Summary
- Net income of $8.3 million, or $0.36 diluted earnings per share
- Adjusted earnings of $12.5 million, or $0.54 diluted earnings per share, primarily reflecting the exclusion of $4.9 million of charges related to the prepayment of FHLB advances
- Total loans increased $161.9 million, or 3.3%, from September 30, 2020
- Total deposits increased $72.3 million, or 1.4%, from September 30, 2020
- Nonperforming loans declined 19.8% from September 30, 2020
- Allowance for credit losses increased to 1.18% of total loans
EFFINGHAM, Ill., Jan. 28, 2021 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income of $8.3 million, or $0.36 diluted earnings per share, for the fourth quarter of 2020, which included $4.9 million of charges related to the prepayment of FHLB advances, a $0.6 million loss on mortgage servicing rights (“MSRs”) held-for-sale, and $0.2 million in integration and acquisition expenses. This compares to net income of $86 thousand, or $0.00 diluted earnings per share, for the third quarter of 2020, which included $13.9 million of charges primarily related to the Company’s branch and facilities optimization plan, and net income of $12.8 million, or $0.51 diluted earnings per share, for the fourth quarter of 2019, which included $3.3 million in integration and acquisition expenses and a $1.8 million loss on the repurchase of subordinated debt.
Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We delivered another strong quarter driven by significant growth in net interest income resulting from continued loan growth and a higher net interest margin. We saw good demand for commercial real estate loans, equipment financing, and warehouse lines to commercial FHA lenders, which drove a 13% annualized increase in our total loan balances. The strong loan growth enabled us to redeploy some of our excess liquidity into higher yielding earning assets. Combined with the continued reduction in our cost of deposits, the favorable shift in earning assets resulted in an increase in our net interest margin.
“Although economic conditions remain challenging, we saw notable improvement in our asset quality during the fourth quarter. Our nonperforming loans declined by nearly 20% as we successfully resolved a number of longer-term problem loans, while more borrowers who received loan deferrals related to COVID-19 were able to resume making full or partial scheduled payments. While we are encouraged by the improvement in asset quality, we further increased our level of reserves to reflect the continued uncertainty around the timing of a stronger economic recovery.
“Despite the challenges of the pandemic, we believe we had an incredibly productive year in making progress on our strategies to better position the Company for profitable growth in the future. We eliminated expenses through our branch consolidations and sale of the commercial FHA origination platform, restructured our FHLB advances to reduce interest expense, and continued building a robust digital platform that will enhance efficiencies and improve our loan production and deposit gathering capabilities. As we begin 2021, we believe we are in a much stronger position to realize more operating leverage, continue to grow our balance sheet, and deliver higher earnings and improved returns for our shareholders in the future,” said Mr. Ludwig.
Factors Affecting Comparability
Effective January 1, 2020, the Company adopted the new current expected credit loss (“CECL”) accounting standard, which replaced the incurred loss methodology with an estimated life of loan credit loss methodology.
Adjusted Earnings and Prepayments of FHLB Advances
Financial results for the fourth quarter of 2020 were impacted by $4.9 million of charges related to the prepayment of FHLB advances, a $0.6 million loss on residential MSRs held-for sale, and $0.2 million in integration and acquisition expenses. Excluding these amounts and certain income, adjusted earnings were $12.5 million, or $0.54 diluted earnings per share, for the fourth quarter of 2020.
During the fourth quarter of 2020, the Company prepaid $114.2 million of longer-term FHLB advances with a weighted average interest rate of 2.10%. The prepayment of the FHLB advances is expected to reduce the Company’s interest expense by $2.3 million in 2021 and positively impact its net interest margin by 2-3 basis points.
Financial results for the third quarter of 2020 were impacted by $13.9 million in charges primarily related to the branch and facilities optimization plan (integration and acquisition expenses), $1.7 million in gains on sales of investment securities, and a $0.2 million loss on residential MSRs held-for-sale. Excluding these amounts and certain income, adjusted earnings were $12.0 million, or $0.52 diluted earnings per share, for the third quarter of 2020.
Financial results for the fourth quarter of 2019 included $3.3 million in integration and acquisition expenses, a $1.8 million loss on the repurchase of subordinated debt, and a $0.6 million gain on the sale of investment securities. Excluding these amounts and certain other income and expenses, adjusted earnings were $16.1 million, or $0.64 diluted earnings per share, for the fourth quarter of 2019.
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.
Net Interest Margin
Net interest margin for the fourth quarter of 2020 was 3.47%, compared to 3.33% for the third quarter of 2020. The Company’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 10 and 14 basis points to net interest margin in the fourth quarter of 2020 and third quarter of 2020, respectively. Excluding the impact of accretion income, net interest margin increased 18 basis points from the third quarter of 2020, primarily due to the accelerated recognition of Paycheck Protection Program (“PPP”) loan income upon forgiveness, a shift in cash balances to higher yielding earnings assets, a reduction in the average cost of deposits, and a decrease in the average rate of FHLB borrowings following the prepayment of longer-term advances.
Relative to the fourth quarter of 2019, net interest margin decreased from 3.56%. Accretion income on purchased loan portfolios contributed 23 basis points to net interest margin in the fourth quarter of 2019. Excluding the impact of accretion income, net interest margin increased 4 basis points compared to the fourth quarter of 2019, primarily due to the accelerated recognition of PPP loan income upon forgiveness and a reduction in the average cost of deposits.
