Midland States Bancorp, Inc. operates as a diversified financial holding company whose banking subsidiary provides commercial and consumer banking services, commercial real estate and mortgage lending, and wealth management services including trust, fiduciary, brokerage and retirement planning.
Company announcements commonly address quarterly operating results, net interest margin and loan growth, credit quality, non-performing assets, portfolio sales and balance-sheet risk reduction. Other recurring developments include common and preferred stock dividends, stock repurchase authorizations, board and executive changes, institutional ownership, and capital management actions.
Midland States Bancorp (MSBI) reported a net income of $86 thousand for Q3 2020, significantly lower than $12.6 million in Q2 2020, impacted by $13.9 million in optimization charges. Adjusted earnings were $12.0 million, or $0.52 per share. Total loans rose 2.1% to $4.94 billion, while deposits increased 1.7% to $5.03 billion. The allowance for credit losses reached 1.07% of loans. Nonperforming loans increased to 1.36% of total loans. The bank remains cautious amid economic recovery and has continued its stock repurchase program, utilizing $13.3 million of the $50 million authorization.
Midland States Bancorp (NASDAQ: MSBI) will release its Q3 2020 financial results after market close on October 22, 2020. A conference call and webcast scheduled for October 23, 2020, at 7:30 a.m. CT will provide analysts and investors an opportunity to discuss these results. The call will be accessible via telephone and a live webcast, with an archived version available shortly after the event. As of June 30, 2020, Midland reported total assets of $6.64 billion and approximately $3.25 billion in assets under administration in its Wealth Management Group.
Midland States Bancorp (NASDAQ: MSBI) announced significant reductions in its branch network and corporate office space, aiming to boost efficiency and financial performance. By closing or consolidating 13 branches (20% of its network) and vacating 23,000 sq. ft. of office space, Midland expects to achieve annual cost savings of about $5 million. The company will also invest $4 million in renovating five branches to better serve customers, yielding an additional $1 million in savings starting in 2022. However, one-time costs related to these changes may reach $15 million.
Midland States Bancorp (NASDAQ: MSBI) announced the sale of its commercial FHA origination platform via its Love Funding subsidiary to Dwight Capital. This strategic move aims to enhance efficiency and reduce earnings volatility. Midland will maintain servicing of Love Funding's $3.9 billion portfolio, including $284 million in low-cost deposits, ensuring continued income and lower operating expenses. The sale price approximates the remaining goodwill from the 2014 acquisition, resulting in no immediate gain or loss for the company.
Midland States Bancorp (NASDAQ: MSBI) announced a quarterly cash dividend of $0.2675 per share, payable on or about August 21, 2020. This payment is for shareholders on record as of the close of business on August 14, 2020. As of June 30, 2020, Midland had total assets of approximately $6.64 billion and its Wealth Management Group had approximately $3.25 billion in assets under administration. The company offers a full range of financial services, including banking, investment management, and FHA financing through its subsidiary, Love Funding.
Midland States Bancorp reported a net income of $12.6 million, or $0.53 diluted earnings per share, for Q2 2020, a notable increase from $1.5 million, or $0.06 per share, in Q1 2020. Total loans rose 10.6% to $4.84 billion, while deposits increased 6.3% to $4.94 billion. The efficiency ratio improved to 58.5%. A key highlight was a provision for credit losses of $11.6 million due to an uncertain economic outlook. The bank's capital ratios exceeded regulatory requirements, and a stock repurchase program is ongoing with $18.3 million remaining.