MidWestOne Financial Group, Inc. has released its financial results for the third quarter of 2025. The company reported a net income of $17.0 million, or $0.82 per diluted common share, with adjusted earnings of $18.1 million, or $0.872 per common share. Noninterest income was $10.3 million, while noninterest expense was $37.6 million. The efficiency ratio was reported at 58.21%.
The net interest margin (tax equivalent) was 3.57%, while core net interest margin expanded 1 basis point to 3.50%. Annualized loan growth was 3.5%, and total deposits increased by 1.7% from the linked quarter. Tangible book value per share increased by 4.3%.
The criticized loans ratio improved by 16 basis points to 4.99%, and the nonperforming loans ratio improved by 17 basis points to 0.68%. The common equity tier 1 ("CET1") capital ratio improved by 8 basis points to 11.10%.
Comparing the third quarter of 2025 to the second quarter, the company's net interest income increased by $1.0 million, primarily due to higher earning asset volumes. The tax equivalent net interest margin remained at 3.57%. Noninterest income for the third quarter of 2025 compared to the linked quarter was stable at $10.3 million, with increases in investment services and trust activities revenue and service charges and fees, partially offset by a decline in loan revenue.
Noninterest expense for the third quarter of 2025 increased by $1.9 million from the linked quarter, primarily due to increases in compensation and employee benefits, other expense, and foreclosed assets, net. The effective tax rate was reported at 20.8% in the third quarter of 2025.
In terms of the balance sheet, total assets were $6.25 billion at September 30, 2025, with loans held for investment at $4.42 billion and investment securities at $1.18 billion. Total deposits at September 30, 2025 were $5.48 billion, increasing by $90.9 million from the linked quarter. Borrowed funds were reported at $98.0 million at September 30, 2025.
MidWestOne Financial Group, Inc. continues to show growth and improvement across various financial metrics, with a focus on increasing net interest income, stable noninterest income, and effective expense management. CEO Charles (Chip) Reeves expressed excitement about the future and the company's strategic initiatives that have borne fruit in the third quarter of 2025. The market has reacted to these announcements by moving the company's shares -0.46% to a price of $28.37. Check out the company's full 8-K submission here.
