NasdaqGS:MSBI

Stock Analysis Report

Midland States Bancorp

Executive Summary

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Midland States Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MSBI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.6%

MSBI

-9.5%

US Banks

-3.8%

US Market


1 Year Return

-40.2%

MSBI

-34.8%

US Banks

-15.9%

US Market

Return vs Industry: MSBI underperformed the US Banks industry which returned -34.8% over the past year.

Return vs Market: MSBI underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

MSBIIndustryMarket
7 Day-9.6%-9.5%-3.8%
30 Day-31.5%-26.7%-17.4%
90 Day-45.1%-43.7%-24.1%
1 Year-38.0%-40.2%-32.8%-34.8%-14.1%-15.9%
3 Year-46.5%-51.4%-23.7%-29.4%10.0%2.8%
5 Yearn/a0.4%-11.2%27.6%13.5%

Price Volatility Vs. Market

How volatile is Midland States Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Midland States Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MSBI ($15.62) is trading below our estimate of fair value ($33.57)

Significantly Below Fair Value: MSBI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MSBI is good value based on its PE Ratio (6.9x) compared to the Banks industry average (8.5x).

PE vs Market: MSBI is good value based on its PE Ratio (6.9x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: MSBI is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: MSBI is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Midland States Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

6.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSBI's forecast earnings growth (6.5% per year) is above the savings rate (1.7%).

Earnings vs Market: MSBI's earnings (6.5% per year) are forecast to grow slower than the US market (13.4% per year).

High Growth Earnings: MSBI's earnings are forecast to grow, but not significantly.

Revenue vs Market: MSBI's revenue (3.8% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: MSBI's revenue (3.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MSBI's Return on Equity is forecast to be low in 3 years time (9.2%).


Next Steps

Past Performance

How has Midland States Bancorp performed over the past 5 years?

30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MSBI has high quality earnings.

Growing Profit Margin: MSBI's current net profit margins (22%) are higher than last year (16.2%).


Past Earnings Growth Analysis

Earnings Trend: MSBI's earnings have grown significantly by 30.2% per year over the past 5 years.

Accelerating Growth: MSBI's earnings growth over the past year (41.6%) exceeds its 5-year average (30.2% per year).

Earnings vs Industry: MSBI earnings growth over the past year (41.6%) exceeded the Banks industry 10.9%.


Return on Equity

High ROE: MSBI's Return on Equity (8.4%) is considered low.


Next Steps

Financial Health

How is Midland States Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MSBI has a low level of unsold assets or inventory.

Debt Coverage by Assets: MSBI's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: MSBI's level of assets compared to its equity is low.

Allowance for Bad Loans: MSBI has a low allowance for bad loans.

Low Risk Liabilities: MSBI's liabilities are made up of primarily low risk sources of funding.

Loan Level: MSBI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MSBI's loans are broadly funded by customer deposits.

Level of Bad Loans: MSBI has an appropriate level of bad loans (0.95%)


Next Steps

Dividend

What is Midland States Bancorp's current dividend yield, its reliability and sustainability?

6.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MSBI's dividend (6.85%) is higher than the bottom 25% of dividend payers in the US market (2.07%).

High Dividend: MSBI's dividend (6.85%) is in the top 25% of dividend payers in the US market (5.82%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MSBI has been paying a dividend for less than 10 years.

Growing Dividend: MSBI's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.6%), MSBI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MSBI's dividends in 3 years are forecast to be well covered by earnings (41.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Jeff Ludwig (47yo)

1.25s

Tenure

US$1,354,060

Compensation

Mr. Jeffrey G. Ludwig, also known as Jeff, CPA, serves as Chief Executive Officer at Midland States Bancorp, Inc. since January 1, 2019 and has been its Director since February 05, 2019. Mr. Ludwig has bee ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.35M) is below average for companies of similar size in the US market ($USD2.30M).

Compensation vs Earnings: Jeff's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Ludwig
President1.25yrsUS$1.35m0.80% $3.0m
Eric Lemke
Chief Financial Officer0.42yrUS$346.62k0.022% $82.8k
Donald Spring
Chief Accounting Officer & Controller0.67yrUS$446.02k0.047% $178.9k
Douglas Tucker
Senior VP9.5yrsUS$669.37k0.053% $201.8k
Jeffrey Mefford
Executive Vice President1.25yrsUS$890.53k0.20% $766.1k
Aaron Rios
Director of Operationsno datano datano data
Kyle Mooney
Chief Information Officerno datano datano data
John Dietrich
Director of Marketingno datano datano data
William Wierman
Senior Credit Officer & Manager of Retail and Business Bankingno datano datano data
Danny Stevenson
North Senior Vice President of Bankingno datano datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Management: MSBI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Ludwig
President1.25yrsUS$1.35m0.80% $3.0m
Richard Ramos
Independent Director8.17yrsUS$92.49k0.053% $200.6k
Leon Holschbach
Vice Chairman of the Board12.67yrsUS$59.98k0.62% $2.4m
Deborah Golden
Independent Director4.42yrsUS$62.49k0.0040% $15.4k
Dwight Miller
Independent Director8.25yrsUS$72.18k0.29% $1.1m
John Schultz
Chairman of the Board14.25yrsUS$85.73k1.46% $5.6m
Jeffrey Smith
Independent Director15.25yrsUS$140.96k0.13% $491.2k
Robert Schultz
Independent Director18.25yrsUS$104.98k0.42% $1.6m
Jerry McDaniel
Independent Director8.25yrsUS$80.18k0.56% $2.1m
Jeffrey McDonnell
Independent Director5.25yrsUS$47.48k0.061% $234.2k

8.3yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MSBI's board of directors are considered experienced (8.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MSBI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Company Information

Midland States Bancorp, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Midland States Bancorp, Inc.
  • Ticker: MSBI
  • Exchange: NasdaqGS
  • Founded: 1881
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$381.454m
  • Shares outstanding: 24.42m
  • Website: https://www.midlandsb.com

Number of Employees


Location

  • Midland States Bancorp, Inc.
  • 1201 Network Centre Drive
  • Effingham
  • Illinois
  • 62401
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MSBINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2016

Biography

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Commercial FHA Origination and Servicing, Wealth Management, and Other segments. The company accepts various deposits, such as checking, savings, money market, and sweep accounts, as well as certificates of deposit, noninterest-bearing and interest-bearing demand deposits, and time deposits. Its loan portfolio include commercial lending products consisting of owner occupied commercial real estate, commercial real estate investment, real estate construction, and multifamily loans, as well as loans to purchase farmland and finance agricultural production; business term loans, equipment financing, and lines of credit; consumer installment loans for purchase cars, boats, other recreational vehicles, and appliances, as well as other home improvement projects; and residential first and second mortgage loans, and home equity lines of credit. The company also originates residential mortgage loans; and commercial mortgage loans for multifamily and healthcare facilities. In addition, it provides trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, tax and insurance planning, business planning, corporate retirement plan consulting and administration, and retail brokerage services. Further, the company offers commercial equipment leasing and merchant services. As of December 31, 2018, it operated 69 banking offices in 48 communities within its market areas, such as Illinois and the St. Louis metropolitan areas. The company was founded in 1881 and is headquartered in Effingham, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 03:47
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.