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

    ソース: Nasdaq GlobeNewswire / 22 7 2021 15:15:01   America/Chicago

    Summary

    • Net income of $20.1 million, or $0.88 diluted earnings per share
    • Return on average shareholders’ equity of 12.59%
    • Return on average tangible common equity of 17.85%
    • Tangible common equity to tangible assets ratio increased 45 bps to 7.12%
    • Book value and tangible book value per share increased 1.9% and 2.5%, respectively
    • Acquisition of ATG Trust Company completed in June 2021

    EFFINGHAM, Ill., July 22, 2021 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income of $20.1 million, or $0.88 diluted earnings per share, for the second quarter of 2021, which included a $6.8 million tax benefit related to the settlement of a prior tax issue, $3.6 million in professional fees related to the settlement, and a $3.7 million charge related to the prepayment of a longer-term FHLB advance. This compares to net income of $18.5 million, or $0.81 diluted earnings per share, for the first quarter of 2021, and to net income of $12.6 million, or $0.53 diluted earnings per share, for the second quarter of 2020.

    Jeffrey G. Ludwig, President and Chief Executive Officer of the Company, said, “We continue to see strong improvement in our level of profitability resulting from the changes we have made in our operations to generate a more consistent revenue mix and increase our focus on businesses that produce higher returns. The higher level of profitability we are generating is strengthening our capital ratios and enhancing our ability to support organic and acquisitive growth in the future.

    “Economic conditions are steadily improving and creating more loan demand. During the second quarter, we saw increased production in our equipment finance, construction, and commercial real estate lending areas, which helped offset continued runoff in PPP loans and a decline in utilization of commercial FHA warehouse lines of credit. Excluding PPP loans and commercial FHA warehouse lines of credit, total loans increased at an annualized rate of 6% during the second quarter, which was at the high end of our expected range. The increased economic activity is also leading to higher levels of non-interest income, which increased 18% from the prior quarter. The increase in non-interest income was partially driven by a 10% increase in wealth management revenue resulting from our acquisition of ATG Trust Company in June.

    “We continue to expect an increase in loan growth during the second half of the year. The loan pipeline in our Community Banking group is approximately 14% higher than it was at the end of the first quarter, which reflects improving loan demand and the contributions we are seeing from new bankers added over the past several months. As loan growth increases, we expect that we will see further improvement in our level of profitability driven by additional operating leverage and a favorable shift in our mix of earning assets,” said Mr. Ludwig.

    Adjusted Earnings

    Financial results for the second quarter of 2021 were impacted by a $6.8 million tax benefit related to the settlement of a prior tax issue, $3.8 million of integration and acquisition expenses inclusive of the $3.6 million in professional fees related to the settlement, and a $3.7 million charge related to the prepayment of a longer-term FHLB advance. Excluding these amounts and certain other income and expense, adjusted earnings were $19.8 million, or $0.86 diluted earnings per share, for the second quarter of 2021.

    Financial results for the second quarter of 2020 were impacted by a $0.4 million loss on residential mortgage servicing rights (“MSRs”) held-for-sale and $0.1 million in integration and acquisition expenses. Excluding these amounts and certain income, adjusted earnings were $12.9 million, or $0.55 diluted earnings per share, for the second 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 second quarter of 2021 was 3.29%, compared to 3.45% for the first quarter of 2021. The Company’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 9 and 8 basis points to net interest margin in the second quarter of 2021 and first quarter of 2021, respectively. Excluding the impact of accretion income, net interest margin declined 17 basis points from the first quarter of 2021, due primarily to an unfavorable shift in the mix of earning assets.

    Relative to the second quarter of 2020, net interest margin decreased from 3.32%. Accretion income on purchased loan portfolios contributed 12 basis points to net interest margin in the second quarter of 2020. Excluding the impact of accretion income, net interest margin was unchanged compared to the second quarter of 2020.  

