Midland States Bancorp, Inc. Announces 2025 Third Quarter Results
EFFINGHAM, Ill., Oct. 30, 2025 (GLOBE NEWSWIRE) — Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $5.3 million, or
$0.24 per diluted share, for the third quarter of 2025, compared to net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025.
This also compares to net income of $18.2 million, or $0.83 per diluted share, for the third quarter of 2024.
2025 Third Quarter Results
- Net income available to common shareholders of $5.3 million, or $0.24 per diluted share
- Pre-provision net revenue of $31.3 million, or $1.43 per diluted share, compared to $32.2 million, or $1.48 per diluted share, for the second quarter of 2025
- Net interest margin of 3.79%, compared to 3.56% in prior quarter; excluding interest recoveries, net interest margin was 3.69%
- Nonperforming assets to total assets of 1.02%, compared to 1.15% in prior quarter
- Total capital to risk-weighted assets of 14.29% and common equity tier 1 capital of 9.37%
- Ceased equipment finance production effective September 30, 2025
Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:
“Although we are disappointed in our financial results this quarter, we have made meaningful progress on several strategic initiatives. The financial results included $15 million of provision in our equipment finance portfolio reflecting an increase in our loss given default assumptions. Given our current outlook and the allowance held against this portfolio, we believe we are appropriately reserved for future credit losses.
“Reducing problem loans has been a priority this year and importantly, our nonperforming assets decreased to $70 million, or 1.02% of total assets. This represents a pronounced decline from 2.10% at December 31, 2024. Along with our previously discussed strategic decision to tighten underwriting standards in our specialty finance portfolio, we have made the decision to cease originations in equipment finance to further reduce our exposure to higher-risk asset classes.
“Our capital position also improved, with the common equity tier 1 capital ratio rising to 9.4% and remaining on track to reach our 10.0% target. On September 30, we completed the previously announced redemption of $50.75 million in subordinated notes, using existing liquidity.
“Revenue trends were positive, bolstered by the expansion of the net interest margin and continued strong contribution from our wealth management platform, which posted a record quarter with $8 million of revenue. We also saw solid deposit growth in our Community Bank.”
Key Points for Third Quarter and Outlook
Continuation of Credit Clean-up; Tightened Underwriting Standards
- As a continuation of steps taken to address our credit quality issues, including the sales of non- core loan portfolios and tightened underwriting standards in our specialty finance portfolio, we ceased originations in the equipment finance portfolio effective September 30, 2025.
- Nonperforming loans and loans 30-89 days past due decreased to $68.7 million and $26.0 million, respectively, at September 30, 2025. Substandard accruing loans rose principally due to two relationships.
- Net charge-offs were $12.3 million for the quarter, including:
- $5.0 million of net charge-offs in our equipment finance portfolio as we continue to see credit issues, primarily in the trucking industry
- $1.7 million of fully reimbursed net charge-offs related to our third party lending program
- $3.5 million of net charge-offs in our specialty finance portfolio
- Provision for credit losses on loans was $20.5 million for the third quarter of 2025. The provision was principally due to an increase in our loss given default assumptions on the equipment finance portfolio due to continued loss trends in the portfolio.
- Allowance for credit losses on loans was $100.9 million, or 2.07% of total loans.
The table below summarizes certain information regarding the Company’s loan portfolio asset quality as of September 30, 2025.
