Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today
reported net income available to common shareholders of $19.3
million, or $0.86 per diluted share, for the second quarter of
2023, compared to $19.5 million, or $0.86 per diluted share, for
the first quarter of 2023. This also compares to net income
available to common shareholders of $21.9 million, or $0.97 per
diluted share, for the second quarter of 2022.
Jeffrey G. Ludwig, President and Chief Executive Officer of the
Company, said, “We executed well in the second quarter and
continued to deliver strong financial performance while
prioritizing prudent risk management given the challenging
operating environment, which resulted in an 8% increase in our
pre-tax, pre-provision income compared to the prior quarter. Due to
our strong financial performance and prudent balance sheet
management, we saw an increase in our capital ratios and tangible
book value per share, while also taking advantage of the
opportunity to repurchase our common stock at below tangible book
value and redeeming some of our higher cost subordinated debt.
“We continue to have success in developing full banking
relationships with high quality businesses, which resulted in
continued growth in our commercial loan portfolio. As planned, we
are funding the new commercial loans and additional securities
purchases with the runoff in our GreenSky portfolio, which is
contributing to our strong financial performance and increase in
capital ratios.
“While economic conditions remain uncertain, we will continue to
prioritize prudent risk management and be conservative in our new
loan production to build capital and liquidity. We continue to see
good opportunities to add core deposit relationships in our markets
with both retail and commercial customers, and during the second
half of the year, we expect to begin seeing a contribution to
deposit gathering from our Banking-as-a-Service initiative, which
we believe will further strengthen our deposit base, support
profitable growth in the future, and create additional franchise
value,” said Mr. Ludwig.
Balance Sheet Highlights
Total assets were $8.03 billion at June 30, 2023, compared to
$7.93 billion at March 31, 2023, and $7.44 billion at June 30,
2022. At June 30, 2023, portfolio loans were $6.37 billion,
compared to $6.35 billion as of March 31, 2023, and $5.80 billion
as of June 30, 2022.
Loans
During the second quarter of 2023, outstanding loans increased
at a slower rate as the Company originated loans in a more
selective and deliberate approach to balance liquidity and funding
costs. Commercial loan and lease balances and construction and land
development loans increased $18.0 million and $39.8 million,
respectively, offsetting the decline in consumer loan balances due
to a decrease in loans originated through GreenSky.
|
As of |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(in thousands) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Loan
Portfolio |
|
|
|
|
|
|
|
|
|
Commercial loans |
$ |
962,756 |
|
$ |
937,920 |
|
$ |
872,794 |
|
$ |
907,651 |
|
$ |
821,119 |
Equipment finance loans |
|
614,633 |
|
|
632,205 |
|
|
616,751 |
|
|
577,323 |
|
|
546,267 |
Equipment finance leases |
|
500,485 |
|
|
510,029 |
|
|
491,744 |
|
|
457,611 |
|
|
439,202 |
Commercial FHA warehouse
lines |
|
30,522 |
|
|
10,275 |
|
|
25,029 |
|
|
51,309 |
|
|
23,872 |
Total commercial loans and leases |
|
2,108,396 |
|
|
2,090,429 |
|
|
2,006,318 |
|
|
1,993,894 |
|
|
1,830,460 |
Commercial real estate |
|
2,443,995 |
|
|
2,448,158 |
|
|
2,433,159 |
|
|
2,466,303 |
|
|
2,335,655 |
Construction and land
development |
|
366,631 |
|
|
326,836 |
|
|
320,882 |
|
|
225,549 |
|
|
203,955 |
Residential real estate |
|
371,486 |
|
|
369,910 |
|
|
366,094 |
|
|
356,225 |
|
|
340,103 |
Consumer |
|
1,076,836 |
|
|
1,118,938 |
|
|
1,180,014 |
|
|
1,156,480 |
|
|
1,085,371 |
Total loans |
$ |
6,367,344 |
|
$ |
6,354,271 |
|
$ |
6,306,467 |
|
$ |
6,198,451 |
|
$ |
5,795,544 |
|
Loan Quality
Credit quality metrics declined during the second quarter of
2023. Loans 30-89 days past due totaled $44.2 million as of June
30, 2023, compared to $30.9 million as of March 31, 2023, and $16.2
million as of June 30, 2022. The increase in delinquencies during
the most recent quarter was due to a single commercial loan, which
has since been brought current, and an increase in delinquencies in
equipment finance loans and leases.
Non-performing loans were $54.8 million at June 30, 2023,
compared to $50.7 million as of March 31, 2023, and $56.9 million
as of June 30, 2022. The increase at June 30, 2023 was related to
one commercial real estate loan moving to non-performing at the end
of the quarter. Non-performing loans as a percentage of portfolio
loans was 0.86% at June 30, 2023, compared with 0.80% at March 31,
2023, and 0.98% at June 30, 2022.
Non-performing assets were 0.72% of total assets at the end of
the second quarter of 2023, compared to 0.74% at March 31, 2023 and
0.93% at June 30, 2022. Two other real estate owned (“OREO”)
properties were sold during the second quarter of 2023 at a gain of
$0.8 million resulting in the decrease in non-performing
assets.
|
As of and for the Three Months Ended |
(in
thousands) |
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Asset
Quality |
|
|
|
|
|
|
|
|
|
Loans 30-89 days past due |
$ |
44,161 |
|
|
$ |
30,895 |
|
|
$ |
32,372 |
|
|
$ |
28,275 |
|
|
$ |
16,212 |
|
Nonperforming loans |
|
54,844 |
|
|
|
50,713 |
|
|
|
49,423 |
|
|
|
46,882 |
|
|
|
56,883 |
|
Nonperforming assets |
|
57,688 |
|
|
|
58,806 |
|
|
|
57,824 |
|
|
|
59,524 |
|
|
|
69,344 |
|
Substandard loans |
|
130,707 |
|
|
|
99,819 |
|
|
|
101,044 |
|
|
|
98,517 |
|
|
|
114,820 |
|
Net charge-offs |
|
2,996 |
|
|
|
2,119 |
|
|
|
538 |
|
|
|
3,233 |
|
|
|
2,781 |
|
Loans 30-89 days past due to
total loans |
|
0.69 |
% |
|
|
0.49 |
% |
|
|
0.51 |
% |
|
|
0.46 |
% |
|
|
0.28 |
% |
Nonperforming loans to total
loans |
|
0.86 |
% |
|
|
0.80 |
% |
|
|
0.78 |
% |
|
|
0.76 |
% |
|
|
0.98 |
% |
Nonperforming assets to total
assets |
|
0.72 |
% |
|
|
0.74 |
% |
|
|
0.74 |
% |
|
|
0.76 |
% |
|
|
0.93 |
% |
Allowance for credit losses to
total loans |
|
1.02 |
% |
|
|
0.98 |
% |
|
|
0.97 |
% |
|
|
0.95 |
% |
|
|
0.95 |
% |
Allowance for credit losses to
nonperforming loans |
|
118.43 |
% |
|
|
122.39 |
% |
|
|
123.53 |
% |
|
|
125.08 |
% |
|
|
96.51 |
% |
Net charge-offs to average
loans |
|
0.19 |
% |
|
|
0.14 |
% |
|
|
0.03 |
% |
|
|
0.21 |
% |
|
|
0.20 |
% |
|
The Company’s allowance for credit losses totaled $65.0 million
at June 30, 2023, compared to $62.1 million at March 31, 2023, and
$54.9 million at June 30, 2022. The allowance as a percentage of
portfolio loans was 1.02% at June 30, 2023, compared to 0.98% at
March 31, 2023, and 0.95% at June 30, 2022.
