Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q3 2019 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, Oct 24, 2019
Slide 1: Midland States Bancorp, Inc. Third Quarter 2019 Earnings Call
1 Midland States Bancorp, Inc. NASDAQ: MSBI Third 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 3Q19
3 Overview of 3Q19 3 Solid Execution on Strategic Priorities 3Q19 Earnings Capital Management • Strong inflows of core deposits – growth of $153.2 million • Efficiency ratio (1) improved to 60.6% from 61.6% in prior quarter • Relatively stable net interest margin (excluding accretion income) • Issua
Slide 4: Loan Portfolio
4 3Q 2019 2Q 2019 3Q 2018 Commercial loans and leases $ 1,293 $ 1,149 $ 1,035 Commercial real estate 1,622 1,524 1,712 Construction and land development 216 250 239 Residential real estate 588 552 586 Consumer 610 597 584 Total Loans $ 4,329 $ 4,074 $ 4,156 $4,156 $4,138 $4,092 $4,074 $4,329 3Q 2018
Slide 5: Total Deposits
5 3Q 2019 2Q 2019 3Q 2018 Noninterest - bearing demand $ 1,015 $ 902 $ 991 Interest - bearing: Checking 1,223 1,009 1,047 Money market 754 733 836 Savings 527 442 446 Time 833 785 634 Brokered time 94 140 189 Total Deposits $ 4,445 $ 4,011 $ 4,143 $4,143 $4,074 $4,036 $4,011 $4,445 3Q 2018 4Q 2018 1
Slide 6: Wealth Management Revenue and Assets Under Administration
6 $5.47 $5.65 $4.95 $5.50 $6.00 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 $3,218 $2,945 $3,097 $3,126 $3,281 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 • During 3Q19, assets under administration increased $155.4 million, primarily due to the addition of HomeStar’s assets under administration • Total Weal
Slide 7: Net Interest Income/Margin
7 $1.7 $4.3 $2.5 $3.4 $3.1 $49.5 $45.1 $48.5 $45.6 $46.1 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 NII Accretion Income 0.10% 0.31% 0.17% 0.25% 0.20% 3.70% 3.59% 3.85% 3.73% 3.76% 3Q 2018 4Q 2018 1Q 2019 2Q 2019 3Q 2019 NIM Accretion Income • Net interest income increased 7.3%, primarily due to contri
Slide 8: Noninterest Income
8 Noninterest Income 8 • Noninterest income unchanged from prior quarter • Wealth management remains largest single contributor to noninterest income • Commercial FHA revenue negatively impacted by $1.1 million MSR impairment Noninterest Income (in millions) $18.3 $21.2 $17.1 $19.6 $19.6 3Q 2018 4Q
Slide 9: Noninterest Expense and Operating Efficiency
9 Noninterest Expense and Operating Efficiency 9 • Efficiency Ratio (1) was 60.6% in 3Q19 vs. 61.6% in 2Q19 • Adjustments to non - interest expense: • Excluding these adjustments, noninterest expense increased 5.9% on a linked - quarter basis • Increase in noninterest expense primarily attributable
Slide 10: Asset Quality
10 Asset Quality NCO / Average Loans 10 • Net charge - offs for 3Q19 was 0.49% of average loans on an annualized basis, driven by the resolution of nonperforming loans • Provision for loan losses of $4.4 million in 3Q19 includes an additional $2.3 million specific reserve allocated to an existing no
Slide 11: Outlook
11 Outlook • Focus on integrating HomeStar acquisition and fully capitalizing on synergies • All cost savings from HomeStar acquisition expected to be phased in by start of 2020 • Additional branch consolidation efforts will further enhance efficiencies • Continue to generate low - single - digit or
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 $ 16,670 $ 21,394 $ 18,336 $ 20,863 $ 10,933 Adjustments to noninterest income: Gain on sales of investment securities, net 25 14 - 469 - Other - (23) - (1) (12) Total adjustments t
Slide 14: Efficiency Ratio Reconciliation
14 14 Efficiency Ratio Reconciliation (dollars in thousands) Noninterest expense - GAAP $ 48,025 $ 40,194 $ 41,097 $ 45,375 $ 50,317 Gain (loss) on mortgage servicing rights held for sale 70 515 - - (270) Integration and acquisition expenses (5,292) (286) (160) (553) (9,559) Adjusted noninterest exp
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 $ 655,522 $ 639,888 $ 624,168 $ 608,525 $ 594,146 Adjustments: Preferred stock - (2,684
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