MidWestOne Financial Group, Inc. Reports Financial Results for the Second Quarter of 2025

IOWA CITY, Iowa, July 24, 2025 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) ("we," "our," or the "Company") today reported results for the second quarter of 2025. Second Quarter 2025 Summary1 Pre-tax, pre-provision net revenue increased 15% to $24.5 million2. Net interest margin (tax equivalent) was 3.57%2; core net interest margin expanded 13 basis points ("bps") to 3.49%.2Noninterest income was $10.2 million.Noninterest expense was $35.8 million.Efficiency ratio improved to 56.20%2 from 59.38%2. Net income of $10.0 million, or $0.48 per diluted common share, reflected credit loss expense of $11.9 million stemming primarily from a single commercial real estate ("CRE") office credit.Criticized loans ratio improved 32 bps to 5.15%.Allowance for credit losses ratio increased to 1.50%, due primarily to the single CRE office credit.Annualized loan growth of 7.4%.Tangible book value per share of $23.92,2 an increase of 2.4%.Common equity tier 1 ("CET1") capital ratio improved 5 bps to 11.02%.Provided notice of redemption for all $65.0 million aggregate principal of the Company's 5.75% fixed-to-floating rate subordinated notes due 2030 set to reprice on July 30th. CEO Commentary Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, "Due to the expertise of our MidWestOne team, we continued to execute well on our 2025 strategic initiatives. Strong loan growth and back book loan re-pricing led to tax equivalent net interest margin expansion of 13 basis points, to 3.57%2, and to 5% linked quarter net interest income growth. Investments in our relationship fee income businesses continue to bear fruit with wealth management, Small Business Administration ("SBA"), and residential mortgage revenues up quarter over quarter. We maintained our expense discipline even as we added significant customer facing talent in Denver and the Twin Cities, as well as invested in our platforms to drive internal efficiencies and improve the customer experience. Earnings and certain asset quality measures were unfavorably impacted by a single $24 million suburban Twin Cities CRE office credit. The loan was originated in June 2022 and previously classified, but moved to nonaccrual in the second quarter. A receiver is in place, resolution efforts have begun, and a specific reserve was established, which led to an increase in our allowance for credit losses ratio to 1.50%. Our balance sheet, capital, and underlying earnings strength position us well for the second half of 2025 as we continue to make significant progress in building a high-performing, relationship-driven community bank.” __________________1 Second Quarter Summary compares to the first quarter of 2025 (the "linked quarter") unless noted.2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. (Dollars in thousands, except per share amounts and as noted) As of or for the quarter ended Six Months Ended June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Financial Results Revenue $60,231 $57,575 $57,901 $117,806 $102,382 Credit loss expense 11,889 1,687 1,267 13,576 5,956 Noninterest expense 35,767 36,293 35,761 72,060 71,326 Net income 9,980 15,138 15,819 25,118 19,088 Pre-tax pre-provision net revenue(3) 24,464 21,282 22,140 45,746 31,056 Adjusted earnings(3) 10,176 15,301 8,132 25,479 12,621 Per Common Share Diluted earnings per share $0.48 $0.73 $1.00 $1.20 $1.21 Adjusted earnings per share(3) 0.49 0.73 0.52 1.22 0.80 Book value 28.36 27.85 34.44 28.36 34.44 Tangible book value(3) 23.92 23.36 28.27 23.92 28.27 Balance Sheet & Credit Quality Loans In millions $4,381.2 $4,304.2 $4,287.2 $4,381.2 $4,287.2 Investment securities In millions 1,235.0 1,305.5 1,824.1 1,235.0 1,824.1 Deposits In millions 5,388.1 5,489.1 5,412.4 5,388.1 5,412.4 Net loan charge-offs In millions 0.2 3.1 0.5 3.3 0.7 Allowance for credit losses ratio 1.50% 1.25% 1.26% 1.50% 1.26%Selected Ratios Return on average assets 0.65% 1.00% 0.95% 0.82% 0.58%Net interest margin, tax equivalent(3) 3.57% 3.44% 2.41% 3.51% 2.37%Return on average equity 6.81% 10.74% 11.91% 8.74% 7.23%Return on average tangible equity(3) 8.84% 13.75% 15.74% 11.24% 9.98%Efficiency ratio(3) 56.20% 59.38% 56.29% 57.75% 62.83% REVENUE REVIEW Revenue Change Change 2Q25 vs 2Q25 vs(Dollars in thousands) 2Q25 1Q25 2Q24 1Q25 2Q24Net interest income $49,982 $47,439 $36,347 5% 38%Noninterest income 10,249 10,136 21,554 1% (52)%Total revenue, net of interest expense $60,231 $57,575 $57,901 5% 4% Total revenue for the second quarter of 2025 increased $2.7 million from the first quarter of 2025 due to higher net interest income and noninterest income during the quarter. When compared to the second quarter of 2024, total revenue increased $2.3 million due to higher net interest income partially offset by lower noninterest income. Net interest income of $50.0 million for the second quarter of 2025 increased $2.5 million from the first quarter of 2025 due to higher earning asset volumes and yields and lower funding costs, partially offset by higher funding volumes. When compared to the second quarter of 2024, net interest income increased $13.6 million due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes. The