Earnings release
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Source: Midland States Bancorp, Inc. October 22, 2026 16:31 ET Midland States Bancorp, Inc. Announces 2026 Third Quarter Results EFFINGHAM, Ill., Oct. 22, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $20.6 million, or $0.95 per diluted share, for the third quarter of 2026, compared to net income available to common shareholders of $17.7 million, or $0.82 per diluted share, for the second quarter of 2026. This also compares to net income available to common shareholders of $5.3 million, or $0.24 per diluted share, for the third quarter of 2025. 2026Third Quarter Results Net income available to common shareholders of $20.6 million, or $0.95 per diluted share Return on average assets of 1.35% and return on average tangible common equity of 18.50% Net interest margin of 4.03% compared to 3.98% in the prior quarter; current quarter included a $1.6 million interest recovery on the payoff of a nonaccrual loan Total loans increased$39.1 million, including $23.7 million of net growth in the Community Bank loan portfolio, or 2.8% annualized, during the quarter Total capital to risk-weighted assets of 15.60% and common equity tier 1 capital of 10.36% Ratio of nonperforming assets to total assets of 0.86%, a decrease of ve basis points compared to prior quarter Discussion of Outlook; President & Chief Executive Of cer, Jeffrey G. Ludwig: “Our third quarter results re ect another solid quarter of execution and continued progress toward building a higher-performing community bank. We delivered diluted earnings per share of $0.95 and a 1.35% return on average assets while maintaining strong net interest margin. The Community Bank generated loan growth, while we continued the planned runoff of non-core portfolios, further improving the composition of our balance sheet. "We also made meaningful progress resolving legacy credit issues. Past-due, substandard and nonperforming loans declined, net charge-offs moderated from the prior quarter, and our nonperforming asset ratio improved to 0.86%. We remain disciplined in addressing the remaining legacy credits while supporting high-quality loan growth in our markets. "Strong earnings continued to support our capital position. We enter the fourth quarter with solid momentum and remain focused on pro table relationship growth, continued credit normalization and disciplined capital deployment to support long-term shareholder value.” Financial Highlights and Key Performance Indicators
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As of and for the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2026 2026 2026 2025 2025 Diluted earnings (loss) per common share $ 0.95 $ 0.82 $ 0.74 $ (0.24) $ 0.24 Return on average assets (annualized) 1.35% 1.22% 1.16% (0.17)% 0.43% Return on average tangible common equity (annualized) (1) 18.50% 16.27% 14.88% (4.46)% 4.72% Adjusted pre-provision net revenue to average assets (annualized) (1) 1.96% 2.01% 1.91% 1.86% 1.81% Net interest margin (annualized) 4.03% 3.98% 3.91% 3.74% 3.79% Ef ciency ratio (1) 61.34% 60.61% 62.17% 63.01% 61.01% Noninterest expense to average assets 3.13% 3.12% 3.16% 4.54% 2.86% Net charge-offs to average loans (annualized) 0.50% 1.17% 0.64% 3.69% 0.99% Tangible book value per share at period end (1) $ 19.52 $ 21.41 $ 20.77 $ 20.70 $ 21.16 Tangible book value per share, excluding AOCI at period end (1) $ 25.39 $ 24.69 $ 24.11 $ 23.55 $ 24.08 Common shares outstanding at period end 20,801,859 20,725,814 20,813,975 21,169,854 21,543,557 Trust assets under administration $4,770,581 $4,782,625 $4,474,234 $4,478,999 $4,363,756 (1) Non-GAAP nancial measures. Refer to pages 10-12 for a reconciliation to the comparable GAAP nancial measures. Key Points for Third Quarter and Outlook Growth Trends in Community Bank & Wealth Management Total loans at September 30, 2026 were $4.28 billion, an increase of $39.1 million from June 30, 2026. Key changes in the loan portfolio were as follows: Community Bank balances increased $23.7 million, or 2.8% annualized. Specialty nance loans increased $28.0 million to $560.1 million from June 30, 2026. Non-core loans, which include our third-party lending and servicing programs and remaining equipment nance portfolio, decreased $12.7 million to $295.7 million from June 30, 2026. Total deposits were $5.62 billion at September 30, 2026, a decrease of $89.8 million from June 30, 2026. Key changes in deposits were as follows: Retail deposits decreased $112.7 million, primarily re ecting $115.7 million of balance reductions resulting from actions taken to manage liquidity and deposit pricing. Commercial and public funds deposits increased $35.7 million and $33.7 million, respectively.
