866-813-9403 and using the replay access code of 572754. 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.


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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”.


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Cautionary Note Regarding Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.
Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including with Iowa First Bancshares Corp. and 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; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of recent and potential additional increases in inflation and interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including the new 1.0% excise tax on stock buybacks by publicly traded companies and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at other banks that resulted in failure of those institutions; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.


9

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
FIVE QUARTER CONSOLIDATED BALANCE SHEETS
 December 31,September 30,June 30,March 31,December 31,
(In thousands)20232023202320232022
ASSETS
Cash and due from banks$76,237 $71,015 $75,955 $63,945 $83,990 
Interest earning deposits in banks5,479 3,773 68,603 5,273 2,445 
Federal funds sold11 — — — — 
Total cash and cash equivalents81,727 74,788 144,558 69,218 86,435 
Debt securities available for sale at fair value795,134 872,770 903,520 954,074 1,153,547 
Held to maturity securities at amortized cost1,075,190 1,085,751 1,099,569 1,117,709 1,129,421 
Total securities1,870,324 1,958,521 2,003,089 2,071,783 2,282,968 
Loans held for sale1,045 2,528 2,821 2,553 612 
Gross loans held for investment4,138,352 4,078,060 4,031,377 3,932,900 3,854,791 
Unearned income, net(11,405)(12,091)(12,728)(13,535)(14,267)
Loans held for investment, net of unearned income4,126,947 4,065,969 4,018,649 3,919,365 3,840,524 
Allowance for credit losses(51,500)(51,600)(50,400)(49,800)(49,200)
Total loans held for investment, net4,075,447 4,014,369 3,968,249 3,869,565 3,791,324 
Premises and equipment, net85,742 85,589 85,831 86,208 87,125 
Goodwill62,477 62,477 62,477 62,477 62,477 
Other intangible assets, net24,069 25,510 26,969 28,563 30,315 
Foreclosed assets, net3,929 — — — 103 
Other assets222,780 244,036 227,495 219,585 236,517 
Total assets$6,427,540 $6,467,818 $6,521,489 $6,409,952 $6,577,876 
LIABILITIES          
Noninterest bearing deposits$897,053 $924,213 $897,923 $989,469 $1,053,450 
Interest bearing deposits4,498,620 4,439,111 4,547,524 4,565,684 4,415,492 
Total deposits5,395,673 5,363,324 5,445,447 5,555,153 5,468,942 
Short-term borrowings300,264 373,956 362,054 143,981 391,873 
Long-term debt123,296 124,526 125,752 137,981 139,210 
Other liabilities83,929 100,601 86,895 72,187 85,058 
Total liabilities5,903,162 5,962,407 6,020,148 5,909,302 6,085,083 
SHAREHOLDERS' EQUITY          
Common stock16,581 16,581 16,581 16,581 16,581 
Additional paid-in capital302,157 301,889 301,424 300,966 302,085 
Retained earnings294,784 295,862 290,548 286,767 289,289 
Treasury stock(24,245)(24,315)(24,508)(24,779)(26,115)
Accumulated other comprehensive loss(64,899)(84,606)(82,704)(78,885)(89,047)
Total shareholders' equity524,378 505,411 501,341 500,650 492,793 
Total liabilities and shareholders' equity$6,427,540 $6,467,818 $6,521,489 $6,409,952 $6,577,876 




