Second Quarter 2024 Highlights:
- Net income available to common shareholders of $4.5 million, or $0.20 per diluted share
- Adjusted pre-tax, pre-provision earnings of $25.2 million
- Tangible book value per share decreased to $23.36, compared to $23.44 at March 31, 2024
- Common equity tier 1 capital ratio improved to 8.63% from 8.60%
- Net interest margin of 3.12%, compared to 3.18% in prior quarter
- Efficiency ratio of 65.2%, compared to 58.0% in prior quarter
EFFINGHAM, Ill., July 25, 2024 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the "Company") today reported net income available to common shareholders of $4.5 million, or $0.20 per diluted share, for the second quarter of 2024, compared to $11.7 million, or $0.53 per diluted share, for the first quarter of 2024. This also compares to net income available to common shareholders of $19.3 million, or $0.86 per diluted share, for the second quarter of 2023.
Provision expense was $16.8 million in the second quarter of 2024 compared to $14.0 million and $5.9 million in the first quarter of 2024 and the second quarter of 2023, respectively. The provision expense in the second quarter of 2024 included provision for credit losses on loans of $17.0 million, offset by a $0.2 million benefit related to unfunded commitments. The elevated loan provision in the second quarter of 2024 was primarily due to credit deterioration and servicing issues involving one of our fintech partners, LendingPoint, subsequent to their system conversion in late 2023. The provision expense for the first quarter of 2024 included a specific reserve of $8.0 million on a multi-family construction project.
Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, "We continued to execute well on our strategic priorities during the second quarter and our balance sheet management strategies resulted in further increases in our capital ratios. We are continuing to address credit risk in our loan portfolios, including the relationship with Lending Point, by prudently increasing our loan loss reserves with a focus on reducing problem assets. Our emphasis on our community bank and local markets has led to another good quarter of generating high quality, in-market loans with full banking relationships, which are partially funded by the continued intentional reduction of our equipment finance and consumer portfolios. In particular, we are seeing good results from the investments we have made to increase our presence and business development efforts in the St. Louis market, where our loan balances increased at an annualized rate of 31% during the second quarter.
"We continue to benefit from the strength of the franchise we have built to attract high quality banking talent across the organization. We recently added a new market president for our Northern Illinois region and a new Chief Deposit Officer, who we expect to positively impact our treasury management services and our ability to add new commercial deposit relationships. We are also continuing to invest in our Wealth Management business to improve our ability to cross-sell this service to our community bank clients. We believe the banking talent we are adding will further enhance our efforts to expand our market share within our community bank. Our successful efforts in this area are resulting in a favorable shift in the mix of our loan portfolio; moving towards a higher quality portfolio and expanded banking relationships with both loans and deposits. We expect to make continued progress on this strategic priority over the remainder of the year, which we believe will further enhance the value of our franchise," said Mr. Ludwig.
Balance Sheet Highlights
Total assets were $7.76 billion at June 30, 2024, compared to $7.83 billion at March 31, 2024, and $8.03 billion at June 30, 2023. At June 30, 2024, portfolio loans were $5.85 billion, compared to $5.96 billion at March 31, 2024, and $6.37 billion at June 30, 2023.
Loans
During the second quarter of 2024, outstanding loans declined by $106.5 million, or 1.8%, from March 31, 2024, as the Company continued to shrink its equipment financing and consumer loan portfolios, and focus on commercial loan opportunities in our community bank footprint. Increases in commercial, commercial real estate, and construction and land development loans of $25.9 million, $24.4 million and $2.4 million, respectively, were offset by decreases in all other loan categories.
Equipment finance loan and lease balances decreased $59.9 million during the second quarter of 2024 as the Company continued to reduce its concentration of this product within the overall loan portfolio. Consumer loans decreased $91.1 million due to loan payoffs and a cessation in loans originated through GreenSky. Our Greensky-originated loan balances decreased $67.7 million during the second quarter to $538.3 million at June 30, 2024. In addition, as previously disclosed, during the fourth quarter of 2023, the Company ceased originating loans through LendingPoint. As of June 30, 2024, the Company had $114.2 million in loans that were originated through and serviced by LendingPoint. Equipment financing and consumer loans comprised 15.2% and 12.7%, respectively, of the loan portfolio at June 30, 2024, compared to 15.9% and 14.0%, respectively, at March 31, 2024.
| As of | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| (in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
| Loan Portfolio | |||||||||||||||
| Commercial loans | $ | 939,458 | $ | 913,564 | $ | 951,387 | $ | 943,761 | $ | 962,756 | |||||
| Equipment finance loans | 461,409 | 494,068 | 531,143 | 578,931 | 614,633 | ||||||||||
| Equipment finance leases | 428,659 | 455,879 | 473,350 | 485,460 | 500,485 | ||||||||||
| Commercial FHA warehouse lines | - | 8,035 | - | 48,547 | 30,522 | ||||||||||
| Total commercial loans and leases | 1,829,526 | 1,871,546 | 1,955,880 | 2,056,699 | 2,108,396 | ||||||||||
| Commercial real estate | 2,421,505 | 2,397,113 | 2,406,845 | 2,412,164 | 2,443,995 | ||||||||||
| Construction and land development | 476,528 | 474,128 | 452,593 | 416,801 | 366,631 | ||||||||||
| Residential real estate | 378,393 | 378,583 | 380,583 | 375,211 | 371,486 | ||||||||||
| Consumer | 746,042 | 837,092 | 935,178 | 1,020,008 | 1,076,836 | ||||||||||
| Total loans | $ | 5,851,994 | $ | 5,958,462 | $ | 6,131,079 | $ | 6,280,883 | $ | 6,367,344 | |||||
Loan Quality
Overall, credit quality metrics declined this quarter compared to the first quarter of 2024. Non-performing loans increased $7.1 million to $112.1 million at June 30, 2024, compared to $105.0 million as of March 31, 2024. A $3.6 million commercial loan and $4.7 million of equipment financing loans account for the increase.
