EFFINGHAM, Ill., July 24, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the "Company") today reported net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025, compared to net income available to common shareholders of $23.5 million, or $1.06 per diluted share, for the second quarter of 2024.
This also compares to a net loss of $143.2 million, or $6.58 per diluted share, for the first quarter of 2025, which included impairment of goodwill of $154.0 million.
2025 Second Quarter Results
- Net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025
- Adjusted earnings of $9.8 million, or $0.44 per diluted share, compared to $10.8 million, or $0.49 per diluted share, in prior quarter
- Pre-provision net revenue of $32.2 million, or $1.48 per diluted share, for the second quarter of 2025 compared to $27.0 million, or $1.24 per diluted share, for the first quarter of 2025
- Net interest margin of 3.56%, compared to 3.49% in prior quarter
- Nonperforming assets to total assets of 1.56%, compared to 2.08% in prior quarter
- Total capital to risk-weighted assets of 14.50% and common equity tier 1 capital of 9.02%
Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:
"Second quarter marked a notable step in returning Midland to a more normalized operating environment, with progress on several strategic initiatives ranging from growing our community bank to further improving our credit quality. Capital levels increased quarter-over-quarter, and we continue to target growing our common equity tier 1 capital ratio to our target of 10.0%.
During the quarter, we had limited new substandard or nonperforming loans identified, and importantly saw our non-performing assets decrease to $111 million, or 1.56% of total assets, versus $151 million, or 2.08% of total assets in the first quarter. After quarter-end, the bank successfully exited two larger non-performing relationships in July totaling $29 million, which all else equal would bring our non-performing asset ratio down another 41 basis points. Tighter underwriting standards in our equipment finance and specialty finance portfolios have already begun to meaningfully reduce our exposure to these higher-risk portfolios. In addition, we completed the previously announced sale of our GreenSky loans in April further improving our capital and liquidity.
Profitability trends were also favorable in the second quarter, with net interest margin expanding 7 basis points to 3.56%, pre-provision net revenue growing to $32.2 million, and strong contribution from our wealth management platform. We expect further improvement in profitability over the balance of 2025."
Key Points for Second Quarter and Outlook
Acceleration of Credit Clean-up; Tightened Underwriting Standards
- Substandard accruing loans and nonperforming loans decreased to $58.5 million and $109.5 million at June 30, 2025, respectively. No significant new substandard or nonperforming loans were identified during the quarter.
- Net charge-offs were $29.9 million for the quarter, including:
- $13.9 million of charge-offs in our specialty finance portfolio, of which $10.2 million was specifically reserved for in a prior quarter
- $4.7 million of fully reimbursed charge-offs related to our third party lending programs
- $3.9 million of charge-offs in our equipment finance portfolio as we continue to see credit issues primarily in the trucking industry
- Provision for credit losses on loans was $17.4 million for the second quarter of 2025, primarily as a result of continued trends in the equipment finance portfolio.
- Allowance for credit losses on loans was $92.7 million, or 1.83% of total loans.
The table below summarizes certain information regarding the Company's loan portfolio asset quality as of June 30, 2025.
