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

    来源: Nasdaq GlobeNewswire / 28 4月 2022 16:15:01   America/New_York

    Summary

    • Net income of $20.7 million, or $0.92 diluted earnings per share
    • Total loans increased 24.1% annualized
    • Net interest income increased 4.7% from prior quarter to $56.8 million
    • Net interest margin increased 25 basis points from prior quarter to 3.50%
    • Efficiency ratio improved to 55.73% from 57.14% in the first quarter of 2021

    EFFINGHAM, Ill., April 28, 2022 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income of $20.7 million, or $0.92 diluted earnings per share, for the first quarter of 2022. This compares to net income of $23.1 million, or $1.02 diluted earnings per share, for the fourth quarter of 2021, which included a $4.9 million FHLB advance prepayment fee and a $1.8 million gain on the termination of an interest rate swap. This also compares to net income of $18.5 million, or $0.81 diluted earnings per share, for the first quarter of 2021.

    Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We executed very well in the first quarter, continuing to generate strong loan production while effectively managing expenses. Our banking teams are generating high quality lending opportunities across all asset classes, which resulted in 24% annualized growth in total loans. The strong loan production enabled us to redeploy our excess liquidity into the loan portfolio, drive a favorable shift in our mix of earning assets, and generate significant expansion in our net interest margin.

    “Our loan pipeline remains very strong, which should enable us to continue to generate a high level of loan growth, drive additional expansion in our net interest margin, and further improve our earnings and level of profitability as we move through the year. While we continue to see good results from the efforts we have made to enhance our new business development capabilities, we are also making steady progress on our long-term initiatives to further enhance the value of the Midland franchise. Through consistent investment in our technology platform and the development of additional fintech partnerships, we are steadily expanding our Banking-as-a-Service capabilities, which we believe will become a meaningful contributor to further balance sheet and earnings growth in the years to come,” said Mr. Ludwig.

    Adjusted Earnings

    Financial results for the fourth quarter of 2021 were impacted by $4.9 million in FHLB advance prepayment fees and a $1.8 million gain on the termination of an interest rate swap. Excluding these amounts and certain other income and expenses, adjusted earnings were $25.4 million, or $1.12 per diluted share, for the fourth quarter of 2021.

    A reconciliation of adjusted earnings to net income according to accounting principles generally accepted in the United States (“GAAP”) is provided in the financial tables at the end of this press release.

    Net Interest Margin

    Net interest margin for the first quarter of 2022 was 3.50%, compared to 3.25% for the fourth quarter of 2021. The Company’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 3 and 4 basis points to net interest margin in the first quarter of 2022 and fourth quarter of 2021, respectively. Excluding the impact of accretion income, net interest margin increased 26 basis points from the fourth quarter of 2021, due primarily to a favorable shift in the mix of earning assets.

    Relative to the first quarter of 2021, net interest margin increased from 3.45%. Accretion income on purchased loan portfolios contributed 8 basis points to net interest margin in the first quarter of 2021. Excluding the impact of accretion income, net interest margin increased 10 basis points from the first quarter of 2021, primarily due to a decrease in the cost of deposits.  

    Net Interest Income

    Net interest income for the first quarter of 2022 was $56.8 million, an increase of 4.7% from $54.3 million for the fourth quarter of 2021. Accretion income associated with purchased loan portfolios totaled $0.6 million for the first quarter of 2022, compared to $0.8 million for the fourth quarter of 2021. Excluding accretion income, net interest income increased $2.7 million from the prior quarter, which was primarily due to higher average loan balances and an increase in net interest margin. PPP loan income totaled $1.2 million, including net loan origination fees of $1.1 million, in the first quarter of 2022, compared to $1.6 million, including net loan origination fees of $1.4 million, in the fourth quarter of 2021.

    Relative to the first quarter of 2021, net interest income increased $5.0 million, or 9.6%. Accretion income for the first quarter of 2021 was $1.2 million. Excluding the impact of accretion income, net interest income increased due to higher average earning assets and a decrease in the cost of deposits. PPP loan income totaled $2.6 million, including net loan origination fees of $2.1 million, in the first quarter of 2021.

