msbi-20240725

EXHIBIT 99.1

Midland States Bancorp, Inc. Announces 2024 Second Quarter Results

Second Quarter 2024 Highlights:

•Net income available to common shareholders of $4.5 million, or $0.20 per diluted share

•Adjusted pre-tax, pre-provision earnings of $25.2 million

•Tangible book value per share decreased to $23.36, compared to $23.44 at March 31, 2024

•Common equity tier 1 capital ratio improved to 8.63% from 8.60%

•Net interest margin of 3.12%, compared to 3.18% in prior quarter

•Efficiency ratio of 65.2%, compared to 58.0% in prior quarter

Effingham, IL, July 25, 2024 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $4.5 million, or $0.20 per diluted share, for the second quarter of 2024, compared to $11.7 million, or $0.53 per diluted share, for the first quarter of 2024. This also compares to net income available to common shareholders of $19.3 million, or $0.86 per diluted share, for the second quarter of 2023.

Provision expense was $16.8 million in the second quarter of 2024 compared to $14.0 million and $5.9 million in the first quarter of 2024 and the second quarter of 2023, respectively. The provision expense in the second quarter of 2024 included provision for credit losses on loans of $17.0 million, offset by a $0.2 million benefit related to unfunded commitments. The elevated loan provision in the second quarter of 2024 was primarily due to credit deterioration and servicing issues involving one of our fintech partners, LendingPoint, subsequent to their system conversion in late 2023. The provision expense for the first quarter of 2024 included a specific reserve of $8.0 million on a multi-family construction project.

Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We continued to execute well on our strategic priorities during the second quarter and our balance sheet management strategies resulted in further increases in our capital ratios. We are continuing to address credit risk in our loan portfolios, including the relationship with Lending Point, by prudently increasing our loan loss reserves with a focus on reducing problem assets. Our emphasis on our community bank and local markets has led to another good quarter of generating high quality, in-market loans with full banking relationships, which are partially funded by the continued intentional reduction of our equipment finance and consumer portfolios. In particular, we are seeing good results from the investments we have made to increase our presence and business development efforts in the St. Louis market, where our loan balances increased at an annualized rate of 31% during the second quarter.

“We continue to benefit from the strength of the franchise we have built to attract high quality banking talent across the organization. We recently added a new market president for our Northern Illinois region and a new Chief Deposit Officer, who we expect to positively impact our treasury management services and our ability to add new commercial deposit relationships. We are also continuing to invest in our Wealth Management business to improve our ability to cross-sell this service to our community bank clients. We believe the banking talent we are adding will further enhance our efforts to expand our market

share within our community bank. Our successful efforts in this area are resulting in a favorable shift in the mix of our loan portfolio; moving towards a higher quality portfolio and expanded banking relationships with both loans and deposits. We expect to make continued progress on this strategic priority over the remainder of the year, which we believe will further enhance the value of our franchise,” said Mr. Ludwig.

Balance Sheet Highlights

Total assets were $7.76 billion at June 30, 2024, compared to $7.83 billion at March 31, 2024, and $8.03 billion at June 30, 2023. At June 30, 2024, portfolio loans were $5.85 billion, compared to $5.96 billion at March 31, 2024, and $6.37 billion at June 30, 2023.

Loans

During the second quarter of 2024, outstanding loans declined by $106.5 million, or 1.8%, from March 31, 2024, as the Company continued to shrink its equipment financing and consumer loan portfolios, and focus on commercial loan opportunities in our community bank footprint. Increases in commercial, commercial real estate, and construction and land development loans of $25.9 million, $24.4 million and $2.4 million, respectively, were offset by decreases in all other loan categories.

Equipment finance loan and lease balances decreased $59.9 million during the second quarter of 2024 as the Company continued to reduce its concentration of this product within the overall loan portfolio. Consumer loans decreased $91.1 million due to loan payoffs and a cessation in loans originated through GreenSky. Our Greensky-originated loan balances decreased $67.7 million during the second quarter to $538.3 million at June 30, 2024. In addition, as previously disclosed, during the fourth quarter of 2023, the Company ceased originating loans through LendingPoint. As of June 30, 2024, the Company had $114.2 million in loans that were originated through and serviced by LendingPoint. Equipment financing and consumer loans comprised 15.2% and 12.7%, respectively, of the loan portfolio at June 30, 2024, compared to 15.9% and 14.0%, respectively, at March 31, 2024.


	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(in thousands)	2024		2024		2023		2023		2023
Loan Portfolio
Commercial loans	$	939,458	$	913,564	$	951,387	$	943,761	$	962,756
Equipment finance loans	461,409		494,068		531,143		578,931		614,633
Equipment finance leases	428,659		455,879		473,350		485,460		500,485
Commercial FHA warehouse lines	—		8,035		—		48,547		30,522
Total commercial loans and leases	1,829,526		1,871,546		1,955,880		2,056,699		2,108,396
Commercial real estate	2,421,505		2,397,113		2,406,845		2,412,164		2,443,995
Construction and land development	476,528		474,128		452,593		416,801		366,631
Residential real estate	378,393		378,583		380,583		375,211		371,486
Consumer	746,042		837,092		935,178		1,020,008		1,076,836
Total loans	$	5,851,994	$	5,958,462	$	6,131,079	$	6,280,883	$	6,367,344

Loan Quality

Overall, credit quality metrics declined this quarter compared to the first quarter of 2024. Non-performing loans increased $7.1 million to $112.1 million at June 30, 2024, compared to $105.0 million as of March

31, 2024. A $3.6 million commercial loan and $4.7 million of equipment financing loans account for the increase.


	As of and for the Three Months Ended
(in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023
Asset Quality
Loans 30-89 days past due	$	54,045		$	58,854		$	82,778		$	46,608		$	44,161
Nonperforming loans	112,124			104,979			56,351			55,981			54,844
Nonperforming assets	123,774			116,721			67,701			58,677			57,688
Substandard loans	135,555			149,049			184,224			143,793			130,707
Net charge-offs	2,874			4,445			5,117			3,449			2,996
Loans 30-89 days past due to total loans	0.92		%	0.99		%	1.35		%	0.74		%	0.69		%
Nonperforming loans to total loans	1.92		%	1.76		%	0.92		%	0.89		%	0.86		%
Nonperforming assets to total assets	1.60		%	1.49		%	0.86		%	0.74		%	0.72		%
Allowance for credit losses to total loans	1.58		%	1.31		%	1.12		%	1.06		%	1.02		%
Allowance for credit losses to nonperforming loans	82.22		%	74.35		%	121.56		%	119.09		%	118.43		%
Net charge-offs to average loans	0.20		%	0.30		%	0.33		%	0.22		%	0.19		%

The Company continued to increase its allowance for credit losses on loans during the second quarter of 2024. Notably, the Company recognized provision expense of $14.0 million this quarter related to the loans originated and serviced by LendingPoint, increasing the allowance to $14.6 million on this portfolio. Credit deterioration and servicing issues following their system conversion have resulted in increased losses within this portfolio. At June 30, 2024, loans serviced by LendingPoint totaled $114.2 million.

The allowance for credit losses on loans totaled $92.2 million at June 30, 2024, compared to $78.1 million at March 31, 2024, and $65.0 million at June 30, 2023. The allowance as a percentage of portfolio loans was 1.58% at June 30, 2024, compared to 1.31% at March 31, 2024, and 1.02% at June 30, 2023.

Deposits

Total deposits were $6.12 billion at June 30, 2024, compared with $6.32 billion at March 31, 2024. Noninterest-bearing deposits decreased $103.9 million to $1.11 billion at June 30, 2024, while interest-bearing deposits decreased $102.1 million to $5.01 billion at June 30, 2024. Brokered time deposits decreased $56.8 million to $131.4 million, and represented 2.15% of total deposits at June 30, 2024.


