Midland States Bancorp, Inc. Announces 2025 Third Quarter Results

EFFINGHAM, Ill., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ:MSBI) (the "Company") today reported net income available to common shareholders of $5.3 million, or

$0.24 per diluted share, for the third quarter of 2025, compared to net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025.

This also compares to net income of $18.2 million, or $0.83 per diluted share, for the third quarter of 2024.

2025 Third Quarter Results

• Net income available to common shareholders of $5.3 million, or $0.24 per diluted share
• Pre-provision net revenue of $31.3 million, or $1.43 per diluted share, compared to $32.2 million, or $1.48 per diluted share, for the second quarter of 2025
• Net interest margin of 3.79%, compared to 3.56% in prior quarter; excluding interest recoveries, net interest margin was 3.69%
• Nonperforming assets to total assets of 1.02%, compared to 1.15% in prior quarter
• Total capital to risk-weighted assets of 14.29% and common equity tier 1 capital of 9.37%
• Ceased equipment finance production effective September 30, 2025
  
  

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

"Although we are disappointed in our financial results this quarter, we have made meaningful progress on several strategic initiatives. The financial results included $15 million of provision in our equipment finance portfolio reflecting an increase in our loss given default assumptions. Given our current outlook and the allowance held against this portfolio, we believe we are appropriately reserved for future credit losses.

"Reducing problem loans has been a priority this year and importantly, our nonperforming assets decreased to $70 million, or 1.02% of total assets. This represents a pronounced decline from 2.10% at December 31, 2024. Along with our previously discussed strategic decision to tighten underwriting standards in our specialty finance portfolio, we have made the decision to cease originations in equipment finance to further reduce our exposure to higher-risk asset classes.

"Our capital position also improved, with the common equity tier 1 capital ratio rising to 9.4% and remaining on track to reach our 10.0% target. On September 30, we completed the previously announced redemption of $50.75 million in subordinated notes, using existing liquidity.

"Revenue trends were positive, bolstered by the expansion of the net interest margin and continued strong contribution from our wealth management platform, which posted a record quarter with $8 million of revenue. We also saw solid deposit growth in our Community Bank."

Key Points for Third Quarter and Outlook

Continuation of Credit Clean-up; Tightened Underwriting Standards

• As a continuation of steps taken to address our credit quality issues, including the sales of non- core loan portfolios and tightened underwriting standards in our specialty finance portfolio, we ceased originations in the equipment finance portfolio effective September 30, 2025.
  
  

• Nonperforming loans and loans 30-89 days past due decreased to $68.7 million and $26.0 million, respectively, at September 30, 2025. Substandard accruing loans rose principally due to two relationships.
  
  

• Net charge-offs were $12.3 million for the quarter, including:
  
  
  • $5.0 million of net charge-offs in our equipment finance portfolio as we continue to see credit issues, primarily in the trucking industry
  • $1.7 million of fully reimbursed net charge-offs related to our third party lending program
  • $3.5 million of net charge-offs in our specialty finance portfolio
    
    

• Provision for credit losses on loans was $20.5 million for the third quarter of 2025. The provision was principally due to an increase in our loss given default assumptions on the equipment finance portfolio due to continued loss trends in the portfolio.
  
  

• Allowance for credit losses on loans was $100.9 million, or 2.07% of total loans.
  
  

The table below summarizes certain information regarding the Company's loan portfolio asset quality as of September 30, 2025.

	As of and for the Three Months Ended
(dollars in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Asset Quality
Loans 30-89 days past due	$	26,019		$	40,959		$	48,221		$	43,681		$	55,329
Nonperforming loans		68,703			80,112			145,690			150,907			114,556
Nonperforming assets		70,369			81,775			151,264			157,409			126,771
Substandard accruing loans		78,901			58,478			77,620			84,058			167,549
Net charge-offs		12,309			29,854			16,878			112,776			22,302
Loans 30-89 days past due to total loans		0.53	%		0.81	%		0.96	%		0.85	%		0.97	%
Nonperforming loans to total loans		1.41	%		1.59	%		2.90	%		2.92	%		2.00	%
Nonperforming assets to total assets		1.02	%		1.15	%		2.08	%		2.10	%		1.65	%
Allowance for credit losses to total loans		2.07	%		1.84	%		2.10	%		2.15	%		2.64	%
Allowance for credit losses to nonperforming loans		146.84	%		115.70	%		72.19	%		73.69	%		131.87	%
Net charge-offs to average loans		0.99	%		2.34	%		1.35	%		7.94	%		1.53	%

