• Midland States Bancorp, Inc. Announces 2021 Third Quarter Results

    المصدر: Nasdaq GlobeNewswire / 28 أكتوبر 2021 15:15:01   America/Chicago

    Summary

    • Net income of $19.5 million, or $0.86 diluted earnings per share
    • Total loans increased 8.2% annualized, excluding commercial FHA lines and PPP loans
    • Non-performing loans declined 11.0% from end of prior quarter
    • Net interest margin increased 5 bps from prior quarter to 3.34%
    • Efficiency ratio improved to 58.78% from 60.19% in prior quarter
    • Book value and tangible book value per share increased 2.3% and 3.4%, respectively

    EFFINGHAM, Ill., Oct. 28, 2021 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income of $19.5 million, or $0.86 diluted earnings per share, for the third quarter of 2021, which included a $3.0 million impairment charge on commercial mortgage servicing rights (“MSRs”). This compares to net income of $20.1 million, or $0.88 diluted earnings per share, for the second quarter of 2021, which included a $6.8 million tax benefit related to the settlement of a prior tax issue, $3.6 million in professional fees related to the settlement, and a $3.7 million charge related to the prepayment of a longer-term FHLB advance. This also compares to net income of $86 thousand, or $0.00 diluted earnings per share, for the third quarter of 2020, which included $13.9 million of charges primarily related to the Company’s branch and facilities optimization plan.

    Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We delivered another strong quarter driven by positive trends across most areas of our operations. The contribution of new additions to our commercial banking team and increasing demand helped drive another quarter of solid loan growth. We are also seeing improved asset quality, net interest margin expansion as a result of the elimination of higher cost funding sources, and growth in wealth management revenue following our acquisition of ATG Trust Company earlier this year. The higher level of revenue we are generating is driving further improvement in operating leverage and an increase in pre-provision, pre-tax income.

    “We expect to see a continuation of these positive trends in the fourth quarter. We are benefitting from our efforts to increase our presence in higher growth markets in Northern Illinois and St. Louis, which is resulting in the consistent addition of full banking relationships with new commercial clients. Our loan and deposit pipelines remain healthy, which should lead to continued quality balance sheet growth that we expect to result in a higher level of net interest income, additional operating leverage, and further improvement in our level of profitability,” said Mr. Ludwig.

    Adjusted Earnings

    Financial results for the second quarter of 2021 were impacted by a $6.8 million tax benefit related to the settlement of a prior tax issue, $3.8 million of integration and acquisition expenses inclusive of the $3.6 million in professional fees related to the settlement, and a $3.7 million charge related to the prepayment of a longer-term FHLB advance. Excluding these amounts and certain other income and expense, adjusted earnings were $19.8 million, or $0.86 diluted earnings per share, for the second quarter of 2021.

    Financial results for the third quarter of 2020 were impacted by $13.9 million in charges primarily related to the branch and facilities optimization plan (integration and acquisition expenses), $1.7 million in gains on sales of investment securities, and a $0.2 million loss on residential MSRs held-for-sale. Excluding these amounts and certain other income and expenses, adjusted earnings were $12.0 million, or $0.52 diluted earnings per share, for the third quarter of 2020.

    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 third quarter of 2021 was 3.34%, compared to 3.29% for the second quarter of 2021. The Company’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 7 and 9 basis points to net interest margin in the third and second quarters of 2021, respectively. Excluding the impact of accretion income, net interest margin increased 7 basis points from the second quarter of 2021, due primarily to a reduction in the cost of funds.

    Relative to the third quarter of 2020, net interest margin increased from 3.33%. Accretion income on purchased loan portfolios contributed 14 basis points to net interest margin in the third quarter of 2020. Excluding the impact of accretion income, net interest margin increased 8 basis points from the third quarter of 2020, primarily due to a reduction in the cost of funds.  

