Midwestone Financial Group (MOFG) has reported 53.02 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $3.87 million, or $0.34 a share in the quarter, compared with $8.24 million, or $0.72 a share for the same period last year. On an adjusted basis, net profit for the quarter was $4.47 million, when compared with $8.98 million in the last year period. Revenue during the quarter dropped 18.96 percent to $25.51 million from $31.48 million in the previous year period. Net interest income for the quarter dropped 6.83 percent over the prior year period to $24.53 million. Non-interest income for the quarter fell 13.83 percent over the last year period to $5.72 million.
Midwestone Financial Group has made provision of $4.74 million for loan losses during the quarter, up 218.26 percent from $1.49 million in the same period last year.
Net interest margin contracted 29 basis points to 3.68 percent in the quarter from 3.97 percent in the last year period. Efficiency ratio for the quarter deteriorated to 63.73 percent from 62.43 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"During the fourth quarter we dealt with three loans that had shown gradual deterioration as 2016 progressed, but experienced an impairment triggering event in the fourth quarter of 2016, and two loans that had unexpected credit deterioration, during the quarter," stated president and chief executive officer, Charles N. Funk. "We addressed the situation by increasing the loan loss provision in the fourth quarter. As 2017 begins, we have put 2016 behind us and look forward to better financial results in the new year."
Liabilities outpace assets growthTotal assets stood at $3,079.58 million as on Dec. 31, 2016, up 3.34 percent compared with $2,979.98 million on Dec. 31, 2015. On the other hand, total liabilities stood at $2,774.12 million as on Dec. 31, 2016, up 3.37 percent from $2,683.80 million on Dec. 31, 2015. Loans outpace deposit growthNet loans stood at $2,143.29 million as on Dec. 31, 2016, up 0.51 percent compared with $2,132.52 million on Dec. 31, 2015. Deposits stood at $2,480.45 million as on Dec. 31, 2016, up 0.69 percent compared with $2,463.52 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $494.59 million or 19.94 percent of total deposits on Dec. 31, 2016, compared with $559.59 million or 22.71 percent of total deposits on Dec. 31, 2015.
Investments stood at $645.91 million as on Dec. 31, 2016, up 18.37 percent or $100.25 million from year-ago. Shareholders equity stood at $305.46 million as on Dec. 31, 2016, up 3.13 percent or $9.28 million from year-ago.
Return on average assets moved down 58 basis points to 0.51 percent in the quarter from 1.09 percent in the last year period. At the same time, return on average equity decreased 621 basis points to 4.98 percent in the quarter from 11.19 percent in the last year period.
Book value per share was $26.71 for the quarter, up 2.89 percent or $0.75 compared to $25.96 for the same period last year.
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