MidWestOne Financial Group, Inc. (Form: 8-K, Received: 04/27/2023 16:46:29)

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) April 27, 2023

MidWestOne Financial Group, Inc.

(Exact name of registrant as specified in its charter)

Commission file number 001-35968


Iowa						42-1206172
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification Number)

102 South Clinton Street

Iowa City, Iowa 52240

(Address of principal executive offices, including zip code)

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $1.00 par value

MOFG

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On April 27, 2023, MidWestOne Financial Group, Inc. (the “Company”) issued a press release announcing its earnings for the three months ended March 31, 2023. The press release is furnished herewith as Exhibit 99.1. In addition, the Company is providing a financial supplement furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information in this item and the attached press release and financial supplement shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 8.01. Other Events.

The Board of Directors of the Company declared a cash dividend of $0.2425 per common share on April 27, 2023. The dividend is payable June 15, 2023, to shareholders of record at the close of business on June 1, 2023.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.



99.1						MidWestOne Financial Group, Inc. press release dated April 27, 2023
99.2						MidWestOne Financial Group, Inc. financial supplement dated April 27, 2023
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

MIDWESTONE FINANCIAL GROUP, INC.

Dated:

April 27, 2023

By:

/s/ BARRY S. RAY

Barry S. Ray

Chief Financial Officer


FOR IMMEDIATE RELEASE						April 27, 2023

MIDWESTONE FINANCIAL GROUP, INC. REPORTS

FINANCIAL RESULTS FOR THE

FIRST QUARTER OF 2023

~Announces Strategic Plan and Financial Targets~

~Repositioning of the Company's Balance Sheet Provides Earnings, Margin and Return Accretion~

Iowa City, Iowa - MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported results for the first quarter of 2023.

First Quarter 2023 Highlights1

•Net income of $1.4 million, or $0.09 per diluted common share, compared to net income of $16.0 million, or $1.02 per diluted common share, for the linked quarter. Excluding the loss from the balance sheet repositioning, adjusted earnings for the first quarter were $11.2 million2, or $0.72 per diluted common share.

•Executed the sale of $231 million in book value of available for sale debt securities as part of a balance sheet repositioning, resulting in a pre-tax loss of $13.2 million.

•Total uninsured deposits, excluding collateralized municipal deposits, represent approximately 18.5% of total deposits.

•Strong liquidity position, with $1.7 billion of available borrowing capacity from the FHLB, Federal Reserve Discount Window and Bank Term Funding Program, and unsecured sources.

•Annualized loan growth was 8.6% and remains centered in our targeted metro markets of the Twin Cities, Denver and Metro Iowa.

•Nonperforming assets ratio improved 1 basis point ("bps") to 0.23%; net charge-off ratio of 0.03%.

•Efficiency ratio was 62.32%2.

•Common equity tier 1 capital to risk-weighted assets ratio improved 11 bps.

•Subsequent to quarter end, the Board of Directors declared a cash dividend of $0.2425 per common share.

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "Despite a difficult operating environment, exacerbated by March’s banking turmoil, we made significant progress executing on our initial strategic priorities. After the actions taken in the fourth quarter of 2022 to improve our credit, our asset quality metrics further improved in the first quarter of 2023, positioning the Bank well for the uncertain macroeconomic outlook. Importantly, we have low exposure to the higher risk areas in the market, such as the office sector of commercial real estate. Additionally, we took strategic action in late February to reduce the Company’s liability sensitivity as we executed the sale of $231.0 million of available for sale debt securities, resulting in $220.0 million of proceeds used to pay off high-cost FHLB borrowings and reinvest in higher yielding, floating rate securities. The transaction positions our balance sheet more favorably, improves our future earnings profile, enhances our already strong liquidity profile, and, importantly, our capital ratios still improved as compared to the linked quarter.”

Mr. Reeves continued, “Our core, granular deposit franchise also performed well given the concerns that swept the sector in the aftermath of Silicon Valley Bank’s ("SVB") failure. While we experienced $154.0 million of deposit outflows, excluding brokered deposits, in the quarter, $120.0 million occurred in January, which is a typical, seasonal low. Subsequent to the SVB failure and through the end of the first quarter, deposits grew $3.7 million. At quarter end, our total uninsured deposits, excluding collateralized municipal deposits, were approximately 18.5% and we have $1.7 billion of available borrowing capacity through the FHLB, Federal Reserve and the Bank Term

1 First Quarter Summary compares to the fourth quarter of 2022 (the "linked quarter") unless noted.

2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

Funding Program, and unsecured sources, which covers our uninsured deposit base. We believe we are in a strong liquidity position.”

Mr. Reeves concluded, “Looking forward, I could not be more excited for what lies ahead for our Company, employees, customers, and shareholders. Today, we have launched a strategic plan designed to unleash the potential that exists within MidWestOne as we strive to become a high performing bank with consistent performance. Importantly, none of this would be possible without our talented team members and their continued focus on our customers and communities. I am so proud of their hard work through what has been a very challenging two months in our industry."

The Company has launched a strategic plan focused on five pillars designed to improve the performance of the Bank, including (1) driving a performance-oriented culture, (2) protecting the Bank’s core community bank franchise, (3) accelerating the growth of the Bank’s commercial and wealth management businesses, (4) expanding into specialty commercial segments, and (5) optimizing the Bank’s operational effectiveness and efficiency. Management will remain prudent through the execution of the plan with a strict focus on risk management with further investments in credit administration, a key enabler to the plan.

The goal of the plan is to exit 2025 with:

•12% annual earnings per share growth

•A return on average assets of 1.10 – 1.20%

•10% annual tangible book value growth

•An efficiency ratio of 55 - 57%

Further details on the strategic plan and quarterly results can be found in the Company’s first quarter 2023 earnings supplemental presentation located on the investor relations section of the Company’s website located at www.midwestonefinancial.com.


	As of or for the quarter ended
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share amounts and as noted)	2023			2022			2022
Financial Results


Revenue	$	36,030		$	54,504		$	48,980
Credit loss expense	933			572			—
Noninterest expense	33,319			34,440			31,643


Net income	1,397			16,002			13,895
Per Common Share
Diluted earnings per share	$	0.09		$	1.02		$	0.88
Book value	31.94			31.54			32.15
Tangible book value(1)	26.13			25.60			26.98
Balance Sheet & Credit Quality
Loans In millions	$	3,919.4		$	3,840.5		$	3,250.0
Investment securities In millions	2,071.8			2,283.0			2,349.9
Deposits In millions	5,555.2			5,468.9			5,077.7
Net loan charge-offs In millions	0.3			3.5			2.2
Allowance for credit losses ratio	1.27		%	1.28		%	1.42		%
Selected Ratios
Return on average assets	0.09		%	0.97		%	0.95		%
Net interest margin, tax equivalent(1)	2.75		%	2.93		%	2.79		%
Return on average equity	1.14		%	13.26		%	10.74		%
Return on average tangible equity(1)	2.70		%	17.85		%	13.56		%
Efficiency ratio(1)	62.32		%	57.79		%	60.46		%

(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.


Revenue							Change		Change
							1Q23 vs		1Q23 vs
(Dollars in thousands)	1Q23		4Q22		1Q22		4Q22		1Q22
Net interest income	$	40,076	$	43,564	$	37,336	(8)	%	7	%
Noninterest (loss) income	(4,046)		10,940		11,644		n / m		n / m
Total revenue, net of interest expense	$	36,030	$	54,504	$	48,980	(34)	%	(26)	%

Results are not meaningful (n/m)

Total revenue for the first quarter of 2023 decreased $18.5 million from the fourth quarter of 2022 as a result of lower net interest income and noninterest income. Compared to the first quarter of 2022, total revenue decreased $13.0 million primarily due to lower noninterest income. When excluding the loss of $13.2 million from the balance sheet repositioning, total revenue for the first quarter of 2023 was $49.2 million, a decline of $5.3 million from the fourth quarter of 2022 and an increase of $0.2 million from the first quarter of 2022.

