Midland States Bancorp, Inc. Announces Preliminary 2025 First Quarter Results
Midland States Bancorp reported preliminary Q1 2025 results with net income of $12.6 million ($0.57 per share). The bank is currently completing an evaluation of third-party lending arrangements and potential goodwill impairment, delaying its 2024 Annual Report filing.
Key financial metrics include:
- Net interest margin: 3.48%
- Total loans: $5.02 billion
- Total deposits: $5.94 billion
- Wealth management revenue: $7.4 million
Notable developments include the sale of $330 million in GreenSky loans, representing 89% of their portfolio. Credit quality shows improvement with no significant new substandard loans. Net charge-offs were $16.9 million, with $11.1 million fully reimbursed from third-party programs. The bank maintains strong capital ratios, with the Tier 1 leverage ratio at 9.90% for Midland States Bank and 9.55% for the holding company.
Midland States Bancorp ha comunicato i risultati preliminari del primo trimestre 2025 con un utile netto di 12,6 milioni di dollari (0,57 dollari per azione). La banca sta attualmente completando una valutazione degli accordi di prestito con terze parti e di un potenziale impairment dell'avviamento, ritardando la presentazione del bilancio annuale 2024.
I principali indicatori finanziari includono:
- Margine di interesse netto: 3,48%
- Totale prestiti: 5,02 miliardi di dollari
- Totale depositi: 5,94 miliardi di dollari
- Ricavi dalla gestione patrimoniale: 7,4 milioni di dollari
Tra gli sviluppi rilevanti si segnala la vendita di prestiti GreenSky per 330 milioni di dollari, pari all'89% del loro portafoglio. La qualit脿 del credito mostra miglioramenti senza nuovi prestiti substandard significativi. Le svalutazioni nette sono state di 16,9 milioni di dollari, di cui 11,1 milioni completamente rimborsati da programmi di terze parti. La banca mantiene solidi rapporti patrimoniali, con un rapporto di leva Tier 1 del 9,90% per Midland States Bank e del 9,55% per la holding.
Midland States Bancorp report贸 resultados preliminares del primer trimestre de 2025 con un ingreso neto de 12,6 millones de d贸lares (0,57 d贸lares por acci贸n). El banco est谩 finalizando una evaluaci贸n de acuerdos de pr茅stamos con terceros y una posible deterioraci贸n del fondo de comercio, lo que ha retrasado la presentaci贸n del informe anual de 2024.
Las m茅tricas financieras clave incluyen:
- Margen neto de inter茅s: 3,48%
- Pr茅stamos totales: 5,02 mil millones de d贸lares
- Dep贸sitos totales: 5,94 mil millones de d贸lares
- Ingresos por gesti贸n patrimonial: 7,4 millones de d贸lares
Entre los desarrollos notables se encuentra la venta de pr茅stamos GreenSky por 330 millones de d贸lares, que representan el 89% de su cartera. La calidad crediticia muestra mejoras sin nuevos pr茅stamos subest谩ndar significativos. Las cancelaciones netas fueron de 16,9 millones de d贸lares, con 11,1 millones totalmente reembolsados por programas de terceros. El banco mantiene s贸lidos 铆ndices de capital, con una raz贸n de apalancamiento Tier 1 del 9,90% para Midland States Bank y del 9,55% para la empresa matriz.
Midland States Bancorp電� 2025雲� 1攵勱赴 鞓堧箘 鞁れ爜鞙茧 靾滌澊鞚� 1,260毵� 雼煬(欤茧嫻 0.57雼煬)毳� 氤搓碃頄堨姷雼堧嫟. 鞚�頄夓潃 順勳灛 鞝�3鞛� 雽�於� 瓿勳暯 氚� 鞛犾灛鞝� 鞓侅梾甓� 靻愳儊 韽夑皜毳� 鞕勲 欷戩澊氅�, 鞚措 鞚疙暣 2024雲� 鞐半 氤搓碃靹� 鞝滌稖鞚� 歆�鞐半悩瓿� 鞛堨姷雼堧嫟.
