EX-99.1 2 financialresultsq32024.htm EX-99.1 Document

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FOR IMMEDIATE RELEASEOctober 24, 2024

MIDWESTONE FINANCIAL GROUP, INC.
REPORTS FINANCIAL RESULTS FOR THE
THIRD QUARTER OF 2024

Iowa City, Iowa - MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported results for the third quarter of 2024.
Third Quarter 2024 Summary1
•Completed a common equity capital raise, resulting in net proceeds to the Company of $118.6 million to facilitate a balance sheet repositioning. $140.4 million of securities impairment related to the repositioning was recognized in pre-tax earnings.
•Subsequent to quarter-end:
◦Sold $1.0 billion of debt securities with a weighted average yield of 1.58%, and a weighted average life of 5.6 years.
◦Purchased $589.8 million of debt securities, with a weighted average yield of 4.65%, and paid in full $418.7 million of Bank Term Funding Program borrowings with a weighted average cost of 4.77%.
◦The estimated earn back period for the securities losses is 4.5 years.
•Recognized a net loss for the quarter of $95.7 million, or $(6.05) per diluted common share, reflecting the effects of the capital raise and balance sheet repositioning. Adjusted earnings were $9.1 million2, or $0.582 per diluted common share, which included a $1.2 million fraud loss related to a single incident.
•Net interest margin (tax equivalent) expanded 10 basis points ("bps") to 2.51%.2
•Annualized loan growth of 3.9%.
•Noninterest bearing deposits increased 4.0% from the linked quarter.
•Nonperforming assets ratio improved 8 bps to 0.39%; classified loans declined $14.5 million to $134.8 million; net charge-off ratio was 0.16%.
CEO Commentary
Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "Our successful common equity capital raise and balance sheet repositioning are significant, transformational steps towards our goal of creating a high performing company. We were pleased with the market receptivity of the oversubscribed common equity offering and the balance sheet repositioning financial results exceeded our communicated expectations. We are appreciative of our existing and new shareholders who supported this transformation and our team who executed the strategy so well.”

Mr. Reeves continued, "We also kept our eye on the ball during the quarter, delivering positive results in a number of strategic initiatives. Our deposit franchise continues to show its strength as deposit costs rose minimally and our treasury management investments led to 4% linked quarter non-interest bearing deposit growth. Our commercial banking teams drove 4% annualized loan growth, improved asset quality, and good progress in our SBA lending and gain on sale initiatives. In addition, we continued to invest in our franchise, with both talent and technology, while maintaining expense discipline."

1 Third Quarter Summary compares to the second quarter of 2024 (the "linked quarter") unless noted.
2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
                                    

As of or for the quarter endedNine Months Ended
(Dollars in thousands, except per share amounts and as noted)September 30,June 30,September 30,September 30,September 30,
20242024202320242023
Financial Results
Revenue$(92,867)$57,901 $44,436 $9,515 $126,174 
Credit loss expense 1,535 1,267 1,551 7,491 4,081 
Noninterest expense35,798 35,761 31,544 107,124 99,782 
Net (loss) income (95,707)15,819 9,138 (76,619)18,129 
Adjusted earnings(1)
9,141 8,132 8,875 21,762 28,046 
Per Common Share
Diluted (loss) earnings per share$(6.05)$1.00 $0.58 $(4.86)$1.15 
Adjusted earnings per share(1)
0.58 0.52 0.56 1.38 1.79 
Book value27.06 34.44 32.21 27.06 32.21 
Tangible book value(1)
22.43 28.27 26.60 22.43 26.60 
Balance Sheet & Credit Quality
Loans In millions
$4,328.8 $4,287.2 $4,066.0 $4,328.8 $4,066.0 
Investment securities In millions
1,623.1 1,824.1 1,958.5 1,623.1 1,958.5 
Deposits In millions
5,368.7 5,412.4 5,363.3 5,368.7 5,363.3 
Net loan charge-offs In millions
1.7 0.5 0.5 2.4 1.7 
Allowance for credit losses ratio1.25 %1.26 %1.27 %1.25 %1.27 %
Selected Ratios
Return on average assets(5.78)%0.95 %0.56 %(1.54)%0.37 %
Net interest margin, tax equivalent(1)
2.51 %2.41 %2.35 %2.42 %2.54 %
Return on average equity(69.05)%11.91 %7.14 %(19.03)%4.81 %
Return on average tangible equity(1)
(82.78)%15.74 %9.68 %(22.17)%7.03 %
Efficiency ratio(1)
70.32 %56.29 %66.06 %65.20 %66.40 %
(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
REVENUE REVIEW

RevenueChangeChange
3Q24 vs3Q24 vs
(Dollars in thousands)3Q242Q243Q232Q243Q23
Net interest income$37,521 $36,347 $34,575 3 %9 %
Noninterest (loss) income(130,388)21,554 9,861 n/mn/m
Total revenue, net of interest expense$(92,867)$57,901 $44,436 n/mn/m
(n/m) - Not meaningful
Total revenue for the third quarter of 2024 decreased $150.8 million from the second quarter of 2024 and decreased $137.3 million compared to the third quarter of 2023, due to lower noninterest income, partially offset by higher net interest income. Excluding the pre-tax securities loss of $140.4 million stemming from the balance sheet repositioning, total revenue for the third quarter was $47.5 million, a decline of $10.4 million from the second quarter of 2024 and an increase of $3.1 million from the third quarter of 2023.
Net interest income of $37.5 million for the third quarter of 2024 increased $1.2 million from the second quarter of 2024, due to higher earning asset yields and lower funding volumes, partially offset by lower earning asset volumes and higher funding costs. When compared to the third quarter of 2023, net interest income increased $2.9 million, due to higher earning asset volumes and yields, partially offset by higher funding costs and volumes. We expect net interest income to be higher going forward as a result of the balance sheet repositioning.
The Company's tax equivalent net interest margin was 2.51%3 in the third quarter of 2024, compared to 2.41%3 in the second quarter of 2024, as higher earning asset yields more than offset increased funding costs. Total earning assets yield during the third quarter of 2024 increased 10 bps from the second quarter of 2024 due primarily to an increase in loan yields of 17 bps. Funding costs during the third quarter of 2024 increased 2 bps to 2.87%, due primarily to the 4 bps increase in interest bearing deposit costs to 2.58%, which was partially offset by a reduction in short-term borrowing costs and long-term debt of 10 bps and 4 bps, to 4.76% and 6.91%, respectively from the second quarter of 2024.