Net Interest Income
Net interest income for the fourth quarter of 2020 was $53.5 million, an increase of 7.1% from $50.0 million for the third quarter of 2020. Excluding accretion income, net interest income increased $4.1 million from the prior quarter. Accretion income associated with purchased loan portfolios totaled $1.6 million for the fourth quarter of 2020, compared with $2.1 million for the third quarter of 2020. PPP loan income totaled $3.7 million in the fourth quarter of 2020, compared to $1.9 million in the third quarter of 2020.
Relative to the fourth quarter of 2019, net interest income increased $4.8 million, or 9.9%. Accretion income for the fourth quarter of 2019 was $3.6 million. Excluding the impact of accretion income, net interest income increased primarily due to organic loan growth and a significant decline in the cost of funds.
Noninterest Income
Noninterest income for the fourth quarter of 2020 was $14.3 million, a decrease of 24.2% from $18.9 million for the third quarter of 2020. Impairment on commercial MSRs impacted noninterest income by $2.3 million and $1.4 million in the fourth quarter of 2020 and third quarter of 2020, respectively. Noninterest income for the third quarter of 2020 also included a $1.7 million gain on sale of investment securities, with no similar income being recorded in the fourth quarter of 2020. Excluding the impairment and the gain on sale of investment securities, noninterest income decreased 10.4% due to lower levels of residential mortgage banking revenue and other income, as well as lower commercial FHA revenue following the sale of the FHA origination platform during the third quarter of 2020.
Relative to the fourth quarter of 2019, noninterest income decreased 24.6% from $19.0 million. The decrease was primarily attributable to lower commercial FHA revenue following the sale of the FHA origination platform during the third quarter of 2020 and lower other income, partially offset by higher residential mortgage banking revenue.
Wealth management revenue for the fourth quarter of 2020 was $5.9 million, an increase of 5.6% from the third quarter of 2020. Compared to the fourth quarter of 2019, wealth management revenue increased 9.1%.
Noninterest Expense
Noninterest expense for the fourth quarter of 2020 was $47.0 million, which included $4.9 million of charges related to the prepayment of FHLB advances, a $0.6 million loss on residential MSRs held-for sale, and $0.2 million in integration and acquisition expenses, compared with $53.9 million in the third quarter of 2020, which included $13.9 million in charges primarily related to the branch and facilities optimization plan (integration and acquisition expenses), and a $0.2 million loss on residential MSRs held-for-sale. Excluding the FHLB prepayment charges, losses on MSRs held-for sale, and integration and acquisition expenses, noninterest expense increased primarily due to an accrual for a one-time rollover of vacation time in light of the COVID-19 pandemic, higher incentive compensation, and an increase in charitable contributions.
Relative to the fourth quarter of 2019, noninterest expense increased 1.6% from $46.3 million, which included $3.3 million in integration and acquisition expenses, a $1.8 million loss on the repurchase of subordinated debt, and a $0.1 million loss on MSR held for sale. Excluding the FHLB prepayment charges, losses on MSRs held-for sale, integration and acquisition expenses, and the loss on the repurchase of subordinated debt, noninterest expense was essentially unchanged from the fourth quarter of 2019.
Loan Portfolio
Total loans outstanding were $5.10 billion at December 31, 2020, compared with $4.94 billion at September 30, 2020 and $4.40 billion at December 31, 2019. The increase in total loans from September 30, 2020 was primarily attributable to an increase in equipment finance loans and leases, commercial FHA warehouse lines of credit, and commercial real estate loans.
Equipment finance balances increased $46.0 million from September 30, 2020 to $861.5 million, which are booked within the commercial loans and leases portfolio, reflecting management’s efforts to grow the equipment finance business.
The increase in total loans from December 31, 2019 was primarily attributable to the growth in equipment finance balances, consumer loans, and PPP loans.
Deposits
Total deposits were $5.10 billion at December 31, 2020, compared with $5.03 billion at September 30, 2020, and $4.54 billion at December 31, 2019. The increase in total deposits from the end of the prior quarter was primarily attributable to an increase in retail and commercial FHA servicing deposits, offset by declines in commercial customer and money market accounts.
Asset Quality
Nonperforming loans totaled $54.1 million, or 1.06% of total loans, at December 31, 2020, compared with $67.4 million, or 1.36% of total loans, at September 30, 2020. The decrease in nonperforming loans was primarily attributable to the resolution of long-term problem loans, loans transferred to other real estate owned, and a reduction in the inflow of new loans to nonperforming status. At December 31, 2019, nonperforming loans totaled $42.1 million, or 0.96% of total loans.
Net charge-offs for the fourth quarter of 2020 were $2.3 million, or 0.19% of average loans on an annualized basis.
The Company recorded a provision for credit losses on loans of $10.0 million for the fourth quarter of 2020, which was primarily driven by loan growth and additional reserves allocated to the equipment finance and commercial real estate portfolios.
The Company’s allowance for credit losses on loans was 1.18% of total loans and 111.8% of nonperforming loans at December 31, 2020, compared with 1.07% of total loans and 78.3% of nonperforming loans at September 30, 2020. Approximately 95.5% of the allowance for credit losses on loans at December 31, 2020 was allocated to general reserves.
