Market Newsdesk

TORONTO, April 22, 2021 (GLOBE NEWSWIRE) — This report is filed under section 16.3 of National Instrument 81-106 Investment Fund Continuous Disclosure in respect of the annual general meeting of shareholders of Canadian General Investments, Limited (the “Corporation”) held on April 22, 2021 (the “Meeting”).

There were 14,782,173 common shares represented in person or by proxy at the Meeting (equal to 70.86% of the issued and outstanding common shares).

Each of the seven nominees proposed by management for election as a director of the Corporation, as listed in the management information circular dated February 26, 2021, was elected as a director of the Corporation by votes cast at the Meeting. The detailed results of the vote for the election of each director are set out below.

Name of director	Votes for appointment to the Board of Directors	Votes for as a % of votes cast	Votes withheld	Votes withheld as a % of votes cast
James F. Billett	14,211,722	99.68	45,409	0.32
Marcia L. Brown	14,211,222	99.68	45,909	0.32
A. Michelle Lally	14,153,117	99.27	104,014	0.73
Jonathan A. Morgan	14,043,063	99.50	214,068	1.50
Vanessa L. Morgan	14,220,350	99.74	36,781	0.26
R. Neil Raymond	14,219,950	99.74	37,181	0.26
Michael A. Smedley	14,221,922	99.75	35,209	0.25

In addition, PricewaterhouseCoopers LLP was reappointed as auditor of the Corporation and the directors authorized to fix its remuneration by way of votes cast at the Meeting.

FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian General Investments, Limited
Jonathan A. Morgan
President & CEO
Phone: (416) 366-2931
Fax: (416) 366-2729
e-mail: [email protected]
website: www.canadiangeneralinvestments.ca

 

SAN FRANCISCO, April 22, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges Infinity Q Diversified Alpha Fund (NASDAQ: IQDAX; IQDNX) (the “Fund”) investors with significant losses to submit your losses now. A securities fraud class action with an April 27^th lead plaintiff deadline has been filed after advisor Infinity Q Capital Management admitted to mispricing the Fund’s NAV resulting in the Fund being liquidated. Contact us to discuss your potential ability to be a lead plaintiff.

Class Period: Dec. 21, 2018 – Feb. 22, 2021
Lead Plaintiff Deadline: Apr. 27, 2021
Visit:www.hbsslaw.com/investor-fraud/IQDAX
Contact An Attorney Now:[email protected]
                                            844-916-0895

Infinity Q Diversified Alpha Fund (NASDAQ: IQDAX; IQDNX) Securities Fraud Class Action:

The complaint alleges defendants misrepresented and concealed that (1) the Fund’s Chief Investment Officer manipulated variables going into valuation of significant Fund assets, (2) as a consequence, the Fund and its advisor would not be able to correctly calculate the Fund’s net asset value (“NAV”), (3) previously reported NAVs were unreliable, and (4) because of the foregoing the fund would halt redemptions and liquidate assets.

The truth emerged on Feb. 22, 2021, when Bloomberg published an article entitled “Mutual Fund Locks Out Founder After SEC Questions Swaps Pricing” reporting that the fund’s advisor (1) cut off founder, majority owner, and CIO James Velissaris’ access to accounts and trading, and (2) had verified that Velissaris did in fact access and alter the third-party valuation models pertaining to hundreds of millions of dollars of swaps.

Most recently, on Mar. 29, 2021

Institutional Investor

reported that as of Mar. 25, 2021, Infinity Q calculated the NAV for the fund to be $1.25 billion, about $477.7 million (27%) lower than the Feb. 18, 2021 NAV calculation.

“We’re focused on investors’ losses and proving defendants intentionally inflated the fund’s NAV,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you are an Infinity Q Diversified Alpha Fund investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.

Whistleblowers: Persons with non-public information regarding Infinity Q Diversified Alpha Fund should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman


Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:

Reed Kathrein, 844-916-0895

LOWELL, Mass., April 22, 2021 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. (NASDAQ: EBTC), parent of Enterprise Bank, announced net income for the three months ended March 31, 2021 of $10.4 million, or $0.86 per diluted common share, compared to $4.0 million, or $0.34 per diluted common share, for the three months ended March 31, 2020.

As previously announced on April 20, 2021, the Company declared a quarterly dividend of $0.185 per common share to be paid on June 1, 2021 to shareholders of record as of May 11, 2021.

Chief Executive Officer Jack Clancy commented, “Our first quarter 2021 results compared to 2020 were largely the result of growth in net interest income and a decrease in the provision for credit losses. As of March 31, 2021, both loans and customer deposits have grown significantly compared to March 31, 2020, with loan growth derived principally from PPP loans, which has also positively impacted deposit growth. Deposit growth has additionally benefited from government stimulus checks and customers proactively building liquidity in response to the economic uncertainty caused by the pandemic. We anticipate that as the majority of outstanding PPP loans are forgiven or paid off, which we believe will occur principally during the remainder of 2021, and as customers spend down their PPP funds, that we will likely experience a reduction in assets, loans and deposits.”

Mr. Clancy further commented, “The government’s extension of the Paycheck Protection Program has continued to be a significant initiative for the Bank in 2021 and has provided much needed financial support to many of our customers. We have actively participated in round three of the PPP, which began on January 11, 2021, and through April 20, 2021 we have received approval from the SBA for 1,317 PPP loans amounting to $200.9 million with an average loan size of $153 thousand. In total, we have received approval from the SBA for 4,080 PPP loans amounting to $710.3 million and received $25.8 million in SBA fees since the program began in April 2020.”

As previously announced on April 2, 2021, the Company redeemed on March 31, 2021, $15.0 million in 6.00% fixed-to-floating rate subordinated notes that were issued in January 2015 and due on January 30, 2030. Founder and Chairman of the Board George Duncan noted, “The opportunity to prepay the subordinated notes resulted from our strong capital and allowance for credit loss positions, the $60.0 million in subordinated notes we issued last July, and the stabilizing economy. The early redemption resulted in an expense of approximately $713 thousand which will be recovered through a reduction in interest expense in approximately nine months and will result in annual pre-tax savings of approximately $900 thousand beginning in 2022.”

Mr. Duncan further commented, “We remain steadfastly committed to our long-term focus of serving our customers, building relationships, investing in our future, cultivating our digital evolution, expanding our market area, and further developing our services and products. Regarding our branch network, we opened our 26th branch in North Andover, Massachusetts in January 2021 and expect to open our 27th branch in Londonderry, New Hampshire in early 2022. We are relocating our Lawrence, Massachusetts branch this summer within the same building to the end unit to provide for a drive-up window and drive-up ATM and will also move from our temporary Lexington, Massachusetts location later this year to a prime location in the Lexington downtown area where we will have dedicated parking and a vestibule for an ATM and night-time deposit drop.”

Mr. Clancy and Mr. Duncan jointly added, “We want to thank our valued customers for their patience and understanding over the past year as we navigated through the various pandemic protocols which were all intended to keep everyone safe. We have been intensely focused on our team members’ and customers’ safety and well-being. We want to thank every team member in our Enterprise family. We could not be prouder of the dedication, care and teamwork each team member has displayed for our customers and each other. It has really energized us both and we look forward to continued growth and achievement in the years to come.”

Paycheck Protection Program (

“

PPP

”

)

Throughout this press release we have noted certain balances, ratios or other measures of the Company’s performance which exclude the impact of PPP loans, which we expect to be short-term in nature. We refer to any balance, ratio or measure that excludes PPP loans as “core.” The core balances, ratios and measures were derived in order to provide more meaningful comparisons to prior periods as the majority of PPP loans outstanding are expected to pay off during the next several quarters. The table on page 9 provides a reconciliation of the non-GAAP measures to the information presented under U.S. generally accepted accounting principles (“GAAP”).

The PPP was created by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and instituted by the Small Business Administration (“SBA”). The PPP allowed entities to apply for a 1.00% interest rate loan with payments generally deferred until the date the lender receives the applicable forgiveness amount from the SBA. The PPP loans may be partially or fully forgiven by the SBA if the entity meets certain conditions. The maturity term for any principal portion left unforgiven is either 2 or 5 years from the funding date, depending on when the loan was originated. All PPP loans are fully guaranteed by the SBA and are included in total loans.

As of March 31, 2021, the Company had 3,150 PPP loans outstanding with a principal balance of $496.5 million and deferred SBA fees of $12.3 million.

Results of Operations

Net income for the three months ended March 31, 2021 amounted to $10.4 million, an increase of $6.3 million, compared to the three months ended March 31, 2020. The increase in net income for the three months ended March 31, 2021 was driven primarily by an increase in net interest income and a decrease in the provision for credit losses, partially offset by an increase in non-interest expense.

Net interest income for the three months ended March 31, 2021 amounted to $34.7 million, an increase of $4.8 million, or 16%, compared to the three months ended March 31, 2020. The increase in net interest income was due largely to interest-earning asset growth, primarily in PPP loans, and lower deposit interest expense, partially offset by an increase in subordinated debt interest expense. For the three months ended March 31, 2021, net interest income included $1.1 million in PPP interest income and $4.9 million in PPP related SBA fee income.

Average loan balances (including loans held for sale) increased $468.7 million, or 18%, for the three months ended March 31, 2021, compared to the three months ended March 31, 2020. Average balances, excluding PPP loans, have remained relatively unchanged compared to the three months ended March 31, 2020. Tax equivalent net interest margin (“net interest margin” or “margin”) was 3.62%, 3.49%, and 3.89% for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively. The change in net interest margin for the three months ended March 31, 2021 compared to March 31, 2020, resulted primarily from lower interest rates and interest-earning asset yields declining more than the cost of funds.

Margin for the three months ended March 31, 2021 and December 31, 2020 was positively impacted by accelerated SBA fee income on PPP loan forgiveness and negatively impacted by large interest-earning deposit balances, which consists primarily of short-term, overnight balances held at the Federal Reserve Bank. PPP loan forgiveness amounted to approximately $153.0 million and $46.6 million for the three months ended March 31, 2021 and December 31, 2020, respectively, resulting in higher margin for the three months ended March 31, 2021 compared to the three months ended December 31, 2020. The quarterly average interest-earning deposit balance was $279.8 million, $303.7 million and $35.5 million for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively. The increase in the March 31, 2021 and December 31, 2020 periods compared to the March 31, 2020 period resulted primarily from increases in customer deposit balances and to a lesser extent funds received from PPP loan forgiveness. Adjusted net interest margin, excluding PPP loans and average interest-earning deposit balances, was 3.68%, 3.76%, and 3.92% for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

For the three months ended March 31, 2021, the provision for credit losses amounted to $680 thousand, compared to $6.1 million for the three months ended March 31, 2020. The provision for the quarter ended March 31, 2021 resulted from an increase in specific reserves and a change in loan mix, partially offset by a slight decrease in core loans during the period. The provision for the prior year quarter reflected increases in reserves related to the impact of COVID-19 and from an increase in impaired loan reserves.

Non-interest income for the three months ended March 31, 2021, amounted to $4.3 million, an increase of $101 thousand, or 2%, compared to the three months ended March 31, 2020. Quarter-to-date non-interest income increased in 2021 due primarily to increases in wealth management fees and gains on equity investment fair values, partially offset by a decrease in loan derivative fees. The latter two items are included in other income.

