EFFINGHAM, Ill., Jan. 02, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) announced today that it will issue its fourth quarter 2025 financial results after market close on Thursday, January 22, 2026. Along with the press release announcing the financial results, the Company will publish an investor presentation that will be available on the Webcasts and Presentations page of its investor relations website. About Midland States Bancorp, Inc. Midland States Bancorp, Inc. is a community-b ...

Group 1 - Midland States Bancorp, Inc. (MSBI) has reached a key level of support, indicating a potential investment opportunity from a technical perspective [1] - A "golden cross" has occurred, with MSBI's 50-day simple moving average crossing above its 200-day simple moving average, suggesting a potential bullish breakout [1] - Over the past four weeks, MSBI has gained 31.9%, and it currently holds a 3 (Hold) rating on the Zacks Rank, indicating the stock could be poised for further upward movement [3] Group 2 - The golden cross pattern consists of three stages: a downtrend that bottoms out, a crossover of the shorter moving average over the longer one, and an upward price trend [2] - There have been no downward changes in earnings expectations for MSBI over the past 60 days, with the Zacks Consensus Estimate moving up, reinforcing the bullish outlook [3] - Investors are encouraged to consider adding MSBI to their watchlist due to the significant technical indicator and positive earnings estimate trends [4]

Core Insights - Midland States Bancorp, Inc. has sold its equipment finance portfolio to North Mill Equipment Finance LLC for $502 million in cash, closing the transaction on November 28, 2025 [1][2] - The sale aligns with the company's strategy to focus on community banking operations and is expected to be accretive to capital while being approximately neutral to earnings [4] Financial Details - The equipment finance portfolio sold consisted of approximately $599 million in loans and leases outstanding, with a net amount of $565 million after accounting for credit losses, and included $21 million of operating leases [2] - The company will retain approximately $75 million of loans and leases, resulting in a total reduction of approximately $545 million in loans and leases compared to October 31, 2025 [2] - A pre-tax loss on the sale, including transaction-related expenses, is expected to be around $20 million in the fourth quarter of 2025 [3] Strategic Focus - The transaction is part of the company's strategy to improve its credit profile and redeploy capital more effectively, enhancing its balance sheet and reducing exposure to higher-risk asset classes [4] - The company ceased originating new equipment finance loans and leases as of September 30, 2025, further emphasizing its shift towards community banking and wealth management [4] Company Background - Midland States Bancorp, Inc. is a community-based financial holding company with total assets of approximately $6.91 billion as of September 30, 2025, and its Wealth Management Group manages assets under administration of about $4.36 billion [5] - The company offers a full range of commercial and consumer banking products, including trust and investment management, insurance, and financial planning services [5] North Mill Equipment Finance LLC - North Mill Equipment Finance LLC is a national lender that primarily finances small- to mid-ticket commercial equipment leases and loans, serving businesses across various industries [6]

Core Viewpoint - Midland States Bancorp, Inc. announced the retirement of Jeffrey S. Mefford as President of Midland States Bank effective June 30, 2026, after 22 years with the Bank, including seven years as President [1][2] Leadership Transition - Jeremy A. Jameson will be promoted to Executive Vice President - Chief Banking Officer of Midland States Bank, overseeing Regional Presidents, commercial lending, and credit, reporting to CEO Jeff Ludwig [3][4] - The company emphasizes a smooth transition plan and acknowledges Mefford's contributions to the growth and client relationships of the Bank [2][4] Company Overview - Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, with total assets of approximately $6.91 billion as of September 30, 2025 [5] - The Wealth Management Group of the company manages assets under administration of approximately $4.36 billion, offering a full range of banking products and services [5]

