• Midland States Bancorp, Inc. Announces 2021 Fourth Quarter Results

    ソース: Nasdaq GlobeNewswire / 27 1 2022 16:05:01   America/New_York

    Summary

    • Net income of $23.1 million, or $1.02 diluted earnings per share
    • Total loans increased 25.2% annualized
    • Total deposits increased 9.1% from end of prior quarter
    • Non-performing loans declined 22.0% from end of prior quarter
    • Net interest income increased 5.7% from prior quarter to $54.3 million
    • Efficiency ratio improved to 52.61% from 58.78% in prior quarter
    • Book value and tangible book value per share increased 1.6% and 2.3%, respectively

    EFFINGHAM, Ill., Jan. 27, 2022 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported 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 $1.9 million gain on the termination of an interest rate swap. This compares to net income of $19.5 million, or $0.86 diluted earnings per share, for the third quarter of 2021. This also compares to net income of $8.3 million, or $0.36 diluted earnings per share, for the fourth quarter of 2020, which included $4.9 million in FHLB advance prepayment fees.

    Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We continue to see an acceleration of our new business development efforts driven by the more productive commercial banking teams we have built over the past year and our increased presence in higher growth markets in Northern Illinois and St. Louis. We had a record quarter of loan production, resulting in 25% annualized growth in total loans, which we were able to fund with strong inflows of noninterest-bearing deposits. The strong balance sheet growth we are seeing is driving higher levels of revenue, increased operating leverage, and an improvement in our level of profitability.

    “Based on our current commercial and commercial real estate lending pipelines and improving loan demand, we expect to deliver another year of strong loan growth in 2022. We also expect to keep expense levels relatively flat compared to 2021, despite continuing to increase our technology investment in order to further improve our revenue generation capabilities and enhance client service. In 2022, we will be focused on continuing to build relationship-based commercial and commercial real estate loans funded by low-cost deposits, which we combine with a growing wealth management business that provides a large, consistent source of non-interest income. We believe the improvements we have made to our business model and operations will enable us to generate a higher level of returns and consistently increase the value of our franchise in the years ahead,” said Mr. Ludwig.

    Adjusted Earnings

    Financial results for the fourth quarter of 2021 were impacted by $4.9 million FHLB advance prepayment fees and a $1.9 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, up from $19.6 million, or $0.86 per diluted share, for the prior quarter.

    Financial results for the fourth quarter of 2020 were impacted by $4.9 million FHLB advance prepayment fees, a $0.6 million loss on residential mortgage servicing rights (“MSRs”) held-for sale, and $0.2 million in integration and acquisition expenses. Excluding these amounts and certain income items, adjusted earnings were $12.5 million, or $0.54 per diluted share, for the fourth quarter of 2020.

    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 fourth quarter of 2021 was 3.25%, compared to 3.34% for the third quarter of 2021. The Company’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 4 and 7 basis points to net interest margin in the fourth and third quarters of 2021, respectively. Excluding the impact of accretion income, net interest margin decreased 6 basis points from the third quarter of 2021, due primarily to an increase in liquidity largely resulting from a significant increase in commercial FHA servicing deposits.

    Relative to the fourth quarter of 2020, net interest margin decreased from 3.47%. Accretion income on purchased loan portfolios contributed 10 basis points to net interest margin in the fourth quarter of 2020. Excluding the impact of accretion income, net interest margin decreased 16 basis points from the fourth quarter of 2020, primarily due to an unfavorable shift in the mix of earning assets.  

    Net Interest Income

    Net interest income for the fourth quarter of 2021 was $54.3 million, an increase of 5.7% from $51.4 million for the third quarter of 2021. Excluding accretion income, net interest income increased $3.1 million from the prior quarter, which was primarily due to a higher average balance of interest-earning assets coupled with a decrease in funding costs. Accretion income associated with purchased loan portfolios totaled $0.8 million for the fourth quarter of 2021, compared to $1.0 million for the third quarter of 2021. PPP loan income totaled $1.6 million, including net loan origination fees of $1.4 million, in the fourth quarter of 2021, compared to $2.4 million, including net loan origination fees of $2.1 million, in the third quarter of 2021.

    Relative to the fourth quarter of 2020, net interest income increased $0.8 million, or 1.5%. Accretion income for the fourth quarter of 2020 was $1.6 million. Excluding the impact of accretion income, net interest income increased primarily due to a decrease in funding costs.

