Midwestone Financial Group
Annual Report 2021

Plain-text annual report

Building Momentum 2021 Annual Report Business client Ryan Baker, owner of World of Bikes, and friends. MidWestOne Financial Group, Inc. and MidWestOne Bank Boards of Directors Contents Larry D. Albert—Retired CEO, Central Bank 2-6 To Our Shareholders 7 8 9 10 11 Financial Highlights Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Shareholders’ Equity Company Leadership Richard R. Donohue—Retired Managing Partner, TD&T CPAs and Advisors, P.C. Charles N. Funk—Chief Executive Officer, MidWestOne Financial Group, Inc. and MidWestOne Bank Janet E. Godwin—CEO, ACT, Inc. Douglas H. Greeff—President, Greeff Advisory LLC* Richard J. Hartig—Chairman, Hartig Drug Stores Jennifer L. Hauschildt—Vice President of Human Resources, Uponor Matthew J. Hayek—Attorney & Partner, Hayek, Moreland, Smith & Bergus, LLP Nathaniel J. Kaeding—Director, Business Development and Client Relations, Build to Suit, Inc. Tracy S. McCormick—CFO and Director, Mill Creek Development Company Kevin W. Monson—Founder and Chairman Emeritus, Neumann Monson Architects; Chairman of the Board Charles J. Schrup III—Retired Vice Chairman, ATBancorp and Retired Co-Chairman of the Board, American Trust** Ruth E. Stanoch—Corporate Affairs Consultant Douglas K. True—Retired Senior Vice President and Treasurer, University of Iowa *Serves only on MidWestOne Financial Group, Inc. board **Serves only on MidWestOne Bank board MidWestOne Financial Group, Inc. 2021 Annual Report To Our Shareholders “We are told that talent creates its own opportunities. But it sometimes seems that intense desire creates not only its own opportunities, but its own talents” The American moral and social philosopher, Eric Hoffer, wrote these words and they seem very much congruent with MidWestOne Financial Group’s performance in 2021. From a financial standpoint, it was a year of record earnings. And it was so much more. In a year of significant uncertainty stemming from a relentless pandemic, as well as unprece- dented government stimulus, this company held its head high. Corporate perseverance can only be achieved when hands join together and climb the hill. That’s exactly what this company did in 2021. Consider a few of the obstacles that created opportunities: The U.S. government initiated another round of the Payment Protection Program early in 2021 and MidWestOne bankers once again responded to buoy our customers. When the results were tallied, Round Two had generated $149.3 million in PPP loans. 2020’s Round One of PPP had already resulted in the advancement of $348.5 million in PPP loans. While there were many obstacles along the way, our team conquered every one of them to follow our mission of tak- ing care of our customers and those who should be. This also highlighted the critical role community banks play on Main Street across the country. The pandemic continued to rage and MidWestOne spared no time or expense in its quest to keep our customers and employees safe. There were a few days of office closures due to staffing challenges but our collective will to take care of our customers—whether through virtual, digital or in-person channels—never wavered. The pandemic under- lined how important two of our operating principles are: work as One team and learn constantly so we continually improve. Asset quality—the creditworthiness of our loan portfolio— continued its multi-year progress in 2021. Pandemic notwithstanding, our bankers continued to work with troubled borrowers to fairly and equitably resolve past due and nonperforming assets. We have reason to believe this progress will continue to manifest itself in 2022. In a very difficult hiring environment, we added key people in important areas of our company. While we will go into more detail below, suffice it to say that these are talented individuals who were excited to join our company in large part due to an attractive culture that rewards integrity, teamwork and superior client care. We have not been oblivious to the rapid