10

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
FIVE QUARTER AND YEAR TO DATE CONSOLIDATED STATEMENTS OF INCOME
 Three Months EndedYear Ended
December 31,September 30,June 30,March 31,December 31,December 31,December 31,
(In thousands, except per share data)202320232023202320222023 2022
Interest income
Loans, including fees$54,093 $51,870 $49,726 $46,490 $43,769 $202,179 $148,284 
Taxable investment securities9,274 9,526 9,734 10,444 10,685 38,978 39,019 
Tax-exempt investment securities1,789 1,802 1,822 2,127 2,303 7,540 9,379 
Other230 374 68 244 — 916 77 
Total interest income65,386 63,572 61,350 59,305 56,757 249,613 196,759 
Interest expense
Deposits27,200 23,128 20,117 15,319 9,127 85,764 20,245 
Short-term borrowings3,496 3,719 2,118 1,786 1,955 11,119 3,070 
Long-term debt2,131 2,150 2,153 2,124 2,111 8,558 7,086 
Total interest expense32,827 28,997 24,388 19,229 13,193 105,441 30,401 
Net interest income32,559 34,575 36,962 40,076 43,564 144,172 166,358 
Credit loss expense 1,768 1,551 1,597 933 572 5,849 4,492 
Net interest income after credit loss expense30,791 33,024 35,365 39,143 42,992 138,323 161,866 
Noninterest income (loss)
Investment services and trust activities3,193 3,004 3,119 2,933 2,666 12,249 11,223 
Service charges and fees2,148 2,146 2,047 2,008 2,028 8,349 7,477 
Card revenue1,802 1,817 1,847 1,748 1,784 7,214 7,210 
Loan revenue909 1,462 909 1,420 966 4,700 10,504 
Bank-owned life insurance656 626 616 602 637 2,500 2,305 
Investment securities (losses) gains, net(5,696)79 (2)(13,170)(1)(18,789)271 
Other850 727 210 413 2,860 2,200 8,529 
Total noninterest income (loss)3,862 9,861 8,746 (4,046)10,940 18,423 47,519 
Noninterest expense
Compensation and employee benefits17,859 18,558 20,386 19,607 20,438 76,410 78,103 
Occupancy expense of premises, net2,309 2,405 2,574 2,746 2,663 10,034 10,272 
Equipment2,466 2,123 2,435 2,171 2,327 9,195 8,693 
Legal and professional2,269 1,678 1,682 1,736 1,846 7,365 8,646 
Data processing1,411 1,504 1,521 1,363 1,375 5,799 5,574 
Marketing700 782 1,142 986 947 3,610 4,272 
Amortization of intangibles1,441 1,460 1,594 1,752 1,770 6,247 6,069 
FDIC insurance900 783 862 749 405 3,294 1,660 
Communications183 206 260 261 285 910 1,125 
Foreclosed assets, net45 2 (6)(28)48 13 (18)
Other2,548 2,043 2,469 1,976 2,336 9,036 8,392 
Total noninterest expense32,131 31,544 34,919 33,319 34,440 131,913 132,788 
Income before income tax expense2,522 11,341 9,192 1,778 19,492 24,833 76,597 
Income tax (benefit) expense(208)2,203 1,598 381 3,490 3,974 15,762 
Net income $2,730 $9,138 $7,594 $1,397 $16,002 $20,859 $60,835 
Earnings per common share
Basic$0.17 $0.58 $0.48 $0.09 $1.02 $1.33 $3.89 
Diluted$0.17 $0.58 $0.48 $0.09 $1.02 $1.33 $3.87 
Weighted average basic common shares outstanding15,693 15,689 15,680 15,650 15,624 15,678 15,649 
Weighted average diluted common shares outstanding15,756 15,711 15,689 15,691 15,693 15,725 15,701 
Dividends paid per common share$0.2425 $0.2425 $0.2425 $0.2425 $0.2375 $0.9700 $0.9500 






11

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
FINANCIAL STATISTICS
As of or for the Three Months EndedAs of or for the Year Ended
December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands, except per share amounts)20232023202220232022
Earnings:
Net interest income$32,559 $34,575 $43,564 $144,172 $166,358 
Noninterest income3,862 9,861 10,940 18,423 47,519 
     Total revenue, net of interest expense36,421 44,436 54,504 162,595 213,877 
Credit loss expense1,768 1,551 572 5,849 4,492 
Noninterest expense32,131 31,544 34,440 131,913 132,788 
     Income before income tax expense 2,522 11,341 19,492 24,833 76,597 
Income tax (benefit) expense (208)2,203 3,490 3,974 15,762 
     Net income $2,730 $9,138 $16,002 $20,859 $60,835 
Per Share Data:
Diluted earnings $0.17 $0.58 $1.02 $1.33 $3.87 
Book value33.41 32.21 31.54 33.41 31.54 
Tangible book value(1)
27.90 26.60 25.60 27.90 25.60 
Ending Balance Sheet:
Total assets$6,427,540 $6,467,818 $6,577,876 $6,427,540 $6,577,876 
Loans held for investment, net of unearned income4,126,947 4,065,969 3,840,524 4,126,947 3,840,524 
Total securities1,870,324 1,958,521 2,282,968 1,870,324 2,282,968 
Total deposits5,395,673 5,363,324 5,468,942 5,395,673 5,468,942 
Short-term borrowings300,264 373,956 391,873 300,264 391,873 
Long-term debt123,296 124,526 139,210 123,296 139,210 
Total shareholders' equity524,378 505,411 492,793 524,378 492,793 
Average Balance Sheet:
Average total assets$6,459,705 $6,452,815 $6,516,969 $6,475,360 $6,244,284 
Average total loans4,080,243 4,019,852 3,791,880 3,993,389 3,511,192 
Average total deposits5,443,323 5,379,871 5,495,599 5,455,609 5,309,049 
Financial Ratios:
Return on average assets0.17 %0.56 %0.97 %0.32 %0.97 %
Return on average equity2.12 %7.14 %13.26 %4.12 %12.16 %
Return on average tangible equity(1)
3.57 %9.68 %17.85 %6.14 %15.89 %
Efficiency ratio(1)
70.16 %66.06 %57.79 %67.28 %56.98 %
Net interest margin, tax equivalent(1)
2.22 %2.35 %2.93 %2.46 %2.92 %
Loans to deposits ratio76.49 %75.81 %70.22 %76.49 %70.22 %
Common equity ratio8.16 %7.81 %7.49 %8.16 %7.49 %
Tangible common equity ratio(1)
6.90 %6.54 %6.17 %6.90 %6.17 %
Credit Risk Profile:
Total nonperforming loans$26,359 $28,987 $15,821 $26,359 $15,821 
Nonperforming loans ratio0.64 %0.71 %0.41 %0.64 %0.41 %
Total nonperforming assets$30,288 $28,987 $15,924 $30,288 $15,924 
Nonperforming assets ratio0.47 %0.45 %0.24 %0.47 %0.24 %
Net charge-offs$2,068 $451 $3,472 $3,749 $6,563 
Net charge-off ratio0.20 %0.04 %0.36 %0.09 %0.19 %
Allowance for credit losses$51,500 $51,600 $49,200 $51,500 $49,200 
Allowance for credit losses ratio1.25 %1.27 %1.28 %1.25 %1.28 %
Allowance for credit losses to nonaccrual ratio198.91 %178.63 %322.50 %198.91 %322.50 %
(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.




