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

Fundamentals

Excellent balance sheet and good value.


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


Market Performance


7 Day Return

1.3%

MSBI

2.9%

US Banks

0.07%

US Market


1 Year Return

0.6%

MSBI

8.6%

US Banks

8.9%

US Market

Return vs Industry: MSBI underperformed the US Banks industry which returned 8.6% over the past year.

Return vs Market: MSBI underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

MSBIIndustryMarket
7 Day1.3%2.9%0.07%
30 Day-2.5%3.4%-0.3%
90 Day1.7%2.1%-1.6%
1 Year4.4%0.6%11.8%8.6%11.3%8.9%
3 Year10.0%0.7%54.8%44.1%46.3%36.8%
5 Yearn/a70.2%51.6%62.1%44.3%

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?

11.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MSBI ($26.54) is trading above our estimate of fair value ($13.49)

Significantly Below Fair Value: MSBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MSBI is good value based on its PE Ratio (11.6x) compared to the Banks industry average (12.6x).

PE vs Market: MSBI is good value based on its PE Ratio (11.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MSBI is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: MSBI is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MSBI's forecast earnings growth (12.3% per year) is above the savings rate (2.7%).

Earnings vs Market: MSBI's earnings (12.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: MSBI's revenue (8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MSBI's revenue (8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MSBI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

28.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MSBI's earnings have grown significantly by 28.8% per year over the past 5 years.

Accelerating Growth: MSBI's earnings growth over the past year (197.5%) exceeds its 5-year average (28.8% per year).

Earnings vs Industry: MSBI earnings growth over the past year (197.5%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: MSBI's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: MSBI's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate MSBI's Return on Capital Employed to determine if it has improved over the past 3 years.


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 0.3x 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 (1.23%)


Next Steps

Dividend

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

3.65%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years3.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MSBI's dividend (3.65%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: MSBI's dividend (3.65%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.6%), MSBI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Midland States Bancorp's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Jeff Ludwig (47yo)

0.8yrs

Tenure

US$1,028,244

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

0.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: MSBI's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

7.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: MSBI's board of directors are considered experienced (7.8 years average tenure).


Insider Trading

Insider Buying: MSBI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$373,74412 Sep 19
Jerry McDaniel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares14,259
Max PriceUS$26.21
SellUS$26,89031 Jul 19
Douglas Tucker
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares1,000
Max PriceUS$26.89
SellUS$362,87006 May 19
R. Funderburg
EntityIndividual
Shares13,412
Max PriceUS$27.06
SellUS$342,02203 May 19
Jerry McDaniel
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,663
Max PriceUS$27.01
SellUS$188,25602 May 19
R. Funderburg
EntityIndividual
Shares7,058
Max PriceUS$26.67
SellUS$401,78618 Mar 19
R. Funderburg
EntityIndividual
Shares16,080
Max PriceUS$25.07
SellUS$436,69205 Mar 19
R. Funderburg
EntityIndividual
Shares17,058
Max PriceUS$25.60
SellUS$118,50713 Feb 19
R. Funderburg
EntityIndividual
Shares4,837
Max PriceUS$24.50
SellUS$162,37411 Feb 19
R. Funderburg
EntityIndividual
Shares6,663
Max PriceUS$24.43
SellUS$147,30007 Feb 19
R. Funderburg
EntityIndividual
Shares6,000
Max PriceUS$24.55
SellUS$303,52405 Feb 19
R. Funderburg
EntityIndividual
Shares12,500
Max PriceUS$24.28
SellUS$169,83804 Feb 19
R. Funderburg
EntityIndividual
Shares7,058
Max PriceUS$24.06
SellUS$169,09816 Jan 19
R. Funderburg
EntityIndividual
Shares7,211
Max PriceUS$23.45
SellUS$6,08215 Jan 19
R. Funderburg
EntityIndividual
Shares261
Max PriceUS$23.30
SellUS$346,32808 Jan 19
R. Funderburg
EntityIndividual
Shares15,000
Max PriceUS$23.09
SellUS$329,85903 Jan 19
R. Funderburg
EntityIndividual
Shares14,586
Max PriceUS$22.63
BuyUS$99,98617 Dec 18
Jeffrey McDonnell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,395
Max PriceUS$22.75
BuyUS$11,42014 Dec 18
Douglas Tucker
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares500
Max PriceUS$22.84
BuyUS$11,37512 Dec 18
Douglas Tucker
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares500
Max PriceUS$22.75
BuyUS$77210 Dec 18
Robert Schultz
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares33
Max PriceUS$23.40

Ownership Breakdown


Management Team

  • Doug Tucker (60yo)

    Senior VP

    • Tenure: 9yrs
    • Compensation: US$620.12k
  • Jeff Ludwig (47yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$1.03m
  • Jeff Mefford (54yo)

    Executive Vice President

    • Tenure: 0.8yrs
    • Compensation: US$686.37k
  • Dan Stevenson

    North Senior Vice President of Banking

    • Tenure: 0yrs
  • Timothy Spitz

    South Senior Vice President of Banking

    • Tenure: 0yrs
  • Don Spring (59yo)

    Chief Accounting Officer

    • Tenure: 0.2yrs
  • John Dietrich

    Director of Marketing

    • Tenure: 0yrs
  • Kyle Mooney

    Chief Information Officer

    • Tenure: 0yrs
  • Aaron Rios

    Director of Operations

    • Tenure: 0yrs
  • William Wierman

    Senior Credit Officer & Manager of Retail and Business Banking

    • Tenure: 0yrs

Board Members

  • Rick Ramos (56yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$80.94k
  • Leon Holschbach (66yo)

    Vice Chairman

    • Tenure: 12.2yrs
    • Compensation: US$1.24m
  • Deb Golden (64yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$55.00k
  • Dwight Miller (66yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$63.44k
  • Jeff Ludwig (47yo)

    President

    • Tenure: 0.8yrs
    • Compensation: US$1.03m
  • Jack Schultz (67yo)

    Chairman of the Board

    • Tenure: 13.8yrs
    • Compensation: US$79.38k
  • Jeff Smith (57yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$101.78k
  • Bob Schultz (54yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$89.69k
  • Jerry McDaniel (54yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$100.94k
  • Jeffrey McDonnell (55yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$44.69k

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$651.097m
  • Shares outstanding: 24.53m
  • 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 entiti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:38
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.