EX-99.1 2 msbi-20241231exx991.htm EX-99.1 Document


EXHIBIT 99.1

Midland States Bancorp, Inc. Announces 2024 Fourth Quarter Results

Fourth Quarter 2024 Highlights:
•Net loss available to common shareholders of $54.8 million, or $2.52 per diluted share
•Adjusted pre-tax, pre-provision earnings of $21.5 million, compared to $27.5 million in prior quarter
•Sold $87.1 million LendingPoint consumer loan portfolio, recognizing net charge-offs and provision for credit losses of $17.3 million
•Committed to a plan to sell $371.7 million Greensky portfolio, recognizing net charge-offs and provision for credit losses of $33.4 million
•Net charge-offs on loans of $102.7 million and provision for credit losses on loans of $93.5 million to address credit issues in the loan portfolio including credit losses for LendingPoint and Greensky portfolios
•Net interest margin of 3.19%, compared to 3.10% in prior quarter
•Wealth management revenue of $7.7 million, compared to $7.1 million in prior quarter
•Common equity tier 1 capital ratio of 8.37%, compared to 9.00% at September 30, 2024 and 8.40% at December 31, 2023
•Total risk-based capital ratio of 13.38%, compared to 13.98% at September 30, 2024 and 13.20% at December 31, 2023
Effingham, IL, January 23, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net loss available to common shareholders of $54.8 million, or $2.52 per diluted share, for the fourth quarter of 2024, compared to net income of $16.2 million, or $0.74 per diluted share, for the third quarter of 2024. This also compares to net income available to common shareholders of $18.5 million, or $0.84 per diluted share, for the fourth quarter of 2023.
During the fourth quarter of 2024, the Company took several actions to address its credit quality issues and exit its non-core consumer loan portfolios. Our deteriorating credit quality issues were primarily within three sectors of our business: non-core consumer loans, Specialty Finance Group, and Midland Equipment Financing.
In the quarter, the Company decided to accelerate the reduction of our non-core consumer loan portfolio through sales. These loans were originated by our Fintech partners, LendingPoint and Greensky. As a result of LendingPoint’s system conversion in the third quarter of 2023, our portfolio experienced significant credit deterioration and servicing-related deficiencies. In December 2024, we sold our $87.1 million LendingPoint portfolio, recognizing net charge-offs and provision for credit losses of $17.3 million on the sale. We also committed to a plan to sell $371.7 million of our Greensky consumer loan portfolio and recognized net charge-offs and provision for credit losses of $33.4 million when these loans


were transferred to held for sale. We expect to provide partial financing on the sale with senior secured loans to a special purpose entity with credit subordination and a 20% risk weighting.
The Specialty Finance Group provides bridge loan financing for commercial real estate projects, primarily multi-family and healthcare. These projects can include construction and seek short term financing in anticipation of obtaining permanent secondary market financing. The loans are typically outside of the Company’s primary market areas. We completed a strategic review of this portfolio including obtaining updated appraisals on loans that had shown elevated credit risk in the third and fourth quarters. As a result of this review, five loans with balances of $57.8 million were moved from substandard to non-performing with recognized charge-offs of $6.6 million. In addition, updated appraisals were obtained for five non-performing loans with balances of $55.8 million which resulted in charge-offs of $18.8 million recognized in the fourth quarter of 2024. In addition, we recognized impairment expense on an OREO property related to a former assisted living loan of $2.1 million in the fourth quarter of 2024.
The strategic review also included all criticized loans, construction loans and loans that failed our stress test in all portfolios, including our community bank. This resulted in charge-offs of almost all specific reserves. In addition, the Company tightened credit standards going forward and will not originate new construction loans in the Specialty Finance Group. Our strategic actions around credit administration will better position the Company going forward.
The equipment finance portfolio includes loans and leases originated to customers throughout the United States. During 2024, we experienced elevated charge-offs primarily within the trucking industry. Charge-offs in this portfolio were $15.3 million in the fourth quarter of 2024 as we evaluated equipment values for nonaccrual assets. Nonaccrual loans and leases in the finance portfolio decreased to $11.3 million from $21.4 million at September 30, 2024. Additionally, based on further deterioration in the industry, we evaluated salvage values of the leases and loans related to this industry, along with the carrying values of repossessed and off-lease equipment, and recognized impairment expense of $7.6 million.
Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “Improving credit quality is our number one priority and in the fourth quarter we took significant steps to reduce credit risk and address our underlying credit issues. During the quarter we made the difficult decision to exit our non-core consumer portfolio and charge-off deteriorating credits in an effort to better position the Company to grow our core community banking business. Our team also reviewed our credit risk appetite profile and tightened standards going forward. On a positive note, substandard accruing loans decreased significantly in the quarter with minimal downgrades to substandard accruing. Delinquencies decreased during the quarter as well.
“We are seeing positive trends in new client additions in both our community bank and wealth management, net interest margin expanded in the quarter and with the actions we took in the quarter to reduce credit risk, we believe we are well positioned to deliver solid financial performance in 2025. We will continue to make investments in talent, technology, and marketing to further enhance our ability to generate profitable growth in the coming years” said Mr. Ludwig.
Balance Sheet Highlights
Total assets were $7.53 billion at December 31, 2024, compared to $7.75 billion at September 30, 2024, and $7.87 billion at December 31, 2023. At December 31, 2024, portfolio loans were $5.17 billion, compared to $5.75 billion at September 30, 2024, and $6.13 billion at December 31, 2023.


