MidWestOne Financial Group, Inc. Reports Financial Results for the Second Quarter of 2025

Rhea-AI Summary

MidWestOne Financial Group (NASDAQ:MOFG) reported Q2 2025 financial results, with net income of $10.0 million, or $0.48 per diluted share. The quarter saw pre-tax, pre-provision net revenue increase 15% to $24.5 million, with net interest margin expanding to 3.57%.

Key highlights include annualized loan growth of 7.4%, improved efficiency ratio to 56.20%, and a tangible book value per share increase of 2.4% to $23.92. However, results were impacted by an $11.9 million credit loss expense, primarily due to a single commercial real estate office credit in the Twin Cities area.

The company announced plans to redeem $65.0 million of its 5.75% fixed-to-floating rate subordinated notes. Total revenue increased to $60.2 million, up from $57.6 million in Q1 2025, driven by higher net interest income and noninterest income.

Positive

• Net interest margin expanded 13 basis points to 3.57%
• Pre-tax, pre-provision net revenue increased 15% to $24.5 million
• Strong annualized loan growth of 7.4%
• Efficiency ratio improved to 56.20% from 59.38%
• Tangible book value per share increased 2.4% to $23.92
• CET1 capital ratio improved 5 basis points to 11.02%

Negative

• $11.9 million credit loss expense from single CRE office credit
• Net income declined to $10.0 million from $15.1 million in Q1 2025
• Deposits decreased to $5.39 billion from $5.49 billion in Q1 2025
• Allowance for credit losses ratio increased to 1.50% from 1.25%

Insights

Banking Financial Analyst

MidWestOne reported mixed Q2 results with strong margin expansion but credit quality concerns from a single large troubled loan.

MidWestOne Financial Group delivered $10.0 million in net income ($0.48 per diluted share) for Q2 2025, down from $15.1 million in Q1 but with several underlying positive trends. The headline numbers were significantly impacted by an $11.9 million credit loss expense stemming primarily from a single troubled commercial real estate office loan in the Twin Cities market.

The bank's pre-tax, pre-provision income grew 15% to $24.5 million, showing the core business is performing well despite the credit issue. A key driver was the net interest margin expansion of 13 basis points to 3.57%, reflecting successful loan repricing efforts and improved balance sheet management. This margin improvement translated to 5% quarter-over-quarter growth in net interest income to nearly $50 million.

On the lending front, the bank achieved annualized loan growth of 7.4%, with commercial and industrial loans increasing by 7.6% during the quarter, demonstrating solid business development momentum. The loan mix shift toward C&I lending (now 28% of the portfolio versus 26.5% last quarter) represents a strategic positive as these relationships typically bring additional fee income and deposits.

Fee income showed modest improvement, increasing 1% quarter-over-quarter to $10.2 million. Notable gains came from wealth management revenue (+5%), card revenue (+11%), and loan revenue (+19%), the latter driven by increased mortgage origination and SBA gain-on-sale income.

The troubled $24 million CRE office loan that moved to nonaccrual status during the quarter prompted an increase in the allowance for credit losses ratio to 1.50% from 1.25%. While this single credit issue is concerning, the broader portfolio showed improvement with the criticized loans ratio declining 32 basis points to 5.15%.

Expense management remains disciplined with noninterest expenses decreasing 1% quarter-over-quarter to $35.8 million. The efficiency ratio improved significantly to 56.20% from 59.38% in Q1, indicating better operational leverage.

Capital levels remain solid with a CET1 ratio of 11.02%, up 5 basis points from Q1. The bank's announced redemption of $65 million in 5.75% subordinated notes will reduce funding costs going forward, though it will have a modest impact on total capital ratios.

Overall, while the credit loss from the single CRE office loan masked otherwise solid performance, the core earnings power of the bank appears to be strengthening with margin expansion, loan growth, and improved operational efficiency positioning it well for future quarters.

IOWA CITY, Iowa, July 24, 2025 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) ("we," "our," or the "Company") today reported results for the second quarter of 2025.

Second Quarter 2025 Summary¹

• Pre-tax, pre-provision net revenue increased 15% to $24.5 million².
  • Net interest margin (tax equivalent) was 3.57%²; core net interest margin expanded 13 basis points ("bps") to 3.49%.²
  • Noninterest income was $10.2 million.
  • Noninterest expense was $35.8 million.
  • Efficiency ratio improved to 56.20%² from 59.38%².
• Net income of $10.0 million, or $0.48 per diluted common share, reflected credit loss expense of $11.9 million stemming primarily from a single commercial real estate ("CRE") office credit.
• Criticized loans ratio improved 32 bps to 5.15%.
• Allowance for credit losses ratio increased to 1.50%, due primarily to the single CRE office credit.
• Annualized loan growth of 7.4%.
• Tangible book value per share of $23.92,² an increase of 2.4%.
• Common equity tier 1 ("CET1") capital ratio improved 5 bps to 11.02%.
• Provided notice of redemption for all $65.0 million aggregate principal of the Company's 5.75% fixed-to-floating rate subordinated notes due 2030 set to reprice on July 30^th.

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "Due to the expertise of our MidWestOne team, we continued to execute well on our 2025 strategic initiatives. Strong loan growth and back book loan re-pricing led to tax equivalent net interest margin expansion of 13 basis points, to 3.57%², and to 5% linked quarter net interest income growth. Investments in our relationship fee income businesses continue to bear fruit with wealth management, Small Business Administration ("SBA"), and residential mortgage revenues up quarter over quarter.

We maintained our expense discipline even as we added significant customer facing talent in Denver and the Twin Cities, as well as invested in our platforms to drive internal efficiencies and improve the customer experience.

Earnings and certain asset quality measures were unfavorably impacted by a single $24 million suburban Twin Cities CRE office credit. The loan was originated in June 2022 and previously classified, but moved to nonaccrual in the second quarter. A receiver is in place, resolution efforts have begun, and a specific reserve was established, which led to an increase in our allowance for credit losses ratio to 1.50%.

Our balance sheet, capital, and underlying earnings strength position us well for the second half of 2025 as we continue to make significant progress in building a high-performing, relationship-driven community bank.”

