EFFINGHAM, Ill., Oct. 22, 2026 (GLOBE NEWSWIRE) — Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $20.6 million, or $0.95 per diluted share, for the third quarter of 2026, compared to net income available to common shareholders of $17.7 million, or $0.82 per diluted share, for the second quarter of 2026. This also compares to net income available to common shareholders of $5.3 million, or $0.24 per diluted share, for the third quarter of 2025.

2026 Third Quarter Results

  • Net income available to common shareholders of $20.6 million, or $0.95 per diluted share
  • Return on average assets of 1.35% and return on average tangible common equity of 18.50%
  • Net interest margin of 4.03% compared to 3.98% in the prior quarter; current quarter included a $1.6 million interest recovery on the payoff of a nonaccrual loan
  • Total loans increased $39.1 million, including $23.7 million of net growth in the Community Bank loan portfolio, or 2.8% annualized, during the quarter
  • Total capital to risk-weighted assets of 15.60% and common equity tier 1 capital of 10.36%
  • Ratio of nonperforming assets to total assets of 0.86%, a decrease of five basis points compared to prior quarter

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

“Our third quarter results reflect another solid quarter of execution and continued progress toward building a higher-performing community bank. We delivered diluted earnings per share of $0.95 and a 1.35% return on average assets while maintaining strong net interest margin. The Community Bank generated loan growth, while we continued the planned runoff of non-core portfolios, further improving the composition of our balance sheet.

“We also made meaningful progress resolving legacy credit issues. Past-due, substandard and nonperforming loans declined, net charge-offs moderated from the prior quarter, and our nonperforming asset ratio improved to 0.86%. We remain disciplined in addressing the remaining legacy credits while supporting high-quality loan growth in our markets.

“Strong earnings continued to support our capital position. We enter the fourth quarter with solid momentum and remain focused on profitable relationship growth, continued credit normalization and disciplined capital deployment to support long-term shareholder value.”

Financial Highlights and Key Performance Indicators

    As of and for the Three Months Ended
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands, except per share data)     2026       2026       2026       2025       2025  
Diluted earnings (loss) per common share   $ 0.95     $ 0.82     $ 0.74     $ (0.24 )   $ 0.24  
Return on average assets (annualized)     1.35 %     1.22 %     1.16 %     (0.17 )%     0.43 %
Return on average tangible common equity (annualized) (1)     18.50 %     16.27 %     14.88 %     (4.46 )%     4.72 %
Adjusted pre-provision net revenue to average assets (annualized) (1)     1.96 %     2.01 %     1.91 %     1.86 %     1.81 %
Net interest margin (annualized)     4.03 %     3.98 %     3.91 %     3.74 %     3.79 %
Efficiency ratio (1)     61.34 %     60.61 %     62.17 %     63.01 %     61.01 %
Noninterest expense to average assets     3.13 %     3.12 %     3.16 %     4.54 %     2.86 %
Net charge-offs to average loans (annualized)     0.50 %     1.17 %     0.64 %     3.69 %     0.99 %
Tangible book value per share at period end (1)   $ 19.52     $ 21.41     $ 20.77     $ 20.70     $ 21.16  
Tangible book value per share, excluding AOCI at period end (1)   $ 25.39     $ 24.69     $ 24.11     $ 23.55     $ 24.08  
Common shares outstanding at period end     20,801,859       20,725,814       20,813,975       21,169,854       21,543,557  
Trust assets under administration   $ 4,770,581     $ 4,782,625     $ 4,474,234     $ 4,478,999     $ 4,363,756  
                                         

(1) Non-GAAP financial measures. Refer to pages 10-12 for a reconciliation to the comparable GAAP financial measures.

