EFFINGHAM, Ill., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $20.6 million, or $0.95 per diluted share, for the third quarter of 2026, compared to net income available to common shareholders of $17.7 million, or $0.82 per diluted share, for the second quarter of 2026. This also compares to net income available to common shareholders of $5.3 million, or $0.24 per diluted share, for the third quarter of 2025.
2026 Third Quarter Results
- Net income available to common shareholders of $20.6 million, or $0.95 per diluted share
- Return on average assets of 1.35% and return on average tangible common equity of 18.50%
- Net interest margin of 4.03% compared to 3.98% in the prior quarter; current quarter included a $1.6 million interest recovery on the payoff of a nonaccrual loan
- Total loans increased $39.1 million, including $23.7 million of net growth in the Community Bank loan portfolio, or 2.8% annualized, during the quarter
- Total capital to risk-weighted assets of 15.60% and common equity tier 1 capital of 10.36%
- Ratio of nonperforming assets to total assets of 0.86%, a decrease of five basis points compared to prior quarter
Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:
“Our third quarter results reflect another solid quarter of execution and continued progress toward building a higher-performing community bank. We delivered diluted earnings per share of $0.95 and a 1.35% return on average assets while maintaining strong net interest margin. The Community Bank generated loan growth, while we continued the planned runoff of non-core portfolios, further improving the composition of our balance sheet.
"We also made meaningful progress resolving legacy credit issues. Past-due, substandard and nonperforming loans declined, net charge-offs moderated from the prior quarter, and our nonperforming asset ratio improved to 0.86%. We remain disciplined in addressing the remaining legacy credits while supporting high-quality loan growth in our markets.
"Strong earnings continued to support our capital position. We enter the fourth quarter with solid momentum and remain focused on profitable relationship growth, continued credit normalization and disciplined capital deployment to support long-term shareholder value.”
Financial Highlights and Key Performance Indicators
| As of and for the Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| (dollars in thousands, except per share data) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Diluted earnings (loss) per common share | $ | 0.95 | $ | 0.82 | $ | 0.74 | $ | (0.24 | ) | $ | 0.24 | |||||||||
| Return on average assets (annualized) | 1.35 | % | 1.22 | % | 1.16 | % | (0.17 | )% | 0.43 | % | ||||||||||
| Return on average tangible common equity (annualized) (1) | 18.50 | % | 16.27 | % | 14.88 | % | (4.46 | )% | 4.72 | % | ||||||||||
| Adjusted pre-provision net revenue to average assets (annualized) (1) | 1.96 | % | 2.01 | % | 1.91 | % | 1.86 | % | 1.81 | % | ||||||||||
| Net interest margin (annualized) | 4.03 | % | 3.98 | % | 3.91 | % | 3.74 | % | 3.79 | % | ||||||||||
| Efficiency ratio (1) | 61.34 | % | 60.61 | % | 62.17 | % | 63.01 | % | 61.01 | % | ||||||||||
| Noninterest expense to average assets | 3.13 | % | 3.12 | % | 3.16 | % | 4.54 | % | 2.86 | % | ||||||||||
| Net charge-offs to average loans (annualized) | 0.50 | % | 1.17 | % | 0.64 | % | 3.69 | % | 0.99 | % | ||||||||||
| Tangible book value per share at period end (1) | $ | 19.52 | $ | 21.41 | $ | 20.77 | $ | 20.70 | $ | 21.16 | ||||||||||
| Tangible book value per share, excluding AOCI at period end (1) | $ | 25.39 | $ | 24.69 | $ | 24.11 | $ | 23.55 | $ | 24.08 | ||||||||||
| Common shares outstanding at period end | 20,801,859 | 20,725,814 | 20,813,975 | 21,169,854 | 21,543,557 | |||||||||||||||
| Trust assets under administration | $ | 4,770,581 | $ | 4,782,625 | $ | 4,474,234 | $ | 4,478,999 | $ | 4,363,756 | ||||||||||
(1) Non-GAAP financial measures. Refer to pages 10-12 for a reconciliation to the comparable GAAP financial measures.
Key Points for Third Quarter and Outlook
Growth Trends in Community Bank & Wealth Management
- Total loans at September 30, 2026 were $4.28 billion, an increase of $39.1 million from June 30, 2026. Key changes in the loan portfolio were as follows:
- Community Bank balances increased $23.7 million, or 2.8% annualized.
- Specialty finance loans increased $28.0 million to $560.1 million from June 30, 2026.
