Midwestone Financial Group (MOFG) AI Stock Analysis

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Midwestone Financial Group

(NASDAQ:MOFG)

57Neutral

The overall stock score of 56.5 reflects a challenging environment for Midwestone Financial Group. The key concerns are the company's net loss and negative P/E ratio, indicating significant profitability challenges. However, positive aspects include stable cash flow and an attractive dividend yield, as well as improved asset quality and strategic initiatives highlighted during the earnings call. Technical analysis shows mixed signals, suggesting caution. The stock may offer potential for recovery if the company successfully addresses its income and growth challenges.

Midwestone Financial Group (MOFG) vs. S&P 500 (SPY)

Market Cap

$587.84M

Dividend Yield3.43%

Average Volume (3M)116.08K

Price to Earnings (P/E)―

Beta (1Y)0.99

Revenue Growth-27.64%

EPS Growth-343.61%

CountryUS

Employees757

SectorFinancial

Sector Strength83

IndustryBanks - Regional

Share Statistics

EPS (TTM)-4.05

Shares Outstanding20,815,716

10 Day Avg. Volume118,652

30 Day Avg. Volume116,077

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)10.15

Price to Cash Flow (P/CF)4.90

P/FCF Ratio2.90

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$36.75

Price Target Upside30.13% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Midwestone Financial Group Business Overview & Revenue Model

Company DescriptionMidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers deposit products, such as noninterest bearing and interest-bearing demand deposit accounts, interest checking accounts, savings accounts, money market accounts, certificates of deposit, and time deposits. The company also provides commercial and industrial, commercial and residential real estate, agricultural, and credit card loans, as well as consumer loans, such as secured and unsecured personal, and automobile loans. In addition, it offers various trust and investment services, including administering estates, personal trusts, and conservatorships, as well as property management, farm management, investment advisory, retail securities brokerage, and financial planning and custodial services, as well as investment-related services, including securities trading, mutual funds sales, fixed and variable annuities, tax-exempted, and conventional unit trusts. Further, the company provides other products and services comprising treasury management, debit cards, automated teller machines, online and mobile banking, and safe deposit boxes. It offers its products and services primarily through a network of 56 banking offices located in central and eastern Iowa, the Minneapolis/St. Paul metropolitan area of Minnesota, southwestern Wisconsin, southwestern Florida, and Denver, Colorado. MidWestOne Financial Group, Inc. was incorporated in 1983 and is headquartered in Iowa City, Iowa.

How the Company Makes MoneyMidwestone Financial Group makes money through various revenue streams typical of a diversified financial services company. The primary source of revenue comes from interest income generated from loans and leases offered to individuals and businesses. This includes personal and commercial loans, mortgage loans, and other forms of credit. The company also earns non-interest income through fees and service charges associated with deposit accounts, transaction processing, and other banking services. Additionally, Midwestone Financial Group benefits from investment and wealth management services, earning fees from advisory services and asset management. These revenue streams are supported by a strong network of branches and digital banking platforms, enabling the company to reach a broad customer base. Significant partnerships with other financial institutions and service providers may also contribute to its earnings by enhancing product offerings and operational efficiency.

Midwestone Financial Group Financial Statement Overview

Summary

MidWestOne Financial Group is encountering financial challenges, with a net loss impacting the income statement. Despite a stable balance sheet and resilient cash flow, the negative net profit margin and stagnant free cash flow growth are concerning. The company needs to address profitability issues to ensure its financial stability.

Income Statement

Neutral

The income statement reflects a challenging year with a significant decline in net income, resulting in a net loss for the latest period. Gross profit margin is stable as gross profit equals total revenue, but net profit margin has turned negative. EBIT margin shows a positive trend, improving significantly from the previous year. However, revenue growth is inconsistent and volatile, indicating potential risks ahead.

Balance Sheet

Neutral

The balance sheet shows a stable equity position, with an improving debt-to-equity ratio indicating prudent financial management. Return on equity has turned negative due to the net loss, which is a concern. The equity ratio remains stable, reflecting a balanced approach to asset management. Overall, the balance sheet is fairly stable but with some concerns due to recent profitability issues.

Cash Flow

Neutral

Cash flow analysis reveals stable operating cash flow despite the net income loss. The operating cash flow to net income ratio is strong, indicating healthy cash generation relative to income. However, free cash flow growth is stagnant, and the free cash flow to net income ratio is impacted by the net loss. The cash flow statement shows resilience but highlights potential liquidity concerns if income issues persist.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
294.27M	162.59M	213.88M	198.73M	191.58M
	Gross Profit
69.29M	162.59M	213.88M	198.73M	191.58M
	EBIT
291.63M	24.83M	111.09M	89.48M	13.32M
	EBITDA
0.00	0.00	86.76M	91.04M	17.88M
	Net Income Common Stockholders
-60.29M	20.86M	60.84M	69.49M	6.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.40B	871.37M	1.24B	2.49B	1.74B
	Total Assets
6.24B	6.43B	6.58B	6.03B	5.56B
	Total Debt
116.56M	418.50M	531.08M	336.25M	439.48M
	Net Debt
44.76M	336.78M	444.65M	132.42M	356.99M
	Total Liabilities
5.68B	5.90B	6.09B	5.50B	5.04B
	Stockholders Equity
559.70M	524.38M	492.79M	527.48M	515.25M
Cash Flow		Free Cash Flow
63.18M	58.52M	87.67M	109.54M	7.03M
	Operating Cash Flow
63.18M	62.57M	90.33M	111.55M	9.16M
	Investing Cash Flow
312.30M	129.73M	-273.27M	-428.32M	-867.44M
	Financing Cash Flow
-252.32M	-197.01M	65.55M	437.94M	867.46M

Midwestone Financial Group Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price28.24

Price Trends

50DMA

28.89

Negative

100DMA

29.80

Negative

200DMA

28.98

Negative

Market Momentum

MACD

-0.29

Negative

RSI

52.49

Neutral

STOCH

86.58

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOFG, the sentiment is Neutral. The current price of 28.24 is above the 20-day moving average (MA) of 27.44, below the 50-day MA of 28.89, and below the 200-day MA of 28.98, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 52.49 is Neutral, neither overbought nor oversold. The STOCH value of 86.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MOFG.

