NASDAQ$MOFG

Midwestone Financial Group I · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported financial results, showing net income of $14.3 million and diluted EPS of $0.91.

MidwestOne Financial Group, Inc. reported a solid fourth quarter of 2021, with net income of $14.3 million, or $0.91 per diluted common share. The company saw good ex-PPP commercial loan growth and improvements in nonperforming loans and nonperforming assets ratios.

  • Net income for the fourth quarter was $14.3 million, or $0.91 per diluted common share.
  • Total revenue, net of interest expense, was $50.0 million.
  • Excluding Paycheck Protection Program (PPP) loans, commercial loans increased 5.5% annualized
  • Nonperforming assets ratio declined 5 bps to 0.53%.

Headline financials

Total Revenue

$38.8M

Previous: $39M-0.6%
EPS (adj)

$0.91

Previous: $1.04-12.5%
Return On Average Assets

0.9%

Previous: 1.2%-22.1%
Return On Average Equity

10.7%

Previous: 13.2%-18.8%
Efficiency Ratio

56.7%

Previous: 59.7%-4.9%
Return On Average Tangible Equity

13.5%

Previous: 17.1%-20.9%
Allowance For Credit Losses Ratio

1.5%

Previous: 1.6%-5.7%
Allowance For Credit Losses To Nonaccrual Loans Ratio

154.4%

No prior period
Nonperforming Loans Ratio

1.0%

No prior period
Nonperforming Assets Ratio

0.5%

Previous: 1.3%-58.9%
Classified Loans Ratio

3.5%

Previous: 3.5%-0.3%
Capital Expenditures

$537K

Previous: $614K-12.5%
Free Cash Flow

$63.8M

Previous: -$33.5M+290.6%
Net Income

$14.3M

Previous: $16.7M-14.7%
Operating Income

$19M

Previous: $20.8M-8.7%
Cash & Equivalents

$204M

Previous: $82.7M+146.6%
Total Assets

$6.03B

Previous: $5.56B+8.4%
Stock-Based Comp

$631K

Previous: $249K+153.4%

Revenue & EPS history

MidwestOne · Revenue · Quarterly

$38.8M

Q4 2021-0.6%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

MidwestOne · $11.2M total across 7 segments · Q4 2021

  • Loan revenue
    $3.13M-19.7%
  • Investment services & trust
    $3.12M+23.7%
  • Card revenue
    $1.75M+15.1%
  • Service charges & fees
    $1.68M+7.2%
  • Other
    $865K+57.6%
  • Bank-owned life insurance
    $550K+1.7%
  • Investment securities gains, net
    $137K+356.7%

Forward guidance

The Company expects to see continued progress in nonperforming assets in 2022 and anticipates the effective income tax rate for the full year 2022 to be in the range of 19.5-21.5%.

Tailwinds

  • Expect continued progress in nonperforming assets in 2022.
  • Common stock dividend increase of 5.6% for 2022.
  • Solid pipeline of new loans.
  • Wealth management team revenue in 2021 was up $2.0 million, or 21.2%, from the prior year and we expect continued good progress.
  • Continued progress in wealth management.

Headwinds

  • Mortgage team contributed mightily to the record 2021 results, but in line with the rise in long-term interest rates, we see that slowing in 2022.
  • Merger-related legal expenses of $0.2 million.
  • The effective income tax rate increased to 24.9% in the fourth quarter of 2021 compared to 21.7% in the linked quarter primarily due to the year-end adjustment to federal tax expense based upon 2021 taxable income.
  • The increase in noninterest expense and the decline in net interest income, partially offset by the increase in noninterest income were the primary drivers of the increase in the efficiency ratio.
  • Net interest income decreased to $38.8 million in the fourth quarter of 2021 from $40.3 million in the third quarter of 2021 due primarily to decreased PPP loan fee accretion stemming from loan forgiveness.

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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