Deposits
Total deposits were $6.43 billion at both June 30, 2023 and
March 31, 2023, compared with $6.18 billion at June 30, 2022. The
deposit mix continues to shift from noninterest-bearing deposits to
interest-bearing deposits due to the continued rate increases
announced by the Federal Reserve. Interest rate promotions offered
during the second quarter of 2023 on time deposit products
contributed to an increase in balances of $73.9 million at June 30,
2023, compared to March 31, 2023.
|
As of |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(in thousands) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Deposit
Portfolio |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
1,162,909 |
|
$ |
1,215,758 |
|
$ |
1,362,158 |
|
$ |
1,362,481 |
|
$ |
1,403,386 |
Interest-bearing: |
|
|
|
|
|
|
|
|
|
Checking |
|
2,499,693 |
|
|
2,502,827 |
|
|
2,494,073 |
|
|
2,568,195 |
|
|
2,377,760 |
Money market |
|
1,226,470 |
|
|
1,263,813 |
|
|
1,184,101 |
|
|
1,125,333 |
|
|
1,027,547 |
Savings |
|
624,005 |
|
|
636,832 |
|
|
661,932 |
|
|
704,245 |
|
|
740,364 |
Time |
|
840,734 |
|
|
766,884 |
|
|
649,552 |
|
|
620,960 |
|
|
620,363 |
Brokered time |
|
72,737 |
|
|
39,087 |
|
|
12,836 |
|
|
14,038 |
|
|
15,018 |
Total deposits |
$ |
6,426,548 |
|
$ |
6,425,201 |
|
$ |
6,364,652 |
|
$ |
6,395,252 |
|
$ |
6,184,438 |
|
The Company estimates that uninsured deposits(1) totaled $1.21
billion, or 19% of total deposits, at June 30, 2023 compared to
$1.32 billion, or 21%, at March 31, 2023.
(1) |
Uninsured deposits include the Call Report estimate of uninsured
deposits less affiliate deposits, estimated insured portion of
servicing deposits, additional structured FDIC coverage and
collateralized deposits. |
|
|
Results of Operations Highlights
Net Interest Income and Margin
During the second quarter of 2023, net interest income, on a
tax-equivalent basis, totaled $59.0 million, a decrease of
$1.7 million, or 2.8%, compared to $60.7 million for the first
quarter of 2023. The tax-equivalent net interest margin for the
second quarter of 2023 was 3.23%, compared with 3.39% in the first
quarter of 2023. Net interest income and related margin, on a
tax-equivalent basis, was $61.7 million and 3.65%,
respectively, in the second quarter of 2022. The decline in the net
interest income and margin was largely attributable to increased
market interest rates resulting in the cost of funding liabilities
increasing at a faster rate than the yields on earning assets.
Average interest-earning assets for the second quarter of 2023
were $7.33 billion, compared to $7.26 billion for the first quarter
of 2023. The yield increased 16 basis points to 5.51% compared to
the first quarter of 2023. Interest-earning assets averaged $6.77
billion for the second quarter of 2022.
Average loans were $6.36 billion for the second quarter of 2023,
compared to $6.32 billion for the first quarter of 2023 and $5.68
billion for the second quarter of 2022. The yield on loans was
5.80% and 5.65% for the second and first quarters of 2023,
respectively.
|
For the Three Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
(dollars in thousands) |
2023 |
|
2023 |
|
2022 |
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 |
$ |
67,377 |
|
$ |
852 |
|
5.07 |
% |
|
$ |
85,123 |
|
$ |
980 |
|
4.67 |
% |
|
$ |
226,517 |
|
$ |
468 |
|
0.83 |
% |
Investment securities |
|
861,409 |
|
|
7,286 |
|
3.39 |
% |
|
|
809,848 |
|
|
5,995 |
|
3.00 |
% |
|
|
818,927 |
|
|
4,931 |
|
2.41 |
% |
Loans |
|
6,356,012 |
|
|
91,890 |
|
5.80 |
% |
|
|
6,320,402 |
|
|
87,997 |
|
5.65 |
% |
|
|
5,677,791 |
|
|
63,594 |
|
4.49 |
% |
Loans held for sale |
|
4,067 |
|
|
59 |
|
5.79 |
% |
|
|
1,506 |
|
|
16 |
|
4.41 |
% |
|
|
9,865 |
|
|
77 |
|
3.15 |
% |
Nonmarketable equity
securities |
|
45,028 |
|
|
599 |
|
5.33 |
% |
|
|
47,819 |
|
|
795 |
|
6.75 |
% |
|
|
36,338 |
|
|
487 |
|
5.38 |
% |
Total interest-earning assets |
$ |
7,333,893 |
|
$ |
100,686 |
|
5.51 |
% |
|
$ |
7,264,698 |
|
$ |
95,783 |
|
5.35 |
% |
|
$ |
6,769,438 |
|
$ |
69,557 |
|
4.12 |
% |
Noninterest-earning
assets |
|
612,238 |
|
|
|
|
|
|
610,811 |
|
|
|
|
|
|
615,348 |
|
|
|
|
Total assets |
$ |
7,946,131 |
|
|
|
|
|
$ |
7,875,509 |
|
|
|
|
|
$ |
7,384,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
5,259,188 |
|
$ |
33,617 |
|
2.56 |
% |
|
$ |
5,053,941 |
|
$ |
26,405 |
|
2.12 |
% |
|
$ |
4,718,759 |
|
$ |
3,810 |
|
0.32 |
% |
Short-term borrowings |
|
22,018 |
|
|
14 |
|
0.26 |
% |
|
|
38,655 |
|
|
25 |
|
0.26 |
% |
|
|
59,301 |
|
|
22 |
|
0.15 |
% |
FHLB advances & other
borrowings |
|
471,989 |
|
|
5,396 |
|
4.59 |
% |
|
|
540,278 |
|
|
6,006 |
|
4.51 |
% |
|
|
307,611 |
|
|
1,435 |
|
1.87 |
% |
Subordinated debt |
|
97,278 |
|
|
1,335 |
|
5.51 |
% |
|
|
99,812 |
|
|
1,370 |
|
5.57 |
% |
|
|
139,232 |
|
|
2,011 |
|
5.78 |
% |
Trust preferred
debentures |
|
50,218 |
|
|
1,289 |
|
10.29 |
% |
|
|
50,047 |
|
|
1,229 |
|
9.96 |
% |
|
|
49,602 |
|
|
624 |
|
5.05 |
% |
Total interest-bearing liabilities |
$ |
5,900,691 |
|
$ |
41,651 |
|
2.83 |
% |
|
$ |
5,782,733 |
|
$ |
35,035 |
|
2.46 |
% |
|
$ |
5,274,505 |
|
$ |
7,902 |
|
0.60 |
% |
Noninterest-bearing deposits |
|
1,187,584 |
|
|
|
|
|
|
1,250,899 |
|
|
|
|
|
|
1,401,268 |
|
|
|
|
Other noninterest-bearing
liabilities |
|
81,065 |
|
|
|
|
|
|
74,691 |
|
|
|
|
|
|
66,009 |
|
|
|
|
Shareholders’ equity |
|
776,791 |
|
|
|
|
|
|
767,186 |
|
|
|
|
|
|
643,004 |
|
|
|
|
Total liabilities and shareholder’s equity |
$ |
7,946,131 |
|
|
|
|
|
$ |
7,875,509 |
|
|
|
|
|
$ |
7,384,786 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin |
|
|
$ |
59,035 |
|
3.23 |
% |
|
|
|
$ |
60,748 |
|
3.39 |
% |
|
|
|
$ |
61,655 |
|
3.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Deposits |
|
|
|
|
2.09 |
% |
|
|
|
|
|
1.70 |
% |
|
|
|
|
|
0.25 |
% |
(1) |
Interest income and average rates for tax-exempt loans and
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, 2023, March 31, 2023 and 2022, respectively. |
|
|
Investment securities averaged $861.4 million for the second
quarter of 2023, compared to $809.8 million for the first quarter
of 2023. The Company purchased additional investments and
repositioned out of lower-yielding securities in favor of
higher-yielding instruments resulting in increased average balances
of $51.6 million and a higher yield. These changes are expected to
improve overall margin, liquidity, and capital allocations. The
Company incurred net losses on sales of $0.9 million in the second
quarter of 2023. Investment securities averaged $818.9 million for
the second quarter of 2022.