    Net Interest Income

    Net interest income for the second quarter of 2021 was $50.1 million, a decrease of 3.4% from $51.9 million for the first quarter of 2021. Excluding accretion income, net interest income decreased $1.9 million from the prior quarter, which was primarily due to lower levels of loan prepayment fees, an unfavorable shift in the mix of earning assets, and the recovery of interest on a previously charged-off loan during the first quarter of 2021. Accretion income associated with purchased loan portfolios totaled $1.3 million for the second quarter of 2021, compared with $1.2 million for the first quarter of 2021. PPP loan income totaled $2.5 million, including loan origination fees of $2.0 million, in the second quarter of 2021, compared to $2.6 million, including loan origination fees of $2.1 million, in the first quarter of 2021.

    Relative to the second quarter of 2020, net interest income increased $1.1 million, or 2.3%. Accretion income for the second quarter of 2020 was $1.8 million. Excluding the impact of accretion income, net interest income increased primarily due to organic loan growth and a significant decline in the cost of funds.

    Noninterest Income

    Noninterest income for the second quarter of 2021 was $17.4 million, an increase of 17.6% from $14.8 million for the first quarter of 2021.   Impairment on commercial MSRs impacted noninterest income by $1.1 million and $1.3 million in the second quarter of 2021 and first quarter of 2021, respectively. Excluding the impairments, noninterest income increased 15.4% primarily due to higher levels of wealth management and interchange revenue, as well as gains on the sale of investment securities and other real estate owned.

    Relative to the second quarter of 2020, noninterest income decreased 10.2% from $19.4 million. The decrease was primarily attributable to a lower level of commercial FHA revenue due to the sale of the loan origination platform, partially offset by higher wealth management revenue.

    Wealth management revenue for the second quarter of 2021 was $6.5 million, an increase of 10.1% from the first quarter of 2021, primarily due to the one month contribution of ATG Trust Company following its acquisition at the beginning of June. Compared to the second quarter of 2020, wealth management revenue increased 14.6%, primarily due to the increase in assets under administration over the past year and the one month contribution of ATG Trust Company.

    Noninterest Expense

    Noninterest expense for the second quarter of 2021 was $48.9 million, which included $3.6 million in professional fees related to the settlement of the prior tax issue and $3.7 million in FHLB advance prepayment fees, compared with $39.1 million in the first quarter of 2021, which included $0.2 million in integration and acquisition expenses. Excluding the professional fees related to the settlement of the prior tax issue, FHLB advance prepayment fees, and integration and acquisition expenses, noninterest expense increased by $2.5 million, primarily due to an increase in salaries and employees benefit expense resulting from higher incentive compensation.

    Relative to the second quarter of 2020, noninterest expense increased 18.2% from $41.4 million, which included a $0.4 million loss on residential MSRs held for sale and $0.1 million in integration and acquisition expenses. Excluding the professional fees related to the settlement of the prior tax issue, FHLB advance prepayment fees, loss on residential MSRs held for sale, and integration and acquisition expenses, noninterest expense increased $0.4 million, primarily due to higher salaries and employee benefits expense.

    Loan Portfolio

    Total loans outstanding were $4.84 billion at June 30, 2021, compared with $4.91 billion at March 31, 2021 and $4.84 billion at June 30, 2020. The decrease in total loans from March 31, 2021 was primarily attributable to lower end-of-period balances on commercial FHA warehouse lines of credit, forgiveness of PPP loans, and runoff in the residential real estate portfolio resulting from refinancings, which was partially offset by higher commercial real estate, construction and consumer loans.

    Equipment finance balances increased $12.9 million from March 31, 2021 to $871.5 million at June 30, 2021, which are booked within the commercial loans and leases portfolio.  

    Compared to loan balances at June 30, 2020, growth in equipment finance balances, commercial real estate, and consumer loans was offset by declines in residential real estate loans and PPP loans held in the commercial portfolio.

