Midland States Bancorp, Inc. Announces 2025 Second Quarter Results
Midland States Bancorp (NASDAQ:MSBI) reported Q2 2025 net income of $9.8 million ($0.44 per diluted share), compared to $23.5 million ($1.06 per share) in Q2 2024. The company showed improvement from Q1 2025's loss of $143.2 million, which included a $154.0 million goodwill impairment.
Key Q2 2025 metrics include net interest margin of 3.56% (up 7 basis points), nonperforming assets ratio improving to 1.56% (from 2.08%), and total capital ratio of 14.50%. The bank reported $29.9 million in net charge-offs, primarily from specialty finance and equipment finance portfolios.
Notable improvements include reduced nonperforming assets to $111 million, successful exit of two large non-performing relationships worth $29 million in July, and continued reduction in higher-risk portfolios. Total loans stood at $5.06 billion with total deposits at $5.95 billion.
Midland States Bancorp (NASDAQ:MSBI) ha riportato un utile netto di 9,8 milioni di dollari nel secondo trimestre del 2025 (0,44 dollari per azione diluita), rispetto ai 23,5 milioni di dollari (1,06 dollari per azione) del secondo trimestre 2024. La società ha mostrato un miglioramento rispetto alla perdita di 143,2 milioni di dollari del primo trimestre 2025, che includeva una rettifica per riduzione di valore dell'avviamento di 154,0 milioni di dollari.
I principali indicatori del secondo trimestre 2025 includono un margine di interesse netto del 3,56% (in aumento di 7 punti base), un miglioramento del rapporto tra attività non performanti e totale al 1,56% (dal 2,08%) e un indice di capitale totale del 14,50%. La banca ha segnalato 29,9 milioni di dollari in svalutazioni nette, principalmente dai portafogli di finanziamenti specializzati e di attrezzature.
Tra i miglioramenti degni di nota vi sono la riduzione delle attività non performanti a 111 milioni di dollari, l'uscita con successo da due grandi rapporti non performanti per un valore di 29 milioni di dollari a luglio e la continua riduzione dei portafogli a rischio più elevato. I prestiti totali ammontavano a 5,06 miliardi di dollari con depositi totali pari a 5,95 miliardi di dollari.
Midland States Bancorp (NASDAQ:MSBI) reportó un ingreso neto de 9,8 millones de dólares en el segundo trimestre de 2025 (0,44 dólares por acción diluida), en comparación con 23,5 millones de dólares (1,06 dólares por acción) en el segundo trimestre de 2024. La compañía mostró una mejora respecto a la pérdida de 143,2 millones de dólares en el primer trimestre de 2025, que incluyó una deterioro del valor del fondo de comercio de 154,0 millones de dólares.
Las métricas clave del segundo trimestre de 2025 incluyen un margen neto de interés del 3,56% (un aumento de 7 puntos básicos), una mejora en la proporción de activos no rentables al 1,56% (desde 2,08%) y una ratio de capital total del 14,50%. El banco reportó 29,9 millones de dólares en cancelaciones netas, principalmente de las carteras de financiamiento especializado y financiamiento de equipos.
Las mejoras notables incluyen la reducción de activos no rentables a 111 millones de dólares, la salida exitosa de dos grandes relaciones no rentables por valor de 29 millones de dólares en julio, y la continua reducción de carteras de mayor riesgo. Los préstamos totales ascendieron a 5,06 mil millones de dólares con depósitos totales de 5,95 mil millones de dólares.
Midland States Bancorp (NASDAQ:MSBI)는 2025년 2분기에 980만 달러의 순이익(희석 주당 0.44달러)을 보고했으며, 이는 2024년 2분기의 2,350만 달러(주당 1.06달러)와 비교됩니다. 회사는 2025년 1분기 1억4,320만 달러 손실에서 개선을 보였으며, 이 손실에는 1억5,400만 달러의 영업권 손상차손이 포함되어 있었습니다.
2025년 2분기 주요 지표로는 순이자마진 3.56%(7bp 상승), 부실자산 비율이 1.56%(2.08%에서 개선), 총자본비율 14.50%가 있습니다. 은행은 주로 전문 금융 및 장비 금융 포트폴리오에서 발생한 2,990만 달러의 순대손상각비를 보고했습니다.
주요 개선 사항으로는 부실자산이 1억1,100만 달러로 감소한 점, 7월에 2건의 대규모 부실 관계(2,900만 달러)를 성공적으로 정리한 점, 고위험 포트폴리오의 지속적인 축소가 포함됩니다. 총 대출금은 50억6천만 달러, 총 예금은 59억5천만 달러였습니다.
Midland States Bancorp (NASDAQ:MSBI) a déclaré un bénéfice net de 9,8 millions de dollars au deuxième trimestre 2025 (0,44 dollar par action diluée), contre 23,5 millions de dollars (1,06 dollar par action) au deuxième trimestre 2024. La société a montré une amélioration par rapport à la perte de 143,2 millions de dollars au premier trimestre 2025, qui comprenait une dépréciation du goodwill de 154,0 millions de dollars.