    Net Interest Income

    Net interest income for the third quarter of 2021 was $51.4 million, an increase of 2.6% from $50.1 million for the second quarter of 2021. Excluding accretion income, net interest income increased $1.6 million from the prior quarter, which was primarily due to a lower cost of funds. Accretion income associated with purchased loan portfolios totaled $1.0 million for the third quarter of 2021, compared with $1.3 million for the second quarter of 2021. PPP loan income totaled $2.4 million, including net loan origination fees of $2.1 million, in the third quarter of 2021, compared to $2.4 million, including net loan origination fees of $1.9 million, in the second quarter of 2021.

    Relative to the third quarter of 2020, net interest income increased $1.4 million, or 2.8%. Accretion income for the third quarter of 2020 was $2.1 million. Excluding the impact of accretion income, net interest income increased primarily due to a higher average balance of interest-earning assets and a significant decline in the cost of funds.

    Noninterest Income

    Noninterest income for the third quarter of 2021 was $15.1 million, a decrease of 13.1% from $17.4 million for the second quarter of 2021. Impairment on commercial MSRs impacted noninterest income by $3.0 million and $1.1 million in the third quarter of 2021 and second quarter of 2021, respectively. Excluding the impairments, noninterest income decreased 2.1% primarily due to gains on the sale of other real estate owned that were recognized in the prior quarter.

    Relative to the third quarter of 2020, noninterest income decreased 20.0% from $18.9 million. The decrease was primarily attributable to a larger impairment on commercial MSRs, lower residential mortgage banking revenue, and lower gains on sales of investment securities, partially offset by higher wealth management revenue.

    Wealth management revenue for the third quarter of 2021 was $7.2 million, an increase of 9.9% from the second quarter of 2021, primarily due to the full quarter contribution of ATG Trust Company following its acquisition at the beginning of June. Compared to the third quarter of 2020, wealth management revenue increased 29.1%, primarily due to the increase in assets under administration over the past year and the acquisition of ATG Trust Company.

    Noninterest Expense

    Noninterest expense for the third quarter of 2021 was $41.3 million, compared with $48.9 million in the second quarter of 2021, which included $3.6 million in professional fees related to the settlement of the prior tax issue and $3.7 million in FHLB advance prepayment fees. Excluding the professional fees related to the settlement of the prior tax issue, FHLB advance prepayment fees, integration and acquisition expenses, and losses on residential MSRs held-for-sale, noninterest expense decreased by $0.3 million.

    Relative to the third quarter of 2020, noninterest expense decreased 23.4% from $53.9 million, which included $13.9 million in charges primarily related to the branch and facilities optimization plan (integration and acquisition expenses), and a $0.2 million loss on residential MSRs held-for-sale. Excluding the integration and acquisition expenses and losses on residential MSRs held-for-sale, noninterest expense increased $1.2 million, primarily due to higher salaries and employee benefits expense.

    Loan Portfolio

    Total loans outstanding were $4.92 billion at September 30, 2021, compared with $4.84 billion at June 30, 2021 and $4.94 billion at September 30, 2020. The increase in total loans from June 30, 2021 was primarily attributable to higher balances of commercial, commercial real estate, and consumer loans, partially offset by forgiveness of PPP loans and runoff in the residential real estate portfolio resulting from refinancings.

    Equipment finance balances increased $27.5 million from June 30, 2021 to $899.1 million at September 30, 2021, which are booked within the commercial loans and leases portfolio.  

    Compared to loan balances at September 30, 2020, growth in equipment finance balances, commercial real estate, and consumer loans was offset by declines in residential real estate loans and PPP loans held in the commercial portfolio.

    Deposits

    Total deposits were $5.60 billion at September 30, 2021, compared with $5.20 billion at June 30, 2021, and $5.03 billion at September 30, 2020. The increase in total deposits from the end of the prior quarter was primarily attributable to an increase in commercial FHA servicing deposits and inflows of other commercial deposits.

