I want my report to show Last name, first name, and middle initial, how can I do this?

Hi, @Gruyeah Kpahn

Also too, you can use approach with Custom Formula field.  

For example,  

Create Formula field on the Contact object.

LastName & " " & UPPER(LEFT(FirstName, 1)) & "." & UPPER(LEFT(MiddleName, 1)) & "."

Since we plan to use this field only in the Report, we don't need to add it to the Page Layout.

Also, this formula can be improved by adding checks to ensure that all fields are filled in so that nothing is added if they are empty:

LastName & IF(ISBLANK(FirstName), "", " " & UPPER(LEFT(FirstName, 1)) & ".") & IF(ISBLANK(MiddleName), "", UPPER(LEFT(MiddleName, 1)) & ".")

Result:Sincerely, 

Mykhailo Vdovychenko 

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