Midland States Bancorp, Inc. Announces 2026 Second Quarter Results

EFFINGHAM, Ill., July 23, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $17.7 million, or $0.82 per diluted share, for the second quarter of 2026, compared to net income available to common shareholders of $16.2 million, or $0.74 per diluted share, for the first quarter of 2026. This also compares to net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025.

2026 Second Quarter Results

Net income available to common shareholders of $17.7 million, or $0.82 per diluted share.
Return on average assets of 1.22% and return on average tangible common equity of 16.27%.
Adjusted pre-provision net revenue of $32.8 million, or 2.01% of average assets, compared to $30.5 million, or 1.91% of average assets, for the first quarter of 2026.
Net interest margin of 3.98% compared to 3.91% in the prior quarter.
Community Bank loan portfolio increased $6.3 million, or 0.7% annualized, compared to prior quarter. Total loans decreased $94.9 million, primarily due to anticipated runoff within specialty finance and non-core portfolios.
Total capital to risk-weighted assets of 15.77% and common equity tier 1 capital of 10.39%.
Ratio of nonperforming assets to total assets of 0.91%, flat compared to prior quarter.

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

“Our second quarter results demonstrate the continued progress we’ve made transforming Midland into a higher-performing community bank. Core profitability remained strong, our net interest margin expanded, capital increased above our near-term target, and our Community Bank continued to generate growth in deposits and customer relationships while we further simplified our balance sheet through the planned runoff of specialty finance and non-core loan portfolios.

"Net interest margin expansion was driven by favorable loan repricing and continued optimization of our earning assets. Total deposits increased $267 million, while we further reduced our reliance on higher-cost brokered deposits. We also strengthened our capital position, increasing our common equity Tier 1 ratio to 10.4%, while continuing to return capital to shareholders through share repurchases.

"While we recognized a higher charge-off associated with the resolution of a previously identified nonperforming commercial real estate credit, broader credit trends continued to improve, including reductions in past due and substandard loans. Looking ahead, we remain focused on disciplined growth across our Community Bank, expanding our wealth management business following a record quarter, and leveraging our stronger financial position to deliver consistent earnings growth and long-term shareholder value.”

Financial Highlights and Key Performance Indicators

	As of and for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)		2026			2026			2025			2025			2025
Diluted earnings (loss) per common share	$	0.82		$	0.74		$	(0.24	)	$	0.24		$	0.44
Return on average assets (annualized)		1.22	%		1.16	%		(0.17	)%		0.43	%		0.67	%
Return on average tangible common equity (annualized) ⁽¹⁾		16.27	%		14.88	%		(4.46	)%		4.72	%		8.87	%
Adjusted pre-provision net revenue to average assets (annualized) ⁽¹⁾		2.01	%		1.91	%		1.86	%		1.81	%		1.86	%
Net interest margin (annualized)		3.98	%		3.91	%		3.74	%		3.79	%		3.56	%
Efficiency ratio ⁽¹⁾		60.61	%		62.17	%		63.01	%		61.01	%		59.85	%
Noninterest expense to average assets		3.12	%		3.16	%		4.54	%		2.86	%		2.80	%
Net charge-offs to average loans (annualized)		1.17	%		0.64	%		3.69	%		0.99	%		2.34	%
Tangible book value per share at period end ⁽¹⁾	$	21.41		$	20.77		$	20.70		$	21.16		$	20.68
Common shares outstanding at period end		20,725,814			20,813,975			21,169,854			21,543,557			21,515,138
Trust assets under administration	$	4,782,625		$	4,474,234		$	4,478,999		$	4,363,756		$	4,181,180
(1) Non-GAAP financial measures. Refer to pages 10-11 for a reconciliation to the comparable GAAP financial measures.

