Midwestone Financial Group (MOFG) AI Stock Analysis

• Market Cap: $829.23M
• Dividend Yield: 2.41%
• Average Volume (3M): 265.64K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.99
• Revenue Growth: 89.00%
• EPS Growth: N/A
• Country: US
• Employees: 757
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.82
• Shares Outstanding: 20,634,268
• 10 Day Avg. Volume: 214,319
• 30 Day Avg. Volume: 265,640
• PEG Ratio: 0.02
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 2.41
• P/FCF Ratio: 8.16
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 3.02
• Enterprise Value/Gross Profit: 9.07
• Enterprise Value/Ebitda: -8.29
• 1Y Price Target: $50.00
• Price Target Upside: 27.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: $44.00 ▲(11.76% Upside)

Midwestone Financial Group's overall stock score is driven by strong technical indicators and positive earnings call sentiment regarding the strategic acquisition. However, financial performance challenges, particularly in profitability and revenue growth, weigh down the score. The valuation is fair, providing some support to the overall assessment.

Positive Factors

Strategic Acquisition

The acquisition of MidWestOne by Nikolay Bancshares is expected to enhance market position and profitability, creating a larger and more competitive entity in the Upper Midwest.

Market Expansion

The merger expands Nikolay's market presence, offering strategic opportunities for growth in key regions, which can lead to increased customer base and revenue potential.

EPS Accretion

The expected EPS accretion from the merger indicates improved profitability and shareholder value, enhancing the financial health of the combined entity.

Negative Factors

Profitability Challenges

Declining revenue and negative profitability metrics indicate operational challenges that could hinder long-term financial stability and growth.

Integration Challenges

Integration complexities may delay cost synergies and efficiencies, impacting the anticipated benefits from the merger and potentially straining resources.

Impact of Durbin Amendment

The Durbin Amendment's impact on interchange income could reduce revenue streams, affecting long-term profitability and financial planning.

Midwestone Financial Group Business Overview & Revenue Model

Company Description

MidWestOne 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 Money

Midwestone Financial Group generates revenue through several key streams. The primary source of income comes from net interest income, which is derived from the interest earned on loans provided to customers, minus the interest paid on deposits and other borrowings. In addition to traditional banking services, MOFG earns fee income from services such as wealth management, mortgage origination, and insurance products. The company may also generate revenue through investment gains and commissions from financial advisory services. Strategic partnerships with local businesses and organizations further enhance its ability to attract clients and expand its market presence, contributing to overall profitability.

Midwestone Financial Group Financial Statement Overview

Summary

Midwestone Financial Group faces significant challenges in profitability and revenue growth, with negative margins and declining revenue. The balance sheet shows stable leverage but negative returns, while cash flow management is a relative strength despite income losses.

Income Statement

Midwestone Financial Group's income statement shows a concerning trend with declining revenue and negative profitability metrics in the TTM period. The gross profit margin has decreased significantly from previous years, and the net profit margin is negative, indicating losses. The EBIT and EBITDA margins are also negative, reflecting operational challenges. Revenue growth has been negative, highlighting a need for strategic adjustments to reverse this trend.

Balance Sheet

The balance sheet reveals a relatively stable debt-to-equity ratio, which has improved over the years, indicating better leverage management. However, the return on equity is negative in the TTM period, suggesting inefficiencies in generating returns for shareholders. The equity ratio remains stable, but the negative ROE is a concern that needs addressing to improve shareholder value.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with negative growth in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. However, the free cash flow to net income ratio is relatively high, suggesting that despite income losses, the company manages to maintain cash flow, which is a positive aspect.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	204.96M	206.03M	268.04M	244.28M	219.22M	223.41M
Gross Profit	68.31M	60.51M	156.75M	209.38M	206.07M	163.22M
EBITDA	-74.80M	-76.29M	37.41M	86.76M	91.04M	17.88M
Net Income	-54.26M	-60.29M	20.86M	60.84M	69.49M	6.62M
Balance Sheet
Total Assets	6.16B	6.24B	6.43B	6.58B	6.03B	5.56B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.53B	876.85M	1.24B	2.49B	1.74B
Total Debt	112.32M	116.56M	138.56M	531.08M	336.25M	439.48M
Total Liabilities	5.57B	5.68B	5.90B	6.09B	5.50B	5.04B
Stockholders Equity	589.04M	559.70M	524.38M	492.79M	527.48M	515.25M
Cash Flow
Free Cash Flow	59.16M	60.78M	58.52M	87.67M	109.54M	7.03M
Operating Cash Flow	61.95M	63.18M	62.57M	90.33M	111.55M	9.16M
Investing Cash Flow	350.55M	312.30M	129.73M	-273.27M	-428.32M	-867.44M
Financing Cash Flow	-344.63M	-252.32M	-197.01M	65.55M	437.94M	867.46M

Midwestone Financial Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 39.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 39.37 is below the 20-day moving average (MA) of 40.55, above the 50-day MA of 37.48, and above the 200-day MA of 30.60, indicating a neutral trend. The MACD of 0.81 indicates Positive momentum. The RSI at 48.06 is Neutral, neither overbought nor oversold. The STOCH value of 32.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MOFG.

Midwestone Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMBC	79 Outperform	$695.28M	11.08	11.54%	1.56%	9.34%	25.21%
SMBK	79 Outperform	$661.54M	13.97	9.01%	0.82%	13.41%	41.78%
HTBK	78 Outperform	$767.88M	17.77	6.26%	4.15%	8.23%	-0.07%
ALRS	76 Outperform	$568.14M	10.65	11.37%	3.71%	42.22%	1207.84%
HIFS	69 Neutral	$639.47M	14.56	10.23%	0.84%	8.26%	94.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MOFG	64 Neutral	$829.23M	14.01	10.01%	2.41%	89.00%	―

Midwestone Financial Group Corporate Events

Midwestone Financial Group Announces Merger with Nicolet

On October 23, 2025, MidWestOne Financial Group, Inc. and Nicolet Bankshares, Inc. announced a merger agreement where MidWestOne will merge into Nicolet in an all-stock transaction valued at approximately $864 million. This merger will create one of the largest community banks in the Upper Midwest with over $15 billion in assets, enhancing their market presence and operational scale. The merger is expected to close in the first half of 2026, subject to customary closing conditions, and will result in MidWestOne shareholders owning 30% of the combined company.

MidWestOne Financial to Announce Q3 2025 Results

On October 10, 2025, MidWestOne Financial Group, Inc. announced it will release its third quarter 2025 financial results after the market closes on October 23, 2025. The company will host a conference call on October 24, 2025, to discuss these results, providing stakeholders with insights into its recent activities and financial performance.