| As of and for the Three Months Ended | ||||||||||||||||||||
| (in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loans 30-89 days past due | $ | 54,045 | $ | 58,854 | $ | 82,778 | $ | 46,608 | $ | 44,161 | ||||||||||
| Nonperforming loans | 112,124 | 104,979 | 56,351 | 55,981 | 54,844 | |||||||||||||||
| Nonperforming assets | 123,774 | 116,721 | 67,701 | 58,677 | 57,688 | |||||||||||||||
| Substandard loans | 135,555 | 149,049 | 184,224 | 143,793 | 130,707 | |||||||||||||||
| Net charge-offs | 2,874 | 4,445 | 5,117 | 3,449 | 2,996 | |||||||||||||||
| Loans 30-89 days past due to total loans | 0.92 | % | 0.99 | % | 1.35 | % | 0.74 | % | 0.69 | % | ||||||||||
| Nonperforming loans to total loans | 1.92 | % | 1.76 | % | 0.92 | % | 0.89 | % | 0.86 | % | ||||||||||
| Nonperforming assets to total assets | 1.60 | % | 1.49 | % | 0.86 | % | 0.74 | % | 0.72 | % | ||||||||||
| Allowance for credit losses to total loans | 1.58 | % | 1.31 | % | 1.12 | % | 1.06 | % | 1.02 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 82.22 | % | 74.35 | % | 121.56 | % | 119.09 | % | 118.43 | % | ||||||||||
| Net charge-offs to average loans | 0.20 | % | 0.30 | % | 0.33 | % | 0.22 | % | 0.19 | % | ||||||||||
The Company continued to increase its allowance for credit losses on loans during the second quarter of 2024. Notably, the Company recognized provision expense of $14.0 million this quarter related to the loans originated and serviced by LendingPoint, increasing the allowance to $14.6 million on this portfolio. Credit deterioration and servicing issues following their system conversion have resulted in increased losses within this portfolio. At June 30, 2024, loans serviced by LendingPoint totaled $114.2 million.
The allowance for credit losses on loans totaled $92.2 million at June 30, 2024, compared to $78.1 million at March 31, 2024, and $65.0 million at June 30, 2023. The allowance as a percentage of portfolio loans was 1.58% at June 30, 2024, compared to 1.31% at March 31, 2024, and 1.02% at June 30, 2023.
Deposits
Total deposits were $6.12 billion at June 30, 2024, compared with $6.32 billion at March 31, 2024. Noninterest-bearing deposits decreased $103.9 million to $1.11 billion at June 30, 2024, while interest-bearing deposits decreased $102.1 million to $5.01 billion at June 30, 2024. Brokered time deposits decreased $56.8 million to $131.4 million, and represented 2.15% of total deposits at June 30, 2024.
| As of | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| (in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
| Deposit Portfolio | |||||||||||||||
| Noninterest-bearing demand | $ | 1,108,521 | $ | 1,212,382 | $ | 1,145,395 | $ | 1,154,515 | $ | 1,162,909 | |||||
| Interest-bearing: | |||||||||||||||
| Checking | 2,343,533 | 2,394,163 | 2,511,840 | 2,572,224 | 2,499,693 | ||||||||||
| Money market | 1,143,668 | 1,128,463 | 1,135,629 | 1,090,962 | 1,226,470 | ||||||||||
| Savings | 538,462 | 555,552 | 559,267 | 582,359 | 624,005 | ||||||||||
| Time | 852,415 | 845,190 | 862,865 | 885,858 | 840,734 | ||||||||||
| Brokered time | 131,424 | 188,234 | 94,533 | 119,084 | 72,737 | ||||||||||
| Total deposits | $ | 6,118,023 | $ | 6,323,984 | $ | 6,309,529 | $ | 6,405,002 | $ | 6,426,548 | |||||
Results of Operations Highlights
Net Interest Income and Margin
During the second quarter of 2024, net interest income, on a tax-equivalent basis, totaled $55.2 million, a decrease of $0.9 million, or 1.6%, compared to $56.1 million for the first quarter of 2024. The tax-equivalent net interest margin for the second quarter of 2024 was 3.12%, compared with 3.18% in the first quarter of 2024. Net interest income and net interest margin, on a tax-equivalent basis, were $59.0 million and 3.23%, respectively, in the second quarter of 2023. The decline in both the net interest income and margin were largely attributable to increased market interest rates resulting in a faster increase in the cost of funding liabilities than the yield on earning assets, as well as the impact of interest reversals on loans placed on non-accrual.
Average interest-earning assets for the second quarter of 2024 were $7.13 billion, compared to $7.11 billion for the first quarter of 2024. The yield increased 8 basis points to 5.84% compared to the first quarter of 2024. Interest-earning assets averaged $7.33 billion for the second quarter of 2023.
Average loans were $5.92 billion for the second quarter of 2024, compared to $6.01 billion for the first quarter of 2024 and $6.36 billion for the second quarter of 2023. The yield on loans was 6.03% for the second quarter of 2024, up from 5.99% for the first quarter of 2024 and 5.80% for the second quarter of 2023.