Key Points for Third Quarter and Outlook

Growth Trends in Community Bank & Wealth Management

  • Total loans at September 30, 2026 were $4.28 billion, an increase of $39.1 million from June 30, 2026. Key changes in the loan portfolio were as follows:
    • Community Bank balances increased $23.7 million, or 2.8% annualized.
    • Specialty finance loans increased $28.0 million to $560.1 million from June 30, 2026.
    • Non-core loans, which include our third-party lending and servicing programs and remaining equipment finance portfolio, decreased $12.7 million to $295.7 million from June 30, 2026.
  • Total deposits were $5.62 billion at September 30, 2026, a decrease of $89.8 million from June 30, 2026. Key changes in deposits were as follows:
    • Retail deposits decreased $112.7 million, primarily reflecting $115.7 million of balance reductions resulting from actions taken to manage liquidity and deposit pricing.
    • Commercial and public funds deposits increased $35.7 million and $33.7 million, respectively.
    • Servicing and higher-cost brokered deposits decreased $26.5 million and $7.9 million, respectively.
  • Wealth Management revenue totaled $8.7 million in the third quarter of 2026. Assets under administration remained stable at $4.77 billion at September 30, 2026, compared to $4.78 billion at June 30, 2026.

Net Interest Margin

  • Net interest margin increased five basis points to 4.03% in the third quarter of 2026, benefiting from a $1.6 million interest recovery on the payoff of a nonaccrual loan and continued balance sheet and interest rate risk management, partially offset by higher funding costs. The cost of deposits increased four basis points to 1.82%.

The following table presents the Company’s net interest margin for the third quarter of 2026 compared to the second quarter of 2026 and the third quarter of 2025.

    For the Three Months Ended
(dollars in thousands)   September 30, 2026   June 30, 2026   September 30, 2025
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   $ 149,088   $ 1,333   3.55 %   $ 108,157   $ 987   3.66 %   $ 78,567   $ 849   4.29 %
Investment securities (1)     1,780,505     22,090   4.92       1,617,474     19,540   4.85       1,338,997     15,979   4.73  
Loans (1)(2)     4,235,207     69,173   6.48       4,268,168     67,195   6.31       4,947,675     81,012   6.50  
Loans held for sale     6,054     97   6.36       8,431     128   6.10       9,268     147   6.29  
Nonmarketable equity securities     29,215     530   7.20       30,285     534   7.07       38,559     715   7.36  
Total interest-earning assets     6,200,069     93,223   5.97       6,032,515     88,384   5.88       6,413,066     98,702   6.11  
Noninterest-earning assets     495,446             495,663             498,875        
Total assets   $ 6,695,515           $ 6,528,178           $ 6,911,941        
                                     
Interest-Bearing Liabilities                                    
Interest-bearing deposits   $ 4,720,701   $ 26,251   2.21 %   $ 4,512,697   $ 24,526   2.18 %   $ 4,644,455   $ 30,219   2.58 %
Short-term borrowings     42,059     349   3.29       28,521     202   2.84       54,839     499   3.61  
FHLB advances & other borrowings     221,217     2,165   3.88       249,044     2,349   3.78       386,772     4,044   4.15  
Subordinated debt     27,032     380   5.58       27,027     380   5.64       77,210     1,393   7.16  
Trust preferred debentures     52,316     1,154   8.75       52,128     1,131   8.70       51,602     1,221   9.39  
Total interest-bearing liabilities     5,063,325     30,299   2.37       4,869,417     28,588   2.35       5,214,878     37,376   2.84  
Noninterest-bearing deposits     989,768             1,012,592             1,020,196        
Other noninterest-bearing liabilities     75,440             84,416             100,436        
Shareholders’ equity     566,982             561,753             576,431        
Total liabilities and shareholders’ equity   $ 6,695,515           $ 6,528,178           $ 6,911,941        
                                     
Net Interest Margin       $ 62,924   4.03 %       $ 59,796   3.98 %       $ 61,326   3.79 %
                                     
Cost of Deposits           1.82 %           1.78 %           2.12 %
                                           

(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 September 30, 2026, June 30, 2026, and September 30, 2025, 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 $23.2 million for the third quarter of 2026 compared to $23.8 million for the second quarter of 2026.
  • Noninterest expense was $52.8 million for the third quarter of 2026 compared to $50.8 million for the second quarter of 2026, driven by an increase in variable compensation expense.
  • Income tax expense was $6.6 million, resulting in an effective tax rate of 22.4% for the third quarter of 2026 compared to 22.9% and 33.2% for the second quarter of 2026 and third quarter of 2025, respectively. We currently expect our effective tax rate to be approximately 23% for the full year, subject to changes in earnings mix, state tax legislation, and other factors.

