Midland States Bancorp, Inc. (MSBI)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Midland States Bancorp, Inc. (MSBI) trades at $30.73 with AI Score 86/100 (Grade A+). Midland States Bancorp, Inc. Market cap: $637.03M, Sector: Financial services.
Price live · AI analysis from May 10, 2026MSBI stock analysis for 2026: Analysts have set a consensus price target of $24.75 for Midland States Bancorp, Inc., suggesting 19.5% downside from the current price of $30.73. The AI MoonshotScore is 86/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
MSBI: 6/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Midland States Bancorp, Inc. (MSBI) Financial Services Profile
Midland States Bancorp, Inc., a regional bank holding company, provides banking, wealth management, and trust services. Founded in 1881 and headquartered in Effingham, Illinois, MSBI operates 52 full-service banking offices. The company distinguishes itself through its diversified financial service offerings and focus on community banking.
What Is the Investment Thesis for MSBI?
Midland States Bancorp presents a compelling investment case based on its diversified revenue streams, including banking and wealth management services. With a dividend yield of 4.49%, MSBI offers an attractive income component. The company's beta of 0.56 suggests lower volatility compared to the broader market. A potential growth catalyst lies in expanding wealth management services, leveraging the increasing demand for financial planning. However, investors should monitor the impact of interest rate fluctuations on net interest margin and the competitive pressures from larger regional and national banks. The company's P/E ratio of 8.4 should be evaluated against its peers to assess valuation.
Based on FMP financials and quantitative analysis
MSBI Key Highlights
- Market Cap of $637.03M indicates a mid-sized regional bank.
- P/E ratio of 8.4 suggests a moderate valuation compared to earnings.
- Profit Margin of 7.8% reflects the company's ability to generate profit from revenue.
- Gross Margin of 59.7% indicates efficient management of revenue and costs.
- Dividend Yield of 4.49% provides an attractive income stream for investors.
Who Are MSBI's Competitors?
MSBI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HBNC Horizon Bancorp, Inc. | $19.88 | +0.52% | $1.02B | 37 |
| MBWM Mercantile Bank Corporation | $57.67 | -0.24% | $996.21M | 58 |
| HFWA Heritage Financial Corporation | $29.81 | +0.37% | $1.01B | 92 |
| MCHB Mechanics Bank | $16.24 | +0.50% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| GBOOY Grupo Financiero Banorte, S.A.B. de C.V. | $54.16 | +0.39% | $30.47B | 67 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are MSBI's Key Strengths?
- Diversified revenue streams from banking and wealth management.
- Strong local presence and community relationships.
- Conservative lending practices and strong credit quality.
- Experienced management team.
What Are MSBI's Weaknesses?
- Smaller size compared to larger regional and national banks.
- Limited geographic footprint.
- Dependence on net interest income.
- Higher operating costs compared to larger banks.
What Could Drive MSBI Stock Higher?
- Potential interest rate hikes by the Federal Reserve could increase net interest margin.
- Expansion of wealth management services driving fee income growth.
- Digital transformation initiatives enhancing customer experience and reducing costs.
What Are the Key Risks for MSBI?
- Financial-distress signal — its Altman Z-Score of -0.58 sits in the distress zone (elevated bankruptcy risk).
- Economic downturn could negatively impact loan quality and increase credit losses.
- Increasing competition from larger banks and fintech companies could erode market share.
- Interest rate volatility could negatively impact net interest margin.
- Regulatory changes and compliance costs could increase operating expenses.
What Are the Growth Opportunities for MSBI?
- Expansion of Wealth Management Services: Midland States Bancorp can capitalize on the growing demand for wealth management services by expanding its offerings and client base. The market for wealth management is projected to grow at 6% annually, reaching $40 trillion by 2030. By investing in technology and hiring experienced financial advisors, MSBI can attract high-net-worth individuals and families seeking comprehensive financial planning.
- Strategic Acquisitions: MSBI can pursue strategic acquisitions of smaller banks or wealth management firms to expand its geographic footprint and service offerings. The regional banking sector is consolidating, creating opportunities for MSBI to acquire undervalued assets and increase its market share. A well-executed acquisition strategy can drive revenue growth and improve operational efficiency.
- Digital Transformation: Investing in digital banking technologies can enhance customer experience, reduce operating costs, and attract younger customers. The adoption of mobile banking and online platforms is increasing rapidly, and MSBI needs to keep pace with these trends. By offering user-friendly digital tools, MSBI can improve customer satisfaction and loyalty.
- Commercial Lending Growth: Focusing on commercial lending to small and medium-sized businesses (SMBs) can drive loan growth and increase net interest income. The SMB sector is a key driver of economic growth, and MSBI can provide tailored financing solutions to meet their needs. By building strong relationships with local businesses, MSBI can establish a competitive advantage and generate sustainable loan growth.