Loans
During the fourth quarter of 2024, outstanding loans declined by $581.2 million, or 10.1%, from September 30, 2024, primarily as a result of the Company’s decision to sell the Greensky and LendingPoint consumer loan portfolios, and the continuation of the Company’s plan to decrease its equipment financing portfolio to focus on commercial loan opportunities in our community banking regions.
Consumer loans decreased $506.0 million to $157.2 million at December 31, 2024, primarily due to the loan portfolio sale, transfer to held for sale, and loan paydowns. Equipment finance loan and lease balances decreased $51.7 million during the fourth quarter of 2024 as the Company continued to reduce its concentration of this product within the overall loan portfolio. Equipment financing and consumer loans comprised 15.6% and 3.0%, respectively, of the loan portfolio at December 31, 2024, compared to 15.0% and 11.5%, respectively, at September 30, 2024.
As of
December 31,September 30,June 30,March 31,December 31,
(in thousands)20242024202420242023
Loan Portfolio
Commercial loans$921,930 $863,922 $939,458 $913,564 $951,387 
Equipment finance loans416,969 442,552 461,409 494,068 531,143 
Equipment finance leases391,390 417,531 428,659 455,879 473,350 
Commercial FHA warehouse lines8,004 50,198 — 8,035 — 
Total commercial loans and leases1,738,293 1,774,203 1,829,526 1,871,546 1,955,880 
Commercial real estate2,591,664 2,510,472 2,421,505 2,397,113 2,406,845 
Construction and land development299,842 422,253 476,528 474,128 452,593 
Residential real estate380,557 378,657 378,393 378,583 380,583 
Consumer157,218 663,234 746,042 837,092 935,178 
Total loans$5,167,574 $5,748,819 $5,851,994 $5,958,462 $6,131,079 
Loan Quality
Substandard accruing loans decreased $88.7 million to $78.8 million at December 31, 2024, as compared to September 30, 2024. This decrease was the result of a payoff of a $15.4 million relationship and the transfer of $75.1 million of problem loans to nonaccrual status. No significant new substandard loans were identified during the quarter.
Nonperforming loans increased $25.6 million to $140.1 million at December 31, 2024, as compared to September 30, 2024. Charged off nonperforming loans in the fourth quarter of 2024 totaled $48.9 million, partially offsetting the amount of loans transferred to nonaccrual status in the quarter.



As of and for the Three Months Ended
(in thousands)December 31,September 30,June 30,March 31,December 31,
20242024202420242023
Asset Quality
Loans 30-89 days past due$36,522 $55,329 $54,045 $58,854 $82,778 
Nonperforming loans140,138 114,556 112,124 104,979 56,351 
Nonperforming assets148,290 126,771 123,774 116,721 67,701 
Substandard accruing loans78,800 167,549 135,555 149,049 184,224 
Net charge-offs102,660 11,379 2,874 4,445 5,117 
Loans 30-89 days past due to total loans0.71 %0.96 %0.92 %0.99 %1.35 %
Nonperforming loans to total loans2.71 %1.99 %1.92 %1.76 %0.92 %
Nonperforming assets to total assets1.97 %1.64 %1.60 %1.49 %0.86 %
Allowance for credit losses to total loans1.46 %1.49 %1.58 %1.31 %1.12 %
Allowance for credit losses to nonperforming loans53.81 %74.90 %82.22 %74.35 %121.56 %
Net charge-offs to average loans7.23 %0.78 %0.20 %0.30 %0.33 %
The Company recognized provision expense for credit losses on loans of $93.5 million in the fourth quarter of 2024, and recorded net loan charge-offs of $102.7 million. Provision expense for credit losses on loans was $5.0 million and $7.0 million in the third quarter of 2024 and fourth quarter of 2023, respectively. For the year ended December 31, 2024, the Company recognized provision expense for credit losses of $129.3 million and recorded net charge-offs of $121.4 million.
The allowance for credit losses on loans totaled $75.4 million at December 31, 2024, compared to $85.8 million at September 30, 2024, and $68.5 million at December 31, 2023. The allowance as a percentage of total loans was 1.46% at December 31, 2024, compared to 1.49% at September 30, 2024, and 1.12% at December 31, 2023.
Deposits
Total deposits were $6.20 billion at December 31, 2024, compared with $6.26 billion at September 30, 2024. Noninterest-bearing deposits increased $4.9 million while interest-bearing deposits decreased $64.5 million. Brokered time deposits represented 4.2% of total deposits at December 31, 2024.
As of
December 31,September 30,June 30,March 31,December 31,
(in thousands)20242024202420242023
Deposit Portfolio
Noninterest-bearing demand$1,055,564 $1,050,617 $1,108,521 $1,212,382 $1,145,395 
Interest-bearing:
Checking2,378,256 2,389,970 2,343,533 2,394,163 2,511,840 
Money market1,173,630 1,187,139 1,143,668 1,128,463 1,135,629 
Savings507,305 510,260 538,462 555,552 559,267 
Time822,981 849,413 852,415 845,190 862,865 
Brokered time259,507 269,437 131,424 188,234 94,533 
Total deposits$6,197,243 $6,256,836 $6,118,023 $6,323,984 $6,309,529 


