ﾐｯﾄﾞｳｴｽﾄﾜﾝﾌｧｲﾅﾝｼｬﾙGの適時開示・決算・その他

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 23, 2024

MidWestOne Financial Group, Inc.

(Exact name of registrant as specified in its charter)

Commission file number 001-35968


Iowa						42-1206172
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification Number)

102 South Clinton Street

Iowa City, Iowa 52240

(Address of principal executive offices, including zip code)

(319) 356-5800

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $1.00 par value

MOFG

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On October 24, 2024, MidWestOne Financial Group, Inc. (the “Company”) issued a press release announcing its earnings for the three months and nine months ended September 30, 2024. The press release is furnished herewith as Exhibit 99.1. In addition, the Company is providing a financial supplement furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information in this item and the attached press release and financial supplement shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 8.01. Other Events.

The Board of Directors of the Company declared a cash dividend of $0.2425 per common share on October 23, 2024. The dividend is payable December 16, 2024, to shareholders of record at the close of business on December 2, 2024.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.



99.1						MidWestOne Financial Group, Inc. press release dated October 24, 2024
99.2						MidWestOne Financial Group, Inc. financial supplement dated October 24, 2024
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MIDWESTONE FINANCIAL GROUP, INC.

Dated:

October 24, 2024

By:

/s/ BARRY S. RAY

Barry S. Ray

Chief Financial Officer

EX-99.1 2 financialresultsq32024.htm EX-99.1 Document


FOR IMMEDIATE RELEASE						October 24, 2024

MIDWESTONE FINANCIAL GROUP, INC.

REPORTS FINANCIAL RESULTS FOR THE

THIRD QUARTER OF 2024

Iowa City, Iowa - MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported results for the third quarter of 2024.

Third Quarter 2024 Summary1

•Completed a common equity capital raise, resulting in net proceeds to the Company of $118.6 million to facilitate a balance sheet repositioning. $140.4 million of securities impairment related to the repositioning was recognized in pre-tax earnings.

•Subsequent to quarter-end:

◦Sold $1.0 billion of debt securities with a weighted average yield of 1.58%, and a weighted average life of 5.6 years.

◦Purchased $589.8 million of debt securities, with a weighted average yield of 4.65%, and paid in full $418.7 million of Bank Term Funding Program borrowings with a weighted average cost of 4.77%.

◦The estimated earn back period for the securities losses is 4.5 years.

•Recognized a net loss for the quarter of $95.7 million, or $(6.05) per diluted common share, reflecting the effects of the capital raise and balance sheet repositioning. Adjusted earnings were $9.1 million2, or $0.582 per diluted common share, which included a $1.2 million fraud loss related to a single incident.

•Net interest margin (tax equivalent) expanded 10 basis points ("bps") to 2.51%.2

•Annualized loan growth of 3.9%.

•Noninterest bearing deposits increased 4.0% from the linked quarter.

•Nonperforming assets ratio improved 8 bps to 0.39%; classified loans declined $14.5 million to $134.8 million; net charge-off ratio was 0.16%.

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "Our successful common equity capital raise and balance sheet repositioning are significant, transformational steps towards our goal of creating a high performing company. We were pleased with the market receptivity of the oversubscribed common equity offering and the balance sheet repositioning financial results exceeded our communicated expectations. We are appreciative of our existing and new shareholders who supported this transformation and our team who executed the strategy so well.”

Mr. Reeves continued, "We also kept our eye on the ball during the quarter, delivering positive results in a number of strategic initiatives. Our deposit franchise continues to show its strength as deposit costs rose minimally and our treasury management investments led to 4% linked quarter non-interest bearing deposit growth. Our commercial banking teams drove 4% annualized loan growth, improved asset quality, and good progress in our SBA lending and gain on sale initiatives. In addition, we continued to invest in our franchise, with both talent and technology, while maintaining expense discipline."

1 Third Quarter Summary compares to the second quarter of 2024 (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.


	As of or for the quarter ended									Nine Months Ended
(Dollars in thousands, except per share amounts and as noted)	September 30,			June 30,			September 30,			September 30,			September 30,
	2024			2024			2023			2024			2023
Financial Results


Revenue	$	(92,867)		$	57,901		$	44,436		$	9,515		$	126,174
Credit loss expense	1,535			1,267			1,551			7,491			4,081
Noninterest expense	35,798			35,761			31,544			107,124			99,782


Net (loss) income	(95,707)			15,819			9,138			(76,619)			18,129
Adjusted earnings(1)	9,141			8,132			8,875			21,762			28,046
Per Common Share
Diluted (loss) earnings per share	$	(6.05)		$	1.00		$	0.58		$	(4.86)		$	1.15
Adjusted earnings per share(1)	0.58			0.52			0.56			1.38			1.79
Book value	27.06			34.44			32.21			27.06			32.21
Tangible book value(1)	22.43			28.27			26.60			22.43			26.60
Balance Sheet & Credit Quality
Loans In millions	$	4,328.8		$	4,287.2		$	4,066.0		$	4,328.8		$	4,066.0
Investment securities In millions	1,623.1			1,824.1			1,958.5			1,623.1			1,958.5
Deposits In millions	5,368.7			5,412.4			5,363.3			5,368.7			5,363.3
Net loan charge-offs In millions	1.7			0.5			0.5			2.4			1.7
Allowance for credit losses ratio	1.25		%	1.26		%	1.27		%	1.25		%	1.27		%
Selected Ratios
Return on average assets	(5.78)		%	0.95		%	0.56		%	(1.54)		%	0.37		%
Net interest margin, tax equivalent(1)	2.51		%	2.41		%	2.35		%	2.42		%	2.54		%
Return on average equity	(69.05)		%	11.91		%	7.14		%	(19.03)		%	4.81		%
Return on average tangible equity(1)	(82.78)		%	15.74		%	9.68		%	(22.17)		%	7.03		%
Efficiency ratio(1)	70.32		%	56.29		%	66.06		%	65.20		%	66.40		%

(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

REVENUE REVIEW


Revenue							Change		Change
							3Q24 vs		3Q24 vs
(Dollars in thousands)	3Q24		2Q24		3Q23		2Q24		3Q23
Net interest income	$	37,521	$	36,347	$	34,575	3	%	9	%
Noninterest (loss) income	(130,388)		21,554		9,861		n/m		n/m
Total revenue, net of interest expense	$	(92,867)	$	57,901	$	44,436	n/m		n/m
(n/m) - Not meaningful

Total revenue for the third quarter of 2024 decreased $150.8 million from the second quarter of 2024 and decreased $137.3 million compared to the third quarter of 2023, due to lower noninterest income, partially offset by higher net interest income. Excluding the pre-tax securities loss of $140.4 million stemming from the balance sheet repositioning, total revenue for the third quarter was $47.5 million, a decline of $10.4 million from the second quarter of 2024 and an increase of $3.1 million from the third quarter of 2023.

Net interest income of $37.5 million for the third quarter of 2024 increased $1.2 million from the second quarter of 2024, due to higher earning asset yields and lower funding volumes, partially offset by lower earning asset volumes and higher funding costs. When compared to the third quarter of 2023, net interest income increased $2.9 million, due to higher earning asset volumes and yields, partially offset by higher funding costs and volumes. We expect net interest income to be higher going forward as a result of the balance sheet repositioning.

The Company's tax equivalent net interest margin was 2.51%3 in the third quarter of 2024, compared to 2.41%3 in the second quarter of 2024, as higher earning asset yields more than offset increased funding costs. Total earning assets yield during the third quarter of 2024 increased 10 bps from the second quarter of 2024 due primarily to an increase in loan yields of 17 bps. Funding costs during the third quarter of 2024 increased 2 bps to 2.87%, due primarily to the 4 bps increase in interest bearing deposit costs to 2.58%, which was partially offset by a reduction in short-term borrowing costs and long-term debt of 10 bps and 4 bps, to 4.76% and 6.91%, respectively from the second quarter of 2024.

3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

The Company's tax equivalent net interest margin was 2.51%3 in the third quarter of 2024, compared to 2.35%3 in the third quarter of 2023, driven by higher earning asset volumes and yields, partially offset by higher funding costs and volumes. Total earning assets yield increased 58 bps from the third quarter of 2023, primarily from a 67 bps increase in loan yields. Funding costs increased 54 bps to 2.87%, due to interest bearing deposit costs of 2.58%, short-term borrowing costs of 4.76%, and long-term debt costs of 6.91%, which increased 53 bps, 47 bps and 13 bps, respectively from the third quarter of 2023.