Company's tax equivalent net interest margin was 3.57%3 in the second quarter of 2025, compared to 3.44%3 in the first quarter of 2025, driven by higher earning asset yields and lower interest bearing liability costs. Total earning asset yield increased 12 bps from the first quarter of 2025, primarily due to an increase of 10 bps in loan yield. Interest bearing liability costs during the second quarter of 2025 decreased 2 bps to 2.39%, primarily due to reductions in long-term debt costs and interest bearing deposits of 13 bps and 2 bps, to 6.28% and 2.29%, respectively, from the first quarter of 2025. The Company's tax equivalent net interest margin was 3.57%3 in the second quarter of 2025, compared to 2.41%3 in the second quarter of 2024, driven by higher earning asset yields and lower interest bearing liability costs. Total earning assets yield increased 75 bps from the second quarter of 2024, primarily due to increases of 189 bps and 12 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 46 bps to 2.39%, due to long-term debt costs of 6.28% and interest bearing deposit costs of 2.29%, which decreased 67 bps, and 25 bps, respectively, from the second quarter of 2024. __________________3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. Noninterest Income Change Change 2Q25 vs 2Q25 vs(Dollars in thousands)2Q25 1Q25 2Q24 1Q25 2Q24Investment services and trust activities$3,705 $3,544 $3,504 5% 6%Service charges and fees 2,190 2,131 2,156 3% 2%Card revenue 1,934 1,744 1,907 11% 1%Loan revenue 1,417 1,194 1,525 19% (7)%Bank-owned life insurance 677 1,057 668 (36)% 1%Investment securities gains, net — 33 33 (100)% (100)%Other 326 433 11,761 (25)% (97)%Total noninterest income$10,249 $10,136 $21,554 1% (52)% MSR adjustment (included above in Loan revenue)$(264) $(213) $129 24% (305)% Noninterest income for the second quarter of 2025 increased $0.1 million from the linked quarter, primarily due to increases of $0.2 million each in loan revenue, card revenue, and investment services and trust activities revenue. The increase in loan revenue was due primarily to a $0.2 million increase in mortgage origination fee revenue, coupled with an increase of $0.2 million in SBA gain on sale revenue. The increase in card revenue was driven primarily by higher interchange fee income. The increase in investment services and trust activities revenue was driven by higher assets under administration. Partially offsetting these increases was a decline of $0.4 million in bank-owned life insurance revenue stemming from the death benefit recognized in the first quarter of 2025. Noninterest income for the second quarter of 2025 decreased $11.3 million from the second quarter of 2024 primarily due to the decline in other revenue stemming from the $11.1 million gain realized in connection with the sale of our Florida banking operations in the second quarter of 2024. Also contributing to the decline in noninterest income was a $0.4 million unfavorable change in the fair value of our mortgage servicing rights, which is included in loan revenue, and a decline of $0.4 million in swap origination fee income, which is recorded in other revenue. Partially offsetting these declines was an increase of $0.2 million in investment services and trust activities revenue, driven by higher assets under administration. EXPENSE REVIEW Noninterest Expense Change Change 2Q25 vs 2Q25 vs(Dollars in thousands)2Q25 1Q25 2Q24 1Q25 2Q24Compensation and employee benefits$21,011 $21,212 $20,985 (1)% —%Occupancy expense of premises, net 2,540 2,588 2,435 (2)% 4%Equipment 2,550 2,426 2,530 5% 1%Legal and professional 2,153 2,226 2,253 (3)% (4)%Data processing 1,486 1,698 1,645 (12)% (10)%Marketing 762 552 636 38% 20%Amortization of intangibles 1,252 1,408 1,593 (11)% (21)%FDIC insurance 851 917 1,051 (7)% (19)%Communications 161 159 191 1% (16)%Foreclosed assets, net 83 74 138 12% (40)%Other 2,918 3,033 2,304 (4)% 27%Total noninterest expense$35,767 $36,293 $35,761 (1)% —% Merger-related Expenses (Dollars in thousands)2Q25 1Q25 2Q24Compensation and employee benefits$— $— $73Equipment — — 28Legal and professional — 40 462Data processing — — 251Communications — — 8Other — — 32Total merger-related expenses$— $40 $854 Noninterest expense for the second quarter of 2025 decreased $0.5 million from the linked quarter, primarily due to decreases of $0.2 million each in data processing, compensation and employee benefits, and amortization of intangibles. The decrease in data processing was primarily driven by a decrease in core banking system costs. The decrease in compensation and employee benefits reflected the receipt of $1.1 million from Employee Retention Credit claims, which was partially offset by higher wage, equity compensation and employee benefits expense. Noninterest expense for the second quarter of 2025 compared to the prior year was stable at $35.8 million. The $0.6 million increase in other noninterest expense stemmed primarily from customer deposits costs. Further, excluding merger-related expenses, legal and professional costs increased $0.4 million due primarily to higher litigation-related legal expenses. Those increases were partially offset by lower