Midland States Bancorp, Inc. Announces 2024 Fourth Quarter Results
Midland States Bancorp (MSBI) reported a net loss of $54.8 million ($2.52 per diluted share) in Q4 2024, compared to net income of $16.2 million in Q3 2024. The loss was primarily driven by significant credit quality actions, including:
- Sale of $87.1 million LendingPoint consumer loan portfolio with $17.3 million in losses
- Plan to sell $371.7 million Greensky portfolio with $33.4 million in losses
- Total net charge-offs of $102.7 million and provision for credit losses of $93.5 million
Key metrics for Q4 2024:
- Net interest margin: 3.19% (up from 3.10% in Q3)
- Wealth management revenue: $7.7 million (up from $7.1 million in Q3)
- Common equity tier 1 capital ratio: 8.37% (down from 9.00% in Q3)
- Total assets: $7.53 billion
- Total deposits: $6.20 billion
Midland States Bancorp (MSBI) ha riportato una perdita netta di 54,8 milioni di dollari (2,52 dollari per azione diluita) nel quarto trimestre del 2024, rispetto a un utile netto di 16,2 milioni di dollari nel terzo trimestre del 2024. La perdita è stata principalmente causata da azioni significative sulla qualità del credito, tra cui:
- Vendita di un portafoglio di prestiti al consumo LendingPoint di 87,1 milioni di dollari con perdite di 17,3 milioni di dollari
- Piano di vendita del portafoglio Greensky di 371,7 milioni di dollari con perdite di 33,4 milioni di dollari
- Totale cancellazioni nette di 102,7 milioni di dollari e accantonamento per perdite su crediti di 93,5 milioni di dollari
Metrica chiave per il quarto trimestre del 2024:
- Margine di interesse netto: 3,19% (in aumento dal 3,10% del terzo trimestre)
- Entrate dalla gestione patrimoniale: 7,7 milioni di dollari (in aumento dai 7,1 milioni di dollari del terzo trimestre)
- Rapporto patrimoniale di base comune: 8,37% (in diminuzione dal 9,00% del terzo trimestre)
- Attività totali: 7,53 miliardi di dollari
- Depositi totali: 6,20 miliardi di dollari
Midland States Bancorp (MSBI) reportó una pérdida neta de 54.8 millones de dólares (2.52 dólares por acción diluida) en el cuarto trimestre de 2024, en comparación con una ganancia neta de 16.2 millones de dólares en el tercer trimestre de 2024. La pérdida fue impulsada principalmente por acciones significativas en la calidad crediticia, que incluyeron:
- Venta de una cartera de préstamos al consumo de LendingPoint por 87.1 millones de dólares con pérdidas de 17.3 millones de dólares
- Plan para vender la cartera de Greensky por 371.7 millones de dólares con pérdidas de 33.4 millones de dólares
- Cargas totales netas de 102.7 millones de dólares y una provisión para pérdidas crediticias de 93.5 millones de dólares
Métricas clave para el cuarto trimestre de 2024:
- Margen de interés neto: 3.19% (un aumento desde el 3.10% en el tercer trimestre)
- Ingresos por gestión de patrimonios: 7.7 millones de dólares (un aumento desde los 7.1 millones de dólares en el tercer trimestre)
- Ratio de capital básico común: 8.37% (una disminución desde el 9.00% en el tercer trimestre)
- Activos totales: 7.53 mil millones de dólares
- Depósitos totales: 6.20 mil millones de dólares
Midland States Bancorp (MSBI)는 2024년 4분기에 54.8 백만 달러(주당 2.52 달러)의 순손실을 보고했으며, 2024년 3분기에는 16.2 백만 달러의 순수익을 기록했습니다. 손실의 주된 원인은 다음과 같은 주요 신용 품질 조치 때문입니다:
- 17.3 백만 달러의 손실이 발생한 87.1 백만 달러 규모의 LendingPoint 소비자 대출 포트폴리오 매각
- 33.4 백만 달러의 손실이 발생한 371.7 백만 달러 규모의 Greensky 포트폴리오 매각 계획
- 총 순손실 102.7 백만 달러와 신용 손실 준비금 93.5 백만 달러
2024년 4분기의 주요 지표:
- 순이자 마진: 3.19% (3분기 3.10%에서 증가)
- 자산 관리 수익: 7.7 백만 달러 (3분기 7.1 백만 달러에서 증가)
- 기본 자본 비율: 8.37% (3분기 9.00%에서 감소)
- 총 자산: 75.3억 달러
- 총 예금: 62억 달러
Midland States Bancorp (MSBI) a déclaré une perte nette de 54,8 millions de dollars (2,52 dollars par action diluée) au 4ème trimestre 2024, contre un bénéfice net de 16,2 millions de dollars au 3ème trimestre 2024. La perte a été principalement due à des actions significatives sur la qualité du crédit, y compris :
- Vente d'un portefeuille de prêts à la consommation LendingPoint d'une valeur de 87,1 millions de dollars avec des pertes de 17,3 millions de dollars
- Plan de vente du portefeuille Greensky d'une valeur de 371,7 millions de dollars avec des pertes de 33,4 millions de dollars
- Total des dépréciations nettes de 102,7 millions de dollars et provision pour pertes de crédit de 93,5 millions de dollars
Indicateurs clés pour le 4ème trimestre 2024 :
- Marge d'intérêt nette : 3,19 % (en hausse par rapport à 3,10 % au 3ème trimestre)
- Revenus de la gestion de patrimoine : 7,7 millions de dollars (en hausse par rapport à 7,1 millions de dollars au 3ème trimestre)
- Ratio de capital de base commun : 8,37 % (en baisse par rapport à 9,00 % au 3ème trimestre)
- Total des actifs : 7,53 milliards de dollars
- Total des dépôts : 6,20 milliards de dollars
Midland States Bancorp (MSBI) berichtete im 4. Quartal 2024 über einen Nettverlust von 54,8 Millionen Dollar (2,52 Dollar pro verwässerter Aktie), verglichen mit einem Nettogewinn von 16,2 Millionen Dollar im 3. Quartal 2024. Der Verlust wurde hauptsächlich durch bedeutende Maßnahmen zur Kreditqualität verursacht, darunter:
- Verkauf eines Konsumentenkreditportfolios von LendingPoint im Wert von 87,1 Millionen Dollar mit einem Verlust von 17,3 Millionen Dollar
- Plan zum Verkauf des Greensky-Portfolios im Wert von 371,7 Millionen Dollar mit einem Verlust von 33,4 Millionen Dollar
- Gesamte Nettobuchverluste von 102,7 Millionen Dollar und Rückstellungen für Kreditverluste von 93,5 Millionen Dollar
Wichtige Kennzahlen für das 4. Quartal 2024:
- Nettzinsspanne: 3,19% (Steigerung von 3,10% im 3. Quartal)
- Einnahmen aus Vermögensverwaltung: 7,7 Millionen Dollar (Steigerung von 7,1 Millionen Dollar im 3. Quartal)
- CET1-Kapitalquote: 8,37% (Rückgang von 9,00% im 3. Quartal)
- Gesamte Vermögenswerte: 7,53 Milliarden Dollar
- Gesamteinlagen: 6,20 Milliarden Dollar
