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Sep 30, 2024
Midland States Q3 2024 Earnings Report
Net income available to common shareholders of $16.2 million, or $0.74 per diluted share.
Key Takeaways
Midland States Bancorp, Inc. reported net income available to common shareholders of $16.2 million, or $0.74 per diluted share, for the third quarter of 2024. The company saw improvements in capital ratios and tangible book value per share, while managing balance sheet strategies.
Net income available to common shareholders was $16.2 million, or $0.74 per diluted share.
Adjusted pre-tax, pre-provision earnings were $27.5 million.
Tangible book value per share increased to $24.90, compared to $23.36 at June 30, 2024.
Common equity tier 1 capital ratio improved to 9.00%, compared to 8.64% at June 30, 2024.
Midland States
Midland States
Midland States Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Midland States Bancorp expects positive trends in net interest margin and Wealth Management revenue, while remaining conservative in new loan production due to uncertain economic conditions. They are also making investments in talent and technology to increase market share and generate profitable growth.
Positive Outlook
- Well positioned to benefit from lower interest rates
- Expect positive trends in net interest margin
- Expect positive trends in revenue generated from Wealth Management business
- Making investments in talent and technology that will further enhance ability to increase market share
- Building a stronger balance sheet with a Total Capital Ratio of approximately 14%
Challenges Ahead
- Will remain conservative in new loan production while economic conditions remain uncertain
- Credit quality metrics remained consistent this quarter compared to the second quarter of 2024, albeit, nonperforming loans were still at elevated levels.
- Substandard loans increased $32.0 million to $167.5 million
- Costs related to increased staffing levels
- upgrades to our ATM fleet, and loan collection and OREO expenses drove the increase in noninterest expense in the third quarter of 2024 compared to the prior quarter.