Solid Growth Trends in Community Bank & Wealth Management

• Total loans at September 30, 2025 were $4.87 billion, a decrease of $167.7 million from June 30, 2025. Key changes in the loan portfolio were as follows:
  
  
  • Loans originated by our Community Bank decreased $39.2 million, or 1.2%, from June 30, 2025, due to several large payoffs and the reduction in nonperforming loans. Additionally, we exited relationships with several borrowers exhibiting weaker operating performance. We originated $129 million of new loans, versus $182 million in the second quarter, and new production stemmed from commercial clients that provide full banking relationships. Pipelines remain strong and we continued to add to our sales teams in the third quarter.
    
    
  • We continue to intentionally reduce our specialty finance loan portfolio, reflecting our tightened credit standards. Balances in this portfolio decreased $28.4 million during the quarter.

• • Similarly, equipment finance balances declined $73.8 million during the quarter.
  • Non-core loans decreased $26.3 million to $313.0 million from June 30, 2025.
    
    

• Total deposits were $5.60 billion at September 30, 2025, a decrease of $342.1 million from June 30, 2025. The decrease in deposits reflects the following:
  • Servicing deposits and brokered deposits decreased $286.8 million and $81.5 million, respectively, from June 30, 2025. We expect this reduction of higher-cost deposits to positively impact our future net interest margin.
  • Community Bank deposits rose $69.9 million driven by increases in commercial deposits while retail and public funds deposits were down.
    
    

• Wealth Management revenue totaled $8.0 million in the third quarter of 2025. Assets under administration were $4.36 billion at September 30, 2025, an increase from $4.18 billion at June 30, 2025. The Company added new sales positions in the third quarter of 2025 and continues to experience strong pipelines.
  
  

Net Interest Margin

• Net interest margin was 3.79%, up 23 basis points compared to the second quarter of 2025, which included the impact of a $1.6 million interest recovery due to the payoff of a nonaccrual loan. Excluding this benefit, the net interest margin was 3.69%. Most of the expansion stemmed from a continued decline in the cost of funding, as rate cuts enacted by the Federal Reserve Bank in late 2024 continue to result in a lower cost of deposits for the Company, which fell to 2.12% in the third quarter of 2025. The partial quarter effect of the 25 basis point rate cut in September 2025 had a limited effect on the third quarter's results, but should result in additional improvement in funding costs.

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

	For the Three Months Ended
(dollars in thousands)	September 30, 2025						June 30, 2025						September 30, 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	$	78,567	$	849	4.29	%	$	67,326	$	716	4.27	%	$	75,255	$	1,031	5.45	%
Investment securities(1)		1,338,997		15,979	4.73			1,367,180		17,164	5.04			1,162,751		13,752	4.71
Loans(1)(2)		4,947,675		81,012	6.50			5,123,558		79,240	6.20			5,783,408		93,504	6.43
Loans held for sale		9,268		147	6.29			44,642		377	3.39			7,505		124	6.57
Nonmarketable equity    securities		38,559		715	7.36			38,803		694	7.17			41,137		788	7.62
Total interest-earning    assets		6,413,066		98,702	6.11			6,641,509		98,191	5.93			7,070,056		109,199	6.14
Noninterest-earning    assets		498,875						513,801						653,279
Total assets	$	6,911,941					$	7,155,310					$	7,723,335
Interest-Bearing    Liabilities
Interest-bearing deposits	$	4,644,455	$	30,219	2.58	%	$	4,845,609	$	32,290	2.67	%	$	5,132,640	$	41,970	3.25	%
Short-term borrowings		54,839		499	3.61			60,117		573	3.82			53,577		602	4.47
FHLB advances & other    borrowings		386,772		4,044	4.15			363,505		3,766	4.16			428,739		4,743	4.40
Subordinated debt		77,210		1,393	7.16			77,757		1,394	7.19			89,120		1,228	5.48
Trust preferred    debentures		51,602		1,221	9.39			51,439		1,206	9.40			50,990		1,341	10.46
Total interest-bearing    liabilities		5,214,878		37,376	2.84			5,398,427		39,229	2.91			5,755,066		49,884	3.45
Noninterest-bearing    deposits		1,020,196						1,075,945						1,075,712
Other noninterest-    bearing liabilities		100,436						108,819						97,235
Shareholders' equity		576,431						572,119						795,322
Total liabilities and    shareholder's equity	$	6,911,941					$	7,155,310					$	7,723,335
Net Interest Margin			$	61,326	3.79	%			$	58,962	3.56	%			$	59,315	3.34	%
Cost of Deposits					2.12	%					2.19	%					2.69	%

