MidWestOne Financial Group, Inc. (NASDAQ:MOFG) Q1 2022 Earnings Conference Call April 29, 2022 12:00 PM ET
Company Participants
Charles Funk - CEO
Barry Ray - CFO
Gary Sims - CCO
Jim Cantrell - Treasurer & CIO
Len Devaisher - President
Conference Call Participants
Brendan Nosal - Piper Sandler
Terry McEvoy - Stephens Inc.
Jeffrey Rulis - D. A. Davidson
Damon DelMonte - KBW
Brian Martin - Janney
Charles Funk
Good day everyone.
In the room today in Iowa City with me, Barry Ray, our Chief Financial Officer; Gary Sims, our Chief Credit Officer; Jim Cantrell, our Treasurer and Chief Investment Officer; and our President, Len Devaisher. I'll give a brief overview of the quarter and then let Barry and Len speak to some of the specifics.
As we did have a few unusual items in the report this quarter, we're very happy to report a fourth consecutive quarter of loan growth, which was around the 5% mark linked quarter annualized. And we feel like there's a good pipeline in store for us as we go through the rest of the year. It's notable that we did swing and miss on a number of deals because competition again is very, very keen.
To give you an idea, we lost a fairly sizable loan that was in our portfolio about a month ago. And the term was 330 fixed for 10 years. And we in some markets, not all we do see the loan devalues being pushed, as well. As I said, we have a good portfolio of construction loan spending as the year progresses. And in terms of the growth that we saw in the quarter, I would specifically highlight the Twin Cities market. Our Des Moines and Iowa City Market in Iowa and Southwest Florida stood out in our quarter. And we also were able to hire a Senior Commercial Banker at a senior management level in our Iowa footprint well-known throughout Eastern Iowa and we feel like that will be a huge benefit to our company going forward.
As I said we have a good pipeline to start the second quarter and I would include Denver in that group as having a very strong pipeline.
We did report a sizable MSR adjustment and that clearly helped our earnings during the quarter. I think several years ago, when we consciously decided to build our servicing portfolio, it was for a time such as these when production, mortgage production would be down, usually due to rising interest rates, and that would be partially offset by positive MSR adjustments. So it worked pretty well at least in this quarter.