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Banking industry

Midland States Bancorp Reports Strong Third Quarter Results

Strategic Insights

— 1 min read

Midland States Bancorp, Inc., a bank holding company, reported a significant improvement in its financial performance for the third quarter of 2024. The company posted net income available to common shareholders of $16.2 million, compared to $4.5 million in the second quarter of 2024. This represents a substantial increase of $11.7 million, or 260%, from the previous quarter. Provision expense declined to $5.0 million in the third quarter, down from $16.8 million in the second quarter, primarily due to the resolution of credit issues related to fintech partner LendingPoint.

Key Takeaways:

  • Net income available to common shareholders increased to $16.2 million, or $0.74 per diluted share, in the third quarter of 2024, up from $4.5 million, or $0.20 per diluted share, in the second quarter of 2024.
  • Provision expense decreased to $5.0 million in the third quarter of 2024, compared to $16.8 million in the second quarter of 2024, and $5.2 million in the third quarter of 2023.
  • The company made progress in its balance sheet management strategies, resulting in higher capital ratios, an increase in tangible book value per share, and a reduction in the loan-to-deposit ratio.
  • Loan balances in the St. Louis market grew at an annualized rate of 12% during the third quarter.
  • Wealth Management revenues increased due to an increase in assets under administration and the addition of new wealth advisors.

Statistics:

  • Net income available to common shareholders: $16.2 million (third quarter 2024), $4.5 million (second quarter 2024), $9.2 million (third quarter 2023)
  • Provision expense: $5.0 million (third quarter 2024), $16.8 million (second quarter 2024), $5.2 million (third quarter 2023)
  • Loan-to-deposit ratio: reduced (third quarter 2024)
  • Capital ratios: increased (third quarter 2024)
  • Tangible book value per share: increased (third quarter 2024)
  • Loan balances in St. Louis market: grew at an annualized rate of 12% (third quarter 2024)
  • Assets under administration: increased due to growth in Wealth Management revenues

Sources:

  • Midland States Bancorp, Inc. press release (no date provided)
  • LendingPoint system conversion (late 2023)
  • Jeffrey G. Ludwig, President and Chief Executive Officer (no source provided)

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