- Non-core loans, which include our third-party lending and servicing programs and remaining equipment finance portfolio, decreased $12.7 million to $295.7 million from June 30, 2026.
- Total deposits were $5.62 billion at September 30, 2026, a decrease of $89.8 million from June 30, 2026. Key changes in deposits were as follows:
- Retail deposits decreased $112.7 million, primarily reflecting $115.7 million of balance reductions resulting from actions taken to manage liquidity and deposit pricing.
- Commercial and public funds deposits increased $35.7 million and $33.7 million, respectively.
- Servicing and higher-cost brokered deposits decreased $26.5 million and $7.9 million, respectively.
- Wealth Management revenue totaled $8.7 million in the third quarter of 2026. Assets under administration remained stable at $4.77 billion at September 30, 2026, compared to $4.78 billion at June 30, 2026.
Net Interest Margin
- Net interest margin increased five basis points to 4.03% in the third quarter of 2026, benefiting from a $1.6 million interest recovery on the payoff of a nonaccrual loan and continued balance sheet and interest rate risk management, partially offset by higher funding costs. The cost of deposits increased four basis points to 1.82%.
The following table presents the Company’s net interest margin for the third quarter of 2026 compared to the second quarter of 2026 and the third quarter of 2025.
| For the Three Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | September 30, 2026 | June 30, 2026 | September 30, 2025 | ||||||||||||||||||||||||
| 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 | $ | 149,088 | $ | 1,333 | 3.55 | % | $ | 108,157 | $ | 987 | 3.66 | % | $ | 78,567 | $ | 849 | 4.29 | % | |||||||||
| Investment securities (1) | 1,780,505 | 22,090 | 4.92 | 1,617,474 | 19,540 | 4.85 | 1,338,997 | 15,979 | 4.73 | ||||||||||||||||||
| Loans (1)(2) | 4,235,207 | 69,173 | 6.48 | 4,268,168 | 67,195 | 6.31 | 4,947,675 | 81,012 | 6.50 | ||||||||||||||||||
| Loans held for sale | 6,054 | 97 | 6.36 | 8,431 | 128 | 6.10 | 9,268 | 147 | 6.29 | ||||||||||||||||||
| Nonmarketable equity securities | 29,215 | 530 | 7.20 | 30,285 | 534 | 7.07 | 38,559 | 715 | 7.36 | ||||||||||||||||||
| Total interest-earning assets | 6,200,069 | 93,223 | 5.97 | 6,032,515 | 88,384 | 5.88 | 6,413,066 | 98,702 | 6.11 | ||||||||||||||||||
| Noninterest-earning assets | 495,446 | 495,663 | 498,875 | ||||||||||||||||||||||||
| Total assets | $ | 6,695,515 | $ | 6,528,178 | $ | 6,911,941 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 4,720,701 | $ | 26,251 | 2.21 | % | $ | 4,512,697 | $ | 24,526 | 2.18 | % | $ | 4,644,455 | $ | 30,219 | 2.58 | % | |||||||||
| Short-term borrowings | 42,059 | 349 | 3.29 | 28,521 | 202 | 2.84 | 54,839 | 499 | 3.61 | ||||||||||||||||||
| FHLB advances & other borrowings | 221,217 | 2,165 | 3.88 | 249,044 | 2,349 | 3.78 | 386,772 | 4,044 | 4.15 | ||||||||||||||||||
| Subordinated debt | 27,032 | 380 | 5.58 | 27,027 | 380 | 5.64 | 77,210 | 1,393 | 7.16 | ||||||||||||||||||
| Trust preferred debentures | 52,316 | 1,154 | 8.75 | 52,128 | 1,131 | 8.70 | 51,602 | 1,221 | 9.39 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,063,325 | 30,299 | 2.37 | 4,869,417 | 28,588 | 2.35 | 5,214,878 | 37,376 | 2.84 | ||||||||||||||||||
| Noninterest-bearing deposits | 989,768 | 1,012,592 | 1,020,196 | ||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 75,440 | 84,416 | 100,436 | ||||||||||||||||||||||||
| Shareholders’ equity | 566,982 | 561,753 | 576,431 | ||||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,695,515 | $ | 6,528,178 | $ | 6,911,941 | |||||||||||||||||||||
| Net Interest Margin | $ | 62,924 | 4.03 | % | $ | 59,796 | 3.98 | % | $ | 61,326 | 3.79 | % | |||||||||||||||
| Cost of Deposits | 1.82 | % | 1.78 | % | 2.12 | % | |||||||||||||||||||||
(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 September 30, 2026, June 30, 2026, and September 30, 2025, 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 $23.2 million for the third quarter of 2026 compared to $23.8 million for the second quarter of 2026.