| As of and for the Three Months Ended | |||||||||||||||
| (dollars in thousands) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||
| Asset Quality | |||||||||||||||
| Loans 30-89 days past due | $ | 26,019 | $ | 40,959 | $ | 48,221 | $ | 43,681 | $ | 55,329 | |||||
| Nonperforming loans | 68,703 | 80,112 | 145,690 | 150,907 | 114,556 | ||||||||||
| Nonperforming assets | 70,369 | 81,775 | 151,264 | 157,409 | 126,771 | ||||||||||
| Substandard accruing loans | 78,901 | 58,478 | 77,620 | 84,058 | 167,549 | ||||||||||
| Net charge-offs | 12,309 | 29,854 | 16,878 | 112,776 | 22,302 | ||||||||||
| Loans 30-89 days past due to total loans | 0.53 | % | 0.81 | % | 0.96 | % | 0.85 | % | 0.97 | % | |||||
| Nonperforming loans to total loans | 1.41 | % | 1.59 | % | 2.90 | % | 2.92 | % | 2.00 | % | |||||
| Nonperforming assets to total assets | 1.02 | % | 1.15 | % | 2.08 | % | 2.10 | % | 1.65 | % | |||||
| Allowance for credit losses to total loans | 2.07 | % | 1.84 | % | 2.10 | % | 2.15 | % | 2.64 | % | |||||
| Allowance for credit losses to nonperforming loans | 146.84 | % | 115.70 | % | 72.19 | % | 73.69 | % | 131.87 | % | |||||
| Net charge-offs to average loans | 0.99 | % | 2.34 | % | 1.35 | % | 7.94 | % | 1.53 | % | |||||
Solid Growth Trends in Community Bank & Wealth Management
- Total loans at September 30, 2025 were $4.87 billion, a decrease of $167.7 million from June 30, 2025. Key changes in the loan portfolio were as follows:
- Loans originated by our Community Bank decreased $39.2 million, or 1.2%, from June 30, 2025, due to several large payoffs and the reduction in nonperforming loans. Additionally, we exited relationships with several borrowers exhibiting weaker operating performance. We originated $129 million of new loans, versus $182 million in the second quarter, and new production stemmed from commercial clients that provide full banking relationships. Pipelines remain strong and we continued to add to our sales teams in the third quarter.
- We continue to intentionally reduce our specialty finance loan portfolio, reflecting our tightened credit standards. Balances in this portfolio decreased $28.4 million during the quarter.
- Similarly, equipment finance balances declined $73.8 million during the quarter.
- Non-core loans decreased $26.3 million to $313.0 million from June 30, 2025.
- Total deposits were $5.60 billion at September 30, 2025, a decrease of $342.1 million from June 30, 2025. The decrease in deposits reflects the following:
- Servicing deposits and brokered deposits decreased $286.8 million and $81.5 million, respectively, from June 30, 2025. We expect this reduction of higher-cost deposits to positively impact our future net interest margin.
- Community Bank deposits rose $69.9 million driven by increases in commercial deposits while retail and public funds deposits were down.
- Wealth Management revenue totaled $8.0 million in the third quarter of 2025. Assets under administration were $4.36 billion at September 30, 2025, an increase from $4.18 billion at June 30, 2025. The Company added new sales positions in the third quarter of 2025 and continues to experience strong pipelines.
Net Interest Margin
- Net interest margin was 3.79%, up 23 basis points compared to the second quarter of 2025, which included the impact of a $1.6 million interest recovery due to the payoff of a nonaccrual loan. Excluding this benefit, the net interest margin was 3.69%. Most of the expansion stemmed from a continued decline in the cost of funding, as rate cuts enacted by the Federal Reserve Bank in late 2024 continue to result in a lower cost of deposits for the Company, which fell to 2.12% in the third quarter of 2025. The partial quarter effect of the 25 basis point rate cut in September 2025 had a limited effect on the third quarter’s results, but should result in additional improvement in funding costs.
The following table presents the Company’s net interest margin for the third quarter of 2025 compared to the second quarter of 2025 and the third quarter of 2024.
