#1Midland States Bancorp, Inc. NASDAQ: MSBI Investor Presentation February 2024 Midland ◉ States Bancorp, Inc.#22 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 failures of Silicon Valley Bank and Signature Bank, 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. Midland ◉ States Bancorp, Inc.#33 (1) Company Snapshot • Illinois state-chartered community bank founded in 1881 $7.9 billion in assets ⚫ $3.7 billion 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 AMERICA'S BEST BANKS 2023 Newsweek $50 TOP WORK PLACES ST. LOUIS POST-DISPATCH Midland States Bank is a 2023 Top Workplace! 2 Years Running 2022-2023 BANK 2023 Financial Highlights as of December 31, 2023 $7.9 Billion Total Assets $6.1 Billion Total Loans $6.3 Billion Total Deposits $3.7 Billion Assets Under Administration YTD Adjusted ROAA (¹): 1.08% YTD Adjusted Return on TCE (¹): 15.98% TCE/TA: 6.55% YTD PTPP(1) ROAA: 1.72% Dividend Yield: 4.35% Price/Tangible Book: 1.18x Price/LTM EPS: 9.3x Notes: Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix. Midland ◉ States Bancorp, Inc.#44 Recent Trends and Operational Highlights • Profitable growth and improved efficiencies resulting in higher EPS and increased returns over the past few years • Strengthened commercial banking team and increased presence in faster growing markets driving significant organic loan growth and consistent inflows of new commercial deposits • More diversified, lower-risk loan portfolio resulting in improved asset quality • Banking-as-a-Service foundation being developed and expected to start making a contribution in 2024 • Wealth Management business focused on more effectively capitalizing on cross-selling opportunities and increasing organic growth rate • More conservative approach to new loan production adopted in light of current environment until economic conditions improve • Well positioned to capitalize on the current environment to add new commercial and retail deposit relationships Midland ◉ States Bancorp, Inc.#55 Financial Services & Banking Center Footprint Champaign Central Illinois Effingham Vandalia Greenville Farina Centralia Midland States Bancorp, Inc. Headquarters Midland Banking Center Midland Mortgage Banking Midland Equipment Finance Midland Wealth Management 1 location not pictured Residential Mortgage and Wealth Management services are also available through all Midland Banking Centers Machesney Park Rockford (5) Dixon Sterling Rock Falls Roscoe Belvidere (3) Northern Illinois Sandwich Yorkville Mendota Joliet (2) Mokena Beecher Princeton Peru Ottawa Diamond Manteno Grant Park Bradley Streator 回 回 Dwight Bourbonnais (2) Herscher Momence Kankakee St. Louis Area O'Fallon St. Charles D Town & Country Jennings Ladue Clayton The Grove Rock Hill Sunset Hills St. Clair Arnold Columbia Smithton Waterloo Midland ◉ States Bancorp, Inc.#66 Investment Summary Consistent track record of driving compelling shareholder returns through disciplined strategic expansion and earnings growth Organization-wide focus on expense management driving improvement in operating efficiencies Attractive, stable deposit franchise >85% with core deposits consistently averaging more than 85% of total deposits Leveraging technology to drive revenue growth, increase market share, and enhance the customer experience Proven track record of successful acquisitions with a focus on enhancing shareholder value while building a platform of scalability Illinois and contiguous states provide ample opportunities for future acquisitions Well diversified loan portfolio across asset classes, industries and property types Midland ◉ States Bancorp, Inc.#77 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 employees 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 回 Midland ◉ States Bancorp, Inc.#8Experienced Senior Management Team 8 00 Jeffrey G. Ludwig | President and CEO of Midland States Bancorp Assumed Company CEO role in Jan. 2019 after serving as Bank CEO " More than 10 years serving as CFO " Joined Midland in 2006; 16+ years in banking industry Jeffrey S. Mefford | President of Midland States Bank and EVP of Midland States Bancorp Joined Midland in 2003 Appointed Bank President in March 2018 Oversees all sales activities for commercial, retail, mortgage, wealth management, equipment finance, and treasury management Douglas J. Tucker | SVP, Corporate Counsel and Director of IR 20+ years experience advising banks and bank holding companies Significant IPO, SEC reporting and M&A experience Joined Midland in 2010 Eric T. Lemke | Chief Financial Officer Promoted to Chief Financial Officer in November 2019 Joined Midland in 2018 as Director of Assurance and Audit 25+ years of financial accounting and reporting experience in financial services Jeffrey A. Brunoehler | Chief Credit Officer " 30+ years in banking, lending and credit Leads the credit underwriting, approval and loan portfolio management functions Joined Midland in 2010 Midland ◉ States Bancorp, Inc.#9Successful Acquisition History Midland States has completed 16 transactions since 2008, including FDIC-assisted, branch, whole bank, asset purchase and business line acquisitions, and a New York trust asset acquisition Demonstrated history of earnings expansion ☐ Deliberate diversification of geographies and revenue channels " Successful post-closing integration of systems and businesses D Most recent acquisition: FNBC branch acquisition (closed in Q2 2022) Selected Acquisitions 6 Acquisition Type Assets Acquired ($mm) Location 2009 2010 2014 2016 2017 2018 2019 Strategic Capital Bank AMCORE Bank, N.A. Love Savings / Heartland Bank Sterling Bancorp FDIC- 12 Branches Assisted Whole Bank Trust Administration Centrue Financial Whole Bank Alpine Bancorp. Whole Bank and Wealth Mgmt HomeStar Financial Whole Bank $540.4 $499.5 $889.0 $990.2 $1,243.3 $366.0 Champaign, IL Northern