- Net interest margin improved to 3.19% from 3.10% in previous quarter
- Wealth management revenue increased to $7.7 million from $7.1 million in Q3
- Substandard accruing loans decreased $88.7 million to $78.8 million
- Delinquencies decreased during the quarter
- Net loss of $54.8 million compared to net income of $16.2 million in Q3 2024
- Net charge-offs increased to $102.7 million from $11.4 million in Q3
- Nonperforming loans increased $25.6 million to $140.1 million
- Common equity tier 1 capital ratio declined to 8.37% from 9.00%
- Total assets decreased to $7.53 billion from $7.75 billion in Q3
Insights
The Q4 2024 results reveal a pivotal transformation at Midland States Bancorp, marked by an aggressive balance sheet cleanup that resulted in a
Three critical aspects deserve attention:
- Portfolio Restructuring: The exit from non-core consumer lending through the sale of LendingPoint and Greensky portfolios, while painful with
$50.7 million in combined losses, eliminates significant risk factors and refocuses the bank on its core community banking strengths. - Credit Quality Cleanup: The comprehensive review of the Specialty Finance Group resulted in
$25.4 million in charge-offs on commercial real estate exposure, indicating potential ongoing challenges in the CRE sector but also demonstrating transparency in addressing problems. - Capital Impact: The decline in CET1 to
8.37% from9.00% is concerning but remains above regulatory minimums. The total risk-based capital ratio of13.38% provides some buffer, though careful capital management will be important in 2025.
Positive indicators include strengthening core operations with wealth management revenue increasing to
Looking ahead, the bank's refocused strategy on traditional community banking, combined with reduced risk exposure, positions it for potentially more stable earnings in 2025, though near-term profitability will likely remain under pressure as the remaining portfolio cleanup continues.
Fourth Quarter 2024 Highlights:
- Net loss available to common shareholders of
$54.8 million , or$2.52 per diluted share - Adjusted pre-tax, pre-provision earnings of
$21.5 million , compared to$27.5 million in prior quarter - Sold
$87.1 million LendingPoint consumer loan portfolio, recognizing net charge-offs and provision for credit losses of$17.3 million - Committed to a plan to sell
$371.7 million Greensky portfolio, recognizing net charge-offs and provision for credit losses of$33.4 million - Net charge-offs on loans of
$102.7 million and provision for credit losses on loans of$93.5 million to address credit issues in the loan portfolio including credit losses for LendingPoint and Greensky portfolios - Net interest margin of
3.19% , compared to3.10% in prior quarter - Wealth management revenue of
$7.7 million , compared to$7.1 million in prior quarter - Common equity tier 1 capital ratio of
8.37% , compared to9.00% at September 30, 2024 and8.40% at December 31, 2023 - Total risk-based capital ratio of
13.38% , compared to13.98% at September 30, 2024 and13.20% at December 31, 2023
EFFINGHAM, Ill., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net loss available to common shareholders of
During the fourth quarter of 2024, the Company took several actions to address its credit quality issues and exit its non-core consumer loan portfolios. Our deteriorating credit quality issues were primarily within three sectors of our business: non-core consumer loans, Specialty Finance Group, and Midland Equipment Financing.
In the quarter, the Company decided to accelerate the reduction of our non-core consumer loan portfolio through sales. These loans were originated by our Fintech partners, LendingPoint and Greensky. As a result of LendingPoint’s system conversion in the third quarter of 2023, our portfolio experienced significant credit deterioration and servicing-related deficiencies. In December 2024, we sold our
The Specialty Finance Group provides bridge loan financing for commercial real estate projects, primarily multi-family and healthcare. These projects can include construction and seek short term financing in anticipation of obtaining permanent secondary market financing. The loans are typically outside of the Company’s primary market areas. We completed a strategic review of this portfolio including obtaining updated appraisals on loans that had shown elevated credit risk in the third and fourth quarters. As a result of this review, five loans with balances of
The strategic review also included all criticized loans, construction loans and loans that failed our stress test in all portfolios, including our community bank. This resulted in charge-offs of almost all specific reserves. In addition, the Company tightened credit standards going forward and will not originate new construction loans in the Specialty Finance Group. Our strategic actions around credit administration will better position the Company going forward.
The equipment finance portfolio includes loans and leases originated to customers throughout the United States. During 2024, we experienced elevated charge-offs primarily within the trucking industry. Charge-offs in this portfolio were
Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “Improving credit quality is our number one priority and in the fourth quarter we took significant steps to reduce credit risk and address our underlying credit issues. During the quarter we made the difficult decision to exit our non-core consumer portfolio and charge-off deteriorating credits in an effort to better position the Company to grow our core community banking business. Our team also reviewed our credit risk appetite profile and tightened standards going forward. On a positive note, substandard accruing loans decreased significantly in the quarter with minimal downgrades to substandard accruing. Delinquencies decreased during the quarter as well.