Average interest-bearing deposits were $5.26 billion for the
second quarter of 2023, compared to $5.05 billion for the first
quarter of 2023, and $4.72 billion for the second quarter of 2022.
Cost of interest-bearing deposits was 2.56% in the second quarter
of 2023, which represents a 44 basis point increase from the first
quarter of 2023. A competitive market driven by rising interest
rates was a contributing factor to the increase in deposit
costs.
The Company redeemed $6.6 million of subordinated debt during
the second quarter of 2023. The debentures were redeemed at a
discount, resulting in a gain of $0.7 million.
During the six months ended June 30, 2023, net interest income,
on a tax-equivalent basis, increased to $119.8 million, with a
tax-equivalent net interest margin of 3.31%, compared to net
interest income, on a tax-equivalent basis, of $118.9 million, and
a tax-equivalent net interest margin of 3.58% for the six months
ended June 30, 2022.
|
For the Six Months Ended |
|
June 30, |
|
June 30, |
(dollars in thousands) |
2023 |
|
2022 |
Interest-earning
assets |
Average Balance |
|
Interest & Fees |
|
Yield/Rate |
|
Average Balance |
|
Interest & Fees |
|
Yield/Rate |
Cash and cash equivalents |
$ |
76,201 |
|
$ |
1,832 |
|
4.85 |
% |
|
$ |
304,938 |
|
$ |
639 |
|
0.42 |
% |
Investment securities |
|
835,771 |
|
|
13,281 |
|
3.18 |
% |
|
|
856,571 |
|
|
9,894 |
|
2.31 |
% |
Loans |
|
6,338,305 |
|
|
179,887 |
|
5.72 |
% |
|
|
5,477,037 |
|
|
120,873 |
|
4.45 |
% |
Loans held for sale |
|
2,794 |
|
|
75 |
|
5.42 |
% |
|
|
20,501 |
|
|
297 |
|
2.93 |
% |
Nonmarketable equity
securities |
|
46,416 |
|
|
1,394 |
|
6.05 |
% |
|
|
36,358 |
|
|
971 |
|
5.39 |
% |
Total interest-earning assets |
$ |
7,299,487 |
|
$ |
196,469 |
|
5.43 |
% |
|
$ |
6,695,405 |
|
$ |
132,674 |
|
4.00 |
% |
Noninterest-earning
assets |
|
611,528 |
|
|
|
|
|
|
623,224 |
|
|
|
|
Total assets |
$ |
7,911,015 |
|
|
|
|
|
$ |
7,318,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
5,157,148 |
|
$ |
60,022 |
|
2.35 |
% |
|
$ |
4,613,751 |
|
$ |
5,971 |
|
0.26 |
% |
Short-term borrowings |
|
30,291 |
|
|
39 |
|
0.26 |
% |
|
|
64,642 |
|
|
45 |
|
0.14 |
% |
FHLB advances & other
borrowings |
|
505,945 |
|
|
11,402 |
|
4.54 |
% |
|
|
309,436 |
|
|
2,647 |
|
1.72 |
% |
Subordinated debt |
|
98,538 |
|
|
2,705 |
|
5.54 |
% |
|
|
139,186 |
|
|
4,022 |
|
5.78 |
% |
Trust preferred
debentures |
|
50,133 |
|
|
2,518 |
|
10.13 |
% |
|
|
49,527 |
|
|
1,138 |
|
4.64 |
% |
Total interest-bearing liabilities |
$ |
5,842,055 |
|
$ |
76,686 |
|
2.65 |
% |
|
$ |
5,176,542 |
|
$ |
13,823 |
|
0.54 |
% |
Noninterest-bearing
deposits |
|
1,219,050 |
|
|
|
|
|
|
1,418,083 |
|
|
|
|
Other noninterest-bearing
liabilities |
|
77,895 |
|
|
|
|
|
|
73,878 |
|
|
|
|
Shareholders’ equity |
|
772,015 |
|
|
|
|
|
|
650,126 |
|
|
|
|
Total liabilities and shareholder’s equity |
$ |
7,911,015 |
|
|
|
|
|
$ |
7,318,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin |
|
|
$ |
119,783 |
|
3.31 |
% |
|
|
|
$ |
118,851 |
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Deposits |
|
|
|
|
1.90 |
% |
|
|
|
|
|
0.20 |
% |
(1) |
Interest income and average rates for tax-exempt loans and
securities are presented on a tax-equivalent basis, assuming a
federal income tax rate of 21%. Tax-equivalent adjustments totaled
$0.4 million and $0.7 million for the six months ended June 30,
2023 and 2022, respectively. |
|
|
The yield on earning assets increased 143 basis points to 5.43%
for the six months ended June 30, 2023 compared to the same period
one year prior. However, the cost of interest bearing liabilities
increased at a faster rate during this period, increasing 211 basis
points to 2.65% for the six months ended June 30, 2023.
Noninterest Income
Noninterest income was $18.8 million for the second quarter of
2023, compared to $15.8 million for the first quarter of 2023.
Noninterest income for the second quarter of 2023 included an $0.8
million gain on the sale of OREO and a $0.7 million gain on the
repurchase of subordinated debt, partially offset by $0.9 million
of losses on the sale of investment securities. The first quarter
of 2023 was negatively impacted by $0.6 million of losses on the
sale of investment securities. Excluding these transactions,
noninterest income for the second quarter of 2023 and the first
quarter of 2023 was $18.2 million and $16.4 million, respectively.