| For the Three Months Ended | ||||||||||||||||||
| (dollars in thousands) | September 30, 2025 | June 30, 2025 | September 30, 2024 | |||||||||||||||
| Interest-earning assets | Average Balance | Interest & Fees | Yield/ Rate | Average Balance | Interest & Fees | Yield/ Rate | Average Balance | Interest & Fees | Yield/ Rate | |||||||||
| Cash and cash equivalents | $ | 78,567 | $ | 849 | 4.29 | % | $ | 67,326 | $ | 716 | 4.27 | % | $ | 75,255 | $ | 1,031 | 5.45 | % |
| Investment securities(1) | 1,338,997 | 15,979 | 4.73 | 1,367,180 | 17,164 | 5.04 | 1,162,751 | 13,752 | 4.71 | |||||||||
| Loans(1)(2) | 4,947,675 | 81,012 | 6.50 | 5,123,558 | 79,240 | 6.20 | 5,783,408 | 93,504 | 6.43 | |||||||||
| Loans held for sale | 9,268 | 147 | 6.29 | 44,642 | 377 | 3.39 | 7,505 | 124 | 6.57 | |||||||||
| Nonmarketable equity securities | 38,559 | 715 | 7.36 | 38,803 | 694 | 7.17 | 41,137 | 788 | 7.62 | |||||||||
| Total interest-earning assets | 6,413,066 | 98,702 | 6.11 | 6,641,509 | 98,191 | 5.93 | 7,070,056 | 109,199 | 6.14 | |||||||||
| Noninterest-earning assets | 498,875 | 513,801 | 653,279 | |||||||||||||||
| Total assets | $ | 6,911,941 | $ | 7,155,310 | $ | 7,723,335 | ||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||
| Interest-bearing deposits | $ | 4,644,455 | $ | 30,219 | 2.58 | % | $ | 4,845,609 | $ | 32,290 | 2.67 | % | $ | 5,132,640 | $ | 41,970 | 3.25 | % |
| Short-term borrowings | 54,839 | 499 | 3.61 | 60,117 | 573 | 3.82 | 53,577 | 602 | 4.47 | |||||||||
| FHLB advances & other borrowings | 386,772 | 4,044 | 4.15 | 363,505 | 3,766 | 4.16 | 428,739 | 4,743 | 4.40 | |||||||||
| Subordinated debt | 77,210 | 1,393 | 7.16 | 77,757 | 1,394 | 7.19 | 89,120 | 1,228 | 5.48 | |||||||||
| Trust preferred debentures | 51,602 | 1,221 | 9.39 | 51,439 | 1,206 | 9.40 | 50,990 | 1,341 | 10.46 | |||||||||
| Total interest-bearing liabilities | 5,214,878 | 37,376 | 2.84 | 5,398,427 | 39,229 | 2.91 | 5,755,066 | 49,884 | 3.45 | |||||||||
| Noninterest-bearing deposits | 1,020,196 | 1,075,945 | 1,075,712 | |||||||||||||||
| Other noninterest- bearing liabilities | 100,436 | 108,819 | 97,235 | |||||||||||||||
| Shareholders’ equity | 576,431 | 572,119 | 795,322 | |||||||||||||||
| Total liabilities and shareholder’s equity | $ | 6,911,941 | $ | 7,155,310 | $ | 7,723,335 | ||||||||||||
| Net Interest Margin | $ | 61,326 | 3.79 | % | $ | 58,962 | 3.56 | % | $ | 59,315 | 3.34 | % | ||||||
| Cost of Deposits | 2.12 | % | 2.19 | % | 2.69 | % | ||||||||||||
(1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.2 million, $0.3 million and $0.2 million for the three months ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
Trends in Noninterest Income and Expense
- Noninterest income was $20.0 million for the third quarter of 2025, compared to $23.5 million for the second quarter of 2025. Noninterest income for the third quarter of 2025 included a loss on credit enhancement income of $0.2 million compared to income of $3.8 million in the prior quarter. The higher second quarter credit enhancement income was attributable to reimbursements from our program sponsor in connection with charge-offs in our third-party loan origination and servicing program.
- Noninterest expense was $49.8 million for the third quarter of 2025, which included $1.0 million of severance expense due to the decision to cease equipment finance originations, compared to $50.0 million of noninterest expense for the second quarter of 2025.
- Income tax expense was $3.7 million for the third quarter of 2025, compared to $2.8 million for the second quarter of 2025 and $4.5 million for the third quarter of 2024. The resulting effective tax rates were 33.2%, 19.1% and 18.2%, respectively. Tax expense for the third quarter of 2025 included $1.3 million of additional provision related to the completion of our prior year returns.