12

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
 Three Months Ended
 December 31, 2023September 30, 2023December 31, 2022
(Dollars in thousands)Average
Balance		Interest
Income/
Expense		 Average
Yield/
Cost		 
Average
Balance
Interest
Income/
Expense
 Average
Yield/
Cost		Average BalanceInterest
Income/
Expense		 Average
Yield/
Cost
ASSETS   
Loans, including fees (1)(2)(3)
$4,080,243 $54,939  5.34 % $4,019,852 $52,605 5.19 %$3,791,880 $44,494  4.66 %
Taxable investment securities1,593,699 9,274  2.31 % 1,637,259 9,526 2.31 %1,865,494 10,685  2.27 %
Tax-exempt investment securities (2)(4)
338,243 2,217  2.60 % 341,330 2,234 2.60 %422,156 2,893  2.72 %
Total securities held for investment(2)
1,931,942 11,491 2.36 %1,978,589 11,760 2.36 %2,287,650 13,578 2.35 %
Other22,937 230  3.98 % 34,195 374 4.34 %5,562 —  — %
Total interest earning assets(2)
$6,035,122 $66,660  4.38 % $6,032,636 $64,739 4.26 %$6,085,092 $58,072  3.79 %
Other assets424,583   420,179 431,877  
Total assets$6,459,705   $6,452,815 $6,516,969  
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Interest checking deposits$1,305,759 $2,991 0.91 %$1,354,597 $2,179 0.64 %$1,632,749 $1,703 0.41 %
Money market deposits1,103,637 7,954 2.86 %1,112,149 7,402 2.64 %995,512 2,369 0.94 %
Savings deposits639,766 1,493  0.93 % 603,628 749 0.49 %683,538 306  0.18 %
Time deposits1,463,498 14,762  4.00 % 1,403,504 12,798 3.62 %1,067,044 4,749  1.77 %
Total interest bearing deposits4,512,660 27,200  2.39 % 4,473,878 23,128 2.05 %4,378,843 9,127  0.83 %
Securities sold under agreements to repurchase8,661 17 0.78 %66,020 85 0.51 %151,880 437 1.14 %
Other short-term borrowings273,963 3,479 5.04 %277,713 3,634 5.19 %153,155 1,518 3.93 %
Short-term borrowings282,624 3,496  4.91 % 343,733 3,719 4.29 %305,035 1,955  2.54 %
Long-term debt124,495 2,131  6.79 % 125,737 2,150 6.78 %151,266 2,111  5.54 %
Total borrowed funds407,119 5,627 5.48 %469,470 5,869 4.96 %456,301 4,066 3.54 %
Total interest bearing liabilities$4,919,779 $32,827  2.65 % $4,943,348 $28,997 2.33 %$4,835,144 $13,193  1.08 %
Noninterest bearing deposits930,663   905,993 1,116,756  
Other liabilities98,027   95,408 86,242  
Shareholders’ equity511,236 508,066 478,827 
Total liabilities and shareholders’ equity$6,459,705   $6,452,815 $6,516,969  
Net interest income(2)
$33,833 $35,742 $44,879 
Net interest spread(2)
 1.73 %  1.93 % 2.71 %
Net interest margin(2)
2.22 %2.35 %2.93 %
Total deposits(5)
$5,443,323 $27,200 1.98 %$5,379,871 $23,128 1.71 %$5,495,599 $9,127 0.66 %
Cost of funds(6)
2.23 %1.97 %0.88 %
(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 $207 thousand, $141 thousand, and $87 thousand for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively. Loan purchase discount accretion was $765 thousand, $791 thousand, and $1.3 million for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively. Tax equivalent adjustments were $846 thousand, $735 thousand, and $725 thousand for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively. The federal statutory tax rate utilized was 21%.
(4) Interest income includes tax equivalent adjustments of $428 thousand, $432 thousand, and $590 thousand for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, 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.