Net interest income of $40.1 million for the first quarter of 2023 decreased from $43.6 million in the fourth quarter of 2022, due primarily to two fewer days in the quarter and higher funding costs and volumes, partially offset by higher interest earning asset yields and volumes. Compared to the first quarter of 2022, net interest income increased $2.8 million as a result of higher interest earning asset yields and volumes, partially offset by higher funding costs and volumes.

The Company's tax equivalent net interest margin was 2.75% in the first quarter of 2023 compared to 2.93% in the fourth quarter of 2022, as higher earning asset yields were more than offset by increased funding costs. The cost of interest bearing liabilities increased 51 bps to 1.59%, due to interest bearing deposit costs of 1.38%, short-term borrowing costs of 2.82%, and long-term debt costs of 6.19%, which increased 55 bps, 28 bps and 65 bps, respectively from the fourth quarter of 2022. Total interest earning assets yield increased 23 bps primarily as a result of an increase in loan and securities yields of 29 bps and 5 bps, respectively. Our cycle-to-date interest bearing deposit beta was 24%.

The net interest margin was 2.75% in the first quarter of 2023 compared to 2.79% in the first quarter of 2022, driven by higher funding costs, partially offset by higher interest earning asset yields. The cost of interest bearing liabilities increased 117 bps to 1.59%, due to interest bearing deposit costs of 1.38%, short-term borrowing costs of 2.82%, and long-term debt costs of 6.19%, which increased 109 bps, 252 bps and 189 bps, respectively from the first quarter of 2022. Total interest earning assets yield increased 90 bps primarily as a result of an increase in loan and securities yields of 97 bps and 43 bps, respectively.


Noninterest (Loss) Income							Change		Change
							1Q23 vs		1Q23 vs
(In thousands)	1Q23		4Q22		1Q22		4Q22		1Q22
Investment services and trust activities	$	2,933	$	2,666	$	3,011	10	%	(3)	%
Service charges and fees	2,008		2,028		1,657		(1)	%	21	%
Card revenue	1,748		1,784		1,650		(2)	%	6	%
Loan revenue	1,420		966		4,293		47	%	(67)	%
Bank-owned life insurance	602		637		531		(5)	%	13	%

Investment securities (losses) gains, net	(13,170)		(1)		40		n / m		n / m
Other	413		2,860		462		(86)	%	(11)	%
Total noninterest (loss) income	$	(4,046)	$	10,940	$	11,644	n / m		n / m

Noninterest income for the first quarter of 2023 decreased $15.0 million from the linked quarter and $15.7 million from the first quarter of 2022, primarily due to investment security losses of $13.2 million related to the Company's balance sheet repositioning. In addition, noninterest income declined from the comparative periods due to the following factors: (1) the fourth quarter of 2022 benefited from a nonrecurring bargain purchase gain of $2.5 million and (2) the first quarter of 2022 benefited from a larger increase in the fair value of our mortgage servicing rights, as well as a larger gain on sale from residential mortgage loans as a result of higher mortgage origination volumes.


Noninterest Expense							Change		Change
							1Q23 vs		1Q23 vs
(In thousands)	1Q23		4Q22		1Q22		4Q22		1Q22
Compensation and employee benefits	$	19,607	$	20,438	$	18,664	(4)	%	5	%
Occupancy expense of premises, net	2,746		2,663		2,779		3	%	(1)	%
Equipment	2,171		2,327		1,901		(7)	%	14	%
Legal and professional	1,736		1,846		2,353		(6)	%	(26)	%
Data processing	1,363		1,375		1,231		(1)	%	11	%
Marketing	986		947		1,029		4	%	(4)	%
Amortization of intangibles	1,752		1,770		1,227		(1)	%	43	%
FDIC insurance	749		405		420		85	%	78	%
Communications	261		285		272		(8)	%	(4)	%
Foreclosed assets, net	(28)		48		(112)		n / m		(75)	%
Other	1,976		2,336		1,879		(15)	%	5	%


Total noninterest expense	$	33,319	$	34,440	$	31,643	(3)	%	5	%


Merger-related Expenses

(In thousands)	1Q23		4Q22		1Q22
Compensation and employee benefits	$	70	$	189	$	—

Equipment	—		4		5
Legal and professional	—		54		63
Data processing	65		131		38
Marketing	—		2		7
Communications	—		—		1
Other	1		29		14
Total merger-related expenses	$	136	$	409	$	128

Noninterest expense for the first quarter of 2023 decreased $1.1 million, or 3.3%, from the linked quarter with overall decreases in all noninterest expense categories except occupancy, marketing and FDIC insurance. These decreases primarily reflected the decline in incentive compensation and merger-related expenses. Partially offsetting these decreases was an increase of $0.3 million in FDIC insurance premiums and $0.1 million in occupancy expense of premises, net. The decreases in net interest income and noninterest income noted above, partially offset by lower noninterest expense, were the primary drivers of the increase in the efficiency ratio, which increased 4.53% to 62.32% from 57.79% in the linked quarter.

Noninterest expense for the first quarter of 2023 increased $1.7 million, or 5.30%, from the first quarter of 2022 primarily due to increases of $0.9 million and $0.5 million in compensation and employee benefits and amortization of intangibles, respectively. The increases primarily reflected costs associated with the acquired operations of Iowa First Bancshares Corp. ("IOFB"), which closed in the second quarter of 2022. Partially offsetting the increases above was a decline of $0.6 million in legal and professional expenses stemming primarily from a reduction in legal expenses related to litigation and executive recruitment. The decline in noninterest income and the increase in noninterest expense noted above, partially offset by higher net interest income, were the primary drivers of the increase in the efficiency ratio, which increased 1.86 percentage points to 62.32% from 60.46% in the first quarter of 2022.

The Company's effective income tax rate increased to 21.4% in the first quarter of 2023 compared to 17.9% in the linked quarter. The increase was primarily due to a bargain purchase gain increase that was recorded in the fourth quarter of 2022 related to the IOFB acquisition, which did not recur in the first quarter of 2023. The effective income tax rate for the full year 2023 is expected to be in the range of 19.5% - 21.5%.

BALANCE SHEET REVIEW

Total assets were $6.41 billion at March 31, 2023 compared to $6.58 billion at December 31, 2022 and $5.96 billion at March 31, 2022. The decrease from December 31, 2022 was driven by lower securities balances as a result of the balance sheet repositioning. In comparison to March 31, 2022, the increase was due primarily to the IOFB assets acquired in the second quarter of 2022 and higher loan balances from organic loan growth.


Loans Held for Investment	March 31, 2023				December 31, 2022				March 31, 2022
	Balance		% of Total		Balance		% of Total		Balance		% of Total
(Dollars in thousands)
Commercial and industrial	$	1,080,514	27.6	%	$	1,055,162	27.5	%	$	898,942	27.7	%
Agricultural	106,641		2.7		115,320		3.0		94,649		2.9
Commercial real estate
Construction and development	320,924		8.2		270,991		7.1		193,130		5.9
Farmland	182,528		4.7		183,913		4.8		140,846		4.3
Multifamily	255,065		6.5		252,129		6.6		259,609		8.0
Other	1,290,454		33.0		1,272,985		33.1		1,130,306		34.8
Total commercial real estate	2,048,971		52.4		1,980,018		51.6		1,723,891		53.0
Residential real estate
One-to-four family first liens	448,459		11.4		451,210		11.7		331,883		10.2
One-to-four family junior liens	162,403		4.1		163,218		4.2		131,793		4.1
Total residential real estate	610,862		15.5		614,428		15.9		463,676		14.3
Consumer	72,377		1.8		75,596		2.0		68,877		2.1
Loans held for investment, net of unearned income	$	3,919,365	100.0	%	$	3,840,524	100.0	%	$	3,250,035	100.0	%

Total commitments to extend credit	$	1,205,902			$	1,190,607			$	1,034,843

Loans held for investment, net of unearned income, increased $78.8 million, or 2.1%, to $3.92 billion from $3.84 billion at December 31, 2022. This increase was driven by new loan production, draws on construction loans, and higher line of credit usage during the first quarter of 2023.


