• Midland States Bancorp, Inc. Announces 2022 Second Quarter Results

    来源: Nasdaq GlobeNewswire / 28 7月 2022 16:10:01   America/New_York

    Summary

    • Net income of $21.9 million, or $0.97 diluted earnings per share
    • ROAA, ROAE, and ROATCE all increased from prior quarter
    • Total loans increased 18.5% annualized from prior quarter
    • Net interest margin increased 15 basis points from prior quarter to 3.65%
    • Efficiency ratio improved to 53.10% from 55.73% in prior quarter

    EFFINGHAM, Ill., July 28, 2022 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income of $21.9 million, or $0.97 diluted earnings per share, for the second quarter of 2022. This compares to net income of $20.7 million, or $0.92 diluted earnings per share, for the first quarter of 2022. This also compares to net income of $20.1 million, or $0.88 diluted earnings per share, for the second quarter of 2021.

    Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We continue to generate improvement in our financial performance as a result of the strategic initiatives we have implemented over the past few years to strengthen our commercial banking team, increase our focus on higher growth markets, and improve operational efficiencies. We had another exceptionally strong quarter of loan production, which resulted in 18% annualized growth in total loans, as well as continued expansion in our net interest margin. The loan growth and margin expansion drove increases in our revenue and earnings, as well as improved efficiencies and returns compared to the prior quarter.

    “Our loan pipeline remains strong, although we expect loan growth to moderate in the second half of the year as it is likely that higher rates and concern about weakening economic conditions will have a greater impact on loan demand. However, with our continued loan growth and margin expansion, combined with stable expense levels, we believe that we are well positioned to generate further improvement in earnings and returns,” said Mr. Ludwig.

    Net Interest Margin

    Net interest margin for the second quarter of 2022 was 3.65%, compared to 3.50% for the first quarter of 2022, due primarily to a favorable shift in the mix of earning assets and an increase in the average yield on earning assets. The Company’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 3 basis points to net interest margin in both the first and second quarters of 2022.

    Relative to the second quarter of 2021, net interest margin increased 36 basis points from 3.29%, primarily due to a favorable shift in the mix of earning assets and an increase in the average yield on earning assets. Accretion income on purchased loan portfolios contributed 9 basis points to net interest margin in the second quarter of 2021. Excluding the impact of accretion income, net interest margin increased 42 basis points from the second quarter of 2021.  

    Net Interest Income

    Net interest income for the second quarter of 2022 was $61.3 million, an increase of 7.9% from $56.8 million for the first quarter of 2022, which was primarily due to higher average loan balances and an increase in net interest margin. PPP loan income totaled $0.7 million in the second quarter of 2022, compared to $1.2 million in the first quarter of 2022. Accretion income associated with purchased loan portfolios totaled $0.6 million for the second quarter of 2022, unchanged from $0.6 million for the first quarter of 2022.

    Relative to the second quarter of 2021, net interest income increased $11.2 million, or 22.4%, due to higher average earning assets and an increase in net interest margin. Accretion income for the second quarter of 2021 was $1.3 million. PPP loan income totaled $2.5 million in the second quarter of 2021.

    Noninterest Income

    Noninterest income for the second quarter of 2022 was $14.6 million, a decrease of 6.4% from $15.6 million for the first quarter of 2022. The decrease in noninterest income was primarily attributable to lower wealth management revenue due to a decline in assets under administration resulting from market performance.

    Relative to the second quarter of 2021, noninterest income decreased 16.1% from $17.4 million. The decrease was primarily attributable to a decline in residential mortgage banking revenue and other income.

    Wealth management revenue for the second quarter of 2022 was $6.1 million, a decrease of 14.0% from $7.1 million in the first quarter of 2022. Compared to the second quarter of 2021, wealth management revenue decreased 5.9%, primarily due to a decline in assets under administration resulting from market performance.

    Noninterest Expense

    Noninterest expense for the second quarter of 2022 was $41.3 million, an increase of 1.1% from $40.9 million in the first quarter of 2022. The increase was primarily due to higher salaries and employee benefits expense resulting from a modest increase in staffing levels and higher incentive compensation.

