☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number | 001-35968 |
Iowa | 42-1206172 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
102 South Clinton Street, Iowa City, IA 52240 | (319) 356-5800 | |||||||
(Address of principal executive offices, including zip code) | (Registrant’s telephone number, including area code) |
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 |
Large accelerated filer | ☐ | Accelerated filer | x | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page No. | ||||||||||||||
PART I | ||||||||||||||
Item 1. | Financial Statements (unaudited) | |||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Part II | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
ACL | Allowance for Credit Losses | FHLBC | Federal Home Loan Bank of Chicago | ||||||||
AFS | Available for Sale | FHLBDM | Federal Home Loan Bank of Des Moines | ||||||||
AOCI | Accumulated Other Comprehensive Income | FHLMC | Federal Home Loan Mortgage Corporation | ||||||||
ASC | Accounting Standards Codification | FNBF | First National Bank in Fairfield | ||||||||
ASU | Accounting Standards Update | FNBM | First National Bank of Muscatine | ||||||||
ATM | Automated Teller Machine | FNMA | Federal National Mortgage Association | ||||||||
Basel III Rules | A comprehensive capital framework and rules for U.S. banking organizations approved by the FRB and the FDIC in 2013 | FRB | Board of Governors of the Federal Reserve System | ||||||||
BHCA | Bank Holding Company Act of 1956, as amended | GAAP | U.S. Generally Accepted Accounting Principles | ||||||||
BOLI | Bank Owned Life Insurance | GLBA | Gramm-Leach-Bliley Act of 1999 | ||||||||
CAA | Consolidated Appropriations Act, 2021 | GNMA | Government National Mortgage Association | ||||||||
CARES Act | Coronavirus Aid, Relief and Economic Security Act | ICS | Insured Cash Sweep | ||||||||
CDARS | Certificate of Deposit Account Registry Service | IOFB | Iowa First Bancshares Corp. | ||||||||
CECL | Current Expected Credit Loss | LIBOR | The London Inter-bank Offered Rate | ||||||||
CMO | Collateralized Mortgage Obligations | MBS | Mortgage-Backed Securities | ||||||||
COVID-19 | Coronavirus Disease 2019 | PCD | Purchase Credit Deteriorated | ||||||||
CRA | Community Reinvestment Act | PPP | Paycheck Protection Program | ||||||||
CRE | Commercial Real Estate | ROU | Right-of-Use | ||||||||
DCF | Discounted Cash Flows | RPA | Credit Risk Participation Agreement | ||||||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act | RRE | Residential Real Estate | ||||||||
ECL | Expected Credit Losses | SBA | U.S. Small Business Administration | ||||||||
EVE | Economic Value of Equity | SEC | U.S. Securities and Exchange Commission | ||||||||
FASB | Financial Accounting Standards Board | SOFR | Secured Overnight Financing Rate | ||||||||
FDIC | Federal Deposit Insurance Corporation | TDR | Troubled Debt Restructuring | ||||||||
FHLB | Federal Home Loan Bank |
March 31, 2023 | December 31, 2022 | ||||||||||
(unaudited) (dollars in thousands, except per share amounts) | |||||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 63,945 | $ | 83,990 | |||||||
Interest earning deposits in banks | 5,273 | 2,445 | |||||||||
Total cash and cash equivalents | 69,218 | 86,435 | |||||||||
Debt securities available for sale at fair value | 954,074 | 1,153,547 | |||||||||
Held to maturity securities at amortized cost | 1,117,709 | 1,129,421 | |||||||||
Total securities | 2,071,783 | 2,282,968 | |||||||||
Loans held for sale | 2,553 | 612 | |||||||||
Gross loans held for investment | 3,932,900 | 3,854,791 | |||||||||
Unearned income, net | (13,535) | (14,267) | |||||||||
Loans held for investment, net of unearned income | 3,919,365 | 3,840,524 | |||||||||
Allowance for credit losses | (49,800) | (49,200) | |||||||||
Total loans held for investment, net | 3,869,565 | 3,791,324 | |||||||||
Premises and equipment, net | 86,208 | 87,125 | |||||||||
Goodwill | 62,477 | 62,477 | |||||||||
Other intangible assets, net | 28,563 | 30,315 | |||||||||
Foreclosed assets, net | — | 103 | |||||||||
Other assets | 219,585 | 236,517 | |||||||||
Total assets | $ | 6,409,952 | $ | 6,577,876 | |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Noninterest bearing deposits | $ | 989,469 | $ | 1,053,450 | |||||||
Interest bearing deposits | 4,565,684 | 4,415,492 | |||||||||
Total deposits | 5,555,153 | 5,468,942 | |||||||||
Short-term borrowings | 143,981 | 391,873 | |||||||||
Long-term debt | 137,981 | 139,210 | |||||||||
Other liabilities | 72,187 | 85,058 | |||||||||
Total liabilities | 5,909,302 | 6,085,083 | |||||||||
Shareholders' equity | |||||||||||
Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding | — | — | |||||||||
Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,675,325 and 15,623,977 | 16,581 | 16,581 | |||||||||
Additional paid-in capital | 300,966 | 302,085 | |||||||||
Retained earnings | 286,767 | 289,289 | |||||||||
Treasury stock at cost, 905,692 and 957,040 shares | (24,779) | (26,115) | |||||||||
Accumulated other comprehensive loss | (78,885) | (89,047) | |||||||||
Total shareholders' equity | 500,650 | 492,793 | |||||||||
Total liabilities and shareholders' equity | $ | 6,409,952 | $ | 6,577,876 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(unaudited) (dollars in thousands, except per share amounts) | 2023 | 2022 | ||||||||||||
Interest income | ||||||||||||||
Loans, including fees | $ | 46,490 | $ | 31,318 | ||||||||||
Taxable investment securities | 10,444 | 8,123 | ||||||||||||
Tax-exempt investment securities | 2,127 | 2,383 | ||||||||||||
Other | 244 | 28 | ||||||||||||
Total interest income | 59,305 | 41,852 | ||||||||||||
Interest expense | ||||||||||||||
Deposits | 15,319 | 2,910 | ||||||||||||
Short-term borrowings | 1,786 | 119 | ||||||||||||
Long-term debt | 2,124 | 1,487 | ||||||||||||
Total interest expense | 19,229 | 4,516 | ||||||||||||
Net interest income | 40,076 | 37,336 | ||||||||||||
Credit loss expense | 933 | — | ||||||||||||
Net interest income after credit loss expense | 39,143 | 37,336 | ||||||||||||
Noninterest (loss) income | ||||||||||||||
Investment services and trust activities | 2,933 | 3,011 | ||||||||||||
Service charges and fees | 2,008 | 1,657 | ||||||||||||
Card revenue | 1,748 | 1,650 | ||||||||||||
Loan revenue | 1,420 | 4,293 | ||||||||||||
Bank-owned life insurance | 602 | 531 | ||||||||||||
Investment securities (losses) gains, net | (13,170) | 40 | ||||||||||||
Other | 413 | 462 | ||||||||||||
Total noninterest (loss) income | (4,046) | 11,644 | ||||||||||||
Noninterest expense | ||||||||||||||
Compensation and employee benefits | 19,607 | 18,664 | ||||||||||||
Occupancy expense of premises, net | 2,746 | 2,779 | ||||||||||||
Equipment | 2,171 | 1,901 | ||||||||||||
Legal and professional | 1,736 | 2,353 | ||||||||||||
Data processing | 1,363 | 1,231 | ||||||||||||
Marketing | 986 | 1,029 | ||||||||||||
Amortization of intangibles | 1,752 | 1,227 | ||||||||||||
FDIC insurance | 749 | 420 | ||||||||||||
Communications | 261 | 272 | ||||||||||||
Foreclosed assets, net | (28) | (112) | ||||||||||||
Other | 1,976 | 1,879 | ||||||||||||
Total noninterest expense | 33,319 | 31,643 | ||||||||||||
Income before income tax expense | 1,778 | 17,337 | ||||||||||||
Income tax expense | 381 | 3,442 | ||||||||||||
Net income | $ | 1,397 | $ | 13,895 | ||||||||||
Per common share information | ||||||||||||||
Earnings - basic | $ | 0.09 | $ | 0.89 | ||||||||||
Earnings - diluted | $ | 0.09 | $ | 0.88 | ||||||||||
Dividends paid | $ | 0.2425 | $ | 0.2375 |
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
(unaudited) (dollars in thousands) | 2023 | 2022 | ||||||||||||
Net income | $ | 1,397 | $ | 13,895 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Unrealized gain (loss) from available for sale debt securities: | ||||||||||||||
Unrealized net holding loss on debt securities available for sale arising during the period | (285) | (46,221) | ||||||||||||
Reclassification adjustment for losses (gains) included in net income | 13,170 | (40) | ||||||||||||
Income tax (expense) benefit | (3,260) | 12,074 | ||||||||||||
Unrealized net gain (loss) on available for sale debt securities, net of reclassification adjustments | 9,625 | (34,187) | ||||||||||||
Reclassification of available for sale debt securities to held to maturity: | ||||||||||||||
Amortization of the net unrealized loss from the reclassification of available for sale debt securities to held to maturity | 581 | 1,402 | ||||||||||||
Income tax expense | (147) | (366) | ||||||||||||
Amortization of net unrealized loss from the reclassification of available for sale debt securities to held to maturity, net | 434 | 1,036 | ||||||||||||
Unrealized gain from cash flow hedging instruments: | ||||||||||||||
Unrealized net holding gains in cash flow hedging instruments arising during the period | 138 | — | ||||||||||||
Income tax expense | (35) | — | ||||||||||||
Unrealized net gains on cash flow hedge instruments, net of reclassification adjustment | 103 | — | ||||||||||||
Other comprehensive income (loss), net of tax | 10,162 | (33,151) | ||||||||||||
Comprehensive income (loss) | $ | 11,559 | $ | (19,256) |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||||||||||||
(unaudited) (dollars in thousands, except per share amounts) | Par Value | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 16,581 | $ | 300,940 | $ | 243,365 | $ | (24,546) | $ | (8,865) | $ | 527,475 | ||||||||||||||||||||||||||
Net income | — | — | 13,895 | — | — | 13,895 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (33,151) | (33,151) | ||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (30,478 shares) | — | (995) | (31) | 789 | — | (237) | ||||||||||||||||||||||||||||||||
Repurchase of common stock (11,500 shares) | — | — | — | (356) | — | (356) | ||||||||||||||||||||||||||||||||
Share-based compensation | — | 560 | — | — | — | 560 | ||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.2375 per share) | — | — | (3,729) | — | — | (3,729) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 16,581 | $ | 300,505 | $ | 253,500 | $ | (24,113) | $ | (42,016) | $ | 504,457 | ||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 16,581 | $ | 302,085 | $ | 289,289 | $ | (26,115) | $ | (89,047) | $ | 492,793 | ||||||||||||||||||||||||||
Net income | — | — | 1,397 | — | — | 1,397 | ||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 10,162 | 10,162 | ||||||||||||||||||||||||||||||||
Release/lapse of restriction on RSUs (51,348 shares, net) | — | (1,767) | (118) | 1,336 | — | (549) | ||||||||||||||||||||||||||||||||
Share-based compensation | — | 648 | — | — | — | 648 | ||||||||||||||||||||||||||||||||
Dividends paid on common stock ($0.2425 per share) | — | — | (3,801) | — | — | (3,801) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 16,581 | $ | 300,966 | $ | 286,767 | $ | (24,779) | $ | (78,885) | $ | 500,650 | ||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
(unaudited) (dollars in thousands) | 2023 | 2022 | |||||||||