Results of Operations Highlights
Net Interest Income and Margin
During the fourth quarter of 2024, net interest income and net interest margin, on a tax-equivalent basis, increased to $56.3 million and 3.19%, respectively, compared to $55.2 million and 3.10%, respectively, in the third quarter of 2024. The actions taken by the Federal Reserve Bank to lower short term interest rates resulted in lower funding costs for the Company. Net interest income and net interest margin, on a tax-equivalent basis, were $58.3 million and 3.21%, respectively, in the fourth quarter of 2023.
Average interest-earning assets for the fourth quarter of 2024 were $7.01 billion, compared to $7.07 billion for the third quarter of 2024. The yield on interest-earning assets decreased 11 basis points to 5.80% compared to the third quarter of 2024, due in part to interest reversals of $1.5 million on substandard loans transferred to nonaccrual status in the fourth quarter and the impact of interest rate cuts enacted by the Federal Reserve Bank. Interest-earning assets averaged $7.20 billion for the fourth quarter of 2023.
Average loans were $5.65 billion for the fourth quarter of 2024, compared to $5.78 billion for the third quarter of 2024 and $6.20 billion for the fourth quarter of 2023. The yield on loans was 6.04% for the fourth quarter of 2024, compared to 6.15% for the third quarter of 2024 and 6.00% for the fourth quarter of 2023.
Investment securities averaged $1.21 billion for the fourth quarter of 2024, and yielded 4.73%, compared to an average balance and yield of $1.16 billion and 4.71%, respectively, for the third quarter of 2024. Investment securities averaged $883.2 million and yielded 4.16% for the fourth quarter of 2023. The Company purchased additional higher-yielding investments during 2024, resulting in the increased average balance and yield.
Average interest-bearing liabilities for the fourth quarter of 2024 were $5.69 billion, compared to $5.76 billion for the third quarter of 2024. The cost of funds decreased 24 basis points to 3.21% compared to the third quarter of 2024. Interest-bearing liabilities averaged $5.88 billion for the fourth quarter of 2023.
Average interest-bearing deposits were $5.24 billion for the fourth quarter of 2024, compared to $5.13 billion for the third quarter of 2024, and $5.30 billion for the fourth quarter of 2023. Cost of interest-bearing deposits was 3.04% in the fourth quarter of 2024, which represented a 21 basis point decrease from the third quarter of 2024, due to the recent rate cuts enacted by the Federal Reserve Bank.


For the Three Months Ended
(dollars in thousands)December 31, 2024September 30, 2024December 31, 2023
Interest-earning assetsAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/Rate
Cash and cash equivalents$96,676 $1,101 4.53 %$75,255 $1,031 5.45 %$77,363 $1,054 5.41 %
Investment securities(1)
1,213,248 14,417 4.73 1,162,751 13,752 4.71 883,153 9,257 4.16 
Loans(1)(2)
5,652,586 85,877 6.04 5,783,408 89,344 6.15 6,196,362 93,757 6.00 
Loans held for sale12,854 129 4.00 7,505 124 6.57 4,429 81 7.26 
Nonmarketable equity securities35,171 632 7.15 41,137 788 7.62 41,192 715 6.89 
Total interest-earning assets7,010,535 102,156 5.80 7,070,056 105,039 5.91 7,202,499 104,864 5.78 
Noninterest-earning assets669,300 653,279 695,293 
Total assets$7,679,835 $7,723,335 $7,897,792 
Interest-Bearing Liabilities
Interest-bearing deposits$5,241,702 $40,016 3.04 %$5,132,640 $41,970 3.25 %$5,295,296 $39,156 2.93 %
Short-term borrowings31,853 214 2.68 53,577 602 4.47 13,139 15 0.47 
FHLB advances & other borrowings284,033 2,880 4.03 428,739 4,743 4.40 430,207 4,750 4.38 
Subordinated debt80,410 1,498 7.41 89,120 1,228 5.48 93,512 1,281 5.43 
Trust preferred debentures51,132 1,292 10.05 50,990 1,341 10.46 50,541 1,402 11.00 
Total interest-bearing liabilities5,689,130 45,900 3.21 5,755,066 49,884 3.45 5,882,695 46,604 3.14 
Noninterest-bearing deposits1,066,520 1,075,712 1,142,062 
Other noninterest-bearing liabilities117,478 97,235 108,245 
Shareholders’ equity806,707 795,322 764,790 
Total liabilities and shareholder’s equity$7,679,835 $7,723,335 $7,897,792 
Net Interest Margin$56,256 3.19 %$55,155 3.10 %$58,260 3.21 %
Cost of Deposits2.52 %2.69 %2.41 %