Illinois St. Louis, MO Yonkers, NY Northern Illinois Financially Transformative Operationally Transformative Revenue Diversification Expansion of Trust Business Enhanced Scale and Market Presence Rockford, IL Expanded Core Bank and Wealth Management Franchise and Market Presence Midland ◉ States Bancorp, Inc. Kankakee, IL Low-cost Deposit#10Efficiency Scale Strategic Initiatives Strengthening Franchise Significant Corporate Actions Since Coming Public in 2016... Action Three whole bank acquisitions Four Wealth Management acquisitions Expanded equipment finance group Strategic Rationale Low-cost deposits " Recurring revenue Diversify revenue with attractive risk-adjusted yields Action Branch network and facility reductions Accelerate technology investments Strategic Rationale Increasing adoption of digital Harness data to drive efficiencies for increased wallet share 10 Notes: (1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix. Financial Impact 2016 2023 Total Assets $3.2B $7.9B AUA $1.7B $3.7B Equipment Finance $191M $1.0B Financial Impact Efficiency Ratio (1) 2016 68.66% 2023 55.91% Deposits/Branch $53M $119M Midland ◉ States Bancorp, Inc.#11Strategic Initiatives Strengthening Franchise ...Have Produced Improved Growth and Profitability Adjusted Pre-Tax Pre-Provision Earnings Total Loans (in millions) (in millions, as of year-end) Adjusted PTPP Adjusted PTPP / Avg Assets CAGR: 14.9% $6,306 $6,131 Adjusted PTPP CAGR: 15.4% $137.5 $136.3 $120.4 $108.9 $5,103 $5,225 $101.3 $83.7 $61.9 $50.0 1.59% 1.55% 1.53% H $4,401 $4,138 1.82% 1.74% 1.75% 1.72% $3,227 1.67% $2,320 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 Efficiency Ratio (¹) (in millions) Wealth Management Revenue 68.66% $26.81 $25.71 $25.57 66.66% 66.08% $21.83 $22.80 $20.51 61.53% 59.42% 57.05% $13.34 55.35% 55.91% $8.09 ill 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 11 Notes: (1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix. 2022 2023 Midland ◉ States Bancorp, Inc.#12Successful Execution of Strategic Plan... Total Assets 12 12 (at period-end in billions) CAGR: 15% $3.2 $2.9 $2.7 $1.7 $1.6 $1.5 $1.6 $1.1 CAGR since 2016 IPO: 14% $7.9 $7.9 $7.4 $6.9 $6.1 $5.6 $4.4 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Selected Acquisitions Selected Acquisitions: Total Assets at Time of Acquisition (in millions) 2009: Strategic Capital Bank ($540) 2014: Love Savings/Heartland Bank ($889) 2018: Alpine Bancorp ($1,243) 2017: Centrue Financial ($990) 2010: AMCORE Bank ($500) 2019: HomeStar Financial Group ($366) Midland ◉ States Bancorp, Inc.#13...Leads to Creation of Shareholder Value 22 Consecutive Years of Dividend Increases Tangible Book Value Per Share (¹) TBV/Share ex. AOCI CAGR: 7.7% $18.80 $18.34 $17.22 $17.09 $21.42 $26.91 $24.72 $23.35 $21.66 $20.94 $19.31 $18.64 $17.31 $17.00 Dividends Declared Per Share CAGR: 7.0% $1.20 $1.16 $1.12 $1.07 $0.97 $0.88 $0.80 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 Tangible Book Value Per Share TBV/Share ex. AOCI 13 Notes: (1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix. Midland ◉ States Bancorp, Inc.#14...And Increased Profitability $1.89 Adjusted Diluted EPS (¹) CAGR: 10.4% $3.65 $3.79 $2.54 $2.39 $1.70 $3.42 11.32% Adjusted ROATCE (¹) 15.00% 14.44% 9.24% 18.59% 18.33% 15.98% 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 14 Notes: (1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix. Midland ◉ States Bancorp, Inc.#15Small Business ◉Technology Roadmap Midland's technology investments are enhancing efficiencies, improving client experience, and positively impacting retail deposit gathering and commercial/consumer loan production Consumer Flexible Overdrafts Wealth Commercial Commercial Online Account Opening (Q4 2021) ■ncino (Q1 2022) Near real time Zelle® payments (Q1 2021) VELOCITY SOLUTIONS Integrated Payables - Payments (Q4 2021) FIS Customer Facing Online loan blend Origination (Q1 2021) Commercial Relationship pricing optimization engine (Q1 2022) precisionlender. Online Access and Portal (Q3 2023) Consumer online ■ncino SBA Loan Portal (2021) salesforce account opening (2020) Automated analytics-based marketing platform deployed with access to all datasets and all businesses (2020 and on-going) CRM deployed to 700+ front office employees with rich view of the customer, automated leads, and single view of pipelines for executive team (2020) SBB Loan Portal (Opening May 2023) salesforce ENVESTNET MoneyGuide FIS Black Diamond salesforce marketing cloud salesforce Retail Banking Needs Navigator & Customer salesforce Incentive Programs (2020, Self service loan portal and treasury on-boarding (2021) salesforce Trust Platform (Q1 2024) SS& INNOVEST Black Diamond Five9 Customer Care (March 2023) Five9 RIA Platform (Q3 2023) Black Diamond Fintech Partnerships Established JAM FINTOP Canapi Fund, Alloy, Blend, Plaid, GreenSky, JAM/FINTOP Fund, Informatica Informatica GreenSky CANAPI synctera Five9 alloy PLAID TrueDigital Foundational CX Platform Customer Feedback (2020, 2021) NICE+ Artificial Intelligence (2020, 2021) 200+ RPA "bots" deployed in the last 18 months, Al based solutions applied in Risk Management, Mortgage Operations (Q2 2021), and Cyber Security (UEBA) Silo-elimination and 360 view of customer (2020) Ui Path ☑ nintex Power BI All sales teams on single sales platform using same 360 view of customer SAS Viya Centralized Data Analytics - Informatica, PowerBI, SAS Viya (2018, 2019, 2020) Oracle data warehouse with 98% of data accessible for analytics across all products, services and channels. 