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October 24, 2024 Newswires

Q3 2024 Earnings Release Presentation

U.S. Markets via PUBT

Third Quarter 2024

Earnings Conference Call

October 25, 2024

Financial Highlights

3Q24 Financial Highlights

Change vs.

Dollars in millions, except per share amounts

3Q24

2Q24

3Q23

Balance

Sheet

Capital and

Liquidity

Total assets	$	6,552.5	(0.44) %	1.31	%
Total loans held for investment, net		4,328.8	0.97		6.46
Total deposits		5,368.7	(0.81)		0.10

Equity to assets ratio		8.58 %	33	bps	77	bps
Tangible common equity ratio (non-GAAP)		7.22	34		68
CET1 risk-based capital ratio		9.91	35		39
Total risk-based capital ratio		12.96	34		51
Loans to deposits ratio		80.63	142		482

Profitability

Credit Risk

Profile

Net interest margin, tax equivalent (non-GAAP)		2.51 %	10	bps	16	bps
Cost of total deposits		2.14	3		43
Retuon average assets		(5.78)	(673)		(634)
Efficiency ratio (non-GAAP)		70.32	1,403		426
Diluted EPS	$	(6.05)	(705)	%	(1143)	%
Adjusted EPS (non-GAAP)		0.58	12		4

Nonperforming loans ratio		0.51 %	(8)	bps	(20)	bps
Nonperforming assets ratio		0.39	(8)		(6)
Net charge-off ratio		0.16	11		12
Allowance for credit losses ratio		1.25	(1)		(2)

-	See the section "Non-GAAP Financial measures."	3
-	Note: Financial metrics as of or for the quarter ended September 30, 2024.

Capital Raise & Balance Sheet Repositioning

Transaction Details(1)

Capital Raise (net proceeds)	$118.6 million
Securities Sold (market value):	$1.0 billion
Average Yield on Securities Sold:	1.58%
Reinvested Securities (market value):	$589.8 million
Average Yield on Reinvested Securities	4.65%
Funding Paid Down:	$418.7 million(2)
Weighted Avg Cost of Funding Paid Down:	4.77%

(1)Transaction details are as of 10/21/24.

(2)Represents $405.0 million of Federal Reserve Bank Term Funding Program borrowings and $13.7 million of accrued interest.

Company Focus

MOFG's Five Strategic Pillars to Deliver Improved Results

Exceptional Customer and Employee Engagement

Strong Core Local Banking Model

Sophisticated Commercial Banking and Wealth Management

Specialty Business Lines

Improving our Efficiency and Operations

Enhance MOFG's award winning culture with a continued focus on performance and financial results

Protect and enhance MOFG's dominant community bank franchise through product expansion

Continue to hire exceptional relationship bankers and wealth management professionals

Develop specialty commercial banking verticals by continuing to attract experienced professionals

Continue to identify and execute on opportunities for efficiency gains and cost reduction

What We Have Accomplished

Strategic Plan Updates

☑☑

☑

☑☑

Geographic	Talent
Realignment	Transformation
Sale of Florida	Robust talent
branches (7.5%	acquisition
deposit premium)	strategy installing
and Acquisition of	senior leaders,
Bank of Denver	product
in first half of	management, IT
2024	resources and
	revenue
	producers across
	target markets

Commercial

Growth

Annualized commercial & industrial ("C&I") and commercial real estate ("CRE") loan growth was 11% and 3%, respectively, for the third quarter of 2024

Wealth

Continued momentum in Wealth Management, with year-to-date revenue growth of 15% compared to the prior year

(through third quarter)

Operational

Efficiency

Completed a common equity capital raise during the third quarter of 2024, with proceeds used to support a balance sheet repositioning executed early in the fourth quarter of 2024

Diversified and Granular Loan Portfolio

Loans Held for Investment 09/30/24

LTM Commercial Loan Growth in Targeted Regions(2)

Consumer, 2%	Agricultural, 3%
Residential Real Estate, 15%

C&I, 27%

$4.33

billion

CRE-Other, 31%	Construction &
	Development, 9%

Farmland, 4%

Multifamily, 9%

+14%

+16%+$152 million +$152 million

+19%

+$82 million(3)

