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| NEWS RELEASE | | |
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| FOR IMMEDIATE RELEASE | | |
| Contact: | | | | | |
| | Charles N. Funk | | Gary J. Ortale | | Steven Carr | |
| | President & CEO | | EVP & CFO | | Dresner Corporate Services | |
| | 319.356.5800 | | 319.356.5800 | | 312.726.3600 | |
MIDWESTONE FINANCIAL GROUP, INC.
REPORTS THIRD QUARTER 2013 FINANCIAL RESULTS
Iowa City, Iowa, October 24, 2013 - MidWestOne Financial Group, Inc. (NASDAQ - MOFG), today reported results for its three and nine months ended September 30, 2013. Net income for the third quarter of 2013 rose to $4.9 million, or $0.57 per diluted share, compared with $4.2 million, or $0.50 per diluted share, for the third quarter of 2012.
Net income for the third quarter of 2013 was 14.8% higher than the same period in 2012 primarily due to:
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| • | a 16.6% increase in noninterest income, mainly due to a $0.2 million increase in mortgage origination and mortgage servicing fees in the third quarter of 2013, driven by a $0.5 million increase in the fair value of retained mortgage servicing rights, and a $0.3 million impairment loss on investment securities in the third quarter of 2012, for which no comparable loss was recorded in the 2013 period; and |
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| • | a decrease of 4.0% in noninterest expense; partially offset by |
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| • | a 3.3% decrease in net interest income. |
“This was a strong quarter for MidWestOne; in fact, it is the best quarter in terms of earnings per share since our 2008 merger,” stated President and Chief Executive Officer, Charles N. Funk. “With that said, we very clearly received a large boost from the mortgage servicing rights adjustment to income during the quarter, which we do not expect to see repeated. We continued to post solid loan growth, good wealth management fee income increases and our expense control remains very good.”
Net income for the first nine months of 2013 was $14.2 million, which represents a $2.0 million, or 16.4%, increase compared to $12.2 million of net income for the same period of 2012, with earnings per diluted share of $1.66 and $1.43 for the comparative year-to-date periods, respectively. The increase in net income was due primarily to lower noninterest expense, mainly due to the expense related to the termination and liquidation of the Company's defined benefit pension plan in 2012, offset in part by decreased noninterest income, mainly due to the gain on the sale of the Home Mortgage Center location in 2012. After excluding the $6.1 million pension liquidation expense and the $4.0 million gain on the sale of the Company's Home Mortgage Center, adjusted diluted earnings per share for the first nine months of 2012 were $1.58.
Results of Operations
Net interest income for the third quarter of 2013 declined $0.4 million, or 3.3%, from $13.7 million for the third quarter of 2012, to $13.3 million. Income from loan pool participations was $0.2 million for the third quarter of 2013, a decrease of $0.7 million compared to the same period a year ago, on a much lower level of investment in 2013, as the Company continues to exit this line of business as balances pay down. Loan pool participation income is accounted for on a cash basis when actual payments are received, which can cause income related to this item to vary widely from quarter to quarter. Despite increases in loan balances, loan interest income decreased $0.6 million, or 4.3%, to $12.2 million for the third quarter of 2013, compared to $12.8 million for the same period of 2012, due to the generally low interest rate environment. Income from investment securities decreased to $3.7 million for the third quarter of 2013 compared to $3.9 million for the third quarter of 2012, due mainly to a decrease in the average balance of investment securities of $11.2 million between the two comparable periods. Interest expense decreased $1.0 million, or 26.3%, to $2.9 million for the third quarter of 2013, compared to $3.9 million for the same period of 2012, primarily due to lower expense on deposit accounts resulting from lower interest rates.
Net interest income for the first nine months of 2013 increased $0.5 million to $40.7 million compared with the nine months ended September 30, 2012. Income from loan pool participations increased $0.2 million, or 10.1%, to $1.9 million, while loan interest income decreased $2.0 million, or 5.3%, to $36.6 million for the first nine months of 2013. Interest expense decreased $2.8 million, or 22.8%, to $9.4 million for the nine months ended September 30, 2013, compared with $12.2 million for the same period a year ago.
“We are pleasantly surprised that our net interest margin has held up well in this ultra-low interest rate environment,” stated Mr. Funk. “The loan growth has helped as has our disciplined deposit pricing, though this has perhaps come at the expense of overall balance sheet growth. We continue to expect margin compression as we move into 2014 unless interest rates begin to move higher.”
The net interest margin for the third quarter of 2013, calculated on a fully tax-equivalent basis, was 3.43%, or 14 basis points lower than the 3.57% net interest margin for the third quarter of 2012. Lower rates paid on interest-bearing liabilities largely offset the lower yields being received on interest-earning assets. The Company posted a net interest margin of 3.48% for the first nine months of 2013, virtually unchanged from the 3.51% for the prior year period for predominantly the same reason.
The provision for loan losses for the third quarter of 2013 was $0.3 million, a decrease of $0.3 million from $0.6 million in the third quarter of 2012, reflecting management’s belief that the regional economy has generally stabilized and is showing signs of renewed growth. As of September 30, 2013, the year-to-date provision for loan losses was $1.0 million, compared with $1.7 million for the same period last year, a decrease of $0.7 million, or 39.3%. The decreased provision reflects the effects of a significant loan recovery during the first quarter of 2013.
Noninterest income for the third quarter of 2013 increased to $3.8 million, up $0.5 million, or 16.6%, from $3.3 million in the third quarter of 2012, primarily a result of the $0.3 million impairment loss on investment securities in the third quarter of 2012, for which no comparable loss was recorded in the 2013 period. Mortgage origination and loan servicing fees increased $0.2 million, or 17.8%, to $1.1 million for the third quarter of 2013, compared to $0.9 million for the same quarter of 2012. The increase was due to the fair value adjustment of retained mortgage servicing rights. These increases were partially offset by a decrease in service charges and fees on deposit accounts of $0.1 million, or 7.1%, to $0.8 million during the third quarter of 2013, compared with $0.9 million in the third quarter of 2012, primarily as a result of decreased NSF check fee income.
