Highlights

  • Net income of $1.8 million, or $0.08 diluted earnings per share, which included $11.9 million, or $0.44 per diluted share, of integration and acquisition expenses

  • Acquisition of Alpine Bancorporation, Inc. completed on February 28, 2018

  • Total assets surpassed $5.7 billion at March 31, 2018

  • Wealth management assets under administration reached $3.1 billion at March 31, 2018

EFFINGHAM, Ill., April 26, 2018 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq:MSBI) (the “Company”) today reported financial results for the first quarter of 2018, which included $11.9 million, or $0.44 per diluted share, of integration and acquisition expenses.  Inclusive of these expenses, the Company reported net income of $1.8 million, or $0.08 diluted earnings per share, for the first quarter of 2018.  This compares to net income of $2.0 million, or $0.10 diluted earnings per share, for the fourth quarter of 2017, and net income of $8.5 million, or $0.52 diluted earnings per share, for the first quarter of 2017.  Financial results for the first quarter of 2018 include one month of operations of Alpine Bank, which was acquired on February 28, 2018. 

“Our first quarter performance was highlighted by the completion of our acquisition of Alpine Bancorporation,” said Leon J. Holschbach, Chief Executive Officer of the Company.  “Alpine significantly strengthens our franchise by providing a talented team of bankers, an attractive deposit base, and another $1 billion in assets for our wealth management business.  Aside from completing the acquisition, we saw a number of positive operating trends during the first quarter including an expansion in our net interest margin, excluding the impact of accretion income, and good expense management.  As we integrate Alpine’s operations and work to achieve the synergies we project for this transaction, we believe we will drive additional efficiencies and positively impact our level of profitability in the future.”

Adjusted Earnings

Financial results for the first quarter of 2018 included $11.9 million in integration and acquisition expenses.  Excluding these expenses, adjusted earnings were $11.3 million, or $0.52 diluted earnings per share, for the first quarter of 2018. 

Financial results for the fourth quarter of 2017 included $4.5 million of additional tax expense related to the revaluation of the Company’s net deferred tax assets, $2.7 million in integration and acquisition expenses, and $0.4 million in loss on mortgage servicing rights (“MSRs”) held-for-sale.  Excluding these expenses, adjusted earnings were $8.4 million, or $0.42 diluted earnings per share, for the fourth quarter of 2017. 

The increase in adjusted earnings per share was primarily attributable to the earnings contribution from Alpine Bank and a decrease in the provision for loan losses.

A reconciliation of adjusted earnings to net income according to accounting principles generally accepted in the United States (“GAAP”) is provided in the financial tables at the end of this press release.

Factors Affecting Comparability

Most recently, Midland acquired Alpine Bancorporation, Inc., Centrue Financial Corporation (“Centrue”) and CedarPoint Investment Advisors (“CedarPoint”) in February 2018, June 2017 and March 2017, respectively. The financial position and results of operations of these entities prior to their acquisition dates are not included in the Company’s financial results for periods prior to their respective acquisition dates.

Net Interest Income

Net interest income for the first quarter of 2018 was $38.2 million, an increase of 6.0% from $36.0 million for the fourth quarter of 2017.  The increase in net interest income was primarily attributable to the one month of net interest income contributed by Alpine Bank.

The Company’s net interest income benefits from accretion income associated with purchased loan portfolios.  Accretion income totaled $2.0 million for the first quarter of 2018, compared with $2.7 million for the fourth quarter of 2017. 

Relative to the first quarter of 2017, net interest income increased $10.7 million, or 39.1%.  Accretion income for the first quarter of 2017 was $2.7 million.  The increase in net interest income resulted from a $14.7 million increase in interest income on interest-earning assets, offset in part by a $3.9 million increase in interest expense. These increases were due to the full quarter impact of Centrue Bank, the one month impact of Alpine Bank, as well as organic growth.

Net Interest Margin

Net interest margin for the first quarter of 2018 was 3.69%, compared to 3.73% for the fourth quarter of 2017.  The Company’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 16 and 26 basis points to net interest margin in the first quarter of 2018 and fourth quarter of 2017, respectively.  Excluding the impact of accretion income, net interest margin was positively impacted by loan yields increasing more than funding costs, combined with an enhanced earning asset mix.

