EFFINGHAM, Ill., April 23, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ:MSBI) (the "Company") today reported net income available to common shareholders of $16.2 million, or $0.74 per diluted share, for the first quarter of 2026, compared to a net loss available to common shareholders of $5.1 million, or $0.24 per diluted share, for the fourth quarter of 2025. This also compares to a net loss of $143.2 million, or $6.58 per diluted share, for the first quarter of 2025.

Financial results 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 loss of $1.7 million related to our limited partnership investments.

Financial results for the fourth quarter of 2025 included a loss of $21.4 million from the sale of substantially all of the Company's equipment finance portfolio, in addition to a $1.6 million loss on the sale of a small consumer loan portfolio.

Financial results for the first quarter of 2025 included goodwill impairment expense of $154.0 million.

2026 First Quarter Results

Net income available to common shareholders of $16.2 million, or $0.74 per diluted share; Adjusted earnings available to common shareholders of $17.2 million, or $0.79 per diluted share
Adjusted pre-provision net revenue of $30.5 million, or $1.43 per diluted share, compared to $31.6 million, or $1.44 per diluted share, for the fourth quarter of 2025
Net interest margin of 3.91% compared to 3.74% in the prior quarter
Community Bank loan portfolio increased $68.8 million, or 8.3% annualized, compared to prior quarter. Total loans decreased $13.4 million, primarily due to anticipated runoff within our specialty finance and non-core portfolios
Total capital to risk-weighted assets of 15.27% and common equity tier 1 capital of 9.98%
Ratio of nonperforming assets to total assets of 0.91%, a decrease of 10 basis points from the prior quarter
Provision for credit losses on loans was $5.4 million for the first quarter of 2026, compared to $11.8 million for the fourth quarter of 2025

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

"We delivered a solid start to 2026, reflecting the actions taken throughout 2025 to strengthen credit quality and reduce portfolio risk. Credit metrics continued to improve, with non-performing assets declining and trending toward our 0.75% target, while profitability returned to normalized levels. As a result, we generated earnings of $0.74 per share and a return on average assets of 1.16%.

"Our capital position continued to strengthen, with the common equity tier 1 ratio increasing to 9.98%, approaching our 10% target. We remained disciplined in our capital allocation, repurchasing $7.8 million of common stock during the quarter while continuing to invest in our core businesses. Net interest margin expanded meaningfully, driven primarily by lower funding costs.

"Growth in our Community Bank remains a key priority for 2026, with loan growth supported by strong client relationships, while non-core portfolios continued to run off as planned. Our wealth management business delivered another solid quarter. We are encouraged by the momentum entering 2026, and we see opportunities to further improve efficiency in the Company as the year progresses."

Financial Highlights and Key Performance Indicators

	As of and for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2026			2025			2025			2025			2025
Return on average assets (annualized)		1.16	%		(0.17	)%		0.43	%		0.67	%		(7.66	)%
Adjusted pre-provision net revenue to average assets ⁽¹⁾		1.91	%		1.86	%		1.81	%		1.86	%		1.50	%
Net interest margin (annualized)		3.91	%		3.74	%		3.79	%		3.56	%		3.49	%
Efficiency ratio ⁽¹⁾		62.17	%		63.01	%		61.01	%		59.85	%		63.77	%
Noninterest expense to average assets		3.16	%		4.54	%		2.86	%		2.80	%		11.02	%
Net charge-offs to average loans (annualized)		0.64	%		3.69	%		0.99	%		2.34	%		1.35	%
Tangible book value per share at period end ⁽¹⁾	$	20.77		$	20.70		$	21.16		$	20.68		$	20.54
Diluted earnings (loss) per common share	$	0.74		$	(0.24	)	$	0.24		$	0.44		$	(6.58	)
Common shares outstanding at period end		20,813,975			21,169,854			21,543,557			21,515,138			21,503,036
Trust assets under administration	$	4,474,234		$	4,478,999		$	4,363,756		$	4,181,180		$	4,101,414
^{(1) Non-GAAP financial measures. Refer to pages 11-12 for a reconciliation to the comparable GAAP financial measures.}