Capital
At December 31, 2020, 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:
| Bank Level Ratios as of December 31, 2020 | Consolidated Ratios as of December 31, 2020 | Minimum Regulatory Requirements (2) | |
| Total capital to risk-weighted assets | 11.77% | 13.24% | 10.50% |
| Tier 1 capital to risk-weighted assets | 10.78% | 9.20% | 8.50% |
| Tier 1 leverage ratio | 8.78% | 7.50% | 4.00% |
| Common equity Tier 1 capital | 10.78% | 7.99% | 7.00% |
| Tangible common equity to tangible assets (1) | NA | 6.46% | NA |
(1) A non-GAAP financial measure. Refer to page 15 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%.
Stock Repurchase Program
During the fourth quarter of 2020, the Company repurchased 430,185 shares of its common stock at a weighted average price of $16.01 under its stock repurchase program, which authorized the repurchase of up to $50 million of its common stock. As of December 31, 2020, the Company had $6.4 million remaining under the current stock repurchase authorization.
Conference Call, Webcast and Slide Presentation
The Company will host a conference call and webcast at 7:30 a.m. Central Time on Friday, January 29, 2021, to discuss its financial results. The call can be accessed via telephone at (877) 516-3531; conference ID: 3179613. A recorded replay can be accessed through February 5, 2021, by dialing (855) 859-2056; conference ID: 3179613.
A slide presentation relating to the fourth quarter 2020 results will be accessible prior to the scheduled conference call. This earnings release should be read together with the slide presentation, which contains important information related to the impact of COVID-19. 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 at investors.midlandsb.com under the “News and Events” tab.
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, 2020, the Company had total assets of approximately $6.87 billion, and its Wealth Management Group had assets under administration of approximately $3.48 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, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include “Adjusted Earnings,” “Adjusted Diluted Earnings Per Common Share,” “Adjusted Pre-Tax, Pre-Provision Earnings,” “Adjusted Return on Average Assets,” “Adjusted Return on Average Shareholders’ Equity,” “Adjusted Return on Average Tangible Common Equity,” “Adjusted Pre-Tax, Pre-Provision Return on Average Assets,” “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" 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, including the effects of the COVID-19 pandemic and its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic; changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
CONTACTS:
Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321
Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321
Douglas J. Tucker, SVP and Corporate Counsel, at dtucker@midlandsb.com or (217) 342-7321
| MIDLAND STATES BANCORP, INC. | |||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) | |||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| (dollars in thousands, except per share data) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||
| Earnings Summary | |||||||||||||||||||
| Net interest income | $ | 53,516 | $ | 49,980 | $ | 48,989 | $ | 46,651 | $ | 48,687 | |||||||||
| Provision for credit losses | 10,058 | 11,728 | 10,997 | 11,578 | 5,305 | ||||||||||||||
| Noninterest income | 14,336 | 18,919 | 19,396 | 8,598 | 19,014 | ||||||||||||||
| Noninterest expense | 47,048 | 53,901 | 41,395 | 41,666 | 46,325 | ||||||||||||||
| Income before income taxes | 10,746 | 3,270 | 15,993 | 2,005 | 16,071 | ||||||||||||||
| Income taxes | 2,413 | 3,184 | 3,424 | 456 | 3,279 | ||||||||||||||
| Net income | $ | 8,333 | $ | 86 | $ | 12,569 | $ | 1,549 | $ | 12,792 | |||||||||
| Diluted earnings per common share | $ | 0.36 | $ | - | $ | 0.53 | $ | 0.06 | $ | 0.51 | |||||||||
| Weighted average shares outstanding - diluted | 22,656,343 | 22,937,837 | 23,339,964 | 24,538,002 | 24,761,960 | ||||||||||||||
| Return on average assets | 0.49 | % | 0.01 | % | 0.77 | % | 0.10 | % | 0.83 | % | |||||||||
| Return on average shareholders' equity | 5.32 | % | 0.05 | % | 8.00 | % | 0.96 | % | 7.71 | % | |||||||||
| Return on average tangible common equity (1) | 7.68 | % | 0.08 | % | 11.84 | % | 1.39 | % | 11.24 | % | |||||||||
| Net interest margin | 3.47 | % | 3.33 | % | 3.32 | % | 3.48 | % | 3.56 | % | |||||||||