Non-interest expense for the three months ended March 31, 2021, amounted to $24.7 million, an increase of $2.0 million, or 9%, compared to the three months ended March 31, 2020. Increases in non-interest expense in the first quarter of 2021 related primarily to the Company’s strategic growth initiatives, particularly salaries and employee benefits, and to a lesser extent occupancy, technology and telecommunications expenses. The increase in non-interest expense also resulted from a loss of $713 thousand on the early redemption of $15.0 million in 6.00% fixed-to-floating rate subordinated notes issued in January 2015 and due in January 2030. The loss on the extinguishment of subordinated debt consisted of $600 thousand in prepayment penalties and $113 thousand in unamortized issuance costs.

CECL Adoption

In the first quarter of 2021, the Company adopted the Financial Accounting Standards Board’s Accounting Standards Update 2016-13, Measurement of Credit Losses on Financial Instruments, including the current expected credit losses (“CECL”) methodology for estimating the allowance for credit losses (“ACL”). The CECL methodology requires earlier recognition of credit losses using a lifetime credit loss measurement approach that also requires the consideration of reasonable and supportable forecasts in the estimate.

The adoption of CECL resulted in the Company recording a net cumulative-effect adjustment, effective January 1, 2021, that decreased retained earnings by $6.5 million, net of $2.5 million in deferred income taxes. The ACL for loans increased by $6.6 million and the ACL for unfunded commitments (included in other liabilities) increased by $2.4 million.

Credit Quality

At March 31, 2021, the ACL for loans amounted to $49.9 million, or 1.60% of total loans and 1.90% of total core loans, compared to $44.6 million, or 1.45% of total loans and 1.69% of core loans at December 31, 2020. The ACL for unfunded commitments amounted to $2.5 million.

Net charge-offs for the quarters ended March 31, 2021 and December 31, 2020 amounted to $1.8 million and $1.4 million, respectively, compared to net recoveries of $3 thousand for the quarter ended March 31, 2020. The net charge-offs for the quarter ended March 31, 2021, related primarily to an individually evaluated commercial real estate loan, which was fully reserved in late 2020. The charge-off resulted in the loan being recorded at the estimated fair value less cost to sell the underlying collateral. The Company transferred the property to other real estate owned (“OREO”) in April 2021 by accepting the deed in-lieu of foreclosure.

As of March 31, 2021, short-term payment deferrals due to the COVID-19 pandemic remained active on 31 loans, amounting to $39.9 million, or 1.52%, of total core loans, compared to 47 loans amounting to $46.7 million, or 1.78%, of total core loans, as of December 31, 2020. As of April 20, 2021, the balance of loans with a short-term payment deferral was reduced to 0.75% of total core loans.

Non-performing assets are comprised of non-accrual loans and OREO. The Company had no OREO at March 31, 2021, December 31, 2020 or March 31, 2020. As noted above, in April of 2021, the Company transferred a commercial office building with a net book value of $2.4 million to OREO. Non-performing assets to total core assets amounted to 0.94% at March 31, 2021, compared to 1.07% and 0.47% at December 31, 2020 and March 31, 2020, respectively.

Non-performing loans to total core loans amounted to 1.36% at March 31, 2021, compared to 1.45% and 0.59% at December 31, 2020 and March 31, 2020, respectively. The increase at March 31, 2021, compared to March 31, 2020, was due to credit downgrades partially offset by payoffs, credit upgrades and charge-offs since the prior period. Credit downgrades included three commercial relationships which became non-accrual in the fourth quarter of 2020 and are in industries that have been highly impacted by the pandemic. One of these relationships had a charge-off of $1.8 million during the quarter ended March 31, 2021, which largely accounted for the decrease compared to December 31, 2020. This relationship was transferred to OREO in April 2021.

Key Financial Highlights

• Total assets amounted to $4.26 billion at March 31, 2021, compared to $4.01 billion at December 31, 2020, an increase of $243.4 million, or 6%. Total core assets have increased $202.3 million, or 6%, since December 31, 2020.
• The increase in total assets since December 31, 2020, is related primarily to the increase in interest-earning deposits of $187.6 million. Total interest-earning deposits, which consists primarily of short-term, overnight balances held at the Federal Reserve Bank, amounted to $400.8 million at March 31, 2021 compared to $213.1 million at December 31, 2020. The increase relates primarily to increases in customer deposit balances, and to a lesser extent, funds received from the SBA for PPP loan forgiveness.
• Total loans amounted to $3.11 billion at March 31, 2021, compared to $3.07 billion at December 31, 2020, an increase of $35.5 million, or 1%. Total core loans have decreased slightly since December 31, 2020.
• Customer deposits amounted to $3.74 billion at March 31, 2021, compared to $3.48 billion at December 31, 2020, an increase of $264.9 million, or 8%. Management believes the deposit growth since December 31, 2020 was due in large part to customers depositing funds received from round three PPP loan advances, stimulus checks, and generally maintaining higher liquidity in response to the pandemic.
• Investment assets under management, which are not carried as assets on the Company’s Consolidated Balance Sheets, amounted to $930.2 million at March 31, 2021, compared to $1.00 billion at December 31, 2020, a decrease of $73.6 million, or 7%. The decrease resulted primarily from the departure of a large, institutional relationship, following the client’s merger, partially offset by net new assets and increases in market values.
• The Total Regulatory Capital and Tier 1 Capital to risk weighted asset ratios for the Company, on a consolidated basis, were 14.28% and 10.94%, respectively, at March 31, 2021, compared to 14.62% and 10.77%, respectively, at December 31, 2020, and 11.61% and 9.84%, respectively, at March 31, 2020.
• The decrease in the Company’s Total Regulatory Capital since December 31, 2020 primarily reflects the March 31, 2021 redemption of $15.0 million in fixed-to-floating rate subordinated notes issued in January 2015 and due in January 2030. The subordinated notes were classified as Tier 2 capital for the Company and Tier 1 capital was not impacted by the redemption. Additionally, Total Regulatory Capital and Tier 1 Capital were impacted by the $6.5 million deduction from the adoption of CECL, offset by net income less dividends paid.
• The increase in the Company’s Total Regulatory Capital to risk weighted asset ratio since March 31, 2020 reflects primarily the Company’s issuance of $60.0 million in fixed-to-floating rate subordinated notes in July 2020. The July 2020 notes were classified as Tier 2 regulatory capital for the Company and did not impact the Company’s Tier 1 capital ratios. Additionally, the Total Regulatory Capital and Tier 1 Capital ratios increased over the period from growth in net income less dividends paid, and from low core loan growth during the period. Despite the increase in Tier 1 capital, the Company’s Tier 1 capital to average assets ratio did not increase due to average asset growth from PPP loans, which are excluded from the risk weighted capital ratios.
• During the quarter, the Bank’s Total Regulatory and Tier 1 capital ratios were impacted by the adoption of CECL and the redemption of the subordinated notes.

Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 126 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, and commercial insurance services, as well as wealth management, and trust services. The Company’s headquarters and Enterprise Bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the Greater Merrimack Valley, Nashoba Valley, and North Central regions of Massachusetts and Southern New Hampshire (Southern Hillsborough and Rockingham counties). Enterprise Bank has 26 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Nashua (2), Pelham, Salem and Windham. The Company is in the process of establishing a branch office in Londonderry, New Hampshire and anticipates that this location will open in early 2022.

This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “will,” “should,” “plan,” and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, general economic conditions, the impact of the ongoing COVID-19 pandemic, changes in interest rates, regulatory considerations, competition and market expansion opportunities, changes in non-interest expenditures or in the anticipated benefits of such expenditures, the receipt of required regulatory approvals, changes in tax laws, and current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of our participation in and execution of government programs related to the COVID-19 pandemic. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

ENTERPRISE BANCORP, INC.

Consolidated Balance Sheets
(unaudited)

(Dollars in thousands, except per share data)		March 31, 2021				December 31, 2020				March 31, 2020
Assets
Cash and cash equivalents:
Cash and due from banks		$	40,539			$	40,636			$	32,833
Interest-earning deposits		400,777				213,146				42,024
Total cash and cash equivalents		441,316				253,782				74,857
Investments:
Debt securities at fair value (amortized cost of $581,360, $551,191, and $482,699, respectively)		601,264				582,303				505,671
Equity securities at fair value		1,197				746				588
Total investment securities at fair value		602,461				583,049				506,259
Federal Home Loan Bank stock		2,010				1,905				5,624
Loans held for sale		7,545				371				476
Loans:
Total loans		3,109,360				3,073,860				2,683,927
Allowance for credit losses		(49,899		)		(44,565		)		(39,764		)
Net Loans		3,059,461				3,029,295				2,644,163
Premises and equipment, net		46,040				46,708				46,734
Lease right-of-use asset		18,279				18,439				18,893
Accrued interest receivable		15,958				16,079				12,977
Deferred income taxes, net		16,239				11,290				9,045
Bank-owned life insurance		31,499				31,363				30,929
Prepaid income taxes		3,600				2,449				1,005
Prepaid expenses and other assets		7,697				13,938				10,535
Goodwill		5,656				5,656				5,656
Total assets		$	4,257,761			$	4,014,324			$	3,367,153
Liabilities and Stockholders ’ Equity
Liabilities
Deposits:
Customer deposits		$	3,741,146			$	3,476,268			$	2,912,850
Brokered deposits		75,015				74,995				—
Total deposits		3,816,161				3,551,263				2,912,850
Borrowed funds		8,631				4,774				84,169
Subordinated debt		58,889				73,744				14,876
Lease liability		17,397				17,539				17,968
Accrued expenses and other liabilities		26,979				30,638				31,756
Accrued interest payable		949				1,940				897
Total liabilities		3,929,006				3,679,898				3,062,516
Commitments and Contingencies
Stockholders ’ Equity
Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued		—				—				—
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,007,998 shares issued and outstanding at March 31, 2021; 11,937,795 shares issued and outstanding at December 31, 2020; and 11,897,322 shares issued and outstanding at March 31, 2020		120				119				119
Additional paid-in capital		97,970				97,137				94,920
Retained earnings		216,610				214,977				193,791
Accumulated other comprehensive income		14,055				22,193				15,807
Total stockholders’ equity		328,755				334,426				304,637
Total liabilities and stockholders’ equity		$	4,257,761			$	4,014,324			$	3,367,153

ENTERPRISE BANCORP, INC.

Consolidated Statements of Income
(unaudited)

		Three months ended
		March 31,
(Dollars in thousands, except per share data)		2021				2020
Interest and dividend income:
Loans and loans held for sale		$	33,650			$	31,298
Investment securities		3,394				3,484
Other interest-earning assets		65				165
Total interest and dividend income		37,109				34,947
Interest expense:
Deposits		1,323				4,405
Borrowed funds		8				415
Subordinated debt		1,042				231
Total interest expense		2,373				5,051
Net interest income		34,736				29,896
Provision for credit losses		680				6,147
Net interest income after provision for credit losses		34,056				23,749
Non-interest income:
Wealth management fees		1,612				1,440
Deposit and interchange fees		1,606				1,691
Income on bank-owned life insurance, net		136				153
Net gains on sales of debt securities		128				100
Net gains on sales of loans		128				147
Other income		689				667
Total non-interest income		4,299				4,198
Non-interest expense:
Salaries and employee benefits		15,721				14,819
Occupancy and equipment expenses		2,381				2,176
Technology and telecommunications expenses		2,554				2,188
Advertising and public relations expenses		514				645
Audit, legal and other professional fees		567				605
Deposit insurance premiums		356				404
Supplies and postage expenses		227				247
Loss on extinguishment of subordinated debt		713				—
Other operating expenses		1,651				1,595
Total non-interest expense		24,684				22,679
Income before income taxes		13,671				5,268
Provision for income taxes		3,319				1,251
Net income		$	10,352			$	4,017
Basic earnings per common share		$	0.87			$	0.34
Diluted earnings per common share		$	0.86			$	0.34
Basic weighted average common shares outstanding		11,959,469				11,841,392
Diluted weighted average common shares outstanding		11,994,437				11,877,031

ENTERPRISE BANCORP, INC.

