Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q4 2024 Earnings Presentation
24 slides from Midland States Bancorp's earnings presentation, 2025
Slide 1: Fourth Quarter 2024 Earnings Presentation
Midland States Bancorp, Inc. NASDAQ: MSBI Fourth Quarter 2024 Earnings Presentation 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 expressing management’s current expectations, forecasts of future events or long-term goals may be based upon beliefs, expectations and a
Slide 3: Company Snapshot
Company Snapshot Founded in 1881, this Illinois state- chartered community bank focuses on in-market relationships while having national diversification through equipment finance. • 53 Branches in Illinois and Missouri • 16 successful acquisitions since 2008 Financial Highlights as of December 31, 2
Slide 4: Overview of 4Q24
Overview of 4Q24 • Net loss available to common shareholders of ($54.8 million), or ($2.52) diluted EPS Financial • Pre-tax, pre-provision earnings(1) of $21.5 million Performance • Strong noninterest income of $19.6 million Proactive Credit • Exited or agreed to exit portfolios with Lending Point a
Slide 5: Targeted Credit Management Efforts
Targeted Credit Management Efforts Addressing Credit Metrics to Improve Earnings & Liquidity in 2025 Overview Action Financial Impact • Portfolio originated by FinTech • Strategic decision to exit these portfolios partners LendingPoint & • Sold 100% of $87.1M LendingPoint portfolio Greensky Total NC
Slide 6: Capital Ratios and Strategy
Capital Ratios and Strategy • Capital initiatives result in capital levels consistent with prior years • Internal capital generated from strong profitability and slower balance sheet growth expected to raise CET1 ratio to 9.25-9.50% by the end of 2025 • Capital actions and strong profitability expec
Slide 7: Liquidity Overview
Liquidity Overview • Continue to see improvements in its committed liquidity capacity quarter over quarter and year over year • Internal guideline for additional brokered deposit capacity limited to 10% of total deposits Liquidity Sources (in millions) December 31, 2024 September 30, 2024 Cash and C
Slide 8: Loan Portfolio
Loan Portfolio • Total loans decreased $581.2 million from prior quarter to $5.17 billion • Decrease primarily driven by sale of Lending Point portfolio, transferring GreenSky portfolio to held for sale and the continual intentional decline in equipment finance portfolio • Decrease in non-core portf
Slide 9: Loan Segments
Loan Segments • Total loans in our Community Bank increased $24 million from prior quarter to $3.20 billion • Loans in St. Louis region increased $18 million or 8% annualized in 4Q24 • Focused on core, in-market loan relationships • Continuing to add talent in faster growing markets to drive quality
Slide 10: Total Deposits
Total Deposits • Total deposits decreased $59.6 million from prior quarter, primarily due to decreases in higher cost time deposits • Impact of new commercial deposit relationships offset seasonal outflow of commercial deposits resulting in a slight increase in noninterest-bearing demand deposits fr
Slide 11: Deposit Summary
Deposit Summary • Retail and commercial deposits remained relatively stable to slightly positive from prior quarter • Public funds and servicing deposits decreased $68 and $63 million due to seasonal factors • Total brokered deposits increased $82 million in 4Q24, limiting reliance on FHLB Advances
Slide 12: Investment Portfolio
Investment Portfolio Fair Value of Investments by Type As of December 31, 2024 7.5% 1.7% 6.6% • All Investments are classified as Available for Sale 5.7% US GSE & US Agency • Average T/E Yield is 4.73% for 4Q24 MBS - agency 8.4% • Average Duration is 4.87 years $1.21 billion MBS - non agency State &
Slide 13: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income increased from prior quarter due to expanded net interest margin • Net interest margin increased 9 bp to 3.19% as the decrease in the average cost of deposits exceeded the decrease in the average yield on earning assets • Average rate on new and renew
Slide 14: Loans & Securities - Repricing and Maturity
Loans & Securities - Repricing and Maturity Total Loans and Leases (net of unearned income)(1) (in millions) As of December 31, 2024 Repricing Term Rate Structure 3 mos or 3-12 1-3 3-5 5-10 10-15 Over 15 Floating Adjustable Fixed less mos years years years years years Total Rate Rate Rate Commercial
Slide 15: Wealth Management
Wealth Management • Assets under administration decreased $116 million mainly due to market performance and resolution of estates and trusts • Wealth Management fees increased due to additional trust and estate fees collected in the quarter • Continual hiring of wealth advisors positively impacting
Slide 16: Noninterest Income
Noninterest Income • Noninterest income increased from prior quarter. • Wealth Management revenue was $0.6 million higher from additional trust and estate fees • Service charges and interchange revenue increased $0.1 million in the current quarter • Income from limited partnership investments decrea
Slide 17: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) (Noninterest expense in millions) • Efficiency Ratio (1) was 71.4% in 4Q 2024 vs. 62.8% in 3Q 2024 $54.2 • 4Q24 Noninterest Expenses $47.5 $46.7 $44.5 $44.9 includes: ◦ $7.6 million MEF impairment on operating
Slide 18: Asset Quality
Asset Quality • Nonperforming loans increased from prior quarter • Net charge-offs to average loans was 7.23% driven by non-core consumer, equipment finance and specialty finance portfolios • Taking steps to improve asset quality through focus on relationship lending and tighter credit standards • F
Slide 19: ACL by Portfolio
ACL by Portfolio ($ in thousands) December 31, 2024 September 30, 2024 Net ACL % of Net ACL % of Portfolio Loans Charge-offs ACL Total Loans Loans Charge-offs ACL Total Loans Commercial $ 818,496 $ 9,353 $ 8,675 1.06 % $ 797,318 $ 14 $ 9,263 1.16 % Commercial Other 528,407 8,347 11,987 2.27 % 559,35
Slide 20: 2025 Outlook and Priorities
2025 Outlook and Priorities • The Company has made several key strategic decisions to improve credit quality and forward earnings: ◦ To focus on in-market lending opportunities with full relationships ◦ A more conservative underwriting criteria for the Specialty Finance Group and Equipment Finance ◦
Slide 21: Appendix
APPENDIX Midland [=]
Slide 22: Commercial Loans and Leases by Industry
Commercial Loans and Leases by Industry Other Services Health Care Retail Trade Wholesale Trade $101.0 $54.7 Industries as a percentage of ($s in millions) $168.6 $57.4 2.2% 1.2% Commercial, CRE and Equipment 3.6% 1.2% Finance Loans and Leases with outstanding balances of $4.63 billion General Freig
Slide 23: Commercial Real Estate Portfolio by Collateral Type
Commercial Real Estate Portfolio by Collateral Type ($s in millions) Mixed Use/Other Restaurant Medical Building Raw Land $107.1 $31.5 Collateral type as a percentage of $80.6 $23.1 C-Store/Gas Station 3.7% 1.1% the Commercial Real Estate and 2.8% 0.8% $65.0 Construction Portfolio with 2.2% outstand
Slide 24: Reconciliations of Non-GAAP Financial Measures: Efficiency Ratio
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Efficiency Ratio Reconciliation For the Quarter Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 (dollars in thousands) Noninterest expense - GAAP $ 54,183 $ 46,733 $ 47,4
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