CEO: Improving Credit Quality Top Priority for 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
0mins
Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig: "Entering 2025, improving credit quality was our number one priority and throughout the year, we took significant steps to reduce our risk in the loan portfolio and strengthen our balance sheet. We have significantly enhanced our credit talent, culture, and underwriting standards in 2025, and while non-performing assets remain above our 0.75% target, we believe the actions taken in 2025 position us well for continued improvement. We accomplished this without raising any additional capital while also continuing to invest in our core businesses. Our capital position improved, with the common equity tier 1 capital ratio rising to 9.89% and approaching our 10.0% target. With the Company's shares trading near tangible book value during the quarter, we repurchased $9.6 million of common stock. Revenue trends remained positive in the fourth quarter, highlighted by a strong net interest margin and roughly 6.5% annualized loan growth in our Community Bank. Also, our wealth management business posted another record quarter. We continue to invest in these businesses and expect solid momentum to continue in 2026."
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Analyst Views on MSBI
Wall Street analysts forecast MSBI stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSBI is 19.00 USD with a low forecast of 19.00 USD and a high forecast of 19.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 22.800
Low
19.00
Averages
19.00
High
19.00
Current: 22.800
Low
19.00
Averages
19.00
High
19.00
About MSBI
Midland States Bancorp, Inc. is a diversified financial holding company. The Company’s segments include Banking, Wealth Management, and Other. The Banking segment provides a range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services; and corporate treasury management services. The Wealth Management segment operates under the name Midland Wealth Management, which consists of 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 through a nationally recognized third-party broker dealer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Midland States Bancorp (MSBI) Q4 Non-GAAP EPS Misses by $0.11, Revenue Beats by $11.22M
- Earnings Performance: Midland States Bancorp reported a Q4 Non-GAAP EPS of $0.53, missing expectations by $0.11, indicating pressure on profitability that could affect investor confidence.
- Revenue Trends: The company's Q4 revenue was $85.57 million, down 8.9% year-over-year, although it beat expectations by $11.22 million, the ongoing revenue decline may pose challenges for future growth.
- Asset Quality Metrics: The ratio of nonperforming assets to total assets remained stable at 1.02%, consistent with the prior quarter, indicating stable asset quality but still necessitating attention to potential credit loss risks.
- Credit Loss Provisions: The provision for credit losses on loans was $11.8 million in Q4, significantly down from $20.5 million in Q3, reflecting the company's cautious stance on future credit risks, which may help improve capital adequacy.
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Midland States Bancorp to Release Q4 2025 Financial Results on January 22
- Earnings Release Schedule: Midland States Bancorp will announce its Q4 2025 financial results after market close on January 22, 2026, which is expected to provide investors with insights into the company's latest financial performance and future outlook.
- Asset Scale Overview: As of September 30, 2025, the company reported total assets of approximately $6.91 billion, reflecting robust growth in the community banking sector and enhancing its competitive position in the market.
- Wealth Management Assets: The company's Wealth Management Group had approximately $4.36 billion in assets under administration, indicating strong performance in wealth management services that helps increase customer loyalty and diversify revenue streams.
- Comprehensive Financial Services: Midland States Bancorp offers a full range of commercial and consumer banking products and services, including merchant credit card services, trust, and investment management, aimed at meeting diverse financial needs and driving business growth.
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