Stocks/MSBI

MSBI

Midland States Bancorp, Inc.
Financial Services·Banks - Regional
$27.80
$576M market cap
Claude Rating
6/10SLIGHT BUY
Revenue
$449.1M
Free Cash Flow
$116.0M
Rev Growth
-6.0%
FCF Margin
25.8%
P/FCF
5.0x
EV/FCF
-3.9x
Fwd EV/EBITDA
-5.7x
Fair Value
$24.50
Upside
-11.9%

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, Wealth Management, and Other segments. The company accepts various deposits, such as checking, savings, money market, and sweep accounts, as well as certificates of deposits. It also offers term loans to purchase capital equipment; lines of credit for working ca

2-Year Price History

$27.63+38.1%
$16$18$20$22$24$26volJun 24Oct 24Jan 25May 25Sep 25Jan 26May 26

Quarterly Financials & Projections

Quarterly Waterfall ($ M)
PeriodRevEBITDAOpInNIOCFFCFCapExCashDebtSharesROICIntCovEV/EBITDA
Est2027-Q4105.025.7--17.3--17.3-1.31,564----------
Est2027-Q3104.025.0--16.6--16.6-1.31,547----------
Est2027-Q2102.023.5--15.3--14.8-1.21,530----------
Est2027-Q1100.022.5--14.5--13.0-1.21,515----------
Est2026-Q4101.022.2--14.1--15.2-1.31,502----------
Est2026-Q3100.021.5--13.5--14.0-1.31,487----------
Est2026-Q298.019.6--11.8--9.8-1.41,473----------
Est2026-Q196.017.3--10.1--11.5-1.41,463----------
Act2026-Q1108.124.124.118.517.016.4-0.61,452418.521.315.3%0.8x--
Act2025-Q4107.3-3.3-3.3-2.9-7.1-8.9-1.91,653432.121.9-2.3%-0.1x--
Act2025-Q3115.514.211.37.680.078.6-1.41,313546.821.94.7%0.4x--
Act2025-Q2118.117.914.912.028.129.9-1.9180.3431.421.89.3%0.5x--
Act2025-Q1115.0-134.7-137.8-141.024.722.9-1.91,208616.022.1-78.9%-3.3x--
Act2024-Q4182.50.9-2.3-1.198.395.6-2.71,066423.321.7-0.9%0.0x--
Act2024-Q3137.628.225.020.433.231.1-2.11,333521.621.79.5%0.6x--
Act2024-Q2134.635.231.825.718.116.5-1.61,219698.921.710.2%0.7x0.2x
Act2024-Q1138.432.529.122.726.926.4-0.51,207563.121.810.3%0.7x--
Act2023-Q4117.523.920.514.187.485.7-1.71,050604.421.86.0%0.5x--
Act2023-Q3114.326.322.911.46.54.1-2.4966.2649.522.06.3%0.6x0.9x
Act2023-Q2117.831.828.821.644.742.9-1.91,042690.222.28.5%0.8x0.9x
Act2023-Q1110.531.728.721.816.013.2-2.8948.4613.022.59.3%0.9x1.8x
Act2022-Q4119.547.043.932.930.729.3-1.4921.6644.422.513.7%1.8x1.8x
Act2022-Q394.333.129.423.551.650.4-1.2991.4557.922.411.0%2.1x--
Act2022-Q283.632.929.221.9115.4114.9-0.51,025492.022.412.7%4.2x--
Act2022-Q177.831.327.420.839.138.7-0.41,175519.822.411.4%5.3x--
Historical Valuation

Multiples vs the company's own history — cheap or rich relative to itself? Historical fiscal years, then TTM, then forward projections (E). Forward rows hold today's price against projected earnings, so the multiple compresses if the company grows into it.

