Midland States Bancorp, Inc. Announces 2026 Third Quarter Results

(MENAFN- GlobeNewsWire - Nasdaq) 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.

2026 Third 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%
• N et 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 five basis points compared to prior quarter

Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:

“Our third quarter results reflect 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 profitable relationship growth, continued credit normalization and disciplined capital deployment to support long-term shareholder value.”

Financial Highlights and Key Performance Indicators

		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	%
Efficiency 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 financial measures. Refer to pages 10-12 for a reconciliation to the comparable GAAP financial 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 finance 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 finance 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 reflecting $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.
    
  • 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 five basis points to 4.03% in the third quarter of 2026, benefiting 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		$	1,333		3.55	%		$	108,157		$	987		3.66	%		$	78,567		$	849		4.29	%
Investment securities (1)			1,780,505			22,090		4.92				1,617,474			19,540		4.85				1,338,997			15,979		4.73
Loans (1)(2)			4,235,207			69,173		6.48				4,268,168			67,195		6.31				4,947,675			81,012		6.50
Loans held for sale			6,054			97		6.36				8,431			128		6.10				9,268			147		6.29
Nonmarketable equity securities			29,215			530		7.20				30,285			534		7.07				38,559			715		7.36
Total interest-earning assets			6,200,069			93,223		5.97				6,032,515			88,384		5.88				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		$	30,219		2.58	%
Short-term borrowings			42,059			349		3.29				28,521			202		2.84				54,839			499		3.61
FHLB advances & other borrowings			221,217			2,165		3.88				249,044			2,349		3.78				386,772			4,044		4.15
Subordinated debt			27,032			380		5.58				27,027			380		5.64				77,210			1,393		7.16
Trust preferred debentures			52,316			1,154		8.75				52,128			1,131		8.70				51,602			1,221		9.39
Total interest-bearing liabilities			5,063,325			30,299		2.37				4,869,417			28,588		2.35				5,214,878			37,376		2.84
Noninterest-bearing deposits			989,768							1,012,592							1,020,196
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				$	62,924		4.03	%				$	59,796		3.98	%				$	61,326		3.79	%
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 identified nonperforming commercial real estate relationships in the Community Bank portfolio, partially offset by a $0.8 million recovery on the payoff of another previously identified nonperforming commercial real estate relationship.
  
• Provision for credit losses on loans was $3.7 million for the third quarter of 2026, reflecting 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,
		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 qualifications to be a ''well-capitalized'' financial 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

(1) Non-GAAP financial measure. Refer to pages 10-12 for a reconciliation to the comparable GAAP financial 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 financial holding company headquartered in Effingham, 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 financial planning services. For additional information, visit or

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures calculated in accordance with GAAP.

These non-GAAP financial 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,”“Efficiency 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 financial measures provide both management and investors a more complete understanding of the Company's profitability and asset profile, and that the tangible asset-based measures are commonly used by investors in evaluating value of financial institutions and their equity securities. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial 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, inflation, deposit volatility and potential regulatory developments; the performance of our loan portfolio and our ability to manage credit risk; changes in the financial markets; the effects of armed conflict, 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 artificial 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 filings 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 identified 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 reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACTS:
Jeffrey G. Ludwig, President and CEO, at... or (217) 342-7321
Claire A. Stack, Chief Financial Officer, at... or (217) 342-7321

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)
		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
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 benefits			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 (benefit)			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.
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 finance 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 finance			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 finance the sale of the GreenSky portfolio, and equipment financing loans and leases.

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 (benefit) - 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
		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)
Efficiency 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
Efficiency 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
		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:

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