Midland States Bancorp, Inc. Announces 2025 Fourth Quarter Results

Press Releases Investor Calendar Webcasts and Presentations << Back Press Release EFFINGHAM, Ill., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported a net loss available to common shareholders of $5.1 million, or $0.24 per diluted share, for the fourth quarter of 2025, compared to net income available to common shareholders of $5.3 million, or $0.24 per diluted share, for the third quarter of 2025. This also compares to a net loss of $33.0 million, or $1.52 per diluted share, for the fourth quarter of 2024. Financial results for the fourth quarter of 2025 included the previously announced loss on the sale of substantially all of the Company’s equipment finance portfolio of $21.4 million, in addition to a $1.6 million loss on the sale of a small consumer loan portfolio. Excluding these transactions, adjusted earnings available to common shareholders were $11.9 million, or $0.53 per diluted share, for the fourth quarter of 2025. The Company also recognized additional credit enhancement income of $6.6 million during the fourth quarter of 2025 resulting from contractual changes in its third-party lending and servicing arrangements, which was partially offset by $1.7 million in additional FDIC assessments related to prior years’ amended call reports due to the restatements of prior years’ financial statements. 2025 Fourth Quarter Results Net loss available to common shareholders of $5.1 million, or $0.24 per diluted share; Adjusted earnings available to common shareholders of $11.9 million, or $0.53 per diluted share Sale of substantially all of the equipment finance portfolio for $21.4 million loss Adjusted pre-provision net revenue of $31.4 million, or $1.44 per diluted share, compared to $31.3 million, or $1.43 per diluted share, for the third quarter of 2025 Net interest margin of 3.74% compared to 3.79% in the prior quarter, which included interest recoveries of $1.6 million Ratio of nonperforming assets to total assets of 1.02%, consistent with the prior quarter Total capital to risk-weighted assets of 15.16% and common equity tier 1 capital of 9.89% Provision for credit losses on loans was $11.8 million for the fourth quarter of 2025, compared to $20.5 million for the third quarter of 2025 Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig: “Entering 2025, improving credit quality was our number one priority and throughout the year, we took significant steps to reduce our risk in the loan portfolio and strengthen our balance sheet. We have significantly enhanced our credit talent, culture, and underwriting standards in 2025, and while non-performing assets remain above our 0.75% target, we believe the actions taken in 2025 position us well for continued improvement. We accomplished this without raising any additional capital while also continuing to invest in our core businesses. “Our capital position improved, with the common equity tier 1 capital ratio rising to 9.89% and approaching our 10.0% target. With the Company’s shares trading near tangible book value during the quarter, we repurchased $9.6 million of common stock. “Revenue trends remained positive in the fourth quarter, highlighted by a strong net interest margin and roughly 6.5% annualized loan growth in our Community Bank. Also, our wealth management business posted another record quarter. We continue to invest in these businesses and expect solid momentum to continue in 2026.” Key Points for Fourth Quarter and Outlook Sale of substantially all of the equipment finance portfolio; Continuation of credit clean-up As previously announced, the Company sold substantially all of its equipment finance loan and lease portfolio during the fourth