Midland States Bancorp Reports $19.9 Million Net Income in Q2 2026

Midland States Bancorp, Inc. reported a net income of $19.9 million, or $0.82 per diluted share, for the second quarter of 2026, marking a significant increase from the $12.0 million, or $0.44 per diluted share, recorded in the same period of 2025. The company's total revenue for the quarter was $88.2 million, down from $97.9 million year-over-year, primarily due to a decrease in interest income, which fell to $88.2 million from $97.9 million. The decline in interest income was attributed to a reduction in average interest-earning assets, particularly loans, which decreased by $855.4 million compared to the previous year.

In terms of profitability, the provision for credit losses decreased significantly to $6.8 million in the second quarter of 2026 from $17.4 million in the same quarter of 2025. This reduction reflects the company's ongoing efforts to improve credit quality and manage nonperforming loans. Noninterest income also saw a slight increase, totaling $23.8 million compared to $23.5 million in the prior year, driven by growth in wealth management revenue and service charges on deposit accounts.

Operationally, Midland States Bancorp's total assets increased to $6.70 billion as of June 30, 2026, up from $6.51 billion at the end of 2025. The company's loan portfolio decreased to $4.24 billion, a decline of 2.5% from the previous period, with notable reductions in specialty finance and non-core portfolios. The allowance for credit losses on loans was $62.5 million, or 1.47% of total loans, down from $69.2 million, or 1.59%, at the end of 2025. The company reported a decrease in nonperforming loans to $60.9 million, representing 1.43% of total loans, compared to $65.5 million, or 1.50%, at the end of the previous year.

Strategically, Midland States Bancorp has focused on enhancing its community banking relationships while reducing exposure to higher-risk loan portfolios. The company ceased originating new construction loans in its specialty finance sector in late 2024 and sold a significant portion of its equipment finance portfolio in the fourth quarter of 2025. These actions have contributed to a more stable loan portfolio and improved credit quality. Looking ahead, the company anticipates continued growth in its core deposit base and a stable economic environment, which will support its financial performance in the coming quarters.