Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today
reported net income of $12.8 million, or $0.51 diluted earnings per
share, for the fourth quarter of 2019, which included $3.3 million
in integration and acquisition expenses and a $1.8 million loss on
the repurchase of subordinated debt. This compares to net
income of $12.7 million, or $0.51 diluted earnings per share, for
the third quarter of 2019, which included $5.3 million in
integration and acquisition expenses, and net income of $16.3
million, or $0.67 diluted earnings per share, for the fourth
quarter of 2018.
Jeffrey G. Ludwig, President and Chief Executive Officer of the
Company, said, “We completed 2019 with a strong quarter of business
development highlighted by growth in both loans and deposits.
Our focus on developing new depository products for commercial
customers is having a positive impact on our core deposit
gathering, resulting in steady improvement in our deposit
mix. We believe we are well positioned to create additional
value for shareholders in 2020. Through a combination of
modest balance sheet growth, realizing the full synergies from our
acquisition of HomeStar Financial Group, driving additional
efficiencies throughout our organization, and expanding our net
interest margin through a reduction in our funding costs, we
believe we can deliver solid earnings growth and an improvement in
our return on assets and equity.”
Adjustment in Staffing Levels
In January 2020, the Company reduced its staffing by
approximately 50 full-time employee positions, representing
approximately 5% of the Company’s workforce. The Company
expects to record $0.7 - $0.8 million in one-time charges related
to the staffing level adjustments in the first quarter of
2020. The staffing level adjustments are expected to result
in approximately $3.9 million in annualized cost savings, beginning
in the second quarter of 2020.
Approximately 30% of the staffing adjustments are within the
Company’s retail branches, with the remaining adjustments primarily
occurring within back office support and non-revenue generating
positions.
Factors Affecting Comparability
The Company acquired HomeStar Financial Group, Inc. (“HomeStar”)
in July 2019, with the core system conversion completed in October
2019. The financial position and results of operations of HomeStar
prior to its acquisition date are not included in the Company’s
financial results.
Adjusted Earnings
Financial results for the fourth quarter of 2019 included $3.3
million in integration and acquisition expenses, a $1.8 million
loss on the repurchase of subordinated debt, and a $0.6 million
gain on the sale of investment securities. Excluding these
amounts and certain other expenses and income, adjusted earnings
were $16.1 million, or $0.64 diluted earnings per share, for the
fourth quarter of 2019.
Financial results for the third quarter of 2019 included $5.3
million in integration and acquisition expenses. Excluding
these amounts and certain other expenses and income, adjusted
earnings were $16.4 million, or $0.66 diluted earnings per share,
for the third quarter of 2019.
A reconciliation of adjusted earnings to net income according to
accounting principles generally accepted in the United States
(“GAAP”) is provided in the financial tables at the end of this
press release.
Net Interest Margin
Net interest margin for the fourth quarter of 2019 was 3.56%,
compared to 3.70% for the third quarter of 2019. The
Company’s net interest margin benefits from accretion income on
purchased loan portfolios, which contributed 23 and 20 basis points
to net interest margin in the fourth quarter of 2019 and third
quarter of 2019, respectively. Excluding the impact of
accretion income, net interest margin decreased 17 basis points
from the third quarter of 2019, primarily due to the impact of new
subordinated debt issued in September 2019 and a decline in the
yield on earning assets.
Relative to the fourth quarter of 2018, net interest margin
decreased from 3.85%. Accretion income on purchased loan
portfolios contributed 31 basis points to net interest margin in
the fourth quarter of 2018. Excluding the impact of accretion
income, net interest margin decreased 21 basis points compared to
the fourth quarter of 2018, primarily due to the impact of new
subordinated debt issued in September 2019, a decline in the yield
on earning assets and an increase in the costs of interest-bearing
deposits.
Net Interest Income
Net interest income for the fourth quarter of 2019 was $48.7
million, a decrease of 1.5% from $49.5 million for the third
quarter of 2019. Excluding accretion income, net interest
income decreased $1.3 million from the prior quarter.
Accretion income associated with purchased loan portfolios totaled
$3.6 million for the fourth quarter of 2019, compared with $3.1
million for the third quarter of 2019.
Relative to the fourth quarter of 2018, net interest income
increased $0.2 million, or 0.3%. Accretion income for the
fourth quarter of 2018 was $4.3 million. Excluding the impact
of accretion income, net interest income increased primarily due to
the contribution of HomeStar.
Noninterest Income
Noninterest income for the fourth quarter of 2019 was $19.0
million, a decrease of 3.0% from $19.6 million for the third
quarter of 2019. The decrease was primarily attributable to
declines in most major noninterest income items, partially offset
by a $0.6 million gain on sale of investment securities.
Relative to the fourth quarter of 2018, noninterest income
decreased 10.2% from $21.2 million. The decrease was
primarily attributable to lower commercial FHA, wealth management
and residential mortgage banking revenue.
Wealth management revenue for the fourth quarter of 2019 was
$5.4 million, a decrease of 10.4% from $6.0 million in the third
quarter of 2019, primarily due to a decline in estate fees.
Compared to the fourth quarter of 2018, wealth management revenue
decreased 4.8%.
Commercial FHA revenue for the fourth quarter of 2019 was $2.1
million, compared to $2.9 million in the third quarter of
2019. Commercial FHA revenue in the fourth quarter of 2019
included a $1.6 million mortgage servicing rights (“MSR”)
impairment, compared to a $1.1 million MSR impairment recorded in
the third quarter of 2019. The Company originated $84.9
million in rate lock commitments during the fourth quarter of 2019,
compared to $112.8 million in the prior quarter. Compared to
the fourth quarter of 2018, commercial FHA revenue decreased $2.1
million.
Noninterest Expense
Noninterest expense for the fourth quarter of 2019 was $46.3
million, which included $3.3 million in integration and acquisition
expenses, a $1.8 million loss on the repurchase of subordinated
debt, and a $0.1 million loss on MSR held for sale, compared with
$48.0 million for the third quarter of 2019, which included $5.3
million in integration and acquisition expenses and a $0.1 million
gain on MSR held for sale. Excluding integration and
acquisition expenses, the loss on the repurchase of subordinated
debt, and gain/loss on MSR held for sale, the $1.7 million decrease
in noninterest expense primarily reflects additional cost savings
realized after the core system conversion of HomeStar in October
2019.
