Barry Ray
Senior Executive VP, CFO & Treasurer at Midwestone Financial Group
Thank you, Lynn. Starting with the balance sheet on Slide 11, total assets declined $316,000,000 from September 30, 2024, due primarily to the deleveraging of our balance sheet from the repositioning executed early in Q4. As a reminder, net repositioning included the sale of $1,000,000,000 of securities, primarily in corporates, munis and CMOs that had a book yield of 1.58%. Proceeds from the sales were used to pay in full for an $18,700,000 of Federal Reserve Bank Term Funding Program borrowings that were costing 4.77 percent and to purchase $590,000,000 of Agency CMO and pass through securities yielding 4.65%. Lynn covered the loan and deposit changes, so I'll touch on shareholders' equity, which decreased $2,500,000 from September 30, 2024 to $560,000,000 as an unfavorable $14,000,000 adjustment accumulated other comprehensive loss was only partially offset by an $11,000,000 increase in retained earnings. The company's consolidated CET1 ratio was 10.73% at year end 2024, up 82 basis points from September 30, 2024, reflecting in part benefits from the balance sheet repositioning. Turning to the income statement on Slide 13, we reported net income of $16,300,000 or $0.78 per diluted common share. Net interest income increased $11,400,000 in the 4th quarter to $48,900,000 as compared to the linked quarter due primarily to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.