Key Points for Second Quarter and Outlook

Growth Trends in Community Bank & Wealth Management

Total loans at June 30, 2026 were $4.24 billion, a decrease of $94.9 million from March 31, 2026, reflecting the continued planned runoff of specialty finance and non-core portfolios, which more than offset Community Bank loan growth. Average loan balances in the Community Bank increased approximately $83 million, or 2.5%, during the quarter, supported by continued commercial loan production and growth in commercial and industrial commitments. Period-end balances were impacted by the timing of several larger fundings shifting into the third quarter and elevated loan payoffs. Key changes in the loan portfolio were as follows:
- Community Bank balances increased $6.3 million, or 0.7% annualized.
- Specialty finance loans decreased $81.4 million to $532.1 million from March 31, 2026.
- Non-core loans, which include our third-party lending and servicing programs and remaining equipment finance portfolio, decreased $19.7 million to $308.4 million from March 31, 2026.
Total deposits were $5.71 billion at June 30, 2026, an increase of $267.2 million from March 31, 2026. Key changes in deposits were as follows:
- Retail and commercial deposits increased $98.4 million and $116.4 million, respectively, driven primarily by growth in new accounts as a result of targeted initiatives.
- Public funds and servicing deposits increased $120.2 million and $23.8 million, respectively.
- Higher-cost brokered deposits decreased $100.9 million.
Wealth Management revenue totaled $8.8 million in the second quarter of 2026. Assets under administration were $4.78 billion at June 30, 2026, compared to $4.47 billion at March 31, 2026, driven primarily by improved market performance.

Net Interest Margin

Net interest margin was 3.98%, up seven basis points compared to the first quarter of 2026, driven primarily by a favorable shift in investment securities mix, a one basis point increase in loan yields, and a continued decline in funding costs. The cost of deposits decreased three basis points to 1.78% in the second quarter of 2026, as a result of continued pricing discipline.

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

	For the Three Months Ended
(dollars in thousands)	June 30, 2026						March 31, 2026						June 30, 2025
Interest-earning assets	Average Balance		Interest & Fees		Yield/Rate		Average Balance		Interest & Fees		Yield/Rate		Average Balance		Interest & Fees		Yield/Rate
Cash and cash equivalents	$	108,157	$	987	3.66	%	$	89,412	$	809	3.67	%	$	67,326	$	716	4.27	%
Investment securities ⁽¹⁾		1,617,474		19,540	4.85			1,592,433		18,702	4.76			1,367,180		17,164	5.04
Loans ⁽¹⁾⁽²⁾		4,268,168		67,195	6.31			4,254,321		66,044	6.30			5,123,558		79,240	6.20
Loans held for sale		8,431		128	6.10			6,892		102	6.01			44,642		377	3.39
Nonmarketable equity securities		30,285		534	7.07			31,547		583	7.50			38,803		694	7.17
Total interest-earning assets		6,032,515		88,384	5.88			5,974,605		86,240	5.85			6,641,509		98,191	5.93
Noninterest-earning assets		495,663						496,233						513,801
Total assets	$	6,528,178					$	6,470,838					$	7,155,310

Interest-Bearing Liabilities
Interest-bearing deposits	$	4,512,697	$	24,526	2.18	%	$	4,430,873	$	24,203	2.22	%	$	4,845,609	$	32,290	2.67	%
Short-term borrowings		28,521		202	2.84			33,236		231	2.82			60,117		573	3.82
FHLB advances & other borrowings		249,044		2,349	3.78			273,444		2,670	3.96			363,505		3,766	4.16
Subordinated debt		27,027		380	5.64			27,022		380	5.70			77,757		1,394	7.19
Trust preferred debentures		52,128		1,131	8.70			51,948		1,121	8.75			51,439		1,206	9.40
Total interest-bearing liabilities		4,869,417		28,588	2.35			4,816,523		28,605	2.41			5,398,427		39,229	2.91
Noninterest-bearing deposits		1,012,592						996,926						1,075,945
Other noninterest-bearing liabilities		84,416						87,907						108,819
Shareholders’ equity		561,753						569,482						572,119
Total liabilities and shareholders’ equity	$	6,528,178					$	6,470,838					$	7,155,310

Net Interest Margin			$	59,796	3.98	%			$	57,635	3.91	%			$	58,962	3.56	%

Cost of Deposits					1.78	%					1.81	%					2.19	%
(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, $0.2 million, and $0.3 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. (2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