	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(in thousands)	2024		2024		2023		2023		2023
Deposit Portfolio
Noninterest-bearing demand	$	1,108,521	$	1,212,382	$	1,145,395	$	1,154,515	$	1,162,909
Interest-bearing:
Checking	2,343,533		2,394,163		2,511,840		2,572,224		2,499,693
Money market	1,143,668		1,128,463		1,135,629		1,090,962		1,226,470
Savings	538,462		555,552		559,267		582,359		624,005
Time	852,415		845,190		862,865		885,858		840,734
Brokered time	131,424		188,234		94,533		119,084		72,737
Total deposits	$	6,118,023	$	6,323,984	$	6,309,529	$	6,405,002	$	6,426,548

Results of Operations Highlights

Net Interest Income and Margin

During the second quarter of 2024, net interest income, on a tax-equivalent basis, totaled $55.2 million, a decrease of $0.9 million, or 1.6%, compared to $56.1 million for the first quarter of 2024. The tax-equivalent net interest margin for the second quarter of 2024 was 3.12%, compared with 3.18% in the first quarter of 2024. Net interest income and net interest margin, on a tax-equivalent basis, were $59.0 million and 3.23%, respectively, in the second quarter of 2023. The decline in both the net interest income and margin were largely attributable to increased market interest rates resulting in a faster increase in the cost of funding liabilities than the yield on earning assets, as well as the impact of interest reversals on loans placed on non-accrual.

Average interest-earning assets for the second quarter of 2024 were $7.13 billion, compared to $7.11 billion for the first quarter of 2024. The yield increased 8 basis points to 5.84% compared to the first quarter of 2024. Interest-earning assets averaged $7.33 billion for the second quarter of 2023.

Average loans were $5.92 billion for the second quarter of 2024, compared to $6.01 billion for the first quarter of 2024 and $6.36 billion for the second quarter of 2023. The yield on loans was 6.03% for the second quarter of 2024, up from 5.99% for the first quarter of 2024 and 5.80% for the second quarter of 2023.

Investment securities averaged $1.10 billion for the second quarter of 2024, and yielded 4.69%, compared to an average balance and yield of $988.7 million and 4.36%, respectively, for the first quarter of 2024. The Company purchased additional higher-yielding investments resulting in the increased average balance and yield. Investment securities averaged $861.4 million for the second quarter of 2023.

Average interest-bearing deposits were $5.10 billion for the second quarter of 2024, compared to $5.20 billion for the first quarter of 2024, and $5.26 billion for the second quarter of 2023. Cost of interest-bearing deposits was 3.11% in the second quarter of 2024, which represented a 7 basis point increase from the first quarter of 2024. A competitive market, driven by rising interest rates and increased competition, contributed to the increase in deposit costs.


	For the Three Months Ended
(dollars in thousands)	June 30, 2024						March 31, 2024						June 30, 2023
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	$	65,250	$	875	5.40	%	$	69,316	$	951	5.52	%	$	67,377	$	852	5.07	%
Investment securities(1)	1,098,452		12,805		4.69		988,716		10,708		4.36		861,409		7,286		3.39
Loans(1)(2)	5,915,523		88,738		6.03		6,012,032		89,489		5.99		6,356,012		91,890		5.80
Loans held for sale	4,910		84		6.84		3,405		55		6.56		4,067		59		5.79
Nonmarketable equity securities	44,216		963		8.76		35,927		687		7.69		45,028		599		5.33
Total interest-earning assets	7,128,351		103,465		5.84		7,109,396		101,890		5.76		7,333,893		100,686		5.51
Noninterest-earning assets	669,370						671,671						612,238
Total assets	$	7,797,721					$	7,781,067					$	7,946,131

Interest-Bearing Liabilities
Interest-bearing deposits	$	5,101,365	$	39,476	3.11	%	$	5,195,118	$	39,214	3.04	%	$	5,259,188	$	33,617	2.56	%
Short-term borrowings	30,449		308		4.07		65,182		836		5.16		22,018		14		0.26
FHLB advances & other borrowings	500,758		5,836		4.69		313,121		3,036		3.90		471,989		5,396		4.59
Subordinated debt	93,090		1,265		5.47		93,583		1,280		5.50		97,278		1,335		5.51
Trust preferred debentures	50,921		1,358		10.73		50,707		1,389		11.02		50,218		1,289		10.29
Total interest-bearing liabilities	5,776,583		48,243		3.36		5,717,711		45,755		3.22		5,900,691		41,651		2.83
Noninterest-bearing deposits	1,132,451						1,151,542						1,187,584
Other noninterest-bearing liabilities	104,841						121,908						81,065
Shareholders’ equity	783,846						789,906						776,791
Total liabilities and shareholder’s equity	$	7,797,721					$	7,781,067					$	7,946,131

Net Interest Margin			$	55,222	3.12	%			$	56,135	3.18	%			$	59,035	3.23	%

Cost of Deposits					2.55	%					2.49	%					2.09	%

(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 June 30, 2024, March 31, 2024 and June 30, 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 six months ended June 30, 2024, net interest income, on a tax-equivalent basis, decreased to $111.4 million, with a tax-equivalent net interest margin of 3.15%, compared to net interest income, on a tax-equivalent basis, of $119.8 million, and a tax-equivalent net interest margin of 3.31% for the six months ended June 30, 2023.

The yield on earning assets increased 37 basis points to 5.80% for the six months ended June 30, 2024 compared to the prior year. However, the cost of interest-bearing liabilities increased at a faster rate during this period, increasing 64 basis points to 3.29% for the six months ended June 30, 2024.


	For the Six Months Ended
(dollars in thousands)	June 30, 2024						June 30, 2023
Interest-earning assets	Average Balance		Interest & Fees		Yield/Rate		Average Balance		Interest & Fees		Yield/Rate
Cash and cash equivalents	$	67,283	$	1,826	5.46	%	$	76,201	$	1,832	4.85	%
Investment securities(1)	1,043,585		23,513		4.53		835,771		13,281		3.18
Loans(1)(2)	5,963,777		178,226		6.01		6,338,305		179,887		5.72
Loans held for sale	4,157		139		6.72		2,794		75		5.42
Nonmarketable equity securities	40,072		1,650		8.28		46,416		1,394		6.05
Total interest-earning assets	7,118,874		205,354		5.80		7,299,487		196,469		5.43
Noninterest-earning assets	669,370						611,528
Total assets	$	7,788,244					$	7,911,015

Interest-Bearing Liabilities
Interest-bearing deposits	$	5,148,242	$	78,690	3.07	%	$	5,157,148	$	60,022	2.35	%
Short-term borrowings	47,815		1,144		4.81		30,291		39		0.26
FHLB advances & other borrowings	406,940		8,872		4.38		505,945		11,402		4.54
Subordinated debt	93,337		2,545		5.45		98,538		2,705		5.54
Trust preferred debentures	50,814		2,747		10.87		50,133		2,518		10.13
Total interest-bearing liabilities	5,747,148		93,998		3.29		5,842,055		76,686		2.65
Noninterest-bearing deposits	1,141,996						1,219,050
Other noninterest-bearing liabilities	112,223						77,895
Shareholders’ equity	786,877						772,015
Total liabilities and shareholders’ equity	$	7,788,244					$	7,911,015

Net Interest Margin			$	111,356	3.15	%			$	119,783	3.31	%

Cost of Deposits					2.52	%					1.90	%

(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 $0.4 million for each of the six months ended June 30, 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 $17.7 million for the second quarter of 2024, compared to $21.2 million for the first quarter of 2024. Noninterest income for the second quarter of 2024 included a $0.2 million gain on the repurchase of subordinated debt, offset by $0.2 million of net losses on the sale of investment securities. Noninterest income for the first quarter of 2024 included incremental servicing revenues of $3.7 million related to the Greensky portfolio. The second quarter of 2023 included an $0.8 million gain on the sale of OREO and a $0.7 million gain on the repurchase of subordinated debt, partially offset by $0.9 million of net losses on the sale of investment securities. Excluding these transactions, noninterest

income for the second quarter of 2024, the first quarter of 2024, and the second quarter of 2023 was $17.6 million, $17.5 million, and $18.1 million, respectively.