欤检殧 鞛 歆�響滊姅 雼れ潓瓿� 臧欖姷雼堧嫟:
- 靾涤澊鞛愲歆�: 3.48%
- 齑� 雽�於滉笀: 50鞏� 2觳滊 雼煬
- 齑� 鞓堦笀: 59鞏� 4觳滊 雼煬
- 鞛愳偘甏�毽� 靾橃澋: 740毵� 雼煬
欤检殧 臧滊皽 靷暛鞙茧電� 韽姼韽措Μ鞓れ潣 89%鞐� 頃措嫻頃橂姅 3鞏� 3,000毵� 雼煬 攴滊鞚� GreenSky 雽�於� 毵り皝鞚� 鞛堨姷雼堧嫟. 鞁犾毄 頀堨鞚� 臧滌劆霅橃柎 靸堧鞖� 欷戨寑頃� 攵�鞁� 雽�於滌潃 鞐嗢姷雼堧嫟. 靾� 雽�靻愳儊臧侅潃 1,690毵� 雼煬鞓�鞙茧┌, 鞚� 欷� 1,110毵� 雼煬電� 鞝�3鞛� 頂勲攴鸽灗鞐愳劀 鞝勳暋 頇橁笁氚涭晿鞀惦媹雼�. 鞚�頄夓潃 Midland States Bank鞚� Tier 1 霠堧矂毽 牍勳湪 9.90%, 歆�欤柬殞靷潣 9.55%搿� 臧曧暅 鞛愲掣 牍勳湪鞚� 鞙犾頃橁碃 鞛堨姷雼堧嫟.
Midland States Bancorp a publi茅 des r茅sultats pr茅liminaires pour le premier trimestre 2025 avec un b茅n茅fice net de 12,6 millions de dollars (0,57 dollar par action). La banque est en train de finaliser une 茅valuation des accords de pr锚t avec des tiers et d鈥檜ne 茅ventuelle d茅pr茅ciation du goodwill, ce qui retarde le d茅p么t de son rapport annuel 2024.
Les principaux indicateurs financiers comprennent :
- Marge nette d鈥檌nt茅r锚t : 3,48%
- Total des pr锚ts : 5,02 milliards de dollars
- Total des d茅p么ts : 5,94 milliards de dollars
- Revenus de la gestion de patrimoine : 7,4 millions de dollars
Parmi les d茅veloppements notables, la vente de pr锚ts GreenSky pour 330 millions de dollars, repr茅sentant 89 % de leur portefeuille. La qualit茅 du cr茅dit s鈥檃m茅liore, sans nouveaux pr锚ts douteux significatifs. Les pertes nettes sur cr茅ances se sont 茅lev茅es 脿 16,9 millions de dollars, dont 11,1 millions enti猫rement rembours茅s par des programmes tiers. La banque maintient des ratios de capital solides, avec un ratio de levier Tier 1 de 9,90 % pour Midland States Bank et de 9,55 % pour la soci茅t茅 m猫re.
Midland States Bancorp meldete vorl盲ufige Ergebnisse f眉r das erste Quartal 2025 mit einem Nettogewinn von 12,6 Millionen US-Dollar (0,57 US-Dollar je Aktie). Die Bank befindet sich derzeit in der abschlie脽enden Bewertung von Drittanbieter-Kreditvereinbarungen und einer m枚glichen Wertminderung des Firmenwerts, was die Einreichung des Gesch盲ftsberichts 2024 verz枚gert.
Wichtige Finanzkennzahlen sind:
- Nettozinsmarge: 3,48%
- Gesamtkredite: 5,02 Milliarden US-Dollar
- Gesamteinlagen: 5,94 Milliarden US-Dollar
- Ertr盲ge aus Verm枚gensverwaltung: 7,4 Millionen US-Dollar
Bemerkenswerte Entwicklungen umfassen den Verkauf von GreenSky-Krediten im Wert von 330 Millionen US-Dollar, was 89 % ihres Portfolios ausmacht. Die Kreditqualit盲t verbessert sich, es gibt keine wesentlichen neuen notleidenden Kredite. Nettoabschreibungen betrugen 16,9 Millionen US-Dollar, davon wurden 11,1 Millionen US-Dollar vollst盲ndig durch Drittanbieterprogramme erstattet. Die Bank h盲lt solide Kapitalquoten, mit einer Tier-1-Leverage-Ratio von 9,90 % f眉r Midland States Bank und 9,55 % f眉r die Holdinggesellschaft.
- Strong net interest margin of 3.48% with declining funding costs
- Community Bank loans increased by $56.8M (1.8%) with strong pipelines
- Retail deposits grew by $96.8M through marketing strategy
- Wealth Management revenue reached $7.4M with $4.10B assets under administration
- Bank maintains well-capitalized status with 13.10% total capital ratio
- Noninterest-bearing deposits increased by $35.1M
- Delayed filing of 2024 Annual Report due to accounting review
- Net charge-offs of $16.9M, with $4.5M losses in equipment finance portfolio
- High nonperforming loans at $140M (2.79% of total loans)
- Total deposits decreased by $260.8M from December 2024
- Total loans decreased by $149.5M from December 2024
- Potential goodwill impairment under evaluation
- Higher legal fees and collection expenses impacting noninterest expense
Insights
MSBI reports mixed Q1 2025 results amid ongoing accounting review, credit cleanup, and strategic portfolio reduction, while maintaining solid capital ratios.
