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Midwestone Financial Group (MOFG)
NASDAQ:MOFG
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Midwestone Financial Group
(NASDAQ:MOFG)
Rating:51Neutral
Price Target:
$29.00
▲(5.30%Upside)
Midwestone Financial Group (MOFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$571.99M
Dividend Yield3.52%
Average Volume (3M)157.69K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-35.27%
EPS Growth-305.95%
CountryUS
Employees757
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.48
Shares Outstanding20,769,577
10 Day Avg. Volume118,250
30 Day Avg. Volume157,695
Financial Highlights & Ratios
PEG Ratio0.74
Price to Book (P/B)1.00
Price to Sales (P/S)0.00
P/FCF Ratio9.86
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit7.24
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$34.50Price Target Upside25.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Midwestone Financial Group Business Overview & Revenue Model
Company DescriptionMidwestone Financial Group (MOFG) is a financial services company headquartered in Iowa City, Iowa. It operates primarily through its wholly-owned subsidiary, MidWestOne Bank. The company provides a wide range of financial products and services, including personal and commercial banking, mortgage lending, wealth management, and insurance services. Its operations are concentrated mainly in the Midwest region of the United States, serving individuals, businesses, and government entities.
How the Company Makes MoneyMidwestone Financial Group makes money through various revenue streams primarily associated with its banking operations. The company earns interest income from loans extended to individuals and businesses, including mortgages, personal loans, and commercial loans. Additionally, it generates non-interest income from service charges on deposit accounts, fees from other financial services such as wealth management and insurance, and gains from the sale of loans and securities. The company also benefits from its strategic partnerships with local businesses and community organizations, which help expand its customer base and enhance its service offerings. Key factors contributing to its earnings include interest rate fluctuations, credit quality, and economic conditions affecting the Midwest region.
Midwestone Financial Group Earnings Call Summary
Earnings Call Date:Jul 25, 2025
(Q2-2025)
| % Change Since: -1.64%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While the company demonstrated strong loan and interest income growth, as well as improvements in wealth management and SBA performance, these positives were offset by a significant issue with a CRE loan, which impacted asset quality and raised credit loss provisions. Despite these challenges, the company continues to manage expenses well and has successfully acquired new talent to drive future growth.Q2-2025 Updates
Positive Updates
Loan and Net Interest Income Growth
Solid loan growth of 7.4% and a 13 basis point expansion in the tax equivalent net interest margin resulted in 5% linked quarter net interest income growth.
Wealth Management and SBA Performance
Wealth management revenues increased by 5% linked quarter, and SBA fee income doubled year-to-date compared to the same period last year. MidWestOne is now in the top 10% nationally for SBA 7(a) production.
New Talent Acquisition
Significant hires in the Twin Cities and Denver, including commercial bankers and wealth management professionals, are expected to positively impact the organization.
Strong Core Net Interest Margin
Core net interest margin expanded by 13 basis points to 3.49%, largely due to higher earning asset yields and lower interest-bearing liabilities costs.
Expense Management
Noninterest expenses decreased by $0.5 million from the linked quarter, driven by receipt of $1.1 million in tax credit funds and decreased data processing expenses.
Negative Updates
Significant CRE Loan Issue
Asset quality was impacted by a single $24 million Twin Cities suburban CRE office loan that moved to nonaccrual, increasing the allowance for credit losses ratio to 1.50% and significantly raising quarterly credit loss expense.
Decline in Total Assets
Total assets declined slightly due to decreased cash balances and lower securities volumes.
Deposit Challenges
End-of-period deposits were down slightly, and average deposits remained flat.
Provision for Credit Losses
A significant provision was made for credit losses due to the CRE loan issue, affecting net income.
Company Guidance
During the MidWestOne Financial Group's second quarter 2025 earnings call, the company provided detailed guidance on various performance metrics. The bank reported a 7.4% increase in solid loan growth, which, along with disciplined balance sheet management and back book loan repricing, contributed to a 13 basis point expansion in the tax equivalent net interest margin. The net interest income grew by 5% linked quarter. Wealth management revenues increased by 5% linked quarter, and SBA originations exceeded expectations. Despite a notable $24 million loan moving to nonaccrual status, which impacted asset quality and net income, the criticized asset ratio improved by 32 basis points, and the net charge-offs were just 2 basis points. The allowance for credit losses ratio increased to 1.50% due to a specific reserve established for the nonaccrual loan. The company also revised its annual expense guidance to a range of $146 million to $148 million, reflecting recent talent investments. Overall, the bank remains optimistic about its strategic initiatives and growth prospects for the remainder of 2025.Midwestone Financial Group Financial Statement Overview
Summary
MidWestOne Financial Group is facing profitability challenges with negative net and EBIT margins, though its balance sheet shows stability with low leverage. Cash flow is a strength, with positive free cash flow providing stability despite revenue decline.Income Statement
