Core Viewpoint - Midland States Bancorp, Inc. announced the reappointment of Jeffrey G. Ludwig as a member of the Federal Advisory Council, highlighting the role of community and regional banks in economic discussions [1][3]. Group 1: 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 December 31, 2025, the company had total assets of approximately $6.51 billion and its Wealth Management Group had assets under administration of approximately $4.48 billion [3]. Group 2: Federal Advisory Council Role - As a member of the Federal Advisory Council, Mr. Ludwig will meet several times each year with the Federal Reserve's Board of Governors and other financial regulatory agencies [2]. - The Council provides the Federal Reserve Board with insights from the financial industry regarding regulatory and monetary policy matters [1][2]. Group 3: Economic Impact - Mr. Ludwig emphasized the importance of including the experiences of small and mid-sized businesses in broader economic discussions [3].

Financial Position - As of December 31, 2025, the company had total assets of $6.51 billion and wealth management assets under administration of approximately $4.48 billion[18]. - The commercial real estate and construction loan portfolio totaled $2.63 billion as of December 31, 2025, with a diversified composition across various property types[27]. - The company sold its LendingPoint portfolio valued at $87.1 million in Q4 2024 and participation interests in $317.5 million of its GreenSky consumer loan portfolio in Q2 2025, retaining $53.6 million[28]. - The company reported a market share of 35.57% in Effingham County, IL, with total deposits of $933.45 million as of June 30, 2025[33]. - The company had 861 employees as of December 31, 2025, with a focus on competitive compensation and benefits to attract and retain skilled personnel[34]. Strategic Approach - The company emphasizes a high-tech, high-touch approach in its strategic plan to enhance customer experience and community banking[19]. - The commercial loan portfolio includes term loans and lines of credit primarily for small and midsized businesses, focusing on secured loans[22]. Risk Management and Compliance - The company is committed to managing credit risk and maintaining sufficient allowances for credit losses on loans[24]. - The company faces competition from various financial service providers, including community banks, credit unions, and FinTech companies[32]. - The Company experienced increased compliance and risk management costs due to heightened regulatory requirements following the Dodd Frank Act, although the Regulatory Relief Act enacted in May 2018 provided some relief[41]. - Federal banking agencies have continued efforts to reduce regulatory burdens, which may positively impact the Company's operations, although future regulatory changes remain uncertain[42]. - The Company is subject to regular examinations by banking agencies, which assess compliance, capital levels, asset quality, and overall risk profile, potentially affecting operations and financial results[43]. Capital Requirements - As of December 31, 2025, the Bank was classified as well capitalized, exceeding the Federal Reserve's capital requirements and complying with the Basel III Rule[60]. - The Basel III Rule increased minimum capital ratios, requiring a Common Equity Tier 1 (CET1) ratio of 7% when including a capital conservation buffer[55]. - The Company has the option to elect the Community Bank Leverage Ratio (CBLR) framework, which could simplify capital requirements, but has not yet made this decision[62]. - The Company is legally obligated to support the Bank financially and managerially, as it is a bank holding company regulated by the Federal Reserve[63]. - The Company must obtain prior approval from the Federal Reserve for any mergers or acquisitions involving banks, ensuring compliance with federal deposit concentration limits[64]. - The Company is generally prohibited from acquiring more than 5% of voting shares in nonbanking entities, with certain exceptions for banking-related businesses[65]. - The Company must maintain a leverage ratio of Tier 1 Capital to total adjusted average quarterly assets of at least 5% to be considered well capitalized[66]. - The Company elected to operate as a financial holding company in 2006, allowing it to engage in a wider range of nonbanking activities[68]. Deposit Insurance and Assessments - The Bank's deposit accounts are