Midwestone Financial Group Risk Analysis

Midwestone Financial Group disclosed 41 risk factors in its most recent earnings report. Midwestone Financial Group reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Midwestone Financial Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MCB	79 Outperform	$569.79M	8.57	9.47%	―	14.53%	-2.85%
CCBG	73 Outperform	$618.56M	10.77	11.83%	2.51%	6.62%	11.18%
SMBC	73 Outperform	$594.42M	11.56	10.52%	1.71%	17.53%	19.94%
HTB	73 Outperform	$598.48M	10.82	9.99%	1.35%	5.23%	-7.72%
FSBC	66 Neutral	$575.68M	12.10	13.39%	2.96%	17.32%	-18.15%
Sector *	63 Neutral	$12.32B	9.52	7.89%	79.24%	12.74%	-4.55%
MOFG	57 Neutral	$587.84M	―	-8.74%	3.43%	-27.64%	-343.61%

* Financial Sector Average

Performance Comparison

MOFG

Midwestone Financial Group

28.24

8.32

41.77%

CCBG

Capital City Bank

36.27

9.92

37.65%

SMBC

Southern Missouri Bancorp

52.71

12.56

31.28%

HTB

Hometrust Bancshares

34.10

8.68

34.15%

MCB

Metropolitan Bank Holding

60.85

20.39

50.40%

FSBC

Five Star

26.99

6.03

28.77%

Midwestone Financial Group Earnings Call Summary

Earnings Call Date: Apr 24, 2025 | % Change Since: -0.77% | Next Earnings Date: Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a mixture of positive aspects, such as increased net income, improved asset quality, and strategic initiatives, alongside challenges like flat loan growth and decreased net interest income. The balance of highlights and lowlights suggests a stable financial performance with room for growth.

Highlights

Increase in Net Income and Return on Assets

Net income for the quarter was $15.1 million, with a return on average assets of 1%.

Improvement in Asset Quality Metrics

Criticized assets decreased by $24 million or 9%, and the nonperforming assets ratio improved by 7 basis points to 0.33%.

Expansion of Core Net Interest Margin

Core net interest margin increased by 10 basis points.

Significant Increase in SBA Gain on Sale Income

SBA gain on sale income rose by 52% from the same period last year.

Strong Loan Origination Activity

Commercial originations were up 4% from the year-ago period and 37% from the linked quarter.

Increase in Shareholders' Equity

Shareholders' equity increased by $20 million to $579.6 million.

Stable Deposit Franchise

Deposits were essentially flat, reflecting stability despite seasonal fluctuations.

Successful Strategic Initiatives

New commercial banker hires and technology investments are expected to enhance future performance.

Lowlights

Flat Loan Growth

Loan growth was flat due to elevated payoffs, although origination activity remained solid.

Decreased Net Interest Income

Net interest income decreased by $1.5 million due to lower earning asset volumes and yields.

Decrease in Non-Interest Income

Non-interest income decreased due to a decline in wealth management business and SBA gain on sale revenue compared to the linked quarter.

Increased Charge-offs

Charge-offs increased to 29 basis points, mainly due to the partial charge-off of a previously reserved CRE loan.

Company Guidance

During the MidWestOne Financial Group's first quarter 2025 earnings call, several key financial metrics were highlighted. The company reported a net income of $15.1 million, with a return on average assets of 1%. Despite flat loan growth due to elevated payoffs, the core net interest margin improved by 10 basis points. Asset quality metrics showed improvement, with criticized assets decreasing by $24 million (9%) and the nonperforming assets ratio improving by 7 basis points to 0.33%. Charge-offs increased to 29 basis points for the quarter, primarily due to a partial charge-off of a previously reserved CRE loan. The allowance for credit losses remained ample at 1.25% of loans. Additionally, the company's shareholders' equity increased by $20 million to $579.6 million, and the CET1 ratio rose to 10.97%. The core net interest margin increased to 3.36%, driven by a decrease in the cost of interest-bearing liabilities and an expansion in core earning asset yields. The company aims to maintain annual expenses in the range of $145 million to $147 million for 2025.

Midwestone Financial Group Corporate Events

Financial Disclosures

MidWestOne Financial to Announce Q1 2025 Results

Neutral

Apr 11, 2025

On April 11, 2025, MidWestOne Financial Group, Inc. announced it will release its first quarter 2025 financial results after market close on April 24, 2025. The company will host a conference call on April 25, 2025, to discuss these results, providing an update on recent activities and financial performance.

Spark’s Take on MOFG Stock

According to Spark, TipRanks’ AI Analyst, MOFG is a Neutral.

MidWestOne Financial Group’s stock score reflects its current financial challenges, with a net loss impacting valuation and financial performance. While the earnings call indicates potential for improvement, particularly in net interest margin and deposit growth, flat loan growth and higher expenses pose risks. Technical indicators suggest market indecision, and while the dividend yield provides some appeal, the overall outlook remains cautious.

To see Spark’s full report on MOFG stock, click here.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.