Selected Consolidated Financial Data and Ratios
(unaudited)

		At or for the three months ended				At or for the year ended				At or for the three months ended
(Dollars in thousands, except per share data)		March 31, 2021				December 31, 2020				March 31, 2020
BALANCE SHEET DATA
Total assets		$	4,257,761			$	4,014,324			$	3,367,153
Loans serviced for others		80,176					78,991			97,195
Investment assets under management		930,226					1,003,841			793,185
Total assets under management		$	5,268,163			$	5,097,156			$	4,257,533
INCOME STATEMENT RATIOS (annualized)
Return on average total assets		1.03		%		0.82		%		0.49		%
Return on average stockholders’ equity		12.78		%		9.95		%		5.34		%
Net interest margin (tax equivalent)(1)		3.62		%		3.59		%		3.89		%
STOCKHOLDERS EQUITY RATIOS
Book value per common share		$	27.38			$	28.01			$	25.61
Dividends paid per common share		$	0.185			$	0.700			$	0.175
CAPITAL RATIOS
Total capital to risk weighted assets		14.28		%		14.62		%		11.61		%
Tier 1 capital to risk weighted assets		10.94		%		10.77		%		9.84		%
Tier 1 capital to average assets		7.62		%		7.52		%		8.69		%
Common equity tier 1 capital to risk weighted assets		10.94		%		10.77		%		9.84		%
CREDIT QUALITY DATA
Non-performing assets		$	35,630			$	38,050			$	15,801
Non-performing assets to total assets		0.84		%		0.95		%		0.47		%
Non-performing assets to total core assets		0.94		%		1.07		%		0.47		%
Non-performing loans to total loans		1.15		%		1.24		%		0.59		%
Non-performing loans to total core loans		1.36		%		1.45		%		0.59		%
Allowance for credit losses to total loans		1.60		%		1.45		%		1.48		%
Allowance for credit losses to total core loans		1.90		%		1.69		%		1.48		%

(1)   Tax equivalent net interest margin is net interest income adjusted for the tax equivalent effect associated with tax exempt loan and investment income, expressed as a percentage of average interest-earning assets.

Enterprise Bank’s capital ratios as of the periods indicated:

		March 31, 2021 (2)			December 31, 2020 (2)			March 31, 2020
Total capital to risk weighted assets		14.27	%		14.55	%		11.60	%
Tier 1 capital to risk weighted assets		13.01	%		13.29	%		10.35	%
Tier 1 capital to average assets		9.06	%		9.27	%		9.14	%
Common equity tier 1 capital to risk weighted assets		13.01	%		13.29	%		10.35	%

(2)   Increased capital ratios since March 31, 2020 reflect the investment of $53.0 million from the Company to the Bank resulting from the Company’s issuance on July 7, 2020 of $60.0 million in subordinated notes, net income growth less dividends paid, and low core loan growth during the period. The decreased capital ratios since December 31, 2020 reflect the adoption of CECL and a dividend from the Bank to the Company to fund the redemption of the 2015 subordinated notes. Despite the increase in Tier 1 capital, the Bank’s Tier 1 capital to average assets ratio did not increase due to average asset growth from PPP loans, which are excluded from the risk weighted capital ratios.

ENTERPRISE BANCORP, INC.

Selected Consolidated Financial Data and Ratios (continued)
(unaudited)

NON-GAAP MEASURES

The accompanying unaudited consolidated interim financial statements have been prepared in accordance with GAAP. However, certain financial measures and ratios we present, including PPP-adjusted metrics are supplemental measures that are not required by, or are not presented in accordance with, GAAP. These non-GAAP measures are intended to provide the reader with additional supplemental perspectives on operating results, performance trends, and financial condition. Non-GAAP financial measures are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In addition, the non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies.

Certain non-GAAP measures provided in this press release exclude the outstanding balance of PPP loans that the
Company began originating in April 2020, and which are expected to be short-term in nature. We refer to any
balance, ratio or measure that excludes PPP loans as “core.” The Company normalized for this activity by excluding
PPP loans from the calculations below in order to provide a more informative analysis of results.

The following table summarizes the reconciliation of GAAP items to non-GAAP items related to the impact of PPP loans on total loans and assets:

(Dollars in thousands)		March 31, 2021				December 31, 2020
TOTAL CORE LOANS
Total loans (GAAP)		$	3,109,360			$	3,073,860
Adjustment: PPP loans		(496,457		)		(453,084		)
Adjustment: Deferred PPP fees		12,282				10,014
Total core loans (non-GAAP)		$	2,625,185			$	2,630,790
TOTAL CORE ASSETS
Total assets (GAAP)		$	4,257,761			$	4,014,324
Adjustment: PPP loans		(496,457		)		(453,084		)
Adjustment: Deferred PPP fees		12,282				10,014
Total core assets (non-GAAP)		$	3,773,586			$	3,571,254

 

ENTERPRISE BANCORP, INC.

Selected Consolidated Financial Data and Ratios (continued)
(unaudited)

Additional non-GAAP measures provided in this press release exclude the impact of PPP loans and interest-earning deposits, which have abnormally impacted margin over the past several quarters. Customer deposit growth has benefited from government stimulus checks and customers proactively building liquidity in response to the economic uncertainty caused by the pandemic. This deposit inflow has in turn increased our liquidity held as short-term interest-earning deposits. We refer to any balance, ratio or measure that excludes the impact of PPP loans and interest-earning deposits as “adjusted.” The Company has normalized for this activity in order to provide a more meaningful comparison to prior periods.

The following table summarizes the reconciliation of GAAP items to non-GAAP items related to the impact of PPP loans and interest-earning deposits on margin:

		Three months ended				Three months ended				Three months ended
(Dollars in thousands)		March 31, 2021				December 31, 2020				March 31, 2020
ADJUSTED INTEREST-EARNING ASSETS
Total average interest-earning assets (GAAP)		$	3,924,153			$	3,940,679			$	3,127,401
Adjustment: Average PPP loans, net			(452,813)				(481,012)				—
Adjustment: Average interest-earning deposits			(279,796)				(303,745)				(35,538)
Total adjusted average interest-earning assets (non-GAAP)		$	3,191,544			$	3,155,922			$	3,091,863
ADJUSTED INTEREST INCOME
Interest income (tax equivalent) (GAAP)		$	37,454			$	37,314			$	35,307
Adjustment: PPP income			(6,013)				(4,685)				—
Adjustment: Interest on interest-earning deposits			(68)				(71)				(93)
Adjusted interest income (tax equivalent) (non-GAAP)		$	31,373			$	32,558			$	35,214
ADJUSTED NET INTEREST MARGIN
Net interest margin (tax equivalent) (GAAP)		3.62		%			3.49	%			3.89	%
Adjustment: PPP effect(1)		(0.23)		%			(0.05)	%			—	%
Adjustment: Interest-earning deposits effect(2)		0.29		%			0.32	%			0.03	%
Adjusted net interest margin (tax equivalent) (non-GAAP)		3.68		%			3.76	%			3.92	%

(1)   PPP loan adjustments include an elimination of average PPP loans, net of deferred SBA fees, as well as interest income on PPP loans and related SBA fee accretion, included in interest income.

(2)   Interest-earning deposit adjustments include an elimination of average interest-earning deposits, as well as interest income on interest-earning deposits, included in interest income.

Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578

TORONTO, April 22, 2021 (GLOBE NEWSWIRE) — Skylight Health Group Inc (TSXV:SHG; OTCQX: SHGFF) (“Skylight Health” or the “Company”), a multi-state primary care management group in the United States, announced today it has filed a preliminary short form base shelf prospectus (with the securities regulators in the following provinces of Canada; Alberta, British Columbia, Manitoba and Ontario) (the “Prospectus”) and a corresponding shelf registration statement on Form F-10 with the U.S. Securities and Exchange Commission.

The Prospectus, when final and effective, will enable the Company to offer, issue and sell, from time to time: subordinate voting shares; restricted voting shares; limited voting shares; warrants; subscription receipts; debt securities; convertible securities; units; or any combination of such securities (collectively, the “Securities”) for up to an aggregate offering price of CA$100,000,000 (or its equivalent), in one or more transactions during the effective period of the Prospectus.

Skylight Health has filed the Prospectus and corresponding registration statement in order to provide the Company with greater financial flexibility going forward. The registration statement is not yet effective, and the securities may not be sold, nor may offers to buy, be accepted prior to the time the registration statement becomes effective.

“Our strategy continues to be organic growth and growth through acquisition, and we have built a robust pipeline of immediately accretive and strategic targets,” says Prad Sekar, Co-Founder and CEO. “As we move closer to our expected NASDAQ uplisting, it is more important than ever to have the financial flexibility to continue to execute on our growth and expansion strategy.” 

This news release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale, of the securities in any province, state, or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration of such securities under the securities laws of any such jurisdiction.

A copy of the final short form base shelf prospectus can be found on SEDAR at www.sedar.com and a copy of the registration statement can be found on EDGAR at www.sec.gov.

About Skylight Health Group

Skylight Health Group (TSXV:SHG; OTCQX:SHGFF) is a healthcare services and technology company, working to positively impact patient health outcomes. The Company operates a US multi-state health network that comprises of physical multi-disciplinary medical clinics providing a range of services from primary care, sub-specialty, allied health and laboratory/diagnostic testing. The Company owns and operates a proprietary electronic health record system that supports the delivery of care to patients via telemedicine and other remote monitoring system integrations. The Company has operations serving 16 states and continues to expand in services and locations both organically and by way of strategic acquisitions.

The Company primarily operates a traditional insurable fee-for-service model contracting with Medicare, Medicaid and other Commercial Payors. The Company also offers a disruptive subscription-based telemedicine service for the un/under-insured population who have limited access to urgent care due to cost.

For more information, please visit www.skylighthealthgroup.com or contact:

Investor Relations:

Jackie Kelly
[email protected]
416-301-2949

Currency Usage, Cautionary and Forward-Looking Statements 

All currency contained in this Press Release represent Canadian Dollars unless otherwise stated. 

Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in Skylight Health’s filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward-looking statements. 

Forward-looking statements may include, without limitation, statements regarding the Company’s Prospectus and registration statement going effective and the Company’s anticipated uplist to NASDAQ. 

Although Skylight Health has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: the ability of Skylight Health to execute on its business strategy, continued revenue growth in accordance with management’s expectations, operating expenses continuing in accordance with management expectations, dependence on obtaining regulatory approvals; Skylight Health being able to find, complete and effectively integrate target acquisitions; change in laws relating to health care regulation; reliance on management; requirements for additional financing; competition; hindering market growth or other factors that may not currently be known by the Company. 

There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events. 

Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. Skylight Health disclaims any intention or obligation to update or revise such information, except as required by applicable law, and Skylight Health does not assume any liability for disclosure relating to any other company mentioned herein. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

AMESBURY, Mass., April 22, 2021 (GLOBE NEWSWIRE) — Provident Bancorp, Inc. (the “Company”) (NasdaqCM: PVBC), the holding company for The Provident Bank (the “Bank”), reported net income for the three months ended March 31, 2021 of $4.3 million, or $0.24 per diluted share, compared to $1.2 million, or $0.07 per diluted share, for the three months ended March 31, 2020. The increase in net income is primarily attributable to the impact COVID-19 had on the 2020 provision for loan losses which were $3.1 million for the three months ended March 31, 2020 compared to $753,000 for the same period in 2021.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.04 per share, which will be paid on May 21, 2021 to stockholders of record as of May 7, 2021.