Third Quarter 2025 Financial Highlights and Key Performance Indicators:
| As of and for the Three Months Ended | |||||||||||||||
| September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||||
| Return on average assets | 0.43 | % | 0.67 | % | (7.66 | )% | (1.59 | )% | 1.05 | % | |||||
| Pre-provision net revenue to average assets(1) | 1.80 | % | 1.81 | % | 1.47 | % | 1.83 | % | 2.21 | % | |||||
| Net interest margin | 3.79 | % | 3.56 | % | 3.49 | % | 3.34 | % | 3.34 | % | |||||
| Efficiency ratio(1) | 61.25 | % | 60.60 | % | 64.29 | % | 62.31 | % | 53.61 | % | |||||
| Noninterest expense to average assets | 2.86 | % | 2.80 | % | 11.02 | % | 3.04 | % | 2.56 | % | |||||
| Net charge-offs to average loans | 0.99 | % | 2.34 | % | 1.35 | % | 7.94 | % | 1.53 | % | |||||
| Tangible book value per share at period end(1) | $ | 21.16 | $ | 20.68 | $ | 20.54 | $ | 19.83 | $ | 22.70 | |||||
| Diluted earnings (loss) per common share | $ | 0.24 | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | |||
| Common shares outstanding at period end | 21,543,557 | 21,515,138 | 21,503,036 | 21,494,485 | 21,393,905 | ||||||||||
| Trust assets under administration | $ | 4,363,756 | $ | 4,181,180 | $ | 4,101,414 | $ | 4,153,080 | $ | 4,268,539 | |||||
(1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures.
Capital
On September 30, 2025, we redeemed our $50.75 million in subordinated notes. The Company and Midland States Bank exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a ‘‘well-capitalized’’ financial institution, as summarized in the following table:
| As of September 30, 2025 | ||||||
| Midland States Bank | Midland States Bancorp, Inc. | Minimum Regulatory Requirements(2) | ||||
| Total capital to risk-weighted assets | 13.34% | 14.29% | 10.50% | |||
| Tier 1 capital to risk-weighted assets | 12.08% | 12.54% | 8.50% | |||
| Common equity Tier 1 capital to risk-weighted assets | 12.08% | 9.37% | 7.00% | |||
| Tier 1 leverage ratio | 9.57% | 9.93% | 4.00% | |||
| Tangible common equity to tangible assets(1) | N/A | 6.61% | N/A | |||
(1) A non-GAAP financial measure. Refer to page 10 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.
About Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of September 30, 2025, the Company had total assets of approximately $6.91 billion, and its Wealth Management Group had assets under administration of approximately $4.36 billion. The Company provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.
These non-GAAP financial measures include “Pre-provision net revenue,” “Pre-provision net revenue per diluted share,” “Pre-provision net revenue to average assets,” “Adjusted earnings (loss),” “Adjusted earnings (loss) available to common shareholders,” “Adjusted diluted earnings (loss) per common share,” “Efficiency ratio,” “Tangible common equity to tangible assets,” and “Tangible book value per share.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.
Forward-Looking Statements
Readers should note that in addition to the historical information contained herein, this press release includes “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” ‘outlook,” “trends,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
CONTACTS:
Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321 Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321
| MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited) | ||||||||||||||||
| As of | ||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2025 | 2024 | 2024 | |||||||||||
| Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 166,147 | $ | 176,587 | $ | 102,006 | $ | 114,766 | $ | 121,873 | ||||||
