Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q2 2019 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, 2019
Slide 1: Second Quarter 2019 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI Second 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 2Q19
Overview of 2Q19 • Net income of $16.4 million 2Q19 Earnings • Diluted EPS of $0.67 • Book value per share increased 2.2% to $26.66 Strong Capital • Tangible book value per share (1) increased 3.8% to $18.36 Generation • Continued increases in all capital ratios • Continued strong production in equi
Slide 4: Loan Portfolio
Loan Portfolio • Total loans declined $18.6 million, or 0.5%, to $4.07 billion • Decline in commercial real estate and residential real estate partially offset by continued growth in commercial loans and leases • Equipment finance balances increased $74.0 million, or 17.1%, from March 31, 2019 Loan
Slide 5: Total Deposits
Total Deposits • Total deposits decreased $25.1 million, or 0.6%, to $4.01 billion • Decline in deposits primarily attributable to intentional reduction of brokered money market deposits of $70.5 million and brokered time deposits of $41.2 million • Core funding deposit campaigns replaced the majori
Slide 6: Wealth Management
Wealth Management • Total Wealth Management revenue increased 11.1% from the prior quarter • Increase attributable to an increase in trust fees • During 2Q19, assets under administration increased $28.8 million, primarily due to market performance Assets Under Administration Wealth Management Revenu
Slide 7: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income and margin increased due to higher accretion income • Excluding the impact of accretion income, net interest margin decreased 5 bps, primarily due to higher average deposit costs • Average rate on new and renewed loans was 5.61% • Expected scheduled a
Slide 8: Noninterest Income
Noninterest Income • Noninterest income increased 14.7% from prior quarter • Wealth management remains largest single contributor to noninterest income • Commercial FHA revenue positively impacted by $0.6 million recapture of MSR impairment, lower loan costs and an increase in gain premiums Noninter
Slide 9: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) • Efficiency Ratio (1) was 61.6% in (Noninterest expense in millions) 2Q19 vs. 64.7% in 1Q19 • Adjustments to non-interest expense: $50.3 ($ in millions) 2Q19 1Q19 $46.5 $45.5 Integration and acquisition ($0.3)
Slide 10: Asset Quality
Asset Quality • Net charge-offs for 2Q19 was 0.12% of average loans on an annualized basis • Provision for loan losses of $4.1 million in 2Q19 includes a specific reserve related to one credit placed on non-accrual during the prior quarter • ALLL/total loans of 0.64% and credit marks/total loans of
Slide 11: Outlook
Outlook • Continued execution on protecting margin and controlling expenses resulting in solid financial performance • Low-single-digit organic loan growth expected in 2019 • HomeStar acquisition provides additional liquidity that will enhance our funding profile and increase flexibility in loan pro
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 June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2019 2019 2018 2018 2018 Income before income taxes - GAAP $ 21,394
Slide 14: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Efficiency Ratio Reconciliation For the Quarter Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2019 2019 2018 2018 2018 Noninterest expense - GAAP $ 40,194 $ 41,097 $ 45,375 $
Slide 15: Tangible Common Equity 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 June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2019 2019 2018 2018 201
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