“We are seeing positive trends in new client additions in both our community bank and wealth management, net interest margin expanded in the quarter and with the actions we took in the quarter to reduce credit risk, we believe we are well positioned to deliver solid financial performance in 2025. We will continue to make investments in talent, technology, and marketing to further enhance our ability to generate profitable growth in the coming years,” said Mr. Ludwig.
Balance Sheet Highlights
Total assets were
Loans
During the fourth quarter of 2024, outstanding loans declined by
Consumer loans decreased
| As of | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| (in thousands) | 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||
| Loan Portfolio | |||||||||||||||
| Commercial loans | $ | 921,930 | $ | 863,922 | $ | 939,458 | $ | 913,564 | $ | 951,387 | |||||
| Equipment finance loans | 416,969 | 442,552 | 461,409 | 494,068 | 531,143 | ||||||||||
| Equipment finance leases | 391,390 | 417,531 | 428,659 | 455,879 | 473,350 | ||||||||||
| Commercial FHA warehouse lines | 8,004 | 50,198 | — | 8,035 | — | ||||||||||
| Total commercial loans and leases | 1,738,293 | 1,774,203 | 1,829,526 | 1,871,546 | 1,955,880 | ||||||||||
| Commercial real estate | 2,591,664 | 2,510,472 | 2,421,505 | 2,397,113 | 2,406,845 | ||||||||||
| Construction and land development | 299,842 | 422,253 | 476,528 | 474,128 | 452,593 | ||||||||||
| Residential real estate | 380,557 | 378,657 | 378,393 | 378,583 | 380,583 | ||||||||||
| Consumer | 157,218 | 663,234 | 746,042 | 837,092 | 935,178 | ||||||||||
| Total loans | $ | 5,167,574 | $ | 5,748,819 | $ | 5,851,994 | $ | 5,958,462 | $ | 6,131,079 | |||||
Loan Quality
Substandard accruing loans decreased
Nonperforming loans increased
| As of and for the Three Months Ended | ||||||||||||||||||||
| (in thousands) | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loans 30-89 days past due | $ | 36,522 | $ | 55,329 | $ | 54,045 | $ | 58,854 | $ | 82,778 | ||||||||||
| Nonperforming loans | 140,138 | 114,556 | 112,124 | 104,979 | 56,351 | |||||||||||||||
| Nonperforming assets | 148,290 | 126,771 | 123,774 | 116,721 | 67,701 | |||||||||||||||
| Substandard accruing loans | 78,800 | 167,549 | 135,555 | 149,049 | 184,224 | |||||||||||||||
| Net charge-offs | 102,660 | 11,379 | 2,874 | 4,445 | 5,117 | |||||||||||||||
| Loans 30-89 days past due to total loans | 0.71 | % | 0.96 | % | 0.92 | % | 0.99 | % | 1.35 | % | ||||||||||
| Nonperforming loans to total loans | 2.71 | % | 1.99 | % | 1.92 | % | 1.76 | % | 0.92 | % | ||||||||||
| Nonperforming assets to total assets | 1.97 | % | 1.64 | % | 1.60 | % | 1.49 | % | 0.86 | % | ||||||||||
| Allowance for credit losses to total loans | 1.46 | % | 1.49 | % | 1.58 | % | 1.31 | % | 1.12 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 53.81 | % | 74.90 | % | 82.22 | % | 74.35 | % | 121.56 | % | ||||||||||
| Net charge-offs to average loans | 7.23 | % | 0.78 | % | 0.20 | % | 0.30 | % | 0.33 | % | ||||||||||
The Company recognized provision expense for credit losses on loans of
The allowance for credit losses on loans totaled
Deposits
Total deposits were
| As of | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| (in thousands) | 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||
| Deposit Portfolio | |||||||||||||||
| Noninterest-bearing demand | $ | 1,055,564 | $ | 1,050,617 | $ | 1,108,521 | $ | 1,212,382 | $ | 1,145,395 | |||||
| Interest-bearing: | |||||||||||||||
| Checking | 2,378,256 | 2,389,970 | 2,343,533 | 2,394,163 | 2,511,840 | ||||||||||
| Money market | 1,173,630 | 1,187,139 | 1,143,668 | 1,128,463 | 1,135,629 | ||||||||||
| Savings | 507,305 | 510,260 | 538,462 | 555,552 | 559,267 | ||||||||||
| Time | 822,981 | 849,413 | 852,415 | 845,190 | 862,865 | ||||||||||
| Brokered time | 259,507 | 269,437 | 131,424 | 188,234 | 94,533 | ||||||||||
| Total deposits | $ | 6,197,243 | $ | 6,256,836 | $ | 6,118,023 | $ | 6,323,984 | $ | 6,309,529 | |||||
Results of Operations Highlights
Net Interest Income and Margin
During the fourth quarter of 2024, net interest income and net interest margin, on a tax-equivalent basis, increased to
Average interest-earning assets for the fourth quarter of 2024 were
Average loans were
Investment securities averaged
Average interest-bearing liabilities for the fourth quarter of 2024 were
Average interest-bearing deposits were
| For the Three Months Ended | |||||||||||||||||||||||||||
| (dollars in thousands) | December 31, 2024 | September 30, 2024 | December 31, 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 | $ | 96,676 | $ | 1,101 | 4.53 | % | $ | 75,255 | $ | 1,031 | 5.45 | % | $ | 77,363 | $ | 1,054 | 5.41 | % | |||||||||
