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NEWS RELEASE | | | |
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FOR IMMEDIATE RELEASE | | | |
| Contact: | | | | | |
| | Charles N. Funk | | Gary J. Ortale | | Woody Wallace | |
| | President & CEO | | EVP & CFO | | The Investor Relations Company | |
| | 319.356.5800 | | 319.356.5800 | | 312.245.2700 | |
MIDWESTONE FINANCIAL GROUP, INC.
REPORTS FIRST QUARTER 2011 FINANCIAL RESULTS
Declares Regular Quarterly Cash Dividend
Iowa City, Iowa, April 28, 2011 - MidWestOne Financial Group, Inc. (NASDAQ - MOFG), today reported results for its first quarter ended March 31, 2011.
Net income for the first three months of 2011 rose to $2,905,000 compared with $2,004,000 for the same period last year. After dividends and discount accretion on the Company's preferred stock, net income available to common shareholders also rose to $2,688,000, or $0.31 per diluted share, compared with net income available to common shareholders of $1,787,000, or $0.21 per diluted share, in the first quarter of 2010.
Net income for the first quarter was higher than in the same period in 2010 primarily due to:
•a 40.0% decrease in the provision for loan losses;
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| • | a 16.3% increase in noninterest income, due primarily to a 75.4% increase in mortgage origination and loan servicing fees and the absence of any impairment losses on the Company's investment securities portfolio; and |
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| • | a 3.7% decrease in noninterest expense, highlighted by a 9.0% decrease in net occupancy and equipment expenses. |
"We believe 2011 is off to a strong start," stated Charles N. Funk, President and Chief Executive Officer. "For the first time since our merger, we generated a return on tangible equity above 8%. We were able to grow our balance sheet by over 2% during the quarter while at the same time maintaining a strong tangible common equity to tangible assets ratio of 8.37% and Tier 1 capital to average assets ratio of 10.58%."
Results of Operations
Net interest income for the first quarter was lower at $11,592,000, off $175,000, or 1.5%, from $11,767,000 for the first quarter of 2010. The continuing low interest rate environment's impact on loan yields and interest income on loan pool participations was greater than the beneficial effect of low interest rates on our interest expense. Loan income decreased $904,000, or 6.6%, to $12,800,000 for the first quarter of 2011, compared to $13,704,000 for the first quarter of 2010. Income from loan pool participations decreased to $354,000 for the first quarter of 2011, compared to $899,000 for the same period a year ago on a much lower level of investment. The net interest margin for the first quarter, calculated on a fully tax-equivalent basis, amounted to 3.31% or 19 basis points lower than the 3.50% net interest margin for the first quarter of 2010.
"We expect to continue battling margin compression as 2011 unfolds with short term interest rates at generational lows," stated Funk. "There has been some evidence within our footprint that loan demand is beginning to firm and we continue to work hard to find new quality lending opportunities to help offset the impact from this anticipated margin compression."
The provision for loan losses for the first quarter of 2011 was $900,000, a decrease of $600,000, or 40.0%, from $1,500,000 in the first quarter of 2010. The Company continued to increase its loan loss allowance in the first quarter by maintaining a provision for loan losses that was greater than our net charge-off activity.
Noninterest income for the quarter rose to $3,861,000, up $541,000, or 16.3%, from $3,320,000 in the first quarter of 2010, primarily due to increased mortgage origination and loan servicing fees combined with the absence of any impairment charges on the Company's investment securities portfolio. Mortgage origination and loan servicing fees totaled $877,000 for the quarter just ended, up 75.4% from $500,000 for the same period last year. The increase in mortgage origination and loan servicing fees was attributable to higher refinancing activity in single family residential loans during the first quarter of 2011 compared to the same period of 2010, as interest rates continued their low levels. The Company did not recognize any impairment losses on the investment securities portfolio during the first quarter compared to an impairment loss of $189,000 recognized in the first quarter a year ago. These improvements were partially offset by the absence of net gains on the sale of available for sale securities for the first quarter of 2011, compared with net gains of $237,000 for the same period of 2010.