Operating Activities: | |||||||||||
Net income | $ | 1,397 | $ | 13,895 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Credit loss expense | 933 | — | |||||||||
Depreciation, amortization, and accretion | 2,891 | 2,469 | |||||||||
Net change in premises and equipment due to writedown or sale | (19) | 410 | |||||||||
Share-based compensation | 648 | 560 | |||||||||
Net loss (gain) on sale or call of debt securities available for sale | 13,170 | (40) | |||||||||
Net change in foreclosed assets due to writedown or sale | (31) | (112) | |||||||||
Net gain on sale of loans held for sale | (75) | (817) | |||||||||
Origination of loans held for sale | (9,976) | (32,564) | |||||||||
Proceeds from sales of loans held for sale | 8,110 | 43,232 | |||||||||
Increase in cash surrender value of bank-owned life insurance | (602) | (531) | |||||||||
(Increase) decrease in deferred income taxes, net | (410) | 1,441 | |||||||||
Change in: | |||||||||||
Other assets | 14,434 | (7,514) | |||||||||
Other liabilities | (12,871) | 5,747 | |||||||||
Net cash provided by operating activities | $ | 17,599 | $ | 26,176 | |||||||
Investing Activities: | |||||||||||
Proceeds from sales of debt securities available for sale | $ | 218,667 | $ | — | |||||||
Proceeds from maturities and calls of debt securities available for sale | 34,746 | 45,174 | |||||||||
Purchases of debt securities available for sale | (54,690) | (198,857) | |||||||||
Proceeds from maturities and calls of debt securities held to maturity | 11,798 | 49,839 | |||||||||
Net increase in loans held for investment | (77,890) | (9,239) | |||||||||
Purchases of premises and equipment | (404) | (938) | |||||||||
Proceeds from sale of foreclosed assets | 134 | 196 | |||||||||
Proceeds from sale of premises and equipment | 183 | 8 | |||||||||
Net cash provided by (used in) investing activities | $ | 132,544 | $ | (113,817) | |||||||
Financing Activities: | |||||||||||
Net (decrease) increase in: | |||||||||||
Deposits | $ | 86,175 | $ | (36,825) | |||||||
Short-term borrowings | (247,892) | (175) | |||||||||
Payments on finance lease liability | (43) | (39) | |||||||||
Payments of Federal Home Loan Bank borrowings | — | (15,000) | |||||||||
Payments of other long-term debt | (1,250) | — | |||||||||
Taxes paid relating to the release/lapse of restriction on RSUs | (549) | (236) | |||||||||
Dividends paid | (3,801) | (3,729) | |||||||||
Repurchase of common stock | — | (356) | |||||||||
Net cash used in financing activities | $ | (167,360) | $ | (56,360) | |||||||
Net change in cash and cash equivalents | $ | (17,217) | $ | (144,001) | |||||||
Cash and cash equivalents at beginning of period | 86,435 | 203,830 | |||||||||
Cash and cash equivalents at end of period | $ | 69,218 | $ | 59,829 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid during the period for interest | $ | 16,599 | $ | 5,466 | |||||||
Supplemental schedule of non-cash investing and financing activities: | |||||||||||
Transfer of loans held for investment to loans held for sale | $ | — | $ | 3,400 | |||||||
Investment securities purchased but not settled | — | 6,509 | |||||||||
Transfer of premises and equipment to assets held for sale | — | 628 | |||||||||
Transfer of debt securities available for sale to debt securities held to maturity | — | 1,253,179 | |||||||||
(in thousands) | June 9, 2022 | |||||||
Merger consideration | ||||||||
Cash consideration | $ | 46,672 | ||||||
Identifiable net assets acquired, at fair value | ||||||||
Assets acquired | ||||||||
Cash and due from banks | $ | 10,192 | ||||||
Interest earning deposits in banks | 67,855 | |||||||
Debt securities | 119,820 | |||||||
Loans held for investment | 281,326 | |||||||
Premises and equipment | 7,363 | |||||||
Core deposit intangible | 16,500 | |||||||
Other assets | 14,140 | |||||||
Total assets acquired | 517,196 | |||||||
Liabilities assumed | ||||||||
Deposits | $ | (463,638) | ||||||
Other liabilities | (3,117) | |||||||
Total liabilities assumed | (466,755) | |||||||
Identifiable net assets acquired, at fair value | 50,441 | |||||||
Bargain Purchase Gain | $ | 3,769 |
(in thousands) | June 9, 2022 | |||||||
Par value of PCD loans acquired | $ | 15,396 | ||||||
PCD ACL at acquisition | (3,371) | |||||||
Non-credit discount on PCD loans | (1,005) | |||||||
Purchase price of PCD loans | $ | 11,020 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Noninterest Expense | |||||||||||
Compensation and employee benefits | $ | 70 | $ | — | |||||||
Equipment | — | 5 | |||||||||
Legal and professional | — | 63 | |||||||||
Data processing | 65 | 38 | |||||||||
Marketing | — | 7 | |||||||||
Communications | — | 1 | |||||||||
Other | 1 | 14 | |||||||||
Total acquisition-related expenses | $ | 136 | $ | 128 |
As of December 31, 2022 | |||||||||||||||||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Allowance for Credit Loss related to Debt Securities | Fair Value | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,598 | $ | — | $ | 253 | $ | — | $ | 7,345 | |||||||||||||||||||
State and political subdivisions | 303,573 | 27 | 18,244 | — | 285,356 | ||||||||||||||||||||||||
Mortgage-backed securities | 6,165 | 11 | 232 | — | 5,944 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 172,568 | — | 25,375 | — | 147,193 | ||||||||||||||||||||||||
Corporate debt securities | 771,836 | 125 | 64,252 | — | 707,709 | ||||||||||||||||||||||||
Total available for sale debt securities | $ | 1,261,740 | $ | 163 | $ | 108,356 | $ | — | $ | 1,153,547 | |||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||||||
State and political subdivisions | $ | 538,746 | $ | — | $ | 88,349 | $ | — | $ | 450,397 | |||||||||||||||||||
Mortgage-backed securities | 81,032 | — | 12,851 | — | 68,181 | ||||||||||||||||||||||||
Collateralized mortgage obligations | 509,643 | — | 103,327 | — | 406,316 | ||||||||||||||||||||||||
Total held to maturity debt securities | $ | 1,129,421 | $ | — | $ | 204,527 | $ | — | $ | 924,894 |
As of March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
Number of Securities | Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||||||||
Available for Sale | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 187 | $ | 58,853 | $ | 2,606 | $ | 111,956 | $ | 9,334 | $ | 170,809 | $ | 11,940 | ||||||||||||||||||||||||||||
Mortgage-backed securities | 25 | 969 | 26 | 4,269 | 151 | 5,238 | 177 | ||||||||||||||||||||||||||||||||||
Collateralized loan obligations | 2 | 9,708 | 150 | — | — | 9,708 | 150 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 20 | 37,129 | 2,313 | 107,537 | 21,156 | 144,666 | 23,469 | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 152 | 133,706 | 5,121 | 424,397 | 54,500 | 558,103 | 59,621 | ||||||||||||||||||||||||||||||||||
Total | 386 | $ | 240,365 | $ | 10,216 | $ | 648,159 | $ | 85,141 | $ | 888,524 | $ | 95,357 |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Available for Sale | Number of Securities | Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||||||||
(in thousands, except number of securities) | |||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies and corporations | 8 | $ | 7,345 | $ | 253 | $ | — | $ | — | $ | 7,345 | $ | 253 | ||||||||||||||||||||||||||||
State and political subdivisions | 380 | 248,339 | 14,553 | 20,631 | 3,691 | 268,970 | 18,244 | ||||||||||||||||||||||||||||||||||
Mortgage-backed securities | 27 | 5,323 | 231 | 45 | 1 | 5,368 | 232 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations | 20 | 75,041 | 7,121 | 72,152 | 18,254 | 147,193 | 25,375 | ||||||||||||||||||||||||||||||||||
Corporate debt securities | 159 | 369,441 | 21,679 | 288,329 | 42,573 | 657,770 | 64,252 | ||||||||||||||||||||||||||||||||||
Total | 594 | $ | 705,489 | $ | 43,837 | $ | 381,157 | $ | 64,519 | $ | 1,086,646 | $ | 108,356 |
Available for Sale | Held to Maturity | ||||||||||||||||||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||
Due in one year or less | $ | 49,536 | $ | 49,128 | $ | 4,390 | $ | 4,375 | |||||||||||||||
Due after one year through five years | 563,764 | 516,820 | 116,601 | 105,326 | |||||||||||||||||||
Due after five years through ten years | 176,129 | 155,873 | 207,827 | 180,227 | |||||||||||||||||||
Due after ten years | 31,741 | 27,834 | 209,364 | 177,004 | |||||||||||||||||||
$ | 821,170 | $ | 749,655 | $ | 538,182 | $ | 466,932 | ||||||||||||||||
Mortgage-backed securities | 5,851 | 5,679 | 79,597 | 67,825 | |||||||||||||||||||
Collateralized loan obligations | 54,224 | 54,074 | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 168,135 | 144,666 | 499,930 | 403,778 | |||||||||||||||||||
Total | $ | 1,049,380 | $ | 954,074 | $ | 1,117,709 | $ | 938,535 |
As of | |||||||||||
(in thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Agricultural | $ | 106,641 | $ | 115,320 | |||||||
Commercial and industrial | 1,080,514 | 1,055,162 | |||||||||
Commercial real estate: | |||||||||||
Construction & development | 320,924 | 270,991 | |||||||||
Farmland | 182,528 | 183,913 | |||||||||
Multifamily | 255,065 | 252,129 | |||||||||
Commercial real estate-other | 1,290,454 | 1,272,985 | |||||||||
Total commercial real estate | 2,048,971 | 1,980,018 | |||||||||
Residential real estate: | |||||||||||
One- to four- family first liens | 448,459 | 451,210 | |||||||||
One- to four- family junior liens | 162,403 | 163,218 | |||||||||
Total residential real estate | 610,862 | 614,428 | |||||||||
Consumer | 72,377 | 75,596 | |||||||||
Loans held for investment, net of unearned income | 3,919,365 | 3,840,524 | |||||||||
Allowance for credit losses | (49,800) | (49,200) | |||||||||
Total loans held for investment, net | $ | 3,869,565 | $ | 3,791,324 |
Age Analysis of Past-Due Financial Assets | 90 Days or More Past Due And Accruing | ||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 105,506 | $ | 851 | $ | — | $ | 284 | $ | 106,641 | $ | — | |||||||||||||||||||||||
Commercial and industrial | 1,078,687 | 627 | 378 | 822 | 1,080,514 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | 320,924 | — | — | — | 320,924 | — | |||||||||||||||||||||||||||||
Farmland | 180,721 | 31 | — | 1,776 | 182,528 | — | |||||||||||||||||||||||||||||
Multifamily | 255,065 | — | — | — | 255,065 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,289,988 | — | 48 | 418 | 1,290,454 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 2,046,698 | 31 | 48 | 2,194 | 2,048,971 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 444,724 | 3,124 | 156 | 455 | 448,459 | 2 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 161,357 | 120 | 30 | 896 | 162,403 | — | |||||||||||||||||||||||||||||
Total residential real estate | 606,081 | 3,244 | 186 | 1,351 | 610,862 | 2 | |||||||||||||||||||||||||||||
Consumer | 72,235 | 125 | 10 | 7 | 72,377 | — | |||||||||||||||||||||||||||||
Total | $ | 3,909,207 | $ | 4,878 | $ | 622 | $ | 4,658 | $ | 3,919,365 | $ | 2 |
Age Analysis of Past-Due Financial Assets | 90 Days or More Past Due And Accruing | ||||||||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Agricultural | $ | 114,922 | $ | 100 | $ | — | $ | 298 | $ | 115,320 | $ | — | |||||||||||||||||||||||
