MSBIP · Midland States Bancorp, Inc.

Midland States Bancorp reported a strong rebound in Q1 2026, with GAAP net income of $18.5 million ($0.74 per diluted share) compared to a net loss of $2.9 million in Q4 2025. Adjusted diluted EPS was $0.79, exceeding the prior quarter's $0.54. The improvement was driven by a 17 bps expansion in net interest margin to 3.91%, as deposit costs fell 14 bps to 1.81% and loan yields edged up 2 bps. New loan originations averaged approximately 6.6%. Community Bank loans grew $68.8 million (8.3% annualized), while total loans declined $13.4 million due to anticipated runoff in specialty finance and non-core portfolios. Provision for credit losses decreased sharply to $5.0 million from $11.6 million, reflecting improved credit quality. Non-performing assets fell $6.8 million to 0.91% of total assets, down 10 bps. Noninterest income was $22.1 million, down from $26.9 million in Q4, primarily due to lower credit enhancement income. Noninterest expenses dropped to $50.4 million from $77.2 million, which included elevated charges in the prior quarter. The efficiency ratio improved to 62.2% from 63.0%. The company maintained strong capital levels, with CET1 ratio of 9.98% and total capital ratio of 15.27%, both up from Q4. The board's $25 million share repurchase plan had $7.6 million remaining. Management highlighted ongoing reduction of non-core loans, growth in commercial banking, and acceleration in wealth management as key strategic priorities.