| Efficiency ratio (1) | 58.55 | % | 57.74 | % | 59.42 | % | 62.21 | % | 59.46 | % | |||||||||
| Adjusted Earnings Performance Summary (1) | |||||||||||||||||||
| Adjusted earnings | $ | 12,471 | $ | 12,023 | $ | 12,884 | $ | 2,806 | $ | 16,110 | |||||||||
| Adjusted diluted earnings per common share | $ | 0.54 | $ | 0.52 | $ | 0.55 | $ | 0.11 | $ | 0.64 | |||||||||
| Adjusted return on average assets | 0.73 | % | 0.72 | % | 0.78 | % | 0.19 | % | 1.04 | % | |||||||||
| Adjusted return on average shareholders' equity | 7.97 | % | 7.56 | % | 8.20 | % | 1.73 | % | 9.71 | % | |||||||||
| Adjusted return on average tangible common equity | 11.50 | % | 11.04 | % | 12.14 | % | 2.53 | % | 14.15 | % | |||||||||
| Adjusted pre-tax, pre-provision earnings | $ | 28,855 | $ | 28,751 | $ | 27,531 | $ | 23,785 | $ | 27,566 | |||||||||
| Adjusted pre-tax, pre-provision return on average assets | 1.69 | % | 1.72 | % | 1.68 | % | 1.58 | % | 1.79 | % | |||||||||
| (1) Non-GAAP financial measures. Refer to pages 13 - 15 for a reconciliation to the comparable GAAP financial measures. | |||||||||||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||
| (in thousands, except per share data) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||||||
| Net interest income: | ||||||||||||||||||||||||
| Interest income | $ | 62,712 | $ | 60,314 | $ | 60,548 | $ | 61,314 | $ | 64,444 | ||||||||||||||
| Interest expense | 9,196 | 10,334 | 11,559 | 14,663 | 15,757 | |||||||||||||||||||
| Net interest income | 53,516 | 49,980 | 48,989 | 46,651 | 48,687 | |||||||||||||||||||
| Provision for credit losses: | ||||||||||||||||||||||||
| Provision for credit losses on loans | 10,000 | 10,970 | 11,610 | 10,569 | 5,305 | |||||||||||||||||||
| Provision for credit losses on unfunded commitments | - | 577 | (665 | ) | 934 | - | ||||||||||||||||||
| Provision for other credit losses | 58 | 181 | 52 | 75 | - | |||||||||||||||||||
| Total provision for credit losses | 10,058 | 11,728 | 10,997 | 11,578 | 5,305 | |||||||||||||||||||
| Net interest income after provision for credit losses | 43,458 | 38,252 | 37,992 | 35,073 | 43,382 | |||||||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||
| Wealth management revenue | 5,868 | 5,559 | 5,698 | 5,677 | 5,377 | |||||||||||||||||||
| Commercial FHA revenue | 400 | 926 | 3,414 | 1,267 | 3,702 | |||||||||||||||||||
| Residential mortgage banking revenue | 2,285 | 3,049 | 2,723 | 1,755 | 763 | |||||||||||||||||||
| Service charges on deposit accounts | 2,149 | 2,092 | 1,706 | 2,656 | 2,860 | |||||||||||||||||||
| Interchange revenue | 3,137 | 3,283 | 3,013 | 2,833 | 3,053 | |||||||||||||||||||
| Gain on sales of investment securities, net | - | 1,721 | - | - | 635 | |||||||||||||||||||
| Impairment on commercial mortgage servicing rights | (2,344 | ) | (1,418 | ) | (107 | ) | (8,468 | ) | (1,613 | ) | ||||||||||||||
| Bank owned life insurance | 893 | 897 | 892 | 900 | 913 | |||||||||||||||||||
| Other income | 1,948 | 2,810 | 2,057 | 1,978 | 3,324 | |||||||||||||||||||
| Total noninterest income | 14,336 | 18,919 | 19,396 | 8,598 | 19,014 | |||||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||||||
| Salaries and employee benefits | 22,636 | 21,118 | 20,740 | 21,063 | 23,650 | |||||||||||||||||||
| Occupancy and equipment | 3,531 | 4,866 | 4,286 | 4,869 | 4,654 | |||||||||||||||||||
| Data processing | 5,987 | 5,721 | 5,458 | 5,477 | 6,217 | |||||||||||||||||||
| Professional | 1,912 | 1,861 | 1,606 | 1,855 | 1,952 | |||||||||||||||||||
| Amortization of intangible assets | 1,556 | 1,557 | 1,629 | 1,762 | 1,804 | |||||||||||||||||||
| Loss on mortgage servicing rights held for sale | 617 | 188 | 391 | 496 | 95 | |||||||||||||||||||
| Impairment related to facilities optimization | (10 | ) | 12,651 | 60 | 146 | - | ||||||||||||||||||
| FHLB advances prepayment fees | 4,872 | - | - | - | - | |||||||||||||||||||
| Other expense | 5,947 | 5,939 | 7,225 | 5,998 | 7,953 | |||||||||||||||||||
| Total noninterest expense | 47,048 | 53,901 | 41,395 | 41,666 | 46,325 | |||||||||||||||||||
| Income before income taxes | 10,746 | 3,270 | 15,993 | 2,005 | 16,071 | |||||||||||||||||||
| Income taxes | 2,413 | 3,184 | 3,424 | 456 | 3,279 | |||||||||||||||||||
| Net income | $ | 8,333 | $ | 86 | $ | 12,569 | $ | 1,549 | $ | 12,792 | ||||||||||||||
| Basic earnings per common share | $ | 0.36 | $ | 0.00 | $ | 0.53 | $ | 0.06 | $ | 0.52 | ||||||||||||||
