Core Viewpoint - Midland States Bancorp reported a decline in revenue and a significant loss in EPS for the quarter ended December 2024, indicating challenges in financial performance despite a slight revenue surprise over estimates [1]. Financial Performance Summary - Revenue for the quarter was $75.6 million, down 3.8% year-over-year, but exceeded the Zacks Consensus Estimate by 2.36% [1]. - EPS was reported at -$2.52, a significant drop from $0.89 in the same quarter last year, resulting in an EPS surprise of -460.00% compared to the consensus estimate of $0.70 [1]. Key Metrics Analysis - Efficiency Ratio was reported at 71.4%, significantly higher than the average estimate of 62.7% from two analysts [4]. - Average Interest-Earning Assets were $7.01 billion, slightly below the estimated $7.06 billion [4]. - Net charge-offs to average loans were reported at 7.2%, far exceeding the average estimate of 0.5% [4]. - Net Interest Margin was 3.2%, slightly above the average estimate of 3.1% [4]. - Wealth management revenue reached $7.66 million, surpassing the average estimate of $7.08 million [4]. - Service charges on deposit accounts were $3.51 million, exceeding the average estimate of $3.13 million [4]. - Net Interest Income (FTE) was $56.26 million, above the estimated $55.32 million [4]. - Residential mortgage banking revenue was $0.64 million, slightly below the average estimate of $0.68 million [4]. - Total Noninterest Income was $19.56 million, exceeding the average estimate of $18.15 million [4]. - Interchange revenue was reported at $3.53 million, below the average estimate of $3.78 million [4]. Stock Performance - Shares of Midland States Bancorp returned -0.4% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