    Asset Quality

    Nonperforming loans totaled $54.6 million, or 1.11% of total loans, at September 30, 2021, compared with $61.4 million, or 1.27% of total loans, at June 30, 2021. The decrease in nonperforming loans was primarily attributable to the disposition of certain loans combined with minimal inflow during the third quarter of 2021. At September 30, 2020, nonperforming loans totaled $67.4 million, or 1.36% of total loans.

    Net charge-offs for the third quarter of 2021 were $3.0 million, or 0.25% of average loans on an annualized basis, compared to net charge-offs of $4.0 million, or 0.33% of average loans on an annualized basis, for the second quarter of 2021 and $5.3 million, or 0.44% of average loans on an annualized basis, for the third quarter of 2020.  

    The Company recorded a negative provision for credit losses of $0.2 million for the third quarter of 2021. No provision for credit losses on loans was recorded due to general improvement in asset quality and economic forecasts, while a negative provision of $0.2 million was recorded for credit losses on available-for-sale securities.  

    The Company’s allowance for credit losses on loans was 1.13% of total loans and 101.9% of nonperforming loans at September 30, 2021, compared with 1.21% of total loans and 95.6% of nonperforming loans at June 30, 2021. Approximately 96% of the allowance for credit losses on loans at September 30, 2021 was allocated to general reserves.

    Capital

    At September 30, 2021, 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
    Sep. 30, 2021    		Consolidated
    Ratios as of
    Sep. 30, 2021    		Minimum
    Regulatory
    Requirements (2)
    Total capital to risk-weighted assets12.03% 13.10% 10.50% 
    Tier 1 capital to risk-weighted assets11.17% 9.73% 8.50% 
    Tier 1 leverage ratio9.38% 8.16% 4.00% 
    Common equity Tier 1 capital11.17% 8.55% 7.00% 
    Tangible common equity to tangible assets (1)NA6.80% 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 third quarter of 2021, the Company repurchased 210,177 shares of its common stock at a weighted average price of $24.93 under its stock repurchase program. On September 7, 2021, the Company announced that its Board of Directors approved modifications to the previously announced stock repurchase program, which increased the aggregate repurchase authority to $75 million from $50 million and extended the expiration date of the program to December 31, 2022. As of September 30, 2021, the Company had $24.9 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, October 29, 2021, to discuss its financial results. The call can be accessed via telephone at (877) 516-3531; conference ID: 6697900. A recorded replay can be accessed through November 5, 2021, by dialing (855) 859-2056; conference ID: 6697900.

    A slide presentation relating to the third quarter 2021 financial results will be accessible prior to the scheduled conference call. This earnings release should be read together with the slide presentation, which contains important information related to the impact of COVID-19. 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 September 30, 2021, the Company had total assets of approximately $7.09 billion, and its Wealth Management Group had assets under administration of approximately $4.06 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 
      September 30, June 30, March 31, December 31, September 30, 
    (dollars in thousands, except per share data) 2021 2021 2021 2020 2020 
    Earnings Summary                     
    Net interest income $51,396   $50,110   $51,868  $53,516  $49,980  
    Provision for credit losses  (184)   (455)   3,565   10,058   11,728  
    Noninterest income  15,143    17,417    14,816   14,336   18,919  
    Noninterest expense  41,292    48,941    39,079   47,048   53,901  
    Income before income taxes  25,431    19,041    24,040   10,746   3,270  
    Income taxes  5,883    (1,083)   5,502   2,413   3,184  
    Net income $19,548   $20,124   $18,538  $8,333  $86  
                          
    Diluted earnings per common share $0.86   $0.88   $0.81  $0.36  $-  
    Weighted average shares outstanding - diluted  22,577,880    22,677,515    22,578,553   22,656,343   22,937,837  
    Return on average assets  1.15 %  1.20 %  1.11%  0.49%  0.01% 
    Return on average shareholders' equity  11.90 %  12.59 %  12.04%  5.32%  0.05% 
    Return on average tangible common equity (1)  16.76 %  17.85 %  17.28%  7.68%  0.08% 
    Net interest margin  3.34 %  3.29 %  3.45%  3.47%  3.33% 
    Efficiency ratio (1)  58.78 %  60.19 %  56.88%  58.55%  57.74% 
                          