    Noninterest Income

    Noninterest income for the fourth quarter of 2021 was $22.5 million, an increase of 48.7% from $15.1 million for the third 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 $1.9 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 $2.1 million and $3.0 million in the fourth quarter of 2021 and third quarter of 2021, respectively. Excluding the impairments, noninterest income increased 35.3% from the prior quarter.

    Relative to the fourth quarter of 2020, noninterest income increased 57.1% from $14.3 million. The increase was attributable to higher levels of wealth management and interchange revenue, as well as the items mentioned above for the fourth quarter of 2021.

    Wealth management revenue for the fourth quarter of 2021 was $7.2 million, unchanged from the third quarter of 2021. Compared to the fourth quarter of 2020, wealth management revenue increased 22.3%, primarily due to the increase in assets under administration over the past year and the acquisition of ATG Trust Company.

    Noninterest Expense

    Noninterest expense for the fourth quarter of 2021 was $45.8 million, compared with $41.3 million in the third quarter of 2021. Noninterest expense for the fourth quarter of 2021 included $4.9 million 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 decreased by $0.4 million.

    Relative to the fourth quarter of 2020, noninterest expense decreased 2.7% from $47.0 million, which included $4.9 million in FHLB advance prepayment fees and a $0.6 million loss on residential MSRs held-for-sale. Excluding FHLB advance prepayment fees and losses on residential MSRs held-for-sale, noninterest expense decreased $0.6 million, primarily due to lower salaries and employee benefits expense.

    Loan Portfolio

    Total loans outstanding were $5.22 billion at December 31, 2021, compared with $4.92 billion at September 30, 2021, and $5.10 billion at December 31, 2020. The increase in total loans from September 30, 2021 was primarily attributable to higher balances of commercial real estate and consumer loans, partially offset by declines in commercial FHA warehouse lines and forgiveness of PPP loans.

    Equipment finance balances increased $46.2 million from September 30, 2021 to $945.3 million at December 31, 2021.  

    Compared to loan balances at December 31, 2020, growth in equipment finance balances, commercial real estate, construction, and consumer loans was offset by declines in commercial FHA warehouse lines, PPP loans and residential real estate loans.

    Deposits

    Total deposits were $6.11 billion at December 31, 2021, compared with $5.60 billion at September 30, 2021, and $5.10 billion at December 31, 2020. The increase in total deposits from the end of the prior quarter was primarily attributable to an increase in commercial FHA servicing deposits and inflows of other commercial deposits.

    Asset Quality

    Nonperforming loans totaled $42.6 million, or 0.81% of total loans, at December 31, 2021, compared with $54.6 million, or 1.11% of total loans, at September 30, 2021. The decrease in nonperforming loans was primarily attributable to the payoff of two nonaccrual loans totaling $5.6 million and the charge-off of a third nonaccrual loan of $1.8 million. At December 31, 2020, nonperforming loans totaled $54.1 million, or 1.06% of total loans.

    Net charge-offs for the fourth quarter of 2021 were $4.6 million, or 0.37% of average loans on an annualized basis, compared to net charge-offs of $3.0 million, or 0.25% of average loans on an annualized basis, for the third quarter of 2021, and $2.3 million, or 0.19% of average loans on an annualized basis, for the fourth quarter of 2020.  

    The Company recorded a provision for credit losses of $0.5 million for the fourth quarter of 2021. No provision for credit losses on loans was recorded, due to improvements in asset quality and economic forecasts. Provisions of $0.4 million and $0.1 million were recorded for credit losses on unfunded commitments and available-for-sale securities, respectively.

    The Company’s allowance for credit losses on loans was 0.98% of total loans and 119.9% of nonperforming loans at December 31, 2021, compared with 1.13% of total loans and 101.9% of nonperforming loans at September 30, 2021. Approximately 94% of the allowance for credit losses on loans at December 31, 2021 was allocated to general reserves.