Midland States Bancorp's preliminary Q1 2025 results reveal a $12.6 million net income ($0.57 per diluted share) while the company works through accounting issues related to third-party lending arrangements that have delayed their 2024 annual report. The bank is maintaining a 3.48% net interest margin, which represents a solid performance in the current rate environment.
Credit quality remains a key focus area with $16.9 million in net charge-offs, though notably $11.1 million of these were fully reimbursed through third-party programs. The bank reported nonperforming loans of $140 million (2.79% of total loans) and an allowance for credit losses of $90.5 million (1.80% of total loans), indicating ongoing credit challenges.
The completion of the $330 million GreenSky loan portfolio sale (representing 89% of their GreenSky exposure) is a significant step in the bank's strategic risk reduction. The intentional $159.3 million decrease in Specialty Finance loans further demonstrates management's commitment to reducing higher-risk exposures.
Total deposits decreased by $260.8 million to $5.94 billion, though management attributes this partly to normal first quarter distributions and seasonal adjustments. On the positive side, noninterest-bearing deposits increased by $35.1 million and retail deposits grew by $96.8 million.
Capital ratios remain well above regulatory requirements, with the bank reporting a total capital to risk-weighted assets ratio of 13.10% and tangible common equity to tangible assets of 6.32%, providing adequate cushion as they navigate through their credit cleanup efforts and accounting review.
MSBI's proactive credit risk management shows mixed results with substantial charge-offs offset by focused portfolio reduction and maintained reserve levels.
Midland States' credit risk profile presents a complex picture in Q1 2025. The $16.9 million in net charge-offs (equating to a 1.35% annualized rate) appears concerning at first glance, but requires deeper analysis. Approximately $11.1 million of these charge-offs came from third-party lending programs with full reimbursement, effectively transferring that risk. The remaining $4.5 million primarily stemmed from the trucking segment of their equipment finance portfolio 鈥� a known troubled sector experiencing industry-specific challenges.
The bank's nonperforming loan level of $140 million (2.79% of total loans) remains elevated, though management noted no significant new problem loans were identified during the quarter. The substandard accruing loans of $75.7 million represents another pocket of potential risk, though these also decreased slightly quarter-over-quarter.
The strategic divestiture of $330 million in GreenSky loans (89% of that portfolio) significantly reduces consumer credit exposure. Similarly, the $44.9 million reduction in equipment finance balances coupled with tighter underwriting standards demonstrates a deliberate de-risking approach in that troubled segment.
Reserves appear adequate with an allowance for credit losses at 1.80% of total loans, providing 64.60% coverage of nonperforming loans. The $8.3 million provision this quarter primarily addresses the continuing equipment finance portfolio deterioration.
These credit metrics suggest a bank actively managing through identified problem areas while maintaining sufficient capital buffers, though the elevated nonperforming loan ratio warrants continued monitoring.
EFFINGHAM, Ill., April 30, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the 鈥淐ompany鈥�) reported preliminary results for the first quarter of 2025. As previously disclosed, the Company is completing its evaluation, subject to review by its independent registered public accounting firm, of the accounting and financial reporting of third-party lending and servicing arrangements, including the collection and analysis of third-party documentation, not material to tangible equity. This process is ongoing and must be completed for the Company to file its Annual Report on Form 10-K for the year ended December 31, 2024 (the 鈥�2024 Annual Report鈥�), which is expected to include restated financial statements for the applicable periods.
While the Company works diligently to complete this process, the Company is providing preliminary results for the first quarter of 2025. These results reflect the updated accounting methodology for the remaining third party lending and servicing arrangements. The Company鈥檚 actual results may differ materially from these preliminary financial results. The Company is also completing an evaluation of whether there is an impairment to its goodwill, including obtaining valuation information from third parties. An impairment, if determined to exist, would not affect the tangible equity or the regulatory capital ratios of the Company. This preliminary financial data has been prepared by and is the responsibility of the Company. The Company鈥檚 independent auditor has not reviewed or audited these preliminary financial results. The results should be considered preliminary and are subject to adjustment based on the results of the process, the restatement and other developments that may arise between now and the time the Company鈥檚 2024 audited consolidated financial statements are issued.