Noninterest expense for the first quarter totaled $10,634,000, a decrease of $414,000, or 3.7%, from the $11,048,000 for the first quarter of 2010. Noninterest expense includes salaries and employee benefits, occupancy and equipment expense, FDIC insurance premiums, professional fees, data processing expense, and other operating expenses. The primary reasons for the lower noninterest expense for the quarter were a decrease in other operating expenses from $1,584,000 in the first quarter of 2010 to $1,423,000 for the same period of 2011, and a decrease in net occupancy and equipment expense from $1,776,000 for the quarter ended March 31, 2010 to $1,617,000 for the first quarter of 2011. The decrease in other operating expenses was primarily due to lower costs associated with other real estate owned, while the reduced net occupancy and equipment expenses were the result of management's cost control and efficiency efforts, notably the closing of three branches in late 2010.
Income tax expense was $1,014,000 for the first quarter compared with $535,000 for the same period in 2010. The higher provision was primarily due to increased income, while the average tax rate increased due to a lower relative portion of income being from tax-exempt sources.
Balance Sheet and Asset Quality
Total assets rose to $1.62 billion at March 31, 2011 from $1.58 billion at December 31, 2010. This growth resulted primarily from increased investment in securities, somewhat offset by a decrease in loan pool participation balances, with bank loans remaining virtually unchanged. The asset growth was funded by an increase in deposit balances, partially offset by a decrease in FHLB borrowings. Total deposits at March 31, 2011 rose to $1.26 billion, an increase of $43.8 million, or 3.6%, from December 31, 2010, while FHLB Advances declined $10.0 million to $117.2 million at March 31, 2011, from $127.2 million at December 31, 2010.
Total bank loans (excluding loan pool participations and loans held for sale) were slightly higher at $938.5 million at March 31, 2011, compared with $938.0 million as of December 31, 2010. This was primarily due to an increase in commercial and financial and other commercial real estate (not construction, farmland or multifamily) loans, partially offset by decreases in most other loan classes in the portfolio. At the end of the first quarter, the largest category of bank loans was commercial real estate, comprising 42% of the portfolio, of which 8% was construction, 7% farmland, and 4% multifamily. Residential real estate loans was the next largest category at 24%, then, commercial loans 23%, agricultural loans 9%, and consumer loans 2%.
During the first three months of 2011, the Company experienced an increase in nonperforming loans. Specifically, these loans totaled $23.4 million as of March 31, 2011, or 2.50% of total bank loans, compared with $19.8 million at December 31, 2010, or 2.11% of total bank loans. This increase is primarily attributable to one construction and development loan and one commercial loan with combined balances of $2.5 million being added to nonaccrual loans, coupled with an additional commercial loan totaling $0.8 million added to troubled debt restructures. Nonperforming loans at March 31, 2011 consisted of $14.5 million in nonaccrual loans, $6.7 million in troubled debt restructures and $2.2 million in loans past due 90 days or more and still accruing. Loans past-due 30 to 89 days and still accruing interest (not included in the nonperforming loan totals) were $7.0 million as of March 31, 2011 compared with $10.5 million as of December 31, 2010. While nonperforming loan levels increased during the first three months of 2011, the increase has been primarily in credits that management had already identified as weak. As of the end of the first quarter, other real estate owned (not included in nonperforming loans) totaled $3.9 million, unchanged from December 31, 2010.
"We remain confident in our ability to identify and properly reserve for problem assets," Mr. Funk noted. As of March 31, 2011, the allowance for bank loan losses was $15.4 million, or 1.64% of total bank loans, compared with $15.2 million, or 1.62% of total bank loans, at prior year end. The allowance for loan losses represented 65.70% of nonperforming loans at March 31, 2011, compared with 76.67% of nonperforming loans at December 31, 2010. Due to the early identification of potential problem loans, the Company expected to have a decline in the ratio of the allowance for loan losses to nonperforming loans. The bank had net loan charge-offs of $0.7 million in the first three months of 2011, or an annualized 0.29% of average bank loans outstanding.