and persistent transformation of our industry toward a greater reliance on digital channels. As such, we’ve continued to step up and push our digital roadmap forward. This critical effort has fostered significant teamwork inside the walls of the company. Even though government stimulus boosted and sustained many areas of the economy, there were also pockets where people and organizations struggled to make ends meet. As we have always done, we stepped up to the challenge by finding ways to offer support. Throughout our footprint, we continue to support hundreds of orga- nizations that improve the lives of their constituents. And we have committed even more resources to underserved communities. One example was in the Twin Cities where we significantly improved our community outreach by focusing on bridging the home ownership gap through our work with non-profit organizations. We developed a proprietary “First Home Now” product and were able to help 71 low-to-moderate income families purchase their first home. Similar efforts are under way in other commu- nities we serve, and we are delighted to be able to make a meaningful difference. Despite the challenges of the times, we were again awarded the designation as one of Iowa’s Top Workplaces by Workplace Dynamics for the 8th consecutive year in 2021. We were awarded a “national standard” ranking in our Twin Cities offices. We believe this recognition affirms our laser-like focus on culture and our corporate Operating Principles. This company is nothing without a strong and resilient culture. We were gratified to receive recognition from Newsweek, which awarded MidWestOne Bank the designation as the “best bank in Iowa,” a first for our company. With this context, let’s dig into the financial numbers that propelled MidWestOne to its best performance in its 86-year history. Net income was $69.5 million in 2021, or $4.37 per diluted common share. Both are all-time highs. Return on average assets was 1.20 percent and return on tangible equity was 16.63 percent. The efficiency ratio improved to an unprecedented 54.65 percent. We had a net recovery of charged off loans of 0.01 percent. We also note that our nonperforming loans ratio declined 21.1 percent to 0.97 percent as of year-end 2021. This is the first year-end since 2018 that our NPL ratio has fallen below one percent. We increased our dividend to an all-time high of $0.90 per share in 2021 and also repurchased 395,540 shares of our common stock under the current and prior share repurchase programs during the year. These two actions combined to return $25.8 million to our shareholders in 2021. In addi- tion, we announced a 5.6 percent increase in the quarterly dividend in January 2022 to an annualized $0.95 per share. We generate approximately 78 percent of our top line revenues from the collection of customer deposits and the investment of these deposits into assets, primarily bank loans. The zero-interest rate policy of the Federal Reserve has narrowed the difference between the interest paid rate on deposits and received on assets. This is our net interest margin and for MidWestOne and its banking counterparts, this has been a significant challenge for the past several years. In fact, our tax equivalent NIM of 2.95 percent was 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 68.00 66.00 64.00 62.00 60.00 58.00 56.00 54.00 52.00 225.00 200.00 175.00 150.00 125.00 100.00 75.00 50.00 25.00 0.