For the first nine months of 2013, noninterest income declined to $11.5 million, a decrease of $4.1 million, or 26.4%, from $15.6 million during the same period of 2012. The primary reason for this decrease was a one-time gain on the sale of the Home Mortgage Center location recognized in 2012. Net gains on the sale of available for sale securities for the first nine months of 2013 decreased $0.6 million to $0.1 million, from $0.7 million for the same period of 2012. These decreases were partially offset by the absence of a $0.3 million impairment loss on investment securities as had been recognized in the third quarter of 2012, and a $0.3 million, or 13.1%, increase in mortgage origination and loan servicing fees to $2.8 million from $2.5 million in the first nine months of 2012, mainly due to the fair value adjustment of retained mortgage servicing rights. Trust, investment, and insurance fees of $4.1 million for the nine months ended September 30, 2013, was an improvement of $0.3 million, or 8.0%, from $3.8 million for the same period of 2012. This increase was primarily attributable to increased trust department fee income.
Third quarter 2013 noninterest expense was $10.3 million, a decrease of $0.4 million, or 4.0%, from $10.7 million for the third quarter of 2012. With the exception of a small increase in both net occupancy and equipment expense and professional fees, all other noninterest expense categories experienced a decline for the third quarter of 2013, compared with the third quarter of 2012. Noninterest expense decreased to $31.9 million, for the first nine months of 2013, from $38.1 million for the same period of 2012, mainly due to the one-time expense related to the termination and liquidation of the Company's defined benefit pension plan in 2012. Absent that event, salaries and employee benefits increased $0.5 million, or 2.7%, primarily due to annual salary increases for employees that were effective at the beginning of 2013. With the exception of a small increase in net occupancy and equipment expense, all other noninterest expense categories experienced a decline for the first nine months of 2013, compared with the same period of 2012.
Income tax expense was $1.7 million for the third quarter of 2013 compared with $1.5 million for the same period in 2012, and was $5.1 million for the nine months ended September 30, 2013 compared to $3.8 million for the same period in 2012. The expense variation for both the three- and nine-month periods was primarily due to changes in the levels of taxable income and, for the nine-month period, the realization of a tax benefit in the second quarter of 2012 due to the partial release of a valuation allowance on capital losses.
Balance Sheet and Asset Quality
Total assets declined to $1.74 billion at September 30, 2013 from $1.79 billion at December 31, 2012, resulting primarily from decreased investment in securities and a decrease in cash and cash equivalents, partially offset by an increase in loans. Deposit
balances and repurchase agreements both decreased, while Federal Home Loan Bank borrowings and Federal Funds purchased increased. Total deposits at September 30, 2013, declined to $1.32 billion, a decrease of $78.1 million, or 5.6%, from December 31, 2012, and repurchase agreements decreased $10.2 million to $58.7 million at September 30, 2013, from $68.8 million at December 31, 2012. Deposit reduction was primarily concentrated in certificate of deposit accounts, due to the low interest rates being paid on time deposits and depositors choosing other savings and investing alternatives aside from the Company’s deposit account products.
Total bank loans (excluding loan pool participations and loans held for sale) increased $41.6 million to $1.08 billion at September 30, 2013, compared to $1.04 billion as of December 31, 2012. Increases were primarily in commercial and industrial loans, one- to four- family first lien, other commercial real estate, and farmland loans. These increases were partially offset by decreases in construction and development, one- to four- family junior liens, and other commercial real estate loans. At the end of the third quarter of 2013, the largest category of bank loans was commercial real estate, comprising 40% of the portfolio, of which 8% was farmland, 6% was construction and development, and 5% was multifamily residential mortgages. Residential real estate loans was the next largest category at 26%, followed by commercial and industrial loans at 24%, agricultural loans at 8%, and consumer loans at 2%.
Nonperforming bank loans increased from $10.7 million, or 1.03% of total bank loans, at December 31, 2012, to $11.8 million, or 1.09% of total bank loans, at September 30, 2013. At September 30, 2013, nonperforming loans consisted of $3.0 million in nonaccrual loans, $7.8 million in troubled debt restructures (“TDRs”) and $0.9 million in loans past due 90 days or more and still accruing. This compares to nonaccrual loans of $2.9 million, TDRs of $7.1 million, and loans past due 90 days or more and still accruing of $0.6 million at December 31, 2012. The increase in overall nonperforming loans was primarily due to the addition of seven new loans to TDR status (one commercial, two commercial real estate, three residential real estate first liens and one residential real estate junior lien), along with three previously restructured loans (one commercial and two residential real estate) that were classified as TDRs in 2013 due to payment default. The increase in loans 90 days past due and still accruing interest was due to one commercial loan totaling $0.2 million and four real estate loans totaling $0.3 million, while nonaccrual loans remained relatively unchanged. Bank loans past due 30 to 89 days and still accruing interest (not included in the nonperforming loan totals) were $5.2 million at September 30, 2013, compared with $6.1 million at December 31, 2012. At September 30, 2013, other real estate owned (not included in nonperforming loans) was $1.9 million, down from $3.3 million at December 31, 2012. During 2013 the Company added seven properties to other real estate owned, while at the same time selling seven properties, excluding lot sales from existing development properties. As of September 30, 2013, the allowance for bank loan losses was $16.5 million, or 1.53% of total bank loans, compared with $16.0 million, or 1.54% of total bank loans, at December 31, 2012. The allowance for loan losses represented 140.31% of nonperforming bank loans at September 30, 2013, compared with 149.77% of nonperforming bank loans at December 31, 2012. The Company had net bank loan charge-offs of $0.5 million in the first nine months of 2013, or an annualized 0.06% of average bank loans outstanding, compared to net charge-offs of $1.6 million, or an annualized 0.21% of average bank loans outstanding, for the same period of 2012.
