Midland States Bancorp, Inc. Announces 2025 Fourth Quarter Results

EFFINGHAM, Ill., Jan. 22, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ:MSBI) (the "Company") today reported a net loss available to common shareholders of $5.1 million, or $0.24 per diluted share, for the fourth quarter of 2025, compared to net income available to common shareholders of $5.3 million, or $0.24 per diluted share, for the third quarter of 2025. This also compares to a net loss of $33.0 million, or $1.52 per diluted share, for the fourth quarter of 2024.

Financial results for the fourth quarter of 2025 included the previously announced loss on the sale of substantially all of the Company's equipment finance portfolio of $21.4 million, in addition to a $1.6 million loss on the sale of a small consumer loan portfolio. Excluding these transactions, adjusted earnings available to common shareholders were $11.9 million, or $0.53 per diluted share, for the fourth quarter of 2025.

The Company also recognized additional credit enhancement income of $6.6 million during the fourth quarter of 2025 resulting from contractual changes in its third-party lending and servicing arrangements, which was partially offset by $1.7 million in additional FDIC assessments related to prior years' amended call reports due to the restatements of prior years' financial statements.

2025 Fourth Quarter Results

• Net loss available to common shareholders of $5.1 million, or $0.24 per diluted share; Adjusted earnings available to common shareholders of $11.9 million, or $0.53 per diluted share
• Sale of substantially all of the equipment finance portfolio for $21.4 million loss
• Adjusted pre-provision net revenue of $31.4 million, or $1.44 per diluted share, compared to $31.3 million, or $1.43 per diluted share, for the third quarter of 2025
• Net interest margin of 3.74% compared to 3.79% in the prior quarter, which included interest recoveries of $1.6 million
• Ratio of nonperforming assets to total assets of 1.02%, consistent with the prior quarter
• Total capital to risk-weighted assets of 15.16% and common equity tier 1 capital of 9.89%
• Provision for credit losses on loans was $11.8 million for the fourth quarter of 2025, compared to $20.5 million for the third quarter of 2025
  
  

Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:

"Entering 2025, improving credit quality was our number one priority and throughout the year, we took significant steps to reduce our risk in the loan portfolio and strengthen our balance sheet. We have significantly enhanced our credit talent, culture, and underwriting standards in 2025, and while non-performing assets remain above our 0.75% target, we believe the actions taken in 2025 position us well for continued improvement. We accomplished this without raising any additional capital while also continuing to invest in our core businesses.

"Our capital position improved, with the common equity tier 1 capital ratio rising to 9.89% and approaching our 10.0% target. With the Company's shares trading near tangible book value during the quarter, we repurchased $9.6 million of common stock.

"Revenue trends remained positive in the fourth quarter, highlighted by a strong net interest margin and roughly 6.5% annualized loan growth in our Community Bank. Also, our wealth management business posted another record quarter. We continue to invest in these businesses and expect solid momentum to continue in 2026."

Key Points for Fourth Quarter and Outlook

Sale of substantially all of the equipment finance portfolio; Continuation of credit clean-up

• As previously announced, the Company sold substantially all of its equipment finance loan and lease portfolio during the fourth quarter of 2025, resulting in a loss on sale of $21.4 million.
  
  
  
  
• Nonperforming loans and loans 30-89 days past due decreased to $65.5 million and $17.1 million, respectively, at December 31, 2025.
  
  
  
  
• Net charge-offs, excluding the impact of $29.8 million of the allowance for credit losses which were charged off as part of the equipment finance portfolio sale, were $13.7 million for the fourth quarter of 2025, which included:
  
  
  
  
  • $5.3 million of net charge-offs in the retained portion of our equipment finance portfolio
  • $3.7 million of net charge-offs on non-performing commercial real estate loans included in our Community Bank portfolio due to the receipt of updated appraisals
  • $2.0 million of fully reimbursed net charge-offs related to our third-party lending portfolio
  • $1.1 million of charge-offs related to a commercial real estate loan that moved to non-accrual during the quarter.
• Provision for credit losses on loans was $11.8 million for the fourth quarter of 2025. The provision for credit losses on loans resulted from the replenishment of reserve balances following higher net charge-offs during the quarter and a modest reserve build related to growth in the Community Bank portfolio.
• Allowance for credit losses on loans was $69.2 million, or 1.59% of total loans at December 31, 2025 compared to an allowance of $100.9 million at September 30, 2025, or 2.07% of total loans. The decrease was primarily driven by the reduction in the allowance for credit losses associated with the portion of the equipment finance portfolio that was sold during the quarter.
  
