Why MidWestOne Financial Rocketed Over 33% Today
Shares of MidWestOne Financial (NASDAQ: MOFG) rallied a whopping 33.3% as of 1:02 p.m. ET Friday.
MidWestOne reported earnings last night and delivered an earnings beat. However, the massive stock rally was primarily due to the announcement that the company had agreed to be acquired by Nicolet Bancshares (NYSE: NIC) in an all-stock deal.
In its third quarter, MidWestOne delivered an impressive profit expansion and bottom-line beat even as revenue came up a bit short of expectations. Net interest income grew a whopping 35.9%, as net interest margin expanded thanks to the more favorable interest rate environment and the Fed's recent cuts. Moreover, provisions for credit losses declined. That enabled adjusted (non-GAAP) earnings per share to grow 50%, even as total revenue net of interest expense came up just short of analyst expectations.
Source Fool.com
