GlobeNewswire Inc | Nov 1, 2021 04:15PM EDT

November 01, 2021

Third Quarter Summary1

-- Net income for the third quarter was $16.3 million, or $1.03 per diluted common share.Total revenue, net of interest expense, of $49.5 million.Credit loss benefit of $1.1 million.Noninterest expense of $29.8 million. -- Excluding Paycheck Protection Program ("PPP") loans, commercial loans were $2.64 billion2, as compared to $2.61 billion2 at the end of the second quarter of 2021 (the "linked quarter"), an increase of 1.2%. -- Efficiency ratio was 56.34%2. -- Nonperforming assets declined 19.0% and the net charge-off ratio was a recovery of 10 basis points ("bps"). -- Cost of average total deposits decreased 2 bps to 0.26% and cost of funds decreased 3 bps to 0.37%. -- On November 1, 2021, entered into a definitive agreement pursuant to which the Company will acquire Iowa First Bancshares Corp. and its banking subsidiaries in Muscatine and Fairfield, Iowa.

IOWA CITY, Iowa, Nov. 01, 2021 (GLOBE NEWSWIRE) -- MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (we, our, or the "Company) today reported net income for the third quarter of 2021 of $16.3 million, or $1.03 per diluted common share, compared to net income of $17.3 million, or $1.08 per diluted common share, for the linked quarter.

CEO COMMENTARYCharles Funk, Chief Executive Officer of the Company, commented, "We are excited to expand our footprint to Muscatine and to grow our market share in Fairfield, the seat of Jefferson County, with MidWestOne's acquisition of Iowa First Bancshares Corp. ("IOFB"). With this acquisition, we will have the number one deposit market share in both Muscatine and Jefferson counties. We believe MidWestOne's brand of banking will fit very will with IOFB's brand, and we look forward to meeting our new customers and employees over the next few months. Notably, this transaction will provide good earnings momentum for 2022 and beyond.

The third quarter of 2021 was a strong one for our Company with earnings of $1.03 per diluted common share, a 12.00% return on average equity, and a 15.06% return on average tangible equity2. In a very tough operating environment, we were able to increase our commercial loans, excluding PPP loans, by 1.2%. We are also extremely pleased with the progress being made in asset quality. The year over year decline of 15 bps in our nonperforming loans ratio to 1.03% and the 30 bps decline in the net charge-off ratio to a net recovery ratio of 10 bps are especially impressive. Our trust and investment services group continued to build its business in the third quarter of 2021 and is on track to achieve record revenues in 2021. While we saw our mortgage loan closings trail off in the third quarter of 2021, we nonetheless expect a solid fourth quarter from this business line. With respect to capital, we continue to find value in repurchasing our shares at a price just above our tangible book value per share. Finally, our bankers continue to assist our customers in working through PPP loan forgiveness. We anticipate another sizeable amount of PPP loan forgiveness in the fourth quarter."

1 Third Quarter Summary compares to the linked quarter unless noted.2 Non-GAAP measure. See the separate Non-GAAPMeasures section for a reconciliation to the most directly comparable GAAP measure.

FINANCIAL Three Months Ended Nine Months EndedHIGHLIGHTS(Dollars inthousands, September 30, June 30, September 30, September 30, September 30,except pershareamounts) 2021 2021 2020 2021 2020

Netinterest $ 40,340 $ 38,505 $ 37,809 $ 117,462 $ 113,927 incomeNoninterest 9,182 10,218 9,570 31,224 27,994 incomeTotalrevenue,net of 49,522 48,723 47,379 148,686 141,921 interestexpenseCredit loss(benefit) (1,080 ) (2,144 ) 4,992 (7,958 ) 31,410 expenseNoninterest 29,778 28,670 59,939 86,148 117,978 expenseIncome(loss)before 20,824 22,197 (17,552 ) 70,496 (7,467 ) income taxexpenseIncome tax 4,513 4,926 2,272 15,266 2,620 expenseNet income $ 16,311 $ 17,271 $ (19,824 ) $ 55,230 $ (10,087 ) (loss)Dilutedearnings $ 1.03 $ 1.08 $ (1.23 ) $ 3.46 $ (0.63 ) (loss) pershare Return onaverage 1.11 % 1.18 % (1.48 ) % 1.29 % (0.27 ) %assetsReturn onaverage 12.00 % 13.24 % (14.88 ) % 14.03 % (2.60 ) %equityReturn onaverage 15.06 % 16.75 % 12.56 % 17.69 % 8.58 %tangibleequity^(1)Efficiency 56.34 % 54.83 % 55.37 % 53.95 % 55.95 %ratio^(1)^(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliationto the most directly comparable GAAP measure.

COVID-19 UPDATE

Loan Modifications

As of September30, 2021, the outstanding balance of loans modified as a result of the COVID-19 pandemic totaled $4.5 million, a decline of 78.6% from $21.0 million at June 30, 2021. The decline from the end of the second quarter of 2021 was due largely to one commercial real estate loan where the borrower resumed making payments.

PPP Loans

The following table presents PPP loan measures as of the dates indicated:

September 30, 2021 June 30, 2021 Round 1^(3) Round 2^(3) Total Round 1^(3) Round 2^(3) Total(Dollars in millions) # $ # $ # $ # $ # $ # $Total PPP Loans 2,681 348.5 2,175 149.3 4,856 497.8 2,681 348.5 2,175 149.3 4,856 497.8 FundedPPP Loan Forgiveness^ 2,478 323.7 1,514 72.9 3,992 396.6 2,247 285.7 441 12.3 2,688 298.0 (1)Outstanding PPP Loans 184 16.3 661 73.1 845 89.4 416 53.9 1,734 130.5 2,150 184.4 ^(2) Unearned Income $0.1 $2.8 $2.9 $0.5 $6.0 $6.5^(1) Excluded from the PPP Loan Forgiveness is $9.1 million as ofSeptember30, 2021 and $8.9 million as of June30, 2021 of PPP loans thatwere paid off by the borrower prior to forgiveness.^(2) Outstanding loans are presented net of unearned income.^(3) Round 1 refers to PPP loan applications from the first wave of fundingmade available through the CARES Act, which was signed into law by PresidentTrump in March 2020. Round 2 refers to the second wave of PPP funding madeavailable through the Consolidated Appropriations Act, 2021, which was signedinto law by President Trump in December 2020 and extended by the PPP ExtensionAct of 2021, which was signed into law by President Biden in March 2021.

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income increased to $40.3 million in the third quarter of 2021 from $38.5 million in the second quarter of 2021 due primarily to increased PPP loan fee accretion stemming from loan forgiveness. Net PPP loan fee accretion was $3.6 million in the third quarter of 2021 compared to $2.5 million in the linked quarter.

