Midland States Bancorp's Net Income Dips 14.5% to $78.9M in 2024
Ticker: MSBIP · Form: 10-K · Filed: Jul 1, 2025 · CIK: 1466026
| Field | Detail |
|---|---|
| Company | Midland States Bancorp, Inc. (MSBIP) |
| Form Type | 10-K |
| Filed Date | Jul 1, 2025 |
| Risk Level | medium |
| Sentiment | bearish |
Sentiment: bearish
Topics: Regional Banking, Net Income Decline, Financial Performance, 10-K Analysis, Interest Rate Risk, Capital Adequacy, Investment Securities
TL;DR
Midland States Bancorp's 2024 earnings slump is a red flag, signaling potential margin compression and a tough road ahead for this regional bank.
AI Summary
Midland States Bancorp, Inc. reported a net income of $78.9 million for the fiscal year ended December 31, 2024, a decrease from $92.3 million in 2023, reflecting a 14.5% decline. Total revenue, comprising net interest income and non-interest income, was not explicitly detailed in the provided snippets, but the decrease in net income suggests potential pressures on interest margins or increased operating costs. The company's strategic outlook appears focused on maintaining capital adequacy, as evidenced by the restatement adjustments to retained earnings in 2021, which decreased from a previously reported $300.2 million to $299.8 million. Key business changes include adjustments to equity components, with common stock remaining stable at $1.0 million across all periods, while additional paid-in capital increased from $360.2 million in 2021 to $362.3 million in 2024. Risks include the impact of interest rate fluctuations on net interest margin and potential credit quality issues, though specific details on loan loss provisions or non-performing assets are not available in the provided text. The company's accumulated other comprehensive income fluctuated, ending at -$49.1 million in 2024, indicating potential unrealized losses on investment securities.
Why It Matters
Midland States Bancorp's 14.5% decline in net income to $78.9 million signals potential headwinds for investors, impacting dividend sustainability and stock performance. This performance could pressure employees through cost-cutting measures, while customers might see changes in lending rates or service offerings as the bank adjusts. In the broader market, this dip suggests regional banks face challenges, possibly from rising interest rates or increased competition from larger financial institutions, making it harder for MSBIP to compete effectively for deposits and loan growth.
Risk Assessment
Risk Level: medium — The 14.5% decrease in net income from $92.3 million in 2023 to $78.9 million in 2024 indicates financial pressure. Additionally, the accumulated other comprehensive income ending at -$49.1 million in 2024 suggests unrealized losses on investment securities, which could impact future capital and profitability.
Analyst Insight
Investors should scrutinize Midland States Bancorp's upcoming earnings calls for detailed explanations of the net income decline and strategies to address margin pressures. Consider holding off on new investments until there's clear evidence of improved profitability and a stable outlook for interest rate sensitivity.
Key Numbers
- $78.9M — Net Income (Decreased 14.5% from $92.3M in 2023 to $78.9M in 2024.)
- -14.5% — Net Income Change (Percentage decrease in net income from 2023 to 2024.)
- -$49.1M — Accumulated Other Comprehensive Income (Represents unrealized losses on investment securities in 2024.)
- $362.3M — Additional Paid-In Capital (Increased from $360.2M in 2021 to $362.3M in 2024.)
- $299.8M — Restated Retained Earnings (2021) (Adjusted from a previously reported $300.2M.)
Key Players & Entities
- Midland States Bancorp, Inc. (company) — filer of 10-K
- $78.9 million (dollar_amount) — net income for 2024
- $92.3 million (dollar_amount) — net income for 2023
- $1.0 million (dollar_amount) — common stock value
- $362.3 million (dollar_amount) — additional paid-in capital in 2024
- $360.2 million (dollar_amount) — additional paid-in capital in 2021
- -$49.1 million (dollar_amount) — accumulated other comprehensive income in 2024
- $300.2 million (dollar_amount) — previously reported retained earnings in 2021
- $299.8 million (dollar_amount) — restated retained earnings in 2021
- SEC (regulator) — recipient of 10-K filing
FAQ
What was Midland States Bancorp's net income for the fiscal year 2024?
Midland States Bancorp, Inc. reported a net income of $78.9 million for the fiscal year ended December 31, 2024.
How did Midland States Bancorp's 2024 net income compare to 2023?
The net income for Midland States Bancorp in 2024 was $78.9 million, a decrease from $92.3 million in 2023, representing a 14.5% decline.
What was the value of Midland States Bancorp's common stock at the end of 2024?
Midland States Bancorp's common stock remained stable at $1.0 million for the fiscal year ended December 31, 2024.
Did Midland States Bancorp have any restatements in its financial history?
Yes, Midland States Bancorp had restatement adjustments to retained earnings in 2021, which decreased from a previously reported $300.2 million to $299.8 million.
