StockNews.AI
MSBI
StockNews.AI
26 days

Midland States Bancorp, Inc. Announces 2025 Second Quarter Results

1. MSBI reported Q2 2025 net income of $9.8 million, down from $23.5 million. 2. Net interest margin improved to 3.56%, reflecting better profitability trends. 3. Nonperforming assets decreased to 1.56%, showing improved credit quality. 4. Cost of deposits fell to 2.19%, helping profitability as interest rates decline. 5. Wealth Management revenue contributed positively, totaling $7.4 million for the quarter.

30m saved
Insight
Article

FAQ

Why Bullish?

While net income decreased year-over-year, it marks a recovery from a significant loss previously. The reduction in nonperforming assets and improvements in the net interest margin signify a return to stability and profitability.

How important is it?

The article discusses critical financial results and strategic improvements that directly affect MSBI's stock outlook. Given the context of a rebound from significant prior losses, the developments are salient to investors.

Why Short Term?

Expected improvements in the next quarter could influence short-term investor sentiment and drive stock performance. The company's focus on cleaning up credit quality suggests future gains.

Related Companies

CFRCUBNHAFC
EFFINGHAM, Ill., July 24, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025, compared to net income available to common shareholders of $23.5 million, or $1.06 per diluted share, for the second quarter of 2024. This also compares to a net loss of $143.2 million, or $6.58 per diluted share, for the first quarter of 2025, which included impairment of goodwill of $154.0 million. 2025 Second Quarter Results Net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025Adjusted earnings of $9.8 million, or $0.44 per diluted share, compared to $10.8 million, or $0.49 per diluted share, in prior quarterPre-provision net revenue of $32.2 million, or $1.48 per diluted share, for the second quarter of 2025 compared to $27.0 million, or $1.24 per diluted share, for the first quarter of 2025Net interest margin of 3.56%, compared to 3.49% in prior quarterNonperforming assets to total assets of 1.56%, compared to 2.08% in prior quarterTotal capital to risk-weighted assets of 14.50% and common equity tier 1 capital of 9.02% Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig: “Second quarter marked a notable step in returning Midland to a more normalized operating environment, with progress on several strategic initiatives ranging from growing our community bank to further improving our credit quality. Capital levels increased quarter-over-quarter, and we continue to target growing our common equity tier 1 capital ratio to our target of 10.0%. During the quarter, we had limited new substandard or nonperforming loans identified, and importantly saw our non-performing assets decrease to $111 million, or 1.56% of total assets, versus $151 million, or 2.08% of total assets in the first quarter. After quarter-end, the bank successfully exited two larger non-performing relationships in July totaling $29 million, which all else equal would bring our non-performing asset ratio down another 41 basis points. Tighter underwriting standards in our equipment finance and specialty finance portfolios have already begun to meaningfully reduce our exposure to these higher-risk portfolios. In addition, we completed the previously announced sale of our GreenSky loans in April further improving our capital and liquidity. Profitability trends were also favorable in the second quarter, with net interest margin expanding 7 basis points to 3.56%, pre-provision net revenue growing to $32.2 million, and strong contribution from our wealth management platform. We expect further improvement in profitability over the balance of 2025.” Key Points for Second Quarter and Outlook Acceleration of Credit Clean-up; Tightened Underwriting Standards Substandard accruing loans and nonperforming loans decreased to $58.5 million and $109.5 million at June 30, 2025, respectively. No significant new substandard or nonperforming loans were identified during the quarter.Net