FOR IMMEDIATE RELEASE
Charles N. Funk
Gary J. Ortale
President & CEO
EVP & CFO
Dresner Corporate Services
MIDWESTONE FINANCIAL GROUP, INC.
REPORTS FOURTH-QUARTER 2011 FINANCIAL RESULTS
Iowa City, Iowa, January 26, 2012 - MidWestOne Financial Group, Inc., (NASDAQ - MOFG) today reported results for its fourth quarter and fiscal year ended December 31, 2011.
Net income for the fourth quarter of 2011 rose to $3.4 million compared with $2.7 million for the same period last year. After dividends and discount accretion on the Company's preferred stock, net income available to common shareholders also rose to $3.4 million, or $0.39 per diluted share, compared with net income available to common shareholders of $2.5 million, or $0.29 per diluted share, in the fourth quarter of 2010.
Net income for the fourth quarter of 2011 was higher than for the same period in 2010 primarily due to:
a 52.9% decrease in the provision for loan losses; and
a 5.9% increase in net interest income, primarily attributable to a 16.9% decrease in interest expense.
Net income for 2011 totaled $13.3 million, a $3.2 million, or 31.5%, increase compared to $10.1 million of net income for 2010. After dividends and discount accretion on the Company's preferred stock, 2011 net income available to common shareholders rose to $12.7 million, or $1.47 per diluted share, compared with net income available to common shareholders of $9.3 million, or $1.07 per diluted share, for 2010. The increase in net income for the year was due primarily to lower provision for loan loss expense and decreased noninterest expense, which is consistent with the quarterly results.
"There are many reasons to be pleased with these results," stated President and Chief Executive Officer Charles N. Funk. "Foremost among them is the fact that annual earnings of $1.47 per share is an all-time high for the Company, reflecting the positive results we expected from our 2008 merger."
Results of Operations
Net interest income for the fourth quarter of 2011 improved to $12.6 million, up $0.7 million, or 5.9%, from $11.9 million for the fourth quarter of 2010. The continuing low interest rate environment and its impact on deposit and borrowed fund rates was the primary cause of the higher net interest income, as a decrease in interest expense on deposits of $0.7 million and on Federal Home Loan Bank borrowings of $0.3 million more than offset the decrease in interest income from loans of $0.2 million. In addition, interest income on loan pool participations decreased to $7,000 for the fourth quarter of 2011 compared to $0.3 million for the same period a year ago, due to a higher level of loan charge-offs.
Net interest income for 2011 increased to $48.8 million, up $0.9 million, or 1.9%, from $47.9 million for 2010. The continuing low interest rate environment's impact on loan yields and interest income on loan pool participations, partially offset by an increase in income from investment securities of $1.7 million, did not fully negate the beneficial effect of low interest rates on the Company's interest expense. Loan interest income decreased $2.5 million, or 4.7%, to $52.2 million for 2011, compared to $54.7 million for 2010. Income from loan pool participations decreased to $1.1 million for 2011, compared to $2.6 million for
The following information was filed by Midwestone Financial Group, Inc. (MOFG) on Thursday, January 26, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.