Trends in Noninterest Income and Expense

Noninterest income was $23.8 million for the second quarter of 2026 compared to $22.1 million for the first quarter of 2026. Noninterest income for the first quarter of 2026 included $2.1 million of gains from the sale of the Company’s residential servicing portfolio and a portion of the Company’s commercial servicing portfolio, losses of $1.7 million from the sale of investment securities, and a $1.7 million loss related to our limited partnership investments. Excluding these transactions, noninterest income for the first quarter of 2026 was $23.5 million.
Noninterest expense remained relatively flat for the second quarter of 2026 at $50.8 million compared to $50.4 million for the first quarter of 2026.
Income tax expense was $5.9 million, resulting in an effective tax rate of 22.9% for the second quarter of 2026 compared to 23.4% and 19.1% for the first quarter of 2026 and second 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 $11.0 million, or 0.26% of total loans, at June 30, 2026, compared to $20.3 million, or 0.47% of total loans, at March 31, 2026. Substandard accruing loans decreased by $20.4 million to $71.5 million at June 30, 2026.
Nonperforming loans increased to $60.9 million, or 1.43% of total loans, at June 30, 2026, compared to $58.8 million, or 1.36% of total loans, at March 31, 2026.
Net charge-offs were $12.5 million for the second quarter of 2026, including an $8.6 million charge-off on a previously identified nonperforming commercial real estate relationship in our Community Bank portfolio. The charge-off reflects the execution of a resolution strategy for the relationship following the borrower’s acceptance of a purchase agreement for the underlying collateral.
Provision for credit losses on loans was $7.1 million for the second quarter of 2026, driven primarily by the replenishment of reserve balances resulting from the net charge-off activity during the quarter, partially offset by improved credit quality metrics, including favorable past due and delinquency trends, and anticipated continued runoff of our specialty finance and non-core loan portfolios.
Allowance for credit losses on loans was $62.5 million, or 1.47% of total loans, at June 30, 2026, compared to an allowance of $67.9 million, or 1.56% of total loans, at March 31, 2026.

The table below summarizes certain information regarding the Company’s loan portfolio asset quality for the periods presented.

	As of and for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2026			2026			2025			2025			2025
Asset Quality
Loans 30-89 days past due	$	10,984		$	20,266		$	17,079		$	26,019		$	40,959
Nonperforming loans		60,879			58,791			65,483			68,703			80,112
Nonperforming assets		61,235			59,305			66,089			70,369			81,775
Substandard accruing loans		71,526			91,963			76,000			78,901			58,478
Net charge-offs		12,465			6,747			43,492			12,309			29,855
Loans 30-89 days past due to total loans		0.26	%		0.47	%		0.39	%		0.53	%		0.81	%
Nonperforming loans to total loans		1.43	%		1.36	%		1.50	%		1.41	%		1.59	%
Nonperforming assets to total assets		0.91	%		0.91	%		1.01	%		1.02	%		1.15	%
Allowance for credit losses to total loans		1.47	%		1.56	%		1.59	%		2.07	%		1.84	%
Allowance for credit losses to nonperforming loans		102.69	%		115.45	%		105.71	%		146.84	%		115.70	%
Net charge-offs to average loans (annualized)		1.17	%		0.64	%		3.69	%		0.99	%		2.34	%

Capital

As previously announced, the Company’s board of directors authorized a share repurchase program, pursuant to which the Company was authorized to repurchase up to $45.0 million of its common stock through December 31, 2026. During the second quarter of 2026, the Company repurchased $2.7 million of its common stock (113,208 shares of its common stock at a weighted average price of $24.05), resulting in approximately $24.9 million in remaining repurchase authority under the program.

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

	As of March 31, 2026
	Midland States Bank	Midland States Bancorp, Inc.	Minimum Regulatory Requirements ⁽²⁾
Total capital to risk-weighted assets	14.42%	15.27%	10.50%
Tier 1 capital to risk-weighted assets	13.17%	13.48%	8.50%
Common equity Tier 1 capital to risk-weighted assets	13.17%	9.98%	7.00%
Tier 1 leverage ratio	10.10%	10.35%	4.00%
Tangible common equity to tangible assets ⁽¹⁾	N/A	6.62%	N/A
(1) Non-GAAP financial measure. Refer to pages 10-11 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, 2026, the Company had total assets of approximately $6.70 billion, and its Wealth Management Group had assets under administration of approximately $4.78 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,” 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 profitability and asset profile, and that the tangible asset-based measures are commonly used by investors in evaluating value of financial institutions and their equity securities. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, deposit volatility and potential regulatory developments; the performance of our loan portfolio and our ability to manage credit risk; changes in the financial markets; the effects of armed conflict, including the scope and duration of disruptions in global energy markets relating to war in the Middle East; changes in the business environment resulting from the adoption of artificial intelligence, including fraud and cybersecurity risk; operational risks, including with respect to fraud and information technology; changes in business plans as circumstances warrant; changes to U.S. and state tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2025, which are incorporated herein by reference. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," “should,” "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," “outlook,” “trends,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACTS:
Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321
Claire A. Stack, Chief Financial Officer, at cstack@midlandsb.com or (217) 342-7321

