NASDAQ$MSBI

Midland States Bancorp Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong financial results with deposit stability and disciplined expense control.

Midland States Bancorp reported a net income available to common shareholders of $15.8 million, or $0.71 per diluted share, for Q3 2023. The results reflect stability in the deposit base, net interest margin, and asset quality. The company is focusing on new business development and investing in initiatives like Banking-as-a-Service to enhance long-term value.

  • Net income available to common shareholders was $15.8 million, or $0.71 per diluted share.
  • Adjusted earnings per diluted share of $0.78 reflected the impact of balance sheet repositioning.
  • Common equity tier 1 capital ratio improved to 8.16%.
  • Efficiency ratio was 55.8% compared to 55.0% in the prior quarter.

Headline financials

Total Revenue

$76.8M

Previous: $79.9M-3.8%
EPS (adj)

$0.78

Previous: $1.04-25.0%
Net Interest Margin

3.2%

Previous: 3.6%-11.8%
Nonperforming Assets to Total Assets

0.7%

No prior period
Efficiency Ratio

55.8%

No prior period
Common Equity Tier 1 Capital

8.2%

No prior period
Cost of Deposits

2.3%

No prior period
Allowance for Credit Losses to Total Loans

1.1%

No prior period
Allowance for Credit Losses to Nonperforming Loans

119.1%

No prior period
Capital Expenditures

-$7.06M

Previous: -$2.09M-238.3%
Free Cash Flow

$11M

Previous: $21.4M-48.8%
Net Income

$18M

Previous: $23.5M-23.3%
Operating Income

$15.1M

Previous: $43M-64.8%
Gross Profit

$70.8M

Previous: $70.7M+0.1%
Cash & Equivalents

$132M

Previous: $313M-57.8%
Total Assets

$7.98B

Previous: $7.82B+2.0%

Revenue & EPS history

Midland States · Revenue · Quarterly

$76.8M

Q3 2023-3.8%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Midland States · $15.1M total across 4 segments · Q3 2023

  • Wealth Management Revenue
    $6.29M
  • Interchange Revenue
    $3.61M
  • Service Charges on Deposit Accounts
    $3.15M
  • Other Income
    $2.04M

Forward guidance

The company anticipates the Banking-as-a-Service initiative will begin making a meaningful contribution during 2024, which, along with continued progress on adding new clients in their markets, should support profitable growth in the future, improve their level of returns, and create additional value for their shareholders.

Tailwinds

  • New partnerships launching in the fourth quarter will contribute low-cost deposits.
  • New partnerships launching in the fourth quarter will generate fee income.
  • Banking-as-a-Service initiative to begin making a meaningful contribution during 2024.
  • Continued progress on adding new clients in our markets.
  • Expect profitable growth in the future.

Headwinds

  • Changes in interest rates and other general economic, business and political conditions
  • Impact of inflation
  • Continuing effects of the failures of Silicon Valley Bank and Signature Bank
  • Increased deposit volatility and potential regulatory developments
  • Risks relating to acquisitions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-1.6%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+0.8%

Avg return

30 days after

30%

14 / 46 earnings

Positive

+9.1%

Q3 2015

Best reaction

-20.0%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.5%+9.5%+18.1%
Q4 2025-4.3%-5.2%-1.9%
Q3 2025-0.2%-0.5%+1.5%
Q2 2025-3.5%-3.5%-0.7%
Q1 2025-0.3%-5.6%-8.3%
Q4 2024-20.0%-21.3%-23.3%
Q3 2024+1.9%+6.2%+18.1%
Q2 2024-5.8%-8.2%-9.6%
Q1 2024-8.1%-10.0%-6.2%
Q4 2023-0.2%+2.4%-10.1%
Q3 2023+0.6%+7.4%+14.5%
Q2 2023+1.8%+0.3%-6.8%
Q1 2023+3.8%-0.6%+4.3%
Q4 2022-9.7%-4.2%-2.0%
Q3 2022+0.9%+4.2%-0.7%
Q2 2022-2.1%-1.9%-1.0%
Q1 2022-1.1%-0.6%-1.2%
Q4 2021-0.4%+4.8%+7.1%
Q3 2021+0.3%-2.7%-5.0%
Q2 2021-6.8%-5.8%-1.8%
Q1 2021-0.8%-0.9%-2.8%
Q4 2020-0.4%+3.0%+32.7%
Q3 2020-1.2%-4.6%-0.5%
Q2 2020+3.1%+1.4%-0.9%
Q1 2020-1.7%+6.2%-3.4%
Q4 2019-2.1%-3.4%-3.4%
Q3 2019-1.4%+1.3%+4.9%
Q2 2019+0.5%+2.6%-4.2%
Q1 2019+2.7%+0.8%-4.0%
Q4 2018-0.6%+3.0%+9.4%
Q3 2018-2.5%+1.7%-3.2%
Q2 2018-2.2%-4.1%-0.5%
Q1 2018-1.3%-1.4%+2.3%
Q4 2017-5.2%-4.6%-7.2%
Q3 2017-8.8%-8.9%-12.1%
Q2 2017-4.0%-4.8%-11.2%
Q1 2016-0.0%+0.1%-1.0%
Q1 2017+1.9%+2.9%+1.3%
Q1 2015-1.4%-2.0%-4.3%
Q4 2014-1.4%-2.0%-4.3%
Q4 2015-1.4%-2.0%-4.3%
Q4 2016-2.1%-2.6%+1.4%
Q3 2015+9.1%+13.1%+29.6%
Q3 2016-2.0%-3.6%+20.8%
Q2 2015+1.2%+2.7%+7.5%
Q2 2016+2.3%+1.7%+9.2%
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q1 2011
Q1 2010

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro