Midland States Bancorp Reports Q4 Loss Amid Portfolio Exit

Midland States Bancrop ( (MSBI) ) has issued an update.

On January 22, 2026, Midland States Bancorp reported a net loss available to common shareholders of $5.1 million, or $0.24 per diluted share, for the fourth quarter of 2025, reversing a $5.3 million profit in the prior quarter but markedly improved from a $33.0 million loss a year earlier. The quarter’s results were heavily impacted by a $21.4 million loss on the sale of substantially all of its equipment finance portfolio and a $1.6 million loss on a small consumer loan portfolio; excluding these items, adjusted earnings were $11.9 million, or $0.53 per diluted share, supported by $31.4 million in adjusted pre-provision net revenue, stable net interest margin of 3.74%, and continued reduction in nonperforming assets to 1.02% of total assets. Management emphasized that 2025 was focused on credit clean-up and risk reduction, including enhanced credit standards and the strategic exit from most equipment finance exposure, which drove significant net charge-offs and a reduction in the allowance for credit losses but also led to notable improvements in nonperforming loans and past-due metrics. At the same time, the company’s capital ratios strengthened, with total capital to risk-weighted assets at 15.16% and common equity tier 1 at 9.89%, enabling $9.6 million of share repurchases, while core Community Bank lending grew at roughly a 6.5% annualized rate and the wealth management unit posted another record quarter, signaling improved balance sheet quality and a sharpened focus on core, relationship-driven businesses heading into 2026.

The most recent analyst rating on (MSBI) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Midland States Bancrop stock, see the MSBI Stock Forecast page.

Spark’s Take on MSBI Stock

According to Spark, TipRanks’ AI Analyst, MSBI is a Neutral.

The score reflects a tug-of-war between a material profitability breakdown in the TTM income statement (largest drag) and supportive factors including strong recent cash generation and a technically strong price trend. Valuation is helped by the high dividend yield but constrained by loss-driven negative P/E, while recent corporate actions (dividend and buyback) provide modest support despite reported income pressure.

To see Spark’s full report on MSBI stock, click here.

More about Midland States Bancrop

Midland States Bancorp, Inc., headquartered in Effingham, Illinois, operates as a community-focused financial services company offering commercial and consumer banking, equipment finance, and wealth management services. The company, listed on Nasdaq under the ticker MSBI, targets regional customers through its Community Bank and complementary lending and servicing platforms, while maintaining a growing wealth management business as a key revenue contributor.

Average Trading Volume: 191,976

Technical Sentiment Signal: Buy

Current Market Cap: $480.2M

Find detailed analytics on MSBI stock on TipRanks’ Stock Analysis page.