Tim Delas's questions to Midland States Bancorp (MSBI) leadership • Q4 2022
Question
Tim Delas of Raymond James, on for Daniel Tamayo, requested an update on the Banking-as-a-Service (BaaS) strategy, the nature of deposits from potential partners, the company's comfort with its loan-to-deposit ratio, and the expected tax rate for 2023.
Answer
Executive Eric Lemke described the BaaS strategy as a slow, deliberate process focused on deposit-gathering partners, with funding costs expected to be 'materially cheaper than wholesale.' Executive Jeffrey Ludwig stated the current loan-to-deposit ratio near 100% is as high as desired and expects the GreenSky runoff to help lower it. Eric Lemke also projected the 2023 effective tax rate would remain stable with the Q4 2022 level.