13

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
 Year Ended
 December 31, 2023December 31, 2022
(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)
$3,993,389 $205,189 5.14 %$3,511,192 $150,791 4.29 %
Taxable investment securities1,684,360 38,978 2.31 %1,891,234 39,019 2.06 %
Tax-exempt investment securities (2)(4)
355,454 9,353 2.63 %435,907 11,788 2.70 %
Total securities held for investment(2)
2,039,814 48,331 2.37 %2,327,141 50,807 2.18 %
Other22,791 916  4.02 % 20,827 77 0.37 %
Total interest earning assets(2)
$6,055,994 $254,436  4.20 % $5,859,160 $201,675 3.44 %
Other assets419,366   385,124 
Total assets$6,475,360   $6,244,284 
LIABILITIES AND SHAREHOLDERS’ EQUITY
  
Interest checking deposits$1,398,538 $8,990 0.64 %$1,640,303 $5,416 0.33 %
Money market deposits1,037,123 23,924 2.31 %992,390 4,707 0.47 %
Savings deposits624,990 2,802 0.45 %674,846 1,169 0.17 %
Time deposits1,443,770 50,048 3.47 %925,592 8,953 0.97 %
Total interest bearing deposits4,504,421 85,764  1.90 % 4,233,131 20,245 0.48 %
Securities sold under agreements to repurchase94,563 975 1.03 %152,466 872 0.57 %
Other short-term borrowings199,530 10,144 5.08 %70,729 2,198 3.11 %
Short-term borrowings294,093 11,119  3.78 % 223,195 3,070 1.38 %
Long-term debt131,137 8,558  6.53 % 148,863 7,086 4.76 %
Total borrowed funds425,230 19,677 4.63 %372,058 10,156 2.73 %
Total interest bearing liabilities$4,929,651 $105,441  2.14 % $4,605,189 $30,401 0.66 %
Noninterest bearing deposits951,188   1,075,918 
Other liabilities88,770   62,706 
Shareholders’ equity505,751 500,471 
Total liabilities and shareholders’ equity$6,475,360   $6,244,284 
Net interest income(2)
$148,995 $171,274 
Net interest spread(2)
 2.06 %  2.78 %
Net interest margin(2)
2.46 %2.92 %
Total deposits(5)
$5,455,609 $85,764 1.57 %$5,309,049 $20,245 0.38 %
Cost of funds(6)
1.79 %0.54 %
(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 $522 thousand and $765 thousand for the year ended December 31, 2023 and December 31, 2022, respectively. Loan purchase discount accretion was $3.7 million and $4.6 million for the year ended December 31, 2023 and December 31, 2022, respectively. Tax equivalent adjustments were $3.0 million and $2.5 million for the year ended December 31, 2023 and December 31, 2022, respectively. The federal statutory tax rate utilized was 21%.
(4) Interest income includes tax equivalent adjustments of $1.8 million and $2.4 million for the year ended December 31, 2023 and December 31, 2022, 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.


14

Non-GAAP Measures
This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, and efficiency ratio. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.
Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity RatioDecember 31,September 30,June 30,March 31,December 31,
(Dollars in thousands, except per share data)20232023202320232022
Total shareholders’ equity$524,378 $505,411 $501,341 $500,650 $492,793 
Intangible assets, net
(86,546)(87,987)(89,446)(91,040)(92,792)
Tangible common equity$437,832 $417,424 $411,895 $409,610 $400,001 
Total assets$6,427,540 $6,467,818 $6,521,489 $6,409,952 $6,577,876 
Intangible assets, net
(86,546)(87,987)(89,446)(91,040)(92,792)
Tangible assets$6,340,994 $6,379,831 $6,432,043 $6,318,912 $6,485,084 
Book value per share$33.41 $32.21 $31.96 $31.94 $31.54 
Tangible book value per share(1)
$27.90 $26.60 $26.26 $26.13 $25.60 
Shares outstanding15,694,306 15,691,738 15,685,123 15,675,325 15,623,977 
Common equity ratio8.16 %7.81 %7.69 %7.81 %7.49 %
Tangible common equity ratio(2)
6.90 %6.54 %6.40 %6.48 %6.17 %
(1) Tangible common equity divided by shares outstanding.
(2) Tangible common equity divided by tangible assets.
Three Months EndedYear Ended
Return on Average Tangible EquityDecember 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20232023202220232022
Net income$2,730 $9,138 $16,002 $20,859 $60,835 
Intangible amortization, net of tax(1)
1,081 1,095 1,328 4,685 4,552 
Tangible net income $3,811 $10,233 $17,330 $25,544 $65,387 
Average shareholders’ equity$511,236 $508,066 $478,827 $505,751 $500,471 
Average intangible assets, net
(87,258)(88,699)(93,662)(89,539)(88,917)
Average tangible equity$423,978 $419,367 $385,165 $416,212 $411,554 
Return on average equity
2.12 %7.14 %13.26 %4.12 %12.16 %
Return on average tangible equity(2)
3.57 %9.68 %17.85 %6.14 %15.89 %
(1) The combined income tax rate utilized was 25%.
(2) Annualized tangible net income divided by average tangible equity.


