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,
(dollars in thousands)		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 jludwig@midlandsb.com or (217) 342-7321

Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com 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

Midland States Bancorp, Inc. Announces 2025 Fourth Quarter Results