Financial Position - As of December 31, 2025, the company had total assets of $6.51 billion and wealth management assets under administration of approximately $4.48 billion[18]. - The commercial real estate and construction loan portfolio totaled $2.63 billion as of December 31, 2025, with a diversified composition across various property types[27]. - The company’s market share in Effingham County, IL, is 35.57%, with total deposits of $933.45 million as of June 30, 2025[33]. - The company had 861 employees as of December 31, 2025, and emphasizes competitive compensation and skill development to attract and retain talent[34]. Strategic Initiatives - The company reported a significant shift in its consumer loan strategy, having sold a LendingPoint portfolio valued at $87.1 million and participation interests in a $317.5 million GreenSky consumer loan portfolio[28]. - The company operates 53 full-service banking offices across Illinois and Missouri, focusing on community banking and relationship-driven growth[20]. - The company’s strategic plan includes a high-tech, high-touch approach to enhance customer experience while maintaining core community banking values[19]. Regulatory Compliance - The company is committed to compliance with regulatory requirements, which significantly affect its operations and growth potential[39]. - The Company experienced increased compliance and risk management costs due to heightened regulatory requirements following the Dodd Frank Act, but the Regulatory Relief Act enacted in May 2018 provided some relief[41]. - Federal banking agencies have continued efforts to reduce regulatory burdens, which may positively impact the Company's operations, although future regulatory changes remain uncertain[42]. - The Company is subject to regular examinations by banking agencies, which assess compliance, capital levels, asset quality, and overall risk profile, potentially affecting operations and financial results[43]. - The Company is legally obligated to support the Bank financially and is subject to periodic examinations by the Federal Reserve, ensuring compliance with regulatory standards[63]. - The Company must obtain prior approval from the Federal Reserve for any mergers or acquisitions involving banks, ensuring regulatory oversight of its growth strategies[64]. - The Company is restricted from acquiring more than 5% of voting shares in nonbanking entities, maintaining a focus on banking-related activities[65]. - The Basel III Rule introduced stricter definitions of capital, impacting the Company's ability to raise capital through certain instruments, such as trust preferred securities[54]. - The Company elected to operate as a financial holding company in 2006, allowing it to engage in a wider range of nonbanking activities[68]. - The Bank is required to maintain capital in accordance with Federal Reserve capital adequacy requirements under the Basel III Rule[70]. - As of December 31, 2025, the Bank was classified as well capitalized, exceeding the Federal Reserve's capital requirements and complying with the Basel III Rule[60]. - The Company is subject to limitations on dividend payments, which cannot exceed the sum of the bank's year-to-date net income plus retained income for the two preceding calendar years without prior approval from the Federal Reserve[86]. Risk Management - The Bank's liquidity risk management policies are reviewed in light of regulatory requirements and industry developments[85]. - The Bank's interest rate risk management involves monitoring loan and deposit flows, complemented by investment, funding, and hedging activities[309]. - The Bank is primarily exposed to interest rate risk due to its diverse range of financial products offered to customers[307]. - The federal banking agencies have emphasized the importance of sound risk management processes and strong internal controls for FDIC-insured institutions[95]. - The Bank must comply with numerous U.S. federal and state laws aimed at protecting customer information, including implementing a comprehensive information security program[96]. - The Bank's CRA performance can significantly impact its ability to engage in certain activities, including acquisitions[99]. - The Bank is subject to the Bank Secrecy Act, which requires it to maintain policies for customer identification and the prevention of money laundering[102]. - The Bank's concentration in commercial real estate lending is under regulatory scrutiny, with specific numerical indicators for supervisory assessments[103]. Financial Performance - The Bank's net interest income sensitivity to a 200 basis point increase in rates is projected to increase by $5,458,000, representing a 2.5% change as of December 31, 2025[314]. - For a 100 basis point decrease in rates, the Bank anticipates a decrease in net interest income by $517,000, or a 0.2% change[314]. - As of December 31, 2025, the Bank's net interest income sensitivity analysis indicates compliance with board policy limits across all scenarios[314]. - The Bank's NII at Risk as of December 31, 2025, indicates increasing profitability in a declining rate environment, consistent with modeling from December 31, 2024[315]. - The Bank has maintained non-maturity beta assumptions and lowered rates in line with industry trends throughout 2025[315]. - Price risk arises from adverse movements in the prices of financial instruments carried at fair value, including investment securities and derivative instruments[316]. - Management's evaluation of the allowance for credit losses on loans involves significant estimates and judgments based on various factors, including historical loan loss experience and economic conditions[319]. - Regulatory agencies review the allowance for credit losses on loans and may require adjustments based on their evaluations[320]. - The Company believes the current level of the allowance for credit losses on loans is appropriate[320].

EXHIBIT 99.1 Midland States Bancorp, Inc. Announces 2025 Fourth Quarter Results Effingham, IL, January 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, o ...