    Deposits

    Total deposits were $5.20 billion at June 30, 2021, compared with $5.34 billion at March 31, 2021, and $4.94 billion at June 30, 2020. The decrease in total deposits from the end of the prior quarter was primarily attributable to a decline in commercial FHA servicing deposits and outflows of retail deposits consistent with the increase in economic activity in the Company’s markets.

    Asset Quality

    Nonperforming loans totaled $61.4 million, or 1.27% of total loans, at June 30, 2021, compared with $52.8 million, or 1.08% of total loans, at March 31, 2021. The increase in nonperforming loans was primarily attributable to three loans in the hotel/motel portfolio placed on nonaccrual during the quarter. At June 30, 2020, nonperforming loans totaled $60.5 million, or 1.25% of total loans.

    Net charge-offs for the second quarter of 2021 were $4.0 million, or 0.33% of average loans on an annualized basis, compared to net charge-offs of $1.7 million, or 0.14% of average loans on an annualized basis, for the first quarter of 2021 and $3.1 million, or 0.26% of average loans on an annualized basis, for the second quarter of 2020.  

    The Company recorded a negative provision for credit losses of $0.5 million for the second quarter of 2021. No provision for credit losses on loans was recorded due to general improvement in portfolio mix and economic forecasts, while a negative provision of $0.5 million was recorded for credit losses on unfunded commitments and available-for-sale securities.

    The Company’s allowance for credit losses on loans was 1.21% of total loans and 95.6% of nonperforming loans at June 30, 2021, compared with 1.28% of total loans and 118.7% of nonperforming loans at March 31, 2021. Approximately 91.6% of the allowance for credit losses on loans at June 30, 2021 was allocated to general reserves.

    Capital

    At June 30, 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
    June 30, 2021
    Consolidated
    Ratios as of
    June 30, 2021
    Minimum
    Regulatory
    Requirements (2)
    Total capital to risk-weighted assets11.98%13.11%10.50%
    Tier 1 capital to risk-weighted assets11.06%9.64%8.50%
    Tier 1 leverage ratio9.19%8.00%4.00%
    Common equity Tier 1 capital11.06%8.44%7.00%
    Tangible common equity to tangible assets (1)NA7.12%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 second quarter of 2021, the Company did not repurchase any shares of its common stock. As of June 30, 2021, the Company had $5.2 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, July 23, 2021, to discuss its financial results. The call can be accessed via telephone at (877) 516-3531; conference ID: 6112677. A recorded replay can be accessed through July 30, 2021, by dialing (855) 859-2056; conference ID: 6112677.

    A slide presentation relating to the second 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 June 30, 2021, the Company had total assets of approximately $6.63 billion, and its Wealth Management Group had assets under administration of approximately $4.08 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; 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
      June 30, March 31, December 31, September 30,  June 30,
    (dollars in thousands, except per share data) 2021 2021 2020 2020 2020
    Earnings Summary                    
    Net interest income $50,110  $51,868  $53,516  $49,980  $48,989 
    Provision for credit losses  (455)  3,565   10,058   11,728   10,997 
    Noninterest income  17,417   14,816   14,336   18,919   19,396 
    Noninterest expense  48,941   39,079   47,048   53,901   41,395 
    Income before income taxes  19,041   24,040   10,746   3,270   15,993 
    Income taxes  (1,083  5,502   2,413   3,184   3,424 
    Net income $20,124  $18,538  $8,333  $86  $12,569 
                         
    Diluted earnings per common share $0.88  $0.81  $0.36  $-  $0.53 
    Weighted average shares outstanding - diluted  22,677,515   22,578,553   22,656,343   22,937,837   23,339,964 
    Return on average assets  1.20%  1.11%  0.49%  0.01%  0.77%
    Return on average shareholders' equity  12.59%  12.04%  5.32%  0.05%  8.00%
    Return on average tangible common equity (1)  17.85%  17.28%  7.68%  0.08%  11.84%
    Net interest margin  3.29%  3.45%  3.47%  3.33%  3.32%
    Efficiency ratio (1)  60.19%  56.88%  58.55%  57.74%  59.42%
                         
    Adjusted Earnings Performance Summary (1)                    
    Adjusted earnings $19,755  $18,662  $12,471  $12,023  $12,884 
    Adjusted diluted earnings per common share $0.86  $0.82  $0.54  $0.52  $0.55 
    Adjusted return on average assets  1.17%  1.12%  0.73%  0.72%  0.78%
    Adjusted return on average shareholders' equity  12.36%  12.12%  7.97%  7.56%  8.20%
    Adjusted return on average tangible common equity  17.52%  17.39%  11.50%  11.04%  12.14%
    Adjusted pre-tax, pre-provision earnings $26,967  $29,051  $28,855  $28,751  $27,531 
    Adjusted pre-tax, pre-provision return on average assets  1.60%  1.75%  1.69%  1.72%  1.68%
                         
    (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
      June 30, March 31, December 31, September 30,  June 30,
    (in thousands, except per share data) 2021 2021 2020 2020 2020
    Net interest income:               
    Interest income $58,397  $60,503  $62,712  $60,314  $60,548 
    Interest expense  8,287   8,635   9,196   10,334   11,559 
    Net interest income  50,110   51,868   53,516   49,980   48,989 
    Provision for credit losses:               
    Provision for credit losses on loans  -   3,950   10,000   10,970   11,610 
    Provision for credit losses on unfunded commitments  (265)  (535)  -   577   (665)
    Provision for other credit losses  (190)  150   58   181   52 
    Total provision for credit losses  (455)  3,565   10,058   11,728   10,997 
    Net interest income after provision for credit losses  50,565   48,303   43,458   38,252   37,992 
    Noninterest income:               
    Wealth management revenue  6,529   5,931   5,868   5,559   5,698 
    Commercial FHA revenue  342   292   400   926   3,414 
    Residential mortgage banking revenue  1,562   1,574   2,285   3,049   2,723 
    Service charges on deposit accounts  1,916   1,826   2,149   2,092   1,706 
    Interchange revenue  3,797   3,375   3,137   3,283   3,013 
    Gain on sales of investment securities, net  377   -   -   1,721   - 
    Impairment on commercial mortgage servicing rights  (1,148)  (1,275)  (2,344)  (1,418)  (107)
    Company-owned life insurance  863   860   893   897   892 
    Other income  3,179   2,233   1,948   2,810   2,057 
    Total noninterest income  17,417   14,816   14,336   18,919   19,396 
    Noninterest expense:               
    Salaries and employee benefits  22,071   20,528   22,636   21,118   20,740 
    Occupancy and equipment  3,796   3,940   3,531   4,866   4,286 
    Data processing  6,288   5,993   5,987   5,721   5,458 
    Professional  5,549   2,185   1,912   1,861   1,606 
    Amortization of intangible assets  1,470   1,515   1,556   1,557   1,629 
    Loss on mortgage servicing rights held for sale  143   -   617   188   391 
    Impairment related to facilities optimization  -   -   (10)  12,651   60 
    FHLB advances prepayment fees  3,669   8   4,872   -   - 
    Other expense  5,955   4,910   5,947   5,939   7,225 
    Total noninterest expense  48,941   39,079   47,048   53,901   41,395 
    Income before income taxes  19,041   24,040   10,746   3,270   15,993 
    Income taxes  (1,083)  5,502   2,413   3,184   3,424 
    Net income $20,124  $18,538  $8,333  $86  $12,569 
                    
    Basic earnings per common share $0.88  $0.81  $0.36  $0.00  $0.53 
    Diluted earnings per common share $0.88  $0.81  $0.36  $0.00  $0.53 
                    


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                    
      As of
      June 30, March 31, December 31, September 30,  June 30,
    (in thousands) 2021 2021 2020 2020 2020
    Assets               
    Cash and cash equivalents $425,100  $631,219  $341,640  $461,196  $519,868 
    Investment securities  756,831   690,390   686,135   618,974   639,693 
    Loans  4,835,866   4,910,806   5,103,331   4,941,466   4,839,423 
    Allowance for credit losses on loans  (58,664)  (62,687)  (60,443)  (52,771)  (47,093)
    Total loans, net  4,777,202   4,848,119   5,042,888   4,888,695   4,792,330 
    Loans held for sale  12,187   55,174   138,090   62,500   32,403 
    Premises and equipment, net  71,803   73,255   74,124   74,967   89,046 
    Other real estate owned  12,768   20,304   20,247   15,961   12,728 
    Loan servicing rights, at lower of cost or fair value  34,577   36,876   39,276   42,465   44,239 
    Goodwill  161,904   161,904   161,904   161,904   172,796 
    Other intangible assets, net  27,900   26,867   28,382   29,938   31,495 
    Cash surrender value of life insurance policies  148,277   146,864   146,004   145,112   144,215 
    Other assets  201,461   193,814   189,850   198,333   165,685 
    Total assets $6,630,010  $6,884,786  $6,868,540  $6,700,045  $6,644,498 
                    
    Liabilities and Shareholders' Equity               
    Noninterest-bearing deposits $1,366,453  $1,522,433  $1,469,579  $1,355,188  $1,273,267 
    Interest-bearing deposits  3,829,898   3,818,080   3,631,437   3,673,548   3,669,840 
    Total deposits  5,196,351   5,340,513   5,101,016   5,028,736   4,943,107 
    Short-term borrowings  75,985   71,728   68,957   58,625   77,136 
    FHLB advances and other borrowings  440,171   529,171   779,171   693,640   693,865 
    Subordinated debt  138,906   169,888   169,795   169,702   169,610 
    Trust preferred debentures  49,094   48,954   48,814   48,682   48,551 
    Other liabilities  81,317   89,065   79,396   78,780   78,640 
    Total liabilities  5,981,824   6,249,319   6,247,149   6,078,165   6,010,909 
    Total shareholders’ equity  648,186   635,467   621,391   621,880   633,589 
    Total liabilities and shareholders’ equity $6,630,010  $6,884,786  $6,868,540  $6,700,045  $6,644,498 
                    


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      As of
      June 30, March 31, December 31, September 30,  June 30,
    (in thousands) 2021 2021 2020 2020 2020
    Loan Portfolio                    
    Commercial loans and leases $1,831,241  $1,977,440  $2,095,639  $1,938,691  $1,856,435 
    Commercial real estate  1,540,489   1,494,031   1,525,973   1,496,758   1,495,183 
    Construction and land development  212,508   191,870   172,737   177,894   207,593 
    Residential real estate  366,612   398,501   442,880   470,829   509,453 
    Consumer  885,016   848,964   866,102   857,294   770,759 
    Total loans $4,835,866  $4,910,806  $5,103,331  $4,941,466  $4,839,423 
                         
    Deposit Portfolio                    
    Noninterest-bearing demand $1,366,453  $1,522,433  $1,469,579  $1,355,188  $1,273,267 
    Interest-bearing:                    
    Checking  1,619,436   1,601,449   1,568,888   1,581,216   1,484,728 
    Money market  787,688   819,455   785,871   826,454   877,675 
    Savings  669,277   653,256   597,966   580,748   594,685 
    Time  721,502   718,788   655,620   661,872   689,841 
    Brokered time  31,995   25,132   23,092   23,258   22,911 
    Total deposits $5,196,351  $5,340,513  $5,101,016  $5,028,736  $4,943,107 
                         


