DA Davidson Raises Midland States Bancorp (MSBI) Target to $24, Keeps Neutral After Q4

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]