Relative to the fourth quarter of 2018, noninterest expense
increased 2.1% from $45.4 million, which included $0.6 million in
integration and acquisition expenses. Excluding integration
and acquisition expenses, the loss on the repurchase of
subordinated debt, and loss on MSR held for sale, noninterest
expense decreased 8.3% from $44.8 million, primarily due to cost
reduction initiatives implemented across the organization.
Loan Portfolio
Total loans outstanding were $4.40 billion at December 31, 2019,
compared with $4.33 billion at September 30, 2019 and $4.14 billion
at December 31, 2018. The increase in total loans from
September 30, 2019 was attributable to growth in the commercial
loans and leases and consumer loan portfolios, partially offset by
a decline in the commercial real estate loan portfolio.
Equipment finance balances increased $66.8 million from September
30, 2019, which are booked within the commercial loans and leases
portfolio, reflecting management’s efforts to grow the equipment
finance business. The increase in total loans from December
31, 2018 was primarily attributable to the addition of HomeStar’s
loan portfolio.
Deposits
Total deposits were $4.54 billion at December 31, 2019, compared
with $4.45 billion at September 30, 2019, and $4.07 billion at
December 31, 2018. The increase in total deposits from
September 30, 2019 was primarily attributable to growth in the
Company’s lower-cost deposit categories, while the increase from
December 31, 2018 was primarily attributable to the addition of
HomeStar’s deposits.
Asset Quality
Nonperforming loans totaled $42.1 million, or 0.96% of total
loans, at December 31, 2019, compared with $45.2 million, or 1.04%
of total loans, at September 30, 2019, and $42.9 million, or 1.04%
of total loans, at December 31, 2018.
Net charge-offs for the fourth quarter of 2019 were $2.2
million, or 0.20% of average loans on an annualized
basis.
The Company recorded a provision for loan losses of $5.3 million
for the fourth quarter of 2019, which included a $1.4 million
specific reserve established for an existing nonperforming
loan. The Company’s allowance for loan losses was 0.64% of
total loans and 66.6% of nonperforming loans at December 31, 2019,
compared with 0.58% of total loans and 55.3% of nonperforming loans
at September 30, 2019. Fair market value discounts recorded
in connection with acquired loan portfolios represented 0.39% of
total loans at December 31, 2019, compared with 0.51% of total
loans at September 30, 2019.
Capital
At December 31, 2019, the Company exceeded all regulatory
capital requirements under Basel III and was considered to be a
‘‘well-capitalized’’ financial institution, as summarized in the
following table:
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|
|
|
December 31,2019 |
Fully Phased-In RegulatoryGuidelines Minimum (2) |
Total capital to risk-weighted assets |
14.72% |
10.50% |
Tier 1 capital to risk-weighted assets |
10.52% |
8.50% |
Tier 1 leverage ratio |
8.74% |
4.00% |
Common equity Tier 1 capital |
9.20% |
7.00% |
Tangible common equity to tangible assets (1) |
7.74% |
NA |
- A non-GAAP financial measure. Refer to page 14 for a
reconciliation to the comparable GAAP financial measure.
- As of January 1, 2019, the capital conservation buffer was
fully phased in at 2.5%.
Stock Repurchase Program
During the fourth quarter of 2019, the Company repurchased
85,146 shares of its common stock at a weighted average price of
$25.69 under its stock repurchase program, which authorized the
repurchase of up to $25 million of its common stock. As of
December 31, 2019, the Company had $21.0 million remaining under
the current stock repurchase authorization.
Conference Call, Webcast and Slide
Presentation
The Company will host a conference call and webcast at 7:30 a.m.
Central Time on Friday, January 24, 2020, to discuss its financial
results. The call can be accessed via telephone at (877)
516-3531; conference ID: 6894396. A recorded replay can be
accessed through January 31, 2020, by dialing (855) 859-2056;
conference ID: 6894396.
A slide presentation relating to the fourth quarter 2019 results
will be accessible prior to the scheduled conference call.
The slide presentation and webcast of the conference call can be
accessed on the Webcasts and Presentations page of the Company’s
investor relations website at investors.midlandsb.com under the
“News and Events” tab.
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 December 31, 2019,
the Company had total assets of approximately $6.08 billion, and
its Wealth Management Group had assets under administration of
approximately $3.41 billion. Midland provides a full range of
commercial and consumer banking products and services, business
equipment financing, merchant credit card services, trust and
investment management, and insurance and financial planning
services. In addition, multi-family and healthcare facility FHA
financing is provided through Love Funding, Midland’s non-bank
subsidiary. For additional information, visit
https://www.midlandsb.com/ or follow Midland on LinkedIn at
https://www.linkedin.com/company/midland-states-bank.