Investment Securities	March 31, 2023				December 31, 2022				March 31, 2022
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Available for sale	$	954,074	46.1	%	$	1,153,547	50.5	%	$	1,145,638	48.8	%
Held to maturity	1,117,709		53.9	%	1,129,421		49.5	%	1,204,212		51.2	%
Total investment securities	$	2,071,783			$	2,282,968			$	2,349,850

Investment securities at March 31, 2023 were $2.07 billion, decreasing $211.2 million from December 31, 2022 and $278.1 million from March 31, 2022. The decrease from both periods was due primarily to the sale of $231.0 million of available for sale securities during the first quarter of 2023, as well as principal cash flows received from scheduled payments, calls, and maturities. The Company executed the sale of securities as part of a strategic balance sheet repositioning. The sale resulted in a pre-tax realized loss of $13.2 million. The proceeds of $220.0 million were redeployed towards paying off existing short-term borrowings and purchasing higher yielding, floating rate securities.


Deposits	March 31, 2023				December 31, 2022				March 31, 2022
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Noninterest bearing deposits	$	989,469	17.8	%	$	1,053,450	19.3	%	$	1,002,415	19.7	%
Interest checking deposits	1,476,948		26.6		1,624,278		29.8		1,601,249		31.5
Money market deposits	969,238		17.4		937,340		17.1		983,709		19.4
Savings deposits	631,811		11.4		664,169		12.1		650,314		12.8
Time deposits of $250 and under	599,302		10.8		559,466		10.2		501,904		9.9
Total core deposits	4,666,768		84.0		4,838,703		88.5		4,739,591		93.3
Brokered time deposits	366,539		6.6		126,767		2.3		—		—
Time deposits over $250	521,846		9.4		503,472		9.2		338,134		6.7

Total deposits	$	5,555,153	100.0	%	$	5,468,942	100.0	%	$	5,077,725	100.0	%

Total deposits increased $86.2 million, or 1.6%, to $5.56 billion from $5.47 billion at December 31, 2022. Brokered deposits increased $239.8 million from $126.8 million at December 31, 2022. When excluding the increase in brokered time deposits, total deposits declined $153.6 million from December 31, 2022. Total uninsured deposits were $1.72 billion, which included $692.1 million of collateralized municipal deposits at March 31, 2023. Total uninsured deposits, excluding collateralized municipal deposits, represented approximately 18.5% of total deposits.


Borrowed Funds	March 31, 2023				December 31, 2022				March 31, 2022
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Short-term borrowings	$	143,981	51.1	%	$	391,873	73.8	%	$	181,193	56.4	%
Long-term debt	137,981		48.9	%	139,210		26.2	%	139,898		43.6	%
Total borrowed funds	$	281,962			$	531,083			$	321,091

Total borrowed funds were $282.0 million at March 31, 2023 a decrease of $249.1 million from December 31, 2022 and $39.1 million from March 31, 2022. The decrease from both periods was due to lower Federal Home Loan Bank borrowings.


Capital	March 31,			December 31,			March 31,
(Dollars in thousands)	2023 (1)			2022			2022
Total shareholders' equity	$	500,650		$	492,793		$	504,457
Accumulated other comprehensive loss	(78,885)			(89,047)			(42,016)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio	8.30		%	8.35		%	8.85		%
Common equity tier 1 capital to risk-weighted assets ratio	9.39		%	9.28		%	9.81		%
Tier 1 capital to risk-weighted assets ratio	10.18		%	10.05		%	10.68		%
Total capital to risk-weighted assets ratio	12.31		%	12.07		%	12.89		%
MidWestOne Bank
Tier 1 leverage to average assets ratio	9.28		%	9.36		%	9.30		%
Common equity tier 1 capital to risk-weighted assets ratio	11.40		%	11.29		%	11.25		%
Tier 1 capital to risk-weighted assets ratio	11.40		%	11.29		%	11.25		%
Total capital to risk-weighted assets ratio	12.31		%	12.10		%	12.12		%
(1) Regulatory capital ratios for March 31, 2023 are preliminary

Total shareholders' equity at March 31, 2023 increased $7.9 million from December 31, 2022, driven by the benefit of first quarter net income and a decrease in accumulated other comprehensive loss, partially offset by dividends paid during the first quarter of 2023.

Accumulated other comprehensive loss at March 31, 2023 decreased $10.2 million compared to December 31, 2022, due primarily to accretion of unrealized losses and the favorable impact of interest rate changes on available for sale securities valuations. Accumulated other comprehensive loss increased $36.9 million from March 31, 2022, driven by the impact of higher interest rates on available for sale securities valuations.

On April 27, 2023, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable June 15, 2023, to shareholders of record at the close of business on June 1, 2023.

Due to increased economic uncertainty and recent market volatility, no common shares were repurchased by the Company during the period January 1, 2023 through March 31, 2023 or for the subsequent period through April 27, 2023. On April 27, 2023, the Board of Directors of the Company approved a new repurchase program, which replaced the prior repurchase program, allowing for the repurchase of up to $15.0 million of the Company's common stock through December 31, 2025.

CREDIT QUALITY REVIEW


Credit Quality	As of or For the Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)	2023			2022			2022
Credit loss expense (benefit) related to loans	$	933		$	572		$	(278)
Net charge-offs	333			3,472			2,222
Allowance for credit losses	49,800			49,200			46,200
Pass	$	3,728,522		$	3,635,766		$	3,041,649
Special Mention / Watch	92,075			108,064			106,241
Classified	98,768			96,694			102,145


Loans greater than 30 days past due and accruing	$	4,932		$	6,680		$	8,298
Nonperforming loans	$	14,442		$	15,821		$	31,182

Nonperforming assets	14,442			15,924			31,455

Net charge-off ratio(1)	0.03		%	0.36		%	0.28		%
Classified loans ratio(2)	2.52		%	2.52		%	3.14		%
Nonperforming loans ratio(3)	0.37		%	0.41		%	0.96		%
Nonperforming assets ratio(4)	0.23		%	0.24		%	0.53		%
Allowance for credit losses ratio(5)	1.27		%	1.28		%	1.42		%

Allowance for credit losses to nonaccrual loans ratio(6)	344.88		%	322.50		%	148.16		%


(1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.

(3) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(5) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.

(6)Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.

During the first quarter of 2023, overall asset quality improved when compared to the linked quarter and the corresponding period in the prior year. The nonperforming loans ratio declined 4 bps from the linked quarter and 59 bps from the prior year to 0.37%. In addition, the classified loans ratio was consistent with the linked quarter at 2.52%, and declined 62 bps from the prior year. Further, the net charge-off ratio declined 33 bps from the linked quarter and 25 bps from the prior year.

As of March 31, 2023, the allowance for credit losses was $49.8 million, or 1.27% of loans held for investment, net of unearned income, compared with $49.2 million, or 1.28% of loans held for investment, net of unearned income, at December 31, 2022. Credit loss expense of $0.9 million in the first quarter of 2023 was primarily attributable to loan growth.