Loan pool participations totaled $64.3 million at March 31, 2011, down from $68.0 million at December 31, 2010 and $83.7 million at the end of the first quarter a year ago. Loan pool participations are participation interests in performing, sub-performing and nonperforming loans that have been purchased from various nonaffiliated banking organizations. The Company entered into this business upon consummation of its merger with the Former MidWestOne in March 2008. As previously announced, the Company has decided to exit this line of business as current balances pay down.
The Company has minimal exposure in loan pools to consumer real estate, subprime credit or construction and real estate development loans. The net “all-in” yield (excluding the purchase accounting adjustment and after all expenses) on loan pool participations was 2.16% for the first quarter of 2011, down from 4.98% for the first quarter of 2010. The net yield was lower in the first quarter of 2011 due to an increase in the level of charge-offs and decreased payment collections in the portfolio. Including loan pool participations, the loan to deposit ratio was 79.4% as of March 31, 2011, compared with 82.5% as of December 31, 2010.
Investment securities totaled $505.6 million at March 31, 2011, or 31.2% of total assets, up from $466.0 million, or 29.5% of total assets, as of December 31, 2010. A total of $501.9 million of the investment securities were classified as available for sale. The portfolio consisted mainly of U.S. government agencies (15.2%), mortgage-backed securities (44.4%), and obligations of states and political subdivisions (38.5%).
Capital Adequacy
Total shareholders' equity (including the $16.0 million of senior preferred stock issued to the U.S. Treasury pursuant to the Capital Purchase Program) was $161.3 million as of March 31, 2011. The total shareholders' equity to total assets ratio was 9.97% at March 31, 2011, compared with 10.02% at December 31, 2010, while the tangible common equity to tangible assets ratio was 8.37% as of the same date, unchanged from 8.37% at December 31, 2010. Tangible common equity per share was $15.61 at March 31, 2011, up from $15.27 per share at December 31, 2010. This increase was primarily attributable to net income of $2.9 million for the three months of 2011, less the $200,000 of dividends paid during the same period on the senior preferred stock issued to the U.S. Treasury. The Company's management is currently evaluating the Company's plan for potentially redeeming the $16.0 million of senior preferred stock issued to the U.S. Treasury in February 2009 pursuant to the TARP Capital Purchase Program, including performing financial analysis as to the impact that any such redemption would have on its regulatory capital levels. Any such redemption, however, would be subject to the prior approval of the U.S. Treasury and the Federal Reserve.
Quarterly Cash Dividend Declared
On April 21, 2011, the Company's Board of Directors declared a second quarter cash dividend of $0.05 per common share, which is consistent with the dividend paid in the first quarter of 2011. The dividend is payable June 15, 2011 to shareholders of record at the close of business on June 1, 2011. At this quarterly rate, the indicated annual cash dividend is equal to $0.20 per common share.
About MidWestOne Financial Group, Inc.
MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. The Company's bank subsidiary is also headquartered in Iowa City. MidWestOne Bank has office locations in Belle Plaine, Burlington, Cedar Falls, Conrad, Coralville, Davenport, Fairfield, Fort Madison, Melbourne, North English, North Liberty, Oskaloosa, Ottumwa, Parkersburg, Pella, Sigourney, Waterloo and West Liberty, Iowa. MidWestOne Insurance Services, Inc. provides personal and business insurance services in Pella, Melbourne and Oskaloosa, Iowa. MidWestOne Financial Group, Inc. common stock is traded on the NASDAQ Global Select Market under the symbol “MOFG.”
Non-GAAP Presentations:
We have traditionally disclosed certain non-GAAP ratios to evaluate and measure our operating performance and financial condition, including our net interest margin, Tier 1 capital to average assets, and tangible common equity to tangible assets ratios. We believe these ratios provide investors with information regarding our balance sheet profitability, financial condition and capital adequacy and how we evaluate such metrics internally. The tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP equivalent.