Non-GAAP Financial Measures
Some of the financial measures included in this press release
are not measures of financial performance recognized in accordance
with GAAP. These non-GAAP financial measures include
“Adjusted Earnings,” “Adjusted Diluted Earnings Per Common Share,”
“Adjusted Return on Average Assets,” “Adjusted Return on Average
Shareholders’ Equity,” “Adjusted Return on Average Tangible Common
Equity,” “Efficiency Ratio,” “Tangible Common Equity to Tangible
Assets,” “Tangible Book Value Per Share” and “Return on Average
Tangible Common Equity.” The Company believes these non-GAAP
financial measures provide both management and investors a more
complete understanding of the Company’s funding profile and
profitability. 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, this presentation 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. These
statements are subject to many risks and uncertainties, including
changes in interest rates and other general economic, business and
political conditions, including changes in the financial markets;
changes in business plans as circumstances warrant; risks relating
to acquisitions; and other risks detailed from time to time in
filings made by the Company with the Securities and Exchange
Commission. 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," "propose,"
"may," "plan," "seek," "expect," "intend," "estimate,"
"anticipate," "believe," "continue," 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 jludwig@midlandsb.com or (217) 342-7321Eric T. Lemke, Chief
Financial Officer, at elemke@midlandsb.com or (217) 342-7321Douglas
J. Tucker, SVP and Corporate Counsel, at dtucker@midlandsb.com or
(217) 342-7321
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MIDLAND
STATES BANCORP, INC. |
CONSOLIDATED
FINANCIAL SUMMARY (unaudited) |
|
|
|
For the Quarter Ended |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(dollars in
thousands, except per share data) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Earnings Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
48,687 |
|
|
$ |
49,450 |
|
|
$ |
46,077 |
|
|
$ |
45,601 |
|
|
$ |
48,535 |
|
Provision
for loan losses |
|
|
5,305 |
|
|
|
4,361 |
|
|
|
4,076 |
|
|
|
3,243 |
|
|
|
3,467 |
|
Noninterest
income |
|
|
19,014 |
|
|
|
19,606 |
|
|
|
19,587 |
|
|
|
17,075 |
|
|
|
21,170 |
|
Noninterest
expense |
|
|
46,325 |
|
|
|
48,025 |
|
|
|
40,194 |
|
|
|
41,097 |
|
|
|
45,375 |
|
Income
before income taxes |
|
|
16,071 |
|
|
|
16,670 |
|
|
|
21,394 |
|
|
|
18,336 |
|
|
|
20,863 |
|
Income
taxes |
|
|
3,279 |
|
|
|
4,015 |
|
|
|
5,039 |
|
|
|
4,354 |
|
|
|
4,527 |
|
Net
income |
|
|
12,792 |
|
|
|
12,655 |
|
|
|
16,355 |
|
|
|
13,982 |
|
|
|
16,336 |
|
Preferred
stock dividends, net |
|
|
- |
|
|
|
(22) |
|
|
|
34 |
|
|
|
34 |
|
|
|
34 |
|
Net income
available to common shareholders |
|
$ |
12,792 |
|
|
$ |
12,677 |
|
|
$ |
16,321 |
|
|
$ |
13,948 |
|
|
$ |
16,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per common share |
|
$ |
0.51 |
|
|
$ |
0.51 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
$ |
0.67 |
|
Weighted
average shares outstanding - diluted |
|
|
24,761,960 |
|
|
|
24,684,529 |
|
|
|
24,303,211 |
|
|
|
24,204,661 |
|
|
|
24,200,346 |
|
Return on
average assets |
|
|
0.83 |
% |
|
|
0.84 |
% |
|
|
1.17 |
% |
|
|
1.01 |
% |
|
|
1.14 |
% |
Return on
average shareholders' equity |
|
|
7.71 |
% |
|
|
7.71 |
% |
|
|
10.43 |
% |
|
|
9.23 |
% |
|
|
10.81 |
% |
Return on
average tangible common equity (1) |
|
|
11.24 |
% |
|
|
11.19 |
% |
|
|
15.34 |
% |
|
|
13.79 |
% |
|
|
16.40 |
% |
Net interest
margin |
|
|
3.56 |
% |
|
|
3.70 |
% |
|
|
3.76 |
% |
|
|
3.73 |
% |
|
|
3.85 |
% |
Efficiency
ratio (1) |
|
|
59.46 |
% |
|
|
60.63 |
% |
|
|
61.58 |
% |
|
|
64.73 |
% |
|
|
65.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Performance Summary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
earnings (1) |
|
$ |
16,110 |
|
|
$ |
16,422 |
|
|
$ |
16,196 |
|
|
$ |
14,098 |
|
|
$ |
16,397 |
|
Adjusted
diluted earnings per common share (1) |
|
$ |
0.64 |
|
|
$ |
0.66 |
|
|
$ |
0.66 |
|
|
$ |
0.58 |
|
|
$ |
0.67 |
|
Adjusted
return on average assets (1) |
|
|
1.04 |
% |
|
|
1.09 |
% |
|
|
1.16 |
% |
|
|
1.02 |
% |
|
|
1.14 |
% |
Adjusted
return on average shareholders' equity (1) |
|
|
9.71 |
% |
|
|
10.01 |
% |
|
|
10.33 |
% |
|
|
9.31 |
% |
|
|
10.85 |
% |
Adjusted
return on average tangible common equity (1) |
|
|
14.15 |
% |
|
|
14.52 |
% |
|
|
15.19 |
% |
|
|
13.90 |
% |
|
|
16.46 |
% |
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
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(1) Non-GAAP financial