Key Points for First Quarter and Outlook

Solid Growth Trends in Community Bank & Wealth Management

Total loans at March 31, 2026 were $4.34 billion, a decrease of $13.4 million from December 31, 2025. Key changes in the loan portfolio were as follows:
- Community Bank balances increased $68.8 million, or 2.1%. We originated $130 million of new loans during the first quarter of 2026, down from $180 million in the fourth quarter of 2025, primarily reflecting typical seasonal softness at the start of the year. First quarter production benefited from ongoing expansion of full-relationship commercial clients.
- Specialty finance loans decreased $54.7 million to $613.5 million from December 31, 2025.
- Non-core loans, which include our third party lending and servicing programs and remaining equipment finance portfolio, decreased $27.5 million to $328.1 million from December 31, 2025.
Total deposits were $5.44 billion at March 31, 2026, an increase of $15.7 million from December 31, 2025. Key changes in deposits were as follows:
- Retail deposits increased $81.6 million driven primarily by growth in existing consumer and small business customer relationships and growth in new accounts as a result of targeted initiatives.
- Deposits among wealth management clients declined $22.8 million, reflecting normal fluctuations in client cash balances. Servicing deposits decreased $20.0 million due to the sales of the residential servicing portfolio and a portion of the commercial servicing portfolio.
- Higher-cost brokered deposits decreased $17.2 million.
Wealth Management revenue totaled $8.2 million in the first quarter of 2026, which was relatively stable compared to the prior quarter. Assets under administration were $4.47 billion at March 31, 2026, compared to $4.48 billion at December 31, 2025. Market volatility experienced at the end of the first quarter had a limited effect on our results.
Net interest margin was 3.91%, up 17 basis points compared to the fourth quarter of 2025, driven primarily by a continued decline in funding costs. The cost of deposits decreased 14 basis points to 1.81% in the first quarter of 2026, reflecting the ongoing impact of Federal Reserve rate cuts that began in late 2024. Margin expansion also benefited from a modest 2 basis point increase in loan yields and a favorable shift in the investment securities mix.

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

	For the Three Months Ended
(dollars in thousands)	March 31, 2026						December 31, 2025						March 31, 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	$	89,412	$	809	3.67	%	$	81,080	$	802	3.92	%	$	68,671	$	718	4.24	%
Investment securities ⁽¹⁾		1,592,433		18,702	4.76			1,457,778		16,807	4.57			1,311,887		15,517	4.80
Loans ⁽¹⁾⁽²⁾		4,254,321		66,044	6.30			4,671,538		73,889	6.28			5,057,394		78,118	6.26
Loans held for sale		6,892		102	6.01			11,035		145	5.21			326,348		4,563	5.67
Nonmarketable equity securities		31,547		583	7.50			36,053		673	7.41			35,614		647	7.37
Total interest-earning assets		5,974,605		86,240	5.85			6,257,484		92,316	5.85			6,799,914		99,563	5.94
Noninterest-earning assets		496,233						486,216						667,940
Total assets	$	6,470,838					$	6,743,700					$	7,467,854

Interest-Bearing Liabilities
Interest-bearing deposits	$	4,430,873	$	24,203	2.22	%	$	4,501,366	$	27,147	2.39	%	$	5,074,007	$	34,615	2.77	%
Short-term borrowings		33,236		231	2.82			110,069		1,035	3.73			73,767		700	3.85
FHLB advances & other borrowings		273,444		2,670	3.96			359,380		3,648	4.03			299,578		3,163	4.28
Subordinated debt		27,022		380	5.70			27,017		380	5.58			77,752		1,387	7.23
Trust preferred debentures		51,948		1,121	8.75			51,771		1,183	9.07			51,283		1,200	9.49
Total interest-bearing liabilities		4,816,523		28,605	2.41			5,049,603		33,393	2.62			5,576,387		41,065	2.99
Noninterest-bearing deposits		996,926						1,015,629						1,052,181
Other noninterest-bearing liabilities		87,907						95,770						123,613
Shareholders' equity		569,482						582,698						715,673
Total liabilities and shareholders' equity	$	6,470,838					$	6,743,700					$	7,467,854