| Diluted earnings per common share | $ | 0.36 | $ | 0.00 | $ | 0.53 | $ | 0.06 | $ | 0.51 | ||||||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||
| (in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 341,640 | $ | 461,196 | $ | 519,868 | $ | 449,396 | $ | 394,505 | ||||||||||||||
| Investment securities | 686,135 | 618,974 | 639,693 | 661,894 | 655,054 | |||||||||||||||||||
| Loans | 5,103,331 | 4,941,466 | 4,839,423 | 4,376,204 | 4,401,410 | |||||||||||||||||||
| Allowance for credit losses on loans | (60,443 | ) | (52,771 | ) | (47,093 | ) | (38,545 | ) | (28,028 | ) | ||||||||||||||
| Total loans, net | 5,042,888 | 4,888,695 | 4,792,330 | 4,337,659 | 4,373,382 | |||||||||||||||||||
| Loans held for sale, at fair value | 138,090 | 62,500 | 32,403 | 113,852 | 16,431 | |||||||||||||||||||
| Premises and equipment, net | 74,124 | 74,967 | 89,046 | 90,118 | 91,055 | |||||||||||||||||||
| Other real estate owned | 20,247 | 15,961 | 12,728 | 7,892 | 6,745 | |||||||||||||||||||
| Loan servicing rights, at lower of cost or fair value | 39,276 | 42,465 | 44,239 | 44,566 | 53,824 | |||||||||||||||||||
| Goodwill | 161,904 | 161,904 | 172,796 | 172,796 | 171,758 | |||||||||||||||||||
| Other intangible assets, net | 28,382 | 29,938 | 31,495 | 33,124 | 34,886 | |||||||||||||||||||
| Cash surrender value of life insurance policies | 146,004 | 145,112 | 144,215 | 143,323 | 142,423 | |||||||||||||||||||
| Other assets | 189,850 | 198,333 | 165,685 | 153,610 | 146,954 | |||||||||||||||||||
| Total assets | $ | 6,868,540 | $ | 6,700,045 | $ | 6,644,498 | $ | 6,208,230 | $ | 6,087,017 | ||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||
| Noninterest-bearing deposits | $ | 1,469,579 | $ | 1,355,188 | $ | 1,273,267 | $ | 1,052,726 | $ | 1,019,472 | ||||||||||||||
| Interest-bearing deposits | 3,631,437 | 3,673,548 | 3,669,840 | 3,597,914 | 3,524,782 | |||||||||||||||||||
| Total deposits | 5,101,016 | 5,028,736 | 4,943,107 | 4,650,640 | 4,544,254 | |||||||||||||||||||
| Short-term borrowings | 68,957 | 58,625 | 77,136 | 43,578 | 82,029 | |||||||||||||||||||
| FHLB advances and other borrowings | 779,171 | 693,640 | 693,865 | 593,089 | 493,311 | |||||||||||||||||||
| Subordinated debt | 169,795 | 169,702 | 169,610 | 169,505 | 176,653 | |||||||||||||||||||
| Trust preferred debentures | 48,814 | 48,682 | 48,551 | 48,420 | 48,288 | |||||||||||||||||||
| Other liabilities | 79,396 | 78,780 | 78,640 | 71,838 | 80,571 | |||||||||||||||||||
| Total liabilities | 6,247,149 | 6,078,165 | 6,010,909 | 5,577,070 | 5,425,106 | |||||||||||||||||||
| Total shareholders’ equity | 621,391 | 621,880 | 633,589 | 631,160 | 661,911 | |||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 6,868,540 | $ | 6,700,045 | $ | 6,644,498 | $ | 6,208,230 | $ | 6,087,017 | ||||||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| (in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||
| Loan Portfolio | ||||||||||||||||||||
| Commercial loans and leases | $ | 2,095,639 | $ | 1,938,691 | $ | 1,856,435 | $ | 1,439,145 | $ | 1,387,766 | ||||||||||
| Commercial real estate | 1,525,973 | 1,496,758 | 1,495,183 | 1,507,280 | 1,526,504 | |||||||||||||||
| Construction and land development | 172,737 | 177,894 | 207,593 | 208,361 | 208,733 | |||||||||||||||
| Residential real estate | 442,880 | 470,829 | 509,453 | 548,014 | 568,291 | |||||||||||||||
| Consumer | 866,102 | 857,294 | 770,759 | 673,404 | 710,116 | |||||||||||||||
| Total loans | $ | 5,103,331 | $ | 4,941,466 | $ | 4,839,423 | $ | 4,376,204 | $ | 4,401,410 | ||||||||||
| Deposit Portfolio | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,469,579 | $ | 1,355,188 | $ | 1,273,267 | $ | 1,052,726 | $ | 1,019,472 | ||||||||||
| Interest-bearing: | ||||||||||||||||||||
| Checking | 1,568,888 | 1,581,216 | 1,484,728 | 1,425,022 | 1,342,788 | |||||||||||||||
| Money market | 785,871 | 826,454 | 877,675 | 849,642 | 787,662 | |||||||||||||||
| Savings | 597,966 | 580,748 | 594,685 | 534,457 | 522,456 | |||||||||||||||
| Time | 655,620 | 661,872 | 689,841 | 765,870 | 822,160 | |||||||||||||||
| Brokered time | 23,092 | 23,258 | 22,911 | 22,923 | 49,716 | |||||||||||||||
| Total deposits | $ | 5,101,016 | $ | 5,028,736 | $ | 4,943,107 | $ | 4,650,640 | $ | 4,544,254 | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||