(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, $0.3 million and $0.2 million for the three months ended September 30, 2025, June 30, 2025 and September 30, 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 $20.0 million for the third quarter of 2025, compared to $23.5 million for the second quarter of 2025. Noninterest income for the third quarter of 2025 included a loss on credit enhancement income of $0.2 million compared to income of $3.8 million in the prior quarter. The higher second quarter credit enhancement income was attributable to reimbursements from our program sponsor in connection with charge-offs in our third-party loan origination and servicing program.

• Noninterest expense was $49.8 million for the third quarter of 2025, which included $1.0 million of severance expense due to the decision to cease equipment finance originations, compared to $50.0 million of noninterest expense for the second quarter of 2025.

• Income tax expense was $3.7 million for the third quarter of 2025, compared to $2.8 million for the second quarter of 2025 and $4.5 million for the third quarter of 2024. The resulting effective tax rates were 33.2%, 19.1% and 18.2%, respectively. Tax expense for the third quarter of 2025 included $1.3 million of additional provision related to the completion of our prior year returns.
  
  

Third Quarter 2025 Financial Highlights and Key Performance Indicators:

	As of and for the Three Months Ended
	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Return on average assets		0.43	%		0.67	%		(7.66	)%		(1.59	)%		1.05	%
Pre-provision net revenue to average assets(1)		1.80	%		1.81	%		1.47	%		1.83	%		2.21	%
Net interest margin		3.79	%		3.56	%		3.49	%		3.34	%		3.34	%
Efficiency ratio(1)		61.25	%		60.60	%		64.29	%		62.31	%		53.61	%
Noninterest expense to average assets		2.86	%		2.80	%		11.02	%		3.04	%		2.56	%
Net charge-offs to average loans		0.99	%		2.34	%		1.35	%		7.94	%		1.53	%
Tangible book value per share at period end(1)	$	21.16		$	20.68		$	20.54		$	19.83		$	22.70
Diluted earnings (loss) per common share	$	0.24		$	0.44		$	(6.58	)	$	(1.52	)	$	0.83
Common shares outstanding at period end		21,543,557			21,515,138			21,503,036			21,494,485			21,393,905
Trust assets under administration	$	4,363,756		$	4,181,180		$	4,101,414		$	4,153,080		$	4,268,539

(1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures.



Capital

On September 30, 2025, we redeemed our $50.75 million in subordinated notes. 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 September 30, 2025
	Midland States Bank		Midland States Bancorp, Inc.		Minimum Regulatory Requirements(2)
Total capital to risk-weighted assets	13.34%		14.29%		10.50%
Tier 1 capital to risk-weighted assets	12.08%		12.54%		8.50%
Common equity Tier 1 capital to risk-weighted assets	12.08%		9.37%		7.00%
Tier 1 leverage ratio	9.57%		9.93%		4.00%
Tangible common equity to tangible assets(1)	N/A		6.61%		N/A

(1) A non-GAAP financial measure. Refer to page 10 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 September 30, 2025, the Company had total assets of approximately $6.91 billion, and its Wealth Management Group had assets under administration of approximately $4.36 billion. The Company 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 "Pre-provision net revenue," "Pre-provision net revenue per diluted share," "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," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," ‘outlook," "trends," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACTS:

Jeffrey G. Ludwig, President and CEO, at [email protected] or (217) 342-7321 Eric T. Lemke, Chief Financial Officer, at [email protected] or (217) 342-7321

MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited)
	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands)		2025			2025			2025			2024			2024
Assets
Cash and cash equivalents	$	166,147		$	176,587		$	102,006		$	114,766		$	121,873
Investment securities		1,383,121			1,354,652			1,368,405			1,212,366			1,216,795
Loans		4,867,587			5,035,295			5,018,053			5,167,574			5,728,237
Allowance for credit losses on loans		(100,886	)		(92,690	)		(105,176	)		(111,204	)		(151,067		)
Total loans, net		4,766,701			4,942,605			4,912,877			5,056,370			5,577,170
Loans held for sale		7,535			37,299			287,821			344,947			8,001
Premises and equipment, net		86,005			86,240			86,719			85,710			84,672
Other real estate owned		393			393			4,183			4,941			8,646
Loan servicing rights, at lower of cost or fair value		16,165			16,720			17,278			17,842			18,400
Goodwill		7,927			7,927			7,927			161,904			161,904
Other intangible assets, net		9,619			10,362			11,189			12,100			13,052
Company-owned life insurance		216,494			214,392			212,336			211,168			209,193
Credit enhancement asset		5,765			5,800			5,615			16,804			20,633
Other assets		245,643			254,901			268,448			267,891			263,850
Total assets	$	6,911,515		$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189
Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	1,015,930		$	1,074,212		$	1,090,707		$	1,055,564		$	1,050,617
Interest-bearing deposits		4,588,895			4,872,707			4,845,727			5,141,679			5,206,219
Total deposits		5,604,825			5,946,919			5,936,434			6,197,243			6,256,836
Short-term borrowings		146,766			8,654			40,224			87,499			13,849
FHLB advances and other borrowings		373,000			345,000			498,000			258,000			425,000
Subordinated debt		27,014			77,759			77,754			77,749			82,744
Trust preferred debentures		51,684			51,518			51,358			51,205			51,058
Other liabilities		124,225			104,323			109,597			124,266			103,481
Total liabilities		6,327,514			6,534,173			6,713,367			6,795,962			6,932,968
Total shareholders' equity		584,001			573,705			571,437			710,847			771,221
Total liabilities and shareholders' equity	$	6,911,515		$	7,107,878		$	7,284,804		$	7,506,809		$		7,704,189

MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
	For the Three Months Ended
(dollars in thousands, except per share data)	September 30, 2025			June 30, 2025		March 31, 2025				December 31, 2024				September 30, 2024
Net interest income:
Interest income	$	98,493		$	97,924	$	99,355			$	104,470			$	108,994
Interest expense		37,376			39,229		41,065				45,900				49,884
Net interest income		61,117			58,695		58,290				58,570				59,110
Provision for credit losses on loans		20,505			17,369		10,850				74,183				17,925
Recapture of credit losses on unfunded    commitments		(500	)		—		—				—				—
Total provision for credit losses		20,005			17,369		10,850				74,183				17,925
Net interest income after provision for credit    losses		41,112			41,326		47,440				(15,613		)		41,185
Noninterest income:
Wealth management revenue		8,018			7,379		7,350				7,660				7,104
Service charges on deposit accounts		3,598			3,351		3,305				3,506				3,411
Interchange revenue		3,445			3,463		3,151				3,528				3,506
Residential mortgage banking revenue		735			756		676				637				697
Income on company-owned life insurance		2,102			2,068		2,334				1,975				1,982
Gain (loss) on sales of investment securities, net		14			—		—				(34		)		(44		)
Credit enhancement income (loss)		(242	)		3,848		(578		)		15,810				14,206
Other income		2,346			2,669		1,525				2,289				2,683
Total noninterest income		20,016			23,534		17,763				35,371				33,545
Noninterest expense:
Salaries and employee benefits		26,393			25,685		26,416				22,283				24,382
Occupancy and equipment		4,206			4,166		4,498				4,286				4,393
Data processing		7,186			7,035		6,919				7,278				6,955
Professional services		2,017			2,792		2,741				1,580				1,744
Impairment on goodwill		—			—		153,977				—				—
Amortization of intangible assets		743			827		911				952				951
Impairment on leased assets and surrendered    assets		—			—		—				7,601				—
FDIC insurance		1,512			1,422		1,463				1,383				1,402
Other expense		7,757			8,065		6,080				13,336				9,937
Total noninterest expense		49,814			49,992		203,005				58,699				49,764
Income (loss) before income taxes		11,314			14,868		(137,802		)		(38,941		)		24,966
Income tax expense (benefit)		3,757			2,844		3,172				(8,172		)		4,535
Net income (loss)		7,557			12,024		(140,974		)		(30,769		)		20,431
Preferred stock dividends		2,229			2,228		2,228				2,228				2,229
Net income (loss) available to common    shareholders	$	5,328		$	9,796	$	(143,202		)	$	(32,997		)	$	18,202
Basic earnings (loss) per common share	$	0.24		$	0.44	$	(6.58		)	$	(1.52		)	$	0.83
Diluted earnings (loss) per common share	$	0.24		$	0.44	$	(6.58		)	$	(1.52		)	$	0.83
Weighted average common shares outstanding		21,863,911			21,820,190		21,795,570				21,748,428				21,675,818
Weighted average diluted common shares    outstanding		21,863,911			21,820,190		21,795,570				21,753,711				21,678,242

MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)
	As of
	September 30,		June 30,		March 31,		December 31,		September 30,
(dollars in thousands)	2025		2025		2025		2024		2024
Loan Portfolio Mix
Commercial loans	$	1,149,673	$	1,178,792	$	879,286	$	934,848	$	879,590
Equipment finance loans		326,860		364,526		390,276		416,969		442,552
Equipment finance leases		310,983		347,155		373,168		391,390		417,531
Commercial FHA warehouse lines		—		1,068		—		8,004		50,198
Total commercial loans and leases		1,787,516		1,891,541		1,642,730		1,751,210		1,789,871
Commercial real estate		2,336,661		2,383,361		2,592,325		2,591,664		2,510,472
Construction and land development		260,073		258,729		264,966		299,842		422,253
Residential real estate		353,475		361,261		373,095		380,557		378,658
Consumer		129,862		140,403		144,937		144,301		626,983
Total loans	$	4,867,587	$	5,035,295	$	5,018,053	$	5,167,574	$	5,728,237

Loan Portfolio Segment
Regions
Eastern	$	927,977	$	897,348	$	897,792	$	899,611	$	902,993
Northern		724,695		753,590		747,028		714,562		730,752
Southern		725,892		778,124		711,787		720,188		694,810
St. Louis		896,005		884,685		902,743		868,190		850,327
Total Community Bank		3,274,569		3,313,747		3,259,350		3,202,551		3,178,882
Specialty finance		642,167		670,566		867,918		1,026,443		1,010,766
Equipment finance		637,843		711,681		763,444		808,359		860,083
Non-core loan program and other(1)		313,008		339,301		127,341		130,221		678,506
Total loans	$	4,867,587	$	5,035,295	$	5,018,053	$	5,167,574	$	5,728,237
Deposit Portfolio Mix
Noninterest-bearing demand	$	1,015,930	$	1,074,212	$	1,090,707	$	1,055,564	$	1,050,617
Interest-bearing:
Checking		1,996,501		2,180,717		2,161,282		2,378,256		2,389,970
Money market		1,240,885		1,216,357		1,154,403		1,173,630		1,187,139
Savings		486,953		511,470		522,663		507,305		510,260
Time		804,740		818,813		818,732		822,981		849,413
Brokered time		59,816		145,350		188,647		259,507		269,437
Total deposits	$	5,604,825	$	5,946,919	$	5,936,434	$	6,197,243	$	6,256,836
Deposit Portfolio by Channel
Retail	$	2,791,085	$	2,811,838	$	2,846,494	$	2,749,650	$	2,695,077
Commercial		1,248,445		1,145,369		1,074,837		1,209,815		1,218,657
Public Funds		605,474		618,172		490,374		505,912		574,704
Wealth & Trust		263,765		304,626		301,251		340,615		332,242
Servicing		498,892		785,659		842,567		896,436		958,662
Brokered Deposits		167,228		248,707		358,063		473,451		390,558
Other		29,936		32,548		22,848		21,364		86,936
Total deposits	$	5,604,825	$	5,946,919	$	5,936,434	$	6,197,243	$	6,256,836

