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Dec 31, 2023
Midland States Q4 2023 Earnings Report
Reported a strong financial performance with increased earnings and returns, a slight increase in net interest margin, and an improved efficiency ratio.
Key Takeaways
Midland States Bancorp reported a net income available to common shareholders of $18.5 million, or $0.84 per diluted share, for Q4 2023. Adjusted earnings were $19.8 million, or $0.89 per diluted share. The company's tangible book value per share increased by 7.8% from the prior quarter to $23.35, and the common equity tier 1 capital ratio improved to 8.40%.
Net income available to common shareholders was $18.5 million, or $0.84 per diluted share.
Adjusted earnings available to common shareholders were $19.8 million, or $0.89 per diluted share.
Tangible book value per share increased 7.8% from the prior quarter to $23.35.
Common equity tier 1 capital ratio improved to 8.40% from 8.07%.
Midland States
Midland States
Midland States Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.com Forward Guidance
Company expects to continue delivering strong financial performance, focusing on high-quality commercial relationships and disciplined expense management, while investing in areas like Wealth Management and expanding presence in the St. Louis market.
Positive Outlook
- Relatively neutral interest rate sensitivity positions the company well for any rate environment.
- Expense management will remain disciplined while investing in areas to enhance long-term value.
- Improvements to the Wealth Management technology platform are expected to enhance business development capabilities.
- Expanding presence in the higher growth St. Louis market with a new market president to accelerate client acquisition.
- Banking-as-a-Service initiative expected to contribute meaningfully to deposit gathering and fee income during 2024.
Challenges Ahead
- Conservative approach to new loan production will remain until economic conditions improve.
- Outstanding loans declined by $149.8 million, or 2.4%, from September 30, 2023.
- Credit quality metrics declined this quarter compared to the third quarter of 2023.
- Loans 30-89 days past due increased $36.2 million to $82.8 million as of December 31, 2023.
- Deposit mix continues to shift from noninterest-bearing deposits to interest-bearing deposits.