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2026			2026			2025			2025			2025
Assets
Cash and cash equivalents	$	298,747		$	113,658		$	127,811		$	166,147		$	176,587
Investment securities		1,657,313			1,596,220			1,527,236			1,383,121			1,354,652
Loans		4,243,704			4,338,573			4,352,004			4,867,587			5,035,295
Allowance for credit losses on loans		(62,519	)		(67,875	)		(69,219	)		(100,886	)		(92,690	)
Total loans, net		4,181,185			4,270,698			4,282,785			4,766,701			4,942,605
Loans held for sale		8,944			6,709			7,781			7,535			37,299
Premises and equipment, net		82,898			84,169			85,134			86,005			86,240
Other real estate owned		356			514			606			393			393
Loan servicing rights, at lower of cost or fair value		11,316			11,688			11,932			16,165			16,720
Goodwill		7,927			7,927			7,927			7,927			7,927
Other intangible assets, net		7,495			8,159			8,876			9,619			10,362
Company-owned life insurance		222,757			220,630			218,554			216,494			214,392
Credit enhancement asset		13,642			13,476			12,557			5,765			5,800
Other assets		208,036			214,115			222,221			245,643			254,901
Total assets	$	6,700,616		$	6,547,963		$	6,513,420		$	6,911,515		$	7,107,878

Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	1,010,128		$	1,013,808		$	1,040,411		$	1,015,930		$	1,074,212
Interest-bearing deposits		4,697,150			4,426,259			4,383,968			4,588,895			4,872,707
Total deposits		5,707,278			5,440,067			5,424,379			5,604,825			5,946,919
Short-term borrowings		7,645			153,425			60,181			146,766			8,654
FHLB advances		258,000			238,000			293,000			373,000			345,000
Subordinated debt		27,030			27,024			27,019			27,014			77,759
Trust preferred debentures		52,219			52,035			51,857			51,684			51,518
Other liabilities		78,756			78,458			91,485			124,225			104,323
Total liabilities		6,130,928			5,989,009			5,947,921			6,327,514			6,534,173
Total shareholders’ equity		569,688			558,954			565,499			584,001			573,705
Total liabilities and shareholders’ equity	$	6,700,616		$	6,547,963		$	6,513,420		$	6,911,515		$	7,107,878

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)		2026			2026			2025			2025			2025
Net interest income:
Interest income	$	88,177		$	86,022		$	92,095		$	98,493		$	97,924
Interest expense		28,588			28,605			33,393			37,376			39,229
Net interest income		59,589			57,417			58,702			61,117			58,695
Provision for credit losses:
Provision for credit losses on loans		7,109			5,403			11,825			20,505			17,369
Recapture of credit losses on unfunded commitments		(290	)		(400	)		(200	)		(500	)		—
Total provision for credit losses		6,819			5,003			11,625			20,005			17,369
Net interest income after provision for credit losses		52,770			52,414			47,077			41,112			41,326
Noninterest income:
Wealth management revenue		8,768			8,248			8,272			8,018			7,379
Service charges on deposit accounts		3,449			3,355			3,573			3,598			3,351
Interchange revenue		3,553			3,528			3,437			3,445			3,463
Residential mortgage banking revenue		686			626			690			735			756
Income on company-owned life insurance		2,127			2,076			2,060			2,102			2,068
Gain (loss) on sales of investment securities, net		—			(1,731	)		—			14			—
Credit enhancement income (loss)		3,081			3,360			6,876			(242	)		3,848
Other income		2,104			2,660			1,959			2,346			2,669
Total noninterest income		23,768			22,122			26,867			20,016			23,534
Noninterest expense:
Salaries and employee benefits		27,354			26,157			25,906			26,393			25,685
Occupancy and equipment		4,229			4,535			4,353			4,206			4,166
Data processing		6,994			7,065			6,834			7,186			7,035
Professional services		1,665			2,242			2,321			2,017			2,792
Amortization of intangible assets		664			717			743			743			827
Loss on sale of loan portfolios		—			—			23,051			—			—
Impairment on leased assets and surrendered assets		—			—			684			—			—
FDIC insurance		781			529			3,739			1,512			1,422
Other expense		9,068			9,179			9,561			7,757			8,065
Total noninterest expense		50,755			50,424			77,192			49,814			49,992
Income (loss) before income taxes		25,783			24,112			(3,248	)		11,314			14,868
Income tax expense (benefit)		5,895			5,649			(360	)		3,757			2,844
Net income (loss)		19,888			18,463			(2,888	)		7,557			12,024
Preferred stock dividends		2,228			2,228			2,228			2,229			2,228
Net income (loss) available to common shareholders	$	17,660		$	16,235		$	(5,116	)	$	5,328		$	9,796