measures. Refer to pages 13 - 15 for a reconciliation to the
comparable GAAP financial measures. |
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MIDLAND
STATES BANCORP, INC. |
CONSOLIDATED
FINANCIAL SUMMARY (unaudited) (continued) |
|
|
|
|
For the Quarter Ended |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(in
thousands, except per share data) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Net interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
64,444 |
|
|
$ |
65,006 |
|
|
|
$ |
60,636 |
|
|
|
$ |
59,432 |
|
|
$ |
61,592 |
|
Interest expense |
|
|
15,757 |
|
|
|
15,556 |
|
|
|
|
14,559 |
|
|
|
|
13,831 |
|
|
|
13,057 |
|
Net interest income |
|
|
48,687 |
|
|
|
49,450 |
|
|
|
|
46,077 |
|
|
|
|
45,601 |
|
|
|
48,535 |
|
Provision for loan losses |
|
|
5,305 |
|
|
|
4,361 |
|
|
|
|
4,076 |
|
|
|
|
3,243 |
|
|
|
3,467 |
|
Net interest income after provision for loan losses |
|
|
43,382 |
|
|
|
45,089 |
|
|
|
|
42,001 |
|
|
|
|
42,358 |
|
|
|
45,068 |
|
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management revenue |
|
|
5,377 |
|
|
|
5,998 |
|
|
|
|
5,504 |
|
|
|
|
4,953 |
|
|
|
5,651 |
|
Commercial FHA revenue |
|
|
2,089 |
|
|
|
2,894 |
|
|
|
|
4,917 |
|
|
|
|
3,270 |
|
|
|
4,194 |
|
Residential mortgage banking revenue |
|
|
763 |
|
|
|
720 |
|
|
|
|
611 |
|
|
|
|
834 |
|
|
|
1,041 |
|
Service charges on deposit accounts |
|
|
2,860 |
|
|
|
3,008 |
|
|
|
|
2,639 |
|
|
|
|
2,520 |
|
|
|
2,976 |
|
Interchange revenue |
|
|
3,053 |
|
|
|
3,249 |
|
|
|
|
3,010 |
|
|
|
|
2,680 |
|
|
|
2,941 |
|
Gain on sales of investment securities, net |
|
|
635 |
|
|
|
25 |
|
|
|
|
14 |
|
|
|
|
- |
|
|
|
469 |
|
Other income |
|
|
4,237 |
|
|
|
3,712 |
|
|
|
|
2,892 |
|
|
|
|
2,818 |
|
|
|
3,898 |
|
Total noninterest income |
|
|
19,014 |
|
|
|
19,606 |
|
|
|
|
19,587 |
|
|
|
|
17,075 |
|
|
|
21,170 |
|
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
23,650 |
|
|
|
25,083 |
|
|
|
|
21,134 |
|
|
|
|
22,039 |
|
|
|
23,020 |
|
Occupancy and equipment |
|
|
4,637 |
|
|
|
4,793 |
|
|
|
|
4,500 |
|
|
|
|
4,832 |
|
|
|
4,914 |
|
Data processing |
|
|
6,261 |
|
|
|
5,443 |
|
|
|
|
4,987 |
|
|
|
|
4,891 |
|
|
|
5,660 |
|
Professional |
|
|
1,952 |
|
|
|
2,348 |
|
|
|
|
2,410 |
|
|
|
|
2,073 |
|
|
|
2,752 |
|
Amortization of intangible assets |
|
|
1,804 |
|
|
|
1,803 |
|
|
|
|
1,673 |
|
|
|
|
1,810 |
|
|
|
1,852 |
|
Loss (gain) on mortgage servicing rights held for sale |
|
|
95 |
|
|
|
(70 |
) |
|
|
|
(515 |
) |
|
|
|
- |
|
|
|
- |
|
Other expense |
|
|
7,926 |
|
|
|
8,625 |
|
|
|
|
6,005 |
|
|
|
|
5,452 |
|
|
|
7,177 |
|
Total noninterest expense |
|
|
46,325 |
|
|
|
48,025 |
|
|
|
|
40,194 |
|
|
|
|
41,097 |
|
|
|
45,375 |
|
Income
before income taxes |
|
|
16,071 |
|
|
|
16,670 |
|
|
|
|
21,394 |
|
|
|
|
18,336 |
|
|
|
20,863 |
|
Income
taxes |
|
|
3,279 |
|
|
|
4,015 |
|
|
|
|
5,039 |
|
|
|
|
4,354 |
|
|
|
4,527 |
|
Net income |
|
|
12,792 |
|
|
|
12,655 |
|
|
|
|
16,355 |
|
|
|
|
13,982 |
|
|
|
16,336 |
|
Preferred
stock dividends, net |
|
|
- |
|
|
|
(22 |
) |
|
|
|
34 |
|
|
|
|
34 |
|
|
|
34 |
|
Net income available to common shareholders |
|
$ |
12,792 |
|
|
$ |
12,677 |
|
|
|
$ |
16,321 |
|
|
|
$ |
13,948 |
|
|
$ |
16,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.52 |
|
|
$ |
0.51 |
|
|
|
$ |
0.67 |
|
|
|
$ |
0.58 |
|
|
$ |
0.68 |
|
Diluted
earnings per common share |
|
$ |
0.51 |
|
|
$ |
0.51 |
|
|
|
$ |
0.67 |
|
|
|
$ |
0.57 |
|
|
$ |
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
STATES BANCORP, INC. |
CONSOLIDATED
FINANCIAL SUMMARY (unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(in
thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
394,505 |
|
|
|
$ |
409,346 |
|
|
|
$ |
245,415 |
|
|
|
$ |
276,480 |
|
|
|
$ |
213,700 |
|
Investment
securities |
|
|
655,054 |
|
|
|
|
668,630 |
|
|
|
|
613,026 |
|
|
|
|
656,152 |
|
|
|
|
660,785 |
|
Loans |
|
|
4,401,410 |
|
|
|
|
4,328,835 |
|
|
|
|
4,073,527 |
|
|
|
|
4,092,106 |
|
|
|
|
4,137,551 |
|
Allowance
for loan losses |
|
|
(28,028 |
) |
|
|
|
(24,917 |
) |
|
|
|
(25,925 |
) |
|
|
|
(23,091 |
) |
|
|
|
(20,903 |
) |
Total loans, net |
|
|
4,373,382 |
|
|
|
|
4,303,918 |
|
|
|
|
4,047,602 |
|
|
|
|
4,069,015 |
|
|
|
|
4,116,648 |
|
Loans held
for sale |
|
|
16,431 |
|
|
|
|
88,322 |
|
|
|
|
22,143 |
|
|
|
|
16,851 |
|
|
|
|
30,401 |
|
Premises and
equipment, net |
|
|
91,055 |
|
|
|
|
93,896 |
|
|
|
|
94,824 |
|
|
|
|
94,514 |
|
|
|
|
94,840 |
|
Other real
estate owned |
|
|
6,745 |
|
|
|
|
4,890 |
|
|
|
|
3,797 |
|
|
|
|
2,020 |
|
|
|
|
3,483 |
|
Loan
servicing rights, at lower of cost or fair value |
|
|
53,824 |
|
|
|
|
54,124 |
|
|
|
|
