MidWestOne Financial Group, Inc.

Good morning, ladies and gentlemen, and welcome to the Midwest One Financial Group Inc. Third Quarter 2024 earnings call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. As a reminder, this call is being recorded. I would now like to pass the call over to Barry Ray, Chief Financial Officer of Midwest One Financial Group. Thank you. You may proceed, Barry.

Thank you, everyone, for joining us today. We appreciate your participation in our earnings conference call this morning. With me here on the call are Chip Reeves, our Chief Executive Officer, Lynn Devasher, our President and Chief Operating Officer, and Gary Sims, our Chief Credit Officer. Following the conclusion of today's conference, a replay of this call will be available on our website. Additionally, a slide deck to complement today's presentation is available on the investor relations section of our website. Before we begin, Let me remind everyone on the call that this presentation contains forward-looking statements relating to the financial condition, results of operations, and business of Midwest One Financial Group, Inc. Forward-looking statements generally include words such as believes, expects, anticipates, and other similar expressions. Actual results could differ materially from those indicated. Among the important factors that could cause actual results to differ materially are interest rates, changes in the mix of the company's business, competitive pressures, general economic conditions, and the risk factors detailed in the company's periodic reports and registration statements filed with the Securities and Exchange Commission. Midwest One Financial Group, Inc. undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances after the date of this presentation. I would now like to turn the call over to Chip.

Thank you, Barry. Good morning, and we truly appreciate everyone joining us for this quarter's call. Today, I'll provide a high-level overview of our common equity capital raise and balance sheet repositioning, as well as highlights regarding our continued strategic initiatives execution. Len will provide an update on our lines of business, and Barry will conclude with a more detailed review of the capital raise and our third quarter financial results. We are very pleased with the market receptivity for our common equity offering, which was increased to around $109 million last and with the over allotment being executed quickly resulted in an almost 125 million gross capital raised. The offering was three times oversubscribed by an outstanding mix of existing and new shareholders. We immediately commenced with the sale of 1 billion in debt securities with the resulting proceeds utilized to pay off high cost borrowings and purchase higher yielding securities. The financial metric results of the transaction exceeded our communicated expectations. Our capital levels are now higher and critically of higher quality, and our future profitability will be dramatically increased. Turning to the continued execution of our strategic initiatives, our deposit franchise showed its strength as deposit costs increased minimally, aided by our treasury management focus, which delivered 4% link quarter non-interest-bearing deposit growth. Commercial banking led our loan growth, which grew a solid 4% annualized, Asset quality continued to improve, and our SBA lending initiative had its best quarter to date. Importantly, due to low-priced loan growth, repricing opportunities, and the aforementioned controlled deposit costs, our tax equivalent net interest margin expanded an additional 10 basis points in the quarter, leading to a 3% quarterly increase in our net interest income. During the quarter, we continued our talent and platform investments while maintaining our expense discipline, We continue to fund the majority of these investments by reallocating expense reductions into more productive and profitable people, markets, and departments. To conclude, over the last few years, we've transformed Midwest One, positioning the bank to become a consistent, high-performing company. I'd like to thank our team for their continued customer focus and the extreme execution of our initiatives.