MidWestOne Financial Group, headquartered in Iowa City, reported a drop in net income and diluted earnings per share for the fourth quarter of 2021, but net income and diluted EPS for the full year of 2021 set a new record for the bank holding company.
In its most recent report Jan. 27, MidWestOne reported net income of $14.3 million and diluted EPS of 91 cents, down from $16.3 million in net income and $1.03 in diluted EPS from the same quarter of 2020. Zacks Consensus Estimates had called for diluted EPS for the quarter of 96 cents.
For the full year, MidWestOne reported a record net income of $69.5 million and diluted EPS of $4.37, compared to net income of $6.6 million and diluted EPS of 41 cents from 2020.
Excluding Paycheck Protection Program (“PPP”) loans, commercial loans totaled $2.68 billion for the year, as compared to $2.64 billion in 2020, an annualized increase of 5.5%.
“”The fourth quarter of 2021 was a solid ending to a record earnings year for MidWestOne,” MidWestOne CEO Charlie Funk said. “During the quarter, we saw good ex-PPP commercial loan growth, continued progress in wealth management, and improvements in our nonperforming loans and nonperforming assets ratios. We are pleased with the return on average tangible equity of 13.50%.”
Mr. Funk also credited mortgage loan performance for the year’s results overall.
“There is no doubt that our mortgage team contributed mightily to the record 2021 results.” he said. “In line with the rise in long-term interest rates, we see that slowing in 2022. We have continued to make headway in our previously announced acquisition of Iowa First Bancshares Corp., which is expected to close late in the first quarter or early in the second quarter of 2022. Finally, between share repurchases and the cash dividend, we returned $25.8 million to our common shareholders in 2021.