Investment securities averaged $1.10 billion for the second quarter of 2024, and yielded 4.69%, compared to an average balance and yield of $988.7 million and 4.36%, respectively, for the first quarter of 2024. The Company purchased additional higher-yielding investments resulting in the increased average balance and yield. Investment securities averaged $861.4 million for the second quarter of 2023.
Average interest-bearing deposits were $5.10 billion for the second quarter of 2024, compared to $5.20 billion for the first quarter of 2024, and $5.26 billion for the second quarter of 2023. Cost of interest-bearing deposits was 3.11% in the second quarter of 2024, which represented a 7 basis point increase from the first quarter of 2024. A competitive market, driven by rising interest rates and increased competition, contributed to the increase in deposit costs.
| For the Three Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||||
| 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 | $ | 65,250 | $ | 875 | 5.40 | % | $ | 69,316 | $ | 951 | 5.52 | % | $ | 67,377 | $ | 852 | 5.07 | % | |||||||||
| Investment securities(1) | 1,098,452 | 12,805 | 4.69 | 988,716 | 10,708 | 4.36 | 861,409 | 7,286 | 3.39 | ||||||||||||||||||
| Loans(1)(2) | 5,915,523 | 88,738 | 6.03 | 6,012,032 | 89,489 | 5.99 | 6,356,012 | 91,890 | 5.80 | ||||||||||||||||||
| Loans held for sale | 4,910 | 84 | 6.84 | 3,405 | 55 | 6.56 | 4,067 | 59 | 5.79 | ||||||||||||||||||
| Nonmarketable equity securities | 44,216 | 963 | 8.76 | 35,927 | 687 | 7.69 | 45,028 | 599 | 5.33 | ||||||||||||||||||
| Total interest-earning assets | 7,128,351 | 103,465 | 5.84 | 7,109,396 | 101,890 | 5.76 | 7,333,893 | 100,686 | 5.51 | ||||||||||||||||||
| Noninterest-earning assets | 669,370 | 671,671 | 612,238 | ||||||||||||||||||||||||
| Total assets | $ | 7,797,721 | $ | 7,781,067 | $ | 7,946,131 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 5,101,365 | $ | 39,476 | 3.11 | % | $ | 5,195,118 | $ | 39,214 | 3.04 | % | $ | 5,259,188 | $ | 33,617 | 2.56 | % | |||||||||
| Short-term borrowings | 30,449 | 308 | 4.07 | 65,182 | 836 | 5.16 | 22,018 | 14 | 0.26 | ||||||||||||||||||
| FHLB advances & other borrowings | 500,758 | 5,836 | 4.69 | 313,121 | 3,036 | 3.90 | 471,989 | 5,396 | 4.59 | ||||||||||||||||||
| Subordinated debt | 93,090 | 1,265 | 5.47 | 93,583 | 1,280 | 5.50 | 97,278 | 1,335 | 5.51 | ||||||||||||||||||
| Trust preferred debentures | 50,921 | 1,358 | 10.73 | 50,707 | 1,389 | 11.02 | 50,218 | 1,289 | 10.29 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,776,583 | 48,243 | 3.36 | 5,717,711 | 45,755 | 3.22 | 5,900,691 | 41,651 | 2.83 | ||||||||||||||||||
| Noninterest-bearing deposits | 1,132,451 | 1,151,542 | 1,187,584 | ||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 104,841 | 121,908 | 81,065 | ||||||||||||||||||||||||
| Shareholders' equity | 783,846 | 789,906 | 776,791 | ||||||||||||||||||||||||
| Total liabilities and shareholder's equity | $ | 7,797,721 | $ | 7,781,067 | $ | 7,946,131 | |||||||||||||||||||||
| Net Interest Margin | $ | 55,222 | 3.12 | % | $ | 56,135 | 3.18 | % | $ | 59,035 | 3.23 | % | |||||||||||||||
| Cost of Deposits | 2.55 | % | 2.49 | % | 2.09 | % | |||||||||||||||||||||
(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 21%. Tax-equivalent adjustments totaled $0.2 million for each of the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
For the six months ended June 30, 2024, net interest income, on a tax-equivalent basis, decreased to $111.4 million, with a tax-equivalent net interest margin of 3.15%, compared to net interest income, on a tax-equivalent basis, of $119.8 million, and a tax-equivalent net interest margin of 3.31% for the six months ended June 30, 2023.
The yield on earning assets increased 37 basis points to 5.80% for the six months ended June 30, 2024 compared to the prior year. However, the cost of interest-bearing liabilities increased at a faster rate during this period, increasing 64 basis points to 3.29% for the six months ended June 30, 2024.
| For the Six Months Ended | ||||||||||||||||||
| (dollars in thousands) | June 30, 2024 | June 30, 2023 | ||||||||||||||||
| Interest-earning assets | Average Balance | Interest & Fees | Yield/Rate | Average Balance | Interest & Fees | Yield/Rate | ||||||||||||
| Cash and cash equivalents | $ | 67,283 | $ | 1,826 | 5.46 | % | $ | 76,201 | $ | 1,832 | 4.85 | % | ||||||
| Investment securities(1) | 1,043,585 | 23,513 | 4.53 | 835,771 | 13,281 | 3.18 | ||||||||||||
| Loans(1)(2) | 5,963,777 | 178,226 | 6.01 | 6,338,305 | 179,887 | 5.72 | ||||||||||||
| Loans held for sale | 4,157 | 139 | 6.72 | 2,794 | 75 | 5.42 | ||||||||||||
| Nonmarketable equity securities | 40,072 | 1,650 | 8.28 | 46,416 | 1,394 | 6.05 | ||||||||||||
| Total interest-earning assets | 7,118,874 | 205,354 | 5.80 | 7,299,487 | 196,469 | 5.43 | ||||||||||||
| Noninterest-earning assets | 669,370 | 611,528 | ||||||||||||||||
| Total assets | $ | 7,788,244 | $ | 7,911,015 | ||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||
| Interest-bearing deposits | $ | 5,148,242 | $ | 78,690 | 3.07 | % | $ | 5,157,148 | $ | 60,022 | 2.35 | % | ||||||
| Short-term borrowings | 47,815 | 1,144 | 4.81 | 30,291 | 39 | 0.26 | ||||||||||||
| FHLB advances & other borrowings | 406,940 | 8,872 | 4.38 | 505,945 | 11,402 | 4.54 | ||||||||||||
| Subordinated debt | 93,337 | 2,545 | 5.45 | 98,538 | 2,705 | 5.54 | ||||||||||||
| Trust preferred debentures | 50,814 | 2,747 | 10.87 | 50,133 | 2,518 | 10.13 | ||||||||||||
| Total interest-bearing liabilities | 5,747,148 | 93,998 | 3.29 | 5,842,055 | 76,686 | 2.65 | ||||||||||||
| Noninterest-bearing deposits | 1,141,996 | 1,219,050 | ||||||||||||||||
| Other noninterest-bearing liabilities | 112,223 | 77,895 | ||||||||||||||||
| Shareholders' equity | 786,877 | 772,015 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,788,244 | $ | 7,911,015 | ||||||||||||||
| Net Interest Margin | $ | 111,356 | 3.15 | % | $ | 119,783 | 3.31 | % | ||||||||||
| Cost of Deposits | 2.52 | % | 1.90 | % | ||||||||||||||
(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 21%. Tax-equivalent adjustments totaled $0.4 million for each of the six months ended June 30, 2024 and 2023, respectively.
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
Noninterest Income
Noninterest income was $17.7 million for the second quarter of 2024, compared to $21.2 million for the first quarter of 2024. Noninterest income for the second quarter of 2024 included a $0.2 million gain on the repurchase of subordinated debt, offset by $0.2 million of net losses on the sale of investment securities. Noninterest income for the first quarter of 2024 included incremental servicing revenues of $3.7 million related to the Greensky portfolio. The second quarter of 2023 included an $0.8 million gain on the sale of OREO and a $0.7 million gain on the repurchase of subordinated debt, partially offset by $0.9 million of net losses on the sale of investment securities. Excluding these transactions, noninterest income for the second quarter of 2024, the first quarter of 2024, and the second quarter of 2023 was $17.6 million, $17.5 million, and $18.1 million, respectively.
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| (in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Noninterest income | |||||||||||||||||||
| Wealth management revenue | $ | 6,801 | $ | 7,132 | $ | 6,269 | $ | 13,933 | $ | 12,680 | |||||||||
| Service charges on deposit accounts | 3,121 | 3,116 | 2,677 | 6,237 | 5,245 | ||||||||||||||
| Interchange revenue | 3,563 | 3,358 | 3,696 | 6,921 | 7,108 | ||||||||||||||
| Residential mortgage banking revenue | 557 | 527 | 540 | 1,084 | 945 | ||||||||||||||
| Income on company-owned life insurance | 1,925 | 1,801 | 891 | 3,726 | 1,767 | ||||||||||||||
| Loss on sales of investment securities, net | (152 | ) | - | (869 | ) | (152 | ) | (1,517 | ) | ||||||||||
| Other income | 1,841 | 5,253 | 5,549 | 7,094 | 8,304 | ||||||||||||||
| Total noninterest income | $ | 17,656 | $ | 21,187 | $ | 18,753 | $ | 38,843 | $ | 34,532 | |||||||||
Wealth management revenue totaled $6.8 million in the second quarter of 2024, a decrease of $0.3 million, or 4.6%, as compared to the first quarter of 2024, due to the seasonal impact of tax planning fees in the first quarter. Assets under administration increased to $4.00 billion at June 30, 2024 from $3.89 billion at March 31, 2024, primarily due to improved sales activity. Assets under administration totaled $3.59 billion at June 30, 2023.
Noninterest Expense
Noninterest expense was $47.5 million in the second quarter of 2024, compared to $44.9 million in the first quarter of 2024 and $42.9 million in the second quarter of 2023. Noninterest expense for the second quarter of 2024 included $4.1 million of aggregate expenses related to OREO impairment and property taxes, and accruals related to various legal actions. Excluding these transactions, noninterest expense for the second quarter of 2024, the first quarter of 2024, and the second quarter of 2023 was $43.4 million, $44.9 million, and $42.9 million, respectively. The efficiency ratio increased to 65.16% for the quarter ended June 30, 2024, compared to 58.03% for the quarter ended March 31, 2024, and 55.01% for the quarter ended June 30, 2023.
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
| (in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | $ | 22,872 | $ | 24,102 | $ | 22,857 | $ | 46,974 | $ | 47,100 | |||||
| Occupancy and equipment | 3,964 | 4,142 | 3,879 | 8,106 | 8,322 | ||||||||||
| Data processing | 7,205 | 6,722 | 6,544 | 13,927 | 12,855 | ||||||||||
| Professional services | 2,243 | 2,255 | 1,663 | 4,498 | 3,423 | ||||||||||
| Amortization of intangible assets | 1,016 | 1,089 | 1,208 | 2,105 | 2,499 | ||||||||||
| FDIC insurance | 1,219 | 1,274 | 1,196 | 2,493 | 2,525 | ||||||||||
| Other expense | 8,960 | 5,283 | 5,547 | 14,243 | 10,652 | ||||||||||
| Total noninterest expense | $ | 47,479 | $ | 44,867 | $ | 42,894 | $ | 92,346 | $ | 87,376 | |||||
Income Tax Expense
Income tax expense was $1.7 million for the second quarter of 2024, compared to $4.4 million for the first quarter of 2024 and $7.2 million for the second quarter of 2023. The resulting effective tax rates were 19.9%, 23.9% and 25.1%, respectively.