	For the Three Months Ended						For the Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
(in thousands)	2024		2024		2023		2024		2023
Noninterest income
Wealth management revenue	$	6,801	$	7,132	$	6,269	$	13,933	$	12,680
Service charges on deposit accounts	3,121		3,116		2,677		6,237		5,245
Interchange revenue	3,563		3,358		3,696		6,921		7,108
Residential mortgage banking revenue	557		527		540		1,084		945
Income on company-owned life insurance	1,925		1,801		891		3,726		1,767

Loss on sales of investment securities, net	(152)		—		(869)		(152)		(1,517)






Other income	1,841		5,253		5,549		7,094		8,304
Total noninterest income	$	17,656	$	21,187	$	18,753	$	38,843	$	34,532

Wealth management revenue totaled $6.8 million in the second quarter of 2024, a decrease of $0.3 million, or 4.6%, as compared to the first quarter of 2024, due to the seasonal impact of tax planning fees in the first quarter. Assets under administration increased to $4.00 billion at June 30, 2024 from $3.89 billion at March 31, 2024, primarily due to improved sales activity. Assets under administration totaled $3.59 billion at June 30, 2023.

Noninterest Expense

Noninterest expense was $47.5 million in the second quarter of 2024, compared to $44.9 million in the first quarter of 2024 and $42.9 million in the second quarter of 2023. Noninterest expense for the second quarter of 2024 included $4.1 million of aggregate expenses related to OREO impairment and property taxes, and accruals related to various legal actions. Excluding these transactions, noninterest expense for the second quarter of 2024, the first quarter of 2024, and the second quarter of 2023 was $43.4 million, $44.9 million, and $42.9 million, respectively. The efficiency ratio increased to 65.16% for the quarter ended June 30, 2024, compared to 58.03% for the quarter ended March 31, 2024, and 55.01% for the quarter ended June 30, 2023.


	For the Three Months Ended						For the Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
(in thousands)	2024		2024		2023		2024		2023
Noninterest expense
Salaries and employee benefits	$	22,872	$	24,102	$	22,857	$	46,974	$	47,100
Occupancy and equipment	3,964		4,142		3,879		8,106		8,322
Data processing	7,205		6,722		6,544		13,927		12,855
Professional services	2,243		2,255		1,663		4,498		3,423
Amortization of intangible assets	1,016		1,089		1,208		2,105		2,499







FDIC insurance	1,219		1,274		1,196		2,493		2,525


Other expense	8,960		5,283		5,547		14,243		10,652
Total noninterest expense	$	47,479	$	44,867	$	42,894	$	92,346	$	87,376

Income Tax Expense

Income tax expense was $1.7 million for the second quarter of 2024, compared to $4.4 million for the first quarter of 2024 and $7.2 million for the second quarter of 2023. The resulting effective tax rates were 19.9%, 23.9% and 25.1%, respectively.

Capital

At June 30, 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 June 30, 2024
	Midland States Bank	Midland States Bancorp, Inc.	Minimum Regulatory Requirements (2)
Total capital to risk-weighted assets	13.06%	13.94%	10.50%
Tier 1 capital to risk-weighted assets	11.69%	11.21%	8.50%
Tier 1 leverage ratio	10.26%	9.84%	4.00%
Common equity Tier 1 capital	11.69%	8.63%	7.00%
Tangible common equity to tangible assets (1)	N/A	6.59%	N/A

(1) A non-GAAP financial measure. Refer to page 15 for a reconciliation to the comparable GAAP financial measure.

(2) Includes the capital conservation buffer of 2.5%, as applicable.

The impact of rising interest rates on the Company’s investment portfolio and cash flow hedges resulted in an $82.6 million accumulated other comprehensive loss at June 30, 2024, which reduced tangible book value by $3.86 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 is authorized to repurchase up to $25.0 million of common stock through December 31, 2024. During the second quarter of 2024, the Company repurchased 131,372 shares of its common stock at a weighted average price of $22.84 under its stock repurchase program.

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 June 30, 2024, the Company had total assets of approximately $7.76 billion, and its Wealth Management Group had assets under administration of approximately $4.00 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 [email protected] or (217) 342-7321

Eric T. Lemke, Chief Financial Officer, at [email protected] or (217) 342-7321

Douglas J. Tucker, SVP and Corporate Counsel, at [email protected] 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 Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(dollars in thousands, except per share data)	2024			2024			2023			2024			2023
Earnings Summary
Net interest income	$	55,052		$	55,920		$	58,840		$	110,972		$	119,344
Provision for credit losses	16,800			14,000			5,879			30,800			9,014
Noninterest income	17,656			21,187			18,753			38,843			34,532
Noninterest expense	47,479			44,867			42,894			92,346			87,376
Income before income taxes	8,429			18,240			28,820			26,669			57,486
Income taxes	1,679			4,355			7,245			6,034			14,139
Net income	6,750			13,885			21,575			20,635			43,347
Preferred dividends	2,228			2,228			2,228			4,456			4,456
Net income available to common shareholders	$	4,522		$	11,657		$	19,347		$	16,179		$	38,891

Diluted earnings per common share	$	0.20		$	0.53		$	0.86		$	0.73		$	1.72
Weighted average common shares outstanding - diluted	21,734,849			21,787,691			22,205,079			21,761,492			22,348,981
Return on average assets	0.35		%	0.72		%	1.09		%	0.53		%	1.10		%
Return on average shareholders' equity	3.46		%	7.07		%	11.14		%	5.27		%	11.32		%
Return on average tangible common equity (1)	3.66		%	9.34		%	15.99		%	6.51		%	16.34		%
Net interest margin	3.12		%	3.18		%	3.23		%	3.15		%	3.31		%
Efficiency ratio (1)	65.16		%	58.03		%	55.01		%	61.49		%	56.31		%

Adjusted Earnings Performance Summary (1)
Adjusted earnings available to common shareholders	$	4,511		$	11,657		$	19,488		$	16,168		$	39,505
Adjusted diluted earnings per common share	$	0.20		$	0.53		$	0.87		$	0.73		$	1.75
Adjusted return on average assets	0.35		%	0.72		%	1.10		%	0.53		%	1.12		%
Adjusted return on average shareholders' equity	3.46		%	7.07		%	11.21		%	5.27		%	11.48		%
Adjusted return on average tangible common equity	3.65		%	9.34		%	16.10		%	6.51		%	16.60		%
Adjusted pre-tax, pre-provision earnings	$	25,214		$	32,240		$	34,892		$	57,454		$	67,341
Adjusted pre-tax, pre-provision return on average assets	1.30		%	1.67		%	1.76		%	1.48		%	1.72		%

Market Data
Book value per share at period end	$	31.59		$	31.67		$	30.49
Tangible book value per share at period end (1)	$	23.36		$	23.44		$	22.24
Tangible book value per share excluding accumulated other comprehensive income at period end (1)	$	27.22		$	27.23		$	26.11
Market price at period end	$	22.65		$	25.13		$	19.91
Common shares outstanding at period end	21,377,215			21,485,231			21,854,800

Capital
Total capital to risk-weighted assets	13.94		%	13.68		%	12.65		%
Tier 1 capital to risk-weighted assets	11.21		%	11.16		%	10.47		%
Tier 1 common capital to risk-weighted assets	8.63		%	8.60		%	8.03		%
Tier 1 leverage ratio	9.84		%	9.92		%	9.57		%
Tangible common equity to tangible assets (1)	6.59		%	6.58		%	6.19		%

Wealth Management
Trust assets under administration	$	3,996,175		$	3,888,219		$	3,594,727

(1) Non-GAAP financial measures. Refer to pages 13 - 15 for a reconciliation to the comparable GAAP financial measures.


MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(in thousands)	2024		2024		2023		2023		2023
Assets
Cash and cash equivalents	$	124,646	$	167,316	$	135,061	$	132,132	$	160,695
Investment securities	1,099,654		1,044,900		920,396		839,344		887,003
Loans	5,851,994		5,958,462		6,131,079		6,280,883		6,367,344
Allowance for credit losses on loans	(92,183)		(78,057)		(68,502)		(66,669)		(64,950)
Total loans, net	5,759,811		5,880,405		6,062,577		6,214,214		6,302,394
Loans held for sale	5,555		5,043		3,811		6,089		5,632
Premises and equipment, net	83,040		81,831		82,814		82,741		81,006
Other real estate owned	8,304		8,920		9,112		480		202
Loan servicing rights, at lower of cost or fair value	18,902		19,577		20,253		20,933		21,611

Goodwill	161,904		161,904		161,904		161,904		161,904
Other intangible assets, net	14,003		15,019		16,108		17,238		18,367
Company-owned life insurance	207,211		205,286		203,485		201,750		152,210



Other assets	274,244		241,608		251,347		292,460		243,697
Total assets	$	7,757,274	$	7,831,809	$	7,866,868	$	7,969,285	$	8,034,721

Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	1,108,521	$	1,212,382	$	1,145,395	$	1,154,515	$	1,162,909
Interest-bearing deposits	5,009,502		5,111,602		5,164,134		5,250,487		5,263,639
Total deposits	6,118,023		6,323,984		6,309,529		6,405,002		6,426,548
Short-term borrowings	7,208		214,446		34,865		17,998		21,783
FHLB advances and other borrowings	600,000		255,000		476,000		538,000		575,000
Subordinated debt	91,656		93,617		93,546		93,475		93,404
Trust preferred debentures	50,921		50,790		50,616		50,457		50,296


Other liabilities	103,694		102,966		110,459		106,743		90,869
Total liabilities	6,971,502		7,040,803		7,075,015		7,211,675		7,257,900
Total shareholders’ equity	785,772		791,006		791,853		757,610		776,821
Total liabilities and shareholders’ equity	$	7,757,274	$	7,831,809	$	7,866,868	$	7,969,285	$	8,034,721


MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	For the Three Months Ended						For the Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
(in thousands, except per share data)	2024		2024		2023		2024		2023
Net interest income:
Interest income	$	103,295	$	101,675	$	100,491	$	204,970	$	196,030
Interest expense	48,243		45,755		41,651		93,998		76,686
Net interest income	55,052		55,920		58,840		110,972		119,344

Provision for credit losses on loans	17,000		14,000		5,879		31,000		9,014
Provision for credit losses on unfunded commitments	(200)		—		—		(200)		—

Total provision for credit losses	16,800		14,000		5,879		30,800		9,014
Net interest income after provision for credit losses	38,252		41,920		52,961		80,172		110,330
Noninterest income:
Wealth management revenue	6,801		7,132		6,269		13,933		12,680
Service charges on deposit accounts	3,121		3,116		2,677		6,237		5,245
Interchange revenue	3,563		3,358		3,696		6,921		7,108
Residential mortgage banking revenue	557		527		540		1,084		945
Income on company-owned life insurance	1,925		1,801		891		3,726		1,767

Loss on sales of investment securities, net	(152)		—		(869)		(152)		(1,517)






Other income	1,841		5,253		5,549		7,094		8,304
Total noninterest income	17,656		21,187		18,753		38,843		34,532
Noninterest expense:
Salaries and employee benefits	22,872		24,102		22,857		46,974		47,100
Occupancy and equipment	3,964		4,142		3,879		8,106		8,322
Data processing	7,205		6,722		6,544		13,927		12,855
Professional services	2,243		2,255		1,663		4,498		3,423
Amortization of intangible assets	1,016		1,089		1,208		2,105		2,499







FDIC insurance	1,219		1,274		1,196		2,493		2,525


Other expense	8,960		5,283		5,547		14,243		10,652
Total noninterest expense	47,479		44,867		42,894		92,346		87,376
Income before income taxes	8,429		18,240		28,820		26,669		57,486
Income taxes	1,679		4,355		7,245		6,034		14,139
Net income	6,750		13,885		21,575		20,635		43,347
Preferred stock dividends	2,228		2,228		2,228		4,456		4,456
Net income available to common shareholders	$	4,522	$	11,657	$	19,347	$	16,179	$	38,891

Basic earnings per common share	$	0.20	$	0.53	$	0.86	$	0.73	$	1.72
Diluted earnings per common share	$	0.20	$	0.53	$	0.86	$	0.73	$	1.72


MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)

Adjusted Earnings Reconciliation

	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(dollars in thousands, except per share data)	2024			2024			2023			2024			2023
Income before income taxes - GAAP	$	8,429		$	18,240		$	28,820		$	26,669		$	57,486
Adjustments to noninterest income:
Loss on sales of investment securities, net	152			—			869			152			1,517


(Gain) on repurchase of subordinated debt	(167)			—			(676)			(167)			(676)



Total adjustments to noninterest income	(15)			—			193			(15)			841







Adjusted earnings pre tax - non-GAAP	8,414			18,240			29,013			26,654			58,327
Adjusted earnings tax	1,675			4,355			7,297			6,030			14,366
Adjusted earnings - non-GAAP	6,739			13,885			21,716			20,624			43,961
Preferred stock dividends	2,228			2,228			2,228			4,456			4,456
Adjusted earnings available to common shareholders	$	4,511		$	11,657		$	19,488		$	16,168		$	39,505
Adjusted diluted earnings per common share	$	0.20		$	0.53		$	0.87		$	0.73		$	1.75
Adjusted return on average assets	0.35		%	0.72		%	1.10		%	0.53		%	1.12		%
Adjusted return on average shareholders' equity	3.46		%	7.07		%	11.21		%	5.27		%	11.48		%
Adjusted return on average tangible common equity	3.65		%	9.34		%	16.10		%	6.51		%	16.60		%



Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation

	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(dollars in thousands)	2024			2024			2023			2024			2023
Adjusted earnings pre tax - non-GAAP	$	8,414		$	18,240		$	29,013		$	26,654		$	58,327
Provision for credit losses	16,800			14,000			5,879			30,800			9,014

Adjusted pre-tax, pre-provision earnings - non-GAAP	$	25,214		$	32,240		$	34,892		$	57,454		$	67,341
Adjusted pre-tax, pre-provision return on average assets	1.30		%	1.67		%	1.76		%	1.48		%	1.72		%


MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)

Efficiency Ratio Reconciliation

	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(dollars in thousands)	2024			2024			2023			2024			2023
Noninterest expense - GAAP	$	47,479		$	44,867		$	42,894		$	92,346		$	87,376






Net interest income - GAAP	$	55,052		$	55,920		$	58,840		$	110,972		$	119,344
Effect of tax-exempt income	170			215			195			384			439
Adjusted net interest income	55,222			56,135			59,035			111,356			119,783

Noninterest income - GAAP	17,656			21,187			18,753			38,843			34,532

Loss on sales of investment securities, net	152			—			869			152			1,517

(Gain) on repurchase of subordinated debt	(167)			—			(676)			(167)			(676)



Adjusted noninterest income	17,641			21,187			18,946			38,828			35,373

Adjusted total revenue	$	72,863		$	77,322		$	77,981		$	150,184		$	155,156

Efficiency ratio	65.16		%	58.03		%	55.01		%	61.49		%	56.31		%

Return on Average Tangible Common Equity (ROATCE)

	For the Three Months Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(dollars in thousands)	2024			2024			2023			2024			2023
Net income available to common shareholders	$	4,522		$	11,657		$	19,347		$	16,179		$	38,891