quarter of 2025, resulting in a loss on sale of $21.4 million. Nonperforming loans and loans 30-89 days past due decreased to $65.5 million and $17.1 million, respectively, at December 31, 2025. Net charge-offs, excluding the impact of $29.8 million of the allowance for credit losses which were charged off as part of the equipment finance portfolio sale, were $13.7 million for the fourth quarter of 2025, which included: $5.3 million of net charge-offs in the retained portion of our equipment finance portfolio $3.7 million of net charge-offs on non-performing commercial real estate loans included in our Community Bank portfolio due to the receipt of updated appraisals $2.0 million of fully reimbursed net charge-offs related to our third-party lending portfolio $1.1 million of charge-offs related to a commercial real estate loan that moved to non-accrual during the quarter. Provision for credit losses on loans was $11.8 million for the fourth quarter of 2025. The provision for credit losses on loans resulted from the replenishment of reserve balances following higher net charge-offs during the quarter and a modest reserve build related to growth in the Community Bank portfolio. Allowance for credit losses on loans was $69.2 million, or 1.59% of total loans at December 31, 2025 compared to an allowance of $100.9 million at September 30, 2025, or 2.07% of total loans. The decrease was primarily driven by the reduction in the allowance for credit losses associated with the portion of the equipment finance portfolio that was sold during the quarter. 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) December 31, September 30, June 30, March 31, December 31, 2025 2025 2025 2025 2024 Asset Quality Loans 30-89 days past due $ 17,079 $ 26,019 $ 40,959 $ 48,221 $ 43,681 Nonperforming loans 65,483 68,703 80,112 145,690 150,907 Nonperforming assets 66,089 70,369 81,775 151,264 157,409 Substandard accruing loans 76,000 78,901 58,478 77,620 84,058 Net charge-offs 43,492 12,309 29,854 16,878 112,776 Loans 30-89 days past due to total loans 0.39 % 0.53 % 0.81 % 0.96 % 0.85 % Nonperforming loans to total loans 1.50 % 1.41 % 1.59 % 2.90 % 2.92 % Nonperforming assets to total assets 1.02 % 1.02 % 1.15 % 2.08 % 2.10 % Allowance for credit losses to total loans 1.59 % 2.07 % 1.84 % 2.10 % 2.15 % Allowance for credit losses to nonperforming loans 105.71 % 146.84 % 115.70 % 72.19 % 73.69 % Net charge-offs to average loans (annualized) 3.69 % 0.99 % 2.34 % 1.35 % 7.94 % Solid Growth Trends in Community Bank & Wealth Management Total loans at December 31, 2025 were $4.35 billion, a decrease of $515.6 million from September 30, 2025. Key changes in the loan portfolio were as follows: Community Bank balances increased $53.7 million, or 1.6%, from September 30, 2025. We originated $180 million of new loans during the fourth quarter of 2025, which benefited from growth in commercial clients with full banking relationships, increasing from $129 million during the third quarter of 2025. This growth was partially offset by payoffs of $161.2 million, increasing from $146.0 million during the third quarter of 2025. Pipelines continued to remain strong through the end of the fourth quarter of 2025 and to begin 2026. Equipment finance balances declined $578.1 million compared to balances at September 30, 2025, primarily due to the sale of substantially all of the portfolio during the quarter. Non-core loans decreased $17.2 million to $295.8 million from September 30, 2025. Total deposits were $5.42 billion at December 31, 2025, a decrease of $180.4 million from September 30, 2025. The decrease in deposits reflected the following: Community Bank deposits decreased $154.9 million from balances as of September 30, 2025, driven