Midland States Bancrop (MSBI) AI Stock Analysis

• Market Cap: $325.30M
• Dividend Yield: 8.16%
• Average Volume (3M): 118.67K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.73
• Revenue Growth: 3.95%
• EPS Growth: -135.44%
• Country: US
• Employees: 907
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): -1.05
• Shares Outstanding: 21,401,485
• 10 Day Avg. Volume: 143,711
• 30 Day Avg. Volume: 118,665
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.29
• Price to Cash Flow (P/CF): 2.90
• P/FCF Ratio: 1.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $22.33
• Price Target Upside: 46.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

Midland States Bancorp exhibits solid revenue growth and financial stability but faces profitability challenges, as reflected in the financial performance. The technical indicators suggest a bearish momentum, which is a primary concern. Valuation metrics indicate a negative P/E ratio, offset slightly by a strong dividend yield. Corporate events reveal strategic repositioning efforts, which could positively influence long-term performance. Overall, the stock shows potential but is currently under pressure from several fronts.

Midland States Bancrop Business Overview & Revenue Model

Company Description

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company accepts various deposits, such as checking, savings, money market, and sweep accounts, as well as certificates of deposits. It also offers term loans to purchase capital equipment; lines of credit for working capital and operational purposes; commercial real estate loans for owner occupied and non-owner occupied commercial property, as well as farmland loans; construction and land development loans developers of commercial real estate investment properties, residential developments, individual clients for construction of single family homes, as well as to construct owner-user properties; and residential real estate loans and home equity lines of credit.. In addition, the company provides consumer installment loans for the purchase of cars, boats, and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; commercial equipment leasing; and trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, tax and insurance planning, business planning, corporate retirement plan consulting and administration, and retail brokerage services. As of December 31, 2021, it operated 52 full-service banking offices. The company was founded in 1881 and is headquartered in Effingham, Illinois.

How the Company Makes Money

Midland States Bancorp generates revenue primarily through interest income from its lending activities, including commercial, residential mortgage, and consumer loans. Additionally, the bank earns non-interest income from various service fees associated with deposit accounts, wealth management services, and transactional operations. Wealth management and trust services contribute to its revenue through fees for advisory and management services. The company also benefits from strategic partnerships that enhance its product offerings and expand its customer base, enabling further growth in its earnings.

Midland States Bancrop Financial Statement Overview

Summary

Midland States Bancorp shows a strong revenue growth trajectory with improved operational efficiency, as indicated by a higher EBIT margin. The balance sheet reflects reduced leverage, enhancing financial stability, but the decline in net profit margin and ROE suggests challenges in profitability. Cash flow is robust, with strong cash generation relative to net income, supporting the company's liquidity and operational capabilities. Overall, the company is in a stable financial position with room for improvement in net profitability.

Income Statement

The company's TTM revenue growth rate is 7.5%, which indicates a positive trend compared to the previous year. However, the net profit margin decreased from 18.66% in the previous year to 12.23% TTM, suggesting a decline in profitability. The EBIT margin improved to 17.71% TTM, showing better operational efficiency. Overall, the company demonstrates good revenue growth but faces challenges in maintaining net profitability.

Balance Sheet

The debt-to-equity ratio improved significantly from 0.76 in the previous year to 0.02 TTM, indicating reduced leverage. The equity ratio slightly increased to 10.56% TTM, showing a stable equity base. However, return on equity (ROE) decreased to 6.5% TTM, reflecting reduced profitability on shareholder equity. The balance sheet shows improved leverage but weaker returns on equity.

Cash Flow

The company reported a stable TTM free cash flow of $143.62 million, with a negligible decrease compared to the previous year. The operating cash flow to net income ratio is 2.73, showing strong cash generation relative to net income. The free cash flow to net income ratio of 2.70 highlights efficient cash conversion. The cash flow position is strong and indicates healthy cash generation capabilities.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
434.62M	404.30M	322.30M	285.11M	272.72M	262.91M
	Gross Profit
71.96M	404.30M	322.30M	285.11M	272.72M	262.91M
	EBIT
76.94M	107.57M	168.31M	99.11M	32.01M	72.47M
	EBITDA
80.16M	0.00	144.22M	115.46M	0.00	91.90M
	Net Income Common Stockholders
53.18M	75.46M	99.03M	81.32M	22.54M	55.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
167.32M	135.06M	911.27M	1.58B	1.01B	1.04B
	Total Assets
7.83B	7.87B	7.86B	7.44B	6.87B	6.09B
	Total Debt
622.88M	604.41M	559.77M	459.81M	960.75M	685.15M
	Net Debt
456.41M	470.20M	416.74M	-213.49M	623.67M	292.46M
	Total Liabilities
7.04B	7.08B	7.10B	459.81M	960.75M	5.43B
	Stockholders Equity
791.01M	791.85M	758.57M	663.84M	621.39M	661.91M
Cash Flow		Free Cash Flow
143.62M	145.91M	233.28M	331.72M	496.56M	113.87M
	Operating Cash Flow
145.27M	154.64M	236.75M	334.44M	499.15M	119.41M
	Investing Cash Flow
163.09M	-76.08M	-1.10B	-478.50M	-1.31B	54.46M
	Financing Cash Flow
-318.62M	-104.13M	332.08M	482.79M	760.42M	6.94M

Midland States Bancrop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSBI, the sentiment is Negative. The current price of 15.2 is below the 20-day moving average (MA) of 16.90, below the 50-day MA of 18.19, and below the 200-day MA of 21.84, indicating a bearish trend. The MACD of -0.89 indicates Positive momentum. The RSI at 26.10 is Positive, neither overbought nor oversold. The STOCH value of 13.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MSBI.

Midland States Bancrop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USCB	80 Outperform	$336.09M	13.47	12.11%	1.49%	32.79%	48.96%
FRBA	77 Outperform	$323.23M	7.70	10.83%	1.87%	31.85%	69.42%
HBCP	75 Outperform	$333.75M	9.14	9.54%	2.48%	11.26%	-8.61%
BSVN	73 Outperform	$326.44M	7.33	22.26%	2.69%	1.20%	46.86%
Sector *	63 Neutral	$13.51B	9.48	9.36%	4.87%	16.09%	-8.30%
RRBI	61 Neutral	$326.95M	9.75	10.98%	0.81%	12.88%	2.03%
MSBI	54 Neutral	$325.30M	12.51	-1.83%	8.16%	3.95%	-135.44%

Midland States Bancrop Corporate Events

Midland States Bancorp Reports Q4 2024 Net Loss

On January 23, 2025, Midland States Bancorp reported a net loss of $54.8 million for the fourth quarter of 2024, following significant actions to address credit quality issues. The company accelerated the exit from its non-core consumer loan portfolios, including sales of LendingPoint and Greensky loans, leading to substantial charge-offs. The strategic review also led to tightening credit standards and a reduction in the equipment finance portfolio, positioning the company for future growth in core community banking operations.

Midland States Bancorp Strengthens Growth and Efficiency Strategies

Midland States Bancorp, Inc., a community bank with a national reach through equipment finance, has been experiencing profitable growth and improved efficiencies, leading to higher EPS and increased returns. The bank has strengthened its commercial banking team, increasing its presence in faster-growing markets, and is focusing on cross-selling opportunities within its Wealth Management division. With a conservative approach to new loan production amid current economic conditions, Midland is well-positioned to enhance its commercial and retail deposit relationships and aims to leverage Banking-as-a-Service initiatives in the coming years.