Average total shareholders' equity—GAAP	$	783,846		$	789,906		$	776,791		$	786,877		$	772,015
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	(14,483)			(15,525)			(18,937)			(15,004)			(19,557)
Average tangible common equity	$	496,911		$	501,929		$	485,402		$	499,421		$	480,006
ROATCE	3.66		%	9.34		%	15.99		%	6.51		%	16.34		%


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
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)	2024			2024			2023			2023			2023
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity—GAAP	$	785,772		$	791,006		$	791,853		$	757,610		$	776,821
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	(14,003)			(15,019)			(16,108)			(17,238)			(18,367)
Tangible common equity	499,317			503,535			503,293			467,920			486,002

Less: Accumulated other comprehensive loss (AOCI)	(82,581)			(81,419)			(76,753)			(101,181)			(84,719)
Tangible common equity excluding AOCI	$	581,898		$	584,954		$	580,046		$	569,101		$	570,721

Total Assets to Tangible Assets:
Total assets—GAAP	$	7,757,274		$	7,831,809		$	7,866,868		$	7,969,285		$	8,034,721
Adjustments:
Goodwill	(161,904)			(161,904)			(161,904)			(161,904)			(161,904)
Other intangible assets, net	(14,003)			(15,019)			(16,108)			(17,238)			(18,367)
Tangible assets	$	7,581,367		$	7,654,886		$	7,688,856		$	7,790,143		$	7,854,450

Common Shares Outstanding	21,377,215			21,485,231			21,551,402			21,594,546			21,854,800

Tangible Common Equity to Tangible Assets	6.59		%	6.58		%	6.55		%	6.01		%	6.19		%
Tangible Book Value Per Share	$	23.36		$	23.44		$	23.35		$	21.67		$	22.24
Tangible Book Value Per Share, excluding AOCI	$	27.22		$	27.23		$	26.91		$	26.35		$	26.11

1 Midland States Bancorp, Inc. NASDAQ: MSBI Second Quarter 2024 Earnings Presentation

22 Forward-Looking Statements. This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements expressing management’s current expectations, forecasts of future events or long-term goals may be based upon beliefs, expectations and assumptions of the Company’s management, and are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. All statements in this presentation speak only as of the date they are made, and the Company undertakes no obligation to update any statement. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements including changes in interest rates and other general economic, business and political conditions, the impact of inflation, increased deposit volatility and potential regulatory developments. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning the Company and its businesses, including additional factors that could materially affect the Company’s financial results, are included in the Company’s filings with the Securities and Exchange Commission. Use of Non-GAAP Financial Measures. This presentation may contain certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“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 that these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliations of these non-GAAP measures are provided in the Appendix section of this presentation.

33 Company Snapshot Financial Highlights as of June 30, 2024 $7.8 Billion Total Assets $5.9 Billion Total Loans $6.1 Billion Total Deposits $4.0 Billion Assets Under Administration YTD Adjusted ROAA(1): 0.53% YTD Adjusted Return on TCE(1): 6.51% TCE/TA: 6.59% YTD PTPP(1) ROAA: 1.48% Dividend Yield: 5.47% Price/Tangible Book: 0.97x Price/LTM EPS: 11.4x Notes: (1) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix. Founded in 1881, this Illinois state- chartered community bank focuses on in-market relationships while having national diversification through equipment finance. • 53 Branches in Illinois and Missouri • 16 successful acquisitions since 2008

4 Overview of 2Q24 Financial Performance Continued Success in Balance Sheet Management Strategies Successfully Growing Community Bank Continued Investments in Talent and Technology 4 • Net income available to common shareholders of $4.5 million, or $0.20 diluted EPS • Pre-tax, pre-provision earnings(1) of $25.2 million • Strong noninterest income of $17.7 million • Strengthened ACL to 1.58% of total loans • Increases in capital ratios • CET1 ratio increased 3 bps to 8.63% • Runoff in non-core loan portfolios being used to fund new loan production and purchase of higher-yielding investment securities • Another good quarter of business development in community bank with full banking relationships added with high quality in-market clients • Community bank loans increased by $91 million during 2Q24, offset by intentional reduction of equipment finance and consumer portfolios • Loan portfolio continues to shift towards core in-market C&I and CRE loans resulting in higher quality loan portfolio • Strength of franchise allowing Midland to continue attracting high quality banking talent including new market president for Northern Illinois region and new Chief Deposit Officer • New technology platform in Wealth Management will enhance ability to cross-sell to community bank clients • New talent and technology investments expected to drive profitable growth and further enhance the value of Midland franchise Notes: (1) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.

5 Loan Portfolio 5 • Total loans decreased $106.5 million from prior quarter to $5.85 billion • Decrease primarily driven by decline in equipment finance portfolio of $59.9 million and continued runoff of GreenSky portfolio of $67.7 million • Decrease in non-core portfolios partially offset by new loan production from high quality commercial clients that provide full banking relationships • Investments made to increase business development efforts in St. Louis resulted in total loans increasing at an annualized rate of 31% during 2Q24 in this market • Runoff from GreenSky portfolio rotated into investment portfolio Loan Portfolio Mix (in millions, as of quarter-end) 2Q 2024 1Q 2024 2Q 2023 Commercial loans and leases $ 1,829 $ 1,872 $ 2,108 Commercial real estate 2,422 2,397 2,444 Construction and land development 477 474 367 Residential real estate 378 378 371 Consumer 746 837 1,077 Total Loans $ 5,852 $ 5,958 $ 6,367 Total Loans ex. Commercial FHA Lines $ 5,852 $ 5,950 $ 6,337 $6,367 $6,281 $6,131 $5,958 $5,852 5.80% 5.93% 6.00% 5.99% 6.03% Total Loans Average Loan Yield 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Total Loans and Average Loan Yield (in millions, as of quarter-end)

6 Loan Segments 6 • Total loans in our Community Bank increased $91 million from prior quarter to $3.13 billion • Loans in St. Louis region increased $59 million or 31% annualized in 2Q24 • Focused on core, in-market loan relationships • Continuing to add talent in faster growing markets to drive quality loan relationships and commercial deposits Loan Portfolio Segments (in millions, as of quarter-end) 2Q 2024 1Q 2024 2Q 2023 Regions: Eastern $ 884 $ 897 $ 860 Northern 725 692 721 Southern 700 688 696 St. Louis 825 766 687 Community Bank $ 3,134 $ 3,043 $ 2,964 Other: Specialty Finance $ 1,093 $ 1,142 $ 1,216 Equipment Finance 890 950 1,115 BaaS(1) 735 823 1,072 Total Loans $ 5,852 $ 5,958 $ 6,367 Loan Segment Mix Community Bank, 53.6% Specialty Finance, 18.7% Equipment Finance, 15.2% BaaS, 12.6% Notes: (1) includes loans originated through Greensky and LendingPoint relationships

7 Total Deposits 7 • Total deposits decreased $206.0 million from end of prior quarter, primarily due to decreases in noninterest-bearing demand and brokered time • Deposit outflows primarily related to some larger commercial depositors moving funds into higher interest account including Midland's Wealth Management business and declines in brokered time • Average balances of non-interest bearing demand deposits declined $19 million compared to prior quarter • Brokered time deposits decreased $57 million from prior quarter as maturities were not replaced Deposit Mix (in millions, as of quarter-end) 2Q 2024 1Q 2024 2Q 2023 Noninterest-bearing demand $ 1,109 $ 1,212 $ 1,163 Interest-bearing: Checking 2,344 2,394 2,500 Money market 1,144 1,128 1,226 Savings 538 556 624 Time 852 845 841 Brokered time 131 188 73 Total Deposits $ 6,118 $ 6,324 $ 6,427 $6,427 $6,405 $6,310 $6,324 $6,118 2.09% 2.32% 2.41% 2.49% 2.55% Total Deposits Cost of Deposits 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Total Deposits and Cost of Deposits (in millions, as of quarter-end)