54,191 |
|
|
|
|
52,957 |
|
|
|
|
53,447 |
|
Mortgage
servicing rights held for sale |
|
|
1,972 |
|
|
|
|
1,860 |
|
|
|
|
159 |
|
|
|
|
257 |
|
|
|
|
3,545 |
|
Goodwill |
|
|
171,758 |
|
|
|
|
171,074 |
|
|
|
|
164,673 |
|
|
|
|
164,673 |
|
|
|
|
164,673 |
|
Other
intangible assets, net |
|
|
34,886 |
|
|
|
|
36,690 |
|
|
|
|
33,893 |
|
|
|
|
35,566 |
|
|
|
|
37,376 |
|
Cash
surrender value of life insurance policies |
|
|
142,423 |
|
|
|
|
141,510 |
|
|
|
|
140,593 |
|
|
|
|
139,686 |
|
|
|
|
138,783 |
|
Other
assets |
|
|
144,982 |
|
|
|
|
139,644 |
|
|
|
|
125,739 |
|
|
|
|
133,609 |
|
|
|
|
119,992 |
|
Total assets |
|
$ |
6,087,017 |
|
|
|
$ |
6,113,904 |
|
|
|
$ |
5,546,055 |
|
|
|
$ |
5,641,780 |
|
|
|
$ |
5,637,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
Noninterest-bearing deposits |
|
$ |
1,019,472 |
|
|
|
$ |
1,015,081 |
|
|
|
$ |
902,286 |
|
|
|
$ |
941,344 |
|
|
|
$ |
972,164 |
|
Interest-bearing deposits |
|
|
3,524,782 |
|
|
|
|
3,430,090 |
|
|
|
|
3,108,921 |
|
|
|
|
3,094,944 |
|
|
|
|
3,102,006 |
|
Total deposits |
|
|
4,544,254 |
|
|
|
|
4,445,171 |
|
|
|
|
4,011,207 |
|
|
|
|
4,036,288 |
|
|
|
|
4,074,170 |
|
Short-term
borrowings |
|
|
82,029 |
|
|
|
|
122,294 |
|
|
|
|
113,844 |
|
|
|
|
115,832 |
|
|
|
|
124,235 |
|
FHLB
advances and other borrowings |
|
|
493,311 |
|
|
|
|
559,932 |
|
|
|
|
582,387 |
|
|
|
|
669,009 |
|
|
|
|
640,631 |
|
Subordinated
debt |
|
|
176,653 |
|
|
|
|
192,689 |
|
|
|
|
94,215 |
|
|
|
|
94,174 |
|
|
|
|
94,134 |
|
Trust
preferred debentures |
|
|
48,288 |
|
|
|
|
48,165 |
|
|
|
|
48,041 |
|
|
|
|
47,918 |
|
|
|
|
47,794 |
|
Other
liabilities |
|
|
80,571 |
|
|
|
|
90,131 |
|
|
|
|
56,473 |
|
|
|
|
54,391 |
|
|
|
|
48,184 |
|
Total liabilities |
|
|
5,425,106 |
|
|
|
|
5,458,382 |
|
|
|
|
4,906,167 |
|
|
|
|
5,017,612 |
|
|
|
|
5,029,148 |
|
Total shareholders’ equity |
|
|
661,911 |
|
|
|
|
655,522 |
|
|
|
|
639,888 |
|
|
|
|
624,168 |
|
|
|
|
608,525 |
|
Total liabilities and shareholders’ equity |
|
$ |
6,087,017 |
|
|
|
$ |
6,113,904 |
|
|
|
$ |
5,546,055 |
|
|
|
$ |
5,641,780 |
|
|
|
$ |
5,637,673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
STATES BANCORP, INC. |
CONSOLIDATED
FINANCIAL SUMMARY (unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(in
thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Loan
Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
loans and leases |
|
$ |
1,387,766 |
|
|
$ |
1,292,511 |
|
|
$ |
1,149,370 |
|
|
$ |
1,122,621 |
|
|
$ |
1,074,935 |
|
Commercial
real estate |
|
|
1,526,504 |
|
|
|
1,622,363 |
|
|
|
1,524,369 |
|
|
|
1,560,427 |
|
|
|
1,639,155 |
|
Construction
and land development |
|
|
208,733 |
|
|
|
215,978 |
|
|
|
250,414 |
|
|
|
239,376 |
|
|
|
232,229 |
|
Residential
real estate |
|
|
568,291 |
|
|
|
587,984 |
|
|
|
552,406 |
|
|
|
569,051 |
|
|
|
578,048 |
|
Consumer |
|
|
710,116 |
|
|
|
609,999 |
|
|
|
596,968 |
|
|
|
600,631 |
|
|
|
613,184 |
|
Total loans |
|
$ |
4,401,410 |
|
|
$ |
4,328,835 |
|
|
$ |
4,073,527 |
|
|
$ |
4,092,106 |
|
|
$ |
4,137,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
1,019,472 |
|
|
$ |
1,015,081 |
|
|
$ |
902,286 |
|
|
$ |
941,344 |
|
|
$ |
972,164 |
|
Interest-bearing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
|
1,342,788 |
|
|
|
1,222,599 |
|
|
|
1,009,023 |
|
|
|
968,844 |
|
|
|
1,002,275 |
|
Money market |
|
|
787,662 |
|
|
|
753,869 |
|
|
|
732,573 |
|
|
|
802,036 |
|
|
|
862,171 |
|
Savings |
|
|
522,456 |
|
|
|
526,938 |
|
|
|
442,017 |
|
|
|
457,176 |
|
|
|
442,132 |
|
Time |
|
|
822,160 |
|
|
|
833,038 |
|
|
|
785,337 |
|
|
|
685,700 |
|
|
|
633,787 |
|
Brokered time |
|
|
49,716 |
|
|
|
93,646 |
|
|
|
139,971 |
|
|
|
181,188 |
|
|
|
161,641 |
|
Total deposits |
|
$ |
4,544,254 |
|
|
$ |
4,445,171 |
|
|
$ |
4,011,207 |
|
|
$ |
4,036,288 |
|
|
$ |
4,074,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
STATES BANCORP, INC. |
CONSOLIDATED
FINANCIAL SUMMARY (unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(dollars in
thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Average Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
406,526 |
|
|
$ |
259,427 |
|
|
$ |
162,110 |
|
|
$ |
152,078 |
|
|
$ |
155,280 |
|
Investment
securities |
|
|
631,294 |
|
|
|
666,157 |
|
|
|
636,946 |
|
|
|
654,764 |
|
|
|
676,483 |
|
Loans |
|
|
4,359,144 |
|
|
|
4,352,635 |
|
|
|
4,086,720 |
|
|
|
4,128,893 |
|
|
|
4,139,831 |
|
Loans held
for sale |
|
|
36,974 |
|
|
|
31,664 |
|
|
|
40,177 |
|
|
|
30,793 |
|
|
|
51,981 |
|
Nonmarketable equity securities |
|
|
43,745 |
|
|
|
44,010 |
|
|
|
44,217 |
|
|
|
44,279 |
|
|
|
42,708 |
|
Total interest-earning assets |
|
|
5,477,683 |