intangible amortization and FDIC insurance costs, which decreased $0.3 million and $0.2 million, respectively. The Company's effective tax rate was 20.6% in the second quarter of 2025, compared to 22.7% in the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%. BALANCE SHEET REVIEW Total assets were $6.16 billion at June 30, 2025, compared to $6.25 billion at March 31, 2025 and $6.58 billion at June 30, 2024. The decrease from March 31, 2025 was primarily due to lower cash and security volumes, partially offset by higher loan volumes. Compared to June 30, 2024, the decrease was primarily driven by lower security volumes, partially offset by higher loan volumes. Loans Held for Investment(Dollars in thousands)June 30, 2025 March 31, 2025 June 30, 2024 Balance % of Total Balance % of Total Balance % of Total Commercial and industrial$1,226,265 28.0%$1,140,138 26.5%$1,120,983 26.1%Agricultural 128,717 2.9 131,409 3.1 107,983 2.5 Commercial real estate Construction and development 280,918 6.4 293,280 6.8 351,646 8.2 Farmland 186,494 4.3 180,633 4.2 183,641 4.3 Multifamily 438,193 10.0 421,204 9.8 430,054 10.0 Other 1,407,469 32.1 1,425,062 33.0 1,348,515 31.5 Total commercial real estate 2,313,074 52.8 2,320,179 53.8 2,313,856 54.0 Residential real estate One-to-four family first liens 467,970 10.7 471,688 11.0 492,541 11.5 One-to-four family junior liens 188,671 4.3 182,346 4.2 176,105 4.1 Total residential real estate 656,641 15.0 654,034 15.2 668,646 15.6 Consumer 56,491 1.3 58,424 1.4 75,764 1.8 Loans held for investment, net of unearned income$4,381,188 100.0%$4,304,184 100.0%$4,287,232 100.0% Total commitments to extend credit$1,074,935 $1,080,300 $1,200,605 Loans held for investment, net of unearned income at June 30, 2025 were $4.38 billion, increasing $77.0 million, or 1.8%, from $4.30 billion at March 31, 2025 and increasing $94.0 million, or 2.2%, from $4.29 billion at June 30, 2024. The increases across both periods were primarily driven by organic loan growth and higher line of credit usage. Investment Securities(Dollars in thousands)June 30, 2025 March 31, 2025 June 30, 2024 Balance % of Total Balance % of Total Balance % of Total Available for sale$1,235,045 100.0%$1,305,530 100.0%$771,034 42.3%Held to maturity — —% — —% 1,053,080 57.7%Total investment securities$1,235,045 $1,305,530 $1,824,114 Investment securities at June 30, 2025 were $1.24 billion, decreasing $70.5 million from March 31, 2025 and decreasing $589.1 million from June 30, 2024. The decrease from the first quarter of 2025 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the second quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities. DepositsJune 30, 2025 March 31, 2025 June 30, 2024 (Dollars in thousands)Balance % of Total Balance % of Total Balance % of Total Noninterest bearing deposits$910,693 16.9%$903,714 16.5%$882,472 16.3%Interest checking deposits 1,206,096 22.5 1,283,328 23.3 1,284,243 23.7 Money market deposits 971,048 18.0 1,002,066 18.3 1,043,376 19.3 Savings deposits 851,636 15.8 877,348 16.0 745,639 13.8 Time deposits of $250 and under 837,302 15.5 818,012 14.9 803,301 14.8 Total core deposits 4,776,775 88.7 4,884,468 89.0 4,759,031 87.9 Brokered time deposits 200,000 3.7 200,000 3.6 196,000 3.6 Time deposits over $250 411,323 7.6 404,674 7.4 457,388 8.5 Total deposits$5,388,098 100.0%$5,489,142 100.0%$5,412,419 100.0% Total deposits at June 30, 2025 were $5.39 billion, decreasing $101.0 million, or 1.8%, from $5.49 billion at March 31, 2025, and decreasing $24.3 million, or 0.4%, from $5.41 billion at June 30, 2024. Noninterest bearing deposits at June 30, 2025 were $910.7 million, an increase of $7.0 million from March 31, 2025 and an increase of $28.2 million from June 30, 2024. Borrowed FundsJune 30, 2025 March 31, 2025 June 30, 2024 (Dollars in thousands)Balance % of Total Balance % of Total Balance % of Total Short-term borrowings$— —%$1,482 1.3%$414,684 78.3%Long-term debt 112,320 100.0% 111,398 98.7% 114,839 21.7%Total borrowed funds$112,320 $112,880 $529,523 Borrowed funds were $112.3 million at June 30, 2025, a decrease of $0.6 million from March 31, 2025 and a decrease of $417.2 million from June 30, 2024. The decrease compared to the linked quarter was due primarily to lower securities sold under agreements to repurchase. The decrease compared to June 30, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and scheduled payments on long-term debt. In June 2025, the Company provided notice to the trustee of its intent to redeem all $65.0 million aggregate principal of its 5.75% fixed-to-floating rate subordinated notes due 2030. To complete the redemption, the Company expects to utilize a combination of cash on hand and proceeds from a $50.0 million senior term note. The senior term note is expected to be structured as a 5-year maturity, 7-year amortization facility, and bear interest at a floating rate of 1-month term SOFR plus 1.75%. The financing pursuant to the senior note is expected to close on July 29, 2025, and the redemption is expected to occur on July 30, 2025. CapitalJune 30, March 31, June 30,(Dollars in thousands)2025 (1) 2025 2024 Total shareholders' equity$589,040 $579,625 $543,286 Accumulated other comprehensive