    Adjusted Earnings Performance Summary (1)                     
    Adjusted earnings $19,616   $19,755   $18,662  $12,471  $12,023  
    Adjusted diluted earnings per common share $0.86   $0.86   $0.82  $0.54  $0.52  
    Adjusted return on average assets  1.15 %  1.17 %  1.12%  0.73%  0.72% 
    Adjusted return on average shareholders' equity  11.94 %  12.36 %  12.12%  7.97%  7.56% 
    Adjusted return on average tangible common equity  16.82 %  17.52 %  17.39%  11.50%  11.04% 
    Adjusted pre-tax, pre-provision earnings $28,379   $26,967   $29,051  $28,855  $28,751  
    Adjusted pre-tax, pre-provision return on average assets  1.67 %  1.60 %  1.75%  1.69%  1.72% 
                          
    (1) Non-GAAP financial measures. Refer to pages 13 - 15 for a reconciliation to the comparable GAAP financial measures.  
                          


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      For the Quarter Ended
      September 30, June 30, March 31, December 31, September 30,
    (in thousands, except per share data) 2021 2021 2021 2020 2020
    Net interest income:                    
    Interest income $58,490   $58,397   $60,503   $62,712   $60,314  
    Interest expense  7,094    8,287    8,635    9,196    10,334  
    Net interest income  51,396    50,110    51,868    53,516    49,980  
    Provision for credit losses:                    
    Provision for credit losses on loans  -    -    3,950    10,000    10,970  
    Provision for credit losses on unfunded commitments  -    (265)   (535)   -    577  
    Provision for other credit losses  (184)   (190)   150    58    181  
    Total provision for credit losses  (184)   (455)   3,565    10,058    11,728  
    Net interest income after provision for credit losses  51,580    50,565    48,303    43,458    38,252  
    Noninterest income:                    
    Wealth management revenue  7,175    6,529    5,931    5,868    5,559  
    Commercial FHA revenue  411    342    292    400    926  
    Residential mortgage banking revenue  1,287    1,562    1,574    2,285    3,049  
    Service charges on deposit accounts  2,268    1,916    1,826    2,149    2,092  
    Interchange revenue  3,651    3,797    3,375    3,137    3,283  
    Gain on sales of investment securities, net  160    377    -    -    1,721  
    Impairment on commercial mortgage servicing rights  (3,037)   (1,148)   (1,275)   (2,344)   (1,418) 
    Company-owned life insurance  869    863    860    893    897  
    Other income  2,359    3,179    2,233    1,948    2,810  
    Total noninterest income  15,143    17,417    14,816    14,336    18,919  
    Noninterest expense:                    
    Salaries and employee benefits  22,175    22,071    20,528    22,636    21,118  
    Occupancy and equipment  3,701    3,796    3,940    3,531    4,866  
    Data processing  6,495    6,288    5,993    5,987    5,721  
    Professional  1,738    5,549    2,185    1,912    1,861  
    Amortization of intangible assets  1,445    1,470    1,515    1,556    1,557  
    Loss on mortgage servicing rights held for sale  79    143    -    617    188  
    Impairment related to facilities optimization  -    -    -    (10)   12,651  
    FHLB advances prepayment fees  -    3,669    8    4,872    -  
    Other expense  5,659    5,955    4,910    5,947    5,939  
    Total noninterest expense  41,292    48,941    39,079    47,048    53,901  
    Income before income taxes  25,431    19,041    24,040    10,746    3,270  
    Income taxes  5,883    (1,083)   5,502    2,413    3,184  
    Net income $19,548   $20,124   $18,538   $8,333   $86  
                         
    Basic earnings per common share $0.86   $0.88   $0.81   $0.36   $0.00  
    Diluted earnings per common share $0.86   $0.88   $0.81   $0.36   $0.00  
                         