    Capital

    At December 31, 2021, 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
    Dec. 31, 2021
    Consolidated Ratios as of Dec. 31, 2021Minimum Regulatory Requirements (2)
    Total capital to risk-weighted assets11.21%12.19%10.50%
    Tier 1 capital to risk-weighted assets10.49%9.16%8.50%
    Tier 1 leverage ratio8.89%7.75%4.00%
    Common equity Tier 1 capital10.49%8.08%7.00%
    Tangible common equity to tangible assets (1)NA6.58%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 fourth quarter of 2021, the Company repurchased 205,015 shares of its common stock at a weighted average price of $25.58 under its stock repurchase program. As of December 31, 2021, the Company had $19.7 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, January 28, 2022, to discuss its financial results. The call can be accessed via telephone at (877) 516-3531; conference ID: 8339225. A recorded replay can be accessed through February 4, 2022, by dialing (855) 859-2056; conference ID: 8339225.

    A slide presentation relating to the fourth quarter 2021 financial results will be accessible prior to the scheduled conference call. This earnings release should be read together with the slide presentation, which contains important information related to the impact of COVID-19. 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 December 31, 2021, the Company had total assets of approximately $7.44 billion, and its Wealth Management Group had assets under administration of approximately $4.22 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
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands, except per share data) 2021 2021 2021 2021 2020
    Earnings Summary                    
    Net interest income $54,301  $51,396  $50,110  $51,868  $53,516 
    Provision for credit losses  467   (184)  (455)  3,565   10,058 
    Noninterest income  22,523   15,143   17,417   14,816   14,336 
    Noninterest expense  45,757   41,292   48,941   39,079   47,048 
    Income before income taxes  30,600   25,431   19,041   24,040   10,746 
    Income taxes  7,493   5,883   (1,083)  5,502   2,413 
    Net income $23,107  $19,548  $20,124  $18,538  $8,333 
                         
    Diluted earnings per common share $1.02  $0.86  $0.88  $0.81  $0.36 
    Weighted average shares outstanding - diluted  22,350,771   22,577,880   22,677,515   22,578,553   22,656,343 
    Return on average assets  1.26%  1.15%  1.20%  1.11%  0.49%
    Return on average shareholders' equity  14.04%  11.90%  12.59%  12.04%  5.32%
    Return on average tangible common equity (1)  19.69%  16.76%  17.85%  17.28%  7.68%
    Net interest margin  3.25%  3.34%  3.29%  3.45%  3.47%
    Efficiency ratio (1)  52.61%  58.78%  60.19%  57.14%  58.55%
                         
    Adjusted Earnings Performance Summary (1)                    
    Adjusted earnings $25,416  $19,616  $19,755  $18,434  $12,471 
    Adjusted diluted earnings per common share $1.12  $0.86  $0.86  $0.81  $0.54 
    Adjusted return on average assets  1.39%  1.15%  1.17%  1.11%  0.73%
    Adjusted return on average shareholders' equity  15.44%  11.94%  12.36%  11.97%  7.97%
    Adjusted return on average tangible common equity  21.65%  16.82%  17.52%  17.18%  11.50%
    Adjusted pre-tax, pre-provision earnings $36,324  $28,379  $26,967  $28,737  $28,855 
    Adjusted pre-tax, pre-provision return on average assets  1.98%  1.67%  1.60%  1.73%  1.69%
                         
    (1) Non-GAAP financial measures. Refer to pages 13 - 15 for a reconciliation to the comparable GAAP financial measures.
                         