loss (57,557) (63,098) (58,135)MidWestOne Financial Group, Inc. Consolidated Tier 1 leverage to average assets ratio 9.62% 9.50% 8.29%Common equity tier 1 capital to risk-weighted assets ratio 11.02% 10.97% 9.56%Tier 1 capital to risk-weighted assets ratio 11.88% 11.84% 10.35%Total capital to risk-weighted assets ratio 14.44% 14.34% 12.62%MidWestOne Bank Tier 1 leverage to average assets ratio 10.43% 10.42% 9.24%Common equity tier 1 capital to risk-weighted assets ratio 12.95% 13.02% 11.55%Tier 1 capital to risk-weighted assets ratio 12.95% 13.02% 11.55%Total capital to risk-weighted assets ratio 14.20% 14.21% 12.61%(1) Regulatory capital ratios for June 30, 2025 are preliminary Total shareholders' equity at June 30, 2025 increased $9.4 million from March 31, 2025, driven primarily by a decrease in accumulated other comprehensive loss and an increase in retained earnings, partially offset by an increase in treasury stock. Total shareholders' equity at June 30, 2025 increased $45.8 million from June 30, 2024, primarily due to increases in common stock and additional paid-in-capital stemming from the common equity capital raise in the third quarter of 2024, and partially offset by a decrease in retained earnings. On July 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable September 16, 2025, to shareholders of record at the close of business on September 2, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares. Under such program, the Company repurchased 63,402 shares of its common stock at an average price of $27.65 per share and a total cost of $1.8 million during the period March 31, 2025 through June 30, 2025. No shares were repurchased during the subsequent period through July 24, 2025. As of June 30, 2025, $13.2 million remained available under this program. CREDIT QUALITY REVIEW Credit QualityAs of or For the Three Months EndedJune 30, March 31, June 30,(Dollars in thousands) 2025 2025 2024 Credit loss expense related to loans$12,089 $1,787 $467 Net charge-offs 189 3,087 524 Allowance for credit losses 65,800 53,900 53,900 Pass$4,155,385 $4,068,707 $3,991,692 Special Mention 98,998 121,494 146,253 Classified 126,805 113,983 149,287 Criticized 225,803 235,477 295,540 Loans greater than 30 days past due and accruing$12,161 $6,119 $9,358 Nonperforming loans$37,192 $17,470 $25,128 Nonperforming assets 40,606 20,889 31,181 Net charge-off ratio(1) 0.02% 0.29% 0.05%Classified loans ratio(2) 2.89% 2.65% 3.48%Criticized loans ratio(3) 5.15% 5.47% 6.89%Nonperforming loans ratio(4) 0.85% 0.41% 0.59%Nonperforming assets ratio(5) 0.66% 0.33% 0.47%Allowance for credit losses ratio(6) 1.50% 1.25% 1.26%Allowance for credit losses to nonaccrual loans ratio(7) 179.19% 309.47% 218.26%(1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.(3) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.(4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.(5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.(6) 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.(7) 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. Compared to the linked quarter, both nonperforming loans and nonperforming assets increased $19.7 million, primarily due to a single $24.0 million CRE office credit, partially offset by the sale of a $3.9 million CRE office credit. Special mention loan balances decreased $22.5 million, or 19%, while classified loan balances increased $12.8 million, or 11%. Compared to the prior year period, nonperforming loans and nonperforming assets increased $12.1 million and $9.4 million, respectively. Special mention loan balances decreased $47.3 million, or 32%, while classified loan balances decreased $22.5 million, or 15%. The net charge-off ratio declined 27 bps from the linked quarter and 3 bps from the same period in the prior year. As of June 30, 2025, the allowance for credit losses was $65.8 million and the allowance for credit losses ratio was 1.50%, compared with $53.9 million and 1.25%, respectively, at March 31, 2025. Credit loss expense of $11.9 million in the second quarter of 2025 primarily reflected the specific reserve established in connection with the single CRE office credit previously discussed. Nonperforming Loans Roll Forward(Dollars in thousands)Nonaccrual 90+ Days Past Due & Still Accruing TotalBalance at March 31, 2025$17,417 $53 $17,470 Loans placed on nonaccrual or 90+ days past due & still accruing 25,279 569 25,848 Proceeds related to repayment or sale (4,973) — (4,973)Loans returned to accrual status or no longer past due (632) — (632)Charge-offs (187) (151) (338)Transfers to foreclosed assets (183) — (183)Balance at June 30, 2025$36,721 $471 $37,192 CONFERENCE CALL DETAILS The Company will host a conference call for investors at 11:00 a.m. CT on Friday, July 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=a6070726&confId=80381. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 293794 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until October 23, 2025 by calling 1-866-813-9403 and using the replay access code of 763204. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call. ABOUT MIDWESTONE FINANCIAL GROUP, INC. MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”. Cautionary Note Regarding Forward-Looking Statements This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, DEI and ESG initiative trends, changes in consumer protection policies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (20) changes in the business and economic conditions generally and in the financial services industry, and the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; (21) the occurrence of fraudulent activity, breaches, or failures of our or our third party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company. MIDWESTONE FINANCIAL GROUP, INC. FIVE QUARTER CONSOLIDATED BALANCE SHEETS June 30, March 31, December 31, September 30, June 30,(Dollars in thousands) 2025 2025 2024 2024 2024 ASSETS Cash and due from banks$78,696 $68,545 $71,803 $72,173 $66,228 Interest earning deposits in banks 90,749 182,360 133,092 129,695 35,340 Total cash and cash equivalents 169,445 250,905 204,895 201,868 101,568 Debt securities available for sale at fair value 1,235,045 1,305,530 1,328,433 1,623,104 771,034 Held to maturity securities at amortized cost — — — — 1,053,080 Total securities 1,235,045 1,305,530 1,328,433 1,623,104 1,824,114 Loans held for sale 16,812 13,836 749 3,283 2,850 Gross loans held for investment 4,391,426 4,315,546 4,328,413 4,344,559 4,304,619 Unearned income, net (10,238) (11,362) (12,786) (15,803) (17,387)Loans held for investment, net of unearned income 4,381,188 4,304,184 4,315,627 4,328,756 4,287,232 Allowance for credit losses (65,800) (53,900) (55,200) (54,000) (53,900)Total loans held for investment, net 4,315,388 4,250,284 4,260,427 4,274,756 4,233,332 Premises and equipment, net 89,910 90,031 90,851 90,750 91,793 Goodwill 69,788 69,788 69,788 69,788 69,388 Other intangible assets, net 22,359 23,611 25,019 26,469 27,939 Foreclosed assets, net 3,414 3,419 3,337 3,583 6,053 Other assets 238,612 246,990 252,830 258,881 224,621 Total assets$6,160,773 $6,254,394 $6,236,329 $6,552,482 $6,581,658 LIABILITIES Noninterest bearing deposits$910,693 $903,714 $951,423 $917,715 $882,472 Interest bearing deposits 4,477,405 4,585,428 4,526,559 4,451,012 4,529,947 Total deposits 5,388,098 5,489,142 5,477,982 5,368,727 5,412,419 Short-term borrowings — 1,482 3,186 410,630 414,684 Long-term debt 112,320 111,398 113,376 115,051 114,839 Other liabilities 71,315 72,747 82,089 95,836 96,430 Total liabilities 5,571,733 5,674,769 5,676,633 5,990,244 6,038,372 SHAREHOLDERS' EQUITY Common stock 21,580 21,580 21,580 21,580 16,581 Additional paid-in capital 414,485 414,258 414,987 414,965 300,831 Retained earnings 232,718 227,790 217,776 206,490 306,030 Treasury stock (22,186) (20,905) (21,885) (21,955) (22,021)Accumulated other comprehensive loss (57,557) (63,098) (72,762) (58,842) (58,135)Total shareholders' equity 589,040 579,625 559,696 562,238 543,286 Total liabilities and shareholders' equity$6,160,773 $6,254,394 $6,236,329 $6,552,482 $6,581,658 MIDWESTONE FINANCIAL GROUP, INC. FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME Three Months Ended Six Months Ended(Dollars in thousands, except per share data)June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2025 2025 2024 2024 2024 2025 2024Interest income Loans, including fees$62,276 $59,462 $62,458 $62,521 $61,643 $121,738 $119,590Taxable investment securities 12,928 13,327 11,320 8,779 9,228 26,255 18,688Tax-exempt investment securities 699 703 728 1,611 1,663 1,402 3,373Other 1,517 1,247 3,761 785 242 2,764 660Total interest income 77,420 74,739 78,267 73,696 72,776 152,159 142,311Interest expense Deposits 25,665 25,484 27,324 29,117 28,942 51,149 56,668Short-term borrowings 19 25 115 5,043 5,409 44 10,384Long-term debt 1,754 1,791 1,890 2,015 2,078 3,545 4,181Total interest expense 27,438 27,300 29,329 36,175 36,429 54,738 71,233Net interest income 49,982 47,439 48,938 37,521 36,347 97,421 71,078Credit loss expense 11,889 1,687 1,291 1,535 1,267 13,576 5,956Net interest income after credit loss expense 38,093 45,752 47,647 35,986 35,080 83,845 65,122Noninterest income Investment services and trust activities 3,705 3,544 3,779 3,410 3,504 7,249 7,007Service charges and fees 2,190 2,131 2,159 2,170 2,156 4,321 4,300Card revenue 1,934 1,744 1,833 1,935 1,907 3,678 3,850Loan revenue 1,417 1,194 1,841 760 1,525 2,611 2,381Bank-owned life insurance 677 1,057 719 879 668 1,734 1,328Investment securities gains (losses), net — 33 161 (140,182) 33 33 69Other 326 433 345 640 11,761 759 12,369Total noninterest income (loss) 10,249 10,136 10,837 (130,388) 21,554 20,385 31,304Noninterest expense Compensation and employee benefits 21,011 21,212 20,684 19,943 20,985 42,223 41,915Occupancy expense of premises, net 2,540 2,588 2,772 2,443 2,435 5,128 5,248Equipment 2,550 2,426 2,688 2,486 2,530 4,976 5,130Legal and professional 2,153 2,226 2,534 2,261 2,253 4,379 4,312Data processing 1,486 1,698 1,719 1,580 1,645 3,184 3,005Marketing 762 552 793 619 636 1,314 1,234Amortization of intangibles 1,252 1,408 1,449 1,470 1,593 2,660 3,230FDIC insurance 851 917 980 923 1,051 1,768 1,993Communications 161 159 154 159 191 320 387Foreclosed assets, net 83 74 56 330 138 157 496Other 2,918 3,033 3,543 3,584 2,304 5,951 4,376Total noninterest expense 35,767 36,293 37,372 35,798 35,761 72,060 