Noninterest income for the second quarter of 2022 was $14.6 million
and included $0.9 million impairment charge on commercial servicing
rights and a $0.1 million loss on the sale of investment
securities. Excluding these transactions, noninterest income for
the second quarter of 2022 was $15.6 million.
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(in thousands) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Noninterest
income |
|
|
|
|
|
|
|
|
|
Wealth management revenue |
$ |
6,269 |
|
|
$ |
6,411 |
|
|
$ |
6,143 |
|
|
$ |
12,680 |
|
|
$ |
13,282 |
|
Residential mortgage banking revenue |
|
540 |
|
|
|
405 |
|
|
|
384 |
|
|
|
945 |
|
|
|
983 |
|
Service charges on deposit accounts |
|
2,677 |
|
|
|
2,568 |
|
|
|
2,304 |
|
|
|
5,245 |
|
|
|
4,372 |
|
Interchange revenue |
|
3,696 |
|
|
|
3,412 |
|
|
|
3,590 |
|
|
|
7,108 |
|
|
|
6,870 |
|
Loss on sales of investment securities, net |
|
(869 |
) |
|
|
(648 |
) |
|
|
(101 |
) |
|
|
(1,517 |
) |
|
|
(101 |
) |
Gain on repurchase of subordinated debt, net |
|
676 |
|
|
|
— |
|
|
|
— |
|
|
|
676 |
|
|
|
— |
|
Gain (loss) on sales of other real estate owned, net |
|
819 |
|
|
|
— |
|
|
|
(162 |
) |
|
|
819 |
|
|
|
(121 |
) |
Impairment on commercial mortgage servicing rights |
|
— |
|
|
|
— |
|
|
|
(869 |
) |
|
|
— |
|
|
|
(1,263 |
) |
Company-owned life insurance |
|
891 |
|
|
|
876 |
|
|
|
840 |
|
|
|
1,767 |
|
|
|
1,859 |
|
Other income |
|
4,054 |
|
|
|
2,755 |
|
|
|
2,484 |
|
|
|
6,809 |
|
|
|
4,345 |
|
Total noninterest income |
$ |
18,753 |
|
|
$ |
15,779 |
|
|
$ |
14,613 |
|
|
$ |
34,532 |
|
|
$ |
30,226 |
|
|
Noninterest Expense
Noninterest expense was $42.9 million in the second quarter of
2023, compared to $44.5 million in the first quarter of 2023, and
$41.3 million in the second quarter of 2022. The efficiency ratio
was 55.01% for the quarter ended June 30, 2023, compared to 57.64%
for the quarter ended March 31, 2023, and 53.10% for the quarter
ended June 30, 2022.
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(in thousands) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Noninterest
expense |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
$ |
22,857 |
|
$ |
24,243 |
|
$ |
22,645 |
|
$ |
47,100 |
|
$ |
44,515 |
Occupancy and equipment |
|
3,879 |
|
|
4,443 |
|
|
3,489 |
|
|
8,322 |
|
|
7,244 |
Data processing |
|
6,544 |
|
|
6,311 |
|
|
6,082 |
|
|
12,855 |
|
|
11,955 |
Professional |
|
1,663 |
|
|
1,760 |
|
|
1,516 |
|
|
3,423 |
|
|
3,488 |
Amortization of intangible assets |
|
1,208 |
|
|
1,291 |
|
|
1,318 |
|
|
2,499 |
|
|
2,716 |
FDIC insurance |
|
1,196 |
|
|
1,329 |
|
|
826 |
|
|
2,525 |
|
|
1,656 |
Other expense |
|
5,547 |
|
|
5,105 |
|
|
5,463 |
|
|
10,652 |
|
|
10,649 |
Total noninterest expense |
$ |
42,894 |
|
$ |
44,482 |
|
$ |
41,339 |
|
$ |
87,376 |
|
$ |
82,223 |
|
Noteworthy components of noninterest expense are as follows:
- Salaries and employee benefits expenses were $22.9 million in
the second quarter of 2023, compared to $24.2 million in the first
quarter of 2023, and $22.6 million in the second quarter of 2022.
Employees numbered 915 at June 30, 2023, compared to 931 at March
31, 2023, and 932 at June 30, 2022. Annual salary increases,
effective in the second quarter of 2023, were offset by decreased
commissions and incentive compensation expense.
- Occupancy and equipment expense decreased $0.6 million in the
second quarter of 2023 compared to the first quarter of 2023,
primarily due to elevated seasonal related expenses incurred in the
first quarter, including snow removal and utilities expenses.
- Increases in FDIC insurance expense on a year to date basis is
primarily related to the FDIC’s 2 basis point increase to the
initial base deposit insurance assessment rate schedules effective
January 1, 2023.
Income Tax Expense
Income tax expense was $7.2 million for the second quarter of
2023, as compared to $6.9 million for the first quarter of 2023 and
$7.3 million for the second quarter of 2022. The resulting
effective tax rates were 25.1%, 24.0% and 25.0% respectively.
Capital
At June 30, 2023, 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, 2023 |
|
Midland States Bank |
|
Midland States Bancorp, Inc. |
|
Minimum Regulatory Requirements
(2) |
Total capital to risk-weighted
assets |
11.89% |
|
12.65% |
|
10.50% |
Tier 1 capital to
risk-weighted assets |
11.01% |
|
10.47% |
|
8.50% |
Tier 1 leverage ratio |
10.07% |
|
9.57% |
|
4.00% |
Common equity Tier 1
capital |
11.01% |
|
8.03% |
|
7.00% |
Tangible common equity to
tangible assets (1) |
N/A |
|
6.19% |
|
N/A |
(1) |
A non-GAAP financial measure. Refer to page 13 for a reconciliation
to the comparable GAAP financial measure. |
(2) |
Includes the capital conservation buffer of 2.5%. |
|
|
The impact of rising interest rates on the Company’s investment
portfolio and cash flow hedges has resulted in an $84.7 million
accumulated other comprehensive loss at June 30, 2023, which
impacts tangible book value by $3.87.
Stock Repurchase Program
As previously disclosed, on December 6, 2022, the Company’s
board of directors authorized a new share repurchase program,
pursuant to which the Company is authorized to repurchase up to
$25.0 million of common stock through December 31, 2023. During the
second quarter of 2023, the Company repurchased 308,543 shares of
its common stock at a weighted average price of $19.78 under its
stock repurchase program. As of June 30, 2023, the Company had
$16.1 million remaining under the current stock repurchase
authorization.
