Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q1 2019 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, Apr 25, 2019
Slide 1: Midland States Bancorp, Inc. First Quarter 2019 Earnings Call
1 Midland States Bancorp, Inc. NASDAQ: MSBI First Quarter 2019 Earnings Call
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements. This presentation may contain forward - looking statements within the meaning of the federal securities laws. Forward - looking statements express management’s current expectations, forecasts of future events or long - term goals, including with respect to pending acq
Slide 3: Overview of 1Q19
3 Overview of 1Q19 3 Solid Execution on Strategic Priorities 1Q19 Earnings HomeStar Acquisition • Prudent balance sheet management keeping NIM stable • Loan production focused on areas with attractive risk - adjusted yields • Disciplined expense management • Fill - in acquisition in our existing Kan
Slide 4: Loan Portfolio
4 1Q 2019 4Q 2018 1Q 2018 Commercial loans and leases $ 1,123 $ 1,075 $ 1,026 Commercial real estate 1,560 1,639 1,774 Construction and land development 239 232 235 Residential real estate 569 578 570 Consumer 601 613 424 Total Loans $ 4,092 $ 4,138 $ 4,029 $4,029 $4,096 $4,156 $4,138 $4,092 1Q 2018
Slide 5: Total Deposits
5 1Q 2019 4Q 2018 1Q 2018 Noninterest - bearing demand $ 941 $ 972 $ 1,038 Interest - bearing: Checking 969 1,002 993 Money market 802 862 840 Savings 457 442 467 Time 686 634 672 Brokered 181 162 224 Total Deposits $ 4,036 $ 4,074 $ 4,234 $4,234 $4,160 $4,143 $4,074 $4,036 1Q 2018 2Q 2018 3Q 2018 4
Slide 6: Wealth Management
6 $4.08 $5.32 $5.47 $5.65 $4.95 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 $3,125 $3,189 $3,218 $2,945 $3,097 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 • Total Wealth Management revenue declined 12.4% from the prior quarter • Decline attributable to higher estate fees and other one - time revenue items r
Slide 7: Net Interest Income/Margin
7 $2.0 $5.5 $1.7 $4.3 $2.5 $45.6 $38.2 $48.3 $45.1 $48.5 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 NII Accretion Income 0.16% 0.40% 0.10% 0.31% 0.17% 3.73% 3.69% 3.91% 3.59% 3.85% 1Q 2018 2Q 2018 3Q 2018 4Q 2018 1Q 2019 NIM Accretion Income • Net interest income and margin declined due to lower accret
Slide 8: Noninterest Income
8 Noninterest Income 8 • Noninterest income decreased 19.3% from prior quarter • Wealth management remains largest single contributor to noninterest income • Commercial FHA revenue of $3.3 million remained within projected range despite impact of government shutdown in 1Q19 Noninterest Income (in mi
Slide 9: Noninterest Expense and Operating Efficiency
9 Noninterest Expense and Operating Efficiency 9 • Efficiency Ratio (1) was 64.7% in 1Q19 vs. 65.5% in 4Q18 • Integration and acquisition related expenses » $0.2 million in 1Q19 » $0.6 million in 4Q18 • Excluding these expenses, noninterest expense decreased 8.7% on a linked - quarter basis • Decrea
Slide 10: Asset Quality
10 Asset Quality NCO / Average Loans 10 • Increase in nonperforming loans primarily attributable to the downgrade of one commercial real estate loan and one residential real estate loan • Net charge - offs for 1Q19 was 0.10% of average loans on an annualized basis • Provision for loan losses of $3.2
Slide 11: Outlook
11 Outlook • Continued execution on protecting margin and controlling expenses resulting in solid financial performance • Low - single - digit organic loan growth expected in 2019 • Organic loan growth closely linked to core deposit growth • HomeStar acquisition will provide additional liquidity tha
Slide 12: Appendix
APPENDIX Midland [>]
Slide 13: Adjusted Earnings Reconciliation
13 13 Adjusted Earnings Reconciliation (dollars in thousands, except per share data) Income before income taxes - GAAP $ 18,336 $ 20,863 $ 10,933 $ 15,827 $ 3,182 Adjustments to noninterest income: Gain (loss) on sales of investment securities, net - 469 - (70) 65 Other - (1) (12) (48) 150 Total adj
Slide 14: Efficiency Ratio Reconciliation
14 14 Efficiency Ratio Reconciliation (dollars in thousands) Noninterest expense - GAAP $ 41,097 $ 45,375 $ 50,317 $ 46,452 $ 49,499 Loss on mortgage servicing rights held for sale - - (270) (188) - Integration and acquisition expenses (160) (553) (9,559) (2,019) (11,884) Adjusted noninterest expens
Slide 15: Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
15 15 Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share (dollars in thousands, except per share data) Shareholders' Equity to Tangible Common Equity Total shareholders' equity—GAAP $ 624,168 $ 608,525 $ 594,146 $ 592,535 $ 585,385 Adjustments: Preferred stock (2,733)
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