Midland States Bancorp, Inc. NASDAQ: MSBI Fourth Quarter 2024 Earnings Presentation 1 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," "antic ...

Midland States Bancorp (MSBI) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individu ...

Core Viewpoint - Midland States Bancorp, Inc. received a deficiency notification from Nasdaq due to the late filing of its Annual Report on Form 10-K and Quarterly Report on Form 10-Q, indicating non-compliance with Nasdaq Listing Rule 5250(c)(1) [1][3]. Company Compliance Status - The notification does not have an immediate effect on the listing or trading of the Company's common stock on the Nasdaq Global Select Market [2]. - The Company has until June 2, 2025, to submit a plan to regain compliance with the Listing Rule, with a potential extension until September 29, 2025 [3]. Financial Reporting Evaluation - The Company is currently evaluating its accounting and financial reporting related to third-party lending and servicing arrangements, including assessing goodwill impairment [4]. Company Overview - Midland States Bancorp, Inc. is a community-based financial holding company with total assets of approximately $7.46 billion as of March 31, 2025, and its Wealth Management Group manages assets of about $4.10 billion [6].

Group 1 - Midland States Bancorp reported revenue of $75.95 million for the quarter ended March 2025, a year-over-year decline of 1.5% [1] - The company's EPS for the same period was $0.57, compared to $0.53 a year ago, indicating an increase [1] - The reported revenue exceeded the Zacks Consensus Estimate of $72.75 million by 4.40%, and the EPS also surpassed the consensus estimate of $0.52 by 9.62% [1] Group 2 - Key metrics for Midland States Bancorp include an efficiency ratio of 64.2%, better than the estimated 67.7% [4] - Average interest-earning assets were reported at $6.80 billion, slightly above the estimated $6.77 billion [4] - Net charge-offs to average loans were 1.4%, significantly higher than the estimated 0.4% [4] Group 3 - The net interest margin was reported at 3.5%, exceeding the average estimate of 3.2% [4] - Wealth management revenue was $7.35 million, slightly above the estimated $7.30 million [4] - Total noninterest income was $17.76 million, below the average estimate of $19 million [4] Group 4 - Shares of Midland States Bancorp have returned -4.2% over the past month, underperforming the Zacks S&P 500 composite's -0.2% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Core Viewpoint - Midland States Bancorp (MSBI) reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and showing an increase from $0.53 per share a year ago, representing an earnings surprise of 9.62% [1][2] Financial Performance - The company posted revenues of $75.95 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.40%, although this is a decrease from $77.11 million in the same quarter last year [2] - Over the last four quarters, Midland States Bancorp has exceeded consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Midland States Bancorp shares have declined approximately 32.5% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] - The current Zacks Rank for the stock is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $73.95 million, and for the current fiscal year, it is $2.52 on revenues of $296.8 million [7] - The trend of estimate revisions for Midland States Bancorp has been unfavorable ahead of the earnings release [6] Industry Context - The Zacks Industry Rank for Banks - Northeast, to which Midland States Bancorp belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Net income available to common shareholders for Q1 2025 was $12.6 million, or $0.57 per diluted share[6] - Pre-tax, pre-provision earnings for Q1 2025 were $27.0 million, or $1.12 per diluted share[6] - Net income available to common shareholders for the same period was $12,571,000, resulting in basic and diluted earnings per share of $0.57[29] - The company reported pre-tax, pre-provision earnings of $27,024,000 for the three months ended March 31, 2025[33] Loan and Asset Management - Total loans as of March 31, 2025, were $5.02 billion, a decrease of $149.5 million from December 31, 2024[12] - Nonperforming loans were $140.0 million, representing 2.79% of total loans as of March 31, 2025[10] - Net charge-offs for Q1 2025 were $16.9 million, with $11.1 million fully reimbursed related to third-party lending programs[11] - Total loans as of March 31, 2025, were $5,018,053,000, with a provision for credit losses on loans of $8,250,000[29] - The loan portfolio mix included $2,592,325,000 in commercial real estate loans as of March 31, 2025[31] Deposits and Interest - Total deposits were $5.94 billion as of March 31, 2025, a decrease of $260.8 million from December 31, 2024[12] - Total deposits as of March 31, 2025, were $5,936,434,000, with noninterest-bearing demand deposits of $1,090,707,000[31] - Net interest income for the three months ended March 31, 2025, was $58,186,000, with interest income of $99,251,000 and interest expense of $41,065,000[29] - Net interest margin was 3.48%, with the cost of deposits declining to 2.29%[13] Wealth Management - Wealth Management revenue totaled $7.4 million in Q1 2025, with assets under administration of $4.10 billion[12] - Wealth management revenue for the three months ended March 31, 2025, was $7,350,000[29] Regulatory Compliance and Capital - The Company exceeded all regulatory capital requirements under Basel III as of March 31, 2025[18] - Tangible common equity to tangible assets ratio was 6.32% as of March 31, 2025[35] Efficiency Metrics - The efficiency ratio for the three months ended March 31, 2025, was 64.24%[34] Future Projections - The Company expects noninterest income in the near term to be approximately $17.0 million to $17.5 million[20] Total Assets - Total assets as of March 31, 2025, amounted to $7,457,753,000[27]