  

The table below summarizes certain information regarding the Company's loan portfolio asset quality for the periods presented.

		As of and for the Three Months Ended
(dollars in thousands)		December 31,				September 30,				June 30,				March 31,				December 31,
			2025				2025				2025				2025				2024
Asset Quality
Loans 30-89 days past due		$	17,079			$	26,019			$	40,959			$	48,221			$	43,681
Nonperforming loans			65,483				68,703				80,112				145,690				150,907
Nonperforming assets			66,089				70,369				81,775				151,264				157,409
Substandard accruing loans			76,000				78,901				58,478				77,620				84,058
Net charge-offs			43,492				12,309				29,854				16,878				112,776
Loans 30-89 days past due to total loans			0.39	%			0.53	%			0.81	%			0.96	%			0.85	%
Nonperforming loans to total loans			1.50	%			1.41	%			1.59	%			2.90	%			2.92	%
Nonperforming assets to total assets			1.02	%			1.02	%			1.15	%			2.08	%			2.10	%
Allowance for credit losses to total loans			1.59	%			2.07	%			1.84	%			2.10	%			2.15	%
Allowance for credit losses to nonperforming loans			105.71	%			146.84	%			115.70	%			72.19	%			73.69	%
Net charge-offs to average loans (annualized)			3.69	%			0.99	%			2.34	%			1.35	%			7.94	%

Solid Growth Trends in Community Bank & Wealth Management

• Total loans at December 31, 2025 were $4.35 billion, a decrease of $515.6 million from September 30, 2025. Key changes in the loan portfolio were as follows:
  • Community Bank balances increased $53.7 million, or 1.6%, from September 30, 2025. We originated $180 million of new loans during the fourth quarter of 2025, which benefited from growth in commercial clients with full banking relationships, increasing from $129 million during the third quarter of 2025. This growth was partially offset by payoffs of $161.2 million, increasing from $146.0 million during the third quarter of 2025. Pipelines continued to remain strong through the end of the fourth quarter of 2025 and to begin 2026.

• Equipment finance balances declined $578.1 million compared to balances at September 30, 2025, primarily due to the sale of substantially all of the portfolio during the quarter.
• Non-core loans decreased $17.2 million to $295.8 million from September 30, 2025.

• Total deposits were $5.42 billion at December 31, 2025, a decrease of $180.4 million from September 30, 2025. The decrease in deposits reflected the following:
  • Community Bank deposits decreased $154.9 million from balances as of September 30, 2025, driven by seasonality in public funds and ordinary fluctuations in liquidity related to certain of our larger deposit customer relationships.
  • Brokered deposits decreased $24.0 million from balances as of September 30, 2025. The reduction in higher-cost deposit funding improved our net interest margin by 4 basis points during the quarter.
• Wealth Management revenue totaled $8.3 million in the fourth quarter of 2025. Assets under administration were $4.48 billion at December 31, 2025, an increase from $4.36 billion at September 30, 2025. The Company continued to experience strong pipelines through the end of the fourth quarter of 2025.

Net Interest Margin

• Net interest margin was 3.74%, down 5 basis points compared to the third quarter of 2025. The third quarter of 2025 included a $1.6 million interest recovery due to the payoff of a nonaccrual loan. Excluding this, the net interest margin increased 5 basis points in the fourth quarter of 2025. Our cost of funding continues to decline, as rate cuts enacted by the Federal Reserve beginning in late 2024 continue to result in a lower cost of deposits for the Company, which fell by 17 basis points to 1.95% in the fourth quarter of 2025. The rate cuts in December 2025 had a limited effect on the fourth quarter's results but should result in additional improvement in funding costs into 2026.
  
  

The following table presents the Company's net interest margin for the fourth quarter of 2025 compared to the third quarter of 2025 and the fourth quarter of 2024.