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      For the Quarter Ended
      June 30, March 31, December 31, September 30,  June 30,
    (dollars in thousands) 2021 2021 2020 2020 2020
    Average Balance Sheets                    
    Cash and cash equivalents $509,886  $350,061  $415,686  $491,728  $489,941 
    Investment securities  734,462   680,202   672,937   628,705   650,356 
    Loans  4,826,234   4,992,802   4,998,912   4,803,940   4,696,288 
    Loans held for sale  36,299   65,365   45,196   44,880   99,169 
    Nonmarketable equity securities  49,388   55,935   51,906   50,765   50,661 
    Total interest-earning assets  6,156,269   6,144,365   6,184,637   6,020,018   5,986,415 
    Non-earning assets  589,336   602,017   602,716   625,522   619,411 
    Total assets $6,745,605  $6,746,382  $6,787,353  $6,645,540  $6,605,826 
                         
    Interest-bearing deposits $3,815,179  $3,757,108  $3,680,645  $3,656,833  $3,651,406 
    Short-term borrowings  65,727   75,544   62,432   64,010   59,103 
    FHLB advances and other borrowings  519,490   617,504   682,981   693,721   692,470 
    Subordinated debt  165,155   169,844   169,751   169,657   169,560 
    Trust preferred debentures  49,026   48,887   48,751   48,618   48,487 
    Total interest-bearing liabilities  4,614,577   4,668,887   4,644,560   4,632,839   4,621,026 
    Noninterest-bearing deposits  1,411,428   1,370,604   1,446,359   1,303,963   1,280,983 
    Other noninterest-bearing liabilities  78,521   82,230   73,840   75,859   71,853 
    Shareholders' equity  641,079   624,661   622,594   632,879   631,964 
    Total liabilities and shareholders' equity $6,745,605  $6,746,382  $6,787,353  $6,645,540  $6,605,826 
                         
    Yields                    
    Earning Assets                    
    Cash and cash equivalents  0.11%  0.11%  0.12%  0.10%  0.14%
    Investment securities  2.43%  2.51%  2.65%  2.86%  3.05%
    Loans  4.43%  4.50%  4.58%  4.57%  4.64%
    Loans held for sale  2.88%  2.74%  3.14%  2.92%  4.07%
    Nonmarketable equity securities  4.94%  4.93%  5.22%  5.26%  5.40%
    Total interest-earning assets  3.83%  4.02%  4.06%  4.01%  4.10%
                         
    Interest-Bearing Liabilities                    
    Interest-bearing deposits  0.31%  0.34%  0.36%  0.46%  0.61%
    Short-term borrowings  0.12%  0.13%  0.14%  0.17%  0.19%
    FHLB advances and other borrowings  1.91%  1.69%  1.71%  1.85%  1.69%
    Subordinated debt  5.61%  5.57%  5.60%  5.58%  5.85%
    Trust preferred debentures  4.00%  4.08%  4.03%  4.16%  4.86%
    Total interest-bearing liabilities  0.72%  0.75%  0.79%  0.89%  1.01%
                         
    Cost of Deposits  0.23%  0.25%  0.26%  0.34%  0.45%
                         
    Net Interest Margin  3.29%  3.45%  3.47%  3.33%  3.32%
                         


    MIDLAND STATES BANCORP, INC.
    CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                         
      As of and for the Quarter Ended
      June 30, March 31, December 31, September 30,  June 30,
    (dollars in thousands, except per share data) 2021 2021 2020 2020 2020
    Asset Quality                    
    Loans 30-89 days past due $20,224  $24,819  $31,460  $28,188  $36,551 
    Nonperforming loans  61,363   52,826   54,070   67,443   60,513 
    Nonperforming assets  76,926   75,004   75,432   84,795   74,707 
    Net charge-offs  4,023   1,706   2,328   5,292   3,062 
    Loans 30-89 days past due to total loans  0.42%  0.51%  0.62%  0.57%  0.76%
    Nonperforming loans to total loans  1.27%  1.08%  1.06%  1.36%  1.25%
    Nonperforming assets to total assets  1.16%  1.09%  1.10%  1.27%  1.12%
    Allowance for credit losses to total loans  1.21%  1.28%  1.18%  1.07%  0.97%
    Allowance for credit losses to nonperforming loans  95.60%  118.67%  111.79%  78.25%  77.82%
    Net charge-offs to average loans  0.33%  0.14%  0.19%  0.44%  0.26%
                         