15 Digital Talent (47 FTE) Chief Digital Officer, Director - Strategic Transformation, Director - Strategic Engineering & Development, Director - Banking as a Service,, Lead Engineer API Development, Senior Manager - Digital Marketing, Manager - Customer Experience, Board Member - Digital Expertise, Web Development#1616 Loan Portfolio and Asset Quality#1717 Commercial Loans and Leases by Industry ($s in millions) Retail Trade $180.6 3.8% Wholesale Trade $67.0 1.4% Other Services $102.6 2.1% Health Care $70.5 1.5% Industries as a percentage of Commercial, CRE and Equipment Finance Loans and Leases with outstanding balances of $4.82 billion as of December 31, 2023 General Freight Trucking $204.2 4.2% Ag., Forestry, & Fishing $151.5 3.1% Assisted Living $112.4 2.3% Trans./Ground Passenger $198.7 4.1% Accommodation & Food Svcs $222.8 4.6% Finance and Insurance $261.6 5.4% Manufacturing $237.3 4.9% Construction - General $333.9 6.9% Skilled Nursing $469.3 9.7% RE/Rental & Leasing $1,616.6 33.6% All Others $586.4 12.2% Midland ◉ States Bancorp, Inc.#18Commercial Real Estate Portfolio by Collateral Type ($s in millions) C-Store/Gas Station $76.7 2.7% Medical Building $103.8 3.6% Mixed Use/Other $93.6 3.3% Restaurant $30.8 Raw Land $16.0 1.1% 0.6% Collateral type as a percentage of the Commercial Real Estate and Construction Portfolio with outstanding balances of $2.86 billion as of December 31, 2023 Special Purpose $102.4 3.6% Residential 1-4 Family $85.5 3.0% Farmland $66.3 All Other $174.1 6.1% 2.3% Office $153.8 5.4% Hotel/Motel $159.7 5.6% CRE Concentration (as of December 31, 2023) CRE as a % of Total Loans 46.6% CRE as a % of Total Risk-Based Capital (1) 265.2% Notes: 18 Assisted Living $138.7 4.9% Industrial/Warehouse Multi-Family $516.3 $218.0 18.1% (1) Represents non-owner occupied CRE loans only 7.6% Skilled Nursing $469.1 16.4% Retail $454.6 15.9% Midland ◉ States Bancorp, Inc.#19Commercial Loan Growth More conservative approach to new loan production in light of economic uncertainty has impacted production levels since mid-2022 19 ● New hires and an increase in productivity of the commercial banking group without increasing the size of the business development team Addition of expertise in specialty finance and SBA lending Increased exposure to higher growth markets in Northern Illinois and St. Louis • Successfully moving up market and working with larger clients that have greater financing needs • Effectively leveraging technology investments, including the Salesforce platform, to improve win rate and expand relationships with clients New commercial loan production to be funded by planned reduction in consumer portfolio Commercial and CRE Loan Production (in millions) $417 $313 $289 $857 $861 $673 $661 $508 $365 $302 $252 $226 1Q 2Q 3Q 4Q 1Q 2Q 2021 2021 2021 2021 2022 2022 3Q 4Q 1Q 2Q 3Q 4Q 2022 2022 2023 2023 2023 2023 New Loan Fundings New Unfunded Commitments Midland ◉ States Bancorp, Inc.#20Empty#21GreenSky Consumer Loan Portfolio Overview Portfolio Characteristics (as of December 31, 2023) Total Outstanding Weighted Average Rate $683.6 million (11.2% of total loans) 5.49% Number of Active Loans Average Loan Size Average FICO Score 49,171 $13,901 771 Projected GreenSky Balances (in millions) $936 $876 $818 $755 $684 $594 $524 $460 $408 Plan with GreenSky to Wind Down Portfolio Notice provided to officially terminate the GreenSky program in October 2023 Reduced loan originations Projected portfolio reduction to $408 million by EOY 2024 Decrease in portfolio to improve liquidity and capital Escrow deposits Escrow deposits absorb losses in excess of cash flow waterfall Escrow account totaled $30.4 million at 12/31/23 or 4.4% of the portfolio 21 21 Actual Actual Actual Actual Actual Proj 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Proj Proj Proj 2Q24 3Q24 4Q24 Midland ◉ States Bancorp, Inc.#22Asset Quality • • • Nonperforming loans relatively flat with small increase of $0.4 million, of which equipment finance increased $2.1 million in the current quarter Net charge-offs to average loans was 0.33% primarily driven by equipment finance Provision for credit losses on loans of $7.0 million, primarily related to the equipment finance portfolio, changes in forecasts and other Q factors, and increases to specific reserves 222 Nonperforming Loans / Total Loans (Total Loans as of quarter-end) 0.92% 0.89% 0.86% 0.78% 0.80% 0.03% NCO / Average Loans 0.22% 0.19% 0.14% 0.33% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Midland ◉ States Bancorp, Inc.#23Changes in Allowance for Credit Losses 233 23 ($ in thousands) $66,669 $448 $715 $670 Changes to specific reserves New Loans Changes in Credit quality including risk rating Change to macro- economic variables and forecasts Changes in portfolio mix Changes to other economic qualitative $68,502 factors Aging of existing portfolio Other charge-offs and recoveries ACL September 30, 2023 Specific Reserves Portfolio Changes Economic Factors ACL December 31, 2023 Midland ◉ States Bancorp, Inc.#2424 ACL by Portfolio ($ in thousands) December 31, 2023 September 30, 2023 % of Total Portfolio Loans ACL Loans ACL Loans % of Total Loans Commercial $ 825,938 $ 8,897 1.08 % $ 874,004 $ 7,563 0.87 % Warehouse Lines % 48,547 - - % Commercial Other 656,592 12,950 1.97 % 697,235 11,847 1.70 % Equipment Finance Loans 531,143 12,496 2.35% 578,931 11,361 1.96 % Equipment Finance Leases 473,350 12,940 2.73 % 485,460 9,436 1.94 % CRE non-owner occupied 1,622,668 12,716 0.78 % 1,636,168 16,253 0.99 % CRE owner occupied 436,857 4,742 1.09 % 439,642 5,265 1.20 % Multi-family 279,904 2,398 0.86 % 269,708 2,583 0.96 % Farmland 67,416 373 0.55 % 66,646 510 0.77 % Construction and Land Development 452,593 4,163 0.92 % 416,801 3,530 0.85 % Residential RE First Lien 317,388 4,906 1.55 % 313,638 5,038 1.61 % Other Residential 63,195 647 1.02 % 61,573 660 1.07 % Consumer 107,743 711 0.66 % 111,432 847 0.76 % Consumer Other (1) 827,435 3,059 0.37 % 908,576 3,137 0.35 % Total Loans 6,131,079 68,502 1.12 % 6,280,883 66,669 1.06 % Loans (excluding BaaS portfolio (1) and warehouse lines) 5,215,645 65,003 1.25 % 5,235,383 63,090 1.21 % Notes: (1) Primarily consists of loans originated through GreenSky relationship Midland ◉ States Bancorp, Inc.