Capital
At June 30, 2024, 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, 2024 | ||||||||
| Midland States Bank | Midland States Bancorp, Inc. | Minimum Regulatory Requirements (2) | ||||||
| Total capital to risk-weighted assets | 13.06 | % | 13.94 | % | 10.50 | % | ||
| Tier 1 capital to risk-weighted assets | 11.69 | % | 11.21 | % | 8.50 | % | ||
| Tier 1 leverage ratio | 10.26 | % | 9.84 | % | 4.00 | % | ||
| Common equity Tier 1 capital | 11.69 | % | 8.63 | % | 7.00 | % | ||
| Tangible common equity to tangible assets (1) | N/A | 6.59 | % | N/A | ||||
(1) A non-GAAP financial measure. Refer to page 15 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.
The impact of rising interest rates on the Company's investment portfolio and cash flow hedges resulted in an $82.6 million accumulated other comprehensive loss at June 30, 2024, which reduced tangible book value by $3.86 per share.
Stock Repurchase Program
As previously disclosed, on December 5, 2023, the Company's board of directors authorized a new share repurchase program, pursuant to which the Company is authorized to repurchase up to $25.0 million of common stock through December 31, 2024. During the second quarter of 2024, the Company repurchased 131,372 shares of its common stock at a weighted average price of $22.84 under its stock repurchase program.
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, 2024, the Company had total assets of approximately $7.76 billion, and its Wealth Management Group had assets under administration of approximately $4.00 billion. The Company provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.
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 "Adjusted Earnings," "Adjusted Earnings Available to Common Shareholders," "Adjusted Diluted Earnings Per Common Share," "Adjusted Return on Average Assets," "Adjusted Return on Average Shareholders' Equity," "Adjusted Return on Average Tangible Common Equity," "Adjusted Pre-Tax, Pre-Provision Earnings," "Adjusted Pre-Tax, Pre-Provision Return on Average Assets," "Efficiency Ratio," "Tangible Common Equity to Tangible Assets," "Tangible Book Value Per Share," "Tangible Book Value Per Share excluding Accumulated Other Comprehensive Income," and "Return on Average Tangible Common Equity." 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. 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 inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; 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
Douglas J. Tucker, SVP and Corporate Counsel, at dtucker@midlandsb.com or (217) 342-7321
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) | ||||||||||||||||||||
| As of and for the Three Months Ended | As of and for the Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Earnings Summary | ||||||||||||||||||||
| Net interest income | $ | 55,052 | $ | 55,920 | $ | 58,840 | $ | 110,972 | $ | 119,344 | ||||||||||
| Provision for credit losses | 16,800 | 14,000 | 5,879 | 30,800 | 9,014 | |||||||||||||||
| Noninterest income | 17,656 | 21,187 | 18,753 | 38,843 | 34,532 | |||||||||||||||
| Noninterest expense | 47,479 | 44,867 | 42,894 | 92,346 | 87,376 | |||||||||||||||
| Income before income taxes | 8,429 | 18,240 | 28,820 | 26,669 | 57,486 | |||||||||||||||
| Income taxes | 1,679 | 4,355 | 7,245 | 6,034 | 14,139 | |||||||||||||||
| Net income | 6,750 | 13,885 | 21,575 | 20,635 | 43,347 | |||||||||||||||
| Preferred dividends | 2,228 | 2,228 | 2,228 | 4,456 | 4,456 | |||||||||||||||
| Net income available to common shareholders | $ | 4,522 | $ | 11,657 | $ | 19,347 | $ | 16,179 | $ | 38,891 | ||||||||||
| Diluted earnings per common share | $ | 0.20 | $ | 0.53 | $ | 0.86 | $ | 0.73 | $ | 1.72 | ||||||||||
| Weighted average common shares outstanding - diluted | 21,734,849 | 21,787,691 | 22,205,079 | 21,761,492 | 22,348,981 | |||||||||||||||
| Return on average assets | 0.35 | % | 0.72 | % | 1.09 | % | 0.53 | % | 1.10 | % | ||||||||||
| Return on average shareholders' equity | 3.46 | % | 7.07 | % | 11.14 | % | 5.27 | % | 11.32 | % | ||||||||||
| Return on average tangible common equity (1) | 3.66 | % | 9.34 | % | 15.99 | % | 6.51 | % | 16.34 | % | ||||||||||
| Net interest margin | 3.12 | % | 3.18 | % | 3.23 | % | 3.15 | % | 3.31 | % | ||||||||||
| Efficiency ratio (1) | 65.16 | % | 58.03 | % | 55.01 | % | 61.49 | % | 56.31 | % | ||||||||||
| Adjusted Earnings Performance Summary (1) | ||||||||||||||||||||
| Adjusted earnings available to common shareholders | $ | 4,511 | $ | 11,657 | $ | 19,488 | $ | 16,168 | $ | 39,505 | ||||||||||
