Midland States Bancorp(MSBI) - 2025 Q4 - Annual Results

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]