Midland States hits near 5-year low as bad loan provisions drive Q3 profit miss

Midland States Bancorp

31/10/2025 16:59

Updates

** Community lender Midland States Bancorp's MSBI.O shares fall as much as 10.5%, hitting a near five-year low

** Late Thursday, MSBI reported quarterly profit below expectations for the second consecutive quarter as bad loan provisions weighed

** Provision for credit losses was $20.5 million in Q3, well above estimates of $8.3 million due to an increase in MSBI's loss given default assumptions on equipment finance portfolio

** Bank has also ceased equipment finance production effective September 30

** "We are encouraged by management's decision to cease equipment finance production that should support lower future credit costs. We anticipate shares will underperform tomorrow given the credit-driven EPS miss," brokerage Piper Sandler said

** All five brokerages covering the stock rate it "hold"; median PT $20.50 - data compiled by LSEG

** MSBI stock down 40% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))