Midland States Bancorp, Inc. Announces 2026 Third Quarter Results

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%
Net 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,
(dollars in thousands)		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 https://www.midlandsb.com/ or 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 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 jludwig@midlandsb.com or (217) 342-7321
Claire A. Stack, Chief Financial Officer, at cstack@midlandsb.com 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: http://ml.globenewswire.com/Resource/Download/b44a02c8-6774-4b9a-85d3-b36bef4cca8a