Loan pool participations (participation interests in performing, subperforming and nonperforming loans that have been purchased from various nonaffiliated banking organizations) were $30.2 million at September 30, 2013, down from $37.8 million at December 31, 2012, and $40.0 million at the end of the third quarter last year. 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, as it is not part of its core business strategy.
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 (after all expenses) on loan pool participations was 2.85% for the third quarter of 2013, down from 8.31% for the third quarter of 2012. Yields were 7.56% and 5.02% for the first nine months of 2013 and 2012, respectively. The net yield was lower in the third quarter of 2013 due to the absence of gains realized from loan payoffs in the portfolio at a value greater than their net book value, as had occurred in the third quarter of 2012. The net yield was higher in the first nine months of 2013 due to the payoff of several loans in the portfolio at a value greater than their net book value, earlier in the year. Including loan pool participations, the loan to deposit ratio was 83.8% as of September 30, 2013, compared with 76.7% as of December 31, 2012.
Investment securities totaled $523.0 million at September 30, 2013, or 30.1% of total assets, down from $590.2 million, or 32.9% of total assets, as of December 31, 2012. A total of $490.1 million of the investment securities were classified as available for sale at September 30, 2013. As of September 30, 2013, the portfolio consisted mainly of U.S. government agencies (9.8%), mortgage-backed securities (41.0%), and obligations of states and political subdivisions (42.8%).
Capital Adequacy
Total shareholders’ equity was $175.5 million as of September 30, 2013, compared to $173.9 million as of December 31, 2012, an increase of $1.6 million, or 0.9%. This increase was primarily attributable to net income of $14.2 million for the first
nine months of 2013, partially offset by a $8.8 million decrease in accumulated other comprehensive income due to market value adjustments on investment securities available for sale, the payment of $3.2 million in common stock dividends, and a $0.5 million increase in treasury stock due to repurchases. The total shareholders’ equity to total assets ratio was 10.10% at September 30, 2013, up from 9.70% at December 31, 2012. The tangible equity to tangible assets ratio was 9.63% at September 30, 2013, compared with 9.22% at December 31, 2012. Tangible book value per share was $19.66 at September 30, 2013, an increase from $19.39 per share at December 31, 2012.
“We are very pleased with our company’s performance thus far in 2013,” continued Mr. Funk. “Profitability returns are good and we are very happy with the 56.24% efficiency ratio for the third quarter. Our capital levels are strong, liquidity is in ample supply and asset quality remains in the top tier of our Midwestern peers of similar size. The challenge for us will be to continue this momentum into 2014.”
Prior Period Accounting Correction
During the quarter ended June 30, 2013, the Company identified an immaterial error in its accounting for other-than-temporary impairment on its portfolio of collateralized debt obligations. This error related to the identification of credit-related impairments subsequent to the Company's adoption of Financial Accounting Standards Board (FASB) Staff Position (FSP) No. FAS 115-2 and FAS 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” as of April 1, 2009.
As a result, the Company has adjusted prior period amounts to correct this immaterial error. In addition to certain adjustments made to periods prior to 2012, retained earnings and accumulated other comprehensive income on the Company’s consolidated balance sheets as of December 31, 2012 were decreased and increased, respectively, by $2,870,000. Of these amounts, $2,323,000 related to the after-tax effect of credit impairments that should have been recognized in the year ended December 31, 2009. A downward adjustment of $212,000 to net income on the consolidated statements of operations for the three- and nine-month periods ended September 30, 2012 was also necessary as a result of this correction.
Quarterly Cash Dividend Declared
On October 15, 2013, the Company’s board of directors declared a fourth quarter cash dividend of $0.125 per common share, which is the same as the dividend paid last quarter. The dividend is payable December 16, 2013, to shareholders of record at the close of business on December 1, 2013. At this quarterly rate, the indicated annual cash dividend is equal to $0.50 per common share.
Conference Call Details
MidWestOne will host a conference call for investors at 11:00 a.m., CDT, on Friday, October 25, 2013. To participate, dial 888-317-6016 at least fifteen minutes before the call’s start time. If you are unable to participate on the call, a replay will be available until November 6, 2013 on the Company’s web site: www.midwestone.com. A transcript of the call will also be available on the web site within three business days of the event.
About MidWestOne Financial Group, Inc.
MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. The Company’s bank subsidiary MidWestOne Bank, is also headquartered in Iowa City. MidWestOne Bank has office locations in Belle Plaine, Burlington, Cedar Falls, Conrad, Coralville, Davenport, Fairfield, Fort Madison, Iowa City, 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.”
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 and the extensive regulations to be promulgated thereunder, as well as rules approved by the federal bank regulatory agencies to implement the Basel III capital accord), 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 Securities and Exchange Commission filings made by the Company.