| Investment securities | 1,383,121 | 1,354,652 | 1,368,405 | 1,212,366 | 1,216,795 | |||||||||||
| Loans | 4,867,587 | 5,035,295 | 5,018,053 | 5,167,574 | 5,728,237 | |||||||||||
| Allowance for credit losses on loans | (100,886 | ) | (92,690 | ) | (105,176 | ) | (111,204 | ) | (151,067 | ) | ||||||
| Total loans, net | 4,766,701 | 4,942,605 | 4,912,877 | 5,056,370 | 5,577,170 | |||||||||||
| Loans held for sale | 7,535 | 37,299 | 287,821 | 344,947 | 8,001 | |||||||||||
| Premises and equipment, net | 86,005 | 86,240 | 86,719 | 85,710 | 84,672 | |||||||||||
| Other real estate owned | 393 | 393 | 4,183 | 4,941 | 8,646 | |||||||||||
| Loan servicing rights, at lower of cost or fair value | 16,165 | 16,720 | 17,278 | 17,842 | 18,400 | |||||||||||
| Goodwill | 7,927 | 7,927 | 7,927 | 161,904 | 161,904 | |||||||||||
| Other intangible assets, net | 9,619 | 10,362 | 11,189 | 12,100 | 13,052 | |||||||||||
| Company-owned life insurance | 216,494 | 214,392 | 212,336 | 211,168 | 209,193 | |||||||||||
| Credit enhancement asset | 5,765 | 5,800 | 5,615 | 16,804 | 20,633 | |||||||||||
| Other assets | 245,643 | 254,901 | 268,448 | 267,891 | 263,850 | |||||||||||
| Total assets | $ | 6,911,515 | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||||||||
| Noninterest-bearing demand deposits | $ | 1,015,930 | $ | 1,074,212 | $ | 1,090,707 | $ | 1,055,564 | $ | 1,050,617 | ||||||
| Interest-bearing deposits | 4,588,895 | 4,872,707 | 4,845,727 | 5,141,679 | 5,206,219 | |||||||||||
| Total deposits | 5,604,825 | 5,946,919 | 5,936,434 | 6,197,243 | 6,256,836 | |||||||||||
| Short-term borrowings | 146,766 | 8,654 | 40,224 | 87,499 | 13,849 | |||||||||||
| FHLB advances and other borrowings | 373,000 | 345,000 | 498,000 | 258,000 | 425,000 | |||||||||||
| Subordinated debt | 27,014 | 77,759 | 77,754 | 77,749 | 82,744 | |||||||||||
| Trust preferred debentures | 51,684 | 51,518 | 51,358 | 51,205 | 51,058 | |||||||||||
| Other liabilities | 124,225 | 104,323 | 109,597 | 124,266 | 103,481 | |||||||||||
| Total liabilities | 6,327,514 | 6,534,173 | 6,713,367 | 6,795,962 | 6,932,968 | |||||||||||
| Total shareholders’ equity | 584,001 | 573,705 | 571,437 | 710,847 | 771,221 | |||||||||||
| Total liabilities and shareholders’ equity | $ | 6,911,515 | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | ||||||
| MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | |||||||||||||||||
| For the Three Months Ended | |||||||||||||||||
| (dollars in thousands, except per share data) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||||
| Net interest income: | |||||||||||||||||
| Interest income | $ | 98,493 | $ | 97,924 | $ | 99,355 | $ | 104,470 | $ | 108,994 | |||||||
| Interest expense | 37,376 | 39,229 | 41,065 | 45,900 | 49,884 | ||||||||||||
| Net interest income | 61,117 | 58,695 | 58,290 | 58,570 | 59,110 | ||||||||||||
| Provision for credit losses on loans | 20,505 | 17,369 | 10,850 | 74,183 | 17,925 | ||||||||||||
| Recapture of credit losses on unfunded commitments | (500 | ) | — | — | — | — | |||||||||||
| Total provision for credit losses | 20,005 | 17,369 | 10,850 | 74,183 | 17,925 | ||||||||||||
| Net interest income after provision for credit losses | 41,112 | 41,326 | 47,440 | (15,613 | ) | 41,185 | |||||||||||
| Noninterest income: | |||||||||||||||||
| Wealth management revenue | 8,018 | 7,379 | 7,350 | 7,660 | 7,104 | ||||||||||||
| Service charges on deposit accounts | 3,598 | 3,351 | 3,305 | 3,506 | 3,411 | ||||||||||||
| Interchange revenue | 3,445 | 3,463 | 3,151 | 3,528 | 3,506 | ||||||||||||