8 Deposit Summary as of June 30, 2024 8 Deposits by Channel (in millions, as of quarter-end) 2Q 2024 1Q 2024 2Q 2023 Retail $ 2,742 $ 2,768 $ 2,780 Commercial 1,217 1,388 1,298 Public Funds 569 516 578 Wealth & Trust 299 324 329 Servicing 932 901 1,018 Brokered Deposits 239 309 270 Other 120 118 154 Total Deposits $ 6,118 $ 6,324 $ 6,427 $6,427 $6,405 $6,310 $6,324 $6,118 Retail Commercial Public Funds Wealth & Trust Servicing Brokered Deposits Other 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 • Commercial deposits decreased $171 million over prior quarter • Four large commercial customers decreased deposit balances by $120 million in 2Q24 with approximately $88 million moving to our Wealth business line • Retail deposit balances decreased $26 million in 2Q24 primarily due to decreased in average balances in interest bearing checking accounts • Total brokered deposits including money market accounts and time decreased $70 million in 2Q24 Trend of Deposit Channel Mix (in millions, as of quarter-end)

9 0.3% 4.6% 64.3% 7.9% 6.0% 7.8% 9.1% Treasuries US GSE & US Agency MBS - agency MBS - non agency State & Muni Corporate Other Investment Portfolio As of June 30, 2024 9 Fair Value of Investments by Type • All Investments are classified as Available for Sale • Average T/E Yield is 4.69% for 2Q24 • Average Duration is 4.76 years • Purchased $151 million with T/E Yield of 5.96% and sold $48 million with T/E Yield of 4.50% in 2Q24 Investments by Yield and DurationInvestment Mix & Unrealized Gain (Loss) (in millions) Fair Value Book Value Unrealized Gain (Loss) Treasuries $ 3 $ 3 $ — US GSE & US Agency 51 52 (1) MBS - agency 704 790 (86) MBS - non agency 86 89 (3) State & Municipal 66 73 (7) Corporate 85 93 (8) Other 100 100 — Total Investments $ 1,095 $ 1,202 $ (107) Duration Y ie ld -1 0 1 2 3 4 5 6 7 8 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% $1.10 billion

10 Liquidity Overview 10 Liquidity Sources (in millions) June 30, 2024 March 31, 2024 Cash and Cash Equivalents $ 124.6 $ 167.3 Unpledged Securities 527.3 506.2 FHLB Committed Liquidity 797.1 1,167.4 FRB Discount Window Availability 610.3 613.3 Total Estimated Liquidity $ 2,059.4 $ 2,454.1 Conditional Funding Based on Market Conditions Additional Credit Facility $ 409.0 $ 431.0 Brokered CDs (additional capacity) $ 450.0 $ 400.0

11 3.23% 3.20% 3.21% 3.18% 3.12% 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $58.8 $58.6 $58.1 $55.9 $55.1 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Net Interest Income/Margin 11 • Net interest income down slightly from prior quarter due to higher average FHLB borrowings • Net interest margin decreased 6bp to 3.12% as the increase in the cost of deposits exceeded the increase in the average yield on earning assets, as well as the impact of interest reversals on loans placed on non-accrual • Average rate on new and renewed loan originations was 7.67% in 2Q24 and higher than average rates on loan payoffs making them accretive to net interest margin Net Interest Income (in millions) Net Interest Margin

12 Loans & Securities - Repricing and Maturity 12 Total Loans and Leases (net of unearned income)(1) (in millions) As of June 30, 2024 Repricing Term Rate Structure 3 mos or less 3-12 mos 1-3 years 3-5 years 5-10 years 10-15 years Over 15 years Total Floating Rate Adjustable Rate Fixed Rate Commercial loans and leases $ 725 $ 272 $ 542 $ 217 $ 39 $ 4 $ 30 $ 1,829 $ 585 $ 74 $ 1,170 Commercial real estate 733 371 686 409 156 18 49 2,422 542 232 1,648 Construction and land development 237 94 101 18 — — 27 477 272 29 176 Residential real estate 73 54 78 63 83 20 7 378 54 114 210 Consumer 167 168 393 12 6 — — 746 97 — 649 Total $ 1,935 $ 959 $ 1,800 $ 719 $ 284 $ 42 $ 113 $ 5,852 $ 1,550 $ 449 $ 3,853 % of Total 33 % 16 % 31 % 12 % 5 % 1 % 2 % 100 % 26 % 8 % 66 % Weighted Average Rate 7.69 % 5.75 % 5.24 % 5.61 % 4.63 % 3.83 % 0.19 % (2) 6.04 % 8.17 % 4.82 % 5.33 % Investment Securities Available for Sale(3) (in millions) As of June 30, 2024 Maturity & Projected Cash Flow Distribution 1 year or less 1-3 years 3-5 years 5-10 years Over 10 years Total Amortized Cost $ 182 $ 170 $ 188 $ 337 $ 325 $ 1,202 % of Total 15 % 14 % 16 % 28 % 27 % 100 % Notes: (1) Based on projected principal payments for all loans plus the next reset for floating and adjustable rate loans and the maturity date of fixed rate loans. (2) Over 15 years category includes all nonaccrual loans and leases. (3) Projected principal cash flows for securities. Differences between amortized cost and total principal are included in Over 10 years.

13 Wealth Management 13 • Assets under administration increased $212 million mainly due to new accounts • New accounts include commercial customers moving funds of approximately $88 million to Wealth for higher rate and other options • Wealth Management fees decreased from prior quarter due to seasonal impact of tax planning fees in 1Q24 • New technology launched in 2Q24 that integrates Wealth Management data into mobile banking app that is expected to positively impact cross-selling to community bank clients • Continual hiring of wealth advisors positively impacting new business development Assets Under Administration (in millions) $3,595 $3,501 $3,733 $3,888 $3,996 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 $6.27 $6.29 $6.60 $7.13 $6.80 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Wealth Management Revenue (in millions)

14 $18.8 $11.5 $20.5 $21.2 $17.7 Wealth Management Interchange Service Charges on Deposits Residential Mortgage All Other 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Noninterest Income 14 • Noninterest income decreased from prior quarter primarily due to 1Q24 incremental servicing revenues of $3.7 million related to the Greensky portfolio • 2Q24 noninterest income included a $0.2 million gain on the repurchase of subordinated debt, offset by $0.2 million of losses on the sale of investment securities • Other income negatively impacted by losses on sale of repossessed and other equipment of $0.6 million in the current quarter • Fee income expected to be $18.0 - $18.5 million in the near-term quarters Noninterest Income (in millions)

15 $42.9 $42.0 $44.5 $44.9 $47.5 55.0% 55.8% 55.2% 58.0% 65.2% Total Noninterest Expense Efficiency Ratio 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 Noninterest Expense and Operating Efficiency 15 Noninterest Expense and Efficiency Ratio (1) (Noninterest expense in millions) • Efficiency Ratio (1) was 65.2% in 2Q 2024 vs. 58.0% in 1Q 2024 • Increase in noninterest expense from prior quarter primarily attributable to $4.1 million related to OREO expense and various legal actions • Compensation and benefits decreased $1.2 million compared to prior quarter due to reduced incentive compensation accruals • Near-term operating expense run- rate expected to be approximately $45.5 - $46.5 million Notes: (1) Represents a non-GAAP financial measure. See “Non-GAAP Reconciliation” in the appendix.

