Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q4 2018 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, January 2019
Slide 1: Fourth Quarter 2018 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI Fourth Quarter 2018 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 express management’s current expectations, forecasts of future events or long-term goals, and may be based upon beliefs, expectations and
Slide 3: Overview of 4Q18
Overview of 4Q18 Net income of $16.3 million, or $0.67 diluted EPS 4Q18 Earnings • Return on average assets of 1.14% • Return on average shareholders’ equity of 10.81% • Return on average tangible common equity (1) of 16.40% • Book value per share increased 2.2% to $25.50 Strong Capital • Tangible b
Slide 4: Loan Portfolio
Loan Portfolio • Total loans declined $18.7 million • Decline in commercial real estate partially offset by continued growth in commercial loans and leases, and consumer lending • Equipment loan and lease financings increased $64.7 million, or 20.8%, from September 30, 2018 with full year 2018 growt
Slide 5: Total Deposits
Total Deposits • Total deposits decreased $69.0 million to $4.07 billion • Decline in deposits attributable to: Intentional run-off of brokered deposits Outflows of public funds Normal fluctuations in servicing deposits Deposit Mix Total Deposits (in millions, as of quarter-end) (in millions,
Slide 6: Wealth Management
Wealth Management • Total Wealth Management revenue increased 3.4% from the prior quarter • Increase in revenue primarily driven by a higher level of revenue generated from estate fees • During 4Q18, assets under administration declined $272.9 million primarily due to market performance Assets Under
Slide 7: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income and margin increased due to higher accretion income • Excluding the impact of accretion income, net interest margin increased 5 bps • Average rate on new and renewed loans increased 34 basis points from prior quarter • Expected scheduled accretion inc
Slide 8: Noninterest Income
Noninterest Income • Noninterest income increased 15.9% from prior quarter • Wealth management remains largest single contributor to noninterest income • Commercial FHA revenue of $4.2 million included $1.4 million recapture of MSR impairment • Higher level of revenue in community banking fees, whic
Slide 9: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) • Efficiency Ratio (1) was 65.5% (Noninterest expense in millions) in 4Q18 vs. 63.0% in 3Q18 • Integration and acquisition related expenses $49.5 $50.3 $0.6 million in 4Q18 $46.5 $45.4 $9.6 million in 3Q18
Slide 10: Asset Quality
Asset Quality • Increase in nonperforming loans primarily attributable to the downgrade of three commercial real estate loans • Net charge-offs for 4Q18 was 0.21% of average loans on an annualized basis, while net charge-offs for full year 2018 was 0.13% • Provision for loan losses of $3.5 million i
Slide 11: Outlook
Outlook • Continued implementation of balance sheet management and fee income generation strategies utilized in 2018 • Loan production will remain focused on areas with most attractive risk- adjusted yields • Acquisition strategy focused on tuck-in opportunities in near-term • Focused on harvesting
Slide 12: Appendix
APPENDIX Midland [=] States Bancorp, Inc.
Slide 13: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Adjusted Earnings Reconciliation For the Quarter Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2018 2018 2018 2018 2017 Income before income taxes - GAAP $ 20,
Slide 14: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Efficiency Ratio Reconciliation For the Quarter Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2018 2018 2018 2018 2017 Noninterest expense - GAAP $ 45,375 $ 50,317 $ 46,4
Slide 15: Tangible Common Equity and Tangible Book Value Per Share
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continue d) Tangible Common Equity to Tangible Asse ts Ratio and Tangible Book Value Pe r Share As of De ce mbe r 31, Se pte mbe r 30, June 30, March 31, De ce mbe r 31, (dollars in thousands, except per share data) 2018 20
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