#25Recent Financial Trends 25 25#26Overview of 4Q23 26 Notes: (1) • Net income and level of returns increased from the prior quarter Strong Financial Performance • • • Net income available to common shareholders of $18.5 million, or $0.84 diluted EPS Pre-tax, pre-provision earnings of $35.9 million (1) ROAA of 1.04% and ROTCE of 15.41% Increase in Capital Ratios and TBV • Strong financial performance and prudent balance sheet management resulted in increases in all capital ratios • CET1 ratio increased 33bps to 8.40% . Tangible book value per share increased 7.8% during fourth quarter Continued Success in Developing Full Banking Relationships with Attractive Commercial Clients • • Selective approach to new loan production in current environment with focus on clients that provide full banking relationships New commercial loans partially offset continued runoff in GreenSky portfolio and the intentional reduction in equipment finance loans New and expanded client relationships resulting in inflows of commercial deposits and improving overall deposit mix as balances of higher cost time deposits are reduced Positive Trends in Key Metrics • Net interest margin increased to 3.21% . • Efficiency ratio improved from the prior quarter Wealth management AUA and fees increased from prior quarter Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix. Midland ◉ States Bancorp, Inc.#27Loan Portfolio • Total loans decreased $149.8 million from prior quarter to $6.13 billion • . Decrease primarily driven by decline in equipment finance portfolio of $59.9 million and continued runoff of GreenSky portfolio of $70.4 million, and lower balances on commercial FHA warehouse lines Decrease in non-core portfolios partially offset by new loan production from high quality commercial clients that provide full banking relationships . Consumer loan originations through LendingPoint partnership have been terminated as new loan production is focused on in-market commercial relationships Loan Portfolio Mix Total Loans and Average Loan Yield (in millions, as of quarter-end) (in millions, as of quarter-end) 4Q 2023 3Q 2023 4Q 2022 $6,306 $6,354 $6,367 $6,281 $6,131 Commercial loans and leases $ 1,956 $ 2,057 $ 2,006 6.00% 5.93% 5.80% 5.65% Commercial real estate 2,407 2,412 2,433 5.26% Construction and land development 453 417 321 Residential real estate 380 375 366 27 27 Consumer 935 1,020 1,180 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Total Loans $ 6,131 $ 6,281 $ 6,306 Total Loans Average Loan Yield Total Loans $ 6,131 ex. Commercial FHA Lines and PPP $ 6,232 $ 6,280 Midland ◉ States Bancorp, Inc.#2828 Total Deposits • Total deposits decreased $95.5 million from end of prior quarter, primarily due to seasonal outflows from public funds and servicing deposits . • Noninterest-bearing deposits relatively stable as continued movement of funds into interest-bearing accounts was offset by new commercial and small business relationships New and expanded client relationships resulting in inflows of commercial deposits that enabled the reduction of higher cost time deposits, resulting in an improvement in the overall deposit mix (in millions, as of quarter-end) Deposit Mix Total Deposits and Cost of Deposits (in millions, as of quarter-end) 4Q 2023 3Q 2023 4Q 2022 Noninterest-bearing demand $ 1,145 $ 1,155 $ 1,362 $6,365 $6,425 $6,427 $6,405 $6,310 Interest-bearing: 2.41% 2.32% Checking 2,512 2,572 2,494 2.09% 1.70% Money market 1,136 1,091 1,184 1.23% Savings 559 582 662 Time 863 886 650 Brokered time 95 119 13 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Total Deposits $ 6,310 $ 6,405 $ 6,365 Total Deposits Cost of Deposits Midland ◉ States Bancorp, Inc.#2929 29 Deposit Type Trend Deposits by Type Trend (in millions) $4,074 2018 9% CAGR $6,365 $6,111 $6,310 $5,101 $4,544 2019 Non Int Bearing Demand 2020 2021 Interest Bearing Checking Money Market Savings 2022 2023 Time Brokered Time Midland ◉ States Bancorp, Inc.#3030 Deposit Summary as of December 31, 2023 (in millions) Deposits by Channel (in millions) Commercial Deposits by NAICS Code $296 4.7% 9.5% 2.2% 20.4% $780 12.4% $210 Retail Deposits 12.3% 3.3% $2,743 Commercial Deposits $279 4.4% 43.5% Servicing Deposits $6.31 billion Public Funds 3.0% $1.05 billion 11.8% Brokered Deposits 1.9% ICS Reciprocal 3.0% $952 15.1% Other 2.0% 3.8% 3.6% $1,050 16.6% 1.1% 8.3% 8.5% 1.3% 7.3% Finance & Insurance RE, Rental & Leasing Manufacturing Other Services Skilled/Memory Care Construction Admin, Support, Waste Mgmt & Remediation Retail Trade Agriculture, Forestry, Fishing & Hunting Wholesale Trade Professional, Scientific & Tech Services Gasoline Station & C Stores Accom & Food NAICS code unavailable Health Care All Other All Other category made up of over 100 NAICS with Amusement and Theme Parks being the largest at $8 million Midland ◉ States Bancorp, Inc.#3131 Uninsured Deposits Uninsured Deposits (in millions) Call Report Uninsured Estimate Call Report Estimated Uninsured Deposits to Total Deposits Less: Affiliate Deposits (MSB owned funds) Less: Additional structured FDIC coverage Less: Collateralized Deposits December 31, 2023 September 30, 2023 1,642 $ 1,737 26 % 27% (38) (44) (30) (49) (358) (367) Estimated uninsured deposits excluding items above Estimated Uninsured Deposits to Total Deposits Total Deposits $ 1,216 $ 1,277 19 % 20 % $ 6,310 $ 6,405 Average Deposit Balance per Account = $34,000 Midland ◉ States Bancorp, Inc.