July 27--MidWestOne Financial Group Inc. reported results for its three and six months ended June 30. Net income for the second quarter of 2014 rose to $4.8 million, compared with $4.5 million for the same period last year. Diluted earnings per share were 56 cents for the second quarter of 2014, compared with 53 cents for the second quarter of 2013.
Earnings comparisons between the second quarter of 2014 and the same period in 2013 were driven primarily by:
--A 50.0 percent decrease in the provision for loan loss expense; and
--A 1.8 percent increase in net interest income, due primarily to a 26.5 percent decrease in interest expense; partially offset by
--A 4.2 percent decrease in noninterest income, driven by a 55.6 percent decrease in mortgage loan origination and servicing fees, which was partially offset by increased gains on the sale of investment securities available for sale.
"The second quarter was a 'grind it out' quarter for MidWestOne," said Charles N. Funk, president and CEO of MidWest-One Financial Group Inc. "Our bank portfolio loans increased $13 million during the quarter, and we continue to see moderate growth ahead. Expense control remains good, and we have been able to reduce our provision for loan losses due to improving credit conditions. I commend our team on their good work with our net interest margin this quarter as well."
Net income for the six months ended June 30 was $9.7 million, which represents a $400,000, or 4.3 percent increase compared to $9.3 million of net income for the same period of 2013, with diluted earnings per share of $1.14 and $1.09 for the comparative six-month periods, respectively.
MidWestOne Financial Group Inc. is a financial holding company headquartered in Iowa City. The company's bank subsidiary MidWestOne Bank is also headquartered in Iowa City. MidWest-One Bank has office locations in Belle Plaine, Burlington, Cedar Falls, Conrad, Coralville, Davenport, Fairfield, Fort Madison, Iowa City, Melbourne, North English, North Liberty, Oskaloosa, Ottumwa, Parkersburg, Pella, Sigourney, Waterloo and West Liberty.
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