Midland States Bancorp Reports Strong Third Quarter Results
News related to:Midland States Bancorp, Inc · 2 min read
EFFINGHAM, Ill., Oct. 22, 2026 /CourierPR/ -- Midland States Bancorp, Inc., a community-based financial holding company, reported strong financial results for the third quarter of 2026. The company's net income available to common shareholders reached $20.6 million, or $0.95 per diluted share, marking a significant improvement from the $17.7 million, or $0.82 per diluted share, reported in the previous quarter. This figure also surpassed the $5.3 million, or $0.24 per diluted share, earned in the third quarter of 2025.
The company's return on average assets stood at 1.35%, and its return on average tangible common equity was 18.50%. The net interest margin increased to 4.03% from 3.98% in the prior quarter, with the current quarter benefiting from a $1.6 million interest recovery on the payoff of a nonaccrual loan.
Total loans at the end of the third quarter of 2026 amounted to $4.28 billion, an increase of $39.1 million from the previous quarter. The Community Bank loan portfolio saw a growth of $23.7 million, or 2.8% annualized, during the quarter. Specialty finance loans increased by $28.0 million to $560.1 million, while non-core loans, which include third-party lending and servicing programs and the remaining equipment finance portfolio, decreased by $12.7 million to $295.7 million.
Total deposits stood at $5.62 billion at the end of September 30, 2026, a decrease of $89.8 million from the June 30, 2026, figure. Retail deposits decreased by $112.7 million, primarily due to balance reductions resulting from actions taken to manage liquidity and deposit pricing. Commercial and public funds deposits increased by $35.7 million and $33.7 million, respectively, while servicing and higher-cost brokered deposits decreased by $26.5 million and $7.9 million, respectively.
Wealth Management revenue for the third quarter of 2026 was $8.7 million, with assets under administration remaining stable at $4.77 billion, compared to $4.78 billion at the end of the previous quarter.
The company's noninterest income was $23.2 million for the third quarter of 2026, slightly down from $23.8 million in the previous quarter. Noninterest expense was $52.8 million, up from $50.8 million in the second quarter of 2026, driven by an increase in variable compensation expense.
The provision for credit losses on loans was $3.7 million for the third quarter of 2026, reflecting improved credit quality metrics, including favorable past due and delinquency trends. The allowance for credit losses on loans was $60.9 million, or 1.42% of total loans, at the end of September 30, 2026, compared to $62.5 million, or 1.47% of total loans, at the end of the previous quarter.
As of September 30, 2026, the company's total capital to risk-weighted assets ratio was 15.60%, and its common equity tier 1 capital was 10.36%. The ratio of nonperforming assets to total assets was 0.86%, a decrease of five basis points compared to the prior quarter.
The company also made meaningful progress in resolving legacy credit issues. Past-due, substandard, and nonperforming loans declined, net charge-offs moderated from the prior quarter, and the nonperforming asset ratio improved to 0.86%. Strong earnings continued to support the company's capital position, and it enters the fourth quarter with solid momentum.
Midland States Bancorp, Inc., headquartered in Effingham, Illinois, provides a full range of commercial and consumer banking products and services, merchant credit card services, trust and investment management, insurance, and financial planning services.