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


2

The Company's tax equivalent net interest margin was 2.51%3 in the third quarter of 2024, compared to 2.35%3 in the third quarter of 2023, driven by higher earning asset volumes and yields, partially offset by higher funding costs and volumes. Total earning assets yield increased 58 bps from the third quarter of 2023, primarily from a 67 bps increase in loan yields. Funding costs increased 54 bps to 2.87%, due to interest bearing deposit costs of 2.58%, short-term borrowing costs of 4.76%, and long-term debt costs of 6.91%, which increased 53 bps, 47 bps and 13 bps, respectively from the third quarter of 2023.
Noninterest (Loss) IncomeChangeChange
3Q24 vs3Q24 vs
(In thousands)3Q242Q243Q232Q243Q23
Investment services and trust activities$3,410 $3,504 $3,004 (3)%14 %
Service charges and fees2,170 2,156 2,146 1 %1 %
Card revenue1,935 1,907 1,817 1 %6 %
Loan revenue760 1,525 1,462 (50)%(48)%
Bank-owned life insurance879 668 626 32 %40 %
Investment securities (losses) gains, net(140,182)33 79 n/mn/m
Other640 11,761 727 (95)%(12)%
Total noninterest (loss) income$(130,388)$21,554 $9,861 n/mn/m
MSR adjustment (included above in Loan revenue)$(1,026)$129 $283 n/mn/m
Gain on branch sale (included above in Other)— 11,056 — n/mn/m
(n/m) - Not meaningful
Noninterest income for the third quarter of 2024 decreased $151.9 million from the linked quarter, due primarily to the securities impairment of $140.4 million related to the Company's balance sheet repositioning and a decrease of $11.1 million in other revenue. The decrease in other revenue reflected the $11.1 million gain from the sale of our Florida banking operations in the second quarter of 2024 that did not recur in the third quarter of 2024. In addition, loan revenue decreased $765 thousand due to a $1.2 million unfavorable change in the value of our mortgage servicing rights, partially offset by an increase of $0.4 million in SBA gain on sale revenue.
Noninterest income for the third quarter of 2024 decreased $140.2 million from the third quarter of 2023, due primarily to the balance sheet repositioning-related securities impairment previously noted. Also contributing to the decline in noninterest income was a decrease in loan revenue stemming from the unfavorable year-over-year change in the fair value of our mortgage servicing rights, which was partially offset by an increase of $0.5 million in SBA gain on sale. Partially offsetting these decreases in noninterest income was an increase of $0.4 million in investment services and trust activities revenue, driven by growth in assets under administration and transaction fees, and an increase of $0.3 million in bank-owned life insurance due primarily to $0.2 million of death benefits recognized in the third quarter of 2024.
EXPENSE REVIEW
Noninterest ExpenseChangeChange
3Q24 vs3Q24 vs
(In thousands)3Q242Q243Q232Q243Q23
Compensation and employee benefits$19,943 $20,985 $18,558 (5)%7 %
Occupancy expense of premises, net2,443 2,435 2,405 — %2 %
Equipment2,486 2,530 2,123 (2)%17 %
Legal and professional2,261 2,253 1,678 — %35 %
Data processing1,580 1,645 1,504 (4)%5 %
Marketing619 636 782 (3)%(21)%
Amortization of intangibles1,470 1,593 1,460 (8)%1 %
FDIC insurance923 1,051 783 (12)%18 %
Communications159 191 206 (17)%(23)%
Foreclosed assets, net330 138 2 139 %n/m
Other3,584 2,304 2,043 56 %75 %
     Total noninterest expense $35,798 $35,761 $31,544 — %13 %
(n/m) - Not meaningful


3

Merger-related Expenses
(In thousands)3Q242Q243Q23
Compensation and employee benefits$— $73 $— 
Occupancy expense of premises, net— — — 
Equipment— 28 — 
Legal and professional127 462 11 
Data processing— 251 — 
Marketing— — — 
Communications— 8 — 
Other6 32 — 
Total merger-related expenses$133 $854 $11 
Noninterest expense for the third quarter of 2024 compared to the linked quarter was stable at $35.8 million, with increases of $1.3 million and $0.2 million in other expense and foreclosed assets, net, respectively. The increase in other expense was primarily driven by a $1.2 million fraud loss related to a single instance recorded in the third quarter of 2024, while the increase in foreclosed assets, net, expense was attributable to a $0.3 million write-down and higher operating expenses of one other real estate owned relationship, partially offset by a $0.4 million gain on sale of a separate other real estate owned relationship. Partially offsetting these increases in noninterest expense were declines in all other noninterest expense categories, with the largest decrease in compensation and employee benefits, which stemmed from the sale of our Florida banking operations in the second quarter of 2024. Further decreases in noninterest expense categories were also driven by a $0.7 million decline in merger-related expenses.
Noninterest expense for the third quarter of 2024 increased $4.3 million from the third quarter of 2023 primarily due to increases in all noninterest expense categories, except marketing and communications. The largest contributors to the increase in noninterest expense were increases of $1.5 million, $1.4 million, and $0.6 million in other, compensation and employee benefits, and legal and professional expense, respectively. The increase in other expense was primarily driven by a $1.2 million fraud loss recorded in the third quarter of 2024. The increase in compensation and employee benefits expense was driven by annual compensation adjustments and increased incentive and commission expense. The increase in legal and professional expense stemmed from increased costs for legal fees, consulting, personnel procurement, merger-related expenses, and accounting and tax fees. Partially offsetting these increases was a decline of $0.2 million in marketing expense.
The Company's effective tax rate was 26.5% in the third quarter of 2024, compared to 24.2% in the linked quarter. The increase in the effective tax rate reflected the impact of the investment security impairments recorded in the third quarter of 2024 related to the balance sheet repositioning. The effective income tax rate for the fourth quarter of 2024 and full year 2025 is expected to be 22-23%.
BALANCE SHEET REVIEW
Total assets were $6.55 billion at September 30, 2024, compared to $6.58 billion at June 30, 2024 and $6.47 billion at September 30, 2023. The decrease from June 30, 2024 was primarily driven by lower securities balances stemming from impairment recognized in the third quarter of 2024 related to the balance sheet repositioning, fair value adjustments recognized in connection with the re-classification of securities from held-to-maturity to available-for-sale, and scheduled calls, maturities, and paydowns, partially offset by higher cash and loan balances. Compared to September 30, 2023, the increase was primarily driven by assets acquired in the Denver Bankshares, Inc. ("DNVB") transaction, as well as higher cash and loan balances, partially offset by the sale of assets associated with our Florida banking operations, and lower securities balances.



