Midland States Bancorp : Q2 2023 Midland States Bancorp, Inc. Earnings Presentation

Midland States Bancorp, Inc.

NASDAQ: MSBI

Second Quarter 2023 Earnings Presentation

Forward-Looking Statements. This presentation may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements expressing management's current expectations, forecasts of future events or long-term goals may be based upon beliefs, expectations and assumptions of the Company's management, and are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. All statements in this presentation speak only as of the date they are made, and the Company undertakes no obligation to update any statement. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements including changes in interest rates and other general economic, business and political conditions, the impact of inflation, continuing effects of the recent failures of Silicon Valley Bank and Signature Bank, including anticipated effects on FDIC premiums, increased deposit volatility and potential regulatory developments. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning the Company and its businesses, including additional factors that could materially affect the Company's financial results, are included in the Company's filings with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures. This presentation may contain certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States ("GAAP"). These non-GAAP financial measures include "Adjusted Earnings," "Adjusted Earnings Available to Common Shareholders," "Adjusted Diluted Earnings Per Share," "Adjusted Return on Average Assets," "Adjusted Return on Average Shareholders' Equity," "Adjusted Return on Average Tangible Common Equity," "Adjusted Pre-Tax,Pre-Provision Income," "Adjusted Pre-Tax,Pre-Provision Return on Average Assets," "Efficiency Ratio," "Tangible Common Equity to Tangible Assets," "Tangible Book Value Per Share," "Tangible Book Value Per Share excluding Accumulated Other Comprehensive Income,"and "Return on Average Tangible Common Equity." The Company believes that 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. Reconciliations of these non-GAAP measures are provided in the Appendix section of this presentation.

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Company Snapshot

• Illinois state-chartered community bank founded in 1881
• $8.0 billion in assets
• $3.6 Wealth Management business
• Commercial bank focused on in-market relationships with national diversification in equipment finance
• 53 branches in Illinois and Missouri
• 16 successful acquisitions since 2008

Financial Highlights as of 6/30/2023

$8.0 Billion	YTD ROAA:	1.10 %
Total Assets	YTD Return on TCE(1):	16.34 %
$6.4 Billion	TCE/TA:	6.19 %
Total Loans	YTD PTPP(1) ROAA:	1.72 %
$6.4 Billion	Dividend Yield:	6.03 %
Total Deposits	Price/Tangible Book:		0.90x
$3.6 Billion
Price/LTM EPS:		4.9x
Assets Under Administration

• Notes:
• 1. Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix.

Business and Corporate Strategy

Customer-Centric Culture

Drive organic growth by focusing on customer service and accountability to our clients and colleagues; seek to develop bankers who create dynamic relationships; pursue continual investment in people; maintain a core set of institutional values, and build a robust technology platform that provides customers with a superior banking experience

Operational Excellence

A corporate-wide focus on driving improvements in people, processes and technology in order to generate further improvement in Midland's operating efficiency and financial performance

Enterprise-Wide Risk Management

Maintain a program designed to integrate controls, monitoring and risk-assessment at all key levels and stages of our operations and growth; ensure that all employee are fully engaged

Accretive Acquisitions

Maintain experienced acquisition team capable of identifying and executing transactions that build shareholder value through a disciplined approach to pricing; take advantage of relative strength in periods of market disruption

Revenue Diversification

Generate a diversified revenue mix and focus on growing businesses that generate strong recurring revenues such as wealth management

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Successful Execution of Strategic Plan...

Total Assets

(at period-end in billions)

CAGR: 16%

$7.9 $8.0

$7.4

$6.9

$6.1

$5.6

$4.4

$3.2

$2.7 $2.9

$1.6 $1.5 $1.6 $1.7

$1.1

2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2Q 2023
						Selected Acquisitions

Selected Acquisitions: Total Assets at Time of Acquisition (in millions)

2009: Strategic Capital Bank ($540)	2010: AMCORE Bank ($500)
2014: Love Savings/Heartland Bank ($889)	2017: Centrue Financial ($990)
2018: Alpine Bancorp ($1,243)	2019: HomeStar Financial Group ($366)

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