Midland States Bancorp, Inc. · NASDAQ:MSBI
Midland States Bancorp — Q1 2019 Earnings Presentation
15 slides from Midland States Bancorp's earnings presentation, 2019
Slide 1: First Quarter 2019 Earnings Call
Midland States Bancorp, Inc. NASDAQ: MSBI First Quarter 2019 Earnings Call 1
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, including with respect to pending acquisitions,
Slide 3: Overview of 1Q19
Overview of 1Q19 • Net income of $14.0 million 1Q19 Earnings • Diluted EPS of $0.57 • Book value per share increased 2.3% to $26.08 Strong Capital • Tangible book value per share (1) increased 4.0% to $17.68 Generation • Significant increases in all capital ratios • Prudent balance sheet management
Slide 4: Loan Portfolio
Loan Portfolio • Total loans declined $45.4 million, or 1.1%, to $4.09 billion • Decline in commercial real estate partially offset by continued growth in commercial loans and leases • Equipment loan and lease financings increased $57.5 million, or 15.3%, from December 31, 2018 Loan Portfolio Mix To
Slide 5: Total Deposits
Total Deposits • Total deposits decreased $37.9 million, or 0.9%, to $4.04 billion • Decline in deposits primarily attributable to: Outflows of commercial deposits Decrease in public funds Deposit Mix Total Deposits (in millions, as of quarter-end) (in millions, as of quarter-end) $4,234 $4,160
Slide 6: Wealth Management
Wealth Management • Total Wealth Management revenue declined 12.4% from the prior quarter • Decline attributable to higher estate fees and other one-time revenue items recorded in 4Q18 • During 1Q19, assets under administration increased $152.0 million, primarily due to market performance Assets Und
Slide 7: Net Interest Income/Margin
Net Interest Income/Margin • Net interest income and margin declined due to lower accretion income • Excluding the impact of accretion income, net interest margin increased 2 bps • Average rate on new and renewed loans was 5.70% • Expected scheduled accretion income: $2.1 million in 2Q19; $8.1 milli
Slide 8: Noninterest Income
Noninterest Income • Noninterest income decreased 19.3% from prior quarter • Wealth management remains largest single contributor to noninterest income • Commercial FHA revenue of $3.3 million remained within projected range despite impact of government shutdown in 1Q19 Noninterest Income (in millio
Slide 9: Noninterest Expense and Operating Efficiency
Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (1) • Efficiency Ratio (1) was 64.7% (Noninterest expense in millions) in 1Q19 vs. 65.5% in 4Q18 • Integration and acquisition related expenses $50.3 $49.5 $0.2 million in 1Q19 $46.5 $45.4 $0.6 million in 4Q18
Slide 10: Asset Quality
Asset Quality • Increase in nonperforming loans primarily attributable to the downgrade of one commercial real estate loan and one residential real estate loan • Net charge-offs for 1Q19 was 0.10% of average loans on an annualized basis • Provision for loan losses of $3.2 million in 1Q19 • ALLL/tota
Slide 11: Outlook
Outlook • Continued execution on protecting margin and controlling expenses resulting in solid financial performance • Low-single-digit organic loan growth expected in 2019 • Organic loan growth closely linked to core deposit growth • HomeStar acquisition will provide additional liquidity that can b
Slide 12: Appendix
APPENDIX Midland [=] States Bancorp, Inc.
Slide 13: Adjusted Earnings Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Adjusted Earnings Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2019 2018 2018 2018 2018 Income before income taxes - GAAP $ 18,336
Slide 14: Efficiency Ratio Reconciliation
MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (continued) Efficiency Ratio Reconciliation For the Quarter Ended March 31, December 31, September 30, June 30, March 31, (dollars in thousands) 2019 2018 2018 2018 2018 Noninterest expense - GAAP $ 41,097 $ 45,375 $ 50,317
Slide 15: 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 March 31, December 31, September 30, June 30, March 31, (dollars in thousands, except per share data) 2019 2018 2018 2018 20
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