Midland States Bancorp: Improving Asset Quality Drives Earnings

Midland States Bancorp is rated buy, driven by improving asset quality and lower credit provisions supporting higher earnings. MSBI's 4% dividend yield and 26 consecutive years of dividend growth, alongside ongoing share buybacks, offer strong shareholder returns. Wealth management achieved record assets and fees in 2Q26, with further growth expected from expanded advisor hiring. MSBI trades at a 19% forward PE discount to the sector median, with valuation and capital strength supporting upside despite CRE loan concentration risks.

Midland States Bancorp ( MSBI ) is rated a BUY as asset quality is expected to continue to improve due to lower provisions. Provisions, overdue loans, and non-performing loans as a percentage of total loans all fell