Net income rises for MidWestOne
Oct 28, 2012 (Menafn - The Hawk Eye - McClatchy-Tribune Information Services via COMTEX) --MidWestOne Financial Group Inc. reported results for its three and nine months ended Sept. 30. Net income for the third quarter of 2012 rose to 4.5 million, compared with 3.8 million for the same period last year. Net income available to common shareholders for the third quarter rose to 4.5 million, or 0.52 per diluted share, compared with net income available to common shareholders of 3.6 million, or 0.42 per diluted share, for the third quarter of 2011.
Net income for the third quarter of 2012 was higher than the same period in 2011 primarily due to:
--A 10.6 percent increase in net interest income.
--A 23.3 percent decrease in the provision for loan losses.
--Partially offset by a decrease of 8.5 percent in noninterest income.
Net income for the first nine months of 2012 was 12.4 million, a 2.4 million, or 24.4 percent, increase compared to 10 million of net income for the same period of 2011. Earnings per diluted share of 1.45 and 1.08 for the comparative year-to-date periods are based on net income available to common shareholders of 12.4 million and 9.3 million, respectively.
The increase in net income primarily was the result of higher net interest income after provision for loan loss expense and increased noninterest income, mainly due to the gain on the sale of the company's home mortgage center location realized in the second quarter of 2012.
These increases were partially offset by a 6.1 million loss on the termination of the company's pension plan, which also was recognized in the second quarter of 2012. After excluding the 4 million gain on the sale of the home mortgage center and the 6.1 million loss on the termination of the pension, adjusted diluted earnings per share for the first nine months of 2012 were 1.60.
"This was another strong quarter of earnings at MidWestOne," stated president and Chief Executive Officer Charles N. Funk. "We continue to benefit from moderate loan growth, improved loan pool performance and adequate expense control. We are also benefiting from improved performance in our noninterest income areas year-to-date, primarily at the home mortgage center, our trust department and investment services department. We believe we are on track to set another company record in terms of annual earnings per share for 2012."
MidWestOne Financial Group Inc. is a financial holding company headquartered in Iowa City. The company's bank subsidiary, MidWestOne Bank, also is headquartered in Iowa City. MidWestOne Bank has office locations in Belle Plaine, Burlington, Cedar Falls, Conrad, Coralville, Davenport, Fairfield, Fort Madison, Iowa City, Melbourne, North English, North Liberty, Oskaloosa, Ottumwa, Parkersburg, Pella, Sigourney, Waterloo and West Liberty.
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