		For the Three Months Ended
(dollars in thousands)		December 31, 2025									September 30, 2025									December 31, 2024
Interest-earning assets		Average Balance			Interest & Fees			Yield/Rate			Average Balance			Interest & Fees			Yield/Rate			Average Balance			Interest & Fees			Yield/Rate
Cash and cash equivalents		$	81,080		$	802		3.92	%		$	78,567		$	849		4.29	%		$	96,676		$	1,101		4.53	%
Investment securities(1)			1,457,778			16,807		4.57				1,338,997			15,979		4.73				1,213,248			14,417		4.73
Loans(1)(2)			4,671,538			73,889		6.28				4,947,675			81,012		6.50				5,652,586			88,412		6.22
Loans held for sale			11,035			145		5.21				9,268			147		6.29				12,854			129		4.00
Nonmarketable equity securities			36,053			673		7.41				38,559			715		7.36				35,171			632		7.15
Total interest-earning assets			6,257,484			92,316		5.85				6,413,066			98,702		6.11				7,010,535			104,691		5.94
Noninterest-earning assets			486,216									498,875									669,300
Total assets		$	6,743,700								$	6,911,941								$	7,679,835
Interest-Bearing Liabilities
Interest-bearing deposits		$	4,501,366		$	27,147		2.39	%		$	4,644,455		$	30,219		2.58	%		$	5,241,702		$	40,016		3.04	%
Short-term borrowings			110,069			1,035		3.73				54,839			499		3.61				31,853			214		2.68
FHLB advances & other borrowings			359,380			3,648		4.03				386,772			4,044		4.15				284,033			2,880		4.03
Subordinated debt			27,017			380		5.58				77,210			1,393		7.16				80,410			1,498		7.41
Trust preferred debentures			51,771			1,183		9.07				51,602			1,221		9.39				51,132			1,292		10.05
Total interest-bearing liabilities			5,049,603			33,393		2.62				5,214,878			37,376		2.84				5,689,130			45,900		3.21
Noninterest-bearing deposits			1,015,629									1,020,196									1,066,520
Other noninterest-bearing liabilities			95,770									100,436									117,478
Shareholders' equity			582,698									576,431									806,707
Total liabilities and shareholder's equity		$	6,743,700								$	6,911,941								$	7,679,835
Net Interest Margin					$	58,923		3.74	%					$	61,326		3.79	%					$	58,791		3.34	%
Cost of Deposits								1.95	%								2.12	%								2.52	%

(1)	Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.2 million for each of the three months ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
(2)	Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

Trends in Noninterest Income and Expense

• Noninterest income was $26.9 million for the fourth quarter of 2025 compared to $20.0 million for the third quarter of 2025. Noninterest income for the fourth quarter of 2025 included $6.6 million of additional credit enhancement income driven by contractual changes in our third-party lending and servicing arrangements.
• Noninterest expense was $77.2 million for the fourth quarter of 2025 compared to $49.8 million of noninterest expense for the third quarter of 2025. Noninterest expense for the fourth quarter of 2025 included $23.0 million of losses on the sale of loans (of which $21.4 million related to the equipment finance portfolio sale) and $1.7 million in additional FDIC assessments related to prior years' amended call reports due to the restatements of prior years' financial statements.

• Income tax benefit was $0.4 million for the fourth quarter of 2025, compared to income tax expense of $3.8 million for the third quarter of 2025 and income tax benefit of $8.2 million for the fourth quarter of 2024.   The resulting effective tax rates were 11.1%, 33.2% and 21.0%, respectively. The effective tax rate for the fourth quarter of 2025 reflected the impact of the loss on the sale of substantially all of our equipment finance portfolio.
  
