MidWestOne Q2 net income falls

Overview

• MidWestOne Q2 pre-tax, pre-provision net revenue rises to $24.5 mln

• Net income impacted by $24 mln CRE office credit, credit loss expense $11.9 mln

Outlook

• Company expects full-year effective tax rate to be 22-23%

Result Drivers

• NET INTEREST MARGIN - Expansion driven by strong loan growth and re-pricing, contributing to a 5% increase in net interest income

• CREDIT LOSS IMPACT - $24 mln CRE office credit led to $11.9 mln credit loss expense, affecting net income

• FEE INCOME GROWTH - Investments in fee income businesses resulted in increased revenues from wealth management, SBA, and residential mortgages

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Midwestone Financial Group Inc (IOWA) is $35.00, about 14.7% above its July 23 closing price of $29.86

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nGNX3sHFvZ