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      As of
      September 30, June 30, March 31, December 31, September 30,
    (in thousands) 2021 2021 2021 2020 2020
    Assets                    
    Cash and cash equivalents $662,643   $425,100   $631,219   $341,640   $461,196  
    Investment securities  900,319    756,831    690,390    686,135    618,974  
    Loans  4,915,554    4,835,866    4,910,806    5,103,331    4,941,466  
    Allowance for credit losses on loans  (55,675)   (58,664)   (62,687)   (60,443)   (52,771) 
    Total loans, net  4,859,879    4,777,202    4,848,119    5,042,888    4,888,695  
    Loans held for sale  26,621    12,187    55,174    138,090    62,500  
    Premises and equipment, net  71,241    71,803    73,255    74,124    74,967  
    Other real estate owned  11,931    12,768    20,304    20,247    15,961  
    Loan servicing rights, at lower of cost or fair value  30,916    34,577    36,876    39,276    42,465  
    Goodwill  161,904    161,904    161,904    161,904    161,904  
    Other intangible assets, net  26,065    27,900    26,867    28,382    29,938  
    Cash surrender value of life insurance policies  149,146    148,277    146,864    146,004    145,112  
    Other assets  193,294    201,461    193,814    189,850    198,333  
    Total assets $7,093,959   $6,630,010   $6,884,786   $6,868,540   $6,700,045  
                         
    Liabilities and Shareholders' Equity                    
    Noninterest-bearing deposits $1,672,901   $1,366,453   $1,522,433   $1,469,579   $1,355,188  
    Interest-bearing deposits  3,928,475    3,829,898    3,818,080    3,631,437    3,673,548  
    Total deposits  5,601,376    5,196,351    5,340,513    5,101,016    5,028,736  
    Short-term borrowings  66,666    75,985    71,728    68,957    58,625  
    FHLB advances and other borrowings  440,171    440,171    529,171    779,171    693,640  
    Subordinated debt  138,998    138,906    169,888    169,795    169,702  
    Trust preferred debentures  49,235    49,094    48,954    48,814    48,682  
    Other liabilities  139,669    81,317    89,065    79,396    78,780  
    Total liabilities  6,436,115    5,981,824    6,249,319    6,247,149    6,078,165  
    Total shareholders’ equity  657,844    648,186    635,467    621,391    621,880  
    Total liabilities and shareholders’ equity $7,093,959   $6,630,010   $6,884,786   $6,868,540   $6,700,045  
                         


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      As of
      September 30, June 30, March 31, December 31, September 30,
    (in thousands) 2021 2021 2021 2020 2020
    Loan Portfolio                    
    Commercial loans and leases $1,879,765  $1,831,241  $1,977,440  $2,095,639  $1,938,691 
    Commercial real estate  1,562,013   1,540,489   1,494,031   1,525,973   1,496,758 
    Construction and land development  200,792   212,508   191,870   172,737   177,894 
    Residential real estate  344,414   366,612   398,501   442,880   470,829 
    Consumer  928,570   885,016   848,964   866,102   857,294 
    Total loans $4,915,554  $4,835,866  $4,910,806  $5,103,331  $4,941,466 
                         
    Deposit Portfolio                    
    Noninterest-bearing demand $1,672,901  $1,366,453  $1,522,433  $1,469,579  $1,355,188 
    Interest-bearing:                    
    Checking  1,697,326   1,619,436   1,601,449   1,568,888   1,581,216 
    Money market  852,836   787,688   819,455   785,871   826,454 
    Savings  665,710   669,277   653,256   597,966   580,748 
    Time  688,693   721,502   718,788   655,620   661,872 
    Brokered time  23,910   31,995   25,132   23,092   23,258 
    Total deposits $5,601,376  $5,196,351  $5,340,513  $5,101,016  $5,028,736 
                         
                         