Average interest earning assets decreased $32.5 million to $5.49 billion in the third quarter of 2021, compared to the second quarter of 2021, which includes a $90.4 million reduction in average PPP loan balances due to forgiveness. Adjusting for the $90.4 million in average PPP loan balance decline, average interest earning assets increased $57.9 million, primarily due to non-PPP loan growth.

The Company's tax equivalent net interest margin was 3.00% in the third quarter of 2021 compared to 2.88% in the linked quarter due to higher earning asset yields and lower funding costs. Total earning asset yields increased 9 bps from the linked quarter due primarily to the increased PPP net loan fee accretion described above. The cost of interest bearing liabilities decreased 3 bps to 0.46%, primarily as a result of interest bearing deposit costs of 0.32%, which declined 3 bps from the linked quarter.

Noninterest Income

Noninterest income for the third quarter of 2021 decreased $1.0 million, or 10.1%, from the linked quarter. The decrease was primarily due to a $1.2 million decrease in loan revenue. The decline in loan revenue included a $0.9 million reduction in mortgage origination fees stemming from lower gain on sale margins and decreased volumes of home mortgage loans as well as a $0.4 million decline in the fair value of our mortgage servicing rights.

The following table presents details of noninterest income for the periods indicated:

Three Months EndedNoninterest Income September June 30, September 30, 30,(In thousands) 2021 2021 2020Investment services and trust $ 2,915 $ 2,809 $ 2,361 activitiesService charges and fees 1,613 1,475 1,491 Card revenue 1,820 1,913 1,600 Loan revenue 1,935 3,151 3,252 Bank-owned life insurance 532 538 530 Investment securities gains, net 36 42 106 Other 331 290 230 Total noninterest income $ 9,182 $ 10,218 $ 9,570

Noninterest Expense

Noninterest expense for the third quarter of 2021 increased $1.1 million, or 3.9%, from the linked quarter primarily due to an increase of $0.7 million in 'other' noninterest expense and a $0.3 million increase in occupancy expense of premises, net. The increase in 'other' noninterest expense was primarily due to expenses of $0.7 million related to the settlement of litigation claims. The increase in occupancy expense of premises, net was primarily attributable to the disposal and write-down of fixed assets totaling $0.3 million. The increase in noninterest expense, as well as the decline in noninterest income noted above, were the primary drivers of the increase in the efficiency ratio, which increased 1.51 percentage points to 56.34%, as compared to the linked quarter efficiency ratio of 54.83%.

The following table presents details of noninterest expense for the periods indicated:

Three Months EndedNoninterest Expense September 30, June 30, September 30,(In thousands) 2021 2021 2020Compensation and employee benefits $ 17,350 $ 17,404 $ 16,460 Occupancy expense of premises, net 2,547 2,198 2,278 Equipment 1,973 1,861 1,935 Legal and professional 1,272 1,375 1,184 Data processing 1,406 1,347 1,308 Marketing 1,022 873 857 Amortization of intangibles 1,264 1,341 1,631 FDIC insurance 435 245 470 Communications 275 371 428 Foreclosed assets, net 43 136 13 Other 2,191 1,519 1,875 Total core noninterest expense $ 29,778 $ 28,670 $ 28,439 Goodwill impairment ? ? 31,500 Total noninterest expense $ 29,778 $ 28,670 $ 59,939

Income Taxes

The effective income tax rate was 21.7% in the third quarter of 2021 compared to 22.2% in the linked quarter. The effective income tax rate in the third quarter of 2021 reflected income tax expense based on the statutory rate and state income taxes, net of federal income tax benefits, primarily due to the net income earned during the quarter, offset by benefits related to tax-exempt interest and bank-owned life insurance. The effective income tax rate for the full year 2021 is expected to be in the range of 20-22%.

BALANCE SHEET, LIQUIDITY AND As of or for the Three Months EndedCAPITAL HIGHLIGHTS(Dollars in millions, except per September June 30, Septembershare amounts) 30, 30, 2021 2021 2020Ending Balance Sheet Total assets $ 5,875.4 $ 5,749.2 $ 5,330.7 Loans held for investment, net of 3,268.6 3,330.2 3,537.4 unearned incomeTotal securities held for 2,136.9 2,072.5 1,366.3 investmentTotal deposits 4,957.8 4,792.7 4,333.6 Average Balance Sheet Average total assets $ 5,811.2 $ 5,851.7 $ 5,311.4 Average total loans 3,356.7 3,396.6 3,576.6 Average total deposits 4,882.8 4,875.3 4,317.2 Funding and Liquidity Short-term borrowings $ 187.5 $ 212.3 $ 183.9 Long-term debt 154.9 169.8 245.5 Loans to deposits ratio 65.93 % 69.48 % 81.63 %Equity Total shareholders' equity $ 530.3 $ 530.3 $ 499.1 Common equity ratio 9.03 % 9.22 % 9.36 %Tangible common equity^(1) 446.7 445.4 409.8 Tangible common equity ratio^(1) 7.71 % 7.86 % 7.82 %Per Share Data Book value $ 33.71 $ 33.22 $ 31.00 Tangible book value^(1) $ 28.40 $ 27.90 $ 25.45 (1) Non-GAAP Measure. See the Non-GAAP Measures section for a reconciliation tothe most directly comparable GAAP measure.

Loans Held for Investment

Loans held for investment, net of unearned income, decreased $61.5 million, or 1.8%, to $3.27 billion from June30, 2021, driven primarily by PPP loan forgiveness and partially offset by higher revolving line of credit utilization, which increased 2% from the linked quarter to 32% at September30, 2021 and new loan production.

The following table presents the composition of loans held for investment, net of unearned income, as of the dates indicated:

Loans Heldfor September 30, 2021 June 30, 2021 September 30, 2020 Investment Balance % of % of % of (dollars in Total Balance Total Balance Total thousands)Commercialand $ 927,258 28.4 % $ 982,092 29.5 % $ 1,103,102 31.2 %industrialAgricultural 106,356 3.3 107,834 3.2 129,453 3.7 Commercial real estateConstructionand 146,417 4.5 168,070 5.0 191,423 5.4 developmentFarmland 130,936 4.0 134,877 4.1 152,362 4.3 Multifamily 273,347 8.4 255,826 7.7 235,241 6.7 Other 1,148,658 35.0 1,147,016 34.4 1,128,009 31.8 Totalcommercial 1,699,358 51.9 1,705,789 51.2 1,707,035 48.2 real estateResidential real estateOne-to-fourfamily first 334,267 10.2 332,117 10.0 371,390 10.5 liensOne-to-fourfamily 133,869 4.1 136,464 4.1 150,180 4.2 junior liensTotalresidential 468,136 14.3 468,581 14.1 521,570 14.7 real estateConsumer 67,536 2.1 65,860 2.0 76,272 2.2 Loans heldforinvestment, $ 3,268,644 100.0 % $ 3,330,156 100.0 % $ 3,537,432 100.0 %net ofunearnedincome Totalcommitments $ 950,157 $ 959,696 $ 893,147 to extendcredit