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Return on Average Assets (%) FY2017 FY2018 FY2019 FY2020 FY2021 MOFG Peer Midwest Banks Efficiency Ratio (%) FY2017 FY2018 FY2019 FY2020 FY2021 MOFG Peer Midwest Banks Dividend Payout Ratio (%) FY2017 FY2018 FY2019 FY2020 FY2021 MOFG Peer Midwest Banks Return on Average Equity (%) FY2017 FY2018 FY2019 FY2020 FY2021 MOFG Peer Midwest Banks MidWestOne Financial Group, Inc. 2021 Annual Report MidWestOne Financial Group, Inc. 2021 Annual Report 3.90 3.80 3.70 3.60 3.50 3.40 3.30 3.20 3.10 3.00 2.90 2.80 62.00 54.00 46.00 38.00 30.00 22.00 14.00 6.00 360.00 310.00 260.00 210.00 160.00 110.00 60.00 Net Interest Margin (%) FY2017 FY2018 FY2019 FY2020 FY2021 MOFG Peer Midwest Banks Price / LTM EPS (X) FY2017 FY2018 FY2019 FY2020 FY2021 MOFG Peer Midwest Banks Total Return Performance 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 MidWestOne Financial Group, Inc. NASDAQ Composite Index S&P U.S. BMI Banks - Midwest Region Index the lowest in our history. We partially compensated for this compression with an increase in earning assets which was largely driven by the robust increase in bank deposits during the year. Critical to our success in 2022 and beyond is increasing the growth in our commercial loan portfolio. We believe that we are positioned to do just that. We have reorganized MidWestOne Bank’s Commercial Banking Division under the leadership of Executive Vice President Chase Stafford. We have seen strong growth from our Denver banking office and expect that to continue. We believe we have increasing momentum in our SW Florida Naples and Fort Myers offices. A new and seasoned leadership team is in place in the Twin Cities. We also foresee excellent growth in our home market in Iowa City. This is a people-centric business and we believe the team in place is the strongest and most experienced in our company’s history. One element that will support commercial banking growth is the formation of a Business Banking unit. This unit will serve many of our small business borrowers. When the rollout is complete, our borrowers will be able to apply for these loans digitally and receive very quick turn- around for approval and loan closing. Not only will this be more convenient for most of our borrowers, but it will also be an efficient method of delivery for the bank. Non-interest income must rise as a percentage of total revenues. We have always had a strong presence in Wealth Management in our legacy Iowa markets. This service has been delivered via a strong Trust Department and our Investment Services Department, which is com- prised of licensed investment representatives. In late 2020, we were able to add three Trust professionals in our Twin Cities market. This team delivered solid performance; the Trust Department saw an overall revenue increase from the prior year of 17.4 percent, while the Investment Services Department saw an increase of 27.8 percent. Combined, the total increase from the prior year in investment services and trust activities revenue was 21.2 percent. In late 2021, we were able to add four more Trust professionals to expand our already strong franchise in Eastern Iowa, and we added an investment representative to our Dubuque market to serve and grow an excellent client base there. To say we are optimistic about 2022 and beyond is an understatement! We believe there is strong market demand for our brand of wealth management within our geographic footprint. The home mortgage business is cyclical and we rode a wave in 2020-21. 2021 was again a year in which our Home Mortgage Center contributed mightily to company- wide earnings. Not only did we originate more than $382 million in 1-4 family home loans, but we also built our mortgage servicing portfolio to the year-end level of $1.138 billion. We regard our expertise in 1-4 family lending as a gateway to more retail banking relationships and, indeed, that is what happened in 2021 as the partnership between these two important parts of our bank was strong. We also recognize that as interest rates on home loans rise in 2022, the contribution from this line of business is likely to fall. We continue to invest in our technology platforms. It is important to remember that technology in a commercial bank affects not only interactions with customers, but also the complex inner-workings of the bank. When we can use technology to make our customers’ lives simpler, we become an ever more essential partner to them. But we also must raise our game inside the walls of the company by using automation and artificial intelligence to increase efficiency. Projects completed in 