by seasonality in public funds and ordinary fluctuations in liquidity related to certain of our larger deposit customer relationships. Brokered deposits decreased $24.0 million from balances as of September 30, 2025. The reduction in higher-cost deposit funding improved our net interest margin by 4 basis points during the quarter. Wealth Management revenue totaled $8.3 million in the fourth quarter of 2025. Assets under administration were $4.48 billion at December 31, 2025, an increase from $4.36 billion at September 30, 2025. The Company continued to experience strong pipelines through the end of the fourth quarter of 2025. Net Interest Margin Net interest margin was 3.74%, down 5 basis points compared to the third quarter of 2025. The third quarter of 2025 included a $1.6 million interest recovery due to the payoff of a nonaccrual loan. Excluding this, the net interest margin increased 5 basis points in the fourth quarter of 2025. Our cost of funding continues to decline, as rate cuts enacted by the Federal Reserve beginning in late 2024 continue to result in a lower cost of deposits for the Company, which fell by 17 basis points to 1.95% in the fourth quarter of 2025. The rate cuts in December 2025 had a limited effect on the fourth quarter’s results but should result in additional improvement in funding costs into 2026. The following table presents the Company’s net interest margin for the fourth quarter of 2025 compared to the third quarter of 2025 and the fourth quarter of 2024. For the Three Months Ended (dollars in thousands) December 31, 2025 September 30, 2025 December 31, 2024 Interest-earning assets Average Balance Interest & Fees Yield/Rate Average Balance Interest & Fees Yield/Rate Average Balance Interest & Fees Yield/Rate Cash and cash equivalents $ 81,080 $ 802 3.92 % $ 78,567 $ 849 4.29 % $ 96,676 $ 1,101 4.53 % Investment securities(1) 1,457,778 16,807 4.57 1,338,997 15,979 4.73 1,213,248 14,417 4.73 Loans(1)(2) 4,671,538 73,889 6.28 4,947,675 81,012 6.50 5,652,586 88,412 6.22 Loans held for sale 11,035 145 5.21 9,268 147 6.29 12,854 129 4.00 Nonmarketable equity securities 36,053 673 7.41 38,559 715 7.36 35,171 632 7.15 Total interest-earning assets 6,257,484 92,316 5.85 6,413,066 98,702 6.11 7,010,535 104,691 5.94 Noninterest-earning assets 486,216 498,875 669,300 Total assets $ 6,743,700 $ 6,911,941 $ 7,679,835 Interest-Bearing Liabilities Interest-bearing deposits $ 4,501,366 $ 27,147 2.39 % $ 4,644,455 $ 30,219 2.58 % $ 5,241,702 $ 40,016 3.04 % Short-term borrowings 110,069 1,035 3.73 54,839 499 3.61 31,853 214 2.68 FHLB advances & other borrowings 359,380 3,648 4.03 386,772 4,044 4.15 284,033 2,880 4.03 Subordinated debt 27,017 380 5.58 77,210 1,393 7.16 80,410 1,498 7.41 Trust preferred debentures 51,771 1,183 9.07 51,602 1,221 9.39 51,132 1,292 10.05 Total interest-bearing liabilities 5,049,603 33,393 2.62 5,214,878 37,376 2.84 5,689,130 45,900 3.21 Noninterest-bearing deposits 1,015,629 1,020,196 1,066,520 Other noninterest-bearing liabilities 95,770 100,436 117,478 Shareholders’ equity 582,698 576,431 806,707 Total liabilities and shareholder’s equity $ 6,743,700 $ 6,911,941 $ 7,679,835 Net Interest Margin $ 58,923 3.74 % $ 61,326 3.79 % $ 58,791 3.34 % Cost of Deposits 1.95 % 2.12 % 2.52 % (1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.2 million for each of the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively. (2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. Trends in Noninterest Income and Expense Noninterest income was $26.9 million for the fourth quarter of 2025 compared to $20.0 million for the third quarter of 2025. Noninterest income for the fourth quarter of 2025 included $6.6 million of additional credit enhancement