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      For the Quarter Ended
      September 30, June 30, March 31, December 31, September 30,
    (dollars in thousands) 2021 2021 2021 2020 2020
    Average Balance Sheets                    
    Cash and cash equivalents $525,848  $509,886  $350,061  $415,686  $491,728 
    Investment securities  773,372   734,462   680,202   672,937   628,705 
    Loans  4,800,063   4,826,234   4,992,802   4,998,912   4,803,940 
    Loans held for sale  15,204   36,299   65,365   45,196   44,880 
    Nonmarketable equity securities  43,873   49,388   55,935   51,906   50,765 
    Total interest-earning assets  6,158,360   6,156,269   6,144,365   6,184,637   6,020,018 
    Non-earning assets  597,153   589,336   602,017   602,716   625,522 
    Total assets $6,755,513  $6,745,605  $6,746,382  $6,787,353  $6,645,540 
                         
    Interest-bearing deposits $3,895,970  $3,815,179  $3,757,108  $3,680,645  $3,656,833 
    Short-term borrowings  68,103   65,727   75,544   62,432   64,010 
    FHLB advances and other borrowings  440,171   519,490   617,504   682,981   693,721 
    Subordinated debt  138,954   165,155   169,844   169,751   169,657 
    Trust preferred debentures  49,167   49,026   48,887   48,751   48,618 
    Total interest-bearing liabilities  4,592,365   4,614,577   4,668,887   4,644,560   4,632,839 
    Noninterest-bearing deposits  1,434,193   1,411,428   1,370,604   1,446,359   1,303,963 
    Other noninterest-bearing liabilities  77,204   78,521   82,230   73,840   75,859 
    Shareholders' equity  651,751   641,079   624,661   622,594   632,879 
    Total liabilities and shareholders' equity $6,755,513  $6,745,605  $6,746,382  $6,787,353  $6,645,540 
                         
    Yields                    
    Earning Assets                    
    Cash and cash equivalents  0.16%  0.11%  0.11%  0.12%  0.10%
    Investment securities  2.34%  2.43%  2.51%  2.65%  2.86%
    Loans  4.42%  4.43%  4.50%  4.58%  4.57%
    Loans held for sale  2.79%  2.88%  2.74%  3.14%  2.92%
    Nonmarketable equity securities  5.05%  4.94%  4.93%  5.22%  5.26%
    Total interest-earning assets  3.79%  3.83%  4.02%  4.06%  4.01%
                         
    Interest-Bearing Liabilities                    
    Interest-bearing deposits  0.26%  0.31%  0.34%  0.36%  0.46%
    Short-term borrowings  0.12%  0.12%  0.13%  0.14%  0.17%
    FHLB advances and other borrowings  1.80%  1.91%  1.69%  1.71%  1.85%
    Subordinated debt  5.79%  5.61%  5.57%  5.60%  5.58%
    Trust preferred debentures  3.92%  4.00%  4.08%  4.03%  4.16%
    Total interest-bearing liabilities  0.61%  0.72%  0.75%  0.79%  0.89%
                         
    Cost of Deposits  0.19%  0.23%  0.25%  0.26%  0.34%
                         
    Net Interest Margin  3.34%  3.29%  3.45%  3.47%  3.33%
                         


    MIDLAND STATES BANCORP, INC. 
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) 
                          
      As of and for the Quarter Ended 
      September 30, June 30, March 31, December 31, September 30, 
    (dollars in thousands, except per share data) 2021 2021 2021 2020 2020 
    Asset Quality                     
    Loans 30-89 days past due $16,772  $20,224  $24,819  $31,460  $28,188  
    Nonperforming loans  54,620   61,363   52,826   54,070   67,443  
    Nonperforming assets  69,261   76,926   75,004   75,432   84,795  
    Net charge-offs  2,989   4,023   1,706   2,328   5,292  
    Loans 30-89 days past due to total loans  0.34%  0.42%  0.51%  0.62%  0.57% 
    Nonperforming loans to total loans  1.11%  1.27%  1.08%  1.06%  1.36% 
    Nonperforming assets to total assets  0.98%  1.16%  1.09%  1.10%  1.27% 
    Allowance for credit losses to total loans  1.13%  1.21%  1.28%  1.18%  1.07% 
    Allowance for credit losses to nonperforming loans  101.93%  95.60%  118.67%  111.79%  78.25% 
    Net charge-offs to average loans  0.25%  0.33%  0.14%  0.19%  0.44% 
                          
