Midland States Bancrop (MSBI) AI Stock Analysis

• Market Cap: $390.65M
• Dividend Yield: 6.89%
• Average Volume (3M): 120.17K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.80
• Revenue Growth: 14.49%
• EPS Growth: -379.97%
• Country: US
• Employees: 907
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.44
• Shares Outstanding: 21,535,198
• 10 Day Avg. Volume: 109,509
• 30 Day Avg. Volume: 120,175
• PEG Ratio: -0.32
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.97
• P/FCF Ratio: 3.12
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 1.39
• Enterprise Value/Gross Profit: 2.83
• Enterprise Value/Ebitda: 11.96
• 1Y Price Target: $20.50
• Price Target Upside: 13.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 60 Neutral
• Price Target: $19.50 ▲(7.50% Upside)

Midland States Bancorp's overall stock score reflects a balance of challenges and strengths. The most significant factor is the company's financial performance, which shows operational challenges but strong cash flows. Technical analysis supports a positive outlook with bullish momentum. Valuation is a concern due to negative earnings, but the high dividend yield is attractive. Corporate events present mixed signals, with compliance issues offset by strategic improvements.

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 through several key streams. The primary source of income is net interest income, which is earned from the difference between interest earned on loans and interest paid on deposits. The company offers a variety of loans, including commercial and residential mortgages, personal loans, and lines of credit. Additionally, MSBI earns non-interest income from fees related to banking services, wealth management, and mortgage origination. Significant partnerships with local businesses and municipalities also contribute to its revenue, as they drive deposits and loan demand. By maintaining a diversified portfolio and focusing on customer relationships, Midland States Bancorp effectively enhances its earnings potential.

Midland States Bancrop Financial Statement Overview

Summary

Midland States Bancorp faces challenges with profitability and operational efficiency, as evidenced by negative margins and declining net income. The balance sheet reflects moderate leverage with stable debt levels, but declining equity is a concern. Despite these challenges, the company maintains strong operational cash flows, providing a cushion to address profitability issues.

Income Statement

Midland States Bancorp has faced declining profitability with a negative net income in the most recent year. The revenue growth rate has been inconsistent, and there has been a significant drop in gross profit margin over the years. The negative EBIT and EBITDA margins in the latest year indicate operational challenges.

Balance Sheet

The balance sheet shows moderate financial leverage with a decreasing trend in stockholders' equity over the years. The debt-to-equity ratio is relatively stable, although a decrease in equity raises concern. The equity ratio remains adequate, suggesting a balanced structure between liabilities and equity.

Cash Flow

Cash flow from operations has remained robust, and the company maintains positive free cash flow. However, the free cash flow growth rate has been volatile, and the operating cash flow to net income ratio reflects the challenges in profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	492.12M	546.05M	508.50M	378.32M	313.23M	315.97M
Gross Profit	241.76M	235.94M	277.27M	302.18M	279.70M	225.86M
EBITDA	57.19M	46.90M	100.68M	145.76M	115.46M	44.86M
Net Income	38.96M	38.04M	60.51M	99.03M	81.32M	22.54M
Balance Sheet
Total Assets	7.46B	7.53B	7.87B	7.86B	7.44B	6.87B
Cash, Cash Equivalents and Short-Term Investments	1.47B	1.32B	1.05B	921.58M	1.58B	1.01B
Total Debt	667.34M	484.56M	604.41M	644.39M	536.61M	1.03B
Total Liabilities	6.71B	6.79B	7.08B	7.10B	6.78B	6.25B
Stockholders Equity	744.38M	710.85M	791.85M	758.57M	663.84M	621.39M
Cash Flow
Free Cash Flow	143.25M	169.65M	145.91M	243.59M	331.72M	496.56M
Operating Cash Flow	149.63M	176.55M	154.64M	247.06M	334.44M	499.15M
Investing Cash Flow	93.64M	136.71M	-76.08M	-1.10B	-478.50M	-1.31B
Financing Cash Flow	-295.82M	-333.55M	-104.13M	332.08M	482.79M	760.42M

Midland States Bancrop Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MSBI, the sentiment is Neutral. The current price of 18.14 is above the 20-day moving average (MA) of 17.94, above the 50-day MA of 17.79, and below the 200-day MA of 18.91, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 59.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MSBI.

Midland States Bancrop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRBA	80 Outperform	$425.27M	11.18	9.40%	1.42%	11.18%	24.61%
HBCP	79 Outperform	$440.14M	10.78	10.55%	1.94%	8.03%	15.18%
USCB	78 Outperform	$349.97M	11.85	13.71%	2.01%	19.67%	68.34%
BSVN	75 Outperform	$457.81M	10.42	20.97%	1.98%	-2.96%	37.09%
RRBI	72 Outperform	$430.71M	11.38	12.02%	0.74%	9.09%	23.58%
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
MSBI	60 Neutral	$390.65M	10.95	-16.46%	6.89%	14.49%	-379.97%

Midland States Bancrop Corporate Events

Midland States Bancorp to Redeem Subordinated Notes

On August 27, 2025, Midland States Bancorp, Inc. announced its decision to redeem all outstanding Fixed-to-Floating Rate Subordinated Notes, due September 30, 2029, with a principal amount of $50,750,000. The redemption, scheduled for September 30, 2025, will be executed at 100% of the principal amount plus accrued interest, impacting the company’s financial obligations and potentially influencing investor perceptions.

Midland States Bancorp Receives Nasdaq Deficiency Notification

Midland States Bancorp, Inc. announced on August 22, 2025, that it received a deficiency notification from Nasdaq due to the delayed filing of its Quarterly Report on Form 10-Q for the period ending June 30, 2025. This delay is attributed to previous delays in filing its annual and quarterly reports due to restatements of financial statements. The notice does not immediately affect the company’s stock listing, and Midland States Bancorp has until October 18, 2025, to submit a compliance plan to Nasdaq, with a potential extension until February 26, 2026. The company intends to regain compliance as soon as practicable.

Midland States Bancorp Holds Annual Shareholder Meeting

On August 4, 2025, Midland States Bancorp, Inc. held its annual meeting of shareholders where several proposals were voted on. The election of directors saw R. Dean Bingham, Jerry L. McDaniel, and Jeffrey M. McDonnell nominated for Class III director positions. The shareholders also voted on executive compensation and the frequency of future say-on-pay proposals, with the majority supporting a one-year frequency for these votes.

Midland States Bancorp Increases Quarterly Cash Dividend

On August 5, 2025, Midland States Bancorp, Inc. announced an increase in its quarterly cash dividend to $0.32 per share of common stock, marking a 3.2% rise from the previous dividend. This increase represents the 25th consecutive year of dividend growth, reflecting the company’s strong capital ratios, improved earnings, and asset quality. Additionally, the Board declared a cash dividend of $0.4844 per depository share on its 7.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, payable on September 30, 2025. The dividend announcements underscore Midland’s commitment to returning capital to shareholders while maintaining sufficient capital for growth.

Midland States Bancorp Exits Non-Performing Relationships in July

Midland States Bancorp, Inc. reported a net income of $9.8 million for the second quarter of 2025, a significant improvement from the net loss of $143.2 million in the first quarter due to goodwill impairment. The company has made strides in improving its financial health, with a decrease in nonperforming assets and an increase in net interest margin. The bank has also tightened its underwriting standards, particularly in its equipment finance and specialty finance portfolios, to reduce exposure to higher-risk loans. The sale of the GreenSky loans in April further bolstered the company’s capital and liquidity, and the bank successfully exited two large non-performing relationships in July. Overall, Midland States Bancorp anticipates continued profitability improvements throughout the remainder of 2025.