Midland States Bancorp, Inc. reported a significant financial downturn for the fiscal year ending December 31, 2025, with a net loss of $124.3 million, translating to a diluted loss per share of $6.12. This contrasts sharply with the previous year's net income of $38 million, or $1.32 per share. The decline in profitability was primarily attributed to a $154 million goodwill impairment charge and a $21.4 million loss from the sale of its equipment finance portfolio. Total assets decreased to $6.51 billion from $7.51 billion in 2024, while total loans fell by 15.8% to $4.35 billion, largely due to the strategic divestiture of non-core loan portfolios.
In terms of operational changes, Midland States Bancorp has been actively restructuring its loan portfolio. The company sold its LendingPoint and GreenSky consumer loan portfolios, which contributed to a decrease in average loans of $891.3 million. The company also ceased originating new equipment finance loans, resulting in a significant reduction in that segment. The allowance for credit losses on loans was reported at $69.2 million, or 1.59% of total loans, down from $111.2 million, or 2.15%, in the previous year. This reduction reflects a decrease in charge-offs, which totaled $110.9 million in 2025 compared to $171.6 million in 2024.
Midland States Bancorp's wealth management segment showed some resilience, with revenue increasing by 8.1% to $31 million, driven by a rise in assets under administration to $4.48 billion. However, total noninterest income fell by 36.4% to $88.2 million, primarily due to a significant drop in credit enhancement income, which decreased by 83.8% as a result of the company's reduced third-party loan origination programs. The company’s noninterest expenses surged to $380 million, up 82.8% from the previous year, largely due to the goodwill impairment and increased salaries and employee benefits.
Looking ahead, Midland States Bancorp aims to stabilize its financial position by focusing on core community banking and relationship-driven growth. The company has emphasized a high-tech, high-touch approach to enhance customer experience while managing its credit risk more effectively. The management has expressed optimism about future profitability, contingent on improved economic conditions and the successful execution of its strategic initiatives. The company remains well-capitalized, exceeding regulatory capital requirements, which positions it favorably for potential growth opportunities in the coming years.
About Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a diversified financial holding company based in Illinois, operating Midland States Bank. It provides community banking services including commercial and consumer loans, real estate financing, deposit products, and wealth management. Serving regional markets in Illinois and Missouri, it emphasizes relationship-driven growth, risk management, and competitive banking solutions within a highly regulated industry.
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