Loan Portfolio and Credit Quality - As of September 30, 2025, the outstanding loans in the third-party loan origination program were $56.5 million, down from $62.3 million as of December 31, 2024, reflecting a decrease of approximately 12.9%[171] - The Company recognized net charge-offs of $35.0 million when transferring the GreenSky consumer loan portfolio to held for sale[173] - The Company’s evaluation process for the allowance for credit losses on loans involves multiple factors, including historical loan loss experience and current economic conditions[160] - The provision for credit losses on loans totaled $20.5 million for Q3 2025, up from $17.9 million in Q3 2024, with a total of $48.2 million for the nine months ended September 30, 2025, compared to $46.1 million for the same period in 2024[203] - The allowance for credit losses on loans was $100.9 million, or 2.07% of total loans, at September 30, 2025, down from $111.2 million, or 2.15%, at December 31, 2024[226] - Nonperforming loans decreased to $68.7 million, or 1.41% of total loans, at September 30, 2025, down from $150.9 million, or 2.92% of total loans, at December 31, 2024[240] - The company continues to prioritize improving credit quality by tightening loan underwriting standards and resolving nonperforming loans[240] Financial Performance - For the three months ended September 30, 2025, the company reported net income of $7.6 million, a decrease from $20.4 million in the same period of 2024, resulting in diluted earnings per share of $0.24 compared to $0.83[176] - During the nine months ended September 30, 2025, the company experienced a net loss of $121.4 million, or diluted loss per share of $5.88, compared to net income of $68.8 million, or diluted earnings per share of $2.81, in the same period of 2024[177] - Noninterest income decreased by $13.5 million to $20.0 million in the three months ended September 30, 2025, compared to $33.5 million in the same period of 2024[176] - Noninterest expense increased significantly by $153.7 million during the nine months ended September 30, 2025, primarily due to a goodwill impairment of $154.0 million recognized in the first quarter of 2025[177] - The company’s return on average assets for the three months ended September 30, 2025, was 0.43%, down from 1.05% in the same period of 2024[176] - The return on average shareholders' equity for the three months ended September 30, 2025, was 5.20%, compared to 10.22% in the same period of 2024[176] Interest Income and Expenses - Net interest income for the three months ended September 30, 2025, increased to $61.3 million from $59.3 million in the same period of 2024, with a tax-equivalent net interest margin rising to 3.79% from 3.34%[181] - For the nine months ended September 30, 2025, net interest income on a tax-equivalent basis was $178.8 million, with a net interest margin of 3.61%, compared to $178.4 million and 3.35% in the same period of 2024[182] - Interest income decreased by $10.5 million to $98.7 million for the three months ended September 30, 2025, primarily due to a decline in earning assets[192] - Interest expense decreased by $12.5 million to $37.4 million for the three months ended September 30, 2025, with the cost of interest-bearing liabilities decreasing to 2.84%[199] - Interest expense on deposits decreased by $11.8 million to $30.2 million for Q3 2025, primarily due to a decrease in rates paid on deposits[200] - The cost of interest-bearing liabilities decreased to 2.92% for the first nine months of 2025 compared to 3.34% for the same period in 2024[201] Goodwill and Impairment - The Company recognized a goodwill impairment expense of $154.0 million in the first quarter of 2025 due to a quantitative impairment test indicating that the carrying amount exceeded the fair value of the Banking reporting unit[167] - The discount rate used in the quantitative impairment test increased to 15.9% as of March 31, 2025, compared to 13.4% at December 31, 2024, due to an increase in the company-specific risk premium from 2.5% to 6.0%[167] - The fair value of the Banking reporting unit exceeded its carrying amount by approximately 7% as of December 31, 2024, indicating no impairment loss at that time[163] Asset and Liability Management - Total assets decreased to $6.91 billion at September 30, 2025, down from $7.51 billion at December 31, 2024[216] - Total loans decreased by $300.0 million, or 5.8%, to $4.87 billion at September 30, 2025, compared to December 31, 2024[223] - The loan portfolio's total gross amount was $4.87 billion at September 30, 2025, compared to $5.17 billion at December 31, 2024[222] - Total deposits decreased by $592.4 million to $5,604,825 thousand as of September 30, 2025, compared to December 31, 2024[254] - Shareholders' equity decreased by $126.8 million to $584.0 million at September 30, 2025, primarily due to a net loss of $121.4 million[257] Capital Ratios and Regulatory Compliance - As of September 30, 2025, Midland States Bancorp, Inc. reported a total risk-based capital ratio of 14.29%, exceeding the regulatory requirement of 10.50%[263] - Midland States Bank's Tier 1 risk-based capital ratio was 12.08%, above the minimum requirement of 8.50%[263] - The Common equity tier 1 risk-based capital ratio for Midland States Bancorp, Inc. was 9.37%, surpassing the regulatory minimum of 7.00%[263] Economic Outlook - Expected U.S. GDP growth is projected to range from 1.6% to 2.2% over the next four quarters, with the 10-year treasury rate averaging 4.3%[228]

