Midland States Bancorp Announces Settlement of Prior Tax Issue Resulting in a Tax Benefit and Other Items Impacting Second Quarter 2021 Financial Results
The Company also announced the following balance sheet management actions that will reduce future interest expense and positively impact its net interest margin:
- The prepayment of an
$85 millionlonger-term FHLB advance with an interest rate of 2.54%. The prepayment of the FHLB advance will result in a pre-tax charge of approximately $3.7 millionin the second quarter of 2021. The prepayment is expected to reduce interest expense by approximately $2.2 millionannually and have a six basis point positive impact on the Company’s net interest margin.
- The redemption of
$31 millionof Fixed-to-Floating Rate Subordinated Notes due June 18, 2025, which paid an interest rate of 4.54% at the time of the redemption. The redemption will reduce interest expense by approximately $1.4 millionannually and have a four basis point positive impact on the Company’s net interest margin.
Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, goals, future financial condition and future earnings levels. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including the effects of the COVID-19 pandemic and its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state and local government laws, regulations and orders in connection with the pandemic; changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the
Source: Midland States Bancorp, Inc.