Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q2 2019 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, Jul 25, 2019
Slide 1: Midland States Bancorp, Inc. Second Quarter 2019 Earnings Call
1 Midland States Bancorp, Inc. NASDAQ: MSBI Second Quarter 2019 Earnings Call
Slide 2: Forward-Looking Statements
2 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 acq
Slide 3: Overview of 2Q19
3 Overview of 2Q19 3 Solid Execution on Strategic Priorities 2Q19 Earnings HomeStar Acquisition • Continued strong production in equipment financing • Diverse business lines generating strong contributions of noninterest income • Efficiency ratio (1) improves to 61.6% from 64.7% in prior quarter • C
Slide 4: Loan Portfolio
4 2Q 2019 1Q 2019 2Q 2018 Commercial loans and leases $ 1,149 $ 1,123 $ 991 Commercial real estate 1,524 1,560 1,711 Construction and land development 250 239 248 Residential real estate 552 569 602 Consumer 597 601 544 Total Loans $ 4,074 $ 4,092 $ 4,096 $4,096 $4,156 $4,138 $4,092 $4,074 2Q 2018 3
Slide 5: Total Deposits
5 2Q 2019 1Q 2019 2Q 2018 Noninterest - bearing demand $ 902 $ 941 $ 1,002 Interest - bearing: Checking 1,009 969 1,025 Money market 733 802 844 Savings 442 457 461 Time 785 686 638 Brokered time 140 181 191 Total Deposits $ 4,011 $ 4,036 $ 4,160 $4,160 $4,143 $4,074 $4,036 $4,011 2Q 2018 3Q 2018 4Q
Slide 6: Wealth Management
6 $5.32 $5.47 $5.65 $4.95 $5.50 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 $3,189 $3,218 $2,945 $3,097 $3,126 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 • Total Wealth Management revenue increased 11.1% from the prior quarter • Increase attributable to an increase in trust fees • During 2Q19, assets under
Slide 7: Net Interest Income/Margin
7 $5.5 $1.7 $4.3 $2.5 $3.4 $46.1 $48.3 $45.1 $48.5 $45.6 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 NII Accretion Income 0.40% 0.10% 0.31% 0.17% 0.25% 3.76% 3.91% 3.59% 3.85% 3.73% 2Q 2018 3Q 2018 4Q 2018 1Q 2019 2Q 2019 NIM Accretion Income • Net interest income and margin increased due to higher accr
Slide 8: Noninterest Income
8 Noninterest Income 8 • 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 Noni
Slide 9: Noninterest Expense and Operating Efficiency
9 Noninterest Expense and Operating Efficiency 9 • Efficiency Ratio (1) was 61.6% in 2Q19 vs. 64.7% in 1Q19 • Adjustments to non - interest expense: • Excluding these adjustments, noninterest expense decreased 1.3% on a linked - quarter basis • Decrease in noninterest expense primarily attributable
Slide 10: Asset Quality
10 Asset Quality NCO / Average Loans 10 • 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% an
Slide 11: Outlook
11 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 l
Slide 12: Appendix
APPENDIX Midland [=]
Slide 13: Adjusted Earnings Reconciliation
13 13 Adjusted Earnings Reconciliation (dollars in thousands, except per share data) Income before income taxes - GAAP $ 21,394 $ 18,336 $ 20,863 $ 10,933 $ 15,827 Adjustments to noninterest income: Gain (loss) on sales of investment securities, net 14 - 469 - (70) Other (23) - (1) (12) (48) Total a
Slide 14: Efficiency Ratio Reconciliation
14 14 Efficiency Ratio Reconciliation (dollars in thousands) Noninterest expense - GAAP $ 40,194 $ 41,097 $ 45,375 $ 50,317 $ 46,452 Gain (loss) on mortgage servicing rights held for sale 515 - - (270) (188) Integration and acquisition expenses (286) (160) (553) (9,559) (2,019) Adjusted noninterest
Slide 15: Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
15 15 Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share (dollars in thousands, except per share data) Shareholders' Equity to Tangible Common Equity Total shareholders' equity—GAAP $ 639,888 $ 624,168 $ 608,525 $ 594,146 $ 592,535 Adjustments: Preferred stock (2,684)
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