| Average Balance Sheets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 415,686 | $ | 491,728 | $ | 489,941 | $ | 337,851 | $ | 406,526 | ||||||||||
| Investment securities | 672,937 | 628,705 | 650,356 | 662,450 | 631,294 | |||||||||||||||
| Loans | 4,998,912 | 4,803,940 | 4,696,288 | 4,384,206 | 4,359,144 | |||||||||||||||
| Loans held for sale | 45,196 | 44,880 | 99,169 | 19,844 | 36,974 | |||||||||||||||
| Nonmarketable equity securities | 51,906 | 50,765 | 50,661 | 45,124 | 43,745 | |||||||||||||||
| Total interest-earning assets | 6,184,637 | 6,020,018 | 5,986,415 | 5,449,475 | 5,477,683 | |||||||||||||||
| Non-earning assets | 602,716 | 625,522 | 619,411 | 624,594 | 649,169 | |||||||||||||||
| Total assets | $ | 6,787,353 | $ | 6,645,540 | $ | 6,605,826 | $ | 6,074,069 | $ | 6,126,852 | ||||||||||
| Interest-bearing deposits | $ | 3,680,645 | $ | 3,656,833 | $ | 3,651,406 | $ | 3,549,515 | $ | 3,490,165 | ||||||||||
| Short-term borrowings | 62,432 | 64,010 | 59,103 | 55,616 | 104,598 | |||||||||||||||
| FHLB advances and other borrowings | 682,981 | 693,721 | 692,470 | 532,733 | 531,419 | |||||||||||||||
| Subordinated debt | 169,751 | 169,657 | 169,560 | 170,026 | 182,149 | |||||||||||||||
| Trust preferred debentures | 48,751 | 48,618 | 48,487 | 48,357 | 48,229 | |||||||||||||||
| Total interest-bearing liabilities | 4,644,560 | 4,632,839 | 4,621,026 | 4,356,247 | 4,356,560 | |||||||||||||||
| Noninterest-bearing deposits | 1,446,359 | 1,303,963 | 1,280,983 | 986,178 | 1,028,670 | |||||||||||||||
| Other noninterest-bearing liabilities | 73,840 | 75,859 | 71,853 | 78,943 | 83,125 | |||||||||||||||
| Shareholders' equity | 622,594 | 632,879 | 631,964 | 652,701 | 658,497 | |||||||||||||||
| Total liabilities and shareholders' equity | $ | 6,787,353 | $ | 6,645,540 | $ | 6,605,826 | $ | 6,074,069 | $ | 6,126,852 | ||||||||||
| Yields | ||||||||||||||||||||
| Earning Assets | ||||||||||||||||||||
| Cash and cash equivalents | 0.12 | % | 0.10 | % | 0.14 | % | 1.26 | % | 1.62 | % | ||||||||||
| Investment securities | 2.65 | % | 2.86 | % | 3.05 | % | 3.23 | % | 3.10 | % | ||||||||||
| Loans | 4.58 | % | 4.57 | % | 4.64 | % | 5.01 | % | 5.22 | % | ||||||||||
| Loans held for sale | 3.14 | % | 2.92 | % | 4.07 | % | 3.87 | % | 4.12 | % | ||||||||||
| Nonmarketable equity securities | 5.22 | % | 5.26 | % | 5.40 | % | 5.39 | % | 5.31 | % | ||||||||||
| Total interest-earning assets | 4.06 | % | 4.01 | % | 4.10 | % | 4.56 | % | 4.70 | % | ||||||||||
| Interest-Bearing Liabilities | ||||||||||||||||||||
| Interest-bearing deposits | 0.36 | % | 0.46 | % | 0.61 | % | 0.95 | % | 1.03 | % | ||||||||||
| Short-term borrowings | 0.14 | % | 0.17 | % | 0.19 | % | 0.73 | % | 0.67 | % | ||||||||||
| FHLB advances and other borrowings | 1.71 | % | 1.85 | % | 1.69 | % | 2.24 | % | 2.26 | % | ||||||||||
| Subordinated debt | 5.60 | % | 5.58 | % | 5.85 | % | 5.90 | % | 5.94 | % | ||||||||||
| Trust preferred debentures | 4.03 | % | 4.16 | % | 4.86 | % | 6.02 | % | 6.41 | % | ||||||||||
| Total interest-bearing liabilities | 0.79 | % | 0.89 | % | 1.01 | % | 1.35 | % | 1.43 | % | ||||||||||
| Cost of Deposits | 0.26 | % | 0.34 | % | 0.45 | % | 0.74 | % | 0.80 | % | ||||||||||
| Net Interest Margin | 3.47 | % | 3.33 | % | 3.32 | % | 3.48 | % | 3.56 | % | ||||||||||
| MIDLAND STATES BANCORP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| (dollars in thousands, except per share data) | 2020 | 2020 | 2020 | 2020 | 2019 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Loans 30-89 days past due | $ | 31,460 | $ | 28,188 | $ | 36,551 | $ | 40,392 | $ | 29,876 | ||||||||||
| Nonperforming loans | 54,070 | 67,443 | 60,513 | 58,166 | 42,082 | |||||||||||||||
| Nonperforming assets | 75,432 | 84,795 | 74,707 | 67,158 | 50,027 | |||||||||||||||
| Net charge-offs | 2,328 | 5,292 | 3,062 | 12,835 | 2,194 | |||||||||||||||
| Loans 30-89 days past due to total loans | 0.62 | % | 0.57 | % | 0.76 | % | 0.92 | % | 0.68 | % | ||||||||||
| Nonperforming loans to total loans | 1.06 | % | 1.36 | % | 1.25 | % | 1.33 | % | 0.96 | % | ||||||||||
| Nonperforming assets to total assets | 1.10 | % | 1.27 | % | 1.12 | % | 1.08 | % | 0.82 | % | ||||||||||
| Allowance for credit losses to total loans | 1.18 | % | 1.07 | % | 0.97 | % | 0.88 | % | 0.64 | % | ||||||||||
| Allowance for credit losses to nonperforming loans | 111.79 | % | 78.25 | % | 77.82 | % | 66.27 | % | 66.60 | % | ||||||||||