- Noninterest expense was $52.8 million for the third quarter of 2026 compared to $50.8 million for the second quarter of 2026, driven by an increase in variable compensation expense.
- Income tax expense was $6.6 million, resulting in an effective tax rate of 22.4% for the third quarter of 2026 compared to 22.9% and 33.2% for the second quarter of 2026 and third quarter of 2025, respectively. We currently expect our effective tax rate to be approximately 23% for the full year, subject to changes in earnings mix, state tax legislation, and other factors.
Continued Progress on Credit Quality
- Loans 30-89 days past due decreased to $9.1 million, or 0.21% of total loans, at September 30, 2026, compared to $11.0 million, or 0.26% of total loans, at June 30, 2026. Substandard accruing loans decreased by $0.4 million to $71.2 million at September 30, 2026.
- Nonperforming loans decreased to $58.7 million, or 1.37% of total loans, at September 30, 2026, compared to $60.9 million, or 1.43% of total loans, at June 30, 2026.
- Net charge-offs were $5.4 million for the third quarter of 2026, including $3.2 million of charge-offs on two previously identified nonperforming commercial real estate relationships in the Community Bank portfolio, partially offset by a $0.8 million recovery on the payoff of another previously identified nonperforming commercial real estate relationship.
- Provision for credit losses on loans was $3.7 million for the third quarter of 2026, reflecting improved credit quality metrics, including favorable past due and delinquency trends.
- Allowance for credit losses on loans was $60.9 million, or 1.42% of total loans, at September 30, 2026, compared to an allowance of $62.5 million, or 1.47% of total loans, at June 30, 2026.
The table below summarizes certain information regarding the Company’s loan portfolio asset quality for the periods presented.
| As of and for the Three Months Ended | ||||||||||||||||||||
| (dollars in thousands) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loans 30-89 days past due | $ | 9,103 | $ | 10,984 | $ | 20,266 | $ | 17,079 | $ | 26,019 | ||||||||||
| Nonperforming loans | 58,690 | 60,879 | 58,791 | 65,483 | 68,703 | |||||||||||||||
| Nonperforming assets | 58,870 | 61,235 | 59,305 | 66,089 | 70,369 | |||||||||||||||
| Substandard accruing loans | 71,168 | 71,526 | 91,963 | 76,000 | 78,901 | |||||||||||||||
| Net charge-offs | 5,352 | 12,465 | 6,747 | 43,492 | 12,309 | |||||||||||||||
| Loans 30-89 days past due to total loans | 0.21 | % | 0.26 | % | 0.47 | % | 0.39 | % | 0.53 | % | ||||||||||
| Nonperforming loans to total loans | 1.37 | % | 1.43 | % | 1.36 | % | 1.50 | % | 1.41 | % | ||||||||||
| Nonperforming assets to total assets | 0.86 | % | 0.91 | % | 0.91 | % | 1.01 | % | 1.02 | % | ||||||||||
| Allowance for credit losses to total loans | 1.42 | % | 1.47 | % | 1.56 | % | 1.59 | % | 2.07 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 103.68 | % | 102.69 | % | 115.45 | % | 105.71 | % | 146.84 | % | ||||||||||
| Net charge-offs to average loans (annualized) | 0.50 | % | 1.17 | % | 0.64 | % | 3.69 | % | 0.99 | % | ||||||||||
Capital
As previously announced, the Company’s board of directors authorized a share repurchase program, pursuant to which the Company is authorized to repurchase up to $45.0 million of its common stock through December 31, 2026. The Company repurchased $10.6 million of its common stock during year-to-date 2026, and approximately $24.8 million remained available under the program at September 30, 2026.
