08:01:54 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Midland States Bancorp, Inc. Announces 2022 First Quarter Results

2022-04-28 16:15 ET - News Release

Summary

  • Net income of $20.7 million, or $0.92 diluted earnings per share
  • Total loans increased 24.1% annualized
  • Net interest income increased 4.7% from prior quarter to $56.8 million
  • Net interest margin increased 25 basis points from prior quarter to 3.50%
  • Efficiency ratio improved to 55.73% from 57.14% in the first quarter of 2021

EFFINGHAM, Ill., April 28, 2022 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the "Company") today reported net income of $20.7 million, or $0.92 diluted earnings per share, for the first quarter of 2022. This compares to net income of $23.1 million, or $1.02 diluted earnings per share, for the fourth quarter of 2021, which included a $4.9 million FHLB advance prepayment fee and a $1.8 million gain on the termination of an interest rate swap. This also compares to net income of $18.5 million, or $0.81 diluted earnings per share, for the first quarter of 2021.

Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, "We executed very well in the first quarter, continuing to generate strong loan production while effectively managing expenses. Our banking teams are generating high quality lending opportunities across all asset classes, which resulted in 24% annualized growth in total loans. The strong loan production enabled us to redeploy our excess liquidity into the loan portfolio, drive a favorable shift in our mix of earning assets, and generate significant expansion in our net interest margin.

"Our loan pipeline remains very strong, which should enable us to continue to generate a high level of loan growth, drive additional expansion in our net interest margin, and further improve our earnings and level of profitability as we move through the year. While we continue to see good results from the efforts we have made to enhance our new business development capabilities, we are also making steady progress on our long-term initiatives to further enhance the value of the Midland franchise. Through consistent investment in our technology platform and the development of additional fintech partnerships, we are steadily expanding our Banking-as-a-Service capabilities, which we believe will become a meaningful contributor to further balance sheet and earnings growth in the years to come," said Mr. Ludwig.

Adjusted Earnings

Financial results for the fourth quarter of 2021 were impacted by $4.9 million in FHLB advance prepayment fees and a $1.8 million gain on the termination of an interest rate swap. Excluding these amounts and certain other income and expenses, adjusted earnings were $25.4 million, or $1.12 per diluted share, for the fourth quarter of 2021.

A reconciliation of adjusted earnings to net income according to accounting principles generally accepted in the United States ("GAAP") is provided in the financial tables at the end of this press release.

Net Interest Margin

Net interest margin for the first quarter of 2022 was 3.50%, compared to 3.25% for the fourth quarter of 2021. The Company's net interest margin benefits from accretion income on purchased loan portfolios, which contributed 3 and 4 basis points to net interest margin in the first quarter of 2022 and fourth quarter of 2021, respectively. Excluding the impact of accretion income, net interest margin increased 26 basis points from the fourth quarter of 2021, due primarily to a favorable shift in the mix of earning assets.

Relative to the first quarter of 2021, net interest margin increased from 3.45%. Accretion income on purchased loan portfolios contributed 8 basis points to net interest margin in the first quarter of 2021. Excluding the impact of accretion income, net interest margin increased 10 basis points from the first quarter of 2021, primarily due to a decrease in the cost of deposits.

Net Interest Income

Net interest income for the first quarter of 2022 was $56.8 million, an increase of 4.7% from $54.3 million for the fourth quarter of 2021. Accretion income associated with purchased loan portfolios totaled $0.6 million for the first quarter of 2022, compared to $0.8 million for the fourth quarter of 2021. Excluding accretion income, net interest income increased $2.7 million from the prior quarter, which was primarily due to higher average loan balances and an increase in net interest margin. PPP loan income totaled $1.2 million, including net loan origination fees of $1.1 million, in the first quarter of 2022, compared to $1.6 million, including net loan origination fees of $1.4 million, in the fourth quarter of 2021.

Relative to the first quarter of 2021, net interest income increased $5.0 million, or 9.6%. Accretion income for the first quarter of 2021 was $1.2 million. Excluding the impact of accretion income, net interest income increased due to higher average earning assets and a decrease in the cost of deposits. PPP loan income totaled $2.6 million, including net loan origination fees of $2.1 million, in the first quarter of 2021.