Non-GAAP Presentations:
Certain non-GAAP ratios and amounts are provided to evaluate and measure the Company’s operating performance and financial condition, including net interest margin, the Tier 1 capital to average assets ratio, the tangible equity to tangible assets ratio, return on average equity and various performance metrics excluding one-time events. Management believes this data provides investors with pertinent information regarding the Company’s profitability, financial condition and capital adequacy and how management evaluates such metrics internally. The following 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 | | As of | | As of |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (dollars in thousands, except per share data) | 2013 | | 2013 | | 2013 | | 2012 | | 2012 |
| Tangible Equity | | | | | | | | | |
| Total shareholders’ equity | $ | 175,534 |
| | $ | 172,283 |
| | $ | 176,865 |
| | $ | 173,932 |
| | $ | 171,524 |
|
| Less: Intangible assets, net | (8,971 | ) | | (9,137 | ) | | (9,303 | ) | | (9,469 | ) | | (9,663 | ) |
| Tangible equity | $ | 166,563 |
| | $ | 163,146 |
| | $ | 167,562 |
| | $ | 164,463 |
| | $ | 161,861 |
|
| Tangible Assets | | | | | | | | | |
| Total assets | $ | 1,738,525 |
| | $ | 1,741,884 |
| | $ | 1,785,645 |
| | $ | 1,792,819 |
| | $ | 1,721,630 |
|
| Less: Intangible assets, net | (8,971 | ) | | (9,137 | ) | | (9,303 | ) | | (9,469 | ) | | (9,663 | ) |
| Tangible assets | $ | 1,729,554 |
| | $ | 1,732,747 |
| | $ | 1,776,342 |
| | $ | 1,783,350 |
| | $ | 1,711,967 |
|
| Common shares outstanding | 8,470,058 |
| | 8,466,471 |
| | 8,498,484 |
| | 8,480,488 |
| | 8,487,518 |
|
| Tangible Book Value Per Share | $ | 19.66 |
| | $ | 19.27 |
| | $ | 19.72 |
| | $ | 19.39 |
| | $ | 19.07 |
|
| Tangible Equity/Tangible Assets | 9.63 | % | | 9.42 | % | | 9.43 | % | | 9.22 | % | | 9.45 | % |
| Tier 1 Capital | | | | | | | | | |
| Total shareholders’ equity | $ | 175,534 |
| | $ | 172,283 |
| | $ | 176,865 |
| | $ | 173,932 |
| | $ | 171,524 |
|
| Plus: Long term debt (qualifying restricted core capital) | 15,464 |
| | 15,464 |
| | 15,464 |
| | 15,464 |
| | 15,464 |
|
| Net unrealized gains on securities available for sale | (2,240 | ) | | (2,874 | ) | | (10,119 | ) | | (11,050 | ) | | (12,048 | ) |
| Less: Disallowed intangibles | (9,203 | ) | | (9,317 | ) | | (9,471 | ) | | (9,617 | ) | | (9,807 | ) |
| Tier 1 Capital | $ | 179,555 |
| | $ | 175,556 |
| | $ | 172,739 |
| | $ | 168,729 |
| | $ | 165,133 |
|
| Average Assets | | | | | | | | | |
| Quarterly average assets | $ | 1,725,930 |
| | $ | 1,763,211 |
| | $ | 1,764,354 |
| | $ | 1,757,910 |
| | $ | 1,692,759 |
|
| Less: Disallowed intangibles | (9,203 | ) | | (9,317 | ) | | (9,471 | ) | | (9,617 | ) | | (9,807 | ) |
| Average Assets | $ | 1,716,727 |
| | $ | 1,753,894 |
| | $ | 1,754,883 |
| | $ | 1,748,293 |
| | $ | 1,682,952 |
|
| Tier 1 Capital/Average Assets | 10.46 | % | | 10.01 | % | | 9.84 | % | | 9.65 | % | | 9.81 | % |
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| | | | | | | | | | | | | | | | | | | | | |
| | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | For the Year Ended December 31, | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (dollars in thousands) | | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| Net Income | | $ | 4,864 |
| | $ | 14,185 |
| | $ | 16,534 |
| | $ | 4,238 |
| | $ | 12,182 |
|
Plus: Intangible amortization, net of tax(1) | | 108 |
| | 324 |
| | 513 |
| | 129 |
| | 385 |
|
| Adjusted net income | | $ | 4,972 |
| | $ | 14,509 |
| | $ | 17,047 |
| | $ | 4,367 |
| | $ | 12,567 |
|
| Plus: Loss on termination of pension | | — |
| | — |
| | 6,088 |
| | — |
| | 6,088 |
|
| Less: Gain on sale of Home Mortgage Center | | — |
| | — |
| | (4,047 | ) | | — |
| | (4,047 | ) |
Net tax effect on above items(2) | | — |
| | — |
| | (755 | ) | | — |
| | (755 | ) |
| Adjusted net income, exclusive of loss on termination of pension and gain on sale of Home Mortgage Center | | $ | 4,972 |
| | $ | 14,509 |
| | $ | 18,333 |
| | $ | 4,367 |
| | $ | 13,853 |
|
| Average Tangible Equity | | | | | | | | | | |
| Average total shareholders’ equity | | $ | 172,136 |
| | $ | 174,975 |
| | $ | 165,429 |
| | $ | 169,022 |
| | $ | 163,016 |
|
| Less: Average intangible assets, net | | (9,038 | ) | | (9,172 | ) | | (9,785 | ) | | (9,742 | ) | | (9,900 | ) |
| Average tangible equity | | $ | 163,098 |
| | $ | 165,803 |
| | $ | 155,644 |
| | $ | 159,280 |
| | $ | 153,116 |
|
| Return on Average Tangible Equity (annualized) | | 12.10 | % | | 11.70 | % | | 10.95 | % | | 10.91 | % | | 10.96 | % |
| Return on Average Tangible Equity, Exclusive of Loss on Termination of Pension and Gain on Sale of Home Mortgage Center (annualized) | | 12.10 | % | | 11.70 | % | | 11.78 | % | | 10.91 | % | | 12.09 | % |
