Midland States Bancorp, Inc. (MSBI) Bundle
A Brief History of Midland States Bancorp, Inc.
Midland States Bancorp, Inc. (MSBI) has undergone significant transformations since its inception in 1881. The company has evolved from a small community bank into a diversified financial services institution, serving both individual and commercial clients.
Recent Financial Performance
As of September 30, 2024, Midland States Bancorp reported total assets of $7.75 billion. The net income available to common shareholders for the third quarter of 2024 was $16.25 million, compared to $4.52 million in the previous quarter and $9.17 million in the same quarter of 2023.
Loan Portfolio Overview
The company’s loan portfolio as of September 30, 2024, consisted of:
| Loan Type | Amount (in $ thousands) |
|---|---|
| Commercial Loans | $863,922 |
| Equipment Finance Loans | $442,552 |
| Residential Real Estate | $378,657 |
| Commercial Real Estate | $2,510,472 |
| Total Loans | $5,748,819 |
The total loans decreased by $103.2 million, or 1.8%, from June 30, 2024. The company has focused on reducing its equipment financing and consumer loan portfolios while increasing its commercial loan opportunities.
Deposits and Funding
Total deposits were reported at $6.26 billion as of September 30, 2024, showing an increase from $6.12 billion in the previous quarter. The breakdown of the deposit portfolio is as follows:
| Deposit Type | Amount (in $ thousands) |
|---|---|
| Noninterest-bearing Demand | $1,050,617 |
| Interest-bearing Checking | $2,389,970 |
| Money Market | $1,187,139 |
| Savings | $510,260 |
| Time Deposits | $849,413 |
Income and Expenses
For the third quarter of 2024, the company reported a net interest income of $54.95 million, with a net interest margin of 3.10%. Noninterest income totaled $19.34 million, reflecting growth compared to previous quarters. The noninterest expense for the same period was $46.73 million, which included costs related to staffing and technology upgrades.
Regulatory Capital Ratios
Midland States Bancorp exceeded all regulatory capital requirements under Basel III, with the following capital ratios as of September 30, 2024:
| Capital Measure | Ratio |
|---|---|
| Total Capital to Risk-Weighted Assets | 13.98% |
| Tier 1 Capital to Risk-Weighted Assets | 11.65% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 9.00% |
| Tier 1 Leverage Ratio | 10.10% |
The company has demonstrated resilience in its capital management, maintaining a strong balance sheet amid fluctuating economic conditions.
Market Data
As of September 30, 2024, the market price of Midland States Bancorp's common stock was $22.38. The book value per share was reported at $33.08, with a tangible book value per share of $24.90.
A Who Owns Midland States Bancorp, Inc. (MSBI)
Ownership Structure
As of 2024, Midland States Bancorp, Inc. (MSBI) has a diversified ownership structure composed of institutional investors, retail investors, and company insiders. The following table outlines the significant shareholders and their respective ownership percentages:
| Shareholder Type | Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 2,845,582 | 13.32% |
| Institutional Investor | The Vanguard Group, Inc. | 2,395,106 | 11.21% |
| Institutional Investor | State Street Corporation | 1,267,982 | 5.92% |
| Insider | Jeffrey G. Ludwig (CEO) | 200,000 | 0.93% |
| Insider | Other Executive Officers | 150,000 | 0.70% |
| Retail Investor | Public Float | 17,000,335 | 79.02% |
Major Institutional Shareholders
The following table provides a summary of the top institutional shareholders of Midland States Bancorp, Inc. as of 2024:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 2,845,582 | 13.32% |
| The Vanguard Group, Inc. | 2,395,106 | 11.21% |
| State Street Corporation | 1,267,982 | 5.92% |
| Invesco Ltd. | 1,000,000 | 4.67% |
| Dimensional Fund Advisors LP | 850,000 | 3.97% |
Stock Performance and Market Trends
Midland States Bancorp, Inc. has shown resilience in its stock performance amid fluctuating market conditions. As of September 30, 2024, the stock price stood at $22.38, reflecting a year-to-date performance increase of approximately 8.5%. The market capitalization of MSBI is approximately $478 million, based on 21.39 million shares outstanding.
Insider Ownership and Transactions
Insider ownership plays a critical role in the governance of Midland States Bancorp, Inc. The following table summarizes recent insider transactions:
| Insider | Transaction Date | Shares Purchased | Price per Share |
|---|---|---|---|
| Jeffrey G. Ludwig | October 15, 2024 | 10,000 | $22.00 |
| Other Executive Officers | October 15, 2024 | 5,000 | $22.00 |
Conclusion on Ownership Dynamics
Understanding the ownership dynamics of Midland States Bancorp, Inc. is crucial for stakeholders. The diverse mix of institutional and retail investors, along with significant insider ownership, indicates a stable shareholder base. The ongoing engagement from management and the strategic direction being pursued are pivotal for the company's future growth.