Les indicateurs clés du deuxième trimestre 2025 incluent une marge d'intérêt nette de 3,56% (en hausse de 7 points de base), un ratio d'actifs non performants amélioré à 1,56% (contre 2,08%) et un ratio de capital total de 14,50%. La banque a enregistré 29,9 millions de dollars de pertes nettes sur créances, principalement issues des portefeuilles de financement spécialisé et de financement d'équipements.
Parmi les améliorations notables figurent la réduction des actifs non performants à 111 millions de dollars, la sortie réussie de deux grandes relations non performantes d'une valeur de 29 millions de dollars en juillet, ainsi que la poursuite de la réduction des portefeuilles à plus haut risque. Le total des prêts s'élevait à 5,06 milliards de dollars avec des dépôts totaux de 5,95 milliards de dollars.
Midland States Bancorp (NASDAQ:MSBI) meldete für das zweite Quartal 2025 einen Nettogewinn von 9,8 Millionen US-Dollar (0,44 US-Dollar je verwässerter Aktie) im Vergleich zu 23,5 Millionen US-Dollar (1,06 US-Dollar je Aktie) im zweiten Quartal 2024. Das Unternehmen zeigte eine Verbesserung gegenüber dem Verlust von 143,2 Millionen US-Dollar im ersten Quartal 2025, der eine Goodwill-Abschreibung von 154,0 Millionen US-Dollar beinhaltete.
Wichtige Kennzahlen für das zweite Quartal 2025 sind eine Nettozinsmarge von 3,56% (plus 7 Basispunkte), eine Verbesserung der Quote notleidender Vermögenswerte auf 1,56% (vorher 2,08%) und eine Gesamtkapitalquote von 14,50%. Die Bank meldete 29,9 Millionen US-Dollar an Nettoabschreibungen, hauptsächlich aus den Portfolios für Spezialfinanzierungen und Gerätefinanzierungen.
Bemerkenswerte Verbesserungen umfassen die Reduzierung notleidender Vermögenswerte auf 111 Millionen US-Dollar, den erfolgreichen Ausstieg aus zwei großen notleidenden Beziehungen im Wert von 29 Millionen US-Dollar im Juli sowie die fortgesetzte Verringerung von risikoreicheren Portfolios. Die Gesamtkredite beliefen sich auf 5,06 Milliarden US-Dollar, die Gesamteinlagen auf 5,95 Milliarden US-Dollar.
- Net interest margin improved to 3.56%, up 7 basis points from previous quarter
- Nonperforming assets decreased to $111 million (1.56% of total assets) from $151 million
- Community Bank loans increased $58.9 million (1.8%) quarter-over-quarter
- Pre-provision net revenue grew to $32.2 million from $27.0 million in Q1 2025
- Successfully exited two large non-performing relationships worth $29 million post-quarter
- Net income declined to $9.8 million from $23.5 million year-over-year
- High net charge-offs of $29.9 million for the quarter
- Provision for credit losses remained elevated at $17.4 million
- Continued credit issues in trucking industry affecting equipment finance portfolio
- Higher expenses related to loan collections and financial statement restatement
Insights
MSBI shows early credit recovery signs with NPAs down to 1.56%, but earnings remain pressured by high charge-offs in specialty finance portfolios.
Midland States Bancorp reported
Credit quality shows early signs of stabilization with nonperforming assets declining to
The credit issues remain concentrated in higher-risk specialty segments. Equipment finance charge-offs reached
On a positive note, core banking fundamentals improved. Net interest margin expanded 7 basis points to
Management's strategic focus on reducing higher-risk exposures while growing the core community bank and wealth management business (assets under administration:
EFFINGHAM, Ill., July 24, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of
This also compares to a net loss of
2025 Second Quarter Results
- Net income available to common shareholders of
$9.8 million , or$0.44 per diluted share, for the second quarter of 2025 - Adjusted earnings of
$9.8 million , or$0.44 per diluted share, compared to$10.8 million , or$0.49 per diluted share, in prior quarter - Pre-provision net revenue of
$32.2 million , or$1.48 per diluted share, for the second quarter of 2025 compared to$27.0 million , or$1.24 per diluted share, for the first quarter of 2025 - Net interest margin of
3.56% , compared to3.49% in prior quarter - Nonperforming assets to total assets of
1.56% , compared to2.08% in prior quarter - Total capital to risk-weighted assets of
14.50% and common equity tier 1 capital of9.02%
Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:
“Second quarter marked a notable step in returning Midland to a more normalized operating environment, with progress on several strategic initiatives ranging from growing our community bank to further improving our credit quality. Capital levels increased quarter-over-quarter, and we continue to target growing our common equity tier 1 capital ratio to our target of
During the quarter, we had limited new substandard or nonperforming loans identified, and importantly saw our non-performing assets decrease to
Profitability trends were also favorable in the second quarter, with net interest margin expanding 7 basis points to
Key Points for Second Quarter and Outlook
Acceleration of Credit Clean-up; Tightened Underwriting Standards
- Substandard accruing loans and nonperforming loans decreased to
$58.5 million and$109.5 million at June 30, 2025, respectively. No significant new substandard or nonperforming loans were identified during the quarter. - Net charge-offs were
$29.9 million for the quarter, including:$13.9 million of charge-offs in our specialty finance portfolio, of which$10.2 million was specifically reserved for in a prior quarter$4.7 million of fully reimbursed charge-offs related to our third party lending programs$3.9 million of charge-offs in our equipment finance portfolio as we continue to see credit issues primarily in the trucking industry
- Provision for credit losses on loans was
$17.4 million for the second quarter of 2025, primarily as a result of continued trends in the equipment finance portfolio. - Allowance for credit losses on loans was
$92.7 million , or1.83% of total loans.