Credit Loss Expense & Allowance for Credit Losses

The following table shows the activity in the allowance for credit losses for the periods indicated:

Three Months Ended Nine Months EndedAllowance for September September September SeptemberCredit Losses 30, June 30, 30, 30, 30,Roll Forward(In 2021 2021 2020 2021 2020thousands)Beginning $ 48,000 $ 50,650 $ 55,644 $ 55,500 $ 29,079 balanceCumulativeeffect ofchange in ? ? ? ? 3,984 accountingprinciple -CECLCharge-offs (234 ) (840 ) (2,188 ) (2,077 ) (5,788 ) Recoveries 1,114 434 347 2,235 882 Netrecoveries 880 (406 ) (1,841 ) 158 (4,906 ) (charge-offs)Credit loss(benefit)expense (980 ) (2,244 ) 4,697 (7,758 ) 30,343 related toloansEnding $ 47,900 $ 48,000 $ 58,500 $ 47,900 $ 58,500 balance

As of September30, 2021, the allowance for credit losses ("ACL") was $47.9 million, or 1.47% of loans held for investment, net of unearned income, compared with $48.0 million, or 1.44% of loans held for investment, net of unearned income, at June30, 2021. After excluding net PPP loans, the ACL as a percentage of loans held for investment, net of unearned income, decreased to 1.51%(1) as of September30, 2021, from 1.53%(1) at June30, 2021. The decline in the ACL during the third quarter reflected overall improvements in the economic forecast and stabilization of the credit profile outlook when compared to the linked quarter.

(1)Non-GAAP Measure. See the Non-GAAPMeasures section for a reconciliation to the most directly comparable GAAP measure.

Deposits

The following table presents the composition of our deposit portfolio as of the dates indicated:

Deposit September 30, 2021 June 30, 2021 September 30, 2020 Composition(dollars in Balance % of Balance % of Balance % of thousands) Total Total TotalNoninterestbearing $ 999,887 20.2 % $ 952,764 19.9 % $ 864,504 19.9 %depositsInterestchecking 1,464,389 29.5 1,414,942 29.6 1,230,146 28.5 depositsMoney market 989,095 20.0 936,683 19.5 871,336 20.1 depositsSavings 616,924 12.4 596,199 12.4 486,876 11.2 depositsTotalnon-maturity 4,070,295 82.1 3,900,588 81.4 3,452,862 79.7 depositsTimedeposits of 522,907 10.5 538,331 11.2 617,229 14.2 $250 andunderTimedeposits 364,579 7.4 353,747 7.4 263,550 6.1 over $250Total time 887,486 17.9 892,078 18.6 880,779 20.3 depositsTotal $ 4,957,781 100.0 % $ 4,792,666 100.0 % $ 4,333,641 100.0 %deposits

CREDIT RISK PROFILE

As of or For the Three Months EndedHighlights September 30, June 30, September 30,(dollars in thousands) 2021 2021 2020Credit loss (benefit)expense related to $ (980 ) $ (2,244 ) $ 4,697 loansNet (recoveries) $ (880 ) $ 406 $ 1,841 charge-offsNet (recovery) (0.10 ) % 0.05 % 0.20 %charge-off ratio^(1) At period-end Pass $ 3,069,314 $ 3,102,688 $ 3,230,611 Special Mention / 82,871 115,414 176,702 WatchClassified 116,459 112,054 130,119 Total loans held for $ 3,268,644 $ 3,330,156 $ 3,537,432 investment, netClassified loans ratio 3.56 % 3.36 % 3.68 %^(2) Nonaccrual loans held $ 33,657 $ 40,764 $ 39,071 for investmentAccruing loanscontractually past due 51 665 2,593 90 days or moreTotal nonperforming 33,708 41,429 41,664 loansForeclosed assets, net 454 755 724 Total nonperforming $ 34,162 $ 42,184 $ 42,388 assetsNonperforming loans 1.03 % 1.24 % 1.18 %ratio^(3)Nonperforming assets 0.58 % 0.73 % 0.80 %ratio^(4)Allowance for credit $ 47,900 $ 48,000 $ 58,500 lossesAllowance for credit 1.47 % 1.44 % 1.65 %losses ratio^(5)Adjusted allowance forcredit losses ratio^ 1.51 % 1.53 % 1.82 %(6)^(1) Net (recovery) charge-off ratio is calculated as annualized net(recoveries) charge-offs divided by average loans held for investment, net ofunearned income, during the period.^(2) Classified loans ratio is calculated as classified loans divided by loansheld for investment, net of unearned income, at the end of the period.^(3) Nonperforming loans ratio is calculated as total nonperforming loansdivided by loans held for investment, net of unearned income, at the end of theperiod.^(4) Nonperforming assets ratio is calculated as total nonperforming assetsdivided by total assets at the end of the period.^(5) Allowance for credit losses ratio is calculated as allowance for creditlosses divided by loans held for investment, net of unearned income, at the endof the period.^(6) Non-GAAP Measure. See the Non-GAAP Measures section for a reconciliationto the most directly comparable GAAP measure.

The following table presents a roll forward of nonperforming loans for the period indicated:

Nonperforming Loans (dollars in thousands) Nonaccrual 90+ Days Past Due & Total Still AccruingBalance at June30, 2021 $ 40,764 $ 665 $ 41,429 Loans placed on nonaccrual or90+ days past due & still 574 105 679 accruingRepayments (includinginterest applied to (5,370 ) ? (5,370 ) principal)Loans returned to accrual (2,256 ) (666 ) (2,922 ) status or no longer past dueCharge-offs (50 ) (53 ) (103 ) Transfers to foreclosed (5 ) ? (5 ) assetsBalance at September30, 2021 $ 33,657 $ 51 $ 33,708

CAPITAL

Effective March 31, 2020, we elected the 5-year phase-in option allowed under the interim final rule (IFR) issued by the federal banking regulatory agencies that delays the estimated impact on regulatory capital stemming from the implementation of the current expected credit losses (CECL) accounting standard. The IFR allows the add back of 100% of the capital effect from the day one CECL transition adjustment and 25% of the capital effect from subsequent increases in the allowance for credit losses through the two-year period ending December 31, 2021. This cumulative amount will then be reduced from capital over the subsequent three-year period.