| As of and for the Three Months Ended | ||||||||||||||||||||
| (dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loans 30-89 days past due | $ | 40,959 | $ | 48,221 | $ | 43,681 | $ | 55,329 | $ | 54,045 | ||||||||||
| Nonperforming loans | 109,512 | 145,690 | 150,907 | 114,556 | 112,124 | |||||||||||||||
| Nonperforming assets | 111,174 | 151,264 | 157,409 | 126,771 | 123,774 | |||||||||||||||
| Substandard accruing loans | 58,478 | 77,620 | 84,058 | 167,549 | 135,555 | |||||||||||||||
| Net charge-offs | 29,854 | 16,878 | 112,776 | 22,302 | 13,883 | |||||||||||||||
| Loans 30-89 days past due to total loans | 0.81 | % | 0.96 | % | 0.85 | % | 0.97 | % | 0.93 | % | ||||||||||
| Nonperforming loans to total loans | 2.16 | % | 2.90 | % | 2.92 | % | 2.00 | % | 1.92 | % | ||||||||||
| Nonperforming assets to total assets | 1.56 | % | 2.08 | % | 2.10 | % | 1.65 | % | 1.61 | % | ||||||||||
| Allowance for credit losses to total loans | 1.83 | % | 2.10 | % | 2.15 | % | 2.64 | % | 2.67 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 84.64 | % | 72.19 | % | 73.69 | % | 131.87 | % | 138.63 | % | ||||||||||
| Net charge-offs to average loans | 2.34 | % | 1.35 | % | 7.94 | % | 1.53 | % | 0.94 | % | ||||||||||
Solid Growth Trends in Community Bank & Wealth Management
- Total loans at June 30, 2025 were $5.06 billion, an increase of $46.6 million from March 31, 2025. Key changes in the loan portfolio were as follows:
- Loans originated by our Community Bank increased $58.9 million, or 1.8%, from March 31, 2025. Pipelines remain strong and we continued to add to our sales teams in the second quarter.
- Non-core loans originated through third-party programs increased $212.8 million from March 31, 2025, as a result of the financing of the sale of the GreenSky portfolio.
- We continue to pursue an intentional decrease in our Specialty Finance loan portfolio, as we tighten credit standards. Balances in this loan portfolio decreased $173.3 million during the quarter.
- Equipment finance portfolio balances declined $51.8 million during the quarter as we continue to reduce the overall balances in this unit and tighten underwriting standards.
- Total deposits were $5.95 billion at June 30, 2025, an increase of $10.5 million from March 31, 2025. The increase in deposits reflects the following:
- Commercial and public fund deposits increased $70.5 million and $127.8 million, respectively, in the quarter.
- Noninterest-bearing deposits decreased $16.5 million in the quarter.
- Retail and servicing deposits decreased $34.7 million and $56.9 million, respectively, in the quarter.
- Brokered deposits, including both money market and time deposits, decreased by $109.4 million.
- Servicing deposits decreased $284.4 million in July 2025 due to the acquisition of one of our servicing customers, expected to positively impact future margin.
- Wealth Management revenue totaled $7.4 million in the second quarter of 2025. Assets under administration were $4.18 billion at June 30, 2025. The Company added three new sales positions in the second quarter of 2025 and continues to experience strong pipelines.
Net Interest Margin
- Net interest margin was 3.56%, up 7 basis points compared to the first quarter, and we saw a continued decline in the cost of funding. Rate cuts enacted by the Federal Reserve Bank in late 2024 continue to result in a lower cost of deposits for the Company, which fell to 2.19% in the second quarter of 2025.
The following table summarizes certain factors affecting the Company's net interest margin for the second quarter of 2025.
| For the Three Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||||||||||||||
| Interest-earning assets | Average Balance | Interest & Fees | Yield/ Rate | Average Balance | Interest & Fees | Yield/ Rate | Average Balance | Interest & Fees | Yield/ Rate | ||||||||||||||||||
| Cash and cash equivalents | $ | 67,326 | $ | 716 | 4.27 | % | $ | 68,671 | $ | 718 | 4.24 | % | $ | 65,250 | $ | 875 | 5.40 | % | |||||||||
| Investment securities(1) | 1,367,180 | 17,164 | 5.04 | 1,311,887 | 15,517 | 4.80 | 1,098,452 | 12,805 | 4.69 | ||||||||||||||||||