EXHIBIT 99.1 This also compares to net income of $18.2 million, or $0.83 per diluted share, for the third quarter of 2024. 2025 Third Quarter Results Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig: "Although we are disappointed in our financial results this quarter, we have made meaningful progress on several strategic initiatives. The financial results included $15 million of provision in our equipment finance portfolio reflecting an increase in our loss given default assumpt ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION 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 June 30, 2025 ☐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 charter) (State of other jurisdic ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, comprehensive income, shareholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, financial instrument details, and segment information for the periods ended March 31, 2025, and December 31, 2024 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20at%20March%2031%2C%202025%20(Unaudited)%20and%20December%2031%2C%202024) **Consolidated Balance Sheet Highlights (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | Change (%) | | :-------------------------------- | :------------- | :---------------- | :----- | :--------- | | Total Assets | $7,284,804 | $7,506,809 | $(222,005) | -2.96% | | Total Liabilities | $6,713,367 | $6,795,962 | $(82,595) | -1.21% | | Total Shareholders' Equity | $571,437 | $710,847 | $(139,410) | -19.61% | | Goodwill | $7,927 | $161,904 | $(153,977) | -95.10% | | Total Loans, net | $4,912,877 | $5,056,370 | $(143,493) | -2.84% | | Total Deposits | $5,936,434 | $6,197,243 | $(260,809) | -4.21% | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20(Unaudited)%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) **Consolidated Statements of Income Highlights (dollars in thousands, except per share data):** | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | Change (%) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :--------- | | Total Interest Income | $99,355 | $105,526 | $(6,171) | -5.85% | | Total Interest Expense | $41,065 | $45,755 | $(4,690) | -10.25% | | Net Interest Income | $58,290 | $59,771 | $(1,481) | -2.48% | | Provision for Credit Losses | $10,850 | $19,942 | $(9,092) | -45.59% | | Total Noninterest Income | $17,763 | $37,841 | $(20,078) | -53.06% | | Total Noninterest Expense | $203,005 | $48,608 | $154,397 | 317.64% | | (Loss) Income Before Income Taxes | $(137,802) | $29,062 | $(166,864) | -574.16% | | Net (Loss) Income | $(140,974) | $22,663 | $(163,637) | -722.05% | | Net (Loss) Income Available to Common Shareholders | $(143,202) | $20,435 | $(163,637) | -800.77% | | Basic (Loss) Earnings Per Common Share | $(6.58) | $0.92 | $(7.50) | -815.22% | | Diluted (Loss) Earnings Per Common Share | $(6.58) | $0.92 | $(7.50) | -815.22% | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) **Consolidated Statements of Comprehensive Income Highlights (dollars in thousands):** | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Net (Loss) Income | $(140,974) | $22,663 | $(163,637) | | Change in Investment Securities Available for Sale, net of tax | $8,354 | $(4,451) | $12,805 | | Change in Cash Flow Hedges, net of tax | $1,267 | $(215) | $1,482 | | Other Comprehensive Income (Loss), net of tax | $9,621 | $(4,666) | $14,287 | | Total Comprehensive (Loss) Income | $(131,353) | $17,997 | $(149,650) | [Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity%20(Unaudited)%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) **Consolidated Statements of Shareholders' Equity Highlights (dollars in thousands):** | Metric | December 31, 2024 | March 31, 2025 | Change | | :-------------------------------- | :---------------- | :------------- | :----- | | Balances, beginning of period | $710,847 | $710,847 | $0 | | Net loss | — | $(140,974) | $(140,974) | | Other comprehensive income | — | $9,621 | $9,621 | | Common dividends declared | — | $(6,782) | $(6,782) | | Preferred dividends declared | — | $(2,228) | $(2,228) | | Share-based compensation expense | — | $784 | $784 | | Issuance of common stock | — | $169 | $169 | | Balances, end of period | $710,847 | $571,437 | $(139,410) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)%20for%20the%20three%20months%20ended%20March%2031%2C%202025%20and%202024) **Consolidated Statements of Cash Flows Highlights (dollars in thousands):** | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | | Net Cash Provided by Operating Activities | $24,700 | $43,072 | $(18,372) | | Net Cash Provided by Investing Activities | $39,465 | $26,914 | $12,551 | | Net Cash Used in Financing Activities | $(76,925) | $(37,731) | $(39,194) | | Net (Decrease) Increase in Cash and Cash Equivalents | $(12,760) | $32,255 | $(45,015) | | Cash and Cash Equivalents, End of Period | $102,006 | $167,316 | $(65,310) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) [Note 1: Summary of Significant Accounting Policies](index=9&type=section&id=Note%201%3A%20Summary%20of%20Significant%20Accounting%20Policies) - Midland