| Investment securities(1) | 1,213,248 | 14,417 | 4.73 | 1,162,751 | 13,752 | 4.71 | 883,153 | 9,257 | 4.16 | ||||||||||||||||||
| Loans(1)(2) | 5,652,586 | 85,877 | 6.04 | 5,783,408 | 89,344 | 6.15 | 6,196,362 | 93,757 | 6.00 | ||||||||||||||||||
| Loans held for sale | 12,854 | 129 | 4.00 | 7,505 | 124 | 6.57 | 4,429 | 81 | 7.26 | ||||||||||||||||||
| Nonmarketable equity securities | 35,171 | 632 | 7.15 | 41,137 | 788 | 7.62 | 41,192 | 715 | 6.89 | ||||||||||||||||||
| Total interest-earning assets | 7,010,535 | 102,156 | 5.80 | 7,070,056 | 105,039 | 5.91 | 7,202,499 | 104,864 | 5.78 | ||||||||||||||||||
| Noninterest-earning assets | 669,300 | 653,279 | 695,293 | ||||||||||||||||||||||||
| Total assets | $ | 7,679,835 | $ | 7,723,335 | $ | 7,897,792 | |||||||||||||||||||||
| Interest-Bearing Liabilities | |||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 5,241,702 | $ | 40,016 | 3.04 | % | $ | 5,132,640 | $ | 41,970 | 3.25 | % | $ | 5,295,296 | $ | 39,156 | 2.93 | % | |||||||||
| Short-term borrowings | 31,853 | 214 | 2.68 | 53,577 | 602 | 4.47 | 13,139 | 15 | 0.47 | ||||||||||||||||||
| FHLB advances & other borrowings | 284,033 | 2,880 | 4.03 | 428,739 | 4,743 | 4.40 | 430,207 | 4,750 | 4.38 | ||||||||||||||||||
| Subordinated debt | 80,410 | 1,498 | 7.41 | 89,120 | 1,228 | 5.48 | 93,512 | 1,281 | 5.43 | ||||||||||||||||||
| Trust preferred debentures | 51,132 | 1,292 | 10.05 | 50,990 | 1,341 | 10.46 | 50,541 | 1,402 | 11.00 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,689,130 | 45,900 | 3.21 | 5,755,066 | 49,884 | 3.45 | 5,882,695 | 46,604 | 3.14 | ||||||||||||||||||
| Noninterest-bearing deposits | 1,066,520 | 1,075,712 | 1,142,062 | ||||||||||||||||||||||||
| Other noninterest-bearing liabilities | 117,478 | 97,235 | 108,245 | ||||||||||||||||||||||||
| Shareholders’ equity | 806,707 | 795,322 | 764,790 | ||||||||||||||||||||||||
| Total liabilities and shareholder’s equity | $ | 7,679,835 | $ | 7,723,335 | $ | 7,897,792 | |||||||||||||||||||||
| Net Interest Margin | $ | 56,256 | 3.19 | % | $ | 55,155 | 3.10 | % | $ | 58,260 | 3.21 | % | |||||||||||||||
| Cost of Deposits | 2.52 | % | 2.69 | % | 2.41 | % | |||||||||||||||||||||
(1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
For the year ended December 31, 2024, net interest income, on a tax-equivalent basis, decreased to
The yield on earning assets increased 26 basis points to
| For the Years Ended | ||||||||||||||||||
| (dollars in thousands) | December 31, 2024 | December 31, 2023 | ||||||||||||||||
| Interest-earning assets | Average Balance | Interest & Fees | Yield/Rate | Average Balance | Interest & Fees | Yield/Rate | ||||||||||||
| Cash and cash equivalents | $ | 76,675 | $ | 3,958 | 5.16 | % | $ | 77,046 | $ | 3,922 | 5.09 | % | ||||||
| Investment securities(1) | 1,116,186 | 51,682 | 4.63 | 854,576 | 30,361 | 3.55 | ||||||||||||
| Loans(1)(2) | 5,840,216 | 353,447 | 6.05 | 6,292,260 | 367,762 | 5.84 | ||||||||||||
| Loans held for sale | 7,185 | 392 | 5.45 | 4,034 | 260 | 6.45 | ||||||||||||
| Nonmarketable equity securities | 39,108 | 3,070 | 7.85 | 43,318 | 2,819 | 6.51 | ||||||||||||
| Total interest-earning assets | 7,079,370 | 412,549 | 5.83 | 7,271,234 | 405,124 | 5.57 | ||||||||||||
| Noninterest-earning assets | 665,308 | 635,490 | ||||||||||||||||
| Total assets | $ | 7,744,678 | $ | 7,906,724 | ||||||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||
| Interest-bearing deposits | $ | 5,167,787 | $ | 160,676 | 3.11 | % | $ | 5,241,723 | $ | 136,947 | 2.61 | % | ||||||
| Short-term borrowings | 45,251 | 1,960 | 4.33 | 23,406 | 68 | 0.29 | ||||||||||||
| FHLB advances & other borrowings | 381,525 | 16,495 | 4.32 | 460,781 | 20,709 | 4.49 | ||||||||||||
| Subordinated debt | 89,028 | 5,271 | 5.92 | 95,986 | 5,266 | 5.49 | ||||||||||||
| Trust preferred debentures | 50,938 | 5,380 | 10.56 | 50,298 | 5,289 | 10.52 | ||||||||||||
| Total interest-bearing liabilities | 5,734,529 | 189,782 | 3.31 | 5,872,194 | 168,279 | 2.87 | ||||||||||||
| Noninterest-bearing deposits | 1,106,388 | 1,173,873 | ||||||||||||||||
| Other noninterest-bearing liabilities | 109,777 | 90,562 | ||||||||||||||||
| Shareholders’ equity | 793,984 | 770,095 | ||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,744,678 | $ | 7,906,724 | ||||||||||||||
| Net Interest Margin | $ | 222,767 | 3.15 | % | $ | 236,845 | 3.26 | % | ||||||||||
| Cost of Deposits | 2.56 | % | 2.13 | % | ||||||||||||||
(1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of
(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.
