Midland States Bancorp (MSBI) investor relations material

Executive summary

• Net interest margin rose to 3.91%, up 17 bps from last quarter, driven by lower deposit costs and improved securities mix.

• Net income available to common shareholders was $16.2 million ($0.74 per diluted share) in Q1 2026, reversing a net loss in prior quarters.

• Loans in the Community Bank segment grew $68.8 million (8.3% annualized), while total loans declined due to specialty finance runoff.

• Wealth Management assets under administration remained stable at $4.47 billion, with revenue of $8.2 million.

• Non-performing assets reduced by $6.8 million, with NPAs to assets at 0.91%, down 10 bps sequentially.

Financial highlights

• Fully diluted EPS was $0.74; adjusted diluted EPS was $0.79 for Q1 2026.

• Net interest income was $57.4 million, benefiting from a 14 bp reduction in deposit costs.

• Adjusted pre-provision net revenue (PPNR) was $30.5 million, or 1.91% of average assets.

• Provision for credit losses was $5.0 million, down from $11.8 million last quarter.

• Efficiency ratio improved to 62.2% from 63.0% last quarter.

Outlook and guidance

• Near-term focus on stable total assets, relationship community banking, and growing regulatory capital.

• Continued emphasis on efficiency and reduced credit costs expected in 2026.

• Effective tax rate for the full year is expected to be approximately 22%-23%.

• Nonperforming assets are trending toward a 0.75% target.