EX-99.1 2 msbi-20240930exx991.htm EX-99.1 Document


EXHIBIT 99.1

Midland States Bancorp, Inc. Announces 2024 Third Quarter Results

Third Quarter 2024 Highlights:
•Net income available to common shareholders of $16.2 million, or $0.74 per diluted share
•Adjusted pre-tax, pre-provision earnings of $27.5 million
•Tangible book value per share increased to $24.90, compared to $23.36 at June 30, 2024
•Common equity tier 1 capital ratio improved to 9.00%, compared to 8.64% at June 30, 2024
•Net interest margin of 3.10%, compared to 3.12% in prior quarter
•Efficiency ratio of 62.8%, compared to 65.2% in prior quarter
Effingham, IL, October 24, 2024 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $16.2 million, or $0.74 per diluted share, for the third quarter of 2024, compared to $4.5 million, or $0.20 per diluted share, for the second quarter of 2024. This also compares to net income available to common shareholders of $9.2 million, or $0.41 per diluted share, for the third quarter of 2023.
Provision expense was $5.0 million in the third quarter of 2024 compared to $16.8 million and $5.2 million in the second quarter of 2024 and the third quarter of 2023, respectively. The elevated provision expense in the second quarter of 2024 was primarily due to credit deterioration and servicing issues involving one of our fintech partners, LendingPoint, subsequent to their system conversion in late 2023.
Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We executed well in the third quarter and delivered a higher level of profitability while making continued progress on our balance sheet management strategies, which resulted in further increases in all of our capital ratios, an increase in our tangible book value per share, and an increase in our level of liquidity with a reduction in our loan-to-deposit ratio. We continue to utilize the payoffs resulting from the intentional reduction of our equipment finance and consumer portfolios to fund high quality loans generated in our community bank and the purchase of investment securities. We are also seeing good results from the investments we have made in the business, such as increasing our presence and business development efforts in the St. Louis market, where our loan balances increased at an annualized rate of 12% during the third quarter, and growth in our Wealth Management revenues due to an increase in assets under administration, partially driven by the new wealth advisors we have added in recent quarters.
Improving our credit quality is a priority and we are taking proactive steps to resolve problem loans in order to reduce our level of non-performing and classified loans going forward. We continue to closely monitor the health of our borrowers and be conservative in downgrading loans where we see the potential for weakness. We also recently added a new Chief Credit Officer whose background and experience is consistent with our increased focus on in-market relationship lending in our community bank, which will continue to result in a higher quality, lower risk loan portfolio.
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“While we will remain conservative in new loan production while economic conditions remain uncertain, we are well positioned to benefit from lower interest rates and we expect positive trends in our net interest margin and revenue generated from our Wealth Management business. While maintaining disciplined expense control, we are continuing to make investments in talent and technology that will further enhance our ability to increase our market share, add attractive new client relationships in our community bank, and generate profitable growth. With the stronger balance sheet we are building, including a Total Capital Ratio of approximately 14%, we believe we are well positioned to support the continued growth of our franchise as economic conditions improve in the future and create additional value for our shareholders in the process,” said Mr. Ludwig.
Balance Sheet Highlights
Total assets were $7.75 billion at September 30, 2024, compared to $7.76 billion at June 30, 2024, and $7.97 billion at September 30, 2023. At September 30, 2024, portfolio loans were $5.75 billion, compared to $5.85 billion at June 30, 2024, and $6.28 billion at September 30, 2023.
Loans
During the third quarter of 2024, outstanding loans declined by $103.2 million, or 1.8%, from June 30, 2024, as the Company continued to shrink its equipment financing and consumer loan portfolios, and focus on commercial loan opportunities in our community banking regions.