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, 2026 | ||||||||
| Midland States Bank | Midland States Bancorp, Inc. | Minimum Regulatory Requirements (2) | ||||||
| Total capital to risk-weighted assets | 14.52 | % | 15.60 | % | 10.50 | % | ||
| Tier 1 capital to risk-weighted assets | 13.27 | % | 13.82 | % | 8.50 | % | ||
| Common equity Tier 1 capital to risk-weighted assets | 13.27 | % | 10.36 | % | 7.00 | % | ||
| Tier 1 leverage ratio | 9.93 | % | 10.34 | % | 4.00 | % | ||
| Tangible common equity to tangible assets (1) | N/A | 5.97 | % | N/A | ||||
| As of June 30, 2026 | ||||||||
| Midland States Bank | Midland States Bancorp, Inc. | Minimum Regulatory Requirements (2) | ||||||
| Total capital to risk-weighted assets | 14.84 | % | 15.77 | % | 10.50 | % | ||
| Tier 1 capital to risk-weighted assets | 13.59 | % | 13.97 | % | 8.50 | % | ||
| Common equity Tier 1 capital to risk-weighted assets | 13.59 | % | 10.39 | % | 7.00 | % | ||
| Tier 1 leverage ratio | 10.08 | % | 10.37 | % | 4.00 | % | ||
| Tangible common equity to tangible assets (1) | N/A | 6.64 | % | N/A | ||||
(1) Non-GAAP financial measure. Refer to pages 10-12 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, 2026, the Company had total assets of approximately $6.82 billion, and its Wealth Management Group had assets under administration of approximately $4.77 billion. The Company provides a full range of commercial and consumer banking products and services, 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 calculated in accordance with GAAP.
These non-GAAP financial measures include “Adjusted pre-provision net revenue,” “Adjusted pre-provision net revenue to average assets,” “Adjusted earnings,” “Adjusted earnings available to common shareholders,” “Adjusted diluted earnings per common share,” “Return on average tangible common equity,” “Efficiency ratio,” “Tangible common equity to tangible assets,” “Tangible book value per share,” and “Tangible book value per share, excluding AOCI.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s profitability and asset profile, and that the tangible asset-based measures are commonly used by investors in evaluating value of financial institutions and their equity securities. 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, deposit volatility and potential regulatory developments; the performance of our loan portfolio and our ability to manage credit risk; changes in the financial markets; the effects of armed conflict, including the scope and duration of disruptions in global energy markets relating to war in the Middle East; changes in the business environment resulting from the adoption of artificial intelligence, including fraud and cybersecurity risk; operational risks, including with respect to fraud and information technology; changes in business plans as circumstances warrant; changes to U.S. and state 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, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, which are incorporated herein by reference. 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," “should,” "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 [email protected] or (217) 342-7321
Claire A. Stack, Chief Financial Officer, at [email protected] 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) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 99,612 | $ | 298,747 | $ | 113,658 | $ | 127,811 | $ | 166,147 | ||||||||||
| Investment securities | 1,909,021 | 1,657,313 | 1,596,220 | 1,527,236 | 1,383,121 | |||||||||||||||
| Loans | 4,282,828 | 4,243,704 | 4,338,573 | 4,352,004 | 4,867,587 | |||||||||||||||
| Allowance for credit losses on loans | (60,852 | ) | (62,519 | ) | (67,875 | ) | (69,219 | ) | (100,886 | ) | ||||||||||
| Total loans, net | 4,221,976 | 4,181,185 | 4,270,698 | 4,282,785 | 4,766,701 | |||||||||||||||
| Loans held for sale | 4,580 | 8,944 | 6,709 | 7,781 | 7,535 | |||||||||||||||
| Premises and equipment, net | 82,435 | 82,898 | 84,169 | 85,134 | 86,005 | |||||||||||||||
| Other real estate owned | 180 | 356 | 514 | 606 | 393 | |||||||||||||||
| Loan servicing rights, at lower of cost or fair value | 10,931 | 11,316 | 11,688 | 11,932 | 16,165 | |||||||||||||||