| Net charge-offs to average loans | 0.19 | % | 0.44 | % | 0.26 | % | 1.18 | % | 0.20 | % | ||||||||||
| Wealth Management | ||||||||||||||||||||
| Trust assets under administration | $ | 3,480,759 | $ | 3,260,893 | $ | 3,253,784 | $ | 2,967,536 | $ | 3,409,959 | ||||||||||
| Market Data | ||||||||||||||||||||
| Book value per share at period end | $ | 27.83 | $ | 27.51 | $ | 27.62 | $ | 26.99 | $ | 27.10 | ||||||||||
| Tangible book value per share at period end (1) | $ | 19.31 | $ | 19.03 | $ | 18.72 | $ | 18.19 | $ | 18.64 | ||||||||||
| Market price at period end | $ | 17.87 | $ | 12.85 | $ | 14.95 | $ | 17.49 | $ | 28.96 | ||||||||||
| Shares outstanding at period end | 22,325,471 | 22,602,844 | 22,937,296 | 23,381,496 | 24,420,345 | |||||||||||||||
| Capital | ||||||||||||||||||||
| Total capital to risk-weighted assets | 13.24 | % | 13.34 | % | 13.67 | % | 13.73 | % | 14.72 | % | ||||||||||
| Tier 1 capital to risk-weighted assets | 9.20 | % | 9.40 | % | 9.71 | % | 9.76 | % | 10.52 | % | ||||||||||
| Tier 1 leverage ratio | 7.50 | % | 7.72 | % | 7.75 | % | 8.39 | % | 8.74 | % | ||||||||||
| Tier 1 common capital to risk-weighted assets | 7.99 | % | 8.18 | % | 8.44 | % | 8.47 | % | 9.20 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 6.46 | % | 6.61 | % | 6.67 | % | 7.08 | % | 7.74 | % | ||||||||||
| (1) Non-GAAP financial measures. Refer to pages 13 - 15 for a reconciliation to the comparable GAAP financial measures. | ||||||||||||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) | |||||||||||||||||||||||||
| Adjusted Earnings Reconciliation | |||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
| (dollars in thousands, except per share data) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||||||||
| Income before income taxes - GAAP | $ | 10,746 | $ | 3,270 | $ | 15,993 | $ | 2,005 | $ | 16,071 | |||||||||||||||
| Adjustments to noninterest income: | |||||||||||||||||||||||||
| Gain on sales of investment securities, net | - | 1,721 | - | - | 635 | ||||||||||||||||||||
| Other | 3 | (17 | ) | 11 | (13 | ) | (6 | ) | |||||||||||||||||
| Total adjustments to noninterest income | 3 | 1,704 | 11 | (13 | ) | 629 | |||||||||||||||||||
| Adjustments to noninterest expense: | |||||||||||||||||||||||||
| Loss on mortgage servicing rights held for sale | 617 | 188 | 391 | 496 | 95 | ||||||||||||||||||||
| Loss on repurchase of subordinated debt | - | - | - | 193 | 1,778 | ||||||||||||||||||||
| Impairment related to facilities optimization | (10 | ) | 12,651 | 60 | 146 | - | |||||||||||||||||||
| FHLB advances prepayment fees | 4,872 | - | - | - | - | ||||||||||||||||||||
| Integration and acquisition expenses | 231 | 1,200 | (6 | ) | 886 | 3,333 | |||||||||||||||||||
| Total adjustments to noninterest expense | 5,710 | 14,039 | 445 | 1,721 | 5,206 | ||||||||||||||||||||
| Adjusted earnings pre tax | 16,453 | 15,605 | 16,427 | 3,739 | 20,648 | ||||||||||||||||||||
| Adjusted earnings tax | 3,982 | 3,582 | 3,543 | 933 | 4,538 | ||||||||||||||||||||
| Adjusted earnings - non-GAAP | $ | 12,471 | $ | 12,023 | $ | 12,884 | $ | 2,806 | $ | 16,110 | |||||||||||||||
| Adjusted diluted earnings per common share | $ | 0.54 | $ | 0.52 | $ | 0.55 | $ | 0.11 | $ | 0.64 | |||||||||||||||
| Adjusted return on average assets | 0.73 | % | 0.72 | % | 0.78 | % | 0.19 | % | 1.04 | % | |||||||||||||||
| Adjusted return on average shareholders' equity | 7.97 | % | 7.56 | % | 8.20 | % | 1.73 | % | 9.71 | % | |||||||||||||||
| Adjusted return on average tangible common equity | 11.50 | % | 11.04 | % | 12.14 | % | 2.53 | % | 14.15 | % | |||||||||||||||
| Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation | |||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||||||||
| Adjusted earnings pre tax - non- GAAP | $ | 16,453 | $ | 15,605 | $ | 16,427 | $ | 3,739 | $ | 20,648 | |||||||||||||||
| Provision for credit losses | 10,058 | 11,728 | 10,997 | 11,578 | 5,305 | ||||||||||||||||||||
| Impairment on commercial mortgage servicing rights | 2,344 | 1,418 | 107 | 8,468 | 1,613 | ||||||||||||||||||||
| Adjusted pre-tax, pre-provision earnings - non-GAAP | $ | 28,855 | $ | 28,751 | $ | 27,531 | $ | 23,785 | $ | 27,566 | |||||||||||||||
| Adjusted pre-tax, pre-provision return on average assets | 1.69 | % | 1.72 | % | 1.68 | % | 1.58 | % | 1.79 | % | |||||||||||||||
| MIDLAND STATES BANCORP, INC. | |||||||||||||||||||||||||
| RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) | |||||||||||||||||||||||||