In announcing these results, Dave Mansfield, Chief Executive Officer said, “We entered this year eager to embrace the future of banking and excited to form new relationships and explore potential business opportunities. We have been particularly focused on meeting the full-service banking needs of our growing list of digital asset customers. In the first quarter we have nearly doubled our digital asset deposit portfolio. We are optimistic about putting this deposit growth to work on our robust pipeline of loans. I am very proud of our first quarter’s financial results and am encouraged by the increase in economic activity we are currently seeing and expect to continue to see as more people are vaccinated against COVID-19 and businesses are able to return to normal operations. We are excited to share our financial success and announce an increase in this quarter’s cash dividend to $0.04 per share.”

COVID–19 Response

Since the distribution of the first COVID-19 vaccination began in December, additional vaccines have been approved for use and the Company’s market area has progressed through different phases of the vaccine rollout. As larger percentages of the population become fully vaccinated, and warmer weather has begun, there has been an uptick in economic activity, particularly in those industries that had been most heavily impacted by the economic downturn caused by the COVID-19 pandemic.

In December 2020, Congress approved a bill which allocated additional funds to the Small Business Administration (“SBA”) for a second round of Paycheck Protection Program (“PPP”) loans to assist with the economic fall out caused by the COVID-19 pandemic. The SBA, in consultation with the U.S. Treasury department, announced that the PPP was to resume in January of 2021 and has since extended the program through May 31, 2021. During the first round of the PPP, which ran from March to August 2020, the Company originated $78.0 million in PPP loans. As of March 31, 2021, the Company has originated an additional $42.7 million under the second round of the PPP. The Company continues to work with customers who received PPP loans on applying for loan forgiveness, and as of March 31, 2021, of the $120.7 million in PPP loans issued, only $57.5 million remained outstanding.

The Company’s focus has been on meeting the needs of its customers through the height of the pandemic and now through the economic recovery. We continue to maintain close communication with commercial customers, especially in those industries most heavily impacted by the pandemic and continue to allow for loan deferral extensions on an as-needed and case-by-case basis. Most loans that were modified under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act have resumed repayment or have been paid off. We have not experienced any significant delinquencies related to these loans. As of Mach 31, 2021, remaining loan modifications that were made under the CARES Act totaled $35.2 million, or 2.7% of total loans, compared to $44.0 million, or 3.3% of total loans at December 31, 2020.

Financial Results

Net interest and dividend income before provision for loan losses increased by $2.8 million, or 23.5%, compared to the three months ended March 31, 2020. The growth in net interest and dividend income is primarily the result of an increase in our average interest-earning assets of $330.2 million, or 29.2%, offset by an increase in average interest-bearing liabilities of $145.7 million, or 20.4%, and a decrease in net interest margin of 19 basis points to 4.08%. The decrease in the net interest margin is the result of a combination of factors including a decreasing rate environment and an increase in mortgage warehouse loan balances, which have lower rates than our traditional commercial loans. The net interest margin benefitted from the accretion of fee income related to the forgiveness of the SBA PPP loans. The amount of income recognized from the forgiveness totaled $625,000 for the three months ended March 31, 2021. Excluding this income, net interest margin would be 3.91% for the three months ended March 31, 2021. As of March 31, 2021, there was $1.8 million in SBA PPP fee income remaining to be accreted.

Provision for loan losses of $753,000 were recognized for the three months ended March 31, 2021 compared to $3.1 million for the same period in 2020. The changes in the provision were based on management’s assessment of economic conditions, including the impact of the COVID-19 pandemic, loan portfolio growth and composition changes, historical charge-off trends, levels of problem loans and other asset quality trends.

The allowance for loan losses as a percentage of total loans was 1.43% as of March 31, 2021 compared to 1.39% as of December 31, 2020. The primary reason for the increase was a $2.4 million loan relationship that was placed on nonaccrual status and downgraded to doubtful status in the first quarter of 2021 with specific reserves of $1.5 million. This increase was partially offset by a slight decrease in the provision allocated across the portfolio due to a reduction in economic factors. In addition, there was a decrease in the provision allocated to mortgage warehouse loan balances resulting from the Bank’s seasoning experience with this line of lending. There were $244.1 million and $265.4 million in outstanding mortgage warehouse loan balances at March 31, 2021 and December 31, 2020, respectively. Loans in this segment are facility lines to non-bank mortgage origination companies for sale into secondary markets, which is typically within 15 days of the loan closure. Due to their short-term nature, these loans are assessed at a lower credit risk and do not carry the same allocation as traditional loans. Included in total loans is $57.5 million in PPP loans originated as part of the CARES Act that we believe have no credit risk due to a government guarantee, therefore we have not provided for losses for these loans. Excluding PPP loans, the allowance for loan losses as a percentage of total loans was 1.50% as of March 31, 2021 compared to 1.43% at December 31, 2020. The allowance for loan losses as a percentage of non-performing loans was 255.29% as of March 31, 2021 compared to 341.72% as of December 31, 2020. Non-performing loans were $7.5 million, or 0.48% of total assets as of March 31, 2021, compared to $5.4 million, or 0.36% of total assets, as of December 31, 2020. As of March 31, 2021, non-performing loans consist primarily of three commercial relationships totaling $5.9 million. These loan relationships were evaluated for impairment and specific reserves of $3.3 million were allocated as of March 31, 2021.

Noninterest income increased $8,000, or 0.8%, and was $1.0 million for each of the three months ended March 31, 2021 and 2020. The increase is primarily due to an increase in bank owned life insurance income and other income partially offset by a decrease in other service charges and fees. Other income increased $51,000, or 268.4% primarily due to a one-time incentive payment on a service contract. Bank owned life insurance income increased $40,000, or 22.3%, due to the purchase of additional insurance policies in 2020. Other service charges and fees decreased $110,000, or 23.9% primarily due to higher average deposit balances, which resulted in decreased overdraft fees.

Noninterest expense increased $907,000, or 10.9%, to $9.2 million for the three months ended March 31, 2021 compared to $8.3 million for the three months ended March 31, 2020. The increase is primarily due to an increase in salaries and employee benefits expense, deposit insurance expenses, data processing fees and other expenses, partially offset by a decrease in write downs of other assets and receivables. The increase of $1.1 million, or 19.9%, for the three months ended March 31, 2021 when compared to the same period in 2020 in salary and employee benefits was primarily due to stock based compensation expense and a higher number of sales and operations positions compared to the same period in 2020. Deposit insurance expenses increased $75,000, or 241.9%, primarily due to one-time credits that were recognized in the first quarter of 2020 that resulted in a lower expense. Data processing fees increased $96,000 or 42.7%, primarily due to new contracts for deposit services. These increases were offset by a decrease in write downs of other assets and receivables of $500,000. In the first quarter of 2020 a write-down of a notes receivable balance was completed after the Company evaluated the collectability and determined that $500,000 was uncollectible.

As of March 31, 2021, total assets have increased $46.1 million, or 3.1%, to $1.55 billion compared to $1.51 billion at December 31, 2020. The primary reasons for the increase are increases in cash and cash equivalents, debt securities available-for-sale and other assets, partially offset by a decrease in net loans. The increase in cash and cash equivalents of $49.1 million, or 58.5% is primarily due to an increase in deposits and loan payoffs. The increase in debt securities available-for-sale of $2.4 million, or 7.5%, resulted primarily from the purchase of a $5.0 million bond offset by principal pay downs on government mortgage-backed securities. Net loans decreased $6.7 million, or 0.5%, and was $1.31 billion as of March 31, 2021 and December 31, 2020. The decrease in net loans was due to a decreases in mortgage warehouse loans of $21.3 million, or 8.0%, commercial real estate loans of $3.9 million, or 0.9%, residential real estate loans of $2.9 million, or 8.8% and consumer loans of $1.4 million, or 25.4%, partially offset by increases in commercial loans of $19.4 million, or 3.4% and construction and land development loans of $4.9 million, or 16.8%. Included in commercial loans at March 31, 2021and December 31, 2020 are $57.4 million and $41.8 million in SBA PPP loans, respectively.

Total liabilities increased $47.8 million, or 3.8%, due to increased deposits. Deposits were $1.29 billion as of March 31, 2021, representing an increase of $47.8 million, or 3.9%, compared to December 31, 2020. The increase in deposits was due to an increase of $30.6 million, or 5.5%, in NOW and demand deposits, an increase of $33.0 million, or 9.3% in money market accounts, an increase of $4.1 million, or 2.7%, in savings accounts, partially offset by a decrease of $19.9 million, or 11.2%, in time deposits. NOW and demand deposits and money market deposits increased primarily due to funds from the origination of PPP loans and increased deposit balances from new and expanded relationships with digital asset customers, which totaled $53.7 million at March 31, 2021. The increase in savings accounts is primarily caused by increased consumer savings. The decrease in time deposits is primarily due to roll-off of brokered certificates of deposit. In addition, the Bank has increased focused on growing non-interest bearing deposit balances and as of March 31, 2021 non-interest bearing deposits represented 33.5% of total deposits compared to 31.0% at December 31, 2020.

As of March 31, 2021, shareholders’ equity was $234.1 million compared to $235.9 million at December 31, 2020, representing a decrease of $1.7 million, or 0.7%. The decrease was primarily due to the repurchase of common stock of $6.2 million, $532,000 from dividends paid and a decrease in other comprehensive income of $185,000, partially offset by net income of $4.3 million, stock-based compensation expense of $604,000 and employee stock ownership plan shares earned of $286,000.

About Provident Bancorp, Inc.

BankProv, legally operating as The Provident Bank, is a subsidiary of Provident Bancorp, Inc. (NASDAQ: PVBC). BankProv is a future-ready commercial bank for corporate clients, specializing in offering adaptive and technology-first banking solutions to niche markets, including cryptocurrency, renewable energy, fin-tech and search fund lending. We are committed to offering a state-of-the-art API suite for all business clients and BaaS (Bank as a Service) partners. Through our offerings, BankProv insures 100% of deposits through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). For more information about BankProv please visit our website www.bankprov.com or call 877-487-2977.

Forward-looking statements

This news release may contain certain forward-looking statements, such as statements of the Company’s or the Bank’s plans, objectives, expectations, estimates and intentions. Forward-looking statements may be identified by the use of words such as, “expects,” “subject,” “believe,” “will,” “intends,” “may,” “will be” or “would.” These statements are subject to change based on various important factors (some of which are beyond the Company’s or the Bank’s control) and actual results may differ materially. Accordingly, readers should not place undue reliance on any forward-looking statements (which reflect management’s analysis of factors only as of the date of which they are given). These factors include: general economic conditions; the effects of any pandemic; trends in interest rates; the ability of our borrowers to repay their loans; and the ability of the Company or the Bank to effectively manage its growth and results of regulatory examinations, among other factors. The foregoing list of important factors is not exclusive. Readers should carefully review the risk factors described in other documents of the Company files from time to time with the Securities and Exchange Commission, including Annual and Quarterly Reports on Forms 10-K and 10-Q, and Current Reports on Form 8-K.