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Servicing and higher-cost brokered deposits decreased $26.5 million and $7.9 million, respectively. Wealth Management revenue totaled $8.7 million in the third quarter of 2026. Assets under administration remained stable at $4.77 billion at September 30, 2026, compared to $4.78 billion at June 30, 2026. Net Interest Margin Net interest margin increased ve basis points to 4.03% in the third quarter of 2026, bene ting from a $1.6 million interest recovery on the payoff of a nonaccrual loan and continued balance sheet and interest rate risk management, partially offset by higher funding costs. The cost of deposits increased four basis points to 1.82%. The following table presents the Company’s net interest margin for the third quarter of 2026 compared to the second quarter of 2026 and the third quarter of 2025. For the Three Months Ended (dollars in thousands) September 30, 2026 June 30, 2026 September 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 $ 149,088$ 1,3333.55%$ 108,157$ 9873.66%$ 78,567$ 8494.29% Investment securities (1) 1,780,505 22,0904.92 1,617,474 19,5404.85 1,338,997 15,9794.73 Loans (1)(2) 4,235,207 69,1736.48 4,268,168 67,195 6.31 4,947,675 81,0126.50 Loans held for sale 6,054 976.36 8,431 1286.10 9,268 1476.29 Nonmarketable equity securities 29,215 5307.20 30,285 5347.07 38,559 7157.36 Total interest- earning assets 6,200,069 93,2235.97 6,032,515 88,3845.88 6,413,066 98,702 6.11 Noninterest- earning assets 495,446 495,663 498,875 Total assets $6,695,515 $6,528,178 $6,911,941 Interest- Bearing Liabilities Interest-bearing deposits $4,720,701$26,251 2.21%$4,512,697$24,526 2.18%$4,644,455$30,2192.58% Short-term borrowings 42,059 3493.29 28,521 2022.84 54,839 4993.61 FHLB advances & other borrowings 221,217 2,1653.88 249,044 2,3493.78 386,772 4,0444.15 Subordinated debt 27,032 3805.58 27,027 3805.64 77,210 1,3937.16 Trust preferred debentures 52,316 1,1548.75 52,128 1,1318.70 51,602 1,2219.39 Total interest- bearing liabilities 5,063,325 30,2992.37 4,869,417 28,5882.35 5,214,878 37,3762.84 Noninterest- bearing deposits 989,768 1,012,592 1,020,196
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Other noninterest- bearing liabilities 75,440 84,416 100,436 Shareholders’ equity 566,982 561,753 576,431 Total liabilities and shareholders’ equity $6,695,515 $6,528,178 $6,911,941 Net Interest Margin $62,9244.03% $59,7963.98% $61,3263.79% Cost of Deposits 1.82% 1.78% 2.12% (1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.2 million for each of the three months ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. (2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs. Trends in Noninterest Income and Expense Noninterest income was $23.2 million for the third quarter of 2026 compared to $23.8 million for the second quarter of 2026. Noninterest expense was $52.8 million for the third quarter of 2026 compared to $50.8 million for the second quarter of 2026, driven by an increase in variable compensation expense. Income tax expense was $6.6 million, resulting in an effective tax rate of 22.4% for the third quarter of 2026 compared to 22.9% and 33.2% for the second quarter of 2026 and third quarter of 2025, respectively. We currently expect our effective tax rate to be approximately 23% for the full year, subject to changes in earnings mix, state tax legislation, and other factors. Continued Progress on Credit Quality Loans 30-89 days past due decreased to $9.1 million, or 0.21% of total loans, at September 30, 2026, compared to $11.0 million, or 0.26% of total loans, at June 30, 2026. Substandard accruing loans decreased by $0.4 million to $71.2 million at September 30, 2026. Nonperforming loans decreased to $58.7 million, or 1.37% of total loans, at September 30, 2026, compared to $60.9 million, or 1.43% of total loans, at June 30, 2026. Net charge-offs were $5.4 million for the third quarter of 2026, including $3.2 million of charge-offs on two previously identi ed nonperforming commercial real estate relationships in the Community Bank portfolio, partially offset by a $0.8 million recovery on the payoff of another previously identi ed nonperforming commercial real estate relationship. Provision for credit losses on loans was $3.7 million for the third quarter of 2026, re ecting improved credit quality metrics, including favorable past due and delinquency trends. Allowance for credit losses on loans was $60.9 million, or 1.42% of total loans, at September 30, 2026, compared to an allowance of $62.5 million, or 1.47% of total loans, at June 30, 2026. The table below summarizes certain information regarding the Company’s loan portfolio asset quality for the periods presented. As of and for the Three Months Ended (dollars in thousands) September 30, June 30, March 31, December 31, September 30,