As a result of the delays in the filing of the 2024 Annual Report, certain subsequent events have been evaluated and will be recorded in the Company鈥檚 audited financial statements for the year ended December 31, 2024. The Company will continue to evaluate subsequent events that occur prior to the date the financial statements for the year ended December 31, 2024 are available to be issued.
Preliminary 2025 First Quarter Results
- Net income available to common shareholders of
$12.6 million , or$0.57 per diluted share, for the first quarter of 2025 - Pre-tax, pre-provision earnings of
$27.0 million , or$1.12 per diluted share, for the first quarter of 2025
Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:
鈥淲e are working diligently to resolve the delay in our audited financials, although we want to emphasize that we do not expect a material impact to first quarter tangible equity or regulatory capital levels, and that our unaudited preliminary first quarter results already reflect the previously disclosed accounting methodology changes, for a small third party guaranteed loan portfolio.
鈥淚mproving credit quality remains a strategic priority, and during the first quarter we had no significant new substandard or nonperforming loans identified, with two-thirds of net charge-offs in the quarter taking place within third party programs that were fully reimbursed. The previously disclosed sale of
鈥淥ur underlying profitability trends were favorable in the first quarter, with a strong net interest margin of
Key Points for First Quarter and Outlook
Continued Credit Clean-up; Tightened Credit Standards
- The Company closed its sale of participation interests of consumer loans originated through the GreenSky program. The sale included approximately
$330 million , or89% , of the Company鈥檚 GreenSky portfolio. The remaining portfolio will be retained by the Company under a new servicing agreement. - Substandard accruing loans and nonperforming loans decreased slightly to
$75.7 million and$140.0 million at March 31, 2025, respectively. No significant new substandard or nonperforming loans were identified during the quarter. - Net charge-offs were
$16.9 million for the quarter, including$11.1 million of fully reimbursed charge-offs related to our third party lending programs. Net charge-offs in our equipment finance portfolio were approximately$4.5 million as we continue to see credit issues primarily in the trucking industry. - Provision for credit losses on loans was
$8.3 million for the first quarter of 2025, primarily as a result of continued trends in the equipment finance portfolio. - Allowance for credit losses on loans was
$90.5 million , or1.80% of total loans.
The table below summarizes certain information regarding the Company鈥檚 loan portfolio asset quality as of March 31, 2025.
| (in thousands) | 听 | As of and for the Three Months Ended March 31, 2025 | ||
| Asset Quality | 听 | 听 | ||
| Loans 30-89 days past due | 听 | $ | 43,522 | 听 |
| Nonperforming loans | 听 | 听 | 140,020 | 听 |
| Nonperforming assets | 听 | 听 | 146,080 | 听 |
| Substandard accruing loans | 听 | 听 | 75,668 | 听 |
| Net charge-offs | 听 | 听 | 16,878 | 听 |
| Loans 30-89 days past due to total loans | 听 | 听 | 0.87 | % |
| Nonperforming loans to total loans | 听 | 听 | 2.79 | % |
| Nonperforming assets to total assets | 听 | 听 | 1.96 | % |
| Allowance for credit losses to total loans | 听 | 听 | 1.80 | % |
| Allowance for credit losses to nonperforming loans | 听 | 听 | 64.60 | % |
| Net charge-offs to average loans | 听 | 听 | 1.35 | % |
| 听 | 听 | 听 | 听 | 听 |
Solid Growth Trends in Community Bank & Wealth Management
- Total loans at March 31, 2025 were
$5.02 billion , a decrease of$149.5 million from December 31, 2024. Key changes in the loan portfolio were as follows:- Loans originated by our Community Bank increased
$56.8 million , or1.8% , from December 31, 2024, pipelines remain strong - We continue to pursue an intentional decrease in our Specialty Finance loan portfolio, as we tighten credit standards. Balances in this loan portfolio decreased
$159.3 million during the quarter. - Equipment finance portfolio balances declined
$44.9 million during the quarter as we continue to reduce the overall balances in this unit and tighten underwriting standards.
- Loans originated by our Community Bank increased
- Total deposits were
$5.94 billion at March 31, 2025, a decrease of$260.8 million from December 31, 2024. The decline in deposits reflects the following:- Noninterest-bearing deposits increased
$35.1 million in the quarter. - Retail deposits increased by
$96.8 million through a growth and marketing strategy implemented late in the first quarter of 2025, along with higher average deposits held by retail customers. - Brokered deposits, including both money market and time deposits decreased by
$115.4 million . - Sweep accounts included in interest bearing checking decreased by
$115.4 million , of which$80 million was related to normal first quarter distributions for one large depositor with the remainder due to seasonal adjustments. - Servicing deposits decreased by
$53.9 million .