Net Interest Margin			$	57,635	3.91	%			$	58,923	3.74	%			$	58,498	3.49	%

Cost of Deposits					1.81	%					1.95	%					2.29	%
^{(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 March 31, 2026, December 31, 2025 and March 31, 2025.} ^{(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 $22.1 million for the first quarter of 2026 compared to $26.9 million for the fourth quarter of 2025. 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. Additionally, the first quarter of 2026 included credit enhancement income of $3.4 million while the fourth quarter of 2025 included $6.6 million of additional credit enhancement income driven by contractual changes in our third-party lending and servicing arrangement.
Noninterest expense was $50.4 million for the first quarter of 2026 compared to $77.2 million for the fourth quarter of 2025, which included $23.0 million of losses on the sale of loans.
Income tax expense was $5.6 million for the first quarter of 2026, compared to an income tax benefit of $0.4 million for the fourth quarter of 2025 and income tax expense of $3.2 million for the first quarter of 2025. The resulting effective tax rates were 23.4%, 11.1% and 19.6%, respectively. The lower effective tax rate for the fourth quarter of 2025 reflected the loss on the sale of substantially all of our equipment finance portfolio; the effective tax rate for the first quarter of 2025 was not affected by the goodwill impairment, which was not deductible for tax purposes. We currently expect our effective tax rate to be approximately 22% - 23% for the full year, subject to changes in earnings mix, state tax legislation and other factors.

Improving Credit Quality

Nonperforming loans decreased to $58.8 million, or 1.36% of total loans, at March 31, 2026, compared to $65.5 million, or 1.50% of total loans, at December 31, 2025, while loans 30-89 days past due increased to $20.3 million, or 0.47% of total loans, at March 31, 2026.
Provision for credit losses on loans was $5.4 million for the first quarter of 2026.
Net charge-offs were $6.7 million for the first quarter of 2026, which included a $2.6 million charge-off related to a nonperforming commercial real estate loan that moved to held for sale during the quarter and $2.1 million of fully reimbursed charge-offs related to our third-party lending portfolio.
Allowance for credit losses on loans was $67.9 million, or 1.56% of total loans, at March 31, 2026, compared to an allowance of $69.2 million, or 1.59% of total loans, at December 31, 2025.

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)	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)		2026			2025			2025			2025			2025
Asset Quality
Loans 30-89 days past due	$	20,266		$	17,079		$	26,019		$	40,959		$	48,221
Nonperforming loans		58,791			65,483			68,703			80,112			145,690
Nonperforming assets		59,305			66,089			70,369			81,775			151,264
Substandard accruing loans		91,963			76,000			78,901			58,478			77,620
Net charge-offs		6,747			43,492			12,309			29,855			16,878
Loans 30-89 days past due to total loans		0.47	%		0.39	%		0.53	%		0.81	%		0.96	%
Nonperforming loans to total loans		1.36	%		1.50	%		1.41	%		1.59	%		2.90	%
Nonperforming assets to total assets		0.91	%		1.01	%		1.02	%		1.15	%		2.08	%
Allowance for credit losses to total loans		1.56	%		1.59	%		2.07	%		1.84	%		2.10	%
Allowance for credit losses to nonperforming loans		115.45	%		105.71	%		146.84	%		115.70	%		72.19	%
Net charge-offs to average loans (annualized)		0.64	%		3.69	%		0.99	%		2.34	%		1.35	%

Capital

As previously announced, 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 its common stock through November 2, 2026. During the first quarter of 2026, the Company repurchased $7.8 million of its common stock (365,507 shares of its common stock at a weighted average price of $21.47), resulting in approximately $7.6 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 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

	As of December 31, 2025
	Midland States Bank	Midland States Bancorp, Inc.	Minimum Regulatory Requirements ⁽²⁾
Total capital to risk-weighted assets	14.27%	15.16%	10.50%
Tier 1 capital to risk-weighted assets	13.02%	13.37%	8.50%
Common equity Tier 1 capital to risk-weighted assets	13.02%	9.89%	7.00%
Tier 1 leverage ratio	9.63%	9.90%	4.00%
Tangible common equity to tangible assets ⁽¹⁾	N/A	6.74%	N/A
^{(1) A non-GAAP financial measure. Refer to pages 11-12 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 March 31, 2026, the Company had total assets of approximately $6.55 billion, and its Wealth Management Group had assets under administration of approximately $4.47 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 of financial performance recognized in accordance with GAAP.