    Wealth Management                    
    Trust assets under administration $4,077,581  $3,560,427  $3,480,759  $3,260,893  $3,253,784 
                         
    Market Data                    
    Book value per share at period end $28.96  $28.43  $27.83  $27.51  $27.62 
    Tangible book value per share at period end (1) $20.48  $19.98  $19.31  $19.03  $18.72 
    Market price at period end $26.27  $27.74  $17.87  $12.85  $14.95 
    Shares outstanding at period end  22,380,492   22,351,740   22,325,471   22,602,844   22,937,296 
                         
    Capital                    
    Total capital to risk-weighted assets  13.11%  13.73%  13.24%  13.34%  13.67%
    Tier 1 capital to risk-weighted assets  9.64%  9.62%  9.20%  9.40%  9.71%
    Tier 1 common capital to risk-weighted assets  8.44%  8.39%  7.99%  8.18%  8.44%
    Tier 1 leverage ratio  8.00%  7.79%  7.50%  7.72%  7.75%
    Tangible common equity to tangible assets (1)  7.12%  6.67%  6.46%  6.61%  6.67%
                         
    (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
      June 30, March 31, December 31, September 30,  June 30,
    (dollars in thousands, except per share data) 2021 2021 2020 2020 2020
    Income before income taxes - GAAP $19,041  $24,040  $10,746  $3,270  $15,993 
    Adjustments to noninterest income:                
    Gain on sales of investment securities, net  377   -   -   1,721   - 
    Other income  (27)  75   3   (17)  11 
    Total adjustments to noninterest income  350   75   3   1,704   11 
    Adjustments to noninterest expense:                
    Loss on mortgage servicing rights held for sale  143   -   617   188   391 
    Impairment related to facilities optimization  -   -   (10)  12,651   60 
    FHLB advances prepayment fees  3,669   8   4,872   -   - 
    Integration and acquisition expenses  3,771   238   231   1,200   (6)
    Total adjustments to noninterest expense  7,583   246   5,710   14,039   445 
    Adjusted earnings pre tax  26,274   24,211   16,453   15,605   16,427 
    Adjusted earnings tax  6,519   5,549   3,982   3,582   3,543 
    Adjusted earnings - non-GAAP $19,755  $18,662  $12,471  $12,023  $12,884 
    Adjusted diluted earnings per common share $0.86  $0.82  $0.54  $0.52  $0.55 
    Adjusted return on average assets  1.17%  1.12%  0.73%  0.72%  0.78%
    Adjusted return on average shareholders' equity  12.36%  12.12%  7.97%  7.56%  8.20%
    Adjusted return on average tangible common equity  17.52%  17.39%  11.50%  11.04%  12.14%
                     
                     
    Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation
                     
      For the Quarter Ended
      June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands) 2021 2021 2020 2020 2020
    Adjusted earnings pre tax - non- GAAP $26,274  $24,211  $16,453  $15,605  $16,427 
    Provision for credit losses  (455)  3,565   10,058   11,728   10,997 
    Impairment on commercial mortgage servicing rights  1,148   1,275   2,344   1,418   107 
    Adjusted pre-tax, pre-provision earnings - non-GAAP $26,967  $29,051  $28,855  $28,751  $27,531 
    Adjusted pre-tax, pre-provision return on average assets  1.60%  1.75%  1.69%  1.72%  1.68%
                     


    MIDLAND STATES BANCORP, INC.
    RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued)
                    