Commercial and industrial | 1,052,406 | 922 | 111 | 1,723 | 1,055,162 | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | 270,905 | 86 | — | — | 270,991 | — | |||||||||||||||||||||||||||||
Farmland | 182,115 | 729 | — | 1,069 | 183,913 | — | |||||||||||||||||||||||||||||
Multifamily | 252,129 | — | — | — | 252,129 | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 1,266,874 | 5,574 | 45 | 492 | 1,272,985 | — | |||||||||||||||||||||||||||||
Total commercial real estate | 1,972,023 | 6,389 | 45 | 1,561 | 1,980,018 | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 446,066 | 3,177 | 954 | 1,013 | 451,210 | 565 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 161,989 | 301 | 78 | 850 | 163,218 | — | |||||||||||||||||||||||||||||
Total residential real estate | 608,055 | 3,478 | 1,032 | 1,863 | 614,428 | 565 | |||||||||||||||||||||||||||||
Consumer | 75,443 | 110 | 17 | 26 | 75,596 | — | |||||||||||||||||||||||||||||
Total | $ | 3,822,849 | $ | 10,999 | $ | 1,205 | $ | 5,471 | $ | 3,840,524 | $ | 565 |
Nonaccrual | Nonaccrual with no Allowance for Credit Losses | 90 Days or More Past Due And Accruing | |||||||||||||||||||||||||||||||||
(in thousands) | March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||
Agricultural | $ | 307 | $ | 377 | $ | 224 | $ | 281 | $ | — | $ | — | |||||||||||||||||||||||
Commercial and industrial | 2,192 | 2,728 | 483 | 1,049 | — | — | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction and development | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Farmland | 1,931 | 2,278 | 1,776 | 1,997 | — | — | |||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Commercial real estate-other | 6,191 | 6,397 | 4,121 | 5,647 | — | — | |||||||||||||||||||||||||||||
Total commercial real estate | 8,122 | 8,675 | 5,897 | 7,644 | — | — | |||||||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||||
One- to four- family first liens | 2,536 | 2,275 | 910 | 928 | 2 | 565 | |||||||||||||||||||||||||||||
One- to four- family junior liens | 1,258 | 1,165 | — | — | — | — | |||||||||||||||||||||||||||||
Total residential real estate | 3,794 | 3,440 | 910 | 928 | 2 | 565 | |||||||||||||||||||||||||||||
Consumer | 25 | 36 | — | — | — | — | |||||||||||||||||||||||||||||
Total | $ | 14,440 | $ | 15,256 | $ | 7,514 | $ | 9,902 | $ | 2 | $ | 565 | |||||||||||||||||||||||
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 (in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 7,088 | $ | 15,551 | $ | 11,339 | $ | 4,533 | $ | 1,598 | $ | 1,417 | $ | 56,139 | $ | 97,665 | |||||||||||||||||||||||||||||||
Special mention / watch | 6 | 224 | 859 | 208 | 8 | 534 | 3,412 | 5,251 | |||||||||||||||||||||||||||||||||||||||
Substandard | 1,918 | 114 | 193 | 258 | 3 | 294 | 945 | 3,725 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 9,012 | $ | 15,889 | $ | 12,391 | $ | 4,999 | $ | 1,609 | $ | 2,245 | $ | 60,496 | $ | 106,641 | |||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 37,423 | $ | 253,594 | $ | 224,460 | $ | 142,132 | $ | 44,485 | $ | 134,002 | $ | 184,382 | $ | 1,020,478 | |||||||||||||||||||||||||||||||
Special mention / watch | 465 | 1,788 | 1,544 | 4,770 | 418 | 4,988 | 14,638 | 28,611 | |||||||||||||||||||||||||||||||||||||||
Substandard | 621 | 2,966 | 2,617 | 1,474 | 768 | 18,058 | 4,921 | 31,425 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 38,509 | $ | 258,348 | $ | 228,621 | $ | 148,376 | $ | 45,671 | $ | 157,048 | $ | 203,941 | $ | 1,080,514 | |||||||||||||||||||||||||||||||
CRE - Construction and development | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 22,423 | $ | 167,846 | $ | 80,378 | $ | 20,349 | $ | 968 | $ | 1,534 | $ | 26,621 | $ | 320,119 | |||||||||||||||||||||||||||||||
Special mention / watch | — | 38 | 493 | — | — | — | — | 531 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 270 | — | — | — | 4 | — | 274 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 22,423 | $ | 168,154 | $ | 80,871 | $ | 20,349 | $ | 968 | $ | 1,538 | $ | 26,621 | $ | 320,924 | |||||||||||||||||||||||||||||||
CRE - Farmland | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 7,159 | $ | 53,083 | $ | 51,868 | $ | 26,650 | $ | 6,847 | $ | 19,184 | $ | 2,169 | $ | 166,960 | |||||||||||||||||||||||||||||||
Special mention / watch | — | 2,807 | 2,295 | 1,453 | — | 1,782 | 401 | 8,738 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 148 | 1,670 | 1,201 | 1,143 | 2,668 | — | 6,830 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 7,159 | $ | 56,038 | $ | 55,833 | $ | 29,304 | $ | 7,990 | $ | 23,634 | $ | 2,570 | $ | 182,528 | |||||||||||||||||||||||||||||||
CRE - Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 7,369 | $ | 31,621 | $ | 89,877 | $ | 84,000 | $ | 16,991 | $ | 7,644 | $ | 150 | $ | 237,652 | |||||||||||||||||||||||||||||||
Special mention / watch | — | 794 | — | 1,552 | — | 7,048 | — | 9,394 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | — | 7,687 | 332 | — | — | — | 8,019 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 7,369 | $ | 32,415 | $ | 97,564 | $ | 85,884 | $ | 16,991 | $ | 14,692 | $ | 150 | $ | 255,065 | |||||||||||||||||||||||||||||||
CRE - Other | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 62,285 | $ | 323,167 | $ | 304,661 | $ | 276,595 | $ | 82,956 | $ | 112,999 | $ | 51,359 | $ | 1,214,022 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,228 | 1,556 | 2,106 | 17,769 | 4,344 | 3,390 | 4,200 | 34,593 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 631 | 1,342 | 15,342 | 13,106 | 11,418 | — | 41,839 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 63,513 | $ | 325,354 | $ | 308,109 | $ | 309,706 | $ | 100,406 | $ | 127,807 | $ | 55,559 | $ | 1,290,454 | |||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | |||||||||||||||||||||||||||||||||||||||||||||||
Pass / Performing | $ | 14,958 | $ | 133,357 | $ | 101,064 | $ | 61,623 | $ | 22,345 | $ | 93,970 | $ | 10,811 | $ | 438,128 | |||||||||||||||||||||||||||||||
Special mention / watch | — | 702 | 465 | 726 | 1,973 | 1,091 | — | 4,957 | |||||||||||||||||||||||||||||||||||||||
Substandard / Nonperforming | — | 257 | 527 | 172 | 172 | 4,246 | — | 5,374 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 14,958 | $ | 134,316 | $ | 102,056 | $ | 62,521 | $ | 24,490 | $ | 99,307 | $ | 10,811 | $ | 448,459 | |||||||||||||||||||||||||||||||
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2023 (in thousands) | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 5,366 | $ | 35,258 | $ | 21,775 | $ | 8,553 | $ | 2,712 | $ | 9,338 | $ | 78,144 | $ | 161,146 | |||||||||||||||||||||||||||||||
Nonperforming | — | 24 | 23 | 29 | 149 | 933 | 99 | 1,257 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 5,366 | $ | 35,282 | $ | 21,798 | $ | 8,582 | $ | 2,861 | $ | 10,271 | $ | 78,243 | $ | 162,403 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 6,868 | $ | 27,975 | $ | 16,296 | $ | 6,940 | $ | 2,894 | $ | 7,226 | $ | 4,153 | $ | 72,352 | |||||||||||||||||||||||||||||||
Nonperforming | — | — | 5 | 6 | 8 | 6 | — | 25 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 6,868 | $ | 27,975 | $ | 16,301 | $ | 6,946 | $ | 2,902 | $ | 7,232 | $ | 4,153 | $ | 72,377 | |||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 158,705 | $ | 978,219 | $ | 863,647 | $ | 615,882 | $ | 176,190 | $ | 370,750 | $ | 331,631 | $ | 3,495,024 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,699 | 7,909 | 7,762 | 26,478 | 6,743 | 18,833 | 22,651 | 92,075 | |||||||||||||||||||||||||||||||||||||||
Substandard | 2,539 | 4,386 | 14,036 | 18,779 | 15,192 | 36,688 | 5,866 | 97,486 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Performing | 12,234 | 63,233 | 38,071 | 15,493 | 5,606 | 16,564 | 82,297 | 233,498 | |||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 24 | 28 | 35 | 157 | 939 | 99 | 1,282 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 175,177 | $ | 1,053,771 | $ | 923,544 | $ | 676,667 | $ | 203,888 | $ | 443,774 | $ | 442,544 | $ | 3,919,365 | |||||||||||||||||||||||||||||||
Current Period Gross Write-offs | |||||||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | 1 | |||||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | 105 | 171 | 44 | — | 320 | |||||||||||||||||||||||||||||||||||||||
CRE - Construction and development | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
CRE - Farmland | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
CRE - Multifamily | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
CRE - Other | — | — | — | — | — | 18 | — | 18 | |||||||||||||||||||||||||||||||||||||||
RRE - One-to-four-family first liens | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
RRE - One-to-four-family junior liens | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Consumer | — | 142 | — | — | 4 | 2 | — | 148 | |||||||||||||||||||||||||||||||||||||||
Total Current Period Gross Write-offs | $ | — | $ | 142 | $ | 1 | $ | 105 | $ | 175 | $ | 64 | $ | — | $ | 487 | |||||||||||||||||||||||||||||||
Term Loans by Origination Year | Revolving Loans | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2022 (in thousands) | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Total | ||||||||||||||||||||||||||||||||||||||||
Agricultural | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 20,279 | $ | 12,511 | $ | 5,398 | $ | 2,883 | $ | 939 | $ | 1,063 | $ | 65,395 | $ | 108,468 | |||||||||||||||||||||||||||||||
Special mention / watch | 143 | 1,012 | 115 | 36 | — | 604 | 1,655 | 3,565 | |||||||||||||||||||||||||||||||||||||||
Substandard | 48 | 646 | 366 | 4 | 7 | 302 | 1,914 | 3,287 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 20,470 | $ | 14,169 | $ | 5,879 | $ | 2,923 | $ | 946 | $ | 1,969 | $ | 68,964 | $ | 115,320 | |||||||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 262,500 | $ | 232,263 | $ | 151,567 | $ | 48,199 | $ | 27,680 | $ | 115,877 | $ | 163,205 | $ | 1,001,291 | |||||||||||||||||||||||||||||||
Special mention / watch | 3,975 | 3,574 | 5,465 | 592 | 3,299 | 1,864 | 12,299 | 31,068 | |||||||||||||||||||||||||||||||||||||||
Substandard | 556 | 166 | 1,172 | 756 | 556 | 18,585 | 1,012 | 22,803 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 267,031 | $ | 236,003 | $ | 158,204 | $ | 49,547 | $ | 31,535 | $ | 136,326 | $ | 176,516 | $ | 1,055,162 | |||||||||||||||||||||||||||||||
CRE - Construction and development | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 144,597 | $ | 73,832 | $ | 19,324 | $ | 989 | $ | 1,058 | $ | 549 | $ | 28,069 | $ | 268,418 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,787 | 499 | — | — | — | — | — | 2,286 | |||||||||||||||||||||||||||||||||||||||
Substandard | 281 | — | — | — | — | 6 | — | 287 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 146,665 | $ | 74,331 | $ | 19,324 | $ | 989 | $ | 1,058 | $ | 555 | $ | 28,069 | $ | 270,991 | |||||||||||||||||||||||||||||||