Noninterest Income
Noninterest income was
| For the Three Months Ended | For the Years Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| (in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Wealth management revenue | $ | 7,660 | $ | 7,104 | $ | 6,604 | $ | 28,697 | $ | 25,572 | ||||||||||
| Service charges on deposit accounts | 3,506 | 3,411 | 3,246 | 13,154 | 11,990 | |||||||||||||||
| Interchange revenue | 3,528 | 3,506 | 3,585 | 13,955 | 14,302 | |||||||||||||||
| Residential mortgage banking revenue | 637 | 697 | 451 | 2,418 | 1,903 | |||||||||||||||
| Income on company-owned life insurance | 1,975 | 1,982 | 1,753 | 7,683 | 4,439 | |||||||||||||||
| Loss on sales of investment securities, net | (34 | ) | (44 | ) | (2,894 | ) | (230 | ) | (9,372 | ) | ||||||||||
| Other income | 2,289 | 2,683 | 7,768 | 12,066 | 17,756 | |||||||||||||||
| Total noninterest income | $ | 19,561 | $ | 19,339 | $ | 20,513 | $ | 77,743 | $ | 66,590 | ||||||||||
Wealth management revenue totaled
Income on company-owned life insurance income totaled
On a full year basis, noninterest income increased
Noninterest Expense
Noninterest expense was
On a full year basis, in addition to the fourth quarter expenses previously described, costs related to upgrades to our ATM fleet, loan collection expenses, and settlement of various lawsuits drove the increase in noninterest expense as compared to the prior year.
The efficiency ratio for the quarter ended December 31, 2024 was
| For the Three Months Ended | For the Years Ended | ||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
| (in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
| Noninterest expense | |||||||||||||||
| Salaries and employee benefits | $ | 22,283 | $ | 24,382 | $ | 24,031 | $ | 93,639 | $ | 93,438 | |||||
| Occupancy and equipment | 4,286 | 4,393 | 3,934 | 16,785 | 15,986 | ||||||||||
| Data processing | 7,278 | 6,955 | 6,963 | 28,160 | 26,286 | ||||||||||
| Professional services | 1,580 | 1,744 | 2,072 | 7,822 | 7,049 | ||||||||||
| Amortization of intangible assets | 952 | 951 | 1,130 | 4,008 | 4,758 | ||||||||||
| Impairment on leased assets and surrendered assets | 7,601 | — | — | 7,601 | — | ||||||||||
| FDIC insurance | 1,383 | 1,402 | 1,147 | 5,278 | 4,779 | ||||||||||
| Other expense | 8,820 | 6,906 | 5,211 | 29,969 | 21,606 | ||||||||||
| Total noninterest expense | $ | 54,183 | $ | 46,733 | $ | 44,488 | $ | 193,262 | $ | 173,902 | |||||
Income Tax Expense
Income tax benefit was
Capital
At December 31, 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 December 31, 2024 | |||||
| Midland States Bank | Midland States Bancorp, Inc. | Minimum Regulatory Requirements(2) | |||
| Total capital to risk-weighted assets | |||||
| Tier 1 capital to risk-weighted assets | |||||
| Common equity Tier 1 capital to risk-weighted assets | |||||
| Tier 1 leverage ratio | |||||
| Tangible common equity to tangible assets(1) | N/A | N/A | |||
(1) A non-GAAP financial measure. Refer to page 17 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of
The impact of rising interest rates on the Company’s investment portfolio and cash flow hedges resulted in an accumulated other comprehensive loss of
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 was authorized to repurchase up to
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 December 31, 2024, the Company had total assets of approximately
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.
These non-GAAP financial measures include “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
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) | ||||||||||||||||||||
| As of and for the Three Months Ended | As of and for the Years Ended | |||||||||||||||||||
| (dollars in thousands, except per share data) | December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Earnings Summary | ||||||||||||||||||||
| Net interest income | $ | 56,035 | $ | 54,950 | $ | 58,077 | $ | 221,957 | $ | 236,017 | ||||||||||
| Provision for credit losses | 93,540 | 5,000 | 6,950 | 129,340 | 21,132 | |||||||||||||||
| Noninterest income | 19,561 | 19,339 | 20,513 | 77,743 | 66,590 | |||||||||||||||
| Noninterest expense | 54,183 | 46,733 | 44,488 | 193,262 | 173,902 | |||||||||||||||
| (Loss) income before income taxes | (72,127 | ) | 22,556 | 27,152 | (22,902 | ) | 107,573 | |||||||||||||
| Income tax (benefit) expense | (19,586 | ) | 4,080 | 6,441 | (9,472 | ) | 32,113 | |||||||||||||
| Net (loss) income | (52,541 | ) | 18,476 | 20,711 | (13,430 | ) | 75,460 | |||||||||||||
| Preferred dividends | 2,228 | 2,229 | 2,228 | 8,913 | 8,913 | |||||||||||||||
| Net (loss) income available to common shareholders | $ | (54,769 | ) | $ | 16,247 | $ | 18,483 | $ | (22,343 | ) | $ | 66,547 | ||||||||
| Diluted (loss) earnings per common share | $ | (2.52 | ) | $ | 0.74 | $ | 0.84 | $ | (1.05 | ) | $ | 2.97 | ||||||||
| Weighted average common shares outstanding - diluted | 21,753,711 | 21,678,242 | 21,822,328 | 21,737,958 | 22,124,402 | |||||||||||||||