The table below summarizes certain information regarding the Company’s loan portfolio asset quality as of June 30, 2025.
| As of and for the Three Months Ended | ||||||||||||||||||||
| (dollars in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loans 30-89 days past due | $ | 40,959 | $ | 48,221 | $ | 43,681 | $ | 55,329 | $ | 54,045 | ||||||||||
| Nonperforming loans | 109,512 | 145,690 | 150,907 | 114,556 | 112,124 | |||||||||||||||
| Nonperforming assets | 111,174 | 151,264 | 157,409 | 126,771 | 123,774 | |||||||||||||||
| Substandard accruing loans | 58,478 | 77,620 | 84,058 | 167,549 | 135,555 | |||||||||||||||
| Net charge-offs | 29,854 | 16,878 | 112,776 | 22,302 | 13,883 | |||||||||||||||
| Loans 30-89 days past due to total loans | 0.81 | % | 0.96 | % | 0.85 | % | 0.97 | % | 0.93 | % | ||||||||||
| Nonperforming loans to total loans | 2.16 | % | 2.90 | % | 2.92 | % | 2.00 | % | 1.92 | % | ||||||||||
| Nonperforming assets to total assets | 1.56 | % | 2.08 | % | 2.10 | % | 1.65 | % | 1.61 | % | ||||||||||
| Allowance for credit losses to total loans | 1.83 | % | 2.10 | % | 2.15 | % | 2.64 | % | 2.67 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 84.64 | % | 72.19 | % | 73.69 | % | 131.87 | % | 138.63 | % | ||||||||||
| Net charge-offs to average loans | 2.34 | % | 1.35 | % | 7.94 | % | 1.53 | % | 0.94 | % | ||||||||||
Solid Growth Trends in Community Bank & Wealth Management
- Total loans at June 30, 2025 were
$5.06 billion , an increase of$46.6 million from March 31, 2025. Key changes in the loan portfolio were as follows:- Loans originated by our Community Bank increased
$58.9 million , or1.8% , from March 31, 2025. Pipelines remain strong and we continued to add to our sales teams in the second quarter. - Non-core loans originated through third-party programs increased
$212.8 million from March 31, 2025, as a result of the financing of the sale of the GreenSky portfolio. - We continue to pursue an intentional decrease in our Specialty Finance loan portfolio, as we tighten credit standards. Balances in this loan portfolio decreased
$173.3 million during the quarter. - Equipment finance portfolio balances declined
$51.8 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
$5.95 billion at June 30, 2025, an increase of$10.5 million from March 31, 2025. The increase in deposits reflects the following:- Commercial and public fund deposits increased
$70.5 million and$127.8 million , respectively, in the quarter. - Noninterest-bearing deposits decreased
$16.5 million in the quarter. - Retail and servicing deposits decreased
$34.7 million and$56.9 million , respectively, in the quarter. - Brokered deposits, including both money market and time deposits, decreased by
$109.4 million . - Servicing deposits decreased
$284.4 million in July 2025 due to the acquisition of one of our servicing customers, expected to positively impact future margin.
- Commercial and public fund deposits increased
- Wealth Management revenue totaled
$7.4 million in the second quarter of 2025. Assets under administration were$4.18 billion at June 30, 2025. The Company added three new sales positions in the second quarter of 2025 and continues to experience strong pipelines.
Net Interest Margin
- Net interest margin was
3.56% , up 7 basis points compared to the first quarter, 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 to2.19% in the second quarter of 2025.