    Relative to the second quarter of 2021, noninterest expense decreased 15.5% from $48.9 million. Noninterest expense for the second quarter of 2021 included $3.6 million in professional fees related to the settlement of a prior tax issue and $3.7 million in FHLB advance prepayment fees.

    Loan Portfolio

    Total loans outstanding were $5.80 billion at June 30, 2022, compared with $5.54 billion at March 31, 2022, and $4.84 billion at June 30, 2021. The increase in total loans from March 31, 2022 was primarily attributable to higher balances of commercial real estate loans, partially offset by lower period-end balances of commercial FHA warehouse lines and continued forgiveness of PPP loans.

    Equipment finance balances increased $27.9 million from March 31, 2022 to $985.5 million at June 30, 2022.  

    Compared to loan balances at June 30, 2021, growth in equipment finance balances, other commercial loans, commercial real estate loans, and consumer loans was partially offset by declines in commercial FHA warehouse lines, PPP loans and residential real estate loans.

    Deposits

    Total deposits were $6.18 billion at June 30, 2022, compared with $6.06 billion at March 31, 2022, and $5.20 billion at June 30, 2021. The increase in total deposits from the end of the prior quarter was primarily attributable to growth in noninterest-bearing and lower cost interest-bearing deposits.

    Asset Quality

    Nonperforming loans totaled $56.9 million, or 0.98% of total loans, at June 30, 2022, compared with $52.9 million, or 0.95% of total loans, at March 31, 2022. The increase in nonperforming loans was attributable to one commercial real estate loan where no loss is currently expected. At June 30, 2021, nonperforming loans totaled $61.4 million, or 1.27% of total loans.

    Net charge-offs for the second quarter of 2022 were $2.8 million, or 0.20% of average loans on an annualized basis, compared to net charge-offs of $2.3 million, or 0.17% of average loans on an annualized basis, for the first quarter of 2022, and $4.0 million, or 0.33% of average loans on an annualized basis, for the second quarter of 2021.  

    The Company recorded a provision for credit losses on loans of $4.7 million for the second quarter of 2022, which was primarily related to the growth in total loans and weakening economic conditions.

    The Company’s allowance for credit losses on loans was 0.95% of total loans and 96.5% of nonperforming loans at June 30, 2022, compared with 0.96% of total loans and 100.1% of nonperforming loans at March 31, 2022.

    Capital

    At June 30, 2022, 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:

     



    Bank Level
    Ratios as of
    June 30, 2022    		Consolidated
    Ratios as of
    June 30, 2022



    Minimum
    Regulatory
    Requirements (2)
    Total capital to risk-weighted assets10.60%11.44%10.50%
    Tier 1 capital to risk-weighted assets9.85%8.63%8.50%
    Tier 1 leverage ratio9.12%7.98%4.00%
    Common equity Tier 1 capital9.85%7.66%7.00%
    Tangible common equity to tangible assets (1)NA6.22%NA

          (1)   A non-GAAP financial measure. Refer to page 15 for a reconciliation to the comparable GAAP financial measure.
          (2)   Includes the capital conservation buffer of 2.5%.

    Stock Repurchase Program

    During the second quarter of 2022, the Company did not repurchase any shares under its stock repurchase program. As of June 30, 2022, the Company had $18.6 million remaining under the current stock repurchase authorization.

    Conference Call, Webcast and Slide Presentation

    The Company will host a conference call and webcast at 7:30 a.m. Central Time on Friday, July 29, 2022, to discuss its financial results.

    Telephone Access: https://register.vevent.com/register/BI640d5b3f68364a9991310d1cfd490581

    A slide presentation relating to the second quarter 2022 financial results will be accessible prior to the scheduled conference call. This earnings release should be read together with the slide presentation. The slide presentation and webcast of the conference call can be accessed on the Webcasts and Presentations page of the Company’s investor relations website at investors.midlandsb.com under the “News and Events” tab.

