Midland States Bancorp, Inc. Announces 2025 Second Quarter Results

EFFINGHAM, Ill., July 24, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ:MSBI) (the "Company") today reported net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025, compared to net income available to common shareholders of $23.5 million, or $1.06 per diluted share, for the second quarter of 2024.

This also compares to a net loss of $143.2 million, or $6.58 per diluted share, for the first quarter of 2025, which included impairment of goodwill of $154.0 million.

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 to 3.49% in prior quarter
• Nonperforming assets to total assets of 1.56%, compared to 2.08% in prior quarter
• Total capital to risk-weighted assets of 14.50% and common equity tier 1 capital of 9.02%

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 10.0%.

During the quarter, we had limited new substandard or nonperforming loans identified, and importantly saw our non-performing assets decrease to $111 million, or 1.56% of total assets, versus $151 million, or 2.08% of total assets in the first quarter. After quarter-end, the bank successfully exited two larger non-performing relationships in July totaling $29 million, which all else equal would bring our non-performing asset ratio down another 41 basis points. Tighter underwriting standards in our equipment finance and specialty finance portfolios have already begun to meaningfully reduce our exposure to these higher-risk portfolios. In addition, we completed the previously announced sale of our GreenSky loans in April further improving our capital and liquidity.

Profitability trends were also favorable in the second quarter, with net interest margin expanding 7 basis points to 3.56%, pre-provision net revenue growing to $32.2 million, and strong contribution from our wealth management platform. We expect further improvement in profitability over the balance of 2025."

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, or 1.83% 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, or 1.8%, 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.
• 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.
• 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 to 2.19% 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 21%. Tax-equivalent adjustments totaled $0.3 million, $0.2 million and $0.2 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

(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	13.74%			14.50%			10.50%
Tier 1 capital to risk-weighted assets	12.49%			12.07%			8.50%
Common equity Tier 1 capital to risk-weighted assets	12.49%			9.02%			7.00%
Tier 1 leverage ratio	9.93%			9.59%			4.00%
Tangible common equity to tangible assets (1)	N/A			6.27%			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 2.5%, as applicable.

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 $7.11 billion, and its Wealth Management Group had assets under administration of approximately $4.18 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 "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 [email protected] or (217) 342-7321

Eric T. Lemke, Chief Financial Officer, at [email protected] 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