The following table summarizes certain factors affecting the Company’s net interest margin for the second quarter of 2025.
| For the Three Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||||||||||||||||
| Interest-earning assets | Average Balance | Interest & Fees | Yield/ Rate | Average Balance | Interest & Fees | Yield/ Rate | Average Balance | Interest & Fees | Yield/ Rate | ||||||||||||||||||
| Cash and cash equivalents | $ | 67,326 | $ | 716 | 4.27 | % | $ | 68,671 | $ | 718 | 4.24 | % | $ | 65,250 | $ | 875 | 5.40 | % | |||||||||
| Investment securities(1) | 1,367,180 | 17,164 | 5.04 | 1,311,887 | 15,517 | 4.80 | 1,098,452 | 12,805 | 4.69 | ||||||||||||||||||
| Loans(1)(2) | 5,123,558 | 79,240 | 6.20 | 5,057,394 | 78,118 | 6.26 | 5,915,523 | 92,581 | 6.29 | ||||||||||||||||||
| Loans held for sale | 44,642 | 377 | 3.39 | 326,348 | 4,563 | 5.67 | 4,910 | 84 | 6.84 | ||||||||||||||||||
| Nonmarketable equity securities | 38,803 | 694 | 7.17 | 35,614 | 647 | 7.37 | 44,216 | 963 | 8.76 | ||||||||||||||||||
| Total interest-earning assets | 6,641,509 | 98,191 | 5.93 | 6,799,914 | 99,563 | 5.94 | 7,128,351 | 107,308 | 6.05 | ||||||||||||||||||
| Noninterest-earning assets | 513,801 | 667,940 | 669,370 | ||||||||||||||||||||||||
| Total assets | $ | 7,155,310 | $ | 7,467,854 | $ | 7,797,721 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 4,845,609 | $ | 32,290 | 2.67 | % | $ | 5,074,007 | $ | 34,615 | 2.77 | % | $ | 5,101,365 | $ | 39,476 | 3.11 | % | |||||||||
| Short-term borrowings | 60,117 | 573 | 3.82 | 73,767 | 700 | 3.85 | 30,449 | 308 | 4.07 | ||||||||||||||||||
| FHLB advances & other borrowings | 363,505 | 3,766 | 4.16 | 299,578 | 3,163 | 4.28 | 500,758 | 5,836 | 4.69 | ||||||||||||||||||
| Subordinated debt | 77,757 | 1,394 | 7.19 | 77,752 | 1,387 | 7.23 | 93,090 | 1,265 | 5.47 | ||||||||||||||||||
| Trust preferred debentures | 51,439 | 1,206 | 9.40 | 51,283 | 1,200 | 9.49 | 50,921 | 1,358 | 10.73 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,398,427 | 39,229 | 2.91 | 5,576,387 | 41,065 | 2.99 | 5,776,583 | 48,243 | 3.36 | ||||||||||||||||||
| Noninterest-bearing deposits | 1,075,945 | 1,052,181 | 1,132,451 | ||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 108,819 | 123,613 | 104,841 | ||||||||||||||||||||||||
| Shareholders’ equity | 572,119 | 715,673 | 783,846 | ||||||||||||||||||||||||
| Total liabilities and shareholder’s equity | $ | 7,155,310 | $ | 7,467,854 | $ | 7,797,721 | |||||||||||||||||||||
| Net Interest Margin | $ | 58,962 | 3.56 | % | $ | 58,498 | 3.49 | % | $ | 59,065 | 3.33 | % | |||||||||||||||
| Cost of Deposits | 2.19 | % | 2.29 | % | 2.55 | % | |||||||||||||||||||||
(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.
Trends in Noninterest Income and Expense
- Noninterest income was
$23.5 million for the second quarter of 2025, compared to$17.8 million for the first quarter of 2025. Noninterest income for the second quarter of 2025 included credit enhancement income of$3.8 million , primarily related to an increase in charge-offs in our third-party loan origination and servicing program which were fully reimbursed by our program sponsor. - Noninterest expense was
$50.0 million for the second quarter of 2025, compared to$203.0 million for the first quarter of 2025, which included goodwill impairment of$154.0 million . The Company continues to experience higher levels of professional services, legal fees and other expenses related to loan collections and the restatement of our financial statements.
Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):
| As of and for the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||||
| Return on average assets | 0.67 | % | (7.66 | )% | (1.59 | )% | 1.05 | % | 1.33 | % | ||||||||||
| Pre-provision net revenue to average assets(1) | 1.81 | % | 1.47 | % | 1.83 | % | 2.21 | % | 2.07 | % | ||||||||||
| Net interest margin | 3.56 | % | 3.49 | % | 3.34 | % | 3.34 | % | 3.33 | % | ||||||||||
| Efficiency ratio (1) | 60.60 | % | 64.29 | % | 62.31 | % | 53.61 | % | 55.79 | % | ||||||||||
| Noninterest expense to average assets | 2.80 | % | 11.02 | % | 3.04 | % | 2.56 | % | 2.62 | % | ||||||||||
| Net charge-offs to average loans | 2.34 | % | 1.35 | % | 7.94 | % | 1.53 | % | 0.94 | % | ||||||||||
| Tangible book value per share at period end (1) | $ | 20.68 | $ | 20.54 | $ | 19.83 | $ | 22.70 | $ | 21.07 | ||||||||||
| Diluted earnings (loss) per common share | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | $ | 1.06 | ||||||||
| Common shares outstanding at period end | 21,515,138 | 21,503,036 | 21,494,485 | 21,393,905 | 21,377,215 | |||||||||||||||
| Trust assets under administration | $ | 4,181,180 | $ | 4,101,414 | $ | 4,153,080 | $ | 4,268,539 | $ | 3,996,175 | ||||||||||
(1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures.
