Midland States Bancorp (MSBI) investor relations material

Executive summary

• Net income available to common shareholders was $17.7 million ($0.82 per diluted share) for Q2 2026, up from $16.2 million ($0.74 per share) in Q1 2026 and $9.8 million ($0.44 per share) in Q2 2025, reflecting strong profitability and operational efficiency improvements.

• Return on average assets was 1.22% and return on average tangible common equity was 16.27% for Q2 2026.

• Total assets stood at $6.7 billion, with $4.2 billion in loans and $5.7 billion in deposits, highlighting a stable balance sheet and growth in core banking relationships.

• Wealth management achieved record assets under administration of $4.78 billion and record quarterly revenue of $8.8 million, driven by improved market performance and increased referrals.

• Adjusted pre-provision net revenue reached $32.8 million (2.01% of average assets), up from $30.5 million (1.91%) in Q1 2026.

Financial highlights

• Net interest margin rose to 3.98%, up 7 bps from the prior quarter, due to a favorable investment securities mix and lower funding costs.

• Total loans at June 30, 2026 were $4.24 billion, down $94.9 million from March 31, 2026, mainly from planned runoff in specialty finance and non-core portfolios, while Community Bank loans grew $6.3 million.

• Total deposits increased by $267.2 million to $5.71 billion, led by growth in checking, savings, retail, commercial, public funds, and servicing deposits, with a three bp decrease in cost of deposits and reduced reliance on brokered deposits.

• Noninterest income was $23.8 million, up from $22.1 million in Q1 2026; noninterest expense was stable at $50.8 million.

• Adjusted pre-provision net revenue was $32.8 million, with an efficiency ratio of 60.6%.

Outlook and guidance

• Focus remains on growing high-quality Community Bank relationships, expanding wealth management and fee income, reducing non-core portfolios, and driving operating leverage through technology.

• Management expects continued disciplined growth in Community Bank and expansion in wealth management.

• Effective tax rate for the full year is projected at approximately 23%, subject to changes in earnings mix and tax legislation.