insured by the FDIC's DIF up to $250,000 per insured depositor[76]. - The FDIC's special assessment for banking organizations with assets of $5 billion or more is being collected at a quarterly rate of 3.36 basis points for the first seven quarters, decreasing to 2.97 basis points for the eighth quarter[80]. - The Bank paid approximately $0.5 million in supervisory assessments to the DFPR during the year ended December 31, 2025[81]. - The Company must maintain adequate capital levels to pay dividends, with restrictions imposed by the Federal Reserve and the DFPR[87]. Liquidity and Interest Rate Risk - The Bank is required to implement liquidity risk management frameworks to ensure sufficient liquidity, especially in light of recent banking failures[83]. - The FDIC has increased the minimum reserve ratio from 1.15% to 1.35% of total insured deposits following the global financial crisis[79]. - The Bank's net interest income sensitivity to a 200 basis point increase in rates is projected to increase by $5,458,000, representing a 2.5% change as of December 31, 2025[314]. - As of December 31, 2025, the Bank's net interest income sensitivity to a 100 basis point decrease in rates is projected to decrease by $517,000, representing a 0.2% change[314]. - The Bank's interest rate risk management includes monitoring loan and deposit flows, complemented by investment, funding, and hedging activities[309]. - The Bank's Board of Directors' Risk Policy and Compliance Committee oversees interest rate risk and meets quarterly to ensure compliance with approved risk limits[310]. - The Bank's NII at Risk analysis reflects various interest rate scenarios, including shocks and gradual ramps, to model sensitivity to changes in market interest rates[313]. Regulatory Compliance - The Bank's total commercial real estate (CRE) loans are monitored for concentration risk, with guidelines indicating that loans exceeding 300% of capital may warrant greater supervisory scrutiny[103]. - The Bank is subject to the Community Reinvestment Act (CRA), which requires it to meet the credit needs of the entire community, including low- and moderate-income neighborhoods[99]. - The Bank's compliance with the Bank Secrecy Act (BSA) includes establishing policies for customer identification and reporting suspicious activities[102]. - The Bank's operations are influenced by the Consumer Financial Protection Bureau (CFPB), which has broad rulemaking authority over consumer protection laws[105]. - The Bank's risk management processes include addressing cybersecurity risks as part of overall enterprise risk management[97]. Credit Losses - Management's evaluation of the allowance for credit losses on loans involves significant estimates and judgments, considering factors such as historical loan loss experience and economic conditions[319]. - Regulatory agencies review the allowance for credit losses on loans and may require adjustments based on their evaluations[320]. - The Company believes the current level of the allowance for credit losses on loans is appropriate[320].

Core Viewpoint - Thrivent Financial for Lutherans significantly reduced its stake in Midland States Bancorp by 67.9% in Q3, indicating a shift in investment strategy towards the financial services provider [2] Institutional Holdings - AQR Capital Management LLC increased its holdings in Midland States Bancorp by 38.1% in Q2, now owning 540,997 shares valued at $9.37 million after purchasing an additional 149,175 shares [3] - Los Angeles Capital Management LLC acquired a new position valued at approximately $1.01 million in Q2 [3] - Jump Financial LLC raised its holdings by 272.5%, now owning 55,500 shares worth $961,000 after buying an additional 40,600 shares [3] - Qube Research & Technologies Ltd purchased a new stake valued at $693,000 [3] - Arrowstreet Capital Limited Partnership increased its position by 33.6%, owning 133,194 shares worth $2.31 million after buying an additional 33,532 shares [3] - Institutional investors and hedge funds collectively own 60.93% of Midland States Bancorp's stock [3] Analyst Ratings and Price Targets - Piper Sandler raised the target price from $23.00 to $25.50, maintaining a "neutral" rating [4] - Wall Street Zen upgraded the stock from "sell" to "hold" [4] - DA Davidson increased the target price from $23.00 to $24.00, also giving a "neutral" rating [4] - UBS Group set a price objective of $25.50 [4] - Keefe, Bruyette & Woods raised