Equipment finance loan and lease balances decreased $30.0 million during the third quarter of 2024 as the Company continued to reduce its concentration of this product within the overall loan portfolio. Consumer loans decreased $82.8 million due to loan payoffs and a cessation in loans originated through GreenSky. Our Greensky-originated loan balances decreased $63.0 million during the third quarter to $475.3 million at September 30, 2024. In addition, as previously disclosed, during the fourth quarter of 2023, the Company ceased originating loans through LendingPoint. As of September 30, 2024, the Company had $96.5 million in loans that were originated through and serviced by LendingPoint. Equipment financing and consumer loans comprised 15.0% and 11.5%, respectively, of the loan portfolio at September 30, 2024, compared to 15.2% and 12.7%, respectively, at June 30, 2024.
Increases in commercial FHA warehouse lines and commercial real estate loans of $50.2 million and $89.0 million, respectively, were offset by decreases in all other loan categories.
As of
September 30,June 30,March 31,December 31,September 30,
(in thousands)20242024202420232023
Loan Portfolio
Commercial loans$863,922 $939,458 $913,564 $951,387 $943,761 
Equipment finance loans442,552 461,409 494,068 531,143 578,931 
Equipment finance leases417,531 428,659 455,879 473,350 485,460 
Commercial FHA warehouse lines50,198 — 8,035 — 48,547 
Total commercial loans and leases1,774,203 1,829,526 1,871,546 1,955,880 2,056,699 
Commercial real estate2,510,472 2,421,505 2,397,113 2,406,845 2,412,164 
Construction and land development422,253 476,528 474,128 452,593 416,801 
Residential real estate378,657 378,393 378,583 380,583 375,211 
Consumer663,234 746,042 837,092 935,178 1,020,008 
Total loans$5,748,819 $5,851,994 $5,958,462 $6,131,079 $6,280,883 
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Loan Quality
Overall, credit quality metrics remained consistent this quarter compared to the second quarter of 2024, albeit, nonperforming loans were still at elevated levels. Non-performing loans increased $2.4 million to $114.6 million at September 30, 2024, compared to $112.1 million as of June 30, 2024. Substandard loans increased $32.0 million to $167.5 million at September 30, 2024, as compared to June 30, 2024, primarily due to two multi-family projects that were downgraded this past quarter.
As of and for the Three Months Ended
(in thousands)September 30,June 30,March 31,December 31,September 30,
20242024202420232023
Asset Quality
Loans 30-89 days past due$55,329 $54,045 $58,854 $82,778 $46,608 
Nonperforming loans114,556 112,124 104,979 56,351 55,981 
Nonperforming assets126,771 123,774 116,721 67,701 58,677 
Substandard loans167,549 135,555 149,049 184,224 143,793 
Net charge-offs11,379 2,874 4,445 5,117 3,449 
Loans 30-89 days past due to total loans0.96 %0.92 %0.99 %1.35 %0.74 %
Nonperforming loans to total loans1.99 %1.92 %1.76 %0.92 %0.89 %
Nonperforming assets to total assets1.64 %1.60 %1.49 %0.86 %0.74 %
Allowance for credit losses to total loans1.49 %1.58 %1.31 %1.12 %1.06 %
Allowance for credit losses to nonperforming loans74.90 %82.22 %74.35 %121.56 %119.09 %
Net charge-offs to average loans0.78 %0.20 %0.30 %0.33 %0.22 %
The allowance for credit losses on loans totaled $85.8 million at September 30, 2024, compared to $92.2 million at June 30, 2024, and $66.7 million at September 30, 2023. The allowance as a percentage of total loans was 1.49% at September 30, 2024, compared to 1.58% at June 30, 2024, and 1.06% at September 30, 2023.
Notably, the Company recognized provision expense of $14.0 million in the second quarter of 2024 related to the loans originated and serviced by LendingPoint, increasing the allowance to $14.6 million on this portfolio. Credit deterioration and servicing issues following their system conversion have resulted in increased losses within this portfolio. In the third quarter of 2024, loans totaling $6.2 million were charged off. At September 30, 2024, the Company had an allowance of $8.3 million on the $96.5 million of loans serviced by LendingPoint.
Deposits
Total deposits were $6.26 billion at September 30, 2024, compared with $6.12 billion at June 30, 2024. Noninterest-bearing deposits decreased $57.9 million to $1.05 billion at September 30, 2024, while interest-bearing deposits increased $196.7 million to $5.21 billion at September 30, 2024. Brokered time