CRE - Farmland | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 55,251 | $ | 52,802 | $ | 28,744 | $ | 7,266 | $ | 8,406 | $ | 12,895 | $ | 1,946 | $ | 167,310 | |||||||||||||||||||||||||||||||
Special mention / watch | 3,058 | 2,229 | 1,470 | — | 225 | 21 | 1,693 | 8,696 | |||||||||||||||||||||||||||||||||||||||
Substandard | 148 | 1,974 | 1,192 | 1,136 | 1,459 | 1,998 | — | 7,907 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 58,457 | $ | 57,005 | $ | 31,406 | $ | 8,402 | $ | 10,090 | $ | 14,914 | $ | 3,639 | $ | 183,913 | |||||||||||||||||||||||||||||||
CRE - Multifamily | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 31,018 | $ | 93,907 | $ | 84,573 | $ | 17,137 | $ | 2,549 | $ | 5,161 | $ | 49 | $ | 234,394 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,000 | — | 1,567 | — | 5,931 | 1,178 | — | 9,676 | |||||||||||||||||||||||||||||||||||||||
Substandard | — | 7,725 | 334 | — | — | — | — | 8,059 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 32,018 | $ | 101,632 | $ | 86,474 | $ | 17,137 | $ | 8,480 | $ | 6,339 | $ | 49 | $ | 252,129 | |||||||||||||||||||||||||||||||
CRE - Other | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 322,753 | $ | 314,376 | $ | 296,368 | $ | 79,408 | $ | 31,041 | $ | 81,708 | $ | 51,064 | $ | 1,176,718 | |||||||||||||||||||||||||||||||
Special mention / watch | 8,858 | 3,399 | 13,245 | 10,365 | 1,137 | 8,122 | 2,518 | 47,644 | |||||||||||||||||||||||||||||||||||||||
Substandard | 752 | 589 | 19,702 | 13,294 | 10,197 | 4,089 | — | 48,623 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 332,363 | $ | 318,364 | $ | 329,315 | $ | 103,067 | $ | 42,375 | $ | 93,919 | $ | 53,582 | $ | 1,272,985 | |||||||||||||||||||||||||||||||
RRE - One- to four- family first liens | |||||||||||||||||||||||||||||||||||||||||||||||
Pass / Performing | $ | 139,289 | $ | 103,534 | $ | 63,627 | $ | 23,831 | $ | 21,868 | $ | 77,967 | $ | 11,438 | $ | 441,554 | |||||||||||||||||||||||||||||||
Special mention / watch | 1,074 | 611 | 672 | 1,920 | 150 | 702 | — | 5,129 | |||||||||||||||||||||||||||||||||||||||
Substandard / Nonperforming | 175 | 438 | 174 | 175 | 674 | 2,891 | — | 4,527 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total | $ | 140,538 | $ | 104,583 | $ | 64,473 | $ | 25,926 | $ | 22,692 | $ | 81,560 | $ | 11,438 | $ | 451,210 | |||||||||||||||||||||||||||||||
RRE - One- to four- family junior liens | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 37,296 | $ | 22,908 | $ | 8,906 | $ | 3,058 | $ | 3,757 | $ | 6,330 | $ | 79,798 | $ | 162,053 | |||||||||||||||||||||||||||||||
Nonperforming | — | 23 | 31 | 179 | 756 | 76 | 100 | 1,165 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 37,296 | $ | 22,931 | $ | 8,937 | $ | 3,237 | $ | 4,513 | $ | 6,406 | $ | 79,898 | $ | 163,218 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Performing | $ | 32,584 | $ | 18,979 | $ | 7,966 | $ | 3,489 | $ | 1,646 | $ | 6,641 | $ | 4,255 | $ | 75,560 | |||||||||||||||||||||||||||||||
Nonperforming | — | 2 | 16 | 9 | 4 | 5 | — | 36 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 32,584 | $ | 18,981 | $ | 7,982 | $ | 3,498 | $ | 1,650 | $ | 6,646 | $ | 4,255 | $ | 75,596 | |||||||||||||||||||||||||||||||
Total by Credit Quality Indicator Category | |||||||||||||||||||||||||||||||||||||||||||||||
Pass | $ | 975,687 | $ | 883,225 | $ | 649,601 | $ | 179,713 | $ | 93,541 | $ | 295,220 | $ | 321,166 | $ | 3,398,153 | |||||||||||||||||||||||||||||||
Special mention / watch | 19,895 | 11,324 | 22,534 | 12,913 | 10,742 | 12,491 | 18,165 | 108,064 | |||||||||||||||||||||||||||||||||||||||
Substandard | 1,960 | 11,538 | 22,940 | 15,365 | 12,893 | 27,871 | 2,926 | 95,493 | |||||||||||||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Performing | 69,880 | 41,887 | 16,872 | 6,547 | 5,403 | 12,971 | 84,053 | 237,613 | |||||||||||||||||||||||||||||||||||||||
Nonperforming | — | 25 | 47 | 188 | 760 | 81 | 100 | 1,201 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,067,422 | $ | 947,999 | $ | 711,994 | $ | 214,726 | $ | 123,339 | $ | 348,634 | $ | 426,410 | $ | 3,840,524 |
As of March 31, 2023 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,726 | $ | 1,443 | $ | 12,482 | $ | 1,632 | $ | — | $ | 17,283 | |||||||||||||||||||||||
Collectively evaluated for impairment | 104,915 | 1,079,071 | 2,036,489 | 609,230 | 72,377 | 3,902,082 | |||||||||||||||||||||||||||||
Total | $ | 106,641 | $ | 1,080,514 | $ | 2,048,971 | $ | 610,862 | $ | 72,377 | $ | 3,919,365 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 234 | $ | 1,664 | $ | 180 | $ | — | $ | 2,078 | |||||||||||||||||||||||
Collectively evaluated for impairment | 513 | 22,111 | 20,169 | 4,365 | 564 | 47,722 | |||||||||||||||||||||||||||||
Total | $ | 513 | $ | 22,345 | $ | 21,833 | $ | 4,545 | $ | 564 | $ | 49,800 |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
(in thousands) | Agricultural | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Consumer | Total | |||||||||||||||||||||||||||||
Loans held for investment, net of unearned income | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,531 | $ | 2,184 | $ | 15,768 | $ | 1,650 | $ | — | $ | 22,133 | |||||||||||||||||||||||
Collectively evaluated for impairment | 112,789 | 1,052,978 | 1,964,250 | 612,778 | 75,596 | 3,818,391 | |||||||||||||||||||||||||||||
Total | $ | 115,320 | $ | 1,055,162 | $ | 1,980,018 | $ | 614,428 | $ | 75,596 | $ | 3,840,524 | |||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 500 | $ | 600 | $ | 705 | $ | 180 | $ | — | $ | 1,985 | |||||||||||||||||||||||
Collectively evaluated for impairment | 423 | 22,255 | 19,418 | 4,498 | 621 | 47,215 | |||||||||||||||||||||||||||||
Total | $ | 923 | $ | 22,855 | $ | 20,123 | $ | 4,678 | $ | 621 | $ | 49,200 |
As of March 31, 2023 | ||||||||||||||||||||||||||||||||
(in thousands) | Primary Type of Collateral | |||||||||||||||||||||||||||||||
Real Estate | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||
Agricultural | $ | 1,513 | $ | 213 | $ | — | $ | 1,726 | $ | — | ||||||||||||||||||||||
Commercial and industrial | 716 | 198 | 529 | 1,443 | 234 | |||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Construction and development | — | — | — | — | — | |||||||||||||||||||||||||||
Farmland | 4,298 | — | — | 4,298 | — | |||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate-other | 7,985 | — | 199 | 8,184 | 1,664 | |||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
One- to four- family first liens | 911 | — | — | 911 | — | |||||||||||||||||||||||||||
One- to four- family junior liens | — | — | 721 | 721 | 180 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 15,423 | $ | 411 | $ | 1,449 | $ | 17,283 | $ | 2,078 |
As of December 31, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) | Primary Type of Collateral | |||||||||||||||||||||||||||||||
Real Estate | Equipment | Other | Total | ACL Allocation | ||||||||||||||||||||||||||||
Agricultural | $ | 68 | $ | 2,463 | $ | — | $ | 2,531 | $ | 500 | ||||||||||||||||||||||
Commercial and industrial | 856 | 736 | 592 | 2,184 | 600 | |||||||||||||||||||||||||||
Commercial real estate: | ||||||||||||||||||||||||||||||||
Construction and development | — | — | — | — | — | |||||||||||||||||||||||||||
Farmland | 4,515 | — | — | 4,515 | — | |||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate-other | 11,006 | — | 247 | 11,253 | 705 | |||||||||||||||||||||||||||
Residential real estate: | ||||||||||||||||||||||||||||||||
One- to four- family first liens | 929 | — | — | 929 | — | |||||||||||||||||||||||||||
One- to four- family junior liens | — | — | 721 | 721 | 180 | |||||||||||||||||||||||||||
Consumer | — | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 17,374 | $ | 3,199 | $ | 1,560 | $ | 22,133 | $ | 1,985 |
As of March 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Combination: | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Principal Forgiveness | Payment Delay | Term Extension | Interest Rate Reduction | Term Extension & Interest Rate Reduction | Principal Forgiveness & Term Extension | Principal Forgiveness, Term Extension, & Interest Rate Reduction | Total Class of Financing Receivable | ||||||||||||||||||||||||||||||||||||||||||
Agricultural | $ | — | $ | 16 | $ | 1,502 | $ | — | $ | — | $ | — | $ | — | 1.42 | % | ||||||||||||||||||||||||||||||||||
Commercial and industrial | — | — | 50 | — | 120 | 307 | — | 0.04 | % | |||||||||||||||||||||||||||||||||||||||||
CRE - Other | — | — | — | — | — | — | 20 | — | % | |||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 16 | $ | 1,552 | $ | — | $ | 120 | $ | 307 | $ | 20 |
As of March 31, 2023 | |||||||||||||||||||||||||||||
(in thousands) | Current | 30 - 59 Days Past Due | 60 - 89 Days Past Due | 90 Days or More Past Due | Total | ||||||||||||||||||||||||
Agricultural | $ | 1,518 | $ | — | $ | — | $ | — | $ | 1,518 | |||||||||||||||||||
Commercial and industrial | 477 | — | — | — | 477 | ||||||||||||||||||||||||
CRE - Other | — | — | — | 20 | 20 | ||||||||||||||||||||||||
Total | $ | 1,995 | $ | — | $ | — | $ | 20 | $ | 2,015 |
March 31, 2023 (dollars in thousands) | Principal Forgiveness | Weighted Average Interest Rate Reduction | Weighted Average Term Extension (Years) | |||||||||||||||||
Agricultural | $ | — | — | % | 2.37 | |||||||||||||||
Commercial and industrial | 63 | 1.25 | % | 11.89 | ||||||||||||||||
CRE - Other | 18 | 7.00 | % | 2.47 | ||||||||||||||||
Total | $ | 81 | 2.07 | % | 4.64 |
As of March 31, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | |||||||||||||||||||||||||||||||||||
(in thousands) | Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||||||
Designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Fair value hedges: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 23,819 | $ | 1,995 | $ | — | $ | 24,018 | $ | 2,556 | $ | — | ||||||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | 50,000 | 161 | 23 | — | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 73,819 | $ | 2,156 | $ | 23 | $ | 24,018 | $ | 2,556 | $ | — | ||||||||||||||||||||||||||
Not designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 307,450 | $ | 16,256 | $ | 16,257 | $ | 331,197 | $ | 21,084 | $ | 21,087 | ||||||||||||||||||||||||||
RPAs - protection purchased | 24,812 | — | — | 9,421 | — | — | ||||||||||||||||||||||||||||||||
Interest rate lock commitments | 3,696 | 101 | — | 1,372 | 7 | — | ||||||||||||||||||||||||||||||||
Interest rate forward loan sales contracts | 3,950 | — | 22 | 1,400 | 8 | — | ||||||||||||||||||||||||||||||||
Total | $ | 339,908 | $ | 16,357 | $ | 16,279 | $ | 343,390 | $ | 21,099 | $ | 21,087 |
Location and Amount of Gain or Loss Recognized in Income on Hedging Relationships | |||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(in thousands) | Interest Income | Other Income | Interest Income | Other Income | |||||||||||||||||||
Total amounts of income and expense line items presented in the consolidated statements of income in which the effects of fair value or cash flow hedges are recorded | $ | 159 | $ | — | $ | (104) | $ | — | |||||||||||||||