4

Loans Held for InvestmentSeptember 30, 2024June 30, 2024September 30, 2023
Balance% of TotalBalance% of TotalBalance% of Total
(Dollars in thousands)
Commercial and industrial$1,149,758 26.6 %$1,120,983 26.1 %$1,078,773 26.5 %
Agricultural112,696 2.6 107,983 2.5 111,950 2.8 
Commercial real estate
Construction and development386,920 8.9 351,646 8.2 331,868 8.2 
Farmland182,164 4.2 183,641 4.3 182,621 4.5 
Multifamily409,544 9.5 430,054 10.0 337,509 8.3 
Other1,353,513 31.2 1,348,515 31.5 1,324,019 32.5 
Total commercial real estate2,332,141 53.8 2,313,856 54.0 2,176,017 53.5 
Residential real estate
One-to-four family first liens485,210 11.2 492,541 11.5 456,771 11.2 
One-to-four family junior liens176,827 4.1 176,105 4.1 173,275 4.3 
Total residential real estate662,037 15.3 668,646 15.6 630,046 15.5 
Consumer72,124 1.7 75,764 1.8 69,183 1.7 
Loans held for investment, net of unearned income$4,328,756 100.0 %$4,287,232 100.0 %$4,065,969 100.0 %
Total commitments to extend credit$1,149,815 $1,200,605 $1,251,345 
Loans held for investment, net of unearned income, increased $41.5 million, or 1.0%, to $4.33 billion from $4.29 billion at June 30, 2024. The increase from the second quarter of 2024 was driven primarily by organic loan growth and higher line of credit usage.
Loans held for investment, net of unearned income, increased $262.8 million, or 6.5%, to $4.33 billion from $4.07 billion at September 30, 2023. The increase from the third quarter of 2023 was driven primarily by the loans acquired in the DNVB transaction, organic loan growth, and higher line of credit usage. Partially offsetting these identified increases was a decline stemming from the sale of loans associated with our Florida banking operations.
Investment SecuritiesSeptember 30, 2024June 30, 2024September 30, 2023
(Dollars in thousands)Balance% of TotalBalance% of TotalBalance% of Total
Available for sale$1,623,104 100.0 %$771,034 42.3 %$872,770 44.6 %
Held to maturity— — %1,053,080 57.7 %1,085,751 55.4 %
Total investment securities$1,623,104 $1,824,114 $1,958,521 
Investment securities at September 30, 2024 were $1.62 billion, decreasing $201.0 million from June 30, 2024 and $335.4 million from September 30, 2023. The decrease from the second quarter of 2024 stemmed from impairment recognized in the third quarter of 2024 related to the balance sheet repositioning, fair value adjustments recognized in the third quarter of 2024 in connection with the re-classification of held-to-maturity securities to available-for-sale, and principal cash flows received from scheduled payments, calls, and maturities. The decrease from the third quarter of 2023 was primarily due to the balance sheet repositioning executed in the fourth quarter of 2023, impairment recognized in the third quarter of 2024 related to the balance sheet repositioning, fair value adjustments recognized in the third quarter of 2024 in connection with the re-classification of held-to-maturity securities to available-for-sale, and principal cash flows received from scheduled payments, calls, and maturities.
DepositsSeptember 30, 2024June 30, 2024September 30, 2023
(Dollars in thousands)Balance% of TotalBalance% of TotalBalance% of Total
Noninterest bearing deposits$917,715 17.1 %$882,472 16.3 %$924,213 17.2 %
Interest checking deposits1,230,605 23.0 1,284,243 23.7 1,334,481 24.9 
Money market deposits1,038,575 19.3 1,043,376 19.3 1,127,287 21.0 
Savings deposits768,298 14.3 745,639 13.8 619,805 11.6 
Time deposits of $250 and under844,298 15.7 803,301 14.8 703,646 13.1 
Total core deposits4,799,491 89.4 4,759,031 87.9 4,709,432 87.8 
Brokered time deposits200,000 3.7 196,000 3.6 220,063 4.1 
Time deposits over $250 369,236 6.9 457,388 8.5 433,829 8.1 
Total deposits
$5,368,727 100.0 %$5,412,419 100.0 %$5,363,324 100.0 %
Total deposits declined $43.7 million, or 0.8%, to $5.37 billion, from $5.41 billion at June 30, 2024. Noninterest bearing deposits increased $35.2 million, while core deposits increased $40.5 million from June 30, 2024. Time deposits over $250 decreased $88.2 million from June 30, 2024, primarily as a result of a decline in public funds. Total deposits increased $5.4 million, or 0.1%, from $5.36 billion at September 30, 2023, primarily due to $224.2 million of deposits assumed in the DNVB acquisition, partially offset by $133.3 million of deposits divested as part of the sale of our Florida banking operations and a decline of $20.1 million in brokered deposits.