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deposits increased $138.0 million to $269.4 million, and represented 4.31% of total deposits at September 30, 2024.
As of
September 30,June 30,March 31,December 31,September 30,
(in thousands)20242024202420232023
Deposit Portfolio
Noninterest-bearing demand$1,050,617 $1,108,521 $1,212,382 $1,145,395 $1,154,515 
Interest-bearing:
Checking2,389,970 2,343,533 2,394,163 2,511,840 2,572,224 
Money market1,187,139 1,143,668 1,128,463 1,135,629 1,090,962 
Savings510,260 538,462 555,552 559,267 582,359 
Time849,413 852,415 845,190 862,865 885,858 
Brokered time269,437 131,424 188,234 94,533 119,084 
Total deposits$6,256,836 $6,118,023 $6,323,984 $6,309,529 $6,405,002 
Results of Operations Highlights
Net Interest Income and Margin
During the third quarter of 2024, net interest income and net interest margin, on a tax-equivalent basis, were $55.2 million and 3.10%, respectively, compared to $55.2 million and 3.12%, respectively, in the second quarter of 2024. Net interest income and net interest margin, on a tax-equivalent basis, were $58.8 million and 3.20%, respectively, in the third quarter of 2023.
Average interest-earning assets for the third quarter of 2024 were $7.07 billion, compared to $7.13 billion for the second quarter of 2024. The yield on interest-earning assets increased 7 basis points to 5.91% compared to the second quarter of 2024. Interest-earning assets averaged $7.28 billion for the third quarter of 2023.
Average loans were $5.78 billion for the third quarter of 2024, compared to $5.92 billion for the second quarter of 2024 and $6.30 billion for the third quarter of 2023. The yield on loans was 6.15% for the third quarter of 2024, up from 6.03% for the second quarter of 2024 and 5.93% for the third quarter of 2023.
Investment securities averaged $1.16 billion for the third quarter of 2024, and yielded 4.71%, compared to an average balance and yield of $1.10 billion and 4.69%, respectively, for the second quarter of 2024. The Company purchased additional higher-yielding investments resulting in the increased average balance and yield. Investment securities averaged $863.0 million for the third quarter of 2023.
Average interest-bearing liabilities for the third quarter of 2024 were $5.76 billion, compared to $5.78 billion for the second quarter of 2024. The cost of funds increased 9 basis points to 3.45% compared to the second quarter of 2024. Interest-bearing liabilities averaged $5.92 billion for the third quarter of 2023.
Average interest-bearing deposits were $5.13 billion for the third quarter of 2024, compared to $5.10 billion for the second quarter of 2024, and $5.35 billion for the third quarter of 2023. Cost of interest-bearing deposits was 3.25% in the third quarter of 2024, which represented a 14 basis point increase from the second quarter of 2024, due to increased competition.
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For the Three Months Ended
(dollars in thousands)September 30, 2024June 30, 2024September 30, 2023
Interest-earning assetsAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/Rate
Cash and cash equivalents$75,255 $1,031 5.45 %$65,250 $875 5.40 %$78,391 $1,036 5.24 %
Investment securities(1)
1,162,751 13,752 4.71 1,098,452 12,805 4.69 862,998 7,822 3.60 
Loans(1)(2)
5,783,408 89,344 6.15 5,915,523 88,738 6.03 6,297,568 94,118 5.93 
Loans held for sale7,505 124 6.57 4,910 84 6.84 6,078 104 6.80 
Nonmarketable equity securities41,137 788 7.62 44,216 963 8.76 39,347 710 7.16 
Total interest-earning assets7,070,056 105,039 5.91 7,128,351 103,465 5.84 7,284,382 103,790 5.65 
Noninterest-earning assets653,279 669,370 622,969 
Total assets$7,723,335 $7,797,721 $7,907,351 
Interest-Bearing Liabilities
Interest-bearing deposits$5,132,640 $41,970 3.25 %$5,101,365 $39,476 3.11 %$5,354,356 $37,769 2.80 %
Short-term borrowings53,577 602 4.47 30,449 308 4.07 20,127 14 0.28 
FHLB advances & other borrowings428,739 4,743 4.40 500,758 5,836 4.69 402,500 4,557 4.49 
Subordinated debt89,120 1,228 5.48 93,090 1,265 5.47 93,441 1,280 5.43 
Trust preferred debentures50,990 1,341 10.46 50,921 1,358 10.73 50,379 1,369 10.78 
Total interest-bearing liabilities5,755,066 49,884 3.45 5,776,583 48,243 3.36 5,920,803 44,989 3.01 
Noninterest-bearing deposits1,075,712 1,132,451 1,116,988 
Other noninterest-bearing liabilities97,235 104,841 97,935 
Shareholders’ equity795,322 783,846 771,625 
Total liabilities and shareholder’s equity$7,723,335 $7,797,721 $7,907,351 
Net Interest Margin$55,155 3.10 %$55,222 3.12 %$58,801 3.20 %
Cost of Deposits2.69 %2.55 %2.32 %