Continued Progress on Credit Quality

  • Loans 30-89 days past due decreased to $9.1 million, or 0.21% of total loans, at September 30, 2026, compared to $11.0 million, or 0.26% of total loans, at June 30, 2026. Substandard accruing loans decreased by $0.4 million to $71.2 million at September 30, 2026.
  • Nonperforming loans decreased to $58.7 million, or 1.37% of total loans, at September 30, 2026, compared to $60.9 million, or 1.43% of total loans, at June 30, 2026.
  • Net charge-offs were $5.4 million for the third quarter of 2026, including $3.2 million of charge-offs on two previously identified nonperforming commercial real estate relationships in the Community Bank portfolio, partially offset by a $0.8 million recovery on the payoff of another previously identified nonperforming commercial real estate relationship.
  • Provision for credit losses on loans was $3.7 million for the third quarter of 2026, reflecting improved credit quality metrics, including favorable past due and delinquency trends.
  • Allowance for credit losses on loans was $60.9 million, or 1.42% of total loans, at September 30, 2026, compared to an allowance of $62.5 million, or 1.47% of total loans, at June 30, 2026.

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)   September 30,   June 30,   March 31,   December 31,   September 30,
    2026       2026       2026       2025       2025  
Asset Quality                    
Loans 30-89 days past due   $ 9,103     $ 10,984     $ 20,266     $ 17,079     $ 26,019  
Nonperforming loans     58,690       60,879       58,791       65,483       68,703  
Nonperforming assets     58,870       61,235       59,305       66,089       70,369  
Substandard accruing loans     71,168       71,526       91,963       76,000       78,901  
Net charge-offs     5,352       12,465       6,747       43,492       12,309  
Loans 30-89 days past due to total loans     0.21 %     0.26 %     0.47 %     0.39 %     0.53 %
Nonperforming loans to total loans     1.37 %     1.43 %     1.36 %     1.50 %     1.41 %
Nonperforming assets to total assets     0.86 %     0.91 %     0.91 %     1.01 %     1.02 %
Allowance for credit losses to total loans     1.42 %     1.47 %     1.56 %     1.59 %     2.07 %
Allowance for credit losses to nonperforming loans     103.68 %     102.69 %     115.45 %     105.71 %     146.84 %
Net charge-offs to average loans (annualized)     0.50 %     1.17 %     0.64 %     3.69 %     0.99 %
                                         

Capital

As previously announced, the Company’s board of directors authorized a share repurchase program, pursuant to which the Company is authorized to repurchase up to $45.0 million of its common stock through December 31, 2026. The Company repurchased $10.6 million of its common stock during year-to-date 2026, and approximately $24.8 million remained available under the program at September 30, 2026.

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, 2026
  Midland States Bank   Midland States
Bancorp, Inc.		   Minimum Regulatory
Requirements (2)
Total capital to risk-weighted assets 14.52 %   15.60 %   10.50 %
Tier 1 capital to risk-weighted assets 13.27 %   13.82 %   8.50 %
Common equity Tier 1 capital to risk-weighted assets 13.27 %   10.36 %   7.00 %
Tier 1 leverage ratio 9.93 %   10.34 %   4.00 %
Tangible common equity to tangible assets (1) N/A     5.97 %   N/A  

  As of June 30, 2026
  Midland States Bank   Midland States
Bancorp, Inc.		   Minimum Regulatory
Requirements (2)
Total capital to risk-weighted assets 14.84 %   15.77 %   10.50 %
Tier 1 capital to risk-weighted assets 13.59 %   13.97 %   8.50 %
Common equity Tier 1 capital to risk-weighted assets 13.59 %   10.39 %   7.00 %
Tier 1 leverage ratio 10.08 %   10.37 %   4.00 %
Tangible common equity to tangible assets (1) N/A     6.64 %   N/A  
                 

(1) Non-GAAP financial measure. Refer to pages 10-12 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 September 30, 2026, the Company had total assets of approximately $6.82 billion, and its Wealth Management Group had assets under administration of approximately $4.77 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 calculated in accordance with GAAP.

