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Mar 31, 2020
MidwestOne Q1 2020 Earnings Report
Reported a net loss due to credit loss expense, but saw increases in noninterest income and decreases in noninterest expenses.
Key Takeaways
MidwestOne Financial Group, Inc. reported a net loss for the first quarter of 2020 of $2.0 million, or $0.12 per diluted common share. The quarter was dominated by the activity to prepare and deal with the effects of the COVID-19 pandemic. Credit loss expense for the first quarter was $21.7 million, which reduced diluted earnings per common share by approximately $0.99.
Approved approximately $332 million of PPP loans for 2,190 customers through April 28, 2020.
Net Loss of $2.0 million, or a Loss of $0.12 Per Diluted Share due to Credit Loss Expense of $21.7 million
Pre-tax, Pre-provision Net Revenue of $17.6 million, an increase of $5.4 million.
Ending deposit balances rose $131.2 million, or 4%, from year-end 2019
MidwestOne
MidwestOne
MidwestOne Revenue by Segment
Revenue by Segment
Investment Services & Trust Activities Revenue
CapyFin.comService Charges & Fees Revenue
CapyFin.comCard Revenue
CapyFin.comLoan Revenue
CapyFin.comBank-Owned Life Insurance Revenue
CapyFin.comInvestment Securities Gains, Net Revenue
CapyFin.comOther Noninterest Income Revenue
CapyFin.com Forward Guidance
The company expects net interest margin improvement in the second quarter as funding costs are adjusted.
Positive Outlook
- Expect to see net interest margin improvement in the second quarter as funding costs are adjusted.
- Online banking user sessions and online account openings increased.
- Excellent deposit growth.
- Very good fee income across our footprint.
- Improved expense management.
Challenges Ahead
- The quarter was dominated by the activity to prepare and deal with the effects of the COVID-19 pandemic on our employees, customers and communities.
- Credit loss expense of $21.7 million is related to the worsening forecast for the U.S. and our regional economy due to the significant slowing we’ve seen in current and forecasted economic activity.
- Net interest income decreased in the first quarter of 2020 to $37.4 million from $39.6 million in the linked quarter, reflecting net interest margin compression and lower loan purchase discount accretion.
- Construction and development loans were down, which is partially seasonal, and pay-downs occurred in the multi-family portfolio.
- Total nonperforming assets (NPAs) were relatively flat quarter to quarter.