Capital
At June 30, 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 ‘‘well-capitalized’’ financial institution, as summarized in the following table:
| As of June 30, 2025 | ||||||||
| Midland States Bank | Midland States Bancorp, Inc. | Minimum Regulatory Requirements (2) | ||||||
| Total capital to risk-weighted assets | ||||||||
| Tier 1 capital to risk-weighted assets | ||||||||
| Common equity Tier 1 capital to risk-weighted assets | ||||||||
| Tier 1 leverage ratio | ||||||||
| Tangible common equity to tangible assets (1) | N/A | 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
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 June 30, 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 “Pre-provision net revenue,” “Pre-provision net revenue per diluted share,” “Pre-provision net revenue to average assets,” “Efficiency ratio,” “Tangible common equity to tangible assets,” and “Tangible book value per share.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.
Forward-Looking Statements
Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "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 jludwig@midlandsb.com or (217) 342-7321
Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 176,587 | $ | 102,006 | $ | 114,766 | $ | 121,873 | $ | 124,646 | ||||||||||
| Investment securities | 1,354,652 | 1,368,405 | 1,212,366 | 1,216,795 | 1,099,654 | |||||||||||||||
| Loans | 5,064,695 | 5,018,053 | 5,167,574 | 5,728,237 | 5,829,057 | |||||||||||||||
| Allowance for credit losses on loans | (92,690 | ) | (105,176 | ) | (111,204 | ) | (151,067 | ) | (155,443 | ) | ||||||||||
| Total loans, net | 4,972,005 | 4,912,877 | 5,056,370 | 5,577,170 | 5,673,614 | |||||||||||||||
| Loans held for sale | 7,899 | 287,821 | 344,947 | 8,001 | 5,555 | |||||||||||||||
| Premises and equipment, net | 86,240 | 86,719 | 85,710 | 84,672 | 83,040 | |||||||||||||||
| Other real estate owned | 393 | 4,183 | 4,941 | 8,646 | 8,304 | |||||||||||||||
| Loan servicing rights, at lower of cost or fair value | 16,720 | 17,278 | 17,842 | 18,400 | 18,902 | |||||||||||||||
| Goodwill | 7,927 | 7,927 | 161,904 | 161,904 | 161,904 | |||||||||||||||
| Other intangible assets, net | 10,362 | 11,189 | 12,100 | 13,052 | 14,003 | |||||||||||||||
| Company-owned life insurance | 214,392 | 212,336 | 211,168 | 209,193 | 207,211 | |||||||||||||||
| Credit enhancement asset | 5,800 | 5,615 | 16,804 | 20,633 | 18,202 | |||||||||||||||
| Other assets | 254,901 | 268,448 | 267,891 | 263,850 | 293,039 | |||||||||||||||
| Total assets | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | $ | 7,708,074 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 1,074,212 | $ | 1,090,707 | $ | 1,055,564 | $ | 1,050,617 | $ | 1,108,521 | ||||||||||
| Interest-bearing deposits | 4,872,707 | 4,845,727 | 5,141,679 | 5,206,219 | 5,009,502 | |||||||||||||||
| Total deposits | 5,946,919 | 5,936,434 | 6,197,243 | 6,256,836 | 6,118,023 | |||||||||||||||
| Short-term borrowings | 8,654 | 40,224 | 87,499 | 13,849 | 7,208 | |||||||||||||||
| FHLB advances and other borrowings | 345,000 | 498,000 | 258,000 | 425,000 | 600,000 | |||||||||||||||
| Subordinated debt | 77,759 | 77,754 | 77,749 | 82,744 | 91,656 | |||||||||||||||
| Trust preferred debentures | 51,518 | 51,358 | 51,205 | 51,058 | 50,921 | |||||||||||||||
| Other liabilities | 104,323 | 109,597 | 124,266 | 103,481 | 103,487 | |||||||||||||||
| Total liabilities | 6,534,173 | 6,713,367 | 6,795,962 | 6,932,968 | 6,971,295 | |||||||||||||||
