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Midwestone Financial (MOFG)
:MOFG
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Midwestone Financial Group
(NASDAQ:MOFG)
54Neutral
Midwestone Financial Group (MOFG) vs. S&P 500 (SPY)
Market Cap
$549.53M
Dividend Yield3.67%
Average Volume (3M)103.88K
Price to Earnings (P/E)―
Beta (1Y)1.14
Revenue Growth-23.44%
EPS Growth-404.42%
CountryUS
Employees757
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)-4.05
Shares Outstanding20,815,716
10 Day Avg. Volume101,589
30 Day Avg. Volume103,878
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)10.15
Price to Cash Flow (P/CF)4.90
P/FCF Ratio2.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.50Price Target Upside42.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Midwestone Financial Group Business Overview & Revenue Model
Company DescriptionMidwestone Financial Group, Inc. (MOFG) is a financial services company headquartered in Iowa City, Iowa. The company operates primarily in the banking sector, providing a comprehensive range of financial products and services. Its core offerings include personal and commercial banking, mortgage lending, investment services, and wealth management. Midwestone Financial Group is dedicated to serving the financial needs of individuals, businesses, and communities in its operating regions.
How the Company Makes MoneyMidwestone Financial Group makes money through various revenue streams typical of a diversified financial services company. The primary source of revenue comes from interest income generated from loans and leases offered to individuals and businesses. This includes personal and commercial loans, mortgage loans, and other forms of credit. The company also earns non-interest income through fees and service charges associated with deposit accounts, transaction processing, and other banking services. Additionally, Midwestone Financial Group benefits from investment and wealth management services, earning fees from advisory services and asset management. These revenue streams are supported by a strong network of branches and digital banking platforms, enabling the company to reach a broad customer base. Significant partnerships with other financial institutions and service providers may also contribute to its earnings by enhancing product offerings and operational efficiency.
Midwestone Financial Group Financial Statement Overview
Summary
MidWestOne Financial Group is encountering financial challenges, with a net loss impacting the income statement. Despite a stable balance sheet and resilient cash flow, the negative net profit margin and stagnant free cash flow growth are concerning. The company needs to address profitability issues to ensure its financial stability.Income Statement
The income statement reflects a challenging year with a significant decline in net income, resulting in a net loss for the latest period. Gross profit margin is stable as gross profit equals total revenue, but net profit margin has turned negative. EBIT margin shows a positive trend, improving significantly from the previous year. However, revenue growth is inconsistent and volatile, indicating potential risks ahead.45
Neutral
Balance Sheet
The balance sheet shows a stable equity position, with an improving debt-to-equity ratio indicating prudent financial management. Return on equity has turned negative due to the net loss, which is a concern. The equity ratio remains stable, reflecting a balanced approach to asset management. Overall, the balance sheet is fairly stable but with some concerns due to recent profitability issues.60
Neutral
Cash Flow
Cash flow analysis reveals stable operating cash flow despite the net income loss. The operating cash flow to net income ratio is strong, indicating healthy cash generation relative to income. However, free cash flow growth is stagnant, and the free cash flow to net income ratio is impacted by the net loss. The cash flow statement shows resilience but highlights potential liquidity concerns if income issues persist.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 294.27M | 162.59M | 213.88M | 198.73M | 191.58M | Gross Profit |
| 294.27M | 162.59M | 213.88M | 198.73M | 191.58M | EBIT |
| 291.63M | 24.83M | 111.09M | 89.48M | 13.32M | EBITDA |
| 0.00 | 0.00 | 86.76M | 91.04M | 17.88M | Net Income Common Stockholders |
| -60.29M | 20.86M | 60.84M | 69.49M | 6.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.40B | 871.37M | 1.24B | 2.49B | 1.74B | Total Assets |
| 6.24B | 6.43B | 6.58B | 6.03B | 5.56B | Total Debt |
| 116.56M | 418.50M | 531.08M | 336.25M | 439.48M | Net Debt |
| 44.76M | 336.78M | 444.65M | 132.42M | 356.99M | Total Liabilities |
| 5.68B | 5.90B | 6.09B | 5.50B | 5.04B | Stockholders Equity |
| 559.70M | 524.38M | 492.79M | 527.48M | 515.25M |
| Cash Flow | Free Cash Flow | |||
| 63.18M | 58.52M | 87.67M | 109.54M | 7.03M | Operating Cash Flow |
| 63.18M | 62.57M | 90.33M | 111.55M | 9.16M | Investing Cash Flow |
| 312.30M | 129.73M | -273.27M | -428.32M | -867.44M | Financing Cash Flow |
| -252.32M | -197.01M | 65.55M | 437.94M | 867.46M |
Midwestone Financial Group Technical Analysis
Negative
26.40
Price Trends
30.12
Negative
30.49
Negative
28.59
Negative
Market Momentum
-0.12
Negative
45.29
Neutral
47.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOFG, the sentiment is Negative. The current price of 26.4 is below the 20-day moving average (MA) of 28.89, below the 50-day MA of 30.12, and below the 200-day MA of 28.59, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 47.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MOFG.