    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, 2022, the Company had total assets of approximately $7.44 billion, and its Wealth Management Group had assets under administration of approximately $3.60 billion. Midland 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 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” 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, this presentation 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, the effects of the COVID-19 pandemic and its potential effects on the economic environment; changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; developments and uncertainty related to the future use and availability of some reference rates, such as the London Inter-Bank Offered Rate, as well as other alternative reference rates, and the adoption of a substitute; 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
    Douglas J. Tucker, SVP and Corporate Counsel, at dtucker@midlandsb.com or (217) 342-7321

    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited)
                        
     For the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands, except per share data)2022 2022 2021 2021 2021
    Earnings Summary                   
    Net interest income$61,334  $56,827  $54,301  $51,396   $50,110  
    Provision for credit losses 5,441   4,167   467   (184)   (455) 
    Noninterest income 14,613   15,613   22,523   15,143    17,417  
    Noninterest expense 41,339   40,884   45,757   41,292    48,941  
    Income before income taxes 29,167   27,389   30,600   25,431    19,041  
    Income taxes 7,284   6,640   7,493   5,883    (1,083) 
    Net income$21,883  $20,749  $23,107  $19,548   $20,124  
                        
    Diluted earnings per common share$0.97  $0.92  $1.02  $0.86   $0.88  
    Weighted average shares outstanding - diluted 22,360,819   22,350,307   22,350,771   22,577,880    22,677,515  
    Return on average assets 1.19%  1.16%  1.26%  1.15 %  1.20 %
    Return on average shareholders' equity 13.65%  12.80%  14.04%  11.90 %  12.59 %
    Return on average tangible common equity(1) 19.14%  17.84%  19.69%  16.76 %  17.85 %
    Net interest margin 3.65%  3.50%  3.25%  3.34 %  3.29 %
    Efficiency ratio(1) 53.10%  55.73%  52.61%  58.78 %  60.19 %
                        
    Adjusted Earnings Performance Summary(1)                   
    Adjusted earnings$22,191  $20,815  $25,416  $19,616   $19,755  
    Adjusted diluted earnings per common share$0.98  $0.92  $1.12  $0.86   $0.86  
    Adjusted return on average assets 1.21%  1.16%  1.39%  1.15 %  1.17 %
    Adjusted return on average shareholders' equity 13.84%  12.84%  15.44%  11.94 %  12.36 %
    Adjusted return on average tangible common equity 19.41%  17.89%  21.65%  16.82 %  17.52 %
    Adjusted pre-tax, pre-provision earnings$35,902  $32,041  $36,324  $28,379   $26,967  
    Adjusted pre-tax, pre-provision return on average assets 1.95%  1.79%  1.98%  1.67 %  1.60 %
                        
    (1) Non-GAAP financial measures. Refer to pages 12 - 14 for a reconciliation to the comparable GAAP financial measures. 


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                        
     For the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (in thousands, except per share data)2022 2022 2021 2021 2021
    Net interest income:                   
    Interest income$69,236   $62,748   $60,427   $58,490   $58,397  
    Interest expense 7,902    5,921    6,126    7,094    8,287  
    Net interest income 61,334    56,827    54,301    51,396    50,110  
    Provision for credit losses:                   
    Provision for credit losses on loans 4,741    4,132    -    -    -  
    Provision for credit losses on unfunded commitments 700    256    388    -    (265) 
    Provision for other credit losses -    (221)   79    (184)   (190) 
    Total provision for credit losses 5,441    4,167    467    (184)   (455) 
    Net interest income after provision for credit losses 55,893    52,660    53,834    51,580    50,565  
    Noninterest income:                   
    Wealth management revenue 6,143    7,139    7,176    7,175    6,529  
    Residential mortgage banking revenue 384    599    1,103    1,287    1,562  
    Service charges on deposit accounts 2,304    2,068    2,338    2,268    1,916  
    Interchange revenue 3,590    3,280    3,677    3,651    3,797  
    (Loss) gain on sales of investment securities, net (101)   -    -    160    377  
    Gain on termination of hedged interest swap -    -    1,845    -    -  
    Impairment on commercial mortgage servicing rights (869)   (394)   (2,072)   (3,037)   (1,148) 
    Company-owned life insurance 840    1,019    1,904    869    863  
    Other income 2,322    1,902    6,552    2,770    3,521  
    Total noninterest income 14,613    15,613    22,523    15,143    17,417  
    Noninterest expense:                   
    Salaries and employee benefits 22,645    21,870    22,109    22,175    22,071  
    Occupancy and equipment 3,489    3,755    3,429    3,701    3,796  
    Data processing 6,082    5,873    5,819    6,495    6,288  
    Professional 1,516    1,972    1,499    1,738    5,549  
    Amortization of intangible assets 1,318    1,398    1,425    1,445    1,470  
    Loss on mortgage servicing rights held for sale -    -    -    79    143  
    FHLB advances prepayment fees -    -    4,859    -    3,669  
    Other expense 6,289    6,016    6,617    5,659    5,955  
    Total noninterest expense 41,339    40,884    45,757    41,292    48,941  
    Income before income taxes 29,167    27,389    30,600    25,431    19,041  
    Income taxes 7,284    6,640    7,493    5,883    (1,083) 
    Net income$21,883   $20,749   $23,107   $19,548   $20,124  
                        
