Midland States Bancorp (MSBI) investor relations material

Executive summary

• Q3 net income was $22.8 million, with $20.6 million available to common shareholders; diluted and adjusted diluted EPS were $0.95.

• Net interest margin rose to 4.03%; loans grew QoQ while deposits declined, and nonperforming asset indicators improved.

• Priorities include high-quality relationship growth, Wealth Management expansion, legacy-credit resolution, non-core runoff and operating leverage.

Financial highlights

• Net interest income was $62.7 million, versus $61.1 million YoY and $59.6 million in Q2; noninterest income was $23.2 million, versus $20.0 million YoY.

• Provision for credit losses was $3.7 million, versus $20.0 million YoY and $6.8 million in Q2; noninterest expense was $52.8 million, up from $50.8 million in Q2.

• Adjusted pre-provision net revenue was $33.1 million; adjusted PPNR to average assets was 1.96% annualized.

• Nine-month net income was $61.2 million versus a $121.4 million loss in 2025, which included a $154.0 million goodwill impairment charge.

Outlook and guidance

• Near-term quarterly operating expense run rate expected at $50.0 million-$52.0 million, including $3.0 million-$3.5 million of loan-related costs tied to third-party lending arrangements.

• Third-party lending arrangements expected to generate $2.5 million-$3.0 million of quarterly credit enhancement income near term; Q3 income was $3.1 million.

• Full-year effective tax rate expected at ~23%; priorities include profitable relationship growth, credit normalization and disciplined capital deployment.

• NII-at-Risk modeling projected higher first-year NII under each modeled rate shock scenario; results were within board policy limits.