Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q1 2018 Earnings Presentation
16 slides from Midland States Bancorp's earnings presentation, 2018
Slide 1: Midland States Bancorp, Inc. First Quarter 2018 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI First Quarter 2018 Earnings Call
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 1Q18
Overview of 1Q18 Closed on February 28, 2018 Alpine Acquisition • Shifts business mix more towards community banking and wealth management Net income of $1.8 million, or $0.08 diluted EPS 1Q18 Earnings • Integration and acquisition expenses of $11.9 million, impacting EPS by $0.44 per diluted share
Slide 4: Loan Portfolio
Loan Portfolio • Total loans surpassed $4 billion due to addition of $791 million in loans from Alpine • Organic loan growth of $12 million or 1.5% annualized • Equipment lease portfolio increased $19 million • Pipeline for equipment financing has tripled since hiring of new team Loan Portfolio Mix
Slide 5: Total Deposits
Total Deposits • Total deposits increased to $4.23 billion due to addition of $1.1 billion in deposits from Alpine • Noninterest-bearing demand deposits increased to 24.5% of total deposits from 23.1% • With the acquisition of Alpine, retail deposits represent 54% of deposits in 1Q18 vs. 41% in 1Q17
Slide 6: Wealth Management
Wealth Management • Wealth Management group offers Trust and Estate services, Investment Management, Financial Planning and Employer Sponsored Retirement Plans • Alpine added $1.1 billion in assets under administration • Total revenue increased 17% from the prior quarter • Year-over-year organic gro
Slide 7: Love Funding – Commercial FHA Revenue
Love Funding – Commercial FHA Revenue Business Overview 1Q18 Highlights • Commercial FHA origination and servicing business • $80 million in rate locks for multifamily and healthcare facilities • Higher average gain on locks offsets decrease in • $18-$20 million in annual revenue from gain on loan v
Slide 8: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income increased due to one month contribution of Alpine • Net interest margin declined due to lower accretion income • Excluding the impact of accretion income, NIM was positively impacted by loan yields increasing more than funding costs, combined with enh
Slide 9: Non-Interest Income
Non-Interest Income • Fee generating businesses accounted for 30% of total revenue in 1Q18 • Non-interest income increased 19% due to the one month contribution of Alpine • Continued increase in wealth management revenue • Decline in residential mortgage banking revenue due to lower servicing income
Slide 10: Non-Interest Expense and Operating Efficiency
Non-Interest Expense and Operating Efficiency Non-Interest Expense and Efficiency Ratio1 • Efficiency Ratio1 was 68.5% (Non-Interest expense in millions) in 1Q18 vs. 64.6% in 4Q17 • Integration and acquisition related expenses $49.6 $48.4 $11.9 million in 1Q18 $2.7 million in 4Q17 $37.6 • Loss o
Slide 11: Asset Quality
Asset Quality • Stable asset quality in 1Q18 and modest net charge-offs • NPLs decline to 0.66% of total loans due to addition of Alpine portfolio • Provision for loan losses of $2.0 million in 1Q18 • ALL/total loans of 0.44% and credit marks/total loans of 0.65% at March 31, 2018 Non-performing Loa
Slide 12: Outlook
Outlook • Integration of Alpine expected to drive cost savings and improved efficiencies • Alpine system conversion scheduled for mid-July • Focus on liquidity and NIM will impact organic loan growth • Higher revenue and improved efficiencies expected to drive increased profitability • Revenue mix s
Slide 13: Appendix
APPENDIX
Slide 14: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Adjusted Earnings Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2018 2017 2017 2017 2017 Income before income taxes - GAAP $ 3,182
Slide 15: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Efficiency Ratio Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2018 2017 2017 2017 2017 Noninterest expense - GAAP $ 49,602 $ 36,192 $ 48,364 $ 37,644 $ 3
Slide 16: Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share As of and for the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2018 201
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