| Efficiency Ratio Reconciliation | |||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||||||||
| Noninterest expense - GAAP | $ | 47,048 | $ | 53,901 | $ | 41,395 | $ | 41,666 | $ | 46,325 | |||||||||||||||
| Loss on mortgage servicing rights held for sale | (617 | ) | (188 | ) | (391 | ) | (496 | ) | (95 | ) | |||||||||||||||
| Loss on repurchase of subordinated debt | - | - | - | (193 | ) | (1,778 | ) | ||||||||||||||||||
| Impairment related to facilities optimization | 10 | (12,651 | ) | (60 | ) | (146 | ) | - | |||||||||||||||||
| FHLB advances prepayment fees | (4,872 | ) | - | - | - | - | |||||||||||||||||||
| Integration and acquisition expenses | (231 | ) | (1,199 | ) | 6 | (885 | ) | (3,332 | ) | ||||||||||||||||
| Adjusted noninterest expense | $ | 41,338 | $ | 39,863 | $ | 40,950 | $ | 39,946 | $ | 41,120 | |||||||||||||||
| Net interest income - GAAP | $ | 53,516 | $ | 49,980 | $ | 48,989 | $ | 46,651 | $ | 48,687 | |||||||||||||||
| Effect of tax-exempt income | 413 | 430 | 438 | 485 | 474 | ||||||||||||||||||||
| Adjusted net interest income | 53,929 | 50,410 | 49,427 | 47,136 | 49,161 | ||||||||||||||||||||
| Noninterest income - GAAP | 14,336 | 18,919 | 19,396 | 8,598 | 19,014 | ||||||||||||||||||||
| Impairment on commercial mortgage servicing rights | 2,344 | 1,418 | 107 | 8,468 | 1,613 | ||||||||||||||||||||
| Gain on sales of investment securities, net | - | (1,721 | ) | - | - | (635 | ) | ||||||||||||||||||
| Other | (3 | ) | 17 | (11 | ) | 13 | 6 | ||||||||||||||||||
| Adjusted noninterest income | 16,677 | 18,633 | 19,492 | 17,079 | 19,998 | ||||||||||||||||||||
| Adjusted total revenue | $ | 70,606 | $ | 69,043 | $ | 68,919 | $ | 64,215 | $ | 69,159 | |||||||||||||||
| Efficiency ratio | 58.55 | % | 57.74 | % | 59.42 | % | 62.21 | % | 59.46 | % | |||||||||||||||
| 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 | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
| (dollars in thousands, except per share data) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||||||||
| Shareholders' Equity to Tangible Common Equity | |||||||||||||||||||||||||
| Total shareholders' equity—GAAP | $ | 621,391 | $ | 621,880 | $ | 633,589 | $ | 631,160 | $ | 661,911 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Goodwill | (161,904 | ) | (161,904 | ) | (172,796 | ) | (172,796 | ) | (171,758 | ) | |||||||||||||||
| Other intangibles, net | (28,382 | ) | (29,938 | ) | (31,495 | ) | (33,124 | ) | (34,886 | ) | |||||||||||||||
| Tangible common equity | $ | 431,105 | $ | 430,038 | $ | 429,298 | $ | 425,240 | $ | 455,267 | |||||||||||||||
| Total Assets to Tangible Assets: | |||||||||||||||||||||||||
| Total assets—GAAP | $ | 6,868,540 | $ | 6,700,045 | $ | 6,644,498 | $ | 6,208,230 | $ | 6,087,017 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Goodwill | (161,904 | ) | (161,904 | ) | (172,796 | ) | (172,796 | ) | (171,758 | ) | |||||||||||||||
| Other intangibles, net | (28,382 | ) | (29,938 | ) | (31,495 | ) | (33,124 | ) | (34,886 | ) | |||||||||||||||
| Tangible assets | $ | 6,678,254 | $ | 6,508,203 | $ | 6,440,207 | $ | 6,002,310 | $ | 5,880,373 | |||||||||||||||
| Common Shares Outstanding | 22,325,471 | 22,602,844 | 22,937,296 | 23,381,496 | 24,420,345 | ||||||||||||||||||||
| Tangible Common Equity to Tangible Assets | 6.46 | % | 6.61 | % | 6.67 | % | 7.08 | % | 7.74 | % | |||||||||||||||
| Tangible Book Value Per Share | $ | 19.31 | $ | 19.03 | $ | 18.72 | $ | 18.19 | $ | 18.64 | |||||||||||||||
| Return on Average Tangible Common Equity (ROATCE) | |||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||||
| (dollars in thousands) | 2020 | 2020 | 2020 | 2020 | 2019 | ||||||||||||||||||||
| Net income available to common shareholders | $ | 8,333 | $ | 86 | $ | 12,569 | $ | 1,549 | $ | 12,792 | |||||||||||||||
| Average total shareholders' equity—GAAP | $ | 622,594 | $ | 632,879 | $ | 631,964 | $ | 652,701 | $ | 658,497 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||||
| Goodwill | (161,904 | ) | (168,771 | ) | (172,796 | ) | (171,890 | ) | (171,082 | ) | |||||||||||||||
| Other intangibles, net | (29,123 | ) | (30,690 | ) | (32,275 | ) | (33,951 | ) | (35,745 | ) | |||||||||||||||
| Average tangible common equity | $ | 431,567 | $ | 433,418 | $ | 426,893 | $ | 446,860 | $ | 451,670 | |||||||||||||||
| ROATCE | 7.68 | % | 0.08 | % | 11.84 | % | 1.39 | % | 11.24 | % | |||||||||||||||