MidWestOne Financial Group soars 35% after beating earnings expectations

Investing.com -- MidWestOne Financial Group, Inc. (NASDAQ:MOFG) saw its stock surge 35% in after-hours trading Thursday after reporting third-quarter earnings that exceeded analyst expectations, despite a slight revenue miss.

The Iowa-based bank reported adjusted earnings of $0.87 per share for the third quarter of 2025, beating the analyst consensus of $0.80. Revenue came in at $61.26 million, slightly below the consensus estimate of $63.06 million. The company’s net income reached $17.0 million, with adjusted earnings of $18.1 million.

MidWestOne’s performance showed notable improvement in several key metrics. Net interest margin remained stable at 3.57% compared to the previous quarter, while the company achieved annualized loan growth of 3.5% and a 1.7% increase in total deposits from the linked quarter.

"The third quarter of 2025 saw the power of our team and their dedicated focus on our clients and the execution of our strategic initiatives come to fruition," said Charles (Chip) Reeves, Chief Executive Officer. "Return on average assets reached 1.09%, driven by solid loan and deposit growth, expanded noninterest income and disciplined expense management."

The bank’s credit quality showed improvement, with the criticized loans ratio decreasing 16 basis points to 4.99% and nonperforming loans ratio improving 17 basis points to 0.68%. The company also reported a 4.3% increase in tangible book value per share to $24.96.

Year-over-year, MidWestOne saw its commercial and industrial loan portfolio grow by 10.9%, while noninterest bearing deposit balances increased 4.4%. The company’s efficiency ratio was 58.21% for the quarter.

MidWestOne also announced a partnership with Nicolet Bankshares, Inc., which Reeves described as creating "the pre-eminent Midsize bank in the Upper Midwest."

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