Regulatory Capital Ratios September June September 30, 30, 30, 2021^ (1) 2021 2020MidWestOne Financial Group, Inc. ConsolidatedTier 1 leverage ratio 8.70 % 8.50 % 8.52 %Common equity tier 1 capital ratio 10.26 % 10.26 % 9.72 %Tier 1 capital ratio 11.20 % 11.21 % 10.73 %Total capital ratio 13.58 % 13.63 % 13.56 %MidWestOne Bank Tier 1 leverage ratio 9.41 % 9.15 % 9.26 %Common equity tier 1 capital ratio 12.14 % 12.09 % 11.75 %Tier 1 capital ratio 12.14 % 12.09 % 11.75 %Total capital ratio 13.05 % 13.02 % 12.95 %(1) Capital ratios for September30, 2021 are preliminary

CORPORATE UPDATE

Iowa First Bancshares Corp. Pending Acquisition

On November 1, 2021, the Company and IOFB, the holding company of First National Bank of Muscatine (FNBM) and First National Bank in Fairfield (FNBF), jointly announced the signing of a definitive agreement pursuant to which the Company will acquire IOFB, FNBM, and FNBF. The acquisition will add to the Company's existing presence in Fairfield, Iowa and will expand the Company's footprint into Muscatine, Iowa.

Share Repurchase Program

Under the current repurchase program, the Company repurchased 235,277 shares of its common stock at an average price of $29.24 per share and a total cost of $6.9 million in the third quarter of 2021. At September30, 2021, the total amount available under the Company's current share repurchase program was $7.6 million.

Banking Office Consolidation

Effective January 27, 2022, the Company plans to consolidate its 32nd Street banking office into the nearby Main Street banking office in Dubuque, Iowa. This banking office consolidation is part of the Company's strategy to improve operating efficiency. The Company estimates the banking office consolidation will reduce its annual operating expenses by approximately $309 thousand.

Wealth Management Update

Subsequent to September 30, 2021, the Company strengthened its wealth management capabilities with the addition of an experienced wealth management team in Eastern Iowa. The team collectively has more than 120 years of experience providing wealth management services to clients and is led by an experienced wealth professional with a focus on planning services who was most recently with a super-regional bank. The team is a strong cultural fit and strategically aligns with our measured pursuit of growth in noninterest income streams.

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Tuesday, November2, 2021. To participate, please dial 866-233-3483 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until February 1, 2022, by calling 877-344-7529 and using the replay access code of 10159709. A transcript of the call will also be available on the Companys web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, Florida, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol MOFG.

Cautionary Note Regarding Forward-Looking Statements

This release contains certain forward-looking statements within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are forward-looking and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as believe, expect, anticipate, should, could, would, plans, goals, intend, project, estimate, forecast, may or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) effects of the COVID-19 pandemic, including its effects on the economic environment, our customers and our operations, including due to supply chain disruptions, as well as any changes to federal, state, or local government laws, regulations, or orders in connection with the pandemic; (2) government intervention in the U.S. financial system in response to the COVID-19 pandemic, including the effects of recent legislative, tax, accounting and regulatory actions and reforms; (3) the impact of the COVID-19 pandemic on our financial results, including possible lost revenue and increased expenses (including the cost of capital), as well as possible goodwill impairment charges; (4) the risks of mergers (including with IOFB), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (5) credit quality deterioration or pronounced and sustained reduction in real estate market values causing an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (6) the effects of interest rates, including on our net income and the value of our securities portfolio; (7) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (8) fluctuations in the value of our investment securities; (9) governmental monetary and fiscal policies; (10) changes in and uncertainty related to benchmark interest rates used to price loans and deposits, including the expected elimination of LIBOR and the adoption of a substitute; (11) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators; (12) the ability to attract and retain key executives and employees experienced in banking and financial services; (13) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (14) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (15) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (16) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (17) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (18) volatility of rate-sensitive deposits; (19) operational risks, including data processing system failures or fraud; (20) asset/liability matching risks and liquidity risks; (21) the costs, effects and outcomes of existing or future litigation; (22) changes in general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business; (23) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (24) war or terrorist activities, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (25) the effects of cyber-attacks; (26) the imposition of tariffs or other domestic or international governmental policies impacting the value of the agricultural or other products of our borrowers; and (27) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES FIVE QUARTER CONSOLIDATED BALANCE SHEETS

September 30, June 30, March 31, December 31, September 30,(In 2021 2021 2021 2020 2020thousands)ASSETS Cash and due $ 53,562 $ 52,297 $ 57,154 $ 65,078 $ 71,901 from banksInterestearning 84,952 11,124 80,924 17,409 55,421 deposits inbanksFederal funds ? 13 7,691 172 7,540 soldTotal cashand cash 138,514 63,434 145,769 82,659 134,862 equivalentsDebtsecuritiesavailable for 2,136,902 2,072,452 1,896,894 1,657,381 1,366,344 sale at fairvalueLoans held 58,679 6,149 58,333 59,956 13,096 for saleGross loansheld for 3,278,150 3,344,156 3,374,076 3,496,790 3,555,969 investmentUnearned (9,506 ) (14,000 ) (15,915 ) (14,567 ) (18,537 ) income, netLoans heldforinvestment, 3,268,644 3,330,156 3,358,161 3,482,223 3,537,432 net ofunearnedincomeAllowance for (47,900 ) (48,000 ) (50,650 ) (55,500 ) (58,500 ) credit lossesTotal loansheld for 3,220,744 3,282,156 3,307,511 3,426,723 3,478,932 investment,netPremises andequipment, 84,130 84,667 85,581 86,401 87,955 netGoodwill 62,477 62,477 62,477 62,477 62,477 Otherintangible 21,130 22,394 23,735 25,242 26,811 assets, netForeclosed 454 755 1,487 2,316 724 assets, netOther assets 152,393 154,731 155,525 153,493 159,507 Total assets $ 5,875,423 $ 5,749,215 $ 5,737,312 $ 5,556,648 $ 5,330,708 LIABILITIES Noninterestbearing $ 999,887 $ 952,764 $ 958,526 $ 910,655 $ 864,504 depositsInterestbearing 3,957,894 3,839,902 3,836,037 3,636,394 3,469,137 depositsTotal 4,957,781 4,792,666 4,794,563 4,547,049 4,333,641 depositsShort-term 187,508 212,261 175,785 230,789 183,893 borrowingsLong-term 154,860 169,839 201,696 208,691 245,481 debtOther 45,010 44,156 53,948 54,869 68,612 liabilitiesTotal 5,345,159 5,218,922 5,225,992 5,041,398 4,831,627 liabilitiesSHAREHOLDERS' EQUITYCommon stock 16,581 16,581 16,581 16,581 16,581 Additionalpaid-in 300,327 299,888 299,747 300,137 299,939 capitalRetained 232,639 219,884 206,230 188,191 175,017 earningsTreasury (22,735 ) (15,888 ) (15,278 ) (14,251 ) (12,272 ) stockAccumulatedother 3,452 9,828 4,040 24,592 19,816 comprehensiveincomeTotalshareholders' 530,264 530,293 511,320 515,250 499,081 equityTotalliabilitiesand $ 5,875,423 $ 5,749,215 $ 5,737,312 $ 5,556,648 $ 5,330,708 shareholders'equity