16 Asset Quality 16 • Nonperforming loans increased due to equipment financing loans and one $3.5 million commercial loan placed on non-accrual • Past due loans and substandard loans declined during the second quarter • Net charge-offs to average loans was 0.20% primarily driven by equipment finance with provision for credit losses on loans of $17.0 million, primarily related to reserves added to the LendingPoint portfolio resulting from credit deterioration and servicing issues • Net charge offs include $2.2 million recovery on previously charged off CRE loan Nonperforming Loans / Total Loans (Total Loans as of quarter-end) NCO / Average Loans 0.75% 0.69% 0.68% 1.49% 1.58%0.11% 0.20% 0.24% 0.27% 0.34% 0.86% 0.89% 0.92% 1.76% 1.92% All other Equipment Finance 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 0.10% 0.08% 0.07% 0.05% (0.06)% 0.09% 0.14% 0.26% 0.25% 0.26% 0.19% 0.22% 0.33% 0.30% 0.20% All other Equipment Finance 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024

17 $78,057 $193 $15,264 $(1,331) $92,183 ACL March 31, 2024 Specific Reserves Portfolio Changes Economic Factors ACL June 30, 2024 Changes in Allowance for Credit Losses 17 ($ in thousands) ▪ Changes to specific reserves ▪ Changes in Loans ▪ Changes in Credit quality including risk rating ▪ Changes in portfolio mix ▪ Aging of existing portfolio ▪ Other charge-offs and recoveries ▪ Reserves added to the LendingPoint portfolio resulting from credit deterioration and servicing issues ▪ Change to macro- economic variables and forecasts ▪ Changes to other economic qualitative factors

18 ACL by Portfolio 18 ($ in thousands) June 30, 2024 March 31, 2024 Portfolio Loans ACL % of Total Loans Loans ACL % of Total Loans Commercial $ 829,888 $ 8,821 1.06 % $ 813,963 $ 9,135 1.12 % Commercial Other 570,979 15,426 2.70 % 601,704 12,194 2.03 % Equipment Finance Loans 461,409 11,839 2.57 % 494,068 11,806 2.39 % Equipment Finance Leases 428,659 13,288 3.10 % 455,879 13,466 2.95 % CRE non-owner occupied 1,621,102 13,949 0.86 % 1,591,455 13,353 0.84 % CRE owner occupied 438,117 5,286 1.21 % 450,149 4,858 1.08 % Multi-family 293,863 2,636 0.90 % 287,586 2,871 1.00 % Farmland 68,423 326 0.48 % 67,923 285 0.42 % Construction and Land Development 476,528 12,966 2.72 % 474,128 12,629 2.66 % Residential RE First Lien 315,039 4,616 1.47 % 316,310 4,986 1.58 % Other Residential 63,354 577 0.91 % 62,273 669 1.07 % Consumer 94,763 499 0.53 % 99,157 520 0.52 % Consumer Other(1) 651,279 13,793 2.12 % 737,935 3,091 0.42 % Total Loans $ 5,851,994 $ 92,183 1.58 % $ 5,958,462 $ 78,057 1.31 % Loans (excluding BaaS portfolio(1) and warehouse lines) 5,125,723 74,815 1.46 % 5,136,557 74,587 1.45 % Notes: (1) Primarily consists of loans originated through GreenSky and LendingPoint relationships

19 2024 Outlook and Priorities 19 • Well positioned with increased levels of capital, liquidity, and reserves • Prudent risk management will remain top priority while economic uncertainty remains with business development efforts focused on adding new commercial and retail deposit relationships throughout our markets • Capitalizing on market disruption resulting from M&A to add new clients and banking talent • Strong financial performance and prudent balance sheet management should lead to further increases in capital ratios • Loan pipeline remains steady and new loan production within the community bank will continue to partially offset the runoff from the GreenSky portfolio and continued intentional reduction of the equipment finance portfolio • Neutral interest rate sensitivity positions Midland well for managing future changes in interest rates • Maintain disciplined expense management while also investing in areas that will enhance the long- term value of the franchise * Improvements in technology platform and additional advisors positively impacting business development in Wealth Management * Expanded presence in higher growth St. Louis market including the addition of a new market president resulting in new commercial, retail and wealth management clients * Banking-as-a-Service initiative expected to start making a contribution to deposit gathering and fee income during 2024

20 APPENDIX 20

2121 Industries as a percentage of Commercial, CRE and Equipment Finance Loans and Leases with outstanding balances of $4.73 billion as of 6/30/2024 ($s in millions) RE/Rental & Leasing $1,692.4 35.8% All Others $568.2 12.0% Skilled Nursing $403.1 8.5% Construction - General $303.1 6.4% Manufacturing $225.1 4.8% Finance and Insurance $259.0 5.5% Accommodation & Food Svcs $263.6 5.6% Trans./Ground Passenger $179.2 3.8% Assisted Living $103.9 2.2% Ag., Forestry, & Fishing $140.7 3.0% General Freight Trucking $180.6 3.8% Retail Trade $178.9 3.8% Wholesale Trade $59.2 1.3% Other Services $102.9 2.2% Commercial Loans and Leases by Industry Health Care $67.8 1.4%

22 Commercial Real Estate Portfolio by Collateral Type 22 CRE Concentration (as of June 30, 2024) CRE as a % of Total Loans 49.5% CRE as a % of Total Risk-Based Capital (1) 264.4% Notes: (1) Represents non-owner occupied CRE loans only Collateral type as a percentage of the Commercial Real Estate and Construction Portfolio with outstanding balances of $2.90 billion as of June 30, 2024 ($s in millions) Skilled Nursing $408.7 14.1% Retail $470.7 16.2% Multi-Family $547.8 18.9% Industrial/Warehouse $219.9 7.6% Assisted Living $124.7 4.3% Hotel/Motel $201.3 6.9% All Other $150.9 5.2% Office $152.6 5.3% Farmland $68.3 2.4% Residential 1-4 Family $89.9 3.1% Raw Land $21.9 0.8% Restaurant $30.9 1.1% Mixed Use/Other $112.8 3.9% Medical Building $95.6 3.3% Special Purpose $122.8 4.2% C-Store/Gas Station $79.2 2.7%

23 Capital Ratios and Strategy 23 • Capital initiatives increased CET1 to 8.63% from 7.77% at December 31, 2022 with limited buybacks below TBV • Internal capital generated from strong profitability and slower balance sheet growth expected to raise TCE ratio to 7.00%-7.75% by the end of 2024 • Capital actions and strong profitability expected to enable MSBI to raise capital ratios while maintaining current dividend payout Capital Strategy Capital Ratios (as of June 30, 2024) 6.59% 8.63% 9.84% 11.21% 13.94% 11.69% 10.26% 11.69% 13.06% Consolidated Bank Level TCE/TA Common Eq. Tier 1 Tier 1 Leverage Tier 1 RBC Total RBC

2424 MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Tangible Book Value Per Share For the Year Ended (dollars in thousands, except per share data) 2018 2019 2020 2021 2022 2023 Shareholders' Equity to Tangible Common Equity Total shareholders' equity—GAAP $ 608,525 $ 661,911 $ 621,391 $ 663,837 $ 758,574 $ 791,853 Adjustments: Preferred Stock (2,781) — — — (110,548) (110,548) Goodwill (164,673) (171,758) (161,904) (161,904) (161,904) (161,904) Other intangible assets, net (37,376) (34,886) (28,382) (24,374) (20,866) (16,108) Tangible common equity 403,695 455,267 431,105 477,559 465,256 503,293 Less: Accumulated other comprehensive income (AOCI) (2,108) 7,442 11,431 5,237 (83,797) (76,753) Tangible common equity excluding AOCI $ 405,803 $ 447,825 $ 419,674 $ 472,322 $ 549,053 $ 580,046 Common Shares Outstanding 23,751,798 24,420,345 22,325,471 22,050,537 22,214,913 21,551,402 Tangible Book Value Per Share $ 17.00 $ 18.64 $ 19.31 $ 21.66 $ 20.94 $ 23.35 Tangible Book Value Per Share excluding AOCI $ 17.09 $ 18.34 $ 18.80 $ 21.42 $ 24.72 $ 26.91