Nonperforming Loans Roll Forward	Nonaccrual		90+ Days Past Due & Still Accruing		Total
(Dollars in thousands)
Balance at December 31, 2022	$	15,256	$	565	$	15,821
Loans placed on nonaccrual or 90+ days past due & still accruing	1,445		25		1,470

Proceeds related to repayment or sale	(796)		—		(796)
Loans returned to accrual status or no longer past due	(1,110)		(515)		(1,625)
Charge-offs	(355)		(23)		(378)


Transfer to nonaccrual	—		(50)		(50)
Balance at March 31, 2023	$	14,440	$	2	$	14,442

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 28, 2023. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=586c53ba&confId=49008. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 390276 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until July 20,

2023, by calling 1-866-813-9403 and using the replay access code of 126764. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, Florida, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

Cautionary Note Regarding Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers (including with IOFB), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of actual and expected increases in inflation and interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits, including the expected elimination of LIBOR and the adoption of a substitute; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including the new 1.0% excise tax on stock buybacks by publicly traded companies and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the war in Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the effects of cyber-attacks; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) effects of the ongoing COVID-19 pandemic, including its effects on the economic environment, our customers, employees and supply chain; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at other banks that resulted in failure of those institutions; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

FIVE QUARTER CONSOLIDATED BALANCE SHEETS


	March 31,		December 31,		September 30,		June 30,		March 31,
(In thousands)	2023		2022		2022		2022		2022
ASSETS
Cash and due from banks	$	63,945	$	83,990	$	77,513	$	60,622	$	47,677
Interest earning deposits in banks	5,273		2,445		1,001		23,242		12,152

Total cash and cash equivalents	69,218		86,435		78,514		83,864		59,829
Debt securities available for sale at fair value	954,074		1,153,547		1,153,304		1,234,789		1,145,638
Held to maturity securities at amortized cost	1,117,709		1,129,421		1,146,583		1,168,042		1,204,212
Total securities	2,071,783		2,282,968		2,299,887		2,402,831		2,349,850
Loans held for sale	2,553		612		2,320		4,991		6,466
Gross loans held for investment	3,932,900		3,854,791		3,761,664		3,627,728		3,256,294
Unearned income, net	(13,535)		(14,267)		(15,375)		(16,576)		(6,259)
Loans held for investment, net of unearned income	3,919,365		3,840,524		3,746,289		3,611,152		3,250,035
Allowance for credit losses	(49,800)		(49,200)		(52,100)		(52,350)		(46,200)
Total loans held for investment, net	3,869,565		3,791,324		3,694,189		3,558,802		3,203,835
Premises and equipment, net	86,208		87,125		87,732		89,048		82,603
Goodwill	62,477		62,477		62,477		62,477		62,477
Other intangible assets, net	28,563		30,315		32,086		33,874		18,658
Foreclosed assets, net	—		103		103		284		273
Other assets	219,585		236,517		233,753		206,320		176,223
Total assets	$	6,409,952	$	6,577,876	$	6,491,061	$	6,442,491	$	5,960,214
LIABILITIES
Noninterest bearing deposits	$	989,469	$	1,053,450	$	1,139,694	$	1,114,825	$	1,002,415
Interest bearing deposits	4,565,684		4,415,492		4,337,088		4,422,616		4,075,310
Total deposits	5,555,153		5,468,942		5,476,782		5,537,441		5,077,725





Short-term borrowings	143,981		391,873		304,536		193,894		181,193





Long-term debt	137,981		139,210		154,190		159,168		139,898
Other liabilities	72,187		85,058		83,324		63,156		56,941
Total liabilities	5,909,302		6,085,083		6,018,832		5,953,659		5,455,757
SHAREHOLDERS' EQUITY

Common stock	16,581		16,581		16,581		16,581		16,581
Additional paid-in capital	300,966		302,085		301,418		300,859		300,505
Retained earnings	286,767		289,289		276,998		262,395		253,500
Treasury stock	(24,779)		(26,115)		(26,145)		(25,772)		(24,113)
Accumulated other comprehensive loss	(78,885)		(89,047)		(96,623)		(65,231)		(42,016)
Total shareholders' equity	500,650		492,793		472,229		488,832		504,457
Total liabilities and shareholders' equity	$	6,409,952	$	6,577,876	$	6,491,061	$	6,442,491	$	5,960,214

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
(In thousands, except per share data)	2023		2022		2022		2022		2022
Interest income
Loans, including fees	$	46,490	$	43,769	$	40,451	$	32,746	$	31,318
Taxable investment securities	10,444		10,685		10,635		9,576		8,123
Tax-exempt investment securities	2,127		2,303		2,326		2,367		2,383
Other	244		—		9		40		28
Total interest income	59,305		56,757		53,421		44,729		41,852
Interest expense
Deposits	15,319		9,127		5,035		3,173		2,910
Short-term borrowings	1,786		1,955		767		229		119
Long-term debt	2,124		2,111		1,886		1,602		1,487
Total interest expense	19,229		13,193		7,688		5,004		4,516
Net interest income	40,076		43,564		45,733		39,725		37,336
Credit loss expense	933		572		638		3,282		—
Net interest income after credit loss expense	39,143		42,992		45,095		36,443		37,336
Noninterest (loss) income
Investment services and trust activities	2,933		2,666		2,876		2,670		3,011
Service charges and fees	2,008		2,028		2,075		1,717		1,657
Card revenue	1,748		1,784		1,898		1,878		1,650
Loan revenue	1,420		966		1,722		3,523		4,293
Bank-owned life insurance	602		637		579		558		531

Investment securities (losses) gains, net	(13,170)		(1)		(163)		395		40
Other	413		2,860		3,601		1,606		462
Total noninterest (loss) income	(4,046)		10,940		12,588		12,347		11,644
Noninterest expense
Compensation and employee benefits	19,607		20,438		20,046		18,955		18,664
Occupancy expense of premises, net	2,746		2,663		2,577		2,253		2,779
Equipment	2,171		2,327		2,358		2,107		1,901
Legal and professional	1,736		1,846		2,012		2,435		2,353
Data processing	1,363		1,375		1,731		1,237		1,231
Marketing	986		947		1,139		1,157		1,029
Amortization of intangibles	1,752		1,770		1,789		1,283		1,227
FDIC insurance	749		405		415		420		420
Communications	261		285		302		266		272
Foreclosed assets, net	(28)		48		42		4		(112)

Other	1,976		2,336		2,212		1,965		1,879
Total noninterest expense	33,319		34,440		34,623		32,082		31,643
Income before income tax expense	1,778		19,492		23,060		16,708		17,337
Income tax expense	381		3,490		4,743		4,087		3,442
Net income	$	1,397	$	16,002	$	18,317	$	12,621	$	13,895

Earnings per common share
Basic	$	0.09	$	1.02	$	1.17	$	0.81	$	0.89
Diluted	$	0.09	$	1.02	$	1.17	$	0.80	$	0.88
Weighted average basic common shares outstanding	15,650		15,624		15,623		15,668		15,683
Weighted average diluted common shares outstanding	15,691		15,693		15,654		15,688		15,718
Dividends paid per common share	$	0.2425	$	0.2375	$	0.2375	$	0.2375	$	0.2375

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

FINANCIAL STATISTICS


	As of or for the Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share amounts)	2023			2022			2022
Earnings:
Net interest income	$	40,076		$	43,564		$	37,336
Noninterest (loss) income	(4,046)			10,940			11,644
Total revenue, net of interest expense	36,030			54,504			48,980
Credit loss expense	933			572			—
Noninterest expense	33,319			34,440			31,643
Income before income tax expense	1,778			19,492			17,337
Income tax expense	381			3,490			3,442
Net income	$	1,397		$	16,002		$	13,895
Per Share Data:
Diluted earnings	$	0.09		$	1.02		$	0.88
Book value	31.94			31.54			32.15
Tangible book value(1)	26.13			25.60			26.98
Ending Balance Sheet:
Total assets	$	6,409,952		$	6,577,876		$	5,960,214
Loans held for investment, net of unearned income	3,919,365			3,840,524			3,250,035


Total securities	2,071,783			2,282,968			2,349,850
Total deposits	5,555,153			5,468,942			5,077,725
Short-term borrowings	143,981			391,873			181,193
Long-term debt	137,981			139,210			139,898
Total shareholders' equity	500,650			492,793			504,457
Average Balance Sheet:
Average total assets	$	6,524,065		$	6,516,969		$	5,914,604
Average total loans	3,867,110			3,791,880			3,245,449
Average total deposits	5,546,694			5,495,599			5,044,046
Financial Ratios:
Return on average assets	0.09		%	0.97		%	0.95		%
Return on average equity	1.14		%	13.26		%	10.74		%
Return on average tangible equity(1)	2.70		%	17.85		%	13.56		%
Efficiency ratio(1)	62.32		%	57.79		%	60.46		%
Net interest margin, tax equivalent(1)	2.75		%	2.93		%	2.79		%
Loans to deposits ratio	70.55		%	70.22		%	64.01		%

Uninsured deposits excluding collateralized municipal deposits ratio	18.54		%	21.13		%	24.72		%
Common equity ratio	7.81		%	7.49		%	8.46		%
Tangible common equity ratio(1)	6.48		%	6.17		%	7.20		%
Credit Risk Profile:
Total nonperforming loans	$	14,442		$	15,821		$	31,182
Nonperforming loans ratio	0.37		%	0.41		%	0.96		%
Total nonperforming assets	$	14,442		$	15,924		$	31,455
Nonperforming assets ratio	0.23		%	0.24		%	0.53		%

Net charge-offs	$	333		$	3,472		$	2,222
Net charge-off ratio	0.03		%	0.36		%	0.28		%
Allowance for credit losses	$	49,800		$	49,200		$	46,200
Allowance for credit losses ratio	1.27		%	1.28		%	1.42		%

Allowance for credit losses to nonaccrual ratio	344.88		%	322.50		%	148.16		%





(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS


	Three Months Ended
	March 31, 2023						December 31, 2022						March 31, 2022
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	3,867,110	$	47,206	4.95	%	$	3,791,880	$	44,494	4.66	%	$	3,245,449	$	31,858	3.98	%
Taxable investment securities	1,811,388		10,444		2.34	%	1,865,494		10,685		2.27	%	1,835,911		8,123		1.79	%
Tax-exempt investment securities (2)(4)	397,110		2,649		2.71	%	422,156		2,893		2.72	%	450,547		2,998		2.70	%
Total securities held for investment(2)	2,208,498		13,093		2.40	%	2,287,650		13,578		2.35	%	2,286,458		11,121		1.97	%
Other	24,848		244		3.98	%	5,562		—		—	%	56,094		28		0.20	%
Total interest earning assets(2)	$	6,100,456	$	60,543	4.02	%	$	6,085,092	$	58,072	3.79	%	$	5,588,001	$	43,007	3.12	%
Other assets	423,609						431,877						326,603
Total assets	$	6,524,065					$	6,516,969					$	5,914,604
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,515,845	$	1,849	0.49	%	$	1,632,749	$	1,703	0.41	%	$	1,560,402	$	1,061	0.28	%
Money market deposits	930,543		3,269		1.42	%	995,512		2,369		0.94	%	953,943		499		0.21	%
Savings deposits	653,043		272		0.17	%	683,538		306		0.18	%	641,703		279		0.18	%
Time deposits	1,417,688		9,929		2.84	%	1,067,044		4,749		1.77	%	883,997		1,071		0.49	%
Total interest bearing deposits	4,517,119		15,319		1.38	%	4,378,843		9,127		0.83	%	4,040,045		2,910		0.29	%
Securities sold under agreements to repurchase	145,809		450		1.25	%	151,880		437		1.14	%	159,417		96		0.24	%
Federal funds purchased	—		—		—	%	940		10		4.22	%	—		—		—	%
Other short-term borrowings	111,306		1,336		4.87	%	152,215		1,508		3.93	%	3,029		23		3.08	%
Short-term borrowings	257,115		1,786		2.82	%	305,035		1,955		2.54	%	162,446		119		0.30	%
Long-term debt	139,208		2,124		6.19	%	151,266		2,111		5.54	%	140,389		1,487		4.30	%
Total borrowed funds	396,323		3,910		4.00	%	456,301		4,066		3.54	%	302,835		1,606		2.15	%
Total interest bearing liabilities	$	4,913,442	$	19,229	1.59	%	$	4,835,144	$	13,193	1.08	%	$	4,342,880	$	4,516	0.42	%
Noninterest bearing deposits	1,029,575						1,116,756						1,004,001
Other liabilities	82,501						86,242						42,872
Shareholders’ equity	498,547						478,827						524,851
Total liabilities and shareholders’ equity	$	6,524,065					$	6,516,969					$	5,914,604
Net interest income(2)			$	41,314					$	44,879					$	38,491
Net interest spread(2)					2.43	%					2.71	%					2.70	%
Net interest margin(2)					2.75	%					2.93	%					2.79	%

Total deposits(5)	$	5,546,694	$	15,319	1.12	%	$	5,495,599	$	9,127	0.66	%	$	5,044,046	$	2,910	0.23	%
Cost of funds(6)					1.31	%					0.88	%					0.34	%

(1) Average balance includes nonaccrual loans.

(2) Tax equivalent. The federal statutory tax rate utilized was 21%.

(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $95 thousand, $87 thousand, and $674 thousand for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively. Loan purchase discount accretion was $1.2 million, $1.3 million, and $732 thousand for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively. Tax equivalent adjustments were $716 thousand, $725 thousand, and $540 thousand for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively. The federal statutory tax rate utilized was 21%.

(4) Interest income includes tax equivalent adjustments of $522 thousand, $590 thousand, and $615 thousand for the three months ended March 31, 2023, December 31, 2022, and March 31, 2022, respectively. The federal statutory tax rate utilized was 21%.

(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.

(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, and adjusted earnings. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.


Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity Ratio	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share data)	2023			2022			2022			2022			2022
Total shareholders’ equity	$	500,650		$	492,793		$	472,229		$	488,832		$	504,457
Intangible assets, net	(91,040)			(92,792)			(94,563)			(96,351)			(81,135)
Tangible common equity	$	409,610		$	400,001		$	377,666		$	392,481		$	423,322

Total assets	$	6,409,952		$	6,577,876		$	6,491,061		$	6,442,491		$	5,960,214
Intangible assets, net	(91,040)			(92,792)			(94,563)			(96,351)			(81,135)
Tangible assets	$	6,318,912		$	6,485,084		$	6,396,498		$	6,346,140		$	5,879,079

Book value per share	$	31.94		$	31.54		$	30.23		$	31.26		$	32.15
Tangible book value per share(1)	$	26.13		$	25.60		$	24.17		$	25.10		$	26.98
Shares outstanding	15,675,325			15,623,977			15,622,825			15,635,131			15,690,125

Common equity ratio	7.81		%	7.49		%	7.28		%	7.59		%	8.46		%
Tangible common equity ratio(2)	6.48		%	6.17		%	5.90		%	6.18		%	7.20		%

(1) Tangible common equity divided by shares outstanding.

(2) Tangible common equity divided by tangible assets.


	Three Months Ended
Return on Average Tangible Equity	March 31,			December 31,			March 31,
(Dollars in thousands)	2023			2022			2022
Net income	$	1,397		$	16,002		$	13,895
Intangible amortization, net of tax(1)	1,314			1,328			920

Tangible net income	$	2,711		$	17,330		$	14,815

Average shareholders’ equity	$	498,547		$	478,827		$	524,851
Average intangible assets, net	(92,002)			(93,662)			(81,763)
Average tangible equity	$	406,545		$	385,165		$	443,088

Return on average equity	1.14		%	13.26		%	10.74		%
Return on average tangible equity(2)	2.70		%	17.85		%	13.56		%

(1) The combined income tax rate utilized was 25%.

(2) Annualized tangible net income divided by average tangible equity.


