MidWestOne profit rises with merger

MidWestOne Financial Group, Iowa City-based corporate parent of MidWestOne Bank, posted higher third-quarter earnings reflecting gains from its merger with Central Bancshares.

Net income for the quarter that ended on Sept. 30 totaled $7.6 million, or 67 cents per share, up from $4.9 million, or 59 cents per share, in the third quarter of 2014.

Excluding the effects of $200,000 of expenses related to the merger with Central Bancshares, adjusted earnings per share for the third quarter of 2015 were 68 cents. MidWestOne Financial posted a 94.1 percent increase in net interest income and a 36.3 percent gain in noninterest income. The bank holding company also recorded an 84.1 percent increase in noninterest expense, primarily due to an increase in salaries and employee benefits associated with the Central Bancshares acquisition.

'Third quarter earnings were solid for MidWestOne,” said Charles Funk, president and CEO in a news release. 'We continue to grow our loan portfolio, and deposit levels began to increase at the end of the quarter.

'As in past quarters, there are atypical income statement items that affected the company's third quarter numbers. We do not regard any of them as unusual, and most are associated with the recent merger with Central Bancshares.”

Funk said work continues on preparing for the planned merger of Central Bank into MidWestOne Bank in the first half of 2016.

MidWestOne Financial completed its $64 million merger with Central Bancshares of Golden Valley, Minn., on May 1, 2015. Central Bank operates 20 branches in Minneapolis and St. Paul, Minn., and western Wisconsin, and expanded into Florida two years ago.

Central Bank was an active buyer of failed banks in 2011 and 2012.