- Noninterest-bearing deposits increased
- Wealth Management revenue totaled
$7.4 million in the first quarter of 2025. Assets under administration were$4.10 billion at March 31, 2025. The Company added six new sales positions in the first quarter of 2025 and continues to experience strong pipelines.
Net Interest Margin
- Net interest margin was
3.48% , and we saw a continued decline in the cost of funding. Rate cuts enacted by the Federal Reserve Bank in late 2024 continue to result in a lower cost of deposits for the Company, which fell to2.29% in the first quarter of 2025.
The following table summarizes certain factors affecting the Company鈥檚 net interest margin for the first quarter of 2025.
| 听 | 听 | For the Three Months Ended | |||||||
| (dollars in thousands) | 听 | March 31, 2025 | |||||||
| Interest-earning assets | 听 | Average Balance | 听 | Interest & Fees | 听 | Yield/Rate | |||
| Cash and cash equivalents | 听 | $ | 68,671 | 听 | $ | 718 | 听 | 4.24 | % |
| Investment securities(1) | 听 | 听 | 1,311,887 | 听 | 听 | 15,517 | 听 | 4.80 | 听 |
| Loans(1)(2) | 听 | 听 | 5,057,394 | 听 | 听 | 78,014 | 听 | 6.26 | 听 |
| Loans held for sale | 听 | 听 | 326,348 | 听 | 听 | 4,563 | 听 | 5.67 | 听 |
| Nonmarketable equity securities | 听 | 听 | 35,614 | 听 | 听 | 647 | 听 | 7.37 | 听 |
| Total interest-earning assets | 听 | 听 | 6,799,914 | 听 | 听 | 99,459 | 听 | 5.93 | 听 |
| Noninterest-earning assets | 听 | 听 | 687,870 | 听 | 听 | 听 | 听 | ||
| Total assets | 听 | $ | 7,487,784 | 听 | 听 | 听 | 听 | ||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||
| Interest-Bearing Liabilities | 听 | 听 | 听 | 听 | 听 | 听 | |||
| Interest-bearing deposits | 听 | $ | 5,074,007 | 听 | $ | 34,615 | 听 | 2.77 | % |
| Short-term borrowings | 听 | 听 | 73,767 | 听 | 听 | 700 | 听 | 3.85 | 听 |
| FHLB advances & other borrowings | 听 | 听 | 299,578 | 听 | 听 | 3,163 | 听 | 4.28 | 听 |
| Subordinated debt | 听 | 听 | 77,752 | 听 | 听 | 1,387 | 听 | 7.23 | 听 |
| Trust preferred debentures | 听 | 听 | 51,283 | 听 | 听 | 1,200 | 听 | 9.49 | 听 |
| Total interest-bearing liabilities | 听 | 听 | 5,576,387 | 听 | 听 | 41,065 | 听 | 2.99 | 听 |
| Noninterest-bearing deposits | 听 | 听 | 1,052,181 | 听 | 听 | 听 | 听 | ||
| Other noninterest-bearing liabilities | 听 | 听 | 124,638 | 听 | 听 | 听 | 听 | ||
| Shareholders鈥� equity | 听 | 听 | 734,578 | 听 | 听 | 听 | 听 | ||
| Total liabilities and shareholder鈥檚 equity | 听 | $ | 7,487,784 | 听 | 听 | 听 | 听 | ||
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||
| Net Interest Margin | 听 | 听 | 听 | $ | 58,394 | 听 | 3.48 | % | |
| 听 | 听 | 听 | 听 | 听 | 听 | 听 | |||
| Cost of Deposits | 听 | 听 | 听 | 听 | 听 | 2.29 | % | ||
| (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 |
| (2) | Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. |
| 听 | 听 |
Trends in Noninterest Income and Expense
- Noninterest income was
$17.8 million for the first quarter of 2025 and included a loss on limited partnership investments of$0.6 million and credit enhancement losses of$0.6 million , offset by income from death benefits on life insurance policies of$0.3 million . - As of the date of this earnings release, the Company expects noninterest income of approximately
$17.0 million to$17.5 million in the near term quarters after consideration of credit enhancement income or losses. - Noninterest expense was
$48.9 million for the first quarter of 2025 and was impacted by an additional$1.4 million in severance expense and$0.7 million in professional fees. The Company continues to experience higher levels of legal fees and other expenses related to loan collections. - As of the date of this earnings release, the Company expects the near term operating expense run rate to be approximately
$48.0 million to$49.0 million .
First Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
| 听 | 听 | As of and for the Three Months Ended March 31, 2025 | ||
| Return on average assets | 听 | 听 | 0.80 | % |
| Pre-tax, pre-provision return on average assets(1) | 听 | 听 | 1.46 | % |
| Net interest margin | 听 | 听 | 3.48 | % |
| Efficiency ratio (1) | 听 | 听 | 64.24 | % |
| Noninterest expense to average assets | 听 | 听 | 2.65 | % |
| Net charge-offs to average loans | 听 | 听 | 1.35 | % |
| Tangible book value per share at period end (1) | 听 | $ | 21.43 | 听 |
| Diluted earnings per common share | 听 | $ | 0.57 | 听 |
| Common shares outstanding at period end | 听 | 听 | 21,503,036 | 听 |
| (1) | Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures. |
| 听 | 听 |
Capital
At March 31, 2025, Midland States Bank and the Company exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a 鈥樷�榳ell-capitalized鈥欌�� financial institution, as summarized in the following table:
| 听 | As of March 31, 2025 | ||||
| 听 | Midland States Bank | 听 | Midland States Bancorp, Inc. | 听 | Minimum Regulatory Requirements (2) |
| Total capital to risk-weighted assets | 听 | 听 | |||
| Tier 1 capital to risk-weighted assets | 听 | 听 | |||
| Common equity Tier 1 capital to risk-weighted assets | 听 | 听 | |||
| Tier 1 leverage ratio | 听 | 听 | |||
| Tangible common equity to tangible assets (1) | N/A | 听 | 听 | N/A | |
| (1) | A non-GAAP financial measure. Refer to page 10 for a reconciliation to the comparable GAAP financial measure. |
| (2) | Includes the capital conservation buffer of |
| 听 | 听 |
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 March 31, 2025, the Company had total assets of approximately
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 鈥淧re-tax, pre-provision earnings,鈥� 鈥淧re-tax, pre-provision diluted earnings per share,鈥� 鈥淧re-tax, pre-provision return on average assets,鈥� 鈥淓fficiency ratio,鈥� 鈥淭angible common equity to tangible assets,鈥� and 鈥淭angible book value per share.鈥� The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company鈥檚 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鈥檚 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 the expected timing and results of the Company鈥檚 audit for the year ended December 31, 2024, and the Company鈥檚 ongoing evaluation of whether there is an impairment to its goodwill; the fact that the completion and filing of the 2024 Annual Report has taken, and may continue to take, longer than expected; 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," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
CONTACTS:
Jeffrey G. Ludwig, President and CEO, at 听or (217) 342-7321
Eric T. Lemke, Chief Financial Officer, at 听or (217) 342-7321
| MIDLAND STATES BANCORP, INC. | ||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) | ||||
| 听 | 听 | 听 | ||
| (dollars in thousands) | 听 | As of March 31, 2025 | ||
| Assets | 听 | 听 | ||
| Cash and cash equivalents | 听 | $ | 102,006 | 听 |
| Investment securities | 听 | 听 | 1,368,405 | 听 |
| Loans | 听 | 听 | 5,018,053 | 听 |
| Allowance for credit losses on loans | 听 | 听 | (90,458 | ) |
| Total loans, net | 听 | 听 | 4,927,595 | 听 |
| Loans held for sale | 听 | 听 | 287,821 | 听 |
| Premises and equipment, net | 听 | 听 | 86,719 | 听 |
| Other real estate owned | 听 | 听 | 4,669 | 听 |
| Loan servicing rights, at lower of cost or fair value | 听 | 听 | 17,278 | 听 |
| Goodwill | 听 | 听 | 161,904 | 听 |
| Other intangible assets, net | 听 | 听 | 11,189 | 听 |