Noninterest (Loss) Income							Change		Change
							3Q24 vs		3Q24 vs
(In thousands)	3Q24		2Q24		3Q23		2Q24		3Q23
Investment services and trust activities	$	3,410	$	3,504	$	3,004	(3)	%	14	%
Service charges and fees	2,170		2,156		2,146		1	%	1	%
Card revenue	1,935		1,907		1,817		1	%	6	%
Loan revenue	760		1,525		1,462		(50)	%	(48)	%
Bank-owned life insurance	879		668		626		32	%	40	%
Investment securities (losses) gains, net	(140,182)		33		79		n/m		n/m
Other	640		11,761		727		(95)	%	(12)	%
Total noninterest (loss) income	$	(130,388)	$	21,554	$	9,861	n/m		n/m

MSR adjustment (included above in Loan revenue)	$	(1,026)	$	129	$	283	n/m		n/m

Gain on branch sale (included above in Other)	—		11,056		—		n/m		n/m
(n/m) - Not meaningful

Noninterest income for the third quarter of 2024 decreased $151.9 million from the linked quarter, due primarily to the securities impairment of $140.4 million related to the Company's balance sheet repositioning and a decrease of $11.1 million in other revenue. The decrease in other revenue reflected the $11.1 million gain from the sale of our Florida banking operations in the second quarter of 2024 that did not recur in the third quarter of 2024. In addition, loan revenue decreased $765 thousand due to a $1.2 million unfavorable change in the value of our mortgage servicing rights, partially offset by an increase of $0.4 million in SBA gain on sale revenue.

Noninterest income for the third quarter of 2024 decreased $140.2 million from the third quarter of 2023, due primarily to the balance sheet repositioning-related securities impairment previously noted. Also contributing to the decline in noninterest income was a decrease in loan revenue stemming from the unfavorable year-over-year change in the fair value of our mortgage servicing rights, which was partially offset by an increase of $0.5 million in SBA gain on sale. Partially offsetting these decreases in noninterest income was an increase of $0.4 million in investment services and trust activities revenue, driven by growth in assets under administration and transaction fees, and an increase of $0.3 million in bank-owned life insurance due primarily to $0.2 million of death benefits recognized in the third quarter of 2024.

EXPENSE REVIEW


Noninterest Expense							Change		Change
							3Q24 vs		3Q24 vs
(In thousands)	3Q24		2Q24		3Q23		2Q24		3Q23
Compensation and employee benefits	$	19,943	$	20,985	$	18,558	(5)	%	7	%
Occupancy expense of premises, net	2,443		2,435		2,405		—	%	2	%
Equipment	2,486		2,530		2,123		(2)	%	17	%
Legal and professional	2,261		2,253		1,678		—	%	35	%
Data processing	1,580		1,645		1,504		(4)	%	5	%
Marketing	619		636		782		(3)	%	(21)	%
Amortization of intangibles	1,470		1,593		1,460		(8)	%	1	%
FDIC insurance	923		1,051		783		(12)	%	18	%
Communications	159		191		206		(17)	%	(23)	%
Foreclosed assets, net	330		138		2		139	%	n/m
Other	3,584		2,304		2,043		56	%	75	%


Total noninterest expense	$	35,798	$	35,761	$	31,544	—	%	13	%
(n/m) - Not meaningful


Merger-related Expenses

(In thousands)	3Q24		2Q24		3Q23
Compensation and employee benefits	$	—	$	73	$	—
Occupancy expense of premises, net	—		—		—
Equipment	—		28		—
Legal and professional	127		462		11
Data processing	—		251		—
Marketing	—		—		—
Communications	—		8		—
Other	6		32		—
Total merger-related expenses	$	133	$	854	$	11

Noninterest expense for the third quarter of 2024 compared to the linked quarter was stable at $35.8 million, with increases of $1.3 million and $0.2 million in other expense and foreclosed assets, net, respectively. The increase in other expense was primarily driven by a $1.2 million fraud loss related to a single instance recorded in the third quarter of 2024, while the increase in foreclosed assets, net, expense was attributable to a $0.3 million write-down and higher operating expenses of one other real estate owned relationship, partially offset by a $0.4 million gain on sale of a separate other real estate owned relationship. Partially offsetting these increases in noninterest expense were declines in all other noninterest expense categories, with the largest decrease in compensation and employee benefits, which stemmed from the sale of our Florida banking operations in the second quarter of 2024. Further decreases in noninterest expense categories were also driven by a $0.7 million decline in merger-related expenses.

Noninterest expense for the third quarter of 2024 increased $4.3 million from the third quarter of 2023 primarily due to increases in all noninterest expense categories, except marketing and communications. The largest contributors to the increase in noninterest expense were increases of $1.5 million, $1.4 million, and $0.6 million in other, compensation and employee benefits, and legal and professional expense, respectively. The increase in other expense was primarily driven by a $1.2 million fraud loss recorded in the third quarter of 2024. The increase in compensation and employee benefits expense was driven by annual compensation adjustments and increased incentive and commission expense. The increase in legal and professional expense stemmed from increased costs for legal fees, consulting, personnel procurement, merger-related expenses, and accounting and tax fees. Partially offsetting these increases was a decline of $0.2 million in marketing expense.

The Company's effective tax rate was 26.5% in the third quarter of 2024, compared to 24.2% in the linked quarter. The increase in the effective tax rate reflected the impact of the investment security impairments recorded in the third quarter of 2024 related to the balance sheet repositioning. The effective income tax rate for the fourth quarter of 2024 and full year 2025 is expected to be 22-23%.

BALANCE SHEET REVIEW

Total assets were $6.55 billion at September 30, 2024, compared to $6.58 billion at June 30, 2024 and $6.47 billion at September 30, 2023. The decrease from June 30, 2024 was primarily driven by lower securities balances stemming from impairment recognized in the third quarter of 2024 related to the balance sheet repositioning, fair value adjustments recognized in connection with the re-classification of securities from held-to-maturity to available-for-sale, and scheduled calls, maturities, and paydowns, partially offset by higher cash and loan balances. Compared to September 30, 2023, the increase was primarily driven by assets acquired in the Denver Bankshares, Inc. ("DNVB") transaction, as well as higher cash and loan balances, partially offset by the sale of assets associated with our Florida banking operations, and lower securities balances.


Loans Held for Investment	September 30, 2024				June 30, 2024				September 30, 2023
	Balance		% of Total		Balance		% of Total		Balance		% of Total
(Dollars in thousands)
Commercial and industrial	$	1,149,758	26.6	%	$	1,120,983	26.1	%	$	1,078,773	26.5	%
Agricultural	112,696		2.6		107,983		2.5		111,950		2.8
Commercial real estate
Construction and development	386,920		8.9		351,646		8.2		331,868		8.2
Farmland	182,164		4.2		183,641		4.3		182,621		4.5
Multifamily	409,544		9.5		430,054		10.0		337,509		8.3
Other	1,353,513		31.2		1,348,515		31.5		1,324,019		32.5
Total commercial real estate	2,332,141		53.8		2,313,856		54.0		2,176,017		53.5
Residential real estate
One-to-four family first liens	485,210		11.2		492,541		11.5		456,771		11.2
One-to-four family junior liens	176,827		4.1		176,105		4.1		173,275		4.3
Total residential real estate	662,037		15.3		668,646		15.6		630,046		15.5
Consumer	72,124		1.7		75,764		1.8		69,183		1.7
Loans held for investment, net of unearned income	$	4,328,756	100.0	%	$	4,287,232	100.0	%	$	4,065,969	100.0	%

Total commitments to extend credit	$	1,149,815			$	1,200,605			$	1,251,345

Loans held for investment, net of unearned income, increased $41.5 million, or 1.0%, to $4.33 billion from $4.29 billion at June 30, 2024. The increase from the second quarter of 2024 was driven primarily by organic loan growth and higher line of credit usage.

Loans held for investment, net of unearned income, increased $262.8 million, or 6.5%, to $4.33 billion from $4.07 billion at September 30, 2023. The increase from the third quarter of 2023 was driven primarily by the loans acquired in the DNVB transaction, organic loan growth, and higher line of credit usage. Partially offsetting these identified increases was a decline stemming from the sale of loans associated with our Florida banking operations.


