8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 23, 2024

MidWestOne Financial Group, Inc.

(Exact name of registrant as specified in its charter)

Commission file number 001-35968

 

Iowa	42-1206172
(State or other jurisdiction of incorporation)	(I.R.S. Employer Identification Number)

102 South Clinton Street

Iowa City, Iowa 52240

(Address of principal executive offices, including zip code)

(319) 356-5800

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $1.00 par value	MOFG	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Item 2.02.     Results of Operations and Financial Condition.

On January 25, 2024, MidWestOne Financial Group, Inc. (the “Company”) issued a press release announcing its earnings for the three months and year ended December 31, 2023. The press release is furnished herewith as Exhibit 99.1. In addition, the Company is providing a financial supplement furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The information in this item and the attached press release and financial supplement shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in any such filing.

Item 8.01.    Other Events.

The Board of Directors of the Company declared a cash dividend of $0.2425 per common share on January 23, 2024. The dividend is payable March 15, 2024, to shareholders of record at the close of business on March 1, 2024.

Item 9.01.    Financial Statements and Exhibits.

(d)    Exhibits.

99.1	MidWestOne Financial Group, Inc. press release dated January 25, 2024
99.2	MidWestOne Financial Group, Inc. financial supplement dated January 25, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		MIDWESTONE FINANCIAL GROUP, INC.
Dated:	January 25, 2024	By:	/s/ BARRY S. RAY
			Barry S. Ray
			Chief Financial Officer

EX-99.1

FOR IMMEDIATE RELEASE January 25, 2024

MIDWESTONE FINANCIAL GROUP, INC.

REPORTS FINANCIAL RESULTS FOR THE

FOURTH QUARTER AND FULL YEAR OF 2023

Iowa City, Iowa - MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the "Company”) today reported results for the fourth quarter and full year of 2023.

FourthQuarter 2023Summary1

•Net income of $2.7 million, or $0.17 per diluted common share, including, on a pre-tax basis, securities net losses of $5.7 million, merger-related costs of $245 thousand, voluntary early retirement program costs of $438 thousand, and a negative mortgage servicing right valuation adjustment of $105 thousand.

•Sold $115.2 million of securities in a balance sheet repositioning, proceeds were utilized to purchase higher yielding debt securities and reduce short-term borrowings.

•Annualized loan growth of 6.1%.

•Deposits, excluding brokered deposits, increased $31.4 million, or 0.6%, the second sequential quarter of deposit growth.

•Nonperforming assets ratio remained stable at 0.47%; net charge-off ratio was 0.20%.

•Received all regulatory approvals for the previously announced acquisition of Denver Bankshares, Inc, which is expected to close early in the first quarter of 2024.

Full Year 2023Summary1

•Net income for the full year was $20.9 million, or $1.33 per diluted common share.

•Sold $346.9 million of securities to reposition the balance sheet, proceeds were utilized to purchase higher yielding debt securities and reduce short-term borrowings.

•Net charge-off ratio declined 10 basis points ("bps") to 0.09%.

•Tangible book value of $27.902, an increase of $2.30 or 9%.

Subsequent Events

•On January 23, 2024, the Board of Directors declared a cash dividend of $0.2425 per common share, payable on March 15, 2024 to shareholders of record as of the close of business on March 1, 2024.

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “I'm pleased with our balance sheet trends, as we delivered 6.1% annualized loan growth during the fourth quarter of 2023, and continue to benefit from the expansion of our major market banking teams. We also achieved core deposit growth in the quarter, and remain cautiously optimistic that we can grow our core deposit franchise through the year ahead. That said, we remain liability sensitive, and funding cost pressure continued to impact our margins and earnings through the fourth quarter, though that pressure has been moderating.”

Mr. Reeves concluded, "More importantly, we are well ahead of plan in executing our strategic initiatives designed to improve our performance and position the Bank to deliver financial results at the median of our peer group by the end of 2025. Highlights from 2023 include outstanding expense discipline and re-allocation, our geographic repositioning with the Denver Bankshares merger expected to close on January 31st, key new hires in our Iowa Metro and Twin Cities markets, the hiring of a talented executive to lead our wealth management business, and the expansion of our specialty business lines with the recruitment of an agri-business team. We are rapidly scaling in our core markets while adding new business lines, which taken together, provide visibility to improved growth and returns."

1 Fourth Quarter Summary compares to the third quarter of 2023 (the "linked quarter") unless noted. Full Year 2023 Summary compares to the full year 2022 unless noted.

2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

	As of or for the quarter ended									Year Ended
(Dollars in thousands, except per share amounts and as noted)	December 31,			September 30,			December 31,			December 31,			December 31,
	2023			2023			2022			2023			2022
Financial Results
Revenue	$	36,421		$	44,436		$	54,504		$	162,595		$	213,877
Credit loss expense	1,768			1,551			572			5,849			4,492
Noninterest expense	32,131			31,544			34,440			131,913			132,788
Net income	2,730			9,138			16,002			20,859			60,835
Per Common Share
Diluted earnings per share	$	0.17		$	0.58		$	1.02		$	1.33		$	3.87
Book value	33.41			32.21			31.54			33.41			31.54
Tangible book value(1)	27.90			26.60			25.60			27.90			25.60
Balance Sheet & Credit Quality
Loans In millions	$	4,126.9		$	4,066.0		$	3,840.5		$	4,126.9		$	3,840.5
Investment securities In millions	1,870.3			1,958.5			2,283.0			1,870.3			2,283.0
Deposits In millions	5,395.7			5,363.3			5,468.9			5,395.7			5,468.9
Net loan charge-offs In millions	2.1			0.5			3.5			3.7			6.6
Allowance for credit losses ratio	1.25		%	1.27		%	1.28		%	1.25		%	1.28		%
Selected Ratios
Return on average assets	0.17		%	0.56		%	0.97		%	0.32		%	0.97		%
Net interest margin, tax equivalent(1)	2.22		%	2.35		%	2.93		%	2.46		%	2.92		%
Return on average equity	2.12		%	7.14		%	13.26		%	4.12		%	12.16		%
Return on average tangible equity(1)	3.57		%	9.68		%	17.85		%	6.14		%	15.89		%
Efficiency ratio(1)	70.16		%	66.06		%	57.79		%	67.28		%	56.98		%
(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

REVENUE REVIEW

Revenue							Change		Change
							4Q23 vs		4Q23 vs
(Dollars in thousands)	4Q23		3Q23		4Q22		3Q23		4Q22
Net interest income	$	32,559	$	34,575	$	43,564	(6)	%	(25)	%
Noninterest income	3,862		9,861		10,940		(61)	%	(65)	%
Total revenue, net of interest expense	$	36,421	$	44,436	$	54,504	(18)	%	(33)	%

Total revenue for the fourth quarter of 2023 decreased $8.0 million from the third quarter of 2023 and decreased $18.1 million from the fourth quarter of 2022 due to lower net interest income and noninterest income.

Net interest income of $32.6 million for the fourth quarter of 2023 decreased $2.0 million from the third quarter of 2023 primarily due to higher funding costs, partially offset by lower volumes of interest bearing liabilities, higher volumes of interest earning assets, and higher interest earning asset yields. When compared to the fourth quarter of 2022, net interest income decreased $11.0 million primarily due to higher funding costs and volumes and lower interest earning asset volumes, partially offset by higher interest earning asset yields.

The Company's tax equivalent net interest margin was 2.22% in the fourth quarter of 2023, compared to 2.35% in the third quarter of 2023, as higher earning asset yields were more than offset by increased funding costs. The cost of interest bearing liabilities increased 32 bps, to 2.65%, due primarily to interest bearing deposit costs of 2.39% and short-term borrowing costs of 4.91%, which increased 34 bps and 62 bps, respectively from the third quarter of 2023. Total interest earning assets yield increased 12 bps from the third quarter of 2023, as a result of an increase in loan yield of 15 bps. Our cycle-to-date interest bearing deposit beta was 40%.