| Loans(1)(2) | 5,123,558 | 79,240 | 6.20 | 5,057,394 | 78,118 | 6.26 | 5,915,523 | 92,581 | 6.29 | ||||||||||||||||||
| Loans held for sale | 44,642 | 377 | 3.39 | 326,348 | 4,563 | 5.67 | 4,910 | 84 | 6.84 | ||||||||||||||||||
| Nonmarketable equity securities | 38,803 | 694 | 7.17 | 35,614 | 647 | 7.37 | 44,216 | 963 | 8.76 | ||||||||||||||||||
| Total interest-earning assets | 6,641,509 | 98,191 | 5.93 | 6,799,914 | 99,563 | 5.94 | 7,128,351 | 107,308 | 6.05 | ||||||||||||||||||
| Noninterest-earning assets | 513,801 | 667,940 | 669,370 | ||||||||||||||||||||||||
| Total assets | $ | 7,155,310 | $ | 7,467,854 | $ | 7,797,721 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 4,845,609 | $ | 32,290 | 2.67 | % | $ | 5,074,007 | $ | 34,615 | 2.77 | % | $ | 5,101,365 | $ | 39,476 | 3.11 | % | |||||||||
| Short-term borrowings | 60,117 | 573 | 3.82 | 73,767 | 700 | 3.85 | 30,449 | 308 | 4.07 | ||||||||||||||||||
| FHLB advances & other borrowings | 363,505 | 3,766 | 4.16 | 299,578 | 3,163 | 4.28 | 500,758 | 5,836 | 4.69 | ||||||||||||||||||
| Subordinated debt | 77,757 | 1,394 | 7.19 | 77,752 | 1,387 | 7.23 | 93,090 | 1,265 | 5.47 | ||||||||||||||||||
| Trust preferred debentures | 51,439 | 1,206 | 9.40 | 51,283 | 1,200 | 9.49 | 50,921 | 1,358 | 10.73 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,398,427 | 39,229 | 2.91 | 5,576,387 | 41,065 | 2.99 | 5,776,583 | 48,243 | 3.36 | ||||||||||||||||||
| Noninterest-bearing deposits | 1,075,945 | 1,052,181 | 1,132,451 | ||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 108,819 | 123,613 | 104,841 | ||||||||||||||||||||||||
| Shareholders' equity | 572,119 | 715,673 | 783,846 | ||||||||||||||||||||||||
| Total liabilities and shareholder's equity | $ | 7,155,310 | $ | 7,467,854 | $ | 7,797,721 | |||||||||||||||||||||
| Net Interest Margin | $ | 58,962 | 3.56 | % | $ | 58,498 | 3.49 | % | $ | 59,065 | 3.33 | % | |||||||||||||||
| Cost of Deposits | 2.19 | % | 2.29 | % | 2.55 | % | |||||||||||||||||||||
(1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.3 million, $0.2 million and $0.2 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
Trends in Noninterest Income and Expense
- Noninterest income was $23.5 million for the second quarter of 2025, compared to $17.8 million for the first quarter of 2025. Noninterest income for the second quarter of 2025 included credit enhancement income of $3.8 million, primarily related to an increase in charge-offs in our third-party loan origination and servicing program which were fully reimbursed by our program sponsor.
- Noninterest expense was $50.0 million for the second quarter of 2025, compared to $203.0 million for the first quarter of 2025, which included goodwill impairment of $154.0 million. The Company continues to experience higher levels of professional services, legal fees and other expenses related to loan collections and the restatement of our financial statements.
Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
| As of and for the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||||
| Return on average assets | 0.67 | % | (7.66 | )% | (1.59 | )% | 1.05 | % | 1.33 | % | ||||||||||
| Pre-provision net revenue to average assets(1) | 1.81 | % | 1.47 | % | 1.83 | % | 2.21 | % | 2.07 | % | ||||||||||
| Net interest margin | 3.56 | % | 3.49 | % | 3.34 | % | 3.34 | % | 3.33 | % | ||||||||||
| Efficiency ratio (1) | 60.60 | % | 64.29 | % | 62.31 | % | 53.61 | % | 55.79 | % | ||||||||||
| Noninterest expense to average assets | 2.80 | % | 11.02 | % | 3.04 | % | 2.56 | % | 2.62 | % | ||||||||||
| Net charge-offs to average loans | 2.34 | % | 1.35 | % | 7.94 | % | 1.53 | % | 0.94 | % | ||||||||||
| Tangible book value per share at period end (1) | $ | 20.68 | $ | 20.54 | $ | 19.83 | $ | 22.70 | $ | 21.07 | ||||||||||
| Diluted earnings (loss) per common share | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | $ | 1.06 | ||||||||
| Common shares outstanding at period end | 21,515,138 | 21,503,036 | 21,494,485 | 21,393,905 | 21,377,215 | |||||||||||||||
| Trust assets under administration | $ | 4,181,180 | $ | 4,101,414 | $ | 4,153,080 | $ | 4,268,539 | $ | 3,996,175 | ||||||||||
(1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures.