$1,090$1,204

$697

Iowa Metro

Twin Cities

Denver

5.86% Yield(4)	<$495K
Avg. Commercial
	Loan Size(1)

Financial Information as of September 30, 2024.
(1)Average net nonaccrual active principal balance of the commercial loan portfolio.
(2)	Commercial loan net active principal balances reported in millions ($).
(3)	Excludes $193 million net active principal balance of commercial loans acquired in Denver Bankshares, Inc.
acquisition.
(4)	Non-GAAP Measure. See the Non-GAAP measures section for a reconciliation of the most directly comparable	7
GAAP measure.

Credit Quality

Nonperforming Assets

$33.2

$30.3$31.2

$29.0

$25.5

$ millions

9/30/2023

12/31/2023

3/31/2024

6/30/2024

9/30/2024

Credit Quality Measures

$ millions	3Q23	4Q23	1Q24	2Q24	3Q24
Nonperforming assets ratio	0.45 %	0.47 %	0.49 %	0.47 %	0.39 %
Net charge-off ratio	0.04 %	0.20 %	0.02 %	0.05 %	0.16 %
Loans greater than 30 days past due and	$6.4	$10.8	$8.8	$9.4	$11.9
accruing
Allowance for credit losses ratio	1.27 %	1.25 %	1.27 %	1.26 %	1.25 %

Net Charge-Offs

millions$	$2.1			$1.7


$0.5		$0.2	$0.5


	3Q23	4Q23	1Q24	2Q24	3Q24

Commercial Real Estate

Non-Owner Occupied CRE Office

September 30, 2024

3.6%

96.4%

NOO CRE Office

All Other Loans

Portfolio Highlights

September 30, 2024

Average NOO CRE Office outstanding principal ($ millions)					$	1.4
			% of Total Capital
								Regulatory
Commercial Real Estate Concentration:	3Q24			2Q24				Threshold
Construction, land development and other land	56%	52%			100%
Total CRE loans(1)	232%	237%			300%

Commercial Real Estate Portfolio(2)
September 30, 2024

$ millions			3Q24			2Q24
Construction & Development	$	386.9	$			351.6
Farmland			182.2				183.6
Multifamily			409.5				430.1
CRE Other:
NOO CRE Office			154.7				157.1
OO CRE Office			84.6				84.6
Industrial and Warehouse			403.5				407.3
Retail			282.4				262.0
Hotel			111.7				112.8
Other			316.6				324.7
Total Commercial Real Estate		$	2,332.1	$			2,313.8

(1)Total CRE loans includes construction, land development and other land, in	9
addition to multifamily and NOO CRE.

(2) Represents the amortized cost of the CRE portfolio.

Focusing on Growth in Wealth Management

Wealth Management Assets Under Administration

Private Banking

Right-sizebook of business with consistent eligibility
Launched new concierge support
Building out product set
Added a new Senior Private Banker in Des Moines and Denver during 2024

$4.00

$2.74 $2.73

$2.44

$2.00

$3.01 $3.18

Private Wealth

Enhance planning with a single platform across Private Wealth and Investment Services
Reviewing platform options to dramatically enhance investment offering in the first quarter of 2025
Increase focus on thought leadership
Enhance fee opportunities with fiduciary services and proprietary investments

Investment Services

Adding advisors in Twin Cities & Denver
Focus on building recurring revenue through fee-based business

$-
2020	2021	2022	2023	3Q24

Investment Services and Private Wealth Revenue

$15.0				$11.7	$11.2	$12.2


						$10.4

$10.0		$9.6

			$7.5	$7.3	$8.4	$6.9

		$6.4

$5.0
	$3.2	$4.2	$3.9	$3.8	$3.5




		2020	2021	2022	2023	YTD 3Q24
					Investment Services		Private Wealth

Asset amounts presented are in billions of dollars
Revenue amounts presented are in millions of dollars

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MidWestOne Financial Group Inc. published this content on October 24, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 24, 2024 at 20:31:18.250.