    Noninterest Income

    Noninterest income for the first quarter of 2022 was $15.6 million, a decrease of 30.7% from $22.5 million for the fourth quarter of 2021. Noninterest income for the fourth quarter of 2021 was positively impacted by $3.9 million in unrealized income on equity investments, a $1.8 million gain on the termination of an FHLB interest rate swap, and a $1.0 million gain on company-owned life insurance. Impairment on commercial MSRs negatively impacted noninterest income by $0.4 million and $2.1 million in the first quarter of 2022 and fourth quarter of 2021, respectively.

    Relative to the first quarter of 2021, noninterest income increased 5.4% from $14.8 million. The increase was primarily attributable to higher levels of wealth management revenue, partially offset by a decline in residential mortgage banking revenue.

    Wealth management revenue for the first quarter of 2022 was $7.1 million, which was consistent with the fourth quarter of 2021. Compared to the first quarter of 2021, wealth management revenue increased 20.4%, primarily due to the increase in assets under administration over the past year, including the acquisition of ATG Trust Company.

    Noninterest Expense

    Noninterest expense for the first quarter of 2022 was $40.9 million, compared with $45.8 million in the fourth quarter of 2021. Noninterest expense for the fourth quarter of 2021 included $4.9 million in FHLB advance prepayment fees and $0.2 million in integration and acquisition expenses. Excluding the FHLB advance prepayment fees and integration and acquisition expenses, noninterest expense was consistent with the fourth quarter of 2021.

    Relative to the first quarter of 2021, noninterest expense increased 4.6% from $39.1 million, primarily due to higher salaries and employee benefits expense consistent with the overall growth of the Company.

    Loan Portfolio

    Total loans outstanding were $5.54 billion at March 31, 2022, compared with $5.22 billion at December 31, 2021, and $4.91 billion at March 31, 2021. The increase in total loans from December 31, 2021 was primarily attributable to higher balances of commercial real estate loans, partially offset by continued forgiveness of PPP loans.

    Equipment finance balances increased $12.3 million from December 31, 2021 to $957.6 million at March 31, 2022.  

    Compared to loan balances at March 31, 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 $6.06 billion at March 31, 2022, compared with $6.11 billion at December 31, 2021, and $5.34 billion at March 31, 2021. The decrease in total deposits from the end of the prior quarter was primarily attributable to period-end fluctuations in commercial FHA servicing deposits.

    Asset Quality

    Nonperforming loans totaled $52.9 million, or 0.95% of total loans, at March 31, 2022, compared with $42.6 million, or 0.81% of total loans, at December 31, 2021. The increase in nonperforming loans was attributable to one commercial real estate loan where no loss is currently expected. At March 31, 2021, nonperforming loans totaled $52.8 million, or 1.08% of total loans.

    Net charge-offs for the first quarter of 2022 were $2.3 million, or 0.17% of average loans on an annualized basis, compared to net charge-offs of $4.6 million, or 0.37% of average loans on an annualized basis, for the fourth quarter of 2021, and $1.7 million, or 0.14% of average loans on an annualized basis, for the first quarter of 2021.  

    The Company recorded a provision for credit losses on loans of $4.1 million for the first quarter of 2022, which was primarily related to the growth in total loans.

    The Company’s allowance for credit losses on loans was 0.96% of total loans and 100.0% of nonperforming loans at March 31, 2022, compared with 0.98% of total loans and 119.9% of nonperforming loans at December 31, 2021.

    Capital

    At March 31, 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
    Mar. 31, 2022
    Consolidated
    Ratios as of
    Mar. 31, 2022

    Minimum
    Regulatory
    Requirements (2)
    Total capital to risk-weighted assets10.73%11.74%10.50%
    Tier 1 capital to risk-weighted assets9.99%8.82%8.50%
    Tier 1 leverage ratio9.03%7.96%4.00%
    Common equity Tier 1 capital9.99%7.80%7.00%
    Tangible common equity to tangible assets (1)NA6.43%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 first quarter of 2022, the Company repurchased 43,010 shares of its common stock at a weighted average price of $25.77 under its stock repurchase program. As of March 31, 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, April 29, 2022, to discuss its financial results. The call can be accessed via telephone at (877) 516-3531; conference ID: 1638388. A recorded replay can be accessed through May 6, 2022, by dialing (855) 859-2056; conference ID: 1638388.