  
  
  

Fourth Quarter 2025 Financial Highlights and Key Performance Indicators

		As of and for the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
			2025				2025				2025				2025				2024
Return on average assets (annualized)		(0.17)		%			0.43	%			0.67	%		(7.66)		%		(1.59)		%
Adjusted pre-provision net revenue to average assets(1)			1.85	%			1.80	%			1.81	%			1.47	%			1.83	%
Net interest margin (annualized)			3.74	%			3.79	%			3.56	%			3.49	%			3.34	%
Efficiency ratio(1)			63.11	%			61.25	%			60.60	%			64.29	%			62.31	%
Noninterest expense to average assets			4.54	%			2.86	%			2.80	%			11.02	%			3.04	%
Net charge-offs to average loans (annualized)			3.69	%			0.99	%			2.34	%			1.35	%			7.94	%
Tangible book value per share at period end(1)		$	20.70			$	21.16			$	20.68			$	20.54			$	19.83
Diluted earnings (loss) per common share		$	(0.24	)		$	0.24			$	0.44			$	(6.58	)		$	(1.52	)
Common shares outstanding at period end			21,169,854				21,543,557				21,515,138				21,503,036				21,494,485
Trust assets under administration		$	4,478,999			$	4,363,756			$	4,181,180			$	4,101,414			$	4,153,080

(1)	Non-GAAP financial measures. Refer to pages 11-12 for a reconciliation to the comparable GAAP financial measures.

Capital

As previously announced, on November 3, 2025, the Company's board of directors authorized a new share repurchase program, pursuant to which the Company is authorized to repurchase up to $25.0 million of its common stock through November 2, 2026. During the fourth quarter of 2025, the Company repurchased $9.6 million of its common stock (457,222 shares of its common stock at a weighted average price of $20.96), resulting in approximately $15 million in remaining repurchase authority under the program.

The Company and Midland States Bank 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:

	As of December 31, 2025
	Midland States Bank		Midland States Bancorp, Inc.		Minimum Regulatory Requirements(2)
Total capital to risk-weighted assets	14.27%		15.16%		10.50%
Tier 1 capital to risk-weighted assets	13.02%		13.37%		8.50%
Common equity Tier 1 capital to risk-weighted assets	13.02%		9.89%		7.00%
Tier 1 leverage ratio	9.63%		9.90%		4.00%
Tangible common equity to tangible assets(1)	N/A		6.75%		N/A

(1)	A non-GAAP financial measure. Refer to pages 11-12 for a reconciliation to the comparable GAAP financial measure.
(2)	Includes the capital conservation buffer of 2.5%, as applicable.

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 December 31, 2025, the Company had total assets of approximately $6.51 billion, and its Wealth Management Group had assets under administration of approximately $4.48 billion. The Company provides a full range of commercial and consumer banking products and services, 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 pre-provision net revenue," "Adjusted pre-provision net revenue per diluted share," "Adjusted pre-provision net revenue to average assets," "Adjusted earnings (loss)," "Adjusted earnings (loss) available to common shareholders," "Adjusted diluted earnings (loss) per common share," "Efficiency ratio," "Tangible common equity to tangible assets," and "Tangible book value per share." 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, the measures in this press release 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, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; 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," "should," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," "outlook," "trends," 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 [email protected] or (217) 342-7321

Eric T. Lemke, Chief Financial Officer, at [email protected] or (217) 342-7321

A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/702332a6-12ec-467f-885d-49be38ecac58

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
		As of
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)			2025				2025				2025				2025				2024
Assets
Cash and cash equivalents		$	127,811			$	166,147			$	176,587			$	102,006			$	114,766
Investment securities			1,524,943				1,383,121				1,354,652				1,368,405				1,212,366
Loans			4,352,004				4,867,587				5,035,295				5,018,053				5,167,574
Allowance for credit losses on loans			(69,219	)			(100,886	)			(92,690	)			(105,176	)			(111,204	)
Total loans, net			4,282,785				4,766,701				4,942,605				4,912,877				5,056,370
Loans held for sale			7,781				7,535				37,299				287,821				344,947
Premises and equipment, net			85,134				86,005				86,240				86,719				85,710
Other real estate owned			606				393				393				4,183				4,941
Loan servicing rights, at lower of cost or fair value			11,932				16,165				16,720				17,278				17,842
Goodwill			7,927				7,927				7,927				7,927				161,904
Other intangible assets, net			8,876				9,619				10,362				11,189				12,100
Company-owned life insurance			218,554				216,494				214,392				212,336				211,168
Credit enhancement asset			12,557				5,765				5,800				5,615				16,804
Other assets			222,221				245,643				254,901				268,448				267,891
Total assets		$	6,511,127			$	6,911,515			$	7,107,878			$	7,284,804			$	7,506,809
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits		$	1,040,411			$	1,015,930			$	1,074,212			$	1,090,707			$	1,055,564
Interest-bearing deposits			4,383,968				4,588,895				4,872,707				4,845,727				5,141,679
Total deposits			5,424,379				5,604,825				5,946,919				5,936,434				6,197,243
Short-term borrowings			60,181				146,766				8,654				40,224				87,499
FHLB advances and other borrowings			293,000				373,000				345,000				498,000				258,000
Subordinated debt			27,019				27,014				77,759				77,754				77,749
Trust preferred debentures			51,857				51,684				51,518				51,358				51,205
Other liabilities			89,192				124,225				104,323				109,597				124,266
Total liabilities			5,945,628				6,327,514				6,534,173				6,713,367				6,795,962
Total shareholders' equity			565,499				584,001				573,705				571,437				710,847
Total liabilities and shareholders' equity		$	6,511,127			$	6,911,515			$	7,107,878			$	7,284,804			$	7,506,809