The tax equivalent net interest margin was 2.22% in the fourth quarter of 2023, compared to 2.93% in the fourth quarter of 2022, driven by higher funding costs and volumes and lower interest earning asset volumes, partially offset by higher interest earning asset yields. The cost of interest bearing liabilities increased 157 bps to 2.65%, due to interest bearing deposit costs of 2.39%, short-term borrowing costs of 4.91%, and long-term debt costs of 6.79%, which increased 156 bps, 237 bps and 125 bps, respectively from the fourth quarter of 2022. Total interest earning assets yield increased 59 bps from the fourth quarter of 2022, primarily as a result of an increase in loan yields of 68 bps.

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Noninterest Income							Change		Change
							4Q23 vs		4Q23 vs
(In thousands)	4Q23		3Q23		4Q22		3Q23		4Q22
Investment services and trust activities	$	3,193	$	3,004	$	2,666	6	%	20	%
Service charges and fees	2,148		2,146		2,028		—	%	6	%
Card revenue	1,802		1,817		1,784		(1)	%	1	%
Loan revenue	909		1,462		966		(38)	%	(6)	%
Bank-owned life insurance	656		626		637		5	%	3	%
Investment securities gains (losses), net	(5,696)		79		(1)		n/m		n/m
Other	850		727		2,860		17	%	(70)	%
Total noninterest income	$	3,862	$	9,861	$	10,940	(61)	%	(65)	%
Results are not meaningful (n/m)

Noninterest income for the fourth quarter of 2023 decreased $6.0 million from the linked quarter, primarily due to investment securities losses, net, of $5.7 million in the fourth quarter of 2023, coupled with a $0.6 million unfavorable change in loan revenue. Investment securities losses stemmed from a balance sheet repositioning in the fourth quarter of 2023, in which $115.2 million of securities, yielding 2.26%, were sold and sale proceeds of $109.5 million were utilized to purchase $63.3 million of securities, yielding 5.62%, with the balance utilized to reduce short-term borrowings. Loan revenue primarily reflected an unfavorable quarter-over quarter change in the fair value of our mortgage servicing rights of $0.4 million and a decline of $0.1 million in revenue from our mortgage origination business.

Noninterest income for the fourth quarter of 2023 decreased $7.1 million from the fourth quarter of 2022 due to investment securities losses, net, of $5.7 million and a $2.0 million decline in other revenue, partially offset by an increase of $0.5 million in investment services and trust activities revenue. Investment securities losses stemmed from the balance sheet repositioning previously described. Other revenue in the fourth quarter of 2022 benefited from a nonrecurring bargain purchase gain of $2.5 million recognized in connection with the acquisition of Iowa First Bancshares Corp., which was partially offset by an increase of $0.5 million in swap origination fee income. The increase in investment services and trust activities revenue was driven by higher assets under management.

EXPENSE REVIEW

Noninterest Expense							Change		Change
							4Q23 vs		2Q23 vs
(In thousands)	4Q23		3Q23		4Q22		3Q23		4Q22
Compensation and employee benefits	$	17,859	$	18,558	$	20,438	(4)	%	(13)	%
Occupancy expense of premises, net	2,309		2,405		2,663		(4)	%	(13)	%
Equipment	2,466		2,123		2,327		16	%	6	%
Legal and professional	2,269		1,678		1,846		35	%	23	%
Data processing	1,411		1,504		1,375		(6)	%	3	%
Marketing	700		782		947		(10)	%	(26)	%
Amortization of intangibles	1,441		1,460		1,770		(1)	%	(19)	%
FDIC insurance	900		783		405		15	%	122	%
Communications	183		206		285		(11)	%	(36)	%
Foreclosed assets, net	45		2		48		2150	%	(6)	%
Other	2,548		2,043		2,336		25	%	9	%
Total noninterest expense	$	32,131	$	31,544	$	34,440	2	%	(7)	%

Merger-related Expenses
(In thousands)	4Q23		3Q23		4Q22
Compensation and employee benefits	$	—	$	—	$	189
Equipment	—		—		4
Legal and professional	180		11		54
Data processing	—		—		131
Marketing	38		—		2
Other	27		—		29
Total merger-related expenses	$	245	$	11	$	409

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Noninterest expense for the fourth quarter of 2023 increased $0.6 million from the linked quarter primarily as a result of increases of $0.6 million and $0.5 million in legal and professional and other, respectively. The largest offset to increases in noninterest expense was a decline of $0.7 million in compensation and employee benefits. The increase in legal and professional expenses stemmed primarily from higher executive recruitment and merger-related expenses. The increase in other noninterest expense was driven by various changes, including increases in loan expenses, travel, meals and entertainment, and operating losses. The largest driver in the decrease in compensation and employee benefits was a reduction in incentive and commission expense.

Noninterest expense for the fourth quarter of 2023 decreased $2.3 million from the fourth quarter of 2022 due primarily to a $2.6 million decline in compensation and employee benefits, which reflected a $1.6 million reduction in incentives and commissions, and a $0.6 million decline in employee benefits. The $0.3 million decrease in occupancy expense reflected a write-down of assets held for sale in the fourth quarter of 2022, which did not recur in the fourth quarter of 2023. Partially offsetting the decreases in noninterest expense was an increase of $0.5 million in FDIC insurance expense and an increase of $0.4 million in legal and professional expense, which stemmed primarily from higher recruitment and merger-related expenses.

The Company recognized a tax benefit in the fourth quarter of 2023 to reduce the full-year 2023 effective income tax rate to 16.0%, as compared to 20.6% in the prior year. The decrease in the 2023 annual effective income tax rate reflected lower taxable income and a larger benefit from tax exempt investment income. The effective income tax rate for 2024 is expected to be 20-22%.

BALANCE SHEET REVIEW

Total assets were $6.43 billion at December 31, 2023, compared to $6.47 billion at September 30, 2023 and $6.58 billion at December 31, 2022. The decrease from September 30, 2023 was primarily driven by lower securities balances as a result of the balance sheet repositioning, partially offset by higher loan balances. Compared to December 31, 2022, the decrease was primarily due to lower securities balances resulting from balance sheet repositioning in the first and fourth quarters of 2023, partially offset by higher loan balances.

Loans Held for Investment	December 31, 2023				September 30, 2023				December 31, 2022
	Balance		% of Total		Balance		% of Total		Balance		% of Total
(Dollars in thousands)
Commercial and industrial	$	1,075,003	26.0	%	$	1,078,773	26.5	%	$	1,055,162	27.5	%
Agricultural	118,414		2.9		111,950		2.8		115,320		3.0
Commercial real estate
Construction and development	323,195		7.8		331,868		8.2		270,991		7.1
Farmland	184,955		4.5		182,621		4.5		183,913		4.8
Multifamily	383,178		9.3		337,509		8.3		252,129		6.6
Other	1,333,982		32.4		1,324,019		32.5		1,272,985		33.1
Total commercial real estate	2,225,310		54.0		2,176,017		53.5		1,980,018		51.6
Residential real estate
One-to-four family first liens	459,798		11.1		456,771		11.2		451,210		11.7
One-to-four family junior liens	180,639		4.4		173,275		4.3		163,218		4.2
Total residential real estate	640,437		15.5		630,046		15.5		614,428		15.9
Consumer	67,783		1.6		69,183		1.7		75,596		2.0
Loans held for investment, net of unearned income	$	4,126,947	100.0	%	$	4,065,969	100.0	%	$	3,840,524	100.0	%
Total commitments to extend credit	$	1,210,796			$	1,251,345			$	1,190,607

Loans held for investment, net of unearned income, increased $61.0 million, or 1.5%, to $4.13 billion from $4.07 billion at September 30, 2023 and $286.4 million, or 7.5%, from December 31, 2022. This increase from the third quarter of 2023 was driven by new loan production in the fourth quarter of 2023 and higher line of credit usage. The increase from the fourth quarter of 2022 was due to new loan production.

Investment Securities	December 31, 2023				September 30, 2023				December 31, 2022
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Available for sale	$	795,134	42.5	%	$	872,770	44.6	%	$	1,153,547	50.5	%
Held to maturity	1,075,190		57.5	%	1,085,751		55.4	%	1,129,421		49.5	%
Total investment securities	$	1,870,324			$	1,958,521			$	2,282,968

Investment securities at December 31, 2023 were $1.87 billion, decreasing $88.2 million from September 30, 2023 and $412.6 million from December 31, 2022. The decrease from the third quarter of 2023 was primarily due to the balance sheet repositioning previously discussed, as well as principal cash flows received from scheduled

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payments, calls, and maturities. The decrease from the fourth quarter of 2022 was primarily due to balance sheet repositioning in the first and fourth quarters of 2023.