__________________
¹ _{Second Quarter Summary compares to the first quarter of 2025 (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.}

(Dollars in thousands, except per share amounts and as noted)		As of or for the quarter ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
			2025				2025				2024				2025				2024
Financial Results
Revenue		$	60,231			$	57,575			$	57,901			$	117,806			$	102,382
Credit loss expense			11,889				1,687				1,267				13,576				5,956
Noninterest expense			35,767				36,293				35,761				72,060				71,326
Net income			9,980				15,138				15,819				25,118				19,088
Pre-tax pre-provision net revenue(3)			24,464				21,282				22,140				45,746				31,056
Adjusted earnings(3)			10,176				15,301				8,132				25,479				12,621
Per Common Share
Diluted earnings per share		$	0.48			$	0.73			$	1.00			$	1.20			$	1.21
Adjusted earnings per share(3)			0.49				0.73				0.52				1.22				0.80
Book value			28.36				27.85				34.44				28.36				34.44
Tangible book value(3)			23.92				23.36				28.27				23.92				28.27
Balance Sheet & Credit Quality
Loans In millions		$	4,381.2			$	4,304.2			$	4,287.2			$	4,381.2			$	4,287.2
Investment securities In millions			1,235.0				1,305.5				1,824.1				1,235.0				1,824.1
Deposits In millions			5,388.1				5,489.1				5,412.4				5,388.1				5,412.4
Net loan charge-offs In millions			0.2				3.1				0.5				3.3				0.7
Allowance for credit losses ratio			1.50	%			1.25	%			1.26	%			1.50	%			1.26	%
Selected Ratios
Return on average assets			0.65	%			1.00	%			0.95	%			0.82	%			0.58	%
Net interest margin, tax equivalent(3)			3.57	%			3.44	%			2.41	%			3.51	%			2.37	%
Return on average equity			6.81	%			10.74	%			11.91	%			8.74	%			7.23	%
Return on average tangible equity(3)			8.84	%			13.75	%			15.74	%			11.24	%			9.98	%
Efficiency ratio(3)			56.20	%			59.38	%			56.29	%			57.75	%			62.83	%

REVENUE REVIEW

Revenue											Change			Change
											2Q25 vs			2Q25 vs
(Dollars in thousands)		2Q25			1Q25			2Q24			1Q25			2Q24
Net interest income		$	49,982		$	47,439		$	36,347		5	%		38	%
Noninterest income			10,249			10,136			21,554		1	%		(52)%
Total revenue, net of interest expense		$	60,231		$	57,575		$	57,901		5	%		4	%

Total revenue for the second quarter of 2025 increased $2.7 million from the first quarter of 2025 due to higher net interest income and noninterest income during the quarter. When compared to the second quarter of 2024, total revenue increased $2.3 million due to higher net interest income partially offset by lower noninterest income.

Net interest income of $50.0 million for the second quarter of 2025 increased $2.5 million from the first quarter of 2025 due to higher earning asset volumes and yields and lower funding costs, partially offset by higher funding volumes. When compared to the second quarter of 2024, net interest income increased $13.6 million due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

The Company's tax equivalent net interest margin was 3.57%³ in the second quarter of 2025, compared to 3.44%³ in the first quarter of 2025, driven by higher earning asset yields and lower interest bearing liability costs. Total earning asset yield increased 12 bps from the first quarter of 2025, primarily due to an increase of 10 bps in loan yield. Interest bearing liability costs during the second quarter of 2025 decreased 2 bps to 2.39%, primarily due to reductions in long-term debt costs and interest bearing deposits of 13 bps and 2 bps, to 6.28% and 2.29%, respectively, from the first quarter of 2025.

The Company's tax equivalent net interest margin was 3.57%³ in the second quarter of 2025, compared to 2.41%³ in the second quarter of 2024, driven by higher earning asset yields and lower interest bearing liability costs. Total earning assets yield increased 75 bps from the second quarter of 2024, primarily due to increases of 189 bps and 12 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 46 bps to 2.39%, due to long-term debt costs of 6.28% and interest bearing deposit costs of 2.29%, which decreased 67 bps, and 25 bps, 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.}

Noninterest Income												Change			Change
												2Q25 vs			2Q25 vs
(Dollars in thousands)	2Q25				1Q25				2Q24			1Q25			2Q24
Investment services and trust activities	$	3,705			$	3,544			$	3,504		5	%		6	%
Service charges and fees		2,190				2,131				2,156		3	%		2	%
Card revenue		1,934				1,744				1,907		11	%		1	%
Loan revenue		1,417				1,194				1,525		19	%		(7)%
Bank-owned life insurance		677				1,057				668		(36)%			1	%
Investment securities gains, net		—				33				33		(100)%			(100)%
Other		326				433				11,761		(25)%			(97)%
Total noninterest income	$	10,249			$	10,136			$	21,554		1	%		(52)%
MSR adjustment (included above in Loan revenue)	$	(264	)		$	(213	)		$	129		24	%		(305)%

Noninterest income for the second quarter of 2025 increased $0.1 million from the linked quarter, primarily due to increases of $0.2 million each in loan revenue, card revenue, and investment services and trust activities revenue. The increase in loan revenue was due primarily to a $0.2 million increase in mortgage origination fee revenue, coupled with an increase of $0.2 million in SBA gain on sale revenue. The increase in card revenue was driven primarily by higher interchange fee income. The increase in investment services and trust activities revenue was driven by higher assets under administration. Partially offsetting these increases was a decline of $0.4 million in bank-owned life insurance revenue stemming from the death benefit recognized in the first quarter of 2025.

Noninterest income for the second quarter of 2025 decreased $11.3 million from the second quarter of 2024 primarily due to the decline in other revenue stemming from the $11.1 million gain realized in connection with the sale of our Florida banking operations in the second quarter of 2024. Also contributing to the decline in noninterest income was a $0.4 million unfavorable change in the fair value of our mortgage servicing rights, which is included in loan revenue, and a decline of $0.4 million in swap origination fee income, which is recorded in other revenue. Partially offsetting these declines was an increase of $0.2 million in investment services and trust activities revenue, driven by higher assets under administration.