Capital
At June 30, 2025, Midland States Bank and the Company exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a "well-capitalized'' financial institution, as summarized in the following table:
| As of June 30, 2025 | ||||||||
| Midland States Bank | Midland States Bancorp, Inc. | Minimum Regulatory Requirements (2) | ||||||
| Total capital to risk-weighted assets | 13.74% | 14.50% | 10.50% | |||||
| Tier 1 capital to risk-weighted assets | 12.49% | 12.07% | 8.50% | |||||
| Common equity Tier 1 capital to risk-weighted assets | 12.49% | 9.02% | 7.00% | |||||
| Tier 1 leverage ratio | 9.93% | 9.59% | 4.00% | |||||
| Tangible common equity to tangible assets (1) | N/A | 6.27% | N/A | |||||
(1) A non-GAAP financial measure. Refer to page 10 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.
About Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of June 30, 2025, the Company had total assets of approximately $7.11 billion, and its Wealth Management Group had assets under administration of approximately $4.18 billion. The Company provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.
These non-GAAP financial measures include "Pre-provision net revenue," "Pre-provision net revenue per diluted share," "Pre-provision net revenue to average assets," "Efficiency ratio," "Tangible common equity to tangible assets," and "Tangible book value per share." The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company's funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.
Forward-Looking Statements
Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company's plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
CONTACTS:
Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321
Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 176,587 | $ | 102,006 | $ | 114,766 | $ | 121,873 | $ | 124,646 | ||||||||||
| Investment securities | 1,354,652 | 1,368,405 | 1,212,366 | 1,216,795 | 1,099,654 | |||||||||||||||
| Loans | 5,064,695 | 5,018,053 | 5,167,574 | 5,728,237 | 5,829,057 | |||||||||||||||
| Allowance for credit losses on loans | (92,690 | ) | (105,176 | ) | (111,204 | ) | (151,067 | ) | (155,443 | ) | ||||||||||
| Total loans, net | 4,972,005 | 4,912,877 | 5,056,370 | 5,577,170 | 5,673,614 | |||||||||||||||
| Loans held for sale | 7,899 | 287,821 | 344,947 | 8,001 | 5,555 | |||||||||||||||
| Premises and equipment, net | 86,240 | 86,719 | 85,710 | 84,672 | 83,040 | |||||||||||||||
| Other real estate owned | 393 | 4,183 | 4,941 | 8,646 | 8,304 | |||||||||||||||
| Loan servicing rights, at lower of cost or fair value | 16,720 | 17,278 | 17,842 | 18,400 | 18,902 | |||||||||||||||
| Goodwill | 7,927 | 7,927 | 161,904 | 161,904 | 161,904 | |||||||||||||||
| Other intangible assets, net | 10,362 | 11,189 | 12,100 | 13,052 | 14,003 | |||||||||||||||
| Company-owned life insurance | 214,392 | 212,336 | 211,168 | 209,193 | 207,211 | |||||||||||||||
| Credit enhancement asset | 5,800 | 5,615 | 16,804 | 20,633 | 18,202 | |||||||||||||||
| Other assets | 254,901 | 268,448 | 267,891 | 263,850 | 293,039 | |||||||||||||||
| Total assets | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | $ | 7,708,074 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 1,074,212 | $ | 1,090,707 | $ | 1,055,564 | $ | 1,050,617 | $ | 1,108,521 | ||||||||||