5


Borrowed FundsSeptember 30, 2024June 30, 2024September 30, 2023
(Dollars in thousands)Balance% of TotalBalance% of TotalBalance% of Total
Short-term borrowings$410,630 78.1 %$414,684 78.3 %$373,956 75.0 %
Long-term debt115,051 21.9 %114,839 21.7 %124,526 25.0 %
Total borrowed funds$525,681 $529,523 $498,482 

Borrowed funds were $525.7 million at September 30, 2024, a decrease of $3.8 million from June 30, 2024 and an increase of $27.2 million from September 30, 2023. The decrease compared to the linked quarter was due to a decrease in overnight borrowings from the Federal Home Loan Bank ("FHLB") and scheduled payments on long-term debt, partially offset by an increase in long-term FHLB borrowings. The increase compared to September 30, 2023 was due to higher Bank Term Funding Program borrowings, partially offset by lower overnight borrowings from the Federal Home Loan Bank, securities sold under agreements to repurchase, and scheduled payments on long-term debt.

CapitalSeptember 30,June 30,September 30,
(Dollars in thousands)
2024 (1)
20242023
Total shareholders' equity$562,238 $543,286 $505,411 
Accumulated other comprehensive loss(58,842)(58,135)(84,606)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio8.78 %8.29 %8.58 %
Common equity tier 1 capital to risk-weighted assets ratio9.91 %9.56 %9.52 %
Tier 1 capital to risk-weighted assets ratio10.70 %10.35 %10.31 %
Total capital to risk-weighted assets ratio12.96 %12.62 %12.45 %
MidWestOne Bank
Tier 1 leverage to average assets ratio9.69 %9.24 %9.51 %
Common equity tier 1 capital to risk-weighted assets ratio11.83 %11.55 %11.43 %
Tier 1 capital to risk-weighted assets ratio11.83 %11.55 %11.43 %
Total capital to risk-weighted assets ratio12.88 %12.61 %12.36 %
(1) Regulatory capital ratios for September 30, 2024 are preliminary
Total shareholders' equity at September 30, 2024 increased $19.0 million from June 30, 2024, primarily driven by an increase in the balance of common stock and additional paid-in-capital stemming from the common stock capital raise executed in the third quarter of 2024, partially offset by a decline in retained earnings. Total shareholders' equity at September 30, 2024 increased $56.8 million from September 30, 2023, primarily due to increases in common stock and additional paid-in-capital stemming from the common stock issuance previously described and decreases in accumulated other comprehensive loss and treasury stock, partially offset by a decline in retained earnings.
On October 23, 2024, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable December 16, 2024, to shareholders of record at the close of business on December 2, 2024.
No common shares were repurchased by the Company during the period June 30, 2024 through September 30, 2024 or for the subsequent period through October 24, 2024. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. As of September 30, 2024, $15.0 million remained available under this program.


6

CREDIT QUALITY REVIEW

Credit QualityAs of or For the Three Months Ended
September 30,June 30,September 30,
(Dollars in thousands)202420242023
Credit loss expense related to loans$1,835 $467 $1,651 
Net charge-offs1,735 524 451 
Allowance for credit losses54,000 53,900 51,600 
Pass$4,016,683 $3,991,692 $3,785,908 
Special Mention / Watch177,241 146,253 163,222 
Classified134,832 149,287 116,839 
Loans greater than 30 days past due and accruing$11,940 $9,358 $6,449 
Nonperforming loans$21,954 $25,128 $28,987 
Nonperforming assets25,537 31,181 28,987 
Net charge-off ratio(1)
0.16 %0.05 %0.04 %
Classified loans ratio(2)
3.11 %3.48 %2.87 %
Nonperforming loans ratio(3)
0.51 %0.59 %0.71 %
Nonperforming assets ratio(4)
0.39 %0.47 %0.45 %
Allowance for credit losses ratio(5)
1.25 %1.26 %1.27 %
Allowance for credit losses to nonaccrual loans ratio(6)
260.84 %218.26 %178.63 %
(1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
(3) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(5) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
(6)Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.
Compared to the linked quarter, the nonperforming loans and nonperforming assets ratios each declined 8 bps, to 0.51% and 0.39%, respectively, due to the proactive resolution of several large troubled assets. Special mention/watch loan balances increased $31.0 million, or 21%, from the linked quarter, while classified loan balances decreased $14.5 million, or 10%, from the linked quarter. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios decreased 20 bps and 6 bps, respectively. The net charge-off ratio increased 11 bps from the linked quarter and increased 12 bps from the same period in the prior year.
As of September 30, 2024, the allowance for credit losses was $54.0 million and the allowance for credit losses ratio was 1.25%, compared with $53.9 million and 1.26%, respectively, at June 30, 2024. Credit loss expense of $1.5 million in the third quarter of 2024 reflected an additional reserve taken to support organic loan growth, offset by a reduction of $0.3 million in the reserve for unfunded loan commitments.
Nonperforming Loans Roll ForwardNonaccrual90+ Days Past Due & Still AccruingTotal
(Dollars in thousands)
Balance at June 30, 2024
$24,695 $433 $25,128 
Loans placed on nonaccrual or 90+ days past due & still accruing6,426 1,326 7,752 
Proceeds related to repayment or sale(7,761)(1)(7,762)
Loans returned to accrual status or no longer past due(500)(339)(839)
Charge-offs(1,609)(167)(1,776)
Transfers to foreclosed assets(549)— (549)
Balance at September 30, 2024
$20,702 $1,252 $21,954 


7

CONFERENCE CALL DETAILS
The Company will host a conference call for investors at 11:00 a.m. CT on Friday, October 25, 2024. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=e1a9f566&confId=71942. 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 019041 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until January 23, 2025 by calling 1-866-813-9403 and using the replay access code of 718549. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.
MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.