Relative to the first quarter of 2017, the net interest margin decreased from 3.87%.  Accretion income on purchased loan portfolios contributed 35 basis points to net interest margin in the first quarter of 2017.  Excluding the impact of accretion income, the net interest margin was relatively unchanged. 

Noninterest Income

Noninterest income for the first quarter of 2018 was $16.6 million, an increase of 18.6% from $14.0 million for the fourth quarter of 2017.  The increase was primarily attributable to one month of noninterest income contributed by Alpine Bank.

Wealth management revenue for the first quarter of 2018 was $4.2 million, an increase of 16.6% from $3.6 million in the fourth quarter of 2017.  The increase was primarily attributable to the one month contribution of Alpine Bank’s wealth management business, which added $1.1 billion in assets under administration.  Compared to the first quarter of 2017, wealth management revenue increased 45.6%, which was attributable to 10% organic growth in assets under administration, the acquisition of CedarPoint in March 2017, and the addition of Alpine Bank’s wealth management business at the end of February 2018.

Commercial FHA revenue for the first quarter of 2018 was $3.3 million, an increase of 6.5% from $3.1 million in the fourth quarter of 2017.  The Company originated $80.4 million in rate lock commitments during the first quarter of 2018, compared to $98.5 million in the prior quarter.  Compared to the first quarter of 2017, commercial FHA revenue decreased 50.3%.

Residential mortgage banking revenue for the first quarter of 2018 was $1.4 million, a decrease of 8.9% from $1.6 million in the fourth quarter of 2017.  Compared to the first quarter of 2017, residential mortgage banking revenue decreased 51.4%, primarily due to a smaller loan production team.

Relative to the first quarter of 2017, noninterest income increased 1.6% from $16.3 million.  The increase was primarily due to greater wealth management and core banking fees, partially offset by lower commercial FHA and residential mortgage banking revenue.

Noninterest Expense

Noninterest expense for the first quarter of 2018 was $49.6 million, compared with $36.2 million for the fourth quarter of 2018.  Noninterest expense for the first quarter of 2018 included $11.9 million of integration and acquisition expenses, while noninterest expense for the fourth quarter of 2017 included $2.7 million in integration and acquisition expenses and $0.4 million in losses on MSRs held-for-sale.  Excluding these expenses, noninterest expense increased $4.7 million, or 14.1%, from the prior quarter.  The increase was primarily due to one month of expenses associated with the addition of Alpine Bank’s operations, combined with increased expenses from the expansion of the equipment financing business, as well as increased payroll taxes.

Relative to the first quarter of 2017, noninterest expense, excluding integration and acquisition expenses, increased 27.7% from $29.5 million.  The increase was primarily due to the addition of personnel and facilities from the three acquisitions completed over the past year. 

Income Tax Expense

Income tax expense was $1.4 million for the first quarter of 2018, compared to $5.8 million for the fourth quarter of 2017, which included $4.5 million of additional tax expense related to the revaluation of the Company’s net deferred tax assets. 

Income tax expense for the first quarter of 2018 reflects the impact of the reduction in the federal corporate tax rate from 35% to 21% pursuant to the Tax Cuts and Jobs Act that was signed into law in December 2017; however, the Company recorded $0.7 million of additional state tax expense related to the revaluation of the Company’s state deferred tax assets and liabilities as a result of the Alpine acquisition.

Loan Portfolio

Total loans outstanding were $4.03 billion at March 31, 2018, compared with $3.23 billion at December 31, 2017 and $2.45 billion at March 31, 2017.  The increase in total loans from December 31, 2017 was primarily attributable to the addition of Alpine’s loan portfolio.  The increase in total loans from March 31, 2017 was due to 4.2% organic growth and the addition of the Alpine and Centrue loan portfolios. 

Deposits

Total deposits were $4.23 billion at March 31, 2018, compared with $3.13 billion at December 31, 2017, and $2.53 billion at March 31, 2017.  The increase in total deposits from December 31, 2017 was primarily attributable to the addition of Alpine’s deposits. The increase in total deposits from March 31, 2017 was primarily attributable to the addition of Alpine’s and Centrue’s deposits.

Asset Quality

Non-performing loans totaled $26.5 million, or 0.66% of total loans, at March 31, 2018, compared with $26.8 million, or 0.83% of total loans, at December 31, 2017, and $28.9 million, or 1.18% of total loans, at March 31, 2017.  The decrease in non-performing loans as a percentage of total loans at March 31, 2018 compared to the end of the prior quarter was due to the addition of the Alpine loan portfolio.