- Increased Fee Income: Growing fee income through wealth management, trust services, and other non-interest income sources can diversify revenue streams and improve profitability. Fee income is less sensitive to interest rate fluctuations and can provide a stable source of earnings. By offering value-added services and building strong customer relationships, MSBI can increase fee income and reduce its reliance on net interest income.
What Opportunities Does MSBI Have?
- Expansion of wealth management services.
- Strategic acquisitions of smaller banks or wealth management firms.
- Digital transformation to enhance customer experience and reduce costs.
- Growth in commercial lending to small and medium-sized businesses.
What Threats Does MSBI Face?
- Increasing competition from larger banks and fintech companies.
- Interest rate volatility and its impact on net interest margin.
- Regulatory changes and compliance costs.
- Economic downturn and its impact on loan quality.
What Are MSBI's Competitive Advantages?
- Established local presence and strong community relationships.
- Diversified revenue streams from banking and wealth management services.
- Experienced management team with deep industry knowledge.
- Conservative lending practices and strong credit quality.
What Does MSBI Do?
Midland States Bancorp, Inc., established in 1881, functions as the financial holding company for Midland States Bank. The bank delivers a comprehensive suite of financial products and services, catering to individuals, businesses, municipalities, and other entities. Midland States Bancorp operates through three primary segments: Banking, Wealth Management, and Other. The Banking segment provides a variety of deposit accounts, including checking, savings, money market, and certificates of deposit. It also offers a range of loan products, such as term loans for capital equipment, lines of credit for working capital, commercial real estate loans, farmland loans, construction and land development loans, residential real estate loans, and home equity lines of credit. The Wealth Management segment 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. As of December 31, 2021, Midland States Bancorp operated 52 full-service banking offices, primarily serving communities in Illinois and Indiana. The company is headquartered in Effingham, Illinois, and continues to focus on building relationships and providing tailored financial solutions to its diverse customer base.
What Products and Services Does MSBI Offer?
- Provides banking products and services to individuals, businesses, and municipalities.
- Offers checking, savings, money market, and sweep accounts.
- Provides term loans for capital equipment purchases.
- Offers lines of credit for working capital and operational purposes.
- Provides commercial real estate loans and farmland loans.
- Offers construction and land development loans.
- Provides residential real estate loans and home equity lines of credit.
- Offers wealth management products and services, including financial and estate planning.
How Does MSBI Make Money?
- Generates revenue through net interest income from loans and investments.
- Earns fee income from wealth management, trust services, and other non-interest income sources.
- Manages deposits and provides banking services to individuals and businesses.
- Invests in securities and other assets to generate returns.
What Industry Does MSBI Operate In?
Midland States Bancorp operates within the regional banking sector, which is characterized by increasing competition from larger national banks and fintech companies. The industry is also subject to regulatory changes and interest rate volatility. Regional banks like Midland States Bancorp differentiate themselves through personalized service and local market expertise. The wealth management segment is experiencing growth due to an aging population and increasing demand for retirement planning services. The regional banking sector is expected to see moderate growth, driven by economic expansion and increased lending activity.
Who Are MSBI's Key Customers?
- Individuals seeking personal banking and wealth management services.
- Small and medium-sized businesses requiring commercial loans and banking solutions.
- Municipalities needing financial services and deposit accounts.
- Other entities, including non-profit organizations and government agencies.
FY2026 estForward Outlook
Wall Street analysts project Midland States Bancorp, Inc. revenue of about $323.8M for fiscal 2026, with EPS near $3.12. The estimate reflects 4 contributing analysts.
MSBI Valuation & Market Position
With a $637.03M market cap, Midland States Bancorp, Inc. sits in the small-cap segment of the market. Relative to its peer group, MSBI's quantitative score of 86/100 is above the peer average of 65/100.
ROE 6%Key Financial Metrics
Return on equity for Midland States Bancorp, Inc. stands at 6.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.5%, showing how much profit it generates from its asset base. MSBI trades at a trailing price-to-earnings ratio of 8.43, below the Financial Services sector average of ~18x. Its free cash flow yield is 18.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.26 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 5.3%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 8/9Financial Health
Midland States Bancorp, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.58 places it in the distress zone, a signal of elevated financial risk.
Company Profile
Midland States Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Effingham, US. The company is led by CEO Jeffrey G. Ludwig. MSBI has traded publicly since 2016.
MSBI Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Midland States Bancorp seems to be navigating the current economic climate effectively, maintaining a stable position within the market. This resilience is a positive sign for long-term investors.
- Recent insider activity suggests confidence in the company's future prospects, as some insiders have increased their positions. This can often signal a belief in undervaluation or upcoming positive catalysts.
