Midland States Bancorp, Inc. Fourth Quarter 2024 Highlights
Financial Overview
In the fourth quarter of 2024, Midland States Bancorp, Inc. reported a net loss available to common shareholders of $54.8 million, or $2.52 per diluted share. This was a significant decrease from the previous quarter, which had seen a net income of $16.2 million. The company also noted adjusted pre-tax, pre-provision earnings of $21.5 million, compared to $27.5 million in the prior quarter.
Loan Portfolio
During the fourth quarter, Midland States Bancorp, Inc. sold a $87.1 million LendingPoint consumer loan portfolio, recognizing net charge-offs and provision for credit losses of $17.3 million. The company is committed to a plan to sell a $371.7 million Greensky portfolio, with net charge-offs and provision for credit losses of $33.4 million.
Financial Health
The company reported net charge-offs on loans of $102.7 million and provision for credit losses on loans of $93.5 million to address credit issues in the loan portfolio, including credit losses for LendingPoint and Greensky portfolios. Midland States Bancorp, Inc. noted a net interest margin of 3.19%, compared to 3.10% in the prior quarter. Wealth management revenue also increased to $7.7 million from $7.1 million in the prior quarter.
Capital Ratios
The common equity tier 1 capital ratio stood at 8.37%, a decrease from 9.00% at September 30, 2024, and 8.40% at December 31, 2023. The total risk-based capital ratio was 13.38%, compared to 13.98% at September 30, 2024, and 13.20% at December 31, 2023.
Impact on Individuals
As a customer or investor of Midland States Bancorp, Inc., the fourth quarter 2024 financial results may affect you in terms of potential changes in stock value, loan availability, and overall financial stability of the company. It is advisable to closely monitor the company’s future performance and take appropriate action based on your individual financial goals and risk tolerance.
Global Impact
The financial performance of Midland States Bancorp, Inc. in the fourth quarter of 2024 may have broader implications for the banking and financial sector worldwide. It could influence investor confidence, regulatory measures, and market trends, potentially impacting the global economy. It is important to stay informed about such developments and assess their potential implications.
Conclusion
In conclusion, Midland States Bancorp, Inc. faced challenges in the fourth quarter of 2024, resulting in a net loss available to common shareholders. The company’s efforts to address credit issues and improve financial health will be crucial in navigating the evolving financial landscape. As individuals and global citizens, staying informed and proactive in response to such developments is essential for financial well-being and stability.
