[Q2 2024 Financial Performance Overview](index=1&type=section&id=Q2%202024%20Financial%20Performance%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Net income significantly declined to $4.5 million in Q2 2024, with diluted EPS at $0.20, driven by compressed net interest margin and increased credit loss provisions Q2 2024 Key Financial Metrics | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Net Income to Common Shareholders | $4.5 million | $11.7 million | $19.3 million | | Diluted EPS | $0.20 | $0.53 | $0.86 | | Net Interest Margin | 3.12% | 3.18% | 3.23% | | Tangible Book Value Per Share | $23.36 | $23.44 | $22.24 | | Provision for Credit Losses | $16.8 million | $14.0 million | $5.9 million | - The increased provision for credit losses in Q2 2024 was primarily driven by credit deterioration and servicing issues involving fintech partner LendingPoint following a system conversion in late 2023[13](index=13&type=chunk) - The **Common Equity Tier 1 (CET1) capital ratio** improved slightly to **8.63%** from 8.60% in the prior quarter[13](index=13&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management focused on strengthening capital, addressing credit risk, and strategically shifting towards community banking by reducing certain loan portfolios and growing local markets - The company is actively managing its balance sheet to increase **capital ratios** and address **credit risk** by increasing loan loss reserves[3](index=3&type=chunk) - A strategic shift is underway to focus on **community banking and local markets**, leading to intentional reductions in equipment finance and consumer loan portfolios[3](index=3&type=chunk) - Significant growth was achieved in the St. Louis market, where loan balances increased at an **annualized rate of 31%** during the second quarter[3](index=3&type=chunk) - The company is investing in talent, including a new market president for Northern Illinois and a new Chief Deposit Officer, to enhance commercial deposit relationships and cross-sell wealth management services[14](index=14&type=chunk) [Balance Sheet Analysis](index=2&type=section&id=Balance%20Sheet%20Analysis) Total assets and deposits decreased, with the loan portfolio contracting to $5.85 billion due to strategic reductions, while credit quality weakened with increased non-performing loans [Loans](index=2&type=section&id=Loans) The total loan portfolio decreased to $5.85 billion due to intentional reductions in equipment finance and consumer loans, partially offset by growth in commercial and commercial real estate loans Loan Portfolio Composition (in millions) | Loan Category | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Total Loans | $5,852.0 | $5,958.5 | | Equipment Finance | $890.1 | $949.9 | | Consumer | $746.0 | $837.1 | | Commercial Real Estate | $2,421.5 | $2,397.1 | | Commercial Loans | $939.5 | $913.6 | - The company is intentionally shrinking its **equipment finance** and **consumer loan portfolios**, which comprised **15.2%** and **12.7%** of the total loan portfolio, respectively, down from 15.9% and 14.0% in the prior quarter[6](index=6&type=chunk) - The company ceased originating loans through LendingPoint in Q4 2023; the remaining balance was **$114.2 million** at June 30, 2024, while GreenSky-originated loan balances also decreased by **$67.7 million** to **$538.3 million**[6](index=6&type=chunk) [Loan Quality and Credit Risk](index=2&type=section&id=Loan%20Quality%20and%20Credit%20Risk) Credit quality deteriorated in Q2 2024, with non-performing loans increasing to $112.1 million and the allowance for credit losses significantly rising to 1.58% of total loans Asset Quality Metrics | Metric | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Nonperforming loans | $112.1 million | $105.0 million | | Nonperforming loans to total loans | 1.92% | 1.76% | | Allowance for credit losses (ACL) | $92.2 million | $78.1 million | | ACL to total loans | 1.58% | 1.31% | - The company recognized a **$14.0 million provision expense** related to loans originated and serviced by LendingPoint, increasing the specific allowance on this **$114.2 million portfolio** to **$14.6 million**[43](index=43&type=chunk) [Deposits](index=3&type=section&id=Deposits) Total deposits decreased by $206 million to $6.12 billion, with declines in both noninterest-bearing and interest-bearing deposits, alongside reduced reliance on brokered time deposits Deposit Balances (in billions) | Deposit Type | Q2 2024 | Q1 2024 | | :--- | :--- | :--- | | Total Deposits | $6.12 | $6.32 | | Noninterest-bearing | $1.11 | $1.21 | | Interest-bearing | $5.01 | $5.11 | | Brokered time deposits | $0.13 | $0.19 | [Results of Operations](index=4&type=section&id=Results%20of%20Operations) Operating results weakened in Q2 2024 due to a contracting net interest margin of 3.12%, stable noninterest income, and increased noninterest expense, leading to a higher efficiency ratio [Net Interest Income and Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income decreased to $55.2 million, with net interest margin compressing by 6 basis points to 3.12% due to funding costs rising faster than asset yields Net Interest Margin Analysis | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income (tax-equiv.) | $55.2M | $56.1M | $59.0M | | Net Interest Margin (tax-equiv.) | 3.12% | 3.18% | 3.23% | | Yield on Loans | 6.03% | 5.99% | 5.80% | | Cost of Interest-Bearing Deposits | 3.11% | 3.04% | 2.56% | - The decline in **net interest income and margin** was primarily due to market interest rates causing **funding costs to increase faster than the yield on earning assets**[46](index=46&type=chunk) [Noninterest Income](index=6&type=section&id=Noninterest%20Income) Total noninterest income was $17.7 million, a decrease from Q1 2024, but stable at $17.6 million excluding notable items, with wealth management revenue slightly down despite asset growth Noninterest Income Components (in millions) | Component | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Total Noninterest Income | $17.7 | $21.2 | $18.8 | | Wealth management revenue | $6.8 | $7.1 | $6.3 | | Service charges on deposits | $3.1 | $3.1 | $2.7 | | Interchange revenue | $3.6 | $3.4 | $3.7 | - **Wealth management assets under administration** increased to **$4.00 billion** at June 30, 2024, up from $3.89 billion at March 31, 2024, and $3.59 billion a year prior[54](index=54&type=chunk) [Noninterest Expense](index=7&type=section&id=Noninterest%20Expense) Noninterest expense increased to $47.5 million in Q2 2024, primarily due to $4.1 million in OREO impairment, property taxes, and legal accruals, raising the efficiency ratio to 65.16% Noninterest Expense and Efficiency Ratio | Metric | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Total Noninterest Expense | $47.5M | $44.9M | $42.9M | | Efficiency Ratio | 65.16% | 58.03% | 55.01% | - Q2 2024 noninterest expense included **$4.1 million** of expenses related to OREO impairment, property taxes, and accruals for various legal actions[55](index=55&type=chunk) [Capital and Shareholder Returns](index=8&type=section&id=Capital%20and%20Shareholder%20Returns) The company maintained strong capital ratios, with CET1 at 8.63%, while tangible book value per share slightly decreased to $23.36, and share repurchases continued [Capital Ratios](index=8&type=section&id=Capital%20Ratios) The company and its bank subsidiary exceeded all regulatory capital requirements, with the Common Equity Tier 1 capital ratio at 8.63% and Total capital at 13.94% Regulatory Capital Ratios (Bancorp, Inc.) | Ratio | As of June 30, 2024 | Minimum Requirement | | :--- | :--- | :--- | | Common equity Tier 1 capital | 8.63% | 7.00% | | Tier 1 capital to risk-weighted assets | 11.21% | 8.50% | | Total capital to risk-weighted assets | 13.94% | 10.50% | | Tier 1 leverage ratio | 9.84% | 4.00% | - Rising interest rates on the investment portfolio and cash flow hedges resulted in an **$82.6 million accumulated other comprehensive loss**, which reduced tangible book value by **$3.86 per share**[57](index=57&type=chunk) [Stock Repurchase Program](index=8&type=section&id=Stock%20Repurchase%20Program) The company repurchased 131,372 shares of common stock at a weighted average price of $22.84 per share under its authorized $25.0 million program - During Q2 2024, the company repurchased **131,372 shares** at a **weighted average price of $22.84**[58](index=58&type=chunk) [Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Financial Summary](index=10&type=section&id=Financial%20Summary) This section presents unaudited consolidated financial statements, including earnings summaries, key performance ratios, balance sheet data, and detailed income statements for Q2 and H1 2024 Consolidated Earnings Summary (Q2 2024 vs Q2 2023) | (in thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net interest income | $55,052 | $58,840 | | Provision for credit losses | $16,800 | $5,879 | | Noninterest income | $17,656 | $18,753 | | Noninterest expense | $47,479 | $42,894 | | Net income | $6,750 | $21,575 | | Net income available to common | $4,522 | $19,347 | Consolidated Balance Sheet Summary (As of June 30) | (in thousands) | 2024 | 2023 | | :--- | :--- | :--- | | Total assets | $7,757,274 | $8,034,721 | | Total loans, net | $5,759,811 | $6,302,394 | | Total deposits | $6,118,023 | $6,426,548 | | Total shareholders' equity | $785,772 | $776,821 | [Non-GAAP Financial Measures and Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section reconciles GAAP to non-GAAP financial measures, including Adjusted Earnings, Adjusted Pre-Tax, Pre-Provision Earnings, and Tangible Book Value per Share, with Q2 2024 adjusted pre-tax, pre-provision earnings at $25.2 million Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation (Q2 2024) | (in thousands) | Amount | | :--- | :--- | | Adjusted earnings pre tax (non-GAAP) | $8,414 | | Provision for credit losses | $16,800 | | **Adjusted pre-tax, pre-provision earnings (non-GAAP)** | **$25,214** | Tangible Book Value Per Share Reconciliation (As of June 30, 2024) | (in thousands, except per share data) | Amount | | :--- | :--- | | Total shareholders’ equity—GAAP | $785,772 | | Less: Preferred Stock, Goodwill, Other intangibles | ($286,455) | | **Tangible common equity** | **$499,317** | | Common Shares Outstanding | 21,377,215 | | **Tangible Book Value Per Share** | **$23.36** |