(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 $0.2 million for each of the three months ended September 30, 2024, June 30, 2024 and September 30, 2023, respectively.
(2)Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
For the nine months ended September 30, 2024, net interest income, on a tax-equivalent basis, decreased to $166.5 million, with a tax-equivalent net interest margin of 3.13%, compared to net interest income, on a tax-equivalent basis, of $178.6 million, and a tax-equivalent net interest margin of 3.27% for the nine months ended September 30, 2023.
The yield on earning assets increased 34 basis points to 5.84% for the nine months ended September 30, 2024 compared to the prior year. However, the cost of interest-bearing liabilities increased at a faster rate during this period, increasing 57 basis points to 3.34% for the nine months ended September 30, 2024.
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For the Nine Months Ended
(dollars in thousands)September 30, 2024September 30, 2023
Interest-earning assetsAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/Rate
Cash and cash equivalents$69,960 $2,857 5.45 %$76,939 $2,868 4.98 %
Investment securities(1)
1,083,597 37,265 4.59 844,946 21,103 3.33 
Loans(1)(2)
5,903,216 267,570 6.05 6,324,578 274,005 5.79 
Loans held for sale5,281 263 6.65 3,900 179 6.14 
Nonmarketable equity securities40,429 2,438 8.06 44,034 2,104 6.39 
Total interest-earning assets7,102,483 310,393 5.84 7,294,397 300,259 5.50 
Noninterest-earning assets663,967 615,383 
Total assets$7,766,450 $7,909,780 
Interest-Bearing Liabilities
Interest-bearing deposits$5,142,979 $120,660 3.13 %$5,223,852 $97,791 2.50 %
Short-term borrowings49,750 1,746 4.69 26,865 53 0.26 
FHLB advances & other borrowings414,259 13,615 4.39 471,084 15,959 4.53 
Subordinated debt91,921 3,773 5.48 96,820 3,985 5.49 
Trust preferred debentures50,873 4,088 10.73 50,216 3,887 10.35 
Total interest-bearing liabilities5,749,782 143,882 3.34 5,868,837 121,675 2.77 
Noninterest-bearing deposits1,119,764 1,184,410 
Other noninterest-bearing liabilities107,192 84,650 
Shareholders’ equity789,712 771,883 
Total liabilities and shareholders’ equity$7,766,450 $7,909,780 
Net Interest Margin$166,511 3.13 %$178,584 3.27 %
Cost of Deposits2.57 %2.04 %