| (1) Computed on a tax-equivalent basis, assuming a federal income tax rate of 34% for 2012, and 35% for 2013 | | | | |
| (2) Computed assuming a combined state and federal tax rate of 37% | | | | | | | | |
| September 30, 2012 values may differ from previously reported amounts due to prior period accounting correction. | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | |
| | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | For the Year Ended December 31, | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (dollars in thousands, except earnings per share) | | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| Net Interest Margin Tax Equivalent Adjustment | | | | | | | | | | |
| Net interest income | | $ | 13,265 |
| | $ | 40,665 |
| | $ | 53,350 |
| | $ | 13,719 |
| | $ | 40,193 |
|
Plus tax equivalent adjustment:(1) | | | | | | | | | | |
| Loans | | 248 |
| | 706 |
| | 827 |
| | 210 |
| | 615 |
|
| Securities | | 674 |
| | 2,095 |
| | 2,304 |
| | 582 |
| | 1,707 |
|
Tax equivalent net interest income (1) | | $ | 14,187 |
| | $ | 43,466 |
| | $ | 56,481 |
| | $ | 14,511 |
| | $ | 42,515 |
|
| Average interest earning assets | | $ | 1,639,773 |
| | $ | 1,670,128 |
| | $ | 1,630,835 |
| | $ | 1,619,260 |
| | $ | 1,615,419 |
|
| Net Interest Margin | | 3.43 | % | | 3.48 | % | | 3.46 | % | | 3.57 | % | | 3.51 | % |
| Net Income | | $ | 4,864 |
| | $ | 14,185 |
| | $ | 16,534 |
| | $ | 4,238 |
| | $ | 12,182 |
|
| Plus: Loss on termination of pension | | — |
| | — |
| | 6,088 |
| | — |
| | 6,088 |
|
| Less: Gain on sale of Home Mortgage Center | | — |
| | — |
| | (4,047 | ) | | — |
| | (4,047 | ) |
Net tax effect of above items(2) | | — |
| | — |
| | (755 | ) | | — |
| | (755 | ) |
| Net income, exclusive of loss on termination of pension and gain on sale of Home Mortgage Center | | $ | 4,864 |
| | $ | 14,185 |
| | $ | 17,820 |
| | $ | 4,238 |
| | $ | 13,468 |
|
| Return on Average Assets (annualized) | | 1.12 | % | | 1.08 | % | | 0.96 | % | | 0.99 | % | | 0.95 | % |
| Return on Average Assets, Exclusive of Loss on Termination of Pension and Gain on Sale of Home Mortgage Center (annualized) | | 1.12 | % | | 1.08 | % | | 1.03 | % | | 0.99 | % | | 1.05 | % |
| Return on Average Equity (annualized) | | 11.21 | % | | 10.84 | % | | 9.99 | % | | 9.97 | % | | 9.98 | % |
| Return on Average Equity, Exclusive of Loss on Termination of Pension and Gain on Sale of Home Mortgage Center (annualized) | | 11.21 | % | | 10.84 | % | | 10.77 | % | | 9.97 | % | | 11.04 | % |
| Earnings Per Common Share-Diluted | | $ | 0.57 |
| | $ | 1.66 |
| | $ | 1.94 |
| | $ | 0.50 |
| | $ | 1.43 |
|
| Earnings Per Common Share-Diluted, Exclusive of Loss on Termination of Pension and Gain on Sale of Home Mortgage Center | | 0.57 |
| | 1.66 |
| | 2.10 |
| | 0.50 |
| | 1.58 |
|
| (1) Computed on a tax-equivalent basis, assuming a federal income tax rate of 34% for 2012, and 35% for 2013 | | | | |
| (2) Computed assuming a combined state and federal tax rate of 37% | | | | | | | | |
| September 30, 2012 values may differ from previously reported amounts due to prior period accounting correction. | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | |
| | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, | | For the Year Ended December 31, | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| (dollars in thousands) | | 2013 | | 2013 | | 2012 | | 2012 | | 2012 |
| Operating Expense | | | | | | | | | | |
| Total noninterest expense | | 10,283 |
| | 31,862 |
| | 48,960 |
| | 10,713 |
| | 38,096 |
|
| Less: Amortization of intangibles | | (166 | ) | | (498 | ) | | (778 | ) | | (195 | ) | | (584 | ) |
| Operating expense | | $ | 10,117 |
| | $ | 31,364 |
| | $ | 48,182 |
| | $ | 10,518 |
| | $ | 37,512 |
|
| Less: Loss on termination of pension | | — |
| | — |
| | (6,088 | ) | | — |
| | (6,088 | ) |
| Operating expense, exclusive of loss on termination of pension | | $ | 10,117 |
| | $ | 31,364 |
| | $ | 42,094 |
| | $ | 10,518 |
| | $ | 31,424 |
|
| Operating Revenue | | | | | | | | | | |
Tax equivalent net interest income (1) | | $ | 14,187 |
| | $ | 43,466 |
| | $ | 56,481 |
| | $ | 14,511 |
| | $ | 42,515 |
|
| Plus: Noninterest income | | 3,800 |
| | 11,494 |
| | 19,737 |
| | 3,258 |
| | 15,626 |
|
| Impairment losses on investment securities | | — |
| | — |
| | 345 |
| | 337 |
| | 337 |
|
| Less: Gain on sale or call of available for sale securities | | — |
| | (84 | ) | | (805 | ) | | (8 | ) | | (741 | ) |
| (Gain) loss on sale of premises and equipment | | 2 |
| | 4 |
| | (4,188 | ) | | — |
| | (4,205 | ) |
| Operating revenue | | $ | 17,989 |
| | $ | 54,880 |
| | $ | 71,570 |
| | $ | 18,098 |
| | $ | 53,532 |
|