These non-GAAP financial measures include “Adjusted pre-provision net revenue,” “Adjusted pre-provision net revenue to average assets,” “Adjusted earnings,” “Adjusted earnings available to common shareholders,” “Adjusted diluted earnings per common share,” “Return on average tangible common equity,” “Efficiency ratio,” “Tangible common equity to tangible assets,” “Tangible book value per share,” and “Tangible book value per share, excluding AOCI.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s profitability and asset profile, and that the tangible asset-based measures are commonly used by investors in evaluating value of financial institutions and their equity securities. 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, deposit volatility and potential regulatory developments; the performance of our loan portfolio and our ability to manage credit risk; changes in the financial markets; the effects of armed conflict, including the scope and duration of disruptions in global energy markets relating to war in the Middle East; changes in the business environment resulting from the adoption of artificial intelligence, including fraud and cybersecurity risk; operational risks, including with respect to fraud and information technology; changes in business plans as circumstances warrant; changes to U.S. and state 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, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, which are incorporated herein by reference. 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
Claire A. Stack, Chief Financial Officer, at cstack@midlandsb.com 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)     2026       2026       2026       2025       2025  
Assets                    
Cash and cash equivalents   $ 99,612     $ 298,747     $ 113,658     $ 127,811     $ 166,147  
Investment securities     1,909,021       1,657,313       1,596,220       1,527,236       1,383,121  
Loans     4,282,828       4,243,704       4,338,573       4,352,004       4,867,587  
Allowance for credit losses on loans     (60,852 )     (62,519 )     (67,875 )     (69,219 )     (100,886 )
Total loans, net     4,221,976       4,181,185       4,270,698       4,282,785       4,766,701  
Loans held for sale     4,580       8,944       6,709       7,781       7,535  
Premises and equipment, net     82,435       82,898       84,169       85,134       86,005  
Other real estate owned     180       356       514       606       393  
Loan servicing rights, at lower of cost or fair value     10,931       11,316       11,688       11,932       16,165  
Goodwill     7,927       7,927       7,927       7,927       7,927  
Other intangible assets, net     6,849       7,495       8,159       8,876       9,619  
Company-owned life insurance     224,884       222,757       220,630       218,554       216,494  
Credit enhancement asset     14,364       13,642       13,476       12,557       5,765  
Other assets     234,083       208,036       214,115       222,221       245,643  
Total assets   $ 6,816,842     $ 6,700,616     $ 6,547,963     $ 6,513,420     $ 6,911,515  
                     
Liabilities and Shareholders’ Equity                    
Noninterest-bearing demand deposits   $ 973,388     $ 1,010,128     $ 1,013,808     $ 1,040,411     $ 1,015,930  
Interest-bearing deposits     4,644,050       4,697,150       4,426,259       4,383,968       4,588,895  
Total deposits     5,617,438       5,707,278       5,440,067       5,424,379       5,604,825  
Short-term borrowings     151,499       7,645       153,425       60,181       146,766  
FHLB advances     353,000       258,000       238,000       293,000       373,000  
Subordinated debt     27,035       27,030       27,024       27,019       27,014  
Trust preferred debentures     52,409       52,219       52,035       51,857       51,684  
Other liabilities     84,094       78,756       78,458       91,485       124,225  
Total liabilities     6,285,475       6,130,928       5,989,009       5,947,921       6,327,514  
Total shareholders’ equity     531,367       569,688       558,954       565,499       584,001  
Total liabilities and shareholders’ equity   $ 6,816,842     $ 6,700,616     $ 6,547,963     $ 6,513,420     $ 6,911,515  
                                         

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)
                     
