DA Davidson Raises Midland States Bancorp (MSBI) Target to $24, Keeps Neutral After Q4

Midland States Bancorp, Inc. (NASDAQ:MSBI) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

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On January 26, DA Davidson lifted its terms people connected Midland States Bancorp, Inc. (NASDAQ:MSBI) to $24 from $23 and kept a Neutral standing pursuing the company’s Q4 results. While net came successful beneath expectations, the steadfast said Midland’s propulsion to refocus the concern astir its halfway assemblage banking model, with greater consistency and stronger recognition discipline, could acceptable up a overmuch cleaner show illustration successful 2026.

During the Q4 2025 net call, President and CEO Jeffrey G. Ludwig said the institution entered the twelvemonth with a wide precedence connected improving recognition quality. Throughout 2025, absorption worked to trim hazard successful the indebtedness portfolio and fortify the equilibrium sheet. Ludwig noted that the institution upgraded its recognition team, reinforced its recognition culture, and tightened underwriting standards. Although non-performing assets were inactive supra the firm’s 0.75% target, helium said the advancement made during the twelvemonth laid a coagulated instauration for continued improvement. He besides emphasized that these changes were made without raising caller capital, adjacent arsenic the institution continued investing successful its halfway businesses.

By year-end, Midland’s superior presumption had improved arsenic well. The communal equity tier 1 ratio accrued to 9.89%, bringing it person to the company’s 10% target. With shares trading adjacent tangible publication worth during the quarter, the institution repurchased $9.6 cardinal of its communal stock.

On the gross front, Ludwig said trends held up good successful the 4th quarter. Performance was supported by a steadfast nett involvement borderline and astir 6.5% annualized indebtedness maturation successful the Community Bank segment. He added that the wealthiness absorption concern posted different grounds quarter. Looking ahead, Ludwig said the institution plans to support investing successful these areas and expects the momentum to widen into 2026.

Midland States Bancorp, Inc. (NASDAQ:MSBI) is simply a diversified fiscal holding institution with operations spanning Banking, Wealth Management, and Other segments. The Banking portion provides a wide scope of fiscal products and services to some consumers and businesses.

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