| Efficiency Ratio | | 56.24 | % | | 57.15 | % | | 67.32 | % | | 58.12 | % | | 70.07 | % |
| Efficiency Ratio, Exclusive of Loss on Termination of Pension | | 56.24 | % | | 57.15 | % | | 58.82 | % | | 58.12 | % | | 58.70 | % |
| (1) Computed on a tax-equivalent basis, assuming a federal income tax rate of 34% for 2012, and 35% for 2013 | | | | |
| September 30, 2012 values may differ from previously reported amounts due to prior period accounting correction. | | | | | | | | |
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
| | | | | | | |
| | As of September 30, 2013 | | As of December 31, 2012 |
| (dollars in thousands) | (unaudited) | | |
| ASSETS | | | |
| Cash and due from banks | $ | 25,288 |
| | $ | 30,197 |
|
| Interest-bearing deposits in banks | 778 |
| | 16,242 |
|
| Federal funds sold | — |
| | 752 |
|
| Cash and cash equivalents | 26,066 |
| | 47,191 |
|
| Investment securities: | | | |
| Available for sale | 490,148 |
| | 557,541 |
|
| Held to maturity (fair value of $30,743 as of September 30, 2013 and $32,920 as of December 31, 2012) | 32,825 |
| | 32,669 |
|
| Loans held for sale | 206 |
| | 1,195 |
|
| Loans | 1,076,837 |
| | 1,035,284 |
|
| Allowance for loan losses | (16,505 | ) | | (15,957 | ) |
| Net loans | 1,060,332 |
| | 1,019,327 |
|
| Loan pool participations, net | 28,071 |
| | 35,650 |
|
| Premises and equipment, net | 26,535 |
| | 25,609 |
|
| Accrued interest receivable | 10,554 |
| | 10,292 |
|
| Intangible assets, net | 8,971 |
| | 9,469 |
|
| Bank-owned life insurance | 29,367 |
| | 28,676 |
|
| Other real estate owned | 1,917 |
| | 3,278 |
|
| Assets held for sale | — |
| | 764 |
|
| Deferred income taxes | 7,217 |
| | 776 |
|
| Other assets | 16,316 |
| | 20,382 |
|
| Total assets | $ | 1,738,525 |
| | $ | 1,792,819 |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | |
| Deposits: | | | |
| Non-interest-bearing demand | $ | 201,886 |
| | $ | 190,491 |
|
| Interest-bearing checking | 576,318 |
| | 582,283 |
|
| Savings | 94,043 |
| | 91,603 |
|
| Certificates of deposit under $100,000 | 270,275 |
| | 312,489 |
|
| Certificates of deposit $100,000 and over | 179,129 |
| | 222,867 |
|
| Total deposits | 1,321,651 |
| | 1,399,733 |
|
| Federal funds purchased | 8,395 |
| | — |
|
| Securities sold under agreements to repurchase | 58,663 |
| | 68,823 |
|
| Federal Home Loan Bank borrowings | 145,187 |
| | 120,120 |
|
| Deferred compensation liability | 3,492 |
| | 3,555 |
|
| Long-term debt | 15,464 |
| | 15,464 |
|
| Accrued interest payable | 1,267 |
| | 1,475 |
|
| Other liabilities | 8,872 |
| | 9,717 |
|
| Total liabilities | 1,562,991 |
| | 1,618,887 |
|
| Shareholders' equity: | | | |
| Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding at September 30, 2013 and December 31, 2012 | $ | — |
| | $ | — |
|
| Common stock, $1.00 par value; authorized 15,000,000 shares at September 30, 2013 and December 31, 2012; issued 8,690,398 shares at September 30, 2013 and December 31, 2012; outstanding 8,470,058 shares at September 30, 2013 and 8,480,488 shares at December 31, 2012 | 8,690 |
| | 8,690 |
|
| Additional paid-in capital | 80,314 |
| | 80,383 |
|
| Treasury stock at cost, 220,340 shares as of September 30, 2013 and 209,910 shares at December 31, 2012 | (3,796 | ) | | (3,316 | ) |
| Retained earnings | 88,110 |
| | 77,125 |
|
| Accumulated other comprehensive income | 2,216 |
| | 11,050 |
|
| Total shareholders' equity | 175,534 |
| | 173,932 |
|
| Total liabilities and shareholders' equity | $ | 1,738,525 |
| | $ | 1,792,819 |
|
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
|
| | | | | | | | | | | | | | | | |
(unaudited)
(dollars in thousands) | | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | | 2013 | | 2012 | | 2013 | | 2012 |
| Interest income: | | | | | | | | |
| Interest and fees on loans | | $ | 12,215 |
| | $ | 12,760 |
| | $ | 36,606 |
| | $ | 38,639 |
|
| Interest and discount on loan pool participations | | 226 |
| | 886 |
| | 1,916 |
| | 1,741 |
|
| Interest on bank deposits | | 2 |
| | 7 |
| | 8 |
| | 29 |
|
| Interest on federal funds sold | | — |
| | — |
| | — |
| | 1 |
|
| Interest on investment securities: | | | | | |
| |
|
| Taxable securities | | 2,395 |
| | 2,654 |
| | 7,571 |
| | 8,224 |
|
| Tax-exempt securities | | 1,278 |
| | 1,279 |
| | 3,973 |
| | 3,744 |
|
| Total interest income | | 16,116 |
| | 17,586 |
| | 50,074 |
| | 52,378 |
|
| Interest expense: | | | | | | | | |
| Interest on deposits: | | | | | | | | |
| Interest-bearing checking | | 544 |
| | 691 |
| | 1,815 |
| | 2,281 |
|
| Savings | | 34 |
| | 36 |
| | 105 |
| | 105 |
|
| Certificates of deposit under $100,000 | | 987 |
| | 1,433 |
| | 3,347 |
| | 4,519 |
|
| Certificates of deposit $100,000 and over | | 493 |