#32Investment Portfolio As of December 31, 2023 • All Investments are classified as Available for Sale • Average T/E Yield is 4.16% for 4Q23 Fair Value of Investments by Type 0.1% 10.9% 7.9% 3.0% 6.3% 32 32 • Average Duration is 4.97 years •⚫ Purchased $93.8 million with T/E Yield of 7.04%, Sold $24.5 million with T/E Yield of 1.76% in 4Q23 Investment Mix & Unrealized Gain (Loss) (in millions) 9.1% $916 million 62.7% Treasuries US GSE & US Agency MBS agency MBS non agency State & Muni CLOS Corporate Investments by Yield and Duration 7.0% Unrealized Fair Value Book Value Gain (Loss) 6.0% Treasuries US GSE & US Agency $ 1 $ 1 $ 5.0% 73 74 (1) - MBS agency 575 650 (75) MBS non agency 84 87 (3) Yield 4.0% 3.0% State & Municipal 57 63 (6) 2.0% CLOS 28 28 | 1.0% Corporate 99 110 (11) Total Investments $ 916 $ 1,013 $ 0.0% (96) Treasuries US GSE & US Agency MBS - agency MBS - non agency State & Muni CLOS Corporate 0 1 2 3 4 5 6 7 8 Duration Midland ◉ States Bancorp, Inc.#3333 Liquidity Overview Liquidity Sources (in millions) December 31, 2023 September 30, 2023 Cash and Cash Equivalents Unpledged Securities $ 135.1 $ 132.1 346.8 258.1 FHLB Committed Liquidity 936.0 883.9 FRB Discount Window Availability 699.9 759.8 Total Estimated Liquidity $ 2,117.8 $ 2,033.9 Conditional Funding Based on Market Conditions Additional Credit Facility $ 419.0 $ 364.0 Brokered CDs (additional capacity) $ 500.0 $ 500.0 Midland ◉ States Bancorp, Inc.#3434 Net Interest Income/Margin • Net interest income down slightly from prior quarter due to lower average earning assets • Net interest margin increased 1bp to 3.21% as the increase in the average yield on earning assets exceeded the increase in the cost of deposits • Average rate on new and renewed loan originations increased 66bps to 8.22% in 4Q23 from 7.56% in 3Q23 . Net interest margin expected to continue to be relatively stable as loan portfolio continues to reprice and the impact of continued repositioning in the investment portfolio is realized Net Interest Income Net Interest Margin (in millions) $63.6 $0.3 $60.5 3.50% $58.8 $58.6 $58.1 3.39% $0.4 0.02% $0.4 $0.2 $0.3 0.02% 3.23% 3.20% 3.21% 0.02% 0.01% 0.02% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 NII Accretion Income NIM Accretion Income Midland ◉ States Bancorp, Inc.#3535 55 Loans & Securities - Repricing and Maturity Total Loans and Leases (net of unearned income) (1) (in millions) As of December 31, 2023 Repricing Term Rate Structure 3 mos or less 3-12 mos 1-3 years 3-5 5-10 10-15 Over 15 years years years years Total Floating Rate Adjustable Fixed Rate Rate Commercial loans and leases $ 717 $ 310 $ 571 $ 295 $ 41 $ 4 $ 18 $1,956 $ 501 $ 79 $ 1,376 Commercial real estate 773 334 678 400 172 15 35 2,407 597 243 1,567 Construction and land 281 72 70 29 1 - 453 251 25 177 Residential real estate 70 57 78 65 84 20 7 381 52 121 208 Consumer 215 228 469 16 7 935 122 813 Total $2,056 $1,001 $1,866 $ 804 $ 305 $ 39 $ 60 $6,131 $1,522 $ 468 $ 4,141 % of Total 34 % 16 % Weighted Average Rate 7.75 % 5.56 % 30 % 5.22 % 13 % 5.19 % 5 % 1% 1% (2) 4.52 % 4.01 % 0.32 % 100% 6.03% 25 % 8% 68 % 8.23 % 4.73 % 5.36 % (in millions) As of December 31, 2023 Amortized Cost % of Total Notes: (1) (2) (3) Investment Securities Available for Sale (3) Maturity & Projected Cash Flow Distribution 1 year or less 1-3 years 3-5 years 5-10 years Over 10 years Total $ 164 16 % $ 258 25 % $ 186 $ 289 $ 116 $ 1,013 18% 29 % 11 % 100% Based on projected principal payments for all loans plus the next reset for floating and adjustable rate loans and the maturity date of fixed rate loans. Over 15 years category includes all nonaccrual loans and leases. Projected principal cash flows for securities. Differences between amortized cost and total principal are included in Over 10 years. Midland ◉ States Bancorp, Inc.#3636 Wealth Management • Assets under administration increased mainly due to $106 million of new accounts won and positive market performance • Wealth Management fees increased from prior quarter due to increases in estate and trust fees from new business development efforts ● New technology planned to launch in 2Q24 • Two new wealth advisors positively impacting new business development Assets Under Administration Wealth Management Revenue (in millions) (in millions) $3,733 $3,505 $3,503 $3,595 $3,501 $6.60 $6.41 $6.23 $6.27 $6.29 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Midland ◉ States Bancorp, Inc.#37Noninterest Income 37 32 • Noninterest income increased from prior quarter • 4Q23 noninterest income included one-time servicing revenues of $3.8 million and $1.1 million gain from the sale of Visa B stock • One-time increases were offset by $2.9 million of losses on the sale of investment securities as part of additional repositioning in the investment portfolio that will be accretive to earnings going forward • Noninterest income expected to be in the range of $18.0 - $18.5 million in 1Q24 (in millions) Notes: (1) $33.8 Noninterest Income $18.8 $15.8 $11.5 $20.5 4Q 2022 1Q 2023 2Q 2023 3Q 2023 (1) 4Q 2023 Wealth Management Interchange Service Charges on Deposits Residential Mortgage All Other September 30, 2023 amounts include the impact of the revision stated in the Fourth Quarter 2023 Earnings Release Midland ◉ States Bancorp, Inc.#38Noninterest Expense and Operating Efficiency Noninterest Expense and Efficiency Ratio (Noninterest expense in millions) (1) $49.9 $3.3 $44.5 $42.9 $42.0 58.3% 57.6% $44.5 • Efficiency Ratio (1) was 55.2% in 4Q 2023 vs. 55.8% in 3Q 2023 Noninterest expense increased from prior quarter primarily due to increased incentive and performance based expense accruals and increased medical costs, partially offset by $1.1 million benefit recognized from Employees Retention Tax Credit Near-term operating expense run-rate expected to be approximately $45.5 - $46.5 million 55.8% 55.2% 55.0% 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 Total Noninterest Expense Adjustments to Noninterest Expense Efficiency Ratio 38 Notes: (1) Represents a non-GAAP financial measure. See "Non-GAAP Reconciliation" in the appendix. Midland ◉ States Bancorp, Inc.