Provident Bancorp, Inc.
Carol Houle, 603-334-1253
Executive Vice President/CFO
[email protected]

Provident Bancorp, Inc.
Consolidated Balance Sheet

	At				At
	March 31,				December 31,
	2021				2020
(Dollars in thousands)	(unaudited)
Assets
Cash and due from banks	$	17,560			$	11,830
Short-term investments		115,313				71,989
Cash and cash equivalents		132,873				83,819
Debt securities available-for-sale (at fair value)		34,629				32,215
Federal Home Loan Bank stock, at cost		895				895
Loans, net of allowance for loan losses of $19,032 and $18,518 as of March 31, 2021 and December 31, 2020, respectively		1,308,136				1,314,810
Bank owned life insurance		36,903				36,684
Premises and equipment, net		14,655				14,716
Accrued interest receivable		6,456				6,371
Right-of-use assets		4,219				4,258
Other assets		13,126				12,013
Total assets	$	1,551,892			$	1,505,781
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing	$	431,028			$	383,079
Interest-bearing		854,196				854,349
Total deposits		1,285,224				1,237,428
Long-term borrowings		13,500				13,500
Operating lease liabilities		4,463				4,488
Other liabilities		14,563				14,509
Total liabilities		1,317,750				1,269,925
Shareholders’ equity:
Preferred stock; authorized 50,000 shares: no shares issued and outstanding		—				—
Common stock, $0.01 par value, 100,000,000 shares authorized; 18,574,127 and 19,047,544 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		186				191
Additional paid-in capital		133,981				139,450
Retained earnings		108,273				104,508
Accumulated other comprehensive income		873				1,058
Unearned compensation – ESOP		(9,171	)			(9,351	)
Total shareholders’ equity		234,142				235,856
Total liabilities and shareholders’ equity	$	1,551,892			$	1,505,781

Provident Bancorp, Inc.
Consolidated Income Statements

	Three Months Ended
	March 31,
	2021			2020
(Dollars in thousands, except per share data)	(unaudited)
Interest and dividend income:
Interest and fees on loans	$	15,697		$	13,760
Interest and dividends on debt securities available-for-sale		169			258
Interest on short-term investments		23			71
Total interest and dividend income		15,889			14,089
Interest expense:
Interest on deposits		911			1,646
Interest on borrowings		70			371
Total interest expense		981			2,017
Net interest and dividend income		14,908			12,072
Provision for loan losses		753			3,099
Net interest and dividend income after provision for loan losses		14,155			8,973
Noninterest income:
Customer service fees on deposit accounts		379			352
Service charges and fees – other		350			460
Bank owned life insurance income		219			179
Other income		70			19
Total noninterest income		1,018			1,010
Noninterest expense:
Salaries and employee benefits		6,477			5,402
Occupancy expense		412			441
Equipment expense		122			137
Deposit insurance		106			31
Data processing		321			225
Marketing expense		37			64
Professional fees		431			386
Directors’ compensation		254			194
Software depreciation and implementation		246			200
Write down of other assets and receivables		—			500
Other		807			726
Total noninterest expense		9,213			8,306
Income before income tax expense		5,960			1,677
Income tax expense		1,663			446
Net income	$	4,297		$	1,231
Earnings per share:
Basic	$	0.25		$	0.07
Diluted	$	0.24		$	0.07
Weighted Average Shares:
Basic		17,263,759			18,115,970
Diluted		17,558,160			18,261,282

Provident Bancorp, Inc.
Net Interest Income Analysis
(Unaudited)

	For the Three Months Ended March 31,
	2021										2020
					Interest										Interest
	Average				Earned/			Yield/			Average				Earned/			Yield/
	Balance				Paid			Rate			Balance				Paid			Rate
(Dollars in thousands)
Assets:
Interest-earning assets:
Loans	$	1,317,638			$	15,697		4.77	%		$	1,068,525			$	13,760		5.15	%
Short-term investments		112,198				23		0.08	%			19,176				71		1.48	%
Debt securities available-for-sale		31,344				166		2.12	%			41,031				237		2.31	%
Federal Home Loan Bank stock		895				3		1.34	%			3,161				21		2.66	%
Total interest-earning assets		1,462,075				15,889		4.35	%			1,131,893				14,089		4.98	%
Non-interest earning assets		66,157										57,183
Total assets	$	1,528,232									$	1,189,076
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Savings accounts	$	151,375				55		0.15	%		$	121,106				105		0.35	%
Money market accounts		375,078				477		0.51	%			255,883				705		1.10	%
NOW accounts		153,294				98		0.26	%			124,286				155		0.50	%
Certificates of deposit		166,388				281		0.68	%			133,819				681		2.04	%
Total interest-bearing deposits		846,135				911		0.43	%			635,094				1,646		1.04	%
Borrowings		13,500				70		2.07	%			78,869				371		1.88	%
Total interest-bearing liabilities		859,635				981		0.46	%			713,963				2,017		1.13	%
Noninterest-bearing liabilities:
Noninterest-bearing deposits		412,350										226,440
Other noninterest-bearing liabilities		17,987										15,731
Total liabilities		1,289,972										956,134
Total equity		238,260										232,942
Total liabilities and equity	$	1,528,232									$	1,189,076
Net interest income					$	14,908									$	12,072
Interest rate spread (1)								3.89	%									3.85	%
Net interest-earning assets (2)	$	602,440									$	417,930
Net interest margin (3)								4.08	%									4.27	%
Average interest-earning assets to interest-bearing liabilities		170.08	%									158.54	%

(1) Net interest rate spread represents the difference between the weighted average yield on interest-bearing assets and the weighted average rate of interest-bearing liabilities.
(2) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.

Provident Bancorp, Inc.
Select Financial Highlights

	Three Months Ended
	March 31,
	2021			2020
(unaudited)
Performance Ratios:
Return on average assets (1)	1.12	%		0.41	%
Return on average equity (1)	7.21	%		2.11	%
Interest rate spread (1) (3)	3.89	%		3.85	%
Net interest margin (1) (4)	4.08	%		4.27	%
Non-interest expense to average assets (1)	2.41	%		2.79	%
Efficiency ratio (5)	57.85	%		63.49	%
Average interest-earning assets to average interest-bearing liabilities	170.08	%		158.54	%
Average equity to average assets	15.59	%		19.59	%

	At				At				At
	March 31,				December 31,				March 31,
	2021				2020				2020
Asset Quality
Non-accrual loans:
Real estate:
Commercial	$	—			$	—			$	21,199
Residential		969				1,156				732
Construction and land development		—				—				165
Commercial		6,469				4,198				2,754
Consumer		17				65				84
Mortgage warehouse		—				—				—
Total non-accrual loans		7,455				5,419				24,934
Accruing loans past due 90 days or more		—				—				—
Other real estate owned		—				—				—
Total non-performing assets	$	7,455			$	5,419			$	24,934
Asset Quality Ratios
Allowance for loan losses as a percent of total loans (2)		1.43	%			1.39	%			1.46	%
Allowance for loan losses as a percent of non-performing loans		255.29	%			341.72	%			66.87	%
Non-performing loans as a percent of total loans (2)		0.56	%			0.41	%			2.18	%
Non-performing loans as a percent of total assets		0.48	%			0.36	%			2.22	%
Non-performing assets as a percent of total assets (6)		0.48	%			0.36	%			2.22	%
Capital and Share Related
Stockholders’ equity to total assets		15.1	%			15.7	%			20.7	%
Book value per share	$	12.61			$	12.38			$	11.95
Market value per share	$	14.40			$	12.00			$	8.62
Shares outstanding		18,574,127				19,047,544				19,476,248

(1) Annualized
(2) Loans are presented before the allowance but include deferred costs/fees.
(3) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities.
(4) Represents net interest income as a percent of average interest-earning assets.
(5) Represents noninterest expense divided by the sum of net interest income and noninterest income, excluding gains on securities available for sale, net.
(6) Non-performing assets consists of non-accrual loans plus loans accruing but 90 days overdue and OREO.

First


Quarter Summary



<sup>(




1)</sup>

• Net income for the first quarter was a record $21.6 million, or $1.35 per diluted common share.
  • Total revenue, net of interest expense, increased to $50.4 million.
  • Credit loss benefit increased to $4.7 million.
  • Noninterest expense decreased to $27.7 million.
• Efficiency ratio improved to 50.8%.
• Average total interest earning assets grew 6.6% annualized.
• Average total deposits grew 7.8% annualized.
• Allowance for credit losses ratio declined to 1.5% given the improving economic outlook.
• Nonperforming assets increased 1.9% and the net charge-off ratio was 4 bps.

IOWA CITY, Iowa, April 22, 2021 (GLOBE NEWSWIRE) — MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we”, “our”, or the “Company”) today reported net income for the first quarter of 2021 of $21.6 million, or $1.35 per diluted common share, compared to net income of $16.7 million, or $1.04 per diluted common share, for the linked quarter.

Charles Funk, Chief Executive Officer of the Company, commented, “This is the highest earnings quarter in our Company’s history. We have seen our asset quality stabilize as the economy improves. Further, our credit loss estimate has declined from peak 2020 levels that stemmed from economic uncertainty driven by the COVID-19 pandemic. We also note our expenses are well-controlled, which is important given this period of soft loan demand.”

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

FINANCIAL HIGHLIGHTS		Three Months Ended
		March 31,					December 31,					March 31,
(Dollars in thousands, except per share amounts)		2021					2020					2020
Net interest income		$	38,617				$	39,037				$	37,406
Noninterest income		11,824					10,626					10,155
Total revenue, net of interest expense		50,441					49,663					47,561
Credit loss (benefit) expense		(4,734		)			(3,041		)			21,733
Noninterest expense		27,700					31,915					30,001
Income (loss) before income tax expense (benefit)		27,475					20,789					(4,173		)
Income tax expense (benefit)		5,827					4,079					(2,198		)
Net income (loss)		$	21,648				$	16,710				$	(1,975	)
Diluted earnings (loss) per share		$	1.35				$	1.04				$	(0.12	)
Return on average assets		1.59			%		1.22			%		(0.17		)	%
Return on average equity		17.01			%		13.15			%		(1.54		)	%
Return on average tangible equity(1)		21.52			%		17.07			%		(0.47		)	%
Efficiency ratio(1)		50.77			%		59.69			%		57.67			%
(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

COVID-19 UPDATE

Loan Modifications

As of March 31, 2021, the outstanding balance of loans modified as a result of the COVID-19 pandemic totaled $16.7 million, a decline of 62% from $44.1 million at December 31, 2020. Of those modified loans at March 31, 2021, $3.2 million were in their first deferral period while $13.5 million are in, or being processed for, an additional deferral.

SBA PPP Loans

On March 30, 2021, President Biden signed into law the PPP Extension Act of 2021, which provided an extension to May 31, 2021 for qualifying businesses to apply for a PPP loan and provided an additional 30 days for the SBA to process pending PPP loan applications. We expect the Company’s volume of PPP loan originations will decline after March 31, 2021 compared to the level of originations during the first quarter of 2021.

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

		Total PPP Loans Funded						Outstanding PPP Loans ( 1)
(Dollars in millions)		#		$				#		$				Unearned income
March 31, 2021		4,304		$	474.2			2,577		$	248.7			$	6.9
December 31, 2020		2,681		$	348.5			2,410		$	259.3			$	5.3
(1) Outstanding loans are presented net of unearned income.

Vulnerable Industries

We believe loans to certain industries are uniquely vulnerable to credit deterioration stemming from the COVID-19 pandemic. The following table presents our exposure to those industries as of the dates indicated.