(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 $0.6 million for each of the nine months ended September 30, 2024 and 2023, respectively.
(2)Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
Noninterest Income
Noninterest income was $19.3 million for the third quarter of 2024, compared to $17.7 million for the second quarter of 2024. Noninterest income for the second quarter of 2024 included a $0.2 million gain on the repurchase of subordinated debt, offset by $0.2 million of net losses on the sale of investment securities. The third quarter of 2023 included $5.0 million of losses on the sale of investment securities.
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Excluding these transactions, noninterest income for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023 was $19.3 million, $17.6 million, and $16.5 million, respectively.
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(in thousands)20242024202320242023
Noninterest income
Wealth management revenue$7,104 $6,801 $6,288 $21,037 $18,968 
Service charges on deposit accounts3,411 3,121 3,149 9,648 8,744 
Interchange revenue3,506 3,563 3,609 10,427 10,717 
Residential mortgage banking revenue697 557 507 1,781 1,452 
Income on company-owned life insurance1,982 1,925 918 5,708 2,685 
Loss on sales of investment securities, net(44)(152)(4,961)(196)(6,478)
Other income2,683 1,841 2,035 9,777 9,989 
Total noninterest income$19,339 $17,656 $11,545 $58,182 $46,077 

Wealth management revenue totaled $7.1 million in the third quarter of 2024, an increase of $0.3 million, or 4.5%, as compared to the second quarter of 2024, due to increases in assets under administration and estate fees. Assets under administration increased to $4.27 billion at September 30, 2024 from $4.00 billion at June 30, 2024, primarily due to improved sales activity. Assets under administration totaled $3.50 billion at September 30, 2023.
Income on company-owned life insurance income totaled $2.0 million, $1.9 million and $0.9 million for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023, respectively. The Company surrendered certain low-yielding life insurance policies and purchased additional policies in the third quarter of 2023, resulting in the increase in revenue.
Other income totaled $2.7 million in the third quarter of 2024 compared to $1.8 million in the second quarter of 2024. Income from the sale of SBA loans in the third quarter of 2024 of $0.2 million and losses from the disposition of repossessed leased assets in the second quarter of 2024 of $0.6 million resulted in the quarter over quarter increase in other income.
Noninterest Expense
Noninterest expense was $46.7 million in the third quarter of 2024, compared to $47.5 million in the second quarter of 2024 and $42.0 million in the third quarter of 2023. Noninterest expense for the second quarter of 2024 included $4.1 million of aggregate expenses related to OREO impairment and property taxes, and accruals related to various legal proceedings. Excluding these items, noninterest expense for the third quarter of 2024, the second quarter of 2024, and the third quarter of 2023 was $46.7 million, $43.4 million, and $42.0 million, respectively. Costs related to increased staffing levels, upgrades to our ATM fleet, and loan collection and OREO expenses drove the increase in noninterest expense in the third quarter of 2024 compared to the prior quarter.