| Residential mortgage banking revenue | 735 | 756 | 676 | 637 | 697 | ||||||||||||
| Income on company-owned life insurance | 2,102 | 2,068 | 2,334 | 1,975 | 1,982 | ||||||||||||
| Gain (loss) on sales of investment securities, net | 14 | — | — | (34 | ) | (44 | ) | ||||||||||
| Credit enhancement income (loss) | (242 | ) | 3,848 | (578 | ) | 15,810 | 14,206 | ||||||||||
| Other income | 2,346 | 2,669 | 1,525 | 2,289 | 2,683 | ||||||||||||
| Total noninterest income | 20,016 | 23,534 | 17,763 | 35,371 | 33,545 | ||||||||||||
| Noninterest expense: | |||||||||||||||||
| Salaries and employee benefits | 26,393 | 25,685 | 26,416 | 22,283 | 24,382 | ||||||||||||
| Occupancy and equipment | 4,206 | 4,166 | 4,498 | 4,286 | 4,393 | ||||||||||||
| Data processing | 7,186 | 7,035 | 6,919 | 7,278 | 6,955 | ||||||||||||
| Professional services | 2,017 | 2,792 | 2,741 | 1,580 | 1,744 | ||||||||||||
| Impairment on goodwill | — | — | 153,977 | — | — | ||||||||||||
| Amortization of intangible assets | 743 | 827 | 911 | 952 | 951 | ||||||||||||
| Impairment on leased assets and surrendered assets | — | — | — | 7,601 | — | ||||||||||||
| FDIC insurance | 1,512 | 1,422 | 1,463 | 1,383 | 1,402 | ||||||||||||
| Other expense | 7,757 | 8,065 | 6,080 | 13,336 | 9,937 | ||||||||||||
| Total noninterest expense | 49,814 | 49,992 | 203,005 | 58,699 | 49,764 | ||||||||||||
| Income (loss) before income taxes | 11,314 | 14,868 | (137,802 | ) | (38,941 | ) | 24,966 | ||||||||||
| Income tax expense (benefit) | 3,757 | 2,844 | 3,172 | (8,172 | ) | 4,535 | |||||||||||
| Net income (loss) | 7,557 | 12,024 | (140,974 | ) | (30,769 | ) | 20,431 | ||||||||||
| Preferred stock dividends | 2,229 | 2,228 | 2,228 | 2,228 | 2,229 | ||||||||||||
| Net income (loss) available to common shareholders | $ | 5,328 | $ | 9,796 | $ | (143,202 | ) | $ | (32,997 | ) | $ | 18,202 | |||||
| Basic earnings (loss) per common share | $ | 0.24 | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | |||||
| Diluted earnings (loss) per common share | $ | 0.24 | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | |||||
| Weighted average common shares outstanding | 21,863,911 | 21,820,190 | 21,795,570 | 21,748,428 | 21,675,818 | ||||||||||||
| Weighted average diluted common shares outstanding | 21,863,911 | 21,820,190 | 21,795,570 | 21,753,711 | 21,678,242 | ||||||||||||
| MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued) | ||||||||||
| As of | ||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
| (dollars in thousands) | 2025 | 2025 | 2025 | 2024 | 2024 | |||||
| Loan Portfolio Mix | ||||||||||
| Commercial loans | $ | 1,149,673 | $ | 1,178,792 | $ | 879,286 | $ | 934,848 | $ | 879,590 |
| Equipment finance loans | 326,860 | 364,526 | 390,276 | 416,969 | 442,552 | |||||
| Equipment finance leases | 310,983 | 347,155 | 373,168 | 391,390 | 417,531 | |||||
| Commercial FHA warehouse lines | — | 1,068 | — | 8,004 | 50,198 | |||||
| Total commercial loans and leases | 1,787,516 | 1,891,541 | 1,642,730 | 1,751,210 | 1,789,871 | |||||
| Commercial real estate | 2,336,661 | 2,383,361 | 2,592,325 | 2,591,664 | 2,510,472 | |||||
| Construction and land development | 260,073 | 258,729 | 264,966 | 299,842 | 422,253 | |||||
| Residential real estate | 353,475 | 361,261 | 373,095 | 380,557 | 378,658 | |||||
| Consumer | 129,862 | 140,403 | 144,937 | 144,301 | 626,983 | |||||
| Total loans | $ | 4,867,587 | $ | 5,035,295 | $ | 5,018,053 | $ | 5,167,574 | $ | 5,728,237 |
| Loan Portfolio Segment | ||||||||||
| Regions | ||||||||||
| Eastern | $ | 927,977 | $ | 897,348 | $ | 897,792 | $ | 899,611 | $ | 902,993 |