                    
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                    
      For the Quarter Ended
      December 31, September 30,  June 30, March 31, December 31,
    (in thousands, except per share data) 2021 2021 2021 2021 2020
    Net interest income:               
    Interest income $60,427  $58,490  $58,397  $60,503  $62,712 
    Interest expense  6,126   7,094   8,287   8,635   9,196 
    Net interest income  54,301   51,396   50,110   51,868   53,516 
    Provision for credit losses:               
    Provision for credit losses on loans  -   -   -   3,950   10,000 
    Provision for credit losses on unfunded commitments  388   -   (265)  (535)  - 
    Provision for other credit losses  79   (184)  (190)  150   58 
    Total provision for credit losses  467   (184)  (455)  3,565   10,058 
    Net interest income after provision for credit losses  53,834   51,580   50,565   48,303   43,458 
    Noninterest income:               
    Wealth management revenue  7,176   7,175   6,529   5,931   5,868 
    Commercial FHA revenue  369   411   342   292   400 
    Residential mortgage banking revenue  1,103   1,287   1,562   1,574   2,285 
    Service charges on deposit accounts  2,338   2,268   1,916   1,826   2,149 
    Interchange revenue  3,677   3,651   3,797   3,375   3,137 
    Gain on sales of investment securities, net  -   160   377   -   - 
    Gain on termination of hedged interest swap  1,845   -   -   314   - 
    Impairment on commercial mortgage servicing rights  (2,072)  (3,037)  (1,148)  (1,275)  (2,344)
    Company-owned life insurance  1,904   869   863   860   893 
    Other income  6,183   2,359   3,179   1,919   1,948 
    Total noninterest income  22,523   15,143   17,417   14,816   14,336 
    Noninterest expense:               
    Salaries and employee benefits  22,109   22,175   22,071   20,528   22,636 
    Occupancy and equipment  3,429   3,701   3,796   3,940   3,531 
    Data processing  5,819   6,495   6,288   5,993   5,987 
    Professional  1,499   1,738   5,549   2,185   1,912 
    Amortization of intangible assets  1,425   1,445   1,470   1,515   1,556 
    Loss on mortgage servicing rights held for sale  -   79   143   -   617 
    Impairment related to facilities optimization  -   -   -   -   (10)
    FHLB advances prepayment fees  4,859   -   3,669   8   4,872 
    Other expense  6,617   5,659   5,955   4,910   5,947 
    Total noninterest expense  45,757   41,292   48,941   39,079   47,048 
    Income before income taxes  30,600   25,431   19,041   24,040   10,746 
    Income taxes  7,493   5,883   (1,083)  5,502   2,413 
    Net income $23,107  $19,548  $20,124  $18,538  $8,333 
                    
    Basic earnings per common share $1.03  $0.86  $0.88  $0.81  $0.36 
    Diluted earnings per common share $1.02  $0.86  $0.88  $0.81  $0.36 
                    


                    
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                    
      As of
      December 31, September 30,  June 30, March 31, December 31,
    (in thousands) 2021 2021 2021 2021 2020
    Assets               
    Cash and cash equivalents $680,371  $662,643  $425,100  $631,219  $341,640 
    Investment securities  916,132   900,319   756,831   690,390   686,135 
    Loans  5,224,801   4,915,554   4,835,866   4,910,806   5,103,331 
    Allowance for credit losses on loans  (51,062)  (55,675)  (58,664)  (62,687)  (60,443)
    Total loans, net  5,173,739   4,859,879   4,777,202   4,848,119   5,042,888 
    Loans held for sale  32,045   26,621   12,187   55,174   138,090 
    Premises and equipment, net  70,792   71,241   71,803   73,255   74,124 
    Other real estate owned  12,059   11,931   12,768   20,304   20,247 
    Loan servicing rights, at lower of cost or fair value  28,865   30,916   34,577   36,876   39,276 
    Goodwill  161,904   161,904   161,904   161,904   161,904 
    Other intangible assets, net  24,374   26,065   27,900   26,867   28,382 
    Cash surrender value of life insurance policies  148,378   149,146   148,277   146,864   146,004 
    Other assets  195,146   193,294   201,461   193,814   189,850 
    Total assets $7,443,805  $7,093,959  $6,630,010  $6,884,786  $6,868,540 
                    
    Liabilities and Shareholders' Equity               
    Noninterest-bearing deposits $2,245,701  $1,672,901  $1,366,453  $1,522,433  $1,469,579 
    Interest-bearing deposits  3,864,947   3,928,475   3,829,898   3,818,080   3,631,437 
    Total deposits  6,110,648   5,601,376   5,196,351   5,340,513   5,101,016 
    Short-term borrowings  76,803   66,666   75,985   71,728   68,957 
    FHLB advances and other borrowings  310,171   440,171   440,171   529,171   779,171 
    Subordinated debt  139,091   138,998   138,906   169,888   169,795 
    Trust preferred debentures  49,374   49,235   49,094   48,954   48,814 
    Other liabilities  93,881   139,669   81,317   89,065   79,396 
    Total liabilities  6,779,968   6,436,115   5,981,824   6,249,319   6,247,149 
    Total shareholders’ equity  663,837   657,844   648,186   635,467   621,391 
    Total liabilities and shareholders’ equity $7,443,805  $7,093,959  $6,630,010  $6,884,786  $6,868,540 
                    