States Bancorp, Inc. is a diversified financial holding company offering commercial and consumer banking, equipment financing, merchant services, trust, investment management, insurance, and financial planning services[23](index=23&type=chunk) - Principal income is derived from interest on loans and investment securities, supplemented by noninterest sources like fees from lending/deposit services, wealth management, and mortgage activities[24](index=24&type=chunk) - FASB ASU No. 2023-09 (Income Taxes) was adopted in 2025, with no material impact beyond additional disclosures; FASB ASU No. 2024-03 (Expense Disaggregation Disclosures) is not yet adopted, effective for annual periods beginning after December 15, 2026[28](index=28&type=chunk)[29](index=29&type=chunk) [Note 2: Investment Securities](index=10&type=section&id=Note%202%3A%20Investment%20Securities) **Investment Securities Available for Sale (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :----------------------------------- | :------------- | :---------------- | :----- | | Total Available for Sale Securities (Fair Value) | $1,364,201 | $1,207,574 | $156,627 | | Gross Unrealized Gains | $4,125 | $5,142 | $(1,017) | | Gross Unrealized Losses | $(99,944) | $(112,358) | $12,414 | - Unrealized losses on investment securities are primarily due to changes in interest rates and market conditions, considered temporary, with no intent to sell prior to anticipated recovery[36](index=36&type=chunk) [Note 3: Loans](index=12&type=section&id=Note%203%3A%20Loans) **Total Loans Outstanding by Portfolio Class (dollars in thousands):** | Loan Class | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Commercial | $772,876 | $818,496 | $(45,620) | | Commercial other | $496,686 | $541,324 | $(44,638) | | Commercial real estate non-owner occupied | $1,597,251 | $1,628,961 | $(31,710) | | Commercial real estate owner occupied | $441,910 | $440,806 | $1,104 | | Multi-family | $486,141 | $454,249 | $31,892 | | Farmland | $67,023 | $67,648 | $(625) | | Construction and land development | $264,966 | $299,842 | $(34,876) | | Residential first lien | $312,367 | $315,775 | $(3,408) | | Other residential | $60,728 | $64,782 | $(4,054) | | Consumer | $91,371 | $96,202 | $(4,831) | | Consumer other | $53,566 | $48,099 | $5,467 | | Lease financing | $373,168 | $391,390 | $(18,222) | | **Total Loans** | **$5,018,053** | **$5,167,574** | **$(149,511)** | **Allowance for Credit Losses on Loans (dollars in thousands):** | Loan Class | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Commercial Loan Portfolio | $75,644 | $83,163 | $(7,519) | | Other Loan Portfolio | $29,532 | $28,041 | $1,491 | | **Total Allowance for Credit Losses on Loans** | **$105,176** | **$111,204** | **$(6,028)** | | Provision for Credit Losses on Loans (Q1) | $10,850 | $19,942 | $(9,092) | **Nonaccrual Loans (dollars in thousands):** | Loan Class | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Total Commercial Loans | $128,509 | $128,548 | $(39) | | Residential first lien | $3,441 | $2,992 | $449 | | Other residential | $468 | $446 | $22 | | Consumer | $67 | $20 | $47 | | Lease financing | $7,004 | $8,132 | $(1,128) | | **Total Nonaccrual Loans** | **$139,489** | **$140,138** | **$(649)** | - Loan restructurings for Q1 2025 totaled **$1,440 thousand** across 7 loans, primarily involving term extensions[64](index=64&type=chunk) [Note 4: Premises, Equipment and Leases](index=26&type=section&id=Note%204%3A%20Premises%2C%20Equipment%20and%20Leases) **Premises, Equipment and Leases (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Premises and Equipment, net | $86,719 | $85,710 | $1,009 | | Lease right-of-use assets | $9,246 | $8,830 | $416 | | Depreciation expense (Q1) | $1,238 | $1,231 | $7 | [Note 5: Operating Leases - Lessor](index=27&type=section&id=Note%205%3A%20Operating%20Leases%20-%20Lessor) **Operating Leases - Lessor (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Equipment leased to others, net | $26,800 | $30,700 | $(3,900) | | Lease income (Q1) | $3,100 | $4,500 | $(1,400) | [Note 6: Goodwill](index=28&type=section&id=Note%206%3A%20Goodwill) **Goodwill by Segment (dollars in thousands):** | Segment | March 31, 2025 | December 31, 2024 | Change | | :-------------- | :------------- | :---------------- | :----- | | Banking | $3,181 | $157,158 | $(153,977) | | Wealth management | $4,746 | $4,746 | $0 | | **Total Goodwill** | **$7,927** | **$161,904** | **$(153,977)** | - The Company recognized **$154.0 million** of goodwill impairment expense in Q1 2025 for its Banking reporting unit, triggered by deteriorated credit quality and trends in the Company's stock price; this non-cash impairment did not impact regulatory capital ratios, tangible common equity ratio, or liquidity[86](index=86&type=chunk) [Note 7: Derivative Instruments](index=28&type=section&id=Note%207%3A%20Derivative%20Instruments) - The Company uses derivative instruments, including interest rate swaps and options, to manage interest rate risk, with a mix of accounting and economic hedges[90](index=90&type=chunk)[91](index=91&type=chunk) **Fair Value of Derivative Instruments (dollars in thousands):** | Category | March 31, 2025 (Assets) | March 31, 2025 (Liabilities) | December 31, 2024 (Assets) | December 31, 2024 (Liabilities) | | :--------------------------------------- | :------------------------ | :------------------------- | :------------------------- | :-------------------------- | | Total Derivatives Designated as Accounting Hedges | $5,184 | $6,222 | $3,516 | $5,437 | | Total Derivatives Not Designated as Accounting Hedges | $376 | $203 | $321 | $218 | | **Total Derivative Assets** | **$5,560** | **N/A** | **$3,837** | **N/A** | | **Total Derivative Liabilities** | **N/A** | **$6,425** | **N/A** | **$5,655** | **Credit Enhancement Derivative Fair Value (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Fair Value of Derivative | $5,600 | $16,800 | $(11,200) | | Credit enhancement (loss) income (Q1) | $(578) | $16,654 | $(17,232) | [Note 8: Deposits](index=31&type=section&id=Note%208%3A%20Deposits) **Classification of Deposits (dollars in thousands):** | Deposit Type | March 31, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Noninterest-bearing demand | $1,090,707 | $1,055,564 | $35,143 | | Interest-bearing checking | $2,161,282 | $2,378,256 | $(216,974) | | Money market | $1,154,403 | $1,173,630 | $(19,227) | | Savings | $522,663 | $507,305 | $15,358 | | Time | $1,007,379 | $1,082,488 | $(75,109) | | **Total Deposits** | **$5,936,434** | **$6,197,243** | **$(260,809)** | [Note 9: FHLB Advances and Other Borrowings](index=31&type=section&id=Note%209%3A%20FHLB%20Advances%20and%20Other%20Borrowings) **FHLB Advances and Other Borrowings (dollars in thousands):** | Borrowing Type | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | FHLB advances – fixed rate, fixed term | $133,000 | $133,000 | $0 | | FHLB advances – putable fixed rate | $125,000 | $125,000 | $0 | | FHLB advances – Short term fixed rate | $240,000 | — | $240,000 | | **Total FHLB Advances and Other Borrowings** | **$498,000** | **$258,000** | **$240,000** | - The Company's FHLB advances are collateralized by qualifying mortgage, home equity, and certain commercial real estate loans, totaling approximately **$3.10 billion** at March 31, 2025[108](index=108&type=chunk) [Note 10: Subordinated Debt](index=32&type=section&id=Note%2010%3A%20Subordinated%20Debt) **Subordinated Debt (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :---------------- | :------------- | :---------------- | :----- | | Outstanding amount | $78,000 | $78,000 | $0 | | Carrying amount | $77,754 | $77,749 | $5 | | Current rate (Fixed to Float) | 7.91% | 7.94% | -0.03% | | Current rate (Fixed) | 5.50% | 5.50% | 0.00% | [Note 11: Accumulated Other Comprehensive Income (Loss)](index=33&type=section&id=Note%2011%3A%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) **Changes in AOCI (Loss), net of tax (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | Balance, beginning of period | $(81,960) | $(76,753) | $(5,207) | | Other comprehensive income before reclassifications | $9,004 | $(5,653) | $14,657 | | Amounts reclassified from AOCI to income | $617 | $987 | $(370) | | **Balance, end of period** | **$(72,339)** | **$(81,419)** | **$9,080** | [Note 12: Earnings per Common Share](index=33&type=section&id=Note%2012%3A%20Earnings%20per%20Common%20Share) **Earnings Per Common Share (dollars in thousands, except per share data):** | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Net (Loss) Income Available to Common Shareholders | $(143,202) | $20,435 | $(163,637) | | Basic (Loss) Earnings Per Common Share | $(6.58) | $0.92 | $(7.50) | | Diluted (Loss) Earnings Per Common Share | $(6.58) | $0.92 | $(7.50) | [Note 13: Fair Value of Financial Instruments](index=34&type=section&id=Note%2013%3A%20Fair%20Value%20of%20Financial%20Instruments) - The Company uses a three-level hierarchy (Level 1, 2, 3) to measure the fair value of assets and liabilities, with Level 3 inputs reflecting unobservable assumptions[114](index=114&type=chunk)[115](index=115&type=chunk) **Assets Measured at Fair Value on a Recurring Basis (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | Total Assets | $1,386,790 | $1,241,235 | $145,555 | | Level 1 Assets | $5,204 | $4,792 | $412 | | Level 2 Assets | $1,375,971 | $1,219,639 | $156,332 | | Level 3 Assets | $5,615 | $16,804 | $(11,189) | **Assets Measured at Fair Value on a Non-Recurring Basis (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | Nonperforming loans | $106,354 | $120,222 | $(13,868) | | Consumer loans held for sale | $280,311 | $336,719 | $(56,408) | | Other real estate owned | $4,183 | $4,941 | $(758) | | **Total** | **$390,848** | **$461,882** | **$(71,034)** | | Losses on Nonperforming Loans (Q1) | $2,012 | $4,834 | $(2,822) | [Note 14: Commitments, Contingencies and Credit Risk](index=39&type=section&id=Note%2014%3A%20Commitments%2C%20Contingencies%20and%20Credit%20Risk) **Commitments and Financial Guarantees (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | Commitments to extend credit | $782,808 | $754,202 | $28,606 | | Financial guarantees – standby letters of credit | $19,139 | $22,298 | $(3,159) | - The Company is subject to various contingent liabilities, claims, and legal actions in the normal course of business, but no other material losses are anticipated[130](index=130&type=chunk) [Note 15: Segment Information](index=40&type=section&id=Note%2015%3A%20Segment%20Information) - The Company's reportable segments are Banking, Wealth