(1)Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.2 million for each of the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
(2)Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
For the year ended December 31, 2024, net interest income, on a tax-equivalent basis, decreased to $222.8 million, with a tax-equivalent net interest margin of 3.15%, compared to net interest income, on a tax-equivalent basis, of $236.8 million, and a tax-equivalent net interest margin of 3.26% for the year ended December 31, 2023.
The yield on earning assets increased 26 basis points to 5.83% for the year ended December 31, 2024 compared to the prior year. However, the cost of interest-bearing liabilities increased at a faster rate during this period, increasing 44 basis points to 3.31% for the year ended December 31, 2024.


For the Years Ended
(dollars in thousands)December 31, 2024December 31, 2023
Interest-earning assetsAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/Rate
Cash and cash equivalents$76,675 $3,958 5.16 %$77,046 $3,922 5.09 %
Investment securities(1)
1,116,186 51,682 4.63 854,576 30,361 3.55 
Loans(1)(2)
5,840,216 353,447 6.05 6,292,260 367,762 5.84 
Loans held for sale7,185 392 5.45 4,034 260 6.45 
Nonmarketable equity securities39,108 3,070 7.85 43,318 2,819 6.51 
Total interest-earning assets7,079,370 412,549 5.83 7,271,234 405,124 5.57 
Noninterest-earning assets665,308 635,490 
Total assets$7,744,678 $7,906,724 
Interest-Bearing Liabilities
Interest-bearing deposits$5,167,787 $160,676 3.11 %$5,241,723 $136,947 2.61 %
Short-term borrowings45,251 1,960 4.33 23,406 68 0.29 
FHLB advances & other borrowings381,525 16,495 4.32 460,781 20,709 4.49 
Subordinated debt89,028 5,271 5.92 95,986 5,266 5.49 
Trust preferred debentures50,938 5,380 10.56 50,298 5,289 10.52 
Total interest-bearing liabilities5,734,529 189,782 3.31 5,872,194 168,279 2.87 
Noninterest-bearing deposits1,106,388 1,173,873 
Other noninterest-bearing liabilities109,777 90,562 
Shareholders’ equity793,984 770,095 
Total liabilities and shareholders’ equity$7,744,678 $7,906,724 
Net Interest Margin$222,767 3.15 %$236,845 3.26 %
Cost of Deposits2.56 %2.13 %

(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 $0.8 million for each of the years ended December 31, 2024 and 2023, respectively.
(2)Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
Noninterest Income
Noninterest income was $19.6 million for the fourth quarter of 2024, compared to $19.3 million for the third quarter of 2024. Noninterest income for the fourth quarter of 2023 was $20.5 million, and included incremental servicing revenues of $2.2 million and $1.6 million related to our commercial FHA servicing portfolio and the Greensky portfolio, respectively. Also included was a $1.1 million one-time gain from the sale of Visa B stock, offset by $2.9 million of losses on the sale of investment securities. Excluding


these transactions, noninterest income for the fourth quarter of 2024, the third quarter of 2024, and the fourth quarter of 2023 was $19.6 million, $19.3 million, and $18.5 million, respectively.
For the Three Months EndedFor the Years Ended
December 31,September 30,December 31, December 31,December 31,
(in thousands)20242024202320242023
Noninterest income
Wealth management revenue$7,660 $7,104 $6,604 $28,697 $25,572 
Service charges on deposit accounts3,506 3,411 3,246 13,154 11,990 
Interchange revenue3,528 3,506 3,585 13,955 14,302 
Residential mortgage banking revenue637 697 451 2,418 1,903 
Income on company-owned life insurance1,975 1,982 1,753 7,683 4,439 
Loss on sales of investment securities, net(34)(44)(2,894)(230)(9,372)
Other income2,289 2,683 7,768 12,066 17,756 
Total noninterest income$19,561 $19,339 $20,513 $77,743 $66,590 