income driven by contractual changes in our third-party lending and servicing arrangements. Noninterest expense was $77.2 million for the fourth quarter of 2025 compared to $49.8 million of noninterest expense for the third quarter of 2025. Noninterest expense for the fourth quarter of 2025 included $23.0 million of losses on the sale of loans (of which $21.4 million related to the equipment finance portfolio sale) and $1.7 million in additional FDIC assessments related to prior years’ amended call reports due to the restatements of prior years’ financial statements. Income tax benefit was $0.4 million for the fourth quarter of 2025, compared to income tax expense of $3.8 million for the third quarter of 2025 and income tax benefit of $8.2 million for the fourth quarter of 2024. The resulting effective tax rates were 11.1%, 33.2% and 21.0%, respectively. The effective tax rate for the fourth quarter of 2025 reflected the impact of the loss on the sale of substantially all of our equipment finance portfolio. Fourth Quarter 2025 Financial Highlights and Key Performance Indicators As of and for the Three Months Ended December 31, September 30, June 30, March 31, December 31, 2025 2025 2025 2025 2024 Return on average assets (annualized) (0.17) % 0.43 % 0.67 % (7.66) % (1.59) % Adjusted pre-provision net revenue to average assets(1) 1.85 % 1.80 % 1.81 % 1.47 % 1.83 % Net interest margin (annualized) 3.74 % 3.79 % 3.56 % 3.49 % 3.34 % Efficiency ratio(1) 63.11 % 61.25 % 60.60 % 64.29 % 62.31 % Noninterest expense to average assets 4.54 % 2.86 % 2.80 % 11.02 % 3.04 % Net charge-offs to average loans (annualized) 3.69 % 0.99 % 2.34 % 1.35 % 7.94 % Tangible book value per share at period end(1) $ 20.70 $ 21.16 $ 20.68 $ 20.54 $ 19.83 Diluted earnings (loss) per common share $ (0.24 ) $ 0.24 $ 0.44 $ (6.58 ) $ (1.52 ) Common shares outstanding at period end 21,169,854 21,543,557 21,515,138 21,503,036 21,494,485 Trust assets under administration $ 4,478,999 $ 4,363,756 $ 4,181,180 $ 4,101,414 $ 4,153,080 (1) Non-GAAP financial measures. Refer to pages 11-12 for a reconciliation to the comparable GAAP financial measures. Capital As previously announced, on November 3, 2025, 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 its common stock through November 2, 2026. During the fourth quarter of 2025, the Company repurchased $9.6 million of its common stock (457,222 shares of its common stock at a weighted average price of $20.96), resulting in approximately $15 million in remaining repurchase authority under the program. 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 December 31, 2025 Midland States Bank Midland States Bancorp, Inc. Minimum Regulatory Requirements(2) Total capital to risk-weighted assets 14.27% 15.16% 10.50% Tier 1 capital to risk-weighted assets 13.02% 13.37% 8.50% Common equity Tier 1 capital to risk-weighted assets 13.02% 9.89% 7.00% Tier 1 leverage ratio 9.63% 9.90% 4.00% Tangible common equity to tangible assets(1) N/A 6.75% N/A (1) A non-GAAP financial measure. Refer to pages 11-12 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 December 31, 2025, the Company had total assets of approximately $6.51 billion, and its Wealth Management Group had assets under administration of approximately $4.48 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 of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include “Adjusted pre-provision net revenue,” “Adjusted pre-provision net revenue per diluted share,” “Adjusted pre-provision net revenue to average assets,” “Adjusted earnings (loss),” “Adjusted earnings (loss) available to common shareholders,” “Adjusted diluted earnings (loss) per common share,” “Efficiency ratio,” “Tangible common equity to tangible assets,” and “Tangible book value per share.