8

Cautionary Note Regarding Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.
Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including the recent sale of our Florida banking operations and the acquisition of DNVB), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of changes 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; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and any changes in response to the failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the ongoing conflict in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (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, including those who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.


9

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED BALANCE SHEETS
 September 30,June 30,March 31,December 31,September 30,
(In thousands)20242024202420232023
ASSETS
Cash and due from banks$72,173 $66,228 $68,430 $76,237 $71,015 
Interest earning deposits in banks129,695 35,340 29,328 5,479 3,773 
Federal funds sold— — 4 11 — 
Total cash and cash equivalents201,868 101,568 97,762 81,727 74,788 
Debt securities available for sale at fair value1,623,104 771,034 797,230 795,134 872,770 
Held to maturity securities at amortized cost— 1,053,080 1,064,939 1,075,190 1,085,751 
Total securities1,623,104 1,824,114 1,862,169 1,870,324 1,958,521 
Loans held for sale3,283 2,850 2,329 1,045 2,528 
Gross loans held for investment4,344,559 4,304,619 4,433,258 4,138,352 4,078,060 
Unearned income, net(15,803)(17,387)(18,612)(11,405)(12,091)
Loans held for investment, net of unearned income4,328,756 4,287,232 4,414,646 4,126,947 4,065,969 
Allowance for credit losses(54,000)(53,900)(55,900)(51,500)(51,600)
Total loans held for investment, net4,274,756 4,233,332 4,358,746 4,075,447 4,014,369 
Premises and equipment, net90,750 91,793 95,986 85,742 85,589 
Goodwill69,788 69,388 71,118 62,477 62,477 
Other intangible assets, net26,469 27,939 29,531 24,069 25,510 
Foreclosed assets, net3,583 6,053 3,897 3,929 — 
Other assets258,881 224,621 226,477 222,780 244,036 
Total assets$6,552,482 $6,581,658 $6,748,015 $6,427,540 $6,467,818 
LIABILITIES          
Noninterest bearing deposits$917,715 $882,472 $920,764 $897,053 $924,213 
Interest bearing deposits4,451,012 4,529,947 4,664,472 4,498,620 4,439,111 
Total deposits5,368,727 5,412,419 5,585,236 5,395,673 5,363,324 
Short-term borrowings410,630 414,684 422,988 300,264 373,956 
Long-term debt115,051 114,839 122,066 123,296 124,526 
Other liabilities95,836 96,430 89,685 83,929 100,601 
Total liabilities5,990,244 6,038,372 6,219,975 5,903,162 5,962,407 
SHAREHOLDERS' EQUITY          
Common stock21,580 16,581 16,581 16,581 16,581 
Additional paid-in capital414,965 300,831 300,845 302,157 301,889 
Retained earnings206,490 306,030 294,066 294,784 295,862 
Treasury stock(21,955)(22,021)(22,648)(24,245)(24,315)
Accumulated other comprehensive loss(58,842)(58,135)(60,804)(64,899)(84,606)
Total shareholders' equity562,238 543,286 528,040 524,378 505,411 
Total liabilities and shareholders' equity$6,552,482 $6,581,658 $6,748,015 $6,427,540 $6,467,818 




10

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME
 Three Months EndedNine Months Ended
September 30,June 30,March 31,December 31,September 30,September 30,September 30,
(In thousands, except per share data)202420242024202320232024 2023
Interest income
Loans, including fees$62,521 $61,643 $57,947 $54,093 $51,870 $182,111 $148,086 
Taxable investment securities8,779 9,228 9,460 9,274 9,526 27,467 29,704 
Tax-exempt investment securities1,611 1,663 1,710 1,789 1,802 4,984 5,751 
Other785 242 418 230 374 1,445 686 
Total interest income73,696 72,776 69,535 65,386 63,572 216,007 184,227 
Interest expense
Deposits29,117 28,942 27,726 27,200 23,128 85,785 58,564 
Short-term borrowings5,043 5,409 4,975 3,496 3,719 15,427 7,623 
Long-term debt2,015 2,078 2,103 2,131 2,150 6,196 6,427 
Total interest expense36,175 36,429 34,804 32,827 28,997 107,408 72,614 
Net interest income37,521 36,347 34,731 32,559 34,575 108,599 111,613 
Credit loss expense 1,535 1,267 4,689 1,768 1,551 7,491 4,081 
Net interest income after credit loss expense35,986 35,080 30,042 30,791 33,024 101,108 107,532 
Noninterest income
Investment services and trust activities3,410 3,504 3,503 3,193 3,004 10,417 9,056 
Service charges and fees2,170 2,156 2,144 2,148 2,146 6,470 6,201 
Card revenue1,935 1,907 1,943 1,802 1,817 5,785 5,412 
Loan revenue760 1,525 856 909 1,462 3,141 3,791 
Bank-owned life insurance879 668 660 656 626 2,207 1,844 
Investment securities (losses) gains, net(140,182)33 36 (5,696)79 (140,113)(13,093)
Other640 11,761 608 850 727 13,009 1,350 
Total noninterest (loss) income(130,388)21,554 9,750 3,862 9,861 (99,084)14,561 
Noninterest expense
Compensation and employee benefits19,943 20,985 20,930 17,859 18,558 61,858 58,551 
Occupancy expense of premises, net2,443 2,435 2,813 2,309 2,405 7,691 7,725 
Equipment2,486 2,530 2,600 2,466 2,123 7,616 6,729 
Legal and professional2,261 2,253 2,059 2,269 1,678 6,573 5,096 
Data processing1,580 1,645 1,360 1,411 1,504 4,585 4,388 
Marketing619 636 598 700 782 1,853 2,910 
Amortization of intangibles1,470 1,593 1,637 1,441 1,460 4,700 4,806 
FDIC insurance923 1,051 942 900 783 2,916 2,394 
Communications159 191 196 183 206 546 727 
Foreclosed assets, net330 138 358 45 2 826 (32)
Other3,584 2,304 2,072 2,548 2,043 7,960 6,488 
Total noninterest expense35,798 35,761 35,565 32,131 31,544 107,124 99,782 
(Loss) income before income tax expense(130,200)20,873 4,227 2,522 11,341 (105,100)22,311 
Income tax (benefit) expense(34,493)5,054 958 (208)2,203 (28,481)4,182 
Net (loss) income $(95,707)$15,819 $3,269 $2,730 $9,138 $(76,619)$18,129 
Earnings (loss) per common share
Basic$(6.05)$1.00 $0.21 $0.17 $0.58 $(4.86)$1.16 
Diluted$(6.05)$1.00 $0.21 $0.17 $0.58 $(4.86)$1.15 
Weighted average basic common shares outstanding15,829 15,763 15,723 15,693 15,689 15,772 15,673 
Weighted average diluted common shares outstanding15,829 15,781 15,774 15,756 15,711 15,772 15,696 
Dividends paid per common share$0.2425 $0.2425 $0.2425 $0.2425 $0.2425 $0.7275 $0.7275 