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, 2023, the
Company had total assets of approximately $8.03 billion, and its
Wealth Management Group had assets under administration of
approximately $3.59 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 “Adjusted Earnings,”
“Adjusted Earnings Available to Common Shareholders,” “Adjusted
Diluted Earnings Per Common Share,” “Adjusted Return on Average
Assets,” “Adjusted Return on Average Shareholders’ Equity,”
“Adjusted Return on Average Tangible Common Equity,” “Adjusted
Pre-Tax, Pre-Provision Earnings,” “Adjusted Pre-Tax, Pre-Provision
Return on Average Assets,” “Efficiency Ratio,” “Tangible Common
Equity to Tangible Assets,” “Tangible Book Value Per Share,”
“Tangible Book Value Per Share excluding Accumulated Other
Comprehensive Income,” and “Return on Average Tangible Common
Equity.” 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, this
presentation 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. 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 inflation, continuing effects of the
recent failures of Silicon Valley Bank and Signature Bank,
including anticipated effects on FDIC premiums, increased deposit
volatility and potential regulatory developments; changes in the
financial markets; changes in business plans as circumstances
warrant; risks relating to acquisitions; developments and
uncertainty related to the future use and availability of some
reference rates, such as the London Inter-Bank Offered Rate, as
well as other alternative reference rates, and the adoption of a
substitute; 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) 342-7321Douglas
J. Tucker, SVP and Corporate Counsel, at dtucker@midlandsb.com or
(217) 342-7321
MIDLAND STATES BANCORP, INC. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
As of and for the Three Months Ended |
|
As of andfor the Six Months
Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(dollars in thousands, except
per share data) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Earnings
Summary |
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
58,840 |
|
|
$ |
60,504 |
|
|
$ |
61,334 |
|
|
$ |
119,344 |
|
|
$ |
118,161 |
|
Provision for credit
losses |
|
5,879 |
|
|
|
3,135 |
|
|
|
5,441 |
|
|
|
9,014 |
|
|
|
9,608 |
|
Noninterest income |
|
18,753 |
|
|
|
15,779 |
|
|
|
14,613 |
|
|
|
34,532 |
|
|
|
30,226 |
|
Noninterest expense |
|
42,894 |
|
|
|
44,482 |
|
|
|
41,339 |
|
|
|
87,376 |
|
|
|
82,223 |
|
Income before income
taxes |
|
28,820 |
|
|
|
28,666 |
|
|
|
29,167 |
|
|
|
57,486 |
|
|
|
56,556 |
|
Income taxes |
|
7,245 |
|
|
|
6,894 |
|
|
|
7,284 |
|
|
|
14,139 |
|
|
|
13,924 |
|
Net income |
|
21,575 |
|
|
|
21,772 |
|
|
|
21,883 |
|
|
|
43,347 |
|
|
|
42,632 |
|
Preferred dividends |
|
2,228 |
|
|
|
2,228 |
|
|
|
— |
|
|
|
4,456 |
|
|
|
— |
|
Net income available to common
shareholders |
$ |
19,347 |
|
|
$ |
19,544 |
|
|
$ |
21,883 |
|
|
$ |
38,891 |
|
|
$ |
42,632 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per common
share |
$ |
0.86 |
|
|
$ |
0.86 |
|
|
$ |
0.97 |
|
|
$ |
1.72 |
|
|
$ |
1.89 |
|
Weighted average common shares
outstanding - diluted |
|
22,205,079 |
|
|
|
22,501,970 |
|
|
|
22,360,819 |
|
|
|
22,348,981 |
|
|
|
22,355,936 |
|
Return on average assets |
|
1.09 |
% |
|
|
1.12 |
% |
|
|
1.19 |
% |
|
|
1.10 |
% |
|
|
1.17 |
% |
Return on average
shareholders' equity |
|
11.14 |
% |
|
|
11.51 |
% |
|
|
13.65 |
% |
|
|
11.32 |
% |
|
|
13.22 |
% |
Return on average tangible
common equity(1) |
|
15.99 |
% |
|
|
16.70 |
% |
|
|
19.14 |
% |
|
|
16.34 |
% |
|
|
18.48 |
% |
Net interest margin |
|
3.23 |
% |
|
|
3.39 |
% |
|
|
3.65 |
% |
|
|
3.31 |
% |
|
|
3.58 |
% |
Efficiency ratio(1) |
|
55.01 |
% |
|
|
57.64 |
% |
|
|
53.10 |
% |
|
|
56.32 |
% |
|
|
54.38 |
% |
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings
Performance Summary(1) |
|
|
|
|
|
|
|
|
|
Adjusted earnings available to
common shareholders |
$ |
19,487 |
|
|
$ |
20,017 |
|
|
$ |
22,191 |
|
|
$ |
39,505 |
|
|
$ |
43,006 |
|
Adjusted diluted earnings per
common share |
$ |
0.87 |
|
|
$ |
0.88 |
|
|
$ |
0.98 |
|
|
$ |
1.75 |
|
|
$ |
1.90 |
|
Adjusted return on average
assets |
|
1.10 |
% |
|
|
1.15 |
% |
|
|
1.21 |
% |
|
|
1.12 |
% |
|
|
1.18 |
% |
Adjusted return on average
shareholders' equity |
|
11.21 |
% |
|
|
11.76 |
% |
|
|
13.84 |
% |
|
|
11.48 |
% |
|
|
13.34 |
% |
Adjusted return on average
tangible common equity |
|
16.10 |
% |
|
|
17.11 |
% |
|
|
19.41 |
% |
|
|
16.60 |
% |
|
|
18.65 |
% |
Adjusted pre-tax,
pre-provision earnings |
$ |
34,892 |
|
|
$ |
32,449 |
|
|
$ |
35,902 |
|
|
$ |
67,341 |
|
|
$ |
67,943 |
|
Adjusted pre-tax,
pre-provision return on average assets |
|
1.76 |
% |
|
|
1.67 |
% |
|
|
1.95 |
% |
|
|
1.72 |
% |
|
|
1.87 |
% |
|
|
|
|
|
|
|
|
|
|
Market
Data |
|
|
|
|
|
|
|
|
|
Book value per share at period
end |
$ |
30.49 |
|
|
$ |
30.08 |
|
|
$ |
28.84 |
|
|
|
|
|
Tangible book value per share
at period end(1) |
$ |
22.24 |
|
|
$ |
21.87 |
|
|
$ |
20.43 |
|
|
|
|
|
Tangible book value per share
excluding accumulated other comprehensive income at period
end(1) |
$ |
26.11 |
|
|
$ |
25.39 |
|
|
$ |
22.84 |
|
|
|
|
|
Market price at period
end |
$ |
19.91 |
|
|
$ |
21.42 |
|
|
$ |