    A slide presentation relating to the first 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 March 31, 2022, the Company had total assets of approximately $7.34 billion, and its Wealth Management Group had assets under administration of approximately $4.04 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 Pre-Tax, Pre-Provision Earnings,” “Adjusted Return on Average Assets,” “Adjusted Return on Average Shareholders’ Equity,” “Adjusted Return on Average Tangible Common Equity,” “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, including the effects of the COVID-19 pandemic and its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic; 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
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands, except per share data)2022 2021 2021 2021 2021
    Earnings Summary                   
    Net interest income$56,827  $54,301  $51,396   $50,110   $51,868 
    Provision for credit losses 4,167   467   (184)   (455)   3,565 
    Noninterest income 15,613   22,523   15,143    17,417    14,816 
    Noninterest expense 40,884   45,757   41,292    48,941    39,079 
    Income before income taxes 27,389   30,600   25,431    19,041    24,040 
    Income taxes 6,640   7,493   5,883    (1,083)   5,502 
    Net income$20,749  $23,107  $19,548   $20,124   $18,538 
                        
    Diluted earnings per common share$0.92  $1.02  $0.86   $0.88   $0.81 
    Weighted average shares outstanding - diluted 22,350,307   22,350,771   22,577,880    22,677,515    22,578,553 
    Return on average assets 1.16%  1.26%  1.15 %  1.20 %  1.11%
    Return on average shareholders' equity 12.80%  14.04%  11.90 %  12.59 %  12.04%
    Return on average tangible common equity (1) 17.84%  19.69%  16.76 %  17.85 %  17.28%
    Net interest margin 3.50%  3.25%  3.34 %  3.29 %  3.45%
    Efficiency ratio (1) 55.73%  52.61%  58.78 %  60.19 %  57.14%
                        
    Adjusted Earnings Performance Summary (1)                   
    Adjusted earnings$20,815  $25,416  $19,616   $19,755   $18,434 
    Adjusted diluted earnings per common share$0.92  $1.12  $0.86   $0.86   $0.81 
    Adjusted return on average assets 1.16%  1.39%  1.15 %  1.17 %  1.11%
    Adjusted return on average shareholders' equity 12.84%  15.44%  11.94 %  12.36 %  11.97%
    Adjusted return on average tangible common equity 17.89%  21.65%  16.82 %  17.52 %  17.18%
    Adjusted pre-tax, pre-provision earnings$32,041  $36,324  $28,379   $26,967   $28,737 
    Adjusted pre-tax, pre-provision return on average assets 1.79%  1.98%  1.67 %  1.60 %  1.73%
                        
    (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
     March 31, December 31, September 30,  June 30, March 31,
    (in thousands, except per share data)2022 2021 2021 2021 2021
    Net interest income:              
    Interest income$62,748  $60,427  $58,490  $58,397  $60,503 
    Interest expense 5,921   6,126   7,094   8,287   8,635 
    Net interest income 56,827   54,301   51,396   50,110   51,868 
    Provision for credit losses:              
    Provision for credit losses on loans 4,132   -   -   -   3,950 
    Provision for credit losses on unfunded commitments 256   388   -   (265)  (535)
    Provision for other credit losses (221)  79   (184)  (190)  150 
    Total provision for credit losses 4,167   467   (184)  (455)  3,565 
    Net interest income after provision for credit losses 52,660   53,834   51,580   50,565   48,303 
    Noninterest income:              
    Wealth management revenue 7,139   7,176   7,175   6,529   5,931 
    Residential mortgage banking revenue 599   1,103   1,287   1,562   1,574 
    Service charges on deposit accounts 2,068   2,338   2,268   1,916   1,826 
    Interchange revenue 3,280   3,677   3,651   3,797   3,375 
    Gain on sales of investment securities, net -   -   160   377   - 
    Gain on termination of hedged interest swap -   1,845   -   -   314 
    Impairment on commercial mortgage servicing rights (394)  (2,072)  (3,037)  (1,148)  (1,275)
    Company-owned life insurance 1,019   1,904   869   863   860 
    Other income 1,902   6,552   2,770   3,521   2,211 
    Total noninterest income 15,613   22,523   15,143   17,417   14,816 
    Noninterest expense:              
    Salaries and employee benefits 21,870   22,109   22,175   22,071   20,528 
    Occupancy and equipment 3,755   3,429   3,701   3,796   3,940 
    Data processing 5,873   5,819   6,495   6,288   5,993 
    Professional 1,972   1,499   1,738   5,549   2,185 
    Amortization of intangible assets 1,398   1,425   1,445   1,470   1,515 
    Loss on mortgage servicing rights held for sale -   -   79   143   - 
    FHLB advances prepayment fees -   4,859   -   3,669   8 
    Other expense 6,016   6,617   5,659   5,955   4,910 
    Total noninterest expense 40,884   45,757   41,292   48,941   39,079 
    Income before income taxes 27,389   30,600   25,431   19,041   24,040 
    Income taxes 6,640   7,493   5,883   (1,083)  5,502 
    Net income$20,749  $23,107  $19,548  $20,124  $18,538 
                   