| Adjusted diluted earnings per common share | $ | 0.20 | $ | 0.53 | $ | 0.87 | $ | 0.73 | $ | 1.75 | ||||||||||
| Adjusted return on average assets | 0.35 | % | 0.72 | % | 1.10 | % | 0.53 | % | 1.12 | % | ||||||||||
| Adjusted return on average shareholders' equity | 3.46 | % | 7.07 | % | 11.21 | % | 5.27 | % | 11.48 | % | ||||||||||
| Adjusted return on average tangible common equity | 3.65 | % | 9.34 | % | 16.10 | % | 6.51 | % | 16.60 | % | ||||||||||
| Adjusted pre-tax, pre-provision earnings | $ | 25,214 | $ | 32,240 | $ | 34,892 | $ | 57,454 | $ | 67,341 | ||||||||||
| Adjusted pre-tax, pre-provision return on average assets | 1.30 | % | 1.67 | % | 1.76 | % | 1.48 | % | 1.72 | % | ||||||||||
| Market Data | ||||||||||||||||||||
| Book value per share at period end | $ | 31.59 | $ | 31.67 | $ | 30.49 | ||||||||||||||
| Tangible book value per share at period end (1) | $ | 23.36 | $ | 23.44 | $ | 22.24 | ||||||||||||||
| Tangible book value per share excluding accumulated other comprehensive income at period end (1) | $ | 27.22 | $ | 27.23 | $ | 26.11 | ||||||||||||||
| Market price at period end | $ | 22.65 | $ | 25.13 | $ | 19.91 | ||||||||||||||
| Common shares outstanding at period end | 21,377,215 | 21,485,231 | 21,854,800 | |||||||||||||||||
| Capital | ||||||||||||||||||||
| Total capital to risk-weighted assets | 13.94 | % | 13.68 | % | 12.65 | % | ||||||||||||||
| Tier 1 capital to risk-weighted assets | 11.21 | % | 11.16 | % | 10.47 | % | ||||||||||||||
| Tier 1 common capital to risk-weighted assets | 8.63 | % | 8.60 | % | 8.03 | % | ||||||||||||||
| Tier 1 leverage ratio | 9.84 | % | 9.92 | % | 9.57 | % | ||||||||||||||
| Tangible common equity to tangible assets (1) | 6.59 | % | 6.58 | % | 6.19 | % | ||||||||||||||
| Wealth Management | ||||||||||||||||||||
| Trust assets under administration | $ | 3,996,175 | $ | 3,888,219 | $ | 3,594,727 | ||||||||||||||
(1) Non-GAAP financial measures. Refer to pages 13 - 15 for a reconciliation to the comparable GAAP financial measures.
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (in thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 124,646 | $ | 167,316 | $ | 135,061 | $ | 132,132 | $ | 160,695 | ||||||||||
| Investment securities | 1,099,654 | 1,044,900 | 920,396 | 839,344 | 887,003 | |||||||||||||||
| Loans | 5,851,994 | 5,958,462 | 6,131,079 | 6,280,883 | 6,367,344 | |||||||||||||||
| Allowance for credit losses on loans | (92,183 | ) | (78,057 | ) | (68,502 | ) | (66,669 | ) | (64,950 | ) | ||||||||||
| Total loans, net | 5,759,811 | 5,880,405 | 6,062,577 | 6,214,214 | 6,302,394 | |||||||||||||||
| Loans held for sale | 5,555 | 5,043 | 3,811 | 6,089 | 5,632 | |||||||||||||||
| Premises and equipment, net | 83,040 | 81,831 | 82,814 | 82,741 | 81,006 | |||||||||||||||
| Other real estate owned | 8,304 | 8,920 | 9,112 | 480 | 202 | |||||||||||||||
| Loan servicing rights, at lower of cost or fair value | 18,902 | 19,577 | 20,253 | 20,933 | 21,611 | |||||||||||||||
| Goodwill | 161,904 | 161,904 | 161,904 | 161,904 | 161,904 | |||||||||||||||
| Other intangible assets, net | 14,003 | 15,019 | 16,108 | 17,238 | 18,367 | |||||||||||||||
| Company-owned life insurance | 207,211 | 205,286 | 203,485 | 201,750 | 152,210 | |||||||||||||||
| Other assets | 274,244 | 241,608 | 251,347 | 292,460 | 243,697 | |||||||||||||||
| Total assets | $ | 7,757,274 | $ | 7,831,809 | $ | 7,866,868 | $ | 7,969,285 | $ | 8,034,721 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 1,108,521 | $ | 1,212,382 | $ | 1,145,395 | $ | 1,154,515 | $ | 1,162,909 | ||||||||||
| Interest-bearing deposits | 5,009,502 | 5,111,602 | 5,164,134 | 5,250,487 | 5,263,639 | |||||||||||||||
| Total deposits | 6,118,023 | 6,323,984 | 6,309,529 | 6,405,002 | 6,426,548 | |||||||||||||||
| Short-term borrowings | 7,208 | 214,446 | 34,865 | 17,998 | 21,783 | |||||||||||||||
| FHLB advances and other borrowings | 600,000 | 255,000 | 476,000 | 538,000 | 575,000 | |||||||||||||||
| Subordinated debt | 91,656 | 93,617 | 93,546 | 93,475 | 93,404 | |||||||||||||||
| Trust preferred debentures | 50,921 | 50,790 | 50,616 | 50,457 | 50,296 | |||||||||||||||
| Other liabilities | 103,694 | 102,966 | 110,459 | 106,743 | 90,869 | |||||||||||||||
| Total liabilities | 6,971,502 | 7,040,803 | 7,075,015 | 7,211,675 | 7,257,900 | |||||||||||||||