ATLANTA, July 15, 2024 /PRNewswire/ -- Transend, the first B2B private-label working capital solution that is redefining how suppliers do business with their commercial customers, today announced its strategic partnership with Midland States Bank, a subsidiary of Midland States Bancorp, Inc. (NASDAQ: MSBI). Through this partnership, Transend and Midland will take an innovative approach to traditional financing, offering dynamic payment solutions that empower suppliers to offer instant access to working capi ...

Washington, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission File Number 001-35272 MIDLAND STATES BANCORP, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) (State of other jurisdi ...

EFFINGHAM, Ill., May 07, 2024 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ:MSBI) announced today that its Board of Directors has appointed Travis Franklin to its Board, effective May 7, 2024. Mr. Franklin has been appointed to the Board of Midland States Bank, the Company's wholly-owned Illinois bank subsidiary. Mr. Franklin currently serves as Executive Vice President and Chief Financial Officer of Heartland Dental, LLC, a leading dental support organization that provides operational support to ...

Midland States Bancorp (MSBI) reported $77.11 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 1.1%. EPS of $0.53 for the same period compares to $0.88 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $75.05 million, representing a surprise of +2.74%. The company delivered an EPS surprise of -25.35%, with the consensus EPS estimate being $0.71.While investors scrutinize revenue and earnings changes year-over-year and how they compare w ...

Midland States Bancorp (MSBI) came out with quarterly earnings of $0.53 per share, missing the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.88 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -25.35%. A quarter ago, it was expected that this company would post earnings of $0.79 per share when it actually produced earnings of $0.89, delivering a surprise of 12.66%.Over the last four quarters, the ...

EXHIBIT 99.1 Midland States Bancorp, Inc. Announces 2024 First Quarter Results First Quarter 2024 Highlights: Effingham, IL, April 25, 2024 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the "Company") today reported net income available to common shareholders of $11.7 million, or $0.53 per diluted share, for the first quarter of 2024, compared to $18.5 million, or $0.84 per diluted share, for the fourth quarter of 2023. This also compares to net income available to common shareholders of ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Midland States Bancorp (MSBI) , which belongs to the Zacks Banks - Northeast industry, could be a great candidate to consider.When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 6.98%, on average, in the last two quarters.For the most recent quarter, Midla ...

Midland States Bancorp (MSBI) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Ap ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark one) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______________ to _______________ Commission File Number 001-35272 MIDLAND STATES BANCORP, INC. (Exact name of registrant as specified in its cha ...