tiprankstipranks
Trending News
More News >
Midwestone Financial Group (MOFG)
NASDAQ:MOFG
US Market
Advertisement

Midwestone Financial Group (MOFG) AI Stock Analysis

Compare
148 Followers

Top Page

MOFG

Midwestone Financial Group

(NASDAQ:MOFG)

Rating:56Neutral
Price Target:
$30.00
▲(5.15% Upside)
MidWestOne Financial Group's overall stock score reflects significant financial challenges, particularly in profitability and revenue growth. While technical indicators and valuation present a neutral to slightly negative outlook, the earnings call and corporate events provide some positive sentiment and strategic optimism. The company's ability to manage expenses and focus on strategic initiatives offers a potential path to improvement.

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

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 generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees for various financial services. Key revenue streams include interest earned on commercial and consumer loans, mortgage originations, and deposits. Additionally, MOFG earns non-interest income through wealth management services, insurance commissions, and service fees associated with deposit accounts. The company may also benefit from partnerships with other financial institutions or businesses that enhance its service offerings and customer reach, contributing to its overall financial performance.

Midwestone Financial Group Earnings Call Summary

Earnings Call Date:Jul 25, 2025
(Q2-2025)
|
% Change Since: 1.89%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with solid loan growth, fee income improvements, and strategic talent acquisitions. However, a significant nonaccrual loan impacted asset quality metrics. Despite this challenge, the company shows strong underlying earnings momentum and improved asset quality metrics.
Q2-2025 Updates
Positive Updates
Solid Loan Growth and Net Interest Margin Expansion
MidWestOne achieved a solid loan growth of 7.4%, contributing to a 13 basis point expansion in tax equivalent net interest margin and a 5% linked quarter net interest income growth.
Strong Performance in Fee Income Businesses
Wealth management revenues increased by 5% linked quarter, and SBA originations and gain on sale exceeded expectations. Year-to-date, SBA fee income is double compared to the same period last year.
Strategic Talent Acquisitions
The company made significant commercial banker hires in the Twin Cities and Denver, enhancing its talent base to support future growth.
Improved Asset Quality Metrics
Despite a significant loan moving to nonaccrual, the criticized asset ratio decreased by 32 basis points, and net charge-offs were only 2 basis points, indicating improved asset quality metrics.
Negative Updates
Significant Nonaccrual Loan Impact
A $24 million Twin Cities suburban CRE office loan moved to nonaccrual, significantly impacting asset quality and increasing the allowance for credit losses ratio to 1.50%.
Slight Decline in Total Assets
Total assets declined slightly due to decreased cash balances and lower securities volumes, partially offset by increased loan volumes.
Company Guidance
During the MidWestOne Financial Group's second quarter 2025 earnings call, the company provided several key metrics and forward-looking guidance. The bank reported a solid loan growth of 7.4%, contributing to a 13 basis point expansion in their tax equivalent net interest margin, which reached 3.57%, and a 5% linked quarter net interest income growth. The bank expects mid-single-digit loan growth for the remainder of 2025, supported by recent talent acquisitions in the Twin Cities and Denver. Wealth management revenues rose by 5% linked quarter, while SBA fee income doubled compared to the previous year, positioning MidWestOne in the top 10% nationally for SBA 7(a) production. Despite a single $24 million nonaccrual loan impacting asset quality and increasing the allowance for credit losses ratio to 1.50%, overall asset quality metrics improved, with a criticized asset ratio decreasing by 32 basis points. The bank also revised its 2025 annual expense guidance to a range of $146 million to $148 million, reflecting recent talent investments. Net income for the quarter was $10 million, or $0.48 per diluted share, with a CET1 ratio of 11.02% as of June 30, 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
45
Neutral
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.
Balance Sheet
55
Neutral
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.
Cash Flow
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue206.03M268.04M244.28M219.22M223.41M
Gross Profit60.51M156.75M209.38M206.07M163.22M
EBITDA-76.29M37.41M86.76M91.04M17.88M
Net Income-60.29M20.86M60.84M69.49M6.62M
Balance Sheet
Total Assets6.24B6.43B6.58B6.03B5.56B
Cash, Cash Equivalents and Short-Term Investments1.53B871.37M1.24B2.49B1.74B
Total Debt116.56M138.56M531.08M336.25M439.48M
Total Liabilities5.68B5.90B6.09B5.50B5.04B
Stockholders Equity559.70M524.38M492.79M527.48M515.25M
Cash Flow
Free Cash Flow60.78M58.52M87.67M109.54M7.03M
Operating Cash Flow63.18M62.57M90.33M111.55M9.16M
Investing Cash Flow312.30M129.73M-273.27M-428.32M-867.44M
Financing Cash Flow-252.32M-197.01M65.55M437.94M867.46M

Midwestone Financial Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.53
Price Trends
50DMA
28.79
Positive
100DMA
28.42
Positive
200DMA
29.39
Positive
Market Momentum
MACD
0.11
Negative
RSI
63.13
Neutral
STOCH
64.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOFG, the sentiment is Positive. The current price of 28.53 is above the 20-day moving average (MA) of 28.16, below the 50-day MA of 28.79, and below the 200-day MA of 29.39, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 63.13 is Neutral, neither overbought nor oversold. The STOCH value of 64.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$667.00M12.7913.01%2.55%20.43%1.84%
78
Outperform
$750.76M11.679.72%0.21%9.96%-0.17%
76
Outperform
$687.61M11.4810.60%0.91%2.03%4.81%
74
Outperform
$618.22M10.5611.29%1.62%11.79%17.30%
73
Outperform
$690.51M11.8611.69%2.31%9.68%13.46%
68
Neutral
$17.56B11.6110.34%3.76%9.69%0.41%
56
Neutral
$590.96M-9.58%3.20%-35.26%-305.96%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MOFG
Midwestone Financial Group
30.29
1.71
5.98%
CCBG
Capital City Bank
42.96
9.79
29.51%
SMBC
Southern Missouri Bancorp
58.00
0.88
1.54%
HTB
Hometrust Bancshares
41.33
6.09
17.28%
MCB
Metropolitan Bank Holding
76.92
24.91
47.89%
FSBC
Five Star
32.61
3.60
12.41%

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.Date of analysis: Aug 13, 2025