These non-GAAP financial measures include "Adjusted pre-provision net revenue," "Adjusted pre-provision net revenue per diluted share," "Adjusted pre-provision net revenue to average assets," "Adjusted earnings," "Adjusted earnings available to common shareholders," "Adjusted diluted earnings per common share," "Efficiency ratio," "Tangible common equity to tangible assets," and "Tangible book value per share." The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company's funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company's plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, 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 Iran; 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, Interim Chief Financial Officer, at cstack@midlandsb.com or (217) 342-7321

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

	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)		2026			2025			2025			2025			2025
Assets
Cash and cash equivalents	$	113,658		$	127,811		$	166,147		$	176,587		$	102,006
Investment securities		1,596,220			1,527,236			1,383,121			1,354,652			1,368,405
Loans		4,338,573			4,352,004			4,867,587			5,035,295			5,018,053
Allowance for credit losses on loans		(67,875	)		(69,219	)		(100,886	)		(92,690	)		(105,176	)
Total loans, net		4,270,698			4,282,785			4,766,701			4,942,605			4,912,877
Loans held for sale		6,709			7,781			7,535			37,299			287,821
Premises and equipment, net		84,169			85,134			86,005			86,240			86,719
Other real estate owned		514			606			393			393			4,183
Loan servicing rights, at lower of cost or fair value		11,688			11,932			16,165			16,720			17,278
Goodwill		7,927			7,927			7,927			7,927			7,927
Other intangible assets, net		8,159			8,876			9,619			10,362			11,189
Company-owned life insurance		220,630			218,554			216,494			214,392			212,336
Credit enhancement asset		13,476			12,557			5,765			5,800			5,615
Other assets		214,115			222,221			245,643			254,901			268,448
Total assets	$	6,547,963		$	6,513,420		$	6,911,515		$	7,107,878		$	7,284,804

Liabilities and Shareholders' Equity
Noninterest-bearing demand deposits	$	1,013,808		$	1,040,411		$	1,015,930		$	1,074,212		$	1,090,707
Interest-bearing deposits		4,426,259			4,383,968			4,588,895			4,872,707			4,845,727
Total deposits		5,440,067			5,424,379			5,604,825			5,946,919			5,936,434
Short-term borrowings		153,425			60,181			146,766			8,654			40,224
FHLB advances and other borrowings		238,000			293,000			373,000			345,000			498,000
Subordinated debt		27,024			27,019			27,014			77,759			77,754
Trust preferred debentures		52,035			51,857			51,684			51,518			51,358
Other liabilities		78,458			91,485			124,225			104,323			109,597
Total liabilities		5,989,009			5,947,921			6,327,514			6,534,173			6,713,367
Total shareholders' equity		558,954			565,499			584,001			573,705			571,437
Total liabilities and shareholders' equity	$	6,547,963		$	6,513,420		$	6,911,515		$	7,107,878		$	7,284,804

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

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,		March 31,
(dollars in thousands, except per share data)		2026			2025			2025			2025		2025
Net interest income:
Interest income	$	86,022		$	92,095		$	98,493		$	97,924	$	99,355
Interest expense		28,605			33,393			37,376			39,229		41,065
Net interest income		57,417			58,702			61,117			58,695		58,290
Provision for credit losses:
Provision for credit losses on loans		5,403			11,825			20,505			17,369		10,850
Recapture of credit losses on unfunded commitments		(400	)		(200	)		(500	)		—		—
Total provision for credit losses		5,003			11,625			20,005			17,369		10,850
Net interest income after provision for credit losses		52,414			47,077			41,112			41,326		47,440
Noninterest income:
Wealth management revenue		8,248			8,272			8,018			7,379		7,350
Service charges on deposit accounts		3,355			3,573			3,598			3,351		3,305
Interchange revenue		3,528			3,437			3,445			3,463		3,151
Residential mortgage banking revenue		626			690			735			756		676
Income on company-owned life insurance		2,076			2,060			2,102			2,068		2,334
Gain (loss) on sales of investment securities, net		(1,731	)		—			14			—		—
Credit enhancement income (loss)		3,360			6,876			(242	)		3,848		(578	)
Other income		2,660			1,959			2,346			2,669		1,525
Total noninterest income		22,122			26,867			20,016			23,534		17,763
Noninterest expense:
Salaries and employee benefits		26,157			25,906			26,393			25,685		26,416
Occupancy and equipment		4,535			4,353			4,206			4,166		4,498
Data processing		7,065			6,834			7,186			7,035		6,919
Professional services		2,242			2,321			2,017			2,792		2,741
Impairment on goodwill		—			—			—			—		153,977
Amortization of intangible assets		717			743			743			827		911
Loss on sale of loan portfolios		—			23,051			—			—		—
Impairment on leased assets and surrendered assets		—			684			—			—		—
FDIC insurance		529			3,739			1,512			1,422		1,463
Other expense		9,179			9,561			7,757			8,065		6,080
Total noninterest expense		50,424			77,192			49,814			49,992		203,005
Income (loss) before income taxes		24,112			(3,248	)		11,314			14,868		(137,802	)
Income tax expense (benefit)		5,649			(360	)		3,757			2,844		3,172
Net income (loss)		18,463			(2,888	)		7,557			12,024		(140,974	)
Preferred stock dividends		2,228			2,228			2,229			2,228		2,228
Net income (loss) available to common shareholders	$	16,235		$	(5,116	)	$	5,328		$	9,796	$	(143,202	)