| Interest-bearing deposits | 4,872,707 | 4,845,727 | 5,141,679 | 5,206,219 | 5,009,502 | |||||||||||||||
| Total deposits | 5,946,919 | 5,936,434 | 6,197,243 | 6,256,836 | 6,118,023 | |||||||||||||||
| Short-term borrowings | 8,654 | 40,224 | 87,499 | 13,849 | 7,208 | |||||||||||||||
| FHLB advances and other borrowings | 345,000 | 498,000 | 258,000 | 425,000 | 600,000 | |||||||||||||||
| Subordinated debt | 77,759 | 77,754 | 77,749 | 82,744 | 91,656 | |||||||||||||||
| Trust preferred debentures | 51,518 | 51,358 | 51,205 | 51,058 | 50,921 | |||||||||||||||
| Other liabilities | 104,323 | 109,597 | 124,266 | 103,481 | 103,487 | |||||||||||||||
| Total liabilities | 6,534,173 | 6,713,367 | 6,795,962 | 6,932,968 | 6,971,295 | |||||||||||||||
| Total shareholders' equity | 573,705 | 571,437 | 710,847 | 771,221 | 736,779 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | $ | 7,708,074 | ||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| (dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||
| Net interest income: | |||||||||||||||||||
| Interest income | $ | 97,924 | $ | 99,355 | $ | 104,470 | $ | 108,994 | $ | 107,138 | |||||||||
| Interest expense | 39,229 | 41,065 | 45,900 | 49,884 | 48,243 | ||||||||||||||
| Net interest income | 58,695 | 58,290 | 58,570 | 59,110 | 58,895 | ||||||||||||||
| Provision for credit losses: | |||||||||||||||||||
| Provision for credit losses on loans | 17,369 | 10,850 | 74,183 | 17,925 | 8,482 | ||||||||||||||
| Recapture of credit losses on unfunded commitments | - | - | - | - | (200 | ) | |||||||||||||
| Total provision for credit losses | 17,369 | 10,850 | 74,183 | 17,925 | 8,282 | ||||||||||||||
| Net interest income after provision for credit losses | 41,326 | 47,440 | (15,613 | ) | 41,185 | 50,613 | |||||||||||||
| Noninterest income: | |||||||||||||||||||
| Wealth management revenue | 7,379 | 7,350 | 7,660 | 7,104 | 6,801 | ||||||||||||||
| Service charges on deposit accounts | 3,351 | 3,305 | 3,506 | 3,411 | 3,121 | ||||||||||||||
| Interchange revenue | 3,463 | 3,151 | 3,528 | 3,506 | 3,563 | ||||||||||||||
| Residential mortgage banking revenue | 756 | 676 | 637 | 697 | 557 | ||||||||||||||
| Income on company-owned life insurance | 2,068 | 2,334 | 1,975 | 1,981 | 1,925 | ||||||||||||||
| Loss on sales of investment securities, net | - | - | (34 | ) | (44 | ) | (152 | ) | |||||||||||
| Credit enhancement income (loss) | 3,848 | (578 | ) | 15,810 | 14,206 | 14,328 | |||||||||||||
| Other income | 2,669 | 1,525 | 2,289 | 2,684 | 1,841 | ||||||||||||||
| Total noninterest income | 23,534 | 17,763 | 35,371 | 33,545 | 31,984 | ||||||||||||||
| Noninterest expense: | |||||||||||||||||||
| Salaries and employee benefits | 25,685 | 26,416 | 22,283 | 24,382 | 22,872 | ||||||||||||||
| Occupancy and equipment | 4,166 | 4,498 | 4,286 | 4,393 | 3,964 | ||||||||||||||
| Data processing | 7,035 | 6,919 | 7,278 | 6,955 | 7,205 | ||||||||||||||
| Professional services | 2,792 | 2,741 | 1,580 | 1,744 | 2,243 | ||||||||||||||
| Impairment on goodwill | - | 153,977 | - | - | - | ||||||||||||||
