Midland States Bancorp Reports $7.6 Million Net Income in Q3 2025, Down from $20.4 Million Last Year

Midland States Bancorp, Inc. reported a net income of $7.6 million for the third quarter of 2025, translating to diluted earnings per share of $0.24. This marks a significant decline from the $20.4 million net income, or $0.83 per share, recorded in the same quarter of the previous year. The decrease in profitability was attributed to a $2.1 million increase in the provision for credit losses, a $13.5 million drop in noninterest income, and a slight rise in noninterest expenses. For the nine months ending September 30, 2025, the company experienced a net loss of $121.4 million, compared to a net income of $68.8 million for the same period in 2024, largely due to a $154 million goodwill impairment recognized earlier in the year.

Total assets for Midland States Bancorp decreased to $6.91 billion as of September 30, 2025, down from $7.51 billion at the end of 2024. The decline in total loans was notable, with a reduction of $300 million, or 5.8%, to $4.87 billion. This decrease was primarily driven by strategic decisions to sell non-core consumer loan portfolios, including the LendingPoint and GreenSky portfolios, which contributed to a significant reduction in average loans. The company’s allowance for credit losses on loans was $100.9 million, representing 2.07% of total loans, a slight decrease from 2.15% at the end of 2024.

In terms of operational developments, Midland States Bancorp has ceased originating new equipment finance leases as of September 30, 2025, in response to elevated charge-offs in that portfolio. The company also reported a decrease in its employee headcount, with 869 employees as of September 30, 2025, down from 907 a year earlier. The company’s wealth management segment saw an increase in revenue, contributing $8 million in the third quarter, up from $7.1 million in the same period last year, reflecting a rise in assets under administration.

Looking ahead, Midland States Bancorp is focused on improving its credit quality and managing its loan portfolio more effectively. The company has implemented tighter underwriting standards and is actively pursuing opportunities to resolve nonperforming loans. The management remains cautious about market conditions and is prepared to adjust its strategies as necessary to navigate the evolving economic landscape. The company’s capital ratios indicate that it remains well-capitalized, exceeding regulatory minimums, which positions it favorably for future growth and stability.