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Midland States Bancorp, Inc. Announces 2026 Third Quarter Results
Effingham, IL, October 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.”

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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)20262026202620252025
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 assets3.13 %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 end20,801,859 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.

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•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, 2026June 30, 2026September 30, 2025
Interest-earning assetsAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/RateAverage BalanceInterest & FeesYield/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 sale6,054 97 6.36 8,431 128 6.10 9,268 147 6.29 
Nonmarketable equity securities29,215 530 7.20 30,285 534 7.07 38,559 715 7.36 
Total interest-earning assets6,200,069 93,223 5.97 6,032,515 88,384 5.88 6,413,066 98,702 6.11 
Noninterest-earning assets495,446 495,663 498,875 
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 borrowings42,059 349 3.29 28,521 202 2.84 54,839 499 3.61 
FHLB advances & other borrowings221,217 2,165 3.88 249,044 2,349 3.78 386,772 4,044 4.15 
Subordinated debt27,032 380 5.58 27,027 380 5.64 77,210 1,393 7.16 
Trust preferred debentures52,316 1,154 8.75 52,128 1,131 8.70 51,602 1,221 9.39 
Total interest-bearing liabilities5,063,325 30,299 2.37 4,869,417 28,588 2.35 5,214,878 37,376 2.84 
Noninterest-bearing deposits989,768 1,012,592 1,020,196 
Other noninterest-bearing liabilities75,440 84,416 100,436 
Shareholders’ equity566,982 561,753 576,431 
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 Deposits1.82 %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.
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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.

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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,
20262026202620252025
Asset Quality
Loans 30-89 days past due$9,103 $10,984 $20,266 $17,079 $26,019 
Nonperforming loans58,690 60,879 58,791 65,483 68,703 
Nonperforming assets58,870 61,235 59,305 66,089 70,369 
Substandard accruing loans71,168 71,526 91,963 76,000 78,901 
Net charge-offs5,352 12,465 6,747 43,492 12,309 
Loans 30-89 days past due to total loans0.21 %0.26 %0.47 %0.39 %0.53 %
Nonperforming loans to total loans1.37 %1.43 %1.36 %1.50 %1.41 %
Nonperforming assets to total assets0.86 %0.91 %0.91 %1.01 %1.02 %
Allowance for credit losses to total loans1.42 %1.47 %1.56 %1.59 %2.07 %
Allowance for credit losses to nonperforming loans103.68 %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 BankMidland States Bancorp, Inc.
Minimum Regulatory Requirements (2)
Total capital to risk-weighted assets14.52%15.60%10.50%
Tier 1 capital to risk-weighted assets13.27%13.82%8.50%
Common equity Tier 1 capital to risk-weighted assets13.27%10.36%7.00%
Tier 1 leverage ratio9.93%10.34%4.00%
Tangible common equity to tangible assets (1)
N/A5.97%N/A
As of June 30, 2026
Midland States BankMidland States Bancorp, Inc.
Minimum Regulatory Requirements (2)
Total capital to risk-weighted assets14.84%15.77%10.50%
Tier 1 capital to risk-weighted assets13.59%13.97%8.50%
Common equity Tier 1 capital to risk-weighted assets13.59%10.39%7.00%
Tier 1 leverage ratio10.08%10.37%4.00%
Tangible common equity to tangible assets (1)
N/A6.64%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.
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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
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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)20262026202620252025
Assets
Cash and cash equivalents$99,612 $298,747 $113,658 $127,811 $166,147 
Investment securities1,909,021 1,657,313 1,596,220 1,527,236 1,383,121 
Loans4,282,828 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, net4,221,976 4,181,185 4,270,698 4,282,785 4,766,701 
Loans held for sale4,580 8,944 6,709 7,781 7,535 
Premises and equipment, net82,435 82,898 84,169 85,134 86,005 
Other real estate owned180 356 514 606 393 
Loan servicing rights, at lower of cost or fair value10,931 11,316 11,688 11,932 16,165 
Goodwill7,927 7,927 7,927 7,927 7,927 
Other intangible assets, net6,849 7,495 8,159 8,876 9,619 
Company-owned life insurance224,884 222,757 220,630 218,554 216,494 
Credit enhancement asset14,364 13,642 13,476 12,557 5,765 
Other assets234,083 208,036 214,115 222,221 245,643 
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 deposits4,644,050 4,697,150 4,426,259 4,383,968 4,588,895 
Total deposits5,617,438 5,707,278 5,440,067 5,424,379 5,604,825 
Short-term borrowings151,499 7,645 153,425 60,181 146,766 
FHLB advances353,000 258,000 238,000 293,000 373,000 
Subordinated debt27,035 27,030 27,024 27,019 27,014 
Trust preferred debentures52,409 52,219 52,035 51,857 51,684 
Other liabilities84,094 78,756 78,458 91,485 124,225 
Total liabilities6,285,475 6,130,928 5,989,009 5,947,921 6,327,514 
Total shareholders’ equity531,367 569,688 558,954 565,499 584,001 
Total liabilities and shareholders’ equity$6,816,842 $6,700,616 $6,547,963 $6,513,420 $6,911,515 
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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)20262026202620252025
Net interest income:
Interest income$93,021 $88,177 $86,022 $92,095 $98,493 
Interest expense30,299 28,588 28,605 33,393 37,376 
Net interest income62,722 59,589 57,417 58,702 61,117 
Provision for credit losses:
Provision for credit losses on loans3,685 7,109 5,403 11,825 20,505 
Provision (recapture) of credit losses on unfunded commitments50 (290)(400)(200)(500)
Total provision for credit losses3,735 6,819 5,003 11,625 20,005 
Net interest income after provision for credit losses58,987 52,770 52,414 47,077 41,112 
Noninterest income:
Wealth management revenue8,651 8,768 8,248 8,272 8,018 
Service charges on deposit accounts3,775 3,449 3,355 3,573 3,598 
Interchange revenue3,984 3,553 3,528 3,437 3,445 
Residential mortgage banking revenue216 686 626 690 735 
Income on company-owned life insurance1,828 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 income1,675 2,104 2,660 1,959 2,346 
Total noninterest income23,237 23,768 22,122 26,867 20,016 
Noninterest expense:
Salaries and employee benefits28,500 27,354 26,157 25,906 26,393 
Occupancy and equipment4,330 4,229 4,535 4,353 4,206 
Data processing6,871 6,994 7,065 6,834 7,186 
Professional services1,669 1,665 2,242 2,321 2,017 
Amortization of intangible assets646 664 717 743 743 
Loss on sale of loan portfolios— — — 23,051 — 
Impairment on leased assets and surrendered assets— — — 684 — 
FDIC insurance791 781 529 3,739 1,512 
Other expense10,036 9,068 9,179 9,561 7,757 
Total noninterest expense52,843 50,755 50,424 77,192 49,814 
Income (loss) before income taxes29,381 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 dividends2,229 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 outstanding21,128,351 21,074,683 21,301,246 21,854,033 21,863,911 
Weighted average diluted common shares outstanding21,140,143 21,074,683 21,301,246 21,854,033 21,863,911 