Wealth management revenue totaled $7.7 million in the fourth quarter of 2024, an increase of $0.6 million, or 7.8%, as compared to the third quarter of 2024, due to increases in trust and estate fees. Assets under administration were $4.15 billion at December 31, 2024 compared to $4.27 billion and $3.73 billion at September 30, 2024 and December 31, 2023, respectively.
Income on company-owned life insurance income totaled $2.0 million, $2.0 million and $1.8 million for the fourth quarter of 2024, the third quarter of 2024, and the fourth quarter of 2023, respectively.
On a full year basis, noninterest income increased $11.2 million, or 16.7%. Wealth management revenue increased $3.1 million due to increases in assets under administration and estate fees. Income on company-owned life insurance increased $3.2 million. The Company surrendered certain low-yielding life insurance policies and purchased additional policies in the third quarter of 2023, resulting in the increase in revenue. In 2024, we recognized net losses on the sales of investment securities of $0.2 million compared to $9.4 million in 2023, as we took advantage of certain market conditions last year to reposition out of lower yielding securities into other structures, which resulted in improved overall margin, liquidity and capital allocations. Several one-time transactions were recognized in other noninterest income in 2023, including incremental servicing revenues of $2.2 million and $1.6 million related to our commercial FHA servicing portfolio and the Greensky portfolio, respectively. In addition, the Company recognized a $1.1 million one-time gain from the sale of Visa B stock, a gain of $0.7 million on the redemption of subordinated debt and a gain of $0.8 million on the sale of OREO.
Noninterest Expense
Noninterest expense was $54.2 million in the fourth quarter of 2024, compared to $46.7 million in the third quarter of 2024 and $44.5 million in the fourth quarter of 2023. Noninterest expense for the fourth quarter of 2024 included $7.6 million of impairment on equipment financing operating lease collateral and surrendered equipment, and $2.1 million of impairment on an OREO property. Excluding these items, noninterest expense for the fourth quarter of 2024, the third quarter of 2024, and the fourth quarter of 2023 was $44.5 million, $46.7 million, and $44.5 million, respectively.


On a full year basis, in addition to the fourth quarter expenses previously described, costs related to upgrades to our ATM fleet, loan collection expenses, and settlement of various lawsuits drove the increase in noninterest expense as compared to the prior year.
The efficiency ratio for the quarter ended December 31, 2024 was 71.42% compared to 62.76% for the quarter ended September 30, 2024, and 55.22% for the fourth quarter of 2023.
For the Three Months EndedFor the Years Ended
December 31,September 30,December 31, December 31,December 31,
(in thousands)20242024202320242023
Noninterest expense
Salaries and employee benefits$22,283 $24,382 $24,031 $93,639 $93,438 
Occupancy and equipment4,286 4,393 3,934 16,785 15,986 
Data processing7,278 6,955 6,963 28,160 26,286 
Professional services1,580 1,744 2,072 7,822 7,049 
Amortization of intangible assets952 951 1,130 4,008 4,758 
Impairment on leased assets and surrendered assets7,601 — — 7,601 — 
FDIC insurance1,383 1,402 1,147 5,278 4,779 
Other expense8,820 6,906 5,211 29,969 21,606 
Total noninterest expense$54,183 $46,733 $44,488 $193,262 $173,902 
Income Tax Expense
Income tax benefit was $19.6 million for the fourth quarter of 2024, compared to expenses of $4.1 million for the third quarter of 2024 and $6.4 million for the fourth quarter of 2023. The resulting effective tax rates were 27.2%, 18.1% and 23.7%, respectively.
Capital
At December 31, 2024, Midland States Bank and the Company exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a ‘‘well-capitalized’’ financial institution, as summarized in the following table:
As of December 31, 2024
Midland States BankMidland States Bancorp, Inc.
Minimum Regulatory Requirements (2)
Total capital to risk-weighted assets12.75%13.38%10.50%
Tier 1 capital to risk-weighted assets11.54%11.11%8.50%
Common equity Tier 1 capital to risk-weighted assets11.54%8.37%7.00%
Tier 1 leverage ratio9.71%9.36%4.00%
Tangible common equity to tangible assets (1)
N/A6.14%N/A
(1) A non-GAAP financial measure. Refer to page 17 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.
The impact of rising interest rates on the Company’s investment portfolio and cash flow hedges resulted in an accumulated other comprehensive loss of $82.0 million at December 31, 2024, which reduced tangible book value by $3.81 per share.