Basic earnings (loss) per common share	$	0.74		$	(0.24	)	$	0.24		$	0.44	$	(6.58	)
Diluted earnings (loss) per common share	$	0.74		$	(0.24	)	$	0.24		$	0.44	$	(6.58	)
Weighted average common shares outstanding		21,301,246			21,854,033			21,863,911			21,820,190		21,795,570
Weighted average diluted common shares outstanding		21,301,246			21,854,033			21,863,911			21,820,190		21,795,570

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

	As of
	March 31,		December 31,		September 30,		June 30,		March 31,
(dollars in thousands)		2026		2025		2025		2025		2025
Loan Portfolio Mix
Commercial loans	$	1,216,511	$	1,178,521	$	1,476,533	$	1,544,386	$	1,269,562
Equipment finance leases		43,803		50,981		310,983		347,155		373,168
Total commercial loans and leases		1,260,314		1,229,502		1,787,516		1,891,541		1,642,730
Commercial real estate		2,322,198		2,342,664		2,336,661		2,383,361		2,592,325
Construction and land development		276,469		286,140		260,073		258,729		264,966
Residential real estate		344,511		349,623		353,475		361,261		373,095
Consumer		135,081		144,075		129,862		140,403		144,937
Total loans	$	4,338,573	$	4,352,004	$	4,867,587	$	5,035,295	$	5,018,053

Loan Portfolio Segment
Regions
Eastern	$	989,596	$	972,031	$	927,977	$	897,348	$	897,792
Northern		758,815		711,702		724,695		753,590		747,028
Southern		713,592		729,368		725,892		778,124		711,787
St. Louis		934,974		915,126		896,005		884,685		902,743
Total Community Bank		3,396,977		3,328,227		3,274,569		3,313,747		3,259,350
Specialty finance		613,514		668,183		642,167		670,566		867,918
Non-core loan program and other ⁽¹⁾		328,082		355,594		950,851		1,050,982		890,785
Total loans	$	4,338,573	$	4,352,004	$	4,867,587	$	5,035,295	$	5,018,053

Deposit Portfolio Mix
Noninterest-bearing demand	$	1,013,808	$	1,040,411	$	1,015,930	$	1,074,212	$	1,090,707
Interest-bearing:
Checking		1,886,212		1,855,215		1,996,501		2,180,717		2,161,282
Money market		1,295,781		1,248,942		1,240,885		1,216,357		1,154,403
Savings		495,899		487,742		486,953		511,470		522,663
Time		723,055		748,942		804,740		818,813		818,732
Brokered time		25,312		43,127		59,816		145,350		188,647
Total deposits	$	5,440,067	$	5,424,379	$	5,604,825	$	5,946,919	$	5,936,434