	March 31, 2021									December 31, 2020
(Dollars in millions)		Balance				% of Total Loans				Balance				% of Total Loans
Non-essential Retail		$	88.0			2.6		%		$	95.0			2.7		%
Restaurants		56.1				1.7				49.9				1.4
Hotels		114.4				3.4				117.0				3.4
CRE-Retail		191.1				5.7				203.7				5.8
Arts, Entertainment & Gaming		23.5				0.7				26.9				0.8
Total Vulnerable Industries Loan Portfolio		$	473.1			14.1		%		$	492.5			14.1		%

INCOME STATEMENT HIGHLIGHTS

Net Interest Income

Net interest income decreased to $38.6 million in the first quarter of 2021 from $39.0 million in the fourth quarter of 2020 as higher average earning asset volumes were offset by a 3 basis point decline in the net interest margin. In addition, net PPP loan fee income added $4.4 million in the first quarter of 2021 compared to $3.1 million in the linked quarter, whereas loan purchase discount accretion was $1.1 million in the first quarter of 2021, down from $1.5 million in the linked quarter.

Average interest earning assets increased $81.1 million to $5.2 billion in the first quarter of 2021, compared to the fourth quarter of 2020, as cash on hand and cash inflows from net loan pay-downs and deposit activity was used to purchase debt securities. The mix of interest earning assets shifted further to debt securities as non-PPP loan demand continued to be soft and line utilization was low.

The Company’s tax equivalent net interest margin was 3.10% in the first quarter of 2021 compared to 3.13% in the linked quarter, as lower earning asset yields were only partially offset by a reduction in average funding costs. Total earning asset yields decreased 9 bps from the linked quarter, reflecting the aforementioned shift in earning asset mix to debt securities that generally have lower yields than our loan portfolio. The cost of interest bearing liabilities decreased 8 bps to 0.56%, primarily as a result of interest bearing deposit costs of 0.40%, which declined 7 bps from the linked quarter.

“Although our balance sheet continues to grow thanks to higher deposit balances, thus generating more net interest income, low loan demand has necessitated purchasing investment securities with these deposits. We were helped in the quarter by a slightly steeper yield curve, but this yield spread remains historically narrow,” stated Mr. Funk.

Noninterest Income

Noninterest income for the first quarter of 2021 increased $1.2 million, or 11%, from the linked quarter. The increase was due primarily to a $0.8 million increase in loan revenue and an increase of $0.3 million in investment services and trust activities revenue. The increase in loan revenue was due primarily to a $0.9 million increase in the fair value of our mortgage servicing rights partially offset by a $0.2 million decrease in loan sale gains. Investment services and trust activities revenue reflected the earnings benefit from increased equity market valuations and fees collected in the normal course of those lines of business.

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

	Three Months Ended
Noninterest Income	March 31,				December 31,				March 31,
(In thousands)	2021				2020				2020
Investment services and trust activities	$	2,836			$	2,518			$	2,536
Service charges and fees	1,487				1,571				1,826
Card revenue	1,536				1,517				1,365
Loan revenue	4,730				3,900				1,123
Bank-owned life insurance	542				541				520
Investment securities gains, net	27				30				42
Other	666				549				2,743
Total noninterest income	$	11,824			$	10,626			$	10,155

Noninterest Expense

Noninterest expense for the first quarter of 2021 decreased $4.2 million, or 13.2%, from the linked quarter due primarily to decreases in other, legal and professional, and compensation and employee benefits of $1.7 million, $1.3 million, and $0.7 million, respectively. The decrease in other noninterest expense was primarily due to a $0.8 million loss on the termination of our cash flow hedge that was recorded in the fourth quarter of 2020, which did not recur in the first quarter of 2021, coupled with a reduction in tax credit partnership investment amortization of $0.6 million. The decrease in legal and professional expenses was primarily due to a $0.6 million fee incurred during the fourth quarter of 2020 related to a large contract renewal, which did not recur in the first quarter of 2021, coupled with an overall decline in legal and professional fees paid for regulatory, personnel and other services. The decrease in compensation and employee benefits reflected a $0.9 million benefit from SBA PPP loan origination costs which are deferred and amortized over the life of the loan to which they relate, coupled with a decline of $0.5 million in commission and incentive expense. Partially offsetting these decreases in compensation and employee benefits were increased salary and benefit costs of $0.7 million which stemmed from normal annual increases. Expense control was the primary driver to improvement in the Company’s efficiency ratio, which decreased 8.92% to 50.77%, as compared to the linked quarter efficiency ratio of 59.69%.

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

	Three Months Ended
Noninterest Expense	March 31,				December 31,				March 31,
(In thousands)	2021				2020				2020
Compensation and employee benefits	$	16,917			$	17,638			$	16,617
Occupancy expense of premises, net	2,318				2,476				2,341
Equipment	1,793				2,040				1,880
Legal and professional	783				2,052				1,535
Data processing	1,252				1,460				1,354
Marketing	1,006				986				1,062
Amortization of intangibles	1,507				1,569				2,028
FDIC insurance	512				495				448
Communications	409				412				457
Foreclosed assets, net	47				(35		)		138
Other	1,156				2,822				2,141
Total noninterest expense	$	27,700			$	31,915			$	30,001

Income Taxes

The effective income tax rate was 21.2% in the first quarter of 2021 compared to 19.6% in the linked quarter. The effective income tax rate in the first quarter of 2021 reflected an increase in income taxes 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 CAPITAL HIGHLIGHTS	As of or For the Three Months Ended
	March 31,				December 31,				March 31,
(Dollars in millions, except per share amounts)	2021				2020				2020
Ending Balance Sheet
Total assets	$	5,737.3			$	5,556.6			$	4,763.9
Loans held for investment, net of unearned income	3,358.2				3,482.2				3,425.8
Total securities held for investment	1,896.9				1,657.4				881.9
Total deposits	4,794.6				4,547.0				3,859.8
Average Balance Sheet
Average total assets	$	5,520.3			$	5,457.9			$	4,669.7
Average total loans	3,429.7				3,560.6				3,436.3
Average total deposits	4,573.9				4,490.0				3,760.0
Funding and Liquidity
Short-term borrowings	$	175.8			$	230.8			$	129.5
Long-term debt	201.7				208.7				209.9
Loans to deposits ratio	70.04		%		76.58		%		88.75		%
Equity
Total shareholders’ equity	$	511.3			$	515.3			$	500.6
Common equity ratio	8.91		%		9.27		%		10.51		%
Tangible common equity(1)	425.1				427.5				376.4
Tangible common equity ratio(1)	7.52		%		7.82		%		8.11		%
Per Share Data
Book value	$	32.00			$	32.17			$	31.11
Tangible book value(1)	$	26.60			$	26.69			$	23.39
(1) Non-GAAP Measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

Loans Held for Investment

Loans held for investment, net of unearned income, decreased $124.1 million, or 4%, to $3.36 billion from December 31, 2020, driven primarily by net loan pay-downs and lower line utilization.

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

Loans Held for Investment	March 31, 2021							December 31, 2020							March 31, 2020
(dollars in thousands)	Balance				% of Total			Balance				% of Total			Balance				% of Total
Commercial and industrial	$	993,770			29.6		%	$	1,055,488			30.3		%	$	864,702			25.2		%
Agricultural	117,099				3.5			116,392				3.3			145,435				4.2
Commercial real estate
Construction and development	164,927				4.9			181,291				5.2			282,921				8.3
Farmland	138,199				4.1			144,970				4.2			168,777				4.9
Multifamily	261,806				7.8			256,525				7.4			217,108				6.3
Other	1,128,660				33.6			1,149,575				33.0			1,111,640				32.5
Total commercial real estate	1,693,592				50.4			1,732,361				49.8			1,780,446				52.0
Residential real estate
One-to-four family first liens	337,408				10.0			355,684				10.2			389,055				11.4
One-to-four family junior liens	137,025				4.1			143,422				4.1			165,235				4.8
Total residential real estate	474,433				14.1			499,106				14.3			554,290				16.2
Consumer	79,267				2.4			78,876				2.3			80,889				2.4
Loans held for investment, net of unearned income	$	3,358,161			100.0		%	$	3,482,223			100.0		%	$	3,425,762			100.0		%

Mr. Funk noted, “Loan demand remains weak in most areas of our geographic footprint. This is evidenced by credit line utilization of only 32% during the quarter compared to 46% in the first quarter of 2020. We believe loan demand will improve as the national economy opens up.”

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
Allowance for Credit Losses Roll Forward	March 31,				December 31,				March 31,
(In thousands)	2021				2020				2020
Beginning balance	$	55,500			$	58,500			$	29,079
Cumulative effect of change in accounting principle – CECL	—				—				3,984
Charge-offs	(1,003		)		(1,005		)		(1,497		)
Recoveries	687				646				299
Net charge-offs	(316		)		(359		)		(1,198		)
Credit loss (benefit) expense related to loans	(4,534		)		(2,641		)		19,322
Ending balance	$	50,650			$	55,500			$	51,187

As of March 31, 2021, the allowance for credit losses (“ACL”) was $50.7 million, or 1.51% of loans held for investment, net of unearned income, compared with $55.5 million, or 1.59%, at December 31, 2020. After excluding net PPP loans, the ACL as a percentage of loans held for investment, net of unearned income, decreased to 1.63%⁽¹⁾ as of March 31, 2021, from 1.72%⁽¹⁾ at December 31, 2020. The decline in the ACL during the first quarter reflected overall improvements in the economic forecast and an improved 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.

“We believe that our ACL is sufficient to weather the challenges that lie ahead,” stated Mr. Funk.

Deposits

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

Deposit Composition	March 31, 2021							December 31, 2020							March 31, 2020
(In thousands)	Balance				% of Total			Balance				% of Total			Balance				% of Total
Noninterest bearing deposits	$	958,526			20.0		%	$	910,655			20.0		%	$	637,127			16.5		%
Interest checking deposits	1,406,070				29.4			1,351,641				29.7			995,762				25.8
Money market deposits	950,300				19.8			918,654				20.2			793,482				20.6
Savings deposits	580,862				12.1			529,751				11.7			404,100				10.5
Total non-maturity deposits	3,895,758				81.3			3,710,701				81.6			2,830,471				73.4
Time deposits of $250,000 and under	558,338				11.6			581,471				12.8			688,409				17.8
Time deposits over $250,000	340,467				7.1			254,877				5.6			340,964				8.8
Total time deposits	898,805				18.7			836,348				18.4			1,029,373				26.6
Total deposits	$	4,794,563			100.0		%	$	4,547,049			100.0		%	$	3,859,844			100.0		%

CREDIT RISK PROFILE

	As of or For the Three Months Ended
Highlights	March 31,					December 31,					March 31,
(dollars in thousands)	2021					2020					2020
Credit loss (benefit) expense related to loans	$	(4,534	)			$	(2,641	)			$	19,322
Net charge-offs	$	316				$	359				$	1,198
Net charge-off ratio(1)	0.04			%		0.04			%		0.14		%
At period-end
Pass	$	3,112,728				$	3,202,704				$	3,231,725
Special Mention / Watch	130,052					157,213					117,301
Classified	115,381					122,306					76,736
Total loans held for investment, net	$	3,358,161				$	3,482,223				$	3,425,762
Classified loans ratio(2)	3.44			%		3.51			%		2.24		%
Nonaccrual loans held for investment	$	43,874				$	41,950				$	43,973
Accruing loans contractually past due 90 days or more	508					739					303
Total nonperforming loans	44,382					42,689					44,276
Foreclosed assets, net	1,487					2,316					968
Total nonperforming assets (3)	$	45,869				$	45,005				$	45,244
Nonperforming loans ratio(4)	1.32			%		1.23			%		1.29		%
Nonperforming assets ratio(5)	0.80			%		0.81			%		0.95		%
Allowance for credit losses	$	50,650				$	55,500				$	51,187
Allowance for credit losses ratio(6)	1.51			%		1.59			%		1.49		%
Adjusted allowance for credit losses ratio(7)	1.63			%		1.72			%		1.49		%
Performing troubled debt restructured loans held for investment	$	2,230				$	2,630				$	4,359
(1) Net charge-off ratio is calculated as annualized net charge-offs divided by average loans held for investment, net of unearned income, during the period.
(2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
(3) Starting in the second quarter of 2020, performing troubled debt restructured loans held for investment are no longer included in nonperforming assets. Prior period credit quality metrics have been adjusted to exclude these loans.
(4) Nonperforming loans ratio is calculated as total nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
(5) Nonperforming assets ratio is calculated as total nonperforming assets divided by total assets at the end of the period.
(6) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
(7) Non-GAAP Measure. See the Non-GAAP Measures section for a reconciliation to 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 & Still Accruing				Total
Balance at December 31, 2020	$	41,950			$	739			$	42,689
Loans placed on nonaccrual or 90+ days past due & still accruing	5,521				228				5,749
Repayments (including interest applied to principal)	(2,514		)		1				(2,513		)
Loans returned to accrual status or no longer past due	(268		)		(330		)		(598		)
Charge-offs	(715		)		(130		)		(845		)
Transfers to foreclosed assets	(100		)		—				(100		)
Balance at March 31, 2021	$	43,874			$	508			$	44,382

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 CECL. 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.