15

Net Interest Margin, Tax Equivalent/
Core Net Interest Margin		Three Months EndedYear Ended
December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20232023202220232022
Net interest income$32,559 $34,575 $43,564 $144,172 $166,358 
Tax equivalent adjustments:
Loans(1)
846 735 725 3,010 2,507 
Securities(1)
428 432 590 1,813 2,409 
Net interest income, tax equivalent$33,833 $35,742 $44,879 $148,995 $171,274 
Loan purchase discount accretion(765)(791)(1,286)(3,729)(4,561)
Core net interest income$33,068 $34,951 $43,593 $145,266 $166,713 
Net interest margin2.14 %2.27 %2.84 %2.38 %2.84 %
Net interest margin, tax equivalent(2)
2.22 %2.35 %2.93 %2.46 %2.92 %
Core net interest margin(3)
2.17 %2.30 %2.84 %2.40 %2.85 %
Average interest earning assets$6,035,122 $6,032,636 $6,085,092 $6,055,994 $5,859,160 
(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 EndedYear Ended
Loan Yield, Tax Equivalent / Core Yield on LoansDecember 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20232023202220232022
Loan interest income, including fees$54,093 $51,870 $43,769 $202,179 $148,284 
Tax equivalent adjustment(1)
846 735 725 3,010 2,507 
Tax equivalent loan interest income$54,939 $52,605 $44,494 $205,189 $150,791 
Loan purchase discount accretion(765)(791)(1,286)(3,729)(4,561)
Core loan interest income$54,174 $51,814 $43,208 $201,460 $146,230 
Yield on loans5.26 %5.12 %4.58 %5.06 %4.22 %
Yield on loans, tax equivalent(2)
5.34 %5.19 %4.66 %5.14 %4.29 %
Core yield on loans(3)
5.27 %5.11 %4.52 %5.04 %4.16 %
Average loans$4,080,243 $4,019,852 $3,791,880 $3,993,389 $3,511,192 
(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 EndedYear Ended
Efficiency RatioDecember 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20232023202220232022
Total noninterest expense$32,131 $31,544 $34,440 $131,913 $132,788 
Amortization of intangibles(1,441)(1,460)(1,770)(6,247)(6,069)
Merger-related expenses(245)(11)(409)(392)(2,201)
Noninterest expense used for efficiency ratio$30,445 $30,073 $32,261 $125,274 $124,518 
Net interest income, tax equivalent(1)
$33,833 $35,742 $44,879 $148,995 $171,274 
Plus: Noninterest income3,862 9,861 10,940 18,423 47,519 
Less: Investment securities (losses) gains, net(5,696)79 (1)(18,789)271 
Net revenues used for efficiency ratio$43,391 $45,524 $55,820 $186,207 $218,522 
Efficiency ratio (2)
70.16 %66.06 %57.79 %67.28 %56.98 %
(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.









16


Contact:
Charles N. ReevesBarry S. Ray
Chief Executive OfficerChief Financial Officer
319.356.5800319.356.5800


17
Fourth Quarter 2023 Earnings Conference Call January 26, 2024

 
2 Forward Looking Statements & Non-GAAP Measures This presentation contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including with Iowa First Bancshares Corp. and 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; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of recent and potential additional increases in inflation and interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including the new 1.0% excise tax on stock buybacks by publicly traded companies and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the Israeli-Palestinian conflict and the Russian Invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at other banks that resulted in failure of those institutions; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company. Non-GAAP Measures This presentation contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, loan yield, tax equivalent, efficiency ratio, pre-tax, pre-provision earnings, return on average tangible equity, and net interest margin, tax equivalent. 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. A reconciliation of each non-GAAP measure to the most comparable GAAP measure is included, as necessary, in the Non-GAAP Financial Measures section.

 
3 Financial Highlights Total assets $ 6,427.5 (0.62) % (2.29) % Total loans held for investment, net 4,126.9 1.50 7.46 Total deposits 5,395.7 0.60 (1.34) Balance Sheet Equity to assets ratio 8.16 % 35 bps 67 bps Tangible common equity ratio (non-GAAP) 6.90 36 73 CET1 risk-based capital ratio 9.59 7 31 Total risk-based capital ratio 12.53 8 46 Loans to deposits ratio 76.49 % 68 627 Capital and Liquidity Net interest margin, tax equivalent (non-GAAP) 2.22 % (13) bps (71) bps Cost of total deposits 1.98 27 132 Return on average assets 0.17 (39) (80) Return on average tangible equity (non-GAAP) 3.57 (611) (1,428) Efficiency ratio (non-GAAP) 70.16 410 1,237 Profitability Nonperforming loans ratio 0.64 % (7) bps 23 bps Nonperforming assets ratio 0.47 2 23 Net charge-off ratio 0.20 16 (16) Allowance for credit losses ratio 1.25 (2) (3) Credit Risk Profile 4Q23 Financial Highlights – See the section "Non-GAAP Financial measures." – Note: Financial metrics as of or for the quarter ended December 31, 2023. Change vs. Dollars in millions 4Q23 3Q23 4Q22