Loan Portfolio and Credit Quality - As of September 30, 2025, the outstanding loans in the third-party loan origination program were $56.5 million, down from $62.3 million as of December 31, 2024, representing a decrease of approximately 12.9%[171] - The Company recognized net charge-offs of $35.0 million when transferring the GreenSky consumer loan portfolio to held for sale[173] - The Company operated three significant programs for unsecured loans prior to March 31, 2025, but is now only operating one such program[169] - Total loans decreased by $300.0 million, or 5.8%, to $4.87 billion at September 30, 2025, compared to December 31, 2024[223] - The loan portfolio's commercial loans increased to $1.48 billion, representing 30.3% of total loans as of September 30, 2025, compared to $1.36 billion and 26.3% at December 31, 2024[222] - Commercial real estate loans accounted for 48.0% of total loans at $2.34 billion as of September 30, 2025, down from 50.1% at December 31, 2024[222] - The allowance for credit losses on loans was $100.9 million, or 2.07% of total loans, at September 30, 2025, down from $111.2 million, or 2.15%, at December 31, 2024[226] - The allowance allocated to commercial loans totaled $39.0 million, or 2.64% of total commercial loans, at September 30, 2025, compared to $42.8 million, or 3.15%, at December 31, 2024[230] - The allowance allocated to commercial real estate loans decreased to $26.8 million, or 1.15%, at September 30, 2025, from $36.8 million, or 1.42%, at December 31, 2024, with outstanding loan balances decreasing by $255.0 million, or 9.8%[231] - The allowance allocated to residential real estate loans totaled $6.4 million, or 1.81%, at September 30, 2025, down from $8.0 million, or 2.10%, at December 31, 2024[233] - The allowance allocated to consumer loans was $5.0 million, or 3.87%, at September 30, 2025, compared to $5.4 million, or 3.74%, at December 31, 2024[234] - Nonperforming loans decreased to $68.7 million, or 1.41% of total loans, at September 30, 2025, down from $150.9 million, or 2.92% of total loans, at December 31, 2024[240] - The provision for credit losses on loans totaled $20.5 million for Q3 2025, up from $17.9 million in Q3 2024, with a total of $48.2 million for the nine months ended September 30, 2025, compared to $46.1 million for the same period in 2024[203] - Total charge-offs for the three months ended September 30, 2025, were $16.0 million, a decrease from $23.0 million in the same period of 2024, representing a 30.4% reduction[237] - For the nine months ended September 30, 2025, total charge-offs increased to $67.4 million from $58.3 million in the prior year, marking a 15.7% increase[239] - The company continues to prioritize improving credit quality by tightening loan underwriting standards and resolving nonperforming loans[240] Financial Performance - For the three months ended September 30, 2025, the company reported net income of $7.6 million, a decrease from $20.4 million in the same period of 2024, resulting in diluted earnings per common share of $0.24 compared to $0.83[176] - During the nine months ended September 30, 2025, the company experienced a net loss of $121.4 million, or diluted loss per common share of $5.88, compared to net income of $68.8 million, or diluted earnings per common share of $2.81, in the same period of 2024[177] - Noninterest income decreased by $13.5 million in Q3 2025 and $42.1 million in the nine months ended September 30, 2025, compared to the same periods in 2024[177] - Noninterest expense increased significantly by $153.7 million in the nine months ended September 30, 2025, primarily due to a $154.0 million goodwill impairment recognized in Q1 2025[177] - The company’s return on average assets was 0.43% for Q3 2025, down from 1.05% in Q3 2024, and return on average shareholders' equity was 5.20%, down from 10.22%[176] - Wealth management revenue increased by $0.9 million for Q3 2025 and $1.7 million for the nine months ended September 30, 2025, with assets under administration rising to $4.36 billion from $4.27 billion year-over-year[205] - Salaries and employee benefits increased by $2.0 million for Q3 2025 and $7.1 million for the nine months ended September 30, 2025, primarily due to annual salary increases and severance expenses[210] Impairment and Goodwill - The Company recognized a goodwill impairment expense of $154.0 million in the first quarter of 2025 due to a quantitative impairment test indicating that the carrying amount exceeded the fair value of the Banking reporting unit[167] - The fair