EXPENSE REVIEW

Noninterest Expense										Change			Change
										2Q25 vs			2Q25 vs
(Dollars in thousands)	2Q25			1Q25			2Q24			1Q25			2Q24
Compensation and employee benefits	$	21,011		$	21,212		$	20,985		(1)%			—	%
Occupancy expense of premises, net		2,540			2,588			2,435		(2)%			4	%
Equipment		2,550			2,426			2,530		5	%		1	%
Legal and professional		2,153			2,226			2,253		(3)%			(4)%
Data processing		1,486			1,698			1,645		(12)%			(10)%
Marketing		762			552			636		38	%		20	%
Amortization of intangibles		1,252			1,408			1,593		(11)%			(21)%
FDIC insurance		851			917			1,051		(7)%			(19)%
Communications		161			159			191		1	%		(16)%
Foreclosed assets, net		83			74			138		12	%		(40)%
Other		2,918			3,033			2,304		(4)%			27	%
Total noninterest expense	$	35,767		$	36,293		$	35,761		(1)%			—	%

Merger-related Expenses
(Dollars in thousands)	2Q25			1Q25			2Q24
Compensation and employee benefits	$	—		$	—		$	73
Equipment		—			—			28
Legal and professional		—			40			462
Data processing		—			—			251
Communications		—			—			8
Other		—			—			32
Total merger-related expenses	$	—		$	40		$	854

Noninterest expense for the second quarter of 2025 decreased $0.5 million from the linked quarter, primarily due to decreases of $0.2 million each in data processing, compensation and employee benefits, and amortization of intangibles. The decrease in data processing was primarily driven by a decrease in core banking system costs. The decrease in compensation and employee benefits reflected the receipt of $1.1 million from Employee Retention Credit claims, which was partially offset by higher wage, equity compensation and employee benefits expense.

Noninterest expense for the second quarter of 2025 compared to the prior year was stable at $35.8 million. The $0.6 million increase in other noninterest expense stemmed primarily from customer deposits costs. Further, excluding merger-related expenses, legal and professional costs increased $0.4 million due primarily to higher litigation-related legal expenses. Those increases were partially offset by lower intangible amortization and FDIC insurance costs, which decreased $0.3 million and $0.2 million, respectively.

The Company's effective tax rate was 20.6% in the second quarter of 2025, compared to 22.7% in the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.

BALANCE SHEET REVIEW

Total assets were $6.16 billion at June 30, 2025, compared to $6.25 billion at March 31, 2025 and $6.58 billion at June 30, 2024. The decrease from March 31, 2025 was primarily due to lower cash and security volumes, partially offset by higher loan volumes. Compared to June 30, 2024, the decrease was primarily driven by lower security volumes, partially offset by higher loan volumes.

Loans Held for Investment (Dollars in thousands)	June 30, 2025					March 31, 2025					June 30, 2024
	Balance			% of Total		Balance			% of Total		Balance			% of Total
Commercial and industrial	$	1,226,265		28.0	%	$	1,140,138		26.5	%	$	1,120,983		26.1	%
Agricultural		128,717		2.9			131,409		3.1			107,983		2.5
Commercial real estate
Construction and development		280,918		6.4			293,280		6.8			351,646		8.2
Farmland		186,494		4.3			180,633		4.2			183,641		4.3
Multifamily		438,193		10.0			421,204		9.8			430,054		10.0
Other		1,407,469		32.1			1,425,062		33.0			1,348,515		31.5
Total commercial real estate		2,313,074		52.8			2,320,179		53.8			2,313,856		54.0
Residential real estate
One-to-four family first liens		467,970		10.7			471,688		11.0			492,541		11.5
One-to-four family junior liens		188,671		4.3			182,346		4.2			176,105		4.1
Total residential real estate		656,641		15.0			654,034		15.2			668,646		15.6
Consumer		56,491		1.3			58,424		1.4			75,764		1.8
Loans held for investment, net of unearned income	$	4,381,188		100.0	%	$	4,304,184		100.0	%	$	4,287,232		100.0	%
Total commitments to extend credit	$	1,074,935				$	1,080,300				$	1,200,605

Loans held for investment, net of unearned income at June 30, 2025 were $4.38 billion, increasing $77.0 million, or 1.8%, from $4.30 billion at March 31, 2025 and increasing $94.0 million, or 2.2%, from $4.29 billion at June 30, 2024. The increases across both periods were primarily driven by organic loan growth and higher line of credit usage.

Investment Securities (Dollars in thousands)	June 30, 2025					March 31, 2025					June 30, 2024
	Balance			% of Total		Balance			% of Total		Balance			% of Total
Available for sale	$	1,235,045		100.0	%	$	1,305,530		100.0	%	$	771,034		42.3	%
Held to maturity		—		—	%		—		—	%		1,053,080		57.7	%
Total investment securities	$	1,235,045				$	1,305,530				$	1,824,114

Investment securities at June 30, 2025 were $1.24 billion, decreasing $70.5 million from March 31, 2025 and decreasing $589.1 million from June 30, 2024. The decrease from the first quarter of 2025 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the second quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities.

Deposits	June 30, 2025					March 31, 2025					June 30, 2024
(Dollars in thousands)	Balance			% of Total		Balance			% of Total		Balance			% of Total
Noninterest bearing deposits	$	910,693		16.9	%	$	903,714		16.5	%	$	882,472		16.3	%
Interest checking deposits		1,206,096		22.5			1,283,328		23.3			1,284,243		23.7
Money market deposits		971,048		18.0			1,002,066		18.3			1,043,376		19.3
Savings deposits		851,636		15.8			877,348		16.0			745,639		13.8
Time deposits of $250 and under		837,302		15.5			818,012		14.9			803,301		14.8
Total core deposits		4,776,775		88.7			4,884,468		89.0			4,759,031		87.9
Brokered time deposits		200,000		3.7			200,000		3.6			196,000		3.6
Time deposits over $250		411,323		7.6			404,674		7.4			457,388		8.5
Total deposits	$	5,388,098		100.0	%	$	5,489,142		100.0	%	$	5,412,419		100.0	%

Total deposits at June 30, 2025 were $5.39 billion, decreasing $101.0 million, or 1.8%, from $5.49 billion at March 31, 2025, and decreasing $24.3 million, or 0.4%, from $5.41 billion at June 30, 2024. Noninterest bearing deposits at June 30, 2025 were $910.7 million, an increase of $7.0 million from March 31, 2025 and an increase of $28.2 million from June 30, 2024.