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2026 2026 2026 2025 2025 Asset Quality Loans 30-89 days past due $ 9,103 $10,984 $20,266 $ 17,079 $ 26,019 Nonperforming loans 58,690 60,879 58,791 65,483 68,703 Nonperforming assets 58,870 61,235 59,305 66,089 70,369 Substandard accruing loans 71,168 71,526 91,963 76,000 78,901 Net charge-offs 5,352 12,465 6,747 43,492 12,309 Loans 30-89 days past due to total loans 0.21% 0.26% 0.47% 0.39% 0.53% Nonperforming loans to total loans 1.37% 1.43% 1.36% 1.50% 1.41% Nonperforming assets to total assets 0.86% 0.91% 0.91% 1.01% 1.02% Allowance for credit losses to total loans 1.42% 1.47% 1.56% 1.59% 2.07% Allowance for credit losses to nonperforming loans 103.68% 102.69% 115.45% 105.71% 146.84% Net charge-offs to average loans (annualized) 0.50% 1.17% 0.64% 3.69% 0.99% Capital As previously announced, the Company’s board of directors authorized a share repurchase program, pursuant to which the Company is authorized to repurchase up to $45.0 million of its common stock through December 31, 2026. The Company repurchased $10.6 million of its common stock during year-to- date 2026, and approximately $24.8 million remained available under the program at September 30, 2026. The Company and Midland States Bank exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the quali cations to be a ‘‘well-capitalized’’ nancial institution, as summarized in the following table: As of September 30, 2026 Midland States Bank Midland States Bancorp, Inc. Minimum Regulatory Requirements (2) Total capital to risk-weighted assets 14.52% 15.60% 10.50% Tier 1 capital to risk-weighted assets 13.27% 13.82% 8.50% Common equity Tier 1 capital to risk- weighted assets 13.27% 10.36% 7.00% Tier 1 leverage ratio 9.93% 10.34% 4.00% Tangible common equity to tangible assets (1) N/A 5.97% N/A 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
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(1) Non-GAAP nancial measure. Refer to pages 10-12 for a reconciliation to the comparable GAAP nancial 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 nancial holding company headquartered in Ef ngham, Illinois, and is the sole shareholder of Midland States Bank. As of September 30, 2026, the Company had total assets of approximately $6.82 billion, and its Wealth Management Group had assets under administration of approximately $4.77 billion. The Company provides a full range of commercial and consumer banking products and services, merchant credit card services, trust and investment management, insurance and nancial 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 nancial measures included in this press release are not measures calculated in accordance with GAAP. These non-GAAP nancial 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,” “Ef ciency ratio,” “Tangible common equity to tangible assets,” “Tangible book value per share,” and “Tangible book value per share, excluding AOCI.” The Company believes these non-GAAP nancial measures provide both management and investors a more complete understanding of the Company’s pro tability and asset pro le, and that the tangible asset-based measures are commonly used by investors in evaluating value of nancial institutions and their equity securities. These non-GAAP nancial measures are supplemental and are not a substitute for any analysis based on GAAP nancial 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, in ation, deposit volatility and potential regulatory developments; the performance of our loan portfolio and our ability to manage credit risk; changes in the nancial markets; the effects of armed con ict, 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 arti cial 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 lings 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 identi ed 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 re ect 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 Of cer, at cstack@midlandsb.com or (217) 342-7321 MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited)