- The community sentiment surrounding MSBI is generally positive, with many investors expressing optimism about the bank's conservative approach and regional focus.
- MSBI's strong community ties and focus on relationship banking could provide a competitive advantage, fostering customer loyalty and stability during market fluctuations.
Bear Case
- Concerns exist within the community regarding the potential impact of rising interest rates on MSBI's loan portfolio and overall profitability. This could lead to increased defaults and reduced earnings.
- While insider buying is present, some investors are wary of the overall economic outlook and its potential negative effects on regional banks like MSBI. A broader market downturn could disproportionately impact smaller institutions.
- Despite positive sentiment, some community members express concerns about MSBI's limited geographic diversification, making it vulnerable to regional economic downturns.
- Market perception of regional banks is currently cautious, with investors closely monitoring credit quality and deposit flows. MSBI may face headwinds due to this broader industry skepticism.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
MSBI Latest News
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MSBI Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MSBI.
Price Targets
Consensus target: $24.75
MSBI MoonshotScore
What does this score mean?
The MoonshotScore rates MSBI's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Jeffrey G. Ludwig
CEO
Jeffrey G. Ludwig serves as the CEO of Midland States Bancorp, Inc. His career spans several decades in the financial services industry, with a focus on community banking and wealth management. Prior to joining Midland States Bancorp, Ludwig held leadership positions at various regional banks, where he oversaw strategic planning, risk management, and business development. He holds a degree in Finance from a leading university and has completed executive education programs at prestigious business schools.
Track Record: Under Jeffrey G. Ludwig's leadership, Midland States Bancorp has focused on expanding its wealth management services and enhancing its digital banking capabilities. He has overseen several strategic acquisitions that have expanded the company's geographic footprint and service offerings. Ludwig has also emphasized the importance of maintaining strong credit quality and conservative lending practices, contributing to the company's financial stability.
What Investors Ask About Midland States Bancorp, Inc. (MSBI) — Financial Services
What does Midland States Bancorp, Inc. do?
Midland States Bancorp, Inc. operates as the financial holding company for Midland States Bank, providing a comprehensive range of banking and wealth management services. The company serves individuals, businesses, municipalities, and other entities through its Banking, Wealth Management, and Other segments. Midland States Bank offers deposit accounts, loans, and other banking products, while the Wealth Management segment provides financial planning, investment management, and trust services. MSBI focuses on building relationships and providing tailored financial solutions to its diverse customer base.
What do analysts say about MSBI stock?
Analysts' consensus on MSBI stock is mixed, with some highlighting the company's attractive dividend yield and diversified revenue streams. Key valuation metrics, such as the P/E ratio, are being closely monitored in comparison to its peers. Growth considerations include the expansion of wealth management services and the impact of interest rate fluctuations on net interest margin. Investors should conduct their own due diligence and consider their individual investment objectives before making any decisions.
What are the main risks for MSBI?
The main risks for MSBI include potential economic downturns that could negatively impact loan quality and increase credit losses. Increasing competition from larger banks and fintech companies could erode market share. Interest rate volatility could negatively impact net interest margin. Regulatory changes and compliance costs could increase operating expenses. Investors should carefully consider these risks before investing in MSBI stock.
How sensitive is MSBI to interest rate changes?
Midland States Bancorp's profitability is sensitive to interest rate changes, as net interest income is a primary revenue driver. Rising interest rates can increase the yield on loans and investments, potentially expanding the net interest margin. However, higher rates can also increase borrowing costs and reduce loan demand. Conversely, falling interest rates can compress the net interest margin and reduce profitability. MSBI actively manages its interest rate risk through various hedging strategies and asset-liability management techniques.
How is Midland States Bancorp, Inc. adapting to fintech disruption?
Midland States Bancorp is adapting to fintech disruption by investing in digital banking technologies and enhancing its online and mobile banking platforms. The company is focused on providing a seamless and user-friendly digital experience for its customers. MSBI is also exploring partnerships with fintech companies to offer innovative products and services. By embracing digital transformation, MSBI aims to improve customer satisfaction, reduce operating costs, and remain competitive in the evolving financial landscape.
What are the key factors to evaluate for MSBI?
Midland States Bancorp, Inc. (MSBI) holds an AI score of 86/100 (high). P/E: 8.4x vs the S&P 500's ~20-25x. Analysts target $24.75 (-19%). Not financial advice.
How frequently does MSBI data refresh on this page?
MSBI prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven MSBI's recent stock price performance?
Midland States Bancorp, Inc. (MSBI) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified revenue streams from banking and wealth management. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data and may be subject to change.
- Financial metrics are as of the latest reporting period.