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
		For the Three Months Ended
		December 31,				September 30,				June 30,			March 31,				December 31,
(dollars in thousands, except per share data)			2025				2025				2025			2025				2024
Net interest income:
Interest income		$	92,095			$	98,493			$	97,924		$	99,355			$	104,470
Interest expense			33,393				37,376				39,229			41,065				45,900
Net interest income			58,702				61,117				58,695			58,290				58,570
Provision for credit losses:
Provision for credit losses on loans			11,825				20,505				17,369			10,850				74,183
Recapture of credit losses on unfunded commitments			(200	)			(500	)			—			—				—
Total provision for credit losses			11,625				20,005				17,369			10,850				74,183
Net interest income after provision for credit losses			47,077				41,112				41,326			47,440				(15,613	)
Noninterest income:
Wealth management revenue			8,272				8,018				7,379			7,350				7,660
Service charges on deposit accounts			3,573				3,598				3,351			3,305				3,506
Interchange revenue			3,437				3,445				3,463			3,151				3,528
Residential mortgage banking revenue			690				735				756			676				637
Income on company-owned life insurance			2,060				2,102				2,068			2,334				1,975
Gain (loss) on sales of investment securities, net			—				14				—			—				(34	)
Credit enhancement income (loss)			6,876				(242	)			3,848			(578	)			15,810
Other income			1,959				2,346				2,669			1,525				2,289
Total noninterest income			26,867				20,016				23,534			17,763				35,371
Noninterest expense:
Salaries and employee benefits			25,906				26,393				25,685			26,416				22,283
Occupancy and equipment			4,353				4,206				4,166			4,498				4,286
Data processing			6,834				7,186				7,035			6,919				7,278
Professional services			2,321				2,017				2,792			2,741				1,580
Impairment on goodwill			—				—				—			153,977				—
Amortization of intangible assets			743				743				827			911				952
Loss on sale of loan portfolios			23,051				—				—			—				—
Impairment on leased assets and surrendered assets			684				—				—			—				7,601
FDIC insurance			3,739				1,512				1,422			1,463				1,383
Other expense			9,561				7,757				8,065			6,080				13,336
Total noninterest expense			77,192				49,814				49,992			203,005				58,699
Income (loss) before income taxes			(3,248	)			11,314				14,868			(137,802	)			(38,941	)
Income tax expense (benefit)			(360	)			3,757				2,844			3,172				(8,172	)
Net income (loss)			(2,888	)			7,557				12,024			(140,974	)			(30,769	)
Preferred stock dividends			2,228				2,229				2,228			2,228				2,228
Net income (loss) available to common shareholders		$	(5,116	)		$	5,328			$	9,796		$	(143,202	)		$	(32,997	)
Basic earnings (loss) per common share		$	(0.24	)		$	0.24			$	0.44		$	(6.58	)		$	(1.52	)
Diluted earnings (loss) per common share		$	(0.24	)		$	0.24			$	0.44		$	(6.58	)		$	(1.52	)
Weighted average common shares outstanding			21,854,033				21,863,911				21,820,190			21,795,570				21,748,428
Weighted average diluted common shares outstanding			21,854,033				21,863,911				21,820,190			21,795,570				21,753,711