11

MIDWESTONE FINANCIAL GROUP, INC.
FINANCIAL STATISTICS
As of or for the Three Months EndedAs of or for the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(Dollars in thousands, except per share amounts)20242024202320242023
Earnings:
Net interest income$37,521 $36,347 $34,575 $108,599 $111,613 
Noninterest (loss) income(130,388)21,554 9,861 (99,084)14,561 
     Total revenue, net of interest expense(92,867)57,901 44,436 9,515 126,174 
Credit loss expense1,535 1,267 1,551 7,491 4,081 
Noninterest expense35,798 35,761 31,544 107,124 99,782 
     (Loss) income before income tax expense (130,200)20,873 11,341 (105,100)22,311 
Income tax (benefit) expense(34,493)5,054 2,203 (28,481)4,182 
     Net (loss) income $(95,707)$15,819 $9,138 $(76,619)$18,129 
Adjusted earnings(1)
$9,141 $8,132 $8,875 $21,762 $28,046 
Per Share Data:
Diluted (loss) earnings $(6.05)$1.00 $0.58 $(4.86)$1.15 
Adjusted earnings(1)
0.58 0.52 0.56 1.38 1.79 
Book value27.06 34.44 32.21 27.06 32.21 
Tangible book value(1)
22.43 28.27 26.60 22.43 26.60 
Ending Balance Sheet:
Total assets$6,552,482 $6,581,658 $6,467,818 $6,552,482 $6,467,818 
Loans held for investment, net of unearned income4,328,756 4,287,232 4,065,969 4,328,756 4,065,969 
Total securities1,623,104 1,824,114 1,958,521 1,623,104 1,958,521 
Total deposits5,368,727 5,412,419 5,363,324 5,368,727 5,363,324 
Short-term borrowings410,630 414,684 373,956 410,630 373,956 
Long-term debt115,051 114,839 124,526 115,051 124,526 
Total shareholders' equity562,238 543,286 505,411 562,238 505,411 
Average Balance Sheet:
Average total assets$6,583,404 $6,713,573 $6,452,815 $6,643,897 $6,480,636 
Average total loans4,311,693 4,419,697 4,019,852 4,343,087 3,964,119 
Average total deposits5,402,634 5,514,924 5,379,871 5,465,993 5,459,749 
Financial Ratios:
Return on average assets(5.78)%0.95 %0.56 %(1.54)%0.37 %
Return on average equity(69.05)%11.91 %7.14 %(19.03)%4.81 %
Return on average tangible equity(1)
(82.78)%15.74 %9.68 %(22.17)%7.03 %
Efficiency ratio(1)
70.32 %56.29 %66.06 %65.20 %66.40 %
Net interest margin, tax equivalent(1)
2.51 %2.41 %2.35 %2.42 %2.54 %
Loans to deposits ratio80.63 %79.21 %75.81 %80.63 %75.81 %
Common equity ratio8.58 %8.25 %7.81 %8.58 %7.81 %
Tangible common equity ratio(1)
7.22 %6.88 %6.54 %7.22 %6.54 %
Credit Risk Profile:
Total nonperforming loans$21,954 $25,128 $28,987 $21,954 $28,987 
Nonperforming loans ratio0.51 %0.59 %0.71 %0.51 %0.71 %
Total nonperforming assets$25,537 $31,181 $28,987 $25,537 $28,987 
Nonperforming assets ratio0.39 %0.47 %0.45 %0.39 %0.45 %
Net charge-offs$1,735 $524 $451 $2,448 $1,681 
Net charge-off ratio0.16 %0.05 %0.04 %0.08 %0.06 %
Allowance for credit losses$54,000 $53,900 $51,600 $54,000 $51,600 
Allowance for credit losses ratio1.25 %1.26 %1.27 %1.25 %1.27 %
Allowance for credit losses to nonaccrual ratio260.84 %218.26 %178.63 %260.84 %178.63 %
(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.
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
 Three Months Ended
 September 30, 2024June 30, 2024September 30, 2023
(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)
$4,311,693 $63,472  5.86 % $4,419,697 $62,581 5.69 %$4,019,852 $52,605  5.19 %
Taxable investment securities1,489,843 8,779  2.34 % 1,520,253 9,228 2.44 %1,637,259 9,526  2.31 %
Tax-exempt investment securities (2)(4)
313,935 1,976  2.50 % 322,092 2,040 2.55 %341,330 2,234  2.60 %
Total securities held for investment(2)
1,803,778 10,755 2.37 %1,842,345 11,268 2.46 %1,978,589 11,760 2.36 %
Other52,054 785  6.00 % 20,452 242 4.76 %34,195 374  4.34 %
Total interest earning assets(2)
$6,167,525 $75,012  4.84 % $6,282,494 $74,091 4.74 %$6,032,636 $64,739  4.26 %
Other assets415,879   431,079 420,179  
Total assets$6,583,404   $6,713,573 $6,452,815  
LIABILITIES AND SHAREHOLDERS’ EQUITY   
Interest checking deposits$1,243,327 $3,041 0.97 %$1,297,356 $3,145 0.97 %$1,354,597 $2,179 0.64 %
Money market deposits1,047,081 7,758 2.95 %1,072,688 7,821 2.93 %1,112,149 7,402 2.64 %
Savings deposits761,922 3,128  1.63 % 738,773 2,673 1.46 %603,628 749  0.49 %
Time deposits1,430,723 15,190  4.22 % 1,470,956 15,303 4.18 %1,403,504 12,798  3.62 %
Total interest bearing deposits4,483,053 29,117  2.58 % 4,579,773 28,942 2.54 %4,473,878 23,128  2.05 %
Securities sold under agreements to repurchase5,812 12 0.82 %5,300 10 0.76 %66,020 85 0.51 %
Other short-term borrowings415,961 5,031 4.81 %442,546 5,399 4.91 %277,713 3,634 5.19 %
Total short-term borrowings421,773 5,043  4.76 % 447,846 5,409 4.86 %343,733 3,719  4.29 %
Long-term debt116,032 2,015  6.91 % 120,256 2,078 6.95 %125,737 2,150  6.78 %
Total borrowed funds537,805 7,058 5.22 %568,102 7,487 5.30 %469,470 5,869 4.96 %
Total interest bearing liabilities$5,020,858 $36,175  2.87 % $5,147,875 $36,429 2.85 %$4,943,348 $28,997  2.33 %
Noninterest bearing deposits919,581   935,151 905,993  
Other liabilities91,551   96,553 95,408  
Shareholders’ equity551,414 533,994 508,066 
Total liabilities and shareholders’ equity$6,583,404   $6,713,573 $6,452,815  
Net interest income(2)
$38,837 $37,662 $35,742 
Net interest spread(2)
 1.97 %  1.89 % 1.93 %
Net interest margin(2)
2.51 %2.41 %2.35 %
Total deposits(5)
$5,402,634 $29,117 2.14 %$5,514,924 $28,942 2.11 %$5,379,871 $23,128 1.71 %
Cost of funds(6)
2.42 %2.41 %1.97 %
(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 $378 thousand, $337 thousand, and $141 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Loan purchase discount accretion was $1.4 million, $1.3 million, and $0.8 million for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Tax equivalent adjustments were $951 thousand, $938 thousand, and $735 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.
(4) Interest income includes tax equivalent adjustments of $365 thousand, $377 thousand, and $432 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.
(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.









