NASDAQ$MOFG

Midwestone Financial Group I · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported financial results for the first quarter of 2023 and announced strategic plan and financial targets, with repositioning of the balance sheet providing earnings, margin and return accretion.

MidwestOne Financial Group reported a net income of $1.4 million, or $0.09 per diluted common share, for Q1 2023. The company executed the sale of $231 million in book value of available for sale debt securities as part of a balance sheet repositioning, resulting in a pre-tax loss of $13.2 million. Annualized loan growth was 8.6%.

  • Net income of $1.4 million, or $0.09 per diluted common share.
  • Executed the sale of $231 million in book value of available for sale debt securities as part of a balance sheet repositioning, resulting in a pre-tax loss of $13.2 million.
  • Total uninsured deposits, excluding collateralized municipal deposits, represent approximately 18.5% of total deposits.
  • Annualized loan growth was 8.6% and remains centered in our targeted metro markets of the Twin Cities, Denver and Metro Iowa.

Headline financials

Total Revenue

$36M

Previous: $49M-26.4%
EPS (adj)

$0.72

Previous: $0.88-18.2%
Return On Average Assets

0.1%

No prior period
Return On Average Equity

1.1%

No prior period
Net Interest Margin Tax Equivalent

2.8%

No prior period
Efficiency Ratio

62.3%

Previous: 60.5%+3.1%
Return On Average Tangible Equity

2.7%

Previous: 13.6%-80.1%
Net Charge Off Ratio

0.0%

Previous: 0.3%-89.3%
Allowance For Credit Losses Ratio

1.3%

No prior period
Nonperforming Assets Ratio

0.2%

No prior period
Capital Expenditures

-$404K

Previous: -$938K+56.9%
Free Cash Flow

$17.2M

Previous: $25.2M-31.9%
Net Income

$1.4M

Previous: $13.9M-89.9%
Operating Income

$7.43M

Previous: $35.3M-79.0%
Gross Profit

$35.1M

Previous: $48.7M-27.9%
Cash & Equivalents

$69.2M

Previous: $59.8M+15.7%
Total Assets

$6.41B

Previous: $5.96B+7.5%
Stock-Based Comp

$648K

Previous: $560K+15.7%

Revenue & EPS history

MidwestOne · Revenue · Quarterly

$36M

Q1 2023-26.4%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

MidwestOne · $9.12M total across 6 segments · Q1 2023

  • Investment services & trust
    $2.93M
  • Service charges & fees
    $2.01M
  • Card revenue
    $1.75M
  • Loan revenue
    $1.42M
  • Bank-owned life insurance
    $602K
  • Other
    $413K

Forward guidance

The company launched a strategic plan focused on five pillars designed to improve the performance of the Bank, including (1) driving a performance-oriented culture, (2) protecting the Bank’s core community bank franchise, (3) accelerating the growth of the Bank’s commercial and wealth management businesses, (4) expanding into specialty commercial segments, and (5) optimizing the Bank’s operational effectiveness and efficiency. The goal of the plan is to exit 2025 with: •12% annual earnings per share growth •A return on average assets of 1.10 – 1.20% •10% annual tangible book value growth •An efficiency ratio of 55 - 57%

Tailwinds

  • Driving a performance-oriented culture
  • Protecting the Bank’s core community bank franchise
  • Accelerating the growth of the Bank’s commercial and wealth management businesses
  • Expanding into specialty commercial segments
  • Optimizing the Bank’s operational effectiveness and efficiency.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports

Historical avg

+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

Earnings price reactions
QuarterReport dateReaction (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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