| (Loss) return on average assets | (2.72 | )% | 0.95 | % | 1.04 | % | (0.17 | )% | 0.95 | % | ||||||||||
| (Loss) return on average shareholders' equity | (25.91 | )% | 9.24 | % | 10.74 | % | (1.69 | )% | 9.80 | % | ||||||||||
| (Loss) return on average tangible common equity(1) | (41.76 | )% | 12.69 | % | 15.41 | % | (4.40 | )% | 13.89 | % | ||||||||||
| Net interest margin | 3.19 | % | 3.10 | % | 3.21 | % | 3.15 | % | 3.26 | % | ||||||||||
| Efficiency ratio(1) | 71.42 | % | 62.76 | % | 55.22 | % | 64.31 | % | 55.91 | % | ||||||||||
| Adjusted Earnings Performance Summary(1) | ||||||||||||||||||||
| Adjusted (loss) earnings available to common shareholders | $ | (54,735 | ) | $ | 16,223 | $ | 19,793 | $ | (22,344 | ) | $ | 76,576 | ||||||||
| Adjusted diluted (loss) earnings per common share | $ | (2.52 | ) | $ | 0.74 | $ | 0.89 | $ | (1.05 | ) | $ | 3.42 | ||||||||
| Adjusted (loss) return on average assets | (2.72 | )% | 0.95 | % | 1.11 | % | (0.17 | )% | 1.08 | % | ||||||||||
| Adjusted (loss) return on average shareholders' equity | (25.89 | )% | 9.23 | % | 11.42 | % | (1.69 | )% | 11.10 | % | ||||||||||
| Adjusted (loss) return on average tangible common equity | (41.74 | )% | 12.67 | % | 16.51 | % | (4.40 | )% | 15.98 | % | ||||||||||
| Adjusted pre-tax, pre-provision earnings | $ | 21,460 | $ | 27,523 | $ | 35,898 | $ | 106,437 | $ | 136,303 | ||||||||||
| Adjusted pre-tax, pre-provision return on average assets | 1.11 | % | 1.42 | % | 1.80 | % | 1.37 | % | 1.72 | % | ||||||||||
| Market Data | ||||||||||||||||||||
| Book value per share at period end | $ | 29.10 | $ | 33.08 | $ | 31.61 | ||||||||||||||
| Tangible book value per share at period end(1) | $ | 21.01 | $ | 24.90 | $ | 23.35 | ||||||||||||||
| Tangible book value per share excluding accumulated other comprehensive income at period end(1) | $ | 24.82 | $ | 27.74 | $ | 26.91 | ||||||||||||||
| Market price at period end | $ | 24.40 | $ | 22.38 | $ | 27.56 | ||||||||||||||
| Common shares outstanding at period end | 21,494,485 | 21,393,905 | 21,551,402 | |||||||||||||||||
| Capital | ||||||||||||||||||||
| Total capital to risk-weighted assets | 13.38 | % | 13.98 | % | 13.20 | % | ||||||||||||||
| Tier 1 capital to risk-weighted assets | 11.11 | % | 11.65 | % | 10.91 | % | ||||||||||||||
| Common equity tier 1capital to risk-weighted assets | 8.37 | % | 9.00 | % | 8.40 | % | ||||||||||||||
| Tier 1 leverage ratio | 9.36 | % | 10.10 | % | 9.71 | % | ||||||||||||||
| Tangible common equity to tangible assets(1) | 6.14 | % | 7.03 | % | 6.55 | % | ||||||||||||||
| Wealth Management | ||||||||||||||||||||
| Trust assets under administration | $ | 4,153,080 | $ | 4,268,539 | $ | 3,733,355 | ||||||||||||||
(1) Non-GAAP financial measures. Refer to pages 15 - 17 for a reconciliation to the comparable GAAP financial measures.
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| (in thousands) | 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 114,766 | $ | 121,873 | $ | 124,646 | $ | 167,316 | $ | 135,061 | ||||||||||
| Investment securities | 1,212,366 | 1,216,795 | 1,099,654 | 1,044,900 | 920,396 | |||||||||||||||
| Loans | 5,167,574 | 5,748,819 | 5,851,994 | 5,958,462 | 6,131,079 | |||||||||||||||
| Allowance for credit losses on loans | (75,414 | ) | (85,804 | ) | (92,183 | ) | (78,057 | ) | (68,502 | ) | ||||||||||
| Total loans, net | 5,092,160 | 5,663,015 | 5,759,811 | 5,880,405 | 6,062,577 | |||||||||||||||
| Loans held for sale | 346,565 | 8,001 | 5,555 | 5,043 | 3,811 | |||||||||||||||
| Premises and equipment, net | 85,710 | 84,672 | 83,040 | 81,831 | 82,814 | |||||||||||||||
| Other real estate owned | 6,413 | 8,646 | 8,304 | 8,920 | 9,112 | |||||||||||||||
| Loan servicing rights, at lower of cost or fair value | 17,842 | 18,400 | 18,902 | 19,577 | 20,253 | |||||||||||||||
| Goodwill | 161,904 | 161,904 | 161,904 | 161,904 | 161,904 | |||||||||||||||
| Other intangible assets, net | 12,100 | 13,052 | 14,003 | 15,019 | 16,108 | |||||||||||||||
| Company-owned life insurance | 211,168 | 209,193 | 207,211 | 205,286 | 203,485 | |||||||||||||||
| Other assets | 268,061 | 245,932 | 274,244 | 241,608 | 251,347 | |||||||||||||||
| Total assets | $ | 7,529,055 | $ | 7,751,483 | $ | 7,757,274 | $ | 7,831,809 | $ | 7,866,868 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 1,055,564 | $ | 1,050,617 | $ | 1,108,521 | $ | 1,212,382 | $ | 1,145,395 | ||||||||||
| Interest-bearing deposits | 5,141,679 | 5,206,219 | 5,009,502 | 5,111,602 | 5,164,134 | |||||||||||||||
| Total deposits | 6,197,243 | 6,256,836 | 6,118,023 | 6,323,984 | 6,309,529 | |||||||||||||||
| Short-term borrowings | 87,499 | 13,849 | 7,208 | 214,446 | 34,865 | |||||||||||||||
| FHLB advances and other borrowings | 258,000 | 425,000 | 600,000 | 255,000 | 476,000 | |||||||||||||||
| Subordinated debt | 77,749 | 82,744 | 91,656 | 93,617 | 93,546 | |||||||||||||||
| Trust preferred debentures | 51,205 | 51,058 | 50,921 | 50,790 | 50,616 | |||||||||||||||
| Other liabilities | 121,246 | 103,737 | 103,694 | 102,966 | 110,459 | |||||||||||||||