|
|
|
5,353,893 |
|
|
|
4,970,170 |
|
|
|
5,010,807 |
|
|
|
5,066,283 |
|
Non-earning
assets |
|
|
649,169 |
|
|
|
636,028 |
|
|
|
618,023 |
|
|
|
618,996 |
|
|
|
624,378 |
|
Total assets |
|
$ |
6,126,852 |
|
|
$ |
5,989,921 |
|
|
$ |
5,588,193 |
|
|
$ |
5,629,803 |
|
|
$ |
5,690,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
$ |
3,490,165 |
|
|
$ |
3,429,063 |
|
|
$ |
3,107,660 |
|
|
$ |
3,093,979 |
|
|
$ |
3,123,134 |
|
Short-term
borrowings |
|
|
104,598 |
|
|
|
124,183 |
|
|
|
120,859 |
|
|
|
135,337 |
|
|
|
143,869 |
|
FHLB
advances and other borrowings |
|
|
531,419 |
|
|
|
591,516 |
|
|
|
607,288 |
|
|
|
673,250 |
|
|
|
645,642 |
|
Subordinated
debt |
|
|
182,149 |
|
|
|
106,090 |
|
|
|
94,196 |
|
|
|
94,156 |
|
|
|
94,115 |
|
Trust
preferred debentures |
|
|
48,229 |
|
|
|
48,105 |
|
|
|
47,982 |
|
|
|
47,848 |
|
|
|
47,737 |
|
Total interest-bearing liabilities |
|
|
4,356,560 |
|
|
|
4,298,957 |
|
|
|
3,977,985 |
|
|
|
4,044,570 |
|
|
|
4,054,497 |
|
Noninterest-bearing deposits |
|
|
1,028,670 |
|
|
|
967,192 |
|
|
|
921,115 |
|
|
|
919,185 |
|
|
|
989,954 |
|
Other
noninterest-bearing liabilities |
|
|
83,125 |
|
|
|
72,610 |
|
|
|
60,363 |
|
|
|
51,838 |
|
|
|
46,487 |
|
Shareholders' equity |
|
|
658,497 |
|
|
|
651,162 |
|
|
|
628,730 |
|
|
|
614,210 |
|
|
|
599,723 |
|
Total liabilities and shareholders' equity |
|
$ |
6,126,852 |
|
|
$ |
5,989,921 |
|
|
$ |
5,588,193 |
|
|
$ |
5,629,803 |
|
|
$ |
5,690,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yields |
|
|
Earning
Assets |
|
|
Cash and cash equivalents |
|
|
1.62 |
% |
|
|
2.14 |
% |
|
|
2.43 |
% |
|
|
2.42 |
% |
|
|
2.24 |
% |
Investment securities |
|
|
3.10 |
% |
|
|
3.00 |
% |
|
|
3.11 |
% |
|
|
3.07 |
% |
|
|
3.04 |
% |
Loans |
|
|
5.22 |
% |
|
|
5.31 |
% |
|
|
5.32 |
% |
|
|
5.22 |
% |
|
|
5.28 |
% |
Loans held for sale |
|
|
4.12 |
% |
|
|
3.02 |
% |
|
|
4.50 |
% |
|
|
3.94 |
% |
|
|
3.92 |
% |
Nonmarketable equity securities |
|
|
5.31 |
% |
|
|
5.33 |
% |
|
|
5.42 |
% |
|
|
5.69 |
% |
|
|
5.20 |
% |
Total interest-earning assets |
|
|
4.70 |
% |
|
|
4.85 |
% |
|
|
4.94 |
% |
|
|
4.85 |
% |
|
|
4.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
1.03 |
% |
|
|
1.08 |
% |
|
|
1.09 |
% |
|
|
0.97 |
% |
|
|
0.86 |
% |
Short-term borrowings |
|
|
0.67 |
% |
|
|
0.68 |
% |
|
|
0.70 |
% |
|
|
0.71 |
% |
|
|
0.67 |
% |
FHLB advances and other borrowings |
|
2.26 |
% |
|
|
2.36 |
% |
|
|
2.34 |
% |
|
|
2.32 |
% |
|
|
2.26 |
% |
Subordinated debt |
|
|
5.94 |
% |
|
|
6.30 |
% |
|
|
6.43 |
% |
|
|
6.43 |
% |
|
|
6.43 |
% |
Trust preferred debentures |
|
|
6.41 |
% |
|
|
6.83 |
% |
|
|
7.17 |
% |
|
|
7.38 |
% |
|
|
6.93 |
% |
Total interest-bearing liabilities |
|
|
1.43 |
% |
|
|
1.44 |
% |
|
|
1.47 |
% |
|
|
1.39 |
% |
|
|
1.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Deposits |
|
|
0.80 |
% |
|
|
0.84 |
% |
|
|
0.84 |
% |
|
|
0.74 |
% |
|
|
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin |
|
|
3.56 |
% |
|
|
3.70 |
% |
|
|
3.76 |
% |
|
|
3.73 |
% |
|
|
3.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
STATES BANCORP, INC. |
CONSOLIDATED
FINANCIAL SUMMARY (unaudited) (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of and for the Quarter Ended |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(dollars in
thousands, except per share data) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89
days past due |
|
$ |
29,876 |
|
|
$ |
23,118 |
|
|
$ |
21,554 |
|
|
$ |
23,999 |
|
|
$ |
25,213 |
|
Nonperforming loans |
|
|
42,082 |
|
|
|
45,168 |
|
|
|
50,676 |
|
|
|
49,262 |
|
|
|
42,899 |
|
Nonperforming assets |
|
|
50,027 |
|
|
|
50,058 |
|
|
|
54,473 |
|
|
|
51,282 |
|
|
|
45,899 |
|
Net
charge-offs |
|
|
2,194 |
|
|
|
5,369 |
|
|
|
1,242 |
|
|
|
1,055 |
|
|
|
2,195 |
|
Loans 30-89
days past due to total loans |
|
|
0.68 |
% |
|
|
0.53 |
% |
|
|
0.53 |
% |
|
|
0.59 |
% |
|
|
0.61 |
% |
Nonperforming loans to total loans |
|
|
0.96 |
% |
|
|
1.04 |
% |
|
|
1.24 |
% |
|
|
1.20 |
% |
|
|
1.04 |
% |
Nonperforming assets to total assets |
|
|
0.82 |
% |
|
|
0.82 |
% |
|
|
0.98 |
% |
|
|
0.91 |
% |
|
|
0.81 |
% |
Allowance
for loan losses to total loans |
|
|
0.64 |
% |
|
|
0.58 |
% |
|
|
0.64 |
% |
|
|
0.56 |
% |
|
|
0.51 |
% |
Allowance for loan losses to nonperforming loans |
|
66.60 |
% |
|
|
55.29 |
% |
|
|
51.16 |
% |
|
|
46.87 |
% |
|
|
48.73 |
% |
Net
charge-offs to average loans |
|
|
0.20 |
% |
|
|
0.49 |
% |
|
|
0.12 |
% |
|
|
0.10 |
% |
|
|
0.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust assets
under administration |
|
$ |
3,409,959 |
|
|
$ |
3,281,260 |
|
|
$ |
3,125,869 |
|
|
$ |
3,097,091 |
|
|
$ |