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The efficiency ratio improved to 62.76% for the quarter ended September 30, 2024, compared to 65.16% for the quarter ended June 30, 2024. The efficiency ratio for the third quarter of 2023 was 55.82%.
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(in thousands)20242024202320242023
Noninterest expense
Salaries and employee benefits$24,382 $22,872 $22,307 $71,356 $69,407 
Occupancy and equipment4,393 3,964 3,730 12,499 12,052 
Data processing6,955 7,205 6,468 20,882 19,323 
Professional services1,744 2,243 1,554 6,242 4,977 
Amortization of intangible assets951 1,016 1,129 3,056 3,628 
FDIC insurance1,402 1,219 1,107 3,895 3,632 
Other expense6,906 8,960 5,743 21,149 16,395 
Total noninterest expense$46,733 $47,479 $42,038 $139,079 $129,414 
Income Tax Expense
Income tax expense was $4.1 million for the third quarter of 2024, compared to $1.7 million for the second quarter of 2024 and $11.5 million for the third quarter of 2023. The resulting effective tax rates were 18.1%, 19.9% and 50.3%, respectively. Tax expense for the third quarter of 2023 included a $1.4 million return to provision adjustment and $4.5 million associated with the surrender of company-owned life insurance policies, as previously discussed.
Capital
At September 30, 2024, 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 September 30, 2024
Midland States BankMidland States Bancorp, Inc.
Minimum Regulatory Requirements (2)
Total capital to risk-weighted assets13.34%13.98%10.50%
Tier 1 capital to risk-weighted assets12.09%11.65%8.50%
Common equity Tier 1 capital to risk-weighted assets12.09%9.00%7.00%
Tier 1 leverage ratio10.47%10.10%4.00%
Tangible common equity to tangible assets (1)
N/A7.03%N/A
(1) A non-GAAP financial measure. Refer to page 16 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.
The impact of rising interest rates on the Company’s investment portfolio and cash flow hedges resulted in an accumulated other comprehensive loss of $60.6 million at September 30, 2024, which reduced tangible book value by $2.84 per share.
Stock Repurchase Program
As previously disclosed, on December 5, 2023, the Company’s board of directors authorized a new share repurchase program, pursuant to which the Company is authorized to repurchase up to $25.0 million of common stock through December 31, 2024. During the third quarter of 2024, the Company repurchased
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23,113 shares of its common stock at a weighted average price of $22.54 under its stock repurchase program.
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 September 30, 2024, the Company had total assets of approximately $7.75 billion, and its Wealth Management Group had assets under administration of approximately $4.27 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 “Adjusted Earnings,” “Adjusted Earnings Available to Common Shareholders,” “Adjusted Diluted Earnings Per Common Share,” “Adjusted Return on Average Assets,” “Adjusted Return on Average Shareholders’ Equity,” “Adjusted Return on Average Tangible Common Equity,” “Adjusted Pre-Tax, Pre-Provision Earnings,” “Adjusted Pre-Tax, Pre-Provision Return on Average Assets,” “Efficiency Ratio,” “Tangible Common Equity to Tangible Assets,” “Tangible Book Value Per Share,” “Tangible Book Value Per Share excluding Accumulated Other Comprehensive Income,” and “Return on Average Tangible Common Equity.” 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. 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 inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; 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
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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
Douglas J. Tucker, SVP and Corporate Counsel, at dtucker@midlandsb.com or (217) 342-7321
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MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
As of and for the Three Months Ended
As of and
for the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(dollars in thousands, except per share data)20242024202320242023
Earnings Summary
Net interest income$54,950 $55,052 $58,596 $165,922 $177,940 
Provision for credit losses5,000 16,800 5,168 35,800 14,182 
Noninterest income19,339 17,656 11,545 58,182 46,077 
Noninterest expense46,733 47,479 42,038 139,079 129,414 
Income before income taxes22,556 8,429 22,935 49,225 80,421 
Income taxes4,080 1,679 11,533 10,114 25,672 
Net income18,476 6,750 11,402 39,111 54,749 
Preferred dividends2,229 2,228 2,229 6,685 6,685 
Net income available to common shareholders$16,247 $4,522 $9,173 $32,426 $48,064 
Diluted earnings per common share$0.74 $0.20 $0.41 $1.47 $2.14 
Weighted average common shares outstanding - diluted21,678,242 21,734,849 21,977,196 21,732,093 22,223,986 
Return on average assets0.95 %0.35 %0.57 %0.67 %0.93 %
Return on average shareholders' equity9.24 %3.46 %5.86 %6.62 %9.48 %
Return on average tangible common equity (1)
12.69 %3.66 %7.56 %8.62 %13.37 %
Net interest margin3.10 %3.12 %3.20 %3.13 %3.27 %
Efficiency ratio (1)
62.76 %65.16 %55.82 %61.91 %56.15 %
Adjusted Earnings Performance Summary (1)
Adjusted earnings available to common shareholders$16,223 $4,511 $17,278 $32,391 $56,783 
Adjusted diluted earnings per common share$0.74 $0.20 $0.78 $1.47 $2.53 
Adjusted return on average assets0.95 %0.35 %0.98 %0.67 %1.07 %
Adjusted return on average shareholders' equity9.23 %3.46 %10.03 %6.61 %10.99 %
Adjusted return on average tangible common equity12.67 %3.65 %14.24 %8.61 %15.80 %
Adjusted pre-tax, pre-provision earnings$27,523 $25,214 $33,064 $84,977 $100,405 
Adjusted pre-tax, pre-provision return on average assets1.42 %1.30 %1.66 %1.46 %1.70 %
Market Data
Book value per share at period end$33.08 $31.59 $29.96 
Tangible book value per share at period end (1)
$24.90 $23.36 $21.67 
Tangible book value per share excluding accumulated other comprehensive income at period end (1)
$27.74 $27.22 $26.35 
Market price at period end$22.38 $22.65 $20.54 
Common shares outstanding at period end21,393,905 21,377,215 21,594,546 
Capital
Total capital to risk-weighted assets13.98 %13.83 %12.76 %
Tier 1 capital to risk-weighted assets11.65 %11.23 %10.53 %
Common equity tier 1capital to risk-weighted assets9.00 %8.64 %8.07 %
Tier 1 leverage ratio10.10 %9.84 %9.59 %
Tangible common equity to tangible assets (1)
7.03 %6.59 %6.01 %
Wealth Management
Trust assets under administration$4,268,539 $3,996,175 $3,501,225 
(1) Non-GAAP financial measures. Refer to pages 14 - 16 for a reconciliation to the comparable GAAP financial measures.