| | 715 |
| | 1,695 |
| | 2,242 |
|
| Total interest expense on deposits | | 2,058 |
| | 2,875 |
| | 6,962 |
| | 9,147 |
|
| Interest on federal funds purchased | | 10 |
| | 6 |
| | 37 |
| | 11 |
|
| Interest on securities sold under agreements to repurchase | | 31 |
| | 43 |
| | 96 |
| | 145 |
|
| Interest on Federal Home Loan Bank borrowings | | 671 |
| | 767 |
| | 2,068 |
| | 2,353 |
|
| Interest on notes payable | | 7 |
| | 8 |
| | 22 |
| | 26 |
|
| Interest on long-term debt | | 74 |
| | 168 |
| | 224 |
| | 503 |
|
| Total interest expense | | 2,851 |
| | 3,867 |
| | 9,409 |
| | 12,185 |
|
| Net interest income | | 13,265 |
| | 13,719 |
| | 40,665 |
| | 40,193 |
|
| Provision for loan losses | | 250 |
| | 575 |
| | 1,050 |
| | 1,729 |
|
| Net interest income after provision for loan losses | | 13,015 |
| | 13,144 |
| | 39,615 |
| | 38,464 |
|
| Noninterest income: | | | | | | | | |
| Trust, investment, and insurance fees | | 1,297 |
| | 1,294 |
| | 4,069 |
| | 3,767 |
|
| Service charges and fees on deposit accounts | | 786 |
| | 846 |
| | 2,236 |
| | 2,424 |
|
| Mortgage origination and loan servicing fees | | 1,083 |
| | 919 |
| | 2,844 |
| | 2,514 |
|
| Other service charges, commissions and fees | | 406 |
| | 303 |
| | 1,574 |
| | 1,636 |
|
| Bank-owned life insurance income | | 230 |
| | 225 |
| | 691 |
| | 676 |
|
| Impairment losses on investment securities | | — |
| | (337 | ) | | — |
| | (337 | ) |
| Gain on sale or call of available for sale securities (Includes $84 reclassified from accumulated other comprehensive income for net gains on available for sale securities for the nine months ended September 30, 2013) | | — |
| | 8 |
| | 84 |
| | 741 |
|
| Gain (loss) on sale of premises and equipment | | (2 | ) | | — |
| | (4 | ) | | 4,205 |
|
| Total noninterest income | | 3,800 |
| | 3,258 |
| | 11,494 |
| | 15,626 |
|
| Noninterest expense: | | | | | | | | |
| Salaries and employee benefits | | 6,099 |
| | 6,207 |
| | 18,565 |
| | 24,167 |
|
| Net occupancy and equipment expense | | 1,580 |
| | 1,537 |
| | 4,806 |
| | 4,741 |
|
| Professional fees | | 615 |
| | 612 |
| | 2,016 |
| | 2,137 |
|
| Data processing expense | | 364 |
| | 443 |
| | 1,092 |
| | 1,258 |
|
| FDIC insurance expense | | 255 |
| | 326 |
| | 845 |
| | 929 |
|
| Amortization of intangible assets | | 166 |
| | 195 |
| | 498 |
| | 584 |
|
| Other operating expense | | 1,204 |
| | 1,393 |
| | 4,040 |
| | 4,280 |
|
| Total noninterest expense | | 10,283 |
| | 10,713 |
| | 31,862 |
| | 38,096 |
|
| Income before income tax expense | | 6,532 |
| | 5,689 |
| | 19,247 |
| | 15,994 |
|
| Income tax expense (Includes $32 income tax expense reclassified from accumulated other comprehensive income for the nine months ended September 30, 2013) | | 1,668 |
| | 1,451 |
| | 5,062 |
| | 3,812 |
|
| Net income | | $ | 4,864 |
| | $ | 4,238 |
| | $ | 14,185 |
| | $ | 12,182 |
|
| September 30, 2012 values may differ from previously reported amounts due to prior period accounting correction. | | | | | |
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
|
| | | | | | | | | | | | | | | | | | | |
| | As of and for the Nine Months Ended September 30, 2013 | | As of and for the Six Months Ended June 30, 2013 | | As of and for the Three Months Ended March 31, 2013 | | As of and for the Year Ended December 31, 2012 | | As of and for the Nine Months Ended September 30, 2012 |
| (unaudited, dollars in thousands, except per share amounts) | | | | | | | | | |
| Per share data: | | | | | | | | | |
| Book value per share | $ | 20.72 |
| | $ | 20.35 |
| | $ | 20.81 |
| | $ | 20.51 |
| | $ | 20.21 |
|
| Tangible book value per share | 19.66 |
| | 19.27 |
| | 19.72 |
| | 19.39 |
| | 19.07 |
|
| Financial Ratios: | | | | | | | | | |
| Tangible equity/tangible assets | 9.63 | % | | 9.42 | % | | 9.43 | % | | 9.22 | % | | 9.45 | % |
| Total shareholders’ equity/total assets | 10.10 | % | | 9.89 | % | | 9.90 | % | | 9.70 | % | | 9.96 | % |
| Tier 1 capital/average assets | 10.46 | % | | 10.01 | % | | 9.84 | % | | 9.65 | % | | 9.81 | % |
| Total bank loans/total deposits | 81.48 | % | | 79.39 | % | | 75.84 | % | | 73.96 | % | | 76.11 | % |
| Total loans + loan pool participations/total deposits | 83.76 | % | | 81.77 | % | | 78.35 | % | | 76.66 | % | | 79.13 | % |
| Asset Quality | | | | | | | | | |
| Gross bank loans | $ | 1,076,837 |
| | $ | 1,061,401 |
| | $ | 1,041,783 |
| | $ | 1,035,284 |
| | $ | 1,011,264 |
|
| Allowance for bank loan losses | 16,505 |
| | 16,578 |
| | 16,260 |
| | 15,957 |
| | 15,827 |
|
| Net charge-offs (recoveries) | 502 |
| | 179 |
| | (103 | ) | | 2,098 |
| | 1,578 |
|
| Bank loans past due 30 - 89 days | 5,244 |
| | 6,373 |
| | 6,465 |
| | 6,141 |
| | 5,342 |
|
| Other real estate owned | 1,917 |