| Total liabilities | 6,792,942 | 6,933,224 | 6,971,502 | 7,040,803 | 7,075,015 | |||||||||||||||
| Total shareholders’ equity | 736,113 | 818,259 | 785,772 | 791,006 | 791,853 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,529,055 | $ | 7,751,483 | $ | 7,757,274 | $ | 7,831,809 | $ | 7,866,868 | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| (in thousands, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net interest income: | ||||||||||||||||||||
| Interest income | $ | 101,935 | $ | 104,834 | $ | 104,681 | $ | 411,739 | $ | 404,296 | ||||||||||
| Interest expense | 45,900 | 49,884 | 46,604 | 189,782 | 168,279 | |||||||||||||||
| Net interest income | 56,035 | 54,950 | 58,077 | 221,957 | 236,017 | |||||||||||||||
| Provision for credit losses on loans | 92,270 | 5,000 | 6,950 | 128,270 | 21,132 | |||||||||||||||
| Provision for credit losses on unfunded commitments | 1,270 | — | — | 1,070 | — | |||||||||||||||
| Total provision for credit losses | 93,540 | 5,000 | 6,950 | 129,340 | 21,132 | |||||||||||||||
| Net interest income after provision for credit losses | (37,505 | ) | 49,950 | 51,127 | 92,617 | 214,885 | ||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Wealth management revenue | 7,660 | 7,104 | 6,604 | 28,697 | 25,572 | |||||||||||||||
| Service charges on deposit accounts | 3,506 | 3,411 | 3,246 | 13,154 | 11,990 | |||||||||||||||
| Interchange revenue | 3,528 | 3,506 | 3,585 | 13,955 | 14,302 | |||||||||||||||
| Residential mortgage banking revenue | 637 | 697 | 451 | 2,418 | 1,903 | |||||||||||||||
| Income on company-owned life insurance | 1,975 | 1,982 | 1,753 | 7,683 | 4,439 | |||||||||||||||
| Loss on sales of investment securities, net | (34 | ) | (44 | ) | (2,894 | ) | (230 | ) | (9,372 | ) | ||||||||||
| Other income | 2,289 | 2,683 | 7,768 | 12,066 | 17,756 | |||||||||||||||
| Total noninterest income | 19,561 | 19,339 | 20,513 | 77,743 | 66,590 | |||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 22,283 | 24,382 | 24,031 | 93,639 | 93,438 | |||||||||||||||
| Occupancy and equipment | 4,286 | 4,393 | 3,934 | 16,785 | 15,986 | |||||||||||||||
| Data processing | 7,278 | 6,955 | 6,963 | 28,160 | 26,286 | |||||||||||||||
| Professional services | 1,580 | 1,744 | 2,072 | 7,822 | 7,049 | |||||||||||||||
| Amortization of intangible assets | 952 | 951 | 1,130 | 4,008 | 4,758 | |||||||||||||||
| Impairment on leased assets and surrendered assets | 7,601 | — | — | 7,601 | — | |||||||||||||||
| FDIC insurance | 1,383 | 1,402 | 1,147 | 5,278 | 4,779 | |||||||||||||||
| Other expense | 8,820 | 6,906 | 5,211 | 29,969 | 21,606 | |||||||||||||||
| Total noninterest expense | 54,183 | 46,733 | 44,488 | 193,262 | 173,902 | |||||||||||||||
| (Loss) income before income taxes | (72,127 | ) | 22,556 | 27,152 | (22,902 | ) | 107,573 | |||||||||||||
| Income tax (benefit) expense | (19,586 | ) | 4,080 | 6,441 | (9,472 | ) | 32,113 | |||||||||||||
| Net (loss) income | (52,541 | ) | 18,476 | 20,711 | (13,430 | ) | 75,460 | |||||||||||||
| Preferred stock dividends | 2,228 | 2,229 | 2,228 | 8,913 | 8,913 | |||||||||||||||
| Net (loss) income available to common shareholders | $ | (54,769 | ) | $ | 16,247 | $ | 18,483 | $ | (22,343 | ) | $ | 66,547 | ||||||||
| Basic (loss) earnings per common share | $ | (2.52 | ) | $ | 0.74 | $ | 0.84 | $ | (1.05 | ) | $ | 2.97 | ||||||||
| Diluted (loss) earnings per common share | $ | (2.52 | ) | $ | 0.74 | $ | 0.84 | $ | (1.05 | ) | $ | 2.97 | ||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Adjusted Earnings Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||||||||
| (dollars in thousands, except per share data) | December 31, 2024 | September 30, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| (Loss) income before income tax (benefit) expense - GAAP | $ | (72,127 | ) | $ | 22,556 | $ | 27,152 | $ | (22,902 | ) | $ | 107,573 | ||||||||
| Adjustments to noninterest income: | ||||||||||||||||||||
| Loss on sales of investment securities, net | 34 | 44 | 2,894 | 230 | 9,372 | |||||||||||||||
| (Gain) on sale of Visa B shares | — | — | (1,098 | ) | — | (1,098 | ) | |||||||||||||
| Loss (gain) on repurchase of subordinated debt | 13 | (77 | ) | — | (231 | ) | (676 | ) | ||||||||||||
| Total adjustments to noninterest income | 47 | (33 | ) | 1,796 | (1 | ) | 7,598 | |||||||||||||
| Adjusted (loss) earnings pre tax - non-GAAP | (72,080 | ) | 22,523 | 28,948 | (22,903 | ) | 115,171 | |||||||||||||
| Adjusted (loss) earnings tax (benefit) expense | (19,573 | ) | 4,071 | 6,927 | (9,472 | ) | 29,682 | |||||||||||||
| Adjusted (loss) earnings - non-GAAP | (52,507 | ) | 18,452 | 22,021 | (13,431 | ) | 85,489 | |||||||||||||
| Preferred stock dividends | 2,228 | 2,229 | 2,228 | 8,913 | 8,913 | |||||||||||||||
| Adjusted (loss) earnings available to common shareholders | $ | (54,735 | ) | $ | 16,223 | $ | 19,793 | $ | (22,344 | ) | $ | 76,576 | ||||||||
| Adjusted diluted (loss) earnings per common share | $ | (2.52 | ) | $ | 0.74 | $ | 0.89 | $ | (1.05 | ) | $ | 3.42 | ||||||||
