On this page of StockholderLetter.com we present the latest annual shareholder letter from Midland States Bancorp, Inc. — ticker symbol MSBI. Reading current and past MSBI letters to shareholders can bring important insights into the investment thesis.

 •  4/3/2026 Letter Continued (Full PDF)
 •  3/24/2023 MSBI Stockholder Letter
 •  3/25/2024 MSBI Stockholder Letter
 •  7/8/2025 MSBI Stockholder Letter
 •  More "Banking & Savings" Category Stockholder Letters
 •  MSBI Benford's Law Stock Score = 100

MSBI Shareholder/Stockholder Letter Transcript:

ANNUAL
REPORT
2025

During 2025, we successfully repositioned
our business to focus on our Community
Banking and Wealth Management businesses.
As a result, we enter 2026 with strengthened
capital, improved credit quality, and a clear
strategic path forward. We will continue to
focus on our core customers and invest in our
team, and we expect these investments to
support renewed growth of our franchise.
Table of Contents
Letter to Shareholders ........................ 1
Financial Highlights.............................. 6
Summary Financial Information ........... 8
Board of Directors ............................. 16
Management Team .............................17
The Company   s 2025 Annual Report to Shareholders is available on the Company   s website, and
printed copies are available by request. Please contact Ms. Dacia Albin, Assistant Secretary of the
Company, at 217-342-7321 or dalbin@midlandsb.com for more information.

Letter to Shareholders
Non-Performing Assets
Dear Shareholders:
$200,000
2025 was a deliberate and transformative year for
Midland. We took decisive actions to simplify our
Company, strengthen our balance sheet, and improve our
credit profile. While these actions came with near-term
costs, they were intentional and position us to deliver
more consistent performance and sustainable long-term
shareholder value.
During the year, we completed the sale of substantially all
of our equipment finance portfolio for approximately $502
million and used a significant portion of the proceeds to
reduce roughly $350 million of wholesale funding. Together
with the exit of non-core consumer loan portfolios,
these actions materially repositioned our balance sheet.
Today, Midland is more focused, less complex, and firmly
centered on our relationship-driven Community Banking
and Wealth Management businesses.
Improving credit quality was a top priority entering 2025,
and we made measurable progress. Non-performing
assets declined from $157.4 million to $66.1 million,
reflecting both the impact of our repositioning actions
and disciplined credit execution. At the same time, we
strengthened our capital position, ending the year with
a total risk-based capital ratio of 15.16% and a common
equity tier 1 ratio of 9.89%. Net interest margin expanded
to 3.64%, supported by an improved funding mix.
Importantly, we achieved these improvements without
raising additional capital, demonstrating the effectiveness
of our strategy and execution.
$150,000
$100,000
$50,000

2022
2023
2024
2025
Capital Ratios
20.00 %
15.00 %
10.00 %
5.00 %

2023
2024
2025
Total Risk-Based Capital Ratio
Tier 1 Risk-Based Capital Ratio
Common Equity Tier 1 Risk-Based Capital Ratio
1

Financial Results
In 2025, adjusted earnings available to common shareholders
totaled $37.8 million, or $1.70 per fully diluted share in 2025
compared to adjusted earnings of $29.1 million, or $1.32 per
fully diluted share in 2024. While our financial results in 2025 fell
short of expectations, we made meaningful progress on several
strategic initiatives that position us for improved performance
and a return to peer-level profitability in the years ahead.
Tangible book value per share increased to $20.70 on December
31, 2025, a 4.4% increase from $19.83 per share in 2024.
$5.00
$4.00
$2.78
$2.00
$1.70
$1.32
$1.00

When we entered 2025, we expected total loans to decrease
due to balance sheet repositioning strategies and the exiting
of non-core portfolios. By year-end, total loans decreased to
$4.35 billion, but importantly, we completed the repositioning
of our balance sheet and exited non-core portfolios. In addition,
the composition of the portfolio improved, with a greater
concentration in relationship-based Community Bank lending.
Our total average loan yield was 6.31% during 2025, compared
to 6.30% during 2024. Total deposits declined to $5.42 billion
as we reduced higher-cost funding and wholesale balances,
strengthening our funding profile.
$15
Our Business Units
Community Banking. During 2025, Community Bank loans
grew to approximately $3.3 billion, an increase of $125.7 million
or 3.9% from 2024, driven by commercial relationships in our
higher-growth St. Louis and greater Chicago markets. While
total deposits declined modestly to $5.4 billion during the year,
the decrease was driven primarily by our intentional reduction
of higher-cost time deposits. Importantly, noninterest-bearing
$3.84
$3.00
We continued our long-standing practice of returning capital
to shareholders. Including share repurchases and common
share dividends, we returned $37.3 million to our common
shareholders in 2025, in addition to distributing $8.9 million of
preferred dividends. We expect to continue repurchasing shares
in the near-term, reflecting our confidence in the Company   s
capital position and our ability to support the future growth
trajectory of the Midland franchise.
Our efficiency ratio was 62.3% in 2025 compared to 55.2% in
2024. While expense discipline remains a priority, we continued
to invest in talent and systems to support long-term growth.
2
Adjusted Diluted Earnings Per Share
2022
2023
2024
2025
Tangible Book Value Per Share
$25
$20
$19.79
$19.83
2023
2024
$20.70
$18.13
$10
$5

2022
2025
Common Dividends Per Share
$1.50
$1.25
$1.07
$1.00
$1.12
$1.16
$1.20
$1.24 $1.26
$0.97
$0.88
$0.75
$0.50
$0.25

2018
2019
2020
2021
2022
2023
2024
2025

demand deposits increased, and disciplined deposit pricing
contributed to a 57 basis point decline in our cost of deposits. We
are prioritizing full operating relationships over single-product
transactions.
We continued to invest
in leadership of the
Community Bank. John
Kempen joined us as
Market President in
Champaign, Illinois. In
John Kempen
Martesha Brown
Rockford, Illinois, we
promoted
Martesha
Brown and welcomed
Mike Winters as Market
Presidents. Min Yun
joined our team as Vice
Mike Winters
Min Yun
President     Consumer
Banking. As we prepare
for
Jeff
Mefford   s
planned retirement as
Bank President in 2026,
we promoted Jeremy
Jameson to Executive
Jeremy Jameson
Jeff Mefford
Vice President - Chief
Banking Officer. Additionally, Kyle Mooney,
who has served as our Chief Information
Officer since 2010, was promoted to Senior
Vice President     Chief Operating Officer.
These moves strengthen our leadership
Kyle Mooney
bench and position us to execute on
our growth strategy with accountability and discipline. The
experienced market leaders and relationship managers we have
added over the past two years are expanding our calling efforts,
deepening community engagement, and positioning us for
sustainable core growth.
Delivering a superior customer experience remains central to
our strategy. Since 2022, our relationship Net Promoter Score
(NPS) has increased more than 60%, reflecting stronger customer
loyalty and advocacy across our footprint. This improvement is not
accidental. It is the result of consistent focus on service standards,
disciplined calling efforts, and strengthening primary operating
account relationships. We ended 2025 with a relationship NPS
score of 46.
Ef   ciency Ratio
65.0%
62.3%
60.0%
55.3%
55.0%
51.9%
50.0%
49.7%
45.0%
2022
2023
2024
2025
Total Gross Loans
$7,000
$6,306
$6,131
$6,000
$5,168
$5,000
$4,352
$4,000
$3,000
$2,000
$1,000

2022
2023
2024
2025
Relationship NPS
Net Promoter Score
50
43
46
40
30
28
20
10
0
2023
2024
2025
3

4/3/2026 Letter Continued (Full PDF)

 

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