Midland States Bancorp, Inc.MSBI
Midland States Bancorp, Inc. Segments Disclosure
SEGMENT INFORMATION
The Company's reportable segments are determined by the Chief Executive Officer, who is the designated chief operating decision maker, based upon information provided about the Company's products and services offered, primarily distinguished between Banking, Wealth Management and Corporate. They are also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products and services, and customers are similar. The chief operating decision maker analyzes the financial performance of the Company's segments, allocates resources and assesses compensation of certain employees by evaluating revenue streams, significant expenses and budget to actual results. The performance of the Banking segment is assessed by monitoring the margin between interest income and interest expense related to loans, investments, deposits and other borrowings. Pretax profit and loss is used to assess the performance of the Wealth Management segment. Interest expense, provisions for credit losses and payroll provide the significant expenses in the Banking segment, while payroll provides the significant expenses in the Wealth Management segment.
The Banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services; and corporate treasury management services.
The Wealth Management segment consists of trust and fiduciary services, brokerage and retirement planning services.
The Corporate segment includes the holding company financing and investment activities, administrative expenses, as well as the elimination of intercompany transactions.
Reported segments and the financial information of the reported segments are not necessarily comparable with similar information reported by other financial institutions. Additionally, because of the interrelationships of the various segments, the information presented is not indicative of how the segments would perform if they operated as independent entities. Changes in management structure or allocation methodologies and procedures may result in future changes to previously reported segment financial data. See Note 1 for additional information regarding the accounting policies of the Company's segments.
Transactions between segments consist primarily of borrowed funds and servicing fees. Noninterest income and expense directly attributable to a segment are assigned to it with various shared service costs such as human resources, accounting, finance, risk management and information technology expense assigned to the Banking segment.
Selected business segment financial information for the years ended December 31, 2025, 2024 and 2023 were as follows:
| (dollars in thousands) | Banking | Wealth Management | Corporate | Total | |||||||||||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| Interest income | $ | 387,867 | $ | — | $ | — | $ | 387,867 | |||||||||||||||
| Interest expense | 142,706 | 76 | 8,281 | 151,063 | |||||||||||||||||||
| Net interest income (expense) | 245,161 | (76) | (8,281) | 236,804 | |||||||||||||||||||
| Provision for credit losses | 59,849 | — | — | 59,849 | |||||||||||||||||||
| Wealth management revenue | — | 31,019 | — | 31,019 | |||||||||||||||||||
| Credit enhancement income | 9,904 | — | — | 9,904 | |||||||||||||||||||
| Other noninterest income | 51,798 | — | (4,541) | 47,257 | |||||||||||||||||||
| Total noninterest income | 61,702 | 31,019 | (4,541) | 88,180 | |||||||||||||||||||
| Salaries and employee benefits | 87,989 | 16,411 | — | 104,400 | |||||||||||||||||||
| Depreciation expense | 4,848 | 44 | — | 4,892 | |||||||||||||||||||
| Amortization of intangible assets | 2,199 | 1,025 | — | 3,224 | |||||||||||||||||||
| Impairment on goodwill | 153,977 | — | — | 153,977 | |||||||||||||||||||
Other noninterest expense(1) | 109,898 | 6,600 | (2,988) | 113,510 | |||||||||||||||||||
| Total noninterest expense | 358,911 | 24,080 | (2,988) | 380,003 | |||||||||||||||||||
| Income (loss) before income taxes (benefit) | (111,897) | 6,863 | (9,834) | (114,868) | |||||||||||||||||||
