Midland States sells substantially all of equipment finance portfolio for $502M

Midland States (MSBI) Bancorp has sold substantially all of its equipment finance portfolio to an affiliate of North Mill Equipment Finance. The transaction closed on November 28, 2025. NMEF acquired the portfolio for $502 million in cash, subject to adjustment. As of October 31, 2025, the equipment finance portfolio consisted of approximately $599 million in loans and leases outstanding – or $565 million net of the allowance for credit losses – and $21 million of operating leases included in other assets. The transaction excludes approximately $75 million of loans and leases that will be retained by the Company, and as such, total loans and leases will be reduced by approximately $545 million as compared to October 31, 2025. The Company expects to recognize a pre-tax loss on sale, including transaction-related expenses, of approximately $20 million in the fourth quarter of 2025. The Company intends to use the majority of the proceeds from the sale to pay down approximately $350 million of high-cost wholesale funding. The transaction aligns with the Company’s previously announced strategy to focus resources and capital on its core community banking operations and is expected to be accretive to capital and approximately neutral to earnings. As previously disclosed, the Company ceased originating new equipment finance loans and leases effective as of September 30, 2025.