Midwestone Financial Group Risk Analysis
Midwestone Financial Group disclosed 41 risk factors in its most recent earnings report. Midwestone Financial Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Midwestone Financial Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $430.11M | 9.87 | 9.78% | 4.27% | 7.81% | -3.54% | |
65 Neutral | $640.31M | 8.00 | 14.38% | 3.61% | 19.24% | -3.88% | |
65 Neutral | $744.65M | 9.40 | 9.62% | 3.06% | 17.70% | 3.88% | |
64 Neutral | $12.70B | 9.08 | 9.19% | 4.89% | 16.29% | -8.64% | |
60 Neutral | $92.97M | 15.35 | 4.82% | 4.03% | 7.55% | -20.61% | |
54 Neutral | $549.53M | ― | -11.12% | 3.67% | -23.44% | -404.42% |
* Financial Sector Average
Performance Comparison
MOFG
Midwestone Financial Group
26.29
5.17
24.48%
BHB
Bar Harbor Bankshares
27.92
3.78
15.66%
MBWM
Mercantile Bank
39.48
3.48
9.67%
PROV
Provident Financial Holdings
14.20
1.16
8.90%
FMBH
First Mid-Illinois Bancshares
31.00
0.44
1.44%
Midwestone Financial Group Earnings Call Summary
Earnings Call Date: Jan 23, 2025 | % Change Since: -11.85% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with significant improvements in net interest margin, deposit growth, and asset quality. However, there were challenges in loan growth and increased noninterest expenses.Highlights
Significant Improvement in Net Interest Margin
Net interest margin improved by 92 basis points, leading to a 30% quarter-over-quarter increase in net interest income.
Strong Deposit Growth
Total deposits increased by 2% compared to the linked quarter, with noninterest-bearing deposits growing 4%.
Asset Quality Improvements
The classified loan ratio declined by 54 basis points, a 150 basis point improvement from a year ago.
SBA Gain on Sale Revenue
SBA team generated more than $1.6 million of gain on sale revenue in 2024, with $630,000 occurring in the fourth quarter.
Growth in Wealth Management
Wealth management fees increased 11% over the linked quarter and 18% over the same period last year.
Lowlights
Decline in Public Funds
Public funds were down 14% for the year, with public fund CDs down 40%.
Flat Loan Growth
Quarterly loan growth was flat due to elevated payoffs and loan resolutions.
Increased Noninterest Expenses
Total noninterest expense increased by $1.6 million from the linked quarter, driven by higher medical claims, legal costs, and property tax accruals.
Company Guidance
During the MidWestOne Financial Group, Inc. Q4 2024 earnings call, the guidance highlighted several key metrics reflecting the company's strong performance and future expectations. A significant improvement in the net interest margin by 92 basis points contributed to a 30% quarter-over-quarter increase in net interest income, resulting in net income of $16.3 million and a return on average assets of 1.03%. The company reported a 2% increase in total deposits and a 4% growth in noninterest-bearing deposits from the linked quarter. The commercial segment showed a 6% increase in balances, and the strategic initiatives such as the SBA vertical and wealth management were emphasized, with SBA generating $1.6 million in gain on sale revenue for 2024. Asset quality metrics remained strong, with a 54 basis point decline in the classified loan ratio and a 4% growth in pass-rated loan balances. The company anticipates mid-single-digit loan growth in Q1 2025 and projects annual expenses to range between $145 million and $147 million.Midwestone Financial Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Midwestone Financial Group’s Q1 2025 Investor Presentation
Neutral
Jan 24, 2025
During the first quarter of 2025, MidWestOne Financial Group’s executive officers will present to institutional investors, providing insights into the company’s operations and financial performance. The presentation, available on their website, highlights the potential impact of economic factors and strategic transactions on the company’s growth and stakeholder interests, addressing risks such as credit quality and market competition.
Financial Disclosures
MidWestOne Financial Group to Announce Q4 2024 Results
Neutral
Jan 10, 2025
MidWestOne Financial Group, Inc. announced that it will release its fourth quarter 2024 financial results on January 23, 2025, after market close, followed by a conference call on January 24 to discuss these results. This announcement provides stakeholders with an opportunity to gain insights into the company’s financial performance and strategic activities, which could impact its market positioning and investor relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.