Stock Repurchase Program
As previously disclosed, on December 5, 2023, the Company’s board of directors authorized a new share repurchase program, pursuant to which the Company was authorized to repurchase up to $25.0 million of common stock through December 31, 2024. During the fourth quarter of 2024, the Company did not repurchased any shares of its common stock. The program terminated effective December 31, 2024.
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 December 31, 2024, the Company had total assets of approximately $7.53 billion, and its Wealth Management Group had assets under administration of approximately $4.15 billion. The Company provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.
These non-GAAP financial measures include “Adjusted Earnings,” “Adjusted Earnings Available to Common Shareholders,” “Adjusted Diluted Earnings Per Common Share,” “Adjusted Return on Average Assets,” “Adjusted Return on Average Shareholders’ Equity,” “Adjusted Return on Average Tangible Common Equity,” “Adjusted Pre-Tax, Pre-Provision Earnings,” “Adjusted Pre-Tax, Pre-Provision Return on Average Assets,” “Efficiency Ratio,” “Tangible Common Equity to Tangible Assets,” “Tangible Book Value Per Share,” “Tangible Book Value Per Share excluding Accumulated Other Comprehensive Income,” and “Return on Average Tangible Common Equity.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.
Forward-Looking Statements
Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, the impact of inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-


looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made 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 and for the Three Months Ended
As of and
for the Years Ended
December 31,September 30,December 31, December 31,December 31,
(dollars in thousands, except per share data)20242024202320242023
Earnings Summary
Net interest income$56,035 $54,950 $58,077 $221,957 $236,017 
Provision for credit losses93,540 5,000 6,950 129,340 21,132 
Noninterest income19,561 19,339 20,513 77,743 66,590 
Noninterest expense54,183 46,733 44,488 193,262 173,902 
(Loss) income before income taxes(72,127)22,556 27,152 (22,902)107,573 
Income tax (benefit) expense(19,586)4,080 6,441 (9,472)32,113 
Net (loss) income(52,541)18,476 20,711 (13,430)75,460 
Preferred dividends2,228 2,229 2,228 8,913 8,913 
Net (loss) income available to common shareholders$(54,769)$16,247 $18,483 $(22,343)$66,547 
Diluted (loss) earnings per common share$(2.52)$0.74 $0.84 $(1.05)$2.97 
Weighted average common shares outstanding - diluted21,753,711 21,678,242 21,822,328 21,737,958 22,124,402 
(Loss) return on average assets(2.72)%0.95 %1.04 %(0.17)%0.95 %
(Loss) return on average shareholders' equity(25.91)%9.24 %10.74 %(1.69)%9.80 %
(Loss) return on average tangible common equity (1)
(41.76)%12.69 %15.41 %(4.40)%13.89 %
Net interest margin3.19 %3.10 %3.21 %3.15 %3.26 %
Efficiency ratio (1)
71.42 %62.76 %55.22 %64.31 %55.91 %
Adjusted Earnings Performance Summary (1)
Adjusted (loss) earnings available to common shareholders$(54,735)$16,223 $19,793 $(22,344)$76,576 
Adjusted diluted (loss) earnings per common share$(2.52)$0.74 $0.89 $(1.05)$3.42 
Adjusted (loss) return on average assets(2.72)%0.95 %1.11 %(0.17)%1.08 %
Adjusted (loss) return on average shareholders' equity(25.89)%9.23 %11.42 %(1.69)%11.10 %
Adjusted (loss) return on average tangible common equity(41.74)%12.67 %16.51 %(4.40)%15.98 %
Adjusted pre-tax, pre-provision earnings$21,460 $27,523 $35,898 $106,437 $136,303 
Adjusted pre-tax, pre-provision return on average assets1.11 %1.42 %1.80 %1.37 %1.72 %
Market Data
Book value per share at period end$29.10 $33.08 $31.61 
Tangible book value per share at period end (1)
$21.01 $24.90 $23.35 
Tangible book value per share excluding accumulated other comprehensive income at period end (1)
$24.82 $27.74 $26.91 
Market price at period end$24.40 $22.38 $27.56 
Common shares outstanding at period end21,494,485 21,393,905 21,551,402 
Capital
Total capital to risk-weighted assets13.38 %13.98 %13.20 %
Tier 1 capital to risk-weighted assets11.11 %11.65 %10.91 %
Common equity tier 1capital to risk-weighted assets8.37 %9.00 %8.40 %
Tier 1 leverage ratio9.36 %10.10 %9.71 %
Tangible common equity to tangible assets (1)
6.14 %7.03 %6.55 %
Wealth Management
Trust assets under administration$4,153,080 $4,268,539 $3,733,355 
(1) Non-GAAP financial measures. Refer to pages 15 - 17 for a reconciliation to the comparable GAAP financial measures.



MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
As of
December 31,September 30,June 30,March 31,December 31,
(in thousands)20242024202420242023
Assets
Cash and cash equivalents$114,766 $121,873 $124,646 $167,316 $135,061 
Investment securities1,212,366 1,216,795 1,099,654 1,044,900 920,396 
Loans5,167,574 5,748,819 5,851,994 5,958,462 6,131,079 
Allowance for credit losses on loans(75,414)(85,804)(92,183)(78,057)(68,502)
Total loans, net5,092,160 5,663,015 5,759,811 5,880,405 6,062,577 
Loans held for sale346,565 8,001 5,555 5,043 3,811 
Premises and equipment, net85,710 84,672 83,040 81,831 82,814 
Other real estate owned6,413 8,646 8,304 8,920 9,112 
Loan servicing rights, at lower of cost or fair value17,842 18,400 18,902 19,577 20,253 
Goodwill161,904 161,904 161,904 161,904 161,904 
Other intangible assets, net12,100 13,052 14,003 15,019 16,108 
Company-owned life insurance211,168 209,193 207,211 205,286 203,485 
Other assets268,061 245,932 274,244 241,608 251,347 
Total assets$7,529,055 $7,751,483 $7,757,274 $7,831,809 $7,866,868 
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits$1,055,564 $1,050,617 $1,108,521 $1,212,382 $1,145,395 
Interest-bearing deposits5,141,679 5,206,219 5,009,502 5,111,602 5,164,134 
Total deposits6,197,243 6,256,836 6,118,023 6,323,984 6,309,529 
Short-term borrowings87,499 13,849 7,208 214,446 34,865 
FHLB advances and other borrowings258,000 425,000 600,000 255,000 476,000 
Subordinated debt77,749 82,744 91,656 93,617 93,546 
Trust preferred debentures51,205 51,058 50,921 50,790 50,616 
Other liabilities121,246 103,737 103,694 102,966 110,459 
Total liabilities6,792,942 6,933,224 6,971,502 7,040,803 7,075,015 
Total shareholders’ equity736,113 818,259 785,772 791,006 791,853 
Total liabilities and shareholders’ equity$7,529,055 $7,751,483 $7,757,274 $7,831,809 $7,866,868 



MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
For the Three Months EndedFor the Years Ended
December 31,September 30,December 31, December 31,December 31,
(in thousands, except per share data)20242024202320242023
Net interest income:
Interest income$101,935 $104,834 $104,681 $411,739 $404,296 
Interest expense45,900 49,884 46,604 189,782 168,279 
Net interest income56,035 54,950 58,077 221,957 236,017 
Provision for credit losses on loans92,270 5,000 6,950 128,270 21,132 
Provision for credit losses on unfunded commitments1,270 — — 1,070 — 
Total provision for credit losses93,540 5,000 6,950 129,340 21,132 
Net interest income after provision for credit losses(37,505)49,950 51,127 92,617 214,885 
Noninterest income:
Wealth management revenue7,660 7,104 6,604 28,697 25,572 
Service charges on deposit accounts3,506 3,411 3,246 13,154 11,990 
Interchange revenue3,528 3,506 3,585 13,955 14,302 
Residential mortgage banking revenue637 697 451 2,418 1,903 
Income on company-owned life insurance1,975 1,982 1,753 7,683 4,439 
Loss on sales of investment securities, net(34)(44)(2,894)(230)(9,372)
Other income2,289 2,683 7,768 12,066 17,756 
Total noninterest income19,561 19,339 20,513 77,743 66,590 
Noninterest expense:
Salaries and employee benefits22,283 24,382 24,031 93,639 93,438 
Occupancy and equipment4,286 4,393 3,934 16,785 15,986 
Data processing7,278 6,955 6,963 28,160 26,286 
Professional services1,580 1,744 2,072 7,822 7,049 
Amortization of intangible assets952 951 1,130 4,008 4,758 
Impairment on leased assets and surrendered assets7,601 — — 7,601 — 
FDIC insurance1,383 1,402 1,147 5,278 4,779 
Other expense8,820 6,906 5,211 29,969 21,606 
Total noninterest expense54,183 46,733 44,488 193,262 173,902 
(Loss) income before income taxes(72,127)22,556 27,152 (22,902)107,573 
Income tax (benefit) expense(19,586)4,080 6,441 (9,472)32,113 
Net (loss) income(52,541)18,476 20,711 (13,430)75,460 
Preferred stock dividends2,228 2,229 2,228 8,913 8,913 
Net (loss) income available to common shareholders$(54,769)$16,247 $18,483 $(22,343)$66,547 
Basic (loss) earnings per common share$(2.52)$0.74 $0.84 $(1.05)$2.97 
Diluted (loss) earnings per common share$(2.52)$0.74 $0.84 $(1.05)$2.97 



MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
Adjusted Earnings Reconciliation
For the Three Months EndedFor the Years Ended
December 31,September 30,December 31, December 31,December 31,
(dollars in thousands, except per share data)20242024202320242023
(Loss) income before income tax (benefit) expense - GAAP$(72,127)$22,556 $27,152 $(22,902)$107,573 
Adjustments to noninterest income:
Loss on sales of investment securities, net34 44 2,894 230 9,372 
(Gain) on sale of Visa B shares— — (1,098)— (1,098)
Loss (gain) on repurchase of subordinated debt13 (77)— (231)(676)
Total adjustments to noninterest income47 (33)1,796 (1)7,598 
Adjusted (loss) earnings pre tax - non-GAAP(72,080)22,523 28,948 (22,903)115,171 
Adjusted (loss) earnings tax (benefit) expense(19,573)4,071 6,927 (9,472)29,682 
Adjusted (loss) earnings - non-GAAP(52,507)18,452 22,021 (13,431)85,489 
Preferred stock dividends2,228 2,229 2,228 8,913 8,913 
Adjusted (loss) earnings available to common shareholders$(54,735)$16,223 $19,793 $(22,344)$76,576 
Adjusted diluted (loss) earnings per common share$(2.52)$0.74 $0.89 $(1.05)$3.42 
Adjusted (loss) return on average assets(2.72)%0.95 %1.11 %(0.17)%1.08 %
Adjusted (loss) return on average shareholders' equity(25.89)%9.23 %11.42 %(1.69)%11.10 %
Adjusted (loss) return on average tangible common equity(41.74)%12.67 %16.51 %(4.40)%15.98 %
Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
For the Three Months EndedFor the Years Ended
December 31,September 30,December 31, December 31,December 31,
(dollars in thousands)20242024202320242023
Adjusted (loss) earnings pre tax - non-GAAP$(72,080)$22,523 $28,948 $(22,903)$115,171 
Provision for credit losses93,540 5,000 6,950 129,340 21,132 
Adjusted pre-tax, pre-provision earnings - non-GAAP$21,460 $27,523 $35,898 $106,437 $136,303 
Adjusted pre-tax, pre-provision return on average assets1.11 %1.42 %1.80 %1.37 %1.72 %



MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
Efficiency Ratio Reconciliation
For the Three Months EndedFor the Years Ended
December 31,September 30,December 31, December 31,December 31,
(dollars in thousands)20242024202320242023
Noninterest expense - GAAP$54,183 $46,733 $44,488 $193,262 $173,902 
Net interest income - GAAP$56,035 $54,950 $58,077 $221,957 $236,017 
Effect of tax-exempt income221 205 183 810 828 
Adjusted net interest income56,256 55,155 58,260 222,767 236,845 
Noninterest income - GAAP19,561 19,339 20,513 77,743 66,590 
Loss on sales of investment securities, net34 44 2,894 230 9,372 
(Gain) on sale of Visa B shares— — (1,098)— (1,098)
Loss (gain) on repurchase of subordinated debt13 (77)— (231)(676)
Adjusted noninterest income19,608 19,306 22,309 77,742 74,188 
Adjusted total revenue$75,864 $74,461 $80,569 $300,509 $311,033 
Efficiency ratio71.42 %62.76 %55.22 %64.31 %55.91 %
Return on Average Tangible Common Equity
For the Three Months EndedFor the Years Ended
December 31,September 30,December 31, December 31,December 31,
(dollars in thousands)20242024202320242023
Net (loss) income available to common shareholders$(54,769)$16,247 $18,483 $(22,343)$66,547 
Average total shareholders' equity—GAAP$806,707 $795,322 $764,790 $793,984 $770,095 
Adjustments:
Preferred Stock(110,548)(110,548)(110,548)(110,548)(110,548)
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(12,551)(13,506)(16,644)(14,011)(18,376)
Average tangible common equity$521,704 $509,364 $475,694 $507,521 $479,267 
(Loss) return on average tangible common equity(41.76)%12.69 %15.41 %(4.40)%13.89 %



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
December 31,September 30,June 30,March 31,December 31,
(dollars in thousands, except per share data)20242024202420242023
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity—GAAP$736,113 $818,259 $785,772 $791,006 $791,853 
Adjustments:
Preferred Stock(110,548)(110,548)(110,548)(110,548)(110,548)
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(12,100)(13,052)(14,003)(15,019)(16,108)
Tangible common equity451,561 532,755 499,317 503,535 503,293 
Less: Accumulated other comprehensive loss (AOCI)(81,960)(60,640)(82,581)(81,419)(76,753)
Tangible common equity excluding AOCI$533,521 $593,395 $581,898 $584,954 $580,046 
Total Assets to Tangible Assets:
Total assets—GAAP$7,529,055 $7,751,483 $7,757,274 $7,831,809 $7,866,868 
Adjustments:
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(12,100)(13,052)(14,003)(15,019)(16,108)
Tangible assets$7,355,051 $7,576,527 $7,581,367 $7,654,886 $7,688,856 
Common Shares Outstanding21,494,485 21,393,905 21,377,215 21,485,231 21,551,402 
Tangible Common Equity to Tangible Assets6.14 %7.03 %6.59 %6.58 %6.55 %
Tangible Book Value Per Share$21.01 $24.90 $23.36 $23.44 $23.35 
Tangible Book Value Per Share, excluding AOCI$24.82 $27.74 $27.22 $27.23 $26.91