MidWestOne reports 16 percent increase in net income for first quarter
Iowa City-based MidWestOne Financial Group Inc. reported first-quarter profit of $7.8 million, or 64 cents per share, compared with $6.7 million, or 58 cents per share, in the same period last year. The increase in net income was attributed to a $1.2 million, or 4.9 percent, increase in net interest income, due primarily to a $2.3 million increase in interest and fees on loans, partially offset by an increase of $900,000 in interest expense on deposits; a $500,000, or 21.6 percent, decrease in income tax expense, primarily due to the reduction in the corporate federal income tax rate to 21 percent for 2018 compared with 35 percent for 2017; and an increase of $200,000, or 2.4 percent, in noninterest income. Loans grew $39.5 million during the quarter. Earnings were partially offset by an increase of $800,000, or 77.7 percent, in the provision for loan losses, due primarily to loan growth and indicated weakness in the agricultural sector, according to a release. Click here for the full report.