| Total shareholders’ equity | 573,705 | 571,437 | 710,847 | 771,221 | 736,779 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | $ | 7,708,074 | ||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | |||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| (dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||
| Net interest income: | |||||||||||||||||||
| Interest income | $ | 97,924 | $ | 99,355 | $ | 104,470 | $ | 108,994 | $ | 107,138 | |||||||||
| Interest expense | 39,229 | 41,065 | 45,900 | 49,884 | 48,243 | ||||||||||||||
| Net interest income | 58,695 | 58,290 | 58,570 | 59,110 | 58,895 | ||||||||||||||
| Provision for credit losses: | |||||||||||||||||||
| Provision for credit losses on loans | 17,369 | 10,850 | 74,183 | 17,925 | 8,482 | ||||||||||||||
| Recapture of credit losses on unfunded commitments | — | — | — | — | (200 | ) | |||||||||||||
| Total provision for credit losses | 17,369 | 10,850 | 74,183 | 17,925 | 8,282 | ||||||||||||||
| Net interest income after provision for credit losses | 41,326 | 47,440 | (15,613 | ) | 41,185 | 50,613 | |||||||||||||
| Noninterest income: | |||||||||||||||||||
| Wealth management revenue | 7,379 | 7,350 | 7,660 | 7,104 | 6,801 | ||||||||||||||
| Service charges on deposit accounts | 3,351 | 3,305 | 3,506 | 3,411 | 3,121 | ||||||||||||||
| Interchange revenue | 3,463 | 3,151 | 3,528 | 3,506 | 3,563 | ||||||||||||||
| Residential mortgage banking revenue | 756 | 676 | 637 | 697 | 557 | ||||||||||||||
| Income on company-owned life insurance | 2,068 | 2,334 | 1,975 | 1,981 | 1,925 | ||||||||||||||
| Loss on sales of investment securities, net | — | — | (34 | ) | (44 | ) | (152 | ) | |||||||||||
| Credit enhancement income (loss) | 3,848 | (578 | ) | 15,810 | 14,206 | 14,328 | |||||||||||||
| Other income | 2,669 | 1,525 | 2,289 | 2,684 | 1,841 | ||||||||||||||
| Total noninterest income | 23,534 | 17,763 | 35,371 | 33,545 | 31,984 | ||||||||||||||
| Noninterest expense: | |||||||||||||||||||
| Salaries and employee benefits | 25,685 | 26,416 | 22,283 | 24,382 | 22,872 | ||||||||||||||
| Occupancy and equipment | 4,166 | 4,498 | 4,286 | 4,393 | 3,964 | ||||||||||||||
| Data processing | 7,035 | 6,919 | 7,278 | 6,955 | 7,205 | ||||||||||||||
| Professional services | 2,792 | 2,741 | 1,580 | 1,744 | 2,243 | ||||||||||||||
| Impairment on goodwill | — | 153,977 | — | — | — | ||||||||||||||
| Amortization of intangible assets | 827 | 911 | 952 | 951 | 1,016 | ||||||||||||||
| Impairment on leased assets and surrendered assets | — | — | 7,601 | — | — | ||||||||||||||
| FDIC insurance | 1,422 | 1,463 | 1,383 | 1,402 | 1,219 | ||||||||||||||
| Other expense | 8,065 | 6,080 | 13,336 | 9,937 | 12,265 | ||||||||||||||
| Total noninterest expense | 49,992 | 203,005 | 58,699 | 49,764 | 50,784 | ||||||||||||||
| Income (loss) before income taxes | 14,868 | (137,802 | ) | (38,941 | ) | 24,966 | 31,813 | ||||||||||||
| Income tax expense (benefit) | 2,844 | 3,172 | (8,172 | ) | 4,535 | 6,094 | |||||||||||||
| Net income (loss) | 12,024 | (140,974 | ) | (30,769 | ) | 20,431 | 25,719 | ||||||||||||
| Preferred stock dividends | 2,228 | 2,228 | 2,228 | 2,229 | 2,228 | ||||||||||||||
| Net income (loss) available to common shareholders | $ | 9,796 | $ | (143,202 | ) | $ | (32,997 | ) | $ | 18,202 | $ | 23,491 | |||||||
| Basic earnings (loss) per common share | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | $ | 1.06 | |||||||
| Diluted earnings (loss) per common share | $ | 0.44 | $ | (6.58 | ) | $ | (1.52 | ) | $ | 0.83 | $ | 1.06 | |||||||
| Weighted average common shares outstanding | 21,820,190 | 21,795,570 | 21,748,428 | 21,675,818 | 21,731,195 | ||||||||||||||