13

MIDWESTONE FINANCIAL GROUP, INC.
AVERAGE BALANCE SHEET AND YIELD ANALYSIS
 Nine Months Ended
 September 30, 2024September 30, 2023
(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)
$4,343,087 $184,920 5.69 %$3,964,119 $150,250 5.07 %
Taxable investment securities1,522,447 27,467 2.41 %1,714,912 29,704 2.32 %
Tax-exempt investment securities (2)(4)
321,560 6,113 2.54 %361,254 7,136 2.64 %
Total securities held for investment(2)
1,844,007 33,580 2.43 %2,076,166 36,840 2.37 %
Other34,435 1,445  5.61 % 22,741 686 4.03 %
Total interest earning assets(2)
$6,221,529 $219,945  4.72 % $6,063,026 $187,776 4.14 %
Other assets422,368   417,610 
Total assets$6,643,897   $6,480,636 
LIABILITIES AND SHAREHOLDERS’ EQUITY
  
Interest checking deposits$1,280,581 $9,076 0.95 %$1,429,804 $5,999 0.56 %
Money market deposits1,074,006 23,644 2.94 %1,014,708 15,970 2.10 %
Savings deposits731,724 7,848 1.43 %620,011 1,309 0.28 %
Time deposits1,449,485 45,217 4.17 %1,437,122 35,286 3.28 %
Total interest bearing deposits4,535,796 85,785  2.53 % 4,501,645 58,564 1.74 %
Securities sold under agreements to repurchase5,482 33 0.80 %123,512 958 1.04 %
Other short-term borrowings422,653 15,394 4.87 %174,448 6,665 5.11 %
Total short-term borrowings428,135 15,427  4.81 % 297,960 7,623 3.42 %
Long-term debt119,837 6,196  6.91 % 133,375 6,427 6.44 %
Total borrowed funds547,972 21,623 5.27 %431,335 14,050 4.36 %
Total interest bearing liabilities$5,083,768 $107,408  2.82 % $4,932,980 $72,614 1.97 %
Noninterest bearing deposits930,197   958,104 
Other liabilities92,235   85,650 
Shareholders’ equity537,697 503,902 
Total liabilities and shareholders’ equity$6,643,897   $6,480,636 
Net interest income(2)
$112,537 $115,162 
Net interest spread(2)
 1.90 %  2.17 %
Net interest margin(2)
2.42 %2.54 %
Total deposits(5)
$5,465,993 $85,785 2.10 %$5,459,749 $58,564 1.43 %
Cost of funds(6)
2.39 %1.65 %
(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 $952 thousand and $315 thousand for the nine months ended September 30, 2024 and September 30, 2023, respectively. Loan purchase discount accretion was $3.8 million and $3.0 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Tax equivalent adjustments were $2.8 million and $2.2 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.
(4) Interest income includes tax equivalent adjustments of $1.1 million and $1.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.
(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.


