By Connor Hart
Shares of Midland States Bancorp dropped to a 52-week low after the company swung to a loss in the fourth quarter, during which time it took actions to address credit-quality issues and exit its non-core consumer loan portfolios.
The stock was down 18% to $20.42, after falling to $19.75 earlier on Friday. Shares, which are on pace for their largest percent decrease since March 2020, are down 25% in the past 52 weeks.
The Effingham, Ill., holding company of Midland States Bank reported a loss of $54.8 million, compared with a profit of $16.2 million a year earlier after the bell on Thursday.
On a per-share basis, the company posted a loss of $2.52. Analysts polled by FactSet had expected a profit of 67 cents.
Total loans fell 10% sequentially to $5.17 billion, dragged down by sales of its Greensky and LendingPoint consumer loan portfolios. Total deposits slid 1% to $6.2 billion.
Chief Executive Jeffrey Ludwig said the bank's decision to exit its non-core consumer portfolios and charge-off deteriorating credits will ultimately better position its core-community banking business.
"Our team also reviewed our credit risk appetite profile and tightened standards going forward," he said, adding that the bank's number one priority is to improve its credit quality.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 24, 2025 13:47 ET (18:47 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.