| Amortization of intangible assets | 827 | 911 | 952 | 951 | 1,016 | ||||||||||||||
| Impairment on leased assets and surrendered assets | - | - | 7,601 | - | - | ||||||||||||||
| FDIC insurance | 1,422 | 1,463 | 1,383 | 1,402 | 1,219 | ||||||||||||||
| Other expense | 8,065 | 6,080 | 13,336 | 9,937 | 12,265 | ||||||||||||||
| Total noninterest expense | 49,992 | 203,005 | 58,699 | 49,764 | 50,784 | ||||||||||||||
| Income (loss) before income taxes | 14,868 | (137,802 | ) | (38,941 | ) | 24,966 | 31,813 | ||||||||||||
| Income tax expense (benefit) | 2,844 | 3,172 | (8,172 | ) | 4,535 | 6,094 | |||||||||||||
| Net income (loss) | 12,024 | (140,974 | ) | (30,769 | ) | 20,431 | 25,719 | ||||||||||||
| Preferred stock dividends | 2,228 | 2,228 | 2,228 | 2,229 | 2,228 | ||||||||||||||
| Net income (loss) available to common shareholders | $ | 9,796 | $ | (143,202 | ) | $ | (32,997 | ) | $ | 18,202 | $ | 23,491 | |||||||
| Basic earnings (loss) per common share | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | $ | 1.06 | |||||||
| Diluted earnings (loss) per common share | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | $ | 1.06 | |||||||
| Weighted average common shares outstanding | 21,820,190 | 21,795,570 | 21,748,428 | 21,675,818 | 21,731,195 | ||||||||||||||
| Weighted average diluted common shares outstanding | 21,820,190 | 21,795,570 | 21,753,711 | 21,678,242 | 21,734,849 | ||||||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued) | |||||||||||||||
| As of | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||
| Loan Portfolio Mix | |||||||||||||||
| Commercial loans | $ | 1,178,792 | $ | 879,286 | $ | 934,847 | $ | 879,590 | $ | 955,667 | |||||
| Equipment finance loans | 364,526 | 390,276 | 416,970 | 442,552 | 461,409 | ||||||||||
| Equipment finance leases | 347,155 | 373,168 | 391,390 | 417,531 | 428,659 | ||||||||||
| Commercial FHA warehouse lines | 1,068 | - | 8,004 | 50,198 | - | ||||||||||
| Total commercial loans and leases | 1,891,541 | 1,642,730 | 1,751,211 | 1,789,871 | 1,845,735 | ||||||||||
| Commercial real estate | 2,412,761 | 2,592,325 | 2,591,664 | 2,510,472 | 2,421,505 | ||||||||||
| Construction and land development | 258,729 | 264,966 | 299,842 | 422,253 | 476,528 | ||||||||||
| Residential real estate | 361,261 | 373,095 | 380,557 | 378,658 | 378,393 | ||||||||||
| Consumer | 140,403 | 144,937 | 144,300 | 626,983 | 706,896 | ||||||||||
| Total loans | $ | 5,064,695 | $ | 5,018,053 | $ | 5,167,574 | $ | 5,728,237 | $ | 5,829,057 | |||||
| Loan Portfolio Segment | |||||||||||||||
| Regions | |||||||||||||||
| Eastern | $ | 901,848 | $ | 897,792 | $ | 899,611 | $ | 902,993 | $ | 884,343 | |||||
| Northern | 753,590 | 747,028 | 714,562 | 730,752 | 724,782 | ||||||||||
| Southern | 778,124 | 711,787 | 720,188 | 694,810 | 699,893 | ||||||||||
| St. Louis | 884,685 | 902,743 | 868,190 | 850,327 | 825,291 | ||||||||||
| Total Community Bank | 3,318,247 | 3,259,350 | 3,202,551 | 3,178,882 | 3,134,309 | ||||||||||
| Specialty finance | 701,244 | 874,567 | 1,038,238 | 1,018,961 | 1,107,508 | ||||||||||
| Equipment finance | 711,681 | 763,444 | 808,359 | 860,083 | 890,068 | ||||||||||