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| | | | As of | | As of | | As of |
| | | | March 31, | | December 31, | | March 31, |
| | | | 2011 | | 2010 | | 2010 |
| (in thousands) | | | | | | |
| Tangible Common Equity | | | | | | |
| Total shareholders' equity | | $ | 161,315 | | | $ | 158,466 | | | $ | 154,158 | |
| Less: Preferred equity | | (15,784 | ) | | (15,767 | ) | | (15,716 | ) |
| Goodwill and intangibles | | (11,019 | ) | | (11,243 | ) | | (12,016 | ) |
| Tangible common equity | | $ | 134,512 | | | $ | 131,456 | | | $ | 126,426 | |
| Tangible Assets | | | | | | |
| Total assets | | $ | 1,618,231 | | | $ | 1,581,259 | | | $ | 1,542,061 | |
| Less: Goodwill and intangibles | | (11,019 | ) | | (11,243 | ) | | (12,016 | ) |
| Tangible assets | | $ | 1,607,212 | | | $ | 1,570,016 | | | $ | 1,530,045 | |
| Tangible common equity/tangible assets | | 8.37 | % | | 8.37 | % | | 8.26 | % |
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| Tier 1 Capital | | | | | | |
| Total shareholders' equity | | 161,315 | | | 158,466 | | | 154,158 | |
| Plus: Long term debt (qualifying restricted core capital) | | 15,464 | | | 15,464 | | | 15,464 | |
| Net unrealized (gains) losses on securities available for sale | | 1,330 | | | 1,826 | | | (2,016 | ) |
| Less: Disallowed goodwill and intangibles | | (11,138 | ) | | (11,327 | ) | | (11,789 | ) |
| Tier 1 Capital | | 166,971 | | | 164,429 | | | 155,817 | |
| Average Assets | | | | | | |
| Quarterly average assets | | 1,589,542 | | | 1,584,616 | | | 1,527,170 | |
| Less: Disallowed goodwill and intangibles | | (11,138 | ) | | (11,327 | ) | | (11,789 | ) |
| Average Assets | | 1,578,404 | | | 1,573,289 | | | 1,515,381 | |
| Tier 1 capital/average assets | | 10.58 | % | | 10.45 | % | | 10.28 | % |
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| | | | Three Months Ended March 31, | | Year Ended December 31, | | Three Months Ended March 31, |
| | | | 2011 | | 2010 | | 2010 |
| (in thousands) | | | | | | |
| Net Interest Margin Tax Equivalent Adjustment | | | | | | |
| Net interest income | | $ | 11,592 | | | $ | 47,865 | | | $ | 11,767 | |
| Plus tax equivalent adjustment: | | | | | | |
| Loans | | 83 | | | 324 | | | 85 | |
| Securities | | 533 | | | 2,038 | | | 533 | |
Tax equivalent interest income (1) | | $ | 12,208 | | | $ | 50,227 | | | $ | 12,385 | |
| Average interest earning assets | | $ | 1,495,402 | | | $ | 1,466,265 | | | $ | 1,433,850 | |
| Net interest margin | | 3.31 | % | | 3.43 | % | | 3.50 | % |
| (1) Computed on a tax-equivalent basis, assuming a federal income tax rate of 34% | | |
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 authorized 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”, “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.
Factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) credit quality deterioration or pronounced and sustained reduction in real estate market values could cause an increase in the allowance for credit losses and a reduction in net earnings; (2) our management's ability to reduce and effectively manage interest rate risk and the impact of interest rates in general on the volatility of our net interest income; (3) 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; (4) fluctuations in the value of our investment securities; (5) governmental monetary and fiscal policies; (6) legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators (particularly with respect to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") and the extensive regulations to be promulgated thereunder), and changes in the scope and cost of Federal Deposit Insurance Corporation insurance and other coverages; (7) the ability to attract and retain key executives and employees experienced in banking and financial services; (8) the sufficiency of the allowance for loan losses to absorb the amount of actual losses inherent in our existing loan portfolio; (9) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (10) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (11) 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, and other financial institutions operating in our markets or elsewhere or providing similar services; (12) the failure of assumptions underlying the establishment of allowances for loan losses and estimation of values of collateral and various financial assets and liabilities; (13) volatility of rate-sensitive deposits; (14) operational risks, including data processing system failures or fraud; (15) asset/liability matching risks and liquidity risks; (16) the risks of mergers, acquisitions and divestitures, 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; (17) the costs, effects and outcomes of existing or future litigation; (18) changes in general economic or industry conditions, nationally or in the communities in which we conduct business; (19) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; and (20) other risk factors detailed from time to time in SEC filings made by the Company.