    Basic earnings per common share$0.92  $1.03  $0.86  $0.88  $0.81 
    Diluted earnings per common share$0.92  $1.02  $0.86  $0.88  $0.81 



                   
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                   
     As of
     March 31, December 31, September 30,  June 30, March 31,
    (in thousands)2022 2021 2021 2021 2021
    Assets              
    Cash and cash equivalents$332,264  $680,371  $662,643  $425,100  $631,219 
    Investment securities 858,246   916,132   900,319   756,831   690,390 
    Loans 5,539,961   5,224,801   4,915,554   4,835,866   4,910,806 
    Allowance for credit losses on loans (52,938)  (51,062)  (55,675)  (58,664)  (62,687)
    Total loans, net 5,487,023   5,173,739   4,859,879   4,777,202   4,848,119 
    Loans held for sale 8,931   32,045   26,621   12,187   55,174 
    Premises and equipment, net 69,746   70,792   71,241   71,803   73,255 
    Other real estate owned 11,537   12,059   11,931   12,768   20,304 
    Loan servicing rights, at lower of cost or fair value 27,484   28,865   30,916   34,577   36,876 
    Goodwill 161,904   161,904   161,904   161,904   161,904 
    Other intangible assets, net 22,976   24,374   26,065   27,900   26,867 
    Cash surrender value of life insurance policies 148,060   148,378   149,146   148,277   146,864 
    Other assets 210,544   195,146   193,294   201,461   193,814 
    Total assets$7,338,715  $7,443,805  $7,093,959  $6,630,010  $6,884,786 
                   
    Liabilities and Shareholders' Equity              
    Noninterest-bearing deposits$1,965,032  $2,245,701  $1,672,901  $1,366,453  $1,522,433 
    Interest-bearing deposits 4,092,507   3,864,947   3,928,475   3,829,898   3,818,080 
    Total deposits 6,057,539   6,110,648   5,601,376   5,196,351   5,340,513 
    Short-term borrowings 60,352   76,803   66,666   75,985   71,728 
    FHLB advances and other borrowings 310,171   310,171   440,171   440,171   529,171 
    Subordinated debt 139,184   139,091   138,998   138,906   169,888 
    Trust preferred debentures 49,524   49,374   49,235   49,094   48,954 
    Other liabilities 76,959   93,881   139,669   81,317   89,065 
    Total liabilities 6,693,729   6,779,968   6,436,115   5,981,824   6,249,319 
    Total shareholders’ equity 644,986   663,837   657,844   648,186   635,467 
    Total liabilities and shareholders’ equity$7,338,715  $7,443,805  $7,093,959  $6,630,010  $6,884,786 