    For the Three Months Ended
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands, except per share data)     2026     2026       2026       2025       2025  
Net interest income:                    
Interest income   $ 93,021   $ 88,177     $ 86,022     $ 92,095     $ 98,493  
Interest expense     30,299     28,588       28,605       33,393       37,376  
Net interest income     62,722     59,589       57,417       58,702       61,117  
Provision for credit losses:                    
Provision for credit losses on loans     3,685     7,109       5,403       11,825       20,505  
Provision (recapture) of credit losses on unfunded commitments     50     (290 )     (400 )     (200 )     (500 )
Total provision for credit losses     3,735     6,819       5,003       11,625       20,005  
Net interest income after provision for credit losses     58,987     52,770       52,414       47,077       41,112  
Noninterest income:                    
Wealth management revenue     8,651     8,768       8,248       8,272       8,018  
Service charges on deposit accounts     3,775     3,449       3,355       3,573       3,598  
Interchange revenue     3,984     3,553       3,528       3,437       3,445  
Residential mortgage banking revenue     216     686       626       690       735  
Income on company-owned life insurance     1,828     2,127       2,076       2,060       2,102  
Gain (loss) on sales of investment securities, net     —     —       (1,731 )     —       14  
Credit enhancement income (loss)     3,108     3,081       3,360       6,876       (242 )
Other income     1,675     2,104       2,660       1,959       2,346  
Total noninterest income     23,237     23,768       22,122       26,867       20,016  
Noninterest expense:                    
Salaries and employee benefits     28,500     27,354       26,157       25,906       26,393  
Occupancy and equipment     4,330     4,229       4,535       4,353       4,206  
Data processing     6,871     6,994       7,065       6,834       7,186  
Professional services     1,669     1,665       2,242       2,321       2,017  
Amortization of intangible assets     646     664       717       743       743  
Loss on sale of loan portfolios     —     —       —       23,051       —  
Impairment on leased assets and surrendered assets     —     —       —       684       —  
FDIC insurance     791     781       529       3,739       1,512  
Other expense     10,036     9,068       9,179       9,561       7,757  
Total noninterest expense     52,843     50,755       50,424       77,192       49,814  
Income (loss) before income taxes     29,381     25,783       24,112       (3,248 )     11,314  
Income tax expense (benefit)     6,573     5,895       5,649       (360 )     3,757  
Net income (loss)     22,808     19,888       18,463       (2,888 )     7,557  
Preferred stock dividends     2,229     2,228       2,228       2,228       2,229  
Net income (loss) available to common shareholders   $ 20,579   $ 17,660     $ 16,235     $ (5,116 )   $ 5,328  
                     
Basic earnings (loss) per common share   $ 0.95   $ 0.82     $ 0.74     $ (0.24 )   $ 0.24  
Diluted earnings (loss) per common share   $ 0.95   $ 0.82     $ 0.74     $ (0.24 )   $ 0.24  
Weighted average common shares outstanding     21,128,351     21,074,683       21,301,246       21,854,033       21,863,911  
Weighted average diluted common shares outstanding     21,140,143     21,074,683       21,301,246       21,854,033       21,863,911  
                                       

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)
                     
    As of
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands)   2026   2026   2026   2025   2025
Loan Portfolio Mix                    
Commercial loans   $ 1,183,813   $ 1,185,730   $ 1,216,511   $ 1,178,521   $ 1,476,533
Equipment finance leases     30,339     37,086     43,803     50,981     310,983
Total commercial loans and leases     1,214,152     1,222,816     1,260,314     1,229,502     1,787,516
Commercial real estate     2,332,478     2,296,978     2,322,198     2,342,664     2,336,661
Construction and land development     249,268     243,840     276,469     286,140     260,073
Residential real estate     358,021     347,664     344,511     349,623     353,475
Consumer     128,909     132,406     135,081     144,075     129,862
Total loans   $ 4,282,828   $ 4,243,704   $ 4,338,573   $ 4,352,004   $ 4,867,587
                     
Loan Portfolio Segment                    
Regions                    
Eastern   $ 985,101   $ 978,944   $ 989,596   $ 972,031   $ 927,977
Northern     782,911     771,844     758,815     711,702     724,695
Southern     664,770     700,937     713,592     729,368     725,892
St. Louis     994,197     951,505     934,974     915,126     896,005
Total Community Bank     3,426,979     3,403,230     3,396,977     3,328,227     3,274,569
Specialty finance     560,102     532,070     613,514     668,183     642,167
Non-core loan program and other (1)     295,747     308,404     328,082     355,594     950,851
Total loans   $ 4,282,828   $ 4,243,704   $ 4,338,573   $ 4,352,004   $ 4,867,587
                     
