$MSBI

Midland States Bancorp, Inc.

CIK:0001466026|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME — (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans, including fees: Taxable	$ 66,761	$ 78,514	$ 132,320	$ 156,182
Loans, including fees: Tax exempt	343	573	726	929
Loans held for sale	128	377	230	4,940
Investment securities:
Taxable	18,989	16,618	37,139	31,593
Tax exempt	435	432	871	860
Nonmarketable equity securities	534	694	1,117	1,341
Federal funds sold and cash investments	987	716	1,796	1,434
Total interest income	88,177	97,924	174,199	197,279
Interest expense:
Deposits	24,526	32,290	48,729	66,905
Short-term borrowings	202	573	433	1,273
Federal Home Loan Bank advances	2,349	3,766	5,019	6,929
Subordinated debt	380	1,394	760	2,781
Trust preferred debentures	1,131	1,206	2,252	2,406
Total interest expense	28,588	39,229	57,193	80,294
Net interest income	59,589	58,695	117,006	116,985
Provision for credit losses:
Provision for credit losses on loans	7,109	17,369	12,512	28,219
Recapture of credit losses on unfunded commitments	(290)	0	(690)	0
Total provision for credit losses	6,819	17,369	11,822	28,219
Net interest income after provision for credit losses	52,770	41,326	105,184	88,766
Noninterest income:
Wealth management revenue	8,768	7,379	17,016	14,729
Service charges on deposit accounts	3,449	3,351	6,804	6,656
Interchange revenue	3,553	3,463	7,081	6,614
Residential mortgage banking revenue	686	756	1,312	1,432
Income on company-owned life insurance	2,127	2,068	4,203	4,402
Loss on sales of investment securities, net	0	0	(1,731)	0
Credit enhancement income	3,081	3,848	6,441	3,270
Other income	2,104	2,669	4,764	4,194
Total noninterest income	23,768	23,534	45,890	41,297
Noninterest expense:
Salaries and employee benefits	27,354	25,685	53,511	52,101
Occupancy and equipment	4,229	4,166	8,764	8,664
Data processing	6,994	7,035	14,059	13,954
FDIC insurance	781	1,422	1,310	2,885
Professional services	1,665	2,792	3,907	5,533
Marketing	1,211	1,283	2,452	2,076
Communications	359	334	790	663
Loan expense	3,147	1,990	6,451	3,325
Loan servicing fees	1,050	1,386	2,167	2,136
Impairment on goodwill	0	0	0	153,977
Amortization of intangible assets	664	827	1,381	1,738
Other expense	3,301	3,072	6,387	5,945
Total noninterest expense	50,755	49,992	101,179	252,997
Income (loss) before income taxes	25,783	14,868	49,895	(122,934)
Income tax expense	5,895	2,844	11,544	6,016
Net income (loss)	19,888	12,024	38,351	(128,950)
Preferred dividends	2,228	2,228	4,456	4,456
Net income (loss) available to common shareholders	$ 17,660	$ 9,796	$ 33,895	$ (133,406)
Per common share data:
Basic earnings (loss) per common share (in dollars per share)	$ 0.82	$ 0.44	$ 1.56	$ (6.13)
Diluted earnings (loss) per common share (in dollars per share)	$ 0.82	$ 0.44	$ 1.56	$ (6.13)
Weighted average common shares outstanding (in shares)	21,074,683	21,820,190	21,187,341	21,808,475
Weighted average diluted common shares outstanding (in shares)	21,074,683	21,820,190	21,187,341	21,808,475

