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Dec 31, 2020
Midland States Q4 2020 Earnings Report
Reported net income driven by significant growth in net interest income resulting from loan growth and a higher net interest margin.
Key Takeaways
Midland States Bancorp, Inc. reported a strong fourth quarter with net income of $8.3 million, or $0.36 diluted earnings per share. The results were driven by significant growth in net interest income due to loan growth and a higher net interest margin. The company also saw improvement in asset quality during the quarter.
Net income for the fourth quarter of 2020 was $8.3 million, or $0.36 diluted earnings per share.
Total loans outstanding were $5.10 billion at December 31, 2020, compared with $4.94 billion at September 30, 2020.
Net interest margin for the fourth quarter of 2020 was 3.47%, compared to 3.33% for the third quarter of 2020.
Nonperforming loans decreased to $54.1 million, or 1.06% of total loans, at December 31, 2020, compared with $67.4 million, or 1.36% of total loans, at September 30, 2020.
Midland States
Midland States
Midland States Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Midland States Bancorp believes they are in a much stronger position to realize more operating leverage, continue to grow the balance sheet, and deliver higher earnings and improved returns for shareholders in the future.
Positive Outlook
- Expense elimination through branch consolidations
- Expense elimination through the sale of the commercial FHA origination platform
- Restructured FHLB advances to reduce interest expense
- Building a robust digital platform to enhance efficiencies
- Building a robust digital platform to improve loan production and deposit gathering capabilities
Challenges Ahead
- Challenging economic conditions
- Continued uncertainty around the timing of a stronger economic recovery
- Effects of the COVID-19 pandemic
- Changes to federal, state and local government laws, regulations and orders in connection with the pandemic
- Risks relating to acquisitions