    Basic earnings per common share$0.97   $0.92   $1.03   $0.86   $0.88  
    Diluted earnings per common share$0.97   $0.92   $1.02   $0.86   $0.88  


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                        
     As of
     June 30, March 31, December 31, September 30,  June 30,
    (in thousands)2022 2022 2021 2021 2021
    Assets                   
    Cash and cash equivalents$270,117   $332,264   $680,371   $662,643   $425,100  
    Investment securities 769,278    858,246    916,132    900,319    756,831  
    Loans 5,795,544    5,539,961    5,224,801    4,915,554    4,835,866  
    Allowance for credit losses on loans (54,898)   (52,938)   (51,062)   (55,675)   (58,664) 
    Total loans, net 5,740,646    5,487,023    5,173,739    4,859,879    4,777,202  
    Loans held for sale 5,298    8,931    32,045    26,621    12,187  
    Premises and equipment, net 77,668    77,857    79,220    79,701    80,699  
    Other real estate owned 11,131    11,537    12,059    11,931    12,768  
    Loan servicing rights, at lower of cost or fair value 25,879    27,484    28,865    30,916    34,577  
    Goodwill 161,904    161,904    161,904    161,904    161,904  
    Other intangible assets, net 23,559    22,976    24,374    26,065    27,900  
    Company-owned life insurance 148,900    148,060    148,378    149,146    148,277  
    Other assets 201,432    202,433    186,718    184,834    192,565  
    Total assets$7,435,812   $7,338,715   $7,443,805   $7,093,959   $6,630,010  
                        
    Liabilities and Shareholders' Equity                   
    Noninterest-bearing demand deposits$1,972,261   $1,965,032   $2,245,701   $1,672,901   $1,366,453  
    Interest-bearing deposits 4,212,177    4,092,507    3,864,947    3,928,475    3,829,898  
    Total deposits 6,184,438    6,057,539    6,110,648    5,601,376    5,196,351  
    Short-term borrowings 67,689    60,352    76,803    66,666    75,985  
    FHLB advances and other borrowings 285,000    310,171    310,171    440,171    440,171  
    Subordinated debt 139,277    139,184    139,091    138,998    138,906  
    Trust preferred debentures 49,674    49,524    49,374    49,235    49,094  
    Other liabilities 73,546    76,959    93,881    139,669    81,317  
    Total liabilities 6,799,624    6,693,729    6,779,968    6,436,115    5,981,824  
    Total shareholders’ equity 636,188    644,986    663,837    657,844    648,186  
    Total liabilities and shareholders’ equity$7,435,812   $7,338,715   $7,443,805   $7,093,959   $6,630,010  


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                        
     As of
     June 30, March 31, December 31, September 30, June 30,
    (in thousands)2022 2022 2021 2021 2021
    Loan Portfolio                   
    Equipment finance loans$546,267  $528,572  $521,973  $486,623  $464,380 
    Equipment finance leases 439,202   429,000   423,280   412,430   407,161 
    Commercial FHA warehouse lines 23,872   83,999   91,927   180,248   129,607 
    SBA PPP loans 6,409   22,862   52,477   82,410   146,728 
    Other commercial loans 814,710   802,692   783,811   718,054   683,365 
    Total commercial loans and leases 1,830,460   1,867,125   1,873,468   1,879,765   1,831,241 
    Commercial real estate 2,335,655   2,114,041   1,816,828   1,562,013   1,540,489 
    Construction and land development 203,955   188,668   193,749   200,792   212,508 
    Residential real estate 340,103   329,331   338,151   344,414   366,612 
    Consumer 1,085,371   1,040,796   1,002,605   928,570   885,016 
    Total loans$5,795,544  $5,539,961  $5,224,801  $4,915,554  $4,835,866 
                        