| Northern | 724,695 | 753,590 | 747,028 | 714,562 | 730,752 | |||||
| Southern | 725,892 | 778,124 | 711,787 | 720,188 | 694,810 | |||||
| St. Louis | 896,005 | 884,685 | 902,743 | 868,190 | 850,327 | |||||
| Total Community Bank | 3,274,569 | 3,313,747 | 3,259,350 | 3,202,551 | 3,178,882 | |||||
| Specialty finance | 642,167 | 670,566 | 867,918 | 1,026,443 | 1,010,766 | |||||
| Equipment finance | 637,843 | 711,681 | 763,444 | 808,359 | 860,083 | |||||
| Non-core loan program and other(1) | 313,008 | 339,301 | 127,341 | 130,221 | 678,506 | |||||
| Total loans | $ | 4,867,587 | $ | 5,035,295 | $ | 5,018,053 | $ | 5,167,574 | $ | 5,728,237 |
| Deposit Portfolio Mix | ||||||||||
| Noninterest-bearing demand | $ | 1,015,930 | $ | 1,074,212 | $ | 1,090,707 | $ | 1,055,564 | $ | 1,050,617 |
| Interest-bearing: | ||||||||||
| Checking | 1,996,501 | 2,180,717 | 2,161,282 | 2,378,256 | 2,389,970 | |||||
| Money market | 1,240,885 | 1,216,357 | 1,154,403 | 1,173,630 | 1,187,139 | |||||
| Savings | 486,953 | 511,470 | 522,663 | 507,305 | 510,260 | |||||
| Time | 804,740 | 818,813 | 818,732 | 822,981 | 849,413 | |||||
| Brokered time | 59,816 | 145,350 | 188,647 | 259,507 | 269,437 | |||||
| Total deposits | $ | 5,604,825 | $ | 5,946,919 | $ | 5,936,434 | $ | 6,197,243 | $ | 6,256,836 |
| Deposit Portfolio by Channel | ||||||||||
| Retail | $ | 2,791,085 | $ | 2,811,838 | $ | 2,846,494 | $ | 2,749,650 | $ | 2,695,077 |
| Commercial | 1,248,445 | 1,145,369 | 1,074,837 | 1,209,815 | 1,218,657 | |||||
| Public Funds | 605,474 | 618,172 | 490,374 | 505,912 | 574,704 | |||||
| Wealth & Trust | 263,765 | 304,626 | 301,251 | 340,615 | 332,242 | |||||
| Servicing | 498,892 | 785,659 | 842,567 | 896,436 | 958,662 | |||||
| Brokered Deposits | 167,228 | 248,707 | 358,063 | 473,451 | 390,558 | |||||
| Other | 29,936 | 32,548 | 22,848 | 21,364 | 86,936 | |||||
| Total deposits | $ | 5,604,825 | $ | 5,946,919 | $ | 5,936,434 | $ | 6,197,243 | $ | 6,256,836 |
(1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio.
| MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||
| Adjusted Earnings Reconciliation | ||||||||||||||
| For the Three Months Ended | ||||||||||||||
| (dollars in thousands, expect per share data) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||
| Income (loss) before income tax (benefit) expense – GAAP | $ | 11,314 | $ | 14,868 | $ | (137,802 | ) | $ | (38,941 | ) | $ | 24,966 | ||
| Adjustments to noninterest income: | ||||||||||||||
| (Gain) loss on sales of investment securities, net | (14 | ) | — — | 34 | 44 | |||||||||
| Loss (gain) on repurchase of subordinated debt | — | — — | 13 | (77 | ) | |||||||||
| Total adjustments to noninterest income | (14 | ) | — — | 47 | (33 | ) | ||||||||
| Adjustments to noninterest expense: | ||||||||||||||
| Impairment on goodwill | — | — | (153,977 | ) | — | — | ||||||||
| Total adjustments to noninterest expense | — | — | (153,977 | ) | — | — | ||||||||
| Adjusted earnings (loss) pre tax – non-GAAP | 11,300 | 14,868 | 16,175 | (38,894 | ) | 24,933 | ||||||||
| Adjusted earnings (loss) tax (benefit) expense | 3,753 | 2,844 | 3,172 | (8,159 | ) | 4,526 | ||||||||
| Adjusted earnings (loss) – non-GAAP | 7,547 | 12,024 | 13,003 | (30,735 | ) | 20,407 | ||||||||
| Preferred stock dividends | 2,229 | 2,228 | 2,228 | 2,228 | 2,229 | |||||||||
| Adjusted earnings (loss) available to common shareholders | $ | 5,318 | $ | 9,796 | $ | 10,775 | $ | (32,963 | ) | $ | 18,178 | |||
| Adjusted diluted earnings (loss) per common share | $ | 0.24 | $ | 0.44 | $ | 0.49 | $ | (1.52 | ) | $ | 0.82 | |||