Investment Securities	September 30, 2024				June 30, 2024				September 30, 2023
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Available for sale	$	1,623,104	100.0	%	$	771,034	42.3	%	$	872,770	44.6	%
Held to maturity	—		—	%	1,053,080		57.7	%	1,085,751		55.4	%
Total investment securities	$	1,623,104			$	1,824,114			$	1,958,521

Investment securities at September 30, 2024 were $1.62 billion, decreasing $201.0 million from June 30, 2024 and $335.4 million from September 30, 2023. The decrease from the second quarter of 2024 stemmed from impairment recognized in the third quarter of 2024 related to the balance sheet repositioning, fair value adjustments recognized in the third quarter of 2024 in connection with the re-classification of held-to-maturity securities to available-for-sale, and principal cash flows received from scheduled payments, calls, and maturities. The decrease from the third quarter of 2023 was primarily due to the balance sheet repositioning executed in the fourth quarter of 2023, impairment recognized in the third quarter of 2024 related to the balance sheet repositioning, fair value adjustments recognized in the third quarter of 2024 in connection with the re-classification of held-to-maturity securities to available-for-sale, and principal cash flows received from scheduled payments, calls, and maturities.


Deposits	September 30, 2024				June 30, 2024				September 30, 2023
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Noninterest bearing deposits	$	917,715	17.1	%	$	882,472	16.3	%	$	924,213	17.2	%
Interest checking deposits	1,230,605		23.0		1,284,243		23.7		1,334,481		24.9
Money market deposits	1,038,575		19.3		1,043,376		19.3		1,127,287		21.0
Savings deposits	768,298		14.3		745,639		13.8		619,805		11.6
Time deposits of $250 and under	844,298		15.7		803,301		14.8		703,646		13.1
Total core deposits	4,799,491		89.4		4,759,031		87.9		4,709,432		87.8
Brokered time deposits	200,000		3.7		196,000		3.6		220,063		4.1
Time deposits over $250	369,236		6.9		457,388		8.5		433,829		8.1

Total deposits	$	5,368,727	100.0	%	$	5,412,419	100.0	%	$	5,363,324	100.0	%

Total deposits declined $43.7 million, or 0.8%, to $5.37 billion, from $5.41 billion at June 30, 2024. Noninterest bearing deposits increased $35.2 million, while core deposits increased $40.5 million from June 30, 2024. Time deposits over $250 decreased $88.2 million from June 30, 2024, primarily as a result of a decline in public funds. Total deposits increased $5.4 million, or 0.1%, from $5.36 billion at September 30, 2023, primarily due to $224.2 million of deposits assumed in the DNVB acquisition, partially offset by $133.3 million of deposits divested as part of the sale of our Florida banking operations and a decline of $20.1 million in brokered deposits.


Borrowed Funds	September 30, 2024				June 30, 2024				September 30, 2023
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Short-term borrowings	$	410,630	78.1	%	$	414,684	78.3	%	$	373,956	75.0	%
Long-term debt	115,051		21.9	%	114,839		21.7	%	124,526		25.0	%
Total borrowed funds	$	525,681			$	529,523			$	498,482

Borrowed funds were $525.7 million at September 30, 2024, a decrease of $3.8 million from June 30, 2024 and an increase of $27.2 million from September 30, 2023. The decrease compared to the linked quarter was due to a decrease in overnight borrowings from the Federal Home Loan Bank ("FHLB") and scheduled payments on long-term debt, partially offset by an increase in long-term FHLB borrowings. The increase compared to September 30, 2023 was due to higher Bank Term Funding Program borrowings, partially offset by lower overnight borrowings from the Federal Home Loan Bank, securities sold under agreements to repurchase, and scheduled payments on long-term debt.


Capital	September 30,			June 30,			September 30,
(Dollars in thousands)	2024 (1)			2024			2023
Total shareholders' equity	$	562,238		$	543,286		$	505,411
Accumulated other comprehensive loss	(58,842)			(58,135)			(84,606)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio	8.78		%	8.29		%	8.58		%
Common equity tier 1 capital to risk-weighted assets ratio	9.91		%	9.56		%	9.52		%
Tier 1 capital to risk-weighted assets ratio	10.70		%	10.35		%	10.31		%
Total capital to risk-weighted assets ratio	12.96		%	12.62		%	12.45		%
MidWestOne Bank
Tier 1 leverage to average assets ratio	9.69		%	9.24		%	9.51		%
Common equity tier 1 capital to risk-weighted assets ratio	11.83		%	11.55		%	11.43		%
Tier 1 capital to risk-weighted assets ratio	11.83		%	11.55		%	11.43		%
Total capital to risk-weighted assets ratio	12.88		%	12.61		%	12.36		%
(1) Regulatory capital ratios for September 30, 2024 are preliminary

Total shareholders' equity at September 30, 2024 increased $19.0 million from June 30, 2024, primarily driven by an increase in the balance of common stock and additional paid-in-capital stemming from the common stock capital raise executed in the third quarter of 2024, partially offset by a decline in retained earnings. Total shareholders' equity at September 30, 2024 increased $56.8 million from September 30, 2023, primarily due to increases in common stock and additional paid-in-capital stemming from the common stock issuance previously described and decreases in accumulated other comprehensive loss and treasury stock, partially offset by a decline in retained earnings.

On October 23, 2024, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable December 16, 2024, to shareholders of record at the close of business on December 2, 2024.

No common shares were repurchased by the Company during the period June 30, 2024 through September 30, 2024 or for the subsequent period through October 24, 2024. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. As of September 30, 2024, $15.0 million remained available under this program.

CREDIT QUALITY REVIEW


Credit Quality	As of or For the Three Months Ended
	September 30,			June 30,			September 30,
(Dollars in thousands)	2024			2024			2023
Credit loss expense related to loans	$	1,835		$	467		$	1,651
Net charge-offs	1,735			524			451
Allowance for credit losses	54,000			53,900			51,600
Pass	$	4,016,683		$	3,991,692		$	3,785,908
Special Mention / Watch	177,241			146,253			163,222
Classified	134,832			149,287			116,839


Loans greater than 30 days past due and accruing	$	11,940		$	9,358		$	6,449
Nonperforming loans	$	21,954		$	25,128		$	28,987

Nonperforming assets	25,537			31,181			28,987

Net charge-off ratio(1)	0.16		%	0.05		%	0.04		%
Classified loans ratio(2)	3.11		%	3.48		%	2.87		%
Nonperforming loans ratio(3)	0.51		%	0.59		%	0.71		%
Nonperforming assets ratio(4)	0.39		%	0.47		%	0.45		%
Allowance for credit losses ratio(5)	1.25		%	1.26		%	1.27		%

Allowance for credit losses to nonaccrual loans ratio(6)	260.84		%	218.26		%	178.63		%


(1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.

(3) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(5) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.

(6)Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.

Compared to the linked quarter, the nonperforming loans and nonperforming assets ratios each declined 8 bps, to 0.51% and 0.39%, respectively, due to the proactive resolution of several large troubled assets. Special mention/watch loan balances increased $31.0 million, or 21%, from the linked quarter, while classified loan balances decreased $14.5 million, or 10%, from the linked quarter. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios decreased 20 bps and 6 bps, respectively. The net charge-off ratio increased 11 bps from the linked quarter and increased 12 bps from the same period in the prior year.

As of September 30, 2024, the allowance for credit losses was $54.0 million and the allowance for credit losses ratio was 1.25%, compared with $53.9 million and 1.26%, respectively, at June 30, 2024. Credit loss expense of $1.5 million in the third quarter of 2024 reflected an additional reserve taken to support organic loan growth, offset by a reduction of $0.3 million in the reserve for unfunded loan commitments.


Nonperforming Loans Roll Forward	Nonaccrual		90+ Days Past Due & Still Accruing		Total
(Dollars in thousands)
Balance at June 30, 2024	$	24,695	$	433	$	25,128
Loans placed on nonaccrual or 90+ days past due & still accruing	6,426		1,326		7,752

Proceeds related to repayment or sale	(7,761)		(1)		(7,762)
Loans returned to accrual status or no longer past due	(500)		(339)		(839)
Charge-offs	(1,609)		(167)		(1,776)
Transfers to foreclosed assets	(549)		—		(549)


Balance at September 30, 2024	$	20,702	$	1,252	$	21,954

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, October 25, 2024. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=e1a9f566&confId=71942. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 019041 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until January 23, 2025 by calling 1-866-813-9403 and using the replay access code of 718549. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades 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 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,” “goals,” “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.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including the recent sale of our Florida banking operations and the acquisition of DNVB), 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; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (4) 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; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and any changes in response to the failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) 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, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the ongoing conflict in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

MIDWESTONE FINANCIAL GROUP, INC.