#3939 Capital Ratios and Strategy Capital Strategy • Capital initiatives increased CET1 to 8.40% from 7.77% at 12/31/22 with limited buybacks below TBV Internal capital generated from strong profitability and slower balance sheet growth expected to raise TCE ratio to 7.00%-7.75% by the end of 2024 • Capital actions and strong profitability expected to enable MSBI to raise capital ratios while maintaining current dividend payout 6.55% Capital Ratios (as of December 31, 2023) 11.44% 11.44% 10.91% 10.18% 9.71% 8.40% 13.20% 12.40% TCE/TA Common Eq. Tier 1 Tier 1 Leverage Tier 1 RBC Total RBC Consolidated Bank Level Midland ◉ States Bancorp, Inc.#40Outlook 40 40#41Outlook • Well positioned to start 2024 with increased levels of capital, liquidity, and reserves Prudent risk management will remain top priority while economic uncertainty remains with business development efforts focused on adding new commercial and retail deposit relationships throughout our markets • Strong financial performance and prudent balance sheet management should lead to further increases in capital ratios . . . New loan production focused on high quality commercial relationships will be partially funded with runoff from GreenSky portfolio and continued intentional reduction of the equipment finance portfolio Neutral interest rate sensitivity positions Midland well for managing future changes in interest rates Maintain disciplined expense management while also investing in areas that will enhance the long-term value of the franchise * * * * Improvements in technology platform and additional advisors expected to positively impact business development in Wealth Management Expanded presence in higher growth St. Louis market including the addition of a new market president expected to accelerate efforts to add new commercial, retail and wealth management clients Banking-as-a-Service initiative expected to start making meaningful contribution to deposit gathering and fee income during 2024 New mortgage originators added to capitalize on anticipated decline in interest rates with a focus on adding core client relationships that will utilize multiple products and services 41 11 Midland ◉ States Bancorp, Inc.#42Long-Term Formula for Enhancing Shareholder Value 42 42 Disciplined Balance Sheet Growth + Improving Operating Efficiencies + Stable Sources of Recurring Income + Accretive M&A Transactions Earnings Growth, Improving Returns and Enhanced Franchise Value Midland ◉ States Bancorp, Inc.#4343 43 APPENDIX Midland ◉ States Bancorp, Inc.#4444 44 ESG: A Framework for Sustainability Environmental Facilities • We have installed solar power in 22 Midland locations. • Our corporate headquarters, built in 2011, is LEED (Silver) Certified. • We have made more than $50 million of credit available for residential and commercial solar projects since 2011. Paper Reduction Financial Education • . In 2023, we provided over 600 volunteer hours specific to financial empowerment seminars in our communities. Since 2015 we have held more than 450 financial literacy seminars benefiting low to moderate income or minority neighborhoods in our footprint. CRA, Community Development and Financial Inclusion • • • More than 50% of our customers use paperless statements and we have had a paper elimination program in place since 2010. Social Community Impact • . • We have been serving families and businesses since 1881, offering products and services based on the needs of our customers. We work with more than 200 community organizations to ensure we address the needs of each of our markets in the areas of lending, investments, philanthropy, products, community engagement, and inclusion. The Midland Institute CEO program, a unique year-long program designed to teach entrepreneurship to high school students, was created in 2010. As of 2023, 70 programs serving 330 schools utilize this powerful program for energizing tomorrow's business leaders. Culture and People • • • • Since 2008, Midland has provided all employees with personal and professional development training. Midland's Advanced Study for Talent Enrichment and Resource Training (MASTERS) program serves to develop future leaders of the Company. To date 68% of participants have been women or minority employees. In April 2020, Midland established the Diversity & Inclusion Council. This council, now known as the Council of Belonging, continues to actively contribute to our Company culture, reinforcing our commitment to diversity, inclusion and belonging for all employees. Midland offers employees paid time off to contribute their time and talents to recognized charities, causes, or not-for-profit community organizations. Philanthropy • Since its creation in 2011, the Midland States Bank Foundation has contributed more than $1.8 million to non-profit organizations throughout Midland's footprint. The Foundation seeks to align contributions with Midland's Community Impact focus: education, work force development, financial empowerment, housing, small business development and health & wellness. Priority is given to programs or organizations that focus on low- to moderate-income populations. Through our Believable Banking® Residential Mortgage and Home Improvement programs we have made $123.5 million of loans to families underserved by traditional loan programs. Our banking products and services are offered through our personal bankers, online with materials clearly describing the features, costs and alternatives available, and by dual-language materials in our branches and our ADA compliant website. Governance Reputation and Ethics • • Midland States Bank was one of the first in the nation to have a woman on its board (1903). Our board includes female, Hispanic and African American representation and has since before becoming a publicly traded company in 2016. • Our Code of