Borrowed Funds	June 30, 2025					March 31, 2025					June 30, 2024
(Dollars in thousands)	Balance			% of Total		Balance			% of Total		Balance			% of Total
Short-term borrowings	$	—		—	%	$	1,482		1.3	%	$	414,684		78.3	%
Long-term debt		112,320		100.0	%		111,398		98.7	%		114,839		21.7	%
Total borrowed funds	$	112,320				$	112,880				$	529,523

Borrowed funds were $112.3 million at June 30, 2025, a decrease of $0.6 million from March 31, 2025 and a decrease of $417.2 million from June 30, 2024. The decrease compared to the linked quarter was due primarily to lower securities sold under agreements to repurchase. The decrease compared to June 30, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and scheduled payments on long-term debt.

In June 2025, the Company provided notice to the trustee of its intent to redeem all $65.0 million aggregate principal of its 5.75% fixed-to-floating rate subordinated notes due 2030. To complete the redemption, the Company expects to utilize a combination of cash on hand and proceeds from a $50.0 million senior term note. The senior term note is expected to be structured as a 5-year maturity, 7-year amortization facility, and bear interest at a floating rate of 1-month term SOFR plus 1.75%. The financing pursuant to the senior note is expected to close on July 29, 2025, and the redemption is expected to occur on July 30, 2025.

Capital	June 30,				March 31,				June 30,
(Dollars in thousands)	2025 (1)					2025				2024
Total shareholders' equity	$	589,040			$	579,625			$	543,286
Accumulated other comprehensive loss		(57,557	)			(63,098	)			(58,135	)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio		9.62	%			9.50	%			8.29	%
Common equity tier 1 capital to risk-weighted assets ratio		11.02	%			10.97	%			9.56	%
Tier 1 capital to risk-weighted assets ratio		11.88	%			11.84	%			10.35	%
Total capital to risk-weighted assets ratio		14.44	%			14.34	%			12.62	%
MidWestOne Bank
Tier 1 leverage to average assets ratio		10.43	%			10.42	%			9.24	%
Common equity tier 1 capital to risk-weighted assets ratio		12.95	%			13.02	%			11.55	%
Tier 1 capital to risk-weighted assets ratio		12.95	%			13.02	%			11.55	%
Total capital to risk-weighted assets ratio		14.20	%			14.21	%			12.61	%
(1) Regulatory capital ratios for June 30, 2025 are preliminary

Total shareholders' equity at June 30, 2025 increased $9.4 million from March 31, 2025, driven primarily by a decrease in accumulated other comprehensive loss and an increase in retained earnings, partially offset by an increase in treasury stock. Total shareholders' equity at June 30, 2025 increased $45.8 million from June 30, 2024, primarily due to increases in common stock and additional paid-in-capital stemming from the common equity capital raise in the third quarter of 2024, and partially offset by a decrease in retained earnings.

On July 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable September 16, 2025, to shareholders of record at the close of business on September 2, 2025.

The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. Under such program, the Company repurchased 63,402 shares of its common stock at an average price of $27.65 per share and a total cost of $1.8 million during the period March 31, 2025 through June 30, 2025. No shares were repurchased during the subsequent period through July 24, 2025. As of June 30, 2025, $13.2 million remained available under this program.

CREDIT QUALITY REVIEW

Credit Quality	As of or For the Three Months Ended
	June 30,				March 31,				June 30,
(Dollars in thousands)		2025				2025				2024
Credit loss expense related to loans	$	12,089			$	1,787			$	467
Net charge-offs		189				3,087				524
Allowance for credit losses		65,800				53,900				53,900
Pass	$	4,155,385			$	4,068,707			$	3,991,692
Special Mention		98,998				121,494				146,253
Classified		126,805				113,983				149,287
Criticized		225,803				235,477				295,540
Loans greater than 30 days past due and accruing	$	12,161			$	6,119			$	9,358
Nonperforming loans	$	37,192			$	17,470			$	25,128
Nonperforming assets		40,606				20,889				31,181
Net charge-off ratio(1)		0.02	%			0.29	%			0.05	%
Classified loans ratio(2)		2.89	%			2.65	%			3.48	%
Criticized loans ratio(3)		5.15	%			5.47	%			6.89	%
Nonperforming loans ratio(4)		0.85	%			0.41	%			0.59	%
Nonperforming assets ratio(5)		0.66	%			0.33	%			0.47	%
Allowance for credit losses ratio(6)		1.50	%			1.25	%			1.26	%
Allowance for credit losses to nonaccrual loans ratio(7)		179.19	%			309.47	%			218.26	%
(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) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(6) 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.
(7) 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, both nonperforming loans and nonperforming assets increased $19.7 million, primarily due to a single $24.0 million CRE office credit, partially offset by the sale of a $3.9 million CRE office credit. Special mention loan balances decreased $22.5 million, or 19%, while classified loan balances increased $12.8 million, or 11%. Compared to the prior year period, nonperforming loans and nonperforming assets increased $12.1 million and $9.4 million, respectively. Special mention loan balances decreased $47.3 million, or 32%, while classified loan balances decreased $22.5 million, or 15%. The net charge-off ratio declined 27 bps from the linked quarter and 3 bps from the same period in the prior year.

As of June 30, 2025, the allowance for credit losses was $65.8 million and the allowance for credit losses ratio was 1.50%, compared with $53.9 million and 1.25%, respectively, at March 31, 2025. Credit loss expense of $11.9 million in the second quarter of 2025 primarily reflected the specific reserve established in connection with the single CRE office credit previously discussed.

Nonperforming Loans Roll Forward (Dollars in thousands)	Nonaccrual				90+ Days Past Due & Still Accruing				Total
Balance at March 31, 2025	$	17,417			$	53			$	17,470
Loans placed on nonaccrual or 90+ days past due & still accruing		25,279				569				25,848
Proceeds related to repayment or sale		(4,973	)			—				(4,973	)
Loans returned to accrual status or no longer past due		(632	)			—				(632	)
Charge-offs		(187	)			(151	)			(338	)
Transfers to foreclosed assets		(183	)			—				(183	)
Balance at June 30, 2025	$	36,721			$	471			$	37,192

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, July 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=a6070726&confId=80381. 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 293794 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until October 23, 2025 by calling 1-866-813-9403 and using the replay access code of 763204. 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 effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, DEI and ESG initiative trends, changes in consumer protection policies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto 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; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) 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; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts 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; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) 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; (20) changes in the business and economic conditions generally and in the financial services industry, and 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 prior bank failures; (21) 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 or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the 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; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) 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