charge-offs were $29.9 million for the quarter, including: $13.9 million of charge-offs in our specialty finance portfolio, of which $10.2 million was specifically reserved for in a prior quarter$4.7 million of fully reimbursed charge-offs related to our third party lending programs$3.9 million of charge-offs in our equipment finance portfolio as we continue to see credit issues primarily in the trucking industry Provision for credit losses on loans was $17.4 million for the second quarter of 2025, primarily as a result of continued trends in the equipment finance portfolio.Allowance for credit losses on loans was $92.7 million, or 1.83% of total loans. The table below summarizes certain information regarding the Company’s loan portfolio asset quality as of June 30, 2025.   As of and for the Three Months Ended(dollars in thousands) June 30, March 31, December 31, September 30, June 30,  2025   2025   2024   2024   2024 Asset Quality          Loans 30-89 days past due $40,959  $48,221  $43,681  $55,329  $54,045 Nonperforming loans  109,512   145,690   150,907   114,556   112,124 Nonperforming assets  111,174   151,264   157,409   126,771   123,774 Substandard accruing loans  58,478   77,620   84,058   167,549   135,555 Net charge-offs  29,854   16,878   112,776   22,302   13,883 Loans 30-89 days past due to total loans  0.81%  0.96%  0.85%  0.97%  0.93%Nonperforming loans to total loans  2.16%  2.90%  2.92%  2.00%  1.92%Nonperforming assets to total assets  1.56%  2.08%  2.10%  1.65%  1.61%Allowance for credit losses to total loans  1.83%  2.10%  2.15%  2.64%  2.67%Allowance for credit losses to nonperforming loans  84.64%  72.19%  73.69%  131.87%  138.63%Net charge-offs to average loans  2.34%  1.35%  7.94%  1.53%  0.94%                      Solid Growth Trends in Community Bank & Wealth Management Total loans at June 30, 2025 were $5.06 billion, an increase of $46.6 million from March 31, 2025. Key changes in the loan portfolio were as follows: Loans originated by our Community Bank increased $58.9 million, or 1.8%, from March 31, 2025. Pipelines remain strong and we continued to add to our sales teams in the second quarter.Non-core loans originated through third-party programs increased $212.8 million from March 31, 2025, as a result of the financing of the sale of the GreenSky portfolio.We continue to pursue an intentional decrease in our Specialty Finance loan portfolio, as we tighten credit standards. Balances in this loan portfolio decreased $173.3 million during the quarter.Equipment finance portfolio balances declined $51.8 million during the quarter as we continue to reduce the overall balances in this unit and tighten underwriting standards. Total deposits were $5.95 billion at June 30, 2025, an increase of $10.5 million from March 31, 2025. The increase in deposits reflects the following: Commercial and public fund deposits increased $70.5 million and $127.8 million, respectively, in the quarter.Noninterest-bearing deposits decreased $16.5 million in the quarter.Retail and servicing deposits decreased $34.7 million and $56.9 million, respectively, in the quarter.Brokered deposits, including both money market and time deposits, decreased by $109.4 million.Servicing deposits decreased $284.4 million in July 2025 due to the acquisition of one of our servicing customers, expected to positively impact future margin. Wealth Management revenue totaled $7.4 million in the second quarter of 2025. Assets under administration were $4.18 billion at June 30, 2025. The Company added three new sales positions in the second quarter of 2025 and continues to experience strong pipelines. Net Interest Margin Net interest margin was 3.56%, up 7 basis points compared to the first quarter, and we saw a continued decline in the cost of funding. 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 2.19% in the second quarter of 2025. The following table summarizes certain factors affecting the Company’s net interest margin for the second quarter of 2025.   