Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q2 2025 Earnings Presentation
22 slides from Midland States Bancorp's earnings presentation, Jul 24, 2025
Slide 1: Second Quarter 2025 Earnings Presentation
Midland States Bancorp, Inc. Second Quarter 2025 Earnings Presentation July 24, 2025
Slide 2: Forward Looking Statement
Forward Looking Statement 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 b
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 • Sold GreenSky loans, $50 million remaining exposure $4.2B Targeted Credit $7.1B $5.1B $5.9B • Reducing equipment finance exposure to target of Management Assets Loans Deposits AUM/A Efforts 10% of loans •
Slide 4: Second Quarter 2025 Highlights
Second Quarter 2025 Highlights Accelerated credit remediation: $65 million of non-performing loans exited through July 2025, pro-forma NPAs to assets of 1.15% 3.56% reported net interest margin, +7 bps LQ expansion driven by lower deposit cost of 2.19% (-10 bps LQ), new loan originations at ~6.8% St
Slide 5: Second Quarter 2025 Financial Summary
Second Quarter 2025 Financial Summary EPS • Fully diluted EPS of $0.44 for second quarter of 2025 • PPNR1 of $32.2 million, or $1.48 per share, increased 19% LQ PPNR1 • Net interest income of $58.7 million benefitted from -10bps LQ reduction in deposit costs • Non-interest income rose 7.3% LQ exclud
Slide 6: Second Quarter 2025 Results
Second Quarter 2025 Results Midland States Bancorp, Inc. ($ in millions, except per share data) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net Interest Income $ 58.7 $ 58.3 $ 58.6 $ 59.1 $ 58.9 Provision for Credit Losses 17.4 10.9 74.2 17.9 8.3 Total Noninterest Income 23.5 17.8 35.4 33.5 32.0 Total R
Slide 7: Strong Liquidity & Regulatory Capital
Strong Liquidity & Regulatory Capital 1.84X Liquidity Coverage $2,616 Abundant Excess Liquidity $464 • $4.52 billion total insured deposits includes: $1,178 $1,423 ·Stable insured deposit base, brokered deposits only 2% of total deposits as of June 30, 2025 $797 ·$842 million of servicing deposits,
Slide 8: Targeted Credit Management Efforts Nearing Completion
Targeted Credit Management Efforts Nearing Completion Q2 2025 Overview Action Current Status • Portfolio originated by FinTech • Strategic decision to exit these portfolios • Remaining BaaS partners LendingPoint & portfolio: Non-Core GreenSky • Completed sale of GreenSky portfolio $54M Loan • Unsecu
Slide 9: 2Q25 Non-Performing Asset Update
2Q25 Non-Performing Asset Update Dollars in thousands Top 9 relationships comprise 59.9% and 51.2% of the total NPA’s at 12/31/24 & 6/30/2025 Balance Balance Balance Loan Segment 4Q 2024 1Q 2025 2Q 2025 Notes Loan 1 CRE - Multifamily - Florida $16,262 $16,262 $14,938 Note sold July 2025 Loan 2 CRE -
Slide 10: Improving Credit, Strong Community Bank Trends
Improving Credit, Strong Community Bank Trends Dollars in millions 2Q 2024 3Q 2024 4Q 2024 1Q 2025 2Q 2025 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-6 Acceptable $4,393 75% $4,276 75% $4,259 82% $4,157 83% $4,238 84% 7 Special Mention 29 1% 88 2% 101 2% 68 1% 84 2% 8-9 Substand
Slide 11: Loan Portfolio (as of June 30, 2025)
Loan Portfolio (as of June 30, 2025) • Total loans increased $46.6 million from prior quarter to $5.06 billion • Community Bank increased $58.9 million from prior quarter, offset by the intentional decline of the specialty finance and equipment finance portfolios • Decrease in non-core portfolios pa
Slide 12: Loan Segments (as of June 30, 2025)
Loan Segments (as of June 30, 2025) • Total loans in our Community Bank increased $58.9 million from prior quarter to $3.32 billion • Loans in Southern region increased $66.3 million or 37% annualized in 2Q25 • Focused on core, in-market loan relationships • Continuing to add talent in faster growin
Slide 13: Total Deposits (as of June 30, 2025)
Total Deposits (as of June 30, 2025) • Total deposits increased $10.5 million from prior quarter, primarily using an increase in money market balances to reduce brokered deposits • Retail checking deposit averages per account pulled back from the Q1 high after-tax refund season and was largely offse
Slide 14: Deposit Segments (as of June 30, 2025)
Deposit Segments (as of June 30, 2025) • Retail and commercial deposits remained relatively stable from prior quarter • Public funds increased $128 million while servicing deposits decreased $57 million due to seasonal factors • Total brokered deposits decreased $109 million in 2Q25, reducing higher
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 ‒ 30% of assets reprice within 3 months as of June 30, 2025 ‒ 69% of our liabilities reprice within 3 month as of June 30, 2025 • Loan Strategy: Focused on originating
Slide 16: Wealth Management Contribution
Wealth Management Contribution Quarterly Performance • Assets under administration increased $80 million mainly due to market performance • Wealth Management fees increased due to additional trust and estate fees collected in the quarter • Continual hiring of wealth advisors positively impacting new
Slide 17: Financial Outlook
Financial Outlook • Stable total assets near-term • NIM expansion as short-term rates lower • Reduced credit costs in 2026 • Community Bank Focus • Growing regulatory capital • Unchanged focus on efficiency 17
Slide 18: Appendix
Appendix
Slide 19: ACL By Portfolio
ACL By Portfolio ($ in thousands) June 30, 2025 March 31, 2025 Net ACL % of Total Net ACL % of Total Portfolio Loans Charge-offs ACL Loans Loans Charge-offs ACL Loans Commercial $1,073,578 $ 50 $ 10,467 0.97% $ 772,876 $ 51 $ 10,230 1.32% Commercial Other 470,808 5,098 23,712 5.04% 496,686 12,751 23
Slide 20: Investment Portfolio (as of June 30, 2025)
Investment Portfolio (as of June 30, 2025) Fair Value of Investments by Type • All Investments are classified as Available for Sale • Average T/E Yield is 5.04% for 2Q25 • Effective Duration is 4.0 years $1.35 billion • Purchased $36.9 million with T/E Yield of 6.02% in 2Q25 Investment Mix & Investm
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations MIDLAND STATES BANKCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Efficiency Ratio Reconciliation For the Three Months Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2025 2025 2024 2024 2024 Noninterest expense - GA
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For the Three Months Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands, expect per share data) 2025 2025 2024 2024 2024 I
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