Deposits	December 31, 2023				September 30, 2023				December 31, 2022
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Noninterest bearing deposits	$	897,053	16.6	%	$	924,213	17.2	%	$	1,053,450	19.3	%
Interest checking deposits	1,320,435		24.5		1,334,481		24.9		1,624,278		29.8
Money market deposits	1,105,493		20.5		1,127,287		21.0		937,340		17.1
Savings deposits	650,655		12.1		619,805		11.6		664,169		12.1
Time deposits of $250 and under	752,214		13.9		703,646		13.1		559,466		10.2
Total core deposits	4,725,850		87.6		4,709,432		87.8		4,838,703		88.5
Brokered time deposits	221,039		4.1		220,063		4.1		126,767		2.3
Time deposits over $250	448,784		8.3		433,829		8.1		503,472		9.2
Total deposits	$	5,395,673	100.0	%	$	5,363,324	100.0	%	$	5,468,942	100.0	%

Total deposits increased $32.3 million, or 0.6%, to $5.40 billion from $5.36 billion at September 30, 2023. Core deposits increased $16.4 million from September 30, 2023. Total deposits decreased $73.3 million, or 1.3%, from $5.47 billion at December 31, 2022. Brokered deposits increased $94.3 million from $126.8 million at December 31, 2022, with core deposits declining $112.9 million from December 31, 2022.

Borrowed Funds	December 31, 2023				September 30, 2023				December 31, 2022
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Short-term borrowings	$	300,264	70.9	%	$	373,956	75.0	%	$	391,873	73.8	%
Long-term debt	123,296		29.1	%	124,526		25.0	%	139,210		26.2	%
Total borrowed funds	$	423,560			$	498,482			$	531,083

Total borrowed funds were $423.6 million at December 31, 2023, a decrease of $74.9 million from September 30, 2023 and a decrease of $107.5 million from December 31, 2022. The decrease when compared to the linked quarter was due to lower Federal Home Loan Bank overnight borrowings and securities sold under agreements to repurchase, partially offset by higher Bank Term Funding Program borrowings. The decrease when compared to December 31, 2022 was primarily due to lower Federal Home Loan Bank overnight borrowings and securities sold under agreements to repurchase, partially offset by Bank Term Funding Program borrowings of $285 million, as compared to no such borrowings in the prior year.

Capital	December 31,			September 30,			December 31,
(Dollars in thousands)	2023 (1)			2023			2022
Total shareholders' equity	$	524,378		$	505,411		$	492,793
Accumulated other comprehensive loss	(64,899)			(84,606)			(89,047)
MidWestOne Financial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio	8.58		%	8.58		%	8.35		%
Common equity tier 1 capital to risk-weighted assets ratio	9.59		%	9.52		%	9.28		%
Tier 1 capital to risk-weighted assets ratio	10.38		%	10.31		%	10.05		%
Total capital to risk-weighted assets ratio	12.53		%	12.45		%	12.07		%
MidWestOne Bank
Tier 1 leverage to average assets ratio	9.39		%	9.51		%	9.36		%
Common equity tier 1 capital to risk-weighted assets ratio	11.54		%	11.43		%	11.29		%
Tier 1 capital to risk-weighted assets ratio	11.54		%	11.43		%	11.29		%
Total capital to risk-weighted assets ratio	12.49		%	12.36		%	12.10		%
(1) Regulatory capital ratios for December 31, 2023 are preliminary

Total shareholders' equity at December 31, 2023 increased $19.0 million from September 30, 2023, driven by a decrease in accumulated other comprehensive loss. Total shareholders' equity at December 31, 2023 increased $31.6 million from December 31, 2022, driven by a decrease in accumulated other comprehensive loss and an increase in retained earnings.

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Accumulated other comprehensive loss at December 31, 2023 decreased $19.7 million compared to September 30, 2023, primarily due to an increase in available for sale securities valuations and the recognition of the loss from the fourth quarter sale of securities. Accumulated other comprehensive loss decreased $24.1 million from December 31, 2022.

On January 23, 2024, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable March 15, 2024, to shareholders of record at the close of business on March 1, 2024.

No common shares were repurchased by the Company during the period September 30, 2023 through December 31, 2023 or for the subsequent period through January 25, 2024. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company's common shares.

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CREDIT QUALITY REVIEW

Credit Quality	As of or For the Three Months Ended
	December 31,			September 30,			December 31,
(Dollars in thousands)	2023			2023			2022
Credit loss expense related to loans	$	1,968		$	1,651		$	572
Net charge-offs	2,068			451			3,472
Allowance for credit losses	51,500			51,600			49,200
Pass	$	3,846,012		$	3,785,908		$	3,635,766
Special Mention / Watch	113,029			163,222			108,064
Classified	167,906			116,839			96,694
Loans greater than 30 days past due and accruing	$	10,778		$	6,449		$	6,680
Nonperforming loans	$	26,359		$	28,987		$	15,821
Nonperforming assets	30,288			28,987			15,924
Net charge-off ratio(1)	0.20		%	0.04		%	0.36		%
Classified loans ratio(2)	4.07		%	2.87		%	2.52		%
Nonperforming loans ratio(3)	0.64		%	0.71		%	0.41		%
Nonperforming assets ratio(4)	0.47		%	0.45		%	0.24		%
Allowance for credit losses ratio(5)	1.25		%	1.27		%	1.28		%
Allowance for credit losses to nonaccrual loans ratio(6)	198.91		%	178.63		%	322.50		%
(1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
(3) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(4) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
(5) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
(6)Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.

Compared to the linked quarter, the nonperforming loans ratio declined 7 bps and the nonperforming assets ratio increased 2 bps. The classified loans ratio increased 120 bps from the linked quarter, primarily due to the downgrade of three larger commercial relationships. When compared to the prior year, the nonperforming loans and assets ratios both increased 23 bps, to 0.64% and 0.47%.

As of December 31, 2023, the allowance for credit losses was $51.5 million and the allowance for credit losses ratio was 1.25%, compared with $51.6 million and 1.27% at September 30, 2023. When compared to the linked quarter, credit loss expense of $1.8 million in the fourth quarter of 2023 was primarily attributable to loan growth, with the increase compared to the prior year stemming from loan growth and individually evaluated loans.

Nonperforming Loans Roll Forward	Nonaccrual		90+ Days Past Due & Still Accruing		Total
(Dollars in thousands)
Balance at September 30, 2023	$	28,887	$	100	$	28,987
Loans placed on nonaccrual or 90+ days past due & still accruing	4,377		432		4,809
Proceeds related to repayment or sale	(1,285)		(1)		(1,286)
Loans returned to accrual status or no longer past due	(289)		1		(288)
Charge-offs	(1,955)		(64)		(2,019)
Transfers to foreclosed assets	(3,844)		—		(3,844)
Balance at December 31, 2023	$	25,891	$	468	$	26,359

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, January 26, 2024. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=0492f968&confId=59127. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 827546 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until April 25, 2024 by calling 1-866-813-9403 and using the replay access code of 572754. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

7

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, Florida, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

8

Cautionary Note Regarding Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including with Iowa First Bancshares Corp. and Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of recent and potential additional increases in inflation and interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including the new 1.0% excise tax on stock buybacks by publicly traded companies and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at other banks that resulted in failure of those institutions; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