FIVE QUARTER CONSOLIDATED BALANCE SHEETS


	September 30,		June 30,		March 31,		December 31,		September 30,
(In thousands)	2024		2024		2024		2023		2023
ASSETS
Cash and due from banks	$	72,173	$	66,228	$	68,430	$	76,237	$	71,015
Interest earning deposits in banks	129,695		35,340		29,328		5,479		3,773
Federal funds sold	—		—		4		11		—
Total cash and cash equivalents	201,868		101,568		97,762		81,727		74,788
Debt securities available for sale at fair value	1,623,104		771,034		797,230		795,134		872,770
Held to maturity securities at amortized cost	—		1,053,080		1,064,939		1,075,190		1,085,751
Total securities	1,623,104		1,824,114		1,862,169		1,870,324		1,958,521
Loans held for sale	3,283		2,850		2,329		1,045		2,528
Gross loans held for investment	4,344,559		4,304,619		4,433,258		4,138,352		4,078,060
Unearned income, net	(15,803)		(17,387)		(18,612)		(11,405)		(12,091)
Loans held for investment, net of unearned income	4,328,756		4,287,232		4,414,646		4,126,947		4,065,969
Allowance for credit losses	(54,000)		(53,900)		(55,900)		(51,500)		(51,600)
Total loans held for investment, net	4,274,756		4,233,332		4,358,746		4,075,447		4,014,369
Premises and equipment, net	90,750		91,793		95,986		85,742		85,589
Goodwill	69,788		69,388		71,118		62,477		62,477
Other intangible assets, net	26,469		27,939		29,531		24,069		25,510
Foreclosed assets, net	3,583		6,053		3,897		3,929		—
Other assets	258,881		224,621		226,477		222,780		244,036
Total assets	$	6,552,482	$	6,581,658	$	6,748,015	$	6,427,540	$	6,467,818
LIABILITIES
Noninterest bearing deposits	$	917,715	$	882,472	$	920,764	$	897,053	$	924,213
Interest bearing deposits	4,451,012		4,529,947		4,664,472		4,498,620		4,439,111
Total deposits	5,368,727		5,412,419		5,585,236		5,395,673		5,363,324





Short-term borrowings	410,630		414,684		422,988		300,264		373,956





Long-term debt	115,051		114,839		122,066		123,296		124,526
Other liabilities	95,836		96,430		89,685		83,929		100,601
Total liabilities	5,990,244		6,038,372		6,219,975		5,903,162		5,962,407
SHAREHOLDERS' EQUITY

Common stock	21,580		16,581		16,581		16,581		16,581
Additional paid-in capital	414,965		300,831		300,845		302,157		301,889
Retained earnings	206,490		306,030		294,066		294,784		295,862
Treasury stock	(21,955)		(22,021)		(22,648)		(24,245)		(24,315)
Accumulated other comprehensive loss	(58,842)		(58,135)		(60,804)		(64,899)		(84,606)
Total shareholders' equity	562,238		543,286		528,040		524,378		505,411
Total liabilities and shareholders' equity	$	6,552,482	$	6,581,658	$	6,748,015	$	6,427,540	$	6,467,818

MIDWESTONE FINANCIAL GROUP, INC.

FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended										Nine Months Ended
	September 30,		June 30,		March 31,		December 31,		September 30,		September 30,		September 30,
(In thousands, except per share data)	2024		2024		2024		2023		2023		2024		2023
Interest income
Loans, including fees	$	62,521	$	61,643	$	57,947	$	54,093	$	51,870	$	182,111	$	148,086
Taxable investment securities	8,779		9,228		9,460		9,274		9,526		27,467		29,704
Tax-exempt investment securities	1,611		1,663		1,710		1,789		1,802		4,984		5,751
Other	785		242		418		230		374		1,445		686
Total interest income	73,696		72,776		69,535		65,386		63,572		216,007		184,227
Interest expense
Deposits	29,117		28,942		27,726		27,200		23,128		85,785		58,564
Short-term borrowings	5,043		5,409		4,975		3,496		3,719		15,427		7,623
Long-term debt	2,015		2,078		2,103		2,131		2,150		6,196		6,427
Total interest expense	36,175		36,429		34,804		32,827		28,997		107,408		72,614
Net interest income	37,521		36,347		34,731		32,559		34,575		108,599		111,613
Credit loss expense	1,535		1,267		4,689		1,768		1,551		7,491		4,081
Net interest income after credit loss expense	35,986		35,080		30,042		30,791		33,024		101,108		107,532
Noninterest income
Investment services and trust activities	3,410		3,504		3,503		3,193		3,004		10,417		9,056
Service charges and fees	2,170		2,156		2,144		2,148		2,146		6,470		6,201
Card revenue	1,935		1,907		1,943		1,802		1,817		5,785		5,412
Loan revenue	760		1,525		856		909		1,462		3,141		3,791
Bank-owned life insurance	879		668		660		656		626		2,207		1,844

Investment securities (losses) gains, net	(140,182)		33		36		(5,696)		79		(140,113)		(13,093)
Other	640		11,761		608		850		727		13,009		1,350
Total noninterest (loss) income	(130,388)		21,554		9,750		3,862		9,861		(99,084)		14,561
Noninterest expense
Compensation and employee benefits	19,943		20,985		20,930		17,859		18,558		61,858		58,551
Occupancy expense of premises, net	2,443		2,435		2,813		2,309		2,405		7,691		7,725
Equipment	2,486		2,530		2,600		2,466		2,123		7,616		6,729
Legal and professional	2,261		2,253		2,059		2,269		1,678		6,573		5,096
Data processing	1,580		1,645		1,360		1,411		1,504		4,585		4,388
Marketing	619		636		598		700		782		1,853		2,910
Amortization of intangibles	1,470		1,593		1,637		1,441		1,460		4,700		4,806
FDIC insurance	923		1,051		942		900		783		2,916		2,394
Communications	159		191		196		183		206		546		727
Foreclosed assets, net	330		138		358		45		2		826		(32)

Other	3,584		2,304		2,072		2,548		2,043		7,960		6,488
Total noninterest expense	35,798		35,761		35,565		32,131		31,544		107,124		99,782
(Loss) income before income tax expense	(130,200)		20,873		4,227		2,522		11,341		(105,100)		22,311
Income tax (benefit) expense	(34,493)		5,054		958		(208)		2,203		(28,481)		4,182
Net (loss) income	$	(95,707)	$	15,819	$	3,269	$	2,730	$	9,138	$	(76,619)	$	18,129

Earnings (loss) per common share
Basic	$	(6.05)	$	1.00	$	0.21	$	0.17	$	0.58	$	(4.86)	$	1.16
Diluted	$	(6.05)	$	1.00	$	0.21	$	0.17	$	0.58	$	(4.86)	$	1.15
Weighted average basic common shares outstanding	15,829		15,763		15,723		15,693		15,689		15,772		15,673
Weighted average diluted common shares outstanding	15,829		15,781		15,774		15,756		15,711		15,772		15,696
Dividends paid per common share	$	0.2425	$	0.2425	$	0.2425	$	0.2425	$	0.2425	$	0.7275	$	0.7275

MIDWESTONE FINANCIAL GROUP, INC.

