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Dec 31, 2021
MidwestOne Q4 2021 Earnings Report
Reported financial results, showing net income of $14.3 million and diluted EPS of $0.91.
Key Takeaways
MidwestOne Financial Group, Inc. reported a solid fourth quarter of 2021, with net income of $14.3 million, or $0.91 per diluted common share. The company saw good ex-PPP commercial loan growth and improvements in nonperforming loans and nonperforming assets ratios.
Net income for the fourth quarter was $14.3 million, or $0.91 per diluted common share.
Total revenue, net of interest expense, was $50.0 million.
Excluding Paycheck Protection Program (PPP) loans, commercial loans increased 5.5% annualized
Nonperforming assets ratio declined 5 bps to 0.53%.
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 to see continued progress in nonperforming assets in 2022 and anticipates the effective income tax rate for the full year 2022 to be in the range of 19.5-21.5%.
Positive Outlook
- Expect continued progress in nonperforming assets in 2022.
- Common stock dividend increase of 5.6% for 2022.
- Solid pipeline of new loans.
- Wealth management team revenue in 2021 was up $2.0 million, or 21.2%, from the prior year and we expect continued good progress.
- Continued progress in wealth management.
Challenges Ahead
- Mortgage team contributed mightily to the record 2021 results, but in line with the rise in long-term interest rates, we see that slowing in 2022.
- Merger-related legal expenses of $0.2 million.
- The effective income tax rate increased to 24.9% in the fourth quarter of 2021 compared to 21.7% in the linked quarter primarily due to the year-end adjustment to federal tax expense based upon 2021 taxable income.
- The increase in noninterest expense and the decline in net interest income, partially offset by the increase in noninterest income were the primary drivers of the increase in the efficiency ratio.
- Net interest income decreased to $38.8 million in the fourth quarter of 2021 from $40.3 million in the third quarter of 2021 due primarily to decreased PPP loan fee accretion stemming from loan forgiveness.