Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q2 2018 Earnings Presentation
16 slides from Midland States Bancorp's earnings presentation, 2018
Slide 1: Midland States Bancorp, Inc. Second Quarter 2018 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI Second Quarter 2018 Earnings Call
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 express management’s current expectations, forecasts of future events or long-term goals, and may be based upon beliefs, expectations and
Slide 3: Overview of 2Q18
Overview of 2Q18 Net income of $12.8 million, or $0.52 diluted EPS 2Q18 Earnings • Integration and acquisition expenses of $2.0 million • Adjusted earnings1 of $0.59 per diluted share First full quarter with Alpine’s operations Positive Impact • Positive impact on earnings from Alpine • Ahead of sch
Slide 4: Loan Portfolio
Loan Portfolio • Organic loan growth of $67 million or 6.6% annualized • Strongest growth in equipment financing, consumer lending and residential real estate • Equipment financing balances increased $38.1 million from March 31, 2018 Production booked within either commercial or lease financing po
Slide 5: Total Deposits
Total Deposits • Total deposits decreased $74 million to $4.16 billion • Decline in DDA primarily attributable to normal fluctuations in servicing deposits • Decline in interest-bearing deposits primarily attributable to reduction in time and brokered deposits Deposit Mix Total Deposits (in millions
Slide 6: Wealth Management
Wealth Management • Wealth Management group offers Trust and Estate services, Investment Management, Financial Planning and Employer Sponsored Retirement Plans • Full quarter impact of Alpine’s wealth management group drove increase in revenue • Total revenue increased 30% from the prior quarter and
Slide 7: Love Funding – Commercial FHA Review
Love Funding – Commercial FHA Review • Change in leadership Jon Camps, Senior Vice President, promoted to President of Love Funding Reporting to Jeff Mefford, President of Midland States Bank • Expense levels adjusted for new revenue expectations Approximately $2.0 million in annualized cost s
Slide 8: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income increased due to full quarter contribution of Alpine • Net interest margin increased due to higher accretion income • Excluding the impact of accretion income, net interest margin was relatively unchanged • Scheduled accretion income: $3.1 million in
Slide 9: Non-Interest Income
Non-Interest Income • Non-interest income declined 4.0% due to drop in commercial FHA revenue • All other major fee generating areas increased primarily due to full quarter contribution of Alpine • Increase in residential mortgage banking revenue driven by seasonal strength Non-Interest Income (in m
Slide 10: Non-Interest Expense and Operating Efficiency
Non-Interest Expense and Operating Efficiency Non-Interest Expense and Efficiency Ratio1 • Efficiency Ratio1 was 67.8% in (Non-Interest expense in millions) 2Q18 vs. 68.5% in 1Q18 • Integration and acquisition $49.6 related expenses $48.4 $46.6 $2.0 million in 2Q18 $2.2 $11.9 million in 1Q18 $11
Slide 11: Asset Quality
Asset Quality • Stable asset quality in 2Q18 and modest net charge-offs • Slight increase in non-performing loans • Provision for loan losses of $1.9 million in 2Q18 • ALLL/total loans of 0.45% and credit marks/total loans of 0.81% at June 30, 2018 Non-Performing Loans / Total Loans NCO / Average Lo
Slide 12: Outlook
Outlook • Continued discipline in balance sheet growth to manage liquidity and protect net interest margin • Alpine system conversion completed in mid-July • Completion of Alpine integration expected to drive additional cost savings and improved efficiencies • Well positioned to deliver additional e
Slide 13: Appendix
APPENDIX
Slide 14: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Adjusted Earnings Reconciliation For the Quarter Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2018 2018 2017 2017 2017 Income before income taxes - GAAP $ 15,827
Slide 15: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Efficiency Ratio Reconciliation For the Quarter Ended June 30, March 31, December 31, September 30, June 30, (dollars in thousands) 2018 2018 2017 2017 2017 Noninterest expense - GAAP $ 46,553 $ 49,602 $ 36,192 $
Slide 16: Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share As of June 30, March 31, December 31, September 30, June 30, (dollars in thousands, except per share data) 2018 2018 2017 2017 201
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