Midland States Bancorp, Inc. Announces 2024 Fourth Quarter Results

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]