The effects of fair value and cash flow hedging: | |||||||||||||||||||||||
Gain (loss) on fair value hedging relationships in subtopic 815-20: | |||||||||||||||||||||||
Interest contracts: | |||||||||||||||||||||||
Hedged items | 562 | — | (1,553) | — | |||||||||||||||||||
Derivative designated as hedging instruments | (402) | — | 942 | — | |||||||||||||||||||
Income statement effect of cash flow hedging relationships in subtopic 815-20: | |||||||||||||||||||||||
Interest contracts: | |||||||||||||||||||||||
Amount reclassified from AOCI into income | — | — | — | — |
Line Item in the Balance Sheet in Which the Hedged Item is Included | Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | ||||||||||||
(in thousands) | ||||||||||||||
Loans | $ | 21,854 | $ | (1,996) |
Location in the Consolidated Statements of Income | For the Three Months Ended March 31, | |||||||||||||||||||
(in thousands) | 2023 | 2022 | ||||||||||||||||||
Interest rate swaps | Other income | $ | — | $ | (5) | |||||||||||||||
RPAs | Other income | 69 | (1) | |||||||||||||||||
Interest rate lock commitments | Loan revenue | 94 | 381 | |||||||||||||||||
Interest rate forward loan sales contracts | Loan revenue | (30) | (311) | |||||||||||||||||
Total | $ | 133 | $ | 64 |
Gross Amounts Not Offset in the Balance Sheet | |||||||||||||||||||||||||||||||||||
(in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Balance Sheet | Net Amounts presented in the Balance Sheet | Financial Instruments | Cash Collateral Received / Paid | Net Assets /Liabilities | |||||||||||||||||||||||||||||
As of March 31, 2023 | |||||||||||||||||||||||||||||||||||
Asset Derivatives | $ | 18,513 | $ | — | $ | 18,513 | $ | — | $ | 15,091 | $ | 3,422 | |||||||||||||||||||||||
Liability Derivatives | 16,302 | — | 16,302 | — | 3,000 | 13,302 | |||||||||||||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
Asset Derivatives | $ | 23,655 | $ | — | $ | 23,655 | $ | — | $ | 18,858 | $ | 4,797 | |||||||||||||||||||||||
Liability Derivatives | 21,087 | — | 21,087 | — | 3,460 | 17,627 |
As of March 31, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||
Core deposit intangible | $ | 58,245 | $ | (37,401) | $ | 20,844 | $ | 58,245 | $ | (35,822) | $ | 22,423 | ||||||||||||||||||||||||||
Customer relationship intangible | 5,265 | (4,648) | 617 | 5,265 | (4,490) | 775 | ||||||||||||||||||||||||||||||||
Other | 2,700 | (2,638) | 62 | 2,700 | (2,623) | 77 | ||||||||||||||||||||||||||||||||
$ | 66,210 | $ | (44,687) | $ | 21,523 | $ | 66,210 | $ | (42,935) | $ | 23,275 | |||||||||||||||||||||||||||
Indefinite-lived trade name intangible | $ | 7,040 | $ | 7,040 |
(in thousands) | Core Deposit Intangible | Customer Relationship Intangible | Other | Total | |||||||||||||||||||
2023 | $ | 4,098 | $ | 360 | $ | 36 | $ | 4,494 | |||||||||||||||
2024 | 4,705 | 239 | 24 | 4,968 | |||||||||||||||||||
2025 | 3,751 | 18 | 2 | 3,771 | |||||||||||||||||||
2026 | 2,797 | — | — | 2,797 | |||||||||||||||||||
2027 | 1,843 | — | — | 1,843 | |||||||||||||||||||
Thereafter | 3,650 | — | — | 3,650 | |||||||||||||||||||
Total | $ | 20,844 | $ | 617 | $ | 62 | $ | 21,523 |
(in thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Bank-owned life insurance | $ | 96,141 | $ | 95,539 | |||||||
Interest receivable | 26,864 | 27,090 | |||||||||
FHLB stock | 10,086 | 19,248 | |||||||||
Mortgage servicing rights | 13,736 | 13,421 | |||||||||
Operating lease right-of-use assets, net | 2,536 | 2,492 | |||||||||
Federal and state income taxes, current | 1,630 | 2,366 | |||||||||
Federal and state income taxes, deferred | 36,039 | 39,071 | |||||||||
Derivative assets | 18,513 | 23,655 | |||||||||
Other receivables/assets | 14,040 | 13,635 | |||||||||
$ | 219,585 | $ | 236,517 |
(in thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Noninterest bearing deposits | $ | 989,469 | $ | 1,053,450 | |||||||
Interest checking deposits | 1,476,948 | 1,624,278 | |||||||||
Money market deposits | 969,238 | 937,340 | |||||||||
Savings deposits | 631,811 | 664,169 | |||||||||
Time deposits under $250 | 965,841 | 559,466 | |||||||||
Time deposits of $250 or more | 521,846 | 630,239 | |||||||||
Total deposits | $ | 5,555,153 | $ | 5,468,942 |
March 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
(in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | ||||||||||||||||||||||
Securities sold under agreements to repurchase | 1.25 | % | $ | 137,481 | 1.32 | % | $ | 156,373 | ||||||||||||||||||
Federal Home Loan Bank advances | 5.05 | 6,500 | 4.48 | 235,500 | ||||||||||||||||||||||
Total | 1.42 | % | $ | 143,981 | 3.22 | % | $ | 391,873 |
(in thousands) | Face Value | Book Value | Interest Rate | Rate | Maturity Date | Callable Date | ||||||||||||||||||||||||||||||||
March 31, 2023 | ||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,938 | Three-month LIBOR + 1.68% | 6.55 | % | 06/15/2036 | 06/15/2011 | |||||||||||||||||||||||||||||
ATBancorp Statutory Trust II | 12,372 | 10,985 | Three-month LIBOR + 1.65% | 6.52 | % | 09/15/2037 | 06/15/2012 | |||||||||||||||||||||||||||||||
Barron Investment Capital Trust I | 2,062 | 1,839 | Three-month LIBOR + 2.15% | 7.17 | % | 09/23/2036 | 09/23/2011 | |||||||||||||||||||||||||||||||
Central Bancshares Capital Trust II | 7,217 | 6,934 | Three-month LIBOR + 3.50% | 8.37 | % | 03/15/2038 | 03/15/2013 | |||||||||||||||||||||||||||||||
MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 6.46 | % | 12/15/2037 | 12/15/2012 | |||||||||||||||||||||||||||||||
Total | $ | 44,847 | $ | 42,160 | ||||||||||||||||||||||||||||||||||
December 31, 2022 | ||||||||||||||||||||||||||||||||||||||
ATBancorp Statutory Trust I | $ | 7,732 | $ | 6,928 | Three-month LIBOR + 1.68% | 6.45 | % | 06/15/2036 | 06/15/2011 | |||||||||||||||||||||||||||||
ATBancorp Statutory Trust II | 12,372 | 10,969 | Three-month LIBOR + 1.65% | 6.42 | % | 09/15/2037 | 06/15/2012 | |||||||||||||||||||||||||||||||
Barron Investment Capital Trust I | 2,062 | 1,832 | Three-month LIBOR + 2.15% | 6.88 | % | 09/23/2036 | 09/23/2011 | |||||||||||||||||||||||||||||||
Central Bancshares Capital Trust II | 7,217 | 6,923 | Three-month LIBOR + 3.50% | 8.27 | % | 03/15/2038 | 03/15/2013 | |||||||||||||||||||||||||||||||
MidWestOne Statutory Trust II | 15,464 | 15,464 | Three-month LIBOR + 1.59% | 6.36 | % | 12/15/2037 | 12/15/2012 | |||||||||||||||||||||||||||||||
Total | $ | 44,847 | $ | 42,116 | ||||||||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(in thousands) | Weighted Average Rate | Balance | Weighted Average Rate | Balance | |||||||||||||||||||
Finance lease payable | 8.89 | % | $ | 744 | 8.89 | % | $ | 787 | |||||||||||||||
FHLB borrowings | 2.91 | 17,288 | 2.91 | 17,301 | |||||||||||||||||||
Note payable to unaffiliated bank | 6.22 | 13,750 | 5.67 | 15,000 | |||||||||||||||||||
Total | 4.48 | % | $ | 31,782 | 4.30 | % | $ | 33,088 |
(in thousands) | Weighted Average Rate | Amount | ||||||||||||
Due in 2023 | 2.79 | % | $ | 11,000 | ||||||||||
Due in 2024 | 3.11 | % | 6,250 | |||||||||||
Total | 2.91 | % | 17,250 | |||||||||||
Valuation adjustment from acquisition accounting | 38 | |||||||||||||
Total | $ | 17,288 |
Three Months Ended March 31, | |||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2022 | |||||||||
Basic Earnings Per Share: | |||||||||||
Net income | $ | 1,397 | $ | 13,895 | |||||||
Weighted average shares outstanding | 15,649,651 | 15,683,136 | |||||||||
Basic earnings per common share | $ | 0.09 | $ | 0.89 | |||||||
Diluted Earnings Per Share: | |||||||||||
Net income | $ | 1,397 | $ | 13,895 | |||||||
Weighted average shares outstanding, including all dilutive potential shares | 15,691,168 | 15,717,960 | |||||||||
Diluted earnings per common share | $ | 0.09 | $ | 0.88 |
Actual | For Capital Adequacy Purposes With Capital Conservation Buffer(1) | To Be Well Capitalized Under Prompt Corrective Action Provisions | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||||
At March 31, 2023 | |||||||||||||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $654,151 | 12.31% | $557,940 | 10.50% | N/A | N/A | |||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 540,980 | 10.18 | 451,666 | 8.50 | N/A | N/A | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 498,820 | 9.39 | 371,960 | 7.00 | N/A | N/A | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 540,980 | 8.30 | 260,813 | 4.00 | N/A | N/A | |||||||||||||||||||||||||||||
MidWestOne Bank: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $653,184 | 12.31% | $557,101 | 10.50% | $530,573 | 10.00% | |||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 605,014 | 11.40 | 450,987 | 8.50 | 424,458 | 8.00 | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 605,014 | 11.40 | 371,401 | 7.00 | 344,872 | 6.50 | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 605,014 | 9.28 | 260,685 | 4.00 | 325,857 | 5.00 | |||||||||||||||||||||||||||||
At December 31, 2022 | |||||||||||||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $653,380 | 12.07% | $568,452 | 10.50% | N/A | N/A | |||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 544,300 | 10.05 | 460,175 | 8.50 | N/A | N/A | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 502,184 | 9.28 | 378,968 | 7.00 | N/A | N/A | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 544,300 | 8.35 | 260,891 | 4.00 | N/A | N/A | |||||||||||||||||||||||||||||
MidWestOne Bank: | |||||||||||||||||||||||||||||||||||
Total capital/risk weighted assets | $654,297 | 12.10% | $567,684 | 10.50% | $540,652 | 10.00% | |||||||||||||||||||||||||||||
Tier 1 capital/risk weighted assets | 610,217 | 11.29 | 459,554 | 8.50 | 432,522 | 8.00 | |||||||||||||||||||||||||||||
Common equity tier 1 capital/risk weighted assets | 610,217 | 11.29 | 378,456 | 7.00 | 351,424 | 6.50 | |||||||||||||||||||||||||||||
Tier 1 leverage capital/average assets | 610,217 | 9.36 | 260,776 | 4.00 | 325,970 | 5.00 | |||||||||||||||||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(in thousands) | |||||||||||
Commitments to extend credit | $ | 1,205,902 | $ | 1,190,607 | |||||||
Commitments to sell loans | 2,553 | 612 | |||||||||
Standby letters of credit | 17,374 | 18,398 | |||||||||
Total | $ | 1,225,829 | $ | 1,209,617 |
Fair Value Measurement at March 31, 2023 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Available for sale debt securities: | |||||||||||||||||||||||
State and political subdivisions | $ | 184,581 | $ | — | $ | 184,581 | $ | — | |||||||||||||||
Mortgage-backed securities | 5,679 | — | 5,679 | — | |||||||||||||||||||
Collateralized loan obligations | 54,074 | — | 54,074 | — | |||||||||||||||||||
Collateralized mortgage obligations | 144,666 | — | 144,666 | — | |||||||||||||||||||
Corporate debt securities | 565,074 | — | 565,074 | — | |||||||||||||||||||
Derivative assets | 18,513 | — | 18,412 | 101 | |||||||||||||||||||
Mortgage servicing rights | 13,736 | — | 13,736 | — | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative liabilities | $ | 16,302 | $ | — | $ | 16,302 | $ | — |
