Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q4 2025 Earnings Presentation
24 slides from Midland States Bancorp's earnings presentation, Jan 22, 2026
Slide 1: Midland States Bancorp, Inc. Fourth Quarter 2025 Earnings Presentation
Midland States Bancorp, Inc. Fourth Quarter 2025 Earnings Presentation January 22, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements: Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securit
Slide 3: Building a High Performing, Tech-Forward Community Bank
Building a High Performing, Tech-Forward Community Bank Where We Are Today Where We’re Going • Sale of substantially all our equipment finance Targeted Credit portfolio completed in Q4 $6.5B $4.4B $5.4B $4.5B • Reducing specialty finance exposure to target of Management Assets Loans Deposits AUM/A E
Slide 4: Fourth Quarter 2025 Highlights
Fourth Quarter 2025 Highlights Continued credit remediation: reduced non-performing assets by $4.3 million in Q4 which includes the sale of substantially all the equipment finance portfolio, NPAs to assets at 1.02% 3.74% net interest margin; excluding interest recoveries, margin increased 5 bps driv
Slide 5: Fourth Quarter 2025 Financial Summary
Fourth Quarter 2025 Financial Summary • Fully diluted EPS of ($0.24) for fourth quarter of 2025 EPS • Adjusted diluted EPS1 of $0.53 • Adjusted PPNR1 of $31.4 million, or 1.85% on average assets Adjusted PPNR1 • Net interest income of $58.7 million benefitted from -17bps LQ reduction in deposit cost
Slide 6: Fourth Quarter 2025 Results
Fourth Quarter 2025 Results Midland States Bancorp, Inc. ($ in millions, except per share data) Q4 2025 Q3 2025 Q2 2025 Q1 2025 Q4 2024 Net Interest Income $ 58.7 $ 61.1 $ 58.7 $ 58.3 $ 58.6 Provision for Credit Losses 11.6 20.0 17.4 10.9 74.2 Total Noninterest Income 26.9 20.0 23.5 17.8 35.4 Total
Slide 7: Strong Liquidity & Regulatory Capital
Strong Liquidity & Regulatory Capital 2.08X Liquidity Coverage Abundant Excess Liquidity $2,404 • $4.27 billion total insured deposits includes: $349 • Stable insured deposit base, brokered time $1,114 deposits less than 1% of total deposits as $1,157 of Dec 31, 2025 $813 • $498 million of servicing
Slide 8: Targeted Credit Management Efforts Nearing Completion
Targeted Credit Management Efforts Nearing Completion Q4 2025 Overview Action Current Status • Portfolios originated by Fintech • Strategic decision to exit these portfolios • Remaining third partners party portfolio: Non-Core • Unsecured portfolios which have • Completed sale of GreenSky portfolio
Slide 9: 4Q25 Non-Performing Asset Update
4Q25 Non-Performing Asset Update Dollars in thousands Balance Balance Balance Balance Loan Segment 1Q 2025 2Q 2025 3Q 2025 4Q 2025 Notes Loan 1 CRE - Multifamily - Florida $16,262 $- $- $- Note sold July 2025 Loan 2 CRE - Multifamily - Wisconsin 13,659 - - - Property sold Q2 Loan 3 CRE - Multifamily
Slide 10: Improving Credit, Strong Community Bank Trends
Improving Credit, Strong Community Bank Trends Dollars in millions 4Q 2024 1Q 2025 2Q 2025 3Q 2025 4Q 2025 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-6 Acceptable $4,259 82% $4,157 83% $4,238 84% $4,104 84% $3,613 83% 7 Special Mention 101 2% 68 1% 84 2% 79 2% 63 2% 8 Substandar
Slide 11: Loan Portfolio (as of December 31, 2025)
Loan Portfolio (as of December 31, 2025) • Loans decreased $515.6 million from prior quarter to $4.35 billion, primarily driven by the sale of substantially all the equipment finance portfolio • Decrease in non-core portfolios partially offset by new loan production from high quality commercial clie
Slide 12: Loan Segments (as of December 31, 2025)
Loan Segments (as of December 31, 2025) • Sold substantially all the equipment finance portfolio in the current quarter • Total loans in our Community Bank increased $53.7 million, or 6.5% annualized to $3.33 billion • Loans in Eastern region increased $44.1 million, or 19.0% annualized • Commercial
Slide 13: Total Deposits (as of December 31, 2025)
Total Deposits (as of December 31, 2025) • Total deposits decreased $180.4 million from prior quarter primarily due to seasonal reduction in checking of $141.2 million and reduction in high-cost time deposits of $55.8 million, offset by $24.5 million increase in noninterest-bearing demand • Reduced
Slide 14: Deposit Segments (as of December 31, 2025)
Deposit Segments (as of December 31, 2025) • Community Bank deposits decreased due to declines in commercial and public funds, while retail accounts posted solid growth • Continued to reduce high cost brokered deposits • Retail and small business growth initiative continues to generate new clients w
Slide 15: Neutral Rate Positioning Supports Above-Peer Margin
Neutral Rate Positioning Supports Above-Peer Margin • Bank well positioned for rate changes with modest liability sensitive position ‒ 31% of assets reprice within 3 months as of December 31, 2025 ‒ 69% of our liabilities reprice within 3 month as of December 31, 2025 • Loan Strategy: Focused on ori
Slide 16: Wealth Management Contribution
Wealth Management Contribution Quarterly Performance • Assets under administration increased $115 million mainly due to market performance • Wealth Management fees increased due to additional trust and estate fees collected in the quarter • Continued hiring of wealth advisors positively impacting ne
Slide 17: Noninterest Income
Noninterest Income • Noninterest income rose from the prior quarter largely due to an additional $6.6 million in credit enhancement income reflecting contractual changes in our third-party lending and servicing arrangements • Wealth Management revenue rose $0.3 million sequentially; another record q
Slide 18: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense & Efficiency Ratio1 • Efficiency Ratio1 was 63.1% in 4Q 2025 vs. (in millions) 61.3% in 3Q 2025 250 • 4Q25 Noninterest Expenses includes: 78.0% $203.0 • $23.0 million loss on sale of loans 200 • $2.5 million additional FDIC assessments
Slide 19: Financial Outlook
Financial Outlook • Lower credit costs in 2026 • Focus on growing Community Bank • Continue to build regulatory capital • Ongoing focus on efficiency • Expanding fee income through deeper core relationships 19
Slide 20: Appendix
Appendix
Slide 21: ACL By Portfolio
ACL By Portfolio ($ in thousands) December 31, 2025 September 30, 2025 Net ACL % of Total Net ACL % of Total Portfolio Loans Charge-offs ACL Loans Loans Charge-offs ACL Loans Commercial $1,062,691 $1,035 $10,355 0.97% $1,038,821 ($279) $8,752 0.84% Commercial Other 115,830 17,515 13,321 11.50% 437,7
Slide 22: Investment Portfolio (as of December 31, 2025)
Investment Portfolio (as of December 31, 2025) Fair Value of Investments by Type • All Investments are classified as Available for Sale • Average T/E Yield is 4.57% for 4Q25 • Effective Duration is 3.8 years $1.52 billion • Purchased $232 million with T/E Yield of 4.83% in 4Q25 Investment Investment
Slide 23: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) 23
Slide 24: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) 24
Midland States Bancorp — Q4 2025 Earnings Presentation on 6ix