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies. Forward-Looking Statements Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," “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 Eric T. Lemke, Chief Financial Officer, at [email protected] or (217) 342-7321 A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/702332a6-12ec-467f-885d-49be38ecac58 MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited) As of December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 Assets Cash and cash equivalents $ 127,811 $ 166,147 $ 176,587 $ 102,006 $ 114,766 Investment securities 1,524,943 1,383,121 1,354,652 1,368,405 1,212,366 Loans 4,352,004 4,867,587 5,035,295 5,018,053 5,167,574 Allowance for credit losses on loans (69,219 ) (100,886 ) (92,690 ) (105,176 ) (111,204 ) Total loans, net 4,282,785 4,766,701 4,942,605 4,912,877 5,056,370 Loans held for sale 7,781 7,535 37,299 287,821 344,947 Premises and equipment, net 85,134 86,005 86,240 86,719 85,710 Other real estate owned 606 393 393 4,183 4,941 Loan servicing rights, at lower of cost or fair value 11,932 16,165 16,720 17,278 17,842 Goodwill 7,927 7,927 7,927 7,927 161,904 Other intangible assets, net 8,876 9,619 10,362 11,189 12,100 Company-owned life insurance 218,554 216,494 214,392 212,336 211,168 Credit enhancement asset 12,557 5,765 5,800 5,615 16,804 Other assets 222,221 245,643 254,901 268,448 267,891 Total assets $ 6,511,127 $ 6,911,515 $ 7,107,878 $ 7,284,804 $ 7,506,809 Liabilities and Shareholders' Equity Noninterest-bearing demand deposits $ 1,040,411 $ 1,015,930 $ 1,074,212 $ 1,090,707 $ 1,055,564 Interest-bearing deposits 4,383,968 4,588,895 4,872,707 4,845,727 5,141,679 Total deposits 5,424,379 5,604,825 5,946,919 5,936,434 6,197,243 Short-term borrowings 60,181 146,766 8,654 40,224 87,499 FHLB advances and other borrowings 293,000 373,000 345,000 498,000 258,000 Subordinated debt 27,019 27,014 77,759 77,754 77,749 Trust preferred debentures 51,857 51,684 51,518 51,358 51,205 Other liabilities 89,192 124,225 104,323 109,597 124,266 Total liabilities 5,945,628 6,327,514 6,534,173 6,713,367 6,795,962 Total shareholders’ equity 565,499 584,001 573,705 571,437 710,847 Total liabilities and shareholders’ equity $ 6,511,127 $ 6,911,515 $ 7,107,878 $ 7,284,804 $ 7,506,809 MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) For the Three Months Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2025 2025 2025 2025 2024 Net interest income: Interest income $ 92,095 $ 98,493 $ 97,924 $ 99,355 $ 104,470 Interest expense 33,393 37,376 39,229 41,065 45,900 Net interest income 58,702 61,117 58,695 58,290 58,570 Provision for credit losses: Provision for credit losses on loans 11,825 20,505 17,369 10,850 74,183 Recapture of credit losses on unfunded commitments (200 ) (500 ) — — — Total provision for credit losses 11,625 20,005 17,369 10,850 74,183 Net interest income after provision for credit losses 47,077 41,112 41,326 47,440 (15,613 ) Noninterest income: Wealth management revenue 8,272 8,018 7,379 7,350 7,660 Service charges on deposit accounts 3,573 3,598 3,351 3,305 3,506 Interchange revenue 3,437 3,445 3,463 3,151 3,528 Residential mortgage banking revenue 690 735 756 676 637 Income on company-owned life insurance 2,060 2,102 2,068 2,334 1,975 Gain (loss) on sales of investment securities, net — 14 — — (34 ) Credit enhancement income (loss) 6,876 (242 ) 3,848 (578 ) 15,810 Other income 1,959 2,346 2,669 1,525 2,289 Total noninterest income 26,867 20,016 23,534 17,763 35,371 Noninterest expense: Salaries and employee benefits 25,906 26,393 25,685 26,416 22,283 Occupancy and equipment 4,353 4,206 4,166 4,498 4,286 Data processing 6,834 7,186 7,035 6,919 7,278 Professional