The income statement reveals some challenges for MidWestOne Financial Group. Gross profit margin is stable, but the net profit margin is negative for the TTM (Trailing-Twelve-Months), indicating losses. The revenue growth rate is declining, with a decrease in total revenue over recent periods. EBIT margin is also negative, highlighting operational inefficiencies. The negative EBITDA margin further underscores financial difficulties.45
Neutral
Balance Sheet
The balance sheet presents a mixed picture. The debt-to-equity ratio is relatively low, suggesting manageable leverage. However, the return on equity (ROE) is negative due to the net loss, indicating poor profitability. The equity ratio is consistent, reflecting stability in the capital structure despite recent earnings challenges.55
Neutral
Cash Flow
Cash flow analysis shows some resilience. The operating cash flow to net income ratio is strong, indicating good cash conversion despite net losses. Free cash flow is positive and stable, which is a positive aspect. However, the free cash flow growth rate shows little change, reflecting stagnant cash generation capacity.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 206.03M | 268.04M | 244.28M | 219.22M | 223.41M |
| Gross Profit | 60.51M | 156.75M | 209.38M | 206.07M | 163.22M |
| EBITDA | -76.29M | 37.41M | 86.76M | 91.04M | 17.88M |
| Net Income | -60.29M | 20.86M | 60.84M | 69.49M | 6.62M |
Balance Sheet | |||||
| Total Assets | 6.24B | 6.43B | 6.58B | 6.03B | 5.56B |
| Cash, Cash Equivalents and Short-Term Investments | 1.53B | 871.37M | 1.24B | 2.49B | 1.74B |
| Total Debt | 116.56M | 138.56M | 531.08M | 336.25M | 439.48M |
| 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 | 60.78M | 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
Negative
27.54
Price Trends
28.94
Negative
28.54
Negative
29.40
Negative
Market Momentum
-0.31
Positive
36.15
Neutral
27.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOFG, the sentiment is Negative. The current price of 27.54 is below the 20-day moving average (MA) of 29.49, below the 50-day MA of 28.94, and below the 200-day MA of 29.40, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 27.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $642.75M | 12.32 | 13.01% | 2.58% | 20.43% | 1.84% | |
77 Outperform | $751.96M | 11.42 | 9.72% | 0.21% | 9.96% | -0.17% | |
76 Outperform | $681.93M | 11.34 | 10.63% | 0.61% | 2.03% | 5.15% | |
74 Outperform | $611.21M | 10.44 | 11.29% | 1.70% | 11.79% | 17.30% | |
71 Outperform | $675.21M | 11.60 | 11.69% | 2.34% | 9.58% | 13.46% | |
67 Neutral | $17.78B | 11.60 | 9.11% | 3.88% | 10.92% | -3.96% | |
51 Neutral | $571.99M | ― | -9.58% | 3.52% | -35.27% | -305.95% |
* Financial Sector Average
Performance Comparison
MOFG
Midwestone Financial Group
26.73
0.46
1.75%
CCBG
Capital City Bank
39.59
7.19
22.19%
SMBC
Southern Missouri Bancorp
52.47
0.98
1.90%
HTB
Hometrust Bancshares
38.15
5.30
16.13%
MCB
Metropolitan Bank Holding
68.76
23.02
50.33%
FSBC
Five Star
30.09
3.76
14.28%
Midwestone Financial Group Corporate Events
Private Placements and Financing
Midwestone Financial Redeems $65M Subordinated Notes
Neutral
Jul 31, 2025
On July 30, 2025, MidWestOne Financial Group, Inc. redeemed its $65.0 million 5.75% Fixed-to-Floating Rate Subordinated Notes due 2030. This redemption was completed using a combination of cash on hand and proceeds from a $50.0 million senior term note, which closed on July 29, 2025, and is structured with a 5-year maturity and 7-year amortization, bearing interest at a floating rate.
The most recent analyst rating on (MOFG) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Midwestone Financial Group stock, see the MOFG Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
MidWestOne Financial Group Plans Q3 Investor Presentations
Neutral
Jul 25, 2025
MidWestOne Financial Group announced that its executive officers will present to institutional investors during the third quarter of 2025. This initiative aims to engage with investors and provide insights into the company’s operations and financial performance. The presentations are part of MidWestOne’s efforts to strengthen its market position and communicate its growth strategies to stakeholders.
The most recent analyst rating on (MOFG) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Midwestone Financial Group stock, see the MOFG Stock Forecast page.
Executive/Board ChangesDividendsFinancial Disclosures
Midwestone Financial Group Announces Board Resignation and Dividend
Positive
Jul 24, 2025
On July 22, 2025, Dr. Azeemuddin Ahmed resigned from the Board of Directors of MidWestOne Financial Group and its subsidiary, MidWestOne Bank, without any disagreements with the company. The same day, the Board amended the company’s bylaws to allow flexibility in extending a director’s service and declared a cash dividend of $0.2425 per common share, payable on September 16, 2025. MidWestOne Financial Group reported a 15% increase in pre-tax, pre-provision net revenue for the second quarter of 2025, with a net income of $10 million despite a credit loss expense due to a single commercial real estate office credit. The company saw improvements in its criticized loans ratio and allowance for credit losses ratio, and it continues to focus on strategic initiatives to enhance its community banking services.
The most recent analyst rating on (MOFG) stock is a Buy with a $39.00 price target. To see the full list of analyst forecasts on Midwestone Financial Group stock, see the MOFG Stock Forecast page.
Financial Disclosures
Midwestone Financial Group to Release Q2 2025 Results
Neutral
Jul 11, 2025
On July 11, 2025, MidWestOne Financial Group, Inc. announced it will release its second quarter 2025 financial results after market close on July 24, 2025. A conference call to discuss these results will be held on July 25, 2025, at 11:00 a.m. Central Time. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s recent activities and financial performance, potentially impacting its market positioning and investor relations.
The most recent analyst rating on (MOFG) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on Midwestone Financial Group stock, see the MOFG Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.