24.04 |
|
|
|
|
|
Common shares outstanding at
period end |
|
21,854,800 |
|
|
|
22,111,454 |
|
|
|
22,060,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
|
|
|
Total capital to risk-weighted
assets |
|
12.65 |
% |
|
|
12.46 |
% |
|
|
11.44 |
% |
|
|
|
|
Tier 1 capital to
risk-weighted assets |
|
10.47 |
% |
|
|
10.25 |
% |
|
|
8.63 |
% |
|
|
|
|
Tier 1 common capital to
risk-weighted assets |
|
8.03 |
% |
|
|
7.84 |
% |
|
|
7.66 |
% |
|
|
|
|
Tier 1 leverage ratio |
|
9.57 |
% |
|
|
9.54 |
% |
|
|
7.98 |
% |
|
|
|
|
Tangible common equity to
tangible assets(1) |
|
6.19 |
% |
|
|
6.24 |
% |
|
|
6.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
Management |
|
|
|
|
|
|
|
|
|
Trust assets under
administration |
$ |
3,594,727 |
|
|
$ |
3,502,635 |
|
|
$ |
3,503,227 |
|
|
|
|
|
(1) |
Non-GAAP financial measures. Refer to pages 11 - 13 for a
reconciliation to the comparable GAAP financial measures. |
|
|
MIDLAND STATES BANCORP, INC. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
(continued) |
|
|
|
|
|
|
|
|
|
|
|
As of |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
(in thousands) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
160,695 |
|
|
$ |
138,310 |
|
|
$ |
160,631 |
|
|
$ |
313,188 |
|
|
$ |
270,117 |
|
Investment securities |
|
887,003 |
|
|
|
821,005 |
|
|
|
776,860 |
|
|
|
690,504 |
|
|
|
769,278 |
|
Loans |
|
6,367,344 |
|
|
|
6,354,271 |
|
|
|
6,306,467 |
|
|
|
6,198,451 |
|
|
|
5,795,544 |
|
Allowance for credit losses on
loans |
|
(64,950 |
) |
|
|
(62,067 |
) |
|
|
(61,051 |
) |
|
|
(58,639 |
) |
|
|
(54,898 |
) |
Total loans, net |
|
6,302,394 |
|
|
|
6,292,204 |
|
|
|
6,245,416 |
|
|
|
6,139,812 |
|
|
|
5,740,646 |
|
Loans held for sale |
|
5,632 |
|
|
|
2,747 |
|
|
|
1,286 |
|
|
|
4,338 |
|
|
|
5,298 |
|
Premises and equipment,
net |
|
81,006 |
|
|
|
80,582 |
|
|
|
78,293 |
|
|
|
77,519 |
|
|
|
77,668 |
|
Other real estate owned |
|
202 |
|
|
|
6,729 |
|
|
|
6,729 |
|
|
|
11,141 |
|
|
|
11,131 |
|
Loan servicing rights, at
lower of cost or fair value |
|
21,611 |
|
|
|
1,117 |
|
|
|
1,205 |
|
|
|
1,297 |
|
|
|
25,879 |
|
Commercial FHA mortgage loan
servicing rights held for sale |
|
— |
|
|
|
20,745 |
|
|
|
20,745 |
|
|
|
23,995 |
|
|
|
— |
|
Goodwill |
|
161,904 |
|
|
|
161,904 |
|
|
|
161,904 |
|
|
|
161,904 |
|
|
|
161,904 |
|
Other intangible assets,
net |
|
18,367 |
|
|
|
19,575 |
|
|
|
20,866 |
|
|
|
22,198 |
|
|
|
23,559 |
|
Company-owned life
insurance |
|
152,210 |
|
|
|
151,319 |
|
|
|
150,443 |
|
|
|
149,648 |
|
|
|
148,900 |
|
Other assets |
|
243,697 |
|
|
|
233,937 |
|
|
|
231,123 |
|
|
|
226,333 |
|
|
|
201,432 |
|
Total assets |
$ |
8,034,721 |
|
|
$ |
7,930,174 |
|
|
$ |
7,855,501 |
|
|
$ |
7,821,877 |
|
|
$ |
7,435,812 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
$ |
1,162,909 |
|
|
$ |
1,215,758 |
|
|
$ |
1,362,158 |
|
|
$ |
1,362,481 |
|
|
$ |
1,403,386 |
|
Interest-bearing deposits |
|
5,263,639 |
|
|
|
5,209,443 |
|
|
|
5,002,494 |
|
|
|
5,032,771 |
|
|
|
4,781,052 |
|
Total deposits |
|
6,426,548 |
|
|
|
6,425,201 |
|
|
|
6,364,652 |
|
|
|
6,395,252 |
|
|
|
6,184,438 |
|
Short-term borrowings |
|
21,783 |
|
|
|
31,173 |
|
|
|
42,311 |
|
|
|
58,518 |
|
|
|
67,689 |
|
FHLB advances and other
borrowings |
|
575,000 |
|
|
|
482,000 |
|
|
|
460,000 |
|
|
|
360,000 |
|
|
|
285,000 |
|
Subordinated debt |
|
93,404 |
|
|
|
99,849 |
|
|
|
99,772 |
|
|
|
139,370 |
|
|
|
139,277 |
|
Trust preferred
debentures |
|
50,296 |
|
|
|
50,135 |
|
|
|
49,975 |
|
|
|
49,824 |
|
|
|
49,674 |
|
Other liabilities |
|
90,869 |
|
|
|
66,173 |
|
|
|
80,217 |
|
|
|
79,634 |
|
|
|
73,546 |
|
Total liabilities |
|
7,257,900 |
|
|
|
7,154,531 |
|
|
|
7,096,927 |
|
|
|
7,082,598 |
|
|
|
6,799,624 |
|
Total shareholders’ equity |
|
776,821 |
|
|
|
775,643 |
|
|
|
758,574 |
|
|
|
739,279 |
|
|
|
636,188 |
|
Total liabilities and shareholders’ equity |
$ |
8,034,721 |
|
|
$ |
7,930,174 |
|
|
$ |
7,855,501 |
|
|
$ |
7,821,877 |
|
|
$ |
7,435,812 |
|
MIDLAND STATES BANCORP, INC. |
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
(continued) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(in thousands, except per
share data) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net interest income: |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
100,491 |
|
|
$ |
95,539 |
|
|
$ |
69,236 |
|
|
$ |
196,030 |
|
|
$ |
131,984 |
|
Interest expense |
|
41,651 |
|
|
|
35,035 |
|
|
|
7,902 |
|
|
|
76,686 |
|
|
|
13,823 |
|
Net interest income |
|
58,840 |
|
|
|
60,504 |
|
|
|
61,334 |
|
|
|
119,344 |
|
|
|
118,161 |
|
Provision for credit
losses: |
|
|
|
|
|
|
|
|
|
Provision for credit losses on loans |
|
5,879 |
|
|
|
3,135 |
|
|
|
4,741 |
|
|
|
9,014 |
|
|
|
8,873 |
|
Provision for credit losses on unfunded commitments |
|
— |
|
|
|
— |
|
|
|
700 |
|
|
|
— |
|
|
|
956 |
|
Provision for other credit losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(221 |
) |
Total provision for credit losses |
|
5,879 |
|
|
|
3,135 |
|
|
|
5,441 |
|
|
|
9,014 |
|
|
|
9,608 |
|
Net interest income after provision for credit losses |
|
52,961 |
|
|
|
57,369 |
|
|
|
55,893 |
|
|
|
110,330 |
|
|
|
108,553 |
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
Wealth management revenue |
|
6,269 |
|
|
|
6,411 |
|
|
