Midland States slides after bad loan provisions drive Q3 miss

Midland States Bancorp

31/10/2025 16:09

** Community lender Midland States Bancorp's MSBI.O shares slide 9.1% to $14.57

** 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 mgmt'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

** All five brokerages covering the stock "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;))