                         
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      As of
      December 31, September 30,  June 30, March 31, December 31,
    (in thousands) 2021 2021 2021 2021 2020
    Loan Portfolio                    
    Equipment finance loans $521,973  $486,623  $464,380  $456,059  $451,437 
    Equipment finance leases  423,280   412,430   407,161   402,546   410,064 
    Commercial FHA warehouse lines  91,927   180,248   129,607   205,115   273,298 
    SBA PPP loans  52,477   82,410   146,728   211,564   184,401 
    Other commercial loans  783,811   718,054   683,365   702,156   776,439 
    Total commercial loans and leases  1,873,468   1,879,765   1,831,241   1,977,440   2,095,639 
    Commercial real estate  1,816,828   1,562,013   1,540,489   1,494,031   1,525,973 
    Construction and land development  193,749   200,792   212,508   191,870   172,737 
    Residential real estate  338,151   344,414   366,612   398,501   442,880 
    Consumer  1,002,605   928,570   885,016   848,964   866,102 
    Total loans $5,224,801  $4,915,554  $4,835,866  $4,910,806  $5,103,331 
                         
    Deposit Portfolio                    
    Noninterest-bearing demand $2,245,701  $1,672,901  $1,366,453  $1,522,433  $1,469,579 
    Interest-bearing:                    
    Checking  1,663,021   1,697,326   1,619,436   1,601,449   1,568,888 
    Money market  869,067   852,836   787,688   819,455   785,871 
    Savings  679,115   665,710   669,277   653,256   597,966 
    Time  630,583   688,693   721,502   718,788   655,620 
    Brokered time  23,161   23,910   31,995   25,132   23,092 
    Total deposits $6,110,648  $5,601,376  $5,196,351  $5,340,513  $5,101,016 
                         


                         
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      For the Quarter Ended
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands) 2021 2021 2021 2021 2020
    Average Balance Sheets                    
    Cash and cash equivalents $685,655  $525,848  $509,886  $350,061  $415,686 
    Investment securities  915,707   773,372   734,462   680,202   672,937 
    Loans  4,995,794   4,800,063   4,826,234   4,992,802   4,998,912 
    Loans held for sale  34,272   15,204   36,299   65,365   45,196 
    Nonmarketable equity securities  39,203   43,873   49,388   55,935   51,906 
    Total interest-earning assets  6,670,631   6,158,360   6,156,269   6,144,365   6,184,637 
    Non-earning assets  605,060   597,153   589,336   602,017   602,716 
    Total assets $7,275,691  $6,755,513  $6,745,605  $6,746,382  $6,787,353 
                         
    Interest-bearing deposits $3,913,475  $3,895,970  $3,815,179  $3,757,108  $3,680,645 
    Short-term borrowings  66,677   68,103   65,727   75,544   62,432 
    FHLB advances and other borrowings  319,954   440,171   519,490   617,504   682,981 
    Subordinated debt  139,046   138,954   165,155   169,844   169,751 
    Trust preferred debentures  49,307   49,167   49,026   48,887   48,751 
    Total interest-bearing liabilities  4,488,459   4,592,365   4,614,577   4,668,887   4,644,560 
    Noninterest-bearing deposits  2,049,802   1,434,193   1,411,428   1,370,604   1,446,359 
    Other noninterest-bearing liabilities  84,538   77,204   78,521   82,230   73,840 
    Shareholders' equity  652,892   651,751   641,079   624,661   622,594 
    Total liabilities and shareholders' equity $7,275,691  $6,755,513  $6,745,605  $6,746,382  $6,787,353 
                         
    Yields                    
    Earning Assets                    
    Cash and cash equivalents  0.16%  0.16%  0.11%  0.11%  0.12%
    Investment securities  2.12%  2.34%  2.43%  2.51%  2.65%
    Loans  4.36%  4.42%  4.43%  4.50%  4.58%
    Loans held for sale  3.53%  2.79%  2.88%  2.74%  3.14%
    Nonmarketable equity securities  5.07%  5.05%  4.94%  4.93%  5.22%
    Total interest-earning assets  3.62%  3.79%  3.83%  4.02%  4.06%
                         
    Interest-Bearing Liabilities                    
    Interest-bearing deposits  0.22%  0.26%  0.31%  0.34%  0.36%
    Short-term borrowings  0.12%  0.12%  0.12%  0.13%  0.14%
    FHLB advances and other borrowings  1.75%  1.80%  1.91%  1.69%  1.71%
    Subordinated debt  5.78%  5.79%  5.61%  5.57%  5.60%
    Trust preferred debentures  3.90%  3.92%  4.00%  4.08%  4.03%
    Total interest-bearing liabilities  0.54%  0.61%  0.72%  0.75%  0.79%
                         