Fair Value Measurement at December 31, 2022 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Debt securities available for sale: | |||||||||||||||||||||||
U.S. Government agencies and corporations | $ | 7,345 | $ | — | $ | 7,345 | $ | — | |||||||||||||||
State and political subdivisions | 285,356 | — | 285,356 | — | |||||||||||||||||||
Mortgage-backed securities | 5,944 | — | 5,944 | — | |||||||||||||||||||
Collateralized mortgage obligations | 147,193 | — | 147,193 | — | |||||||||||||||||||
Corporate debt securities | 707,709 | — | 707,709 | — | |||||||||||||||||||
Derivative assets | 23,655 | — | 23,648 | 7 | |||||||||||||||||||
Mortgage servicing rights | 13,421 | — | 13,421 | — | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivative liabilities | $ | 21,087 | $ | — | $ | 21,087 | $ | — |
Fair Value at | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | March 31, 2023 | December 31, 2022 | Valuation Techniques(s) | Unobservable Input | Range of Inputs | Weighted Average | |||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 101 | $ | 7 | Quoted or published market prices of similar instruments, adjusted for factors such as pull-through rate assumptions | Pull-through rate | 71% | - | 100% | 92% |
Fair Value Measurement at March 31, 2023 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Collateral dependent individually analyzed loans | $ | 3,666 | $ | — | $ | — | $ | 3,666 | |||||||||||||||
Fair Value Measurement at December 31, 2022 Using | |||||||||||||||||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Collateral dependent individually analyzed loans | $ | 3,159 | $ | — | $ | — | $ | 3,159 | |||||||||||||||
Foreclosed assets, net | 103 | — | — | 103 |
March 31, 2023 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 69,218 | $ | 69,218 | $ | 69,218 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 954,074 | 954,074 | — | 954,074 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 1,117,709 | 938,535 | — | 938,535 | — | ||||||||||||||||||||||||
Loans held for sale | 2,553 | 2,594 | — | 2,594 | — | ||||||||||||||||||||||||
Loans held for investment, net | 3,869,565 | 3,767,718 | — | — | 3,767,718 | ||||||||||||||||||||||||
Interest receivable | 26,864 | 26,864 | — | 26,864 | — | ||||||||||||||||||||||||
FHLB stock | 10,086 | 10,086 | — | 10,086 | — | ||||||||||||||||||||||||
Derivative assets | 18,513 | 18,513 | — | 18,412 | 101 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 989,469 | 989,469 | 989,469 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,565,684 | 4,548,622 | 3,077,997 | 1,470,625 | — | ||||||||||||||||||||||||
Short-term borrowings | 143,981 | 143,981 | 143,981 | — | — | ||||||||||||||||||||||||
Finance leases payable | 744 | 744 | — | 744 | — | ||||||||||||||||||||||||
FHLB borrowings | 17,288 | 17,111 | — | 17,111 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,160 | 36,067 | — | 36,067 | — | ||||||||||||||||||||||||
Subordinated debentures | 64,039 | 62,598 | — | 62,598 | — | ||||||||||||||||||||||||
Other long-term debt | 13,750 | 13,750 | — | 13,750 | — | ||||||||||||||||||||||||
Derivative liabilities | 16,302 | 16,302 | — | 16,302 | — | ||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
(in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 86,435 | $ | 86,435 | $ | 86,435 | $ | — | $ | — | |||||||||||||||||||
Debt securities available for sale | 1,153,547 | 1,153,547 | — | 1,153,547 | — | ||||||||||||||||||||||||
Debt securities held to maturity | 1,129,421 | 924,894 | — | 924,894 | — | ||||||||||||||||||||||||
Loans held for sale | 612 | 622 | — | 622 | — | ||||||||||||||||||||||||
Loans held for investment, net | 3,791,324 | 3,702,527 | — | — | 3,702,527 | ||||||||||||||||||||||||
Interest receivable | 27,090 | 27,090 | — | 27,090 | — | ||||||||||||||||||||||||
FHLB stock | 19,248 | 19,248 | — | 19,248 | — | ||||||||||||||||||||||||
Derivative assets | 23,655 | 23,655 | — | 23,648 | 7 | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Noninterest bearing deposits | 1,053,450 | 1,053,450 | 1,053,450 | — | — | ||||||||||||||||||||||||
Interest bearing deposits | 4,415,492 | 4,393,315 | 3,225,787 | 1,167,528 | — | ||||||||||||||||||||||||
Short-term borrowings | 391,873 | 391,873 | 391,873 | — | — | ||||||||||||||||||||||||
Finance leases payable | 787 | 787 | — | 787 | — | ||||||||||||||||||||||||
FHLB borrowings | 17,301 | 17,032 | — | 17,032 | — | ||||||||||||||||||||||||
Junior subordinated notes issued to capital trusts | 42,116 | 39,023 | — | 39,023 | — | ||||||||||||||||||||||||
Subordinated debentures | 64,006 | 64,004 | — | 64,004 | — | ||||||||||||||||||||||||
Other long-term debt | 15,000 | 15,000 | — | 15,000 | — | ||||||||||||||||||||||||
Derivative liabilities | 21,087 | 21,087 | — | 21,087 | — |
(in thousands) | Classification | March 31, 2023 | December 31, 2022 | |||||||||||||||||
Operating lease right-of-use assets | $ | 2,536 | $ | 2,492 | ||||||||||||||||
Finance lease right-of-use asset | 326 | 350 | ||||||||||||||||||
Total right-of-use assets | $ | 2,862 | $ | 2,842 | ||||||||||||||||
Operating lease liability | $ | 3,364 | $ | 3,359 | ||||||||||||||||
Finance lease liability | 744 | 787 | ||||||||||||||||||
Total lease liabilities | $ | 4,108 | $ | 4,146 | ||||||||||||||||
Weighted-average remaining lease term: | Operating leases | 10.08 years | 9.23 years | |||||||||||||||||
Finance lease | 3.42 years | 3.67 years | ||||||||||||||||||
Weighted-average discount rate: | Operating leases | 4.33 | % | 4.23 | % | |||||||||||||||
Finance lease | 8.89 | % | 8.89 | % |
Three Months Ended | |||||||||||
March 31, | |||||||||||
(in thousands) | 2023 | 2022 | |||||||||
Lease Costs | |||||||||||
Operating lease cost | $ | 292 | $ | 296 | |||||||
Variable lease cost | 7 | 21 | |||||||||
Interest on lease liabilities(1) | 17 | 20 | |||||||||
Amortization of right-of-use assets | 24 | 24 | |||||||||
Net lease cost | $ | 340 | $ | 361 | |||||||
Other Information | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | 605 | $ | 596 | |||||||
Operating cash flows from finance lease | 17 | 20 | |||||||||
Finance cash flows from finance lease | 43 | 39 | |||||||||
Supplemental non-cash information on lease liabilities: | |||||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 292 | — |
(in thousands) | Finance Leases | Operating Leases | |||||||||
December 31, 2023 | $ | 184 | $ | 845 | |||||||
December 31, 2024 | 250 | 892 | |||||||||
December 31, 2025 | 255 | 422 | |||||||||
December 31, 2026 | 172 | 328 | |||||||||
December 31, 2027 | — | 243 | |||||||||
Thereafter | — | 1,708 | |||||||||
Total undiscounted lease payment | $ | 861 | $ | 4,438 | |||||||
Amounts representing interest | (117) | (1,074) | |||||||||
Lease liability | $ | 744 | $ | 3,364 |
As of or for the Three Months Ended March 31, | |||||||||||
(dollars in thousands, except per share amounts) | 2023 | 2022 | |||||||||
Net Interest Income | $ | 40,076 | $ | 37,336 | |||||||
Noninterest Income (Loss) | (4,046) | 11,644 | |||||||||
Total Revenue, Net of Interest Expense | 36,030 | 48,980 | |||||||||
Credit Loss Expense | 933 | — | |||||||||
Noninterest Expense | 33,319 | 31,643 | |||||||||
Income Before Income Tax Expense | 1,778 | 17,337 | |||||||||
Income Tax Expense | 381 | 3,442 | |||||||||
Net Income | 1,397 | 13,895 | |||||||||
Diluted Earnings Per Share | $ | 0.09 | $ | 0.88 | |||||||
Return on Average Assets | 0.09 | % | 0.95 | % | |||||||
Return on Average Equity | 1.14 | 10.74 | |||||||||
Return on Average Tangible Equity(1) | 2.70 | 13.56 | |||||||||
Efficiency Ratio(1) | 62.32 | 60.46 | |||||||||
Dividend Payout Ratio | 269.44 | 26.69 | |||||||||
Common Equity Ratio | 7.81 | 8.46 | |||||||||
Tangible Common Equity Ratio(1) | 6.48 | 7.20 | |||||||||
Book Value per Share | $ | 31.94 | $ | 32.15 | |||||||
Tangible Book Value per Share(1) | 26.13 | 26.98 | |||||||||
(1) A non-GAAP financial measure. See "Non-GAAP Financial Measures" for a reconciliation to the most comparable GAAP equivalents. | |||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Average Yield/ Cost | Average Balance | Interest Income/ Expense | Average Yield/ Cost | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Loans, including fees (1)(2)(3) | $ | 3,867,110 | $ | 47,206 | 4.95 | % | $ | 3,245,449 | $ | 31,858 | 3.98 | % | |||||||||||||||||||||||
Taxable investment securities | 1,811,388 | 10,444 | 2.34 | 1,835,911 | 8,123 | 1.79 | |||||||||||||||||||||||||||||
Tax-exempt investment securities (2)(4) | 397,110 | 2,649 | 2.71 | 450,547 | 2,998 | 2.70 | |||||||||||||||||||||||||||||
Total securities held for investment (2) | 2,208,498 | 13,093 | 2.40 | 2,286,458 | 11,121 | 1.97 | |||||||||||||||||||||||||||||
Other | 24,848 | 244 | 3.98 | 56,094 | 28 | 0.20 | |||||||||||||||||||||||||||||
Total interest earning assets (2) | $ | 6,100,456 | $ | 60,543 | 4.02 | % | $ | 5,588,001 | $ | 43,007 | 3.12 | % | |||||||||||||||||||||||
Other assets | 423,609 | 326,603 | |||||||||||||||||||||||||||||||||
Total assets | $ | 6,524,065 | $ | 5,914,604 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||
Interest checking deposits | $ | 1,515,845 | $ | 1,849 | 0.49 | % | $ | 1,560,402 | $ | 1,061 | 0.28 | % | |||||||||||||||||||||||
Money market deposits | 930,543 | 3,269 | 1.42 | 953,943 | 499 | 0.21 | |||||||||||||||||||||||||||||
Savings deposits | 653,043 | 272 | 0.17 | 641,703 | 279 | 0.18 | |||||||||||||||||||||||||||||
Time deposits | 1,417,688 | 9,929 | 2.84 | 883,997 | 1,071 | 0.49 | |||||||||||||||||||||||||||||
Total interest bearing deposits | 4,517,119 | 15,319 | 1.38 | 4,040,045 | 2,910 | 0.29 | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 145,809 | 450 | 1.25 | 159,417 | 96 | 0.24 | |||||||||||||||||||||||||||||
Other short-term borrowings | 111,306 | 1,336 | 4.87 | 3,029 | 23 | 3.08 | |||||||||||||||||||||||||||||
Total short-term borrowings | 257,115 | 1,786 | 2.82 | 162,446 | 119 | 0.30 | |||||||||||||||||||||||||||||
Long-term debt | 139,208 | 2,124 | 6.19 | 140,389 | 1,487 | 4.30 | |||||||||||||||||||||||||||||
Total borrowed funds | 396,323 | 3,910 | 4.00 | 302,835 | 1,606 | 2.15 | |||||||||||||||||||||||||||||
Total interest bearing liabilities | $ | 4,913,442 | $ | 19,229 | 1.59 | % | $ | 4,342,880 | $ | 4,516 | 0.42 | % | |||||||||||||||||||||||
Noninterest bearing deposits | 1,029,575 | 1,004,001 | |||||||||||||||||||||||||||||||||
Other liabilities | 82,501 | 42,872 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 498,547 | 524,851 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 6,524,065 | $ | 5,914,604 | |||||||||||||||||||||||||||||||
Net interest income (2) | $ | 41,314 | $ | 38,491 | |||||||||||||||||||||||||||||||
Net interest spread(2) | 2.43 | % | 2.70 | % | |||||||||||||||||||||||||||||||
Net interest margin(2) | 2.75 | % | 2.79 | % | |||||||||||||||||||||||||||||||
Total deposits(5) | $ | 5,546,694 | $ | 15,319 | 1.12 | % | $ | 5,044,046 | $ | 2,910 | 0.23 | % | |||||||||||||||||||||||