9

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

FIVE QUARTER CONSOLIDATED BALANCE SHEETS

	December 31,		September 30,		June 30,		March 31,		December 31,
(In thousands)	2023		2023		2023		2023		2022
ASSETS
Cash and due from banks	$	76,237	$	71,015	$	75,955	$	63,945	$	83,990
Interest earning deposits in banks	5,479		3,773		68,603		5,273		2,445
Federal funds sold	11		—		—		—		—
Total cash and cash equivalents	81,727		74,788		144,558		69,218		86,435
Debt securities available for sale at fair value	795,134		872,770		903,520		954,074		1,153,547
Held to maturity securities at amortized cost	1,075,190		1,085,751		1,099,569		1,117,709		1,129,421
Total securities	1,870,324		1,958,521		2,003,089		2,071,783		2,282,968
Loans held for sale	1,045		2,528		2,821		2,553		612
Gross loans held for investment	4,138,352		4,078,060		4,031,377		3,932,900		3,854,791
Unearned income, net	(11,405)		(12,091)		(12,728)		(13,535)		(14,267)
Loans held for investment, net of unearned income	4,126,947		4,065,969		4,018,649		3,919,365		3,840,524
Allowance for credit losses	(51,500)		(51,600)		(50,400)		(49,800)		(49,200)
Total loans held for investment, net	4,075,447		4,014,369		3,968,249		3,869,565		3,791,324
Premises and equipment, net	85,742		85,589		85,831		86,208		87,125
Goodwill	62,477		62,477		62,477		62,477		62,477
Other intangible assets, net	24,069		25,510		26,969		28,563		30,315
Foreclosed assets, net	3,929		—		—		—		103
Other assets	222,780		244,036		227,495		219,585		236,517
Total assets	$	6,427,540	$	6,467,818	$	6,521,489	$	6,409,952	$	6,577,876
LIABILITIES
Noninterest bearing deposits	$	897,053	$	924,213	$	897,923	$	989,469	$	1,053,450
Interest bearing deposits	4,498,620		4,439,111		4,547,524		4,565,684		4,415,492
Total deposits	5,395,673		5,363,324		5,445,447		5,555,153		5,468,942
Short-term borrowings	300,264		373,956		362,054		143,981		391,873
Long-term debt	123,296		124,526		125,752		137,981		139,210
Other liabilities	83,929		100,601		86,895		72,187		85,058
Total liabilities	5,903,162		5,962,407		6,020,148		5,909,302		6,085,083
SHAREHOLDERS' EQUITY
Common stock	16,581		16,581		16,581		16,581		16,581
Additional paid-in capital	302,157		301,889		301,424		300,966		302,085
Retained earnings	294,784		295,862		290,548		286,767		289,289
Treasury stock	(24,245)		(24,315)		(24,508)		(24,779)		(26,115)
Accumulated other comprehensive loss	(64,899)		(84,606)		(82,704)		(78,885)		(89,047)
Total shareholders' equity	524,378		505,411		501,341		500,650		492,793
Total liabilities and shareholders' equity	$	6,427,540	$	6,467,818	$	6,521,489	$	6,409,952	$	6,577,876

10

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

FIVE QUARTER AND YEAR TO DATE CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended										Year Ended
	December 31,		September 30,		June 30,		March 31,		December 31,		December 31,		December 31,
(In thousands, except per share data)	2023		2023		2023		2023		2022		2023		2022
Interest income
Loans, including fees	$	54,093	$	51,870	$	49,726	$	46,490	$	43,769	$	202,179	$	148,284
Taxable investment securities	9,274		9,526		9,734		10,444		10,685		38,978		39,019
Tax-exempt investment securities	1,789		1,802		1,822		2,127		2,303		7,540		9,379
Other	230		374		68		244		—		916		77
Total interest income	65,386		63,572		61,350		59,305		56,757		249,613		196,759
Interest expense
Deposits	27,200		23,128		20,117		15,319		9,127		85,764		20,245
Short-term borrowings	3,496		3,719		2,118		1,786		1,955		11,119		3,070
Long-term debt	2,131		2,150		2,153		2,124		2,111		8,558		7,086
Total interest expense	32,827		28,997		24,388		19,229		13,193		105,441		30,401
Net interest income	32,559		34,575		36,962		40,076		43,564		144,172		166,358
Credit loss expense	1,768		1,551		1,597		933		572		5,849		4,492
Net interest income after credit loss expense	30,791		33,024		35,365		39,143		42,992		138,323		161,866
Noninterest income (loss)
Investment services and trust activities	3,193		3,004		3,119		2,933		2,666		12,249		11,223
Service charges and fees	2,148		2,146		2,047		2,008		2,028		8,349		7,477
Card revenue	1,802		1,817		1,847		1,748		1,784		7,214		7,210
Loan revenue	909		1,462		909		1,420		966		4,700		10,504
Bank-owned life insurance	656		626		616		602		637		2,500		2,305
Investment securities (losses) gains, net	(5,696)		79		(2)		(13,170)		(1)		(18,789)		271
Other	850		727		210		413		2,860		2,200		8,529
Total noninterest income (loss)	3,862		9,861		8,746		(4,046)		10,940		18,423		47,519
Noninterest expense
Compensation and employee benefits	17,859		18,558		20,386		19,607		20,438		76,410		78,103
Occupancy expense of premises, net	2,309		2,405		2,574		2,746		2,663		10,034		10,272
Equipment	2,466		2,123		2,435		2,171		2,327		9,195		8,693
Legal and professional	2,269		1,678		1,682		1,736		1,846		7,365		8,646
Data processing	1,411		1,504		1,521		1,363		1,375		5,799		5,574
Marketing	700		782		1,142		986		947		3,610		4,272
Amortization of intangibles	1,441		1,460		1,594		1,752		1,770		6,247		6,069
FDIC insurance	900		783		862		749		405		3,294		1,660
Communications	183		206		260		261		285		910		1,125
Foreclosed assets, net	45		2		(6)		(28)		48		13		(18)
Other	2,548		2,043		2,469		1,976		2,336		9,036		8,392
Total noninterest expense	32,131		31,544		34,919		33,319		34,440		131,913		132,788
Income before income tax expense	2,522		11,341		9,192		1,778		19,492		24,833		76,597
Income tax (benefit) expense	(208)		2,203		1,598		381		3,490		3,974		15,762
Net income	$	2,730	$	9,138	$	7,594	$	1,397	$	16,002	$	20,859	$	60,835
Earnings per common share
Basic	$	0.17	$	0.58	$	0.48	$	0.09	$	1.02	$	1.33	$	3.89
Diluted	$	0.17	$	0.58	$	0.48	$	0.09	$	1.02	$	1.33	$	3.87
Weighted average basic common shares outstanding	15,693		15,689		15,680		15,650		15,624		15,678		15,649
Weighted average diluted common shares outstanding	15,756		15,711		15,689		15,691		15,693		15,725		15,701
Dividends paid per common share	$	0.2425	$	0.2425	$	0.2425	$	0.2425	$	0.2375	$	0.9700	$	0.9500