| Goodwill | 7,927 | 7,927 | 7,927 | 7,927 | 7,927 | |||||||||||||||
| Other intangible assets, net | 6,849 | 7,495 | 8,159 | 8,876 | 9,619 | |||||||||||||||
| Company-owned life insurance | 224,884 | 222,757 | 220,630 | 218,554 | 216,494 | |||||||||||||||
| Credit enhancement asset | 14,364 | 13,642 | 13,476 | 12,557 | 5,765 | |||||||||||||||
| Other assets | 234,083 | 208,036 | 214,115 | 222,221 | 245,643 | |||||||||||||||
| Total assets | $ | 6,816,842 | $ | 6,700,616 | $ | 6,547,963 | $ | 6,513,420 | $ | 6,911,515 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 973,388 | $ | 1,010,128 | $ | 1,013,808 | $ | 1,040,411 | $ | 1,015,930 | ||||||||||
| Interest-bearing deposits | 4,644,050 | 4,697,150 | 4,426,259 | 4,383,968 | 4,588,895 | |||||||||||||||
| Total deposits | 5,617,438 | 5,707,278 | 5,440,067 | 5,424,379 | 5,604,825 | |||||||||||||||
| Short-term borrowings | 151,499 | 7,645 | 153,425 | 60,181 | 146,766 | |||||||||||||||
| FHLB advances | 353,000 | 258,000 | 238,000 | 293,000 | 373,000 | |||||||||||||||
| Subordinated debt | 27,035 | 27,030 | 27,024 | 27,019 | 27,014 | |||||||||||||||
| Trust preferred debentures | 52,409 | 52,219 | 52,035 | 51,857 | 51,684 | |||||||||||||||
| Other liabilities | 84,094 | 78,756 | 78,458 | 91,485 | 124,225 | |||||||||||||||
| Total liabilities | 6,285,475 | 6,130,928 | 5,989,009 | 5,947,921 | 6,327,514 | |||||||||||||||
| Total shareholders’ equity | 531,367 | 569,688 | 558,954 | 565,499 | 584,001 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,816,842 | $ | 6,700,616 | $ | 6,547,963 | $ | 6,513,420 | $ | 6,911,515 | ||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
| (dollars in thousands, except per share data) | 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||
| Net interest income: | |||||||||||||||||||
| Interest income | $ | 93,021 | $ | 88,177 | $ | 86,022 | $ | 92,095 | $ | 98,493 | |||||||||
| Interest expense | 30,299 | 28,588 | 28,605 | 33,393 | 37,376 | ||||||||||||||
| Net interest income | 62,722 | 59,589 | 57,417 | 58,702 | 61,117 | ||||||||||||||
| Provision for credit losses: | |||||||||||||||||||
| Provision for credit losses on loans | 3,685 | 7,109 | 5,403 | 11,825 | 20,505 | ||||||||||||||
| Provision (recapture) of credit losses on unfunded commitments | 50 | (290 | ) | (400 | ) | (200 | ) | (500 | ) | ||||||||||
| Total provision for credit losses | 3,735 | 6,819 | 5,003 | 11,625 | 20,005 | ||||||||||||||
| Net interest income after provision for credit losses | 58,987 | 52,770 | 52,414 | 47,077 | 41,112 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||
| Wealth management revenue | 8,651 | 8,768 | 8,248 | 8,272 | 8,018 | ||||||||||||||
| Service charges on deposit accounts | 3,775 | 3,449 | 3,355 | 3,573 | 3,598 | ||||||||||||||
| Interchange revenue | 3,984 | 3,553 | 3,528 | 3,437 | 3,445 | ||||||||||||||
| Residential mortgage banking revenue | 216 | 686 | 626 | 690 | 735 | ||||||||||||||
| Income on company-owned life insurance | 1,828 | 2,127 | 2,076 | 2,060 | 2,102 | ||||||||||||||
| Gain (loss) on sales of investment securities, net | — | — | (1,731 | ) | — | 14 | |||||||||||||
| Credit enhancement income (loss) | 3,108 | 3,081 | 3,360 | 6,876 | (242 | ) | |||||||||||||
| Other income | 1,675 | 2,104 | 2,660 | 1,959 | 2,346 | ||||||||||||||
| Total noninterest income | 23,237 | 23,768 | 22,122 | 26,867 | 20,016 | ||||||||||||||
| Noninterest expense: | |||||||||||||||||||
| Salaries and employee benefits | 28,500 | 27,354 | 26,157 | 25,906 | 26,393 | ||||||||||||||
| Occupancy and equipment | 4,330 | 4,229 | 4,535 | 4,353 | 4,206 | ||||||||||||||
| Data processing | 6,871 | 6,994 | 7,065 | 6,834 | 7,186 | ||||||||||||||
| Professional services | 1,669 | 1,665 | 2,242 | 2,321 | 2,017 | ||||||||||||||
| Amortization of intangible assets | 646 | 664 | 717 | 743 | 743 | ||||||||||||||
| Loss on sale of loan portfolios | — | — | — | 23,051 | — | ||||||||||||||
| Impairment on leased assets and surrendered assets | — | — | — | 684 | — | ||||||||||||||
| FDIC insurance | 791 | 781 | 529 | 3,739 | 1,512 | ||||||||||||||
| Other expense | 10,036 | 9,068 | 9,179 | 9,561 | 7,757 | ||||||||||||||
| Total noninterest expense | 52,843 | 50,755 | 50,424 | 77,192 | 49,814 | ||||||||||||||