71,326Income (loss) before income tax expense (benefit) 12,575 19,595 21,112 (130,200) 20,873 32,170 25,100Income tax expense (benefit) 2,595 4,457 4,782 (34,493) 5,054 7,052 6,012Net income (loss)$9,980 $15,138 $16,330 $(95,707) $15,819 $25,118 $19,088 Earnings (loss) per common share Basic$0.48 $0.73 $0.79 $(6.05) $1.00 $1.21 $1.21Diluted$0.48 $0.73 $0.78 $(6.05) $1.00 $1.20 $1.21Weighted average basic common shares outstanding 20,816 20,797 20,776 15,829 15,763 20,807 15,743Weighted average diluted common shares outstanding 20,843 20,849 20,851 15,829 15,781 20,846 15,775Dividends paid per common share$0.2425 $0.2425 $0.2425 $0.2425 $0.2425 $0.4850 $0.4850 MIDWESTONE FINANCIAL GROUP, INC. FINANCIAL STATISTICS As of or for the Three Months Ended As of or for the Six Months Ended June 30, March 31, June 30, June 30, June 30,(Dollars in thousands, except per share amounts) 2025 2025 2024 2025 2024 Earnings: Net interest income$49,982 $47,439 $36,347 $97,421 $71,078 Noninterest income 10,249 10,136 21,554 20,385 31,304 Total revenue, net of interest expense 60,231 57,575 57,901 117,806 102,382 Credit loss expense 11,889 1,687 1,267 13,576 5,956 Noninterest expense 35,767 36,293 35,761 72,060 71,326 Income before income tax expense 12,575 19,595 20,873 32,170 25,100 Income tax expense 2,595 4,457 5,054 7,052 6,012 Net income$9,980 $15,138 $15,819 $25,118 $19,088 Pre-tax pre-provision net revenue(1)$24,464 $21,282 $22,140 $45,746 $31,056 Adjusted earnings(1) 10,176 15,301 8,132 25,479 12,621 Per Share Data: Diluted earnings$0.48 $0.73 $1.00 $1.20 $1.21 Adjusted earnings(1) 0.49 0.73 0.52 1.22 0.80 Book value 28.36 27.85 34.44 28.36 34.44 Tangible book value(1) 23.92 23.36 28.27 23.92 28.27 Ending Balance Sheet: Total assets$6,160,773 $6,254,394 $6,581,658 $6,160,773 $6,581,658 Loans held for investment, net of unearned income 4,381,188 4,304,184 4,287,232 4,381,188 4,287,232 Total securities 1,235,045 1,305,530 1,824,114 1,235,045 1,824,114 Total deposits 5,388,098 5,489,142 5,412,419 5,388,098 5,412,419 Short-term borrowings — 1,482 414,684 — 414,684 Long-term debt 112,320 111,398 114,839 112,320 114,839 Total shareholders' equity 589,040 579,625 543,286 589,040 543,286 Average Balance Sheet: Average total assets$6,172,649 $6,168,546 $6,713,573 $6,170,609 $6,674,476 Average total loans 4,370,196 4,290,710 4,419,697 4,330,659 4,358,957 Average total deposits 5,398,916 5,398,819 5,514,924 5,398,868 5,498,020 Financial Ratios: Return on average assets 0.65% 1.00% 0.95% 0.82% 0.58%Return on average equity 6.81% 10.74% 11.91% 8.74% 7.23%Return on average tangible equity(1) 8.84% 13.75% 15.74% 11.24% 9.98%Efficiency ratio(1) 56.20% 59.38% 56.29% 57.75% 62.83%Net interest margin, tax equivalent(1) 3.57% 3.44% 2.41% 3.51% 2.37%Loans to deposits ratio 81.31% 78.41% 79.21% 81.31% 79.21%CET1 Ratio 11.02% 10.97% 9.56% 11.02% 9.56%Common equity ratio 9.56% 9.27% 8.25% 9.56% 8.25%Tangible common equity ratio(1) 8.19% 7.89% 6.88% 8.19% 6.88%Credit Risk Profile: Total nonperforming loans$37,192 $17,470 $25,128 $37,192 $25,128 Nonperforming loans ratio 0.85% 0.41% 0.59% 0.85% 0.59%Total nonperforming assets$40,606 $20,889 $31,181 $40,606 $31,181 Nonperforming assets ratio 0.66% 0.33% 0.47% 0.66% 0.47%Net charge-offs$189 $3,087 $524 $3,276 $713 Net charge-off ratio 0.02% 0.29% 0.05% 0.15% 0.03%Allowance for credit losses$65,800 $53,900 $53,900 $65,800 $53,900 Allowance for credit losses ratio 1.50% 1.25% 1.26% 1.50% 1.26%Allowance for credit losses to nonaccrual ratio 179.19% 309.47% 218.26% 179.19% 218.26% (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure. MIDWESTONE FINANCIAL GROUP, INC. AVERAGE BALANCE SHEET AND YIELD ANALYSIS Three Months Ended June 30, 2025 March 31, 2025 June 30, 2024(Dollars in thousands)AverageBalance InterestIncome/Expense AverageYield/Cost AverageBalance InterestIncome/Expense AverageYield/Cost Average Balance InterestIncome/Expense AverageYield/CostASSETS Loans, including fees (1)(2)(3)$4,370,196 $63,298 5.81% $4,290,710 $60,443 5.71% $4,419,697 $62,581 5.69%Taxable investment securities 1,168,048 12,928 4.44% 1,207,844 13,327 4.47% 1,520,253 9,228 2.44%Tax-exempt investment securities (2)(4) 102,792 859 3.35% 105,563 865 3.32% 322,092 2,040 2.55%Total securities held for investment(2) 1,270,840 13,787 4.35% 1,313,407 14,192 4.38% 1,842,345 11,268 2.46%Other 104,628 1,517 5.82% 124,133 1,247 4.07% 20,452 242 4.76%Total interest earning assets(2)$5,745,664 $78,602 5.49% $5,728,250 $75,882 5.37% $6,282,494 $74,091 4.74%Other assets 426,985 440,296 431,079 Total assets$6,172,649 $6,168,546 $6,713,573 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest checking deposits$1,221,266 $2,101 0.69% $1,240,586 $2,127 0.70% $1,297,356 $3,145 0.97%Money market deposits 986,029 6,057 2.46% 1,002,743 6,333 2.56% 1,072,688 7,821 2.93%Savings deposits 843,223 3,161 1.50% 835,731 3,057 1.48% 738,773 2,673 1.46%Time deposits 1,436,301 14,346 4.01% 1,397,595 13,967 4.05% 1,470,956 15,303 4.18%Total interest bearing deposits 4,486,819 25,665 2.29% 4,476,655 25,484 2.31% 4,579,773 28,942 2.54%Securities sold under agreements to repurchase 896 1 0.45% 2,705 5 0.75% 5,300 10 0.76%Other short-term borrowings — 18 —% — 20 —% 442,546 5,399 4.91%Total