The Midwest is not exactly the most attractive banking
market these days, but sometimes you can find worthwhile opportunities
in unusual places. That may well prove to be the case with MidWestOne Financial (MOFG),
as this Iowa-based bank continues to invest in growth in larger metro
areas like Denver and the Twin Cities while possibly starting to turn
its eye towards consolidating its local market.
I
certainly have some concerns regarding MidWestOne, including a track
record that isn’t the greatest with respect to operating efficiency and
credit quality, but the valuation seems to more than reflect those
issues. If credit quality is indeed back on a sustainably better path
and management can continue to find cost-saving deals in its local
footprint, the discount here could shrink and reward shareholders.
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MidWestOne May Not Be A Growth Star, But The Story Has Some Value
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