Terry McEvoy's questions to MidWestOne Financial Group (MOFG) leadership • Q2 2025
Question
Terry McEvoy from Stephens Inc. asked for details regarding the $24 million CRE office loan that moved to nonaccrual, questioning what specifically happened. He also requested information on other large CRE credits and sought clarity on the revised expense guidance, including investments in operational efficiencies and hiring.
Answer
SVP & Chief Credit Officer Gary Sims detailed that the suburban Minneapolis loan, originated in 2022, saw the sponsor stop making payments, prompting legal action. He noted the next largest office loan is a performing $12 million credit. CEO Charles Reeves explained the higher expense guidance is due to strategic hires in the Twin Cities and Denver, alongside technology investments in workflow management and digital banking.