short-term borrowings 896 19 8.51% 2,705 25 3.75% 447,846 5,409 4.86%Long-term debt 112,035 1,754 6.28% 113,364 1,791 6.41% 120,256 2,078 6.95%Total borrowed funds 112,931 1,773 6.30% 116,069 1,816 6.35% 568,102 7,487 5.30%Total interest bearing liabilities$4,599,750 $27,438 2.39% $4,592,724 $27,300 2.41% $5,147,875 $36,429 2.85%Noninterest bearing deposits 912,097 922,164 935,151 Other liabilities 73,094 82,280 96,553 Shareholders’ equity 587,708 571,378 533,994 Total liabilities and shareholders’ equity$6,172,649 $6,168,546 $6,713,573 Net interest income(2) $51,164 $48,582 $37,662 Net interest spread(2) 3.10% 2.96% 1.89%Net interest margin(2) 3.57% 3.44% 2.41% Total deposits(5)$5,398,916 $25,665 1.91% $5,398,819 $25,484 1.91% $5,514,924 $28,942 2.11%Cost of funds(6) 2.00% 2.01% 2.41% (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 $272 thousand, $256 thousand, and $337 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Loan purchase discount accretion was $1.1 million, $1.2 million, and $1.3 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Tax equivalent adjustments were $1.0 million, $981 thousand, and $938 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%.(4) Interest income includes tax equivalent adjustments of $160 thousand, $162 thousand, and $377 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, 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. MIDWESTONE FINANCIAL GROUP, INC.AVERAGE BALANCE SHEET AND YIELD ANALYSIS Six Months Ended June 30, 2025 June 30, 2024(Dollars in thousands)AverageBalance InterestIncome/Expense AverageYield/Cost AverageBalance InterestIncome/Expense AverageYield/CostASSETS Loans, including fees (1)(2)(3)$4,330,659 $123,741 5.76% $4,358,957 $121,448 5.60%Taxable investment securities 1,187,836 26,255 4.46% 1,538,928 18,688 2.44%Tax-exempt investment securities (2)(4) 104,170 1,724 3.34% 325,414 4,137 2.56%Total securities held for investment(2) 1,292,006 27,979 4.37% 1,864,342 22,825 2.46%Other 114,327 2,764 4.88% 25,529 660 5.20%Total interest earning assets(2)$5,736,992 $154,484 5.43% $6,248,828 $144,933 4.66%Other assets 433,617 425,648 Total assets$6,170,609 $6,674,476 LIABILITIES AND SHAREHOLDERS’ EQUITY Interest checking deposits$1,230,873 $4,228 0.69% $1,299,413 $6,035 0.93%Money market deposits 994,340 12,390 2.51% 1,087,616 15,886 2.94%Savings deposits 839,498 6,218 1.49% 716,458 4,720 1.32%Time deposits 1,417,054 28,313 4.03% 1,458,969 30,027 4.14%Total interest bearing deposits 4,481,765 51,149 2.30% 4,562,456 56,668 2.50%Securities sold under agreements to repurchase 1,795 6 0.67% 5,315 21 0.79%Other short-term borrowings — 38 —% 426,036 10,363 4.89%Total short-term borrowings 1,795 44 4.94% 431,351 10,384 4.84%Long-term debt 112,696 3,545 6.34% 121,761 4,181 6.91%Total borrowed funds 114,491 3,589 6.32% 553,112 14,565 5.30%Total interest bearing liabilities$4,596,256 $54,738 2.40% $5,115,568 $71,233 2.80%Noninterest bearing deposits 917,103 935,564 Other liabilities 77,662 92,581 Shareholders’ equity 579,588 530,763 Total liabilities and shareholders’ equity$6,170,609 $6,674,476 Net interest income(2) $99,746 $73,700 Net interest spread(2) 3.03% 1.86%Net interest margin(2) 3.51% 2.37% Total deposits(5)$5,398,868 $51,149 1.91% $5,498,020 $56,668 2.07%Cost of funds(6) 2.00% 2.37% (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 $528 thousand and $574 thousand for the six months ended June 30, 2025 and June 30, 2024, respectively. Loan purchase discount accretion was $2.3 million and $2.4 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Tax equivalent adjustments were $2.0 million and $1.9 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%.(4) Interest income includes tax equivalent adjustments of $0.3 million and $0.8 million for the six months ended June 30, 2025 and June 30, 2024, 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. Non-GAAP Measures This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share, and pre-tax pre-provision net revenue. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure. Tangible Common Equity/Tangible Book Value per Share/Tangible Common Equity Ratio June 30, March 31, December 31, September 30, June 30,(Dollars in thousands, except per share data) 2025 2025 2024 2024 2024 Total shareholders’ equity $589,040 $579,625 $559,696 $562,238 $543,286 Intangible assets, net (92,147) (93,399) (94,807) (96,257) (97,327)Tangible common equity $496,893 $486,226 $464,889 $465,981 $445,959 Total assets $6,160,773 $6,254,394 $6,236,329 $6,552,482 $6,581,658 Intangible assets, net (92,147) (93,399) (94,807) (96,257) (97,327)Tangible assets $6,068,626 $6,160,995 $6,141,522 $6,456,225 $6,484,331 Book value per share $28.36 $27.85 $26.94 $27.06 $34.44 Tangible book value per share(1) $23.92 $23.36 $22.37 $22.43 $28.27 Shares outstanding 20,769,577 20,815,715 20,777,485 20,774,919 15,773,468 Common equity ratio 9.56% 9.27% 8.97% 8.58% 8.25%Tangible common equity ratio(2) 8.19% 7.89% 7.57% 7.22% 6.88% (1) Tangible common equity divided by shares outstanding.