2,945,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Market Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per share at period end |
|
$ |
27.10 |
|
|
$ |
26.93 |
|
|
$ |
26.66 |
|
|
$ |
26.08 |
|
|
$ |
25.50 |
|
Tangible
book value per share at period end (1) |
|
$ |
18.64 |
|
|
$ |
18.40 |
|
|
$ |
18.36 |
|
|
$ |
17.68 |
|
|
$ |
17.00 |
|
Market price
at period end |
|
$ |
28.96 |
|
|
$ |
26.05 |
|
|
$ |
26.72 |
|
|
$ |
24.06 |
|
|
$ |
22.34 |
|
Shares
outstanding at period end |
|
|
24,420,345 |
|
|
|
24,338,748 |
|
|
|
23,897,038 |
|
|
|
23,827,438 |
|
|
|
23,751,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
capital to risk-weighted assets |
|
|
14.72 |
% |
|
|
14.82 |
% |
|
|
13.49 |
% |
|
|
13.25 |
% |
|
|
12.79 |
% |
Tier 1
capital to risk-weighted assets |
|
|
10.52 |
% |
|
|
10.35 |
% |
|
|
10.85 |
% |
|
|
10.65 |
% |
|
|
10.25 |
% |
Tier 1
leverage ratio |
|
|
8.74 |
% |
|
|
8.77 |
% |
|
|
9.27 |
% |
|
|
8.92 |
% |
|
|
8.53 |
% |
Tier 1
common capital to risk-weighted assets |
|
|
9.20 |
% |
|
|
9.02 |
% |
|
|
9.38 |
% |
|
|
9.16 |
% |
|
|
8.76 |
% |
Tangible
common equity to tangible assets (1) |
|
|
7.74 |
% |
|
|
7.58 |
% |
|
|
8.20 |
% |
|
|
7.74 |
% |
|
|
7.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial
measures. Refer to pages 13 - 15 for a reconciliation to the
comparable GAAP financial measures. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
STATES BANCORP, INC. |
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(dollars in
thousands, except per share data) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Income before income taxes - GAAP |
|
$ |
16,071 |
|
|
|
$ |
16,670 |
|
|
|
$ |
21,394 |
|
|
|
$ |
18,336 |
|
|
$ |
20,863 |
|
|
Adjustments
to noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sales of investment securities, net |
|
|
635 |
|
|
|
|
25 |
|
|
|
|
14 |
|
|
|
|
- |
|
|
|
469 |
|
|
Other |
|
|
(6 |
) |
|
|
|
- |
|
|
|
|
(23 |
) |
|
|
|
- |
|
|
|
(1 |
) |
|
Total adjustments to noninterest income |
|
|
629 |
|
|
|
|
25 |
|
|
|
|
(9 |
) |
|
|
|
- |
|
|
|
468 |
|
|
Adjustments
to noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on mortgage servicing rights held for sale |
|
|
95 |
|
|
|
|
(70 |
) |
|
|
|
(515 |
) |
|
|
|
- |
|
|
|
- |
|
|
Loss on repurchase of subordinated debt |
|
|
1,778 |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Integration and acquisition expenses |
|
|
3,332 |
|
|
|
|
5,292 |
|
|
|
|
286 |
|
|
|
|
160 |
|
|
|
553 |
|
|
Total adjustments to noninterest expense |
|
|
5,205 |
|
|
|
|
5,222 |
|
|
|
|
(229 |
) |
|
|
|
160 |
|
|
|
553 |
|
|
Adjusted
earnings pre tax |
|
20,647 |
|
|
|
|
21,867 |
|
|
|
|
21,174 |
|
|
|
|
18,496 |
|
|
|
20,948 |
|
|
Adjusted
earnings tax |
|
|
4,537 |
|
|
|
|
5,445 |
|
|
|
|
4,978 |
|
|
|
|
4,398 |
|
|
|
4,551 |
|
|
Adjusted earnings - non-GAAP |
|
16,110 |
|
|
|
|
16,422 |
|
|
|
|
16,196 |
|
|
|
|
14,098 |
|
|
|
16,397 |
|
|
Preferred
stock dividends, net |
|
|
- |
|
|
|
|
(22 |
) |
|
|
|
34 |
|
|
|
|
34 |
|
|
|
34 |
|
|
Adjusted earnings available to common shareholders -
non-GAAP |
|
$ |
16,110 |
|
|
|
$ |
16,444 |
|
|
|
$ |
16,162 |
|
|
|
$ |
14,064 |
|
|
$ |
16,363 |
|
|
Adjusted
diluted earnings per common share |
|
$ |
0.64 |
|
|
|
$ |
0.66 |
|
|
|
$ |
0.66 |
|
|
|
$ |
0.58 |
|
|
$ |
0.67 |
|
|
Adjusted
return on average assets |
|
|
1.04 |
|
% |
|
|
1.09 |
|
% |
|
|
1.16 |
|
% |
|
|
1.02 |
% |
|
|
1.14 |
|
% |
Adjusted
return on average shareholders' equity |
|
|
9.71 |
|
% |
|
|
10.01 |
|
% |
|
|
10.33 |
|
% |
|
|
9.31 |
% |
|
|
10.85 |
|
% |
Adjusted
return on average tangible common equity |
|
|
14.15 |
|
% |
|
|
14.52 |
|
% |
|
|
15.19 |
|
% |
|
|
13.90 |
% |
|
|
16.46 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
STATES BANCORP, INC. |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(dollars in
thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Noninterest expense - GAAP |
|
$ |
46,325 |
|
|
|
$ |
48,025 |
|
|
|
$ |
40,194 |
|
|
|
$ |
41,097 |
|
|
|
$ |
45,375 |
|
|
(Loss) gain
on mortgage servicing rights held for sale |
|
|
(95 |
) |
|
|
|
70 |
|
|
|
|
515 |
|
|
|
|
- |
|
|
|
|
- |
|
|
Loss on
repurchase of subordinated debt |
|
|
(1,778 |
) |
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
|
|
- |
|
|
Integration
and acquisition expenses |
|
|
(3,332 |
) |
|
|
|
(5,292 |
) |
|
|
|
(286 |
) |
|
|
|
(160 |
) |
|
|
|
(553 |
) |
|
Adjusted noninterest expense |
|
$ |
41,120 |
|
|
|
$ |
42,803 |
|
|
|
$ |
40,423 |
|
|
|
$ |
40,937 |
|
|
|
$ |
44,822 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income - GAAP |
|
$ |
48,687 |
|
|
|
$ |
49,450 |
|
|
|
$ |
46,077 |
|
|
|
$ |