| | 2,774 |
| | 3,025 |
| | 3,278 |
| | 3,117 |
|
| Non-performing bank loans | | | | | | | | | |
| Non-accrual loans | $ | 3,041 |
| | $ | 2,434 |
| | $ | 2,385 |
| | $ | 2,938 |
| | $ | 3,196 |
|
| Restructured loans | 7,814 |
| | 7,861 |
| | 7,708 |
| | 7,144 |
| | 7,329 |
|
| Loans 90+ days past due and still accruing interest | 908 |
| | 901 |
| | 667 |
| | 572 |
| | 1,029 |
|
| Total non-performing bank loans | 11,763 |
| | 11,196 |
| | 10,760 |
| | 10,654 |
| | 11,554 |
|
| | | | | | | | | | |
| Gross loan pool participations | $ | 30,205 |
| | $ | 31,851 |
| | $ | 34,513 |
| | $ | 37,784 |
| | $ | 40,036 |
|
| Allowance for loan pool participation losses | 2,134 |
| | 2,134 |
| | 2,134 |
| | 2,134 |
| | 2,134 |
|
| Net bank loan charge-offs (recoveries)/average bank loans - annualized | 0.06 | % | | 0.03 | % | | (0.04 | )% | | 0.21 | % | | 0.21 | % |
| Nonperforming bank loans/total bank loans | 1.09 | % | | 1.05 | % | | 1.03 | % | | 1.03 | % | | 1.14 | % |
| Nonperforming bank loans + other real estate/total assets | 0.79 | % | | 0.80 | % | | 0.77 | % | | 0.78 | % | | 0.85 | % |
| Allowance for bank loan losses/total bank loans | 1.53 | % | | 1.56 | % | | 1.56 | % | | 1.54 | % | | 1.57 | % |
| Allowance for loan pool participation losses/total loan pool participations | 7.07 | % | | 6.70 | % | | 6.18 | % | | 5.65 | % | | 5.33 | % |
| Allowance for bank loan losses/nonperforming bank loans | 140.31 | % | | 148.07 | % | | 151.12 | % | | 149.77 | % | | 136.98 | % |
|
| | | | | | | | | | | | | | | | | | | |
| | As of and for the Three Months Ended September 30, | | As of and for the Nine Months Ended September 30, | | As of and for the Year Ended December 31, |
| (unaudited, dollars in thousands, except per share amounts) | 2013 | | 2012 | | 2013 | | 2012 | | 2012 |
| Per share data: | | | | | | | | | |
| Ending number of shares outstanding | 8,470,058 |
| | 8,487,518 |
| | 8,470,058 |
| | 8,487,518 |
| | 8,480,488 |
|
| Average number of shares outstanding | 8,468,755 |
| | 8,483,918 |
| | 8,478,928 |
| | 8,484,404 |
| | 8,485,008 |
|
| Diluted average number of shares | 8,517,645 |
| | 8,534,908 |
| | 8,524,451 |
| | 8,526,161 |
| | 8,527,544 |
|
| Earnings per common share - basic | $ | 0.57 |
| | $ | 0.50 |
| | $ | 1.67 |
| | $ | 1.44 |
| | $ | 1.95 |
|
| Earnings per common share - diluted | 0.57 |
| | 0.50 |
| | 1.66 |
| | 1.43 |
| | 1.94 |
|
| Dividends paid per common share | 0.125 |
| | 0.095 |
| | 0.375 |
| | 0.265 |
| | 0.36 |
|
| Performance Ratios: | | | | | | | | | |
| Return on average assets | 1.12 | % | | 0.99 | % | | 1.08 | % | | 0.95 | % | | 0.96 | % |
| Return on average shareholders’ equity | 11.21 | % | | 9.97 | % | | 10.84 | % | | 9.98 | % | | 9.99 | % |
| Return on average tangible equity | 12.10 | % | | 10.91 | % | | 11.70 | % | | 10.96 | % | | 10.95 | % |
| Net interest margin (Fully Tax Equivalent) | 3.43 | % | | 3.57 | % | | 3.48 | % | | 3.51 | % | | 3.46 | % |
| Efficiency ratio* | 56.24 | % | | 58.12 | % | | 57.15 | % | | 70.07 | % | | 67.32 | % |
| Average Balances: | | | | | | | | | |
| Total bank loans | $ | 1,062,615 |
| | $ | 1,009,332 |
| | $ | 1,052,200 |
| | $ | 993,582 |
| | $ | 1,001,259 |
|
| Total loan pool participations | 31,413 |
| | 42,404 |
| | 33,875 |
| | 46,302 |
| | 44,507 |
|
| Interest-earning assets | 1,639,773 |
| | 1,619,260 |
| | 1,670,128 |
| | 1,615,419 |
| | 1,630,835 |
|
| Total assets | 1,728,168 |
| | 1,705,300 |
| | 1,758,357 |
| | 1,706,342 |
| | 1,721,792 |
|
| Interest-bearing deposits | 1,112,997 |
| | 1,143,310 |
| | 1,156,884 |
| | 1,155,214 |
| | 1,164,635 |
|
| Interest-bearing liabilities | 1,329,927 |
| | 1,353,135 |
| | 1,370,903 |
| | 1,361,278 |
| | 1,370,232 |
|
| Total equity | 172,136 |
| | 169,022 |
| | 174,975 |
| | 163,016 |
| | 165,429 |
|
| | | | | | | | | | |
| * Noninterest expense minus amortization of intangibles, divided by the sum of tax-equivalent net interest income plus noninterest income minus gain/loss or impairment on securities and premises and equipment. |
| September 30, 2012 values may differ from previously reported amounts due to prior period accounting correction. | | | | | | |
MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
Adjusted for Loss on Termination of Pension and Gain on Sale of Home Mortgage Center
|
| | | |
| | Nine Months Ended |
| | September 30, 2012 |
| | |
| Return on average assets (annualized) | 1.05 | % |
| Return on average equity (annualized) | 11.04 | % |
| Return on average tangible common equity (annualized) | 12.09 | % |
| Efficiency ratio | 58.70 | % |
| Earnings per common share-diluted | $ | 1.58 |
|
| September 30, 2012 values may differ from previously reported amounts due to prior period accounting correction. | |
