MidWestOne Financial Group, Inc. Q3 FY2025 earnings call

• Announced the acquisition of MidWestOne Financial Group, Inc., which had $6.2 billion in assets as of 09/30/2025 and adds over $3.4 billion in assets under management.
• Nikolay's past actions: sold $500 million of U.S. Treasuries in 2023, repositioned balance sheet, achieving ten straight quarters of improving net interest margin and top quartile ROAA/ROATCE.
• Details of the MidWestOne acquisition: complementary balance sheets, combined loan-to-deposit ratio of 85%, financial attractiveness with 35%-40% EPS accretion for Nikolay shareholders, negligible tangible book value dilution, and cultural similarities.
• Integration plan: Targeting legal closing in 2026, systems conversion in summer/fall 2026, with 50% of cost savings modeled in 2026.

No product segment performance discussed; focus is on the acquisition of MidWestOne Financial Group, Inc.

• Full-year fully phased-in EPS accretion of approximately 35%-40% for Nikolay shareholders.
• Pro forma company expected to have peer-leading profitability metrics.
• Estimated $8.5 million negative impact to interchange income starting 2027 due to crossing $10 billion threshold.
• Modeling 25% cost savings, no revenue synergies identified yet but potential in wealth, commercial, ag.
• Pro forma CET1 ratio forecasted to be 10.5%, TCE ratio 8.4% at close, no need to raise subordinated debt or equity.

• Uncertainty around integration process and its impact on financial metrics.
• Challenges in maintaining culture and mattering in new markets like Denver and the Twin Cities.
• Impact of regulatory changes, such as the $8.5 million interchange income hit starting in 2027.

Q: Discussion on Denver market evaluation and investment needs A: Mike Daniels says it's early, focusing on consistency and mattering Q: Culture maintenance in new markets A: Mike Daniels emphasizes intentionality, transparency, and shared success model Q: Nikolay's core margin outlook A: Mike Daniels expects margin to stay flat, with back book repricing and deposit positioning Q: MOFG talent retention, tech integration, and business lines complementarity A: Mike Daniels talks about talent retention, tech integration, and no major business line overlaps Q: Twin Cities market share acceleration and integration playbook A: Mike Daniels discusses leveraging relationship banking model and people-focused integration Q: Product/service synergies and Denver strategy evaluation A: Mike Daniels mentions wealth book opportunities and Denver evaluated through shareholder lens