NASDAQ$MOFG
Midwestone Financial Group I · Q1 2020 earnings
Q1 2020 earnings · · Investor relations
Briefing
Reported a net loss due to credit loss expense, but saw increases in noninterest income and decreases in noninterest expenses.
MidwestOne Financial Group, Inc. reported a net loss for the first quarter of 2020 of $2.0 million, or $0.12 per diluted common share. The quarter was dominated by the activity to prepare and deal with the effects of the COVID-19 pandemic. Credit loss expense for the first quarter was $21.7 million, which reduced diluted earnings per common share by approximately $0.99.
- Approved approximately $332 million of PPP loans for 2,190 customers through April 28, 2020.
- Net Loss of $2.0 million, or a Loss of $0.12 Per Diluted Share due to Credit Loss Expense of $21.7 million
- Pre-tax, Pre-provision Net Revenue of $17.6 million, an increase of $5.4 million.
- Ending deposit balances rose $131.2 million, or 4%, from year-end 2019
Headline financials
Revenue & EPS history
MidwestOne · Revenue · Quarterly
$47.6M
Revenue by segment
MidwestOne · $10.2M total across 7 segments · Q1 2020
- Other$2.74M+666.2%27.0%
- Investment services & trust$2.54M+82.4%25.0%
- Service charges & fees$1.83M+26.6%18.0%
- Card revenue$1.37M+36.8%13.4%
- Loan revenue$1.12M+185.8%11.1%
- Bank-owned life insurance$520K+32.7%5.1%
- Investment securities gains, net$42K+147.1%0.4%
Forward guidance
The company expects net interest margin improvement in the second quarter as funding costs are adjusted.
Tailwinds
- Expect to see net interest margin improvement in the second quarter as funding costs are adjusted.
- Online banking user sessions and online account openings increased.
- Excellent deposit growth.
- Very good fee income across our footprint.
- Improved expense management.
Headwinds
- The quarter was dominated by the activity to prepare and deal with the effects of the COVID-19 pandemic on our employees, customers and communities.
- Credit loss expense of $21.7 million is related to the worsening forecast for the U.S. and our regional economy due to the significant slowing we’ve seen in current and forecasted economic activity.
- Net interest income decreased in the first quarter of 2020 to $37.4 million from $39.6 million in the linked quarter, reflecting net interest margin compression and lower loan purchase discount accretion.
- Construction and development loans were down, which is partially seasonal, and pay-downs occurred in the multi-family portfolio.
- Total nonperforming assets (NPAs) were relatively flat quarter to quarter.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 7 quarterly earnings reports
+0.5%
Avg return
Earnings day
+3.6%
Avg return
5 days after
+8.6%
Avg return
30 days after
48%
31 / 64 earnings
Positive
+39.4%
Q3 2025
Best reaction
-10.6%
Q1 2020
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q4 2025 | — | — | — | |
| Q3 2025 | +39.4% | +27.0% | +32.8% | |
| Q2 2025 | -3.9% | -4.3% | +4.0% | |
| Q1 2025 | -0.8% | -2.5% | -0.5% | |
| Q4 2024 | +2.9% | +6.3% | +3.2% | |
| Q3 2024 | -3.3% | -0.2% | +15.3% | |
| Q2 2024 | +5.0% | +5.1% | +6.4% | |
| Q1 2024 | -4.8% | -5.9% | -0.5% | |
| Q4 2023 | +0.5% | — | — | |
| Q3 2023 | +1.1% | — | — | |
| Q2 2023 | -3.3% | — | — | |
| Q1 2023 | +1.5% | — | — | |
| Q4 2022 | -5.8% | — | — | |
| Q3 2022 | +6.2% | — | — | |
| Q2 2022 | -1.1% | — | — | |
| Q1 2022 | -0.7% | — | — | |
| Q4 2021 | -1.3% | — | — | |
| Q3 2021 | +5.9% | — | — | |
| Q2 2021 | -0.7% | — | — | |
| Q1 2021 | +1.5% | — | — | |
| Q4 2020 | -2.8% | — | — | |
| Q3 2020 | +0.2% | — | — | |
| Q2 2020 | +3.3% | — | — | |
| Q1 2020 | -10.6% | — | — | |
| Q4 2019 | -0.5% | — | — | |
| Q3 2019 | -1.2% | — | — | |
| Q2 2019 | +6.6% | — | — | |
| Q1 2019 | -3.1% | — | — | |
| Q4 2018 | +1.1% | — | — | |
| Q3 2018 | -2.2% | — | — | |
| Q2 2018 | -3.1% | — | — | |
| Q1 2018 | -2.5% | — | — | |
| Q4 2017 | -2.5% | — | — | |
| Q3 2017 | -1.7% | — | — | |
| Q2 2017 | +0.0% | — | — | |
| Q1 2017 | +0.1% | — | — | |
| Q4 2014 | -0.2% | — | — | |
| Q4 2015 | -0.2% | — | — | |
| Q4 2016 | -2.7% | — | — | |
| Q3 2016 | -1.2% | — | — | |
| Q2 2016 | -0.2% | — | — | |
| Q1 2016 | -0.5% | — | — | |
| Q3 2015 | -3.8% | — | — | |
| Q2 2015 | +0.3% | — | — | |
| Q1 2015 | -0.8% | — | — | |
| Q3 2014 | +5.7% | — | — | |
| Q2 2014 | -0.6% | — | — | |
| Q1 2014 | +4.6% | — | — | |
| Q4 2013 | +1.3% | — | — | |
| Q3 2013 | -1.0% | — | — | |
| Q2 2013 | +0.8% | — | — | |
| Q1 2013 | -0.2% | — | — | |
| Q4 2012 | +0.7% | — | — | |
| Q4 2011 | +0.7% | — | — | |
| Q3 2012 | -1.8% | — | — | |
| Q2 2012 | +3.9% | — | — | |
| Q1 2011 | +1.6% | — | — | |
| Q1 2012 | +3.3% | — | — | |
| Q4 2009 | +0.3% | — | — | |
| Q3 2011 | +0.9% | — | — | |
| Q3 2010 | +0.9% | — | — | |
| Q4 2010 | +0.6% | — | — | |
| Q2 2011 | +0.6% | — | — | |
| Q2 2010 | +0.6% | — | — | |
| Q1 2010 | +0.1% | — | — |
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