11

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

FINANCIAL STATISTICS

	As of or for the Three Months Ended									As of or for the Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands, except per share amounts)	2023			2023			2022			2023			2022
Earnings:
Net interest income	$	32,559		$	34,575		$	43,564		$	144,172		$	166,358
Noninterest income	3,862			9,861			10,940			18,423			47,519
Total revenue, net of interest expense	36,421			44,436			54,504			162,595			213,877
Credit loss expense	1,768			1,551			572			5,849			4,492
Noninterest expense	32,131			31,544			34,440			131,913			132,788
Income before income tax expense	2,522			11,341			19,492			24,833			76,597
Income tax (benefit) expense	(208)			2,203			3,490			3,974			15,762
Net income	$	2,730		$	9,138		$	16,002		$	20,859		$	60,835
Per Share Data:
Diluted earnings	$	0.17		$	0.58		$	1.02		$	1.33		$	3.87
Book value	33.41			32.21			31.54			33.41			31.54
Tangible book value(1)	27.90			26.60			25.60			27.90			25.60
Ending Balance Sheet:
Total assets	$	6,427,540		$	6,467,818		$	6,577,876		$	6,427,540		$	6,577,876
Loans held for investment, net of unearned income	4,126,947			4,065,969			3,840,524			4,126,947			3,840,524
Total securities	1,870,324			1,958,521			2,282,968			1,870,324			2,282,968
Total deposits	5,395,673			5,363,324			5,468,942			5,395,673			5,468,942
Short-term borrowings	300,264			373,956			391,873			300,264			391,873
Long-term debt	123,296			124,526			139,210			123,296			139,210
Total shareholders' equity	524,378			505,411			492,793			524,378			492,793
Average Balance Sheet:
Average total assets	$	6,459,705		$	6,452,815		$	6,516,969		$	6,475,360		$	6,244,284
Average total loans	4,080,243			4,019,852			3,791,880			3,993,389			3,511,192
Average total deposits	5,443,323			5,379,871			5,495,599			5,455,609			5,309,049
Financial Ratios:
Return on average assets	0.17		%	0.56		%	0.97		%	0.32		%	0.97		%
Return on average equity	2.12		%	7.14		%	13.26		%	4.12		%	12.16		%
Return on average tangible equity(1)	3.57		%	9.68		%	17.85		%	6.14		%	15.89		%
Efficiency ratio(1)	70.16		%	66.06		%	57.79		%	67.28		%	56.98		%
Net interest margin, tax equivalent(1)	2.22		%	2.35		%	2.93		%	2.46		%	2.92		%
Loans to deposits ratio	76.49		%	75.81		%	70.22		%	76.49		%	70.22		%
Common equity ratio	8.16		%	7.81		%	7.49		%	8.16		%	7.49		%
Tangible common equity ratio(1)	6.90		%	6.54		%	6.17		%	6.90		%	6.17		%
Credit Risk Profile:
Total nonperforming loans	$	26,359		$	28,987		$	15,821		$	26,359		$	15,821
Nonperforming loans ratio	0.64		%	0.71		%	0.41		%	0.64		%	0.41		%
Total nonperforming assets	$	30,288		$	28,987		$	15,924		$	30,288		$	15,924
Nonperforming assets ratio	0.47		%	0.45		%	0.24		%	0.47		%	0.24		%
Net charge-offs	$	2,068		$	451		$	3,472		$	3,749		$	6,563
Net charge-off ratio	0.20		%	0.04		%	0.36		%	0.09		%	0.19		%
Allowance for credit losses	$	51,500		$	51,600		$	49,200		$	51,500		$	49,200
Allowance for credit losses ratio	1.25		%	1.27		%	1.28		%	1.25		%	1.28		%
Allowance for credit losses to nonaccrual ratio	198.91		%	178.63		%	322.50		%	198.91		%	322.50		%
(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

12

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	December 31, 2023						September 30, 2023						December 31, 2022
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	4,080,243	$	54,939	5.34	%	$	4,019,852	$	52,605	5.19	%	$	3,791,880	$	44,494	4.66	%
Taxable investment securities	1,593,699		9,274		2.31	%	1,637,259		9,526		2.31	%	1,865,494		10,685		2.27	%
Tax-exempt investment securities (2)(4)	338,243		2,217		2.60	%	341,330		2,234		2.60	%	422,156		2,893		2.72	%
Total securities held for investment(2)	1,931,942		11,491		2.36	%	1,978,589		11,760		2.36	%	2,287,650		13,578		2.35	%
Other	22,937		230		3.98	%	34,195		374		4.34	%	5,562		—		—	%
Total interest earning assets(2)	$	6,035,122	$	66,660	4.38	%	$	6,032,636	$	64,739	4.26	%	$	6,085,092	$	58,072	3.79	%
Other assets	424,583						420,179						431,877
Total assets	$	6,459,705					$	6,452,815					$	6,516,969
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,305,759	$	2,991	0.91	%	$	1,354,597	$	2,179	0.64	%	$	1,632,749	$	1,703	0.41	%
Money market deposits	1,103,637		7,954		2.86	%	1,112,149		7,402		2.64	%	995,512		2,369		0.94	%
Savings deposits	639,766		1,493		0.93	%	603,628		749		0.49	%	683,538		306		0.18	%
Time deposits	1,463,498		14,762		4.00	%	1,403,504		12,798		3.62	%	1,067,044		4,749		1.77	%
Total interest bearing deposits	4,512,660		27,200		2.39	%	4,473,878		23,128		2.05	%	4,378,843		9,127		0.83	%
Securities sold under agreements to repurchase	8,661		17		0.78	%	66,020		85		0.51	%	151,880		437		1.14	%
Other short-term borrowings	273,963		3,479		5.04	%	277,713		3,634		5.19	%	153,155		1,518		3.93	%
Short-term borrowings	282,624		3,496		4.91	%	343,733		3,719		4.29	%	305,035		1,955		2.54	%
Long-term debt	124,495		2,131		6.79	%	125,737		2,150		6.78	%	151,266		2,111		5.54	%
Total borrowed funds	407,119		5,627		5.48	%	469,470		5,869		4.96	%	456,301		4,066		3.54	%
Total interest bearing liabilities	$	4,919,779	$	32,827	2.65	%	$	4,943,348	$	28,997	2.33	%	$	4,835,144	$	13,193	1.08	%
Noninterest bearing deposits	930,663						905,993						1,116,756
Other liabilities	98,027						95,408						86,242
Shareholders’ equity	511,236						508,066						478,827
Total liabilities and shareholders’ equity	$	6,459,705					$	6,452,815					$	6,516,969
Net interest income(2)			$	33,833					$	35,742					$	44,879
Net interest spread(2)					1.73	%					1.93	%					2.71	%
Net interest margin(2)					2.22	%					2.35	%					2.93	%
Total deposits(5)	$	5,443,323	$	27,200	1.98	%	$	5,379,871	$	23,128	1.71	%	$	5,495,599	$	9,127	0.66	%
Cost of funds(6)					2.23	%					1.97	%					0.88	%

(1) Average balance includes nonaccrual loans.

(2) Tax equivalent. The federal statutory tax rate utilized was 21%.

(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $207 thousand, $141 thousand, and $87 thousand for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively. Loan purchase discount accretion was $765 thousand, $791 thousand, and $1.3 million for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively. Tax equivalent adjustments were $846 thousand, $735 thousand, and $725 thousand for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively. The federal statutory tax rate utilized was 21%.

(4) Interest income includes tax equivalent adjustments of $428 thousand, $432 thousand, and $590 thousand for the three months ended December 31, 2023, September 30, 2023, and December 31, 2022, respectively. The federal statutory tax rate utilized was 21%.

(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.

(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

13

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES

AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Year Ended
	December 31, 2023						December 31, 2022
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	3,993,389	$	205,189	5.14	%	$	3,511,192	$	150,791	4.29	%
Taxable investment securities	1,684,360		38,978		2.31	%	1,891,234		39,019		2.06	%
Tax-exempt investment securities (2)(4)	355,454		9,353		2.63	%	435,907		11,788		2.70	%
Total securities held for investment(2)	2,039,814		48,331		2.37	%	2,327,141		50,807		2.18	%
Other	22,791		916		4.02	%	20,827		77		0.37	%
Total interest earning assets(2)	$	6,055,994	$	254,436	4.20	%	$	5,859,160	$	201,675	3.44	%
Other assets	419,366						385,124
Total assets	$	6,475,360					$	6,244,284
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,398,538	$	8,990	0.64	%	$	1,640,303	$	5,416	0.33	%
Money market deposits	1,037,123		23,924		2.31	%	992,390		4,707		0.47	%
Savings deposits	624,990		2,802		0.45	%	674,846		1,169		0.17	%
Time deposits	1,443,770		50,048		3.47	%	925,592		8,953		0.97	%
Total interest bearing deposits	4,504,421		85,764		1.90	%	4,233,131		20,245		0.48	%
Securities sold under agreements to repurchase	94,563		975		1.03	%	152,466		872		0.57	%
Other short-term borrowings	199,530		10,144		5.08	%	70,729		2,198		3.11	%
Short-term borrowings	294,093		11,119		3.78	%	223,195		3,070		1.38	%
Long-term debt	131,137		8,558		6.53	%	148,863		7,086		4.76	%
Total borrowed funds	425,230		19,677		4.63	%	372,058		10,156		2.73	%
Total interest bearing liabilities	$	4,929,651	$	105,441	2.14	%	$	4,605,189	$	30,401	0.66	%
Noninterest bearing deposits	951,188						1,075,918
Other liabilities	88,770						62,706
Shareholders’ equity	505,751						500,471
Total liabilities and shareholders’ equity	$	6,475,360					$	6,244,284
Net interest income(2)			$	148,995					$	171,274
Net interest spread(2)					2.06	%					2.78	%
Net interest margin(2)					2.46	%					2.92	%
Total deposits(5)	$	5,455,609	$	85,764	1.57	%	$	5,309,049	$	20,245	0.38	%
Cost of funds(6)					1.79	%					0.54	%

(1) Average balance includes nonaccrual loans.