value of the Banking reporting unit exceeded its carrying amount by approximately 7% as of December 31, 2024, indicating no impairment loss at that time[163] - The discount rate used in the quantitative impairment test as of March 31, 2025, was 15.9%, an increase from 13.4% at December 31, 2024, due to a rise in the company-specific risk premium from 2.5% to 6.0%[167] - The company recognized a goodwill impairment expense of $154.0 million during Q1 2025, impacting the financial results significantly[213] Interest Income and Expense - Net interest income for Q3 2025 was $61.3 million, up from $59.3 million in Q3 2024, with a tax-equivalent net interest margin increasing to 3.79% from 3.34%[181] - For the nine months ended September 30, 2025, net interest income on a tax-equivalent basis was $178.8 million, with a net interest margin of 3.61%, compared to $178.4 million and 3.35% in the same period of 2024[182] - Interest income decreased by $10.5 million to $98.7 million for Q3 2025 compared to Q3 2024, primarily due to a decline in earning assets[192] - Average earning assets decreased to $6.41 billion in Q3 2025 from $7.07 billion in Q3 2024, with average loans decreasing by $835.7 million[193] - Interest expense decreased by $12.5 million to $37.4 million for Q3 2025 compared to Q3 2024, with the cost of interest-bearing liabilities decreasing to 2.84%[199] - Interest expense on deposits decreased by $11.8 million to $30.2 million for Q3 2025, primarily due to a decrease in rates paid on deposits[200] - For the nine months ended September 30, 2025, interest expense decreased by $26.2 million to $117.7 million compared to the same period in 2024[201] - The yield on earning assets decreased by three basis points to 6.11% from 6.14% in Q3 2025[192] Capital and Liquidity - Total assets decreased to $6.91 billion at September 30, 2025, down from $7.51 billion at December 31, 2024[216] - Total deposits decreased by $592.4 million to $5,604,825 thousand as of September 30, 2025, compared to December 31, 2024[254] - Shareholders' equity decreased by $126.8 million to $584.0 million, primarily due to a net loss of $121.4 million[257] - Total liabilities decreased to $6.33 billion from $6.80 billion at December 31, 2024[253] - The company redeemed $50.8 million of subordinated debt on September 30, 2025, which had an interest rate of 7.91%[254] - Total estimated liquidity as of September 30, 2025, was $2,393,973 thousand, down from $2,616,246 thousand at December 31, 2024[261] - The company had $1,048,227 thousand in FHLB committed liquidity as of September 30, 2025, compared to $1,290,246 thousand at December 31, 2024[261] - As of September 30, 2025, Midland States Bancorp, Inc. reported a total risk-based capital ratio of 14.29%, exceeding the regulatory requirement of 10.50%[263] - Midland States Bank's Tier 1 risk-based capital ratio stood at 12.08%, surpassing the minimum requirement of 8.50%[263] - The Common equity tier 1 risk-based capital ratio for Midland States Bancorp, Inc. was 9.37%, above the regulatory minimum of 7.00%[263] Interest Rate Risk Management - The NII at Risk analysis for September 30, 2025, indicated a dollar change of $1,204 for a +100 basis point shift in rates, reflecting a 0.5% increase[272] - For December 31, 2024, the NII at Risk showed a dollar change of $(2,727) for a +100 basis point shift, indicating a 1.2% decrease[272] - The company maintained compliance with board policy limits for all interest rate scenarios as of September 30, 2025[272] - Interest rate risk management involves monitoring loan and deposit flows, complemented by investment, funding, and hedging activities[267] - The company is positioned to benefit from a declining rate environment, projecting increasing profitability[273] - Price risk is present from investment securities, derivative instruments, and equity investments, which are subject to fair value accounting[274] - The company has adopted a strategy to lower short-term rates through deposit pricing and securities purchase selection[273]