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)
		As of
		December 31,			September 30,			June 30,			March 31,			December 31,
(dollars in thousands)			2025			2025			2025			2025			2024
Loan Portfolio Mix
Commercial loans		$	1,169,740		$	1,149,673		$	1,178,792		$	879,286		$	934,848
Equipment finance loans			8,781			326,860			364,526			390,276			416,968
Equipment finance leases			50,981			310,983			347,155			373,168			391,390
Commercial FHA warehouse lines			—			—			1,068			—			8,004
Total commercial loans and leases			1,229,502			1,787,516			1,891,541			1,642,730			1,751,210
Commercial real estate			2,342,664			2,336,661			2,383,361			2,592,325			2,591,664
Construction and land development			286,140			260,073			258,729			264,966			299,842
Residential real estate			349,623			353,475			361,261			373,095			380,557
Consumer			144,075			129,862			140,403			144,937			144,301
Total loans		$	4,352,004		$	4,867,587		$	5,035,295		$	5,018,053		$	5,167,574
Loan Portfolio Segment
Regions
Eastern		$	972,031		$	927,977		$	897,348		$	897,792		$	899,611
Northern			711,702			724,695			753,590			747,028			714,562
Southern			729,368			725,892			778,124			711,787			720,188
St. Louis			915,126			896,005			884,685			902,743			868,190
Total Community Bank			3,328,227			3,274,569			3,313,747			3,259,350			3,202,551
Specialty finance			668,183			642,167			670,566			867,918			1,026,443
Equipment finance			59,762			637,843			711,681			763,444			808,359
Non-core loan program and other(1)			295,832			313,008			339,301			127,341			130,221
Total loans		$	4,352,004		$	4,867,587		$	5,035,295		$	5,018,053		$	5,167,574
Deposit Portfolio Mix
Noninterest-bearing demand		$	1,040,411		$	1,015,930		$	1,074,212		$	1,090,707		$	1,055,564
Interest-bearing:
Checking			1,855,215			1,996,501			2,180,717			2,161,282			2,378,256
Money market			1,248,942			1,240,885			1,216,357			1,154,403			1,173,630
Savings			487,742			486,953			511,470			522,663			507,305
Time			748,942			804,740			818,813			818,732			822,981
Brokered time			43,127			59,816			145,350			188,647			259,507
Total deposits		$	5,424,379		$	5,604,825		$	5,946,919		$	5,936,434		$	6,197,243
Deposit Portfolio by Channel
Retail		$	2,823,064		$	2,791,085		$	2,811,838		$	2,846,494		$	2,749,650
Commercial			1,193,637			1,248,445			1,145,369			1,074,837			1,209,815
Public Funds			473,381			605,474			618,172			490,374			505,912
Wealth & Trust			265,747			263,765			304,626			301,251			340,615
Servicing			498,496			498,892			785,659			842,567			896,436
Brokered Deposits			143,192			167,228			248,707			358,063			473,451
Other			26,862			29,936			32,548			22,848			21,364
Total deposits		$	5,424,379		$	5,604,825		$	5,946,919		$	5,936,434		$	6,197,243

(1)	Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio.