 
4 MOFG's Five Strategic Pillars to Deliver Improved Results Exceptional Customer and Employee Engagement 1 Enhance MOFG's award winning culture with a continued focus on performance and financial results 2 Protect and enhance MOFG's dominant community bank franchise through product expansion 3 Continue to hire exceptional relationship bankers and wealth management professionals 4 Develop specialty commercial banking verticals by continuing to attract experienced professionals 5 Continue to identify and execute on opportunities for efficiency gains and cost reduction Strong Core Local Banking Model Sophisticated Commercial Banking and Wealth Management Specialty Business Lines Improving our Efficiency and Operations

 
5 Strategic Plan Update Received regulatory approvals for the acquisition of Denver Bankshares, Inc., with an expected close of January 31, 2024. The sale of MOFG's Florida operations is on-track for an expected close in 2Q 2024. Recruited EVP, Head of Wealth Management from a Super Regional Institution Added bankers in our Iowa Metro and Denver Markets Announced the sale of MOFG's Florida operations, with the proceeds to be reinvested in the acquisition of Denver Bankshares, Inc. Overall transaction projected to deliver double digit earnings accretion. Exceeded stated 2.5% operating expense run rate reduction goal 7%+ loan growth driven by an expansion of our banking team across our major markets and increased specialization in products and services, including recruited agribusiness, SBA, and TM specialists, as well as a new head of TM 4Q 2023 Full Year 2023 Technology investments: • Launched retail digital account opening platform • Implementation of new commercial loan origination platform in- flight • Launched new sophisticated fraud/AML/BSA platform Balance sheet repositioned from sale of $346 million of securities, proceeds utilized to purchase higher yielding securities and reduce borrowings Continued momentum in Wealth Management, with linked quarter revenue growth of 6% Wealth Management revenue and assets under administration growth of 9% and 10%, respectively, largely driven by teams recruited over the last two years

 
6 Deposits $ B ill io ns $5.36 $5.46 $5.48 $5.40 $5.14 $5.16 $5.17 $5.17 0.93% 0.23% 0.33% 0.05% Deposits, Ex Brokered Brokered Deposits MoM Change in Deposits, Ex Brokered 09/30/23 10/31/23 11/30/23 12/31/23

 
7 Commercial Loan Portfolio Commercial and Industrial, 31% Agricultural, 4% Farmland, 5% Construction & Development, 10% Multifamily, 11% CRE-Other, 39% Commercial Loan Portfolio Mix - December 31, 2023 Commercial Loan Portfolio of $3.4 billion Commercial Loan Growth in Targeted Regions $ in Millions $870.2 $1,023.2 $866.6 $1,072.3 Iowa Metro Twin Cities 12/31/21 12/31/22 12/31/23 $222.0 $427.7 Denver 12/31/21 12/31/22 12/31/23 11% CAGR 8% CAGR 39% CAGR

 
8 Credit $ m illi on s Nonperforming Assets $15.92 $14.44 $14.45 $28.99 $30.29 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 $ m illi on s Net Charge-Offs $3.5 $0.3 $0.9 $0.5 $2.1 4Q22 1Q23 2Q23 3Q23 4Q23 Credit Quality Measures $ millions 4Q22 1Q23 2Q23 3Q23 4Q23 Nonperforming assets ratio 0.24 % 0.23 % 0.22 % 0.45 % 0.47 % Net charge-off ratio 0.36 % 0.03 % 0.09 % 0.04 % 0.20 % Loans greater than 30 days past due and accruing $6.7 $4.9 $6.2 $6.4 $10.8 Allowance for credit losses ratio 1.28 % 1.27 % 1.25 % 1.27 % 1.25 % (1) (1) The fourth quarter of 2022 includes the identification and resolution of problem credits. (2) The third quarter of 2023 nonperforming assets increased primarily due to a single commercial relationship. (2)

 
9 Commercial Real Estate 3.8% 96.2% NOO CRE Office All Other Loans Non-Owner Occupied CRE Office December 31, 2023 $ millions 4Q23 Construction & Development $ 325.1 Farmland 186.0 Multifamily 383.8 CRE Other: NOO CRE Office 155.0 OO CRE Office 82.8 Industrial and Warehouse 381.9 Retail 265.0 Hotel 129.0 Other 322.3 Total Commercial Real Estate $ 2,230.9 Commercial Real Estate Portfolio(2) December 31, 2023 Portfolio Highlights December 31, 2023 $ millions Average NOO CRE Office outstanding principal $ 1.4 Commercial Real Estate Concentration: % of Total Capital Regulatory Threshold Construction, land development and other land 49 % 100 % Total CRE loans(1) 230 % 300 % (1)Total CRE loans includes construction, land development and other land, in addition to multifamily and NOO CRE. (2) Represents the outstanding principal balance of the CRE portfolio.