Core Insights - The trucking industry's financial struggles are impacting banks, with Midland States Bancorp reporting $5 million in equipment finance charge-offs in Q3, leading to a complete withdrawal from equipment financing [1][2][3] Group 1: Midland States Bancorp's Actions - Midland's equipment finance loan balance decreased by 26.1% year-over-year to $326.9 million, with leases down 25.5% to $311 million [3] - The decision to stop writing new equipment finance deals was made to reduce exposure to higher-risk asset classes, indicating a significant shift in strategy [3][6] - In Q3, trucking losses accounted for nearly half of the bank's total charge-offs of $12.3 million, despite an overall decrease of 45% from the previous year [5] Group 2: Industry-Wide Trends - Other lenders, such as Beacon Financial and Banc of California, are also scaling back on equipment financing due to rising nonperforming loans and missed payments from carriers [2][7] - First Citizens BancShares is increasing its collections efforts to mitigate potential losses, reflecting a broader concern within the banking sector regarding the trucking industry's financial health [2]

Core Viewpoint - Midland States Bancorp, Inc. has announced a new stock repurchase program authorizing the repurchase of up to $25 million of its common stock, effective from November 3, 2025, to November 2, 2026, reflecting confidence in its capital position and growth potential [1][2]. Group 1: Stock Repurchase Program - The new stock repurchase program allows the company to buy back up to $25 million of its common stock [1]. - The previous stock repurchase program expired on December 31, 2024 [1]. - Repurchases may occur on the open market or through privately negotiated transactions, depending on various factors such as price and market conditions [2]. Group 2: Company Overview - Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank [3]. - As of September 30, 2025, the company had total assets of approximately $6.91 billion, with its Wealth Management Group managing assets under administration of about $4.36 billion [3]. - The company offers a comprehensive range of banking products and services, including commercial and consumer banking, business equipment financing, and financial planning services [3].

Financial Performance - The company reported net income available to common shareholders of $5.3 million, or $0.24 per diluted share, for Q3 2025, a decrease from $9.8 million, or $0.44 per diluted share, in Q2 2025, and down from $18.2 million, or $0.83 per diluted share, in Q3 2024 [1][7][18] - Pre-provision net revenue was $31.3 million, or $1.43 per diluted share, compared to $32.2 million, or $1.48 per diluted share, in the previous quarter [7][18] - Noninterest income for Q3 2025 was $20.0 million, down from $23.5 million in Q2 2025, with a notable loss on credit enhancement income of $0.2 million compared to a gain of $3.8 million in the prior quarter [19] Credit Quality and Risk Management - The company recorded a provision for credit losses on loans of $20.5 million for Q3 2025, primarily due to increased loss given default assumptions in the equipment finance portfolio [8][19] - Nonperforming assets decreased to $70 million, or 1.02% of total assets, down from 2.10% at the end of 2024, indicating improved asset quality [4][7] - The company ceased originations in the equipment finance portfolio effective September 30, 2025, as part of its strategy to reduce exposure to higher-risk asset classes [4][8] Capital Position - The common equity tier 1 capital ratio improved to 9.4%, with a target of 10.0% [5][21] - The company redeemed $50.75 million in subordinated notes, utilizing existing liquidity [5][21] - Total capital to risk-weighted assets was reported at 14.29%, exceeding regulatory requirements [21] Revenue and Growth Trends - The net interest margin increased to 3.79%, up from 3.56% in the prior quarter, driven by a decline in the cost of funding [13][18] - Wealth management revenue reached a record $8 million in Q3 2025, contributing positively to overall revenue trends [6][11] - Total loans decreased to $4.87 billion, a reduction of $167.7 million from the previous quarter, with a focus on reducing specialty finance and equipment finance portfolios [11][18] Operational Efficiency - The efficiency ratio was reported at 61.25%, slightly higher than 60.60% in the previous quarter [18] - Noninterest expense was $49.8 million for Q3 2025, including $1.0 million in severance expenses related to the cessation of equipment finance originations [19]

