Page 1

EX - 99.1 2 financialresultsq32021.htm EX - 99.1 FOR IMMEDIATE RELEASE MidWestOne ™ FINANCIAL GROUP , INC . MIDWESTONE FINANCIAL GROUP , INC . REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2021 November 1 , 2021 Third Quarter Summary¹ • Net income for the third quarter was $ 16.3 million , or $ 1.03 per diluted common share . о Total revenue , net of interest expense , of $ 49.5 million . ° Credit loss benefit of $ 1.1 million . • • • • о Noninterest expense of $ 29.8 million . Excluding Paycheck Protection Program ( " PPP " ) loans , commercial loans were $ 2.64 billion² , as compared to $ 2.61 billion at the end of the second quarter of 2021 ( the " linked quarter " ) , an increase of 1.2 % . Efficiency ratio was 56.34 % ² . Nonperforming assets declined 19.0 % and the net charge - off ratio was a recovery of 10 basis points ( " bps " ) . Cost of average total deposits decreased 2 bps to 0.26 % and cost of funds decreased 3 bps to 0.37 % . On November 1 , 2021 , entered into a definitive agreement pursuant to which the Company will acquire Iowa First Bancshares Corp. and its banking subsidiaries in Muscatine and Fairfield , Iowa . Iowa City , Iowa - MidWestOne Financial Group , Inc. ( Nasdaq : MOFG ) ( “ we ” , “ our ” , or the " Company " ) today reported net income for the third quarter of 2021 of $ 16.3 million , or $ 1.03 per diluted common share , compared to net income of $ 17.3 million , or $ 1.08 per diluted common share , for the linked quarter . CEO COMMENTARY Charles Funk , Chief Executive Officer of the Company , commented , " We are excited to expand our footprint to Muscatine and to grow our market share in Fairfield , the seat of Jefferson County , with MidWest One's acquisition of Iowa First Bancshares Corp. ( " IOFB " ) . With this acquisition , we will have the number one deposit market share in both Muscatine and Jefferson counties . We believe MidWest One's brand of banking will fit very will with IOFB's brand , and we look forward to meeting our new customers and employees over the next few months . Notably , this transaction will provide good earnings momentum for 2022 and beyond . The third quarter of 2021 was a strong one for our Company with earnings of $ 1.03 per diluted common share , a 12.00 % return on average equity , and a 15.06 % return on average tangible equity2 . In a very tough operating environment , we were able to increase our commercial loans , excluding PPP loans , by 1.2 % . We are also extremely pleased with the progress being made in asset quality . The year over year decline of 15 bps in our nonperforming loans ratio to 1.03 % and the 30 bps decline in the net charge - off ratio to a net recovery ratio of 10 bps are especially impressive . Our trust and investment services group continued to build its business in the third quarter of 2021 and is on track to achieve record revenues in 2021. While we saw our mortgage loan closings trail off in the third quarter of 2021 , we nonetheless expect a solid fourth quarter from this business line . With respect to capital , we continue to find value in repurchasing our shares at a price just above our tangible book value per share . Finally , our bankers continue to assist our customers in working through PPP loan forgiveness . We anticipate another sizeable amount of PPP loan forgiveness in the fourth quarter . " 1 Third Quarter Summary compares to the linked quarter unless noted . 2 Non - GAAP measure . See the separate Non - GAAP Measures section for a reconciliation to the most directly comparable GAAP measure .