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MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)
As of
September 30,June 30,March 31,December 31,September 30,
(dollars in thousands)20262026202620252025
Loan Portfolio Mix
Commercial loans$1,183,813 $1,185,730 $1,216,511 $1,178,521 $1,476,533 
Equipment finance leases30,339 37,086 43,803 50,981 310,983 
Total commercial loans and leases1,214,152 1,222,816 1,260,314 1,229,502 1,787,516 
Commercial real estate2,332,478 2,296,978 2,322,198 2,342,664 2,336,661 
Construction and land development249,268 243,840 276,469 286,140 260,073 
Residential real estate358,021 347,664 344,511 349,623 353,475 
Consumer128,909 132,406 135,081 144,075 129,862 
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 
Northern782,911 771,844 758,815 711,702 724,695 
Southern664,770 700,937 713,592 729,368 725,892 
St. Louis994,197 951,505 934,974 915,126 896,005 
Total Community Bank3,426,979 3,403,230 3,396,977 3,328,227 3,274,569 
Specialty finance560,102 532,070 613,514 668,183 642,167 
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:
Checking2,155,193 2,094,880 1,886,212 1,855,215 1,996,501 
Money market1,306,610 1,242,303 1,295,781 1,248,942 1,240,885 
Savings498,397 640,292 495,899 487,742 486,953 
Time666,749 694,642 723,055 748,942 804,740 
Brokered time17,101 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 
Commercial1,361,246 1,325,592 1,209,210 1,193,637 1,248,445 
Public Funds609,873 576,188 455,982 473,381 605,474 
Wealth & Trust249,209 243,549 242,977 265,747 263,765 
Servicing475,862 502,335 478,496 498,496 498,892 
Brokered Deposits17,106 25,033 125,949 143,192 167,228 
Other13,723 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.



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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)
20262026202620252025
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-GAAP29,363 25,959 25,455 19,937 11,615 
Adjusted earnings tax expense6,579 5,941 6,002 5,726 3,836 
Adjusted earnings - non-GAAP22,784 20,018 19,453 14,211 7,779 
Preferred stock dividends2,229 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)20262026202620252025
Adjusted earnings pre-tax - non-GAAP$29,363 $25,959 $25,455 $19,937 $11,615 
Provision for credit losses3,735 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)20262026202620252025
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 %

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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)20262026202620252025
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 income202 207 218 221 209 
Adjusted net interest income62,924 59,796 57,635 58,923 61,326 
Noninterest income - GAAP23,237 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 income23,219 23,944 23,465 27,001 20,317 
Adjusted total revenue$86,143 $83,740 $81,100 $85,924 $81,643 
Efficiency ratio61.34 %60.61 %62.17 %63.01 %61.01 %

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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)20262026202620252025
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 Outstanding20,801,859 20,725,814 20,813,975 21,169,854 21,543,557 
Tangible Common Equity to Tangible Assets5.97 %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 

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