Cost of funds(6) | 1.31 | % | 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 and $674 thousand for the three months ended March 31, 2023 and March 31, 2022, respectively. Loan purchase discount accretion was $1.2 million and $732 thousand for the three months ended March 31, 2023 and March 31, 2022, respectively. Tax equivalent adjustments were $716 thousand and $540 thousand for the three months ended March 31, 2023 and March 31, 2022, respectively. The federal statutory tax rate utilized was 21%. | ||||
(4) | Interest income includes tax equivalent adjustments of $522 thousand and $615 thousand for the three months ended March 31, 2023 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. | ||||
Three Months Ended March 31, | |||||||||||||||||
2023 Compared to 2022 Change due to | |||||||||||||||||
(in thousands) | Volume | Yield/Cost | Net | ||||||||||||||
Increase (decrease) in interest income: | |||||||||||||||||
Loans, including fees (1) | $ | 6,755 | $ | 8,593 | $ | 15,348 | |||||||||||
Taxable investment securities | (111) | 2,432 | 2,321 | ||||||||||||||
Tax-exempt investment securities (1) | (360) | 11 | (349) | ||||||||||||||
Total securities held for investment (1) | (471) | 2,443 | 1,972 | ||||||||||||||
Other | (23) | 239 | 216 | ||||||||||||||
Change in interest income (1) | 6,261 | 11,275 | 17,536 | ||||||||||||||
Increase (decrease) in interest expense: | |||||||||||||||||
Interest checking deposits | (31) | 819 | 788 | ||||||||||||||
Money market deposits | (12) | 2,782 | 2,770 | ||||||||||||||
Savings deposits | 6 | (13) | (7) | ||||||||||||||
Time deposits | 991 | 7,867 | 8,858 | ||||||||||||||
Total interest-bearing deposits | 954 | 11,455 | 12,409 | ||||||||||||||
Securities sold under agreements to repurchase | (9) | 363 | 354 | ||||||||||||||
Other short-term borrowings | 1,293 | 20 | 1,313 | ||||||||||||||
Total short-term borrowings | 1,284 | 383 | 1,667 | ||||||||||||||
Long-term debt | (13) | 650 | 637 | ||||||||||||||
Total borrowed funds | 1,271 | 1,033 | 2,304 | ||||||||||||||
Change in interest expense | 2,225 | 12,488 | 14,713 | ||||||||||||||
Change in net interest income | $ | 4,036 | $ | (1,213) | $ | 2,823 | |||||||||||
Percentage increase in net interest income over prior period | 7.3 | % | |||||||||||||||
(1) Tax equivalent, using a federal statutory tax rate of 21%. |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | $ Change | % Change | |||||||||||||||||||
Investment services and trust activities | $ | 2,933 | $ | 3,011 | $ | (78) | (2.6) | % | |||||||||||||||
Service charges and fees | 2,008 | 1,657 | 351 | 21.2 | |||||||||||||||||||
Card revenue | 1,748 | 1,650 | 98 | 5.9 | |||||||||||||||||||
Loan revenue | 1,420 | 4,293 | (2,873) | (66.9) | |||||||||||||||||||
Bank-owned life insurance | 602 | 531 | 71 | 13.4 | |||||||||||||||||||
Investment securities (losses) gains, net | (13,170) | 40 | (13,210) | (33,025.0) | |||||||||||||||||||
Other | 413 | 462 | (49) | (10.6) | |||||||||||||||||||
Total noninterest (loss) income | $ | (4,046) | $ | 11,644 | $ | (15,690) | (134.7) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands) | 2023 | 2022 | $ Change | % Change | |||||||||||||||||||
Compensation and employee benefits | $ | 19,607 | $ | 18,664 | $ | 943 | 5.1 | % | |||||||||||||||
Occupancy expense of premises, net | 2,746 | 2,779 | (33) | (1.2) | |||||||||||||||||||
Equipment | 2,171 | 1,901 | 270 | 14.2 | |||||||||||||||||||
Legal and professional | 1,736 | 2,353 | (617) | (26.2) | |||||||||||||||||||
Data processing | 1,363 | 1,231 | 132 | 10.7 | |||||||||||||||||||
Marketing | 986 | 1,029 | (43) | (4.2) | |||||||||||||||||||
Amortization of intangibles | 1,752 | 1,227 | 525 | 42.8 | |||||||||||||||||||
FDIC insurance | 749 | 420 | 329 | 78.3 | |||||||||||||||||||
Communications | 261 | 272 | (11) | (4.0) | |||||||||||||||||||
Foreclosed assets, net | (28) | (112) | 84 | (75.0) | |||||||||||||||||||
Other | 1,976 | 1,879 | 97 | 5.2 | |||||||||||||||||||
Total noninterest expense | $ | 33,319 | $ | 31,643 | $ | 1,676 | 5.3 | % |
Three Months Ended March 31, | |||||||||||
Merger-related expenses: | 2023 | 2022 | |||||||||
(dollars in thousands) | |||||||||||
Compensation and employee benefits | $ | 70 | $ | — | |||||||
Equipment | — | 5 | |||||||||
Legal and professional | — | 63 | |||||||||
Data processing | 65 | 38 | |||||||||
Marketing | — | 7 | |||||||||
Communications | — | 1 | |||||||||
Other | 1 | 14 | |||||||||
Total merger-related expenses | $ | 136 | $ | 128 |
(dollars in thousands) | March 31, 2023 | December 31, 2022 | $ Change | % Change | |||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and cash equivalents | $ | 69,218 | $ | 86,435 | $ | (17,217) | (19.9) | % | |||||||||||||||
Loans held for sale | 2,553 | 612 | 1,941 | 317.2 | |||||||||||||||||||
Debt securities available for sale at fair value | 954,074 | 1,153,547 | (199,473) | (17.3) | |||||||||||||||||||
Held to maturity securities at amortized cost | 1,117,709 | 1,129,421 | (11,712) | (1.0) | |||||||||||||||||||
Loans held for investment, net of unearned income | 3,919,365 | 3,840,524 | 78,841 | 2.1 | |||||||||||||||||||
Allowance for credit losses | (49,800) | (49,200) | (600) | 1.2 | |||||||||||||||||||
Total loans held for investment, net | 3,869,565 | 3,791,324 | 78,241 | 2.1 | |||||||||||||||||||
Other assets | 396,833 | 416,537 | (19,704) | (4.7) | |||||||||||||||||||
Total assets | $ | 6,409,952 | $ | 6,577,876 | $ | (167,924) | (2.6) | % | |||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||
Total deposits | $ | 5,555,153 | $ | 5,468,942 | $ | 86,211 | 1.6 | % | |||||||||||||||
Total borrowings | 281,962 | 531,083 | (249,121) | (46.9) | |||||||||||||||||||
Other liabilities | 72,187 | 85,058 | (12,871) | (15.1) | |||||||||||||||||||
Total shareholders' equity | 500,650 | 492,793 | 7,857 | 1.6 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 6,409,952 | $ | 6,577,876 | $ | (167,924) | (2.6) | % | |||||||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Available for Sale | |||||||||||||||||||||||
U.S. Government agencies and corporations | $ | — | — | % | $ | 7,345 | 0.6 | % | |||||||||||||||
States and political subdivisions | 184,581 | 19.3 | 285,356 | 24.7 | |||||||||||||||||||
Mortgage-backed securities | 5,679 | 0.6 | 5,944 | 0.5 | |||||||||||||||||||
Collateralized loan obligations | 54,074 | 5.7 | — | — | |||||||||||||||||||
Collateralized mortgage obligations | 144,666 | 15.2 | 147,193 | 12.8 | |||||||||||||||||||
Corporate debt securities | 565,074 | 59.2 | 707,709 | 61.4 | |||||||||||||||||||
Fair value of debt securities available for sale | $ | 954,074 | 100.0 | % | $ | 1,153,547 | 100.0 | % | |||||||||||||||
Held to Maturity | |||||||||||||||||||||||
States and political subdivisions | $ | 538,182 | 48.2 | $ | 538,746 | 47.7 | % | ||||||||||||||||
Mortgage-backed securities | 79,597 | 7.1 | 81,032 | 7.2 | % | ||||||||||||||||||
Collateralized mortgage obligations | 499,930 | 44.7 | 509,643 | 45.1 | % | ||||||||||||||||||
Amortized cost of debt securities held to maturity | $ | 1,117,709 | 100.0 | % | $ | 1,129,421 | 100.0 | % |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Agricultural | $ | 106,641 | 2.7 | % | $ | 115,320 | 3.0 | % | |||||||||||||||
Commercial and industrial | 1,080,514 | 27.6 | 1,055,162 | 27.5 | |||||||||||||||||||
Commercial real estate | 2,048,971 | 52.4 | 1,980,018 | 51.6 | |||||||||||||||||||
Residential real estate | 610,862 | 15.5 | 614,428 | 15.9 | |||||||||||||||||||
Consumer | 72,377 | 1.8 | 75,596 | 2.0 | |||||||||||||||||||
Loans held for investment, net of unearned income | $ | 3,919,365 | 100.0 | % | $ | 3,840,524 | 100.0 | % | |||||||||||||||
Loans held for sale | $ | 2,553 | $ | 612 |
(in thousands) | March 31, 2023 | December 31, 2022 | |||||||||||||||
Nonaccrual loans held for investment | $ | 14,440 | $ | 15,256 | |||||||||||||
Accruing loans contractually past due 90 days or more | 2 | 565 | |||||||||||||||
Total nonperforming loans | 14,442 | 15,821 | |||||||||||||||
Foreclosed assets, net | — | 103 | |||||||||||||||
Total nonperforming assets | 14,442 | 15,924 | |||||||||||||||
Nonaccrual loans ratio (1) | 0.37 | % | 0.40 | % | |||||||||||||
Nonperforming loans ratio (2) | 0.37 | % | 0.41 | % | |||||||||||||
Nonperforming assets ratio (3) | 0.23 | % | 0.24 | % | |||||||||||||
(1) Nonaccrual loans ratio is calculated as nonaccrual loans divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||||||||
(2) Nonperforming loans ratio is calculated as total nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period. | |||||||||||||||||
(3) Nonperforming assets ratio is calculated as total nonperforming assets divided by total assets at the end of the period. |
March 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
(dollars in thousands) | Allowance for Credit Losses | % of Loans in Each Segment to Total Loans | Allowance for Credit Losses | % of Loans in Each Segment to Total Loans | |||||||||||||||||||
Agricultural | $ | 513 | 2.7 | % | $ | 923 | 3.0 | % | |||||||||||||||
Commercial and industrial | 22,345 | 27.6 | % | 22,855 | 27.5 | % | |||||||||||||||||
Commercial real estate | 21,833 | 52.4 | % | 20,123 | 51.6 | % | |||||||||||||||||
Residential real estate | 4,545 | 15.5 | % | 4,678 | 15.9 | % | |||||||||||||||||
Consumer | 564 | 1.8 | % | 621 | 2.0 | % | |||||||||||||||||
Total | $ | 49,800 | 100.0 | % | $ | 49,200 | 100.0 | % | |||||||||||||||
Allowance for credit losses ratio(1) | 1.27 | % | 1.28 | % | |||||||||||||||||||
Allowance for credit losses to nonaccrual loans ratio(2) | 344.88 | % | 322.50 | % | |||||||||||||||||||
(1) 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. | |||||||||||||||||||||||
(2) 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. |
As of March 31, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
(in thousands) | Balance | % of Total | Balance | % of Total | |||||||||||||||||||
Noninterest bearing deposits | $ | 989,469 | 17.8 | % | $ | 1,053,450 | 19.3 | % | |||||||||||||||
Interest checking deposits | 1,476,948 | 26.6 | 1,624,278 | 29.8 | |||||||||||||||||||
Money market deposits | 969,238 | 17.4 | 937,340 | 17.1 | |||||||||||||||||||
Savings deposits | 631,811 | 11.4 | 664,169 | 12.1 | |||||||||||||||||||
Time deposits of $250 and under | 599,302 | 10.8 | 559,466 | 10.2 | |||||||||||||||||||
Total core deposits | 4,666,768 | 84.0 | 4,838,703 | 88.5 | |||||||||||||||||||
Brokered deposits | 366,539 | 6.6 | 126,767 | 2.3 | |||||||||||||||||||
Time deposits of over $250 | 521,846 | 9.4 | 503,472 | 9.2 | |||||||||||||||||||
Total non-core deposits | 888,385 | 16.0 | 630,239 | 11.5 | |||||||||||||||||||
Total deposits | $ | 5,555,153 | 100.0 | % | $ | 5,468,942 | 100.0 | % |
(dollars in thousands) | March 31, 2023 | December 31, 2022 | |||||||||
Securities sold under agreements to repurchase | $ | 137,481 | $ | 156,373 | |||||||
Federal home loan bank advances | 6,500 | 235,500 | |||||||||
Total short-term borrowings | $ | 143,981 | $ | 391,873 | |||||||
Junior subordinated notes issued to capital trusts | 42,160 | 42,116 | |||||||||
Subordinated debentures | 64,039 | 64,006 | |||||||||