11

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
As of
September 30,June 30,March 31,December 31,September 30,
(in thousands)20242024202420232023
Assets
Cash and cash equivalents$121,873 $124,646 $167,316 $135,061 $132,132 
Investment securities1,216,795 1,099,654 1,044,900 920,396 839,344 
Loans5,748,819 5,851,994 5,958,462 6,131,079 6,280,883 
Allowance for credit losses on loans(85,804)(92,183)(78,057)(68,502)(66,669)
Total loans, net5,663,015 5,759,811 5,880,405 6,062,577 6,214,214 
Loans held for sale8,001 5,555 5,043 3,811 6,089 
Premises and equipment, net84,672 83,040 81,831 82,814 82,741 
Other real estate owned8,646 8,304 8,920 9,112 480 
Loan servicing rights, at lower of cost or fair value18,400 18,902 19,577 20,253 20,933 
Goodwill161,904 161,904 161,904 161,904 161,904 
Other intangible assets, net13,052 14,003 15,019 16,108 17,238 
Company-owned life insurance209,193 207,211 205,286 203,485 201,750 
Other assets245,932 274,244 241,608 251,347 292,460 
Total assets$7,751,483 $7,757,274 $7,831,809 $7,866,868 $7,969,285 
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits$1,050,617 $1,108,521 $1,212,382 $1,145,395 $1,154,515 
Interest-bearing deposits5,206,219 5,009,502 5,111,602 5,164,134 5,250,487 
Total deposits6,256,836 6,118,023 6,323,984 6,309,529 6,405,002 
Short-term borrowings13,849 7,208 214,446 34,865 17,998 
FHLB advances and other borrowings425,000 600,000 255,000 476,000 538,000 
Subordinated debt82,744 91,656 93,617 93,546 93,475 
Trust preferred debentures51,058 50,921 50,790 50,616 50,457 
Other liabilities103,737 103,694 102,966 110,459 106,743 
Total liabilities6,933,224 6,971,502 7,040,803 7,075,015 7,211,675 
Total shareholders’ equity818,259 785,772 791,006 791,853 757,610 
Total liabilities and shareholders’ equity$7,751,483 $7,757,274 $7,831,809 $7,866,868 $7,969,285 

12

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(in thousands, except per share data)20242024202320242023
Net interest income:
Interest income$104,834 $103,295 $103,585 $309,804 $299,615 
Interest expense49,884 48,243 44,989 143,882 121,675 
Net interest income54,950 55,052 58,596 165,922 177,940 
Provision for credit losses on loans5,000 17,000 5,168 36,000 14,182 
Provision for credit losses on unfunded commitments— (200)— (200)— 
Total provision for credit losses5,000 16,800 5,168 35,800 14,182 
Net interest income after provision for credit losses49,950 38,252 53,428 130,122 163,758 
Noninterest income:
Wealth management revenue7,104 6,801 6,288 21,037 18,968 
Service charges on deposit accounts3,411 3,121 3,149 9,648 8,744 
Interchange revenue3,506 3,563 3,609 10,427 10,717 
Residential mortgage banking revenue697 557 507 1,781 1,452 
Income on company-owned life insurance1,982 1,925 918 5,708 2,685 
Loss on sales of investment securities, net(44)(152)(4,961)(196)(6,478)
Other income2,683 1,841 2,035 9,777 9,989 
Total noninterest income19,339 17,656 11,545 58,182 46,077 
Noninterest expense:
Salaries and employee benefits24,382 22,872 22,307 71,356 69,407 
Occupancy and equipment4,393 3,964 3,730 12,499 12,052 
Data processing6,955 7,205 6,468 20,882 19,323 
Professional services1,744 2,243 1,554 6,242 4,977 
Amortization of intangible assets951 1,016 1,129 3,056 3,628 
FDIC insurance1,402 1,219 1,107 3,895 3,632 
Other expense6,906 8,960 5,743 21,149 16,395 
Total noninterest expense46,733 47,479 42,038 139,079 129,414 
Income before income taxes22,556 8,429 22,935 49,225 80,421 
Income taxes4,080 1,679 11,533 10,114 25,672 
Net income18,476 6,750 11,402 39,111 54,749 
Preferred stock dividends2,229 2,228 2,229 6,685 6,685 
Net income available to common shareholders$16,247 $4,522 $9,173 $32,426 $48,064 
Basic earnings per common share$0.74 $0.20 $0.41 $1.47 $2.14 
Diluted earnings per common share$0.74 $0.20 $0.41 $1.47 $2.14 

