Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q1 2026 Earnings Presentation
23 slides from Midland States Bancorp's earnings presentation, Apr 23, 2026
Slide 1: Midland States Bancorp, Inc. First Quarter 2026 Earnings Presentation
Midland States Bancorp, Inc. First Quarter 2026 Earnings Presentation April 23, 2026
Slide 2: Forward Looking Statements
Forward Looking Statements Forward-Looking Statements: Statements made in this presentation which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans, objectives, or go
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 $6.5B $4.3B Growing • Invest in team and technology to grow and deepen $5.4B $4.5B relationships Commercial Assets Loans Deposits AUM/A Banking • Focus on higher growth St. Louis & greater Chicago markets Bu
Slide 4: First Quarter 2026 Highlights
First Quarter 2026 Highlights 3.91% net interest margin; increased 17 bps due to 14 bp decline in deposit costs to 1.81%, a favorable shift in securities mix and 2 bp increase in loan yield; new loan originations at ~6.6% Strong Community Bank trends: loans increased $68.8 million, or 8.3% annualize
Slide 5: First Quarter 2026 Financial Summary
First Quarter 2026 Financial Summary • Fully diluted EPS of $0.74 for first quarter of 2026 EPS • Adjusted diluted EPS1 of $0.79 • Adjusted PPNR1 of $30.5 million, or 1.91% on average assets Adjusted PPNR 1 • Net interest income of $57.4 million benefited from 14 bp reduction in deposit costs • Noni
Slide 6: First Quarter 2026 Results
First Quarter 2026 Results (dollars in millions, except for per share data) As of and for the Three Months Ended March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Net interest income $ 57.4 $ 58.7 $ 61.1 $ 58.7 $ 58.3 Provision for credit losses 5.0 11.6 20.0 17.4 10.9
Slide 7: Strong Liquidity & Regulatory Capital
Strong Liquidity & Regulatory Capital 2.08X Liquidity Coverage Abundant Excess Liquidity • $4.24 billion total insured deposits $2,213 • 16.8% liquidity on balance sheet (Cash & Investment $332 Securities) $872 • Stable insured deposit base, brokered time deposits less $1,207 than 1% of total deposi
Slide 8: Loan Portfolio
Loan Portfolio • Loans decreased $13.4 million from prior quarter to $4.34 billion, driven by anticipated runoff within our specialty finance and non-core portfolios • Community Bank balances increased $68.8 million, supported by continued growth in commercial clients with full banking relationships
Slide 9: Loan Segments
Loan Segments • Total loans in our Community Bank increased $68.8 million, or 8.3% annualized, to $3.40 billion, concentrated in our Northern and Eastern regions • Commercial pipelines remain strong and unfunded commitments increased in our Community Bank • Recently added talent across the franchise
Slide 10: Credit Management Update
Credit Management Update Q1 2026 Overview Action Financial Impact • Portfolios originated by Fintech • Strategic decision to exit these portfolios: • Remaining third partners GreenSky & party portfolio: LendingPoint • Sold substantially all of the MEF $60.2M 1 Non-Core • Retained Midland Equipment p
Slide 11: Non-Performing Asset Update
Non-Performing Asset Update (dollars in thousands) Balance Balance Balance Balance Balance Loan Segment 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 Notes Loan 1 CRE - Multifamily - Florida $ 16,262 $ — $ — $ — $ — Note sold Q3 2025 Loan 2 CRE - Multifamily - Wisconsin 13,659 716 716 — — Property sold Q2
Slide 12: Improving Credit, Strong Community Bank Trends
Improving Credit, Strong Community Bank Trends (dollars in millions) 1Q 2025 2Q 2025 3Q 2025 4Q 2025 1Q 2026 Risk Rating Balance % Balance % Balance % Balance % Balance % 1-6 Acceptable $4,157 83% $4,238 84% $4,104 84% $3,613 83% $3,613 83% 7 Special Mention 68 1% 84 2% 79 2% 63 2% 52 1% 8 Substanda
Slide 13: Total Deposits
Total Deposits • Total deposits increased $15.7 million compared to prior quarter primarily due to an increase in money markets of $46.8 million and checking of $31.0 million, offset by decreases in time deposits of $43.7 million and non- interest bearing of $26.6 million • Reduced higher cost fundi
Slide 14: Deposit Segments
Deposit Segments • Community Bank deposits increased, driven largely by increases in existing retail and commercial accounts • High-cost brokered deposit balances continue to decrease • Retail and small business growth initiative continue to generate new customers with focus on full banking relation
Slide 15: Neutral Rate Positioning Supports Margin Stability
Neutral Rate Positioning Supports Margin Stability • Bank well positioned for rate changes with modest liability sensitive position: • 31% of assets reprice within 3 months as of March 31, 2026 • 68% of our liabilities reprice within 3 month as of March 31, 2026 • Loan Strategy: Focused on originati
Slide 16: Wealth Management Contribution
Wealth Management Contribution Quarterly Performance: • Assets under administration remained stable at $4.47 billion compared to $4.48 billion LQ • Wealth Management fees were relatively flat at $8.2 million compared to LQ • 2025 hiring of wealth advisors positively impacted new business development
Slide 17: Noninterest Income
Noninterest Income • Noninterest income declined $4.8 million compared to LQ, which included an additional $6.6 million in credit enhancement income as a result of contractual changes in our third-party lending and servicing arrangement in Q4 • Wealth Management revenue remained fairly stable QoQ •
Slide 18: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense & Efficiency Ratio 1 (in millions) • Efficiency Ratio 1 was 62.17% in 1Q 2026 vs. 63.01% in 4Q 2025 $203.0 • Near-term operating expense run-rate expected to be approximately $50.0 to $51.0 million/quarter • 1Q 2025 includes $154.0 mil
Slide 19: Financial Outlook
Financial Outlook • Stable total assets near-term • Focus on relationship community banking • Growing regulatory capital • Continued focus on efficiency • Reduced credit costs in 2026 19
Slide 20: Appendix
Appendix
Slide 21: ACL By Portfolio Segment
ACL By Portfolio Segment (dollars in thousands) March 31, 2026 December 31, 2025 Net ACL % of Total Net ACL % of Total Portfolio Loans Charge-offs ACL Loans Loans Charge-offs ACL Loans COMMERCIAL: Commercial $1,109,478 $ (367) $ 9,864 0.89 % $1,062,691 $ 1,035 $ 10,355 0.97 % Commercial Other 1 107,
Slide 22: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) Adjusted Earnings Reconciliation For the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2026 2025 2025 2025 2025 Income (loss) before income tax expense (benefit) - GAAP $ 24,112 $ (3,248)
Slide 23: Non-GAAP Reconciliations (unaudited)
Non-GAAP Reconciliations (unaudited) Efficiency Ratio Reconciliation For the Three Months Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2026 2025 2025 2025 2025 Noninterest expense - GAAP $ 50,424 $ 77,192 $ 49,814 $ 49,992 $ 203,005 Loss on sale of loan portfo
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