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As of September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 Assets Cash and cash equivalents $ 99,612 $ 298,747 $ 113,658 $ 127,811 $ 166,147 Investment securities 1,909,021 1,657,313 1,596,220 1,527,236 1,383,121 Loans 4,282,828 4,243,704 4,338,573 4,352,004 4,867,587 Allowance for credit losses on loans (60,852) (62,519) (67,875) (69,219) (100,886) Total loans, net 4,221,976 4,181,185 4,270,698 4,282,785 4,766,701 Loans held for sale 4,580 8,944 6,709 7,781 7,535 Premises and equipment, net 82,435 82,898 84,169 85,134 86,005 Other real estate owned 180 356 514 606 393 Loan servicing rights, at lower of cost or fair value 10,931 11,316 11,688 11,932 16,165 Goodwill 7,927 7,927 7,927 7,927 7,927 Other intangible assets, net 6,849 7,495 8,159 8,876 9,619 Company-owned life insurance 224,884 222,757 220,630 218,554 216,494 Credit enhancement asset 14,364 13,642 13,476 12,557 5,765 Other assets 234,083 208,036 214,115 222,221 245,643 Total assets $6,816,842 $6,700,616 $6,547,963 $6,513,420 $ 6,911,515 Liabilities and Shareholders' Equity Noninterest-bearing demand deposits $ 973,388 $1,010,128 $1,013,808 $1,040,411 $1,015,930 Interest-bearing deposits 4,644,050 4,697,150 4,426,259 4,383,968 4,588,895 Total deposits 5,617,438 5,707,278 5,440,067 5,424,379 5,604,825 Short-term borrowings 151,499 7,645 153,425 60,181 146,766 FHLB advances 353,000 258,000 238,000 293,000 373,000 Subordinated debt 27,035 27,030 27,024 27,019 27,014 Trust preferred debentures 52,409 52,219 52,035 51,857 51,684 Other liabilities 84,094 78,756 78,458 91,485 124,225 Total liabilities 6,285,475 6,130,928 5,989,009 5,947,921 6,327,514 Total shareholders’ equity 531,367 569,688 558,954 565,499 584,001 Total liabilities and shareholders’ equity $6,816,842 $6,700,616 $6,547,963 $6,513,420 $ 6,911,515 MIDLAND STATES BANCORP, INC. CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued) For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2026 2026 2026 2025 2025 Net interest income: Interest income $ 93,021$ 88,177 $ 86,022 $ 92,095 $ 98,493 Interest expense 30,299 28,588 28,605 33,393 37,376 Net interest income 62,722 59,589 57,417 58,702 61,117 Provision for credit losses: Provision for credit losses on loans 3,685 7,109 5,403 11,825 20,505
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Provision (recapture) of credit losses on unfunded commitments 50 (290) (400) (200) (500) Total provision for credit losses 3,735 6,819 5,003 11,625 20,005 Net interest income after provision for credit losses 58,987 52,770 52,414 47,077 41,112 Noninterest income: Wealth management revenue 8,651 8,768 8,248 8,272 8,018 Service charges on deposit accounts 3,775 3,449 3,355 3,573 3,598 Interchange revenue 3,984 3,553 3,528 3,437 3,445 Residential mortgage banking revenue 216 686 626 690 735 Income on company-owned life insurance 1,828 2,127 2,076 2,060 2,102 Gain (loss) on sales of investment securities, net — — (1,731) — 14 Credit enhancement income (loss) 3,108 3,081 3,360 6,876 (242) Other income 1,675 2,104 2,660 1,959 2,346 Total noninterest income 23,237 23,768 22,122 26,867 20,016 Noninterest expense: Salaries and employee bene ts 28,500 27,354 26,157 25,906 26,393 Occupancy and equipment 4,330 4,229 4,535 4,353 4,206 Data processing 6,871 6,994 7,065 6,834 7,186 Professional services 1,669 1,665 2,242 2,321 2,017 Amortization of intangible assets 646 664 717 743 743 Loss on sale of loan portfolios — — — 23,051 — Impairment on leased assets and surrendered assets — — — 684 — FDIC insurance 791 781 529 3,739 1,512 Other expense 10,036 9,068 9,179 9,561 7,757 Total noninterest expense 52,843 50,755 50,424 77,192 49,814 Income (loss) before income taxes 29,381 25,783 24,112 (3,248) 11,314 Income tax expense (bene t) 6,573 5,895 5,649 (360) 3,757 Net income (loss) 22,808 19,888 18,463 (2,888) 7,557 Preferred stock dividends 2,229 2,228 2,228 2,228 2,229 Net income (loss) available to common shareholders $ 20,579$ 17,660 $ 16,235 $ (5,116)$ 5,328 Basic earnings (loss) per common share $ 0.95$ 0.82 $ 0.74 $ (0.24)$ 0.24 Diluted earnings (loss) per common share $ 0.95$ 0.82 $ 0.74 $ (0.24)$ 0.24 Weighted average common shares outstanding 21,128,351 21,074,683 21,301,246 21,854,033 21,863,911 Weighted average diluted common shares outstanding 21,140,143 21,074,683 21,301,246 21,854,033 21,863,911 MIDLAND STATES BANCORP, INC.
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CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued) As of September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 Loan Portfolio Mix Commercial loans $ 1,183,813$1,185,730$ 1,216,511$ 1,178,521$1,476,533 Equipment nance leases 30,339 37,086 43,803 50,981 310,983 Total commercial loans and leases 1,214,152 1,222,816 1,260,314 1,229,502 1,787,516 Commercial real estate 2,332,478 2,296,978 2,322,198 2,342,664 2,336,661 Construction and land development 249,268 243,840 276,469 286,140 260,073 Residential real estate 358,021 347,664 344,511 349,623 353,475 Consumer 128,909 132,406 135,081 144,075 129,862 Total loans $4,282,828$4,243,704$4,338,573$4,352,004$4,867,587 Loan Portfolio Segment Regions Eastern $ 985,101$ 978,944$ 989,596$ 972,031$ 927,977 Northern 782,911 771,844 758,815 711,702 724,695 Southern 664,770 700,937 713,592 729,368 725,892 St. Louis 994,197 951,505 934,974 915,126 896,005 Total Community Bank 3,426,979 3,403,230 3,396,977 3,328,227 3,274,569 Specialty nance 560,102 532,070 613,514 668,183 642,167 Non-core loan program and other (1) 295,747 308,404 328,082 355,594 950,851 Total loans $4,282,828$4,243,704$4,338,573$4,352,004$4,867,587 Deposit Portfolio Mix Noninterest-bearing demand $ 973,388$1,010,128$1,013,808$1,040,411$1,015,930 Interest-bearing: Checking 2,155,193 2,094,880 1,886,212 1,855,215 1,996,501 Money market 1,306,610 1,242,303 1,295,781 1,248,942 1,240,885 Savings 498,397 640,292 495,899 487,742 486,953 Time 666,749 694,642 723,055 748,942 804,740 Brokered time 17,101 25,033 25,312 43,127 59,816 Total deposits $5,617,438$5,707,278$5,440,067$5,424,379$5,604,825 Deposit Portfolio by Channel Retail $2,890,419$3,003,073$2,904,695$2,823,064$2,791,085 Commercial 1,361,246 1,325,592 1,209,210 1,193,637 1,248,445 Public Funds 609,873 576,188 455,982 473,381 605,474 Wealth & Trust 249,209 243,549 242,977 265,747 263,765 Servicing 475,862 502,335 478,496 498,496 498,892 Brokered Deposits 17,106 25,033 125,949 143,192 167,228 Other 13,723 31,508 22,758 26,862 29,936 Total deposits $5,617,438$5,707,278$5,440,067$5,424,379$5,604,825 (1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to nance the sale of the GreenSky portfolio, and equipment nancing loans and leases.
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MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) Adjusted Earnings Reconciliation For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2026 2026 2026 2025 2025 Income (loss) before income tax expense (bene t) - GAAP $ 29,381 $ 25,783 $ 24,112 $ (3,248) $ 11,314 Adjustments to noninterest income: (Gain) loss on sales of investment securities, net — — 1,731 — (14) Gain on sale of mortgage servicing rights — — (2,077) — — (Gain) loss on limited partnership investments (18) 176 1,689 134 315 Total adjustments to noninterest income (18) 176 1,343 134 301 Adjustments to noninterest expense: Loss on sale of loan portfolios — — — (23,051) — Total adjustments to noninterest expense — — — (23,051) — Adjusted earnings pre-tax - non-GAAP 29,363 25,959 25,455 19,937 11,615 Adjusted earnings tax expense 6,579 5,941 6,002 5,726 3,836 Adjusted earnings - non-GAAP 22,784 20,018 19,453 14,211 7,779 Preferred stock dividends 2,229 2,228 2,228 2,228 2,229 Adjusted earnings available to common shareholders $ 20,555 $ 17,790 $ 17,225 $ 11,983 $ 5,550 Adjusted diluted earnings per common share $ 0.95 $ 0.82 $ 0.79 $ 0.54 $ 0.25 Adjusted Pre-Provision Net Revenue Reconciliation For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 Adjusted earnings pre-tax - non- GAAP $ 29,363 $ 25,959 $ 25,455 $ 19,937 $ 11,615 Provision for credit losses 3,735 6,819 5,003 11,625 20,005 Adjusted pre-provision net revenue $ 33,098 $ 32,778 $30,458 $ 31,562 $ 31,620 Adjusted pre-provision net revenue to average assets (annualized) 1.96% 2.01% 1.91% 1.86% 1.81% Return on Average Tangible Common Equity For the Three Months Ended