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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| | March 31,
2011 | | December 31, 2010 |
| (dollars in thousands) | (unaudited) | | |
| ASSETS | | | |
| Cash and due from banks | $ | 19,085 | | | $ | 13,720 | |
| Interest-bearing deposits in banks | 4,318 | | | 6,077 | |
| Federal funds sold | 264 | | | 726 | |
| Cash and cash equivalents | 23,667 | | | 20,523 | |
| Investment securities: | | | |
| Available for sale | 501,946 | | | 461,954 | |
| Held to maturity (fair value of $3,716 as of March 31, 2011 and $4,086 as of December 31, 2010) | 3,672 | | | 4,032 | |
| Loans held for sale | 279 | | | 702 | |
| Loans | 938,523 | | | 938,035 | |
| Allowance for loan losses | (15,398 | ) | | (15,167 | ) |
| Net loans | 923,125 | | | 922,868 | |
| Loan pool participations, net | 62,207 | | | 65,871 | |
| Premises and equipment, net | 25,916 | | | 26,518 | |
| Accrued interest receivable | 9,580 | | | 10,648 | |
| Other intangible assets, net | 10,919 | | | 11,143 | |
| Bank-owned life insurance | 27,001 | | | 26,772 | |
| Other real estate owned | 3,874 | | | 3,850 | |
| Deferred income taxes | 6,097 | | | 6,430 | |
| Other assets | 19,948 | | | 19,948 | |
| Total assets | $ | 1,618,231 | | | $ | 1,581,259 | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | |
| Deposits: | | | |
| Non-interest-bearing demand | $ | 144,724 | | | $ | 129,978 | |
| Interest-bearing checking | 472,257 | | | 442,878 | |
| Savings | 75,439 | | | 74,826 | |
| Certificates of deposit under $100,000 | 379,326 | | | 380,082 | |
| Certificates of deposit $100,000 and over | 191,412 | | | 191,564 | |
| Total deposits | 1,263,158 | | | 1,219,328 | |
| Federal funds purchased | — | | | — | |
| Securities sold under agreements to repurchase | 46,325 | | | 50,194 | |
| Federal Home Loan Bank borrowings | 117,200 | | | 127,200 | |
| Deferred compensation liability | 3,698 | | | 3,712 | |
| Long-term debt | 15,464 | | | 15,464 | |
| Accrued interest payable | 1,964 | | | 1,872 | |
| Other liabilities | 9,107 | | | 5,023 | |
| Total liabilities | 1,456,916 | | | 1,422,793 | |
| | | | |
| Shareholders' equity: | | | |
| Preferred stock, no par value, with a liquidation preference of $1,000 per share; authorized 500,000 shares; issued 16,000 shares as of March 31, 2011 and December 31, 2010 | $ | 15,784 | | | $ | 15,767 | |
| Common stock, $1 par value; authorized 15,000,000 shares at March 31, 2011 and December 31, 2010; issued 8,690,398 shares at March 31, 2011 and December 31, 2010; outstanding 8,624,392 share at March 31, 2011 and 8,614,790 shares at December 31, 2010 | 8,690 | | | 8,690 | |
| Additional paid-in capital | 81,213 | | | 81,268 | |
| Treasury stock at cost, 66,006 shares as of March 31, 2011 and 75,608 shares at December 31, 2010 | (918 | ) | | (1,052 | ) |
| Retained earnings | 57,876 | | | 55,619 | |
| Accumulated other comprehensive income (loss) | (1,330 | ) | | (1,826 | ) |
| Total shareholders' equity | 161,315 | | | 158,466 | |
| Total liabilities and shareholders' equity | $ | 1,618,231 | | | $ | 1,581,259 | |
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
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| | | | | | | | |
(unaudited)
(dollars in thousands, except per share amounts) | | Three Months Ended
March 31, |
| | | 2011 | | 2010 |
