NASDAQ$MSBI

Midland States Bancorp Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a strong financial performance with increased earnings and returns, a slight increase in net interest margin, and an improved efficiency ratio.

Midland States Bancorp reported a net income available to common shareholders of $18.5 million, or $0.84 per diluted share, for Q4 2023. Adjusted earnings were $19.8 million, or $0.89 per diluted share. The company's tangible book value per share increased by 7.8% from the prior quarter to $23.35, and the common equity tier 1 capital ratio improved to 8.40%.

  • Net income available to common shareholders was $18.5 million, or $0.84 per diluted share.
  • Adjusted earnings available to common shareholders were $19.8 million, or $0.89 per diluted share.
  • Tangible book value per share increased 7.8% from the prior quarter to $23.35.
  • Common equity tier 1 capital ratio improved to 8.40% from 8.07%.

Headline financials

Total Revenue

$78.6M

Previous: $97.4M-19.3%
EPS (adj)

$0.89

Previous: $0.85+4.7%
Net Interest Margin

3.2%

No prior period
Nonperforming Assets to Total Assets

0.9%

Previous: 0.7%+16.2%
Efficiency Ratio

55.2%

No prior period
Total Capital to Risk-Weighted Assets

13.2%

Previous: 12.4%+6.6%
Allowance for Credit Losses to Total Loans

1.1%

Previous: 1.0%+15.5%
Allowance for Credit Losses to Nonperforming Loans

121.6%

Previous: 123.5%-1.6%
Capital Expenditures

$1.67M

Previous: $1.38M+20.6%
Net Income

$20.7M

Previous: $32.9M-37.0%
Operating Income

$27.2M

Previous: $43.9M-38.2%

Revenue & EPS history

Midland States · Revenue · Quarterly

$78.6M

Q4 2023-19.3%vs Q4 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

Company expects to continue delivering strong financial performance, focusing on high-quality commercial relationships and disciplined expense management, while investing in areas like Wealth Management and expanding presence in the St. Louis market.

Tailwinds

  • Relatively neutral interest rate sensitivity positions the company well for any rate environment.
  • Expense management will remain disciplined while investing in areas to enhance long-term value.
  • Improvements to the Wealth Management technology platform are expected to enhance business development capabilities.
  • Expanding presence in the higher growth St. Louis market with a new market president to accelerate client acquisition.
  • Banking-as-a-Service initiative expected to contribute meaningfully to deposit gathering and fee income during 2024.

Headwinds

  • Conservative approach to new loan production will remain until economic conditions improve.
  • Outstanding loans declined by $149.8 million, or 2.4%, from September 30, 2023.
  • Credit quality metrics declined this quarter compared to the third quarter of 2023.
  • Loans 30-89 days past due increased $36.2 million to $82.8 million as of December 31, 2023.
  • Deposit mix continues to shift from noninterest-bearing deposits to interest-bearing deposits.

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 Q4 2023

Historical avgQ4 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

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