2021 or in process as we start 2022 include: • Continued digital banking platform enhancements • New contactless and mobile wallet payment solutions • Enterprise workflow which has saved hundreds of hours of staff time • Digital signature expansion • Streamlined business lending platform • Enterprise data warehouse that can help us make better data driven decisions • A new and greatly enhanced platform for our Trust Department As noted above, the asset quality in the loan portfolio continues its improvement. Our net charged off loans peaked in 2017 and have been consistently declining since and we showed a net recovery of charged off loans in 2021. We also note that our nonperforming loans ratio declined 21.1 percent in 2021. We expect further improvement in 2022 and also note that, at 1.52 percent, our credit loss reserve as a percentage of bank loans (net of PPP) is very strong. Improvement in asset quality as well as in economic conditions allowed us to release significant credit loss re- serves into income in 2021. Just as adding reserves in 2020 hampered bank earnings, so, too, did the reserve releases create a wind at our back in 2021. We applaud the efforts of our Credit Administration team, our Special Assets Depart- ment and our bankers in the field as we have improved asset quality by working as One team. We believe we have been good managers of our share- holders’ capital. For several years, we’ve operated slightly below our peers in terms of various capital to asset ratios. We believe we’ve prudently leveraged our capital position. Due to the larger than expected expansion of the balance sheet in 2021, our tangible equity fell to 7.49 percent at year-end 2021. We believe the risk profile of the company has changed little over the past year; in fact one measure of this is reflected in our total capital to risk-weighted assets ratio of 13.09 percent, which was down slightly from 13.41 percent at year-end 2020. Our acquisition of Iowa First Bancshares Corp. fits nicely into our existing geographic footprint and allows us to show better earnings visibility into 2022-23. Iowa First operates in two major market in Southern Iowa, Mus- catine and Fairfield. When the merger is consummated, MidWestOne will command the number one deposit market share in four counties in Southern Iowa: Mahaska (MWO operates in Oskaloosa), Keokuk (Sigourney and North En- glish), Jefferson (Fairfield) and Muscatine (West Liberty and Muscatine). This was announced as an all cash transaction and will add approximately $500 million to our asset base. The transaction is estimated to be accretive to 2022 earnings. Iowa First shares MidWestOne’s commitment to strong customer care and passionate community support. MidWestOne Financial Group, Inc. 2021 Annual Report MidWestOne Financial Group, Inc. 2021 Annual Report We have already commented on our workplace awards received in 2021 as well as in prior years. We could not be prouder of our strong corps of employees who worked together so well in 2021. We navigated change with grace and compassion and remained focused on steering the corporate ship into safe waters throughout the year. To land where we have landed does not occur without signif- icant effort and, yes, talent. We thank our staff for a superb effort in 2021. ident & Retail Manager, Iowa City; Ian Mars, Service Desk Administrator, West Des Moines, IA; Brooklyn Miller, Mort- gage Loan Processor, Stillwater, MN; John Ruppel, Senior Vice President & Corporate Controller, Iowa City; Andrea Skinner, Vice President, Credit Administration, Osceola, WI; Nereida Velez, Universal Banker, West Liberty, IA; Matt Walter, Customer Information and Analytics Officer, Iowa City; Andrea Walz Hartman, Vice President & Retail Manager, Burlington, IA. We thank our Board of Directors for providing guidance and direction in 2021. Even as we bounced back and forth between remote and in-person meetings, this group remained engaged and committed to represent our shareholders in a positive manner. It remains our great privilege to