Company Performance - Midland States Bancorp (MSBI) reported a quarterly loss of $2.52 per share, significantly below the Zacks Consensus Estimate of $0.70, and a decline from earnings of $0.89 per share a year ago, representing an earnings surprise of -460% [1] - The company posted revenues of $75.6 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.36%, but down from year-ago revenues of $78.59 million [2] - Over the last four quarters, Midland States Bancorp has surpassed consensus EPS estimates just once, while it has topped consensus revenue estimates three times [2] Future Outlook - The immediate price movement of Midland States Bancorp's stock will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the coming quarter is $0.64 on revenues of $72.75 million, and for the current fiscal year, it is $2.78 on revenues of $298.1 million [7] - The estimate revisions trend for Midland States Bancorp is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Zacks Industry Rank for Banks - Northeast, to which Midland States Bancorp belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Net Loss and Profitability - Net loss available to common shareholders of $54.8 million, or $2.52 per diluted share, compared to net income of $16.2 million in the prior quarter[3] - Net loss in Q4 2024 was $52.541 million, compared to a net income of $18.476 million in Q3 2024 and $20.711 million in Q4 2023[53] - Net loss for Q4 2024 was $52.541 million, a significant decline from a net income of $18.476 million in Q3 2024 and $20.711 million in Q4 2023[57] - Adjusted diluted loss per common share for Q4 2024 was $2.52, compared to earnings of $0.74 in Q3 2024 and $0.89 in Q4 2023[59] Loan Portfolio and Credit Losses - Sold $87.1 million LendingPoint consumer loan portfolio, recognizing net charge-offs and provision for credit losses of $17.3 million[5] - Committed to a plan to sell $371.7 million Greensky portfolio, recognizing net charge-offs and provision for credit losses of $33.4 million[5] - Net charge-offs on loans of $102.7 million and provision for credit losses on loans of $93.5 million to address credit issues[6] - Provision expense for credit losses on loans of $93.5 million in the fourth quarter of 2024[19] - Provision for credit losses in Q4 2024 surged to $93.540 million, a significant increase from $5.000 million in Q3 2024 and $6.950 million in Q4 2023[53] - Total provision for credit losses in Q4 2024 surged to $93.540 million, significantly higher than $5.000 million in Q3 2024 and $6.950 million in Q4 2023[57] Net Interest Income and Margin - Net interest margin of 3.19%, compared to 3.10% in the prior quarter[6] - Net interest income increased to $56.3 million in Q4 2024, up from $55.2 million in Q3 2024, with a net interest margin of 3.19% compared to 3.10% in the previous quarter[23] - Net interest income for the year ended December 31, 2024, decreased to $222.8 million, with a net interest margin of 3.15%, compared to $236.8 million and 3.26% in 2023[30] - Net interest income for Q4 2024 was $56.035 million, a 2% increase from Q3 2024 but a 3.5% decrease from Q4 2023[53] - Net interest income for Q4 2024 was $56.035 million, a slight increase from $54.950 million in Q3 2024 but a decrease from $58.077 million in Q4 2023[57] Asset and Loan Performance - Total assets decreased to $7.53 billion at December 31, 2024, from $7.75 billion at September 30, 2024[13] - Loans decreased by $581.2 million, or 10.1%, primarily due to the sale of Greensky and LendingPoint consumer loan portfolios[14] - Nonperforming loans increased $25.6 million to $140.1 million at December 31, 2024[18] - Total assets as of December 31, 2024, were $7.529 billion, a decrease from $7.751 billion in September 2024 and $7.867 billion in December 2023[55] - Loans held for sale increased significantly to $346.565 million in December 2024, up from $8.001 million in September 2024[55] - Total assets—GAAP decreased to $7,529,055 thousand in December 2024 from $7,866,868 thousand in December 2023[65] - Tangible assets were $7,355,051 thousand in December 2024, compared to $7,688,856 thousand in December 2023[65] Deposit Performance - Total deposits were $6.20 billion at December 31, 2024, compared with $6.26 billion at September 30, 2024[21] - Total deposits as of December 31, 2024, were $6.20 billion, down from $6.26 billion in September 2024[22] - Total deposits as of December 31, 2024, were $6.197 billion, slightly down from $6.257 billion in September 2024[55] Noninterest Income and Expense - Noninterest income for Q4 2024 was $19.6 million, compared to $19.3 million in Q3 2024 and $20.5 million in Q4 2023[34][35] - Wealth management revenue increased by $0.6 million (7.8%) to $7.7 million in Q4 2024 compared to Q3 2024[36] - Noninterest expense for Q4 2024 was $54.2 million, including $7.6 million of impairment on equipment financing operating lease collateral and surrendered equipment[39][41] - Noninterest income for Q4 2024 was $19.561 million, slightly up from $19.339 million in Q3 2024 but down from $20.513 million in Q4 2023[57] - Noninterest expense for Q4 2024 increased to $54.183 million, compared to $46.733 million in Q3 2024 and $44.488 million in Q4 2023[57] Efficiency and Capital Ratios - The efficiency ratio for Q4 2024 was 71.42%, compared to 62.76% for Q3 2024 and 55.22% for Q4 2023[40] - Total capital to risk-weighted assets was 12.75% for Midland States Bank and 13.38% for Midland States Bancorp, Inc. as of December 31, 2024[43] - Efficiency ratio for Q4 2024 was 71.42%, higher than 62.76% in Q3 2024 and 55.22% in Q4 2023[62] - Tangible Common Equity to Tangible Assets Ratio increased to 6.14% as of December 31, 2024, compared to 6.55% in December 2023[65] - Tangible common equity to tangible assets ratio decreased to 6.14% in December 2024 from 7.03% in September 2024[53] Shareholder Equity and Book Value - Accumulated other comprehensive loss of $82.0 million at December 31, 2024 reduced tangible book value by $3.81 per share[44] - Book value per share at period end decreased to $29.10 in December 2024 from $33.08 in September 2024[53] - Tangible Book Value Per Share decreased to $21.01 in December 2024 from $23.35 in December 2023[65] - Tangible Book Value Per Share, excluding AOCI, was $24.82 in December 2024, down from $26.91 in December 2023[65] - Total shareholders' equity—GAAP stood at $736,113 thousand as of December 31, 2024, a decrease from $791,853 thousand in December 2023[65] - Tangible common equity was $451,561 thousand in December 2024, down from $503,293 thousand in December 2023[65] - Tangible common equity excluding AOCI was $533,521 thousand in December 2024, down from $580,046 thousand in December 2023[65] Interest Rates and Yields - Average interest-earning assets for Q4 2024 were $7.01 billion, down from $7.07 billion in Q3 2024, with a yield decrease of 11 basis points to 5.80%[24] - Average loans for Q4 2024 were $5.65 billion, down from $5.78 billion in Q3 2024, with a loan yield of 6.04% compared to 6.15% in the previous quarter[25] - Investment securities averaged $1.21 billion in Q4 2024, yielding 4.73%, up from $1.16 billion and 4.71% in Q3 2024[26] - Average interest-bearing liabilities for Q4 2024 were $5.69 billion, down from $5.76 billion in Q3 2024, with a cost of funds decrease of 24 basis points to 3.21%[27] - Average interest-bearing deposits for Q4 2024 were $5.24 billion, up from $5.13 billion in Q3 2024, with a cost decrease of 21 basis points to 3.04%[28] - The yield on earning assets increased 26 basis points to 5.83% for the year ended December 31, 2024, while the cost of interest-bearing liabilities increased 44 basis points to 3.31%[31] - Total interest-earning assets for the year ended December 31, 2024, averaged $7.08 billion, yielding 5.83%, compared to $7.27 billion and 5.57% in 2023[32] Wealth Management and Trust Assets - Wealth management revenue increased by $0.6 million (7.8%) to $7.7 million in Q4 2024 compared to Q3 2024[36] - Assets under administration were $4.15 billion at December 31, 2024, compared to $4.27 billion and $3.73 billion at September 30, 2024 and December 31, 2023, respectively[36] - Trust assets under administration stood at $4.153 billion in December 2024, down from $4.269 billion in September 2024 but up from $3.733 billion in December 2023[53] Share Repurchase and Capital - The Company did not repurchase any shares of its common stock during Q4 2024 under the $25.0 million share repurchase program authorized in December 2023[45] - Common shares outstanding decreased to 21,494,485 in December 2024 from 21,551,402 in December 2023[65] Adjusted Earnings and Ratios - Adjusted pre-tax, pre-provision earnings for Q4 2024 were $21.460 million, down from $27.523 million in Q3 2024 and $35.898 million in Q4 2023[53] - Adjusted return on average tangible common equity for Q4 2024 was -41.74%, compared to 12.67% in Q3 2024 and 16.51% in Q4 2023[59] - Adjusted pre-tax, pre-provision return on average assets for Q4 2024 was 1.11%, down from 1.42% in Q3 2024 and 1.80% in Q4 2023[60] - Adjusted pre-tax, pre-provision earnings for Q4 2024 were $21.460 million, down from $27.523 million in Q3 2024 and $35.898 million in Q4 2023[60] Other Comprehensive Loss and AOCI - Accumulated other comprehensive loss (AOCI) increased to $(81,960) thousand in December 2024 from $(76,753) thousand in December 2023[65] Income Tax - Income tax benefit for Q4 2024 was $19.6 million, compared to expenses of $4.1 million for Q3 2024 and $6.4 million for Q4 2023[42]