Net Interest Margin, Tax Equivalent/ Core Net Interest Margin	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)	2023			2022			2022
Net interest income	$	40,076		$	43,564		$	37,336
Tax equivalent adjustments:
Loans(1)	716			725			540
Securities(1)	522			590			615
Net interest income, tax equivalent	$	41,314		$	44,879		$	38,491
Loan purchase discount accretion	(1,189)			(1,286)			(732)
Core net interest income	$	40,125		$	43,593		$	37,759

Net interest margin	2.66		%	2.84		%	2.71		%
Net interest margin, tax equivalent(2)	2.75		%	2.93		%	2.79		%
Core net interest margin(3)	2.67		%	2.84		%	2.74		%
Average interest earning assets	$	6,100,456		$	6,085,092		$	5,588,001

(1) The federal statutory tax rate utilized was 21%.

(2) Annualized tax equivalent net interest income divided by average interest earning assets.

(3) Annualized core net interest income divided by average interest earning assets.


	Three Months Ended
Loan Yield, Tax Equivalent / Core Yield on Loans	March 31,			December 31,			March 31,
(Dollars in thousands)	2023			2022			2022
Loan interest income, including fees	$	46,490		$	43,769		$	31,318
Tax equivalent adjustment(1)	716			725			540
Tax equivalent loan interest income	$	47,206		$	44,494		$	31,858
Loan purchase discount accretion	(1,189)			(1,286)			(732)
Core loan interest income	$	46,017		$	43,208		$	31,126

Yield on loans	4.88		%	4.58		%	3.91		%
Yield on loans, tax equivalent(2)	4.95		%	4.66		%	3.98		%
Core yield on loans(3)	4.83		%	4.52		%	3.89		%
Average loans	$	3,867,110		$	3,791,880		$	3,245,449

(1) The federal statutory tax rate utilized was 21%.

(2) Annualized tax equivalent loan interest income divided by average loans.

(3) Annualized core loan interest income divided by average loans.


	Three Months Ended
Efficiency Ratio	March 31,			December 31,			March 31,
(Dollars in thousands)	2023			2022			2022
Total noninterest expense	$	33,319		$	34,440		$	31,643
Amortization of intangibles	(1,752)			(1,770)			(1,227)
Merger-related expenses	(136)			(409)			(128)

Noninterest expense used for efficiency ratio	$	31,431		$	32,261		$	30,288

Net interest income, tax equivalent(1)	$	41,314		$	44,879		$	38,491
Plus: Noninterest income	(4,046)			10,940			11,644
Less: Investment securities (losses) gains, net	(13,170)			(1)			40
Net revenues used for efficiency ratio	$	50,438		$	55,820		$	50,095

Efficiency ratio (2)	62.32		%	57.79		%	60.46		%

(1) The federal statutory tax rate utilized was 21%.

(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.


	Three Months Ended
Adjusted Earnings	March 31,		December 31,		March 31,
(Dollars in thousands, except per share data)	2023		2022		2022
Net income	$	1,397	$	16,002	$	13,895
After tax loss on sale of debt securities(1)	9,837		—		—
Adjusted earnings	$	11,234	$	16,002	$	13,895

Weighted average diluted common shares outstanding	15,691		15,693		15,718

Earnings per common share
Earnings per common share - diluted	$	0.09	$	1.02	$	0.88
Adjusted earnings per common share - diluted (2)	$	0.72	$	1.02	$	0.88

(1) The income tax rate utilized was 25.3%.

(2) Adjusted earnings divided by weighted average diluted common shares outstanding.


Contact:
	Charles N. Reeves	Barry S. Ray
	Chief Executive Officer	Chief Financial Officer
	319.356.5800	319.356.5800

First Quarter 2023 Earnings Conference Call April 28, 2023

2 Forward Looking Statements & Non-GAAP Measures This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers (including with IOFB), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of actual and expected increases in inflation and interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits, including the expected elimination of LIBOR and the adoption of a substitute; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including the new 1.0% excise tax on stock buybacks by publicly traded companies and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the war in Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the effects of cyber-attacks; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) effects of the ongoing COVID-19 pandemic, including its effects on the economic environment, our customers, employees and supply chain; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at other banks that resulted in failure of those institutions; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company. Non-GAAP Measures This presentation contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, loan yield, tax equivalent, efficiency ratio, net interest income, tax equivalent, net interest margin, tax equivalent, return on average tangible equity, and pre-tax, pre-provision earnings. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. A reconciliation of each non-GAAP measure to the most comparable GAAP measure is included, as necessary, in the Appendix.

3 Financial Highlights Total assets $ 6,410.0 (2.55) % 7.55 % Total loans held for investment, net 3,919.4 2.05 20.59 Total deposits 5,555.2 1.58 9.40 Balance Sheet Equity to assets ratio 7.81 % 32 bps (65) bps Tangible common equity ratio (non-GAAP) 6.48 31 (72) CET1 risk-based capital ratio 9.39 11 (42) Total risk-based capital ratio 12.31 24 (58) Loans to deposits ratio 70.55 % 33 654 Capital and Liquidity Net interest margin, tax equivalent (non-GAAP) 2.75 % (18) bps (4) bps Cost of total deposits 1.12 46 89 Return on average assets 0.09 (88) (86) Return on average tangible equity (non-GAAP) 2.70 (1,515) (1,086) Efficiency ratio (non-GAAP) 62.32 453 186 Profitability Nonperforming loans ratio 0.37 % (4) bps (59) bps Nonperforming assets ratio 0.23 (1) (30) Net charge-off ratio 0.03 (33) (25) Allowance for credit losses ratio 1.27 (1) (15) Credit Risk Profile Q1.23 Financial Highlights – See the Appendix for Non-GAAP financial measures. – Note: Financial metrics as of or for the quarter ended March 31, 2023. Change vs. Dollars in millions Q1.23 Q4.22 Q1.22

4 Deposits 69% 19% 12% Insured Deposits Uninsured Deposits Collateralized Uninsured Deposits Deposit Highlights • Total uninsured deposits at March 31, 2023 were $1.72 billion, which includes $692.1 million of collateralized municipal deposits. • On average, customers have held their deposits at MidWestOne for approximately 11.6 years. • Average deposit account balance of $29 thousand. • Cycle-to-date interest bearing deposit beta was 24%. Uninsured Deposits(1) March 31, 2023 $ B ill io ns $5.47 $5.53 $5.66 $5.56 $5.34 $5.22 $5.20 $5.19 $0.13 $0.30 $0.46 $0.37 (0.70)% (2.22)% (0.37)% (0.30)% Deposits, Ex Brokered Brokered Deposits Change in Deposits, Ex Brokered 12/31/22 01/31/23 02/28/23 03/31/23 (1) Uninsured deposits per Bank's estimate of uninsured deposits on call report Schedule RC-O less collateralized municipal deposits as reported on Schedule RC-E. (2) Represents the change in deposits, ex brokered from the prior month-end. (2)

5 Strong Liquidity Position 64.01% 65.21% 68.40% 70.22% 70.55% Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 63.00% 64.00% 65.00% 66.00% 67.00% 68.00% 69.00% 70.00% 71.00% Loans to Deposits Ratio Balance Sheet dollars in millions Cash and Cash Equivalents (1) $69.2 Unpledged Securities $698.5 Projected Investment Cash Flow: 3-Months $57 6-Months $93 1-Year $156 (1) Comprised of cash and due from banks, interest-bearing deposits, and federal funds sold. Off-Balance Sheet dollars in millions Available Federal Fund Lines $155.0 Unused FHLB Borrowing Capacity $777.2 Estimated Unused Brokered Deposit Capacity $250.0 Discount Window Capacity $419.4 Bank Term Funding Program Capacity $90.2 Total Unsecured and Pledged Funding Capacity $1,691.8 Additional Unpledged Securities $698.5 Total Funding Capacity + Unpledged Securities $2,390.3 March 31, 2023 March 31, 2023