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES FIVE QUARTER AND YEAR TO DATE CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended Nine Months Ended(In thousands, September June 30, March 31, December 31, September 30, September 30, September 30,except per 30,share data) 2021 2021 2021 2020 2020 2021 2020Interest incomeLoans, $ 36,115 $ 34,736 $ 36,542 $ 38,239 $ 38,191 $ 107,393 $ 120,417 including feesTaxableinvestment 6,655 6,483 5,093 4,673 4,574 18,231 12,937 securitiesTax-exemptinvestment 2,428 2,549 2,555 2,529 2,360 7,532 5,730 securitiesOther 21 19 14 29 29 54 233 Total interest 45,219 43,787 44,204 45,470 45,154 133,210 139,317 incomeInterest expenseDeposits 3,150 3,409 3,608 4,265 5,296 10,167 19,654 Short-term 132 161 128 142 175 421 772 borrowingsLong-term debt 1,597 1,712 1,851 2,026 1,874 5,160 4,964 Total interest 4,879 5,282 5,587 6,433 7,345 15,748 25,390 expenseNet interest 40,340 38,505 38,617 39,037 37,809 117,462 113,927 incomeCredit loss(benefit) (1,080 ) (2,144 ) (4,734 ) (3,041 ) 4,992 (7,958 ) 31,410 expenseNet interestincome aftercredit loss 41,420 40,649 43,351 42,078 32,817 125,420 82,517 (benefit)expenseNoninterest incomeInvestmentservices and 2,915 2,809 2,836 2,518 2,361 8,560 7,114 trustactivitiesServicecharges and 1,613 1,475 1,487 1,571 1,491 4,575 4,607 feesCard revenue 1,820 1,913 1,536 1,517 1,600 5,269 4,202 Loan revenue 1,935 3,151 4,730 3,900 3,252 9,816 6,285 Bank-owned 532 538 542 541 530 1,612 1,685 life insuranceInvestmentsecurities 36 42 27 30 106 105 154 gains, netOther 331 290 666 549 230 1,287 3,947 Totalnoninterest 9,182 10,218 11,824 10,626 9,570 31,224 27,994 incomeNoninterest expenseCompensationand employee 17,350 17,404 16,917 17,638 16,460 51,671 48,759 benefitsOccupancyexpense of 2,547 2,198 2,318 2,476 2,278 7,063 6,872 premises, netEquipment 1,973 1,861 1,793 2,040 1,935 5,627 5,825 Legal and 1,272 1,375 783 2,052 1,184 3,430 4,101 professionalData 1,406 1,347 1,252 1,460 1,308 4,005 3,902 processingMarketing 1,022 873 1,006 986 857 2,901 2,829 Amortization 1,264 1,341 1,507 1,569 1,631 4,112 5,407 of intangiblesFDIC insurance 435 245 512 495 470 1,192 1,363 Communications 275 371 409 412 428 1,055 1,334 Foreclosed 43 136 47 (35 ) 13 226 185 assets, netGoodwill ? ? ? ? 31,500 ? 31,500 impairmentOther 2,191 1,519 1,156 2,822 1,875 4,866 5,901 Totalnoninterest 29,778 28,670 27,700 31,915 59,939 86,148 117,978 expenseIncome (loss)before income 20,824 22,197 27,475 20,789 (17,552 ) 70,496 (7,467 ) tax expenseIncome tax 4,513 4,926 5,827 4,079 2,272 15,266 2,620 expenseNet income $ 16,311 $ 17,271 $ 21,648 $ 16,710 $ (19,824 ) $ 55,230 $ (10,087 ) (loss) Earnings(loss) per common shareBasic $ 1.03 $ 1.08 $ 1.35 $ 1.04 $ (1.23 ) $ 3.47 $ (0.63 ) Diluted $ 1.03 $ 1.08 $ 1.35 $ 1.04 $ (1.23 ) $ 3.46 $ (0.63 ) Weightedaverage basic 15,841 15,987 15,991 16,074 16,099 15,939 16,112 common sharesoutstandingWeightedaveragediluted common 15,863 16,012 16,021 16,092 16,099 15,963 16,112 sharesoutstandingDividends paidper common $ 0.2250 $ 0.2250 $ 0.2250 $ 0.2200 $ 0.2200 $ 0.6750 $ 0.6600 share

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIES FINANCIAL STATISTICS

As of or for the Three Months Ended As of or for the Nine Months Ended(Dollars inthousands, September 30, June 30, September 30, September 30, September 30,except pershareamounts) 2021 2021 2020 2021 2020