                   
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                   
     As of
     March 31, December 31, September 30,  June 30, March 31,
    (in thousands)2022 2021 2021 2021 2021
    Loan Portfolio              
    Equipment finance loans$528,572 $521,973 $486,623 $464,380 $456,059
    Equipment finance leases 429,000  423,280  412,430  407,161  402,546
    Commercial FHA warehouse lines 83,999  91,927  180,248  129,607  205,115
    SBA PPP loans 22,862  52,477  82,410  146,728  211,564
    Other commercial loans 802,692  783,811  718,054  683,365  702,156
    Total commercial loans and leases 1,867,125  1,873,468  1,879,765  1,831,241  1,977,440
    Commercial real estate 2,114,041  1,816,828  1,562,013  1,540,489  1,494,031
    Construction and land development 188,668  193,749  200,792  212,508  191,870
    Residential real estate 329,331  338,151  344,414  366,612  398,501
    Consumer 1,040,796  1,002,605  928,570  885,016  848,964
    Total loans$5,539,961 $5,224,801 $4,915,554 $4,835,866 $4,910,806
                   
    Deposit Portfolio              
    Noninterest-bearing demand$1,965,032 $2,245,701 $1,672,901 $1,366,453 $1,522,433
    Interest-bearing:              
    Checking 1,779,018  1,663,021  1,697,326  1,619,436  1,601,449
    Money market 964,352  869,067  852,836  787,688  819,455
    Savings 710,955  679,115  665,710  669,277  653,256
    Time 619,386  630,583  688,693  721,502  718,788
    Brokered time 18,796  23,161  23,910  31,995  25,132
    Total deposits$6,057,539 $6,110,648 $5,601,376 $5,196,351 $5,340,513



                        
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                        
     For the Quarter Ended
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands)2022 2021 2021 2021 2021
    Average Balance Sheets                   
    Cash and cash equivalents$384,231  $685,655  $525,848  $509,886  $350,061 
    Investment securities 894,634   915,707   773,372   734,462   680,202 
    Loans 5,274,051   4,995,794   4,800,063   4,826,234   4,992,802 
    Loans held for sale 31,256   34,272   15,204   36,299   65,365 
    Nonmarketable equity securities 36,378   39,203   43,873   49,388   55,935 
    Total interest-earning assets 6,620,550   6,670,631   6,158,360   6,156,269   6,144,365 
    Non-earning assets 631,187   605,060   597,153   589,336   602,017 
    Total assets$7,251,737  $7,275,691  $6,755,513  $6,745,605  $6,746,382 
                        
    Interest-bearing deposits$3,953,249  $3,913,475  $3,895,970  $3,815,179  $3,757,108 
    Short-term borrowings 70,044   66,677   68,103   65,727   75,544 
    FHLB advances and other borrowings 311,282   319,954   440,171   519,490   617,504 
    Subordinated debt 139,139   139,046   138,954   165,155   169,844 
    Trust preferred debentures 49,451   49,307   49,167   49,026   48,887 
    Total interest-bearing liabilities 4,523,165   4,488,459   4,592,365   4,614,577   4,668,887 
    Noninterest-bearing deposits 1,989,413   2,049,802   1,434,193   1,411,428   1,370,604 
    Other noninterest-bearing liabilities 81,832   84,538   77,204   78,521   82,230 
    Shareholders' equity 657,327   652,892   651,751   641,079   624,661 
    Total liabilities and shareholders' equity$7,251,737  $7,275,691  $6,755,513  $6,745,605  $6,746,382 
                        
    Yields                   
    Earning Assets                   
    Cash and cash equivalents 0.18%  0.16%  0.16%  0.11%  0.11%
    Investment securities 2.22%  2.12%  2.34%  2.43%  2.51%
    Loans 4.40%  4.36%  4.42%  4.43%  4.50%
    Loans held for sale 2.86%  3.53%  2.79%  2.88%  2.74%
    Nonmarketable equity securities 5.40%  5.07%  5.05%  4.94%  4.93%
    Total interest-earning assets 3.87%  3.62%  3.79%  3.83%  4.02%
                        
    Interest-Bearing Liabilities                   
    Interest-bearing deposits 0.22%  0.22%  0.26%  0.31%  0.34%
    Short-term borrowings 0.14%  0.12%  0.12%  0.12%  0.13%
    FHLB advances and other borrowings 1.58%  1.75%  1.80%  1.91%  1.69%
    Subordinated debt 5.78%  5.78%  5.79%  5.61%  5.57%
    Trust preferred debentures 4.21%  3.90%  3.92%  4.00%  4.08%
    Total interest-bearing liabilities 0.53%  0.54%  0.61%  0.72%  0.75%
                        