What does the accumulated other comprehensive income indicate for Midland States Bancorp?
Midland States Bancorp's accumulated other comprehensive income was -$49.1 million in 2024, which typically indicates unrealized losses on investment securities.
What are the primary risks for Midland States Bancorp based on this filing?
Based on the filing, primary risks include the impact of interest rate fluctuations on net interest margin and potential credit quality issues, though specific details on loan loss provisions are not provided.
How has Midland States Bancorp's additional paid-in capital changed over time?
Midland States Bancorp's additional paid-in capital increased from $360.2 million in 2021 to $362.3 million in 2024.
What is the fiscal year end for Midland States Bancorp, Inc.?
The fiscal year end for Midland States Bancorp, Inc. is December 31.
Where is Midland States Bancorp's business address located?
Midland States Bancorp's business address is 1201 Network Centre Drive, Effingham, IL 62401.
What is the significance of the 14.5% net income drop for Midland States Bancorp investors?
The 14.5% net income drop to $78.9 million for Midland States Bancorp investors signals potential challenges in profitability, which could impact future dividends and stock valuation, warranting careful consideration.
Risk Factors
- Interest Rate Fluctuations [high — market]: Changes in interest rates can significantly impact Midland States Bancorp's net interest margin. A widening spread between interest income and interest expense is crucial for profitability. The company's net income decreased by 14.5% from $92.3 million in 2023 to $78.9 million in 2024, suggesting potential pressure on margins.
- Credit Quality and Loan Loss Provisions [medium — financial]: While specific figures are not detailed, potential credit quality issues in the loan portfolio represent a risk. Deterioration in borrower financial health could lead to increased non-performing assets and necessitate higher loan loss provisions, impacting earnings.
- Unrealized Losses on Investments [medium — market]: The company's accumulated other comprehensive income was -$49.1 million at the end of 2024. This negative balance indicates unrealized losses on investment securities, which could affect regulatory capital if these losses become realized or if market conditions worsen.
Industry Context
Midland States Bancorp operates within the commercial banking sector, a highly competitive industry influenced by interest rate environments and regulatory oversight. Banks are focused on managing net interest margins, credit risk, and adapting to evolving customer preferences for digital services.
Regulatory Implications
As a financial institution, Midland States Bancorp is subject to stringent regulatory requirements from bodies like the Federal Reserve and FDIC. Compliance with capital adequacy ratios, risk management frameworks, and consumer protection laws is paramount and can impact operational flexibility and profitability.
What Investors Should Do
- Monitor Net Interest Margin Trends
- Assess Credit Risk Management
- Evaluate Investment Portfolio Performance
Key Dates
- 2024-12-31: Fiscal Year End — Reporting period for the 10-K filing, showing net income of $78.9 million and accumulated other comprehensive income of -$49.1 million.
- 2023-12-31: Prior Fiscal Year End — Comparison point for 2024 results, with net income of $92.3 million, highlighting a 14.5% decrease in the current year.
- 2021-12-31: Restatement Adjustment Period — Retained earnings were adjusted, decreasing from $300.2 million to $299.8 million, indicating a focus on capital adequacy and accurate financial reporting.
Glossary
- Accumulated Other Comprehensive Income
- This represents unrealized gains or losses on certain investments and financial instruments that have not yet been realized through sale. It is a component of shareholders' equity. (A negative balance of -$49.1 million in 2024 indicates potential unrealized losses on the company's investment portfolio.)
- Additional Paid-In Capital
- The amount of capital shareholders have paid to the company for stock in excess of its par or stated value. (Increased from $360.2 million in 2021 to $362.3 million in 2024, suggesting capital contributions or stock-based compensation adjustments.)
- Retained Earnings
- The cumulative amount of net income that a company has retained over time, after paying out dividends. (A restatement adjustment in 2021 reduced retained earnings from $300.2 million to $299.8 million, impacting the equity base.)
- Net Interest Income
- The difference between the interest income generated by a bank's assets (like loans and investments) and the interest paid out on its liabilities (like deposits and borrowings). (A key driver of profitability for banks; a decrease in net income suggests potential pressure on this component.)
Year-Over-Year Comparison
The fiscal year 2024 saw a notable 14.5% decrease in net income, falling to $78.9 million from $92.3 million in 2023, indicating potential margin compression or increased expenses. The company's accumulated other comprehensive income also worsened, ending at -$49.1 million, signaling unrealized losses on investments. While specific new risks were not detailed, the existing concerns around interest rate fluctuations and credit quality remain pertinent, potentially exacerbated by the current financial performance.
Filing Details
This Form 10-K (Form 10-K) was filed with the SEC on July 1, 2025 regarding Midland States Bancorp, Inc. (MSBIP).