MidWestOne Financial : Q4 2024 Earnings Release Presentation

Published: 2025-01-23 16:41:26 ET MOFG

Fourth Quarter 2024

Earnings Conference Call

January 24, 2025

Financial Highlights

4Q24 Financial Highlights(2)

Change vs.

Dollars in millions, except per share amounts

4Q24

3Q24

4Q23

Balance

Sheet

Capital and

Liquidity

Total assets

6,236.3

(4.8) %

(3.0) %

Total loans held for investment, net

4,315.6

(0.3)

4.6

Total deposits

5,478.0

2.0

1.5

Equity to assets ratio

8.97 %

bps

Tangible common equity ratio(1)

7.57

CET1 risk-based capital ratio

10.73

114

Total risk-based capital ratio

14.07

111

154

Loans to deposits ratio

78.78

(185)

229

Profitability

Net interest margin, tax equivalent(1)

3.43 %

bps

121

bps

Cost of total deposits

1.99

(15)

Return on average assets

1.03

681

Efficiency ratio(1)

59.06

(1,126)

(1,110)

Diluted EPS

0.78

100

359

Adjusted EPS(1)

0.77

Credit Risk

Profile

Nonperforming loans ratio

0.51 %

bps

(13)

bps

Nonperforming assets ratio

0.40

(7)

Net charge-off ratio

0.06

(10)

(14)

Allowance for credit losses ratio

1.28

(1)

Non-GAAP financial measure. See the "Non-GAAP Financial measures" section.

(2)

Note: Financial metrics as of or for the quarter ended December 31, 2024.

Company Focus

MOFG's Five Strategic Pillars to Deliver Improved Results

Exceptional Customer and Employee Engagement

Strong Core Local Banking Model

Sophisticated Commercial Banking and Wealth Management

Specialty Business Lines

Improving Operational Effectiveness and Efficiency

(1)Source: https://topworkplaces.com

2024 Significant Accomplishments

Strategic Plan Updates

☑

Geographic

Talent

Strong Core Local

Realignment

Transformation

Banking Model &

Specialty

Sale of Florida

Robust talent

Business Lines

branches (7.5%

acquisition

deposit premium)

strategy installing

Momentum in

and acquisition of

senior leaders,

noninterest

Bank of Denver in

product

bearing deposits,

first half of 2024

management, IT

with growth for

resources and

the second

revenue

consecutive

producers across

quarter (as of Q4.24)

target markets

SBA gain on sale

year-over-year

revenue growth of

400%

☑

Commercial

Banking & Wealth

Commercial loan growth of 5% for the full year of 2024

Continued momentum in Wealth Management, with year-over-year revenue growth of 16%

☑

Operational

Efficiency

Completed a common equity raise during the third quarter of 2024, with proceeds used to support a balance sheet repositioning executed early in the fourth quarter of 2024.

Diversified and Granular Loan Portfolio

Loans Held for Investment

LTM Commercial Loan Growth in Targeted Regions(2)

Consumer, 2% Agricultural, 3%

+11%

+8%

Residential Real Estate, 15%

+$83 million

+$109 million

C&I, 26%

+11%

+$47 million(3)

$4.32

$1,132

$1,155

billion

$658

CRE-Other, 33%

Iowa Metro

Twin Cities

Denver

Construction &

Development, 7%

Farmland, 4%

Multifamily, 10%

5.86% Yield(4)

<$795K

Avg. Commercial

Loan Size(1)

Financial Information as of December 31, 2024.

(1)Average net nonaccrual active principal balance of the commercial loan portfolio.

(2)

Commercial loan net active principal balances reported in millions ($).

(3)

Excludes $184 million net active principal balance as of December 31, 2024 for the commercial loans acquired in

Denver Bankshares, Inc. acquisition.

(4)

Non-GAAP Measure. See the Non-GAAP measures section for a reconciliation of the most directly comparable

GAAP measure.

Credit Risk Profile

Nonperforming Assets

$33.2

$30.3$31.2

$25.5 $25.2

$ millions

12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024

Credit Quality Metrics

$ millions

4Q23

1Q24

2Q24

3Q24

4Q24

Nonperforming assets ratio

0.47 %

0.49 %

0.47 %

0.39 %

0.40 %

Classified loans ratio

4.07 %

3.71 %

3.48 %

3.11 %

2.57 %

Net charge-off ratio

0.20 %

0.02 %

0.05 %

0.16 %

0.06 %

Loans greater than 30 days past due and

$10.8

8.8

$ 9.4

$ 11.9

$ 9.4

accruing

Allowance for credit losses ratio

1.25 %

1.27 %

1.26 %

1.25 %

1.28 %

Net Charge-Offs

millions$

$2.1

$0.5

$1.7

$0.7

$0.2

4Q23

1Q24

2Q24

3Q24

4Q24

Commercial Real Estate

Non-Owner Occupied CRE Office

December 31, 2024

3.3%

96.7%

NOO CRE Office

All Other Loans

Portfolio Highlights

December 31, 2024

Average NOO CRE Office outstanding principal ($ millions)

1.4

Regulatory

CRE Concentration (% of Total Capital):

4Q24

3Q24

Threshold

Construction, land development and other land

46%

56%

100%

Total CRE loans(1)

224%

232%

300%

Commercial Real Estate Portfolio(2)

December 31, 2024

$ millions

4Q24

3Q24

Construction & Development

324.9

386.9

Farmland

182.5

182.2

Multifamily

423.2

409.5

CRE Other:

NOO CRE Office

144.6

154.7

OO CRE Office

74.2

84.6

Industrial and Warehouse

424.5

403.5

Retail

289.1

282.4

Hotel

131.2

111.7

Other

350.5

316.6

Total Commercial Real Estate

2,344.7

2,332.1

(1)Total CRE loans includes construction, land development and other land, in

addition to multifamily and NOO CRE.

(2) Represents the amortized cost of the CRE portfolio.

Focusing on Growth in Wealth Management

Wealth Management Assets Under Administration

Private Banking

Private Wealth

Investment Services

$4.00

$3.01

$3.15

$3.00

$2.74

$2.73

$2.44

$2.00

$1.00

2020

2021

2022

2023

2024

Investment Services and Private Wealth Revenue

$15.0

$11.7

$11.2

$12.2

$14.2

$10.0

$9.6

$9.5

$7.5

$7.3

$8.4

$6.4

$5.0

$3.2

$4.2

$3.9

$3.8

$4.7

2020

2021

2022

2023

2024

Investment Services

Private Wealth

Financial Performance

Disclaimer

MidWestOne Financial Group Inc. published this content on January 23, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 23, 2025 at 21:40:40.955.