    Cost of Deposits  0.15%  0.19%  0.23%  0.25%  0.26%
                         
    Net Interest Margin  3.25%  3.34%  3.29%  3.45%  3.47%
                         


                         
    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      As of and for the Quarter Ended
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands, except per share data) 2021 2021 2021 2021 2020
    Asset Quality                    
    Loans 30-89 days past due $17,514  $16,772  $20,224  $24,819  $31,460 
    Nonperforming loans  42,580   54,620   61,363   52,826   54,070 
    Nonperforming assets  57,069   69,261   76,926   75,004   75,432 
    Net charge-offs  4,613   2,989   4,023   1,706   2,328 
    Loans 30-89 days past due to total loans  0.34%  0.34%  0.42%  0.51%  0.62%
    Nonperforming loans to total loans  0.81%  1.11%  1.27%  1.08%  1.06%
    Nonperforming assets to total assets  0.77%  0.98%  1.16%  1.09%  1.10%
    Allowance for credit losses to total loans  0.98%  1.13%  1.21%  1.28%  1.18%
    Allowance for credit losses to nonperforming loans  119.92%  101.93%  95.60%  118.67%  111.79%
    Net charge-offs to average loans  0.37%  0.25%  0.33%  0.14%  0.19%
                         
    Wealth Management                    
    Trust assets under administration $4,217,412  $4,058,168  $4,077,581  $3,560,427  $3,480,759 
                         
    Market Data                    
    Book value per share at period end $30.11  $29.64  $28.96  $28.43  $27.83 
    Tangible book value per share at period end (1) $21.66  $21.17  $20.48  $19.98  $19.31 
    Market price at period end $24.79  $24.73  $26.27  $27.74  $17.87 
    Shares outstanding at period end  22,050,537   22,193,141   22,380,492   22,351,740   22,325,471 
                         
    Capital                    
    Total capital to risk-weighted assets  12.19%  13.10%  13.11%  13.73%  13.24%
    Tier 1 capital to risk-weighted assets  9.16%  9.73%  9.64%  9.62%  9.20%
    Tier 1 common capital to risk-weighted assets  8.08%  8.55%  8.44%  8.39%  7.99%
    Tier 1 leverage ratio  7.75%  8.16%  8.00%  7.79%  7.50%
    Tangible common equity to tangible assets (1)  6.58%  6.80%  7.12%  6.67%  6.46%
                         
    (1) Non-GAAP financial measures. Refer to pages 13 - 15 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
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands, except per share data) 2021 2021 2021 2021 2020
    Income before income taxes - GAAP $30,600  $25,431  $19,041  $24,040  $10,746 
    Adjustments to noninterest income:                    
    Gain on sales of investment securities, net  -   160   377   -   - 
    Gain on termination of hedged interest rate swap  1,845   -   -   314   - 
    Other income  -   -   (27)  75   3 
    Total adjustments to noninterest income  1,845   160   350   389   3 
    Adjustments to noninterest expense:                    
    Loss on mortgage servicing rights held for sale  -   79   143   -   617 
    Impairment related to facilities optimization  -   -   -   -   (10)
    FHLB advances prepayment fees  4,859   -   3,669   8   4,872 
    Integration and acquisition expenses  171   176   3,771   238   231 
    Total adjustments to noninterest expense  5,030   255   7,583   246   5,710 
    Adjusted earnings pre tax  33,785   25,526   26,274   23,897   16,453 
    Adjusted earnings tax  8,369   5,910   6,519   5,463   3,982 
    Adjusted earnings - non-GAAP $25,416  $19,616  $19,755  $18,434  $12,471 
    Adjusted diluted earnings per common share $1.12  $0.86  $0.86  $0.81  $0.54 
    Adjusted return on average assets  1.39%  1.15%  1.17%  1.11%  0.73%
    Adjusted return on average shareholders' equity  15.44%  11.94%  12.36%  11.97%  7.97%
    Adjusted return on average tangible common equity  21.65%  16.82%  17.52%  17.18%  11.50%
                         
