MidWestOne Financial net income jumps

IOWA CITY — MidWestOne Financial, corporate parent of MidWestOne Bank, posted sharply higher fourth-quarter 2015 earnings, reflecting the impact of the acquisition of Central Bancshares on May 1.

The Iowa City-based bank holding company recorded fourth-quarter net income of $8.2 million, or 72 cents per share, compared with $3.9 million, or 46 cents per share, for the same period in 2014.

After excluding the effects of $100,000 of expenses related to the merger with Central, adjusted diluted earnings per share for the fourth quarter of 2015 were 73 cents, compared with 57 cents per share for the same period of 2014, reflecting growth of 28.1 percent.

'We continue to make significant progress with our merger integration and are pleased with the 2015 financial results,' said Charles Funk, MidWestOne president and chief executive officer. 'The fourth quarter saw continued robust loan growth from the Central Bank footprint, which was a key contributor to our overall results.

'As in prior quarters, the fourth quarter contained some one-time items, notably the sale of our Ottumwa location and the finalization of our historic tax credits, most of which positively impacted our results.'

Funk said MidWestOne Financial is on track to merge Central Bank into MidWestOne Bank early in the second quarter of this year.

For the year, MidWestOne Financial posted net income of $25.1 million, or $2.42 per share, compared with $18.5 million, or $2.19 per share, for 2014. The increase in net income was due primarily to the merger with Central, with higher net interest income and increased noninterest income, partially offset by increased noninterest expense and income tax expense.

Non-performing bank loans decreased from $13 million, or 1.15 percent of total bank loans, on Dec. 31, 2014, to $11.5 million, or 0.54 percent of total bank loans, on Dec. 31, 2015. Non-performing loans at the end of 2015 consisted of $4 million in nonaccrual loans, $7.2 million in troubled debt restructures and $300,000 in loans past due 90 days or more and still accruing interest.