MidWestOne Financial : Reports Third Quarter 2016 Financial Results

Date of Report (Date of earliest event reported) October 27, 2016

(Exact name of registrant as specified in its charter)

Commission file number 001-35968

Iowa 42-1206172

(State or other jurisdiction of incorporation)

(I.R.S. Employer Identification Number)

102 South Clinton Street Iowa City, Iowa 52240

(Address of principal executive offices, including zip code)

(319) 356-5800

(Registrant's telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On October 27, 2016, MidWestOne Financial Group, Inc. issued a press release announcing its earnings for the three and nine months ended September 30, 2016. The press release is attached as Exhibit 99.1.

The information in this Form 8-K and the attached exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any such filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. The following exhibits are filed herewith:

"While the third quarter was challenging, we are beginning to see tangible signs of progress as we integrate our two banks and cultures into one team," stated President and Chief Executive Officer Charles N. Funk. "The 12.07% return on tangible equity we achieved for the quarter is a good start toward building a consistent earnings stream. Additionally, we ended the quarter with a large pipeline of commercial loans. We continue to make progress to rationalize our expenses, including having made significant progress in amortizing the balance of the FDIC indemnification receivable, which has had a negative impact on 2016 earnings. We continue to believe our future is very promising."

Net income for the nine months ended September 30, 2016 was $16.5 million, a decrease of $0.4 million, or 2.1%, compared to $16.9 million of net income for the same period in 2015, with diluted earnings per share of $1.44 and $1.68 for the comparative nine month periods, respectively. The decrease in net income was due primarily to increased salaries and employee benefits expense, reflecting the increased number of employees of the Company after the holding company merger and $1.3 million of merger-related stay bonuses and severance expenses. The first nine months of 2016 results reflect a full nine months of operations after the merger with Central Bancshares, while the first nine months of 2015 included only five months of post-merger operations. The income for the nine months ended September 30, 2016 shows higher noninterest expense partially offset by increased net interest income and increased noninterest income. After excluding the effects of $4.2 million ($2.6 million after tax) of expenses related to the merger with Central Bank, adjusted diluted earnings per share for the nine months ended September 30, 2016, were

$1.67, compared to $1.97, after excluding $3.4 million ($2.9 million after tax) of expenses related to the merger with Central Bancshares, Inc., for the same period last year.

Results of Operations

Net interest income of $24.6 million for the third quarter of 2016 decreased $2.2 million, or 8.1%, from $26.8 million for the third quarter of 2015, primarily due to a decrease of $2.1 million, or 7.0%, in interest income. A decrease in the merger- related discount accretion to $0.6 million for the third quarter of 2016 compared to $1.7 million for the third quarter of 2015, and generally lower rates being received on new loans, partially offset by an increase in average loan balances, resulted in loan interest

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