(2) Tax equivalent. The federal statutory tax rate utilized was 21%.

(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $522 thousand and $765 thousand for the year ended December 31, 2023 and December 31, 2022, respectively. Loan purchase discount accretion was $3.7 million and $4.6 million for the year ended December 31, 2023 and December 31, 2022, respectively. Tax equivalent adjustments were $3.0 million and $2.5 million for the year ended December 31, 2023 and December 31, 2022, respectively. The federal statutory tax rate utilized was 21%.

(4)Interest income includes tax equivalent adjustments of $1.8 million and $2.4 million for the year ended December 31, 2023 and December 31, 2022, respectively. The federal statutory tax rate utilized was 21%.

(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.

(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

14

Non-GAAP Measures

This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, and efficiency ratio. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity Ratio	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in thousands, except per share data)	2023			2023			2023			2023			2022
Total shareholders’ equity	$	524,378		$	505,411		$	501,341		$	500,650		$	492,793
Intangible assets, net	(86,546)			(87,987)			(89,446)			(91,040)			(92,792)
Tangible common equity	$	437,832		$	417,424		$	411,895		$	409,610		$	400,001
Total assets	$	6,427,540		$	6,467,818		$	6,521,489		$	6,409,952		$	6,577,876
Intangible assets, net	(86,546)			(87,987)			(89,446)			(91,040)			(92,792)
Tangible assets	$	6,340,994		$	6,379,831		$	6,432,043		$	6,318,912		$	6,485,084
Book value per share	$	33.41		$	32.21		$	31.96		$	31.94		$	31.54
Tangible book value per share(1)	$	27.90		$	26.60		$	26.26		$	26.13		$	25.60
Shares outstanding	15,694,306			15,691,738			15,685,123			15,675,325			15,623,977
Common equity ratio	8.16		%	7.81		%	7.69		%	7.81		%	7.49		%
Tangible common equity ratio(2)	6.90		%	6.54		%	6.40		%	6.48		%	6.17		%

(1) Tangible common equity divided by shares outstanding.

(2)Tangible common equity divided by tangible assets.

	Three Months Ended									Year Ended
Return on Average Tangible Equity	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands)	2023			2023			2022			2023			2022
Net income	$	2,730		$	9,138		$	16,002		$	20,859		$	60,835
Intangible amortization, net of tax(1)	1,081			1,095			1,328			4,685			4,552
Tangible net income	$	3,811		$	10,233		$	17,330		$	25,544		$	65,387
Average shareholders’ equity	$	511,236		$	508,066		$	478,827		$	505,751		$	500,471
Average intangible assets, net	(87,258)			(88,699)			(93,662)			(89,539)			(88,917)
Average tangible equity	$	423,978		$	419,367		$	385,165		$	416,212		$	411,554
Return on average equity	2.12		%	7.14		%	13.26		%	4.12		%	12.16		%
Return on average tangible equity(2)	3.57		%	9.68		%	17.85		%	6.14		%	15.89		%

(1) The combined income tax rate utilized was 25%.

(2) Annualized tangible net income divided by average tangible equity.

15

Net Interest Margin, Tax Equivalent/ Core Net Interest Margin	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands)	2023			2023			2022			2023			2022
Net interest income	$	32,559		$	34,575		$	43,564		$	144,172		$	166,358
Tax equivalent adjustments:
Loans(1)	846			735			725			3,010			2,507
Securities(1)	428			432			590			1,813			2,409
Net interest income, tax equivalent	$	33,833		$	35,742		$	44,879		$	148,995		$	171,274
Loan purchase discount accretion	(765)			(791)			(1,286)			(3,729)			(4,561)
Core net interest income	$	33,068		$	34,951		$	43,593		$	145,266		$	166,713
Net interest margin	2.14		%	2.27		%	2.84		%	2.38		%	2.84		%
Net interest margin, tax equivalent(2)	2.22		%	2.35		%	2.93		%	2.46		%	2.92		%
Core net interest margin(3)	2.17		%	2.30		%	2.84		%	2.40		%	2.85		%
Average interest earning assets	$	6,035,122		$	6,032,636		$	6,085,092		$	6,055,994		$	5,859,160

(1) The federal statutory tax rate utilized was 21%.

(2)Annualized tax equivalent net interest income divided by average interest earning assets.

(3) Annualized core net interest income divided by average interest earning assets.

	Three Months Ended									Year Ended
Loan Yield, Tax Equivalent / Core Yield on Loans	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands)	2023			2023			2022			2023			2022
Loan interest income, including fees	$	54,093		$	51,870		$	43,769		$	202,179		$	148,284
Tax equivalent adjustment(1)	846			735			725			3,010			2,507
Tax equivalent loan interest income	$	54,939		$	52,605		$	44,494		$	205,189		$	150,791
Loan purchase discount accretion	(765)			(791)			(1,286)			(3,729)			(4,561)
Core loan interest income	$	54,174		$	51,814		$	43,208		$	201,460		$	146,230
Yield on loans	5.26		%	5.12		%	4.58		%	5.06		%	4.22		%
Yield on loans, tax equivalent(2)	5.34		%	5.19		%	4.66		%	5.14		%	4.29		%
Core yield on loans(3)	5.27		%	5.11		%	4.52		%	5.04		%	4.16		%
Average loans	$	4,080,243		$	4,019,852		$	3,791,880		$	3,993,389		$	3,511,192

(1) The federal statutory tax rate utilized was 21%.

(2)Annualized tax equivalent loan interest income divided by average loans.

(3) Annualized core loan interest income divided by average loans.

	Three Months Ended									Year Ended
Efficiency Ratio	December 31,			September 30,			December 31,			December 31,			December 31,
(Dollars in thousands)	2023			2023			2022			2023			2022
Total noninterest expense	$	32,131		$	31,544		$	34,440		$	131,913		$	132,788
Amortization of intangibles	(1,441)			(1,460)			(1,770)			(6,247)			(6,069)
Merger-related expenses	(245)			(11)			(409)			(392)			(2,201)
Noninterest expense used for efficiency ratio	$	30,445		$	30,073		$	32,261		$	125,274		$	124,518
Net interest income, tax equivalent(1)	$	33,833		$	35,742		$	44,879		$	148,995		$	171,274
Plus: Noninterest income	3,862			9,861			10,940			18,423			47,519
Less: Investment securities (losses) gains, net	(5,696)			79			(1)			(18,789)			271
Net revenues used for efficiency ratio	$	43,391		$	45,524		$	55,820		$	186,207		$	218,522
Efficiency ratio (2)	70.16		%	66.06		%	57.79		%	67.28		%	56.98		%

(1) The federal statutory tax rate utilized was 21%.

(2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.

16

Contact:
	Charles N. Reeves	Barry S. Ray
	Chief Executive Officer	Chief Financial Officer
	319.356.5800	319.356.5800

17

EX-99.2

Fourth Quarter 2023 Earnings Conference Call January 26, 2024

2 Forward Looking Statements & Non-GAAP Measures This presentation contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the risks of mergers or branch sales (including with Iowa First Bancshares Corp. and Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (2) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (3) the effects of recent and potential additional increases in inflation and interest rates, including on our net income and the value of our securities portfolio; (4) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (5) fluctuations in the value of our investment securities; (6) governmental monetary and fiscal policies; (7) changes in and uncertainty related to benchmark interest rates used to price loans and deposits; (8) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, including the new 1.0% excise tax on stock buybacks by publicly traded companies and any changes in response to the recent failures of other banks; (9) the ability to attract and retain key executives and employees experienced in banking and financial services; (10) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (11) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (12) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (13) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (14) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (15) volatility of rate-sensitive deposits; (16) operational risks, including data processing system failures or fraud; (17) asset/liability matching risks and liquidity risks; (18) the costs, effects and outcomes of existing or future litigation; (19) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (20) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (21) war or terrorist activities, including the Israeli-Palestinian conflict and the Russian Invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (22) the occurrence of fraudulent activity, breaches, or failures of our or our third-party vendors' information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; (23) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; (24) potential changes in federal policy and at regulatory agencies as a result of the upcoming 2024 presidential election; (25) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits; (26) the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time at other banks that resulted in failure of those institutions; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company. Non-GAAP Measures This presentation contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, loan yield, tax equivalent, efficiency ratio, pre-tax, pre-provision earnings, return on average tangible equity, and net interest margin, tax equivalent. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. A reconciliation of each non-GAAP measure to the most comparable GAAP measure is included, as necessary, in the Non-GAAP Financial Measures section.

