Midland States Bancorp(MSBI) - 2024 Q4 - Annual Results

Net Loss and Profitability - Net loss available to common shareholders of $54.8 million, or$2.52 per diluted share, compared to net income of $16.2 million in the prior quarter[3] - Net loss in Q4 2024 was$52.541 million, compared to a net income of $18.476 million in Q3 2024 and$20.711 million in Q4 2023[53] - Net loss for Q4 2024 was $52.541 million, a significant decline from a net income of$18.476 million in Q3 2024 and $20.711 million in Q4 2023[57] - Adjusted diluted loss per common share for Q4 2024 was$2.52, compared to earnings of $0.74 in Q3 2024 and$0.89 in Q4 2023[59] Loan Portfolio and Credit Losses - Sold $87.1 million LendingPoint consumer loan portfolio, recognizing net charge-offs and provision for credit losses of$17.3 million[5] - Committed to a plan to sell $371.7 million Greensky portfolio, recognizing net charge-offs and provision for credit losses of$33.4 million[5] - Net charge-offs on loans of $102.7 million and provision for credit losses on loans of$93.5 million to address credit issues[6] - Provision expense for credit losses on loans of $93.5 million in the fourth quarter of 2024[19] - Provision for credit losses in Q4 2024 surged to$93.540 million, a significant increase from $5.000 million in Q3 2024 and$6.950 million in Q4 2023[53] - Total provision for credit losses in Q4 2024 surged to $93.540 million, significantly higher than$5.000 million in Q3 2024 and $6.950 million in Q4 2023[57] Net Interest Income and Margin - Net interest margin of 3.19$56.3 million in Q4 2024, up from $55.2 million in Q3 2024, with a net interest margin of 3.19$222.8 million, with a net interest margin of 3.15%, compared to $236.8 million and 3.26$56.035 million, a 2% increase from Q3 2024 but a 3.5% decrease from Q4 2023[53] - Net interest income for Q4 2024 was $56.035 million, a slight increase from$54.950 million in Q3 2024 but a decrease from $58.077 million in Q4 2023[57] Asset and Loan Performance - Total assets decreased to$7.53 billion at December 31, 2024, from $7.75 billion at September 30, 2024[13] - Loans decreased by$581.2 million, or 10.1%, primarily due to the sale of Greensky and LendingPoint consumer loan portfolios[14] - Nonperforming loans increased $25.6 million to$140.1 million at December 31, 2024[18] - Total assets as of December 31, 2024, were $7.529 billion, a decrease from$7.751 billion in September 2024 and $7.867 billion in December 2023[55] - Loans held for sale increased significantly to$346.565 million in December 2024, up from $8.001 million in September 2024[55] - Total assets—GAAP decreased to$7,529,055 thousand in December 2024 from $7,866,868 thousand in December 2023[65] - Tangible assets were$7,355,051 thousand in December 2024, compared to $7,688,856 thousand in December 2023[65] Deposit Performance - Total deposits were$6.20 billion at December 31, 2024, compared with $6.26 billion at September 30, 2024[21] - Total deposits as of December 31, 2024, were$6.20 billion, down from $6.26 billion in September 2024[22] - Total deposits as of December 31, 2024, were$6.197 billion, slightly down from $6.257 billion in September 2024[55] Noninterest Income and Expense - Noninterest income for Q4 2024 was$19.6 million, compared to $19.3 million in Q3 2024 and$20.5 million in Q4 2023[34][35] - Wealth management revenue increased by $0.6 million (7.8$7.7 million in Q4 2024 compared to Q3 2024[36] - Noninterest expense for Q4 2024 was $54.2 million, including$7.6 million of impairment on equipment financing operating lease collateral and surrendered equipment[39][41] - Noninterest income for Q4 2024 was $19.561 million, slightly up from$19.339 million in Q3 2024 but down from $20.513 million in Q4 2023[57] - Noninterest expense for Q4 2024 increased to$54.183 million, compared to $46.733 million in Q3 2024 and$44.488 million in Q4 2023[57] Efficiency and Capital Ratios - The efficiency ratio for Q4 2024 was 71.42%, compared to 62.76% for Q3 2024 and 55.22% for Q4 2023[40] - Total capital to risk-weighted assets was 12.75% for