	June 30,				March 31,				December 31,				September 30,				June 30,
(Dollars in thousands)		2025				2025				2024				2024				2024
ASSETS
Cash and due from banks	$	78,696			$	68,545			$	71,803			$	72,173			$	66,228
Interest earning deposits in banks		90,749				182,360				133,092				129,695				35,340
Total cash and cash equivalents		169,445				250,905				204,895				201,868				101,568
Debt securities available for sale at fair value		1,235,045				1,305,530				1,328,433				1,623,104				771,034
Held to maturity securities at amortized cost		—				—				—				—				1,053,080
Total securities		1,235,045				1,305,530				1,328,433				1,623,104				1,824,114
Loans held for sale		16,812				13,836				749				3,283				2,850
Gross loans held for investment		4,391,426				4,315,546				4,328,413				4,344,559				4,304,619
Unearned income, net		(10,238	)			(11,362	)			(12,786	)			(15,803	)			(17,387	)
Loans held for investment, net of unearned income		4,381,188				4,304,184				4,315,627				4,328,756				4,287,232
Allowance for credit losses		(65,800	)			(53,900	)			(55,200	)			(54,000	)			(53,900	)
Total loans held for investment, net		4,315,388				4,250,284				4,260,427				4,274,756				4,233,332
Premises and equipment, net		89,910				90,031				90,851				90,750				91,793
Goodwill		69,788				69,788				69,788				69,788				69,388
Other intangible assets, net		22,359				23,611				25,019				26,469				27,939
Foreclosed assets, net		3,414				3,419				3,337				3,583				6,053
Other assets		238,612				246,990				252,830				258,881				224,621
Total assets	$	6,160,773			$	6,254,394			$	6,236,329			$	6,552,482			$	6,581,658
LIABILITIES
Noninterest bearing deposits	$	910,693			$	903,714			$	951,423			$	917,715			$	882,472
Interest bearing deposits		4,477,405				4,585,428				4,526,559				4,451,012				4,529,947
Total deposits		5,388,098				5,489,142				5,477,982				5,368,727				5,412,419
Short-term borrowings		—				1,482				3,186				410,630				414,684
Long-term debt		112,320				111,398				113,376				115,051				114,839
Other liabilities		71,315				72,747				82,089				95,836				96,430
Total liabilities		5,571,733				5,674,769				5,676,633				5,990,244				6,038,372
SHAREHOLDERS' EQUITY
Common stock		21,580				21,580				21,580				21,580				16,581
Additional paid-in capital		414,485				414,258				414,987				414,965				300,831
Retained earnings		232,718				227,790				217,776				206,490				306,030
Treasury stock		(22,186	)			(20,905	)			(21,885	)			(21,955	)			(22,021	)
Accumulated other comprehensive loss		(57,557	)			(63,098	)			(72,762	)			(58,842	)			(58,135	)
Total shareholders' equity		589,040				579,625				559,696				562,238				543,286
Total liabilities and shareholders' equity	$	6,160,773			$	6,254,394			$	6,236,329			$	6,552,482			$	6,581,658

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended																Six Months Ended
(Dollars in thousands, except per share data)	June 30,			March 31,			December 31,			September 30,				June 30,			June 30,			June 30,
		2025			2025			2024			2024				2024			2025			2024
Interest income
Loans, including fees	$	62,276		$	59,462		$	62,458		$	62,521			$	61,643		$	121,738		$	119,590
Taxable investment securities		12,928			13,327			11,320			8,779				9,228			26,255			18,688
Tax-exempt investment securities		699			703			728			1,611				1,663			1,402			3,373
Other		1,517			1,247			3,761			785				242			2,764			660
Total interest income		77,420			74,739			78,267			73,696				72,776			152,159			142,311
Interest expense
Deposits		25,665			25,484			27,324			29,117				28,942			51,149			56,668
Short-term borrowings		19			25			115			5,043				5,409			44			10,384
Long-term debt		1,754			1,791			1,890			2,015				2,078			3,545			4,181
Total interest expense		27,438			27,300			29,329			36,175				36,429			54,738			71,233
Net interest income		49,982			47,439			48,938			37,521				36,347			97,421			71,078
Credit loss expense		11,889			1,687			1,291			1,535				1,267			13,576			5,956
Net interest income after credit loss expense		38,093			45,752			47,647			35,986				35,080			83,845			65,122
Noninterest income
Investment services and trust activities		3,705			3,544			3,779			3,410				3,504			7,249			7,007
Service charges and fees		2,190			2,131			2,159			2,170				2,156			4,321			4,300
Card revenue		1,934			1,744			1,833			1,935				1,907			3,678			3,850
Loan revenue		1,417			1,194			1,841			760				1,525			2,611			2,381
Bank-owned life insurance		677			1,057			719			879				668			1,734			1,328
Investment securities gains (losses), net		—			33			161			(140,182	)			33			33			69
Other		326			433			345			640				11,761			759			12,369
Total noninterest income (loss)		10,249			10,136			10,837			(130,388	)			21,554			20,385			31,304
Noninterest expense
Compensation and employee benefits		21,011			21,212			20,684			19,943				20,985			42,223			41,915
Occupancy expense of premises, net		2,540			2,588			2,772			2,443				2,435			5,128			5,248
Equipment		2,550			2,426			2,688			2,486				2,530			4,976			5,130
Legal and professional		2,153			2,226			2,534			2,261				2,253			4,379			4,312
Data processing		1,486			1,698			1,719			1,580				1,645			3,184			3,005
Marketing		762			552			793			619				636			1,314			1,234
Amortization of intangibles		1,252			1,408			1,449			1,470				1,593			2,660			3,230
FDIC insurance		851			917			980			923				1,051			1,768			1,993
Communications		161			159			154			159				191			320			387
Foreclosed assets, net		83			74			56			330				138			157			496
Other		2,918			3,033			3,543			3,584				2,304			5,951			4,376
Total noninterest expense		35,767			36,293			37,372			35,798				35,761			72,060			71,326
Income (loss) before income tax expense (benefit)		12,575			19,595			21,112			(130,200	)			20,873			32,170			25,100
Income tax expense (benefit)		2,595			4,457			4,782			(34,493	)			5,054			7,052			6,012
Net income (loss)	$	9,980		$	15,138		$	16,330		$	(95,707	)		$	15,819		$	25,118		$	19,088
Earnings (loss) per common share
Basic	$	0.48		$	0.73		$	0.79		$	(6.05	)		$	1.00		$	1.21		$	1.21
Diluted	$	0.48		$	0.73		$	0.78		$	(6.05	)		$	1.00		$	1.20		$	1.21
Weighted average basic common shares outstanding		20,816			20,797			20,776			15,829				15,763			20,807			15,743
Weighted average diluted common shares outstanding		20,843			20,849			20,851			15,829				15,781			20,846			15,775
Dividends paid per common share	$	0.2425		$	0.2425		$	0.2425		$	0.2425			$	0.2425		$	0.4850		$	0.4850