| Non-core loan program and other(1) | 333,523 | 120,692 | 118,426 | 670,311 | 697,172 | ||||||||||
| Total loans | $ | 5,064,695 | $ | 5,018,053 | $ | 5,167,574 | $ | 5,728,237 | $ | 5,829,057 | |||||
| Deposit Portfolio Mix | |||||||||||||||
| Noninterest-bearing demand | $ | 1,074,212 | $ | 1,090,707 | $ | 1,055,564 | $ | 1,050,617 | $ | 1,108,521 | |||||
| Interest-bearing: | |||||||||||||||
| Checking | 2,180,717 | 2,161,282 | 2,378,256 | 2,389,970 | 2,343,533 | ||||||||||
| Money market | 1,216,357 | 1,154,403 | 1,173,630 | 1,187,139 | 1,143,668 | ||||||||||
| Savings | 511,470 | 522,663 | 507,305 | 510,260 | 538,462 | ||||||||||
| Time | 818,813 | 818,732 | 822,981 | 849,413 | 852,415 | ||||||||||
| Brokered time | 145,350 | 188,647 | 259,507 | 269,437 | 131,424 | ||||||||||
| Total deposits | $ | 5,946,919 | $ | 5,936,434 | $ | 6,197,243 | $ | 6,256,836 | $ | 6,118,023 | |||||
| Deposit Portfolio by Channel | |||||||||||||||
| Retail | $ | 2,811,838 | $ | 2,846,494 | $ | 2,749,650 | $ | 2,695,077 | $ | 2,742,494 | |||||
| Commercial | 1,145,369 | 1,074,837 | 1,209,815 | 1,218,657 | 1,217,068 | ||||||||||
| Public Funds | 618,172 | 490,374 | 505,912 | 574,704 | 568,889 | ||||||||||
| Wealth & Trust | 304,626 | 301,251 | 340,615 | 332,242 | 298,659 | ||||||||||
| Servicing | 785,659 | 842,567 | 896,436 | 958,662 | 931,892 | ||||||||||
| Brokered Deposits | 248,707 | 358,063 | 473,451 | 390,558 | 238,708 | ||||||||||
| Other | 32,548 | 22,848 | 21,364 | 86,936 | 120,313 | ||||||||||
| Total deposits | $ | 5,946,919 | $ | 5,936,434 | $ | 6,197,243 | $ | 6,256,836 | $ | 6,118,023 | |||||
(1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio.
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Adjusted Earnings Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands, expect per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Income (loss) before income tax (benefit) expense - GAAP | $ | 14,868 | $ | (137,802 | ) | $ | (38,941 | ) | $ | 24,966 | $ | 31,813 | ||||||||
| Adjustments to noninterest income: | ||||||||||||||||||||
| Loss on sales of investment securities, net | - | - | 34 | 44 | 152 | |||||||||||||||
| Loss (gain) on repurchase of subordinated debt | - | - | 13 | (77 | ) | (167 | ) | |||||||||||||
| Total adjustments to noninterest income | - | - | 47 | (33 | ) | (15 | ) | |||||||||||||
| Adjustments to noninterest expense: | ||||||||||||||||||||
| Impairment on goodwill | - | (153,977 | ) | - | - | - | ||||||||||||||
| Total adjustments to noninterest expense | - | (153,977 | ) | - | - | - | ||||||||||||||
| Adjusted earnings (loss) pre tax - non-GAAP | 14,868 | 16,175 | (38,894 | ) | 24,933 | 31,798 | ||||||||||||||
| Adjusted earnings (loss) tax (benefit) expense | 2,844 | 3,172 | (8,159 | ) | 4,526 | 6,090 | ||||||||||||||
| Adjusted earnings (loss) - non-GAAP | 12,024 | 13,003 | (30,735 | ) | 20,407 | 25,708 | ||||||||||||||
| Preferred stock dividends | 2,228 | 2,228 | 2,228 | 2,229 | 2,228 | |||||||||||||||
| Adjusted earnings (loss) available to common shareholders | $ | 9,796 | $ | 10,775 | $ | (32,963 | ) | $ | 18,178 | $ | 23,480 | |||||||||
| Adjusted diluted earnings (loss) per common share | $ | 0.44 | $ | 0.49 | $ | (1.52 | ) | $ | 0.82 | $ | 1.06 | |||||||||