Net charge-offs for the first quarter of 2018 were $0.7 million, or 0.09% of average loans on an annualized basis. 

The Company recorded a provision for loan losses of $2.0 million for the first quarter of 2018.  The Company’s allowance for loan losses was 0.44% of total loans and 66.8% of non-performing loans at March 31, 2018, compared with 0.51% of total loans and 61.4% of non-performing loans at December 31, 2017.  Fair market value discounts recorded in connection with acquired loan portfolios represented 0.65% of total loans at March 31, 2018, compared with 0.51% of total loans at December 31, 2017.

Capital

At March 31, 2018, the Company exceeded all regulatory capital requirements under Basel III and was considered to be a ‘‘well-capitalized’’ financial institution, as summarized in the following table:

 March 31, 2018Well Capitalized
Regulatory Requirements
Total capital to risk-weighted assets12.37%10.00%
Tier 1 capital to risk-weighted assets9.84%8.00%
Tier 1 leverage ratio9.55%5.00%
Common equity Tier 1 capital8.30%6.50%
Tangible common equity to tangible assets6.89%NA

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 7:30 a.m. Central Time on Friday, April 27, 2018 to discuss its financial results.  The call can be accessed via telephone at (877) 516-3531 (passcode: 1096996).  A recorded replay can be accessed through May 4, 2018 by dialing (855) 859-2056; passcode: 1096996.

A slide presentation relating to the first quarter 2018 results will be accessible prior to the scheduled conference call.  The slide presentation and webcast of the conference call can be accessed on the Webcasts and Presentations page of the Company’s investor relations website.

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 and Alpine Bank.  As of March 31, 2018, the Company had total assets of approximately $5.7 billion and its Wealth Management Group had assets under administration of approximately $3.1 billion.  Midland provides a full range of commercial and consumer banking products and services, business equipment financing, merchant credit card services, trust and investment management, and insurance and financial planning services. In addition, multi-family and healthcare facility FHA financing is provided through Love Funding, Midland’s non-bank subsidiary. For additional information, visit www.midlandsb.com or follow Midland on LinkedIn at https://www.linkedin.com/company/midland-states-bank.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.   These non-GAAP financial measures include “Adjusted Earnings,” “Adjusted Diluted Earnings Per Share,” “Adjusted Return on Average Assets,” “Adjusted Return on Average Shareholders’ Equity,”  “Adjusted Return on Average Tangible Common Equity,” “Efficiency Ratio,” “Tangible Common Equity to Tangible Assets,” “Tangible Book Value Per Share” 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 this presentation 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," 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, including changes in the financial markets; changes in business plans as circumstances warrant; 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" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and we do 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, at jludwig@midlandsb.com or (217) 342-7321
Stephen A. Erickson, Chief Financial Officer, at serickson@midlandsb.com or (217) 540-1712
Douglas J. Tucker, Sr. V.P., Corporate Counsel, at dtucker@midlandsb.com or (217) 342-7321


 

                       
MIDLAND STATES BANCORP, INC.   
CONSOLIDATED FINANCIAL SUMMARY (unaudited)   
                       
  For the Quarter Ended   
  March 31,  December 31,  September 30,  June 30,  March 31, 
(dollars in thousands, except per share data) 2018  2017  2017  2017  2017
Earnings Summary                      
Net interest income $  38,185  $  36,036  $  36,765  $  29,400  $  27,461   
Provision for loan losses    2,006     6,076     1,489     458     1,533   
Noninterest income    16,605     13,998     15,403     13,619     16,342   
Noninterest expense    49,602     36,192     48,363     37,645     30,797   
Income before income taxes    3,182     7,766     2,316     4,916     11,473   
Income taxes    1,376     5,775     280     1,377     2,983   
Net income  $  1,806  $  1,991  $  2,036  $  3,539   $   8,490   
                       
Diluted earnings per common share $0.08  $0.10  $0.10  $0.20  $0.52   
Weighted average shares outstanding - diluted  21,351,511   19,741,833   19,704,217   17,320,089   16,351,637   
Return on average assets  0.15%  0.18%  0.18%  0.39%  1.05%  
Return on average shareholders' equity  1.47%  1.74%  1.78%  3.93%  10.58%  
Return on average tangible common shareholders' equity  2.09%  2.35%  2.41%  4.92%  12.78%  
Net interest margin  3.69%  3.73%  3.78%  3.70%  3.87%  
Efficiency ratio (1)  68.45%  64.64%  69.00%  66.54%  66.34%  
                       