FINANCIAL STATISTICS


	As of or for the Three Months Ended									As of or for the Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars in thousands, except per share amounts)	2024			2024			2023			2024			2023
Earnings:
Net interest income	$	37,521		$	36,347		$	34,575		$	108,599		$	111,613
Noninterest (loss) income	(130,388)			21,554			9,861			(99,084)			14,561
Total revenue, net of interest expense	(92,867)			57,901			44,436			9,515			126,174
Credit loss expense	1,535			1,267			1,551			7,491			4,081
Noninterest expense	35,798			35,761			31,544			107,124			99,782
(Loss) income before income tax expense	(130,200)			20,873			11,341			(105,100)			22,311
Income tax (benefit) expense	(34,493)			5,054			2,203			(28,481)			4,182
Net (loss) income	$	(95,707)		$	15,819		$	9,138		$	(76,619)		$	18,129
Adjusted earnings(1)	$	9,141		$	8,132		$	8,875		$	21,762		$	28,046
Per Share Data:
Diluted (loss) earnings	$	(6.05)		$	1.00		$	0.58		$	(4.86)		$	1.15
Adjusted earnings(1)	0.58			0.52			0.56			1.38			1.79
Book value	27.06			34.44			32.21			27.06			32.21
Tangible book value(1)	22.43			28.27			26.60			22.43			26.60
Ending Balance Sheet:
Total assets	$	6,552,482		$	6,581,658		$	6,467,818		$	6,552,482		$	6,467,818
Loans held for investment, net of unearned income	4,328,756			4,287,232			4,065,969			4,328,756			4,065,969


Total securities	1,623,104			1,824,114			1,958,521			1,623,104			1,958,521
Total deposits	5,368,727			5,412,419			5,363,324			5,368,727			5,363,324
Short-term borrowings	410,630			414,684			373,956			410,630			373,956
Long-term debt	115,051			114,839			124,526			115,051			124,526
Total shareholders' equity	562,238			543,286			505,411			562,238			505,411
Average Balance Sheet:
Average total assets	$	6,583,404		$	6,713,573		$	6,452,815		$	6,643,897		$	6,480,636
Average total loans	4,311,693			4,419,697			4,019,852			4,343,087			3,964,119
Average total deposits	5,402,634			5,514,924			5,379,871			5,465,993			5,459,749
Financial Ratios:
Return on average assets	(5.78)		%	0.95		%	0.56		%	(1.54)		%	0.37		%
Return on average equity	(69.05)		%	11.91		%	7.14		%	(19.03)		%	4.81		%
Return on average tangible equity(1)	(82.78)		%	15.74		%	9.68		%	(22.17)		%	7.03		%
Efficiency ratio(1)	70.32		%	56.29		%	66.06		%	65.20		%	66.40		%
Net interest margin, tax equivalent(1)	2.51		%	2.41		%	2.35		%	2.42		%	2.54		%
Loans to deposits ratio	80.63		%	79.21		%	75.81		%	80.63		%	75.81		%


Common equity ratio	8.58		%	8.25		%	7.81		%	8.58		%	7.81		%
Tangible common equity ratio(1)	7.22		%	6.88		%	6.54		%	7.22		%	6.54		%
Credit Risk Profile:
Total nonperforming loans	$	21,954		$	25,128		$	28,987		$	21,954		$	28,987
Nonperforming loans ratio	0.51		%	0.59		%	0.71		%	0.51		%	0.71		%
Total nonperforming assets	$	25,537		$	31,181		$	28,987		$	25,537		$	28,987
Nonperforming assets ratio	0.39		%	0.47		%	0.45		%	0.39		%	0.45		%

Net charge-offs	$	1,735		$	524		$	451		$	2,448		$	1,681
Net charge-off ratio	0.16		%	0.05		%	0.04		%	0.08		%	0.06		%
Allowance for credit losses	$	54,000		$	53,900		$	51,600		$	54,000		$	51,600
Allowance for credit losses ratio	1.25		%	1.26		%	1.27		%	1.25		%	1.27		%

Allowance for credit losses to nonaccrual ratio	260.84		%	218.26		%	178.63		%	260.84		%	178.63		%





(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

MIDWESTONE FINANCIAL GROUP, INC.

AVERAGE BALANCE SHEET AND YIELD ANALYSIS


	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	4,311,693	$	63,472	5.86	%	$	4,419,697	$	62,581	5.69	%	$	4,019,852	$	52,605	5.19	%
Taxable investment securities	1,489,843		8,779		2.34	%	1,520,253		9,228		2.44	%	1,637,259		9,526		2.31	%
Tax-exempt investment securities (2)(4)	313,935		1,976		2.50	%	322,092		2,040		2.55	%	341,330		2,234		2.60	%
Total securities held for investment(2)	1,803,778		10,755		2.37	%	1,842,345		11,268		2.46	%	1,978,589		11,760		2.36	%
Other	52,054		785		6.00	%	20,452		242		4.76	%	34,195		374		4.34	%
Total interest earning assets(2)	$	6,167,525	$	75,012	4.84	%	$	6,282,494	$	74,091	4.74	%	$	6,032,636	$	64,739	4.26	%
Other assets	415,879						431,079						420,179
Total assets	$	6,583,404					$	6,713,573					$	6,452,815
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,243,327	$	3,041	0.97	%	$	1,297,356	$	3,145	0.97	%	$	1,354,597	$	2,179	0.64	%
Money market deposits	1,047,081		7,758		2.95	%	1,072,688		7,821		2.93	%	1,112,149		7,402		2.64	%
Savings deposits	761,922		3,128		1.63	%	738,773		2,673		1.46	%	603,628		749		0.49	%
Time deposits	1,430,723		15,190		4.22	%	1,470,956		15,303		4.18	%	1,403,504		12,798		3.62	%
Total interest bearing deposits	4,483,053		29,117		2.58	%	4,579,773		28,942		2.54	%	4,473,878		23,128		2.05	%
Securities sold under agreements to repurchase	5,812		12		0.82	%	5,300		10		0.76	%	66,020		85		0.51	%

Other short-term borrowings	415,961		5,031		4.81	%	442,546		5,399		4.91	%	277,713		3,634		5.19	%
Total short-term borrowings	421,773		5,043		4.76	%	447,846		5,409		4.86	%	343,733		3,719		4.29	%
Long-term debt	116,032		2,015		6.91	%	120,256		2,078		6.95	%	125,737		2,150		6.78	%
Total borrowed funds	537,805		7,058		5.22	%	568,102		7,487		5.30	%	469,470		5,869		4.96	%
Total interest bearing liabilities	$	5,020,858	$	36,175	2.87	%	$	5,147,875	$	36,429	2.85	%	$	4,943,348	$	28,997	2.33	%
Noninterest bearing deposits	919,581						935,151						905,993
Other liabilities	91,551						96,553						95,408
Shareholders’ equity	551,414						533,994						508,066
Total liabilities and shareholders’ equity	$	6,583,404					$	6,713,573					$	6,452,815
Net interest income(2)			$	38,837					$	37,662					$	35,742
Net interest spread(2)					1.97	%					1.89	%					1.93	%
Net interest margin(2)					2.51	%					2.41	%					2.35	%

Total deposits(5)	$	5,402,634	$	29,117	2.14	%	$	5,514,924	$	28,942	2.11	%	$	5,379,871	$	23,128	1.71	%
Cost of funds(6)					2.42	%					2.41	%					1.97	%

(1) Average balance includes nonaccrual loans.

(2) Tax equivalent. The federal statutory tax rate utilized was 21%.

(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $378 thousand, $337 thousand, and $141 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Loan purchase discount accretion was $1.4 million, $1.3 million, and $0.8 million for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. Tax equivalent adjustments were $951 thousand, $938 thousand, and $735 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(4) Interest income includes tax equivalent adjustments of $365 thousand, $377 thousand, and $432 thousand for the three months ended September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.

(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

MIDWESTONE FINANCIAL GROUP, INC.

AVERAGE BALANCE SHEET AND YIELD ANALYSIS


	Nine Months Ended
	September 30, 2024						September 30, 2023
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	4,343,087	$	184,920	5.69	%	$	3,964,119	$	150,250	5.07	%
Taxable investment securities	1,522,447		27,467		2.41	%	1,714,912		29,704		2.32	%
Tax-exempt investment securities (2)(4)	321,560		6,113		2.54	%	361,254		7,136		2.64	%
Total securities held for investment(2)	1,844,007		33,580		2.43	%	2,076,166		36,840		2.37	%
Other	34,435		1,445		5.61	%	22,741		686		4.03	%
Total interest earning assets(2)	$	6,221,529	$	219,945	4.72	%	$	6,063,026	$	187,776	4.14	%
Other assets	422,368						417,610
Total assets	$	6,643,897					$	6,480,636
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,280,581	$	9,076	0.95	%	$	1,429,804	$	5,999	0.56	%
Money market deposits	1,074,006		23,644		2.94	%	1,014,708		15,970		2.10	%
Savings deposits	731,724		7,848		1.43	%	620,011		1,309		0.28	%
Time deposits	1,449,485		45,217		4.17	%	1,437,122		35,286		3.28	%
Total interest bearing deposits	4,535,796		85,785		2.53	%	4,501,645		58,564		1.74	%
Securities sold under agreements to repurchase	5,482		33		0.80	%	123,512		958		1.04	%

Other short-term borrowings	422,653		15,394		4.87	%	174,448		6,665		5.11	%
Total short-term borrowings	428,135		15,427		4.81	%	297,960		7,623		3.42	%
Long-term debt	119,837		6,196		6.91	%	133,375		6,427		6.44	%
Total borrowed funds	547,972		21,623		5.27	%	431,335		14,050		4.36	%
Total interest bearing liabilities	$	5,083,768	$	107,408	2.82	%	$	4,932,980	$	72,614	1.97	%
Noninterest bearing deposits	930,197						958,104
Other liabilities	92,235						85,650
Shareholders’ equity	537,697						503,902
Total liabilities and shareholders’ equity	$	6,643,897					$	6,480,636
Net interest income(2)			$	112,537					$	115,162
Net interest spread(2)					1.90	%					2.17	%
Net interest margin(2)					2.42	%					2.54	%

Total deposits(5)	$	5,465,993	$	85,785	2.10	%	$	5,459,749	$	58,564	1.43	%
Cost of funds(6)					2.39	%					1.65	%

(1) Average balance includes nonaccrual loans.