    Wealth Management                     
    Trust assets under administration $4,058,168  $4,077,581  $3,560,427  $3,480,759  $3,260,893  
                          
    Market Data                     
    Book value per share at period end $29.64  $28.96  $28.43  $27.83  $27.51  
    Tangible book value per share at period end (1) $21.17  $20.48  $19.98  $19.31  $19.03  
    Market price at period end $24.73  $26.27  $27.74  $17.87  $12.85  
    Shares outstanding at period end  22,193,141   22,380,492   22,351,740   22,325,471   22,602,844  
                          
    Capital                     
    Total capital to risk-weighted assets  13.10%  13.11%  13.73%  13.24%  13.34% 
    Tier 1 capital to risk-weighted assets  9.73%  9.64%  9.62%  9.20%  9.40% 
    Tier 1 common capital to risk-weighted assets  8.55%  8.44%  8.39%  7.99%  8.18% 
    Tier 1 leverage ratio  8.16%  8.00%  7.79%  7.50%  7.72% 
    Tangible common equity to tangible assets (1)  6.80%  7.12%  6.67%  6.46%  6.61% 
                          
    (1) Non-GAAP financial measures. Refer to pages 13 - 15 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
      September 30, June 30, March 31, December 31, September 30,
    (dollars in thousands, except per share data) 2021 2021 2021 2020 2020
    Income before income taxes - GAAP $25,431   $19,041   $24,040  $10,746   $3,270  
    Adjustments to noninterest income:                    
    Gain on sales of investment securities, net  160    377    -   -    1,721  
    Other income  -    (27)   75   3    (17) 
    Total adjustments to noninterest income  160    350    75   3    1,704  
    Adjustments to noninterest expense:                    
    Loss on mortgage servicing rights held for sale  79    143    -   617    188  
    Impairment related to facilities optimization  -    -    -   (10)   12,651  
    FHLB advances prepayment fees  -    3,669    8   4,872    -  
    Integration and acquisition expenses  176    3,771    238   231    1,200  
    Total adjustments to noninterest expense  255    7,583    246   5,710    14,039  
    Adjusted earnings pre tax  25,526    26,274    24,211   16,453    15,605  
    Adjusted earnings tax  5,910    6,519    5,549   3,982    3,582  
    Adjusted earnings - non-GAAP $19,616   $19,755   $18,662  $12,471   $12,023  
    Adjusted diluted earnings per common share $0.86   $0.86   $0.82  $0.54   $0.52  
    Adjusted return on average assets  1.15 %  1.17 %  1.12%  0.73 %  0.72 %
    Adjusted return on average shareholders' equity  11.94 %  12.36 %  12.12%  7.97 %  7.56 %
    Adjusted return on average tangible common equity  16.82 %  17.52 %  17.39%  11.50 %  11.04 %
                         
                         
    Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
                         
      For the Quarter Ended
      September 30, June 30, March 31, December 31, September 30,
    (dollars in thousands) 2021 2021 2021 2020 2020
    Adjusted earnings pre tax - non- GAAP $25,526   $26,274   $24,211  $16,453   $15,605  
    Provision for credit losses  (184)   (455)   3,565   10,058    11,728  
    Impairment on commercial mortgage servicing rights  3,037    1,148    1,275   2,344    1,418  
    Adjusted pre-tax, pre-provision earnings - non-GAAP $28,379   $26,967   $29,051  $28,855   $28,751  
    Adjusted pre-tax, pre-provision return on average assets  1.67 %  1.60 %  1.75%  1.69 %  1.72 %
                         