13

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
Adjusted Earnings Reconciliation
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(dollars in thousands, except per share data)20242024202320242023
Income before income taxes - GAAP$22,556 $8,429 $22,935 $49,225 $80,421 
Adjustments to noninterest income:
Loss on sales of investment securities, net44 152 4,961 196 6,478 
(Gain) on repurchase of subordinated debt(77)(167)— (244)(676)
Total adjustments to noninterest income(33)(15)4,961 (48)5,802 
Adjusted earnings pre tax - non-GAAP22,523 8,414 27,896 49,177 86,223 
Adjusted earnings tax4,071 1,675 8,389 10,101 22,755 
Adjusted earnings - non-GAAP18,452 6,739 19,507 39,076 63,468 
Preferred stock dividends2,229 2,228 2,229 6,685 6,685 
Adjusted earnings available to common shareholders$16,223 $4,511 $17,278 $32,391 $56,783 
Adjusted diluted earnings per common share$0.74 $0.20 $0.78 $1.47 $2.53 
Adjusted return on average assets0.95 %0.35 %0.98 %0.67 %1.07 %
Adjusted return on average shareholders' equity9.23 %3.46 %10.03 %6.61 %10.99 %
Adjusted return on average tangible common equity12.67 %3.65 %14.24 %8.61 %15.80 %
Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(dollars in thousands)20242024202320242023
Adjusted earnings pre tax - non-GAAP$22,523 $8,414 $27,896 $49,177 $86,223 
Provision for credit losses5,000 16,800 5,168 35,800 14,182 
Adjusted pre-tax, pre-provision earnings - non-GAAP$27,523 $25,214 $33,064 $84,977 $100,405 
Adjusted pre-tax, pre-provision return on average assets1.42 %1.30 %1.66 %1.46 %1.70 %

14

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
Efficiency Ratio Reconciliation
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(dollars in thousands)20242024202320242023
Noninterest expense - GAAP$46,733 $47,479 $42,038 $139,079 $129,414 
Net interest income - GAAP$54,950 $55,052 $58,596 $165,922 $177,940 
Effect of tax-exempt income205 170 205 589 644 
Adjusted net interest income55,155 55,222 58,801 166,511 178,584 
Noninterest income - GAAP19,339 17,656 11,545 58,182 46,077 
Loss on sales of investment securities, net44 152 4,961 196 6,478 
(Gain) on repurchase of subordinated debt(77)(167)— (244)(676)
Adjusted noninterest income19,306 17,641 16,506 58,134 51,879 
Adjusted total revenue$74,461 $72,863 $75,307 $224,645 $230,463 
Efficiency ratio62.76 %65.16 %55.82 %61.91 %56.15 %
Return on Average Tangible Common Equity (ROATCE)
For the Three Months EndedFor the Nine Months Ended
September 30,June 30,September 30,September 30,September 30,
(dollars in thousands)20242024202320242023
Net income available to common shareholders$16,247 $4,522 $9,173 $32,426 $48,064 
Average total shareholders' equity—GAAP$795,322 $783,846 $771,625 $789,712 $771,883 
Adjustments:
Preferred Stock(110,548)(110,548)(110,548)(110,548)(110,548)
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(13,506)(14,483)(17,782)(14,501)(18,959)
Average tangible common equity$509,364 $496,911 $481,391 $502,759 $480,472 
ROATCE12.69 %3.66 %7.56 %8.62 %13.37 %

15

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
As of
September 30,June 30,March 31,December 31,September 30,
(dollars in thousands, except per share data)20242024202420232023
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity—GAAP$818,259 $785,772 $791,006 $791,853 $757,610 
Adjustments:
Preferred Stock(110,548)(110,548)(110,548)(110,548)(110,548)
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(13,052)(14,003)(15,019)(16,108)(17,238)
Tangible common equity532,755 499,317 503,535 503,293 467,920 
Less: Accumulated other comprehensive loss (AOCI)(60,640)(82,581)(81,419)(76,753)(101,181)
Tangible common equity excluding AOCI$593,395 $581,898 $584,954 $580,046 $569,101 
Total Assets to Tangible Assets:
Total assets—GAAP$7,751,483 $7,757,274 $7,831,809 $7,866,868 $7,969,285 
Adjustments:
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(13,052)(14,003)(15,019)(16,108)(17,238)
Tangible assets$7,576,527 $7,581,367 $7,654,886 $7,688,856 $7,790,143 
Common Shares Outstanding21,393,905 21,377,215 21,485,231 21,551,402 21,594,546 
Tangible Common Equity to Tangible Assets7.03 %6.59 %6.58 %6.55 %6.01 %
Tangible Book Value Per Share$24.90 $23.36 $23.44 $23.35 $21.67 
Tangible Book Value Per Share, excluding AOCI$27.74 $27.22 $27.23 $26.91 $26.35 

16