Deposit Portfolio Mix                    
Noninterest-bearing demand   $ 973,388   $ 1,010,128   $ 1,013,808   $ 1,040,411   $ 1,015,930
Interest-bearing:                    
Checking     2,155,193     2,094,880     1,886,212     1,855,215     1,996,501
Money market     1,306,610     1,242,303     1,295,781     1,248,942     1,240,885
Savings     498,397     640,292     495,899     487,742     486,953
Time     666,749     694,642     723,055     748,942     804,740
Brokered time     17,101     25,033     25,312     43,127     59,816
Total deposits   $ 5,617,438   $ 5,707,278   $ 5,440,067   $ 5,424,379   $ 5,604,825
                     
Deposit Portfolio by Channel                    
Retail   $ 2,890,419   $ 3,003,073   $ 2,904,695   $ 2,823,064   $ 2,791,085
Commercial     1,361,246     1,325,592     1,209,210     1,193,637     1,248,445
Public Funds     609,873     576,188     455,982     473,381     605,474
Wealth & Trust     249,209     243,549     242,977     265,747     263,765
Servicing     475,862     502,335     478,496     498,496     498,892
Brokered Deposits     17,106     25,033     125,949     143,192     167,228
Other     13,723     31,508     22,758     26,862     29,936
Total deposits   $ 5,617,438   $ 5,707,278   $ 5,440,067   $ 5,424,379   $ 5,604,825
                               

(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, and equipment financing loans and leases.

 
 
MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
                     
Adjusted Earnings Reconciliation
                     
    For the Three Months Ended
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands, except per share data)     2026       2026       2026       2025       2025  
Income (loss) before income tax expense (benefit) – GAAP   $ 29,381     $ 25,783     $ 24,112     $ (3,248 )   $ 11,314  
Adjustments to noninterest income:                    
(Gain) loss on sales of investment securities, net     —       —       1,731       —       (14 )
Gain on sale of mortgage servicing rights     —       —       (2,077 )     —       —  
(Gain) loss on limited partnership investments     (18 )     176       1,689       134       315  
Total adjustments to noninterest income     (18 )     176       1,343       134       301  
Adjustments to noninterest expense:                    
Loss on sale of loan portfolios     —       —       —       (23,051 )     —  
Total adjustments to noninterest expense     —       —       —       (23,051 )     —  
Adjusted earnings pre-tax – non-GAAP     29,363       25,959       25,455       19,937       11,615  
Adjusted earnings tax expense     6,579       5,941       6,002       5,726       3,836  
Adjusted earnings – non-GAAP     22,784       20,018       19,453       14,211       7,779  
Preferred stock dividends     2,229       2,228       2,228       2,228       2,229  
Adjusted earnings available to common shareholders   $ 20,555     $ 17,790     $ 17,225     $ 11,983     $ 5,550  
Adjusted diluted earnings per common share   $ 0.95     $ 0.82     $ 0.79     $ 0.54     $ 0.25  
                     
Adjusted Pre-Provision Net Revenue Reconciliation
                     
    For the Three Months Ended
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands)     2026       2026       2026       2025       2025  
Adjusted earnings pre-tax – non-GAAP   $ 29,363     $ 25,959     $ 25,455     $ 19,937     $ 11,615  
Provision for credit losses     3,735       6,819       5,003       11,625       20,005  
Adjusted pre-provision net revenue   $ 33,098     $ 32,778     $ 30,458     $ 31,562     $ 31,620  
Adjusted pre-provision net revenue to average assets (annualized)     1.96 %     2.01 %     1.91 %     1.86 %     1.81 %

                     
Return on Average Tangible Common Equity
                     
    For the Three Months Ended
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands)     2026       2026       2026       2025       2025  
Net income available to common shareholders   $ 20,579     $ 17,660     $ 16,235     $ (5,116 )   $ 5,328  
                     
