Midland States Bancorp, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, the company achieved a net income of $18.5 million, a significant increase from $11.4 million in the same period of 2023. This growth was attributed to a $7.8 million rise in noninterest income and a $7.5 million reduction in income tax expense. Basic earnings per share rose to $0.74 from $0.41 year-over-year.
However, for the nine months ended September 30, 2024, net income decreased to $39.1 million from $54.7 million in 2023. The decline was primarily due to a $21.6 million increase in the provision for credit losses, a $12 million drop in net interest income, and a $9.7 million rise in noninterest expenses. Net interest income for the third quarter was $55.0 million, down from $58.6 million in 2023, while for the nine months, it fell to $165.9 million from $177.9 million.
Total interest income for the third quarter increased slightly to $104.8 million from $103.6 million, driven by improved yields on earning assets, which rose to 5.91% from 5.65%. Conversely, total interest expense rose to $49.9 million from $44.9 million, reflecting higher costs associated with interest-bearing liabilities.
The company’s total assets as of September 30, 2024, were reported at $7.75 billion, a decrease from $7.87 billion at the end of 2023. Total loans decreased by $382.3 million to $5.75 billion, with notable declines in equipment financing and consumer loans, particularly due to the cessation of loans originated through GreenSky. Nonperforming loans surged to $114.6 million, up from $56.4 million at the end of 2023, largely due to credit deterioration in the LendingPoint portfolio.
In terms of strategic developments, Midland States Bancorp has implemented changes in its underwriting criteria and halted loan originations in certain sectors to mitigate risks associated with credit deterioration. The company also authorized a new share repurchase program, allowing for the repurchase of up to $25 million of common stock through the end of 2024, with $5.5 million spent on repurchases in the third quarter.
Overall, while the company experienced a strong performance in the third quarter, challenges in the nine-month results and loan portfolio management reflect ongoing adjustments to market conditions and credit quality.
About Midland States Bancorp, Inc.
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