Midwestone Financial Group (MOFG) has reported 18.29 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $6.22 million, or $0.54 a share in the quarter, compared with $7.62 million, or $0.67 a share for the same period last year. On an adjusted basis, net profit for the quarter was $6.85 million, when compared with $8.14 million in the last year period. Revenue during the quarter went down marginally by 2.62 percent to $29.29 million from $30.08 million in the previous year period. Net interest income for the quarter dropped 8.14 percent over the prior year period to $24.58 million. Non-interest income for the quarter rose 4.65 percent over the last year period to $5.71 million.
Midwestone Financial Group has made provision of $1 million for loan losses during the quarter, down 53.06 percent from $2.14 million in the same period last year.
Net interest margin contracted 42 basis points to 3.72 percent in the quarter from 4.14 percent in the last year period. Efficiency ratio for the quarter deteriorated to 62.41 percent from 58.67 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"While the third quarter was challenging, we are beginning to see tangible signs of progress as we integrate our two banks and cultures into one team," stated president and chief executive officer Charles N. Funk. "The 12.07% return on tangible equity we achieved for the quarter is a good start toward building a consistent earnings stream. Additionally, we ended the quarter with a large pipeline of commercial loans. We continue to make progress to rationalize our expenses, including having made significant progress in amortizing the balance of the FDIC indemnification receivable, which has had a negative impact on 2016 earnings. We continue to believe our future is very promising."
Assets, liabilities remain almost stable
Total assets stood at $3,001.97 million as on Sep. 30, 2016, up 0.68 percent compared with $2,981.84 million on Sep. 30, 2015. On the other hand, total liabilities were almost flat at $2,692.39 million as on Sep. 30, 2016, when compared with the last year period.
Loans, deposits remain almost stable
Net loans stood at $2,120.44 million as on Sep. 30, 2016, up 0.10 percent compared with $2,118.34 million on Sep. 30, 2015. Deposits stood at $2,445.93 million as on Sep. 30, 2016, down 0.90 percent compared with $2,468.08 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $493.82 million or 20.19 percent of total deposits on Sep. 30, 2016, compared with $532.06 million or 21.56 percent of total deposits on Sep. 30, 2015.
Investments stood at $587.35 million as on Sep. 30, 2016, up 13.40 percent or $69.39 million from year-ago. Shareholders equity stood at $309.58 million as on Sep. 30, 2016, up 6.51 percent or $18.92 million from year-ago.
Return on average assets moved down 20 basis points to 0.83 percent in the quarter from 1.03 percent in the last year period. At the same time, return on average equity decreased 249 basis points to 8.06 percent in the quarter from 10.55 percent in the last year period.
Book value per share was $27.07 for the quarter, up 6.24 percent or $1.59 compared to $25.48 for the same period last year.
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