| Income (loss) before income taxes | 29,381 | 25,783 | 24,112 | (3,248 | ) | 11,314 | |||||||||||||
| Income tax expense (benefit) | 6,573 | 5,895 | 5,649 | (360 | ) | 3,757 | |||||||||||||
| Net income (loss) | 22,808 | 19,888 | 18,463 | (2,888 | ) | 7,557 | |||||||||||||
| Preferred stock dividends | 2,229 | 2,228 | 2,228 | 2,228 | 2,229 | ||||||||||||||
| Net income (loss) available to common shareholders | $ | 20,579 | $ | 17,660 | $ | 16,235 | $ | (5,116 | ) | $ | 5,328 | ||||||||
| Basic earnings (loss) per common share | $ | 0.95 | $ | 0.82 | $ | 0.74 | $ | (0.24 | ) | $ | 0.24 | ||||||||
| Diluted earnings (loss) per common share | $ | 0.95 | $ | 0.82 | $ | 0.74 | $ | (0.24 | ) | $ | 0.24 | ||||||||
| Weighted average common shares outstanding | 21,128,351 | 21,074,683 | 21,301,246 | 21,854,033 | 21,863,911 | ||||||||||||||
| Weighted average diluted common shares outstanding | 21,140,143 | 21,074,683 | 21,301,246 | 21,854,033 | 21,863,911 | ||||||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued) | |||||||||||||||
| As of | |||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||
| Loan Portfolio Mix | |||||||||||||||
| Commercial loans | $ | 1,183,813 | $ | 1,185,730 | $ | 1,216,511 | $ | 1,178,521 | $ | 1,476,533 | |||||
| Equipment finance leases | 30,339 | 37,086 | 43,803 | 50,981 | 310,983 | ||||||||||
| Total commercial loans and leases | 1,214,152 | 1,222,816 | 1,260,314 | 1,229,502 | 1,787,516 | ||||||||||
| Commercial real estate | 2,332,478 | 2,296,978 | 2,322,198 | 2,342,664 | 2,336,661 | ||||||||||
| Construction and land development | 249,268 | 243,840 | 276,469 | 286,140 | 260,073 | ||||||||||
| Residential real estate | 358,021 | 347,664 | 344,511 | 349,623 | 353,475 | ||||||||||
| Consumer | 128,909 | 132,406 | 135,081 | 144,075 | 129,862 | ||||||||||
| Total loans | $ | 4,282,828 | $ | 4,243,704 | $ | 4,338,573 | $ | 4,352,004 | $ | 4,867,587 | |||||
| Loan Portfolio Segment | |||||||||||||||
| Regions | |||||||||||||||
| Eastern | $ | 985,101 | $ | 978,944 | $ | 989,596 | $ | 972,031 | $ | 927,977 | |||||
| Northern | 782,911 | 771,844 | 758,815 | 711,702 | 724,695 | ||||||||||
| Southern | 664,770 | 700,937 | 713,592 | 729,368 | 725,892 | ||||||||||
| St. Louis | 994,197 | 951,505 | 934,974 | 915,126 | 896,005 | ||||||||||
| Total Community Bank | 3,426,979 | 3,403,230 | 3,396,977 | 3,328,227 | 3,274,569 | ||||||||||
| Specialty finance | 560,102 | 532,070 | 613,514 | 668,183 | 642,167 | ||||||||||
| Non-core loan program and other (1) | 295,747 | 308,404 | 328,082 | 355,594 | 950,851 | ||||||||||
| Total loans | $ | 4,282,828 | $ | 4,243,704 | $ | 4,338,573 | $ | 4,352,004 | $ | 4,867,587 | |||||
| Deposit Portfolio Mix | |||||||||||||||
| Noninterest-bearing demand | $ | 973,388 | $ | 1,010,128 | $ | 1,013,808 | $ | 1,040,411 | $ | 1,015,930 | |||||
| Interest-bearing: | |||||||||||||||
| Checking | 2,155,193 | 2,094,880 | 1,886,212 | 1,855,215 | 1,996,501 | ||||||||||
| Money market | 1,306,610 | 1,242,303 | 1,295,781 | 1,248,942 | 1,240,885 | ||||||||||
| Savings | 498,397 | 640,292 | 495,899 | 487,742 | 486,953 | ||||||||||
| Time | 666,749 | 694,642 | 723,055 | 748,942 | 804,740 | ||||||||||
| Brokered time | 17,101 | 25,033 | 25,312 | 43,127 | 59,816 | ||||||||||
| Total deposits | $ | 5,617,438 | $ | 5,707,278 | $ | 5,440,067 | $ | 5,424,379 | $ | 5,604,825 | |||||
| Deposit Portfolio by Channel | |||||||||||||||
| Retail | $ | 2,890,419 | $ | 3,003,073 | $ | 2,904,695 | $ | 2,823,064 | $ | 2,791,085 | |||||
| Commercial | 1,361,246 | 1,325,592 | 1,209,210 | 1,193,637 | 1,248,445 | ||||||||||
| Public Funds | 609,873 | 576,188 | 455,982 | 473,381 | 605,474 | ||||||||||
| Wealth & Trust | 249,209 | 243,549 | 242,977 | 265,747 | 263,765 | ||||||||||
| Servicing | 475,862 | 502,335 | 478,496 | 498,496 | 498,892 | ||||||||||
| Brokered Deposits | 17,106 | 25,033 | 125,949 | 143,192 | 167,228 | ||||||||||
| Other | 13,723 | 31,508 | 22,758 | 26,862 | 29,936 | ||||||||||
| Total deposits | $ | 5,617,438 | $ | 5,707,278 | $ | 5,440,067 | $ | 5,424,379 | $ | 5,604,825 | |||||
(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, and equipment financing loans and leases.