| Weighted average diluted common shares outstanding | 21,820,190 | 21,795,570 | 21,753,711 | 21,678,242 | 21,734,849 | ||||||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued) | |||||||||||||||
| As of | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||
| Loan Portfolio Mix | |||||||||||||||
| Commercial loans | $ | 1,178,792 | $ | 879,286 | $ | 934,847 | $ | 879,590 | $ | 955,667 | |||||
| Equipment finance loans | 364,526 | 390,276 | 416,970 | 442,552 | 461,409 | ||||||||||
| Equipment finance leases | 347,155 | 373,168 | 391,390 | 417,531 | 428,659 | ||||||||||
| Commercial FHA warehouse lines | 1,068 | — | 8,004 | 50,198 | — | ||||||||||
| Total commercial loans and leases | 1,891,541 | 1,642,730 | 1,751,211 | 1,789,871 | 1,845,735 | ||||||||||
| Commercial real estate | 2,412,761 | 2,592,325 | 2,591,664 | 2,510,472 | 2,421,505 | ||||||||||
| Construction and land development | 258,729 | 264,966 | 299,842 | 422,253 | 476,528 | ||||||||||
| Residential real estate | 361,261 | 373,095 | 380,557 | 378,658 | 378,393 | ||||||||||
| Consumer | 140,403 | 144,937 | 144,300 | 626,983 | 706,896 | ||||||||||
| Total loans | $ | 5,064,695 | $ | 5,018,053 | $ | 5,167,574 | $ | 5,728,237 | $ | 5,829,057 | |||||
| Loan Portfolio Segment | |||||||||||||||
| Regions | |||||||||||||||
| Eastern | $ | 901,848 | $ | 897,792 | $ | 899,611 | $ | 902,993 | $ | 884,343 | |||||
| Northern | 753,590 | 747,028 | 714,562 | 730,752 | 724,782 | ||||||||||
| Southern | 778,124 | 711,787 | 720,188 | 694,810 | 699,893 | ||||||||||
| St. Louis | 884,685 | 902,743 | 868,190 | 850,327 | 825,291 | ||||||||||
| Total Community Bank | 3,318,247 | 3,259,350 | 3,202,551 | 3,178,882 | 3,134,309 | ||||||||||
| Specialty finance | 701,244 | 874,567 | 1,038,238 | 1,018,961 | 1,107,508 | ||||||||||
| Equipment finance | 711,681 | 763,444 | 808,359 | 860,083 | 890,068 | ||||||||||
| Non-core loan program and other(1) | 333,523 | 120,692 | 118,426 | 670,311 | 697,172 | ||||||||||
| Total loans | $ | 5,064,695 | $ | 5,018,053 | $ | 5,167,574 | $ | 5,728,237 | $ | 5,829,057 | |||||
| Deposit Portfolio Mix | |||||||||||||||
| Noninterest-bearing demand | $ | 1,074,212 | $ | 1,090,707 | $ | 1,055,564 | $ | 1,050,617 | $ | 1,108,521 | |||||
| Interest-bearing: | |||||||||||||||
| Checking | 2,180,717 | 2,161,282 | 2,378,256 | 2,389,970 | 2,343,533 | ||||||||||
| Money market | 1,216,357 | 1,154,403 | 1,173,630 | 1,187,139 | 1,143,668 | ||||||||||
| Savings | 511,470 | 522,663 | 507,305 | 510,260 | 538,462 | ||||||||||
| Time | 818,813 | 818,732 | 822,981 | 849,413 | 852,415 | ||||||||||
| Brokered time | 145,350 | 188,647 | 259,507 | 269,437 | 131,424 | ||||||||||
| Total deposits | $ | 5,946,919 | $ | 5,936,434 | $ | 6,197,243 | $ | 6,256,836 | $ | 6,118,023 | |||||
| Deposit Portfolio by Channel | |||||||||||||||
| Retail | $ | 2,811,838 | $ | 2,846,494 | $ | 2,749,650 | $ | 2,695,077 | $ | 2,742,494 | |||||
| Commercial | 1,145,369 | 1,074,837 | 1,209,815 | 1,218,657 | 1,217,068 | ||||||||||
| Public Funds | 618,172 | 490,374 | 505,912 | 574,704 | 568,889 | ||||||||||
| Wealth & Trust | 304,626 | 301,251 | 340,615 | 332,242 | 298,659 | ||||||||||
| Servicing | 785,659 | 842,567 | 896,436 | 958,662 | 931,892 | ||||||||||
| Brokered Deposits | 248,707 | 358,063 | 473,451 | 390,558 | 238,708 | ||||||||||
| Other | 32,548 | 22,848 | 21,364 | 86,936 | 120,313 | ||||||||||
| Total deposits | $ | 5,946,919 | $ | 5,936,434 | $ | 6,197,243 | $ | 6,256,836 | $ | 6,118,023 | |||||
(1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio.
