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