 
10 Focusing on Growth in Wealth Management $2.43 $2.44 $2.74 $2.73 $3.01 2019 2020 2021 2022 2023 $— $1.00 $2.00 $3.00 $4.00 Investment Services and Trust Activity Revenue • Asset amounts presented are in billions of dollars • Revenue amounts presented are in millions of dollars $8.0 $9.6 $11.7 $11.2 $12.2 $2.8 $3.2 $4.2 $3.9 $3.8 $5.2 $6.4 $7.5 $7.3 $8.4 Investment Services Trust 2019 2020 2021 2022 2023 $5.0 $10.0 $15.0 Wealth Management Assets Under Administration • Hired a new Head of Wealth Management, with deep expertise in investment strategies and relationship management • Building momentum in the Twin Cities with a talented wealth management team focused on leveraging strong relationships with our Retail and Commercial colleagues • Strengthened wealth management capabilities with the addition of an experienced wealth management team in Eastern Iowa that collectively has more than 120 years of experience • Strategic opening of a new office in Cedar Rapids, Iowa, a targeted metropolitan market • Invested in financial technology that will improve the customer experience and streamline internal processes 4 Year CAGR 5.7%

 
11 Financial Performance

 
12 Balance Sheet 4Q23 vs. 3Q23 4Q23 vs. 4Q22 Period end balances, $ millions 4Q23 $ Change % Change $ Change % Change Loans $4,126.9 $60.9 1 % $286.4 7 % Investment securities $1,870.3 -$88.2 (5) % -$412.7 (18) % Interest earning deposits in banks $5.5 $1.7 45 % $3.1 129 % Deposits $5,395.7 $32.4 1 % -$73.2 (1) % Borrowed funds $423.6 -$74.9 (15) % -$107.5 (20) % Shareholders' equity $524.4 $19.0 4 % $31.6 6 % 4Q23 4Q23 Period end 4Q23 3Q23 vs. 3Q23 4Q22 vs. 4Q22 Tangible book value per share (non-GAAP) $27.90 $26.60 5 % $25.60 9 % Common equity Tier 1 capital ratio 9.6 % 9.5 % 10 bps 9.3 % 30 bps AOCI $(64.9) $(84.6) 23 % $(89.0) 27 % Return on average tangible equity (non-GAAP) 3.57 % 9.68 % -611 bps 17.85 % -1428 bps – See the section "Non-GAAP Financial Measures."

 
13 Balance Sheet- Average Loans and Deposits – IB Deposits represent interest bearing deposits and NIB Deposits represent noninterest bearing deposits. – Loan yield, tax equivalent is a non-GAAP measure. See the Section "Non-GAAP Financial Measures." Av er ag e ba la nc es , $ bi lli on s Average Deposits $5.50 $5.38 $5.44 $4.38 $4.47 $4.51 $1.12 $0.91 $0.93 0.83% 2.05% 2.39% IB Deposits NIB Deposits Cost of IB Deposits 4Q22 3Q23 4Q23 Av er ag e ba la nc es , $ bi lli on s Average Loans $3.79 $4.02 $4.08 4.66% 5.19% 5.34% Loans Loan yield, tax equivalent 4Q22 3Q23 4Q23

 
14 Balance Sheet - Debt Securities Portfolio Municipals, 17% MBS, 1% CLO, 6% CMO, 21% Corporate, 55% 2.35% 2.40% 2.35% 2.36% 2.36% Total Securities Held for Investment (FTE) 4Q22 1Q23 2Q23 3Q23 4Q23 Investment Securities Yield Available for Sale Debt Securities Portfolio Mix December 31, 2023(1) Municipals, 50% MBS, 7% CMO, 43% Held to Maturity Debt Securities Portfolio Mix December 31, 2023(1) • Investment Portfolio Mix: ◦ AFS Securities - $0.8 billion ◦ HTM Securities - $1.1 billion • Investment Portfolio Duration (Years): ◦ AFS Securities - 3.1 ◦ HTM Securities - 6.3 ◦ Total Securities - 4.9 • Allowance for credit losses for investments is $0 Portfolio Composition (1) Percentages may not total 100% due to rounding.