Core Points - Midland States Bancorp reported a net loss of $54.8 million, or $2.52 per diluted share, for Q4 2024, a significant decline from a net income of $16.2 million, or $0.74 per diluted share, in Q3 2024 and $18.5 million, or $0.84 per diluted share, in Q4 2023 [1][3][6] Financial Performance - Adjusted pre-tax, pre-provision earnings were $21.5 million, down from $27.5 million in the previous quarter [6] - Net interest margin improved to 3.19%, compared to 3.10% in the prior quarter [6][21] - Wealth management revenue increased to $7.7 million from $7.1 million in the previous quarter [6][33] Credit Quality and Loan Portfolio - The company faced credit quality issues primarily in non-core consumer loans, Specialty Finance Group, and Midland Equipment Financing [2][5] - Significant actions were taken to reduce the non-core consumer loan portfolio, including the sale of an $87.1 million LendingPoint portfolio and a commitment to sell a $371.7 million Greensky portfolio, resulting in net charge-offs of $17.3 million and $33.4 million, respectively [3][6][11] - Nonperforming loans increased to $140.1 million, up $25.6 million from the previous quarter [15][14] Balance Sheet Highlights - Total assets decreased to $7.53 billion from $7.75 billion at the end of Q3 2024 [10] - Portfolio loans declined to $5.17 billion, down from $5.75 billion in the previous quarter [10][11] - Total deposits were $6.20 billion, a slight decrease from $6.26 billion at the end of Q3 2024 [18][19] Noninterest Income and Expense - Noninterest income for Q4 2024 was $19.6 million, slightly up from $19.3 million in Q3 2024 [33] - Noninterest expense rose to $54.2 million from $46.7 million in the previous quarter, driven by impairment charges [38][39] Strategic Actions - The company is focusing on improving credit quality and has tightened credit standards going forward, ceasing new construction loans in the Specialty Finance Group [5][8] - The CEO emphasized the importance of reducing credit risk and positioning the company for growth in core community banking [8][9]

Analysts on Wall Street project that Midland States Bancorp (MSBI) will announce quarterly earnings of $0.70 per share in its forthcoming report, representing a decline of 21.4% year over year. Revenues are projected to reach $73.85 million, declining 6% from the same quarter last year.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over th ...

EFFINGHAM, Ill., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ: MSBI) announced today that it will issue its fourth quarter 2024 financial results after market close on Thursday, January 23, 2025. 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 State Bancorp, Inc. Midland States Bancorp, Inc. is a community-ba ...

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Midland States Bancorp, Inc. (MSBI) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, MSBI's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving ave ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are underva ...

Midland States Bancorp (MSBI) reported $74.29 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 3.2%. EPS of $0.74 for the same period compares to $0.78 a year ago.The reported revenue represents a surprise of +1.91% over the Zacks Consensus Estimate of $72.9 million. With the consensus EPS estimate being $0.63, the EPS surprise was +17.46%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare ...