Midwestone Financial Group (MOFG) AI Stock Analysis

• Market Cap: $822.89M
• Dividend Yield: 2.46%
• Average Volume (3M): 265.64K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.98
• 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: 24.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $40.00 ▼(-0.25% Downside)

The score is held back mainly by weak current financial performance (declining revenue and negative profitability/ROE). Offsetting this, the latest earnings call around the merger outlined strong expected EPS accretion and cost savings, while valuation is reasonable and technicals are broadly neutral with mixed momentum.

Positive Factors

Scale & market position from merger

Combining franchises expands geographic footprint, deposit base and lending scale, improving competitive positioning and cross-sell opportunities. Greater scale should drive more stable revenues, diversified loan exposures and stronger local market share over the next several quarters and beyond.

Projected EPS accretion and cost savings

Large projected EPS accretion and material pre-tax cost savings, if realized, can sustainably boost profitability margins and cash generation. That enhances ability to fund investments, dividends or further M&A, and materially improves long-term earnings power versus the standalone trajectory.

Improving leverage management

Stronger leverage metrics and improved debt-to-equity reduce financial risk and increase capital flexibility. A healthier balance sheet supports lending capacity, withstands cyclical shocks, and provides room for strategic investments or integration costs without immediate capital raises.

Negative Factors

Declining revenue and negative profitability

Persistent revenue decline and negative margins indicate structural weaknesses in core franchise economics. This undermines internal capital generation, pressures reserves and limits reinvestment capacity, making long-term recovery dependent on successful strategic execution or accretive M&A.

Negative return on equity

A negative ROE signals the company is not converting equity into profitable growth, eroding shareholder value. Over months this constrains access to capital, increases pressure for remediation (cost cuts, divestitures, or mergers) and reduces investor confidence in management's capital allocation.

Regulatory interchange hit and integration timing risk

Crossing the regulatory threshold triggers a durable ~$8.5M interchange revenue loss beginning 2027, directly reducing recurring fee income. Coupled with delayed system conversion and phased cost-savings, this creates a multi-year profitability drag and execution risk that can hamper the merger's expected benefits.

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: Positive
• Last Price: 40.10
• 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 Positive. The current price of 40.1 is above the 20-day moving average (MA) of 39.79, above the 50-day MA of 39.43, and above the 200-day MA of 31.29, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 54.53 is Neutral, neither overbought nor oversold. The STOCH value of 70.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MOFG.

Midwestone Financial Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMBC	80 Outperform	$677.67M	10.95	11.54%	1.59%	9.34%	25.21%
HTBK	78 Outperform	$753.53M	17.59	6.26%	4.16%	8.23%	-0.07%
ALRS	70 Outperform	$599.88M	11.38	11.37%	3.71%	42.22%	1207.84%
HIFS	69 Neutral	$611.93M	13.36	10.23%	0.84%	8.26%	94.53%
SMBK	69 Neutral	$645.19M	13.86	9.01%	0.84%	13.41%	41.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MOFG	56 Neutral	$822.89M	14.27	10.01%	2.46%	89.00%	―

Midwestone Financial Group Corporate Events

MidWestOne Financial Group Declares Quarterly Cash Dividend

MidWestOne Financial Group, a banking and financial services company, announced that on January 6, 2026, a sub-committee of its board of directors declared a cash dividend of $0.2425 per common share. The dividend is scheduled to be paid on January 30, 2026, to shareholders of record as of the close of business on January 16, 2026, underscoring the company’s ongoing capital return to shareholders and providing income to its investor base.

The most recent analyst rating on (MOFG) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Midwestone Financial Group stock, see the MOFG Stock Forecast page.

MidWestOne Updates Merger Proxy Golden Parachute Disclosures

On December 19, 2025, Nicolet Bankshares, Inc. and MidWestOne Financial Group, Inc. disclosed that their jointly filed proxy statement-prospectus for the planned merger contained an error in the “Total” column of the golden parachute compensation table for MidWestOne’s named executive officers, and issued a corrected version showing revised aggregate cash, equity and perquisite figures. The updated disclosure, prepared under SEC Regulation S-K Item 402(t), clarifies the estimated merger-related payments for each senior executive under assumed conditions, including a February 13, 2026 closing date, a $37.65 share price and qualifying post-merger terminations, and is intended to ensure shareholders have accurate information as they consider a non-binding advisory vote on executive merger-related compensation and the broader transaction.

The most recent analyst rating on (MOFG) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Midwestone Financial Group stock, see the MOFG Stock Forecast page.

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.

The most recent analyst rating on (MOFG) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Midwestone Financial Group stock, see the MOFG Stock Forecast page.