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
Adjusted Earnings Reconciliation
		For the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands, except per share data)			2025				2025				2025				2025				2024
Income (loss) before income tax expense (benefit) - GAAP		$	(3,248	)		$	11,314			$	14,868			$	(137,802	)		$	(38,941	)
Adjustments to noninterest income:
(Gain) loss on sales of investment securities, net			—				(14	)			—				—				34
Loss on repurchase of subordinated debt			—				—				—				—				13
Total adjustments to noninterest income			—				(14	)			—				—				47
Adjustments to noninterest expense:
Loss on sale of loan portfolios			(23,051	)			—				—				—				—
Impairment on goodwill			—				—				—				(153,977	)			—
Total adjustments to noninterest expense			(23,051	)			—				—				(153,977	)			—
Adjusted earnings (loss) pre tax - non-GAAP			19,803				11,300				14,868				16,175				(38,894	)
Adjusted earnings (loss) tax (benefit) expense			5,691				3,753				2,844				3,172				(8,159	)
Adjusted earnings (loss) - non-GAAP			14,112				7,547				12,024				13,003				(30,735	)
Preferred stock dividends			2,228				2,229				2,228				2,228				2,228
Adjusted earnings (loss) available to common shareholders		$	11,884			$	5,318			$	9,796			$	10,775			$	(32,963	)
Adjusted diluted earnings (loss) per common share		$	0.53			$	0.24			$	0.44			$	0.49			$	(1.52	)
Adjusted Pre-Provision Net Revenue Reconciliation
		For the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)			2025				2025				2025				2025				2024
Income (loss) before income tax expense (benefit)		$	(3,248	)		$	11,314			$	14,868			$	(137,802	)		$	(38,941	)
Provision for credit losses			11,625				20,005				17,369				10,850				74,183
Loss on sale of loan portfolios			23,051				—				—				—				—
Impairment on goodwill			—				—				—				153,977				—
Adjusted pre-provision net revenue		$	31,428			$	31,319			$	32,237			$	27,025			$	35,242
Adjusted pre-provision net revenue per diluted share		$	1.44			$	1.43			$	1.48			$	1.24			$	1.62
Adjusted pre-provision net revenue to average assets			1.85	%			1.80	%			1.81	%			1.47	%			1.83	%

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
Efficiency Ratio Reconciliation
		For the Three Months Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands)			2025				2025				2025				2025				2024
Noninterest expense - GAAP		$	77,192			$	49,814			$	49,992			$	203,005			$	58,699
Loss on sale of loan portfolios			(23,051	)			—				—				—				—
Impairment on goodwill			—				—				—				(153,977	)			—
Adjusted noninterest expense		$	54,141			$	49,814			$	49,992			$	49,028			$	58,699
Net interest income - GAAP		$	58,702			$	61,117			$	58,695			$	58,290			$	58,570
Effect of tax-exempt income			221				209				267				208				220
Adjusted net interest income			58,923				61,326				58,962				58,498				58,790
Noninterest income - GAAP			26,867				20,016				23,534				17,763				35,371
(Gain) loss on sales of investment securities, net			—				(14	)			—				—				34
Loss on repurchase of subordinated debt			—				—				—				—				13
Adjusted noninterest income			26,867				20,002				23,534				17,763				35,418
Adjusted total revenue		$	85,790			$	81,328			$	82,496			$	76,261			$	94,208
Efficiency ratio			63.11	%			61.25	%			60.60	%			64.29	%			62.31	%

Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
		As of
		December 31,				September 30,				June 30,				March 31,				December 31,
(dollars in thousands, except per share data)			2025				2025				2025				2025				2024
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity—GAAP		$	565,499			$	584,001			$	573,705			$	571,437			$	710,847
Adjustments:
Preferred Stock			(110,548	)			(110,548	)			(110,548	)			(110,548	)			(110,548	)
Goodwill			(7,927	)			(7,927	)			(7,927	)			(7,927	)			(161,904	)
Other intangible assets, net			(8,876	)			(9,619	)			(10,362	)			(11,189	)			(12,100	)
Tangible common equity		$	438,148			$	455,907			$	444,868			$	441,773			$	426,295
Total Assets to Tangible Assets:
Total assets—GAAP		$	6,511,127			$	6,911,515			$	7,107,878			$	7,284,804			$	7,506,809
Adjustments:
Goodwill			(7,927	)			(7,927	)			(7,927	)			(7,927	)			(161,904	)
Other intangible assets, net			(8,876	)			(9,619	)			(10,362	)			(11,189	)			(12,100	)
Tangible assets		$	6,494,324			$	6,893,969			$	7,089,589			$	7,265,688			$	7,332,805
Common Shares Outstanding			21,169,854				21,543,557				21,515,138				21,503,036				21,494,485
Tangible Common Equity to Tangible Assets			6.75	%			6.61	%			6.27	%			6.08	%			5.81	%
Tangible Book Value Per Share		$	20.70			$	21.16			$	20.68			$	20.54			$	19.83