YearPriceRev GrEBITDA %EBITDAEV/EBITDAEV/FCFP/EP/S
202222.0338.5%1441.8×1.1×5.4×1.4×
202324.04+22.6%24.7%1146.5×1.0×
202422.41+28.9%16.3%976.9×0.8×
202520.88-23.1%-23.2%-106n/m0.8×
TTM27.80-21.2%11.8%530.0×0.0×
2026E27.80-12.0%0.2%10.0×0.0×
2027E27.80+4.0%0.2%10.0×0.0×

EBITDA in reporting-currency $M. Historical multiples use year-end market cap (split-adjusted price history); TTM & forward years use today's.

AI Analysis

LLM Evaluations

Claude6/10SLIGHT BUYFV: $24.50

MSBI is a deep value turnaround play trading at ~0.8x tangible book value ($26/share) after a brutal FY2025 marked by a goodwill impairment and equipment finance portfolio exit. The core community bank is healthy with 6.5% annualized loan growth, record wealth management revenue, and an activist PE investor (Patriot Financial Partners) now on the board pushing for operational improvement. The $25M buyback at these levels is highly accretive. However, the 53.8% CRE concentration, elevated charge-offs, 126.7% dividend payout ratio (unsustainable on GAAP basis), and unfavorable near-term liability repricing create real risks. This is a show-me story where normalized earnings power of ~$2.00-2.20/share supports a price in the mid-$20s, but execution risk and credit quality uncertainty cap the upside multiple.

Catalyst Patriot Financial Partners board involvement driving operational efficiency, NIM expansion as liabilities reprice lower through 2026, buyback execution at below-book prices, and normalization of credit costs as equipment finance losses roll off.
Risk CRE exposure (53.8% of loans) in a weakening commercial real estate environment could trigger another wave of credit losses and provision builds, potentially forcing a dividend cut and further capital erosion.
Trend
IMPROVING
Mgmt
5/10
Quarter
4/10
Exp. Move
-3.0%

Valuation & Metrics

Market Stats

Price$27.80
Market Cap$576M
Enterprise Value$-457M
P/S Ratio1.3x
P/FCF5.0x
EV/FCF-3.9x
FCF Margin (TTM)25.8%
FCF Yield20.1%
Dividend Yield (TTM)5.7%
Annual Dilution-3.4%
CurrencyUSD

TTM Financial Snapshot

Revenue$449.1M
Net Income$35.2M
Free Cash Flow$116.0M

Revenue Growth (YoY)-6.0%
EBITDA Margin11.8%
Net Margin7.8%
FCF Margin25.8%
CapEx % of Revenue1.3%
SBC % of Revenue0.5%
ROIC6.8%
WC Change % Rev79.2%
Interest Coverage0.4x

DCF Fair Value Estimate

$71.53
+157.3% upside
Fair Enterprise Value$490M
− Net Debt$-1.0B
= Fair Equity$1.5B
Revenue Growth4.1% → 2.5%
FCF Margin25.8% → 14.0%
Discount Rate15.0%
Terminal EV/FCF8.0x

Forward Outlook & Risk

Short Interest

Short % of Float3.4%
Short Shares0.7M
Days to Cover3.5
Change (vs Prior)+9.3%
Short % Float History
3.40%+1.30pp
2.0%2.5%3.0%3.5%04-3007-1509-1511-1401-1504-30

Options

Call IV (ATM)--
Put IV (ATM)24%
ATM Spread--
Call $OI (near money)$4K
Put $OI (near money)$2K
ATM ExpiryJuly 17, 2026 (56D)
ATM Strike$30.0
Major Expirations3
Near-money chain · July 17, 2026
StrikeCall Bid/AskCall OIPut Bid/AskPut OI
$10.00$15.50/$20.000--/$0.950
$12.50$13.00/$17.500--/$2.750
$15.00$10.50/$15.000--/$0.950
$17.50$8.70/$12.700--/$1.152
$20.00$6.70/$10.500--/$2.751
$22.50$3.10/$7.900--/$2.750
$25.00$3.00/$3.7046$0.15/$1.750
$30.00--/$1.750$1.00/$4.003
Snapshot: 2026-05-22