6 MOFG's Five Strategic Pillars Exceptional Customer and Employee Engagement Strong Core Local Banking Model Sophisticated Commercial Banking and Wealth Management Specialty Business Lines Improving Our Efficiency and Operations

7 Strategic Pillar #1: Exceptional Customer and Employee Engagement Build Upon MOFG's Award-Winning Culture Results Driven Performance Integrate Employee Insights to Improve Reward Driven Performance Metrics Results Driven Talent Development 1 Measurable goals aligned to MidWestOne's financial results 2 Invest in capabilities to achieve a successful transformation 3 Incentivize financial results focused performance metrics 4 Leverage employee feedback to drive improvements

8 Strategic Pillar #2: Strong Core Local Banking Model Stable and Granular, Core Deposit Base Supports MOFG's Strategic Plan MOFG’s relationship driven community bank platform offers diverse products and services that attracts deposits from consumer and commercial customers while driving cross sell opportunities Average Account Size $29k Average Services Used 3.6 Average Branch Deposit Size $91mm Consumer Lending Growth 10% Relationship Driven Community Bank

9 Strategic Pillar #3:Commercial Banking and Wealth Management Leaning Into Our Major Markets of the Twin Cities, Denver and Metro Iowa • Continue to hire experienced bankers with proven track records • Target companies from $20 - $100 million in revenues • Focus on major markets • Maintain a prudent approach to risk and growth • Exiting 2025 - targeting high single digit loan growth, annually Commercial Banking • Treasury Management is a key enabler to our commercial success • Will invest to expand our platform, product offerings, and talent • Goals - drive deposit growth, improve non-interest bearing deposit mix as a % of total deposits, & increase fee income Treasury Management • Beginning to see the results of our Twin Cities and Cedar Rapids team lift out which is starting to drive AUM growth • Will continue to look for team lift outs to further drive asset growth and fee income • Continue to add to MOFG's investment strategy platforms Wealth Management

10 Strategic Pillar #4: Specialty Business Lines Growth Opportunities in Specialty Commercial Business Lines Expand immediately into: • Commercial Real Estate • Government Guaranteed Lending • Agri Business Over the Medium Term: • Develop Deposit Vertical • Middle Market C&I • Government / Non-Profit • Sponsor Finance • Recruit Product Specialists • Innovative Commercial Loan Platform • Specialization Policy Development • Evolved Decisioning Process • Enhanced Compliance Controls Focus on Full Customer Relationship Acquisition Drive Deposit Growth While Maintaining Risk Management

11 Strategic Pillar #5: Improving Our Efficiency and Operations • Engaged a third-party strategic consulting firm to identify areas for efficiency gains and cost reduction • Re-allocating 2.5% of our operating expense base into more productive, profitable markets and departments • Reducing 2.5% of our Q4 2022 operating expense run rate to further lower our forward operating expense platform • Investing in digital capabilities and infrastructure: creating a three-year technology / digital road map focused on improving customer experience and enabling the company to achieve its strategic plan priorities Completed Operational Action Item Adapted mortgage business to the reduction in volume and demand in the real estate market Drive Operational Efficiency Improve efficiency and ability to scale operations to reduce costs and improve customer experiences Modernize Our Infrastructure Reduce core dependency to increase speed-to-market, control costs, and drive scalability

12 Goal: Deliver Improved and Consistent Financial Results • ROA of 90 - 100 bps • Deposit Growth of 2 - 4% • Loan Growth of 7 - 9% • Efficiency Ratio of 58 - 60% • Annual EPS growth of 12% • ROA of 110 - 120 bps • Annual Tangible Book Value growth of 10% • Efficiency Ratio of 55 - 57% Exiting 2024, Management Expects to Achieve: Exiting 2025, Management Expects to Achieve:

13 Strong Community Banking Model Rural core deposit franchise that supports growing metropolitan markets Source: S&P Capital IQ for Median HHI, 2022 - 2027 Projected HHI, and 2022-2027 Projected Population Growth) Source: Bureau of Labor Statistics - February 2023 Unemployment Rate Note: Markets are representative of the following metropolitan areas (combined as applicable): • Denver - Denver, Colorado • Iowa Community - Muscatine, Fairfield, Fort Madison IA / Keokuk IL, Oskaloosa, Pella, Platteville, WI. • Iowa Metro - Cedar Rapids, Des Moines, Dubuque, Iowa City, and Waterloo/Cedar Falls. • Naples & Fort Myers - Cape Coral/Fort Myers and Naples/Marco Island, Florida • Twin Cities - Minneapolis/St. Paul/Bloomington, MN - WI. Note: Banking offices and deposits ($MM) as of March 31, 2023. Deposit balance excludes brokered time deposits of $366.5 million. Market Banking Offices Deposits ($MM) Deposits/ Banking Office ($MM) Gross Loans ($MM) Median HHI ($) 2022-2027 Projected HHI Change 2022-2027 Projected Pop. Growth February 2023 Unemployment Rate Denver 1 $ 117 $ 117 $ 383 $ 95,551 14.51 % 5.47 % 3.20 % Iowa Community 23 $ 1,743 $ 76 $ 883 $ 62,409 9.85 % 1.16 % 3.20 % Iowa Metro 16 $ 1,842 $ 115 $ 1,339 $ 71,317 9.99 % 3.54 % 3.10 % Naples & Fort Myers 2 $ 162 $ 81 $ 165 $ 75,833 12.72 % 5.90 % 2.65 % Twin Cities 15 $ 1,325 $ 88 $ 1,162 $ 92,084 10.55 % 4.53 % 3.20 % Total 57 $ 5,189 $ 3,932 National $ 72,465 12.10 % 3.21 % 3.60 %

14 Commercial Loan Portfolio Commercial and Industrial, 33% Agricultural, 3% Farmland, 6% Construction & Development, 10% Multifamily, 8% CRE-Other, 40% Commercial Loan Portfolio Mix - March 31, 2023 Commercial Loan Portfolio of $3.2 billion $883.5 $1,011.8 $865.4 $936.9 $247.8 $375.9 Twin Cities Iowa Metro Denver 03/31/22 06/30/22 09/30/22 12/31/22 03/31/23 Commercial Loan Growth in Targeted Regions $ in Millions

15 Commercial Real Estate 4.7% 95.3% NOO CRE Office All Other Loans Non-Owner Occupied CRE Office March 31, 2023 $ millions 1Q23 Construction & Development $ 323.0 Farmland 183.9 Multifamily 255.7 CRE Other: NOO CRE Office 184.2 OO CRE Office 86.4 Industrial and Warehouse 334.0 Retail 251.5 Hotel 108.9 Other 329.7 Total Commercial Real Estate $ 2,057.3 Commercial Real Estate Portfolio(2) March 31, 2023 Portfolio Highlights March 31, 2023 $ millions Average NOO CRE Office outstanding principal $ 1.5 Commercial Real Estate Concentration: % of Total Capital Regulatory Threshold Construction, land development and other land 49 % 100 % Total CRE loans(1) 200 % 300 % (1)Total CRE loans includes construction, land development and other land, in addition to multifamily and NOO CRE. (2) Represents the outstanding principal balance of the CRE portfolio.