| Total shareholders' equity | 785,772 | 791,006 | 791,853 | 757,610 | 776,821 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 7,757,274 | $ | 7,831,809 | $ | 7,866,868 | $ | 7,969,285 | $ | 8,034,721 | ||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | |||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
| (in thousands, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Net interest income: | |||||||||||||||||||
| Interest income | $ | 103,295 | $ | 101,675 | $ | 100,491 | $ | 204,970 | $ | 196,030 | |||||||||
| Interest expense | 48,243 | 45,755 | 41,651 | 93,998 | 76,686 | ||||||||||||||
| Net interest income | 55,052 | 55,920 | 58,840 | 110,972 | 119,344 | ||||||||||||||
| Provision for credit losses on loans | 17,000 | 14,000 | 5,879 | 31,000 | 9,014 | ||||||||||||||
| Provision for credit losses on unfunded commitments | (200 | ) | - | - | (200 | ) | - | ||||||||||||
| Total provision for credit losses | 16,800 | 14,000 | 5,879 | 30,800 | 9,014 | ||||||||||||||
| Net interest income after provision for credit losses | 38,252 | 41,920 | 52,961 | 80,172 | 110,330 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||
| Wealth management revenue | 6,801 | 7,132 | 6,269 | 13,933 | 12,680 | ||||||||||||||
| Service charges on deposit accounts | 3,121 | 3,116 | 2,677 | 6,237 | 5,245 | ||||||||||||||
| Interchange revenue | 3,563 | 3,358 | 3,696 | 6,921 | 7,108 | ||||||||||||||
| Residential mortgage banking revenue | 557 | 527 | 540 | 1,084 | 945 | ||||||||||||||
| Income on company-owned life insurance | 1,925 | 1,801 | 891 | 3,726 | 1,767 | ||||||||||||||
| Loss on sales of investment securities, net | (152 | ) | - | (869 | ) | (152 | ) | (1,517 | ) | ||||||||||
| Other income | 1,841 | 5,253 | 5,549 | 7,094 | 8,304 | ||||||||||||||
| Total noninterest income | 17,656 | 21,187 | 18,753 | 38,843 | 34,532 | ||||||||||||||
| Noninterest expense: | |||||||||||||||||||
| Salaries and employee benefits | 22,872 | 24,102 | 22,857 | 46,974 | 47,100 | ||||||||||||||
| Occupancy and equipment | 3,964 | 4,142 | 3,879 | 8,106 | 8,322 | ||||||||||||||
| Data processing | 7,205 | 6,722 | 6,544 | 13,927 | 12,855 | ||||||||||||||
| Professional services | 2,243 | 2,255 | 1,663 | 4,498 | 3,423 | ||||||||||||||
| Amortization of intangible assets | 1,016 | 1,089 | 1,208 | 2,105 | 2,499 | ||||||||||||||
| FDIC insurance | 1,219 | 1,274 | 1,196 | 2,493 | 2,525 | ||||||||||||||
| Other expense | 8,960 | 5,283 | 5,547 | 14,243 | 10,652 | ||||||||||||||
| Total noninterest expense | 47,479 | 44,867 | 42,894 | 92,346 | 87,376 | ||||||||||||||
| Income before income taxes | 8,429 | 18,240 | 28,820 | 26,669 | 57,486 | ||||||||||||||
| Income taxes | 1,679 | 4,355 | 7,245 | 6,034 | 14,139 | ||||||||||||||
| Net income | 6,750 | 13,885 | 21,575 | 20,635 | 43,347 | ||||||||||||||
| Preferred stock dividends | 2,228 | 2,228 | 2,228 | 4,456 | 4,456 | ||||||||||||||
| Net income available to common shareholders | $ | 4,522 | $ | 11,657 | $ | 19,347 | $ | 16,179 | $ | 38,891 | |||||||||
| Basic earnings per common share | $ | 0.20 | $ | 0.53 | $ | 0.86 | $ | 0.73 | $ | 1.72 | |||||||||
| Diluted earnings per common share | $ | 0.20 | $ | 0.53 | $ | 0.86 | $ | 0.73 | $ | 1.72 | |||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Adjusted Earnings Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Income before income taxes - GAAP | $ | 8,429 | $ | 18,240 | $ | 28,820 | $ | 26,669 | $ | 57,486 | ||||||||||
| Adjustments to noninterest income: | ||||||||||||||||||||
| Loss on sales of investment securities, net | 152 | - | 869 | 152 | 1,517 | |||||||||||||||
| (Gain) on repurchase of subordinated debt | (167 | ) | - | (676 | ) | (167 | ) | (676 | ) | |||||||||||
| Total adjustments to noninterest income | (15 | ) | - | 193 | (15 | ) | 841 | |||||||||||||
| Adjusted earnings pre tax - non-GAAP | 8,414 | 18,240 | 29,013 | 26,654 | 58,327 | |||||||||||||||
| Adjusted earnings tax | 1,675 | 4,355 | 7,297 | 6,030 | 14,366 | |||||||||||||||
| Adjusted earnings - non-GAAP | 6,739 | 13,885 | 21,716 | 20,624 | 43,961 | |||||||||||||||
| Preferred stock dividends | 2,228 | 2,228 | 2,228 | 4,456 | 4,456 | |||||||||||||||
| Adjusted earnings available to common shareholders | $ | 4,511 | $ | 11,657 | $ | 19,488 | $ | 16,168 | $ | 39,505 | ||||||||||
| Adjusted diluted earnings per common share | $ | 0.20 | $ | 0.53 | $ | 0.87 | $ | 0.73 | $ | 1.75 | ||||||||||
| Adjusted return on average assets | 0.35 | % | 0.72 | % | 1.10 | % | 0.53 | % | 1.12 | % | ||||||||||
| Adjusted return on average shareholders' equity | 3.46 | % | 7.07 | % | 11.21 | % | 5.27 | % | 11.48 | % | ||||||||||