Forward Projections & Estimates

NTM Revenue Growth-12.0%
Forward FCF Margin12.8%
Forward EBITDA Margin20.4%
Forward P/FCF11.4x
Forward EV/FCF-9.1x
Forward Int. Coverage0.7x
Model Risk Score7/10
Bankruptcy Odds4%
Est. Borrow Rate7.5%
Terminal EV/FCF8.0x
LT Growth2.5%
LT FCF Margin14.0%

Employees

Headcount907
Revenue / Employee$495,123
Gross Profit / Employee$295,587
2022: 935 → 2023: 914 → 2024: 896 → 2025: 861 (-3% CAGR)

Institutional Ownership

Headline & net flow

BALANCED

In Q1 2026 so far (quarter still filing), institutions are roughly balanced — bought 6.0% of float, sold 5.1%.

Net flow · Q1 2026still filing
+0.9% of float (net)
Bought 6.0% · Sold 5.1%
136 filers reported (last quarter: 138)

Ownership composition

Active
29.1%(+8.8% YoY)
121 filers
hedge / family / endowment
Retail funds
Fidelity, Schwab, 401(k)
Passive
25.3%(+4.8% YoY)
9 filers
Vanguard, iShares, SPDR
Market makers
0.4%(+0.2% YoY)
7 filers
Citadel, Susquehanna
Insiders
6.5%
Form 4 — latest per insider
0%25%50%75%100%2022-062023-032023-122024-092025-062026-03
ActiveRetail fundsPassiveMarket makersRetail direct

Top holders

Fund$ valueCost basisΔ QoQΔ YoYα lifeFund AUM
BlackRock, Inc.Passive$63.7M$20.23−$1.9M−$2.4M-0.2%$5.69T
VANGUARD CAPITAL MANAGEMENT LLCPassive$20.1M$22.31+$20.1M+$20.1M$4.04T
DIMENSIONAL FUND ADVISORS LPPassive$19.9M$20.62−$3.6M−$8.4M-0.4%$480.92B
STATE STREET CORPPassive$17.1M$21.24+$1.9M+$3.0M-0.2%$2.89T
Busey Trust CO$16.9M$23.13+$0+$0+0.0%$3.68B
AMERICAN CENTURY COMPANIES INC$13.1M$19.92−$278K+$1.6M+0.7%$193.48B
HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC$12.1M$20.09+$3.8M+$5.3M-0.1%$31.89B
GEODE CAPITAL MANAGEMENT, LLCPassive$11.9M$18.86+$346K−$934K+2.3%$1.61T
Patriot Financial Partners GP II, L.P.$9.8M$22.31+$9.8M+$9.8M+6.1%$388M
AQR CAPITAL MANAGEMENT LLC$8.8M$17.90−$257K+$99K-0.2%$218.19B
Rhino Investment Partners, Inc$7.1M$21.14+$1.3M+$7.1M-0.4%$359M
LSV ASSET MANAGEMENT$6.5M$23.13−$129K−$2.2M+0.0%$46.40B
GOLDMAN SACHS GROUP INC$5.8M$21.47+$1.9M+$2.8M-0.2%$760.93B
ACADIAN ASSET MANAGEMENT LLC$5.7M$20.27+$2.2M+$2.8M-0.5%$70.48B
JACOBS LEVY EQUITY MANAGEMENT, INC$5.4M$20.19+$93K+$3.0M+0.4%$23.79B
VANGUARD PORTFOLIO MANAGEMENT LLCPassive$5.1M$22.31+$5.1M+$5.1M$1.91T
ARROWSTREET CAPITAL, LIMITED PARTNERSHIP$4.4M$20.28+$371K+$2.2M+0.1%$184.72B
TWO SIGMA INVESTMENTS, LP$3.9M$19.14+$600K+$2.6M-0.9%$117.03B
CHARLES SCHWAB INVESTMENT MANAGEMENT INC$3.8M$20.83−$130K+$13K+0.7%$645.81B
NORTHERN TRUST CORPPassive$3.4M$21.28+$113K−$822K-0.2%$755.34B
Cost basis is a volume-weighted estimate from accumulation periods within our 13F history; holders who built their position before our window started will show a stale basis. % above the cost basis is the unrealized gain at the current price.