their target price from $17.00 to $19.00, rating it as "market perform" [4] - The consensus rating for Midland States Bancorp is "Hold" with a target price of $23.00 [4] Insider Transactions - COO Kyle Owen Mooney sold 2,808 shares at an average price of $22.67, totaling $63,657.36, representing a 16.50% decrease in ownership [5] - Insider Daniel Edward Casey acquired 5,000 shares at an average cost of $17.89, totaling $89,450, representing a 21.50% increase in ownership [5] - Insiders purchased a total of 11,098 shares valued at $197,324 in the last quarter, with insiders owning 5.27% of the company's stock [5] Financial Performance - Midland States Bancorp reported Q4 earnings of $0.53 per share, missing the consensus estimate of $0.70 by $0.17 [7] - The company had revenue of $85.79 million, exceeding analyst estimates of $74.49 million [7] - The net margin was 6.62% and return on equity was 10.41% [7] - Analysts predict an EPS of 2.53 for the current fiscal year [7] Stock Performance and Dividends - MSBI stock opened at $23.16, with a 12-month low of $14.24 and a high of $24.57 [6] - The company has a market capitalization of $499.10 million, a P/E ratio of 22.93, and a beta of 0.66 [6] - A quarterly dividend of $0.32 per share was declared, representing an annualized dividend of $1.28 and a yield of 5.5% [8] - The dividend payout ratio is currently 126.73% [8] Stock Buyback Program - Midland States Bancorp initiated a stock buyback program allowing the repurchase of $25 million in outstanding shares, indicating the board's belief that the stock is undervalued [9]

Core Insights - Midland States Bancorp, Inc. (NASDAQ:MSBI) is recognized among the Dividend Champions, Contenders, and Challengers List, highlighting its strong dividend yield [1] - DA Davidson raised its price target for Midland States Bancorp to $24 from $23 while maintaining a Neutral rating, citing a refocus on community banking and improved credit discipline as potential drivers for future performance [2][8] Financial Performance - In Q4 2025, Midland's earnings fell short of expectations, but management emphasized a commitment to improving credit quality and reducing risk in the loan portfolio [3] - The common equity tier 1 ratio improved to 9.89%, approaching the company's 10% target, and the company repurchased $9.6 million of its common stock during the quarter [4] - The Community Bank segment experienced approximately 6.5% annualized loan growth, supported by a healthy net interest margin, while the wealth management business achieved another record quarter [5] Strategic Focus - The company is prioritizing improvements in credit quality, having upgraded its credit team and tightened underwriting standards without raising new capital [3] - Management plans to continue investing in core business areas, expecting momentum to carry into 2026 [5]

Core Viewpoint - Midland States Bancorp, Inc. has announced that Patriot Financial Partners, L.P. has acquired a position in the Company's common stock and that James F. Deutsch has been appointed to the Board of Directors [1][3]. Group 1: Company Developments - Patriot Financial Partners, L.P. has made open-market purchases of Midland States Bancorp's common stock [1]. - James F. Deutsch, a partner at Patriot and former CEO of Team Capital Bank, has joined the Board of Directors effective February 3, 2026 [1][2]. - The Company emphasizes the importance of partnering with sophisticated investors like Patriot to enhance shareholder returns and expand its franchise [3]. Group 2: Management Insights - Jeffrey C. Smith, Chairman of the Company, expressed enthusiasm about Mr. Deutsch's appointment and highlighted his extensive experience in the banking industry [3]. - Jeffrey G. Ludwig, President and CEO, noted that the investment from Patriot affirms the Company's direction and mission [3]. - Mr. Deutsch expressed his honor in joining the board and his commitment to assist in executing the Company's future growth strategies [3]. Group 3: Company Overview - Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, with total assets of approximately $6.51 billion as of December 31, 2025 [4]. - The Company's Wealth Management Group manages assets under administration of approximately $4.48 billion [4]. - Midland States Bancorp provides a full range of commercial and consumer banking products and services, including trust and investment management, insurance, and financial planning services [4].

Core Viewpoint - Midland States Bancorp (MSBI) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][4]. - The upgrade reflects a positive outlook on Midland States Bancorp's earnings, which could lead to increased buying pressure and a rise in stock price [3][5]. Impact of Institutional Investors - Institutional investors play a role in the relationship between earnings estimates and stock price movements, as they adjust their valuations based on these estimates, leading to buying or selling actions that affect stock prices [4]. Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and stock movements, highlighting the importance of tracking these revisions for investment decisions [6]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. Current Earnings Estimates for Midland States Bancorp - Analysts expect Midland States Bancorp to earn $2.66 per share for the fiscal year ending December 2026, with no year-over-year change, but the Zacks Consensus Estimate has increased by 2.6% over the past three months [8]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of "buy" and "sell" ratings across its universe of over 4,000 stocks, with only the top 5% receiving a "Strong Buy" rating [9]. - The upgrade to Zacks Rank 1 places Midland States Bancorp in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Insights - Midland States Bancorp, Inc. (MSBI) reported an earnings per share (EPS) of -$0.24, missing the estimated EPS of $0.70, indicating ongoing financial challenges [2][6] - The company generated revenue of approximately $85.79 million, exceeding the estimated revenue of about $73.64 million, representing a 13.2% year-over-year increase [3][6] - Despite losses, MSBI's adjusted earnings and revenue growth suggest potential for recovery, with a price-to-sales ratio of about 0.98 and an enterprise value to sales ratio of 2.11 [5][6] Financial Performance - The fourth quarter of 2025 was impacted by a $21.4 million loss from the sale of its equipment finance portfolio and a $1.6 million loss from a small consumer loan portfolio sale [4] - Excluding these transactions, adjusted earnings available to common shareholders were $11.9 million, or $0.53 per diluted share, showing significant improvement from the previous year's loss [4] Financial Ratios - MSBI has a negative price-to-earnings (P/E) ratio of approximately -4.30 and a negative earnings yield of -23.23%, indicating current losses [5] - The company's market value is close to its sales, as indicated by its price-to-sales ratio of about 0.98 and enterprise value to sales ratio of 2.11, suggesting potential for recovery [5][6]

分组1 - Midland States Bancorp (MSBI) reported quarterly earnings of $0.53 per share, missing the Zacks Consensus Estimate of $0.70 per share, compared to a loss of $2.52 per share a year ago, representing an earnings surprise of -24.29% [1] - The company posted revenues of $85.57 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 9.01%, and compared to year-ago revenues of $75.6 million [2] - The stock has gained approximately 12.1% since the beginning of the year, outperforming the S&P 500's gain of 0.4% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.65 on revenues of $74.15 million, and for the current fiscal year, it is $2.66 on revenues of $300.55 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 33% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Core Insights - Midland States Bancorp reported a net loss of $5.1 million, or $0.24 per diluted share, for Q4 2025, contrasting with a net income of $5.3 million, or $0.24 per diluted share, in Q3 2025, and a net loss of $33.0 million, or $1.52 per diluted share, in Q4 2024 [1][8][21] Financial Performance - The financial results for Q4 2025 included a loss of $21.4 million from the sale of the equipment finance portfolio and a $1.6 million loss from a small consumer loan portfolio. Adjusted earnings, excluding these losses, were $11.9 million, or $0.53 per diluted share [2][8] - The net interest margin for Q4 2025 was 3.74%, down from 3.79% in Q3 2025, but showed an increase of 5 basis points when excluding interest recoveries from the previous quarter [8][16] - Noninterest income increased to $26.9 million in Q4 2025 from $20.0 million in Q3 2025, driven by $6.6 million in additional credit enhancement income [22] Asset Quality and Loan Portfolio - The ratio of nonperforming assets to total assets was 1.02%, consistent with the prior quarter, while nonperforming loans decreased to $65.5 million from $68.7 million in Q3 2025 [8][9] - Total loans decreased to $4.35 billion, a reduction of $515.6 million from Q3 2025, primarily due to the sale of the equipment finance portfolio [14] - The provision for credit losses on loans was $11.8 million for Q4 2025, down from $20.5 million in Q3 2025, reflecting a replenishment of reserves following higher net charge-offs [13][21] Capital Position - The common equity tier 1 capital ratio improved to 9.89%, approaching the target of 10.0%. The total capital to risk-weighted assets ratio was 15.16% [6][25] - The company repurchased $9.6 million of common stock during Q4 2025, with approximately $15 million remaining under the share repurchase program [6][24] Business Outlook - The company aims to continue improving credit quality and has taken significant steps to reduce risk in its loan portfolio while enhancing its balance sheet without raising additional capital [5] - Revenue trends remain positive, with a strong net interest margin and approximately 6.5% annualized loan growth in the Community Bank, alongside record performance in the wealth management business [7][12]

Financial Performance - Net loss available to common shareholders was $5.1 million, or $0.24 per diluted share, for Q4 2025, compared to a net income of $5.3 million, or $0.24 per diluted share, for Q3 2025[2] - Adjusted earnings available to common shareholders were $11.9 million, or $0.53 per diluted share, for Q4 2025, excluding a $21.4 million loss on the sale of the equipment finance portfolio[3] - Net income (loss) for the quarter was $(2,888) thousand, compared to a profit of $7,557 thousand in the prior quarter, indicating a significant decline[33] - Basic earnings (loss) per common share was $(0.24), down from $0.24 in the previous quarter, reflecting a substantial decrease[33] - Adjusted diluted earnings per common share for Q4 2025 was $0.53, compared to $0.24 in Q3 2025, representing a substantial increase of 120.8%[37] Loan and Deposit Activity - Total loans decreased by $515.6 million to $4.35 billion at December 31, 2025, primarily due to the sale of the equipment finance portfolio[15] - Community Bank originated $180 million in new loans during Q4 2025, with a 6.5% annualized loan growth[9] - Total loans, net decreased to $4,282,785 thousand from $4,766,701 thousand in the previous quarter, a decline of approximately 10.1%[31] - Total loans decreased to $4,352,004 thousand as of December 31, 2025, down from $5,167,574 thousand a year earlier, representing a decline of approximately 15.7%[35] - Total deposits decreased to $5,424,379 thousand, down from $5,604,825 thousand in the previous quarter, representing a decrease of about 3.2%[31] - Total deposits decreased to $5,424,379 thousand as of December 31, 2025, down from $6,197,243 thousand a year earlier, a decline of approximately 12.5%[35] Credit Losses and Provisions - Provision for credit losses on loans was $11.8 million for Q4 2025, down from $20.5 million in Q3 2025[7] - The provision for credit losses in Q4 2025 was $11,625 thousand, compared to $20,005 thousand in Q3 2025, showing a decrease of 41.9%[38] - The allowance for credit losses on loans decreased to $69.2 million, or 1.59% of total loans, from $100.9 million, or 2.07%, at the end of Q3 2025[11] Revenue and Expenses - Noninterest income for the fourth quarter of 2025 was $26.9 million, up from $20.0 million in the third quarter of 2025[22] - Total noninterest income increased to $26,867 thousand, up from $20,016 thousand in the prior quarter, marking an increase of about 34.1%[33] - Noninterest expense increased to $77.2 million in the fourth quarter of 2025, compared to $49.8 million in the third quarter of 2025[22] - Total noninterest expense rose to $77,192 thousand, significantly higher than $49,814 thousand in the previous quarter, representing an increase of approximately 55%[33] Asset Management - Wealth Management revenue totaled $8.3 million in Q4 2025, with assets under administration increasing to $4.48 billion[15] - The company’s Wealth Management Group had assets under administration of approximately $4.48 billion as of December 31, 2025[25] Capital and Equity - The company repurchased $9.6 million of common stock during the quarter, reflecting a strong capital position[8] - As of December 31, 2025, total capital to risk-weighted assets was 14.27%, exceeding the minimum regulatory requirement of 10.50%[23] - Total shareholders' equity decreased to $565,499,000 as of December 31, 2025, from $584,001,000 in September 2025[41] - Tangible common equity stood at $438,148,000 as of December 31, 2025, compared to $455,907,000 in September 2025[41] Asset Quality - Nonperforming assets to total assets ratio remained stable at 1.02% in Q4 2025, consistent with the prior quarter[7] - Tangible Common Equity to Tangible Assets Ratio increased to 6.75% as of December 31, 2025, up from 6.61% in September 2025[41] Efficiency Metrics - The efficiency ratio for the fourth quarter of 2025 was 63.11%, compared to 61.25% in the third quarter of 2025[21] - The efficiency ratio for Q4 2025 was reported at 63.11%, an increase from 61.25% in Q3 2025, indicating a decline in operational efficiency[40]