Midland States Bancorp (MSBI) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $12.0M ($0.44 per diluted share), rebounding from a Q1 net loss due to a $154.0M goodwill impairment; year-to-date net loss was $129.0M.

• Tangible book value per share rose to $20.68, with all capital ratios improving sequentially.

• Community bank loans grew 1.8% quarter-over-quarter, and five new commercial bankers were added.

• Total assets decreased to $7.11B at June 30, 2025, from $7.51B at year-end 2024.

• Nonperforming assets to total assets improved to 1.56% from 2.08% sequentially.

Financial highlights

• Net interest income for Q2 2025 was $58.7M, with net interest margin expanding to 3.56% (up 7 bps sequentially).

• Pre-provision net revenue was $32.2M, up 19% from the previous quarter.

• Provision for credit losses was $17.4M, with $29.9M in charge-offs; allowance for credit losses at 1.83% of total loans.

• Noninterest income was $23.5M, down year-over-year due to lower credit enhancement income.

• Noninterest expense for the six months ended June 30, 2025, was $253.0M, up from $99.4M, mainly due to goodwill impairment.

Outlook and guidance

• Management expects further profitability improvement in 2025, supported by higher net interest margin and reduced credit risk.

• Focus remains on growing regulatory capital, efficiency, and improving credit quality.

• Ongoing pressure on noninterest income is expected due to the cessation of certain third-party loan programs.