Noninterest Income

Noninterest income for the first quarter of 2022 was $15.6 million, a decrease of 30.7% from $22.5 million for the fourth quarter of 2021. Noninterest income for the fourth quarter of 2021 was positively impacted by $3.9 million in unrealized income on equity investments, a $1.8 million gain on the termination of an FHLB interest rate swap, and a $1.0 million gain on company-owned life insurance. Impairment on commercial MSRs negatively impacted noninterest income by $0.4 million and $2.1 million in the first quarter of 2022 and fourth quarter of 2021, respectively.

Relative to the first quarter of 2021, noninterest income increased 5.4% from $14.8 million. The increase was primarily attributable to higher levels of wealth management revenue, partially offset by a decline in residential mortgage banking revenue.

Wealth management revenue for the first quarter of 2022 was $7.1 million, which was consistent with the fourth quarter of 2021. Compared to the first quarter of 2021, wealth management revenue increased 20.4%, primarily due to the increase in assets under administration over the past year, including the acquisition of ATG Trust Company.

Noninterest Expense

Noninterest expense for the first quarter of 2022 was $40.9 million, compared with $45.8 million in the fourth quarter of 2021. Noninterest expense for the fourth quarter of 2021 included $4.9 million in FHLB advance prepayment fees and $0.2 million in integration and acquisition expenses. Excluding the FHLB advance prepayment fees and integration and acquisition expenses, noninterest expense was consistent with the fourth quarter of 2021.

Relative to the first quarter of 2021, noninterest expense increased 4.6% from $39.1 million, primarily due to higher salaries and employee benefits expense consistent with the overall growth of the Company.

Loan Portfolio

Total loans outstanding were $5.54 billion at March 31, 2022, compared with $5.22 billion at December 31, 2021, and $4.91 billion at March 31, 2021. The increase in total loans from December 31, 2021 was primarily attributable to higher balances of commercial real estate loans, partially offset by continued forgiveness of PPP loans.

Equipment finance balances increased $12.3 million from December 31, 2021 to $957.6 million at March 31, 2022.

Compared to loan balances at March 31, 2021, growth in equipment finance balances, other commercial loans, commercial real estate loans, and consumer loans was partially offset by declines in commercial FHA warehouse lines, PPP loans and residential real estate loans.

Deposits

Total deposits were $6.06 billion at March 31, 2022, compared with $6.11 billion at December 31, 2021, and $5.34 billion at March 31, 2021. The decrease in total deposits from the end of the prior quarter was primarily attributable to period-end fluctuations in commercial FHA servicing deposits.

Asset Quality

Nonperforming loans totaled $52.9 million, or 0.95% of total loans, at March 31, 2022, compared with $42.6 million, or 0.81% of total loans, at December 31, 2021. The increase in nonperforming loans was attributable to one commercial real estate loan where no loss is currently expected. At March 31, 2021, nonperforming loans totaled $52.8 million, or 1.08% of total loans.

Net charge-offs for the first quarter of 2022 were $2.3 million, or 0.17% of average loans on an annualized basis, compared to net charge-offs of $4.6 million, or 0.37% of average loans on an annualized basis, for the fourth quarter of 2021, and $1.7 million, or 0.14% of average loans on an annualized basis, for the first quarter of 2021.

The Company recorded a provision for credit losses on loans of $4.1 million for the first quarter of 2022, which was primarily related to the growth in total loans.

The Company's allowance for credit losses on loans was 0.96% of total loans and 100.0% of nonperforming loans at March 31, 2022, compared with 0.98% of total loans and 119.9% of nonperforming loans at December 31, 2021.

Capital

At March 31, 2022, Midland States Bank and the Company exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a ''well-capitalized'' financial institution, as summarized in the following table:



Bank Level
Ratios as of
Mar. 31, 2022
Consolidated
Ratios as of
Mar. 31, 2022

Minimum
Regulatory
Requirements (2)
Total capital to risk-weighted assets10.73%11.74%10.50%
Tier 1 capital to risk-weighted assets9.99%8.82%8.50%
Tier 1 leverage ratio9.03%7.96%4.00%
Common equity Tier 1 capital9.99%7.80%7.00%
Tangible common equity to tangible assets (1)NA6.43%NA

(1) A non-GAAP financial measure. Refer to page 15 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%.

Stock Repurchase Program

During the first quarter of 2022, the Company repurchased 43,010 shares of its common stock at a weighted average price of $25.77 under its stock repurchase program. As of March 31, 2022, the Company had $18.6 million remaining under the current stock repurchase authorization.

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 7:30 a.m. Central Time on Friday, April 29, 2022, to discuss its financial results. The call can be accessed via telephone at (877) 516-3531; conference ID: 1638388. A recorded replay can be accessed through May 6, 2022, by dialing (855) 859-2056; conference ID: 1638388.