Core Viewpoint - Midland States Bancorp, Inc. reported preliminary results for the first quarter of 2025, indicating ongoing evaluations of accounting and financial reporting related to third-party lending and servicing arrangements, which may lead to restated financial statements for 2024 [1][2]. Preliminary Financial Results - The preliminary results reflect updated accounting methodologies for third-party lending and servicing arrangements, with actual results potentially differing materially from these preliminary figures [2]. - Net income available to common shareholders for Q1 2025 was $12.6 million, or $0.57 per diluted share, with pre-tax, pre-provision earnings of $27.0 million, or $1.12 per diluted share [7][17]. Asset Quality and Credit Trends - As of March 31, 2025, nonperforming loans totaled $140.0 million, with net charge-offs of $16.9 million, including $11.1 million from fully reimbursed charge-offs related to third-party lending programs [11][12]. - The company reported no significant new substandard or nonperforming loans during the quarter, and substandard accruing loans decreased slightly to $75.7 million [11][12]. Loan and Deposit Portfolio - Total loans decreased to $5.02 billion, with a notable decrease in the Specialty Finance loan portfolio by $159.3 million due to tightened credit standards [12]. - Total deposits were $5.94 billion, reflecting a decrease of $260.8 million from the previous quarter, with retail deposits increasing by $96.8 million [12]. Profitability and Capital Ratios - The net interest margin for Q1 2025 was reported at 3.48%, with a continued decline in the cost of funding to 2.29% [14]. - The company exceeded all regulatory capital requirements under Basel III, with total capital to risk-weighted assets at 13.77% [18]. Wealth Management and Noninterest Income - Wealth management revenue totaled $7.4 million for Q1 2025, with assets under administration at $4.10 billion [12]. - Noninterest income for the quarter was $17.8 million, impacted by losses on limited partnership investments and credit enhancements [16][21].

Core Points - Midland States Bancorp, Inc. received a deficiency notification from Nasdaq for failing to timely file its Annual Report on Form 10-K for the year ended December 31, 2024 [1][3] - The company has 60 days to submit a plan to regain compliance, with a potential extension of up to 180 days until September 29, 2025 [3] - The delay in filing is due to the need for additional time to evaluate accounting and financial reporting related to a third-party lending arrangement [4] Company Overview - Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank [6] - As of December 31, 2024, the company had total assets of approximately $7.53 billion and its Wealth Management Group had assets under administration of approximately $4.15 billion [6] - The company offers a full range of commercial and consumer banking products and services, including business equipment financing, merchant credit card services, trust and investment management, insurance, and financial planning services [6]

Group 1 - Midland States Bancorp, Inc. declared a quarterly cash dividend of $0.31 per share of common stock, payable on February 21, 2025, to shareholders of record as of February 14, 2025 [1] - The Board of Directors also declared a cash dividend of $0.4844 per depository share on its 7.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, payable on March 31, 2025, to stockholders of record as of March 17, 2025 [2] Group 2 - Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank [3] - As of December 31, 2024, the company had total assets of approximately $7.53 billion and its Wealth Management Group had assets under administration of approximately $4.15 billion [3] - The company provides a full range of commercial and consumer banking products and services, including business equipment financing, merchant credit card services, trust and investment management, insurance, and financial planning services [3]

Core Viewpoint - Midland States Bancorp reported a decline in revenue and a significant loss in EPS for the quarter ended December 2024, indicating challenges in financial performance despite a slight revenue surprise over estimates [1]. Financial Performance Summary - Revenue for the quarter was $75.6 million, down 3.8% year-over-year, but exceeded the Zacks Consensus Estimate by 2.36% [1]. - EPS was reported at -$2.52, a significant drop from $0.89 in the same quarter last year, resulting in an EPS surprise of -460.00% compared to the consensus estimate of $0.70 [1]. Key Metrics Analysis - Efficiency Ratio was reported at 71.4%, significantly higher than the average estimate of 62.7% from two analysts [4]. - Average Interest-Earning Assets were $7.01 billion, slightly below the estimated $7.06 billion [4]. - Net charge-offs to average loans were reported at 7.2%, far exceeding the average estimate of 0.5% [4]. - Net Interest Margin was 3.2%, slightly above the average estimate of 3.1% [4]. - Wealth management revenue reached $7.66 million, surpassing the average estimate of $7.08 million [4]. - Service charges on deposit accounts were $3.51 million, exceeding the average estimate of $3.13 million [4]. - Net Interest Income (FTE) was $56.26 million, above the estimated $55.32 million [4]. - Residential mortgage banking revenue was $0.64 million, slightly below the average estimate of $0.68 million [4]. - Total Noninterest Income was $19.56 million, exceeding the average estimate of $18.15 million [4]. - Interchange revenue was reported at $3.53 million, below the average estimate of $3.78 million [4]. Stock Performance - Shares of Midland States Bancorp returned -0.4% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].