Midland States Bancorp stock: Q3 profit rises as credit improves
Published on 10/30/2026 at 00:45 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSMidland States zeigt operativen Fortschritt
- Die Bank steigerte ihr Nettoergebnis gegenüber dem Vorjahresquartal deutlich.
- Das Kreditwachstum im Community-Bank-Geschäft setzte sich fort, während Nicht-Kernportfolios weiter reduziert wurden.
- Sinkende Problemkredite verbesserten die Qualität der Bilanz, zugleich gingen die Einlagen im Quartalsvergleich zurück.
Midland States Bancorp reported stronger third-quarter results on October 22, with higher earnings and improving credit indicators. The company said net income available to common shareholders reached 20.6 million US dollars, or 0.95 US dollars per diluted share, for the period ended September 30. The figures were published in the company's official third-quarter results release.
Profitability improved, but funding mix shifted
Net income available to common shareholders rose from 5.3 million US dollars in the year-earlier quarter. The company also reported a 4.03% net interest margin, up from 3.98% in the second quarter. Management said the margin benefited in part from a 1.6 million US dollar interest recovery tied to the payoff of a nonaccrual loan, while higher funding costs provided an offset.
Total loans increased to 4.28 billion US dollars at September 30, including 23.7 million US dollars of net growth in the Community Bank portfolio. Specialty finance loans also increased, while non-core loans declined as the company continued its planned runoff of those portfolios.
Credit quality remained a key focus
Midland States said nonperforming assets represented 0.86% of total assets, down from 0.91% at the end of the prior quarter. Nonperforming loans fell to 58.7 million US dollars, while net charge-offs were 5.4 million US dollars. The company attributed part of the charge-offs to two previously identified nonperforming commercial real estate relationships.
The improvement in credit measures supports management's stated effort to resolve legacy credit issues and strengthen the balance sheet. However, total deposits declined to 5.62 billion US dollars, mainly because of reductions in retail balances associated with liquidity and deposit-pricing actions. This leaves funding trends and the durability of loan growth as important factors for investors to monitor.
Capital and outlook
Midland States reported a common equity Tier 1 capital ratio of 10.36% at the end of the quarter. Its board's previously authorized share-repurchase program allows up to 45.0 million US dollars of repurchases through December 31, 2026, with approximately 24.8 million US dollars still available at the quarter-end date. Management said it expects an effective tax rate of approximately 23% for the full year, subject to changes in earnings mix, tax legislation and other factors.
Midland States Bancorp: key facts
- Company: Midland States Bancorp, Inc.
- Ticker: MSBI
- Exchange: Nasdaq
- Reporting period: Third quarter ended September 30, 2026
- Net income available to common shareholders: 20.6 million US dollars
- Diluted earnings per share: 0.95 US dollars
- Net interest margin: 4.03%
- Nonperforming assets to total assets: 0.86%
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