MidWestOne Financial Group, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a net loss of $95.7 million for the third quarter, a stark contrast to a net income of $9.1 million in the same period of 2023. This resulted in a diluted loss per share of $(6.05), compared to earnings of $0.58 per share in the prior year. For the nine months ended September 30, 2024, the net loss totaled $76.6 million, compared to a net income of $18.1 million for the same period in 2023.
Total revenue, net of interest expense, for the third quarter of 2024 was reported at $(92.9 million), down from $44.4 million in the previous year. The decline in revenue was primarily attributed to a $140.4 million impairment loss on securities, which overshadowed a $3.1 million increase in net interest income, which rose to $37.5 million from $34.6 million year-over-year. The increase in net interest income was driven by higher loan yields and increased volumes, particularly from the recently acquired DNVB loans.
Total assets increased to $6.55 billion as of September 30, 2024, up from $6.43 billion at the end of 2023. The company’s cash and cash equivalents saw a substantial rise to $201.9 million, compared to $81.7 million at the end of 2023. Loans held for investment also increased to $4.33 billion, reflecting a growth of $201.8 million from the previous period.
On the liabilities side, total deposits decreased slightly to $5.37 billion from $5.40 billion at the end of 2023. The company reported an increase in short-term borrowings to $410.6 million, up from $300.3 million, while long-term debt decreased to $115.1 million from $123.3 million.
Strategically, MidWestOne completed the acquisition of DNVB on January 31, 2024, for $32.6 million, which included merging its subsidiary into MidWestOne Bank. Additionally, the company divested its Florida banking operations on June 7, 2024, for a 7.5% deposit premium, resulting in a gain of $10.9 million recorded in other revenue.
The allowance for credit losses increased to $54 million, representing 1.25% of total loans, reflecting a proactive approach to managing credit risk amid changing market conditions. Nonperforming assets decreased to $25.5 million, down from $30.3 million at the end of 2023, indicating improved asset quality.
About MidWestOne Financial Group, Inc.
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