Earnings: Net interest $ 40,340 $ 38,505 $ 37,809 $ 117,462 $ 113,927 incomeNoninterest 9,182 10,218 9,570 31,224 27,994 incomeTotalrevenue, net 49,522 48,723 47,379 148,686 141,921 of interestexpenseCredit loss(benefit) (1,080 ) (2,144 ) 4,992 (7,958 ) 31,410 expenseNoninterest 29,778 28,670 59,939 86,148 117,978 expenseIncome (loss)before income 20,824 22,197 (17,552 ) 70,496 (7,467 ) tax expenseIncome tax 4,513 4,926 2,272 15,266 2,620 expenseNet income $ 16,311 $ 17,271 $ (19,824 ) $ 55,230 $ (10,087 ) (loss)Per Share Data:Dilutedearnings $ 1.03 $ 1.08 $ (1.23 ) $ 3.46 $ (0.63 ) (loss)Book value 33.71 33.22 31.00 33.71 31.00 Tangible book 28.40 27.90 25.45 28.40 25.45 value^(1)EndingBalance Sheet:Total assets $ 5,875,423 $ 5,749,215 $ 5,330,708 $ 5,875,423 $ 5,330,708 Loans heldforinvestment, 3,268,644 3,330,156 3,537,432 3,268,644 3,537,432 net ofunearnedincomeTotalsecurities 2,136,902 2,072,452 1,366,344 2,136,902 1,366,344 held forinvestmentTotal 4,957,781 4,792,666 4,333,641 4,957,781 4,333,641 depositsShort-term 187,508 212,261 183,893 187,508 183,893 borrowingsLong-term 154,860 169,839 245,481 154,860 245,481 debtTotalshareholders' 530,264 530,293 499,081 530,264 499,081 equityAverageBalance Sheet:Average total $ 5,811,228 $ 5,851,736 $ 5,311,386 $ 5,728,822 $ 5,027,692 assetsAverage total 3,356,680 3,396,575 3,576,642 3,394,066 3,548,968 loansAverage total 4,882,835 4,875,324 4,317,172 4,778,484 4,081,782 depositsFinancial Ratios:Return onaverage 1.11 % 1.18 % (1.48 ) % 1.29 % (0.27 ) %assetsReturn onaverage 12.00 % 13.24 % (14.88 ) % 14.03 % (2.60 ) %equityReturn onaverage 15.06 % 16.75 % 12.56 % 17.69 % 8.58 %tangibleequity^(1)Efficiency 56.34 % 54.83 % 55.37 % 53.95 % 55.95 %ratio^(1)Net interestmargin, tax 3.00 % 2.88 % 3.14 % 2.99 % 3.36 %equivalent^(1)Loans todeposits 65.93 % 69.48 % 81.63 % 65.93 % 81.63 %ratioCommon equity 9.03 % 9.22 % 9.36 % 9.03 % 9.36 %ratioTangiblecommon equity 7.71 % 7.86 % 7.82 % 7.71 % 7.82 %ratio^(1)Credit Risk Profile:Totalnonperforming $ 33,708 $ 41,429 $ 41,664 $ 33,708 $ 41,664 loansNonperforming 1.03 % 1.24 % 1.18 % 1.03 % 1.18 %loans ratioTotalnonperforming $ 34,162 $ 42,184 $ 42,388 $ 34,162 $ 42,388 assetsNonperforming 0.58 % 0.73 % 0.80 % 0.58 % 0.80 %assets ratioNet(recoveries) $ (880 ) $ 406 $ 1,841 $ (158 ) $ 4,906 charge-offsNet(recovery) (0.10 ) % 0.05 % 0.20 % (0.01 ) % 0.18 %charge-offratioAllowance for $ 47,900 $ 48,000 $ 58,500 $ 47,900 $ 58,500 credit lossesAllowance forcredit losses 1.47 % 1.44 % 1.65 % 1.47 % 1.65 %ratioAdjustedallowance for 1.51 % 1.53 % 1.82 % 1.51 % 1.82 %credit lossesratio^(1)PPP Loans: Average PPP $ 143,628 $ 233,982 $ 330,969 $ 160,708 $ 146,607 loansFee Income 3,593 2,469 1,312 9,735 2,374 ^(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliationto the most directly comparable GAAP measure.

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIESAVERAGE BALANCE SHEET AND YIELD ANALYSIS

Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020(Dollars in Average Interest Average Average Interest Average Average Interest Averagethousands) Balance Income/ Yield/ Balance Income/ Yield/ Balance Income/ Yield/ Expense Cost Expense Cost Expense CostASSETS Loans, including $ 3,356,680 $ 36,622 4.33 % $ 3,396,575 $ 35,255 4.16 % $ 3,576,642 $ 38,727 4.31 %fees ^(1)(2)(3)Taxableinvestment 1,628,605 6,655 1.62 % 1,604,463 6,483 1.62 % 864,864 4,574 2.10 %securitiesTax-exemptinvestment 459,717 3,043 2.63 % 473,181 3,196 2.71 % 405,517 2,968 2.91 %securities ^(2)(4)Total securitiesheld for 2,088,322 9,698 1.84 % 2,077,644 9,679 1.87 % 1,270,381 7,542 2.36 %investment^(2)Other 44,915 21 0.19 % 48,208 19 0.16 % 88,152 29 0.13 %Total interestearning assets^ $ 5,489,917 46,341 3.35 % $ 5,522,427 44,953 3.26 % $ 4,935,175 46,298 3.73 %(2)Other assets 321,311 329,309 376,211 Total assets $ 5,811,228 $ 5,851,736 $ 5,311,386 LIABILITIES ANDSHAREHOLDERS? EQUITYInterest checking $ 1,434,560 $ 1,056 0.29 % $ 1,469,853 $ 1,095 0.30 % $ 1,174,033 $ 1,049 0.36 %depositsMoney market 955,174 506 0.21 % 942,072 502 0.21 % 847,059 622 0.29 %depositsSavings deposits 606,449 316 0.21 % 595,150 324 0.22 % 473,000 351 0.30 %Time deposits 890,866 1,272 0.57 % 896,169 1,488 0.67 % 931,655 3,274 1.40 %Total interest 3,887,049 3,150 0.32 % 3,903,244 3,409 0.35 % 3,425,747 5,296 0.62 %bearing depositsShort-term 182,484 132 0.29 % 218,491 161 0.30 % 165,840 175 0.42 %borrowingsLong-term debt 163,817 1,597 3.87 % 189,644 1,712 3.62 % 231,406 1,874 3.22 %Total borrowed 346,301 1,729 1.98 % 408,135 1,873 1.84 % 397,246 2,049 2.05 %fundsTotal interestbearing $ 4,233,350 $ 4,879 0.46 % $ 4,311,379 $ 5,282 0.49 % $ 3,822,993 $ 7,345 0.76 %liabilitiesNoninterest 995,786 972,080 891,425 bearing depositsOther liabilities 43,040 45,035 67,111 Shareholders? 539,052 523,242 529,857 equityTotal liabilitiesand shareholders? $ 5,811,228 $ 5,851,736 $ 5,311,386 equityNet interest $ 41,462 $ 39,671 $ 38,953 income^(2)Net interest 2.89 % 2.77 % 2.97 %spread^(2)Net interest 3.00 % 2.88 % 3.14 %margin^(2) Total deposits^ $ 4,882,835 $ 3,150 0.26 % $ 4,875,324 $ 3,409 0.28 % $ 4,317,172 $ 5,296 0.49 %(5)Cost of funds^(6) 0.37 % 0.40 % 0.62 %

(1) Average balance includes nonaccrual loans.(2) Tax equivalent. The federal statutory tax rate utilized was 21%.(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $3.5 million, $2.3 million, and $1.1 million for the three months ended September30, 2021, June30, 2021, and September30, 2020, respectively. Loan purchase discount accretion was $774 thousand, $873 thousand, and $1.9 million for the three months ended September30, 2021, June30, 2021, and September30, 2020, respectively. Tax equivalent adjustments were $507 thousand, $519 thousand, and $536 thousand for the three months ended September30, 2021, June30, 2021, and September30, 2020, respectively. The federal statutory tax rate utilized was 21%.(4) Interest income includes tax equivalent adjustments of $615 thousand, $647 thousand, and $608 thousand for the three months ended September30, 2021, June30, 2021, and September30, 2020, respectively. The federal statutory tax rate utilized was 21%.(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