serve you, our loyal shareholders. Thank you for your faithful support. Very sincerely yours, Charles N. Funk—Chief Executive Officer Kevin W. Monson—Chairman of the Board Len D. Devaisher—President & COO We also welcomed a number of key employees to our ranks in 2021. These individuals have excelled in their banking careers and they add to an already strong group of leaders at MidWestOne. Our future is bright so long as we can continue to attract high-caliber performers who blend into our culture. We note that these individuals are spread throughout our company and in such diverse areas as Risk Management, Commercial Banking, Credit Admin- istration, Wealth Management, Finance, and Mortgage Lending. Our team is stronger today than ever before. We said good-bye to our director, Kurt Weise, who retired from the Board last June. Kurt came to us in the Central Bank transaction in 2015 and was an engaged director who brought financial acumen into the board room. We wish him well. We celebrated the April promotion of Chase Stafford to Executive Vice President—Commercial Banking. Chase joined our company in 2014 and has continued to impress us with his talent, business sense, and work ethic. At year- end, we promoted Susan Moore to Executive Vice President and Chief Risk Officer. Susan has been with our company for three years and has taken her position to a new level of expertise and significance in our company. The CRO position continues to take on more complexity and importance as we move toward the $10 billion asset level. Our annual employee “Rally Day” celebration was again held remotely in 2021. We honored nine individuals with the “CEO Award” for their contributions to the company. The individuals honored were: Tyler Batchelder, Service Desk Administrator, Iowa City, IA; Angie Brown, Vice Pres- MidWestOne Financial Group, Inc. 2021 Annual Report Financial Highlights (dollars in thousands, except per share amounts) YEAR-END BALANCES Assets Investment Securities Loans Held for Investment, Net of Unearned Income Deposits Shareholders' Equity AVERAGE BALANCES Assets Investment Securities Total Loans Deposits Shareholders' Equity EARNINGS Net Interest Income Credit Loss (Benefit) Expense Noninterest Income Noninterest Expense Income Before Income Taxes Net Income PER COMMON SHARE Earnings - Basic Earnings - Diluted Dividends Book Value Year-End Closing Price 2021 2020 2019 2018 2017 $ 6,025,128 2,288,110 3,245,012 5,114,519 527,475 $ 5,556,648 1,657,381 3,482,223 4,547,049 515,250 $ 4,653,573 785,977 3,451,266 3,728,655 508,982 $ 3,291,480 609,923 2,398,779 2,612,929 357,067 $ 3,212,271 643,279 2,286,695 2,605,319 340,304 $ 5,780,556 2,040,672 3,362,488 4,838,227 527,036 $ 5,135,841 1,139,954 3,551,945 4,184,406 515,455 $ 4,201,040 669,859 3,157,127 3,362,713 452,018 $ 3,249,718 636,362 2,354,354 2,608,725 345,734 $ 3,097,496 641,328 2,201,364 2,503,481 334,966 $ 156,281 (7,336) 42,453 116,592 89,478 69,486 $ 152,964 28,369 38,620 149,893 13,322 6,623 $ 143,650 7,158 31,246 117,535 50,203 43,630 $ 105,268 7,300 23,215 83,215 37,968 30,351 $ 103,781 17,334 22,751 80,123 29,075 18,699 $ 4.38 4.37 0.90 33.66 32.37 $ 0.41 0.41 0.88 32.17 24.50 $ 2.93 2.93 0.81 31.49 36.23 $ 2.48 2.48 0.78 29.32 24.83 $ 1.55 1.55 0.67 27.85 33.53 CREDIT RISK PROFILE Nonperforming Loans Net (Recoveries) Charge Offs Allowance for Credit Losses Ratio (Excluding PPP Loans) Net (Recovery) Charge-Off Ratio Nonperforming Loans Ratio $ 31,540 (436) 1.52% -0.01% 0.97% $ 42,689 5,265 1.72% 0.15% 1.23% $ 41,617 7,386 0.84% 0.23% 1.21% $ 20,289 6,052 1.22% 0.26% 0.85% $ 14,991 11,125 1.23% 0.51% 0.66% FINANCIAL RATIOS Return on Average Equity Return on Average Tangible Equity Return on Average Assets Net Interest Margin, Tax Equivalent Efficiency Ratio Average Equity as a % of Average Assets 13.18% 16.63% 1.20% 2.95% 54.65% 9.12% 1.28% 10.80% 0.13% 3.30% 56.92% 10.04% 9.65% 13.98% 1.04% 3.82% 57.56% 10.76% 8.78% 11.87% 0.93% 3.60% 61.23% 10.64% 5.58% 8.00% 0.60% 3.81% 58.63% 10.81% December 31, 2021 2020 Consolidated