Deposit Portfolio by Channel
Retail	$	2,904,695	$	2,823,064	$	2,791,085	$	2,811,838	$	2,846,494
Commercial		1,209,210		1,193,637		1,248,445		1,145,369		1,074,837
Public Funds		455,982		473,381		605,474		618,172		490,374
Wealth & Trust		242,977		265,747		263,765		304,626		301,251
Servicing		478,496		498,496		498,892		785,659		842,567
Brokered Deposits		125,949		143,192		167,228		248,707		358,063
Other		22,758		26,862		29,936		32,548		22,848
Total deposits	$	5,440,067	$	5,424,379	$	5,604,825	$	5,946,919	$	5,936,434
^{(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
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands, except per share data)		2026			2025			2025			2025			2025
Income (loss) before income tax expense (benefit) – GAAP	$	24,112		$	(3,248	)	$	11,314		$	14,868		$	(137,802	)
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		1,689			134			315			1,028			620
Total adjustments to noninterest income		1,343			134			301			1,028			620
Adjustments to noninterest expense:
Loss on sale of loan portfolios		—			(23,051	)		—			—			—
Impairment on goodwill		—			—			—			—			(153,977	)
Total adjustments to noninterest expense		—			(23,051	)		—			—			(153,977	)
Adjusted earnings pre-tax – non-GAAP		25,455			19,937			11,615			15,896			16,795
Adjusted earnings tax expense		6,002			5,726			3,836			3,114			3,335
Adjusted earnings – non-GAAP		19,453			14,211			7,779			12,782			13,460
Preferred stock dividends		2,228			2,228			2,229			2,228			2,228
Adjusted earnings available to common shareholders	$	17,225		$	11,983		$	5,550		$	10,554		$	11,232
Adjusted diluted earnings per common share	$	0.79		$	0.54		$	0.25		$	0.48		$	0.51

Adjusted Pre-Provision Net Revenue Reconciliation

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)		2026			2025			2025			2025			2025
Adjusted earnings pre-tax – non-GAAP	$	25,455		$	19,937		$	11,615		$	15,896		$	16,795
Provision for credit losses		5,003			11,625			20,005			17,369			10,850
Adjusted pre-provision net revenue	$	30,458		$	31,562		$	31,620		$	33,265		$	27,645
Adjusted pre-provision net revenue per diluted share	$	1.43		$	1.44		$	1.45		$	1.52		$	1.27
Adjusted pre-provision net revenue to average assets		1.91	%		1.86	%		1.81	%		1.86	%		1.50	%

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

Efficiency Ratio Reconciliation

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands)		2026			2025			2025			2025			2025
Noninterest expense – GAAP	$	50,424		$	77,192		$	49,814		$	49,992		$	203,005
Loss on sale of loan portfolios		—			(23,051	)		—			—			—
Impairment on goodwill		—			—			—			—			(153,977	)
Adjusted noninterest expense	$	50,424		$	54,141		$	49,814		$	49,992		$	49,028

Net interest income – GAAP	$	57,417		$	58,702		$	61,117		$	58,695		$	58,290
Effect of tax-exempt income		218			221			209			267			208
Adjusted net interest income		57,635			58,923			61,326			58,962			58,498

Noninterest income – GAAP		22,122			26,867			20,016			23,534			17,763
(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		1,689			134			315			1,028			620
Adjusted noninterest income		23,465			27,001			20,317			24,562			18,383

Adjusted total revenue	$	81,100		$	85,924		$	81,643		$	83,524		$	76,881

Efficiency ratio		62.17	%		63.01	%		61.01	%		59.85	%		63.77	%

Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share

	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
(dollars in thousands, except per share data)		2026			2025			2025			2025			2025
Shareholders' Equity to Tangible Common Equity
Total shareholders' equity—GAAP	$	558,954		$	565,499		$	584,001		$	573,705		$	571,437
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		(8,159	)		(8,876	)		(9,619	)		(10,362	)		(11,189	)
Tangible common equity	$	432,320		$	438,148		$	455,907		$	444,868		$	441,773

Total Assets to Tangible Assets:
Total assets—GAAP	$	6,547,963		$	6,513,420		$	6,911,515		$	7,107,878		$	7,284,804
Adjustments:
Goodwill		(7,927	)		(7,927	)		(7,927	)		(7,927	)		(7,927	)
Other intangible assets, net		(8,159	)		(8,876	)		(9,619	)		(10,362	)		(11,189	)
Tangible assets	$	6,531,877		$	6,496,617		$	6,893,969		$	7,089,589		$	7,265,688

Common Shares Outstanding		20,813,975			21,169,854			21,543,557			21,515,138			21,503,036

Tangible Common Equity to Tangible Assets		6.62	%		6.74	%		6.61	%		6.27	%		6.08	%
Tangible Book Value Per Share	$	20.77		$	20.70		$	21.16		$	20.68		$	20.54

A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/bfe86ba0-5548-467e-92c2-82fd2e1be759

Midland States Bancorp, Inc. Announces 2026 First Quarter Results