    Deposit Portfolio                   
    Noninterest-bearing demand$1,972,261  $1,965,032  $2,245,701  $1,672,901  $1,366,453 
    Interest-bearing:                   
    Checking 1,808,885   1,779,018   1,663,021   1,697,326   1,619,436 
    Money market 1,027,547   964,352   869,067   852,836   787,688 
    Savings 740,364   710,955   679,115   665,710   669,277 
    Time 620,363   619,386   630,583   688,693   721,502 
    Brokered time 15,018   18,796   23,161   23,910   31,995 
    Total deposits$6,184,438  $6,057,539  $6,110,648  $5,601,376  $5,196,351 


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                        
     For the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands)2022 2022 2021 2021 2021
    Average Balance Sheets                   
    Cash and cash equivalents$226,517  $384,231  $685,655  $525,848  $509,886 
    Investment securities 818,927   894,634   915,707   773,372   734,462 
    Loans 5,677,791   5,274,051   4,995,794   4,800,063   4,826,234 
    Loans held for sale 9,865   31,256   34,272   15,204   36,299 
    Nonmarketable equity securities 36,338   36,378   39,203   43,873   49,388 
    Total interest-earning assets 6,769,438   6,620,550   6,670,631   6,158,360   6,156,269 
    Non-earning assets 615,348   631,187   605,060   597,153   589,336 
    Total assets$7,384,786  $7,251,737  $7,275,691  $6,755,513  $6,745,605 
                        
    Interest-bearing deposits$4,152,764  $3,953,249  $3,913,475  $3,895,970  $3,815,179 
    Short-term borrowings 59,301   70,044   66,677   68,103   65,727 
    FHLB advances and other borrowings 307,611   311,282   319,954   440,171   519,490 
    Subordinated debt 139,232   139,139   139,046   138,954   165,155 
    Trust preferred debentures 49,602   49,451   49,307   49,167   49,026 
    Total interest-bearing liabilities 4,708,510   4,523,165   4,488,459   4,592,365   4,614,577 
    Noninterest-bearing deposits 1,967,263   1,989,413   2,049,802   1,434,193   1,411,428 
    Other noninterest-bearing liabilities 66,009   81,832   84,538   77,204   78,521 
    Shareholders' equity 643,004   657,327   652,892   651,751   641,079 
    Total liabilities and shareholders' equity$7,384,786  $7,251,737  $7,275,691  $6,755,513  $6,745,605 
                        
    Yields                   
    Earning Assets                   
    Cash and cash equivalents 0.83%  0.18%  0.16%  0.16%  0.11%
    Investment securities 2.41%  2.22%  2.12%  2.34%  2.43%
    Loans 4.49%  4.40%  4.36%  4.42%  4.43%
    Loans held for sale 3.15%  2.86%  3.53%  2.79%  2.88%
    Nonmarketable equity securities 5.38%  5.40%  5.07%  5.05%  4.94%
    Total interest-earning assets 4.12%  3.87%  3.62%  3.79%  3.83%
                        
    Interest-Bearing Liabilities                   
    Interest-bearing deposits 0.37%  0.22%  0.22%  0.26%  0.31%
    Short-term borrowings 0.15%  0.14%  0.12%  0.12%  0.12%
    FHLB advances and other borrowings 1.87%  1.58%  1.75%  1.80%  1.91%
    Subordinated debt 5.78%  5.78%  5.78%  5.79%  5.61%
    Trust preferred debentures 5.05%  4.21%  3.90%  3.92%  4.00%
    Total interest-bearing liabilities 0.67%  0.53%  0.54%  0.61%  0.72%
                        
