Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q4 2019 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, January 2020
Slide 1: Fourth Quarter 2019 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI Fourth 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 4Q19
Overview of 4Q19 • Net income of $12.8 million, or $0.51 diluted EPS 4Q19 Earnings • 4Q19 results include a $1.6 million, or $0.05 per diluted share, MSR valuation adjustment in the commercial FHA business • Adjusted earnings (1) of $0.64 per diluted share excludes: • $3.3 million in integration and
Slide 4: Loan Portfolio
Loan Portfolio • Total loans increased $72.6 million to $4.40 billion, or 6.7% on an annualized basis • Increase primarily attributable to growth in commercial and consumer portfolios; partially offset by a decline in the commercial real estate portfolio • Equipment finance balances increased $66.8
Slide 5: Total Deposits
Total Deposits • Total deposits increased $99.1 million to $4.54 billion, or 8.8% on an annualized basis • Growth in deposits attributable to increase of $130.9 million in core deposits, primarily from commercial customers • Continued intentional run-off of brokered time deposits Deposit Mix Total D
Slide 6: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income decreased 1.5% • Excluding the impact of accretion income, net interest margin declined 17 basis points due to: • 8 basis point impact from increased volume of subordinated debt; • 7 basis point impact from increased volume and lower rate earned on ca
Slide 7: Wealth Management
Wealth Management • During 4Q19, assets under administration increased $128.7 million, primarily due to improved market performance • Total Wealth Management revenue decreased 10.4% from the prior quarter • Decrease primarily attributable to lower estate fees Assets Under Administration Wealth Manag
Slide 8: Noninterest Income
Noninterest Income • Noninterest income decreased 3.0% from prior quarter • 4Q19 noninterest income included $0.6 million in net gain on sales of investment securities • Commercial FHA revenue negatively impacted by $1.6 million MSR impairment, compared to $1.1 million MSR impairment in prior quarte
Slide 9: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) • Efficiency Ratio (1) was 59.5% in 4Q19 vs. 60.6% in 3Q19 (Noninterest expense in millions) • Adjustments to non-interest expense: $48.0 $46.3 $45.4 ($ in millions) 4Q19 3Q19 $0.6 $5.2 $41.1 $5.2 Integration a
Slide 10: Asset Quality
Asset Quality • General improvement in asset quality as nonperforming loans/total loans and net charge- offs/average loans both declined from prior quarter • Provision for loan losses of $5.3 million in 4Q19 includes a $1.4 million specific reserve allocated to an existing nonperforming loan • ALLL/
Slide 11: Outlook
Outlook • Continue to generate low-single-digit organic loan growth and further improve deposit mix • Fully capitalize on synergies from HomeStar acquisition • Complete branch consolidation plan and leverage technology investments to drive additional efficiencies throughout the organization • Contin
Slide 12: Appendix
APPENDIX Midland [=] States Bancorp, Inc.
Slide 13: Reconciliations of Non-GAAP Financial Measures: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Adjusted Earnings Reconciliation For the Quarter Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2019 2019 2019 2019 2018 Income before income taxes - GAAP $ 16,
Slide 14: Reconciliations of Non-GAAP Financial Measures: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Efficiency Ratio Reconciliation For the Quarter Ended December 31, September 30, June 30, March 31, December 31, (dollars in thousands) 2019 2019 2019 2019 2018 Noninterest expense - GAAP $ 46,325 $ 48,025 $ 40,1
Slide 15: Tangible Common Equity to Tangible Assets Ratio 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 December 31, September 30, June 30, March 31, December 31, (dollars in thousands, except per share data) 2019 2019 2019 2019
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