Midland States Bancorp, Inc. (MSBI) SEC Filings & Earnings Calls

Loan portfolio contraction may indicate reduced demand or strategic de-risking.

“Gross loans receivable decreased 12% YoY to $4.28B.”

Tangible book value per share declined 7.8% YoY, partly due to share repurchases and AOCI impact.

“Tangible book value per share $19.52 vs $21.16.”

Commercial real estate credit risk

“Net charge-offs were $12.3 million for the first six months of 2026, including an $8.6 million charge-off in connection with the execution of a resolution strategy for a previously identified nonperforming commercial real estate relationship.” · word for word

Interest rate risk

“NII at Risk as of June 30, 2026 indicated that projected net interest income would increase under a majority of the first-year rate shock scenarios.” · word for word

No new risk signals; filing is a routine investor presentation.

“Filing contains only boilerplate forward-looking statements and references to existing risk factors.”

Credit costs elevated with $7.1M provision, up $1.7M QoQ due to charge-off on a nonperforming CRE relationship

“Provision of $7.1 million, $1.7 million increase from LQ, primarily attributable to a charge-off recorded in connection with the execution of a resolution strategy for a previously identified nonperforming commercial real estate relationship” · word for word

Total loans declined $94.9M due to runoff in specialty finance and non-core portfolios

“Total loans decreased $94.9 million from LQ, primarily due to anticipated runoff within our specialty finance and non-core portfolios” · word for word

Interest rate risk from asset sensitivity

“NII at Risk reported at March 31, 2026 projects that our earnings exhibit increasing profitability in all of our first year rate shock scenarios.” · word for word

Concentration in mortgage-backed securities

“Mortgage-backed securities - agency 78.6% of investment securities at March 31, 2026.”

Non-core loan portfolios running off as planned, but still a source of credit risk.

“Non-core loans, which include our third party lending and servicing programs and remaining equipment finance portfolio, decreased $27.5 million to $328.1 million from December 31, 2025.” · word for word

Net charge-offs remain elevated at 0.64% annualized, though improved from 3.69% prior quarter.

“Net charge-offs to average loans (annualized) 0.64%” · word for word

Accounting Restatement and Control Weakness

“During the year ended December 31, 2025, the Company was required to prepare an accounting restatement of its financial statements as of and for the year ended December 31, 2023, for the year ended December 31, 2022, and for the interim quarterly periods in 2024 and 2023. The errors related to the Company's accounting for loans originated pursuant to third-p” · word for word

Executive Turnover

“On March 5, 2026, Mr. Lemke was terminated from his position as Chief Financial Officer.” · word for word

Negative Net Income

“Midland Net Income (in millions) ... 2025 $(124.28)”

CFO departure may signal internal issues or financial control risk.

“CFO terminated; interim appointment with change of control agreement.”

Credit quality deterioration

“Provision for credit losses on loans 20,381 20,981 215 (1,394) 1,953 18,413 60,549” · word for word

Goodwill impairment risk

“the Company recognized a $154.0 million goodwill impairment charge in the first quarter of 2025”

Commercial real estate concentration

“Commercial real estate non-owner occupied 1,447,894 1,628,961” · word for word

Potential influence from private equity shareholder on board decisions.

“Appointment of James F. Deutsch, a senior partner at Patriot Financial Partners, a current shareholder.”

Credit quality improvement ongoing but nonperforming assets remain above target

“non-performing assets remain above our 0.75% target” · word for word

Net loss driven by portfolio sale loss and FDIC assessments

“net loss available to common shareholders of $5.1 million ... loss on the sale of substantially all of the Company's equipment finance portfolio of $21.4 million” · word for word

Pre-tax loss of $20M impacts Q4 earnings; portfolio sale reduces exposure to higher-risk asset class.

“expects to recognize a pre-tax loss on sale... of approximately $20 million in the fourth quarter of 2025” · word for word

Key executive retirement could lead to temporary leadership gap, but planned succession mitigates risk.

“Jeffrey S. Mefford will retire effective June 30, 2026. Jeremy A. Jameson promoted to Chief Banking Officer.”

Elevated credit losses from trucking sector

“Our Equipment finance business saw charge-offs increase $4.4 million in the nine months ended September 30, 2025 compared to the same period last year, due primarily to continued weakness within the trucking sector.” · word for word

Deposit outflow pressure

“Total deposits decreased $592.4 million to $5.60 billion at September 30, 2025, as compared to December 31, 2024.” · word for word

Net loss and capital erosion

“The change in shareholders’ equity was the result of the net loss of $121.4 million” · word for word

No material risk signals; routine capital allocation event.

Elevated credit losses in equipment finance and specialty finance portfolios; ceased equipment finance production.

“Ceased equipment finance production effective September 30, 2025; $15M provision in equipment finance portfolio; net charge-offs $12.3M.” · word for word

Nonperforming assets declined but substandard accruing loans increased.

“Substandard accruing loans rose principally due to two relationships.”