Trading behavior

Smart-money alpha (lifetime, %/qtr)BULLISH
Holders
+0.24%
avg per quarter
Holders (ex-self)
+0.25%
excl. this stock
Buyers (this Q)
+1.62%
74 buyers · $0.06B in
Sellers (this Q)
-0.26%
40 sellers · $0.01B out
alpha coverage: 91% of $ has a lifetime-alpha record
Holder behavior on this stocksource: stock
On big dips (−10%+)
-4.4%
how holders react when this stock falls
On quiet Qs
-2.6%
−10% to +10% baseline
On rallies (+10%+)
-12.3%
how they react when this stock rises
Holders' portfolio flow this Q
+3.9%
inflows — adds are organic
Sellers' portfolio flow this Q
+1.5%
Sellers grew AUM elsewhere — opinionated cut of this stock.
▸ Compare to holder-profile behavior (across all their stocks)
Holder dip (any stock)
-3.1%
Holder mid (any stock)
-2.5%
Holder rally (any stock)
-5.1%

Top Holders Over Time

5-year share-count history (top 10 holders by peak, incl. exited) + price

0983K2.0M2.9M3.9M$16$18$20$22$242021-062022-062023-062024-062025-062026-03
hover the chart for per-quarter detailprice (right axis)
FJ Capital Management LLCBusey Trust CO759KMIDLAND WEALTH ADVISORS, LLC20KLSV ASSET MANAGEMENT290KAMERICAN CENTURY COMPANIES INC586KHOTCHKIS & WILEY CAPITAL MANAGEMENT LLC540KAQR CAPITAL MANAGEMENT LLC396KBoston PartnersWELLINGTON MANAGEMENT GROUP LLPPatriot Financial Partners GP II, L.P.439K

Analyst Coverage

Analyst Coverage
Price Targets
Last Quarter (2 analysts)$27.00-290.0%
Last Year (7 analysts)$23.07-1700.0%
Current Price$27.80
Analyst Ratings
4
Hold: 4Consensus: Hold
Consensus Estimates
QuarterRevenueEBITDANet IncEPSEPS Range# Analysts
2025 Q379M12M14M$0.64$0.59 – $0.694
2025 Q474M12M-0M$-0.01$-0.01 – $-0.013
2026 Q176M12M13M$0.61$0.58 – $0.634
2026 Q281M13M17M$0.78$0.72 – $0.824
2026 Q381M13M17M$0.80$0.79 – $0.813
2026 Q482M13M17M$0.80$0.79 – $0.811
2027 Q180M13M16M$0.74$0.74 – $0.751
2027 Q281M13M16M$0.77$0.76 – $0.771
2027 Q383M13M17M$0.81$0.80 – $0.821
2027 Q483M13M17M$0.82$0.81 – $0.831

Corporate

Executive Compensation (2023-2025)

Direct Pay$11.1M
Incentive & Other$1.8M
Total Compensation$12.9M
% of Revenue0.9%

Insider Trading (last 12mo)

Open-market only (Form 4 P-Purchase + S-Sale). Excludes grants, option exercises, tax withholding, gifts.
Officers & directors
Buys ($, 12mo)
$534K
5 txns · 5 insiders · 25,498 sh
Sells ($, 12mo)
$64K
1 txn · 1 insider · 2,808 sh
Recent transactions
DateSideInsiderTitleSharesPriceDollarsOwned $
2026-05-05BUYFranklin Travisdirector9,400$26.49$249K$249K
2026-01-28SELLMooney Kyle Owenofficer: SVP - Chief Operating Officer2,808$22.67$64K$322K
2025-12-03BUYBingham Richard Deandirector5,000$17.56$88K$486K
2025-12-03BUYCasey Daniel Edwardofficer: CROF5,000$17.89$89K$505K
2025-12-03BUYJameson Jeremy Andrewofficer: EVP - Chief Credit Officer5,598$17.69$99K$1.12M
2025-12-03BUYSmith Jeffrey C.director500$17.69$9K$603K