A slide presentation relating to the first quarter 2022 financial results will be accessible prior to the scheduled conference call. This earnings release should be read together with the slide presentation. The slide presentation and webcast of the conference call can be accessed on the Webcasts and Presentations page of the Company's investor relations website at investors.midlandsb.com under the "News and Events" tab.

About Midland States Bancorp, Inc.

Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of March 31, 2022, the Company had total assets of approximately $7.34 billion, and its Wealth Management Group had assets under administration of approximately $4.04 billion. Midland provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include "Adjusted Earnings," "Adjusted Diluted Earnings Per Common Share," "Adjusted Pre-Tax, Pre-Provision Earnings," "Adjusted Return on Average Assets," "Adjusted Return on Average Shareholders' Equity," "Adjusted Return on Average Tangible Common Equity," "Adjusted Pre-Tax, Pre-Provision Return on Average Assets," "Efficiency Ratio," "Tangible Common Equity to Tangible Assets," "Tangible Book Value Per Share" and "Return on Average Tangible Common Equity." The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company's funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

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 Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company's plans, objectives, future performance, goals and future earnings levels. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the COVID-19 pandemic and its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic; changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; developments and uncertainty related to the future use and availability of some reference rates, such as the London Inter-Bank Offered Rate, as well as other alternative reference rates, and the adoption of a substitute; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACTS:
Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321
Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321
Douglas J. Tucker, SVP and Corporate Counsel, at dtucker@midlandsb.com or (217) 342-7321

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
For the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(dollars in thousands, except per share data)20222021202120212021
Earnings Summary
Net interest income$56,827$54,301$51,396$50,110$51,868
Provision for credit losses4,167467(184)(455)3,565
Noninterest income15,61322,52315,14317,41714,816
Noninterest expense40,88445,75741,29248,94139,079
Income before income taxes27,38930,60025,43119,04124,040
Income taxes6,6407,4935,883(1,083)5,502
Net income$20,749$23,107$19,548$20,124$18,538
Diluted earnings per common share$0.92$1.02$0.86$0.88$0.81
Weighted average shares outstanding - diluted22,350,30722,350,77122,577,88022,677,51522,578,553
Return on average assets1.16%1.26%1.15%1.20%1.11%
Return on average shareholders' equity12.80%14.04%11.90%12.59%12.04%
Return on average tangible common equity (1)17.84%19.69%16.76%17.85%17.28%
Net interest margin3.50%3.25%3.34%3.29%3.45%
Efficiency ratio (1)55.73%52.61%58.78%60.19%57.14%
Adjusted Earnings Performance Summary (1)
Adjusted earnings$20,815$25,416$19,616$19,755$18,434
Adjusted diluted earnings per common share$0.92$1.12$0.86$0.86$0.81
Adjusted return on average assets1.16%1.39%1.15%1.17%1.11%
Adjusted return on average shareholders' equity12.84%15.44%11.94%12.36%11.97%
Adjusted return on average tangible common equity17.89%21.65%16.82%17.52%17.18%
Adjusted pre-tax, pre-provision earnings$32,041$36,324$28,379$26,967$28,737
Adjusted pre-tax, pre-provision return on average assets1.79%1.98%1.67%1.60%1.73%
(1) Non-GAAP financial measures. Refer to pages 12 - 14 for a reconciliation to the comparable GAAP financial measures.


MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
For the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(in thousands, except per share data)20222021202120212021
Net interest income:
Interest income$62,748$60,427$58,490$58,397$60,503
Interest expense5,9216,1267,0948,2878,635
Net interest income56,82754,30151,39650,11051,868
Provision for credit losses:
Provision for credit losses on loans4,132---3,950
Provision for credit losses on unfunded commitments256388-(265)(535)
Provision for other credit losses(221)79(184)(190)150
Total provision for credit losses4,167467(184)(455)3,565
Net interest income after provision for credit losses52,66053,83451,58050,56548,303
Noninterest income:
Wealth management revenue7,1397,1767,1756,5295,931
Residential mortgage banking revenue5991,1031,2871,5621,574
Service charges on deposit accounts2,0682,3382,2681,9161,826
Interchange revenue3,2803,6773,6513,7973,375
Gain on sales of investment securities, net--160377-
Gain on termination of hedged interest swap-1,845--314
Impairment on commercial mortgage servicing rights(394)(2,072)(3,037)(1,148)(1,275)
Company-owned life insurance1,0191,904869863860
Other income1,9026,5522,7703,5212,211
Total noninterest income15,61322,52315,14317,41714,816
Noninterest expense:
Salaries and employee benefits21,87022,10922,17522,07120,528
Occupancy and equipment3,7553,4293,7013,7963,940
Data processing5,8735,8196,4956,2885,993
Professional1,9721,4991,7385,5492,185
Amortization of intangible assets1,3981,4251,4451,4701,515
Loss on mortgage servicing rights held for sale--79143-
FHLB advances prepayment fees-4,859-3,6698
Other expense6,0166,6175,6595,9554,910
Total noninterest expense40,88445,75741,29248,94139,079
Income before income taxes27,38930,60025,43119,04124,040
Income taxes6,6407,4935,883(1,083)5,502
Net income$20,749$23,107$19,548$20,124$18,538
Basic earnings per common share$0.92$1.03$0.86$0.88$0.81
Diluted earnings per common share$0.92$1.02$0.86$0.88$0.81



MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
As of
March 31,December 31,September 30, June 30,March 31,
(in thousands)20222021202120212021
Assets
Cash and cash equivalents$332,264$680,371$662,643$425,100$631,219
Investment securities858,246916,132900,319756,831690,390
Loans5,539,9615,224,8014,915,5544,835,8664,910,806
Allowance for credit losses on loans(52,938)(51,062)(55,675)(58,664)(62,687)
Total loans, net5,487,0235,173,7394,859,8794,777,2024,848,119
Loans held for sale8,93132,04526,62112,18755,174
Premises and equipment, net69,74670,79271,24171,80373,255
Other real estate owned11,53712,05911,93112,76820,304
Loan servicing rights, at lower of cost or fair value27,48428,86530,91634,57736,876
Goodwill161,904161,904161,904161,904161,904
Other intangible assets, net22,97624,37426,06527,90026,867
Cash surrender value of life insurance policies148,060148,378149,146148,277146,864
Other assets210,544195,146193,294201,461193,814
Total assets$7,338,715$7,443,805$7,093,959$6,630,010$6,884,786
Liabilities and Shareholders' Equity
Noninterest-bearing deposits$1,965,032$2,245,701$1,672,901$1,366,453$1,522,433
Interest-bearing deposits4,092,5073,864,9473,928,4753,829,8983,818,080
Total deposits6,057,5396,110,6485,601,3765,196,3515,340,513
Short-term borrowings60,35276,80366,66675,98571,728
FHLB advances and other borrowings310,171310,171440,171440,171529,171
Subordinated debt139,184139,091138,998138,906169,888
Trust preferred debentures49,52449,37449,23549,09448,954
Other liabilities76,95993,881139,66981,31789,065
Total liabilities6,693,7296,779,9686,436,1155,981,8246,249,319
Total shareholders' equity644,986663,837657,844648,186635,467
Total liabilities and shareholders' equity$7,338,715$7,443,805$7,093,959$6,630,010$6,884,786



MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
As of
March 31,December 31,September 30, June 30,March 31,
(in thousands)20222021202120212021
Loan Portfolio
Equipment finance loans$528,572$521,973$486,623$464,380$456,059
Equipment finance leases429,000423,280412,430407,161402,546
Commercial FHA warehouse lines83,99991,927180,248129,607205,115
SBA PPP loans22,86252,47782,410146,728211,564
Other commercial loans802,692783,811718,054683,365702,156
Total commercial loans and leases1,867,1251,873,4681,879,7651,831,2411,977,440
Commercial real estate2,114,0411,816,8281,562,0131,540,4891,494,031
Construction and land development188,668193,749200,792212,508191,870
Residential real estate329,331338,151344,414366,612398,501
Consumer1,040,7961,002,605928,570885,016848,964
Total loans$5,539,961$5,224,801$4,915,554$4,835,866$4,910,806
Deposit Portfolio
Noninterest-bearing demand$1,965,032$2,245,701$1,672,901$1,366,453$1,522,433
Interest-bearing:
Checking1,779,0181,663,0211,697,3261,619,4361,601,449
Money market964,352869,067852,836787,688819,455
Savings710,955679,115665,710669,277653,256
Time619,386630,583688,693721,502718,788
Brokered time18,79623,16123,91031,99525,132
Total deposits$6,057,539$6,110,648$5,601,376$5,196,351$5,340,513



MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
For the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(dollars in thousands)20222021202120212021
Average Balance Sheets
Cash and cash equivalents$384,231$685,655$525,848$509,886$350,061
Investment securities894,634915,707773,372734,462680,202
Loans5,274,0514,995,7944,800,0634,826,2344,992,802
Loans held for sale31,25634,27215,20436,29965,365
Nonmarketable equity securities36,37839,20343,87349,38855,935
Total interest-earning assets6,620,5506,670,6316,158,3606,156,2696,144,365
Non-earning assets631,187605,060597,153589,336602,017
Total assets$7,251,737$7,275,691$6,755,513$6,745,605$6,746,382
Interest-bearing deposits$3,953,249$3,913,475$3,895,970$3,815,179$3,757,108
Short-term borrowings70,04466,67768,10365,72775,544
FHLB advances and other borrowings311,282319,954440,171519,490617,504
Subordinated debt139,139139,046138,954165,155169,844
Trust preferred debentures49,45149,30749,16749,02648,887
Total interest-bearing liabilities4,523,1654,488,4594,592,3654,614,5774,668,887
Noninterest-bearing deposits1,989,4132,049,8021,434,1931,411,4281,370,604
Other noninterest-bearing liabilities81,83284,53877,20478,52182,230
Shareholders' equity657,327652,892651,751641,079624,661
Total liabilities and shareholders' equity$7,251,737$7,275,691$6,755,513$6,745,605$6,746,382
Yields
Earning Assets
Cash and cash equivalents0.18%0.16%0.16%0.11%0.11%
Investment securities2.22%2.12%2.34%2.43%2.51%
Loans4.40%4.36%4.42%4.43%4.50%
Loans held for sale2.86%3.53%2.79%2.88%2.74%
Nonmarketable equity securities5.40%5.07%5.05%4.94%4.93%
Total interest-earning assets3.87%3.62%3.79%3.83%4.02%
Interest-Bearing Liabilities
Interest-bearing deposits0.22%0.22%0.26%0.31%0.34%
Short-term borrowings0.14%0.12%0.12%0.12%0.13%
FHLB advances and other borrowings1.58%1.75%1.80%1.91%1.69%
Subordinated debt5.78%5.78%5.79%5.61%5.57%
Trust preferred debentures4.21%3.90%3.92%4.00%4.08%
Total interest-bearing liabilities0.53%0.54%0.61%0.72%0.75%
Cost of Deposits0.15%0.15%0.19%0.23%0.25%
Net Interest Margin3.50%3.25%3.34%3.29%3.45%



MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
As of and for the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(dollars in thousands, except per share data)20222021202120212021
Asset Quality
Loans 30-89 days past due$29,044$17,514$16,772$20,224$24,819
Nonperforming loans52,90042,58054,62061,36352,826
Nonperforming assets66,16457,06869,26176,92675,004
Net charge-offs2,2554,6132,9894,0231,706
Loans 30-89 days past due to total loans0.52%0.34%0.34%0.42%0.51%
Nonperforming loans to total loans0.95%0.81%1.11%1.27%1.08%
Nonperforming assets to total assets0.90%0.77%0.98%1.16%1.09%
Allowance for credit losses to total loans0.96%0.98%1.13%1.21%1.28%
Allowance for credit losses to nonperforming loans100.07%119.92%101.93%95.60%118.67%
Net charge-offs to average loans0.17%0.37%0.25%0.33%0.14%
Wealth Management
Trust assets under administration$4,044,138$4,217,412$4,058,168$4,077,581$3,560,427
Market Data
Book value per share at period end$29.26$30.11$29.64$28.96$28.43
Tangible book value per share at period end (1)$20.87$21.66$21.17$20.48$19.98
Market price at period end$28.86$24.79$24.73$26.27$27.74
Shares outstanding at period end22,044,62622,050,53722,193,14122,380,49222,351,740
Capital
Total capital to risk-weighted assets11.74%12.19%13.10%13.11%13.73%
Tier 1 capital to risk-weighted assets8.82%9.16%9.73%9.64%9.62%
Tier 1 common capital to risk-weighted assets7.80%8.08%8.55%8.44%8.39%
Tier 1 leverage ratio7.96%7.75%8.16%8.00%7.79%
Tangible common equity to tangible assets (1)6.43%6.58%6.80%7.12%6.67%
(1) Non-GAAP financial measures. Refer to pages 12 - 14 for a reconciliation to the comparable GAAP financial measures.


MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
Adjusted Earnings Reconciliation
For the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(dollars in thousands, except per share data)20222021202120212021
Income before income taxes - GAAP$27,389$30,600$25,431$19,041$24,040
Adjustments to noninterest income:
Gain on sales of investment securities, net--160377-
Gain on termination of hedged interest rate swap-1,845--314
Other income---(27)75
Total adjustments to noninterest income-1,845160350389
Adjustments to noninterest expense:
Loss on mortgage servicing rights held for sale--79143-
FHLB advances prepayment fees-4,859-3,6698
Integration and acquisition expenses911711763,771238
Total adjustments to noninterest expense915,0302557,583246
Adjusted earnings pre tax27,48033,78525,52626,27423,897
Adjusted earnings tax6,6658,3695,9106,5195,463
Adjusted earnings - non-GAAP$20,815$25,416$19,616$19,755$18,434
Adjusted diluted earnings per common share$0.92$1.12$0.86$0.86$0.81
Adjusted return on average assets1.16%1.39%1.15%1.17%1.11%
Adjusted return on average shareholders' equity12.84%15.44%11.94%12.36%11.97%
Adjusted return on average tangible common equity17.89%21.65%16.82%17.52%17.18%
Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
For the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(dollars in thousands)20222021202120212021
Adjusted earnings pre tax - non-GAAP$27,480$33,785$25,526$26,274$23,897
Provision for credit losses4,167467(184)(455)3,565
Impairment on commercial mortgage servicing rights3942,0723,0371,1481,275
Adjusted pre-tax, pre-provision earnings - non-GAAP$32,041$36,324$28,379$26,967$28,737
Adjusted pre-tax, pre-provision return on average assets1.79%1.98%1.67%1.60%1.73%



MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
Efficiency Ratio Reconciliation
For the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(dollars in thousands)20222021202120212021
Noninterest expense - GAAP$40,884$45,757$41,292$48,941$39,079
Loss on mortgage servicing rights held for sale--(79)(143)-
FHLB advances prepayment fees-(4,859)-(3,669)(8)
Integration and acquisition expenses(91)(171)(176)(3,771)(238)
Adjusted noninterest expense$40,793$40,727$41,037$41,358$38,833
Net interest income - GAAP$56,827$54,301$51,396$50,110$51,868
Effect of tax-exempt income369372402383386
Adjusted net interest income57,19654,67351,79850,49352,254
Noninterest income - GAAP15,61322,52315,14317,41714,816
Impairment on commercial mortgage servicing rights3942,0723,0371,1481,275
Gain on sales of investment securities, net--(160)(377)-
Gain on termination of hedged interest rate swap-(1,845)--(314)
Other---27(75)
Adjusted noninterest income16,00722,75018,02018,21515,702
Adjusted total revenue$73,203$77,423$69,818$68,708$67,956
Efficiency ratio55.73%52.61%58.78%60.19%57.14%



MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (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)20222021202120212021
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity-GAAP$644,986$663,837$657,844$648,186$635,467
Adjustments:
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(22,976)(24,374)(26,065)(27,900)(26,867)
Tangible common equity$460,106$477,558$469,875$458,382$446,696
Total Assets to Tangible Assets:
Total assets-GAAP$7,338,715$7,443,805$7,093,959$6,630,010$6,884,786
Adjustments:
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(22,976)(24,374)(26,065)(27,900)(26,867)
Tangible assets$7,153,835$7,257,527$6,905,990$6,440,206$6,696,015
Common Shares Outstanding22,044,62622,050,53722,193,14122,380,49222,351,740
Tangible Common Equity to Tangible Assets6.43%6.58%6.80%7.12%6.67%
Tangible Book Value Per Share$20.87$21.66$21.17$20.48$19.98
Return on Average Tangible Common Equity (ROATCE)
For the Quarter Ended
March 31,December 31,September 30, June 30,March 31,
(dollars in thousands)20222021202120212021
Net income available to common shareholders$20,749$23,107$19,548$20,124$18,538
Average total shareholders' equity-GAAP$657,327$652,892$651,751$641,079$624,661
Adjustments:
Goodwill(161,904)(161,904)(161,904)(161,904)(161,904)
Other intangible assets, net(23,638)(25,311)(27,132)(26,931)(27,578)
Average tangible common equity$471,785$465,677$462,715$452,244$435,179
ROATCE17.84%19.69%16.76%17.85%17.28%

Primary Logo

© 2024 Canjex Publishing Ltd. All rights reserved.