Business Conduct and Ethics is available at investors.midlandsb.com. Oversight of Strategy and Risk • The Company's Chair and CEO roles have been separate since the Company's inception (1988). • • • All directors, except our CEO, are "independent" pursuant to applicable SEC/ NASDAQ rules. Our board of directors has established a Risk and Compliance Committee to oversee all aspects of risk and compliance management across our enterprise. Consistent with COSO's 2017 Enterprise-Wide Risk Management (ERM) Framework, our ERM program employs business process risk ownership and the "three lines of defense" model. Data Security • We utilize data security programs and a privacy policy under which we do not sell or share customer information with nonaffiliated entities. Executive Compensation • Our executive compensation, including all performance related compensation, is evaluated annually by Risk Management to ensure consistency with Federal Reserve Safety and Soundness requirements, and the Interagency Guidance on Sound Incentive Compensation Policies issued jointly by the federal regulatory agencies. All cash and equity incentive programs for executive officers include performance metrics and/or four-year vesting periods. ㅁ Midland ◉ States Bancorp, Inc.#45Tangible Book Value Per Share MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (dollars in thousands, except per share data) Total shareholders' equity-GAAP Adjustments: Preferred Stock Goodwill 2017 2018 2019 For the Year Ended 2020 2021 2022 2023 Shareholders' Equity to Tangible Common Equity $ 449,545 $ 608,525 $ 661,911 $ 621,391 $ 663,837 $ 758,574 $ 791,853 (2,970) (2,781) (110,548) (110,548) (98,624) (164,673) (171,758) (161,904) (161,904) (161,904) (161,904) Other intangible assets, net Tangible common equity (16,932) (37,376) (34,886) (28,382) (24,374) (20,866) (16,108) 331,019 403,695 455,267 431,105 477,559 465,256 503,293 Less: Accumulated other comprehensive income (AOCI) 1,758 (2,108) 7,442 11,431 Tangible common equity excluding AOCI S 329,261 $ 405,803 $ 447,825 $ 419,674 $ 5,237 472,322 $ (83,797) (76,753) 549,053 $ 580,046 Common Shares Outstanding 19,122,049 23,751,798 24,420,345 22,325,471 22,050,537 22,214,913 21,551,402 Tangible Book Value Per Share $ 17.31 $ 17.00 $ 18.64 $ 19.31 $ 21.66 $ 20.94 $ 23.35 Tangible Book Value Per Share excluding AOCI $ 17.22 $ 17.09 $ 18.34 $ 18.80 $ 21.42 $ 24.72 $ 26.91 45 45 Midland ◉ States Bancorp, Inc. ㅁ#46Adjusted Earnings Reconciliation MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) For The Year Ended (dollars in thousands, except per share data) 2017 2018 2019 Income before income taxes - GAAP Adjustments to noninterest income: $ 26,471 $ 50,805 $ 72,471 $ 2020 32,014 2021 2022 2023 $ 99,112 $ 129,838 $ 107,573 (Gain) on sales of investment securities, net (222) (464) (674) (1,721) (Gain) on termination of hedged interest rate swaps (537) (2,159) 230 (17,531) 9,372 (Gain) on sale of Visa B shares (1,098) (Gain) on repurchase of subordinated debt (676) Other income 67 (89) 29 17 Total adjustments to noninterest income (155) (553) (645) (1,704) (48) (2,744) (17,301) 7.598 Adjustments to noninterest expense: Impairment related to facilities optimization (1,952) (3,577) (12,847) (Loss) gain on mortgage servicing rights held for sale (4,059) (458) 490 (1,692) (222) (3,250) FHLB advances prepayment fees (4,872) (8,536) Loss on repurchase of subordinated debt (1,778) (193) Integration and acquisition expenses (17,738) (24,015) (5,493) (2,309) (4,356) (347) Total adjustments to noninterest expense (23,749) (24,473) (10,358) (21,913) (13,114) (3,597) Adjusted earnings pre tax - non-GAAP Adjusted earnings tax 50,065 74,725 82,184 52,223 109,482 116,134 115,171 15,170 17,962 19,358 12,040 26,261 27,113 29,682 Adjusted earnings - non-GAAP 34,895 56,763 62,826 40,183 83,221 89,021 85,489 Preferred stock dividends, net 83 141 46 3,169 8.913 Adjusted earnings available to common shareholders $ 34,812 $ 56,622 $ 62,780 $ 40,183 $ 83,221 $ 85,852 $ 76,576 Adjusted diluted earnings per common share $ 1.89 S 2.39 $ 2.54 Adjusted return on average tangible common equity 11.32 % 15.00 % 14.44% 1.70 9.24 % 3.65 $ 3.79 $ 3.42 18.33 % 18.59 % 15.98 % 46 46 Midland ◉ States Bancorp, Inc.#47Efficiency Ratio Reconciliation MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) 2016 2017 2018 For the Year Ended 2019 2020 2021 2022 2023 (dollars in thousands) Noninterest expense - GAAP $ 121,289 $ 152,997 $ 191,643 $ 175,641 $ 184,010 $ 175,069 $ 175,662 $ 173,902 Adjustments to noninterest expense: Impairment related to facilities optimization (2,099) (Loss) gain on mortgage servicing rights held for sale (1,952) (4,059) (3,577) (12,847) (458) 490 (1,692) (222) (3,250) FHLB advances prepayment fees (4,872) (8,536) Loss on repurchase of subordinated debt (511) (1,778) (193) Net expense from FDIC loss share termination agreement (351) Integration and acquisition expenses (2,343) (17,738) (24,015) (5,493) (2,309) (4,356) Adjusted noninterest expense $ 115,985 $ 129,248 $ 167,170 $ 165,283 $ 162,097 $ 161,955 $ (347) 172,065 $ 173,902 Net interest income - GAAP Effect of tax-exempt income Adjusted net interest income 105,254 129,662 180,087 189,815 199,136 2,579 107,833 2,691 132,353 2,095 182,182 2,045 191,860 1,766 200,902 207,675 1,543 209,218 245,735 236,017 1,283 247,018 828 236,845 Noninterest income - GAAP 72,057 59,362 71,791 75,282 61,249 69,899 79,891 66,590 Adjustments to noninterest income: Impairment (recapture) on commercial mortgage servicing 3.135 2,324 (450) 2,139 12,337 7,532 1,263 (Gain) loss on sales of investment securities, net (14,702) (222) (464) (674) (1,721) (537) 230 9,372 (Gain) on termination of hedged interest rate swaps (2,159) (17,531) (Gain) on repurchase of subordinated debt (676) (1,098) (Gain) on sale of Visa B shares Other income Adjusted noninterest income Adjusted total revenue Efficiency ratio 608 61,098 67 61,531 (89) 70,788 29 76,776 17 71,882 (48) 74,687 63,853 74,188 $ 168,931 $ 193,884 $ 252,970 $ 268,636 $ 272,784 $ 283,905 $ 310,871 $ 311,033 68.66% 66.66 % 66.08 % 61.53 % 59.42 % 57.05 % 55.35 % 55.91 % Midland ◉ States Bancorp, Inc.