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September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 Net income available to common shareholders $ 20,579 $ 17,660 $ 16,235 $ (5,116)$ 5,328 Average total shareholders' equity—GAAP $566,982 $561,753 $569,482 $582,698 $576,431 Adjustments: Preferred stock (110,548) (110,548) (110,548) (110,548) (110,548) Goodwill (7,927) (7,927) (7,927) (7,927) (7,927) Other intangible assets, net (7,159) (7,813) (8,487) (9,320) (9,978) Average tangible common equity $441,348 $435,465 $442,520 $454,903 $447,978 Return on average tangible common equity (annualized) 18.50% 16.27% 14.88%(4.46) % 4.72% MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)(continued) Ef ciency Ratio Reconciliation For the Three Months Ended September 30, June 30, March 31, December 31, September 30, (dollars in thousands) 2026 2026 2026 2025 2025 Noninterest expense - GAAP $ 52,843 $ 50,755 $50,424 $ 77,192 $ 49,814 Loss on sale of loan portfolios — — — (23,051) — Adjusted noninterest expense $ 52,843 $ 50,755 $50,424 $ 54,141 $ 49,814 Net interest income - GAAP $ 62,722 $ 59,589 $ 57,417 $ 58,702 $ 61,117 Effect of tax-exempt income 202 207 218 221 209 Adjusted net interest income 62,924 59,796 57,635 58,923 61,326 Noninterest income - GAAP 23,237 23,768 22,122 26,867 20,016 (Gain) loss on sales of investment securities, net — — 1,731 — (14) Gain on sale of mortgage servicing rights — — (2,077) — — (Gain) loss on limited partnership investments (18) 176 1,689 134 315 Adjusted noninterest income 23,219 23,944 23,465 27,001 20,317 Adjusted total revenue $ 86,143 $ 83,740 $ 81,100 $ 85,924 $ 81,643 Ef ciency ratio 61.34% 60.61% 62.17% 63.01% 61.01% Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share As of
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September 30, June 30, March 31, December 31, September 30, (dollars in thousands, except per share data) 2026 2026 2026 2025 2025 Shareholders' Equity to Tangible Common Equity Total shareholders' equity —GAAP $ 531,367 $ 569,688 $ 558,954 $ 565,499 $ 584,001 Adjustments: Preferred stock (110,548) (110,548) (110,548) (110,548) (110,548) Goodwill (7,927) (7,927) (7,927) (7,927) (7,927) Other intangible assets, net (6,849) (7,495) (8,159) (8,876) (9,619) Tangible common equity $ 406,043 $ 443,718 $ 432,320 $ 438,148 $ 455,907 Less: Accumulated other comprehensive loss (AOCI) (122,197) (67,931) (69,582) (60,333) (62,966) Tangible common equity, excluding AOCI $ 528,240 $ 511,649 $ 501,902 $ 498,481 $ 518,873 Total Assets to Tangible Assets: Total assets—GAAP $6,816,842 $6,700,616 $6,547,963 $6,513,420 $ 6,911,515 Adjustments: Goodwill (7,927) (7,927) (7,927) (7,927) (7,927) Other intangible assets, net (6,849) (7,495) (8,159) (8,876) (9,619) Tangible assets $6,802,066 $6,685,194 $6,531,877 $6,496,617 $6,893,969 Common Shares Outstanding 20,801,859 20,725,814 20,813,975 21,169,854 21,543,557 Tangible Common Equity to Tangible Assets 5.97% 6.64% 6.62% 6.74% 6.61% Tangible Book Value Per Share $ 19.52 $ 21.41 $ 20.77 $ 20.70 $ 21.16 Tangible Book Value Per Share, excluding AOCI $ 25.39 $ 24.69 $ 24.11 $ 23.55 $ 24.08 A PDF accompanying this announcement is available at: http://ml.globenewswire.com/Resource/Download/b44a02c8-6774-4b9a-85d3-b36bef4cca8a Attachments: 01-MSBI 3Q26 Earnings Presentation.pdf