Core Insights - Midland States Bancorp, Inc. has sold its equipment finance portfolio to North Mill Equipment Finance LLC for $502 million in cash, closing the transaction on November 28, 2025 [1][2] - The sale aligns with the company's strategy to focus on community banking operations and is expected to be accretive to capital while being approximately neutral to earnings [4] Financial Details - The equipment finance portfolio sold consisted of approximately $599 million in loans and leases outstanding, with a net amount of $565 million after accounting for credit losses, and included $21 million of operating leases [2] - The company will retain approximately $75 million of loans and leases, resulting in a total reduction of approximately $545 million in loans and leases compared to October 31, 2025 [2] - A pre-tax loss on the sale, including transaction-related expenses, is expected to be around $20 million in the fourth quarter of 2025 [3] Strategic Focus - The transaction is part of the company's strategy to improve its credit profile and redeploy capital more effectively, enhancing its balance sheet and reducing exposure to higher-risk asset classes [4] - The company ceased originating new equipment finance loans and leases as of September 30, 2025, further emphasizing its shift towards community banking and wealth management [4] Company Background - Midland States Bancorp, Inc. is a community-based financial holding company with total assets of approximately $6.91 billion as of September 30, 2025, and its Wealth Management Group manages assets under administration of about $4.36 billion [5] - The company offers a full range of commercial and consumer banking products, including trust and investment management, insurance, and financial planning services [5] North Mill Equipment Finance LLC - North Mill Equipment Finance LLC is a national lender that primarily finances small- to mid-ticket commercial equipment leases and loans, serving businesses across various industries [6]