    Cost of Deposits 0.25%  0.15%  0.15%  0.19%  0.23%
                        
    Net Interest Margin 3.65%  3.50%  3.25%  3.34%  3.29%


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                        
     As of and for the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands, except per share data)2022 2022 2021 2021 2021
    Asset Quality                   
    Loans 30-89 days past due$16,212  $29,044  $17,514  $16,772  $20,224 
    Nonperforming loans 56,883   52,900   42,580   54,620   61,363 
    Nonperforming assets 69,344   66,164   57,068   69,261   76,926 
    Net charge-offs 2,781   2,255   4,613   2,989   4,023 
    Loans 30-89 days past due to total loans 0.28%  0.52%  0.34%  0.34%  0.42%
    Nonperforming loans to total loans 0.98%  0.95%  0.81%  1.11%  1.27%
    Nonperforming assets to total assets 0.93%  0.90%  0.77%  0.98%  1.16%
    Allowance for credit losses to total loans 0.95%  0.96%  0.98%  1.13%  1.21%
    Allowance for credit losses to nonperforming loans 96.51%  100.07%  119.92%  101.93%  95.60%
    Net charge-offs to average loans 0.20%  0.17%  0.37%  0.25%  0.33%
                        
    Wealth Management                   
    Trust assets under administration$3,597,944  $4,044,138  $4,217,412  $4,058,168  $4,077,581 
                        
    Market Data                   
    Book value per share at period end$28.84  $29.26  $30.11  $29.64  $28.96 
    Tangible book value per share at period end(1)$20.43  $20.87  $21.66  $21.17  $20.48 
    Market price at period end$24.04  $28.86  $24.79  $24.73  $26.27 
    Shares outstanding at period end 22,060,255   22,044,626   22,050,537   22,193,141   22,380,492 
                        
    Capital                   
    Total capital to risk-weighted assets 11.44%  11.74%  12.19%  13.10%  13.11%
    Tier 1 capital to risk-weighted assets 8.63%  8.82%  9.16%  9.73%  9.64%
    Tier 1 common capital to risk-weighted assets 7.66%  7.80%  8.08%  8.55%  8.44%
    Tier 1 leverage ratio 7.98%  7.96%  7.75%  8.16%  8.00%
    Tangible common equity to tangible assets(1) 6.22%  6.43%  6.58%  6.80%  7.12%
                        
    (1) Non-GAAP financial measures. Refer to pages 12 -14 for a reconciliation to the comparable GAAP financial measures.         


    MIDLAND STATES BANCORP, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
                        
    Adjusted Earnings Reconciliation
                        
     For the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands, except per share data)2022 2022 2021 2021 2021
    Income before income taxes - GAAP$29,167   $27,389   $30,600   $25,431   $19,041  
    Adjustments to noninterest income:                   
    Loss (gain) on sales of investment securities, net 101    -    -    (160)   (377) 
    (Gain) on termination of hedged interest rate swap -    -    (1,845)   -    -  
    Other income -    -    -    -    27  
    Total adjustments to noninterest income 101    -    (1,845)   (160)   (350) 
    Adjustments to noninterest expense:                   
    (Loss) on mortgage servicing rights held for sale -    -    -    (79)   (143) 
    FHLB advances prepayment fees -    -    (4,859)   -    (3,669) 
    Integration and acquisition expenses (324)   (91)   (171)   (176)   (3,771) 
    Total adjustments to noninterest expense (324)   (91)   (5,030)   (255)   (7,583) 
    Adjusted earnings pre tax 29,592    27,480    33,785    25,526    26,274  
    Adjusted earnings tax 7,401    6,665    8,369    5,910    6,519  
    Adjusted earnings - non-GAAP$22,191   $20,815   $25,416   $19,616   $19,755  
    Adjusted diluted earnings per common share$0.98   $0.92   $1.12   $0.86   $0.86  
    Adjusted return on average assets 1.21 %  1.16 %  1.39 %  1.15 %  1.17 %
    Adjusted return on average shareholders' equity 13.84 %  12.84 %  15.44 %  11.94 %  12.36 %
    Adjusted return on average tangible common equity 19.41 %  17.89 %  21.65 %  16.82 %  17.52 %
                        
