MSBI Should I Buy
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$
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0.000(0.000%)
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Midland States Bancorp Inc (MSBI) is not a strong buy for a beginner, long-term investor at this time. While the company is making efforts to improve credit quality and streamline operations, the recent financial performance shows significant revenue decline and negative net income. Additionally, technical indicators are mixed, and there are no strong trading signals or significant positive catalysts to justify immediate investment. A hold position is recommended until clearer signs of financial recovery or growth emerge.
The MACD is negative and expanding (-0.113), indicating bearish momentum. RSI is neutral at 42.862, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near a key support level (S1: 22.698) with resistance at R1: 24.096. Overall, the technical indicators suggest mixed signals with no clear upward momentum.
The company has improved its common equity tier 1 ratio to 9.89% and repurchased $9.6 million of its common stock. The Community Bank segment achieved 6.5% annualized loan growth, and the wealth management business delivered record performance with expectations for continued momentum.
Q4 financial results showed a significant revenue drop (-39.78% YoY) and negative net income (-$5.12M). Analysts remain cautious, citing higher-than-expected credit costs and ongoing challenges in achieving credit stability. Non-performing assets are still above the target of 0.75%.
In Q4 2025, revenue dropped by 39.78% YoY to $51.62M. Net income improved YoY but remains negative at -$5.12M. EPS increased to -$0.24, up 60% YoY. The financials indicate some improvement in profitability metrics but overall weak performance.
Analysts have raised price targets slightly, with DA Davidson at $24, Keefe Bruyette at $22, and Piper Sandler at $25.50. However, all maintain Neutral or Market Perform ratings, reflecting cautious sentiment due to credit cost concerns and inconsistent financial performance.