(2) Tax equivalent. The federal statutory tax rate utilized was 21%.

(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $952 thousand and $315 thousand for the nine months ended September 30, 2024 and September 30, 2023, respectively. Loan purchase discount accretion was $3.8 million and $3.0 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. Tax equivalent adjustments were $2.8 million and $2.2 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(4) Interest income includes tax equivalent adjustments of $1.1 million and $1.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The federal statutory tax rate utilized was 21%.

(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

Non-GAAP Measures

This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.


Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity Ratio	September 30,			June 30,			March 31,			December 31,			September 30,
(Dollars in thousands, except per share data)	2024			2024			2024			2023			2023
Total shareholders’ equity	$	562,238		$	543,286		$	528,040		$	524,378		$	505,411
Intangible assets, net	(96,257)			(97,327)			(100,649)			(86,546)			(87,987)
Tangible common equity	$	465,981		$	445,959		$	427,391		$	437,832		$	417,424

Total assets	$	6,552,482		$	6,581,658		$	6,748,015		$	6,427,540		$	6,467,818
Intangible assets, net	(96,257)			(97,327)			(100,649)			(86,546)			(87,987)
Tangible assets	$	6,456,225		$	6,484,331		$	6,647,366		$	6,340,994		$	6,379,831

Book value per share	$	27.06		$	34.44		$	33.53		$	33.41		$	32.21
Tangible book value per share(1)	$	22.43		$	28.27		$	27.14		$	27.90		$	26.60
Shares outstanding	20,774,919			15,773,468			15,750,471			15,694,306			15,691,738

Common equity ratio	8.58		%	8.25		%	7.83		%	8.16		%	7.81		%
Tangible common equity ratio(2)	7.22		%	6.88		%	6.43		%	6.90		%	6.54		%

(1) Tangible common equity divided by shares outstanding.

(2) Tangible common equity divided by tangible assets.


	Three Months Ended									Nine Months Ended
Return on Average Tangible Equity	September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Net (loss) income	$	(95,707)		$	15,819		$	9,138		$	(76,619)		$	18,129
Intangible amortization, net of tax(1)	1,090			1,195			1,095			3,487			3,605

Tangible net (loss) income	$	(94,617)		$	17,014		$	10,233		$	(73,132)		$	21,734

Average shareholders’ equity	$	551,414		$	533,994		$	508,066		$	537,697		$	503,902
Average intangible assets, net	(96,706)			(99,309)			(88,699)			(97,102)			(90,308)
Average tangible equity	$	454,708		$	434,685		$	419,367		$	440,595		$	413,594

Return on average equity	(69.05)		%	11.91		%	7.14		%	(19.03)		%	4.81		%
Return on average tangible equity(2)	(82.78)		%	15.74		%	9.68		%	(22.17)		%	7.03		%

(1) The income tax rate utilized was the blended marginal tax rate.

(2) Annualized tangible net income divided by average tangible equity.


Net Interest Margin, Tax Equivalent/ Core Net Interest Margin	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Net interest income	$	37,521		$	36,347		$	34,575		$	108,599		$	111,613
Tax equivalent adjustments:
Loans(1)	951			938			735			2,809			2,164
Securities(1)	365			377			432			1,129			1,385
Net interest income, tax equivalent	$	38,837		$	37,662		$	35,742		$	112,537		$	115,162
Loan purchase discount accretion	(1,426)			(1,261)			(791)			(3,839)			(2,964)
Core net interest income	$	37,411		$	36,401		$	34,951		$	108,698		$	112,198

Net interest margin	2.42		%	2.33		%	2.27		%	2.33		%	2.46		%
Net interest margin, tax equivalent(2)	2.51		%	2.41		%	2.35		%	2.42		%	2.54		%
Core net interest margin(3)	2.41		%	2.33		%	2.30		%	2.33		%	2.47		%
Average interest earning assets	$	6,167,525		$	6,282,494		$	6,032,636		$	6,221,529		$	6,063,026

(1) The federal statutory tax rate utilized was 21%.

(2) Annualized tax equivalent net interest income divided by average interest earning assets.

(3) Annualized core net interest income divided by average interest earning assets.


	Three Months Ended									Nine Months Ended
Loan Yield, Tax Equivalent / Core Yield on Loans	September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Loan interest income, including fees	$	62,521		$	61,643		$	51,870		$	182,111		$	148,086
Tax equivalent adjustment(1)	951			938			735			2,809			2,164
Tax equivalent loan interest income	$	63,472		$	62,581		$	52,605		$	184,920		$	150,250
Loan purchase discount accretion	(1,426)			(1,261)			(791)			(3,839)			(2,964)
Core loan interest income	$	62,046		$	61,320		$	51,814		$	181,081		$	147,286

Yield on loans	5.77		%	5.61		%	5.12		%	5.60		%	4.99		%
Yield on loans, tax equivalent(2)	5.86		%	5.69		%	5.19		%	5.69		%	5.07		%
Core yield on loans(3)	5.72		%	5.58		%	5.11		%	5.57		%	4.97		%
Average loans	$	4,311,693		$	4,419,697		$	4,019,852		$	4,343,087		$	3,964,119

(1) The federal statutory tax rate utilized was 21%.

(2) Annualized tax equivalent loan interest income divided by average loans.

(3) Annualized core loan interest income divided by average loans.


	Three Months Ended									Nine Months Ended
Efficiency Ratio	September 30,			June 30,			September 30,			September 30,			September 30,
(Dollars in thousands)	2024			2024			2023			2024			2023
Total noninterest expense	$	35,798		$	35,761		$	31,544		$	107,124		$	99,782
Amortization of intangibles	(1,470)			(1,593)			(1,460)			(4,700)			(4,806)
Merger-related expenses	(133)			(854)			(11)			(2,301)			(147)

Noninterest expense used for efficiency ratio	$	34,195		$	33,314		$	30,073		$	100,123		$	94,829

Net interest income, tax equivalent(1)	$	38,837		$	37,662		$	35,742		$	112,537		$	115,162
Plus: Noninterest (loss) income	(130,388)			21,554			9,861			(99,084)			14,561
Less: Investment securities (losses) gains, net	(140,182)			33			79			(140,113)			(13,093)
Net revenues used for efficiency ratio	$	48,631		$	59,183		$	45,524		$	153,566		$	142,816

Efficiency ratio (2)	70.32		%	56.29		%	66.06		%	65.20		%	66.40		%

(1) The federal statutory tax rate utilized was 21%.

(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.


	Three Months Ended						Nine Months Ended
Adjusted Earnings	September 30,		June 30,		September 30,		September 30,		September 30,
(Dollars in thousands, except per share data)	2024		2024		2023		2024		2023
Net (loss) income	$	(95,707)	$	15,819	$	9,138	$	(76,619)	$	18,129

Less: Investment securities (losses) gains, net of tax(1)	(103,988)		24		59		(103,937)		(9,820)

Less: Mortgage servicing rights (loss) gain, net of tax(1)	(761)		96		212		(938)		13

Plus: Merger-related expenses, net of tax(1)	99		634		8		1,707		110
Less: Gain on branch sale, net of tax(1)	—		8,201		—		8,201		—
Adjusted earnings	$	9,141	$	8,132	$	8,875	$	21,762	$	28,046

Weighted average diluted common shares outstanding	15,829		15,781		15,711		15,772		15,696

Earnings per common share - diluted	$	(6.05)	$	1.00	$	0.58	$	(4.86)	$	1.15
Adjusted earnings per common share(2)	$	0.58	$	0.52	$	0.56	$	1.38	$	1.79

(1) The income tax rate utilized was the blended marginal tax rate.