Midland States Bancorp, Inc. (MSBI) Mission Statement
Overview of the Mission Statement
Midland States Bancorp, Inc. (MSBI) aims to deliver exceptional financial services with a focus on customer satisfaction, community involvement, and sustained growth. The mission emphasizes integrity, teamwork, and innovation in all operations.
Core Values
- Customer Focus: Prioritizing the needs of customers in all initiatives.
- Community Engagement: Actively investing in local communities.
- Integrity: Upholding the highest ethical standards in all transactions.
- Innovation: Leveraging technology to enhance service delivery.
- Teamwork: Fostering a collaborative work environment that encourages growth and development.
Financial Performance Indicators
As of September 30, 2024, Midland States Bancorp reported the following financial metrics that reflect its operational effectiveness and commitment to its mission:
| Financial Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income Available to Common Shareholders | $16.2 million | $4.5 million | $9.2 million |
| Earnings per Share (Diluted) | $0.74 | $0.20 | $0.41 |
| Net Interest Income | $54.9 million | $55.1 million | $58.6 million |
| Efficiency Ratio | 62.76% | 65.16% | 55.82% |
| Total Assets | $7.75 billion | $7.76 billion | $7.97 billion |
| Total Deposits | $6.26 billion | $6.12 billion | $6.32 billion |
Investment in Community
Midland States Bancorp is committed to enhancing its community through various initiatives, including financial literacy programs and local sponsorships, which are aligned with its mission statement. The company’s operational strategies focus on creating long-term relationships with stakeholders through community engagement.
Strategic Goals
- Market Expansion: Increase market share in existing and new regions.
- Product Innovation: Develop new financial products that meet evolving customer needs.
- Operational Efficiency: Continuously improve processes to enhance service delivery and reduce costs.
- Risk Management: Strengthen risk assessment frameworks to ensure financial stability.
Recent Developments
As part of its mission-driven approach, Midland States Bancorp has made strategic investments in technology and talent, aiming to improve customer experience and operational efficiency. The company reported an increase in wealth management revenue to $7.1 million in Q3 2024, reflecting its commitment to expanding service offerings and enhancing client relations.
Conclusion on Mission Effectiveness
The mission of Midland States Bancorp is effectively supported by its financial performance and community involvement. The company's strategic focus on customer service, innovation, and community engagement continues to drive its growth.
How Midland States Bancorp, Inc. (MSBI) Works
Company Overview
Midland States Bancorp, Inc. (MSBI) operates as a bank holding company for Midland States Bank, providing a range of financial services including commercial banking, wealth management, and mortgage banking. As of September 30, 2024, the company reported total assets of $7.75 billion.
Financial Performance
For the third quarter of 2024, Midland States Bancorp reported net income available to common shareholders of $16.2 million, or $0.74 per diluted share, compared to $4.5 million, or $0.20 per diluted share, for the second quarter of 2024. This reflects an increase from $9.2 million, or $0.41 per diluted share, in the third quarter of 2023.
Net Interest Income and Margin
During the third quarter of 2024, Midland States Bancorp achieved a net interest income of $55.2 million with a net interest margin of 3.10%. This is a slight decrease from $58.8 million and 3.20% in the same quarter of the previous year.
| Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $55.2 million | $55.2 million | $58.8 million |
| Net Interest Margin | 3.10% | 3.12% | 3.20% |
| Yield on Loans | 6.15% | 6.03% | 5.93% |
| Average Interest-Earning Assets | $7.07 billion | $7.13 billion | $7.28 billion |
Loan Portfolio
As of September 30, 2024, the total loans outstanding were $5.75 billion, a decrease from $5.85 billion in the previous quarter. The loan portfolio composition includes:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Loans | $863,922 |
| Equipment Finance Loans | $442,552 |
| Commercial Real Estate | $2,510,472 |
| Residential Real Estate | $378,657 |
| Consumer Loans | $663,234 |
Deposits
Total deposits increased to $6.26 billion as of September 30, 2024, compared to $6.12 billion in the previous quarter. The breakdown of deposits is as follows:
| Deposit Type | Amount (in thousands) |
|---|---|
| Noninterest-Bearing Demand | $1,050,617 |
| Interest-Bearing Checking | $2,389,970 |
| Money Market | $1,187,139 |
| Savings | $510,260 |
| Time Deposits | $849,413 |
| Brokered Time Deposits | $269,437 |
Noninterest Income
Noninterest income for the third quarter of 2024 was $19.3 million, an increase from $17.7 million in the second quarter of 2024. Key components included:
| Noninterest Income Component | Amount (in thousands) |
|---|---|
| Wealth Management Revenue | $7,104 |
| Service Charges on Deposit Accounts | $3,411 |
| Interchange Revenue | $3,506 |
| Residential Mortgage Banking Revenue | $697 |
| Income on Company-Owned Life Insurance | $1,982 |
Noninterest Expense
Noninterest expense totaled $46.7 million in the third quarter of 2024, compared to $47.5 million in the previous quarter. The breakdown includes:
| Expense Category | Amount (in thousands) |
|---|---|
| Salaries and Employee Benefits | $24,382 |
| Occupancy and Equipment | $4,393 |
| Data Processing | $6,955 |
| Professional Services | $1,744 |
| FDIC Insurance | $1,402 |
Capital Ratios
As of September 30, 2024, Midland States Bancorp exceeded all regulatory capital requirements under Basel III:
| Capital Ratio | MSBI Ratio | Minimum Required |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 13.98% | 10.50% |
| Tier 1 Capital to Risk-Weighted Assets | 11.65% | 8.50% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 9.00% | 7.00% |
| Tier 1 Leverage Ratio | 10.10% | 4.00% |
How Midland States Bancorp, Inc. (MSBI) Makes Money
Revenue Generation
Midland States Bancorp, Inc. (MSBI) primarily generates revenue through two main streams: net interest income and noninterest income.
Net Interest Income
For the third quarter of 2024, net interest income was reported at $54.95 million, with a net interest margin of 3.10%. This margin slightly decreased from 3.12% in the previous quarter. The average interest-earning assets for this period were $7.07 billion, yielding an average rate of 5.91%.
| Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Interest Income | $54.95 million | $55.05 million | $58.60 million |
| Net Interest Margin | 3.10% | 3.12% | 3.20% |
| Average Interest-Earning Assets | $7.07 billion | $7.13 billion | $7.28 billion |
| Yield on Interest-Earning Assets | 5.91% | 5.84% | 5.65% |
Loan Portfolio
As of September 30, 2024, the total loan portfolio was $5.75 billion, with commercial loans making up a significant portion. The following table outlines the composition of the loan portfolio:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Loans | $863,922 |
| Equipment Finance Loans | $442,552 |
| Commercial Real Estate | $2,510,472 |
| Residential Real Estate | $378,657 |
| Consumer Loans | $663,234 |
Noninterest Income
In addition to net interest income, Midland States Bancorp earns noninterest income, which totaled $19.34 million in Q3 2024, up from $17.66 million in Q2 2024. The components of noninterest income are as follows:
| Source of Noninterest Income | Q3 2024 (in thousands) |
|---|---|
| Wealth Management Revenue | $7,104 |
| Service Charges on Deposit Accounts | $3,411 |
| Interchange Revenue | $3,506 |
| Residential Mortgage Banking Revenue | $697 |
| Income on Company-Owned Life Insurance | $1,982 |
| Other Income | $2,683 |
Cost of Funds
The average interest-bearing liabilities amounted to $5.76 billion in Q3 2024, with a cost of funds of 3.45%, reflecting an increase due to competitive pressures. The following table summarizes the key liabilities:
| Liability Type | Amount (in thousands) | Cost (%) |
|---|---|---|
| Interest-Bearing Deposits | $5,132,640 | 3.25% |
| Short-Term Borrowings | $49,750 | 4.69% |
| FHLB Advances & Other Borrowings | $414,259 | 4.39% |
| Subordinated Debt | $91,921 | 5.48% |
Noninterest Expenses
Noninterest expenses for Q3 2024 were reported at $46.73 million, representing a slight decrease from $47.48 million in Q2 2024. A breakdown of these expenses is provided in the following table:
| Expense Type | Q3 2024 (in thousands) |
|---|---|
| Salaries and Employee Benefits | $24,382 |
| Occupancy and Equipment | $4,393 |
| Data Processing | $6,955 |
| Professional Services | $1,744 |
| FDIC Insurance | $1,402 |
| Other Expenses | $6,906 |
Net Income and Earnings Per Share
Midland States Bancorp reported a net income available to common shareholders of $16.25 million, or $0.74 per diluted share for Q3 2024, compared to $4.52 million or $0.20 per diluted share in Q2 2024.
| Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (in thousands) | $16,247 | $4,522 | $9,173 |
| Earnings Per Share | $0.74 | $0.20 | $0.41 |
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Article updated on 8 Nov 2024
Resources:
- Midland States Bancorp, Inc. (MSBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Midland States Bancorp, Inc. (MSBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Midland States Bancorp, Inc. (MSBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.