(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
(dollars in thousands, expect per share data)	September 30, 2025			June 30, 2025		March 31, 2025			December 31, 2024			September 30, 2024
Income (loss) before income tax (benefit) expense - GAAP	$	11,314		$	14,868	$	(137,802	)	$	(38,941	)	$	24,966
Adjustments to noninterest income:
(Gain) loss on sales of investment securities, net		(14	)	—        —						34			44
Loss (gain) on repurchase of subordinated debt		—		—        —						13			(77	)
Total adjustments to noninterest income		(14	)	—        —						47			(33	)
Adjustments to noninterest expense:
Impairment on goodwill		—			—		(153,977	)		—			—
Total adjustments to noninterest expense		—			—		(153,977	)		—			—
Adjusted earnings (loss) pre tax - non-GAAP		11,300			14,868		16,175			(38,894	)		24,933
Adjusted earnings (loss) tax (benefit) expense		3,753			2,844		3,172			(8,159	)		4,526
Adjusted earnings (loss) - non-GAAP		7,547			12,024		13,003			(30,735	)		20,407
Preferred stock dividends		2,229			2,228		2,228			2,228			2,229
Adjusted earnings (loss) available to common shareholders	$	5,318		$	9,796	$	10,775		$	(32,963	)	$	18,178
Adjusted diluted earnings (loss) per common share	$	0.24		$	0.44	$	0.49		$	(1.52	)	$	0.82

Pre-Provision Net Revenue Reconciliation
	For the Three Months Ended
(dollars in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Income (loss) before income taxes	$	11,314		$	14,868		$	(137,802	)	$	(38,941	)	$	24,966
Provision for credit losses		20,005			17,369			10,850			74,183			17,925
Impairment on goodwill		—			—			153,977			—			—
Pre-provision net revenue	$	31,319		$	32,237		$	27,025		$	35,242		$	42,891
Pre-provision net revenue per diluted share	$	1.43		$	1.48		$	1.24		$	1.62		$	1.98
Pre-provision net revenue to average assets		1.80	%		1.81	%		1.47	%		1.83	%		2.21	%

MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
Efficiency Ratio Reconciliation
	For the Three Months Ended
(dollars in thousands)	September 30, 2025			June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024
Noninterest expense - GAAP	$	49,814		$	49,992		$	203,005		$	58,699		$	49,764
Impairment on goodwill		—			—			(153,977	)		—			—
Adjusted noninterest expense	$	49,814		$	49,992		$	49,028		$	58,699		$	49,764

Net interest income - GAAP	$	61,117		$	58,695		$	58,290		$	58,570		$	59,110
Effect of tax-exempt income		209			267			208			220			205
Adjusted net interest income		61,326			58,962			58,498			58,790			59,315

Noninterest income - GAAP		20,016			23,534			17,763			35,371			33,545
(Gain) loss on sales of investment securities, net		(14	)		—			—			34			44
Loss (gain) on repurchase of subordinated debt		—			—			—			13			(77	)
Adjusted noninterest income		20,002			23,534			17,763			35,418			33,512
Adjusted total revenue	$	81,328		$	82,496		$	76,261		$	94,208		$	92,827
Efficiency ratio		61.25	%		60.60	%		64.29	%		62.31	%		53.61	%

Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share
	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
(dollars in thousands, except per share data)	2025			2025			2025			2024			2024
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity—GAAP	$	584,001		$	573,705		$	571,437		$	710,847		$	771,221
Adjustments:
Preferred Stock		(110,548	)		(110,548	)		(110,548	)		(110,548	)		(110,548	)
Goodwill		(7,927	)		(7,927	)		(7,927	)		(161,904	)		(161,904	)
Other intangible assets, net		(9,619	)		(10,362	)		(11,189	)		(12,100	)		(13,052	)
Tangible common equity	$	455,907		$	444,868		$	441,773		$	426,295		$	485,717
Total Assets to Tangible Assets:
Total assets—GAAP	$	6,911,515		$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189
Adjustments:
Goodwill		(7,927	)		(7,927	)		(7,927	)		(161,904	)		(161,904	)
Other intangible assets, net		(9,619	)		(10,362	)		(11,189	)		(12,100	)		(13,052	)
Tangible assets	$	6,893,969		$	7,089,589		$	7,265,688		$	7,332,805		$	7,529,233
Common Shares Outstanding		21,543,557			21,515,138			21,503,036			21,494,485			21,393,905
Tangible Common Equity to Tangible Assets		6.61	%		6.27	%		6.08	%		5.81	%		6.45	%
Tangible Book Value Per Share	$	21.16		$	20.68		$	20.54		$	19.83		$	22.70