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Midland ◉ States Bancorp , Inc. For Immediate Release MIDLAND STATES BANCORP , INC . ANNOUNCES 2021 FIRST QUARTER RESULTS Summary ● Net income of $ 18.5 million , or $ 0.81 diluted earnings per share • Efficiency ratio improved to 56.88 % from 58.55 % in Q4 2020 • Return on average shareholders ' equity of 12.04 % • Return on average tangible common equity of 17.28 % • Tier 1 leverage ratio increased 29 bps to 7.79 % Book value and tangible book value per share increased 2.2 % and 3.5 % , respectively Effingham , IL , April 22 , 2021 – Midland States Bancorp , Inc. ( Nasdaq : MSBI ) ( the " Company " ) today reported net income of $ 18.5 million , or $ 0.81 diluted earnings per share , for the first quarter of 2021 . This compares to net income of $ 8.3 million , or $ 0.36 diluted earnings per share , for the fourth quarter of 2020 , which was negatively impacted by $ 4.9 million of charges related to the prepayment of FHLB advances , a $ 0.6 million loss on mortgage servicing rights ( “ MSRs ” ) held - for - sale , and $ 0.2 million in integration and acquisition expenses , and to net income of $ 1.5 million , or $ 0.06 diluted earnings per share , for the first quarter of 2020 , which was negatively impacted by an $ 8.5 million impairment on commercial MSRs and $ 0.9 million in integration and acquisition expenses . Jeffrey G. Ludwig , President and Chief Executive Officer of the Company , said , “ Our first quarter results reflect a significant increase in our level of profitability resulting from the actions we took last year to increase efficiencies and optimize our business model . Despite operating in a low growth , low interest rate environment , we are seeing substantial improvement in our performance metrics including our efficiency ratio , return on average assets , and return on average tangible equity , as well as strong increases in our capital ratios and book value . " We continued to execute on our strategy to increase our recurring fee income with the announcement of our acquisition of ATG Trust Company , which we expect to close during the second quarter of 2021. The addition of ATG Trust will further increase our assets under administration and provide additional expertise in specialized areas that will improve our ability to attract new clients to our wealth management business . “ During the first quarter , we saw an elevated level of loan payoffs and paydowns , which impacted our total loan balances . However , we are seeing encouraging signs of improving economic conditions in our