| Adjusted (loss) return on average assets | (2.72 | )% | 0.95 | % | 1.11 | % | (0.17 | )% | 1.08 | % | ||||||||||
| Adjusted (loss) return on average shareholders' equity | (25.89 | )% | 9.23 | % | 11.42 | % | (1.69 | )% | 11.10 | % | ||||||||||
| Adjusted (loss) return on average tangible common equity | (41.74 | )% | 12.67 | % | 16.51 | % | (4.40 | )% | 15.98 | % | ||||||||||
| Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| (dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Adjusted (loss) earnings pre tax - non-GAAP | $ | (72,080 | ) | $ | 22,523 | $ | 28,948 | $ | (22,903 | ) | $ | 115,171 | ||||||||
| Provision for credit losses | 93,540 | 5,000 | 6,950 | 129,340 | 21,132 | |||||||||||||||
| Adjusted pre-tax, pre-provision earnings - non-GAAP | $ | 21,460 | $ | 27,523 | $ | 35,898 | $ | 106,437 | $ | 136,303 | ||||||||||
| Adjusted pre-tax, pre-provision return on average assets | 1.11 | % | 1.42 | % | 1.80 | % | 1.37 | % | 1.72 | % | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| (dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Noninterest expense - GAAP | $ | 54,183 | $ | 46,733 | $ | 44,488 | $ | 193,262 | $ | 173,902 | ||||||||||
| Net interest income - GAAP | $ | 56,035 | $ | 54,950 | $ | 58,077 | $ | 221,957 | $ | 236,017 | ||||||||||
| Effect of tax-exempt income | 221 | 205 | 183 | 810 | 828 | |||||||||||||||
| Adjusted net interest income | 56,256 | 55,155 | 58,260 | 222,767 | 236,845 | |||||||||||||||
| Noninterest income - GAAP | 19,561 | 19,339 | 20,513 | 77,743 | 66,590 | |||||||||||||||
| Loss on sales of investment securities, net | 34 | 44 | 2,894 | 230 | 9,372 | |||||||||||||||
| (Gain) on sale of Visa B shares | — | — | (1,098 | ) | — | (1,098 | ) | |||||||||||||
| Loss (gain) on repurchase of subordinated debt | 13 | (77 | ) | — | (231 | ) | (676 | ) | ||||||||||||
| Adjusted noninterest income | 19,608 | 19,306 | 22,309 | 77,742 | 74,188 | |||||||||||||||
| Adjusted total revenue | $ | 75,864 | $ | 74,461 | $ | 80,569 | $ | 300,509 | $ | 311,033 | ||||||||||
| Efficiency ratio | 71.42 | % | 62.76 | % | 55.22 | % | 64.31 | % | 55.91 | % | ||||||||||
| Return on Average Tangible Common Equity | ||||||||||||||||||||
| For the Three Months Ended | For the Years Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| (dollars in thousands) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Net (loss) income available to common shareholders | $ | (54,769 | ) | $ | 16,247 | $ | 18,483 | $ | (22,343 | ) | $ | 66,547 | ||||||||
| Average total shareholders' equity—GAAP | $ | 806,707 | $ | 795,322 | $ | 764,790 | $ | 793,984 | $ | 770,095 | ||||||||||
| 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 | (12,551 | ) | (13,506 | ) | (16,644 | ) | (14,011 | ) | (18,376 | ) | ||||||||||
| Average tangible common equity | $ | 521,704 | $ | 509,364 | $ | 475,694 | $ | 507,521 | $ | 479,267 | ||||||||||
| (Loss) return on average tangible common equity | (41.76) % | 12.69 | % | 15.41 | % | (4.40) % | 13.89 | % | ||||||||||||
| 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 | ||||||||||||||||||||
| (dollars in thousands, except per share data) | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | |||||||||||||||
| Shareholders' Equity to Tangible Common Equity | ||||||||||||||||||||
| Total shareholders' equity—GAAP | $ | 736,113 | $ | 818,259 | $ | 785,772 | $ | 791,006 | $ | 791,853 | ||||||||||
| 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 | (12,100 | ) | (13,052 | ) | (14,003 | ) | (15,019 | ) | (16,108 | ) | ||||||||||
| Tangible common equity | 451,561 | 532,755 | 499,317 | 503,535 | 503,293 | |||||||||||||||
| Less: Accumulated other comprehensive loss (AOCI) | (81,960 | ) | (60,640 | ) | (82,581 | ) | (81,419 | ) | (76,753 | ) | ||||||||||
| Tangible common equity excluding AOCI | $ | 533,521 | $ | 593,395 | $ | 581,898 | $ | 584,954 | $ | 580,046 | ||||||||||
| Total Assets to Tangible Assets: | ||||||||||||||||||||
| Total assets—GAAP | $ | 7,529,055 | $ | 7,751,483 | $ | 7,757,274 | $ | 7,831,809 | $ | 7,866,868 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Goodwill | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | (161,904 | ) | ||||||||||
| Other intangible assets, net | (12,100 | ) | (13,052 | ) | (14,003 | ) | (15,019 | ) | (16,108 | ) | ||||||||||
| Tangible assets | $ | 7,355,051 | $ | 7,576,527 | $ | 7,581,367 | $ | 7,654,886 | $ | 7,688,856 | ||||||||||
| Common Shares Outstanding | 21,494,485 | 21,393,905 | 21,377,215 | 21,485,231 | 21,551,402 | |||||||||||||||
| Tangible Common Equity to Tangible Assets | 6.14 | % | 7.03 | % | 6.59 | % | 6.58 | % | 6.55 | % | ||||||||||
| Tangible Book Value Per Share | $ | 21.01 | $ | 24.90 | $ | 23.36 | $ | 23.44 | $ | 23.35 | ||||||||||
| Tangible Book Value Per Share, excluding AOCI | $ | 24.82 | $ | 27.74 | $ | 27.22 | $ | 27.23 | $ | 26.91 | ||||||||||
FAQ
What caused MSBI's significant loss in Q4 2024?
How much did MSBI's nonperforming loans increase in Q4 2024?
What was MSBI's net interest margin in Q4 2024?
How much did MSBI's total assets decline in Q4 2024?