16 Focusing on Growth in Wealth Management $2.4 $2.4 $2.7 $2.7 $2.8 2019 2020 2021 2022 1Q.2023 $— $1.0 $2.0 $3.0 Investment Services and Trust Activity Revenue • Asset amounts presented are in billions of dollars • Revenue amounts presented are in millions of dollars $8.0 $9.6 $11.7 $11.2 $2.7 $2.9 2019 2020 2021 2022 4Q.2022 1Q.2023 $— $5.0 $10.0 $15.0 Wealth Management Assets Under Administration • Building momentum in the Twin Cities with a talented wealth management team focused on leveraging strong relationships with our Retail and Commercial colleagues • Strengthened wealth management capabilities in the fourth quarter of 2021 with the addition of an experienced wealth management team in Eastern Iowa that collectively has more than 120 years of experience • Invested in financial technology that will improve the customer experience and streamline internal processes

17 Financial Performance Overview

18 Balance Sheet 1Q23 vs. 4Q22 1Q23 vs. 1Q22 Period end balances, $ millions 1Q23 $ Change % Change $ Change % Change Loans $3,919.4 $78.8 2 % $669.4 21 % Investment securities $2,071.8 -$211.2 (9) % -$278.1 (12) % Interest earning deposits in banks $5.3 $2.9 121 % -$6.9 (57) % Deposits $5,555.2 $86.2 2 % $477.5 9 % Borrowed funds $282.0 -$249.1 (47) % -$39.1 (12) % Shareholders' equity $500.7 $7.9 2 % -$3.8 (1) % 1Q23 1Q23 Period end 1Q23 4Q22 vs. 4Q22 1Q22 vs. 1Q22 Tangible book value per share (non-GAAP) $26.13 $25.60 2 % $26.98 (3) % Common equity Tier 1 capital ratio 9.4 % 9.3 % 10 bps 9.8 % -40 bps AOCI $(78.9) $(89.0) 11 % $(42.0) (88) % Return on average tangible equity (non-GAAP) 2.70 % 17.85 % -1515 bps 13.56 % -1086 bps – See the Appendix for Non-GAAP financial measures.

19 Balance Sheet- Average Loans and Deposits – IB Deposits represent interest bearing deposits and NIB Deposits represent noninterest bearing deposits. – Loan yield, tax equivalent is a non-GAAP measure. See the Appendix for Non-GAAP financial measures. A ve ra ge b al an ce s, $ bi lli on s Average Deposits $5.04 $5.50 $5.55 $4.04 $4.38 $4.52 $1.00 $1.12 $1.03 0.29% 0.83% 1.38% IB Deposits NIB Deposits Cost of IB Deposits 1Q22 4Q22 1Q23 A ve ra ge b al an ce s, $ bi lli on s Average Loans $3.25 $3.79 $3.87 3.98% 4.66% 4.95% Loans Loan yield, tax equivalent 1Q22 4Q22 1Q23

20 Balance Sheet - Debt Securities Portfolio Municipals, 19% MBS, 1% CLO, 6% CMO, 15% Corporate, 59% 1.97% 2.13% 2.27% 2.35% 2.40% Total Securities Held for Investment (FTE) Q1.22 Q2.22 Q3.22 Q4.22 Q1.23 Investment Securities Yield Available for Sale Debt Securities Portfolio Mix March 31, 2023 Municipals, 48% MBS, 7% CMO, 45% Held to Maturity Debt Securities Portfolio Mix March 31, 2023 • Investment Portfolio Mix: ◦ AFS Securities - $1.0 billion ◦ HTM Securities - $1.1 billion • Investment Portfolio Duration: ◦ AFS Securities - 3.3 ◦ HTM Securities - 6.6 ◦ Total Securities - 5.0 • Allowance for credit losses for investments is $0 Portfolio Composition

21 Credit $ m ill io ns Nonperforming Assets 54% YoY Decline $31.46 $27.62 $26.07 $15.92 $14.44 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 $ m ill io ns Net Charge-Offs $2.2 $0.3 $0.6 $3.5 $0.3 1Q22 2Q22 3Q22 4Q22 1Q23 Credit Quality Measures $ millions 1Q22 2Q22 3Q22 4Q22 1Q23 Nonperforming assets ratio 0.53 % 0.43 % 0.40 % 0.24 % 0.23 % Net charge-off ratio 0.28 % 0.03 % 0.06 % 0.36 % 0.03 % Loans greater than 30 days past due and accruing $8.3 $12.3 $6.0 $6.7 $4.9 Allowance for credit losses ratio 1.42 % 1.45 % 1.39 % 1.28 % 1.27 %

22 Income Statement % Change 1Q23 vs. $ millions 1Q23 4Q22 1Q22 4Q22 1Q22 Net interest income $40.1 $43.6 $37.3 (8) % 8 % Noninterest income -4.0 10.9 11.6 (137) % (134) % Total revenue 36.1 54.5 48.9 (34) % (26) % Noninterest expense 33.3 34.4 31.6 (3) % 5 % Pre-tax, pre-provision earnings (non-GAAP) $2.8 $20.1 $17.3 (86) % (84) % Credit loss expense $0.9 $0.6 $0.0 50 % n / m Income tax expense $0.4 $3.5 $3.4 (89) % (88) % Net income $1.4 $16.0 $13.9 (91) % (90) % 1Q23 1Q23 1Q23 4Q22 1Q22 vs. 4Q22 vs. 1Q22 Net interest margin (non-GAAP) 2.75 % 2.93 % 2.79 % -18 bps -4 bps Efficiency ratio (non-GAAP) 62.32 % 57.79 % 60.46 % -453 bps -186 bps Diluted EPS $0.09 $1.02 $0.88 (91) % (90) % – See the Appendix for Non-GAAP financial measures.

23 Appendix

24 Non-GAAP Financial Measures Tangible Common Equity / Tangible Book Value per Share / Tangible Common Equity Ratio March 31, 2023 dollars in thousands Total shareholders' equity $ 500,650 Intangible assets, net (91,040) Tangible common equity $ 409,610 Total assets $ 6,409,952 Intangible assets, net (91,040) Tangible assets $ 6,318,912 Book value per share $ 31.94 Tangible book value per share (1) $ 26.13 Shares outstanding 15,675,325 Tangible common equity ratio (2) 6.48 % (1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets. Loan Yield, Tax Equivalent For the Three Months Ended March 31, 2022 December 31, 2022 March 31, 2023 dollars in thousands Loan interest income, including fees $ 31,318 $ 43,769 $ 46,490 Tax equivalent adjustment (1) 540 725 716 Tax equivalent loan interest income $ 31,858 $ 44,494 $ 47,206 Yield on loans, tax equivalent (2) 3.98 % 4.66 % 4.95 % Average Loans $ 3,245,449 $ 3,791,880 $ 3,867,110 (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent loan interest income divided by average loans. Efficiency Ratio For the Three Months Ended March 31, 2023 dollars in thousands Total noninterest expense $ 33,319 Amortization of intangibles (1,752) Merger-related expenses (136) Noninterest expense used for efficiency ratio $ 31,431 Net interest income, tax equivalent (1) $ 41,314 Noninterest income (4,046) Investment securities (losses) gains, net (13,170) Net revenues used for efficiency ratio $ 50,438 Efficiency ratio 62.32 % (1) The federal statutory tax rate utilized was 21%.

25 Non-GAAP Financial Measures Pre-tax / Pre-provision Net Revenue For the Three Months Ended March 31, 2023 dollars in thousands Net interest income $ 40,076 Noninterest income (4,046) Noninterest expense (33,319) Pre-tax / Pre-provision Net Revenue $ 2,711 Return on Average Tangible Equity For the Three Months Ended March 31, 2023 dollars in thousands Net income $ 1,397 Intangible amortization, net of tax (1) 1,314 Tangible net income $ 2,711 Average shareholders' equity $ 498,547 Average intangible assets, net 92,002 Average tangible equity $ 406,545 Return on average equity 1.14 % Return on average tangible equity (2) 2.70 % (1) The combined income tax rate utilized was 25%. (2) Annualized tangible net income divided by average tangible equity. Net Interest Income, Tax Equivalent / Net Interest Margin, Tax Equivalent For the Three Months Ended March 31, 2023 dollars in thousands Net interest Income $ 40,076 Tax equivalent adjustments: Loans (1) 716 Securities (1) 522 Net Interest Income, tax equivalent $ 41,314 Average interest earning assets $ 6,100,456 Net interest margin, tax equivalent (2) 2.75 % (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent net interest income divided by average interest earning assets.