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Adjusted Earnings Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| (dollars in thousands, except per share data) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Income (loss) before income tax expense (benefit) - GAAP | $ | 29,381 | $ | 25,783 | $ | 24,112 | $ | (3,248 | ) | $ | 11,314 | |||||||||
| Adjustments to noninterest income: | ||||||||||||||||||||
| (Gain) loss on sales of investment securities, net | — | — | 1,731 | — | (14 | ) | ||||||||||||||
| Gain on sale of mortgage servicing rights | — | — | (2,077 | ) | — | — | ||||||||||||||
| (Gain) loss on limited partnership investments | (18 | ) | 176 | 1,689 | 134 | 315 | ||||||||||||||
| Total adjustments to noninterest income | (18 | ) | 176 | 1,343 | 134 | 301 | ||||||||||||||
| Adjustments to noninterest expense: | ||||||||||||||||||||
| Loss on sale of loan portfolios | — | — | — | (23,051 | ) | — | ||||||||||||||
| Total adjustments to noninterest expense | — | — | — | (23,051 | ) | — | ||||||||||||||
| Adjusted earnings pre-tax - non-GAAP | 29,363 | 25,959 | 25,455 | 19,937 | 11,615 | |||||||||||||||
| Adjusted earnings tax expense | 6,579 | 5,941 | 6,002 | 5,726 | 3,836 | |||||||||||||||
| Adjusted earnings - non-GAAP | 22,784 | 20,018 | 19,453 | 14,211 | 7,779 | |||||||||||||||
| Preferred stock dividends | 2,229 | 2,228 | 2,228 | 2,228 | 2,229 | |||||||||||||||
| Adjusted earnings available to common shareholders | $ | 20,555 | $ | 17,790 | $ | 17,225 | $ | 11,983 | $ | 5,550 | ||||||||||
| Adjusted diluted earnings per common share | $ | 0.95 | $ | 0.82 | $ | 0.79 | $ | 0.54 | $ | 0.25 | ||||||||||
| Adjusted Pre-Provision Net Revenue Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Adjusted earnings pre-tax - non-GAAP | $ | 29,363 | $ | 25,959 | $ | 25,455 | $ | 19,937 | $ | 11,615 | ||||||||||
| Provision for credit losses | 3,735 | 6,819 | 5,003 | 11,625 | 20,005 | |||||||||||||||
| Adjusted pre-provision net revenue | $ | 33,098 | $ | 32,778 | $ | 30,458 | $ | 31,562 | $ | 31,620 | ||||||||||
| Adjusted pre-provision net revenue to average assets (annualized) | 1.96 | % | 2.01 | % | 1.91 | % | 1.86 | % | 1.81 | % | ||||||||||
| Return on Average Tangible Common Equity | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Net income available to common shareholders | $ | 20,579 | $ | 17,660 | $ | 16,235 | $ | (5,116 | ) | $ | 5,328 | |||||||||
| Average total shareholders' equity—GAAP | $ | 566,982 | $ | 561,753 | $ | 569,482 | $ | 582,698 | $ | 576,431 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Preferred stock | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | ||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (7,927 | ) | (7,927 | ) | (7,927 | ) | ||||||||||
| Other intangible assets, net | (7,159 | ) | (7,813 | ) | (8,487 | ) | (9,320 | ) | (9,978 | ) | ||||||||||
| Average tangible common equity | $ | 441,348 | $ | 435,465 | $ | 442,520 | $ | 454,903 | $ | 447,978 | ||||||||||
| Return on average tangible common equity (annualized) | 18.50 | % | 16.27 | % | 14.88 | % | (4.46) % | 4.72 | % | |||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)(continued) | ||||||||||||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| (dollars in thousands) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Noninterest expense - GAAP | $ | 52,843 | $ | 50,755 | $ | 50,424 | $ | 77,192 | $ | 49,814 | ||||||||||