For the Three Months Ended(dollars in thousands) June 30, 2025 March 31, 2025 June 30, 2024Interest-earning assets Average Balance Interest & Fees Yield/Rate Average Balance Interest & Fees Yield/Rate Average Balance Interest & Fees Yield/RateCash and cash equivalents $67,326 $716 4.27% $68,671 $718 4.24% $65,250 $875 5.40%Investment securities(1)  1,367,180  17,164 5.04   1,311,887  15,517 4.80   1,098,452  12,805 4.69 Loans(1)(2)  5,123,558  79,240 6.20   5,057,394  78,118 6.26   5,915,523  92,581 6.29 Loans held for sale  44,642  377 3.39   326,348  4,563 5.67   4,910  84 6.84 Nonmarketable equity securities  38,803  694 7.17   35,614  647 7.37   44,216  963 8.76 Total interest-earning assets  6,641,509  98,191 5.93   6,799,914  99,563 5.94   7,128,351  107,308 6.05 Noninterest-earning assets  513,801      667,940      669,370    Total assets $7,155,310     $7,467,854     $7,797,721                       Interest-Bearing Liabilities                  Interest-bearing deposits $4,845,609 $32,290 2.67% $5,074,007 $34,615 2.77% $5,101,365 $39,476 3.11%Short-term borrowings  60,117  573 3.82   73,767  700 3.85   30,449  308 4.07 FHLB advances & other borrowings  363,505  3,766 4.16   299,578  3,163 4.28   500,758  5,836 4.69 Subordinated debt  77,757  1,394 7.19   77,752  1,387 7.23   93,090  1,265 5.47 Trust preferred debentures  51,439  1,206 9.40   51,283  1,200 9.49   50,921  1,358 10.73 Total interest-bearing liabilities  5,398,427  39,229 2.91   5,576,387  41,065 2.99   5,776,583  48,243 3.36 Noninterest-bearing deposits  1,075,945      1,052,181      1,132,451    Other noninterest-bearing liabilities  108,819      123,613      104,841    Shareholders’ equity  572,119      715,673      783,846    Total liabilities and shareholder’s equity $7,155,310     $7,467,854     $7,797,721                       Net Interest Margin   $58,962 3.56%   $58,498 3.49%   $59,065 3.33%                   Cost of Deposits     2.19%     2.29%     2.55% (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 $0.3 million, $0.2 million and $0.2 million for the three months ended June 30, 2025, March 31, 2025 and June 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 $23.5 million for the second quarter of 2025, compared to $17.8 million for the first quarter of 2025. Noninterest income for the second quarter of 2025 included credit enhancement income of $3.8 million, primarily related to an increase in charge-offs in our third-party loan origination and servicing program which were fully reimbursed by our program sponsor.Noninterest expense was $50.0 million for the second quarter of 2025, compared to $203.0 million for the first quarter of 2025, which included goodwill impairment of $154.0 million. The Company continues to experience higher levels of professional services, legal fees and other expenses related to loan collections and the restatement of our financial statements. Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):   As of and for the Three Months Ended  June 30, March 31, December 31, September 30, June 30,   2025   2025   2024   2024   2024 Return on average assets  0.67%  (7.66)%  (1.59)%  1.05%  1.33%Pre-provision net revenue to average assets(1)  1.81%  1.47%  1.83%  2.21%  2.07%Net interest margin  3.56%  3.49%  3.34%  3.34%  3.33%Efficiency ratio (1)  60.60%  64.29%  62.31%  53.61%  55.79%Noninterest expense to average assets  2.80%  11.02%  3.04%  2.56%  2.62%Net charge-offs to average loans  2.34%  1.35%  7.94%  1.53%  0.94%Tangible book value per share at period end (1) $20.68  $20.54  $19.83  $22.70  $21.07 Diluted earnings (loss) per common share $0.44  $(6.58) $(1.52) $0.83  $1.06 Common shares outstanding at period end  21,515,138   21,503,036   21,494,485   21,393,905   21,377,215 Trust assets under administration $4,181,180  $4,101,414  $4,153,080  $4,268,539  $3,996,175  (1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures. Capital At June 30, 2025, Midland States Bank and the Company 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 June 30, 2025 Midland States Bank Midland States Bancorp, Inc. Minimum Regulatory Requirements (2)Total capital to risk-weighted assets13.74% 14.50% 10.50%Tier 1 capital to risk-weighted assets12.49% 12.07% 8.50%Common equity Tier 1 capital to risk-weighted