 
15 Income Statement % Change 4Q23 vs. $ millions 4Q23 3Q23 4Q22 3Q23 4Q22 Net interest income $32.6 $34.6 $43.6 (6) % (25) % Noninterest income 3.9 9.9 10.9 (61) % (64) % Total revenue 36.5 44.5 54.5 (18) % (33) % Noninterest expense 32.1 31.5 34.4 2 % (7) % Pre-tax, pre-provision earnings (non-GAAP) $4.4 $13.0 $20.1 (66) % (78) % Credit loss expense $1.8 $1.6 $0.6 13 % 200 % Income tax (benefit) expense $(0.2) $2.2 $3.5 (109) % (106) % Net income $2.7 $9.1 $16.0 (70) % (83) % 4Q23 4Q23 4Q23 3Q23 4Q22 vs. 3Q23 vs. 4Q22 Net interest margin (non-GAAP) 2.22 % 2.35 % 2.93 % (13) bps (71) bps Efficiency ratio (non-GAAP) 70.16 % 66.06 % 57.79 % (410) bps (1,237) bps Diluted EPS $0.17 $0.58 $1.02 (71) % (83) % – See the section "Non-GAAP Financial Measures."

 
16 Non-GAAP Financial Measures

 
17 Non-GAAP Financial Measures Tangible Common Equity / Tangible Book Value per Share / Tangible Common Equity Ratio December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Total shareholders' equity $ 492,793 $ 505,411 $ 524,378 Intangible assets, net (92,792) (87,987) (86,546) Tangible common equity $ 400,001 $ 417,424 $ 437,832 Total assets $ 6,577,876 $ 6,467,818 $ 6,427,540 Intangible assets, net (92,792) (87,987) (86,546) Tangible assets $ 6,485,084 $ 6,379,831 $ 6,340,994 Book value per share $ 31.54 $ 32.21 $ 33.41 Tangible book value per share (1) $ 25.60 $ 26.60 $ 27.90 Shares outstanding 15,623,977 15,691,738 15,694,306 Tangible common equity ratio (2) 6.17 % 6.54 % 6.90 % (1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets. Loan Yield, Tax Equivalent For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Loan interest income, including fees $ 43,769 $ 51,870 $ 54,093 Tax equivalent adjustment (1) 725 735 846 Tax equivalent loan interest income $ 44,494 $ 52,605 $ 54,939 Yield on loans, tax equivalent (2) 4.66 % 5.19 % 5.34 % Average Loans $ 3,791,880 $ 4,019,852 $ 4,080,243 (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent loan interest income divided by average loans.

 
18 Non-GAAP Financial Measures Efficiency Ratio For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Total noninterest expense $ 34,440 $ 31,544 $ 32,131 Amortization of intangibles (1,770) (1,460) (1,441) Merger-related expenses (409) (11) (245) Noninterest expense used for efficiency ratio $ 32,261 $ 30,073 $ 30,445 Net interest income, tax equivalent (1) $ 44,879 $ 35,742 $ 33,833 Noninterest income 10,940 9,861 3,862 Investment securities (losses) gains, net (1) 79 (5,696) Net revenues used for efficiency ratio $ 55,820 $ 45,524 $ 43,391 Efficiency ratio 57.79 % 66.06 % 70.16 % (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 (losses) gains. Pre-tax / Pre-provision Net Revenue For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Net interest income $ 43,564 $ 34,575 $ 32,559 Noninterest income 10,940 9,861 3,862 Noninterest expense (34,440) (31,544) (32,131) Pre-tax / Pre-provision Net Revenue $ 20,064 $ 12,892 $ 4,290

 
19 Non-GAAP Financial Measures Return on Average Tangible Equity For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Net income $ 16,002 $ 9,138 $ 2,730 Intangible amortization, net of tax (1) 1,328 1,095 1,081 Tangible net income $ 17,330 $ 10,233 $ 3,811 Average shareholders' equity $ 478,827 $ 508,066 $ 511,236 Average intangible assets, net (93,662) (88,699) (87,258) Average tangible equity $ 385,165 $ 419,367 $ 423,978 Return on average equity 13.26 % 7.14 % 2.12 % Return on average tangible equity (2) 17.85 % 9.68 % 3.57 % (1) The combined income tax rate utilized was 25%. (2) Annualized tangible net income divided by average tangible equity. Net Interest Margin, Tax Equivalent For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Net interest Income $ 43,564 $ 34,575 $ 32,559 Tax equivalent adjustments: Loans (1) 725 735 846 Securities (1) 590 432 428 Net Interest Income, tax equivalent $ 44,879 $ 35,742 $ 33,833 Average interest earning assets $ 6,085,092 $ 6,032,636 $ 6,035,122 Net interest margin, tax equivalent (2) 2.93 % 2.35 % 2.22 % (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent net interest income divided by average interest earning assets.

 
v3.23.4
Cover Page
Jan. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 23, 2024
Entity Registrant Name MidWestOne Financial Group, Inc.
Entity File Number 001-35968
Entity Incorporation, State or Country Code IA
Entity Tax Identification Number 42-1206172
Entity Address, Address Line One 102 South Clinton Street
Entity Address, City or Town Iowa City
Entity Address, State or Province IA
Entity Address, Postal Zip Code 52240
City Area Code 319
Local Phone Number 356-5800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, $1.00 par value
Trading Symbol MOFG
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001412665
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