#4848 Adjusted Earnings Reconciliation MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (dollars in thousands, except per share data) Income before income taxes - GAAP Adjustments to noninterest income: December 31, 2023 September 30, 2023 For The Quarter Ended June 30, 2023 March 31, 2023 December 31, 2022 $ 27,152 $ 22,935 $ 28,820 $ 28,666 $ 43,902 2,894 4,961 869 648 Loss on sales of investment securities, net (Gain) on termination of hedged interest rate swaps (17,531) (Gain) on repurchase of subordinated debt (676) (Gain) on sale of Visa B shares Total adjustments to noninterest income (1,098) 1,796 4,961 193 648 (17,531) Adjustments to noninterest expense: (Loss) on mortgage servicing rights held for sale (3,250) Integration and acquisition expenses Total adjustments to noninterest expense (3,250) Adjusted earnings pre tax - non-GAAP 28,948 27,896 29,013 29,314 29,621 Adjusted earnings tax 6,927 8,389 7,297 7,069 7,174 Adjusted earnings - non-GAAP 22,021 19,507 21,716 22,245 22,447 Preferred stock dividends 2,228 2,229 2,228 2,228 3,169 Adjusted earnings available to common shareholders $ 19,793 $ 17,278 $ 19,488 $ 20,017 $ 19,278 Adjusted diluted earnings per common share $ 0.89 $ 0.78 $ 0.87 $ 0.88 $ 0.85 Adjusted return on average assets 1.11 % 0.98 % 1.10 % 1.15 % 1.13 % Adjusted return on average shareholders' equity 11.42 % 10.03 % 11.21 % 11.76 % 11.89 % Adjusted return on average tangible common equity 16.51 % 14.24 % 16.10 % 17.11 % 16.80 % Adjusted Pre-Tax, Pre-Provision Earnings Reconciliation (dollars in thousands) December 31, 2023 September 30, 2023 For the Quarter Ended June 30, 2023 March 31, 2023 December 31, 2022 Adjusted earnings pre tax - non-GAAP $ Provision for credit losses 28,948 6,950 $ 27,896 5,168 $ 29,013 5,879 $ 29,314 3,135 $ 29,621 3,544 Impairment on commercial mortgage servicing rights Adjusted pre-tax, pre-provision earnings - non-GAAP Adjusted pre-tax, pre-provision return on average assets $ 35,898 $ 33,064 $ 34,892 $ 32,449 $ 33,165 1.80 % 1.66 % 1.76 % 1.67 % 1.68 % Midland ◉ ㅁ States Bancorp, Inc.#49Efficiency Ratio Reconciliation MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) December 31, 2023 September 30, 2023 For the Quarter Ended June 30, March 31, December 31, 2023 2023 2022 (dollars in thousands) Noninterest expense - GAAP $ 44,488 $ 42,038 $ 42,894 $ 44,482 $ 49,943 Loss on mortgage servicing rights held for sale (3,250) Integration and acquisition expenses Adjusted noninterest expense $ 44,488 $ 42,038 $ 42,894 $ 44,482 $ 46,693 Net interest income - GAAP Effect of tax-exempt income Adjusted net interest income $ 58,077 $ 58,596 $ 58,840 $ 60,504 $ 63,550 183 205 195 244 286 58,260 58,801 59,035 60,748 63,836 Noninterest income - GAAP 20,513 11,545 18,753 15,779 33,839 Impairment on commercial mortgage servicing rights Loss on sales of investment securities, net 2,894 4,961 869 648 (Gain) on termination of hedged interest rate swaps (17,531) (Gain) on repurchase of subordinated debt Company-owned life insurance enhancement fee Adjusted noninterest income Adjusted total revenue Efficiency ratio (676) 22,309 16,506 18,946 $ 80,569 $ 75,307 $ 77,981 $ 77,175 $ 80,144 16,427 16,308 55.22 % 55.82 % 55.01 % 57.64 % 58.26 % 49 49 Midland ◉ States Bancorp, Inc.#50MIDLAND STATES BANCORP, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited) (continued) Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share (dollars in thousands, except per share data) Shareholders' Equity to Tangible Common Equity December 31, 2023 September 30, 2023 As of June 30, 2023 March 31, 2023 December 31, 2022 Total shareholders' equity-GAAP Adjustments: Preferred Stock Goodwill S 791,853 $ 757,610 $ 776,821 $ 775,643 $ 758,574 (110,548) (110,548) (110,548) (110,548) (110,548) (161,904) (161,904) (161,904) (161,904) (161,904) Other intangible assets, net (16,108) (17,238) (18,367) (19,575) (20,866) Tangible common equity $ 503,293 S 467,920 S 486,002 $ 483,616 $ 465,256 Less: Accumulated other comprehensive income (AOCI) Tangible common equity excluding AOCI $ (76,753) 580,046 $ (101,181) 569,101 $ (84,719) 570,721 $ (77,797) 561,413 (83,797) $ 549,053 Total Assets to Tangible Assets: Total assets GAAP Adjustments: Goodwill S 7,866,868 $ 7,969,285 $ 8,034,721 $ 7,930,174 $ 7,855,501 (161,904) Other intangible assets, net Tangible assets (16,108) (161,904) (17,238) (161,904) (18,367) (161,904) (161,904) (19,575) (20,866) $ 7,688,856 $ 7,790,143 7,854,450 7,748,695 $ 7,672,731 Common Shares Outstanding 21,551,402 21,594,546 21,854,800 22,111,454 22,214,913 Tangible Common Equity to Tangible Assets 6.55 % 6.01 % 6.19 % 6.24 % 6.06 % Tangible Book Value Per Share $ 23.35 $ 21.67 $ Tangible Book Value Per Share, excluding AOCI $ 26.91 $ 26.35 $ 22.24 26.11 $ 21.87 $ 20.94 $ 25.39 $ 24.72 Return on Average Tangible Common Equity (ROATCE) 50 50 (dollars in thousands) Net income available to common shareholders Average total shareholders' equity-GAAP Adjustments: December 31, 2023 September 30, 2023 For the Quarter Ended June 30, 2023 March 31, 2023 December 31, 2022 S 18,483 $ 9,173 S 19,347 $ 19,544 $ 29,703 $ 764,790 $ 771,625 $ 776,791 $ 767,186 $ 749,183 Preferred Stock Goodwill (110,548) (110,548) (110,548) (110,548) (110,548) (161,904) (161,904) (161,904) (161,904) (161,904) Other intangible assets, net (16,644) (17,782) (18,937) (20,184) (22,859) Average tangible common equity $ 475,694 $ 481,391 $ 485,402 $ 474,550 $ 453,872 ROATCE 15.41 % 7.56% 15.99 % 16.70 % 25.89 % Midland ◉ States Bancorp, Inc.