Adjusted Earnings Performance Summary                      
Adjusted earnings (1) $11,301  $8,403  $9,173  $8,076  $9,243   
Adjusted diluted earnings per common share (1) $0.52  $0.42  $0.46  $0.46  $0.56   
Adjusted return on average assets (1)  0.96%  0.76%  0.82%  0.89%  1.14%  
Adjusted return on average shareholders' equity (1)  9.19%  7.34%  8.03%  8.97%  11.52%  
Adjusted return on average tangible common shareholders' equity (1)  13.10%  9.92%  10.87%  11.23%  13.91%  
                       
(1) Non-GAAP financial measures. Refer to pages 12 - 14 for a reconciliation to the comparable GAAP financial measures.                
                 

 

                     
MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
  
  For the Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(in thousands, except per share data) 2018  2017  2017  2017  2017
Net interest income:                    
Total interest income $  46,505  $43,500  $43,246  $34,528  $31,839 
Total interest expense    8,320   7,464   6,481   5,128   4,378 
Net interest income    38,185   36,036   36,765   29,400   27,461 
Provision for loan losses    2,006   6,076   1,489   458   1,533 
Net interest income after provision for loan losses    36,179   29,960   35,276   28,942   25,928 
Noninterest income:                    
Commercial FHA revenue    3,330   3,127   3,777   4,153   6,695 
Residential mortgage banking revenue    1,418   1,556   2,317   2,330   2,916 
Wealth management revenue    4,182   3,587   3,475   3,406   2,872 
Service charges on deposit accounts    1,967   1,828   2,133   1,122   892 
Interchange revenue    2,090   1,538   1,724   1,114   977 
Gain on sales of investment securities, net    65   2   98   55   67 
Other income    3,553   2,360   1,879   1,439   1,923 
Total noninterest income    16,605   13,998   15,403   13,619   16,342 
Noninterest expense:                    
Salaries and employee benefits    28,395   17,344   22,411   21,842   17,115 
Occupancy and equipment    4,252   3,859   4,144   3,472   3,184 
Data processing    4,288   3,640   5,786   2,949   2,796 
Professional    4,499   3,611   4,151   3,142   2,992 
Amortization of intangible assets    1,675   1,035   1,187   579   525 
Loss on mortgage servicing rights held for sale    -   442   3,617     -     - 
Other    6,493   6,261   7,067   5,661   4,185 
Total noninterest expense    49,602   36,192   48,363   37,645   30,797 
Income before income taxes    3,182   7,766   2,316   4,916   11,473 
Income taxes    1,376   5,775   280   1,377   2,983 
Net income $  1,806  $1,991  $2,036  $3,539  $8,490 
                     
Basic earnings per common share $0.08  $0.10  $0.10  $0.21  $0.54 
Diluted earnings per common share $0.08  $0.10  $0.10  $0.20  $0.52 
                     

 

                     
MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                     
  At Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(in thousands) 2018  2017  2017  2017  2017
Assets                    
Cash and cash equivalents $331,183   $215,202   $183,572   $334,356   $218,096  
Investment securities   738,172    450,525    467,852    460,711    335,608  
Loans  4,029,150    3,226,678    3,157,972    3,184,063    2,454,950  
Allowance for loan losses  (17,704)   (16,431)   (16,861)   (15,424)   (15,805) 
Total loans, net  4,011,446    3,210,247    3,141,111    3,168,639    2,439,145  
Loans held for sale at fair value  25,267    50,089    35,874    41,689    39,900  
Premises and equipment, net  95,332    76,162    80,941    76,598    66,914  
Other real estate owned  5,059    5,708    6,379    7,036    3,680  
Mortgage servicing rights at lower of cost or market  56,427    56,352    56,299    70,277    68,557  
Mortgage servicing rights held for sale  3,962    10,176    10,618      -      -  
Intangible assets  46,473    16,932    17,966    18,459    8,633  
Goodwill  155,674    98,624    97,351    96,940    50,807  
Cash surrender value of life insurance policies  136,766    113,366    112,591    111,802    74,806  
Other assets  117,611    109,318    137,207    105,135    67,431  
Total assets $5,723,372   $4,412,701   $4,347,761   $4,491,642   $3,373,577  
                     