                    
    Efficiency Ratio Reconciliation
      For the Quarter Ended
      June 30, March 31, December 31, September 30,  June 30,
    (dollars in thousands) 2021 2021 2020 2020 2020
    Noninterest expense - GAAP $48,941  $39,079  $47,048  $53,901  $41,395 
    Loss on mortgage servicing rights held for sale  (143)  -   (617)  (188)  (391)
    Impairment related to facilities optimization  -   -   10   (12,651)  (60)
    FHLB advances prepayment fees  (3,669)  (8)  (4,872)  -   - 
    Integration and acquisition expenses  (3,771)  (238)  (231)  (1,200)  6 
    Adjusted noninterest expense $41,358  $38,833  $41,338  $39,862  $40,950 
                    
    Net interest income - GAAP $50,110  $51,868  $53,516  $49,980  $48,989 
    Effect of tax-exempt income  383   386   413   430   438 
    Adjusted net interest income  50,493   52,254   53,929   50,410   49,427 
                    
    Noninterest income - GAAP  17,417   14,816   14,336   18,919   19,396 
    Impairment on commercial mortgage servicing rights  1,148   1,275   2,344   1,418   107 
    Gain on sales of investment securities, net  (377)  -   -   (1,721)  - 
    Other  27   (75)  (3)  17   (11)
    Adjusted noninterest income  18,215   16,016   16,677   18,633   19,492 
                    
    Adjusted total revenue $68,709  $68,270  $70,607  $69,043  $68,919 
                    
    Efficiency ratio  60.19%  56.88%  58.55%  57.74%  59.42%
                    


    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
      June 30, March 31, December 31, September 30,  June 30,
    (dollars in thousands, except per share data) 2021 2021 2020 2020 2020
    Shareholders' Equity to Tangible Common Equity               
    Total shareholders' equity—GAAP $648,186  $635,467  $621,391  $621,880  $633,589 
    Adjustments:               
    Goodwill  (161,904)  (161,904)  (161,904)  (161,904)  (172,796)
    Other intangible assets, net  (27,900)  (26,867)  (28,382)  (29,938)  (31,495)
    Tangible common equity $458,382  $446,696  $431,105  $430,038  $429,298 
                    
    Total Assets to Tangible Assets:               
    Total assets—GAAP $6,630,010  $6,884,786  $6,868,540  $6,700,045  $6,644,498 
    Adjustments:               
    Goodwill  (161,904)  (161,904)  (161,904)  (161,904)  (172,796)
    Other intangible assets, net  (27,900)  (26,867)  (28,382)  (29,938)  (31,495)
    Tangible assets $6,440,206  $6,696,015  $6,678,254  $6,508,203  $6,440,207 
                    
    Common Shares Outstanding  22,380,492   22,351,740   22,325,471   22,602,844   22,937,296 
                    
    Tangible Common Equity to Tangible Assets  7.12%  6.67%  6.46%  6.61%  6.67%
    Tangible Book Value Per Share $20.48  $19.98  $19.31  $19.03  $18.72 
                    
    Return on Average Tangible Common Equity (ROATCE)
                    
      For the Quarter Ended
      June 30, March 31, December 31, September 30, June 30,
    (dollars in thousands) 2021 2021 2020 2020 2020
    Net income available to common shareholders $20,124  $18,538  $8,333  $86  $12,569 
                    
    Average total shareholders' equity—GAAP $641,079  $624,661  $622,594  $632,879  $631,964 
    Adjustments:               
    Goodwill  (161,904)  (161,904)  (161,904)  (168,771)  (172,796)
    Other intangible assets, net  (26,931)  (27,578)  (29,123)  (30,690)  (32,275)
    Average tangible common equity $452,244  $435,179  $431,567  $433,418  $426,893 
    ROATCE  17.85%  17.28%  7.68%  0.08%  11.84%
                    

    Primary Logo

シェアする