3 Financial Highlights Total assets $ 6,427.5 (0.62) % (2.29) % Total loans held for investment, net 4,126.9 1.50 7.46 Total deposits 5,395.7 0.60 (1.34) Balance Sheet Equity to assets ratio 8.16 % 35 bps 67 bps Tangible common equity ratio (non-GAAP) 6.90 36 73 CET1 risk-based capital ratio 9.59 7 31 Total risk-based capital ratio 12.53 8 46 Loans to deposits ratio 76.49 % 68 627 Capital and Liquidity Net interest margin, tax equivalent (non-GAAP) 2.22 % (13) bps (71) bps Cost of total deposits 1.98 27 132 Return on average assets 0.17 (39) (80) Return on average tangible equity (non-GAAP) 3.57 (611) (1,428) Efficiency ratio (non-GAAP) 70.16 410 1,237 Profitability Nonperforming loans ratio 0.64 % (7) bps 23 bps Nonperforming assets ratio 0.47 2 23 Net charge-off ratio 0.20 16 (16) Allowance for credit losses ratio 1.25 (2) (3) Credit Risk Profile 4Q23 Financial Highlights – See the section "Non-GAAP Financial measures." – Note: Financial metrics as of or for the quarter ended December 31, 2023. Change vs. Dollars in millions 4Q23 3Q23 4Q22

4 MOFG's Five Strategic Pillars to Deliver Improved Results Exceptional Customer and Employee Engagement 1 Enhance MOFG's award winning culture with a continued focus on performance and financial results 2 Protect and enhance MOFG's dominant community bank franchise through product expansion 3 Continue to hire exceptional relationship bankers and wealth management professionals 4 Develop specialty commercial banking verticals by continuing to attract experienced professionals 5 Continue to identify and execute on opportunities for efficiency gains and cost reduction Strong Core Local Banking Model Sophisticated Commercial Banking and Wealth Management Specialty Business Lines Improving our Efficiency and Operations

5 Strategic Plan Update Received regulatory approvals for the acquisition of Denver Bankshares, Inc., with an expected close of January 31, 2024. The sale of MOFG's Florida operations is on-track for an expected close in 2Q 2024. Recruited EVP, Head of Wealth Management from a Super Regional Institution Added bankers in our Iowa Metro and Denver Markets Announced the sale of MOFG's Florida operations, with the proceeds to be reinvested in the acquisition of Denver Bankshares, Inc. Overall transaction projected to deliver double digit earnings accretion. Exceeded stated 2.5% operating expense run rate reduction goal 7%+ loan growth driven by an expansion of our banking team across our major markets and increased specialization in products and services, including recruited agribusiness, SBA, and TM specialists, as well as a new head of TM 4Q 2023 Full Year 2023 Technology investments: • Launched retail digital account opening platform • Implementation of new commercial loan origination platform in- flight • Launched new sophisticated fraud/AML/BSA platform Balance sheet repositioned from sale of $346 million of securities, proceeds utilized to purchase higher yielding securities and reduce borrowings Continued momentum in Wealth Management, with linked quarter revenue growth of 6% Wealth Management revenue and assets under administration growth of 9% and 10%, respectively, largely driven by teams recruited over the last two years

6 Deposits $ B ill io ns $5.36 $5.46 $5.48 $5.40 $5.14 $5.16 $5.17 $5.17 0.93% 0.23% 0.33% 0.05% Deposits, Ex Brokered Brokered Deposits MoM Change in Deposits, Ex Brokered 09/30/23 10/31/23 11/30/23 12/31/23

7 Commercial Loan Portfolio Commercial and Industrial, 31% Agricultural, 4% Farmland, 5% Construction & Development, 10% Multifamily, 11% CRE-Other, 39% Commercial Loan Portfolio Mix - December 31, 2023 Commercial Loan Portfolio of $3.4 billion Commercial Loan Growth in Targeted Regions $ in Millions $870.2 $1,023.2 $866.6 $1,072.3 Iowa Metro Twin Cities 12/31/21 12/31/22 12/31/23 $222.0 $427.7 Denver 12/31/21 12/31/22 12/31/23 11% CAGR 8% CAGR 39% CAGR

8 Credit $ m illi on s Nonperforming Assets $15.92 $14.44 $14.45 $28.99 $30.29 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 $ m illi on s Net Charge-Offs $3.5 $0.3 $0.9 $0.5 $2.1 4Q22 1Q23 2Q23 3Q23 4Q23 Credit Quality Measures $ millions 4Q22 1Q23 2Q23 3Q23 4Q23 Nonperforming assets ratio 0.24 % 0.23 % 0.22 % 0.45 % 0.47 % Net charge-off ratio 0.36 % 0.03 % 0.09 % 0.04 % 0.20 % Loans greater than 30 days past due and accruing $6.7 $4.9 $6.2 $6.4 $10.8 Allowance for credit losses ratio 1.28 % 1.27 % 1.25 % 1.27 % 1.25 % (1) (1) The fourth quarter of 2022 includes the identification and resolution of problem credits. (2) The third quarter of 2023 nonperforming assets increased primarily due to a single commercial relationship. (2)

9 Commercial Real Estate 3.8% 96.2% NOO CRE Office All Other Loans Non-Owner Occupied CRE Office December 31, 2023 $ millions 4Q23 Construction & Development $ 325.1 Farmland 186.0 Multifamily 383.8 CRE Other: NOO CRE Office 155.0 OO CRE Office 82.8 Industrial and Warehouse 381.9 Retail 265.0 Hotel 129.0 Other 322.3 Total Commercial Real Estate $ 2,230.9 Commercial Real Estate Portfolio(2) December 31, 2023 Portfolio Highlights December 31, 2023 $ millions Average NOO CRE Office outstanding principal $ 1.4 Commercial Real Estate Concentration: % of Total Capital Regulatory Threshold Construction, land development and other land 49 % 100 % Total CRE loans(1) 230 % 300 % (1)Total CRE loans includes construction, land development and other land, in addition to multifamily and NOO CRE. (2) Represents the outstanding principal balance of the CRE portfolio.

10 Focusing on Growth in Wealth Management $2.43 $2.44 $2.74 $2.73 $3.01 2019 2020 2021 2022 2023 $— $1.00 $2.00 $3.00 $4.00 Investment Services and Trust Activity Revenue • Asset amounts presented are in billions of dollars • Revenue amounts presented are in millions of dollars $8.0 $9.6 $11.7 $11.2 $12.2 $2.8 $3.2 $4.2 $3.9 $3.8 $5.2 $6.4 $7.5 $7.3 $8.4 Investment Services Trust 2019 2020 2021 2022 2023 $5.0 $10.0 $15.0 Wealth Management Assets Under Administration • Hired a new Head of Wealth Management, with deep expertise in investment strategies and relationship management • Building momentum in the Twin Cities with a talented wealth management team focused on leveraging strong relationships with our Retail and Commercial colleagues • Strengthened wealth management capabilities with the addition of an experienced wealth management team in Eastern Iowa that collectively has more than 120 years of experience • Strategic opening of a new office in Cedar Rapids, Iowa, a targeted metropolitan market • Invested in financial technology that will improve the customer experience and streamline internal processes 4 Year CAGR 5.7%

11 Financial Performance

12 Balance Sheet 4Q23 vs. 3Q23 4Q23 vs. 4Q22 Period end balances, $ millions 4Q23 $ Change % Change $ Change % Change Loans $4,126.9 $60.9 1 % $286.4 7 % Investment securities $1,870.3 -$88.2 (5) % -$412.7 (18) % Interest earning deposits in banks $5.5 $1.7 45 % $3.1 129 % Deposits $5,395.7 $32.4 1 % -$73.2 (1) % Borrowed funds $423.6 -$74.9 (15) % -$107.5 (20) % Shareholders' equity $524.4 $19.0 4 % $31.6 6 % 4Q23 4Q23 Period end 4Q23 3Q23 vs. 3Q23 4Q22 vs. 4Q22 Tangible book value per share (non-GAAP) $27.90 $26.60 5 % $25.60 9 % Common equity Tier 1 capital ratio 9.6 % 9.5 % 10 bps 9.3 % 30 bps AOCI $(64.9) $(84.6) 23 % $(89.0) 27 % Return on average tangible equity (non-GAAP) 3.57 % 9.68 % -611 bps 17.85 % -1428 bps – See the section "Non-GAAP Financial Measures."