| Company-owned life insurance | 听 | 听 | 212,336 | 听 |
| Credit enhancement asset | 听 | 听 | 5,614 | 听 |
| Other assets | 听 | 听 | 272,217 | 听 |
| Total assets | 听 | $ | 7,457,753 | 听 |
| 听 | 听 | 听 | ||
| Liabilities and Shareholders' Equity | 听 | 听 | ||
| Noninterest-bearing demand deposits | 听 | $ | 1,090,707 | 听 |
| Interest-bearing deposits | 听 | 听 | 4,845,727 | 听 |
| Total deposits | 听 | 听 | 5,936,434 | 听 |
| Short-term borrowings | 听 | 听 | 40,224 | 听 |
| FHLB advances and other borrowings | 听 | 听 | 498,000 | 听 |
| Subordinated debt | 听 | 听 | 77,754 | 听 |
| Trust preferred debentures | 听 | 听 | 51,358 | 听 |
| Other liabilities | 听 | 听 | 109,599 | 听 |
| Total liabilities | 听 | 听 | 6,713,369 | 听 |
| Total shareholders鈥� equity | 听 | 听 | 744,384 | 听 |
| Total liabilities and shareholders鈥� equity | 听 | $ | 7,457,753 | 听 |
| 听 | 听 | 听 | 听 | 听 |
| MIDLAND STATES BANCORP, INC. | ||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||
| 听 | 听 | 听 | ||
| (in thousands, except per share data) | 听 | For the Three Months Ended March 31, 2025 | ||
| Net interest income: | 听 | 听 | ||
| Interest income | 听 | $ | 99,251 | 听 |
| Interest expense | 听 | 听 | 41,065 | 听 |
| Net interest income | 听 | 听 | 58,186 | 听 |
| Provision for credit losses on loans | 听 | 听 | 8,250 | 听 |
| Net interest income after provision for credit losses | 听 | 听 | 49,936 | 听 |
| Noninterest income: | 听 | 听 | ||
| Wealth management revenue | 听 | 听 | 7,350 | 听 |
| Service charges on deposit accounts | 听 | 听 | 3,305 | 听 |
| Interchange revenue | 听 | 听 | 3,151 | 听 |
| Residential mortgage banking revenue | 听 | 听 | 676 | 听 |
| Income on company-owned life insurance | 听 | 听 | 2,334 | 听 |
| Credit enhancement (loss) income | 听 | 听 | (578 | ) |
| Other income | 听 | 听 | 1,525 | 听 |
| Total noninterest income | 听 | 听 | 17,763 | 听 |
| Noninterest expense: | 听 | 听 | ||
| Salaries and employee benefits | 听 | 听 | 26,416 | 听 |
| Occupancy and equipment | 听 | 听 | 4,498 | 听 |
| Data processing | 听 | 听 | 6,919 | 听 |
| Professional services | 听 | 听 | 2,741 | 听 |
| Amortization of intangible assets | 听 | 听 | 911 | 听 |
| FDIC insurance | 听 | 听 | 1,463 | 听 |
| Other expense | 听 | 听 | 5,977 | 听 |
| Total noninterest expense | 听 | 听 | 48,925 | 听 |
| Income before income taxes | 听 | 听 | 18,774 | 听 |
| Income tax expense | 听 | 听 | 3,975 | 听 |
| Net income | 听 | 听 | 14,799 | 听 |
| Preferred stock dividends | 听 | 听 | 2,228 | 听 |
| Net income available to common shareholders | 听 | $ | 12,571 | 听 |
| 听 | 听 | 听 | ||
| Basic earnings per common share | 听 | $ | 0.57 | 听 |
| Diluted earnings per common share | 听 | $ | 0.57 | 听 |
| 听 | 听 | 听 | 听 | 听 |
| MIDLAND STATES BANCORP, INC. | |||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued) | |||
| 听 | 听 | 听 | |
| (in thousands) | 听 | As of March 31, 2025 | |
| Loan Portfolio Mix | 听 | 听 | |
| Commercial loans | 听 | $ | 869,009 |
| Equipment finance loans | 听 | 听 | 390,276 |
| Equipment finance leases | 听 | 听 | 373,168 |
| Total commercial loans and leases | 听 | 听 | 1,632,453 |
| Commercial real estate | 听 | 听 | 2,592,325 |
| Construction and land development | 听 | 听 | 264,966 |
| Residential real estate | 听 | 听 | 373,095 |
| Consumer | 听 | 听 | 155,214 |
| Total loans | 听 | $ | 5,018,053 |
| 听 | 听 | 听 | |
| Loan Portfolio Segment | 听 | 听 | |
| Regions | 听 | 听 | |
| Eastern | 听 | $ | 897,792 |
| Northern | 听 | 听 | 747,028 |
| Southern | 听 | 听 | 711,787 |
| St. Louis | 听 | 听 | 902,743 |