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Non-GAAP Measures
This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.
Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity RatioSeptember 30,June 30,March 31,December 31,September 30,
(Dollars in thousands, except per share data)20242024202420232023
Total shareholders’ equity$562,238 $543,286 $528,040 $524,378 $505,411 
Intangible assets, net
(96,257)(97,327)(100,649)(86,546)(87,987)
Tangible common equity$465,981 $445,959 $427,391 $437,832 $417,424 
Total assets$6,552,482 $6,581,658 $6,748,015 $6,427,540 $6,467,818 
Intangible assets, net
(96,257)(97,327)(100,649)(86,546)(87,987)
Tangible assets$6,456,225 $6,484,331 $6,647,366 $6,340,994 $6,379,831 
Book value per share$27.06 $34.44 $33.53 $33.41 $32.21 
Tangible book value per share(1)
$22.43 $28.27 $27.14 $27.90 $26.60 
Shares outstanding20,774,919 15,773,468 15,750,471 15,694,306 15,691,738 
Common equity ratio8.58 %8.25 %7.83 %8.16 %7.81 %
Tangible common equity ratio(2)
7.22 %6.88 %6.43 %6.90 %6.54 %
(1) Tangible common equity divided by shares outstanding.
(2) Tangible common equity divided by tangible assets.
Three Months EndedNine Months Ended
Return on Average Tangible EquitySeptember 30,June 30,September 30,September 30,September 30,
(Dollars in thousands)20242024202320242023
Net (loss) income$(95,707)$15,819 $9,138 $(76,619)$18,129 
Intangible amortization, net of tax(1)
1,090 1,195 1,095 3,487 3,605 
Tangible net (loss) income $(94,617)$17,014 $10,233 $(73,132)$21,734 
Average shareholders’ equity$551,414 $533,994 $508,066 $537,697 $503,902 
Average intangible assets, net
(96,706)(99,309)(88,699)(97,102)(90,308)
Average tangible equity$454,708 $434,685 $419,367 $440,595 $413,594 
Return on average equity
(69.05)%11.91 %7.14 %(19.03)%4.81 %
Return on average tangible equity(2)
(82.78)%15.74 %9.68 %(22.17)%7.03 %
(1) The income tax rate utilized was the blended marginal tax rate.
(2) Annualized tangible net income divided by average tangible equity.


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Net Interest Margin, Tax Equivalent/
Core Net Interest Margin		Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,September 30,
(Dollars in thousands)20242024202320242023
Net interest income$37,521 $36,347 $34,575 $108,599 $111,613 
Tax equivalent adjustments:
Loans(1)
951 938 735 2,809 2,164 
Securities(1)
365 377 432 1,129 1,385 
Net interest income, tax equivalent$38,837 $37,662 $35,742 $112,537 $115,162 
Loan purchase discount accretion(1,426)(1,261)(791)(3,839)(2,964)
Core net interest income$37,411 $36,401 $34,951 $108,698 $112,198 
Net interest margin2.42 %2.33 %2.27 %2.33 %2.46 %
Net interest margin, tax equivalent(2)
2.51 %2.41 %2.35 %2.42 %2.54 %
Core net interest margin(3)
2.41 %2.33 %2.30 %2.33 %2.47 %
Average interest earning assets$6,167,525 $6,282,494 $6,032,636 $6,221,529 $6,063,026 
(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 EndedNine Months Ended
Loan Yield, Tax Equivalent / Core Yield on LoansSeptember 30,June 30,September 30,September 30,September 30,
(Dollars in thousands)20242024202320242023
Loan interest income, including fees$62,521 $61,643 $51,870 $182,111 $148,086 
Tax equivalent adjustment(1)
951 938 735 2,809 2,164 
Tax equivalent loan interest income$63,472 $62,581 $52,605 $184,920 $150,250 
Loan purchase discount accretion(1,426)(1,261)(791)(3,839)(2,964)
Core loan interest income$62,046 $61,320 $51,814 $181,081 $147,286 
Yield on loans5.77 %5.61 %5.12 %5.60 %4.99 %
Yield on loans, tax equivalent(2)
5.86 %5.69 %5.19 %5.69 %5.07 %
Core yield on loans(3)
5.72 %5.58 %5.11 %5.57 %4.97 %
Average loans$4,311,693 $4,419,697 $4,019,852 $4,343,087 $3,964,119 
(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 EndedNine Months Ended
Efficiency RatioSeptember 30,June 30,September 30,September 30,September 30,
(Dollars in thousands)20242024202320242023
Total noninterest expense$35,798 $35,761 $31,544 $107,124 $99,782 
Amortization of intangibles(1,470)(1,593)(1,460)(4,700)(4,806)
Merger-related expenses(133)(854)(11)(2,301)(147)
Noninterest expense used for efficiency ratio$34,195 $33,314 $30,073 $100,123 $94,829 
Net interest income, tax equivalent(1)
$38,837 $37,662 $35,742 $112,537 $115,162 
Plus: Noninterest (loss) income(130,388)21,554 9,861 (99,084)14,561 
Less: Investment securities (losses) gains, net(140,182)33 79 (140,113)(13,093)
Net revenues used for efficiency ratio$48,631 $59,183 $45,524 $153,566 $142,816 
Efficiency ratio (2)
70.32 %56.29 %66.06 %65.20 %66.40 %
(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.



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Three Months EndedNine Months Ended
Adjusted Earnings September 30,June 30,September 30,September 30,September 30,
(Dollars in thousands, except per share data)20242024202320242023
Net (loss) income $(95,707)$15,819 $9,138 $(76,619)$18,129 
Less: Investment securities (losses) gains, net of tax(1)
(103,988)24 59 (103,937)(9,820)
Less: Mortgage servicing rights (loss) gain, net of tax(1)
(761)96 212 (938)13 
Plus: Merger-related expenses, net of tax(1)
99 634 8 1,707 110 
Less: Gain on branch sale, net of tax(1)
— 8,201 — 8,201 — 
Adjusted earnings$9,141 $8,132 $8,875 $21,762 $28,046 
Weighted average diluted common shares outstanding15,829 15,781 15,711 15,772 15,696 
Earnings per common share - diluted$(6.05)$1.00 $0.58 $(4.86)$1.15 
Adjusted earnings per common share(2)
$0.58 $0.52 $0.56 $1.38 $1.79 
(1) The income tax rate utilized was the blended marginal tax rate.
(2) Adjusted earnings divided by weighted average diluted common shares outstanding.


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


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