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Midwestone Financial Group (MOFG)
NASDAQ:MOFG
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Midwestone Financial Group
(NASDAQ:MOFG)
Rating:54Neutral
Price Target:
$29.00
▲(3.61%Upside)
Midwestone Financial Group (MOFG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$608.48M
Dividend Yield3.46%
Average Volume (3M)89.12K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth-27.65%
EPS Growth-343.61%
CountryUS
Employees757
SectorFinancial
Sector Strength73
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.73
Shares Outstanding20,817,043
10 Day Avg. Volume102,741
30 Day Avg. Volume89,121
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.01
Price to Sales (P/S)0.00
P/FCF Ratio5.67
Enterprise Value/Market Cap1.55
Enterprise Value/Revenue1.42
Enterprise Value/Gross Profit14.83
Enterprise Value/Ebitda-4.03
Forecast
1Y Price Target
$35.50Price Target Upside26.83% 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 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:Apr 24, 2025
(Q1-2025)
| % Change Since: -0.82%|
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.Q1-2025 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview
Summary
MidWestOne Financial Group faces several financial challenges, particularly in profitability and revenue growth. While the balance sheet remains stable with low leverage, the income statement highlights operational and profitability issues. Cash flow remains a strength, with consistent positive free cash flow providing some stability.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 | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 175.31M | 206.03M | 156.75M | 209.38M | 198.73M | 223.03M | Gross Profit |
| 63.48M | 69.29M | 162.59M | 213.88M | 198.73M | 191.58M | EBIT |
| 28.59M | -83.99M | 24.83M | 94.83M | 89.48M | 13.32M | EBITDA |
| -77.47M | -76.29M | 37.41M | 86.76M | 91.04M | 17.88M | Net Income Common Stockholders |
| -48.42M | -60.29M | 20.86M | 60.84M | 69.49M | 6.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.56B | 1.53B | 871.37M | 1.24B | 2.49B | 1.74B | Total Assets |
| 6.25B | 6.24B | 6.43B | 6.58B | 6.03B | 5.56B | Total Debt |
| 112.88M | 116.56M | 418.50M | 531.08M | 336.25M | 439.48M | Net Debt |
| 44.34M | 44.76M | 336.78M | 444.65M | 132.42M | 356.99M | Total Liabilities |
| 5.67B | 5.68B | 5.90B | 6.09B | 5.50B | 5.04B | Stockholders Equity |
| 579.63M | 559.70M | 524.38M | 492.79M | 527.48M | 515.25M |
| Cash Flow | Free Cash Flow | ||||
| 60.08M | 60.78M | 58.52M | 87.67M | 109.54M | 7.03M | Operating Cash Flow |
| 61.17M | 63.18M | 62.57M | 90.33M | 111.55M | 9.16M | Investing Cash Flow |
| 386.10M | 312.30M | 129.73M | -273.27M | -428.32M | -867.44M | Financing Cash Flow |
| -295.23M | -252.32M | -197.01M | 65.55M | 437.94M | 867.46M |
Midwestone Financial Group Technical Analysis
Negative
27.99
Price Trends
28.03
Negative
29.05
Negative
29.16
Negative
Market Momentum
0.11
Positive
43.62
Neutral
57.49
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 27.99 is below the 20-day moving average (MA) of 28.79, below the 50-day MA of 28.03, and below the 200-day MA of 29.16, indicating a bearish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 43.62 is Neutral, neither overbought nor oversold. The STOCH value of 57.49 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $682.03M | 10.82 | 9.47% | ― | 14.53% | -2.85% | |
78 Outperform | $578.24M | 11.92 | 13.78% | 2.96% | 17.35% | -13.53% | |
77 Outperform | $626.77M | 10.92 | 11.83% | 2.61% | 8.13% | 11.18% | |
74 Outperform | $637.01M | 11.21 | 9.96% | 1.36% | 5.23% | -7.72% | |
73 Outperform | $609.41M | 10.51 | 11.12% | 1.76% | 13.48% | 8.31% | |
64 Neutral | $12.77B | 9.71 | 7.85% | 78.06% | 12.07% | -7.97% | |
54 Neutral | $608.48M | ― | -8.74% | 3.46% | -27.65% | -343.61% |
* Financial Sector Average
Performance Comparison
MOFG
Midwestone Financial Group
27.99
7.78
38.50%
CCBG
Capital City Bank
36.75
10.22
38.52%
SMBC
Southern Missouri Bancorp
52.34
11.97
29.65%
HTB
Hometrust Bancshares
35.33
7.63
27.55%
MCB
Metropolitan Bank Holding
63.98
25.00
64.14%
FSBC
Five Star
27.07
4.86
21.88%
Midwestone Financial Group Corporate Events
Business Operations and Strategy
MidWestOne Financial Group Schedules Investor Presentations
Neutral
Apr 28, 2025
MidWestOne Financial Group announced that its executive officers will present to institutional investors during the second quarter of 2025. The presentations aim to provide insights into the company’s operations and market positioning, potentially impacting investor perceptions and stakeholder interests. The materials for these presentations are available on the company’s website, reflecting MidWestOne’s commitment to transparency and engagement with the investment community.
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.
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.