Liabilities and Shareholders' Equity                    
Noninterest bearing deposits $1,037,710   $724,443   $674,118   $780,803   $528,021  
Interest bearing deposits  3,196,105    2,406,646    2,440,349    2,552,228    1,999,455  
Total deposits  4,233,815    3,131,089    3,114,467    3,333,031    2,527,476  
Short-term borrowings  130,693    156,126    153,443    170,629    124,035  
FHLB advances and other borrowings  587,493    496,436    488,870    400,304    250,353  
Subordinated debt  94,013    93,972    54,581    54,556    54,532  
Trust preferred debentures  47,443    47,330    47,218    47,107    39,137  
Other liabilities  44,530    38,203    38,493    34,063    43,711  
Total liabilities  5,137,987    3,963,156    3,897,072    4,039,690    3,039,244  
Total shareholders’ equity  585,385    449,545    450,689    451,952    334,333  
Total liabilities and shareholders’ equity $5,723,372   $4,412,701   $4,347,761   $4,491,642   $3,373,577  
                     

 

                     
MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                     
  At Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(in thousands) 2018  2017  2017  2017  2017
Loan Portfolio                    
Commercial loans $802,752  $555,930  $513,544  $571,111  $475,408 
Commercial real estate loans  1,773,510   1,440,011   1,472,284   1,470,487   997,200 
Construction and land development loans  234,837   200,587   182,513   176,098   171,047 
Residential real estate loans  570,321   453,552   445,747   428,464   277,402 
Consumer loans  424,229   371,455   343,038   335,902   337,081 
Lease financing loans  223,501   205,143   200,846   202,001   196,812 
Total loans $4,029,150  $3,226,678  $3,157,972  $3,184,063  $2,454,950 
                     
Deposit Portfolio                    
Noninterest-bearing demand deposits $1,037,710  $724,443  $674,118  $780,803  $528,021 
NOW accounts  993,253   785,935   800,649   841,640   751,193 
Money market accounts  840,415   646,426   633,844   578,077   415,322 
Savings accounts  466,887   281,212   278,977   291,912   169,715 
Time deposits  672,034   502,810   493,777   525,647   394,508 
Brokered deposits  223,516   190,263   233,102   314,952   268,717 
Total deposits $4,233,815  $3,131,089  $3,114,467  $3,333,031  $2,527,476 
                     

 

                     
MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                     
  For the Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(dollars in thousands) 2018  2017  2017  2017  2017
Average Balance Sheets                    
Cash and cash equivalents $138,275  $173,540  $202,407  $192,483  $163,595 
Investment securities  548,168   461,475   474,216   362,268   328,880 
Loans  3,477,917   3,198,036   3,173,027   2,620,875   2,361,380 
Loans held for sale  40,841   40,615   46,441   61,759   73,914 
Nonmarketable equity securities  34,890   33,703   31,224   22,246   20,047 
Total interest-earning assets  4,240,091   3,907,369   3,927,315   3,259,631   2,947,816 
Non-earning assets  536,750   497,502   498,364   372,525   336,761 
Total assets $4,776,841  $4,404,871  $4,425,679  $3,632,156  $3,284,577 
Interest-bearing deposits $2,675,339  $2,433,461  $2,527,490  $2,116,564  $1,896,569 
Short-term borrowings  148,703   181,480   182,015   146,144   143,583 
FHLB advances and other borrowings  489,567   472,709   434,860   290,401   248,045 
Subordinated debt  93,993   88,832   54,570   54,542   54,518 
Trust preferred debentures  47,373   47,263   47,152   40,820   39,084 
Total interest-bearing liabilities  3,454,975   3,223,745   3,246,087   2,648,471   2,381,799 
Non-interest-bearing deposits  782,164   684,907   688,986   579,977   525,868 
Other non-interest-bearing liabilities  40,761   42,251   37,289   42,373   51,468 
Shareholders' equity  498,941   453,968   453,317   361,335   325,442 
Total liabilities and shareholders' equity $4,776,841  $4,404,871  $4,425,679  $3,632,156  $3,284,577 
                     