| Interest income: | | | | |
| Interest and fees on loans | | $ | 12,800 | | | $ | 13,704 | |
| Interest and discount on loan pool participations | | 354 | | | 899 | |
| Interest on bank deposits | | 8 | | | 10 | |
| Interest on federal funds sold | | — | | | — | |
| Interest on investment securities: | | | | |
| Taxable securities | | 2,688 | | | 2,225 | |
| Tax-exempt securities | | 1,035 | | | 990 | |
| Total interest income | | 16,885 | | | 17,828 | |
| | | | | |
| Interest expense: | | | | |
| Interest on deposits: | | | | |
| Interest-bearing checking | | 1,008 | | | 1,070 | |
| Savings | | 59 | | | 36 | |
| Certificates of deposit under $100,000 | | 2,187 | | | 2,543 | |
| Certificates of deposit $100,000 and over | | 848 | | | 967 | |
| Total interest expense on deposits | | 4,102 | | | 4,616 | |
| Interest on federal funds purchased | | — | | | 1 | |
| Interest on securities sold under agreements to repurchase | | 74 | | | 76 | |
| Interest on Federal Home Loan Bank borrowings | | 945 | | | 1,207 | |
| Interest on notes payable | | 10 | | | 13 | |
| Interest on long-term debt | | 162 | | | 148 | |
| Total interest expense | | 5,293 | | | 6,061 | |
| Net interest income | | 11,592 | | | 11,767 | |
| Provision for loan losses | | 900 | | | 1,500 | |
| Net interest income after provision for loan losses | | 10,692 | | | 10,267 | |
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| Noninterest income: | | | | |
| Trust and investment fees | | 1,273 | | | 1,234 | |
| Service charges and fees on deposit accounts | | 851 | | | 864 | |
| Mortgage origination and loan servicing fees | | 877 | | | 500 | |
| Other service charges, commissions and fees | | 679 | | | 584 | |
| Bank-owned life insurance income | | 229 | | | 167 | |
| Investment securities losses, net: | | | | |
| Impairment losses on investment securities | | — | | | (189 | ) |
| Less non-credit-related losses | | — | | | — | |
| Net impairment losses | | — | | | (189 | ) |
| Gain on sale of available for sale securities | | — | | | 237 | |
| Loss on sale of premises and equipment | | (48 | ) | | (77 | ) |
| Total noninterest income | | 3,861 | | | 3,320 | |
| | | | | |
| Noninterest expense: | | | | |
| Salaries and employee benefits | | 5,870 | | | 5,790 | |
| Net occupancy and equipment expense | | 1,617 | | | 1,776 | |
| Professional fees | | 677 | | | 749 | |
| Data processing expense | | 450 | | | 457 | |
| FDIC Insurance expense | | 597 | | | 692 | |
| Other operating expense | | 1,423 | | | 1,584 | |
| Total noninterest expense | | 10,634 | | | 11,048 | |
| Income before income tax expense | | 3,919 | | | 2,539 | |
| Income tax expense | | 1,014 | | | 535 | |
| Net income | | $ | 2,905 | | | $ | 2,004 | |
| Less: Preferred stock dividends and discount accretion | | $ | 217 | | | $ | 217 | |
| Net income available to common shareholders | | $ | 2,688 | | | $ | 1,787 | |
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MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
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| | | | | | | | | | |
| | March 31,
2011 | | December 31,
2010 | | March 31,
2010 |
| (unaudited, dollars in thousands, except per share amounts) | | | | | |
| Per share data: | | | | | |
| Book value per share | $ | 18.70 | | | 18.39 | | | $ | 17.90 | |
| Tangible common equity per share | 15.61 | | | 15.27 | | | 14.70 | |