| Adjusted return on average tangible common equity | 3.65 | % | 9.34 | % | 16.10 | % | 6.51 | % | 16.60 | % | ||||||||||
| Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Adjusted earnings pre tax - non-GAAP | $ | 8,414 | $ | 18,240 | $ | 29,013 | $ | 26,654 | $ | 58,327 | ||||||||||
| Provision for credit losses | 16,800 | 14,000 | 5,879 | 30,800 | 9,014 | |||||||||||||||
| Adjusted pre-tax, pre-provision earnings - non-GAAP | $ | 25,214 | $ | 32,240 | $ | 34,892 | $ | 57,454 | $ | 67,341 | ||||||||||
| Adjusted pre-tax, pre-provision return on average assets | 1.30 | % | 1.67 | % | 1.76 | % | 1.48 | % | 1.72 | % | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) | ||||||||||||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Noninterest expense - GAAP | $ | 47,479 | $ | 44,867 | $ | 42,894 | $ | 92,346 | $ | 87,376 | ||||||||||
| Net interest income - GAAP | $ | 55,052 | $ | 55,920 | $ | 58,840 | $ | 110,972 | $ | 119,344 | ||||||||||
| Effect of tax-exempt income | 170 | 215 | 195 | 384 | 439 | |||||||||||||||
| Adjusted net interest income | 55,222 | 56,135 | 59,035 | 111,356 | 119,783 | |||||||||||||||
| Noninterest income - GAAP | 17,656 | 21,187 | 18,753 | 38,843 | 34,532 | |||||||||||||||
| Loss on sales of investment securities, net | 152 | - | 869 | 152 | 1,517 | |||||||||||||||
| (Gain) on repurchase of subordinated debt | (167 | ) | - | (676 | ) | (167 | ) | (676 | ) | |||||||||||
| Adjusted noninterest income | 17,641 | 21,187 | 18,946 | 38,828 | 35,373 | |||||||||||||||
| Adjusted total revenue | $ | 72,863 | $ | 77,322 | $ | 77,981 | $ | 150,184 | $ | 155,156 | ||||||||||
| Efficiency ratio | 65.16 | % | 58.03 | % | 55.01 | % | 61.49 | % | 56.31 | % | ||||||||||
| Return on Average Tangible Common Equity (ROATCE) | ||||||||||||||||||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||
| (dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net income available to common shareholders | $ | 4,522 | $ | 11,657 | $ | 19,347 | $ | 16,179 | $ | 38,891 | ||||||||||
| Average total shareholders' equity-GAAP | $ | 783,846 | $ | 789,906 | $ | 776,791 | $ | 786,877 | $ | 772,015 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Preferred Stock | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | ||||||||||
| Goodwill | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (14,483 | ) | (15,525 | ) | (18,937 | ) | (15,004 | ) | (19,557 | ) | ||||||||||
| Average tangible common equity | $ | 496,911 | $ | 501,929 | $ | 485,402 | $ | 499,421 | $ | 480,006 | ||||||||||
| ROATCE | 3.66 | % | 9.34 | % | 15.99 | % | 6.51 | % | 16.34 | % | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) | ||||||||||||||||||||
| 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) | 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
| Shareholders' Equity to Tangible Common Equity | ||||||||||||||||||||
| Total shareholders' equity-GAAP | $ | 785,772 | $ | 791,006 | $ | 791,853 | $ | 757,610 | $ | 776,821 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Preferred Stock | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | (110,548 | ) | ||||||||||
| Goodwill | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (14,003 | ) | (15,019 | ) | (16,108 | ) | (17,238 | ) | (18,367 | ) | ||||||||||
| Tangible common equity | 499,317 | 503,535 | 503,293 | 467,920 | 486,002 | |||||||||||||||
| Less: Accumulated other comprehensive loss (AOCI) | (82,581 | ) | (81,419 | ) | (76,753 | ) | (101,181 | ) | (84,719 | ) | ||||||||||
| Tangible common equity excluding AOCI | $ | 581,898 | $ | 584,954 | $ | 580,046 | $ | 569,101 | $ | 570,721 | ||||||||||
| Total Assets to Tangible Assets: | ||||||||||||||||||||
| Total assets-GAAP | $ | 7,757,274 | $ | 7,831,809 | $ | 7,866,868 | $ | 7,969,285 | $ | 8,034,721 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Goodwill | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (14,003 | ) | (15,019 | ) | (16,108 | ) | (17,238 | ) | (18,367 | ) | ||||||||||
| Tangible assets | $ | 7,581,367 | $ | 7,654,886 | $ | 7,688,856 | $ | 7,790,143 | $ | 7,854,450 | ||||||||||
| Common Shares Outstanding | 21,377,215 | 21,485,231 | 21,551,402 | 21,594,546 | 21,854,800 | |||||||||||||||
| Tangible Common Equity to Tangible Assets | 6.59 | % | 6.58 | % | 6.55 | % | 6.01 | % | 6.19 | % | ||||||||||
| Tangible Book Value Per Share | $ | 23.36 | $ | 23.44 | $ | 23.35 | $ | 21.67 | $ | 22.24 | ||||||||||
| Tangible Book Value Per Share, excluding AOCI | $ | 27.22 | $ | 27.23 | $ | 26.91 | $ | 26.35 | $ | 26.11 | ||||||||||