Core Viewpoint - Midland States Bancorp reported quarterly earnings of $0.24 per share, significantly missing the Zacks Consensus Estimate of $0.61 per share, and down from $0.74 per share a year ago, indicating a -60.66% earnings surprise [1][2] Financial Performance - The company posted revenues of $81.13 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.73%, and up from $74.29 million year-over-year [2] - Over the last four quarters, Midland States Bancorp has exceeded consensus revenue estimates four times [2] Stock Performance - Shares of Midland States Bancorp have declined approximately 33.8% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.67 on revenues of $80.45 million, and for the current fiscal year, it is $2.17 on revenues of $318.9 million [7] - The trend of estimate revisions for Midland States Bancorp was mixed prior to the earnings release, which may change following the recent report [6] Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 14% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Financial Performance - Net income available to common shareholders for Q3 2025 was $5.3 million, or $0.24 per diluted share, down from $9.8 million, or $0.44 per diluted share in Q2 2025[2] - Diluted earnings per common share for the third quarter of 2025 were $0.24, compared to $0.44 in the previous quarter[21] - Adjusted earnings available to common shareholders were $5,318 thousand for the three months ended September 30, 2025, compared to $9,796 thousand in the previous quarter, reflecting a decline of 45.24%[37] - Basic earnings per common share were $0.24, down from $0.44 in the previous quarter, reflecting a decrease of 45.45%[33] - Return on average assets for the third quarter of 2025 was 0.43%, down from 0.67% in the previous quarter[21] Asset and Liability Management - Total assets as of September 30, 2025, were approximately $6.91 billion, a decrease from $7.15 billion in the previous quarter[25] - Total liabilities decreased to $6,327,514 thousand, down from $6,534,173 thousand in the previous quarter, representing a decline of 3.17%[31] - Total deposits were $5.60 billion, a decrease of $342.1 million from the previous quarter[15] - Total deposits decreased to $5,604,825 thousand, down from $5,946,919 thousand in the previous quarter, a decline of 5.75%[31] - Total loans decreased by $167.7 million to $4.87 billion as of September 30, 2025[12] - Total loans decreased to $4,867,587 thousand as of September 30, 2025, down from $5,035,295 thousand in the previous quarter, representing a decline of 3.34%[35] Credit Quality - Nonperforming assets decreased to $70 million, or 1.02% of total assets, down from 2.10% at December 31, 2024[6] - Provision for credit losses on loans was $20.5 million for Q3 2025, primarily due to increased loss given default assumptions[13] - Net charge-offs for the quarter were $12.3 million, including $5.0 million from the equipment finance portfolio[13] - Provision for credit losses increased to $20,005 thousand, compared to $17,369 thousand in the previous quarter, indicating a rise in expected credit losses[38] Revenue and Expenses - Noninterest income for the third quarter of 2025 was $20.0 million, down from $23.5 million in the second quarter of 2025, primarily due to a loss on credit enhancement income[19] - Noninterest income for the quarter was $20,016 thousand, down from $23,534 thousand in the previous quarter, a decrease of 15.56%[40] - Noninterest expense for the third quarter of 2025 was $49.8 million, including $1.0 million in severance expenses related to ceasing equipment finance originations[24] - Noninterest expense for the quarter was $49,814 thousand, slightly down from $49,992 thousand in the previous quarter, a decrease of 0.36%[33] Capital and Ratios - The common equity tier 1 capital ratio improved to 9.4%, with a target of 10.0%[7] - The Company redeemed $50.75 million in subordinated notes on September 30, 2025, and exceeded all regulatory capital requirements under Basel III[22] - Tangible Common Equity to Tangible Assets Ratio increased to 6.61% as of September 30, 2025, up from 6.27% in June 2025[41] - Tangible Book Value Per Share rose to $21.16 in September 2025, compared to $20.68 in June 2025[41] - The efficiency ratio for the third quarter of 2025 was 61.25%, compared to 60.60% in the second quarter of 2025[21] - The efficiency ratio for the quarter was 61.25%, an increase from 60.60% in the previous quarter, indicating a decline in operational efficiency[40] - The effective tax rate for the third quarter of 2025 was 33.2%, up from 19.1% in the previous quarter[24] Wealth Management - Wealth management revenue reached a record $8 million in Q3 2025, with assets under administration increasing to $4.36 billion[15] - Trust assets under administration increased to $4.36 billion as of September 30, 2025, from $4.18 billion in the previous quarter[21]