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,
(dollars in thousands)		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 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