REPORTS FOURTH QUARTER AND YEAR 2015 FINANCIAL RESULTS
Iowa City, Iowa, January 28, 2016 - MidWestOne Financial Group, Inc. (NASDAQ - MOFG) today reported its financial results for the three months and year ended December 31, 2015, including eight months of results after its merger with Central Bancshares, Inc. (“Central”), which closed on May 1, 2015. Net income for the fourth quarter of 2015 totaled $8.2 million, compared with $3.9 million for the same period last year. Basic and diluted earnings per share were $0.72 for the fourth quarter of 2015, compared with $0.46 for both basic and diluted earnings per share for the fourth quarter of 2014. After excluding the effects of $0.1 million of expenses related to the merger with Central, adjusted diluted earnings per share for the fourth quarter of 2015 were $0.73, compared to $0.57 for the same period last year, reflecting growth of 28.1%.
Earnings comparisons between the fourth quarter of 2015 and the same period in 2014 were affected primarily by the Central acquisition, highlighted by the following:
a 92.4% increase in net interest income, due primarily to a 78.1% increase in interest income which included merger-related discount accretion of $1.3 million;
an 87.8% increase in noninterest income, driven by increases in other service charges, commissions and fees, service charges and fees on deposit accounts, and mortgage origination and loan servicing fees; and
a 14.3% decrease in income tax expense, due to the recognition of additional rehabilitation and historic tax credits on the Company’s headquarters building; offset by
an increase of $1.2 million in the provision for loan losses, due primarily to loan growth; and
a 92.3% increase in noninterest expense, primarily due to a 107.3% increase in salaries and employee benefits which resulted mainly from the additional compensation expense associated with the Central acquisition.
“We continue to make significant progress with our merger integration and are pleased with the 2015 financial results,” stated President and Chief Executive Officer, Charles N. Funk. “The fourth quarter saw continued robust loan growth from the Central Bank footprint, which was a key contributor to our overall results. As in prior quarters, the fourth quarter contained some one-time items, notably the sale of our our Ottumwa branch and the finalization of our historic tax credits, most of which positively impacted our results. We are also on track to merge Central Bank into MidWestOne Bank early in the second quarter of 2016.”
Net income for the year ended December 31, 2015 was $25.1 million, an increase of $6.6 million, or 35.6%, compared to $18.5 million of net income for the same period in 2014, with diluted earnings per share of $2.42 and $2.19 for the comparative annual periods, respectively. The increase in net income was due primarily to the merger with Central, with higher net interest income and increased noninterest income, partially offset by increased noninterest expense and income tax expense. After excluding the effects of $3.5 million ($3.0 million after tax) of expenses related to the merger, adjusted diluted earnings per share for the year ended December 31, 2015 were $2.70, compared to $2.31 for the same period last year, reflecting growth of 16.9%.
Results of Operations
Net interest income of $26.8 million for the fourth quarter of 2015 increased $12.9 million, or 92.4%, from $13.9 million for the fourth quarter of 2014, primarily due to the merger. An increase in average loan balances, and the effect of the merger-
The following information was filed by Midwestone Financial Group, Inc. (MOFG) on Thursday, January 28, 2016 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.
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Ticker: MOFG CIK: 1412665 Form Type:10-K Annual Report Accession Number: 0001412665-16-000134 Submitted to the SEC: Thu Mar 03 2016 4:35:22 PM EST Accepted by the SEC: Thu Mar 03 2016 Period: Thursday, December 31, 2015 Industry: State Commercial Banks