| Financial Ratios: | | | | | |
| Tangible common equity/tangible assets | 8.37 | % | | 8.37 | % | | 8.26 | % |
| Total shareholders' equity/total assets | 9.97 | % | | 10.02 | % | | 10.00 | % |
| Tier 1 capital/average assets | 10.58 | % | | 10.45 | % | | 10.28 | % |
| Total bank loans/total deposits | 74.30 | % | | 76.93 | % | | 80.01 | % |
| Total loans + loan pools/total deposits | 79.39 | % | | 82.51 | % | | 87.02 | % |
| Asset Quality | | | | | |
| Gross bank loans | $ | 938,523 | | | 938,035 | | | $ | 954,689 | |
| Allowance for bank loan losses | 15,398 | | | 15,167 | | | 14,553 | |
| Net charge-offs (YTD) | 669 | | | 4,740 | | | 904 | |
| Bank loans past due 30 - 89 days | 7,038 | | | 10,482 | | | 11,078 | |
| Other real estate owned | 3,874 | | | 3,850 | | | 2,547 | |
| Non-performing bank loans | | | | | |
| Non-accrual loans | $ | 14,531 | | | 12,405 | | | $ | 10,790 | |
| Restructured loans | 6,661 | | | 5,797 | | | 3,565 | |
| Loans 90+ days past due | 2,244 | | | 1,579 | | | 1,985 | |
| Total non-performing bank loans | 23,436 | | | 19,781 | | | 16,340 | |
| | | | | | |
| Gross loan pools | $ | 64,341 | | | 68,005 | | | $ | 83,652 | |
| Allowance for loan pool losses | 2,134 | | | 2,134 | | | 2,134 | |
| Net bank loan charge-offs/average bank loans (YTD - annualized) | 0.29 | % | | 0.50 | % | | 0.38 | % |
| Nonperforming bank loans/total bank loans | 2.50 | % | | 2.11 | % | | 1.71 | % |
| Nonperforming bank loans + other real estate/total assets | 1.69 | % | | 1.49 | % | | 1.22 | % |
| Allowance for bank loan losses/total bank loans | 1.64 | % | | 1.62 | % | | 1.52 | % |
| Allowance for loan pool losses/total loan pools | 3.32 | % | | 3.14 | % | | 2.55 | % |
| Allowance for bank loan losses/nonperforming bank loans | 65.70 | % | | 76.67 | % | | 89.06 | % |
|
| | | | | | | | | | | |
| | Three Months Ended March 31, | | Year Ended December 31, |
| | 2011 | | 2010 | | 2010 |
| Per share data: | | | | | |
| Ending number of shares outstanding | 8,624,392 | | | 8,609,804 | | | 8,614,790 | |
| Average number of shares outstanding | 8,621,720 | | | 8,607,853 | | | 8,612,117 | |
| Diluted average number of shares | 8,682,381 | | | 8,611,511 | | | 8,637,713 | |
| Earnings per common share - basic | $ | 0.31 | | | $ | 0.21 | | | $ | 1.08 | |
| Earnings per common share - diluted | 0.31 | | | 0.21 | | | 1.07 | |
| Dividends paid per common share | 0.05 | | | 0.05 | | | 0.20 | |
| Performance Ratios: | | | | | |
| Return on average assets | 0.74 | % | | 0.53 | % | | 0.65 | % |
| Return on average shareholders' equity | 7.41 | % | | 5.28 | % | | 6.44 | % |
| Return on average tangible common equity | 8.26 | % | | 5.74 | % | | 7.14 | % |
| Net interest margin (FTE) | 3.31 | % | | 3.50 | % | | 3.43 | % |
| Average Balances: | | | | | |
| Total bank loans | $ | 929,247 | | | $ | 959,568 | | | $ | 955,562 | |
| Total loan pools | 66,347 | | | 84,267 | | | 78,150 | |
| Interest-earning assets | 1,495,402 | | | 1,433,850 | | | 1,466,265 | |
| Total assets | 1,589,542 | | | 1,527,170 | | | 1,559,035 | |
| Interest-bearing deposits | 1,096,445 | | | 1,037,745 | | | 1,054,069 | |
| Interest-bearing liabilities | 1,283,058 | | | 1,223,541 | | | 1,246,655 | |
| Stockholders' common equity | 143,116 | | | 138,090 | | | 141,456 | |
| Total equity | 158,891 | | | 153,798 | | | 157,190 | |