Management, and Corporate, with performance assessed by the Chief Executive Officer[134](index=134&type=chunk) **Net Income (Loss) by Segment (dollars in thousands):** | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :---------------- | :-------------------------------- | :-------------------------------- | :----- | | Banking | $(140,281) | $22,926 | $(163,207) | | Wealth Management | $1,078 | $1,022 | $56 | | Corporate | $(1,771) | $(1,285) | $(486) | | **Total Net Income (Loss)** | **$(140,974)** | **$22,663** | **$(163,637)** | [Note 16: Revenue from Contracts with Customers](index=42&type=section&id=Note%2016%3A%20Revenue%20from%20Contracts%20with%20Customers) **Noninterest Income Segregated by Topic 606 Scope (dollars in thousands):** | Revenue Stream | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | | Wealth management revenue | $7,350 | $7,132 | $218 | | Service charges on deposit accounts | $3,305 | $3,116 | $189 | | Interchange revenues | $3,151 | $3,358 | $(207) | | Other income (in-scope) | $631 | $442 | $189 | | Noninterest income - in-scope of Topic 606 | $14,437 | $14,048 | $389 | | Noninterest income - out-of-scope of Topic 606 | $3,326 | $23,793 | $(20,417) | | **Total Noninterest Income** | **$17,763** | **$37,841** | **$(20,078)** | - Wealth management revenue, service charges on deposit accounts, and interchange revenue are key in-scope revenue streams, with wealth management and service charges showing increases, while interchange revenue slightly decreased[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk)[145](index=145&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis provides an overview of the Company's financial performance and condition, highlighting a significant net loss in Q1 2025 primarily due to a goodwill impairment charge. It details changes in net interest income, noninterest income, provision for credit losses, and expenses, alongside an analysis of the loan portfolio, capital resources, and liquidity management [Critical Accounting Policies and Estimates](index=44&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) - The preparation of financial statements involves significant estimates and judgments, particularly for the allowance for credit losses on loans and goodwill impairment[150](index=150&type=chunk) - A **$154.0 million** goodwill impairment expense was recognized in Q1 2025 for the Banking reporting unit, triggered by deteriorated credit quality and stock price trends, using a discounted cash flow analysis with a higher discount rate (**15.9%** vs **13.4%** at Dec 31, 2024)[158](index=158&type=chunk) - The Company accelerated the reduction of its non-core consumer loan portfolio in Q4 2024 through sales, including the LendingPoint portfolio and a commitment to sell the GreenSky portfolio, resulting in significant net charge-offs[163](index=163&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) **Key Performance Metrics (dollars in thousands, except per share data):** | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change | Change (%) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :--------- | | Net (Loss) Income | $(140,974) | $22,663 | $(163,637) | -722.05% | | Diluted (Loss) Earnings Per Common Share | $(6.58) | $0.92 | $(7.50) | -815.22% | | Net Interest Income | $58,290 | $59,771 | $(1,481) | -2.48% | | Provision for Credit Losses | $10,850 | $19,942 | $(9,092) | -45.59% | | Noninterest Income | $17,763 | $37,841 | $(20,078) | -53.06% | | Noninterest Expense | $203,005 | $48,608 | $154,397 | 317.64% | | Return on Average Assets | (7.66)% | 1.17% | -8.83% | -754.70% | | Return on Average Shareholders' Equity | (79.89)% | 11.54% | -91.43% | -792.29% | - Net interest margin (tax-equivalent) increased to **3.49%** in Q1 2025 from **3.39%** in Q1 2024, despite a decrease in net interest income[169](index=169&type=chunk) - Average loans decreased by **$954.6 million** in Q1 2025 compared to Q1 2024, primarily due to the accelerated reduction and sales of non-core consumer loan portfolios (LendingPoint and GreenSky)[177](index=177&type=chunk) - Credit enhancement income declined by **$17.2 million** in Q1 2025 compared to Q1 2024 due to loan payoffs and the cessation of GreenSky and LendingPoint programs[186](index=186&type=chunk) - Salaries and employee benefits increased by **$2.3 million** in Q1 2025, including **$1.4 million** in severance expense from a **25-employee** headcount reduction[187](index=187&type=chunk) [Financial Condition](index=53&type=section&id=Financial%20Condition) **Loan Portfolio Composition (dollars in thousands):** | Loan Type | March 31, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------- | :---------------- | :----- | | Commercial | $1,269,562 | $1,359,820 | $(90,258) | | Commercial real estate | $2,592,325 | $2,591,664 | $661 | | Construction and land development | $264,966 | $299,842 | $(34,876) | | Residential real estate | $373,095 | $380,557 | $(7,462) | | Consumer | $144,937 | $144,301 | $636 | | Lease financing | $373,168 | $391,390 | $(18,222) | | **Total Loans, gross** | **$5,018,053** | **$5,167,574** | **$(149,521)** | | Allowance for credit losses on loans | $(105,176) | $(111,204) | $6,028 | | **Total Loans, net** | **$4,912,877** | **$5,056,370** | **$(143,493)** | **Nonperforming Assets (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | Total Nonperforming Loans | $145,690 | $150,907 | $(5,217) | | Other real estate owned and other repossessed assets | $5,574 | $6,502 | $(928) | | **Nonperforming Assets** | **$151,264** | **$157,409** | **$(6,145)** | | Nonperforming loans to total loans | 2.90% | 2.92% | -0.02% | | Allowance for credit losses to nonperforming loans | 72.19% | 73.69% | -1.50% | - The qualitative factor adjustment for expected credit losses increased slightly to **63 basis points** of total loans at March 31, 2025, from **62 basis points** at December 31, 2024, driven by declining credit quality indicators and increased collateral valuation risks in commercial real estate[204](index=204&type=chunk) [Capital Resources and Liquidity Management](index=62&type=section&id=Capital%20Resources%20and%20Liquidity%20Management) **Capital Resources and Liquidity (dollars in thousands):** | Metric | March 31, 2025 | December 31, 2024 | Change | | :--------------------------------------- | :------------- | :---------------- | :----- | | Shareholders' Equity | $571,437 | $710,847 | $(139,410) | | Total Estimated Liquidity | $2,502,835 | $2,616,246 | $(113,411) | | Cash and cash equivalents | $102,006 | $114,766 | $(12,760) | | Unpledged securities | $880,920 | $672,399 | $208,521 | | FHLB committed liquidity | $1,015,704 | $1,290,246 | $(274,542) | | FRB discount window availability | $504,205 | $538,835 | $(34,630) | - The decrease in shareholders' equity was primarily due to the net loss of **$141.0 million** and dividends to common and preferred shareholders[232](index=232&type=chunk) [Regulatory Capital Requirements](index=63&type=section&id=Regulatory%20Capital%20Requirements) - Both Midland States Bancorp, Inc. and Midland States Bank exceeded all regulatory minimums and met the 'well-capitalized' definition at March 31, 2025[238](index=238&type=chunk) **Regulatory Capital Ratios at March 31, 2025:** | Ratio | Midland States Bancorp, Inc. (Actual) | Midland States Bank (Actual) | Minimum Regulatory Requirements (1) | Well Capitalized | | :--------------------------------------- | :------------------------------------ | :--------------------------- | :---------------------------------- | :--------------- | | Total risk-based capital ratio | 13.51% | 12.83% | 10.50% | 10.00% | | Tier 1 risk-based capital ratio | 11.16% | 11.57% | 8.50% | 8.00% | | Common equity tier 1 risk-based capital ratio | 8.32% | 11.57% | 7.00% | 6.50% | | Tier 1 leverage ratio | 9.11% | 9.45% | 4.00% | 5.00% | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the Company's exposure to market risk, primarily interest rate risk, and its management strategies. It highlights the use of NII at Risk modeling to assess sensitivity to interest rate changes, indicating an increasing profitability in a declining rate environment - The Company's primary market risk exposure is interest rate risk, with secondary exposure to price risk from investments[240](index=240&type=chunk) - Interest rate risk management involves monitoring loan and deposit flows, complemented by investment, funding, and hedging activities, overseen by the Board of Directors' Risk Policy and Compliance Committee[242](index=242&type=chunk)[243](index=243&type=chunk) **Net Interest Income (NII) at Risk Sensitivity (Shocks) (dollars in thousands):** | Immediate Change in Rates | March 31, 2025 (Dollar Change) | March 31, 2025 (Percent Change) | December 31, 2024 (Dollar Change) | December 31, 2024 (Percent Change) | | :------------------------ | :----------------------------- | :------------------------------ | :-------------------------------- | :------------------------------- | | -200 bps | $8,078 | 3.6% | $2,395 | 1.1% | | -100 bps | $3,490 | 1.6% | $1,395 | 0.6% | | +100 bps | $(1,619) | (0.7)% | $(2,727) | (1.2)% | | +200 bps | $(3,430) | (1.5)% | $(5,596) | (2.5)% | - The Company was within board policy limits for all NII at Risk scenarios at March 31, 2025, and projections indicate increasing profitability in a declining rate environment[248](index=248&type=chunk)[249](index=249&type=chunk) [Item 4. Controls and Procedures](index=66&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were not effective as of March 31, 2025, due to ongoing remediation of previously identified material weaknesses in internal controls over financial reporting. Despite this, the consolidated financial statements are deemed to fairly present the Company's financial condition - Disclosure controls and procedures were not effective as of March 31, 2025, due to continued remediation of material weaknesses in internal controls over financial reporting[254](index=254&type=chunk) - Despite the material weaknesses, management concluded that the consolidated financial statements for Q1 2025 fairly present the Company's financial condition, results of operations, and cash flows[255](index=255&type=chunk) - No changes in internal control over financial reporting materially affected or are reasonably likely to materially affect the Company's internal control during the fiscal quarter[256](index=256&type=chunk) [PART II. OTHER INFORMATION](index=65&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) The Company reports no material pending legal proceedings beyond ordinary routine litigation incidental to its business - There are no material pending legal proceedings, other than ordinary routine litigation incidental to the business[258](index=258&type=chunk) [Item 1A. Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) The Company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[260](index=260&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company reported no unregistered sales of equity securities and detailed a minimal repurchase of common stock during February 2025, primarily for employee benefit plans and tax withholding obligations - No unregistered sales of equity securities occurred during the period[262](index=262&type=chunk) **Issuer Purchases of Equity Securities (Q1 2025):** | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :-------------------- | :----------------------------- | :--------------------------- | | February 1 - 28, 2025 | 543 | $21.42 | | **Total** | **543** | **$21.42** | *Note: These purchases were under the employee stock purchase program and for tax withholding obligations upon vesting of restricted stock awards.* [Item 5. Other Information](index=67&type=section&id=Item%205.%20Other%20Information) The Company confirmed that no director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the first quarter of 2025 - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement" during the three months ended March 31, 2025[266](index=266&type=chunk) [Item 6. Exhibits](index=68&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including required certifications from the Chief Executive Officer and Chief Financial Officer, as well as financial information formatted in iXBRL - Includes Chief Executive Officer's and Chief Financial Officer's Certifications (Exhibits 31.1, 31.2, 32.1, 32.2)[269](index=269&type=chunk) - Financial information from the Quarterly Report on Form 10-Q is filed in iXBRL format (Exhibit 101 and 104)[269](index=269&type=chunk) [SIGNATURES](index=69&type=section&id=SIGNATURES) This section contains the official signatures of the Company's President and Chief Executive Officer and Chief Financial Officer, certifying the filing of the report - The report was duly signed on August 8, 2025, by Jeffrey G. Ludwig, President and Chief Executive Officer, and Eric T. Lemke, Chief Financial Officer[274](index=274&type=chunk)

EXHIBIT 99.1 Midland States Bancorp, Inc. Announces 2025 Second Quarter Results Effingham, IL, July 24, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the "Company") today reported net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025, compared to net income available to common shareholders of $23.5 million, or $1.06 per diluted share, for the second quarter of 2024. This also compares to a net loss of $143.2 million, o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from ______________ to _______________ Commission File Number 001-35272 MIDLAND STATES BANCORP, INC. FORM 10-K (Exact name of registrant as specified in its charter) (Mark one) Illinois 37-1233196 ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2024 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securi ...

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] - Pre-tax, pre-provision earnings for the three months ended March 31, 2025, were $27,024,000, with a pre-tax, pre-provision return on average assets of 1.46%[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 the quarter were $16.9 million, with $11.1 million related to fully reimbursed charge-offs from 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] Income and Revenue - Wealth Management revenue totaled $7.4 million in Q1 2025, with assets under administration at $4.10 billion[12] - Noninterest income for Q1 2025 was $17.8 million, with expectations of $17.0 million to $17.5 million in the near term[20] - Wealth management revenue contributed $7,350,000 to total noninterest income of $17,763,000 for the three months ended March 31, 2025[29] Capital and Ratios - The allowance for credit losses on loans was $90.5 million, or 1.80% of total loans[11] - Capital ratios exceeded all regulatory requirements under Basel III, with total capital to risk-weighted assets at 13.77%[18] - Tangible common equity to tangible assets ratio was 6.32% as of March 31, 2025[35] Assets and Deposits - Total assets as of March 31, 2025, amounted to $7,457,753,000[27] - Total deposits reached $5,936,434,000, with noninterest-bearing demand deposits at $1,090,707,000[31] Efficiency Metrics - The efficiency ratio for the three months ended March 31, 2025, was 64.24%[34] - Net interest margin was 3.48%, with the cost of deposits declining to 2.29%[13] Interest Income - 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] Goodwill - The company reported a total of $161,904,000 in goodwill as of March 31, 2025[27]

Effingham, IL, January 23, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the "Company") today reported net loss available to common shareholders of $54.8 million, or $2.52 per diluted share, for the fourth quarter of 2024, compared to net income of $16.2 million, or $0.74 per diluted share, for the third quarter of 2024. This also compares to net income available to common shareholders of $18.5 million, or $0.84 per diluted share, for the fourth quarter of 2023. EXHIBIT 99.1 Midland ...