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Investor Presentaiton

Efficiency 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.
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