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Adjusted Earnings Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands, expect per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Income (loss) before income tax (benefit) expense - GAAP | $ | 14,868 | $ | (137,802 | ) | $ | (38,941 | ) | $ | 24,966 | $ | 31,813 | ||||||||
| Adjustments to noninterest income: | ||||||||||||||||||||
| Loss on sales of investment securities, net | — | — | 34 | 44 | 152 | |||||||||||||||
| Loss (gain) on repurchase of subordinated debt | — | — | 13 | (77 | ) | (167 | ) | |||||||||||||
| Total adjustments to noninterest income | — | — | 47 | (33 | ) | (15 | ) | |||||||||||||
| Adjustments to noninterest expense: | ||||||||||||||||||||
| Impairment on goodwill | — | (153,977 | ) | — | — | — | ||||||||||||||
| Total adjustments to noninterest expense | — | (153,977 | ) | — | — | — | ||||||||||||||
| Adjusted earnings (loss) pre tax - non-GAAP | 14,868 | 16,175 | (38,894 | ) | 24,933 | 31,798 | ||||||||||||||
| Adjusted earnings (loss) tax (benefit) expense | 2,844 | 3,172 | (8,159 | ) | 4,526 | 6,090 | ||||||||||||||
| Adjusted earnings (loss) - non-GAAP | 12,024 | 13,003 | (30,735 | ) | 20,407 | 25,708 | ||||||||||||||
| Preferred stock dividends | 2,228 | 2,228 | 2,228 | 2,229 | 2,228 | |||||||||||||||
| Adjusted earnings (loss) available to common shareholders | $ | 9,796 | $ | 10,775 | $ | (32,963 | ) | $ | 18,178 | $ | 23,480 | |||||||||
| Adjusted diluted earnings (loss) per common share | $ | 0.44 | $ | 0.49 | $ | (1.52 | ) | $ | 0.82 | $ | 1.06 | |||||||||
| Pre-Provision Net Revenue Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Income (loss) before income taxes | $ | 14,868 | $ | (137,802 | ) | $ | (38,941 | ) | $ | 24,966 | $ | 31,813 | ||||||||
| Provision for credit losses | 17,369 | 10,850 | 74,183 | 17,925 | 8,282 | |||||||||||||||
| Impairment on goodwill | — | 153,977 | — | — | — | |||||||||||||||
| Pre-provision net revenue | $ | 32,237 | $ | 27,025 | $ | 35,242 | $ | 42,891 | $ | 40,095 | ||||||||||
| Pre-provision net revenue per diluted share | $ | 1.48 | $ | 1.24 | $ | 1.62 | $ | 1.98 | $ | 1.84 | ||||||||||
| Pre-provision net revenue to average assets | 1.81 | % | 1.47 | % | 1.83 | % | 2.21 | % | 2.07 | % | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Noninterest expense - GAAP | $ | 49,992 | $ | 203,005 | $ | 58,699 | $ | 49,764 | $ | 50,784 | ||||||||||
| Impairment on goodwill | — | (153,977 | ) | — | — | — | ||||||||||||||
| Adjusted noninterest expense | $ | 49,992 | $ | 49,028 | $ | 58,699 | $ | 49,764 | $ | 50,784 | ||||||||||
| Net interest income - GAAP | $ | 58,695 | $ | 58,290 | $ | 58,570 | $ | 59,110 | $ | 58,895 | ||||||||||
| Effect of tax-exempt income | 267 | 208 | 220 | 205 | 170 | |||||||||||||||
| Adjusted net interest income | 58,962 | 58,498 | 58,790 | 59,315 | 59,065 | |||||||||||||||
| Noninterest income - GAAP | 23,534 | 17,763 | 35,371 | 33,545 | 31,984 | |||||||||||||||
| Loss on sales of investment securities, net | — | — | 34 | 44 | 152 | |||||||||||||||
| Loss (gain) on repurchase of subordinated debt | — | — | 13 | (77 | ) | (167 | ) | |||||||||||||
| Adjusted noninterest income | 23,534 | 17,763 | 35,418 | 33,512 | 31,969 | |||||||||||||||
| Adjusted total revenue | $ | 82,496 | $ | 76,261 | $ | 94,208 | $ | 92,827 | $ | 91,034 | ||||||||||
| Efficiency ratio | 60.60 | % | 64.29 | % | 62.31 | % | 53.61 | % | 55.79 | % | ||||||||||
| Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (dollars in thousands, except per share data) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||
| Shareholders' Equity to Tangible Common Equity | ||||||||||||||||||||
| Total shareholders' equity—GAAP | $ | 573,705 | $ | 571,437 | $ | 710,847 | $ | 771,221 | $ | 736,779 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Preferred Stock | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | ||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (10,362 | ) | (11,189 | ) | (12,100 | ) | (13,052 | ) | (14,003 | ) | ||||||||||
| Tangible common equity | 444,868 | 441,773 | 426,295 | 485,717 | 450,324 | |||||||||||||||
| Total Assets to Tangible Assets: | ||||||||||||||||||||
| Total assets—GAAP | $ | 7,107,878 | $ | 7,284,804 | $ | 7,506,809 | $ | 7,704,189 | $ | 7,708,074 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Goodwill | (7,927 | ) | (7,927 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (10,362 | ) | (11,189 | ) | (12,100 | ) | (13,052 | ) | (14,003 | ) | ||||||||||
| Tangible assets | $ | 7,089,589 | $ | 7,265,688 | $ | 7,332,805 | $ | 7,529,233 | $ | 7,532,167 | ||||||||||
| Common Shares Outstanding | 21,515,138 | 21,503,036 | 21,494,485 | 21,393,905 | 21,377,215 | |||||||||||||||
| Tangible Common Equity to Tangible Assets | 6.27 | % | 6.08 | % | 5.81 | % | 6.45 | % | 5.98 | % | ||||||||||
| Tangible Book Value Per Share | $ | 20.68 | $ | 20.54 | $ | 19.83 | $ | 22.70 | $ | 21.07 | ||||||||||
FAQ
What was Midland States Bancorp's (MSBI) earnings per share in Q2 2025?
How did MSBI's credit quality metrics change in Q2 2025?
What was MSBI's net interest margin in Q2 2025?
How much are MSBI's total loans and deposits as of Q2 2025?
What is MSBI's capital position as of Q2 2025?