assets12.49% 9.02% 7.00%Tier 1 leverage ratio9.93% 9.59% 4.00%Tangible common equity to tangible assets (1)N/A 6.27% 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 June 30, 2025, the Company had total assets of approximately $7.11 billion, and its Wealth Management Group had assets under administration of approximately $4.18 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,” “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," 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) 342-7321Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321  MIDLAND STATES BANCORP, INC.CONSOLIDATED FINANCIAL SUMMARY (unaudited)             As of  June 30, March 31, December 31, September 30, June 30,(dollars in thousands)  2025   2025   2024   2024   2024 Assets          Cash and cash equivalents $176,587  $102,006  $114,766  $121,873  $124,646 Investment securities  1,354,652   1,368,405   1,212,366   1,216,795   1,099,654 Loans  5,064,695   5,018,053   5,167,574   5,728,237   5,829,057 Allowance for credit losses on loans  (92,690)  (105,176)  (111,204)  (151,067)  (155,443)Total loans, net  4,972,005   4,912,877   5,056,370   5,577,170   5,673,614 Loans held for sale  7,899   287,821   344,947   8,001   5,555 Premises and equipment, net  86,240   86,719   85,710   84,672   83,040 Other real estate owned  393   4,183   4,941   8,646   8,304 Loan servicing rights, at lower of cost or fair value  16,720   17,278   17,842   18,400   18,902 Goodwill  7,927   7,927   161,904   161,904   161,904 Other intangible assets, net  10,362   11,189   12,100   13,052   14,003 Company-owned life insurance  214,392   212,336   211,168   209,193   207,211 Credit enhancement asset  5,800   5,615   16,804   20,633   18,202 Other assets  254,901   268,448   267,891   263,850   293,039 Total assets $7,107,878  $7,284,804  $7,506,809  $7,704,189  $7,708,074            Liabilities and Shareholders' Equity          Noninterest-bearing demand deposits $1,074,212  $1,090,707  $1,055,564  $1,050,617  $1,108,521 Interest-bearing deposits  4,872,707   4,845,727   5,141,679   5,206,219   5,009,502 Total deposits  5,946,919   5,936,434   6,197,243   6,256,836   6,118,023 Short-term borrowings  8,654   40,224   87,499   13,849   7,208 FHLB advances and other borrowings  345,000   498,000   258,000   425,000   600,000 Subordinated debt  77,759   77,754   77,749   82,744   91,656 Trust preferred debentures  51,518   51,358   51,205   51,058   50,921 Other liabilities  104,323   109,597   124,266   103,481   103,487 Total liabilities  6,534,173   6,713,367   6,795,962   6,932,968   6,971,295 Total shareholders’ equity  573,705   571,437   710,847   771,221   736,779 Total liabilities and shareholders’ equity $7,107,878  $7,284,804  $7,506,809  $7,704,189  $7,708,074  MIDLAND STATES BANCORP, INC.CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)             For the Three Months Ended  June 30, March 31, December 31, September 30, June 30,(dollars in thousands, except per share data)  2025  2025   2024   2024   2024 Net interest income:          Interest income $97,924 $99,355  $104,470  $108,994  $107,138 Interest expense  39,229  41,065   45,900   49,884   48,243 Net interest income  58,695  58,290   58,570   59,110   58,895 Provision for credit losses:          Provision for credit losses on loans  17,369  10,850   74,183   17,925   8,482 Recapture of credit losses on unfunded commitments  —  —   —   —   (200)Total provision for credit losses  17,369  10,850   74,183   17,925   8,282 Net interest income after provision for credit losses  41,326  47,440   (15,613)  41,185   50,613 Noninterest income:          Wealth management revenue  7,379  7,350   7,660   7,104   6,801 Service charges on deposit accounts  3,351  3,305   3,506   3,411   3,121 Interchange revenue  3,463  3,151   3,528   3,506   3,563 Residential mortgage banking revenue  756  676   637   697   557 Income on company-owned life insurance  2,068  2,334   1,975   1,981   1,925 Loss on sales of investment securities, net  —  —   (34)  (44)  (152)Credit enhancement income (loss)  3,848  (578)  15,810   14,206   14,328 Other income  2,669  