MidWestOne Financial Group, Inc. reported a net loss of $95.7 million, or $6.05 per share, for the third quarter of 2024. This loss was primarily driven by a pre-tax securities impairment charge of $140.4 million related to the company's balance sheet repositioning efforts.
Despite the impairment, the company's adjusted earnings per share reached $0.58, surpassing the consensus estimate of $0.56. Net interest income increased by $1.2 million from the prior quarter to $37.5 million, and the tax equivalent net interest margin expanded to 2.51% from 2.41% in the second quarter of 2024.
Loans held for investment increased by $41.5 million, or 1.0%, to $4.33 billion, driven by organic growth and higher line of credit usage. The nonperforming loans ratio improved, declining 8 basis points to 0.51% compared to the linked quarter, indicating some improvement in asset quality.
Total deposits decreased by $43.7 million, or 0.8%, to $5.37 billion, although noninterest bearing deposits increased by $35.2 million. The company declared a cash dividend of $0.2425 per common share, payable on December 16, 2024.
CEO Charles Reeves stated that the common equity capital raise and balance sheet repositioning are significant, transformational steps. He noted that the financial results from the repositioning exceeded communicated expectations and that net interest income is expected to be higher going forward.
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