MIDWESTONE FINANCIAL GROUP, INC. AND SUBSIDIARIESAVERAGE BALANCE SHEET AND YIELD ANALYSIS

Nine Months Ended September 30, 2021 September 30, 2020(Dollars in Average Interest Average Average Interest Averagethousands) Balance Income/ Yield/ Balance Income/ Yield/ Expense Cost Expense CostASSETS Loans,including fees $ 3,394,066 $ 108,950 4.29 % $ 3,548,968 $ 121,957 4.59 %^(1)(2)(3)Taxableinvestment 1,501,252 18,231 1.62 % 721,266 12,937 2.40 %securitiesTax-exemptinvestment 466,209 9,442 2.71 % 305,514 7,215 3.15 %securities ^(2)(4)Totalsecurities 1,967,461 27,673 1.88 % 1,026,780 20,152 2.62 %held forinvestment^(2)Other 43,250 54 0.17 % 70,983 233 0.44 %Total interestearning assets $ 5,404,777 136,677 3.38 % $ 4,646,731 142,342 4.09 %^(2)Other assets 324,045 380,961 Total assets $ 5,728,822 $ 5,027,692 LIABILITIESAND SHAREHOLDERS?EQUITYInterestchecking $ 1,418,339 $ 3,142 0.30 % $ 1,052,816 $ 3,477 0.44 %depositsMoney market 936,932 1,486 0.21 % 814,669 3,152 0.52 %depositsSavings 585,334 926 0.21 % 435,612 1,107 0.34 %depositsTime deposits 875,027 4,613 0.70 % 973,044 11,918 1.64 %Total interestbearing 3,815,632 10,167 0.36 % 3,276,141 19,654 0.80 %depositsShort-term 192,083 421 0.29 % 149,041 772 0.69 %borrowingsLong-term debt 186,323 5,160 3.70 % 219,455 4,964 3.02 %Total borrowed 378,406 5,581 1.97 % 368,496 5,736 2.08 %fundsTotal interestbearing $ 4,194,038 $ 15,748 0.50 % $ 3,644,637 $ 25,390 0.93 %liabilitiesNoninterestbearing 962,852 805,641 depositsOther 45,671 58,618 liabilitiesShareholders? 526,261 518,796 equityTotalliabilitiesand $ 5,728,822 $ 5,027,692 shareholders?equityNet interest $ 120,929 $ 116,952 income^(2)Net interest 2.88 % 3.16 %spread^(2)Net interest 2.99 % 3.36 %margin^(2) Total deposits $ 4,778,484 $ 10,167 0.28 % $ 4,081,782 $ 19,654 0.64 %^(5)Cost of funds^ 0.41 % 0.76 %(6)

(1) Average balance includes nonaccrual loans.(2) Tax equivalent. The federal statutory tax rate utilized was 21%.(3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $9.3 million and $1.8 million for the nine months ended September30, 2021 and September30, 2020, respectively. Loan purchase discount accretion was $2.7 million and $7.6 million for the nine months ended September30, 2021 and September30, 2020, respectively. Tax equivalent adjustments were $1.6million and $1.5million for the nine months ended September30, 2021 and September30, 2020, respectively. The federal statutory tax rate utilized was 21%.(4) Interest income includes tax equivalent adjustments of $1.9million and $1.5 million for the nine months ended September30, 2021 and September30, 2020, respectively. The federal statutory tax rate utilized was 21%.(5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.(6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

Non-GAAP Measures

This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted allowance for credit losses ratio, core loans, and core commercial loans. Management believes these measures provide investors with useful information regarding the Companys profitability, financial condition and capital adequacy, consistent with how management evaluates the Companys financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

TangibleCommon Equity/TangibleBook Value per Share/TangibleCommon EquityRatio(Dollars in September 30, June 30, March 31, December 31, September 30,thousands,except per 2021 2021 2021 2020 2020share data)Totalshareholders? $ 530,264 $ 530,293 $ 511,320 $ 515,250 $ 499,081 equityIntangible (83,607 ) (84,871 ) (86,212 ) (87,719 ) (89,288 ) assets, netTangible $ 446,657 $ 445,422 $ 425,108 $ 427,531 $ 409,793 common equity Total assets $ 5,875,423 $ 5,749,215 $ 5,737,312 $ 5,556,648 $ 5,330,708 Intangible (83,607 ) (84,871 ) (86,212 ) (87,719 ) (89,288 ) assets, netTangible $ 5,791,816 $ 5,664,344 $ 5,651,100 $ 5,468,929 $ 5,241,420 assets Book value $ 33.71 $ 33.22 $ 32.00 $ 32.17 $ 31.00 per shareTangible bookvalue per $ 28.40 $ 27.90 $ 26.60 $ 26.69 $ 25.45 share^(1)Shares 15,729,451 15,963,468 15,981,088 16,016,780 16,099,324 outstanding Common equity 9.03 % 9.22 % 8.91 % 9.27 % 9.36 %ratioTangiblecommon equity 7.71 % 7.86 % 7.52 % 7.82 % 7.82 %ratio^(2)

(1) Tangible common equity divided by shares outstanding.(2) Tangible common equity divided by tangible assets.

Return on Three Months Ended Nine Months EndedAverageTangible September 30, June 30, September 30, September 30, September 30,Equity(Dollars in 2021 2021 2020 2021 2020thousands)Net income $ 16,311 $ 17,271 $ (19,824 ) $ 55,230 $ (10,087 ) (loss)Intangibleamortization, 948 1,006 1,223 3,084 4,055 net of tax^(1)Goodwill ? ? 31,500 ? 31,500 impairmentTangible net $ 17,259 $ 18,277 $ 12,899 $ 58,314 $ 25,468 income Averageshareholders? $ 539,052 $ 523,242 $ 529,857 $ 526,261 $ 518,796 equityAverageintangible (84,288 ) (85,518 ) (121,306 ) (85,579 ) (122,518 ) assets, netAveragetangible $ 454,764 $ 437,724 $ 408,551 $ 440,682 $ 396,278 equity Return onaverage 12.00 % 13.24 % (14.88 ) % 14.03 % (2.60 ) %equityReturn onaverage 15.06 % 16.75 % 12.56 % 17.69 % 8.58 %tangibleequity^(2)

(1) The combined income tax rate utilized was 25%.(2) Annualized tangible net income divided by average tangible equity.

