Midland States Bancorp, Inc. (MSBI) stock analysis

P/E above its 5-year median

Midland States Bancorp's P/E of 14.1 is above its own 5-year median of 8.2.

P/E above the industry

Midland States Bancorp's P/E of 14.1 is above the Commercial Banks median of 12.1.

P/S below the industry

Midland States Bancorp's price-to-sales of 2.00 is below the Commercial Banks median of 3.60.

P/B below the industry

Midland States Bancorp's price-to-book of 1.26 is below the Commercial Banks median of 1.29.

Trading above fair value

The share price of $32.09 is above our fair value estimate of $24.49.

Margin of safety under 20%

The price is 31.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -7.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 0.3% over the last twelve months; the Commercial Banks median is 11.3%.

Guidance raised

Midland States Bancorp raised its full year effective tax rate outlook on Jul 23, 2026.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 10.4% over the last twelve months and averaged 4.7% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.8%; for a bank or insurer, 1% or more is considered good.

Return on equity below the industry

Midland States Bancorp's return on equity of 10.4% is below the Commercial Banks median of 11.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 17.4% over the last twelve months, against a 5-year average of 8.5%.

Net margin below the industry

Midland States Bancorp's net margin of 17.4% is below the Commercial Banks median of 30.3%.

Thin capital

Equity is 7.8% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 75.2% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.4% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 69.1% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 0.2% over the past year.

Modest borrowings

Borrowings other than deposits are 28.5% of equity.

Pays a dividend

Midland States Bancorp paid dividends worth 4.0% of the share price over the last twelve months.

Yield below Treasuries

The 4.0% yield is below the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Midland States Bancorp yields 4.0%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 47.7% of net income.

Covered by free cash flow

Dividends take 36.8% of free cash flow.