| Pre-Provision Net Revenue Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Income (loss) before income taxes | $ | 14,868 | $ | (137,802 | ) | $ | (38,941 | ) | $ | 24,966 | $ | 31,813 | ||||||||
| Provision for credit losses | 17,369 | 10,850 | 74,183 | 17,925 | 8,282 | |||||||||||||||
| Impairment on goodwill | - | 153,977 | - | - | - | |||||||||||||||
| Pre-provision net revenue | $ | 32,237 | $ | 27,025 | $ | 35,242 | $ | 42,891 | $ | 40,095 | ||||||||||
| Pre-provision net revenue per diluted share | $ | 1.48 | $ | 1.24 | $ | 1.62 | $ | 1.98 | $ | 1.84 | ||||||||||
| Pre-provision net revenue to average assets | 1.81 | % | 1.47 | % | 1.83 | % | 2.21 | % | 2.07 | % | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Noninterest expense - GAAP | $ | 49,992 | $ | 203,005 | $ | 58,699 | $ | 49,764 | $ | 50,784 | ||||||||||
| Impairment on goodwill | - | (153,977 | ) | - | - | - | ||||||||||||||
| Adjusted noninterest expense | $ | 49,992 | $ | 49,028 | $ | 58,699 | $ | 49,764 | $ | 50,784 | ||||||||||
| Net interest income - GAAP | $ | 58,695 | $ | 58,290 | $ | 58,570 | $ | 59,110 | $ | 58,895 | ||||||||||
| Effect of tax-exempt income | 267 | 208 | 220 | 205 | 170 | |||||||||||||||
| Adjusted net interest income | 58,962 | 58,498 | 58,790 | 59,315 | 59,065 | |||||||||||||||
| Noninterest income - GAAP | 23,534 | 17,763 | 35,371 | 33,545 | 31,984 | |||||||||||||||
| Loss on sales of investment securities, net | - | - | 34 | 44 | 152 | |||||||||||||||
| Loss (gain) on repurchase of subordinated debt | - | - | 13 | (77 | ) | (167 | ) | |||||||||||||
| Adjusted noninterest income | 23,534 | 17,763 | 35,418 | 33,512 | 31,969 | |||||||||||||||
| Adjusted total revenue | $ | 82,496 | $ | 76,261 | $ | 94,208 | $ | 92,827 | $ | 91,034 | ||||||||||
| Efficiency ratio | 60.60 | % | 64.29 | % | 62.31 | % | 53.61 | % | 55.79 | % | ||||||||||
| Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Shareholders' Equity to Tangible Common Equity | ||||||||||||||||||||
| Total shareholders' equity-GAAP | $ | 573,705 | $ | 571,437 | $ | 710,847 | $ | 771,221 | $ | 736,779 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Preferred Stock | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | ||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (10,362 | ) | (11,189 | ) | (12,100 | ) | (13,052 | ) | (14,003 | ) | ||||||||||
| Tangible common equity | 444,868 | 441,773 | 426,295 | 485,717 | 450,324 | |||||||||||||||
| Total Assets to Tangible Assets: | ||||||||||||||||||||
| Total assets-GAAP | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | $ | 7,708,074 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (10,362 | ) | (11,189 | ) | (12,100 | ) | (13,052 | ) | (14,003 | ) | ||||||||||
| Tangible assets | $ | 7,089,589 | $ | 7,265,688 | $ | 7,332,805 | $ | 7,529,233 | $ | 7,532,167 | ||||||||||
| Common Shares Outstanding | 21,515,138 | 21,503,036 | 21,494,485 | 21,393,905 | 21,377,215 | |||||||||||||||
| Tangible Common Equity to Tangible Assets | 6.27 | % | 6.08 | % | 5.81 | % | 6.45 | % | 5.98 | % | ||||||||||
| Tangible Book Value Per Share | $ | 20.68 | $ | 20.54 | $ | 19.83 | $ | 22.70 | $ | 21.07 | ||||||||||