(2) Adjusted earnings divided by weighted average diluted common shares outstanding.


Contact:
	Charles N. Reeves	Barry S. Ray
	Chief Executive Officer	Chief Financial Officer
	319.356.5800	319.356.5800

EX-99.2 3 ex992q32024earningsrelea.htm EX-99.2 ex992q32024earningsrelea

Third Quarter 2024 Earnings Conference Call October 25, 2024

2 Forward Looking Statements & Non-GAAP Measures This presentation contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our 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,” “goals,” “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. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including the recent sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), 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; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (4) 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; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and any changes in response to the failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) 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, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the ongoing conflict in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in recent bank failures; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company. Non-GAAP Measures This presentation contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, loan yield, tax equivalent, efficiency ratio, pre-tax, pre-provision earnings, return on average tangible equity, net interest margin, tax equivalent, adjusted earnings, and adjusted earnings per share. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. A reconciliation of each non-GAAP measure to the most comparable GAAP measure is included, as necessary, in the Non-GAAP Financial Measures section.

3 Financial Highlights Total assets $ 6,552.5 (0.44) % 1.31 % Total loans held for investment, net 4,328.8 0.97 6.46 Total deposits 5,368.7 (0.81) 0.10 Balance Sheet Equity to assets ratio 8.58 % 33 bps 77 bps Tangible common equity ratio (non-GAAP) 7.22 34 68 CET1 risk-based capital ratio 9.91 35 39 Total risk-based capital ratio 12.96 34 51 Loans to deposits ratio 80.63 142 482 Capital and Liquidity Net interest margin, tax equivalent (non-GAAP) 2.51 % 10 bps 16 bps Cost of total deposits 2.14 3 43 Return on average assets (5.78) (673) (634) Efficiency ratio (non-GAAP) 70.32 1,403 426 Diluted EPS $ (6.05) (705) % (1143) % Adjusted EPS (non-GAAP) 0.58 12 4 Profitability Nonperforming loans ratio 0.51 % (8) bps (20) bps Nonperforming assets ratio 0.39 (8) (6) Net charge-off ratio 0.16 11 12 Allowance for credit losses ratio 1.25 (1) (2) Credit Risk Profile 3Q24 Financial Highlights – See the section "Non-GAAP Financial measures." – Note: Financial metrics as of or for the quarter ended September 30, 2024. Change vs. Dollars in millions, except per share amounts 3Q24 2Q24 3Q23

4 Capital Raise & Balance Sheet Repositioning Capital Raise (net proceeds) $118.6 million Securities Sold (market value): $1.0 billion Average Yield on Securities Sold: 1.58% Reinvested Securities (market value): $589.8 million Average Yield on Reinvested Securities 4.65% Funding Paid Down: $418.7 million(2) Weighted Avg Cost of Funding Paid Down: 4.77% Transaction Details(1) (1)Transaction details are as of 10/21/24. (2)Represents $405.0 million of Federal Reserve Bank Term Funding Program borrowings and $13.7 million of accrued interest.

5 Company Focus MOFG's Five Strategic Pillars to Deliver Improved Results Exceptional Customer and Employee Engagement 1 Enhance MOFG's award winning culture with a continued focus on performance and financial results 2 Protect and enhance MOFG's dominant community bank franchise through product expansion 3 Continue to hire exceptional relationship bankers and wealth management professionals 4 Develop specialty commercial banking verticals by continuing to attract experienced professionals 5 Continue to identify and execute on opportunities for efficiency gains and cost reduction Strong Core Local Banking Model Sophisticated Commercial Banking and Wealth Management Specialty Business Lines Improving our Efficiency and Operations

6 What We Have Accomplished Strategic Plan Updates Geographic Realignment Sale of Florida branches (7.5% deposit premium) and Acquisition of Bank of Denver in first half of 2024 ☑ Talent Transformation Robust talent acquisition strategy installing senior leaders, product management, IT resources and revenue producers across target markets ☑ Operational Efficiency Completed a common equity capital raise during the third quarter of 2024, with proceeds used to support a balance sheet repositioning executed early in the fourth quarter of 2024 ☑ Wealth Continued momentum in Wealth Management, with year-to-date revenue growth of 15% compared to the prior year (through third quarter) ☑ Commercial Growth Annualized commercial & industrial ("C&I") and commercial real estate ("CRE") loan growth was 11% and 3%, respectively, for the third quarter of 2024 ☑

7 Diversified and Granular Loan Portfolio Loans Held for Investment 09/30/24 Agricultural, 3% C&I, 27% Construction & Development, 9% Farmland, 4% Multifamily, 9% CRE-Other, 31% Residential Real Estate, 15% Consumer, 2% $4.33 billion 5.86% Yield(4) <$495K Avg. Commercial Loan Size(1) Financial Information as of September 30, 2024. (1)Average net nonaccrual active principal balance of the commercial loan portfolio. (2) Commercial loan net active principal balances reported in millions ($). (3) Excludes $193 million net active principal balance of 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. $1,090 $1,204 $697 Iowa Metro Twin Cities Denver LTM Commercial Loan Growth in Targeted Regions(2) +16% +$152 million +14% +$152 million +19% +$82 million(3)

8 Credit Quality $ m illi on s Nonperforming Assets $29.0 $30.3 $33.2 $31.2 $25.5 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 $ m illi on s Net Charge-Offs $0.5 $2.1 $0.2 $0.5 $1.7 3Q23 4Q23 1Q24 2Q24 3Q24 Credit Quality Measures $ millions 3Q23 4Q23 1Q24 2Q24 3Q24 Nonperforming assets ratio 0.45 % 0.47 % 0.49 % 0.47 % 0.39 % Net charge-off ratio 0.04 % 0.20 % 0.02 % 0.05 % 0.16 % Loans greater than 30 days past due and accruing $6.4 $10.8 $8.8 $9.4 $11.9 Allowance for credit losses ratio 1.27 % 1.25 % 1.27 % 1.26 % 1.25 %

9 Commercial Real Estate 3.6% 96.4% NOO CRE Office All Other Loans Non-Owner Occupied CRE Office September 30, 2024 $ millions 3Q24 2Q24 Construction & Development $ 386.9 $ 351.6 Farmland 182.2 183.6 Multifamily 409.5 430.1 CRE Other: NOO CRE Office 154.7 157.1 OO CRE Office 84.6 84.6 Industrial and Warehouse 403.5 407.3 Retail 282.4 262.0 Hotel 111.7 112.8 Other 316.6 324.7 Total Commercial Real Estate $ 2,332.1 $ 2,313.8 Commercial Real Estate Portfolio(2) September 30, 2024 Portfolio Highlights September 30, 2024 Average NOO CRE Office outstanding principal ($ millions) $ 1.4 % of Total Capital Commercial Real Estate Concentration: 3Q24 2Q24 Regulatory Threshold Construction, land development and other land 56 % 52 % 100 % Total CRE loans(1) 232 % 237 % 300 % (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.