| Loss on sale of loan portfolios | — | — | — | (23,051 | ) | — | ||||||||||||||
| Adjusted noninterest expense | $ | 52,843 | $ | 50,755 | $ | 50,424 | $ | 54,141 | $ | 49,814 | ||||||||||
| Net interest income - GAAP | $ | 62,722 | $ | 59,589 | $ | 57,417 | $ | 58,702 | $ | 61,117 | ||||||||||
| Effect of tax-exempt income | 202 | 207 | 218 | 221 | 209 | |||||||||||||||
| Adjusted net interest income | 62,924 | 59,796 | 57,635 | 58,923 | 61,326 | |||||||||||||||
| Noninterest income - GAAP | 23,237 | 23,768 | 22,122 | 26,867 | 20,016 | |||||||||||||||
| (Gain) loss on sales of investment securities, net | — | — | 1,731 | — | (14 | ) | ||||||||||||||
| Gain on sale of mortgage servicing rights | — | — | (2,077 | ) | — | — | ||||||||||||||
| (Gain) loss on limited partnership investments | (18 | ) | 176 | 1,689 | 134 | 315 | ||||||||||||||
| Adjusted noninterest income | 23,219 | 23,944 | 23,465 | 27,001 | 20,317 | |||||||||||||||
| Adjusted total revenue | $ | 86,143 | $ | 83,740 | $ | 81,100 | $ | 85,924 | $ | 81,643 | ||||||||||
| Efficiency ratio | 61.34 | % | 60.61 | % | 62.17 | % | 63.01 | % | 61.01 | % | ||||||||||
| 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) | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Shareholders' Equity to Tangible Common Equity | ||||||||||||||||||||
| Total shareholders' equity—GAAP | $ | 531,367 | $ | 569,688 | $ | 558,954 | $ | 565,499 | $ | 584,001 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Preferred stock | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | ||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (7,927 | ) | (7,927 | ) | (7,927 | ) | ||||||||||
| Other intangible assets, net | (6,849 | ) | (7,495 | ) | (8,159 | ) | (8,876 | ) | (9,619 | ) | ||||||||||
| Tangible common equity | $ | 406,043 | $ | 443,718 | $ | 432,320 | $ | 438,148 | $ | 455,907 | ||||||||||
| Less: Accumulated other comprehensive loss (AOCI) | (122,197 | ) | (67,931 | ) | (69,582 | ) | (60,333 | ) | (62,966 | ) | ||||||||||
| Tangible common equity, excluding AOCI | $ | 528,240 | $ | 511,649 | $ | 501,902 | $ | 498,481 | $ | 518,873 | ||||||||||
| Total Assets to Tangible Assets: | ||||||||||||||||||||
| Total assets—GAAP | $ | 6,816,842 | $ | 6,700,616 | $ | 6,547,963 | $ | 6,513,420 | $ | 6,911,515 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (7,927 | ) | (7,927 | ) | (7,927 | ) | ||||||||||
| Other intangible assets, net | (6,849 | ) | (7,495 | ) | (8,159 | ) | (8,876 | ) | (9,619 | ) | ||||||||||
| Tangible assets | $ | 6,802,066 | $ | 6,685,194 | $ | 6,531,877 | $ | 6,496,617 | $ | 6,893,969 | ||||||||||
| Common Shares Outstanding | 20,801,859 | 20,725,814 | 20,813,975 | 21,169,854 | 21,543,557 | |||||||||||||||
| Tangible Common Equity to Tangible Assets | 5.97 | % | 6.64 | % | 6.62 | % | 6.74 | % | 6.61 | % | ||||||||||
| Tangible Book Value Per Share | $ | 19.52 | $ | 21.41 | $ | 20.77 | $ | 20.70 | $ | 21.16 | ||||||||||
| Tangible Book Value Per Share, excluding AOCI | $ | 25.39 | $ | 24.69 | $ | 24.11 | $ | 23.55 | $ | 24.08 | ||||||||||
A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/b44a02c8-6774-4b9a-85d3-b36bef4cca8a