Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Merger or Acquisition (April 2019)
8 slides from Midland States Bancorp's merger presentation, Apr 3, 2019
Slide 1: Acquisition of HomeStar Financial Group, Inc.
1 Midland States Bancorp, Inc. Acquisition of HomeStar Financial Group, Inc. April 2, 2019
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements . Readers should note that in addition to the historical information contained herein, this presentation includes "forward - looking statements," including but not limited to statements about Midland States Bancorp, Inc . (the “Company”, “Midland States” or “MSBI”)’s e
Slide 3: Transaction Highlights
3 Transaction Highlights Strategically Attractive • Complements our Kankakee footprint (#1 pro forma deposit market share) with the addition of $375 million in assets • Valuable core deposit franchise with a low beta, 20 bps weighted average cost of deposits and excess liquidity (67% loans / deposit
Slide 4: HomeStar Bank Overview and Combined Branch Map
4 Headquarters Manteno, IL Total Assets $375,445 Gross Loans 222,654 Total Deposits 333,063 Loans / Deposits 66.9% % Core Deposits (2) 96.2% Bank-Level Equity $30,365 Holding Company TruPS + Accrued Interest 33,982 Consolidated Equity (see page 6 for adjustments) (3) (7,559) Bank-Level ROAA (tax-eff
Slide 5: HomeStar Deposit Franchise vs. Peers
5 Source: S&P Global Market Intelligence. HomeStar financials represent bank - level data. Financial data as of 12/31/18. Peer group represents all banks and thrifts headquartered in the Midwest with total assets between $300M and $500M, excluding merger targets. (1) Rank based on most recent quarte
Slide 6: Transaction Terms and Pricing Multiples
6 (1) Based on Midland’s closing price of $24.46 as of 4/1/19. (2) Refer to merger agreement for additional detail related to possible adjustments relating to delivery of consolidated equity at clos ing . (3) Represents consideration to HomeStar common shareholders ($9.9M) divided by consolidated ta
Slide 7: Purchase Accounting, Cost Savings and Pro Forma Capital
7 (1) Based on when pro forma tangible book value per share crosses over and begins to exceed projected standalone MSBI tangible bo ok value per share, inclusive of all transaction expenses. Purchase Accounting • $10.1 million gross credit mark on loan balances (~4.6% of loans / ~3.2x ALLL) • Intere
Slide 8: HomeStar Financial Summary, Loans and Deposits
8 Source: S&P Global Market Intelligence. Financials represent bank - level data. Financial data as of, or for the year ended 12/31/ 18. (1) Figures tax - effected at 35% in 2016 and 2017, and 24% in 2018. (2) Profitability metrics adjusted in 2016 and 2017 for a recognized DTA benefit and a DTA rev
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