MIDWESTONE FINANCIAL GROUP, INC.
FINANCIAL STATISTICS

	As of or for the Three Months Ended												As of or for the Six Months Ended
	June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands, except per share amounts)		2025				2025				2024				2025				2024
Earnings:
Net interest income	$	49,982			$	47,439			$	36,347			$	97,421			$	71,078
Noninterest income		10,249				10,136				21,554				20,385				31,304
Total revenue, net of interest expense		60,231				57,575				57,901				117,806				102,382
Credit loss expense		11,889				1,687				1,267				13,576				5,956
Noninterest expense		35,767				36,293				35,761				72,060				71,326
Income before income tax expense		12,575				19,595				20,873				32,170				25,100
Income tax expense		2,595				4,457				5,054				7,052				6,012
Net income	$	9,980			$	15,138			$	15,819			$	25,118			$	19,088
Pre-tax pre-provision net revenue(1)	$	24,464			$	21,282			$	22,140			$	45,746			$	31,056
Adjusted earnings(1)		10,176				15,301				8,132				25,479				12,621
Per Share Data:
Diluted earnings	$	0.48			$	0.73			$	1.00			$	1.20			$	1.21
Adjusted earnings(1)		0.49				0.73				0.52				1.22				0.80
Book value		28.36				27.85				34.44				28.36				34.44
Tangible book value(1)		23.92				23.36				28.27				23.92				28.27
Ending Balance Sheet:
Total assets	$	6,160,773			$	6,254,394			$	6,581,658			$	6,160,773			$	6,581,658
Loans held for investment, net of unearned income		4,381,188				4,304,184				4,287,232				4,381,188				4,287,232
Total securities		1,235,045				1,305,530				1,824,114				1,235,045				1,824,114
Total deposits		5,388,098				5,489,142				5,412,419				5,388,098				5,412,419
Short-term borrowings		—				1,482				414,684				—				414,684
Long-term debt		112,320				111,398				114,839				112,320				114,839
Total shareholders' equity		589,040				579,625				543,286				589,040				543,286
Average Balance Sheet:
Average total assets	$	6,172,649			$	6,168,546			$	6,713,573			$	6,170,609			$	6,674,476
Average total loans		4,370,196				4,290,710				4,419,697				4,330,659				4,358,957
Average total deposits		5,398,916				5,398,819				5,514,924				5,398,868				5,498,020
Financial Ratios:
Return on average assets		0.65	%			1.00	%			0.95	%			0.82	%			0.58	%
Return on average equity		6.81	%			10.74	%			11.91	%			8.74	%			7.23	%
Return on average tangible equity(1)		8.84	%			13.75	%			15.74	%			11.24	%			9.98	%
Efficiency ratio(1)		56.20	%			59.38	%			56.29	%			57.75	%			62.83	%
Net interest margin, tax equivalent(1)		3.57	%			3.44	%			2.41	%			3.51	%			2.37	%
Loans to deposits ratio		81.31	%			78.41	%			79.21	%			81.31	%			79.21	%
CET1 Ratio		11.02	%			10.97	%			9.56	%			11.02	%			9.56	%
Common equity ratio		9.56	%			9.27	%			8.25	%			9.56	%			8.25	%
Tangible common equity ratio(1)		8.19	%			7.89	%			6.88	%			8.19	%			6.88	%
Credit Risk Profile:
Total nonperforming loans	$	37,192			$	17,470			$	25,128			$	37,192			$	25,128
Nonperforming loans ratio		0.85	%			0.41	%			0.59	%			0.85	%			0.59	%
Total nonperforming assets	$	40,606			$	20,889			$	31,181			$	40,606			$	31,181
Nonperforming assets ratio		0.66	%			0.33	%			0.47	%			0.66	%			0.47	%
Net charge-offs	$	189			$	3,087			$	524			$	3,276			$	713
Net charge-off ratio		0.02	%			0.29	%			0.05	%			0.15	%			0.03	%
Allowance for credit losses	$	65,800			$	53,900			$	53,900			$	65,800			$	53,900
Allowance for credit losses ratio		1.50	%			1.25	%			1.26	%			1.50	%			1.26	%
Allowance for credit losses to nonaccrual ratio		179.19	%			309.47	%			218.26	%			179.19	%			218.26	%
(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
	June 30, 2025									March 31, 2025									June 30, 2024
(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)	$	4,370,196		$	63,298		5.81	%		$	4,290,710		$	60,443		5.71	%		$	4,419,697		$	62,581		5.69	%
Taxable investment securities		1,168,048			12,928		4.44	%			1,207,844			13,327		4.47	%			1,520,253			9,228		2.44	%
Tax-exempt investment securities (2)(4)		102,792			859		3.35	%			105,563			865		3.32	%			322,092			2,040		2.55	%
Total securities held for investment(2)		1,270,840			13,787		4.35	%			1,313,407			14,192		4.38	%			1,842,345			11,268		2.46	%
Other		104,628			1,517		5.82	%			124,133			1,247		4.07	%			20,452			242		4.76	%
Total interest earning assets(2)	$	5,745,664		$	78,602		5.49	%		$	5,728,250		$	75,882		5.37	%		$	6,282,494		$	74,091		4.74	%
Other assets		426,985									440,296									431,079
Total assets	$	6,172,649								$	6,168,546								$	6,713,573
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,221,266		$	2,101		0.69	%		$	1,240,586		$	2,127		0.70	%		$	1,297,356		$	3,145		0.97	%
Money market deposits		986,029			6,057		2.46	%			1,002,743			6,333		2.56	%			1,072,688			7,821		2.93	%
Savings deposits		843,223			3,161		1.50	%			835,731			3,057		1.48	%			738,773			2,673		1.46	%
Time deposits		1,436,301			14,346		4.01	%			1,397,595			13,967		4.05	%			1,470,956			15,303		4.18	%
Total interest bearing deposits		4,486,819			25,665		2.29	%			4,476,655			25,484		2.31	%			4,579,773			28,942		2.54	%
Securities sold under agreements to repurchase		896			1		0.45	%			2,705			5		0.75	%			5,300			10		0.76	%
Other short-term borrowings		—			18		—	%			—			20		—	%			442,546			5,399		4.91	%
Total short-term borrowings		896			19		8.51	%			2,705			25		3.75	%			447,846			5,409		4.86	%
Long-term debt		112,035			1,754		6.28	%			113,364			1,791		6.41	%			120,256			2,078		6.95	%
Total borrowed funds		112,931			1,773		6.30	%			116,069			1,816		6.35	%			568,102			7,487		5.30	%
Total interest bearing liabilities	$	4,599,750		$	27,438		2.39	%		$	4,592,724		$	27,300		2.41	%		$	5,147,875		$	36,429		2.85	%
Noninterest bearing deposits		912,097									922,164									935,151
Other liabilities		73,094									82,280									96,553
Shareholders’ equity		587,708									571,378									533,994
Total liabilities and shareholders’ equity	$	6,172,649								$	6,168,546								$	6,713,573
Net interest income(2)				$	51,164								$	48,582								$	37,662
Net interest spread(2)							3.10	%								2.96	%								1.89	%
Net interest margin(2)							3.57	%								3.44	%								2.41	%
Total deposits(5)	$	5,398,916		$	25,665		1.91	%		$	5,398,819		$	25,484		1.91	%		$	5,514,924		$	28,942		2.11	%
Cost of funds(6)							2.00	%								2.01	%								2.41	%
(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 $272 thousand, $256 thousand, and $337 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Loan purchase discount accretion was $1.1 million, $1.2 million, and $1.3 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Tax equivalent adjustments were $1.0 million, $981 thousand, and $938 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (4) Interest income includes tax equivalent adjustments of $160 thousand, $162 thousand, and $377 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, 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