1,525   2,289   2,684   1,841 Total noninterest income  23,534  17,763   35,371   33,545   31,984 Noninterest expense:          Salaries and employee benefits  25,685  26,416   22,283   24,382   22,872 Occupancy and equipment  4,166  4,498   4,286   4,393   3,964 Data processing  7,035  6,919   7,278   6,955   7,205 Professional services  2,792  2,741   1,580   1,744   2,243 Impairment on goodwill  —  153,977   —   —   — Amortization of intangible assets  827  911   952   951   1,016 Impairment on leased assets and surrendered assets  —  —   7,601   —   — FDIC insurance  1,422  1,463   1,383   1,402   1,219 Other expense  8,065  6,080   13,336   9,937   12,265 Total noninterest expense  49,992  203,005   58,699   49,764   50,784 Income (loss) before income taxes  14,868  (137,802)  (38,941)  24,966   31,813 Income tax expense (benefit)  2,844  3,172   (8,172)  4,535   6,094 Net income (loss)  12,024  (140,974)  (30,769)  20,431   25,719 Preferred stock dividends  2,228  2,228   2,228   2,229   2,228 Net income (loss) available to common shareholders $9,796 $(143,202) $(32,997) $18,202  $23,491            Basic earnings (loss) per common share $0.44 $(6.58) $(1.52) $0.83  $1.06 Diluted earnings (loss) per common share $0.44 $(6.58) $(1.52) $0.83  $1.06 Weighted average common shares outstanding  21,820,190  21,795,570   21,748,428   21,675,818   21,731,195 Weighted average diluted common shares outstanding  21,820,190  21,795,570   21,753,711   21,678,242   21,734,849  MIDLAND STATES BANCORP, INC.CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)             As of  June 30, March 31, December 31, September 30, June 30,(dollars in thousands)  2025  2025  2024  2024  2024Loan Portfolio Mix          Commercial loans $1,178,792 $879,286 $934,847 $879,590 $955,667Equipment finance loans  364,526  390,276  416,970  442,552  461,409Equipment finance leases  347,155  373,168  391,390  417,531  428,659Commercial FHA warehouse lines  1,068  —  8,004  50,198  —Total commercial loans and leases  1,891,541  1,642,730  1,751,211  1,789,871  1,845,735Commercial real estate  2,412,761  2,592,325  2,591,664  2,510,472  2,421,505Construction and land development  258,729  264,966  299,842  422,253  476,528Residential real estate  361,261  373,095  380,557  378,658  378,393Consumer  140,403  144,937  144,300  626,983  706,896Total loans $5,064,695 $5,018,053 $5,167,574 $5,728,237 $5,829,057           Loan Portfolio Segment          Regions          Eastern $901,848 $897,792 $899,611 $902,993 $884,343Northern  753,590  747,028  714,562  730,752  724,782Southern  778,124  711,787  720,188  694,810  699,893St. Louis  884,685  902,743  868,190  850,327  825,291Total Community Bank  3,318,247  3,259,350  3,202,551  3,178,882  3,134,309Specialty finance  701,244  874,567  1,038,238  1,018,961  1,107,508Equipment finance  711,681  763,444  808,359  860,083  890,068Non-core loan program and other(1)  333,523  120,692  118,426  670,311  697,172Total loans $5,064,695 $5,018,053 $5,167,574 $5,728,237 $5,829,057           Deposit Portfolio Mix          Noninterest-bearing demand $1,074,212 $1,090,707 $1,055,564 $1,050,617 $1,108,521Interest-bearing:          Checking  2,180,717  2,161,282  2,378,256  2,389,970  2,343,533Money market  1,216,357  1,154,403  1,173,630  1,187,139  1,143,668Savings  511,470  522,663  507,305  510,260  538,462Time  818,813  818,732  822,981  849,413  852,415Brokered time  145,350  188,647  259,507  269,437  131,424Total deposits $5,946,919 $5,936,434 $6,197,243 $6,256,836 $6,118,023           Deposit Portfolio by Channel          Retail $2,811,838 $2,846,494 $2,749,650 $2,695,077 $2,742,494Commercial  1,145,369  1,074,837  1,209,815  1,218,657  1,217,068Public Funds  618,172  490,374  505,912  574,704  568,889Wealth & Trust  304,626  301,251  340,615  332,242  298,659Servicing  785,659  842,567  896,436  958,662  931,892Brokered Deposits  248,707  358,063  473,451  390,558  238,708Other  32,548  22,848  21,364  86,936  120,313Total deposits $5,946,919 $5,936,434 $6,197,243 $6,256,836 $6,118,023 (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  June 30, March 31, December 31, September 30, June 30,(dollars in thousands, expect per share data)  2025   2025   2024   2024   2024 Income (loss) before income tax (benefit) expense - GAAP $14,868  $(137,802) $(38,941) $24,966  $31,813 Adjustments to noninterest income:          Loss on sales of investment securities, net  —   —   34   44   152 Loss (gain) on repurchase of subordinated debt  —   —   13   (77)  (167)Total adjustments to noninterest income  —   —   47   (33)  (15)Adjustments to noninterest expense:          Impairment on goodwill  —   (153,977)  —   —   — Total adjustments to noninterest expense  —   (153,977)  —   —   — Adjusted earnings (loss) pre tax - non-GAAP  14,868   16,175   (38,894)  24,933   31,798 Adjusted earnings (loss) tax (benefit) expense  2,844   3,172   (8,159)  4,526   6,090 Adjusted earnings (loss) - non-GAAP  12,024   13,003   (30,735)  20,407   25,708 Preferred stock dividends  2,228   2,228   2,228   2,229   2,228 Adjusted earnings (loss) available to common shareholders $9,796  $10,775  $(32,963) $18,178  $23,480 Adjusted diluted earnings (loss) per common share $0.44  $0.49  $(1.52) $0.82  $1.06            Pre-Provision Net Revenue Reconciliation             For the Three Months Ended  June 30, March 31, December 31, September 30, June 30,(dollars in thousands)  2025   2025   2024   2024   2024 Income (loss) before income taxes $14,868  $(137,802) $(38,941) $24,966  $31,813 Provision for credit losses  17,369   10,850   74,183   17,925   8,282 Impairment on goodwill  —   153,977   —   —   — Pre-provision net revenue $32,237  $27,025  $35,242  $42,891  $40,095 Pre-provision net revenue per diluted share $1.48  $1.24  $1.62  $1.98  $1.84 Pre-provision net revenue to average assets  1.81%  1.47%  1.83%  2.21%  2.07% MIDLAND STATES BANCORP, INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)           Efficiency Ratio Reconciliation             For the Three Months Ended  June 30, March 31, December 31, September 30, June 30,(dollars in thousands)  2025   2025   2024   2024   2024 Noninterest expense - GAAP $49,992  $203,005  $58,699  $49,764  $50,784 Impairment on goodwill  —   (153,977)  —   —   — Adjusted noninterest expense $49,992  $49,028  $58,699  $49,764  $50,784            Net interest income - GAAP $58,695  $58,290  $58,570  $59,110  $58,895 Effect of tax-exempt income  267   208   220   205   170 Adjusted net interest income  58,962   58,498   58,790   59,315   59,065            Noninterest income - GAAP  23,534   17,763   35,371   33,545   31,984 Loss on sales of investment securities, net  —   —   34   44   152 Loss (gain) on repurchase of subordinated debt  —   —   13   (77)  (167)Adjusted noninterest income  23,534   17,763   35,418   33,512   31,969            Adjusted total revenue $82,496  $76,261  $94,208  $92,827  $91,034            Efficiency ratio  60.60%  64.29%  62.31%  53.61%  55.79% Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share             As of  June 30, March 31, December 31, September 30, June 30,(dollars in thousands, except per share data)  2025   2025   2024   2024   2024 Shareholders' Equity to Tangible Common Equity            Total shareholders' equity—GAAP $573,705  $571,437  $710,847  $771,221  $736,779 Adjustments:          Preferred Stock  (110,548)  (110,548)  (110,548)  (110,548)  (110,548)Goodwill  (7,927)  (7,927)  (161,904)  (161,904)  (161,904)Other intangible assets, net  (10,362)  (11,189)  (12,100)  (13,052)  (14,003)Tangible common equity  444,868   441,773   426,295   485,717   450,324            Total Assets to Tangible Assets:          Total assets—GAAP $7,107,878  $7,284,804  $7,506,809  $7,704,189  $7,708,074 Adjustments:          Goodwill  (7,927)  (7,927)  (161,904)  (161,904)  (161,904)Other intangible assets, net  (10,362)  (11,189)  (12,100)  (13,052)  (14,003)Tangible assets $7,089,589  $7,265,688  $7,332,805  $7,529,233  $7,532,167            Common Shares Outstanding  21,515,138   21,503,036   21,494,485   21,393,905   21,377,215            Tangible Common Equity to Tangible Assets  6.27%  6.08%  5.81%  6.45%  5.98%Tangible Book Value Per Share $20.68  $20.54  $19.83  $22.70  $21.07 

Related News