Midland States Bancorp's Q3 net income drops sharply; exits equipment finance business

Midland States Bancorp

31/10/2025 01:32

Overview

Midland States Bancorp Q3 net income falls to $5.3 mln, or $0.24 per share, from $18.2 mln, or $0.83 per share, last year

Company ceased equipment finance production to reduce risk exposure

Net interest margin rises to 3.79% from 3.56% in the prior quarter

Outlook

Midland States Bancorp expects common equity tier 1 capital ratio to reach the 10% target, as it improved to 9.4% in the quarter

Companystopped all new originations in its equipment finance portfolio to reduce exposure to higher-risk assets

Midland States Bancorp anticipates a positive impact on net interest margin from the reduction of higher-cost deposits

Result Drivers

EQUIPMENT FINANCE PROVISION - $15 mln provision in equipment finance portfolio due to increased loss assumptions

NONPERFORMING ASSETS - Decreased to $70 mln, or 1.02% of total assets, from 2.10% at the end of 2024, reflecting efforts to reduce problem loans

NET INTEREST MARGIN - Increased to 3.79% QoQ due to lower funding costs and interest recovery

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.24


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Midland States Bancorp Inc is $20.50, about 21.9% above its October 30 closing price of $16.02

Press Release: ID:nGNX1TlTk8

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)