Midland States Bancorp(US:MSBI)2025-10-30 20:05Financial 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]