|
6,143 |
|
|
|
12,680 |
|
|
|
13,282 |
|
Residential mortgage banking revenue |
|
540 |
|
|
|
405 |
|
|
|
384 |
|
|
|
945 |
|
|
|
983 |
|
Service charges on deposit accounts |
|
2,677 |
|
|
|
2,568 |
|
|
|
2,304 |
|
|
|
5,245 |
|
|
|
4,372 |
|
Interchange revenue |
|
3,696 |
|
|
|
3,412 |
|
|
|
3,590 |
|
|
|
7,108 |
|
|
|
6,870 |
|
Loss on sales of investment securities, net |
|
(869 |
) |
|
|
(648 |
) |
|
|
(101 |
) |
|
|
(1,517 |
) |
|
|
(101 |
) |
Gain on repurchase of subordinated debt, net |
|
676 |
|
|
|
— |
|
|
|
— |
|
|
|
676 |
|
|
|
— |
|
Gain (loss) on sales of other real estate owned, net |
|
819 |
|
|
|
— |
|
|
|
(162 |
) |
|
|
819 |
|
|
|
(121 |
) |
Impairment on commercial mortgage servicing rights |
|
— |
|
|
|
— |
|
|
|
(869 |
) |
|
|
— |
|
|
|
(1,263 |
) |
Company-owned life insurance |
|
891 |
|
|
|
876 |
|
|
|
840 |
|
|
|
1,767 |
|
|
|
1,859 |
|
Other income |
|
4,054 |
|
|
|
2,755 |
|
|
|
2,484 |
|
|
|
6,809 |
|
|
|
4,345 |
|
Total noninterest income |
|
18,753 |
|
|
|
15,779 |
|
|
|
14,613 |
|
|
|
34,532 |
|
|
|
30,226 |
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
22,857 |
|
|
|
24,243 |
|
|
|
22,645 |
|
|
|
47,100 |
|
|
|
44,515 |
|
Occupancy and equipment |
|
3,879 |
|
|
|
4,443 |
|
|
|
3,489 |
|
|
|
8,322 |
|
|
|
7,244 |
|
Data processing |
|
6,544 |
|
|
|
6,311 |
|
|
|
6,082 |
|
|
|
12,855 |
|
|
|
11,955 |
|
Professional |
|
1,663 |
|
|
|
1,760 |
|
|
|
1,516 |
|
|
|
3,423 |
|
|
|
3,488 |
|
Amortization of intangible assets |
|
1,208 |
|
|
|
1,291 |
|
|
|
1,318 |
|
|
|
2,499 |
|
|
|
2,716 |
|
FDIC insurance |
|
1,196 |
|
|
|
1,329 |
|
|
|
826 |
|
|
|
2,525 |
|
|
|
1,656 |
|
Other expense |
|
5,547 |
|
|
|
5,105 |
|
|
|
5,463 |
|
|
|
10,652 |
|
|
|
10,649 |
|
Total noninterest expense |
|
42,894 |
|
|
|
44,482 |
|
|
|
41,339 |
|
|
|
87,376 |
|
|
|
82,223 |
|
Income before income
taxes |
|
28,820 |
|
|
|
28,666 |
|
|
|
29,167 |
|
|
|
57,486 |
|
|
|
56,556 |
|
Income taxes |
|
7,245 |
|
|
|
6,894 |
|
|
|
7,284 |
|
|
|
14,139 |
|
|
|
13,924 |
|
Net income |
|
21,575 |
|
|
|
21,772 |
|
|
|
21,883 |
|
|
|
43,347 |
|
|
|
42,632 |
|
Preferred stock dividends |
|
2,228 |
|
|
|
2,228 |
|
|
|
— |
|
|
|
4,456 |
|
|
|
— |
|
Net income available to common shareholders |
$ |
19,347 |
|
|
$ |
19,544 |
|
|
$ |
21,883 |
|
|
$ |
38,891 |
|
|
$ |
42,632 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share |
$ |
0.86 |
|
|
$ |
0.86 |
|
|
$ |
0.97 |
|
|
$ |
1.72 |
|
|
$ |
1.89 |
|
Diluted earnings per common
share |
$ |
0.86 |
|
|
$ |
0.86 |
|
|
$ |
0.97 |
|
|
$ |
1.72 |
|
|
$ |
1.89 |
|
MIDLAND STATES BANCORP, INC. |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(unaudited) |
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(dollars in thousands, except
per share data) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Income before income taxes - GAAP |
$ |
28,820 |
|
|
$ |
28,666 |
|
|
$ |
29,167 |
|
|
$ |
57,486 |
|
|
$ |
56,556 |
|
Adjustments to noninterest
income: |
|
|
|
|
|
|
|
|
|
Loss on sales of investment securities, net |
|
869 |
|
|
|
648 |
|
|
|
101 |
|
|
|
1,517 |
|
|
|
101 |
|
(Gain) on repurchase of subordinated debt |
|
(676 |
) |
|
|
— |
|
|
|
— |
|
|
|
(676 |
) |
|
|
— |
|
Total adjustments to noninterest income |
|
193 |
|
|
|
648 |
|
|
|
101 |
|
|
|
841 |
|
|
|
101 |
|
Adjustments to noninterest
expense: |
|
|
|
|
|
|
|
|
|
Integration and acquisition expenses |
|
— |
|
|
|
— |
|
|
|
(324 |
) |
|
|
— |
|
|
|
(415 |
) |
Total adjustments to noninterest expense |
|
— |
|
|
|
— |
|
|
|
(324 |
) |
|
|
— |
|
|
|
(415 |
) |
Adjusted earnings pre tax -
non-GAAP |
|
29,013 |
|
|
|
29,314 |
|
|
|
29,592 |
|
|
|
58,327 |
|
|
|
57,072 |
|
Adjusted earnings tax |
|
7,297 |
|
|
|
7,069 |
|
|
|
7,401 |
|
|
|
14,366 |
|
|
|
14,066 |
|
Adjusted earnings -
non-GAAP |
|
21,716 |
|
|
|
22,245 |
|
|
|
22,191 |
|
|
|
43,961 |
|
|
|
43,006 |
|
Preferred stock dividends |
|
2,228 |
|
|
|
2,228 |
|
|
|
— |
|
|
|
4,456 |
|
|
|
— |
|
Adjusted earnings
available to common shareholders |
$ |
19,487 |
|
|
$ |
20,017 |
|
|
$ |
22,191 |
|
|
$ |
39,505 |
|
|
$ |
43,006 |
|
Adjusted diluted earnings per
common share |
$ |
0.87 |
|
|
$ |
0.88 |
|
|
$ |
0.98 |
|
|
$ |
1.75 |
|
|
$ |
1.90 |
|
Adjusted return on average
assets |
|
1.10 |
% |
|
|
1.15 |
% |
|
|
1.21 |
% |
|
|
1.12 |
% |
|
|
1.18 |
% |
Adjusted return on average
shareholders' equity |
|
11.21 |
% |
|
|
11.76 |
% |
|
|
13.84 |
% |
|
|
11.48 |
% |
|
|
13.34 |
% |
Adjusted return on average
tangible common equity |
|
16.10 |
% |
|
|
17.11 |
% |
|
|
19.41 |
% |
|
|
16.60 |
% |
|
|
18.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Pre-Tax, Pre-Provision Earnings
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(dollars in thousands) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Adjusted earnings pre tax -
non-GAAP |
$ |
29,013 |
|
|
$ |
29,314 |
|
|
$ |
29,592 |
|
|
$ |
58,327 |
|
|
$ |
57,072 |
|
Provision for credit losses |
|
5,879 |
|
|
|
3,135 |
|
|
|
5,441 |
|
|
|
9,014 |
|
|
|
9,608 |
|
Impairment on commercial mortgage servicing rights |
|
— |
|
|
|
— |
|
|
|
869 |
|
|
|
— |
|
|
|
1,263 |
|
Adjusted pre-tax,
pre-provision earnings - non-GAAP |
$ |
34,892 |
|
|
$ |
32,449 |
|
|
$ |
35,902 |
|
|
$ |
67,341 |
|
|
$ |
67,943 |
|
Adjusted pre-tax,
pre-provision return on average assets |
|
1.76 |
% |
|
|
1.67 |
% |
|
|
1.95 |
% |
|
|
1.72 |
% |
|
|
1.87 |
% |
MIDLAND STATES BANCORP, INC. |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
(continued) |
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(dollars in thousands) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Noninterest expense - GAAP |
$ |
42,894 |
|
|
$ |
44,482 |
|
|
$ |
41,339 |
|
|
$ |
87,376 |
|
|
$ |
82,223 |
|
Integration and acquisition
expenses |
|
— |
|
|
|
— |
|
|
|
(324 |
) |
|
|
— |
|
|
|
(415 |
) |
Adjusted noninterest expense |
$ |
42,894 |
|
|
$ |
44,482 |
|
|
$ |
41,015 |
|
|
$ |
87,376 |
|
|
$ |
81,808 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
GAAP |
$ |
58,840 |
|
|
$ |
60,504 |
|
|
$ |
61,334 |
|
|
$ |
119,344 |
|
|
$ |
118,161 |
|
Effect of tax-exempt
income |
|
195 |
|
|
|
244 |
|
|
|
321 |
|
|
|
439 |
|
|
|
690 |
|
Adjusted net interest income |
|
59,035 |
|
|
|
60,748 |
|
|
|
61,655 |
|
|
|
119,783 |
|
|
|
118,851 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest income - GAAP |
|
18,753 |
|
|
|
15,779 |
|
|
|
14,613 |
|
|
|
34,532 |
|
|
|
30,226 |
|
Impairment on commercial
mortgage servicing rights |
|
— |
|
|
|
— |
|
|
|
869 |
|
|
|
— |
|
|
|
1,263 |
|
Loss on sales of investment
securities, net |
|
869 |
|
|
|
648 |
|
|
|
101 |
|
|
|
1,517 |
|
|
|
101 |
|
(Gain) on repurchase of
subordinated debt |
|
(676 |
) |
|
|
— |
|
|
|
— |
|
|
|
(676 |
) |
|
|
— |
|
Adjusted noninterest income |
|
18,946 |
|
|
|
16,427 |
|
|
|
15,583 |
|
|
|
35,373 |
|
|
|
31,590 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted total revenue |
$ |
77,980 |
|
|
$ |
77,175 |
|
|
$ |
77,238 |
|
|
$ |
155,156 |
|
|
$ |
150,441 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio |
|
55.01 |
% |
|
|
57.64 |
% |
|
|
53.10 |
% |
|
|
56.32 |
% |
|
|
54.38 |
% |
|
|
|
|
|
|
|
|
|
|
Return on Average Tangible Common Equity
(ROATCE) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
(dollars in thousands) |
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income available to common
shareholders |
$ |
19,347 |
|
|
$ |
19,544 |
|
|
$ |
21,883 |
|
|
$ |
38,891 |
|
|
$ |
42,632 |
|
|
|
|
|
|
|
|
|
|
|
Average total shareholders'
equity—GAAP |
$ |
776,791 |
|
|
$ |
767,186 |
|
|
$ |
643,004 |
|
|
$ |
772,015 |
|
|
$ |
650,126 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
(110,548 |
) |
|
|
(110,548 |
) |
|
|
— |
|
|
|
(110,548 |
) |
|
|
— |
|
Goodwill |
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
Other intangible assets,
net |
|
(18,937 |
) |
|
|
(20,184 |
) |
|
|
(22,570 |
) |
|
|
(19,557 |
) |
|
|
(23,101 |
) |
Average tangible common
equity |
$ |
485,402 |
|
|
$ |
474,550 |
|
|
$ |
458,530 |
|
|
$ |
480,006 |
|
|
$ |
465,121 |
|
ROATCE |
|
15.99 |
% |
|
|
16.70 |
% |
|
|
19.14 |
% |
|
|
16.34 |
% |
|
|
18.48 |
% |
MIDLAND STATES BANCORP, INC. |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)
(continued) |
|
|
|
|
|
|
|
|
|
|
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) |
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
Shareholders' Equity to Tangible Common
Equity |
|
|
|
|
|
|
|
|
Total shareholders' equity—GAAP |
$ |
776,821 |
|
|
$ |
775,643 |
|
|
$ |
758,574 |
|
|
$ |
739,279 |
|
|
$ |
636,188 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
(110,548 |
) |
|
|
(110,548 |
) |
|
|
(110,548 |
) |
|
|
(110,548 |
) |
|
|
— |
|
Goodwill |
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
Other intangible assets, net |
|
(18,367 |
) |
|
|
(19,575 |
) |
|
|
(20,866 |
) |
|
|
(22,198 |
) |
|
|
(23,559 |
) |
Tangible common equity |
$ |
486,002 |
|
|
$ |
483,616 |
|
|
$ |
465,256 |
|
|
$ |
444,629 |
|
|
$ |
450,725 |
|
|
|
|
|
|
|
|
|
|
|
Less: Accumulated other comprehensive income (AOCI) |
|
(84,719 |
) |
|
|
(77,797 |
) |
|
|
(83,797 |
) |
|
|
(78,383 |
) |
|
|
(53,097 |
) |
Tangible common equity excluding AOCI |
|
570,721 |
|
|
|
561,413 |
|
|
|
549,053 |
|
|
|
523,012 |
|
|
|
503,822 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets to
Tangible Assets: |
|
|
|
|
|
|
|
|
|
Total assets—GAAP |
$ |
8,034,721 |
|
|
$ |
7,930,174 |
|
|
$ |
7,855,501 |
|
|
$ |
7,821,877 |
|
|
$ |
7,435,812 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Goodwill |
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
|
|
(161,904 |
) |
Other intangible assets,
net |
|
(18,367 |
) |
|
|
(19,575 |
) |
|
|
(20,866 |
) |
|
|
(22,198 |
) |
|
|
(23,559 |
) |
Tangible assets |
$ |
7,854,450 |
|
|
$ |
7,748,695 |
|
|
$ |
7,672,731 |
|
|
$ |
7,637,775 |
|
|
$ |
7,250,349 |
|
|
|
|
|
|
|
|
|
|
|
Common Shares Outstanding |
|
21,854,800 |
|
|
|
22,111,454 |
|
|
|
22,214,913 |
|
|
|
22,074,740 |
|
|
|
22,060,255 |
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
to Tangible Assets |
|
6.19 |
% |
|
|
6.24 |
% |
|
|
6.06 |
% |
|
|
5.82 |
% |
|
|
6.22 |
% |
Tangible Book Value
Per Share |
$ |
22.24 |
|
|
$ |
21.87 |
|
|
$ |
20.94 |
|
|
$ |
20.14 |
|
|
$ |
20.43 |
|
Tangible Book Value
Per Share excluding AOCI |
$ |
26.11 |
|
|
$ |
25.39 |
|
|
$ |
24.72 |
|
|
$ |
23.69 |
|
|
$ |
22.84 |
|
Midland States Bancorp (NASDAQ:MSBI)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Midland States Bancorp (NASDAQ:MSBI)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024