Average total shareholders’ equity—GAAP   $ 566,982     $ 561,753     $ 569,482     $ 582,698     $ 576,431  
Adjustments:                    
Preferred stock     (110,548 )     (110,548 )     (110,548 )     (110,548 )     (110,548 )
Goodwill     (7,927 )     (7,927 )     (7,927 )     (7,927 )     (7,927 )
Other intangible assets, net     (7,159 )     (7,813 )     (8,487 )     (9,320 )     (9,978 )
Average tangible common equity   $ 441,348     $ 435,465     $ 442,520     $ 454,903     $ 447,978  
                     
Return on average tangible common equity (annualized)     18.50 %     16.27 %     14.88 %   (4.46)        %     4.72 %
                                     

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)(continued)
                     
Efficiency Ratio Reconciliation
                     
    For the Three Months Ended
    September 30,   June 30,   March 31,   December 31,   September 30,
(dollars in thousands)     2026       2026       2026       2025       2025  
Noninterest expense – GAAP   $ 52,843     $ 50,755     $ 50,424     $ 77,192     $ 49,814  
Loss on sale of loan portfolios     —       —       —       (23,051 )     —  
Adjusted noninterest expense   $ 52,843     $ 50,755     $ 50,424     $ 54,141     $ 49,814  
                     
Net interest income – GAAP   $ 62,722     $ 59,589     $ 57,417     $ 58,702     $ 61,117  
Effect of tax-exempt income     202       207       218       221       209  
Adjusted net interest income     62,924       59,796       57,635       58,923       61,326  
                     
Noninterest income – GAAP     23,237       23,768       22,122       26,867       20,016  
(Gain) loss on sales of investment securities, net     —       —       1,731       —       (14 )
Gain on sale of mortgage servicing rights     —       —       (2,077 )     —       —  
(Gain) loss on limited partnership investments     (18 )     176       1,689       134       315  
Adjusted noninterest income     23,219       23,944       23,465       27,001       20,317  
                     
Adjusted total revenue   $ 86,143     $ 83,740     $ 81,100     $ 85,924     $ 81,643  
                     
Efficiency ratio     61.34 %     60.61 %     62.17 %     63.01 %     61.01 %
                                         

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)     2026       2026       2026       2025       2025  
Shareholders’ Equity to Tangible Common Equity                
Total shareholders’ equity—GAAP   $ 531,367     $ 569,688     $ 558,954     $ 565,499     $ 584,001  
Adjustments:                    
Preferred stock     (110,548 )     (110,548 )     (110,548 )     (110,548 )     (110,548 )
Goodwill     (7,927 )     (7,927 )     (7,927 )     (7,927 )     (7,927 )
Other intangible assets, net     (6,849 )     (7,495 )     (8,159 )     (8,876 )     (9,619 )
Tangible common equity   $ 406,043     $ 443,718     $ 432,320     $ 438,148     $ 455,907  
                     
Less: Accumulated other comprehensive loss (AOCI)     (122,197 )     (67,931 )     (69,582 )     (60,333 )     (62,966 )
Tangible common equity, excluding AOCI   $ 528,240     $ 511,649     $ 501,902     $ 498,481     $ 518,873  
                     
Total Assets to Tangible Assets:                    
Total assets—GAAP   $ 6,816,842     $ 6,700,616     $ 6,547,963     $ 6,513,420     $ 6,911,515  
Adjustments:                    
Goodwill     (7,927 )     (7,927 )     (7,927 )     (7,927 )     (7,927 )
Other intangible assets, net     (6,849 )     (7,495 )     (8,159 )     (8,876 )     (9,619 )
Tangible assets   $ 6,802,066     $ 6,685,194     $ 6,531,877     $ 6,496,617     $ 6,893,969  
                     
Common Shares Outstanding     20,801,859       20,725,814       20,813,975       21,169,854       21,543,557  
                     
Tangible Common Equity to Tangible Assets     5.97 %     6.64 %     6.62 %     6.74 %     6.61 %
Tangible Book Value Per Share   $ 19.52     $ 21.41     $ 20.77     $ 20.70     $ 21.16  
Tangible Book Value Per Share, excluding AOCI   $ 25.39     $ 24.69     $ 24.11     $ 23.55     $ 24.08  
                                         

A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/b44a02c8-6774-4b9a-85d3-b36bef4cca8a


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Midland States Bancorp, Inc.