    MIDLAND STATES BANCORP, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
                         
                         
    Efficiency Ratio Reconciliation
                         
      For the Quarter Ended
      September 30, June 30, March 31, December 31, September 30,
    (dollars in thousands) 2021 2021 2021 2020 2020
    Noninterest expense - GAAP $41,292   $48,941   $39,079   $47,048   $53,901  
    Loss on mortgage servicing rights held for sale  (79)   (143)   -    (617)   (188) 
    Impairment related to facilities optimization  -    -    -    10    (12,651) 
    FHLB advances prepayment fees  -    (3,669)   (8)   (4,872)   -  
    Integration and acquisition expenses  (176)   (3,771)   (238)   (231)   (1,200) 
    Adjusted noninterest expense $41,037   $41,358   $38,833   $41,338   $39,862  
                         
    Net interest income - GAAP $51,396   $50,110   $51,868   $53,516   $49,980  
    Effect of tax-exempt income  402    383    386    413    430  
    Adjusted net interest income  51,798    50,493    52,254    53,929    50,410  
                         
    Noninterest income - GAAP  15,143    17,417    14,816    14,336    18,919  
    Impairment on commercial mortgage servicing rights  3,037    1,148    1,275    2,344    1,418  
    Gain on sales of investment securities, net  (160)   (377)   -    -    (1,721) 
    Other  -    27    (75)   (3)   17  
    Adjusted noninterest income  18,020    18,215    16,016    16,677    18,633  
                         
    Adjusted total revenue $69,818   $68,709   $68,270   $70,607   $69,043  
                         
    Efficiency ratio  58.78 %  60.19 %  56.88 %  58.55 %  57.74 %
                         


    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) 2021 2021 2021 2020 2020 
    Shareholders' Equity to Tangible Common Equity                     
    Total shareholders' equity—GAAP $657,844   $648,186   $635,467   $621,391   $621,880   
    Adjustments:                     
    Goodwill  (161,904)   (161,904)   (161,904)   (161,904)   (161,904)  
    Other intangible assets, net  (26,065)   (27,900)   (26,867)   (28,382)   (29,938)  
    Tangible common equity $469,875   $458,382   $446,696   $431,105   $430,038   
                          
    Total Assets to Tangible Assets:                     
    Total assets—GAAP $7,093,959   $6,630,010   $6,884,786   $6,868,540   $6,700,045   
    Adjustments:                     
    Goodwill  (161,904)   (161,904)   (161,904)   (161,904)   (161,904)  
    Other intangible assets, net  (26,065)   (27,900)   (26,867)   (28,382)   (29,938)  
    Tangible assets $6,905,990   $6,440,206   $6,696,015   $6,678,254   $6,508,203   
                          
    Common Shares Outstanding  22,193,141    22,380,492    22,351,740    22,325,471    22,602,844   
                          
    Tangible Common Equity to Tangible Assets  6.80 %  7.12 %  6.67 %  6.46 %  6.61 % 
    Tangible Book Value Per Share $21.17   $20.48   $19.98   $19.31   $19.03   
                          
    Return on Average Tangible Common Equity (ROATCE) 
                          
      For the Quarter Ended 
      September 30, June 30, March 31, December 31, September 30, 
    (dollars in thousands) 2021 2021 2021 2020 2020 
    Net income available to common shareholders $19,548   $20,124   $18,538   $8,333   $86   
                          
    Average total shareholders' equity—GAAP $651,751   $641,079   $624,661   $622,594   $632,879   
    Adjustments:                     
    Goodwill  (161,904)   (161,904)   (161,904)   (161,904)   (168,771)  
    Other intangible assets, net  (27,132)   (26,931)   (27,578)   (29,123)   (30,690)  
    Average tangible common equity $462,715   $452,244   $435,179   $431,567   $433,418   
    ROATCE  16.76 %  17.85 %  17.28 %  7.68 %  0.08 % 
                          



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