45,601 |
|
|
|
$ |
48,535 |
|
|
Effect of
tax-exempt income |
|
|
474 |
|
|
|
|
502 |
|
|
|
|
526 |
|
|
|
|
543 |
|
|
|
|
574 |
|
|
Adjusted net interest income |
|
|
49,161 |
|
|
|
|
49,952 |
|
|
|
|
46,603 |
|
|
|
|
46,144 |
|
|
|
|
49,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income - GAAP |
|
$ |
19,014 |
|
|
|
$ |
19,606 |
|
|
|
$ |
19,587 |
|
|
|
$ |
17,075 |
|
|
|
$ |
21,170 |
|
|
Loan
servicing rights impairment (recapture) |
|
|
1,613 |
|
|
|
|
1,060 |
|
|
|
|
(559 |
) |
|
|
|
25 |
|
|
|
|
(1,380 |
) |
|
Gain on
sales of investment securities, net |
|
(635 |
) |
|
|
|
(25 |
) |
|
|
|
(14 |
) |
|
|
|
- |
|
|
|
|
(469 |
) |
|
Other |
|
|
6 |
|
|
|
|
- |
|
|
|
|
23 |
|
|
|
|
- |
|
|
|
|
1 |
|
|
Adjusted noninterest income |
|
|
19,998 |
|
|
|
|
20,641 |
|
|
|
|
19,037 |
|
|
|
|
17,100 |
|
|
|
|
19,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total revenue |
|
$ |
69,159 |
|
|
|
$ |
70,593 |
|
|
|
$ |
65,640 |
|
|
|
$ |
63,244 |
|
|
|
$ |
68,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
|
59.46 |
|
% |
|
|
60.63 |
|
% |
|
|
61.58 |
|
% |
|
|
64.73 |
|
% |
|
|
65.50 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MIDLAND
STATES BANCORP, INC. |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
(continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity to Tangible Assets Ratio and
Tangible Book Value Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(dollars in
thousands, except per share data) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Shareholders' Equity to Tangible Common
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity—GAAP |
|
$ |
661,911 |
|
|
|
$ |
655,522 |
|
|
|
$ |
639,888 |
|
|
|
$ |
624,168 |
|
|
|
$ |
608,525 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
- |
|
|
|
|
- |
|
|
|
|
(2,684 |
) |
|
|
|
(2,733 |
) |
|
|
|
(2,781 |
) |
|
Goodwill |
|
|
(171,758 |
) |
|
|
|
(171,074 |
) |
|
|
|
(164,673 |
) |
|
|
|
(164,673 |
) |
|
|
|
(164,673 |
) |
|
Other
intangibles, net |
|
|
(34,886 |
) |
|
|
|
(36,690 |
) |
|
|
|
(33,893 |
) |
|
|
|
(35,566 |
) |
|
|
|
(37,376 |
) |
|
Tangible
common equity |
|
$ |
455,267 |
|
|
|
$ |
447,758 |
|
|
|
$ |
438,638 |
|
|
|
$ |
421,196 |
|
|
|
$ |
403,695 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets to Tangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets—GAAP |
|
$ |
6,087,017 |
|
|
|
$ |
6,113,904 |
|
|
|
$ |
5,546,055 |
|
|
|
$ |
5,641,780 |
|
|
|
$ |
5,637,673 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
(171,758 |
) |
|
|
|
(171,074 |
) |
|
|
|
(164,673 |
) |
|
|
|
(164,673 |
) |
|
|
|
(164,673 |
) |
|
Other
intangibles, net |
|
|
(34,886 |
) |
|
|
|
(36,690 |
) |
|
|
|
(33,893 |
) |
|
|
|
(35,566 |
) |
|
|
|
(37,376 |
) |
|
Tangible
assets |
|
$ |
5,880,373 |
|
|
|
$ |
5,906,140 |
|
|
|
$ |
5,347,489 |
|
|
|
$ |
5,441,541 |
|
|
|
$ |
5,435,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Shares Outstanding |
|
|
24,420,345 |
|
|
|
|
24,338,748 |
|
|
|
|
23,897,038 |
|
|
|
|
23,827,438 |
|
|
|
|
23,751,798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity to Tangible Assets |
|
|
7.74 |
|
% |
|
|
7.58 |
|
% |
|
|
8.20 |
|
% |
|
|
7.74 |
|
% |
|
|
7.43 |
|
% |
Tangible Book Value Per Share |
|
$ |
18.64 |
|
|
|
$ |
18.40 |
|
|
|
$ |
18.36 |
|
|
|
$ |
17.68 |
|
|
|
$ |
17.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Tangible Common Equity
(ROATCE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
(dollars in
thousands) |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
Net income
available to common shareholders |
|
$ |
12,792 |
|
|
|
$ |
12,677 |
|
|
|
$ |
16,321 |
|
|
|
$ |
13,948 |
|
|
|
$ |
16,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
total shareholders' equity—GAAP |
|
$ |
658,497 |
|
|
|
$ |
651,162 |
|
|
|
$ |
628,730 |
|
|
|
$ |
614,210 |
|
|
|
$ |
599,723 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
- |
|
|
|
|
(814 |
) |
|
|
|
(2,708 |
) |
|
|
|
(2,759 |
) |
|
|
|
(2,812 |
) |
|
Goodwill |
|
|
(171,082 |
) |
|
|
|
(166,389 |
) |
|
|
|
(164,673 |
) |
|
|
|
(164,673 |
) |
|
|
|
(164,051 |
) |
|
Other
intangibles, net |
|
|
(35,745 |
) |
|
|
|
(34,519 |
) |
|
|
|
(34,689 |
) |
|
|
|
(36,438 |
) |
|
|
|
(38,394 |
) |
|
Average
tangible common equity |
|
$ |
451,670 |
|
|
|
$ |
449,440 |
|
|
|
$ |
426,660 |
|
|
|
$ |
410,340 |
|
|
|
$ |
394,466 |
|
|
ROATCE |
|
|
11.24 |
|
% |
|
|
11.19 |
|
% |
|
|
15.34 |
|
% |
|
|
13.79 |
|
% |
|
|
16.40 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midland States Bancorp (NASDAQ:MSBI)
Historical Stock Chart
From Apr 2024 to May 2024
Midland States Bancorp (NASDAQ:MSBI)
Historical Stock Chart
From May 2023 to May 2024