                        
    Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
                        
     For the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands)2022 2022 2021 2021 2021
    Adjusted earnings pre tax - non-GAAP$29,592   $27,480   $33,785   $25,526   $26,274  
    Provision for credit losses 5,441    4,167    467    (184)   (455) 
    Impairment on commercial mortgage servicing rights 869    394    2,072    3,037    1,148  
    Adjusted pre-tax, pre-provision earnings - non-GAAP$35,902   $32,041   $36,324   $28,379   $26,967  
    Adjusted pre-tax, pre-provision return on average assets 1.95 %  1.79 %  1.98 %  1.67 %  1.60 %


    MIDLAND STATES BANCORP, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
                        
    Efficiency Ratio Reconciliation
                        
     For the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands)2022 2022 2021 2021 2021
    Noninterest expense - GAAP$41,339   $40,884   $45,757   $41,292   $48,941  
    (Loss) on mortgage servicing rights held for sale -    -    -    (79)   (143) 
    FHLB advances prepayment fees -    -    (4,859)   -    (3,669) 
    Integration and acquisition expenses (324)   (91)   (171)   (176)   (3,771) 
    Adjusted noninterest expense$41,015   $40,793   $40,727   $41,037   $41,358  
                        
    Net interest income - GAAP$61,334   $56,827   $54,301   $51,396   $50,110  
    Effect of tax-exempt income 321    369    372    402    383  
    Adjusted net interest income 61,655    57,196    54,673    51,798    50,493  
                        
    Noninterest income - GAAP 14,613    15,613    22,523    15,143    17,417  
    Impairment on commercial mortgage servicing rights 869    394    2,072    3,037    1,148  
    Loss (gain) on sales of investment securities, net 101    -    -    (160)   (377) 
    (Gain) on termination of hedged interest rate swap -    -    (1,845)   -    -  
    Other -    -    -    -    27  
    Adjusted noninterest income 15,583    16,007    22,750    18,020    18,215  
                        
    Adjusted total revenue$77,238   $73,203   $77,423   $69,818   $68,708  
                        
    Efficiency ratio 53.10 %  55.73 %  52.61 %  58.78 %  60.19 %



    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
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands, except per share data)2022 2022 2021 2021 2021
    Shareholders' Equity to Tangible Common Equity                   
    Total shareholders' equity—GAAP$636,188   $644,986   $663,837   $657,844   $648,186  
    Adjustments:                   
    Goodwill (161,904)   (161,904)   (161,904)   (161,904)   (161,904) 
    Other intangible assets, net (23,559)   (22,976)   (24,374)   (26,065)   (27,900) 
    Tangible common equity$450,725   $460,106   $477,558   $469,875   $458,382  
                        
    Total Assets to Tangible Assets:                   
    Total assets—GAAP$7,435,812   $7,338,715   $7,443,805   $7,093,959   $6,630,010  
    Adjustments:                   
    Goodwill (161,904)   (161,904)   (161,904)   (161,904)   (161,904) 
    Other intangible assets, net (23,559)   (22,976)   (24,374)   (26,065)   (27,900) 
    Tangible assets$7,250,349   $7,153,835   $7,257,527   $6,905,990   $6,440,206  
                        
    Common Shares Outstanding 22,060,255    22,044,626    22,050,537    22,193,141    22,380,492  
                        
    Tangible Common Equity to Tangible Assets 6.22 %  6.43 %  6.58 %  6.80 %  7.12 %
    Tangible Book Value Per Share$20.43   $20.87   $21.66   $21.17   $20.48  
                        
    Return on Average Tangible Common Equity (ROATCE)
                        
     For the Quarter Ended
     June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands)2022 2022 2021 2021 2021
    Net income$21,883   $20,749   $23,107   $19,548   $20,124  
                        
    Average total shareholders' equity—GAAP$643,004   $657,327   $652,892   $651,751   $641,079  
    Adjustments:                   
    Goodwill (161,904)   (161,904)   (161,904)   (161,904)   (161,904) 
    Other intangible assets, net (22,570)   (23,638)   (25,311)   (27,132)   (26,931) 
    Average tangible common equity$458,530   $471,785   $465,677   $462,715   $452,244  
    ROATCE 19.14 %  17.84 %  19.69 %  16.76 %  17.85 %

     

     


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