    Cost of Deposits 0.15%  0.15%  0.19%  0.23%  0.25%
                        
    Net Interest Margin 3.50%  3.25%  3.34%  3.29%  3.45%



                        
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                        
     As of and for the Quarter Ended
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands, except per share data)2022 2021 2021 2021 2021
    Asset Quality                   
    Loans 30-89 days past due$29,044  $17,514  $16,772  $20,224  $24,819 
    Nonperforming loans 52,900   42,580   54,620   61,363   52,826 
    Nonperforming assets 66,164   57,068   69,261   76,926   75,004 
    Net charge-offs 2,255   4,613   2,989   4,023   1,706 
    Loans 30-89 days past due to total loans 0.52%  0.34%  0.34%  0.42%  0.51%
    Nonperforming loans to total loans 0.95%  0.81%  1.11%  1.27%  1.08%
    Nonperforming assets to total assets 0.90%  0.77%  0.98%  1.16%  1.09%
    Allowance for credit losses to total loans 0.96%  0.98%  1.13%  1.21%  1.28%
    Allowance for credit losses to nonperforming loans 100.07%  119.92%  101.93%  95.60%  118.67%
    Net charge-offs to average loans 0.17%  0.37%  0.25%  0.33%  0.14%
                        
    Wealth Management                   
    Trust assets under administration$4,044,138  $4,217,412  $4,058,168  $4,077,581  $3,560,427 
                        
    Market Data                   
    Book value per share at period end$29.26  $30.11  $29.64  $28.96  $28.43 
    Tangible book value per share at period end (1)$20.87  $21.66  $21.17  $20.48  $19.98 
    Market price at period end$28.86  $24.79  $24.73  $26.27  $27.74 
    Shares outstanding at period end 22,044,626   22,050,537   22,193,141   22,380,492   22,351,740 
                        
    Capital                   
    Total capital to risk-weighted assets 11.74%  12.19%  13.10%  13.11%  13.73%
    Tier 1 capital to risk-weighted assets 8.82%  9.16%  9.73%  9.64%  9.62%
    Tier 1 common capital to risk-weighted assets 7.80%  8.08%  8.55%  8.44%  8.39%
    Tier 1 leverage ratio 7.96%  7.75%  8.16%  8.00%  7.79%
    Tangible common equity to tangible assets (1) 6.43%  6.58%  6.80%  7.12%  6.67%
                        
    (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
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands, except per share data)2022 2021 2021 2021 2021
    Income before income taxes - GAAP$27,389  $30,600  $25,431   $19,041   $24,040 
    Adjustments to noninterest income:                   
    Gain on sales of investment securities, net -   -   160    377    - 
    Gain on termination of hedged interest rate swap -   1,845   -    -    314 
    Other income -   -   -    (27)   75 
    Total adjustments to noninterest income -   1,845   160    350    389 
    Adjustments to noninterest expense:                   
    Loss on mortgage servicing rights held for sale -   -   79    143    - 
    FHLB advances prepayment fees -   4,859   -    3,669    8 
    Integration and acquisition expenses 91   171   176    3,771    238 
    Total adjustments to noninterest expense 91   5,030   255    7,583    246 
    Adjusted earnings pre tax 27,480   33,785   25,526    26,274    23,897 
    Adjusted earnings tax 6,665   8,369   5,910    6,519    5,463 
    Adjusted earnings - non-GAAP$20,815  $25,416  $19,616   $19,755   $18,434 
    Adjusted diluted earnings per common share$0.92  $1.12  $0.86   $0.86   $0.81 
    Adjusted return on average assets 1.16%  1.39%  1.15 %  1.17 %  1.11%
    Adjusted return on average shareholders' equity 12.84%  15.44%  11.94 %  12.36 %  11.97%
    Adjusted return on average tangible common equity 17.89%  21.65%  16.82 %  17.52 %  17.18%
                        