Net InterestMargin, Tax Three Months Ended Nine Months EndedEquivalent/Core NetInterest September 30, June 30, September 30, September 30, September 30,Margin(Dollars in 2021 2021 2020 2021 2020thousands)Net interest $ 40,340 $ 38,505 $ 37,809 $ 117,462 $ 113,927 incomeTaxequivalent adjustments:Loans^(1) 507 519 536 1,557 1,540 Securities^ 615 647 608 1,910 1,485 (1)Net interestincome, tax $ 41,462 $ 39,671 $ 38,953 $ 120,929 $ 116,952 equivalentLoan purchasediscount (774 ) (873 ) (1,923 ) (2,745 ) (7,556 ) accretionCore netinterest $ 40,688 $ 38,798 $ 37,030 $ 118,184 $ 109,396 income Net interest 2.92 % 2.80 % 3.05 % 2.91 % 3.27 %marginNet interestmargin, tax 3.00 % 2.88 % 3.14 % 2.99 % 3.36 %equivalent^(2)Core netinterest 2.94 % 2.82 % 2.99 % 2.92 % 3.14 %margin^(3)Averageinterest $ 5,489,917 $ 5,522,427 $ 4,935,175 $ 5,404,777 $ 4,646,731 earningassets

(1) The federal statutory tax rate utilized was 21%.(2) Annualized tax equivalent net interest income divided by average interest earning assets.(3) Annualized core net interest income divided by average interest earning assets.

LoanYield, Tax Three Months Ended Nine Months EndedEquivalent/ CoreYield on September 30, June 30, September 30, September 30, September 30,Loans(Dollarsin 2021 2021 2020 2021 2020thousands)Loaninterestincome, $ 36,115 $ 34,736 $ 38,191 $ 107,393 $ 120,417 includingfeesTaxequivalent 507 519 536 1,557 1,540 adjustment^(1)Taxequivalentloan $ 36,622 $ 35,255 $ 38,727 $ 108,950 $ 121,957 interestincomeLoanpurchase (774 ) (873 ) (1,923 ) (2,745 ) (7,556 ) discountaccretionCore loaninterest $ 35,848 $ 34,382 $ 36,804 $ 106,205 $ 114,401 income Yield on 4.27 % 4.10 % 4.25 % 4.23 % 4.53 %loansYield onloans, tax 4.33 % 4.16 % 4.31 % 4.29 % 4.59 %equivalent^(2)Core yieldon loans^ 4.24 % 4.06 % 4.09 % 4.18 % 4.31 %(3)Average $ 3,356,680 $ 3,396,575 $ 3,576,642 $ 3,394,066 $ 3,548,968 loans

(1) The federal statutory tax rate utilized was 21%.(2) Annualized tax equivalent loan interest income divided by average loans.(3) Annualized core loan interest income divided by average loans.

Three Months Ended Nine Months EndedEfficiency September June 30, September September 30, September 30,Ratio 30, 30,(Dollars in 2021 2021 2020 2021 2020thousands)Totalnoninterest $ 29,778 $ 28,670 $ 59,939 $ 86,148 $ 117,978 expenseAmortization (1,264 ) (1,341 ) (1,631 ) (4,112 ) (5,407 ) of intangiblesMerger-related ? ? ? ? (61 ) expensesGoodwill ? ? (31,500 ) ? (31,500 ) impairmentNoninterestexpense used $ 28,514 $ 27,329 $ 26,808 $ 82,036 $ 81,010 for efficiencyratio Net interestincome, tax $ 41,462 $ 39,671 $ 38,953 $ 120,929 $ 116,952 equivalent^(1)Noninterest 9,182 10,218 9,570 31,224 27,994 incomeInvestmentsecurities (36 ) (42 ) (106 ) (105 ) (154 ) gains, netNet revenuesused for $ 50,608 $ 49,847 $ 48,417 $ 152,048 $ 144,792 efficiencyratio Efficiency 56.34 % 54.83 % 55.37 % 53.95 % 55.95 %ratio^ (2)

(1) The federal statutory tax rate utilized was 21%.(2) Noninterest expense adjusted for amortization of intangibles, merger-related expenses, and goodwill impairment divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.

AdjustedAllowancefor Credit September 30, June 30, March 31, December 31, September 30,LossesRatio(Dollars in 2021 2021 2021 2020 2020thousands)Loans heldforinvestment, $ 3,268,644 $ 3,330,156 $ 3,358,161 $ 3,482,223 $ 3,537,432 net ofunearnedincomePPP loans (89,354 ) (184,390 ) (248,682 ) (259,260 ) (331,703 ) Core loans $ 3,179,290 $ 3,145,766 $ 3,109,479 $ 3,222,963 $ 3,205,729 Allowancefor credit $ 47,900 $ 48,000 $ 50,650 $ 55,500 $ 58,500 losses Allowancefor credit 1.47 % 1.44 % 1.51 % 1.59 % 1.65 %lossesratioAdjustedallowancefor credit 1.51 % 1.53 % 1.63 % 1.72 % 1.82 %lossesratio^(1)

(1) Allowance for credit losses divided by core loans.

Core Loans/Core September 30, June 30, March 31, December 31, September 30,CommercialLoans(Dollars in 2021 2021 2021 2020 2020thousands)Commercial loans:Commercialand $ 927,258 $ 982,092 $ 993,770 $ 1,055,488 $ 1,103,102 industrialAgricultural 106,356 107,834 117,099 116,392 129,453 Commercial 1,699,358 1,705,789 1,693,592 1,732,361 1,707,035 real estateTotalcommercial $ 2,732,972 $ 2,795,715 $ 2,804,461 $ 2,904,241 $ 2,939,590 loansConsumer loans:Residential $ 468,136 $ 468,581 $ 474,433 $ 499,106 $ 521,570 real estateOther 67,536 65,860 79,267 78,876 76,272 consumerTotalconsumer $ 535,672 $ 534,441 $ 553,700 $ 577,982 $ 597,842 loansLoans heldforinvestment, $ 3,268,644 $ 3,330,156 $ 3,358,161 $ 3,482,223 $ 3,537,432 net ofunearnedincome PPP loans $ 89,354 $ 184,390 $ 248,682 $ 259,260 $ 331,703 Core loans^ $ 3,179,290 $ 3,145,766 $ 3,109,479 $ 3,222,963 $ 3,205,729 (1)Corecommercial $ 2,643,618 $ 2,611,325 $ 2,555,779 $ 2,644,981 $ 2,607,887 loans^(2)

(1) Core loans are calculated as loans held for investment, net of unearned income less PPP loans.(2) Core commercial loans are calculated as total commercial loans less PPP loans.

Contact: Charles N. Funk Barry S. Ray Chief Executive Senior Executive Vice President and Chief Financial Officer Officer 319.356.5800 319.356.5800