CONSOLIDATED STATEMENTS OF CASH FLOWS — (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income (loss)	$ 38,351	$ (128,950)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for credit losses	11,822	28,219
Depreciation on premises and equipment	2,430	2,456
Impairment on goodwill	0	153,977
Amortization of intangible assets	1,381	1,738
Amortization of operating lease right-of-use asset	819	788
Amortization of loan servicing rights	769	1,139
Share-based compensation expense	1,520	1,534
Increase in cash surrender value of life insurance	(4,203)	(4,059)
Investment securities accretion, net	(8,838)	(6,937)
Loss on sales of investment securities, net	1,731	0
Origination of loans held for sale	(58,855)	(45,532)
Proceeds from sales of loans and leases held for sale	58,931	47,026
Gain on sale of loans held for sale	(1,434)	(1,303)
Gain on sale of mortgage servicing rights held for sale	(2,077)	0
Net change in operating assets and liabilities:
Accrued interest receivable	148	276
Credit enhancement asset	(1,085)	11,004
Other assets	10,832	12,157
Accrued expenses and other liabilities	(5,801)	(20,777)
Net cash provided by operating activities	46,441	52,756
Cash flows from investing activities:
Purchases of investment securities available for sale	(394,250)	(218,307)
Proceeds from sales of investment securities available for sale	98,599	0
Maturities and payments on investment securities available for sale	158,478	95,792
Purchases of equity securities	(83)	(33)
Net decrease in loans	87,097	331,643
Proceeds from sales of consumer loans held for sale	0	61,099
Purchases of premises and equipment	(895)	(3,233)
Proceeds from sale of premises and equipment	195	0
Purchases of nonmarketable equity securities	(1,279)	(80,200)
Proceeds from redemptions of nonmarketable equity securities	3,213	76,231
Proceeds from sales of mortgage servicing rights held for sale	5,727	0
Proceeds from sales of other real estate owned	414	4,774
Proceeds from company-owned life insurance, net	0	1,166
Net cash provided by (used in) investing activities	(42,784)	268,932
Cash flows from financing activities:
Net increase (decrease) in deposits	282,899	(250,324)
Net decrease in short-term borrowings	(52,536)	(78,845)
Net increase in short-term FHLB advances	0	82,000
Proceeds from long-term FHLB advances	0	203,000
Payments made on long-term FHLB advances	(35,000)	(198,000)
Cash dividends paid on preferred stock	(4,456)	(4,456)
Cash dividends paid on common stock	(13,688)	(13,567)
Common stock repurchased	(10,668)	0
Proceeds from issuance of common stock under employee benefit plans	728	325
Net cash provided by (used in) financing activities	167,279	(259,867)
Net increase in cash and cash equivalents	170,936	61,821
Cash and cash equivalents:
Beginning of period	127,811	114,766
End of period	298,747	176,587
Supplemental disclosures of cash flow information:
Interest paid on deposits and borrowed funds	58,748	82,580
Income tax paid (net of refunds)	1,132	761
Supplemental disclosures of noncash investing and financing activities:
Transfer of loans to loans held for sale	1,870	29,400
Transfer of loans to other real estate owned	178	187
Right-of-use assets obtained in exchange for lease obligations	128	837
Transfer of premises and equipment, net to assets held for sale	0	245
Transfer of loan servicing rights held for sale to loan servicing rights, at lower of cost or fair value	125	0
Loans provided for sale of consumer loans held for sale	$ 0	$ 219,212

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and due from banks	$ 298,244	$ 127,279
Federal funds sold	503	532
Cash and cash equivalents	298,747	127,811
Investment securities available for sale, at fair value	1,653,460	1,523,001
Equity securities, at fair value	3,853	4,235
Loans	4,243,704	4,352,004
Allowance for credit losses on loans	(62,519)	(69,219)
Total loans, net	4,181,185	4,282,785
Loans held for sale	8,944	7,781
Premises and equipment, net	82,898	85,134
Other real estate owned	356	606
Nonmarketable equity securities	30,664	32,598
Accrued interest receivable	23,676	23,824
Loan servicing rights, at lower of cost or fair value	11,316	11,932
Loan servicing rights, held for sale	0	3,661
Goodwill	7,927	7,927
Other intangible assets, net	7,495	8,876
Company-owned life insurance	222,757	218,554
Credit enhancement asset	13,642	12,557
Other assets	153,696	162,138
Total assets	6,700,616	6,513,420
Deposits:
Noninterest-bearing demand deposits	1,010,128	1,040,411
Interest-bearing deposits	4,697,150	4,383,968
Total deposits	5,707,278	5,424,379
Short-term borrowings	7,645	60,181
Federal Home Loan Bank advances	258,000	293,000
Subordinated debt	27,030	27,019
Trust preferred debentures	52,219	51,857
Accrued interest payable and other liabilities	78,756	91,485
Total liabilities	6,130,928	5,947,921
Shareholders’ Equity:
Preferred stock, $2.00 par value; 4,000,000 shares authorized; 115,000 Series A shares, $1,000 per share liquidation preference, issued and outstanding at June 30, 2026 and December 31, 2025, respectively	110,548	110,548
Common stock, $0.01 par value; 40,000,000 shares authorized; 20,725,814 and 21,169,854 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	207	212
Capital surplus	419,832	428,247
Retained earnings	107,032	86,825
Accumulated other comprehensive loss, net of tax	(67,931)	(60,333)
Total shareholders’ equity	569,688	565,499
Total liabilities and shareholders’ equity	$ 6,700,616	$ 6,513,420