services 2,321 2,017 2,792 2,741 1,580 Impairment on goodwill — — — 153,977 — Amortization of intangible assets 743 743 827 911 952 Loss on sale of loan portfolios 23,051 — — — — Impairment on leased assets and surrendered assets 684 — — — 7,601 FDIC insurance 3,739 1,512 1,422 1,463 1,383 Other expense 9,561 7,757 8,065 6,080 13,336 Total noninterest expense 77,192 49,814 49,992 203,005 58,699 Income (loss) before income taxes (3,248 ) 11,314 14,868 (137,802 ) (38,941 ) Income tax expense (benefit) (360 ) 3,757 2,844 3,172 (8,172 ) Net income (loss) (2,888 ) 7,557 12,024 (140,974 ) (30,769 ) Preferred stock dividends 2,228 2,229 2,228 2,228 2,228 Net income (loss) available to common shareholders $ (5,116 ) $ 5,328 $ 9,796 $ (143,202 ) $ (32,997 ) Basic earnings (loss) per common share $ (0.24 ) $ 0.24 $ 0.44 $ (6.58 ) $ (1.52 ) Diluted earnings (loss) per common share $ (0.24 ) $ 0.24 $ 0.44 $ (6.58 ) $ (1.52 ) Weighted average common shares outstanding 21,854,033 21,863,911 21,820,190 21,795,570 21,748,428 Weighted average diluted common shares outstanding 21,854,033 21,863,911 21,820,190 21,795,570 21,753,711 MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued) As of December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 Loan Portfolio Mix Commercial loans $ 1,169,740 $ 1,149,673 $ 1,178,792 $ 879,286 $ 934,848 Equipment finance loans 8,781 326,860 364,526 390,276 416,968 Equipment finance leases 50,981 310,983 347,155 373,168 391,390 Commercial FHA warehouse lines — — 1,068 — 8,004 Total commercial loans and leases 1,229,502 1,787,516 1,891,541 1,642,730 1,751,210 Commercial real estate 2,342,664 2,336,661 2,383,361 2,592,325 2,591,664 Construction and land development 286,140 260,073 258,729 264,966 299,842 Residential real estate 349,623 353,475 361,261 373,095 380,557 Consumer 144,075 129,862 140,403 144,937 144,301 Total loans $ 4,352,004 $ 4,867,587 $ 5,035,295 $ 5,018,053 $ 5,167,574 Loan Portfolio Segment Regions Eastern $ 972,031 $ 927,977 $ 897,348 $ 897,792 $ 899,611 Northern 711,702 724,695 753,590 747,028 714,562 Southern 729,368 725,892 778,124 711,787 720,188 St. Louis 915,126 896,005 884,685 902,743 868,190 Total Community Bank 3,328,227 3,274,569 3,313,747 3,259,350 3,202,551 Specialty finance 668,183 642,167 670,566 867,918 1,026,443 Equipment finance 59,762 637,843 711,681 763,444 808,359 Non-core loan program and other(1) 295,832 313,008 339,301 127,341 130,221 Total loans $ 4,352,004 $ 4,867,587 $ 5,035,295 $ 5,018,053 $ 5,167,574 Deposit Portfolio Mix Noninterest-bearing demand $ 1,040,411 $ 1,015,930 $ 1,074,212 $ 1,090,707 $ 1,055,564 Interest-bearing: Checking 1,855,215 1,996,501 2,180,717 2,161,282 2,378,256 Money market 1,248,942 1,240,885 1,216,357 1,154,403 1,173,630 Savings 487,742 486,953 511,470 522,663 507,305 Time 748,942 804,740 818,813 818,732 822,981 Brokered time 43,127 59,816 145,350 188,647 259,507 Total deposits $ 5,424,379 $ 5,604,825 $ 5,946,919 $ 5,936,434 $ 6,197,243 Deposit Portfolio by Channel Retail $ 2,823,064 $ 2,791,085 $ 2,811,838 $ 2,846,494 $ 2,749,650 Commercial 1,193,637 1,248,445 1,145,369 1,074,837 1,209,815 Public Funds 473,381 605,474 618,172 490,374 505,912 Wealth & Trust 265,747 263,765 304,626 301,251 340,615 Servicing 498,496 498,892 785,659 842,567 896,436 Brokered Deposits 143,192 167,228 248,707 358,063 473,451 Other 26,862 29,936 32,548 22,848 21,364 Total deposits $ 5,424,379 $ 5,604,825 $ 5,946,919 $ 5,936,434 $ 6,197,243 (1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio. MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For the Three Months Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2025 2025 2025 2025 2024 Income (loss) before income tax expense (benefit) - GAAP $ (3,248 ) $ 