Midland States Bancorp, Inc.MSBI

Midland States Bancorp, Inc. Leases Disclosure

10-KFiled Jul 1, 20251 min read
OPERATING LEASES - LESSOR
The Company provides financing for various types of equipment through operating leasing arrangements. The equipment leased to others is carried at cost less accumulated depreciation in other assets on our consolidated balance sheets. The Company had equipment leased to others of $30.7 million and $58.0 million at December 31, 2024 and December 31, 2023, respectively, net of accumulated depreciation of $18.1 million and $21.2 million at December 31, 2024 and December 31, 2023, respectively. The Company recorded lease income of $16.1 million and $18.0 million related to lease payments for operating leases in other income on our consolidated statements of income for the years ended December 31, 2024 and 2023, respectively. Depreciation expense related to leased equipment was $12.6 million and $14.7 million for the years ended December 31, 2024 and 2023, respectively.
The Company performs assessment of the recoverability of long-lived assets when events or changes in circumstances indicate their carrying values may not be recoverable. During the year ended December 31, 2024, the Company recognized impairment losses of $6.0 million associated with equipment leased to others in other expenses on our consolidated statements of income.
The future lease payments receivable from operating leases as of December 31, 2024 are as follows:
(dollars in thousands)Amount
Year ending December 31:
2025$9,043 
20263,730 
20272,401 
20281,254 
2029698 
Thereafter48 
Total future minimum lease payments17,174 

Historical Timeline

Fiscal YearFiled
2024Jul 1, 2025Showing above
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 28, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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