Finance lease payable | 744 | 787 | |||||||||
Federal home loan bank borrowings | 17,288 | 17,301 | |||||||||
Other long-term debt | 13,750 | 15,000 | |||||||||
Total long-term debt | $ | 137,981 | $ | 139,210 |
March 31, 2023 | December 31, 2022 | |||||||||||||
Total shareholders’ equity to total assets ratio | 7.81 | % | 7.49 | % | ||||||||||
Tangible common equity ratio(1) | 6.48 | % | 6.17 | % | ||||||||||
Total risk-based capital ratio | 12.31 | % | 12.07 | % | ||||||||||
Tier 1 risk-based capital ratio | 10.18 | % | 10.05 | % | ||||||||||
Common equity tier 1 risk-based capital ratio | 9.39 | % | 9.28 | % | ||||||||||
Tier 1 leverage ratio | 8.30 | % | 8.35 | % | ||||||||||
Book value per share | $ | 31.94 | $ | 31.54 | ||||||||||
Tangible book value per share(1) | $ | 26.13 | $ | 25.60 | ||||||||||
(1)A non-GAAP financial measure - see the “Non-GAAP Presentations” section for a reconciliation to the most comparable GAAP equivalent. |
(dollars in thousands) | As of March 31, 2023 | As of December 31, 2022 | |||||||||
Cash and due from banks | $ | 63,945 | $ | 83,990 | |||||||
Interest-bearing deposits | 5,273 | 2,445 | |||||||||
Total | $ | 69,218 | $ | 86,435 |
Three Months Ended | ||||||||||||||
Return on Average Tangible Equity | March 31, 2023 | March 31, 2022 | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Net income | $ | 1,397 | $ | 13,895 | ||||||||||
Intangible amortization, net of tax (1) | 1,314 | 920 | ||||||||||||
Tangible net income | $ | 2,711 | $ | 14,815 | ||||||||||
Average shareholders' equity | $ | 498,547 | $ | 524,851 | ||||||||||
Average intangible assets, net | (92,002) | (81,763) | ||||||||||||
Average tangible equity | $ | 406,545 | $ | 443,088 | ||||||||||
Return on average equity | 1.14 | % | 10.74 | % | ||||||||||
Return on average tangible equity (2) | 2.70 | % | 13.56 | % | ||||||||||
(1) Computed assuming a combined marginal income tax rate of 25%. | ||||||||||||||
(2) Annualized tangible net income divided by average tangible equity. |
Tangible Common Equity/Tangible Book Value per Share / Tangible Common Equity Ratio | March 31, 2023 | December 31, 2022 | ||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Total shareholders’ equity | $ | 500,650 | $ | 492,793 | ||||||||||
Intangible assets, net | (91,040) | (92,792) | ||||||||||||
Tangible common equity | $ | 409,610 | $ | 400,001 | ||||||||||
Total assets | $ | 6,409,952 | $ | 6,577,876 | ||||||||||
Intangible assets, net | (91,040) | (92,792) | ||||||||||||
Tangible assets | $ | 6,318,912 | $ | 6,485,084 | ||||||||||
Book value per share | $ | 31.94 | $ | 31.54 | ||||||||||
Tangible book value per share (1) | $ | 26.13 | $ | 25.60 | ||||||||||
Shares outstanding | 15,675,325 | 15,623,977 | ||||||||||||
Equity to assets ratio | 7.81 | % | 7.49 | % | ||||||||||
Tangible common equity ratio (2) | 6.48 | % | 6.17 | % | ||||||||||
(1) Tangible common equity divided by shares outstanding. | ||||||||||||||
(2) Tangible common equity divided by tangible assets. |
Three Months Ended | ||||||||||||||
Efficiency Ratio | March 31, 2023 | March 31, 2022 | ||||||||||||
(dollars in thousands) | ||||||||||||||
Total noninterest expense | $ | 33,319 | $ | 31,643 | ||||||||||
Amortization of intangibles | (1,752) | (1,227) | ||||||||||||
Merger-related expenses | (136) | (128) | ||||||||||||
Noninterest expense used for efficiency ratio | $ | 31,431 | $ | 30,288 | ||||||||||
Net interest income, tax equivalent(1) | $ | 41,314 | $ | 38,491 | ||||||||||
Noninterest income | (4,046) | 11,644 | ||||||||||||
Investment security losses (gains), net | 13,170 | (40) | ||||||||||||
Net revenues used for efficiency ratio | $ | 50,438 | $ | 50,095 | ||||||||||
Efficiency ratio(2) | 62.32 | % | 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. |
Immediate Change in Rates | |||||||||||||||||||||||||||||
(dollars in thousands) | -200 | -100 | +100 | +200 | |||||||||||||||||||||||||
March 31, 2023 | |||||||||||||||||||||||||||||
Dollar change | $ | 6,426 | $ | 4,191 | $ | (5,520) | $ | (11,286) | |||||||||||||||||||||
Percent change | 3.8 | % | 2.5 | % | (3.3) | % | (6.7) | % | |||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Dollar change | $ | 8,398 | $ | 5,637 | $ | (6,738) | $ | (13,921) | |||||||||||||||||||||
Percent change | 5.2 | % | 3.5 | % | (4.2) | % | (8.7) | % |
Total Number of Shares Purchased(1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Programs(2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program | |||||||||||||||||||||||
January 1 - 31, 2023 | — | $ | — | — | $ | 3,042,363 | ||||||||||||||||||||
February 1 - 28, 2023 | 17,614 | 30.97 | — | 3,042,363 | ||||||||||||||||||||||
March 1 - 31, 2023 | — | — | — | 3,042,363 | ||||||||||||||||||||||
Total | 17,614 | $ | 30.97 | — | $ | 3,042,363 | ||||||||||||||||||||
Exhibit Number | Description | Incorporated by Reference to: | ||||||||||||
Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on March 14, 2008 | Exhibit 3.3 to the Company’s Amendment No. 1 to Registration Statement on Form S-4 (File No. 333-147628) filed with the SEC on January 14, 2008 | |||||||||||||
Articles of Amendment (First Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on January 23, 2009 | Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on January 23, 2009 | |||||||||||||
Articles of Amendment (Second Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc. filed with the Secretary of State of the State of Iowa on February 4, 2009 (containing the Certificate of Designations for the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A) | Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on February 6, 2009 | |||||||||||||
Articles of Amendment (Third Amendment) to the Amended and Restated Articles of Incorporation of MidWestOne Financial Group, Inc., filed with the Secretary of State of the State of Iowa on April 21, 2017 | Exhibit 3.1 to the Company’s Form 10-Q for the quarter ended March 31, 2017, filed with the SEC on May 4, 2017 | |||||||||||||
Third Amended and Restated Bylaws, as Amended of MidWestOne Financial Group, Inc. as of October 18, 2022 | Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the SEC on October 19, 2022 | |||||||||||||
Letter agreement, dated January 24, 2023, from the Compensation Committee of the Board of Directors of MidWestOne Financial Group, Inc., to Charles N. Funk regarding compensation matters | Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on January 26, 2023 | |||||||||||||
Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||||||||||||
Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||||||||||||
Certification of Principal Accounting Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) | Filed herewith | |||||||||||||
Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||||||||
Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||||||||
Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||||||||||||
101 | The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Shareholders’ Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags. | Filed herewith | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | Filed herewith | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | Filed herewith | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | Filed herewith | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | Filed herewith | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | Filed herewith | ||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | Filed herewith | ||||||||||||
MIDWESTONE FINANCIAL GROUP, INC. | |||||||||||||||||||||||
Dated: | May 5, 2023 | By: | /s/ CHARLES N. REEVES | ||||||||||||||||||||
Charles N. Reeves | |||||||||||||||||||||||
Chief Executive Officer | |||||||||||||||||||||||
(Principal Executive Officer) | |||||||||||||||||||||||
By: | /s/ BARRY S. RAY | ||||||||||||||||||||||
Barry S. Ray | |||||||||||||||||||||||
Chief Financial Officer | |||||||||||||||||||||||
(Principal Financial Officer) | |||||||||||||||||||||||
By: | /s/ JOHN J. RUPPEL | ||||||||||||||||||||||
John J. Ruppel | |||||||||||||||||||||||
Chief Accounting Officer | |||||||||||||||||||||||
(Principal Accounting Officer) | |||||||||||||||||||||||
1) | I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, Inc.; | |||||||||||||
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||||||||
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||||||||
4) | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||||||||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |||||||||||||
5) | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||||||||
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |||||||||||||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ CHARLES N. REEVES | |||||
Charles N. Reeves | |||||
Chief Executive Officer | |||||
Date: | May 5, 2023 |
1) | I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, Inc.; | |||||||||||||
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||||||||
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||||||||
4) | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||||||||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |||||||||||||
5) | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||||||||
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |||||||||||||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ BARRY S. RAY | |||||
Barry S. Ray | |||||
Chief Financial Officer | |||||
Date: | May 5, 2023 |
1) | I have reviewed this Quarterly Report on Form 10-Q of MidWestOne Financial Group, Inc.; | |||||||||||||
2) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |||||||||||||
3) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |||||||||||||
4) | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: | |||||||||||||
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |||||||||||||
b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; | |||||||||||||
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |||||||||||||
d) | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and | |||||||||||||
5) | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): | |||||||||||||
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and | |||||||||||||
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ JOHN J. RUPPEL | |||||
John J. Ruppel | |||||
Chief Accounting Officer | |||||
Date: | May 5, 2023 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||||
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ CHARLES N. REEVES | |||||
Charles N. Reeves | |||||
Chief Executive Officer | |||||
Date: | May 5, 2023 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||||
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ BARRY S. RAY | |||||
Barry S. Ray | |||||
Chief Financial Officer | |||||
Date: | May 5, 2023 |
(a) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and | |||||||
(b) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of MidWestOne Financial Group, Inc. |
/s/ JOHN J. RUPPEL | |||||
John J. Ruppel | |||||
Chief Accounting Officer | |||||
Date: | May 5, 2023 |