Statements of Income (dollars in thousands, except per share amounts) Consolidated Balance Sheets (dollars in thousands, except per share amounts) ASSETS Cash and due from banks Interest earning deposits in banks Federal funds sold Total cash and cash equivalents Debt securities available for sale at fair value Loans held for sale Gross loans held for investment Unearned income, net Loans held for investment, net of unearned income Allowance for credit losses Total loans held for investment, net Premises and equipment, net Goodwill Other intangible assets, net Foreclosed assets, net Other assets Total assets LIABILITIES AND SHAREHOLDERS' EQUITY Noninterest bearing deposits Interest-bearing deposits Total deposits Short-term borrowings Long-term debt Other liabilities Total liabilities Shareholders' Equity $ $ 42,949 160,881 - 203,830 2,288,110 12,917 3,252,194 (7,182) 3,245,012 (48,700) 3,196,312 83,492 62,477 19,885 357 157,748 6,025,128 1,005,369 4,109,150 5,114,519 181,368 154,879 46,887 5,497,653 $ $ $ $ $ $ 65,078 17,409 172 82,659 1,657,381 59,956 3,496,790 (14,567) 3,482,223 (55,500) 3,426,723 86,401 62,477 25,242 2,316 153,493 5,556,648 910,655 3,636,394 4,547,049 230,789 208,691 54,869 5,041,398 Preferred stock, no par value; authorized 500,000 shares; no shares issued and outstanding Common stock, $1.00 par value; authorized 30,000,000 shares; issued shares of 16,581,017 and 16,581,017; outstanding shares of 15,671,147 and 16,016,780 Additional paid-in capital Retained earnings Treasury stock at cost; 909,870 and 564,237 Accumulated other comprehensive (loss) income Total shareholders' equity Total liabilities and shareholders' equity - - 16,581 300,940 243,365 (24,546) (8,865) 527,475 6,025,128 $ 16,581 300,137 188,191 (14,251) 24,592 515,250 5,556,648 $ Should be read in conjunction with the consolidated financial statements and notes thereto included in Part II, Item 8 of the Company's Form 10-K for the fiscal year ended December 31, 2021. Total noninterest expense Income before income tax expense Interest income: Loans, including fees Taxable investment securities Tax-exempt investment securities Other Total interest income Interest expense: Deposits Short-term borrowings Long-term debt Total interest expense Net interest income Credit loss (benefit) expense Net interest income after credit loss (benefit) expense Noninterest income: Investment services and trust activities Service charges and fees Card revenue Loan revenue Bank-owned life insurance Insurance commissions Investment securities gains, net Other Total noninterest income Noninterest expense: Compensation and employee benefits Occupancy expense of premises, net Equipment Legal and professional Data processing Marketing Amortization of intangibles FDIC insurance Communications Foreclosed assets, net Goodwill impairment Other Years Ended December 31, 2020 2019 2021 $ 141,036 25,692 9,947 91 176,766 $ 158,656 17,610 8,259 262 184,787 $ 163,163 13,132 5,696 450 182,441 13,198 551 6,736 20,485 156,281 (7,336) 163,617 11,675 6,259 7,015 12,948 2,162 - 242 2,152 42,453 69,937 9,274 7,816 5,256 5,216 4,022 5,357 1,572 1,332 233 - 6,577 116,592 89,478 23,919 914 6,990 31,823 152,964 28,369 124,595 9,632 6,178 5,719 10,185 2,226 - 184 4,496 38,620 66,397 9,348 7,865 6,153 5,362 3,815 6,976 1,858 1,746 150 31,500 8,723 149,893 13,322 29,927 1,847 7,017 38,791 143,650 7,158 136,492 8,040 7,452 5,594 3,789 1,877 734 90 3,670 31,246 65,660 8,647 7,717 8,049 4,579 3,789 5,906 690 1,701 580 - 10,217 117,535 50,203 Income tax expense Net income Earnings per Common Share: Basic Diluted 19,992 69,486 $ 6,699 6,623 $ 6,573 43,630 $ $ $ 4.38 4.37 $ $ 0.41 0.41 $ $ 2.93 2.93 Should be read in conjunction with the consolidated financial statements and notes thereto included in Part II, Item 8 of the Company's Form 10-K for the fiscal year ended December 31, 2021. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (dollars in thousands, except per share amounts) Company Leadership Balance at December 31, 2018 $ 12,463 $ 187,813 $ 168,951 $ (6,499) $ (5,661) $ 357,067 Common Stock Additional Paid-in Capital Accumulated Other Retained Earnings Treasury Comprehensive Income (Loss) Stock Total Net income Other comprehensive income Issuance of common stock for acquisition of ATBancorp (4,117,536 shares), net of offering expenses of $323 and liquidity discount of $2,355 Release/lapse of restriction on RSUs (31,354 shares, net) Repurchase of common stock (166,729 shares) Share-based compensation Dividends paid on common stock ($0.8100 per share) Balance at December 31, 2019 Cumulative effect of change in accounting principle Net income Other comprehensive income Acquisition fair value finalization Release/lapse of restriction on RSUs (34,032 shares, net) Repurchase of common stock (179,428 shares) Share-based compensation Dividends paid on common stock ($0.8800 per share) Balance at December 31, 2020 Net income Other comprehensive loss Release/lapse of restriction on RSUs (49,907 shares, net) Repurchase of common stock (395,540 shares) Share-based compensation Dividends paid on common stock ($0.9000 per share) Balance at December 31, 2021 - - - - 43,630 - 4,118 109,236 - - - - - 10,033 43,630 10,033 - - - - 16,581 $ (815) - 1,156 - 297,390 $ - - - (11,476) 201,105 $ 712 (4,679) - - (10,466) $ - - - - 4,372 $ - - - - - - - - 16,581 $ - - - 2,355 (988) - 1,380 - 300,137 $ (5,362) 6,623 - - - - - (14,175) 188,191 $ - - - - 839 (4,624) - - (14,251) $ - - - - - - 16,581 $ - - (1,350) - 2,153 - 300,940 $ 69,486 - (30) - - (14,282) 243,365 $ - - 1,259 (11,554) - - (24,546) $ - - 20,220 - - - - - 24,592 $ - (33,457) - - - - (8,865) $ 113,354 (103) (4,679) 1,156 (11,476) 508,982 $ (5,362) 6,623 20,220 2,355 (149) (4,624) 1,380 (14,175) 515,250 $ 69,486 (33,457) (121) (11,554) 2,153 (14,282) 527,475 $ Jim M. Cantrell—Senior Executive Vice President & Chief Investment Officer, Treasurer Len D. Devaisher—President & Chief Operating Officer Barb A. Finney—Senior Vice President & Chief Operations Officer Charlie N. Funk—Chief Executive Officer Soni J. Harney—Senior Vice President & Chief Human Resources Officer John J. Henk—Senior Vice President & Chief Information Officer Peggy L. Hudson—Senior Vice President & Chief Marketing Officer David E. Lindstrom—Executive Vice President, Retail Banking Susan M. Moore—Executive Vice President & Chief Risk Officer Barry S. Ray—Senior Executive Vice President & Chief Financial Officer Gary L. Sims— Executive Vice President & Chief Credit Officer Chase L. Stafford—Executive Vice President, Commercial Banking Greg W. Turner—Executive Vice President, Wealth Management & Corporate Communications Should be read in conjunction with the consolidated financial statements and notes thereto included in Part II, Item 8 of the Company's Form 10-K for the fiscal year ended December 31, 2021. Share Price 2021 First Quarter Second Quarter Third Quarter Fourth Quarter 2020 First Quarter Second Quarter Third Quarter Fourth Quarter High Low $32.93 $32.14 $30.80 $34.33 $35.88 $22.71 $21.24 $25.47 $24.50 $28.52 $27.52 $30.07 $16.57 $16.20 $16.80 $17.78 Cash Dividend Declared $ $ $ $ 0.2250 0.2250 0.2250 0.2250 $ $ $ $ 0.2200 0.2200 0.2200 0.2200 2019 First Quarter Second Quarter Third Quarter Fourth Quarter High Low Cash Dividend Declared $32.05 $29.54 $31.58 $37.05 $25.13 $26.02 $27.19 $29.06 $ $ $ $ 0.2025 0.2025 0.2025 0.2025 MidWestOne Financial Group, Inc. 2021 Annual Report Take care of our customers... and those who should be. Transfer Agent/Divided Paying Agent American Stock Transfer & Trust Company, LLC 6201 15th Avenue Brooklyn, New York 11219 General Counsel Barack Ferrazzano Kirschbaum & Nagleberg LLP 200 West Madison Street, Suite 3900 Chicago, Illinois 60606-3465 Independent Registered Public Accounting Firm RSM US, LLP 400 Locust Street, Suite 640 Des Moines, Iowa 50309 MidWestOne Financial Group, Inc. Corporate Headquarters 102 S. Clinton Street Iowa City, IA 52240 800.247.4418 MidWestOne.bank NASDAQ Symbol: MOFG ©2022 MidWestOne Financial Group, Inc. 

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