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Dec 31, 2024
Midland States Q4 2024 Earnings Report
Midland States experienced a net loss due to strategic decisions to exit non-core consumer loan portfolios and address credit quality issues.
Key Takeaways
Midland States Bancorp reported a net loss of $54.8 million for Q4 2024, driven by strategic actions to reduce credit risk and exit non-core consumer loan portfolios. The company sold its LendingPoint portfolio and committed to selling its Greensky portfolio, incurring significant charge-offs and provisions for credit losses. Despite the loss, net interest margin expanded, and the company saw positive trends in new client additions in community banking and wealth management.
Net loss available to common shareholders was $54.8 million, or $2.52 per diluted share.
Sold $87.1 million LendingPoint consumer loan portfolio.
Committed to a plan to sell $371.7 million Greensky portfolio.
Net interest margin increased to 3.19%.
Revenue by Segment
Forward Guidance
Midland States Bancorp did not provide specific forward guidance in the Q4 2024 earnings report. However, they expressed confidence in delivering solid financial performance in 2025.
Positive Outlook
- Improving credit quality is the number one priority.
- The company took significant steps to reduce credit risk.
- The team reviewed credit risk appetite profile and tightened standards going forward.
- Positive trends in new client additions in both community bank and wealth management.
- Net interest margin expanded in the quarter.
Challenges Ahead
- Net loss available to common shareholders of $54.8 million.
- Strategic decision to exit non-core consumer portfolio.
- Charge-off deteriorating credits.
- Experienced elevated charge-offs primarily within the trucking industry.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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