FOR IMMEDIATE RELEASE
Charles N. Funk
Gary J. Ortale
President & CEO
EVP & CFO
Dresner Corporate Services
MIDWESTONE FINANCIAL GROUP, INC.
REPORTS FOURTH QUARTER 2014 FINANCIAL RESULTS
AND DECLARES INCREASED DIVIDEND
Iowa City, Iowa, January 22, 2015 - MidWestOne Financial Group, Inc. (NASDAQ - MOFG), today reported results for its three months and year ended December 31, 2014. Net income for the fourth quarter of 2014 totaled $3.9 million, compared with $4.4 million for the same period last year. Both basic and diluted earnings per share were $0.46 for the fourth quarter of 2014, compared with $0.52 for each metric for the fourth quarter of 2013. After excluding the effects of $1.0 million of expenses related to the previously announced merger with Central Bancshares, Inc., adjusted diluted earning per share for the fourth quarter of 2014 were $0.57.
Earnings comparisons between the fourth quarter of 2014 and the same period in 2013 were driven primarily by:
a 13.1% increase in noninterest expense, primarily due to a 152.1% increase in professional fees, mainly related to the previously announced merger with Central Bancshares of $1.0 million ($0.9 million after tax); partially offset by
a 4.6% increase in net interest income, due primarily to a 11.6% decrease in interest expense; and
a 9.3% increase in noninterest income, driven by increases in service charges and fees on deposit accounts and gains on the sale of available for sale securities.
“The year ended December 31, 2014 was our fourth consecutive year in which we had record-breaking, all-time high in earnings per share,” stated President and Chief Executive Officer, Charles N. Funk. “Our fourth quarter results were down, however, because of one-time expenses associated with our recently announced acquisition of Central Bankshares.”
Net income for the year ended December 31, 2014 was $18.5 million, a decrease of $0.1 million, or 0.5%, compared to $18.6 million in net income for the same period in 2013, with diluted earnings per share of $2.19 and $2.18 for the comparative year periods, respectively. The decrease in net income was due primarily to increased noninterest expense, partially offset by higher net interest income, a lower loan loss provision and increased noninterest income. After excluding the effects of $1.1 million of expenses related to the previously announced merger with Central Bancshares, Inc., adjusted diluted earning per share for the year ended December 31, 2014 were $2.31.
Results of Operations
Net interest income for the fourth quarter of 2014 increased $0.6 million, or 4.6%, from $13.3 million for the fourth quarter of 2013, to $13.9 million. An increase in average loan balances resulted in loan interest income increasing by $0.1 million, or 1.2%, to $12.4 million for the fourth quarter of 2014. Income from investment securities decreased to $3.5 million for the fourth quarter of 2014 compared to $3.7 million for the fourth quarter of 2013, despite an increase of $3.7 million in the average balance of investment securities between the two comparable periods, due primarily to lower yields being received on newly purchased securities. Income from loan pool participations was $0.4 million for the fourth quarter of 2014, an increase of $0.2 million compared to the same period a year ago, on a significantly lower level of investment in 2014. The Company continues to exit this line of business as balances are paid down. Interest expense decreased $0.3 million, or 11.6%, to $2.4 million for the fourth quarter of 2014, compared to $2.7 million for the same period in 2013, primarily due to lower expense on deposit accounts resulting primarily from the maturity of higher rate certificates of deposit.
The following information was filed by Midwestone Financial Group, Inc. (MOFG) on Thursday, January 22, 2015 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.