                        
    Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
                        
     For the Quarter Ended
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands)2022 2021 2021 2021 2021
    Adjusted earnings pre tax - non-GAAP$27,480  $33,785  $25,526   $26,274   $23,897 
    Provision for credit losses 4,167   467   (184)   (455)   3,565 
    Impairment on commercial mortgage servicing rights 394   2,072   3,037    1,148    1,275 
    Adjusted pre-tax, pre-provision earnings - non-GAAP$32,041  $36,324  $28,379   $26,967   $28,737 
    Adjusted pre-tax, pre-provision return on average assets 1.79%  1.98%  1.67 %  1.60 %  1.73%



                        
    MIDLAND STATES BANCORP, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
                        
                        
    Efficiency Ratio Reconciliation
                        
     For the Quarter Ended
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands)2022 2021 2021 2021 2021
    Noninterest expense - GAAP$40,884   $45,757   $41,292   $48,941   $39,079  
    Loss on mortgage servicing rights held for sale -    -    (79)   (143)   -  
    FHLB advances prepayment fees -    (4,859)   -    (3,669)   (8) 
    Integration and acquisition expenses (91)   (171)   (176)   (3,771)   (238) 
    Adjusted noninterest expense$40,793   $40,727   $41,037   $41,358   $38,833  
                        
    Net interest income - GAAP$56,827   $54,301   $51,396   $50,110   $51,868  
    Effect of tax-exempt income 369    372    402    383    386  
    Adjusted net interest income 57,196    54,673    51,798    50,493    52,254  
                        
    Noninterest income - GAAP 15,613    22,523    15,143    17,417    14,816  
    Impairment on commercial mortgage servicing rights 394    2,072    3,037    1,148    1,275  
    Gain on sales of investment securities, net -    -    (160)   (377)   -  
    Gain on termination of hedged interest rate swap -    (1,845)   -    -    (314) 
    Other -    -    -    27    (75) 
    Adjusted noninterest income 16,007    22,750    18,020    18,215    15,702  
                        
    Adjusted total revenue$73,203   $77,423   $69,818   $68,708   $67,956  
                        
    Efficiency ratio 55.73 %  52.61 %  58.78 %  60.19 %  57.14 %



                        
    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
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands, except per share data)2022 2021 2021 2021 2021
    Shareholders' Equity to Tangible Common Equity                   
    Total shareholders' equity—GAAP$644,986   $663,837   $657,844   $648,186   $635,467  
    Adjustments:                   
    Goodwill (161,904)   (161,904)   (161,904)   (161,904)   (161,904) 
    Other intangible assets, net (22,976)   (24,374)   (26,065)   (27,900)   (26,867) 
    Tangible common equity$460,106   $477,558   $469,875   $458,382   $446,696  
                        
    Total Assets to Tangible Assets:                   
    Total assets—GAAP$7,338,715   $7,443,805   $7,093,959   $6,630,010   $6,884,786  
    Adjustments:                   
    Goodwill (161,904)   (161,904)   (161,904)   (161,904)   (161,904) 
    Other intangible assets, net (22,976)   (24,374)   (26,065)   (27,900)   (26,867) 
    Tangible assets$7,153,835   $7,257,527   $6,905,990   $6,440,206   $6,696,015  
                        
    Common Shares Outstanding 22,044,626    22,050,537    22,193,141    22,380,492    22,351,740  
                        
    Tangible Common Equity to Tangible Assets 6.43 %  6.58 %  6.80 %  7.12 %  6.67 %
    Tangible Book Value Per Share$20.87   $21.66   $21.17   $20.48   $19.98  
                        
    Return on Average Tangible Common Equity (ROATCE)
                        
     For the Quarter Ended
     March 31, December 31, September 30,  June 30, March 31,
    (dollars in thousands)2022 2021 2021 2021 2021
    Net income available to common shareholders$20,749   $23,107   $19,548   $20,124   $18,538  
                        
    Average total shareholders' equity—GAAP$657,327   $652,892   $651,751   $641,079   $624,661  
    Adjustments:                   
    Goodwill (161,904)   (161,904)   (161,904)   (161,904)   (161,904) 
    Other intangible assets, net (23,638)   (25,311)   (27,132)   (26,931)   (27,578) 
    Average tangible common equity$471,785   $465,677   $462,715   $452,244   $435,179  
    ROATCE 17.84 %  19.69 %  16.76 %  17.85 %  17.28 %

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