Yields                    
Cash and cash equivalents  1.53%  1.28%  1.19%  1.02%  0.77%
Investment securities  2.87%  3.01%  2.86%  3.33%  3.21%
Loans  4.85%  4.88%  4.90%  4.71%  4.91%
Loans held for sale  4.25%  3.62%  3.74%  4.67%  4.22%
Nonmarketable equity securities  4.64%  4.78%  4.20%  4.31%  4.41%
Total interest-earning assets  4.49%  4.48%  4.44%  4.33%  4.47%
Interest-bearing deposits  0.62%  0.58%  0.53%  0.53%  0.51%
Short-term borrowings  0.34%  0.26%  0.22%  0.23%  0.23%
FHLB advances and other borrowings  1.55%  1.42%  1.36%  1.16%  0.93%
Subordinated debt  6.44%  6.46%  6.40%  6.40%  6.40%
Trust preferred debentures  5.94%  5.51%  5.37%  5.15%  4.91%
Total interest-bearing liabilities  0.98%  0.92%  0.79%  0.78%  0.75%
Net interest margin  3.69%  3.73%  3.78%  3.70%  3.87%
                     

 

                     
MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                     
  As of and for the Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(dollars in thousands, except per share data) 2018  2017  2017  2017  2017
Asset Quality                    
Loans 30-89 days past due $20,138  $15,405  $13,526  $13,566  $14,075 
Nonperforming loans  26,499   26,760   33,431   27,615   28,933 
Nonperforming assets  29,938   30,894   38,109   33,150   31,684 
Net charge-offs  732   6,506   52   839   590 
Loans 30-89 days past due to total loans  0.50%  0.48%  0.43%  0.43%  0.57%
Nonperforming loans to total loans  0.66%  0.83%  1.06%  0.87%  1.18%
Nonperforming assets to total assets  0.52%  0.70%  0.88%  0.74%  0.94%
Allowance for loan losses to total loans  0.44%  0.51%  0.53%  0.48%  0.64%
Allowance for loan losses to nonperforming loans  66.81%  61.40%  50.43%  55.81%  54.62%
Net charge-offs to average loans  0.09%  0.81%  0.01%  0.13%  0.10%
                     
Wealth Management                    
Trust assets under administration $3,125,051  $2,051,249  $2,001,106  $1,929,513  $1,869,314 
                     
Market Data                    
Book value per share at period end $24.67  $23.35  $23.45  $23.51  $21.19 
Tangible book value per share at period end (1) $16.11  $17.31  $17.41  $17.47  $17.42 
Market price at period end $31.56  $32.48  $31.68  $33.52  $34.39 
Shares outstanding at period end  23,612,430   19,122,049   19,093,153   19,087,409   15,780,651 
                     
Capital                    
Total capital to risk-weighted assets  12.37%  13.26%  12.21%  11.98%  13.48%
Tier 1 capital to risk-weighted assets  9.84%  10.19%  10.20%  10.05%  10.97%
Tier 1 leverage ratio  9.55%  8.63%  8.54%  10.45%  9.61%
Tier 1 common capital to risk-weighted assets  8.30%  8.45%  8.50%  8.36%  9.10%
Tangible common equity to tangible assets (1)  6.89%  7.70%  7.85%  7.62%  8.29%
                     
(1) Non-GAAP financial measures. Refer to pages 12 - 14 for a reconciliation to the comparable GAAP financial measures.            
                     

 

 
MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
                     
Adjusted Earnings Reconciliation                     
                     
  For the Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(dollars in thousands, except per share data) 2018  2017  2017  2017  2017
Income before income taxes - GAAP $  3,182  $  7,766   $  2,316  $  4,916   $  11,473  
Adjustments to noninterest income:                    
Gain on sales of investment securities, net   65     2      98     55      67  
Gain (loss) on sale of other assets    150     37      45     (91)     (58) 
 Total adjustments to noninterest income    215     39      143     (36)     9  
Adjustments to noninterest expense:                    
Loss on mortgage servicing rights held for sale    -     442      3,617     -      -  
Integration and acquisition expenses    11,884     2,686      8,303     7,450      1,251  
 Total adjustments to noninterest expense    11,884     3,128      11,920     7,450      1,251  
Adjusted earnings pre tax   14,851     10,855      14,093     12,402      12,715  
Adjusted earnings tax     3,550     6,992      4,920     4,326      3,472  
Revaluation of net deferred tax assets    -     (4,540)     -     -      -   
Adjusted earnings - non-GAAP $  11,301  $  8,403   $  9,173  $  8,076   $  9,243  
Adjusted diluted earnings per common share $  0.52  $  0.42   $  0.46  $  0.46   $  0.56  
Adjusted return on average assets    0.96%    0.76 %    0.82%    0.89 %    1.14 %
Adjusted return on average shareholders' equity    9.19%    7.34 %    8.03%    8.97 %    11.52 %
Adjusted return on average tangible common shareholders' equity    13.10%    9.92 %    10.87%    11.23 %    13.91 %
                     