13 Balance Sheet- Average Loans and Deposits – IB Deposits represent interest bearing deposits and NIB Deposits represent noninterest bearing deposits. – Loan yield, tax equivalent is a non-GAAP measure. See the Section "Non-GAAP Financial Measures." Av er ag e ba la nc es , $ bi lli on s Average Deposits $5.50 $5.38 $5.44 $4.38 $4.47 $4.51 $1.12 $0.91 $0.93 0.83% 2.05% 2.39% IB Deposits NIB Deposits Cost of IB Deposits 4Q22 3Q23 4Q23 Av er ag e ba la nc es , $ bi lli on s Average Loans $3.79 $4.02 $4.08 4.66% 5.19% 5.34% Loans Loan yield, tax equivalent 4Q22 3Q23 4Q23

14 Balance Sheet - Debt Securities Portfolio Municipals, 17% MBS, 1% CLO, 6% CMO, 21% Corporate, 55% 2.35% 2.40% 2.35% 2.36% 2.36% Total Securities Held for Investment (FTE) 4Q22 1Q23 2Q23 3Q23 4Q23 Investment Securities Yield Available for Sale Debt Securities Portfolio Mix December 31, 2023(1) Municipals, 50% MBS, 7% CMO, 43% Held to Maturity Debt Securities Portfolio Mix December 31, 2023(1) • Investment Portfolio Mix: ◦ AFS Securities - $0.8 billion ◦ HTM Securities - $1.1 billion • Investment Portfolio Duration (Years): ◦ AFS Securities - 3.1 ◦ HTM Securities - 6.3 ◦ Total Securities - 4.9 • Allowance for credit losses for investments is $0 Portfolio Composition (1) Percentages may not total 100% due to rounding.

15 Income Statement % Change 4Q23 vs. $ millions 4Q23 3Q23 4Q22 3Q23 4Q22 Net interest income $32.6 $34.6 $43.6 (6) % (25) % Noninterest income 3.9 9.9 10.9 (61) % (64) % Total revenue 36.5 44.5 54.5 (18) % (33) % Noninterest expense 32.1 31.5 34.4 2 % (7) % Pre-tax, pre-provision earnings (non-GAAP) $4.4 $13.0 $20.1 (66) % (78) % Credit loss expense $1.8 $1.6 $0.6 13 % 200 % Income tax (benefit) expense $(0.2) $2.2 $3.5 (109) % (106) % Net income $2.7 $9.1 $16.0 (70) % (83) % 4Q23 4Q23 4Q23 3Q23 4Q22 vs. 3Q23 vs. 4Q22 Net interest margin (non-GAAP) 2.22 % 2.35 % 2.93 % (13) bps (71) bps Efficiency ratio (non-GAAP) 70.16 % 66.06 % 57.79 % (410) bps (1,237) bps Diluted EPS $0.17 $0.58 $1.02 (71) % (83) % – See the section "Non-GAAP Financial Measures."

16 Non-GAAP Financial Measures

17 Non-GAAP Financial Measures Tangible Common Equity / Tangible Book Value per Share / Tangible Common Equity Ratio December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Total shareholders' equity $ 492,793 $ 505,411 $ 524,378 Intangible assets, net (92,792) (87,987) (86,546) Tangible common equity $ 400,001 $ 417,424 $ 437,832 Total assets $ 6,577,876 $ 6,467,818 $ 6,427,540 Intangible assets, net (92,792) (87,987) (86,546) Tangible assets $ 6,485,084 $ 6,379,831 $ 6,340,994 Book value per share $ 31.54 $ 32.21 $ 33.41 Tangible book value per share (1) $ 25.60 $ 26.60 $ 27.90 Shares outstanding 15,623,977 15,691,738 15,694,306 Tangible common equity ratio (2) 6.17 % 6.54 % 6.90 % (1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets. Loan Yield, Tax Equivalent For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Loan interest income, including fees $ 43,769 $ 51,870 $ 54,093 Tax equivalent adjustment (1) 725 735 846 Tax equivalent loan interest income $ 44,494 $ 52,605 $ 54,939 Yield on loans, tax equivalent (2) 4.66 % 5.19 % 5.34 % Average Loans $ 3,791,880 $ 4,019,852 $ 4,080,243 (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent loan interest income divided by average loans.

18 Non-GAAP Financial Measures Efficiency Ratio For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Total noninterest expense $ 34,440 $ 31,544 $ 32,131 Amortization of intangibles (1,770) (1,460) (1,441) Merger-related expenses (409) (11) (245) Noninterest expense used for efficiency ratio $ 32,261 $ 30,073 $ 30,445 Net interest income, tax equivalent (1) $ 44,879 $ 35,742 $ 33,833 Noninterest income 10,940 9,861 3,862 Investment securities (losses) gains, net (1) 79 (5,696) Net revenues used for efficiency ratio $ 55,820 $ 45,524 $ 43,391 Efficiency ratio 57.79 % 66.06 % 70.16 % (1) The federal statutory tax rate utilized was 21%. (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities (losses) gains. Pre-tax / Pre-provision Net Revenue For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Net interest income $ 43,564 $ 34,575 $ 32,559 Noninterest income 10,940 9,861 3,862 Noninterest expense (34,440) (31,544) (32,131) Pre-tax / Pre-provision Net Revenue $ 20,064 $ 12,892 $ 4,290

19 Non-GAAP Financial Measures Return on Average Tangible Equity For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Net income $ 16,002 $ 9,138 $ 2,730 Intangible amortization, net of tax (1) 1,328 1,095 1,081 Tangible net income $ 17,330 $ 10,233 $ 3,811 Average shareholders' equity $ 478,827 $ 508,066 $ 511,236 Average intangible assets, net (93,662) (88,699) (87,258) Average tangible equity $ 385,165 $ 419,367 $ 423,978 Return on average equity 13.26 % 7.14 % 2.12 % Return on average tangible equity (2) 17.85 % 9.68 % 3.57 % (1) The combined income tax rate utilized was 25%. (2) Annualized tangible net income divided by average tangible equity. Net Interest Margin, Tax Equivalent For the Three Months Ended December 31, 2022 September 30, 2023 December 31, 2023 dollars in thousands Net interest Income $ 43,564 $ 34,575 $ 32,559 Tax equivalent adjustments: Loans (1) 725 735 846 Securities (1) 590 432 428 Net Interest Income, tax equivalent $ 44,879 $ 35,742 $ 33,833 Average interest earning assets $ 6,085,092 $ 6,032,636 $ 6,035,122 Net interest margin, tax equivalent (2) 2.93 % 2.35 % 2.22 % (1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent net interest income divided by average interest earning assets.

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Cover Page	Jan. 23, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jan. 23, 2024
Entity Registrant Name	MidWestOne Financial Group, Inc.
Entity File Number	001-35968
Entity Incorporation, State or Country Code	IA
Entity Tax Identification Number	42-1206172
Entity Address, Address Line One	102 South Clinton Street
Entity Address, City or Town	Iowa City
Entity Address, State or Province	IA
Entity Address, Postal Zip Code	52240
City Area Code	319
Local Phone Number	356-5800
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, $1.00 par value
Trading Symbol	MOFG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001412665