	Six Months Ended
	June 30, 2025									June 30, 2024
(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)	$	4,330,659		$	123,741		5.76	%		$	4,358,957		$	121,448		5.60	%
Taxable investment securities		1,187,836			26,255		4.46	%			1,538,928			18,688		2.44	%
Tax-exempt investment securities (2)(4)		104,170			1,724		3.34	%			325,414			4,137		2.56	%
Total securities held for investment(2)		1,292,006			27,979		4.37	%			1,864,342			22,825		2.46	%
Other		114,327			2,764		4.88	%			25,529			660		5.20	%
Total interest earning assets(2)	$	5,736,992		$	154,484		5.43	%		$	6,248,828		$	144,933		4.66	%
Other assets		433,617									425,648
Total assets	$	6,170,609								$	6,674,476
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,230,873		$	4,228		0.69	%		$	1,299,413		$	6,035		0.93	%
Money market deposits		994,340			12,390		2.51	%			1,087,616			15,886		2.94	%
Savings deposits		839,498			6,218		1.49	%			716,458			4,720		1.32	%
Time deposits		1,417,054			28,313		4.03	%			1,458,969			30,027		4.14	%
Total interest bearing deposits		4,481,765			51,149		2.30	%			4,562,456			56,668		2.50	%
Securities sold under agreements to repurchase		1,795			6		0.67	%			5,315			21		0.79	%
Other short-term borrowings		—			38		—	%			426,036			10,363		4.89	%
Total short-term borrowings		1,795			44		4.94	%			431,351			10,384		4.84	%
Long-term debt		112,696			3,545		6.34	%			121,761			4,181		6.91	%
Total borrowed funds		114,491			3,589		6.32	%			553,112			14,565		5.30	%
Total interest bearing liabilities	$	4,596,256		$	54,738		2.40	%		$	5,115,568		$	71,233		2.80	%
Noninterest bearing deposits		917,103									935,564
Other liabilities		77,662									92,581
Shareholders’ equity		579,588									530,763
Total liabilities and shareholders’ equity	$	6,170,609								$	6,674,476
Net interest income(2)				$	99,746								$	73,700
Net interest spread(2)							3.03	%								1.86	%
Net interest margin(2)							3.51	%								2.37	%
Total deposits(5)	$	5,398,868		$	51,149		1.91	%		$	5,498,020		$	56,668		2.07	%
Cost of funds(6)							2.00	%								2.37	%
(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 $528 thousand and $574 thousand for the six months ended June 30, 2025 and June 30, 2024, respectively. Loan purchase discount accretion was $2.3 million and $2.4 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Tax equivalent adjustments were $2.0 million and $1.9 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (4) Interest income includes tax equivalent adjustments of $0.3 million and $0.8 million for the six months ended June 30, 2025 and June 30, 2024, 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.

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, and pre-tax pre-provision net revenue. 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		June 30,				March 31,				December 31,				September 30,				June 30,
(Dollars in thousands, except per share data)			2025				2025				2024				2024				2024
Total shareholders’ equity		$	589,040			$	579,625			$	559,696			$	562,238			$	543,286
Intangible assets, net			(92,147	)			(93,399	)			(94,807	)			(96,257	)			(97,327	)
Tangible common equity		$	496,893			$	486,226			$	464,889			$	465,981			$	445,959
Total assets		$	6,160,773			$	6,254,394			$	6,236,329			$	6,552,482			$	6,581,658
Intangible assets, net			(92,147	)			(93,399	)			(94,807	)			(96,257	)			(97,327	)
Tangible assets		$	6,068,626			$	6,160,995			$	6,141,522			$	6,456,225			$	6,484,331
Book value per share		$	28.36			$	27.85			$	26.94			$	27.06			$	34.44
Tangible book value per share(1)		$	23.92			$	23.36			$	22.37			$	22.43			$	28.27
Shares outstanding			20,769,577				20,815,715				20,777,485				20,774,919				15,773,468
Common equity ratio			9.56	%			9.27	%			8.97	%			8.58	%			8.25	%
Tangible common equity ratio(2)			8.19	%			7.89	%			7.57	%			7.22	%			6.88	%
(1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets.