| Income tax expense | 7,008 | 2,181 | 224 | 9,413 | |||||||||||||||||||
| Net income (loss) | $ | (118,905) | $ | 4,682 | $ | (10,058) | $ | (124,281) | |||||||||||||||
| Total assets | $ | 6,525,874 | $ | 36,548 | $ | (49,002) | $ | 6,513,420 | |||||||||||||||
| (dollars in thousands) | Banking | Wealth Management | Corporate | Total | |||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| Interest income | $ | 426,113 | $ | — | $ | 15 | $ | 426,128 | |||||||||||||||
| Interest expense | 180,643 | 51 | 9,088 | 189,782 | |||||||||||||||||||
| Net interest income (expense) | 245,470 | (51) | (9,073) | 236,346 | |||||||||||||||||||
| Provision for credit losses | 120,332 | — | — | 120,332 | |||||||||||||||||||
| Wealth management revenue | — | 28,697 | — | 28,697 | |||||||||||||||||||
| Credit enhancement income | 60,998 | — | — | 60,998 | |||||||||||||||||||
| Other noninterest income | 49,123 | — | (77) | 49,046 | |||||||||||||||||||
| Total noninterest income | 110,121 | 28,697 | (77) | 138,741 | |||||||||||||||||||
| Salaries and employee benefits | 79,011 | 14,628 | — | 93,639 | |||||||||||||||||||
| Depreciation expense | 4,950 | 43 | — | 4,993 | |||||||||||||||||||
| Amortization of intangible assets | 2,900 | 1,108 | — | 4,008 | |||||||||||||||||||
Other noninterest expense(1) | 101,855 | 6,111 | (2,751) | 105,215 | |||||||||||||||||||
| Total noninterest expense | 188,716 | 21,890 | (2,751) | 207,855 | |||||||||||||||||||
| Income (loss) before income taxes (benefit) | 46,543 | 6,756 | (6,399) | 46,900 | |||||||||||||||||||
| Income tax expense (benefit) | 10,037 | 3,257 | (4,438) | 8,856 | |||||||||||||||||||
| Net income (loss) | $ | 36,506 | $ | 3,499 | $ | (1,961) | $ | 38,044 | |||||||||||||||
| Total assets | $ | 7,486,121 | $ | 32,303 | $ | (11,615) | $ | 7,506,809 | |||||||||||||||
| (dollars in thousands) | Banking | Wealth Management | Corporate | Total | |||||||||||||||||||
Year Ended December 31, 2023 | |||||||||||||||||||||||
| Interest income | $ | 416,997 | $ | — | $ | 103 | $ | 417,100 | |||||||||||||||
| Interest expense | 159,316 | 12 | 8,951 | 168,279 | |||||||||||||||||||
| Net interest income (expense) | 257,681 | (12) | (8,848) | 248,821 | |||||||||||||||||||
| Provision for credit losses | 82,560 | — | — | 82,560 | |||||||||||||||||||
| Wealth management revenue | — | 25,572 | — | 25,572 | |||||||||||||||||||
| Credit enhancement income | 48,194 | — | — | 48,194 | |||||||||||||||||||
| Other noninterest income | 40,830 | — | 188 | 41,018 | |||||||||||||||||||
| Total noninterest income | 89,024 | 25,572 | 188 | 114,784 | |||||||||||||||||||
| Salaries and employee benefits | 79,584 | 13,854 | — | 93,438 | |||||||||||||||||||
| Depreciation expense | 4,722 | 56 | — | 4,778 | |||||||||||||||||||
| Amortization of intangible assets | 3,564 | 1,194 | — | 4,758 | |||||||||||||||||||
Other noninterest expense(1) | 86,798 | 5,143 | (1,832) | 90,109 | |||||||||||||||||||
| Total noninterest expense | 174,668 | 20,247 | (1,832) | 193,083 | |||||||||||||||||||
| Income (loss) before income taxes (benefit) | 89,477 | 5,313 | (6,828) | 87,962 | |||||||||||||||||||
| Income tax expense (benefit) | 27,348 | 2,309 | (2,850) | 26,807 | |||||||||||||||||||
| Net income (loss) | $ | 62,129 | $ | 3,004 | $ | (3,978) | $ | 61,155 | |||||||||||||||
| Total assets | $ | 7,768,201 | $ | 31,437 | $ | (9,592) | $ | 7,790,046 | |||||||||||||||
(1) Other noninterest expense for Banking includes occupancy and equipment, data processing, FDIC insurance, professional services, marketing, communications, loan expense and other miscellaneous expenses. Other noninterest expense for Wealth Management includes occupancy and equipment, data processing, professional services, marketing, communications and other miscellaneous expenses. Other noninterest expense for Corporate includes data processing, professional services, marketing and other miscellaneous expenses.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Jul 1, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 6, 2018 | |
| 2016 | Mar 10, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.