2525 MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For The Year Ended (dollars in thousands, except per share data) 2018 2019 2020 2021 2022 2023 Income before income taxes - GAAP $ 50,805 $ 72,471 $ 32,014 $ 99,112 $ 129,838 $ 107,573 Adjustments to noninterest income: (Gain) loss on sales of investment securities, net (464) (674) (1,721) (537) 230 9,372 (Gain) on termination of hedged interest rate swaps — — — (2,159) (17,531) — (Gain) on sale of Visa B shares — — — — — (1,098) (Gain) on repurchase of subordinated debt — — — — — (676) Other income (89) 29 17 (48) — — Total adjustments to noninterest income (553) (645) (1,704) (2,744) (17,301) 7,598 Adjustments to noninterest expense: Impairment related to facilities optimization — (3,577) (12,847) — — — (Loss) gain on mortgage servicing rights held for sale (458) 490 (1,692) (222) (3,250) — FHLB advances prepayment fees — — (4,872) (8,536) — — Loss on repurchase of subordinated debt — (1,778) (193) — — — Integration and acquisition expenses (24,015) (5,493) (2,309) (4,356) (347) — Total adjustments to noninterest expense (24,473) (10,358) (21,913) (13,114) (3,597) — Adjusted earnings pre tax - non-GAAP 74,725 82,184 52,223 109,482 116,134 115,171 Adjusted earnings tax 17,962 19,358 12,040 26,261 27,113 29,682 Adjusted earnings - non-GAAP 56,763 62,826 40,183 83,221 89,021 85,489 Preferred stock dividends, net 141 46 — — 3,169 8,913 Adjusted earnings available to common shareholders $ 56,622 $ 62,780 $ 40,183 $ 83,221 $ 85,852 $ 76,576 Adjusted diluted earnings per common share $ 2.39 $ 2.54 $ 1.70 $ 3.65 $ 3.79 $ 3.42 Adjusted return on average tangible common equity 15.00 % 14.44 % 9.24 % 18.33 % 18.59 % 15.98 %

2626 MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For The Quarter Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2024 2024 2023 2023 2023 Income before income taxes - GAAP $ 8,429 $ 18,240 $ 27,152 $ 22,935 $ 28,820 Adjustments to noninterest income: Loss on sales of investment securities, net 152 — 2,894 4,961 869 (Gain) on sale of Visa B shares — — (1,098) — — (Gain) on repurchase of subordinated debt (167) — — — (676) Total adjustments to noninterest income (15) — 1,796 4,961 193 Adjusted earnings pre tax - non-GAAP 8,414 18,240 28,948 27,896 29,013 Adjusted earnings tax 1,675 4,355 6,927 8,389 7,297 Adjusted earnings - non-GAAP 6,739 13,885 22,021 19,507 21,716 Preferred stock dividends 2,228 2,228 2,228 2,229 2,228 Adjusted earnings available to common shareholders $ 4,511 $ 11,657 $ 19,793 $ 17,278 $ 19,488 Adjusted diluted earnings per common share $ 0.20 $ 0.53 $ 0.89 $ 0.78 $ 0.87 Adjusted return on average assets 0.35 % 0.72 % 1.11 % 0.98 % 1.10 % Adjusted return on average shareholders' equity 3.46 % 7.07 % 11.42 % 10.03 % 11.21 % Adjusted return on average tangible common equity 3.65 % 9.34 % 16.51 % 14.24 % 16.10 % Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation For the Quarter Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2024 2024 2023 2023 2023 Adjusted earnings pre tax - non-GAAP $ 8,414 $ 18,240 $ 28,948 $ 27,896 $ 29,013 Provision for credit losses 16,800 14,000 6,950 5,168 5,879 Adjusted pre-tax, pre-provision earnings - non-GAAP $ 25,214 $ 32,240 $ 35,898 $ 33,064 $ 34,892 Adjusted pre-tax, pre-provision return on average assets 1.30 % 1.67 % 1.80 % 1.66 % 1.76 %

2727 MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) Efficiency Ratio Reconciliation For the Quarter Ended June 30, March 31, December 31, September 30, June 30, 2024 2024 2023 2023 2023 (dollars in thousands) Noninterest expense - GAAP $ 47,479 $ 44,867 $ 44,488 $ 42,038 $ 42,894 Loss on mortgage servicing rights held for sale — — — — — Adjusted noninterest expense $ 47,479 $ 44,867 $ 44,488 $ 42,038 $ 42,894 Net interest income - GAAP $ 55,052 $ 55,920 $ 58,077 $ 58,596 $ 58,840 Effect of tax-exempt income 170 215 183 205 195 Adjusted net interest income 55,222 56,135 58,260 58,801 59,035 Noninterest income - GAAP 17,656 21,187 20,513 11,545 18,753 Loss on sales of investment securities, net 152 — 2,894 4,961 869 (Gain) on sale of Visa B shares — — (1,098) — — (Gain) on repurchase of subordinated debt (167) — — — (676) Adjusted noninterest income 17,641 21,187 22,309 16,506 18,946 Adjusted total revenue $ 72,863 $ 77,322 $ 80,569 $ 75,307 $ 77,981 Efficiency ratio 65.16 % 58.03 % 55.22 % 55.82 % 55.01 %

2828 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 June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2024 2024 2023 2023 2023 Shareholders' Equity to Tangible Common Equity Total shareholders' equity—GAAP $ 785,772 $ 791,006 $ 791,853 $ 757,610 $ 776,821 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 (14,003) (15,019) (16,108) (17,238) (18,367) Tangible common equity $ 499,317 $ 503,535 $ 503,293 $ 467,920 $ 486,002 Less: Accumulated other comprehensive income (AOCI) (82,581) (81,419) (76,753) (101,181) (84,719) Tangible common equity excluding AOCI $ 581,898 $ 584,954 $ 580,046 $ 569,101 $ 570,721 Total Assets to Tangible Assets: Total assets—GAAP $ 7,757,274 $ 7,831,809 $ 7,866,868 $ 7,969,285 $ 8,034,721 Adjustments: Goodwill (161,904) (161,904) (161,904) (161,904) (161,904) Other intangible assets, net (14,003) (15,019) (16,108) (17,238) (18,367) Tangible assets $ 7,581,367 $ 7,654,886 $ 7,688,856 $ 7,790,143 $ 7,854,450 Common Shares Outstanding 21,377,215 21,485,231 21,551,402 21,594,546 21,854,800 Tangible Common Equity to Tangible Assets 6.59 % 6.58 % 6.55 % 6.01 % 6.19 % Tangible Book Value Per Share $ 23.36 $ 23.44 $ 23.35 $ 21.67 $ 22.24 Tangible Book Value Per Share, excluding AOCI $ 27.22 $ 27.23 $ 26.91 $ 26.35 $ 26.11 Return on Average Tangible Common Equity (ROATCE) For the Quarter Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2024 2024 2023 2023 2023 Net income available to common shareholders $ 4,522 $ 11,657 $ 18,483 $ 9,173 $ 19,347 Average total shareholders' equity—GAAP $ 783,846 $ 789,906 $ 764,790 $ 771,625 $ 776,791 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 (14,483) (15,525) (16,644) (17,782) (18,937) Average tangible common equity $ 496,911 $ 501,929 $ 475,694 $ 481,391 $ 485,402 ROATCE 3.66 % 9.34 % 15.41 % 7.56 % 15.99 %


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	MSBI	The Nasdaq Market LLC
Depositary Shares, each representing a 1/40th interest in a share of 7.75% fixed rate reset non-cumulative perpetual preferred stock, Series A, $2.00 par value	MSBIP	The Nasdaq Market LLC


Exhibit No.						Description
99.1						Press Release of Midland States Bancorp, Inc., dated July 25, 2024
99.2						Slide Presentation of Midland States Bancorp, Inc. regarding second quarter 2024 financial results
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


Date: July 25, 2024	By:	/s/ Eric T. Lemke
		Eric T. Lemke
		Chief Financial Officer


1201 Network Centre Drive
Effingham, Illinois 62401
(Address of Principal Executive Offices) (Zip Code)