                         
    Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
                         
      For the Quarter Ended
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands) 2021 2021 2021 2021 2020
    Adjusted earnings pre tax - non- GAAP $33,785  $25,526  $26,274  $23,897  $16,453 
    Provision for credit losses  467   (184)  (455)  3,565   10,058 
    Impairment on commercial mortgage servicing rights  2,072   3,037   1,148   1,275   2,344 
    Adjusted pre-tax, pre-provision earnings - non-GAAP $36,324  $28,379  $26,967  $28,737  $28,855 
    Adjusted pre-tax, pre-provision return on average assets  1.98%  1.67%  1.60%  1.73%  1.69%
                         


                         
    MIDLAND STATES BANCORP, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
                         
                         
    Efficiency Ratio Reconciliation
                         
      For the Quarter Ended
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands) 2021 2021 2021 2021 2020
    Noninterest expense - GAAP $45,757  $41,292  $48,941  $39,079  $47,048 
    Loss on mortgage servicing rights held for sale  -   (79)  (143)  -   (617)
    Impairment related to facilities optimization  -   -   -   -   10 
    FHLB advances prepayment fees  (4,859)  -   (3,669)  (8)  (4,872)
    Integration and acquisition expenses  (171)  (176)  (3,771)  (238)  (231)
    Adjusted noninterest expense $40,727  $41,037  $41,358  $38,833  $41,338 
                         
    Net interest income - GAAP $54,301  $51,396  $50,110  $51,868  $53,516 
    Effect of tax-exempt income  372   402   383   386   413 
    Adjusted net interest income  54,673   51,798   50,493   52,254   53,929 
                         
    Noninterest income - GAAP  22,523   15,143   17,417   14,816   14,336 
    Impairment on commercial mortgage servicing rights  2,072   3,037   1,148   1,275   2,344 
    Gain on sales of investment securities, net  -   (160)  (377)  -   - 
    Gain on termination of hedged interest rate swap  (1,845)  -   -   (314)  - 
    Other  -   -   27   (75)  (3)
    Adjusted noninterest income  22,750   18,020   18,215   15,702   16,677 
                         
    Adjusted total revenue $77,423  $69,818  $68,708  $67,956  $70,606 
                         
    Efficiency ratio  52.61%  58.78%  60.19%  57.14%  58.55%
                         


                         
    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
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands, except per share data) 2021 2021 2021 2021 2020
    Shareholders' Equity to Tangible Common Equity                    
    Total shareholders' equity—GAAP $663,837  $657,844  $648,186  $635,467  $621,391 
    Adjustments:                    
    Goodwill  (161,904)  (161,904)  (161,904)  (161,904)  (161,904)
    Other intangible assets, net  (24,374)  (26,065)  (27,900)  (26,867)  (28,382)
    Tangible common equity $477,558  $469,875  $458,382  $446,696  $431,105 
                         
    Total Assets to Tangible Assets:                    
    Total assets—GAAP $7,443,805  $7,093,959  $6,630,010  $6,884,786  $6,868,540 
    Adjustments:                    
    Goodwill  (161,904)  (161,904)  (161,904)  (161,904)  (161,904)
    Other intangible assets, net  (24,374)  (26,065)  (27,900)  (26,867)  (28,382)
    Tangible assets $7,257,527  $6,905,990  $6,440,206  $6,696,015  $6,678,254 
                         
    Common Shares Outstanding  22,050,537   22,193,141   22,380,492   22,351,740   22,325,471 
                         
    Tangible Common Equity to Tangible Assets  6.58%  6.80%  7.12%  6.67%  6.46%
    Tangible Book Value Per Share $21.66  $21.17  $20.48  $19.98  $19.31 
                         
    Return on Average Tangible Common Equity (ROATCE)
                         
      For the Quarter Ended
      December 31, September 30,  June 30, March 31, December 31,
    (dollars in thousands) 2021 2021 2021 2021 2020
    Net income available to common shareholders $23,107  $19,548  $20,124  $18,538  $8,333 
                         
    Average total shareholders' equity—GAAP $652,892  $651,751  $641,079  $624,661  $622,594 
    Adjustments:                    
    Goodwill  (161,904)  (161,904)  (161,904)  (161,904)  (161,904)
    Other intangible assets, net  (25,311)  (27,132)  (26,931)  (27,578)  (29,123)
    Average tangible common equity $465,677  $462,715  $452,244  $435,179  $431,567 
    ROATCE  19.69%  16.76%  17.85%  17.28%  7.68%
                         

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