	March 31,			December 31,			March 31,
Regulatory Capital Ratios	2021 (1)			2020			2020
MidWest One Financial Group, Inc. Consolidated
Tier 1 leverage ratio	8.78	%		8.50	%		9.39	%
Common equity tier 1 capital ratio	10.16	%		9.72	%		9.25	%
Tier 1 capital ratio	11.13	%		10.70	%		10.25	%
Total capital ratio	13.75	%		13.41	%		11.48	%
MidWest One Bank
Tier 1 leverage ratio	9.60	%		9.35	%		10.03	%
Common equity tier 1 capital ratio	12.19	%		11.79	%		10.95	%
Tier 1 capital ratio	12.19	%		11.79	%		10.95	%
Total capital ratio	13.19	%		12.89	%		12.03	%
(1) Capital ratios for March 31, 2021 are preliminary

CORPORATE UPDATE

Share Repurchase Program

During the first quarter of 2021, the Company repurchased 62,588 shares of its common stock at an average price of $27.14 per share and a total cost of $1.7 million. At March 31, 2021, $2.7 million remained available to repurchase shares under the Company’s current share repurchase program.

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 23, 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 July 29, 2021, by calling 877-344-7529 and using the replay access code of 10153549. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWEST

ONE

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 potential effects on the economic environment, our customers and our operations, 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, including the Coronavirus Aid, Relief, and Economic Security Act, the Consolidated Appropriations Act, 2021 and the American Rescue Plan; (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) 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; (5) the effects of interest rates, including on our net income and the value of our securities portfolio; (6) 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; (7) fluctuations in the value of our investment securities; (8) governmental monetary and fiscal policies; (9) changes in and uncertainty related to benchmark interest rates used to price loans and deposits, including the expected elimination of LIBOR; (10) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators; (11) the ability to attract and retain key executives and employees experienced in banking and financial services; (12) the sufficiency of the allowance for credit losses to absorb the amount of actual losses inherent in our existing loan portfolio; (13) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (14) credit risks and risks from concentrations (by geographic area and by industry) within our loan portfolio; (15) 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; (16) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (17) the risks of mergers, 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; (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.

MIDWEST ONE FINANCIAL GROUP, INC. AND SUBSIDIARIES FIVE QUARTER CONSOLIDATED BALANCE SHEETS
	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands)	2021				2020				2020				2020				2020
ASSETS
Cash and due from banks	$	57,154			$	65,078			$	71,901			$	65,863			$	60,396
Interest earning deposits in banks	80,924				17,409				55,421				45,018				58,319
Federal funds sold	7,691				172				7,540				6,329				6,830
Total cash and cash equivalents	145,769				82,659				134,862				117,210				125,545
Debt securities available for sale at fair value	1,896,894				1,657,381				1,366,344				1,187,455				881,859
Loans held for sale	58,333				59,956				13,096				12,048				9,483
Gross loans held for investment	3,374,076				3,496,790				3,555,969				3,618,675				3,440,907
Unearned income, net	(15,915		)		(14,567		)		(18,537		)		(21,636		)		(15,145		)
Loans held for investment, net of unearned income	3,358,161				3,482,223				3,537,432				3,597,039				3,425,762
Allowance for credit losses	(50,650		)		(55,500		)		(58,500		)		(55,644		)		(51,187		)
Total loans held for investment, net	3,307,511				3,426,723				3,478,932				3,541,395				3,374,575
Premises and equipment, net	85,581				86,401				87,955				88,929				89,860
Goodwill	62,477				62,477				62,477				93,977				93,977
Other intangible assets, net	23,735				25,242				26,811				28,443				30,190
Foreclosed assets, net	1,487				2,316				724				965				968
Other assets	155,525				153,493				159,507				160,541				157,452
Total assets	$	5,737,312			$	5,556,648			$	5,330,708			$	5,230,963			$	4,763,909
LIABILITIES
Noninterest bearing deposits	$	958,526			$	910,655			$	864,504			$	867,637			$	637,127
Interest bearing deposits	3,836,037				3,636,394				3,469,137				3,397,798				3,222,717
Total deposits	4,794,563				4,547,049				4,333,641				4,265,435				3,859,844
Short-term borrowings	175,785				230,789				183,893				162,224				129,489
Long-term debt	201,696				208,691				245,481				189,973				209,874
Other liabilities	53,948				54,869				68,612				92,550				64,138
Total liabilities	5,225,992				5,041,398				4,831,627				4,710,182				4,263,345
SHAREHOLDERS’ EQUITY
Common stock	16,581				16,581				16,581				16,581				16,581
Additional paid-in capital	299,747				300,137				299,939				299,542				299,412
Retained earnings	206,230				188,191				175,017				198,382				190,212
Treasury stock	(15,278		)		(14,251		)		(12,272		)		(12,272		)		(12,518		)
Accumulated other comprehensive income	4,040				24,592				19,816				18,548				6,877
Total shareholders’ equity	511,320				515,250				499,081				520,781				500,564
Total liabilities and shareholders’ equity	$	5,737,312			$	5,556,648			$	5,330,708			$	5,230,963			$	4,763,909

MIDWEST ONE FINANCIAL GROUP, INC. AND SUBSIDIARIES FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except per share data)	2021				2020				2020				2020				2020
Interest income
Loans, including fees	$	36,542			$	38,239			$	38,191			$	40,214			$	42,012
Taxable investment securities	5,093				4,673				4,574				4,646				3,717
Tax-exempt investment securities	2,555				2,529				2,360				1,858				1,512
Other	14				29				29				40				164
Total interest income	44,204				45,470				45,154				46,758				47,405
Interest expense
Deposits	3,608				4,265				5,296				6,409				7,949
Short-term borrowings	128				142				175				263				334
Long-term debt	1,851				2,026				1,874				1,374				1,716
Total interest expense	5,587				6,433				7,345				8,046				9,999
Net interest income	38,617				39,037				37,809				38,712				37,406
Credit loss (benefit) expense	(4,734		)		(3,041		)		4,992				4,685				21,733
Net interest income after credit loss (benefit) expense	43,351				42,078				32,817				34,027				15,673
Noninterest income
Investment services and trust activities	2,836				2,518				2,361				2,217				2,536
Service charges and fees	1,487				1,571				1,491				1,290				1,826
Card revenue	1,536				1,517				1,600				1,237				1,365
Loan revenue	4,730				3,900				3,252				1,910				1,123
Bank-owned life insurance	542				541				530				635				520
Investment securities gains, net	27				30				106				6				42
Other	666				549				230				974				2,743
Total noninterest income	11,824				10,626				9,570				8,269				10,155
Noninterest expense
Compensation and employee benefits	16,917				17,638				16,460				15,682				16,617
Occupancy expense of premises, net	2,318				2,476				2,278				2,253				2,341
Equipment	1,793				2,040				1,935				2,010				1,880
Legal and professional	783				2,052				1,184				1,382				1,535
Data processing	1,252				1,460				1,308				1,240				1,354
Marketing	1,006				986				857				910				1,062
Amortization of intangibles	1,507				1,569				1,631				1,748				2,028
FDIC insurance	512				495				470				445				448
Communications	409				412				428				449				457
Foreclosed assets, net	47				(35		)		13				34				138
Goodwill impairment	—				—				31,500				—				—
Other	1,156				2,822				1,875				1,885				2,141
Total noninterest expense	27,700				31,915				59,939				28,038				30,001
Income (loss) before income tax expense	27,475				20,789				(17,552		)		14,258				(4,173		)
Income tax expense (benefit)	5,827				4,079				2,272				2,546				(2,198		)
Net income (loss)	$	21,648			$	16,710			$	(19,824	)		$	11,712			$	(1,975	)
Earnings (loss) per common share
Basic	$	1.35			$	1.04			$	(1.23	)		$	0.73			$	(0.12	)
Diluted	$	1.35			$	1.04			$	(1.23	)		$	0.73			$	(0.12	)
Weighted average basic common shares outstanding	15,991				16,074				16,099				16,094				16,142
Weighted average diluted common shares outstanding	16,021				16,092				16,099				16,100				16,142
Dividends paid per common share	$	0.2250			$	0.2200			$	0.2200			$	0.2200			$	0.2200

MIDWEST ONE FINANCIAL GROUP, INC. AND SUBSIDIARIES FINANCIAL STATISTICS
	As of or for the three months ended
	March 31,					December 31,					March 31,
(Dollars in thousands, except per share amounts)	2021					2020					2020
Earnings:
Net interest income	$	38,617				$	39,037				$	37,406
Noninterest income	11,824					10,626					10,155
Total revenue, net of interest expense	50,441					49,663					47,561
Credit loss (benefit) expense	(4,734		)			(3,041		)			21,733
Noninterest expense	27,700					31,915					30,001
Income (loss) before income tax expense (benefit)	27,475					20,789					(4,173		)
Income tax expense (benefit)	5,827					4,079					(2,198		)
Net income (loss)	$	21,648				$	16,710				$	(1,975	)
Per Share Data:
Diluted earnings (loss)	$	1.35				$	1.04				$	(0.12	)
Book value	32.00					32.17					31.11
Tangible book value(1)	26.60					26.69					23.39
Ending Balance Sheet:
Total assets	$	5,737,312				$	5,556,648				$	4,763,909
Loans held for investment, net of unearned income	3,358,161					3,482,223					3,425,762
Total securities held for investment	1,896,894					1,657,381					881,859
Total deposits	4,794,563					4,547,049					3,859,844
Short-term borrowings	175,785					230,789					129,489
Long-term debt	201,696					208,691					209,874
Total shareholders’ equity	511,320					515,250					500,564
Average Balance Sheet:
Average total assets	$	5,520,304				$	5,457,939				$	4,669,724
Average total loans	3,429,746					3,560,632					3,436,263
Average total deposits	4,573,898					4,490,048					3,760,016
Financial Ratios:
Return on average assets	1.59			%		1.22			%		(0.17		)	%
Return on average equity	17.01			%		13.15			%		(1.54		)	%
Return on average tangible equity(1)	21.52			%		17.07			%		(0.47		)	%
Efficiency ratio(1)	50.77			%		59.69			%		57.67			%
Net interest margin, tax equivalent(1)	3.10			%		3.13			%		3.60			%
Loans to deposits ratio	70.04			%		76.58			%		88.75			%
Common equity ratio	8.91			%		9.27			%		10.51			%
Tangible common equity ratio(1)	7.52			%		7.82			%		8.11			%
Credit Risk Profile:
Total nonperforming loans	$	44,382				$	42,689				$	44,276
Nonperforming loans ratio	1.32			%		1.23			%		1.29			%
Total nonperforming assets	$	45,869				$	45,005				$	45,244
Nonperforming assets ratio	0.80			%		0.81			%		0.95			%
Performing troubled debt restructured loans held for investment	$	2,230				$	2,630				$	4,359
Net charge-offs	$	316				$	359				$	1,198
Net charge-off ratio	0.04			%		0.04			%		0.14			%
Allowance for credit losses	$	50,650				$	55,500				$	51,187
Allowance for credit losses ratio	1.51			%		1.59			%		1.49			%
Adjusted allowance for credit losses ratio(1)	1.63			%		1.72			%		1.49			%
PPP Loans:
Average PPP loans	$	236,231				$	313,252				—
Fee Income	4,377					3,059					—
(1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

