Business
Midland States Bancorp Announces Settlement of Prior Tax Issue Resulting in a Tax Benefit and Other Items Impacting Second Quarter 2021 Financial Results
EFFINGHAM, Ill., June 29, 2021 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ: MSBI) today announced the settlement of a prior tax issue related to
About this update from Midland States Bancorp, Inc.
[{"type":"text","content":"EFFINGHAM, Ill., June 29, 2021 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ: MSBI) today announced the settlement of a prior tax issue related to the treatment of gains recognized on FDIC-assisted transactions that will result in a $6.75 million tax benefit that will be recognized in the second quarter of 2021. The Company will also recognize approximately $3.6 million in consulting and legal expenses related to the settlement of the tax issue, resulting in an after-tax gain of approximately $2.9 million. The Company also announced the following balance sheet management actions that will reduce future interest expense and positively impact its net interest margin: The prepayment of an $85 million longer-term FHLB advance with an interest rate of 2.54%. The prepayment of the FHLB advance will result in a pre-tax charge of approximately $3.7 million in the second quarter of 2021. The prepayment is expected to reduce interest expense by approximately $2.2 million annually and have a six basis point positive impact on the Company’s net interest margin.The redemption of $31 million of Fixed-to-Floating Rate Subordinated Notes due June 18, 2025, which paid an interest rate of 4.54% at the time of the redemption. The redemption will reduce interest expense by approximately $1.4 million annually and have a four basis point positive impact on the Company’s net interest margin. 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 March 31, 2021, the Company had total assets of approximately $6.88 billion, and its Wealth Management Group had assets under administration of approximately $3.56 billion. Midland provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank. 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...