Order Flow (FINRA, ~3w lag)

9.9%retail-0.6pp
13.3%dark-2.6pp
week of 2026-04-13
5%10%15%20%25%30%24-1125-0225-0525-0825-1126-0226-04retail (non-ATS)dark (ATS)
Off-exchange volume from FINRA. Retail = non-ATS (wholesaler PFOF + broker internalization). Dark = ATS (dark-pool crossing networks, institutional). Lit-exchange = remainder.

Revenue Breakdown

Revenue Segments

By Product (2025-Q4)
Asset Management$13.6M+102%
Interchange Revenues$6.6M+87%
Nonsufficient Fund Fees$4.2M+96%
Other Deposit Account$2.7M+96%
Investment Advisory, Management and Administrative Service$1.1M+106%
Other Wealth Management Revenue$0.9M+138%
Service, Other$0.6M+89%
Credit Card, Merchant Discount$0.6M+79%

Filing Risk Analysis

Filing Risk Scores

Midland States Bancorp, Inc.: Aggressive Provisioning Masks Credit Deterioration

Overall Risk
6/10
Fraud
3/10
Dilution
2/10
Insolvency
5/10
Earnings Overstated
7/10
Hidden Liabilities
4/10
Legal
3/10
Audit Warnings
4/10
Hidden Upside
2/10
Contextually Acceptable
6/10

Counter-Thesis

Counter-Thesis & Recent News

📰 Recent News

In February 2026, private equity firm Patriot Financial Partners took a significant position and a board seat, signaling a 'smart money' turnaround bet. This followed an insider purchase by EVP Jeremy Jameson ($99k) in December 2025 and the authorization of a $25 million stock buyback program. Additionally, the bank completed the sale of its equipment finance portfolio in Q4 2025 to streamline operations and focus on core banking (Sources: Seeking Alpha, MarketBeat, Quiver Quantitative).

🐻 Bear Case

The bear thesis focuses on a massive 126.7% dividend payout ratio and a reported FY 2025 net loss of $124.3 million, leading to 'dividend trap' narratives. Short interest jumped 22% in February 2026 as bears bet on the bank's high 53.8% commercial real estate (CRE) exposure and a high net charge-off rate of 3.69% in the final quarter of 2025 (Sources: Simply Wall St, MarketBeat).

🚩 Red Flags

Asset quality is the primary concern, with 1 in 20 gross loans currently classified as 'special mention' or substandard. While the bank reported an adjusted EPS beat of $0.53, the GAAP loss was exacerbated by a $21.4 million loss on the disposal of the equipment finance unit and a lingering $154 million goodwill impairment from earlier in 2025 (Sources: Seeking Alpha, Sahm Capital).

⚔️ Competitive Threats

MSBI faces a challenging repricing gap: 69% of its liabilities are set to reprice in early 2026 compared to only 31% of its assets, which could compress Net Interest Margins (NIM) if interest rates remain elevated. Furthermore, total deposits fell 6% recently as competition for liquidity among regional peers intensifies (Sources: Public.com, Seeking Alpha).

💬 Customer Sentiment

Despite corporate-level losses, customer-facing segments show resilience. The Wealth Management division reached record revenue of $8.3 million in Q4 2025 with an 8% year-over-year increase in Assets Under Management (AUM). Additionally, the core Community Bank segment reported 6.5% annualized loan growth, suggesting strong local brand loyalty and stable demand in its primary markets (Sources: Quiver Quantitative, Seeking Alpha).