Basic earnings (loss) per common share	$	0.82		$	0.74		$	(0.24	)	$	0.24		$	0.44
Diluted earnings (loss) per common share	$	0.82		$	0.74		$	(0.24	)	$	0.24		$	0.44
Weighted average common shares outstanding		21,074,683			21,301,246			21,854,033			21,863,911			21,820,190
Weighted average diluted common shares outstanding		21,074,683			21,301,246			21,854,033			21,863,911			21,820,190

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)

	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)		2026		2026		2025		2025		2025
Loan Portfolio Mix
Commercial loans	$	1,185,730	$	1,216,511	$	1,178,521	$	1,476,533	$	1,544,386
Equipment finance leases		37,086		43,803		50,981		310,983		347,155
Total commercial loans and leases		1,222,816		1,260,314		1,229,502		1,787,516		1,891,541
Commercial real estate		2,296,978		2,322,198		2,342,664		2,336,661		2,383,361
Construction and land development		243,840		276,469		286,140		260,073		258,729
Residential real estate		347,664		344,511		349,623		353,475		361,261
Consumer		132,406		135,081		144,075		129,862		140,403
Total loans	$	4,243,704	$	4,338,573	$	4,352,004	$	4,867,587	$	5,035,295

Loan Portfolio Segment
Regions
Eastern	$	978,944	$	989,596	$	972,031	$	927,977	$	897,348
Northern		771,844		758,815		711,702		724,695		753,590
Southern		700,937		713,592		729,368		725,892		778,124
St. Louis		951,505		934,974		915,126		896,005		884,685
Total Community Bank		3,403,230		3,396,977		3,328,227		3,274,569		3,313,747
Specialty finance		532,070		613,514		668,183		642,167		670,566
Non-core loan program and other⁽¹⁾		308,404		328,082		355,594		950,851		1,050,982
Total loans	$	4,243,704	$	4,338,573	$	4,352,004	$	4,867,587	$	5,035,295

Deposit Portfolio Mix
Noninterest-bearing demand	$	1,010,128	$	1,013,808	$	1,040,411	$	1,015,930	$	1,074,212
Interest-bearing:
Checking		2,094,880		1,886,212		1,855,215		1,996,501		2,180,717
Money market		1,242,303		1,295,781		1,248,942		1,240,885		1,216,357
Savings		640,292		495,899		487,742		486,953		511,470
Time		694,642		723,055		748,942		804,740		818,813
Brokered time		25,033		25,312		43,127		59,816		145,350
Total deposits	$	5,707,278	$	5,440,067	$	5,424,379	$	5,604,825	$	5,946,919

Deposit Portfolio by Channel
Retail	$	3,003,073	$	2,904,695	$	2,823,064	$	2,791,085	$	2,811,838
Commercial		1,325,592		1,209,210		1,193,637		1,248,445		1,145,369
Public Funds		576,188		455,982		473,381		605,474		618,172
Wealth & Trust		243,549		242,977		265,747		263,765		304,626
Servicing		502,335		478,496		498,496		498,892		785,659
Brokered Deposits		25,033		125,949		143,192		167,228		248,707
Other		31,508		22,758		26,862		29,936		32,548
Total deposits	$	5,707,278	$	5,440,067	$	5,424,379	$	5,604,825	$	5,946,919
(1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio, and equipment financing loans and leases.