(2) Tangible common equity divided by tangible assets. Three Months Ended Six Months EndedReturn on Average Tangible Equity June 30, March 31, June 30, June 30, June 30,(Dollars in thousands) 2025 2025 2024 2025 2024 Net income $9,980 $15,138 $15,819 $25,118 $19,088 Intangible amortization, net of tax(1) 931 1,047 1,195 1,978 2,423 Tangible net income $10,911 $16,185 $17,014 $27,096 $21,511 Average shareholders’ equity $587,708 $571,378 $533,994 $579,588 $530,763 Average intangible assets, net (92,733) (94,169) (99,309) (93,447) (97,302)Average tangible equity $494,975 $477,209 $434,685 $486,141 $433,461 Return on average equity 6.81% 10.74% 11.91% 8.74% 7.23%Return on average tangible equity(2) 8.84% 13.75% 15.74% 11.24% 9.98% (1) The income tax rate utilized was the blended marginal tax rate.(2) Annualized tangible net income divided by average tangible equity. Net Interest Margin, Tax Equivalent/Core Net Interest Margin Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30,(Dollars in thousands) 2025 2025 2024 2025 2024 Net interest income $49,982 $47,439 $36,347 $97,421 $71,078 Tax equivalent adjustments: Loans(1) 1,022 981 938 2,003 1,858 Securities(1) 160 162 377 322 764 Net interest income, tax equivalent $51,164 $48,582 $37,662 $99,746 $73,700 Loan purchase discount accretion (1,142) (1,166) (1,261) (2,308) (2,413)Core net interest income $50,022 $47,416 $36,401 $97,438 $71,287 Net interest margin 3.49% 3.36% 2.33% 3.42% 2.29%Net interest margin, tax equivalent(2) 3.57% 3.44% 2.41% 3.51% 2.37%Core net interest margin(3) 3.49% 3.36% 2.33% 3.42% 2.29%Average interest earning assets $5,745,664 $5,728,250 $6,282,494 $5,736,992 $6,248,828 (1) The federal statutory tax rate utilized was 21%.(2) Annualized tax equivalent net interest income divided by average interest earning assets.(3) Annualized core net interest income divided by average interest earning assets. Three Months Ended Six Months EndedLoan Yield, Tax Equivalent / Core Yield on Loans June 30, March 31, June 30, June 30, June 30,(Dollars in thousands) 2025 2025 2024 2025 2024 Loan interest income, including fees $62,276 $59,462 $61,643 $121,738 $119,590 Tax equivalent adjustment(1) 1,022 981 938 2,003 1,858 Tax equivalent loan interest income $63,298 $60,443 $62,581 $123,741 $121,448 Loan purchase discount accretion (1,142) (1,166) (1,261) (2,308) (2,413)Core loan interest income $62,156 $59,277 $61,320 $121,433 $119,035 Yield on loans 5.72% 5.62% 5.61% 5.67% 5.52%Yield on loans, tax equivalent(2) 5.81% 5.71% 5.69% 5.76% 5.60%Core yield on loans(3) 5.70% 5.60% 5.58% 5.65% 5.49%Average loans $4,370,196 $4,290,710 $4,419,697 $4,330,659 $4,358,957 (1) The federal statutory tax rate utilized was 21%.(2) Annualized tax equivalent loan interest income divided by average loans.(3) Annualized core loan interest income divided by average loans. Three Months Ended Six Months EndedEfficiency Ratio June 30, March 31, June 30, June 30, June 30,(Dollars in thousands) 2025 2025 2024 2025 2024 Total noninterest expense $35,767 $36,293 $35,761 $72,060 $71,326 Amortization of intangibles (1,252) (1,408) (1,593) (2,660) (3,230)Merger-related expenses — (40) (854) (40) (2,168)Noninterest expense used for efficiency ratio $34,515 $34,845 $33,314 $69,360 $65,928 Net interest income, tax equivalent(1) $51,164 $48,582 $37,662 $99,746 $73,700 Plus: Noninterest income 10,249 10,136 21,554 20,385 31,304 Less: Investment securities gains, net — 33 33 33 69 Net revenues used for efficiency ratio $61,413 $58,685 $59,183 $120,098 $104,935 Efficiency ratio (2) 56.20% 59.38% 56.29% 57.75% 62.83% (1) The federal statutory tax rate utilized was 21%.(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains. Three Months Ended Six Months EndedAdjusted Earnings June 30, March 31, June 30, June 30, June 30,(Dollars in thousands, except per share data) 2025 2025 2024 2025 2024 Net income $9,980 $15,138 $15,819 $25,118 $19,088 Less: Investment securities gains, net of tax(1) — 25 24 24 51 Less: Mortgage servicing rights (loss) gain, net of tax(1) (196) (158) 96 (355) (177)Plus: Merger-related expenses, net of tax(1) — 30 634 30 1,608 Less: Gain on branch sale, net of tax(1) — — 8,201 — 8,201 Adjusted earnings $10,176 $15,301 $8,132 $25,479 $12,621 Weighted average diluted common shares outstanding 20,843 20,849 15,781 20,846 15,775 Earnings per common share - diluted $0.48 $0.73 $1.00 $1.20 $1.21 Adjusted earnings per common share(2) $0.49 $0.73 $0.52 $1.22 $0.80 (1) The income tax rate utilized was the blended marginal tax rate. (2) Adjusted earnings divided by weighted average diluted common shares outstanding. For the Three Months Ended Year EndedPre-tax Pre-provision Net Revenue June 30, March 31, June 30, June 30, June 30,(Dollars in thousands) 2025 2025 2024 2025 2024 Net interest income $49,982 $47,439 $36,347 $97,421 $71,078 Noninterest income 10,249 10,136 21,554 20,385 31,304 Noninterest expense (35,767) (36,293) (35,761) (72,060) (71,326)Pre-tax Pre-provision Net Revenue $24,464 $21,282 $22,140 $45,746 $31,056 Category: EarningsThis news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc. Source: MidWestOne Financial Group, Inc. Contacts: Charles N. Reeves Barry S. RayChief Executive Officer Chief Financial Officer319.356.5800 319.356.5800

MidWestOne Financial Group, Inc. Reports Financial Results for the Second Quarter of 2025

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