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Jun 30, 2024
Midland States Q2 2024 Earnings Report
Midland States' financial performance declined due to increased provision expenses and market interest rates.
Key Takeaways
Midland States Bancorp reported a decrease in net income available to common shareholders to $4.5 million, or $0.20 per diluted share, for Q2 2024, compared to $11.7 million, or $0.53 per diluted share, for Q1 2024. The decline was primarily due to elevated loan provision expenses related to credit deterioration and servicing issues with a fintech partner.
Net income available to common shareholders was $4.5 million, or $0.20 per diluted share.
Adjusted pre-tax, pre-provision earnings totaled $25.2 million.
The common equity tier 1 capital ratio improved to 8.63% from 8.60%.
Net interest margin was 3.12%, compared to 3.18% in the prior quarter.
Midland States
Midland States
Midland States Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
The company expects continued progress on its strategic priorities, including addressing credit risk and expanding its market share within the community bank.
Positive Outlook
- Focus on generating high quality, in-market loans with full banking relationships.
- Continued intentional reduction of equipment finance and consumer portfolios.
- Good results from investments made to increase presence and business development efforts in the St. Louis market.
- Addition of a new market president for the Northern Illinois region and a new Chief Deposit Officer.
- Continued investment in the Wealth Management business to improve cross-selling opportunities.
Challenges Ahead
- Elevated loan provision in the second quarter due to credit deterioration and servicing issues involving LendingPoint.
- Overall, credit quality metrics declined this quarter compared to the first quarter of 2024.
- Non-performing loans increased $7.1 million to $112.1 million at June 30, 2024.
- The impact of rising interest rates on the Company’s investment portfolio and cash flow hedges resulted in an $82.6 million accumulated other comprehensive loss.
- Total deposits decreased from $6.32 billion at March 31, 2024 to $6.12 billion at June 30, 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income