11,314 $ 14,868 $ (137,802 ) $ (38,941 ) Adjustments to noninterest income: (Gain) loss on sales of investment securities, net — (14 ) — — 34 Loss on repurchase of subordinated debt — — — — 13 Total adjustments to noninterest income — (14 ) — — 47 Adjustments to noninterest expense: Loss on sale of loan portfolios (23,051 ) — — — — Impairment on goodwill — — — (153,977 ) — Total adjustments to noninterest expense (23,051 ) — — (153,977 ) — Adjusted earnings (loss) pre tax - non-GAAP 19,803 11,300 14,868 16,175 (38,894 ) Adjusted earnings (loss) tax (benefit) expense 5,691 3,753 2,844 3,172 (8,159 ) Adjusted earnings (loss) - non-GAAP 14,112 7,547 12,024 13,003 (30,735 ) Preferred stock dividends 2,228 2,229 2,228 2,228 2,228 Adjusted earnings (loss) available to common shareholders $ 11,884 $ 5,318 $ 9,796 $ 10,775 $ (32,963 ) Adjusted diluted earnings (loss) per common share $ 0.53 $ 0.24 $ 0.44 $ 0.49 $ (1.52 ) Adjusted Pre-Provision Net Revenue Reconciliation For the Three Months Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 Income (loss) before income tax expense (benefit) $ (3,248 ) $ 11,314 $ 14,868 $ (137,802 ) $ (38,941 ) Provision for credit losses 11,625 20,005 17,369 10,850 74,183 Loss on sale of loan portfolios 23,051 — — — — Impairment on goodwill — — — 153,977 — Adjusted pre-provision net revenue $ 31,428 $ 31,319 $ 32,237 $ 27,025 $ 35,242 Adjusted pre-provision net revenue per diluted share $ 1.44 $ 1.43 $ 1.48 $ 1.24 $ 1.62 Adjusted pre-provision net revenue to average assets 1.85 % 1.80 % 1.81 % 1.47 % 1.83 % MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Efficiency Ratio Reconciliation For the Three Months Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2025 2025 2025 2025 2024 Noninterest expense - GAAP $ 77,192 $ 49,814 $ 49,992 $ 203,005 $ 58,699 Loss on sale of loan portfolios (23,051 ) — — — — Impairment on goodwill — — — (153,977 ) — Adjusted noninterest expense $ 54,141 $ 49,814 $ 49,992 $ 49,028 $ 58,699 Net interest income - GAAP $ 58,702 $ 61,117 $ 58,695 $ 58,290 $ 58,570 Effect of tax-exempt income 221 209 267 208 220 Adjusted net interest income 58,923 61,326 58,962 58,498 58,790 Noninterest income - GAAP 26,867 20,016 23,534 17,763 35,371 (Gain) loss on sales of investment securities, net — (14 ) — — 34 Loss on repurchase of subordinated debt — — — — 13 Adjusted noninterest income 26,867 20,002 23,534 17,763 35,418 Adjusted total revenue $ 85,790 $ 81,328 $ 82,496 $ 76,261 $ 94,208 Efficiency ratio 63.11 % 61.25 % 60.60 % 64.29 % 62.31 % Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share As of December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2025 2025 2025 2025 2024 Shareholders' Equity to Tangible Common Equity Total shareholders' equity—GAAP $ 565,499 $ 584,001 $ 573,705 $ 571,437 $ 710,847 Adjustments: Preferred Stock (110,548 ) (110,548 ) (110,548 ) (110,548 ) (110,548 ) Goodwill (7,927 ) (7,927 ) (7,927 ) (7,927 ) (161,904 ) Other intangible assets, net (8,876 ) (9,619 ) (10,362 ) (11,189 ) (12,100 ) Tangible common equity $ 438,148 $ 455,907 $ 444,868 $ 441,773 $ 426,295 Total Assets to Tangible Assets: Total assets—GAAP $ 6,511,127 $ 6,911,515 $ 7,107,878 $ 7,284,804 $ 7,506,809 Adjustments: Goodwill (7,927 ) (7,927 ) (7,927 ) (7,927 ) (161,904 ) Other intangible assets, net (8,876 ) (9,619 ) (10,362 ) (11,189 ) (12,100 ) Tangible assets $ 6,494,324 $ 6,893,969 $ 7,089,589 $ 7,265,688 $ 7,332,805 Common Shares Outstanding 21,169,854 21,543,557 21,515,138 21,503,036 21,494,485 Tangible Common Equity to Tangible Assets 6.75 % 6.61 % 6.27 % 6.08 % 5.81 % Tangible Book Value Per Share $ 20.70 $ 21.16 $ 20.68 $ 20.54 $ 19.83 Source: Midland States Bancorp, Inc. 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