| Total Community Bank | 听 | 听 | 3,259,350 |
| Specialty finance | 听 | 听 | 865,401 |
| Equipment finance | 听 | 听 | 763,444 |
| Non-core consumer and other(1) | 听 | 听 | 129,858 |
| Total loans | 听 | $ | 5,018,053 |
| 听 | 听 | 听 | |
| Deposit Portfolio Mix | 听 | 听 | |
| Noninterest-bearing demand | 听 | $ | 1,090,707 |
| Interest-bearing: | 听 | 听 | |
| Checking | 听 | 听 | 2,161,282 |
| Money market | 听 | 听 | 1,154,403 |
| Savings | 听 | 听 | 522,663 |
| Time | 听 | 听 | 818,732 |
| Brokered time | 听 | 听 | 188,647 |
| Total deposits | 听 | $ | 5,936,434 |
| 听 | 听 | 听 | |
| Deposit Portfolio by Channel | 听 | 听 | |
| Retail | 听 | $ | 2,846,494 |
| Commercial | 听 | 听 | 1,074,837 |
| Public Funds | 听 | 听 | 490,374 |
| Wealth & Trust | 听 | 听 | 301,251 |
| Servicing | 听 | 听 | 842,567 |
| Brokered Deposits | 听 | 听 | 358,063 |
| Other | 听 | 听 | 22,848 |
| Total deposits | 听 | $ | 5,936,434 |
| (1) | Non-core consumer loans refers to consumer loan portfolios originated through third parties. |
| 听 | 听 |
听
| MIDLAND STATES BANCORP, INC. | ||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||
| 听 | 听 | 听 | ||
| Pre-Tax, Pre-Provision Earnings Reconciliation | ||||
| 听 | 听 | 听 | ||
| 听 | 听 | For the Three Months Ended March 31, 2025 | ||
| Income before income taxes | 听 | $ | 18,774 | 听 |
| Provision for credit losses | 听 | 听 | 8,250 | 听 |
| Pre-tax, pre-provision earnings | 听 | $ | 27,024 | 听 |
| Pre-tax, pre-provision earnings per diluted share | 听 | $ | 1.12 | 听 |
| Pre-tax, pre-provision return on average assets | 听 | 听 | 1.46 | % |
| 听 | 听 | 听 | ||
| Efficiency Ratio Reconciliation | ||||
| 听 | 听 | 听 | ||
| (dollars in thousands) | 听 | For the Three Months Ended March 31, 2025 | ||
| Noninterest expense - GAAP | 听 | $ | 48,925 | 听 |
| 听 | 听 | 听 | ||
| Net interest income - GAAP | 听 | $ | 58,186 | 听 |
| Effect of tax-exempt income | 听 | 听 | 208 | 听 |
| Adjusted net interest income | 听 | 听 | 58,394 | 听 |
| 听 | 听 | 听 | ||
| Noninterest income - GAAP | 听 | 听 | 17,763 | 听 |
| 听 | 听 | 听 | ||
| Adjusted total revenue | 听 | $ | 76,157 | 听 |
| 听 | 听 | 听 | ||
| Efficiency ratio | 听 | 听 | 64.24 | % |
| 听 | 听 | 听 | 听 | 听 |
| Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share | ||||
| 听 | 听 | 听 | ||
| (dollars in thousands, except per share data) | 听 | As of March 31, 2025 | ||
| Shareholders' Equity to Tangible Common Equity | ||||
| Total shareholders' equity鈥擥AAP | 听 | $ | 744,384 | 听 |
| Adjustments: | 听 | 听 | ||
| Preferred Stock | 听 | 听 | (110,548 | ) |
| Goodwill | 听 | 听 | (161,904 | ) |
| Other intangible assets, net | 听 | 听 | (11,189 | ) |
| Tangible common equity | 听 | 听 | 460,743 | 听 |
| 听 | 听 | 听 | ||
| Total Assets to Tangible Assets: | 听 | 听 | ||
| Total assets鈥擥AAP | 听 | $ | 7,457,753 | 听 |
| Adjustments: | 听 | 听 | ||
| Goodwill | 听 | 听 | (161,904 | ) |
| Other intangible assets, net | 听 | 听 | (11,189 | ) |
| Tangible assets | 听 | $ | 7,284,660 | 听 |
| 听 | 听 | 听 | ||
| Common Shares Outstanding | 听 | 听 | 21,503,036 | 听 |
| 听 | 听 | 听 | ||
| Tangible Common Equity to Tangible Assets | 听 | 听 | 6.32 | % |
| Tangible Book Value Per Share | 听 | $ | 21.43 | 听 |
FAQ
What are Midland States Bancorp (MSBI) Q1 2025 earnings per share?
How much did MSBI sell its GreenSky loan portfolio for in April 2025?
What is MSBI's net interest margin for Q1 2025?
What are MSBI's loan quality metrics for Q1 2025?
How much are Midland States Bancorp's total deposits in Q1 2025?
What is MSBI's capital position as of Q1 2025?
