Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q1 2021 Earnings Presentation
25 slides from Midland States Bancorp's earnings presentation, 2021
Slide 1: First Quarter 2021 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI First Quarter 2021 Earnings Call 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements. This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements expressing management’s current expectations, forecasts of future events or long-term goals may be based upon beliefs, expectations and a
Slide 3: Overview of 1Q21
Overview of 1Q21 • Net income of $18.5 million, or $0.81 diluted EPS 1Q21 Earnings • Adjusted Pre-Tax, Pre-Provision (PTPP) Income(1) of $29.1 million • Efficiency ratio improves to 56.9% from 58.6% in 4Q20 Improving • Return on average shareholders’ equity of 12.04% Performance Metrics • Return on
Slide 4: Paycheck Protection Program Overview
Paycheck Protection Program Overview Paycheck Protection Program Paycheck Protection Program (as of 3/31/21) Loan Forgiveness Loans Outstanding $211.6 million As of 12/31/20 As of 3/31/21 Round 1 $132.2 million Round 2 $79.3 million Loans Submitted to SBA $155.6 million $196.5 million Total Fees Ear
Slide 5: Loan Deferral Overview
Loan Deferral Overview Total Loan Deferrals Deferral Type (as of March 31, 2021) As of As of As of Sept. 30, 2020 Dec. 31, 2020 Mar. 31, 2021 Full Payment Deferral $131.9 million Total Loans Deferred $279.3 million $209.1 million $219.1 million Deferred Loans Making $87.2 million % of Total Loans 5.
Slide 6: Loan Portfolio
Loan Portfolio • Total loans decreased $192.5 million from prior quarter to $4.91 billion • Decline due to elevated payoffs/paydowns including lower line utilization by ag borrowers and continued runoff in residential real estate portfolio driven by refinancing activity • Average balances on commerc
Slide 7: Midland Equipment Finance Portfolio Overview
Midland Equipment Finance Portfolio Overview Portfolio Characteristics Total Deferred (as of 3/31/21) Loans and Leases Nationwide portfolio providing financing solutions As of As of As of to equipment vendors and end-users 9/30/20 12/31/20 3/31/21 Total Outstanding $858.6 million Loans and Leases (1
Slide 8: Hotel/Motel Portfolio Overview
Hotel/Motel Portfolio Overview Portfolio Characteristics (CRE & C&I) (as of 3/31/21) Total Outstanding $167.0 million (3.4% of total loans) Number of Loans 46 Average Loan Size $3.6 million Largest Loan $11.3 million Average LTV 57% Total Deferred Loans as of 12/31/20 $82.6 million (45.8% of portfol
Slide 9: GreenSky Consumer Loan Portfolio Overview
GreenSky Consumer Loan Portfolio Overview Portfolio Characteristics Prime Credit (as of 3/31/21) Average FICO score of 771 $754.6 million Total Outstanding (15.4% of total loans) No losses to MSBI in 10 year history of portfolio Number of Loans 351,417 Portfolio can be sold to provide liquidit
Slide 10: Total Deposits
Total Deposits • Total deposits increased $239.5 million, or 4.7% from prior quarter, to $5.34 billion • Growth in deposits largely attributable to increase in demand deposits from commercial clients and retail deposits resulting from stimulus payments • $159 million of CDs maturing in 2Q21 with a w
Slide 11: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income decreased 3.1% from the prior quarter due to lower accretion income and lower PPP income • Net interest margin, excluding accretion income, was unchanged from prior quarter as a favorable shift in the mix of earning assets and a reduction in the avera
Slide 12: Wealth Management
Wealth Management • During 1Q21, assets under administration increased $79.7 million, primarily due to market performance • Wealth Management revenue increased 1.1% from prior quarter, primarily due to higher assets under administration and seasonal impact of fees related to tax preparation Assets U
Slide 13: Noninterest Income
Noninterest Income • Noninterest income increased 3.3% from prior quarter • Impairment on commercial MSRs impacted noninterest income by $1.3 million and $2.3 million in 1Q21 and 4Q20, respectively • Excluding the impact of the impairment of commercial MSRs, noninterest income decreased primarily du
Slide 14: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) • Efficiency Ratio (1) was 56.9% in 1Q21 vs. 58.6% in 4Q20 (Noninterest expense in millions) • Adjustments to non-interest expense: ($ in millions) 1Q21 4Q20 Integration and $53.9 62.2% acquisition related ($0.
Slide 15: Asset Quality
Asset Quality • Nonperforming loans declined $1.2 million due to resolution of long-term problem loans • NPLs/total loans increased to 1.08% from 1.06% at the end of the prior quarter due to the decline in total loan balances • Net charge-offs of $1.7 million, or 0.14% of average loans • Provision f
Slide 16: Changes in Allowance for Credit Losses
Changes in Allowance for Credit Losses ($ in thousands) Specific Portfolio Economic Reserves Changes Factors New loans Changes in credit Changes to macro- quality including economic variables risk downgrades and forecasts Changes to specific and deferrals Changes to other reserves Change
Slide 17: ACL by Portfolio
ACL by Portfolio ($ in thousands) Total Loans at % of Total Loans at % of Portfolio ACL ACL 3/31/21 Total Loans 12/31/20 Total Loans Commercial $ 808,262 $ 8,214 1.02% $ 937,382 $ 8,537 0.90% Warehouse Lines 205,115 - 0.00% 273,298 - 0.00% Commercial Other 766,632 9,125 1.19% 748,193 11,314 1.51% Eq
Slide 18: Outlook
Outlook • Improving economic conditions and stronger financial performance among borrowers impacted by the pandemic should lead to continued reductions in deferrals over next two quarters and relatively stable ACL/total loans • Growing loan pipeline should lead to stronger loan production and loan g
Slide 19: Appendix
APPENDIX Midland [=] States Bancorp, Inc.
Slide 20: Commercial Loans and Leases by Industry
Commercial Loans and Leases by Industry Industries as a percentage of Commercial, Other Services Wholesale Trade CRE and Equipment Finance Loans and Leases Health Care 3.3% 2.5% as of 3/31/21 3.7% RE / Rental & Leasing Trans. / Ground Passenger 19.5% 4.0% General Freight Trucking 4.6% Ag., Forestry,
Slide 21: Commercial Real Estate Portfolio by Collateral Type
Commercial Real Estate Portfolio by Collateral Type Collateral type as a percentage of the Industrial / Warehouse Commercial Real Estate and Construction 9.1% Office Portfolio as of 3/31/21 7.1% Hotel/Motel 9.3% Residential 1-4 Family 5.1% Farmland 4.2% Multi-Family 9.4% C-Store / Gas Station 3.7% M
Slide 22: Capital and Liquidity Overview
Capital and Liquidity Overview Capital Ratios Liquidity Sources (as of 3/31/21) (as of 3/31/21) 15.00% ($ in millions) 13.73% Cash and Cash Equivalents $ 631.2 Unpledged Securities 252.6 12.18% FHLB Committed Liquidity 645.2 11.15% 11.15% FRB Discount Window Availability 57.3 9.62% Primary Liquidity
Slide 23: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2021 2020 2020 2020 2020 Income before income taxes - G
Slide 24: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) Efficiency Ratio Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2021 2020 2020 2020 2020 Noninterest expense - GAAP $ 39,079 $ 47,0
Slide 25: Tangible Common Equity and Tangible Book Value Reconciliation
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 March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2021 2020
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