		Three Months Ended												Six Months Ended
Return on Average Tangible Equity		June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands)			2025				2025				2024				2025				2024
Net income		$	9,980			$	15,138			$	15,819			$	25,118			$	19,088
Intangible amortization, net of tax(1)			931				1,047				1,195				1,978				2,423
Tangible net income		$	10,911			$	16,185			$	17,014			$	27,096			$	21,511
Average shareholders’ equity		$	587,708			$	571,378			$	533,994			$	579,588			$	530,763
Average intangible assets, net			(92,733	)			(94,169	)			(99,309	)			(93,447	)			(97,302	)
Average tangible equity		$	494,975			$	477,209			$	434,685			$	486,141			$	433,461
Return on average equity			6.81	%			10.74	%			11.91	%			8.74	%			7.23	%
Return on average tangible equity(2)			8.84	%			13.75	%			15.74	%			11.24	%			9.98	%
(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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands)			2025				2025				2024				2025				2024
Net interest income		$	49,982			$	47,439			$	36,347			$	97,421			$	71,078
Tax equivalent adjustments:
Loans(1)			1,022				981				938				2,003				1,858
Securities(1)			160				162				377				322				764
Net interest income, tax equivalent		$	51,164			$	48,582			$	37,662			$	99,746			$	73,700
Loan purchase discount accretion			(1,142	)			(1,166	)			(1,261	)			(2,308	)			(2,413	)
Core net interest income		$	50,022			$	47,416			$	36,401			$	97,438			$	71,287
Net interest margin			3.49	%			3.36	%			2.33	%			3.42	%			2.29	%
Net interest margin, tax equivalent(2)			3.57	%			3.44	%			2.41	%			3.51	%			2.37	%
Core net interest margin(3)			3.49	%			3.36	%			2.33	%			3.42	%			2.29	%
Average interest earning assets		$	5,745,664			$	5,728,250			$	6,282,494			$	5,736,992			$	6,248,828
(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												Six Months Ended
Loan Yield, Tax Equivalent / Core Yield on Loans			June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands)				2025				2025				2024				2025				2024
Loan interest income, including fees			$	62,276			$	59,462			$	61,643			$	121,738			$	119,590
Tax equivalent adjustment(1)				1,022				981				938				2,003				1,858
Tax equivalent loan interest income			$	63,298			$	60,443			$	62,581			$	123,741			$	121,448
Loan purchase discount accretion				(1,142	)			(1,166	)			(1,261	)			(2,308	)			(2,413	)
Core loan interest income			$	62,156			$	59,277			$	61,320			$	121,433			$	119,035
Yield on loans				5.72	%			5.62	%			5.61	%			5.67	%			5.52	%
Yield on loans, tax equivalent(2)				5.81	%			5.71	%			5.69	%			5.76	%			5.60	%
Core yield on loans(3)				5.70	%			5.60	%			5.58	%			5.65	%			5.49	%
Average loans			$	4,370,196			$	4,290,710			$	4,419,697			$	4,330,659			$	4,358,957
(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												Six Months Ended
Efficiency Ratio			June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands)				2025				2025				2024				2025				2024
Total noninterest expense			$	35,767			$	36,293			$	35,761			$	72,060			$	71,326
Amortization of intangibles				(1,252	)			(1,408	)			(1,593	)			(2,660	)			(3,230	)
Merger-related expenses				—				(40	)			(854	)			(40	)			(2,168	)
Noninterest expense used for efficiency ratio			$	34,515			$	34,845			$	33,314			$	69,360			$	65,928
Net interest income, tax equivalent(1)			$	51,164			$	48,582			$	37,662			$	99,746			$	73,700
Plus: Noninterest income				10,249				10,136				21,554				20,385				31,304
Less: Investment securities gains, net				—				33				33				33				69
Net revenues used for efficiency ratio			$	61,413			$	58,685			$	59,183			$	120,098			$	104,935
Efficiency ratio (2)				56.20	%			59.38	%			56.29	%			57.75	%			62.83	%
(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											Six Months Ended
Adjusted Earnings		June 30,				March 31,				June 30,			June 30,				June 30,
(Dollars in thousands, except per share data)			2025				2025				2024			2025				2024
Net income		$	9,980			$	15,138			$	15,819		$	25,118			$	19,088
Less: Investment securities gains, net of tax(1)			—				25				24			24				51
Less: Mortgage servicing rights (loss) gain, net of tax(1)			(196	)			(158	)			96			(355	)			(177	)
Plus: Merger-related expenses, net of tax(1)			—				30				634			30				1,608
Less: Gain on branch sale, net of tax(1)			—				—				8,201			—				8,201
Adjusted earnings		$	10,176			$	15,301			$	8,132		$	25,479			$	12,621
Weighted average diluted common shares outstanding			20,843				20,849				15,781			20,846				15,775
Earnings per common share - diluted		$	0.48			$	0.73			$	1.00		$	1.20			$	1.21
Adjusted earnings per common share(2)		$	0.49			$	0.73			$	0.52		$	1.22			$	0.80
(1) The income tax rate utilized was the blended marginal tax rate. (2) Adjusted earnings divided by weighted average diluted common shares outstanding.

		For the Three Months Ended												Year Ended
Pre-tax Pre-provision Net Revenue		June 30,				March 31,				June 30,				June 30,				June 30,
(Dollars in thousands)			2025				2025				2024				2025				2024
Net interest income		$	49,982			$	47,439			$	36,347			$	97,421			$	71,078
Noninterest income			10,249				10,136				21,554				20,385				31,304
Noninterest expense			(35,767	)			(36,293	)			(35,761	)			(72,060	)			(71,326	)
Pre-tax Pre-provision Net Revenue		$	24,464			$	21,282			$	22,140			$	45,746			$	31,056

Category: Earnings
This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.

Source: MidWestOne Financial Group, Inc.

Industry: Banks

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

FAQ

What were MidWestOne Financial Group's (MOFG) earnings per share in Q2 2025?

MOFG reported earnings of $0.48 per diluted share in Q2 2025, compared to $0.73 in Q1 2025.

What was MOFG's net interest margin in Q2 2025?

The company's tax equivalent net interest margin was 3.57%, an increase of 13 basis points from 3.44% in Q1 2025.

How much was MidWestOne's credit loss expense in Q2 2025?

Credit loss expense was $11.9 million, primarily due to a single commercial real estate office credit in the Twin Cities area.

What was MOFG's loan growth in Q2 2025?

The company reported annualized loan growth of 7.4%, with total loans held for investment reaching $4.38 billion.

What is MidWestOne's plan regarding their subordinated notes?

MOFG announced the redemption of all $65.0 million of its 5.75% fixed-to-floating rate subordinated notes due 2030.