10 Focusing on Growth in Wealth Management $2.44 $2.74 $2.73 $3.01 $3.18 2020 2021 2022 2023 3Q24 $— $2.00 $4.00 Investment Services and Private Wealth Revenue • Asset amounts presented are in billions of dollars • Revenue amounts presented are in millions of dollars $9.6 $11.7 $11.2 $12.2 $10.4 $3.2 $4.2 $3.9 $3.8 $3.5 $6.4 $7.5 $7.3 $8.4 $6.9 Investment Services Private Wealth 2020 2021 2022 2023 YTD 3Q24 $5.0 $10.0 $15.0 Wealth Management Assets Under Administration Private Banking • Right-size book of business with consistent eligibility • Launched new concierge support • Building out product set • Added a new Senior Private Banker in Des Moines and Denver during 2024 Private Wealth • Enhance planning with a single platform across Private Wealth and Investment Services • Reviewing platform options to dramatically enhance investment offering in the first quarter of 2025 • Increase focus on thought leadership • Enhance fee opportunities with fiduciary services and proprietary investments Investment Services • Adding advisors in Twin Cities & Denver • Focus on building recurring revenue through fee-based business

11 Financial Performance

12 Balance Sheet 3Q24 vs. 2Q24 3Q24 vs. 3Q23 Period end balances, $ millions 3Q24 $ Change % Change $ Change % Change Loans $4,328.8 $41.6 1 % $262.8 6 % Investment securities $1,623.1 $(201.0) (11) % $(335.4) (17) % Interest earning deposits in banks $129.7 $94.4 267 % $125.9 3313 % Deposits $5,368.7 $(43.7) (1) % $5.4 — % Borrowed funds $525.7 $(3.8) (1) % $27.2 5 % Shareholders' equity $562.2 $18.9 3 % $56.8 11 % 3Q24 3Q24 Period end 3Q24 2Q24 vs. 2Q24 3Q23 vs. 3Q23 Tangible book value per share (non-GAAP) $22.43 $28.27 (21) % $26.60 (16) % Common equity Tier 1 capital ratio 9.91 % 9.56 % 35 bps 9.52 % 39 bps AOCI $(58.8) $(58.1) (1) % $(84.6) 30 % Return on average tangible equity (non-GAAP) (82.78) % 15.74 % (9,852) bps 9.68 % (9,246) bps – See the section "Non-GAAP Financial Measures."

13 Balance Sheet - Debt Securities Portfolio Portfolio Mix (09/30/24) 4.4 Year Duration 2.19% Yield Municipals, 36% MBS, 4% CLO, 3%CMO, 33% Corporate, 24% $1.62 billion Portfolio Mix (10/18/24) Municipals, 14% MBS, 15% CLO, 4% CMO, 56% Corporate, 11% 4.0 Year Duration 3.85% Yield $1.16 billion

14 Income Statement % Change 3Q24 vs. $ millions 3Q24 2Q24 3Q23 2Q24 3Q23 Net interest income $37.5 $36.3 $34.6 3 % 8 % Noninterest income (130.4) 21.6 9.9 (704) % (1417) % Total revenue (92.9) 57.9 44.5 (260) % (309) % Noninterest expense 35.8 35.8 31.5 — % 14 % Pre-tax, pre-provision earnings (non-GAAP) $(128.7) $22.1 $13.0 (682) % (1090) % Credit loss expense $1.5 $1.3 $1.6 15 % (6) % Income tax expense (benefit) $(34.5) $5.1 $2.2 (776) % (1668) % Net income $(95.7) $15.8 $9.1 (706) % (1152) % Adjusted earnings (non-GAAP) $9.1 $8.1 $8.9 12 % 2 % 3Q24 2Q24 3Q23 vs. 2Q24 vs. 3Q23 Net interest margin (non-GAAP) 2.51 % 2.41 % 2.35 % 10 bps 16 bps Efficiency ratio (non-GAAP) 70.32 % 56.29 % 66.06 % 1,403 bps 426 bps Diluted EPS $(6.05) $1.00 $0.58 (705) % (1143) % Adjusted EPS (non-GAAP) $0.58 $0.52 $0.56 12 % 4 % – See the section "Non-GAAP Financial Measures."

15 Non-GAAP Financial Measures

16 Non-GAAP Financial Measures Tangible Common Equity / Tangible Book Value per Share / Tangible Common Equity Ratio September 30, 2023 June 30, 2024 September 30, 2024 dollars in thousands Total shareholders' equity $ 505,411 $ 543,286 $ 562,238 Intangible assets, net (87,987) (97,327) (96,257) Tangible common equity $ 417,424 $ 445,959 $ 465,981 Total assets $ 6,467,818 $ 6,581,658 $ 6,552,482 Intangible assets, net (87,987) (97,327) (96,257) Tangible assets $ 6,379,831 $ 6,484,331 $ 6,456,225 Book value per share $ 32.21 $ 34.44 $ 27.06 Tangible book value per share (1) $ 26.60 $ 28.27 $ 22.43 Shares outstanding 15,691,738 15,773,468 20,774,919 Tangible common equity ratio (2) 6.54 % 6.88 % 7.22 % (1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets. Loan Yield, Tax Equivalent For the Three Months Ended September 30, 2023 June 30, 2024 September 30, 2024 dollars in thousands Loan interest income, including fees $ 51,870 $ 61,643 $ 62,521 Tax equivalent adjustment (1) 735 938 951 Tax equivalent loan interest income $ 52,605 $ 62,581 $ 63,472 Yield on loans, tax equivalent (2) 5.19 % 5.69 % 5.86 % Average Loans $ 4,019,852 $ 4,419,697 $ 4,311,693 (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent loan interest income divided by average loans.

17 Non-GAAP Financial Measures Efficiency Ratio For the Three Months Ended September 30, 2023 June 30, 2024 September 30, 2024 dollars in thousands Total noninterest expense $ 31,544 $ 35,761 $ 35,798 Amortization of intangibles (1,460) (1,593) (1,470) Merger-related expenses (11) (854) (133) Noninterest expense used for efficiency ratio $ 30,073 $ 33,314 $ 34,195 Net interest income, tax equivalent (1) $ 35,742 $ 37,662 $ 38,837 Noninterest income 9,861 21,554 (130,388) Investment securities (losses) gains, net 79 33 (140,182) Net revenues used for efficiency ratio $ 45,524 $ 59,183 $ 48,631 Efficiency ratio 66.06 % 56.29 % 70.32 % (1) The federal statutory tax rate utilized was 21%. (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities (losses) gains. Pre-tax / Pre-provision Net Revenue For the Three Months Ended September 30, 2023 June 30, 2024 September 30, 2024 dollars in thousands Net interest income $ 34,575 $ 36,347 $ 37,521 Noninterest income (loss) 9,861 21,554 (130,388) Noninterest expense (31,544) (35,761) (35,798) Pre-tax / Pre-provision Net Revenue $ 12,892 $ 22,140 $ (128,665)

18 Non-GAAP Financial Measures Return on Average Tangible Equity For the Three Months Ended September 30, 2023 June 30, 2024 September 30, 2024 dollars in thousands Net income (loss) $ 9,138 $ 15,819 $ (95,707) Intangible amortization, net of tax (1) 1,095 1,195 1,090 Tangible net income $ 10,233 $ 17,014 $ (94,617) Average shareholders' equity $ 508,066 $ 533,994 $ 551,414 Average intangible assets, net (88,699) (99,309) (96,706) Average tangible equity $ 419,367 $ 434,685 $ 454,708 Return on average equity 7.14 % 11.91 % (69.05) % Return on average tangible equity (2) 9.68 % 15.74 % (82.78) % (1) The income tax rate utilized was the blended marginal tax rate. (2) Annualized tangible net income divided by average tangible equity. Net Interest Margin, Tax Equivalent For the Three Months Ended September 30, 2023 June 30, 2024 September 30, 2024 dollars in thousands Net interest Income $ 34,575 $ 36,347 $ 37,521 Tax equivalent adjustments: Loans (1) 735 938 951 Securities (1) 432 377 365 Net Interest Income, tax equivalent $ 35,742 $ 37,662 $ 38,837 Average interest earning assets $ 6,032,636 $ 6,282,494 $ 6,167,525 Net interest margin, tax equivalent (2) 2.35 % 2.41 % 2.51 % (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent net interest income divided by average interest earning assets.

19 Non-GAAP Financial Measures Adjusted Earnings / Adjusted Earnings Per Share For the Three Months Ended September 30, 2023 June 30, 2024 September 30, 2024 dollars in thousands Net (loss) income $ 9,138 $ 15,819 $ (95,707) Less: Investment securities (losses) gains, net of tax(1) 59 24 (103,988) Less: Mortgage servicing rights (loss) gain, net of tax(1) 212 96 (761) Plus: Merger-related expenses, net of tax(1) 8 634 99 Less: Gain on branch sale, net of tax(1) — 8,201 — Adjusted earnings $ 8,875 $ 8,132 $ 9,141 Weighted average diluted common shares outstanding 15,711,137 15,780,935 15,829,032 Earnings per common share - diluted $0.58 $1.00 $(6.05) Adjusted earnings per common share(2) $0.56 $0.52 $0.58 (1) The income tax rate utilized was the blended marginal tax rate. (2) Adjusted earnings divided by weighted average diluted common shares outstanding.