Overview

* Midland States Bancorp ( MSBI ) 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 ( MSBI ) 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 ( MSBI ) 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/Mis Actual Consensu

s s

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 ( MSBI ) is $20.50, about 21.9% above its October 30 closing price of $16.02

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)