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)

Adjusted Earnings Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)		2026			2026			2025			2025			2025
Income (loss) before income tax expense (benefit) – GAAP	$	25,783		$	24,112		$	(3,248	)	$	11,314		$	14,868
Adjustments to noninterest income:
(Gain) loss on sales of investment securities, net		—			1,731			—			(14	)		—
Gain on sale of mortgage servicing rights		—			(2,077	)		—			—			—
Loss on limited partnership investments		176			1,689			134			315			1,028
Total adjustments to noninterest income		176			1,343			134			301			1,028
Adjustments to noninterest expense:
Loss on sale of loan portfolios		—			—			(23,051	)		—			—
Total adjustments to noninterest expense		—			—			(23,051	)		—			—
Adjusted earnings pre-tax – non-GAAP		25,959			25,455			19,937			11,615			15,896
Adjusted earnings tax expense		5,941			6,002			5,726			3,836			3,114
Adjusted earnings – non-GAAP		20,018			19,453			14,211			7,779			12,782
Preferred stock dividends		2,228			2,228			2,228			2,229			2,228
Adjusted earnings available to common shareholders	$	17,790		$	17,225		$	11,983		$	5,550		$	10,554
Adjusted diluted earnings per common share	$	0.82		$	0.79		$	0.54		$	0.25		$	0.48

Adjusted Pre-Provision Net Revenue Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)		2026			2026			2025			2025			2025
Adjusted earnings pre-tax – non-GAAP	$	25,959		$	25,455		$	19,937		$	11,615		$	15,896
Provision for credit losses		6,819			5,003			11,625			20,005			17,369
Adjusted pre-provision net revenue	$	32,778		$	30,458		$	31,562		$	31,620		$	33,265
Adjusted pre-provision net revenue to average assets (annualized)		2.01	%		1.91	%		1.86	%		1.81	%		1.86	%

Return on Average Tangible Common Equity

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2026			2026			2025			2025			2025
Net income available to common shareholders	$	17,660		$	16,235		$	(5,116	)	$	5,328		$	9,796

Average total shareholders' equity – GAAP	$	561,753		$	569,482		$	582,698		$	576,431		$	572,119
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		(7,813	)		(8,487	)		(9,320	)		(9,978	)		(10,744	)
Average tangible common equity	$	435,465		$	442,520		$	454,903		$	447,978		$	442,900

Return on average tangible common equity (annualized)		16.27	%		14.88	%		(4.46	)%		4.72	%		8.87	%

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)(continued)

Efficiency Ratio Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2026			2026			2025			2025			2025
Noninterest expense – GAAP	$	50,755		$	50,424		$	77,192		$	49,814		$	49,992
Loss on sale of loan portfolios		—			—			(23,051	)		—			—
Adjusted noninterest expense	$	50,755		$	50,424		$	54,141		$	49,814		$	49,992

Net interest income – GAAP	$	59,589		$	57,417		$	58,702		$	61,117		$	58,695
Effect of tax-exempt income		207			218			221			209			267
Adjusted net interest income		59,796			57,635			58,923			61,326			58,962

Noninterest income – GAAP		23,768			22,122			26,867			20,016			23,534
(Gain) loss on sales of investment securities, net		—			1,731			—			(14	)		—
Gain on sale of mortgage servicing rights		—			(2,077	)		—			—			—
Loss on limited partnership investments		176			1,689			134			315			1,028
Adjusted noninterest income		23,944			23,465			27,001			20,317			24,562

Adjusted total revenue	$	83,740		$	81,100		$	85,924		$	81,643		$	83,524

Efficiency ratio		60.61	%		62.17	%		63.01	%		61.01	%		59.85	%

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)		2026			2026			2025			2025			2025
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity – GAAP	$	569,688		$	558,954		$	565,499		$	584,001		$	573,705
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		(7,495	)		(8,159	)		(8,876	)		(9,619	)		(10,362	)
Tangible common equity	$	443,718		$	432,320		$	438,148		$	455,907		$	444,868

Total Assets to Tangible Assets:
Total assets – GAAP	$	6,700,616		$	6,547,963		$	6,513,420		$	6,911,515		$	7,107,878
Adjustments:
Goodwill		(7,927	)		(7,927	)		(7,927	)		(7,927	)		(7,927	)
Other intangible assets, net		(7,495	)		(8,159	)		(8,876	)		(9,619	)		(10,362	)
Tangible assets	$	6,685,194		$	6,531,877		$	6,496,617		$	6,893,969		$	7,089,589

Common Shares Outstanding		20,725,814			20,813,975			21,169,854			21,543,557			21,515,138

Tangible Common Equity to Tangible Assets		6.64	%		6.62	%		6.74	%		6.61	%		6.27	%
Tangible Book Value Per Share	$	21.41		$	20.77		$	20.70		$	21.16		$	20.68

A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/50d57e9d-7816-49fc-8392-1535351bc127

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