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Mar 31, 2023
Midland States Q1 2023 Earnings Report
Net income of $19.5 million, with diluted earnings per share of $0.86, was reported.
Key Takeaways
Midland States Bancorp, Inc. reported a net income available to common shareholders of $19.5 million, or $0.86 per diluted share, for Q1 2023. Total assets reached $7.93 billion, and portfolio loans amounted to $6.35 billion.
Net income available to common shareholders was $19.5 million, or $0.86 per diluted share.
Total loan growth of $47.8 million, or 3.0% annualized from prior quarter.
Total deposits increased $60.5 million, or 3.8% annualized from prior quarter, with uninsured deposits of 21%.
Tangible book value per share of $21.87, an increase of 4.4% from prior quarter
Midland States
Midland States
Midland States Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Midland States Bancorp plans to continue prioritizing prudent risk management and conservative loan production to build capital and liquidity.
Positive Outlook
- Continued reductions in the consumer portfolio will be used to add to security portfolio and pay off higher cost funding sources.
- The net impact is likely to be earnings neutral but capital accretive.
- The company has a strong balance sheet with healthy asset quality.
- The company believes it can capitalize on the current environment to add new commercial and retail deposit relationships.
- Focus on continuing to grow and strengthen the core deposit base to generate long-term profitable growth and enhance the value of the franchise.
Challenges Ahead
- Uncertain economic conditions necessitate more selective new loan production.
- Rising interest rates have increased the cost of funding liabilities at a faster rate than the yields on earning assets, declining net interest margin.
- Losses on sales of investment securities negatively impacted noninterest income.
- Increased payroll taxes and medical insurance contributed to increased expenses.
- Seasonal related expenses, including snow removal and utilities expenses, increased occupancy and equipment expenses.