Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q3 2025 Earnings Presentation
22 slides from Midland States Bancorp's earnings presentation, Oct 30, 2025
Slide 1: Midland States Bancorp, Inc. Third Quarter 2025 Earnings Presentation
Midland States Bancorp, Inc. Third Quarter 2025 Earnings Presentation October 30, 2025
Slide 2: Forward Looking Statement
Forward Looking Statement 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 Securiti
Slide 3: Building a High Performing, Tech-Forward Community Bank
Building a High Performing, Tech-Forward Community Bank Where We Are Today Where We’re Going • Ceased originations of equipment finance $4.4B Targeted Credit $6.9B $4.9B $5.6B • Reducing specialty finance exposure to target of Management less than 10% of loans Assets Loans Deposits AUM/A Efforts • O
Slide 4: Third Quarter 2025 Highlights
Third Quarter 2025 Highlights Continued credit remediation: reduced non-performing assets by $11.4 million in Q3, NPAs to assets decreased to 1.02% from 1.15% 3.79% reported net interest margin, 3.69% excluding a $1.6 million interest recovery; driven by 7bp decline in deposit costs to 2.12%, new lo
Slide 5: Third Quarter 2025 Financial Summary
Third Quarter 2025 Financial Summary EPS • Fully diluted EPS of $0.24 for third quarter of 2025 • PPNR1 of $31.3 million, or $1.43 per share PPNR1 • Net interest income of $61.1 million benefitted from -7bps LQ reduction in deposit costs • Non-interest income rose 2.9% LQ excluding credit enhancemen
Slide 6: Third Quarter 2025 Results
Third Quarter 2025 Results Midland States Bancorp, Inc. ($ in millions, except per share data) Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Net Interest Income $ 61.1 $ 58.7 $ 58.3 $ 58.6 $ 59.1 Provision for Credit Losses 20.0 17.4 10.9 74.2 17.9 Total Noninterest Income 20.0 23.5 17.8 35.4 33.5 Total R
Slide 7: Strong Liquidity & Regulatory Capital
Strong Liquidity & Regulatory Capital 2.01X Liquidity Coverage $2,393 Abundant Excess Liquidity $388 $1,190 • $4.41 billion total insured deposits includes: $1,048 ·Stable insured deposit base, brokered deposits $791 only 1% of total deposits as of Sep 30, 2025 $166 ·$499 million of servicing deposi
Slide 8: Targeted Credit Management Efforts Nearing Completion
Targeted Credit Management Efforts Nearing Completion Q3 2025 Overview Action Current Status • Portfolios originated by Fintech • Strategic decision to exit these portfolios • Remaining third partners party portfolio: Non-Core • Unsecured portfolios which have • Completed sale of GreenSky portfolio
Slide 9: 3Q25 Non-Performing Asset Update
3Q25 Non-Performing Asset Update Dollars in thousands Balance Balance Balance Loan Segment 1Q 2025 2Q 2025 3Q 2025 Notes Loan 1 CRE - Multifamily - Florida $16,262 $- $- Note sold July 2025 Loan 2 CRE - Multifamily - Wisconsin 13,659 - - Property Sold Q2 Loan 3 CRE - Multifamily - Florida 11,092 - -
Slide 10: Improving Credit, Strong Community Bank Trends
Improving Credit, Strong Community Bank Trends Dollars in millions 3Q 2024 4Q 2024 1Q 2025 2Q 2025 3Q 2025 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-6 Acceptable $4,276 75% $4,259 82% $4,157 83% $4,238 84% $4,104 84% 7 Special Mention 88 2% 101 2% 68 1% 84 2% 79 2% 8-9 Substand
Slide 11: Loan Portfolio (as of September 30, 2025)
Loan Portfolio (as of September 30, 2025) • Total loans decreased $167.7 million from prior quarter to $4.87 billion largely due to intentional reduction of the specialty finance and equipment finance portfolios • Decrease in non-core portfolios partially offset by new loan production from high qual
Slide 12: Loan Segments (as of September 30, 2025)
Loan Segments (as of September 30, 2025) • Total loans in our Community Bank decreased $39.2 million from prior quarter to $3.28 billion due to several large payoffs • Community Bank originated $129 million of new fundings, versus $182 million in 2Q25 • Loans in Eastern region increased $30.6 millio
Slide 13: Total Deposits (as of September 30, 2025)
Total Deposits (as of September 30, 2025) • Total deposits decreased $342.1 million from prior quarter primarily due to reduction in high-cost servicing deposits of $286.8 million and $85.5 million of brokered time deposits • Reduced higher cost funding and managing deposit rates resulted in 7 bps d
Slide 14: Deposit Segments (as of September 30, 2025)
Deposit Segments (as of September 30, 2025) • Community Bank deposits rose, with solid growth in commercial accounts, while retail and public funds were down slightly • Wealth deposits down mainly due to changes in investment strategy • Retail and small business growth initiative resulted in 607 new
Slide 15: Neutral Rate Positioning Supports Above-Peer Margin
Neutral Rate Positioning Supports Above-Peer Margin • Bank well positioned for rate changes with modest liability sensitive position ‒ 30% of assets reprice within 3 months as of September 30, 2025 ‒ 68% of our liabilities reprice within 3 month as of September 30, 2025 • Loan Strategy: Focused on o
Slide 16: Wealth Management Contribution
Wealth Management Contribution Quarterly Performance • Assets under administration increased $183 million mainly due to market performance • Wealth Management fees increased due to additional trust and estate fees collected in the quarter • Continued hiring of wealth advisors positively impacting ne
Slide 17: Financial Outlook
Financial Outlook • Lowering credit costs in 2026 • Continued focus on growing Community Bank • Building regulatory capital • Continued focus on efficiency • Expanding fee income through deeper core relationships 17
Slide 18: Appendix
Appendix
Slide 19: ACL By Portfolio
ACL By Portfolio ($ in thousands) September 30, 2025 June 30, 2025 Net ACL % of Total Net ACL % of Total Portfolio Loans Charge-offs ACL Loans Loans Charge-offs ACL Loans Commercial $1,038,821 ($279) $8,752 0.84% $1,073,578 $ 50 $ 10,467 0.97% Commercial Other 437,712 3,262 30,287 6.92% 470,808 5,09
Slide 20: Investment Portfolio (as of September 30, 2025)
Investment Portfolio (as of September 30, 2025) Fair Value of Investments by Type • All Investments are classified as Available for Sale • Average T/E Yield is 4.73% for 3Q25 • Effective Duration is 4.0 years $1.38 billion • Purchased $172.0 million with T/E Yield of 5.09% in 3Q25 Investment Mix & I
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Efficiency Ratio Reconciliation For the Three Months Ended Septem ber 30, June 30, March 31, Decem ber 31, Septem ber 30, (dollars in thousands) 2025 2025 2025 2024 2024 Noninterest expen
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For the Three Months Ended Septem ber 30, June 30, March 31, Decem ber 31, Septem ber 30, (dollars in thousands, expect per share data) 2025 2025 2025 202
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