| Pre-Provision Net Revenue Reconciliation | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| (dollars in thousands) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||
| Income (loss) before income taxes | $ | 11,314 | $ | 14,868 | $ | (137,802 | ) | $ | (38,941 | ) | $ | 24,966 | |||
| Provision for credit losses | 20,005 | 17,369 | 10,850 | 74,183 | 17,925 | ||||||||||
| Impairment on goodwill | — | — | 153,977 | — | — | ||||||||||
| Pre-provision net revenue | $ | 31,319 | $ | 32,237 | $ | 27,025 | $ | 35,242 | $ | 42,891 | |||||
| Pre-provision net revenue per diluted share | $ | 1.43 | $ | 1.48 | $ | 1.24 | $ | 1.62 | $ | 1.98 | |||||
| Pre-provision net revenue to average assets | 1.80 | % | 1.81 | % | 1.47 | % | 1.83 | % | 2.21 | % | |||||
| MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||||||
| Efficiency Ratio Reconciliation | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| (dollars in thousands) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | ||||||||||
| Noninterest expense – GAAP | $ | 49,814 | $ | 49,992 | $ | 203,005 | $ | 58,699 | $ | 49,764 | |||||
| Impairment on goodwill | — | — | (153,977 | ) | — | — | |||||||||
| Adjusted noninterest expense | $ | 49,814 | $ | 49,992 | $ | 49,028 | $ | 58,699 | $ | 49,764 | |||||
| Net interest income – GAAP | $ | 61,117 | $ | 58,695 | $ | 58,290 | $ | 58,570 | $ | 59,110 | |||||
| Effect of tax-exempt income | 209 | 267 | 208 | 220 | 205 | ||||||||||
| Adjusted net interest income | 61,326 | 58,962 | 58,498 | 58,790 | 59,315 |
| Noninterest income – GAAP | 20,016 | 23,534 | 17,763 | 35,371 | 33,545 | ||||||||||
| (Gain) loss on sales of investment securities, net | (14 | ) | — | — | 34 | 44 | |||||||||
| Loss (gain) on repurchase of subordinated debt | — | — | — | 13 | (77 | ) | |||||||||
| Adjusted noninterest income | 20,002 | 23,534 | 17,763 | 35,418 | 33,512 | ||||||||||
| Adjusted total revenue | $ | 81,328 | $ | 82,496 | $ | 76,261 | $ | 94,208 | $ | 92,827 | |||||
| Efficiency ratio | 61.25 | % | 60.60 | % | 64.29 | % | 62.31 | % | 53.61 | % | |||||
| 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) | 2025 | 2025 | 2025 | 2024 | 2024 | ||||||||||
| Shareholders’ Equity to Tangible Common Equity | |||||||||||||||
| Total shareholders’ equity—GAAP | $ | 584,001 | $ | 573,705 | $ | 571,437 | $ | 710,847 | $ | 771,221 | |||||
| Adjustments: | |||||||||||||||
| Preferred Stock | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | |||||
| Goodwill | (7,927 | ) | (7,927 | ) | (7,927 | ) | (161,904 | ) | (161,904 | ) | |||||
| Other intangible assets, net | (9,619 | ) | (10,362 | ) | (11,189 | ) | (12,100 | ) | (13,052 | ) | |||||
| Tangible common equity | $ | 455,907 | $ | 444,868 | $ | 441,773 | $ | 426,295 | $ | 485,717 | |||||
| Total Assets to Tangible Assets: | |||||||||||||||
| Total assets—GAAP | $ | 6,911,515 | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | |||||
| Adjustments: | |||||||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (7,927 | ) | (161,904 | ) | (161,904 | ) | |||||
| Other intangible assets, net | (9,619 | ) | (10,362 | ) | (11,189 | ) | (12,100 | ) | (13,052 | ) | |||||
| Tangible assets | $ | 6,893,969 | $ | 7,089,589 | $ | 7,265,688 | $ | 7,332,805 | $ | 7,529,233 | |||||
| Common Shares Outstanding | 21,543,557 | 21,515,138 | 21,503,036 | 21,494,485 | 21,393,905 | ||||||||||
| Tangible Common Equity to Tangible Assets | 6.61 | % | 6.27 | % | 6.08 | % | 5.81 | % | 6.45 | % | |||||
| Tangible Book Value Per Share | $ | 21.16 | $ | 20.68 | $ | 20.54 | $ | 19.83 | $ | 22.70 | |||||