Midland States Bank and 13.38% for Midland States Bancorp, Inc. as of December 31, 2024[43] - Efficiency ratio for Q4 2024 was 71.42%, higher than 62.76% in Q3 2024 and 55.22% in Q4 2023[62] - Tangible Common Equity to Tangible Assets Ratio increased to 6.14% as of December 31, 2024, compared to 6.55% in December 2023[65] - Tangible common equity to tangible assets ratio decreased to 6.14% in December 2024 from 7.03% in September 2024[53] Shareholder Equity and Book Value - Accumulated other comprehensive loss of $82.0 million at December 31, 2024 reduced tangible book value by$3.81 per share[44] - Book value per share at period end decreased to $29.10 in December 2024 from$33.08 in September 2024[53] - Tangible Book Value Per Share decreased to $21.01 in December 2024 from$23.35 in December 2023[65] - Tangible Book Value Per Share, excluding AOCI, was $24.82 in December 2024, down from$26.91 in December 2023[65] - Total shareholders' equity—GAAP stood at $736,113 thousand as of December 31, 2024, a decrease from$791,853 thousand in December 2023[65] - Tangible common equity was $451,561 thousand in December 2024, down from$503,293 thousand in December 2023[65] - Tangible common equity excluding AOCI was $533,521 thousand in December 2024, down from$580,046 thousand in December 2023[65] Interest Rates and Yields - Average interest-earning assets for Q4 2024 were $7.01 billion, down from$7.07 billion in Q3 2024, with a yield decrease of 11 basis points to 5.80%[24] - Average loans for Q4 2024 were $5.65 billion, down from$5.78 billion in Q3 2024, with a loan yield of 6.04% compared to 6.15% in the previous quarter[25] - Investment securities averaged $1.21 billion in Q4 2024, yielding 4.73$1.16 billion and 4.71% in Q3 2024[26] - Average interest-bearing liabilities for Q4 2024 were $5.69 billion, down from$5.76 billion in Q3 2024, with a cost of funds decrease of 24 basis points to 3.21%[27] - Average interest-bearing deposits for Q4 2024 were $5.24 billion, up from$5.13 billion in Q3 2024, with a cost decrease of 21 basis points to 3.04%[28] - The yield on earning assets increased 26 basis points to 5.83% for the year ended December 31, 2024, while the cost of interest-bearing liabilities increased 44 basis points to 3.31%[31] - Total interest-earning assets for the year ended December 31, 2024, averaged $7.08 billion, yielding 5.83$7.27 billion and 5.57% in 2023[32] Wealth Management and Trust Assets - Wealth management revenue increased by $0.6 million (7.8$7.7 million in Q4 2024 compared to Q3 2024[36] - Assets under administration were $4.15 billion at December 31, 2024, compared to$4.27 billion and $3.73 billion at September 30, 2024 and December 31, 2023, respectively[36] - Trust assets under administration stood at$4.153 billion in December 2024, down from $4.269 billion in September 2024 but up from$3.733 billion in December 2023[53] Share Repurchase and Capital - The Company did not repurchase any shares of its common stock during Q4 2024 under the $25.0 million share repurchase program authorized in December 2023[45] - Common shares outstanding decreased to 21,494,485 in December 2024 from 21,551,402 in December 2023[65] Adjusted Earnings and Ratios - Adjusted pre-tax, pre-provision earnings for Q4 2024 were$21.460 million, down from $27.523 million in Q3 2024 and$35.898 million in Q4 2023[53] - Adjusted return on average tangible common equity for Q4 2024 was -41.74%, compared to 12.67% in Q3 2024 and 16.51% in Q4 2023[59] - Adjusted pre-tax, pre-provision return on average assets for Q4 2024 was 1.11%, down from 1.42% in Q3 2024 and 1.80% in Q4 2023[60] - Adjusted pre-tax, pre-provision earnings for Q4 2024 were $21.460 million, down from$27.523 million in Q3 2024 and $35.898 million in Q4 2023[60] Other Comprehensive Loss and AOCI - Accumulated other comprehensive loss (AOCI) increased to$(81,960) thousand in December 2024 from $(76,753) thousand in December 2023[65] Income Tax - Income tax benefit for Q4 2024 was$19.6 million, compared to expenses of $4.1 million for Q3 2024 and$6.4 million for Q4 2023[42]