Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q3 2019 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, 2019
Slide 1: Third Quarter 2019 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI Third Quarter 2019 Earnings Call 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 express management’s current expectations, forecasts of future events or long-term goals, including with respect to pending acquisitions,
Slide 3: Overview of 3Q19
Overview of 3Q19 • Net income of $12.7 million, or $0.51 diluted EPS 3Q19 Earnings • Integration and acquisition expenses of $5.3 million impacted net income by $0.15 per diluted share • Adjusted earnings(1) of $0.66 per diluted share • Closed on July 17, 2019 HomeStar Acquisition • System conversio
Slide 4: Loan Portfolio
Loan Portfolio • Total loans increased $255.3 million, or 6.3%, to $4.33 billion • Increase primarily attributable to addition of HomeStar loan portfolio • Organic loan growth of $44.1 million, or 1.1%, during 3Q19, primarily due to growth in commercial portfolio • Equipment finance balances increas
Slide 5: Total Deposits
Total Deposits • Total deposits increased $434.0 million, or 10.8%, to $4.45 billion • Increase in deposits primarily attributable to addition of HomeStar deposits • Organic deposit growth of $112.2 million, or 2.8%, during 3Q19, driven by $153.2 million increase in core deposits • Continued intenti
Slide 6: Wealth Management
Wealth Management • During 3Q19, assets under administration increased $155.4 million, primarily due to the addition of HomeStar’s assets under administration • Total Wealth Management revenue increased 9.0% from the prior quarter • Increase attributable to an increase in estate fees and the contrib
Slide 7: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income increased 7.3%, primarily due to contribution from HomeStar • Excluding the impact of accretion income, net interest margin was relatively unchanged • Average rate on new and renewed loans was 5.39% • Expected scheduled accretion income: $2.4 million
Slide 8: Noninterest Income
Noninterest Income • 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) $21.2 $19.6 $19.6 $18.3 $17.1 3Q 2018 4Q 2018
Slide 9: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) • Efficiency Ratio (1) was 60.6% in (Noninterest expense in millions) 3Q19 vs. 61.6% in 2Q19 • Adjustments to non-interest expense: $50.3 $48.0 ($ in millions) 3Q19 2Q19 $45.5 Integration and acquisition ($5.3)
Slide 10: Asset Quality
Asset Quality • 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 nonperforming loan • ALLL/tota
Slide 11: Outlook
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 organic l
Slide 12: Appendix
APPENDIX Midland [=] States Bancorp, Inc.
Slide 13: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Adjusted Earnings Reconciliation For the Quarter Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2019 2019 2019 2018 2018 Income before income taxes - GAAP $ 16
Slide 14: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Efficiency Ratio Reconciliation For the Quarter Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2019 2019 2019 2018 2018 Noninterest expense - GAAP $ 48,025 $ 40,194 $ 41,
Slide 15: Tangible Common Equity and Tangible Book Value Per Share
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share As of September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2019 2019 2019 201
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