Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q1 2022 Earnings Presentation
21 slides from Midland States Bancorp's earnings presentation, 2022
Slide 1: First Quarter 2022 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI First Quarter 2022 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 expressing management’s current expectations, forecasts of future events or long-term goals may be based upon beliefs, expectations and a
Slide 3: Overview of 1Q22 Earnings
Overview of 1Q22 • Net income of $20.7 million, or $0.92 diluted EPS • Pre-tax, pre-provision earnings(1) of $32.0 million 1Q22 Earnings • ROAA of 1.16%, ROATCE(1) of 17.84%, and Adjusted PTPP ROAA(1) of 1.79% all increased from prior year Another Strong • Total commercial and CRE loan production in
Slide 4: Loan Portfolio
Loan Portfolio • Total loans increased $315.2 million from prior quarter to $5.54 billion • Growth in CRE loans, equipment finance, conventional commercial loans, and consumer loans offset lower end-of-period balances on commercial FHA warehouse credit lines, residential real estate loans, and lower
Slide 5: Total Deposits
Total Deposits • Total deposits decreased $53.1 million from prior quarter to $6.06 billion • Decrease in deposits primarily attributable to fluctuations in end-of-period balances of commercial FHA servicing deposits • Decrease in noninterest-bearing deposits partially offset by increases in lower-c
Slide 6: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income increased 4.7% from the prior quarter due primarily to higher average loan balances and an increase in net interest margin • Net interest margin, excluding accretion income, increased 26 bps from prior quarter due primarily to the redeployment of exce
Slide 7: Wealth Management
Wealth Management • During 1Q22, assets under administration decreased $173.3 million, primarily due to market performance • Wealth Management revenue was consistent with prior quarter, as seasonal tax preparation fees offset the decrease in AUA Assets Under Administration Wealth Management Revenue
Slide 8: Noninterest Income
Noninterest Income • Noninterest income decreased 30.7% from prior quarter, which was positively impacted by a number of one-time items • Impairment on commercial MSRs impacted noninterest income by $0.4 million and $2.1 million in 1Q22 and 4Q21, respectively • Excluding the impact of the one-time i
Slide 9: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) • Efficiency Ratio (1) was 55.7% in 1Q22 vs. 52.6% in 4Q21 (Noninterest expense in millions) • Adjustments to non-interest expense: $55.0 70.0% ($ in millions) 1Q22 4Q21 $50.0 $48.9 Integration and $45.8 acquis
Slide 10: Asset Quality
Asset Quality • Nonperforming loans increased $10.3 million due to the addition of one commercial real estate loan where no loss is currently expected • Generally positive trends in the loan portfolio with continued upgrades of watch list loans • Net charge-offs of $2.3 million, or 0.17% of average
Slide 11: Changes in Allowance for Credit Losses
Changes in Allowance for Credit Losses ($ in thousands) Specific Portfolio Economic Reserves Changes Factors Changes to specific New loans Changes to macro- reserves economic variables Changes in credit and forecasts quality including risk ratings Changes to other economic Changes in qua
Slide 12: ACL by Portfolio
ACL by Portfolio ($ in thousands) Total Loans at % of Total Loans at % of Portfolio ACL ACL 3/31/22 Total Loans 12/31/21 Total Loans Commercial $ 796,498 $ 5,078 0.64% $ 770,670 $ 5,783 0.75% Warehouse Lines 83,999 - 0.00% 91,927 - 0.00% Commercial Other 641,628 7,543 1.18% 679,518 8,592 1.26% Equip
Slide 13: Outlook
Outlook • Loan pipeline remains very healthy and should support continued strong loan growth • Continued loan growth and asset sensitive balance sheet expected to drive further expansion in net interest margin as interest rates increase • Closing of FNBC branch acquisition in 2Q22 will provide addit
Slide 14: Appendix
APPENDIX Midland [=] States Bancorp, Inc.
Slide 15: Paycheck Protection Program Overview
Paycheck Protection Program Overview Paycheck Protection Program Paycheck Protection Program (as of 3/31/22) Loan Forgiveness Loans Outstanding $22.9 million As of 12/31/21 As of 3/31/22 Total Fees Earned $15.3 million Loans Submitted to SBA $342.4 million $362.7 million Fees Recognized in 1Q22 $1.1
Slide 16: Commercial Loans and Leases by Industry
Commercial Loans and Leases by Industry Industries as a percentage of Commercial, Wholesale Trade Other Services Health Care CRE and Equipment Finance Loans and Leases 3.1% 2.3% 2.0% with outstanding balances of $4.17 billion as of 3/31/22 Retail Trade 3.6% General Freight Trucking RE / Rental & Lea
Slide 17: Commercial Real Estate Portfolio by Collateral Type
Commercial Real Estate Portfolio by Collateral Type Collateral type as a percentage of the Hotel/Motel Commercial Real Estate and Construction 7.3% Office Portfolio with outstanding balances of Assisted Living 6.4% $2.30 billion as of 3/31/22 7.9% All Others 5.1% Farmland Industrial / Warehouse 3.1%
Slide 18: Capital and Liquidity Overview
Capital and Liquidity Overview Capital Ratios Liquidity Sources (as of 3/31/22) (as of 3/31/22) 15.00% ($ in millions) Cash and Cash Equivalents $ 332.3 Unpledged Securities 362.0 11.74% FHLB Committed Liquidity 1,007.1 10.73% FRB Discount Window Availability 64.8 9.99% 9.99% Total Estimated Liquidi
Slide 19: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2022 2021 2021 2021 2021 Income before income taxes - G
Slide 20: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) Efficiency Ratio Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2022 2021 2021 2021 2021 Noninterest expense - GAAP $ 40,884 $ 45,7
Slide 21: Tangible Common Equity and Tangible Book Value Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share As of March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2022 2021
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