 

 
MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
                     
                     
Efficiency Ratio Reconciliation                    
  For the Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(dollars in thousands) 2018  2017  2017  2017  2017
Noninterest expense - GAAP $  49,602   $  36,192   $  48,364   $  37,644   $  30,798  
Loss on mortgage servicing rights held for sale    -      (442)     (3,617)     -      -  
Integration and acquisition expenses    (11,884)     (2,686)     (8,303)     (7,450)     (1,251) 
Adjusted noninterest expense $  37,718   $  33,064   $  36,444   $  30,194   $  29,547  
                     
Net interest income - GAAP $  38,185   $  36,036   $  36,765   $  29,400   $  27,461  
Effect of tax-exempt income    394      659      687      674      671  
Adjusted net interest income    38,579      36,695      37,452      30,074      28,132  
                     
Noninterest income - GAAP $  16,605   $  13,998   $  15,403   $  13,619   $  16,342  
Mortgage servicing rights impairment     133      494      104      1,650      76  
Gain on sales of investment securities, net   (65)     (2)     (98)     (55)     (67) 
(Gain) loss on sale of other assets    (150)     (37)     (45)     91      58  
Adjusted noninterest income    16,523      14,453      15,364      15,305      16,409  
                     
Adjusted total revenue $  55,102   $  51,148   $  52,816   $  45,379   $  44,541  
                     
Efficiency ratio    68.45 %    64.64 %    69.00 %    66.54 %    66.34 %
                     

 

                     
MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
                     
Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share             
                     
  As of and for the Quarter Ended 
  March 31,  December 31,  September 30,  June 30,  March 31, 
(dollars in thousands, except per share data) 2018  2017  2017  2017  2017
Shareholders' Equity to Tangible Common Equity                    
Total shareholders' equity—GAAP $  585,385   $  449,545   $  450,689   $  451,952   $  334,333  
Adjustments:                    
Preferred Stock    (2,923)     (2,970)     (3,015)     (3,134)     -   
Goodwill    (155,674)     (98,624)     (97,351)     (96,940)     (50,807) 
Other intangibles    (46,473)     (16,932)     (17,966)     (18,459)     (8,633) 
Tangible common equity $  380,315   $  331,019   $  332,357   $  333,419   $  274,893  
                     
Total Assets to Tangible Assets:                    
Total assets—GAAP $  5,723,372   $  4,412,701   $  4,347,761   $  4,491,642   $  3,373,577  
Adjustments:                    
Goodwill    (155,674)     (98,624)     (97,351)     (96,940)     (50,807) 
Other intangibles    (46,473)     (16,932)     (17,966)     (18,459)     (8,633) 
Tangible assets $  5,521,225   $  4,297,145   $  4,232,444   $  4,376,243   $  3,314,137  
                     
Common Shares Outstanding    23,612,430      19,122,049      19,093,153      19,087,409      15,780,651  
                     
Tangible Common Equity to Tangible Assets    6.89 %    7.70 %    7.85 %    7.62 %    8.29 %
Tangible Book Value Per Share $  16.11   $  17.31   $  17.41   $  17.47   $  17.42  
                     
Return on Average Tangible Common Equity (ROATCE)                 
                     
 As of
  March 31,  December 31,  September 30,  June 30,  March 31, 
(dollars in thousands) 2018  2017  2017  2017  2017
                     
Net Income $  1,806   $  1,991   $  2,036   $  3,539   $  8,490  
                     
Average total shareholders' equity—GAAP $  498,941   $  453,968   $  453,317   $  361,335   $  325,442  
Adjustments:                    
Preferred Stock     (2,952)     (2,997)     (3,126)     (654)     -   
Goodwill    (118,996)     (97,406)     (97,129)     (61,424)     (48,836) 
Other intangibles    (27,156)     (17,495)     (18,153)     (10,812)     (7,144) 
Average tangible common equity $  349,837   $  336,070   $  334,909   $  288,445   $  269,462  
ROATCE    2.09 %    2.35 %    2.41 %    4.92 %    12.78 %