MidWestOne posts 3Q loss after raising capital, selling securities
MidWestOne Financial Group in Iowa City posted a big quarterly loss after repositioning its balance sheet.
The $6.6 billion-asset company lost $95.7 million in the third quarter after selling $1 billion of debt securities. MidWestOne used the proceeds to buy $590 million of higher-yielding debt securities; the earnback period will be between four and five years.
MidWestOne also said its financial results included a $1.2 million fraud loss tied to a single incident.
“Our successful … capital raise and balance sheet repositioning are significant, transformational steps towards our goal of creating a high-performing company,” CEO Chip Reeves said in the release.
“We were pleased with the market receptivity of the oversubscribed common equity offering and the balance sheet repositioning financial results exceeded our communicated expectations,” he added.