MIDWEST ONE FINANCIAL GROUP, INC. AND SUBSIDIARIES AVERAGE BALANCE SHEET AND YIELD ANALYSIS
	Three Months Ended
	March 31, 2021											December 31, 2020											March 31, 2020
(Dollars in thousands)	Average Balance				Interest Income/ Expense				Average Yield/ Cost			Average Balance				Interest Income/ Expense				Average Yield/ Cost			Average Balance				Interest Income/ Expense				Average Yield/ Cost
ASSETS
Loans, including fees (1)(2)(3)	$	3,429,746			$	37,073			4.38	%		$	3,560,632			$	38,795			4.33	%		$	3,436,263			$	42,509			4.98	%
Taxable investment securities	1,266,714				5,093				1.63	%		1,026,359				4,673				1.81	%		567,001				3,717				2.64	%
Tax-exempt investment securities (2)(4)	465,793				3,203				2.79	%		450,659				3,180				2.81	%		224,171				1,907				3.42	%
Total securities held for investment(2)	1,732,507				8,296				1.94	%		1,477,018				7,853				2.12	%		791,172				5,624				2.86	%
Other	36,536				14				0.16	%		80,019				29				0.14	%		55,833				164				1.18	%
Total interest earning assets(2)	$	5,198,789			45,383				3.54	%		$	5,117,669			46,677				3.63	%		$	4,283,268			48,297				4.54	%
Other assets	321,515											340,270											386,456
Total assets	$	5,520,304										$	5,457,939										$	4,669,724
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,349,671			$	991			0.30	%		$	1,276,320			$	958			0.30	%		$	965,077			$	1,316			0.55	%
Money market deposits	913,087				478				0.21	%		931,900				544				0.23	%		766,766				1,645				0.86	%
Savings deposits	553,824				286				0.21	%		508,763				279				0.22	%		393,833				391				0.40	%
Time deposits	837,460				1,853				0.90	%		862,408				2,484				1.15	%		997,136				4,597				1.85	%
Total interest bearing deposits	3,654,042				3,608				0.40	%		3,579,391				4,265				0.47	%		3,122,812				7,949				1.02	%
Short-term borrowings	175,193				128				0.30	%		182,080				142				0.31	%		121,942				334				1.10	%
Long-term debt	205,971				1,851				3.64	%		223,407				2,026				3.61	%		225,587				1,716				3.06	%
Total borrowed funds	381,164				1,979				2.11	%		405,487				2,168				2.13	%		347,529				2,050				2.37	%
Total interest bearing liabilities	$	4,035,206			$	5,587			0.56	%		$	3,984,878			$	6,433			0.64	%		$	3,470,341			$	9,999			1.16	%
Noninterest bearing deposits	919,856											910,657											637,204
Other liabilities	49,003											56,898											47,010
Shareholders’ equity	516,239											505,506											515,169
Total liabilities and shareholders’ equity	$	5,520,304										$	5,457,939										$	4,669,724
Net interest income(2)					$	39,796										$	40,244										$	38,298
Net interest spread(2)									2.98	%										2.99	%										3.38	%
Net interest margin(2)									3.10	%										3.13	%										3.60	%
Total deposits(5)	$	4,573,898			$	3,608			0.32	%		$	4,490,048			$	4,265			0.38	%		$	3,760,016			$	7,949			0.85	%
Cost of funds(6)									0.46	%										0.52	%										0.98	%

(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, $2.5 million, and $(122) thousand for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively. Loan purchase discount accretion was $1.1 million, $1.5 million, and $3.0 million for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively. Tax equivalent adjustments were $531 thousand, $556 thousand, and $497 thousand for the three months ended March 31, 2021, December 31, 2020, and March 31, 2020, respectively. The federal statutory tax rate utilized was 21%.
(4) Interest income includes tax equivalent adjustments of $648 thousand, $651 thousand, and $395 thousand for the three months ended March 31, 2021, December 31, 2020, and March 31, 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 Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity Ratio		March 31,					December 31,					September 30,					June 30,					March 31,
(Dollars in thousands, except per share data)		2021					2020					2020					2020					2020
Total shareholders’ equity		$	511,320				$	515,250				$	499,081				$	520,781				$	500,564
Intangible assets, net		(86,212		)			(87,719		)			(89,288		)			(122,420		)			(124,167		)
Tangible common equity		$	425,108				$	427,531				$	409,793				$	398,361				$	376,397
Total assets		$	5,737,312				$	5,556,648				$	5,330,708				$	5,230,963				$	4,763,909
Intangible assets, net		(86,212		)			(87,719		)			(89,288		)			(122,420		)			(124,167		)
Tangible assets		$	5,651,100				$	5,468,929				$	5,241,420				$	5,108,543				$	4,639,742
Book value per share		$	32.00				$	32.17				$	31.00				$	32.35				$	31.11
Tangible book value per share(1)		$	26.60				$	26.69				$	25.45				$	24.74				$	23.39
Shares outstanding		15,981,088					16,016,780					16,099,324					16,099,324					16,089,782
Common equity ratio		8.91			%		9.27			%		9.36			%		9.96			%		10.51			%
Tangible common equity ratio(2)		7.52			%		7.82			%		7.82			%		7.80			%		8.11			%

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

		Three Months Ended
Return on Average Tangible Equity		March 31,					December 31,					March 31,
(Dollars in thousands)		2021					2020					2020
Net income (loss)		$	21,648				$	16,710				$	(1,975	)
Intangible amortization, net of tax(1)		1,130					1,177					1,521
Tangible net income (loss)		$	22,778				$	17,887				$	(454	)
Average shareholders’ equity		$	516,239				$	505,506				$	515,169
Average intangible assets, net		(86,961		)			(88,543		)			(122,948		)
Average tangible equity		$	429,278				$	416,963				$	392,221
Return on average equity		17.01			%		13.15			%		(1.54		)	%
Return on average tangible equity(2)		21.52			%		17.07			%		(0.47		)	%

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

Net Interest Margin, Tax Equivalent/		Three Months Ended
Core Net Interest Margin		March 31,					December 31,					March 31,
(Dollars in thousands)		2021					2020					2020
Net interest income		$	38,617				$	39,037				$	37,406
Tax equivalent adjustments:
Loans(1)		531					556					497
Securities(1)		648					651					395
Net interest income, tax equivalent		$	39,796				$	40,244				$	38,298
Loan purchase discount accretion		(1,098		)			(1,542		)			(3,023		)
Core net interest income		$	38,698				$	38,702				$	35,275
Net interest margin		3.01			%		3.03			%		3.51			%
Net interest margin, tax equivalent(2)		3.10			%		3.13			%		3.60			%
Core net interest margin(3)		3.02			%		3.01			%		3.31			%
Average interest earning assets		$	5,198,789				$	5,117,669				$	4,283,268

(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.

		Three Months Ended
Loan Yield, Tax Equivalent / Core Yield on Loans		March 31,					December 31,					March 31,
(Dollars in thousands)		2021					2020					2020
Loan interest income, including fees		$	36,542				$	38,239				$	42,012
Tax equivalent adjustment(1)		531					556					497
Tax equivalent loan interest income		$	37,073				$	38,795				$	42,509
Loan purchase discount accretion		(1,098		)			(1,542		)			(3,023		)
Core loan interest income		$	35,975				$	37,253				$	39,486
Yield on loans		4.32			%		4.27			%		4.92			%
Yield on loans, tax equivalent(2)		4.38			%		4.33			%		4.98			%
Core yield on loans(3)		4.25			%		4.16			%		4.62			%
Average loans		$	3,429,746				$	3,560,632				$	3,436,263

(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
Efficiency Ratio		March 31,					December 31,					March 31,
(Dollars in thousands)		2021					2020					2020
Total noninterest expense		$	27,700				$	31,915				$	30,001
Amortization of intangibles		(1,507		)			(1,569		)			(2,028		)
Merger-related expenses		—					—					(54		)
Noninterest expense used for efficiency ratio		$	26,193				$	30,346				$	27,919
Net interest income, tax equivalent(1)		$	39,796				$	40,244				$	38,298
Noninterest income		11,824					10,626					10,155
Investment securities gains, net		(27		)			(30		)			(42		)
Net revenues used for efficiency ratio		$	51,593				$	50,840				$	48,411
Efficiency ratio (2)		50.77			%		59.69			%		57.67			%

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

Adjusted Allowance for Credit Losses Ratio		March 31,					December 31,					September 30,					June 30,					March 31,
(Dollars in thousands)		2021					2020					2020					2020					2020
Loans held for investment, net of unearned income		$	3,358,161				$	3,482,223				$	3,537,432				$	3,597,039				$	3,425,762
PPP loans		(248,682		)			(259,260		)			(331,703		)			(327,648		)			—
Core loans		$	3,109,479				$	3,222,963				$	3,205,729				$	3,269,391				$	3,425,762
Allowance for credit losses		$	50,650				$	55,500				$	58,500				$	55,644				$	51,187
Allowance for credit losses ratio		1.51			%		1.59			%		1.65			%		1.55			%		1.49		%
Adjusted allowance for credit losses ratio(1)		1.63			%		1.72			%		1.82			%		1.70			%		1.49		%

(1) Allowance for credit losses divided by core loans

Core Loans/Core Commercial Loans		March 31,				December 31,				September 30,				June 30,				March 31,
(Dollars in thousands)		2021				2020				2020				2020				2020
Commercial loans:
Commercial and industrial		$	993,770			$	1,055,488			$	1,103,102			$	1,084,527			$	864,702
Agricultural		117,099				116,392				129,453				140,837				145,435
Commercial real estate		1,693,592				1,732,361				1,707,035				1,764,739				1,780,446
Total commercial loans		$	2,804,461			$	2,904,241			$	2,939,590			$	2,990,103			$	2,790,583
Consumer loans:
Residential real estate		$	474,433			$	499,106			$	521,570			$	532,914			$	554,290
Other consumer		79,267				78,876				76,272				74,022				80,889
Total consumer loans		$	553,700			$	577,982			$	597,842			$	606,936			$	635,179
Loans held for investment, net of unearned income		$	3,358,161			$	3,482,223			$	3,537,432			$	3,597,039			$	3,425,762
PPP loans		$	248,682			$	259,260			$	331,703			$	327,648			$	—
Core loans(1)		$	3,109,479			$	3,222,963			$	3,205,729			$	3,269,391			$	3,425,762
Core commercial loans(2)		$	2,555,779			$	2,644,981			$	2,607,887			$	2,662,455			$	2,790,583

(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.

Category: Earnings

This news release may be downloaded from https://www.midwestonefinancial.com/corporate-profile/default.aspx

Source: MidWestOne Financial Group, Inc.

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