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Analyst Reports

MSBIP MSBIP

2026-08-20

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Executive summary

Midland States Bancorp Series A Preferred (MSBIP) trades at $25.40, near its $25 par value, reflecting a total return of +2.4% over the two-year period and +4.8% over the last year. The price has been remarkably stable, with a range of $22.13–$25.65, supported by a recovery in net income after a severe loss in early 2025. While no revenue data were provided, the balance sheet shows a reduction in assets and equity during 2025, followed by stabilization and a significant cash build-up in Q2 2026.

Verdict

En Precio

Stock evolution (2y)

MSBIP opened the period at $24.81 and closed at $25.40, with a minimum of $22.13 and a maximum of $25.65. The security exhibited low volatility, especially during 2026, oscillating within a narrow band of roughly $24.90–$25.44 in the second half. The 1-year return of +4.8% aligns with a preferred stock that is trading close to par and delivering mostly income rather than capital appreciation.

Future catalysts

  • Continued recovery in net income, as evidenced by positive EPS beats in Q1 and Q2 2026.
  • Potential share buybacks reducing common capital while preferred dividends remain covered.
  • A high cash position ($298.7M) providing liquidity buffer for preferred dividend payments.

Key risks

  • Another large loss similar to Q1 2025 could pressure the issuer's ability to maintain dividends.
  • Declining equity and assets indicate a smaller balance sheet base, which may limit future profitability.
  • No explicit debt data available prevents full assessment of leverage or refinancing risk.
  • Interest rate changes may affect the attractiveness of a 7.75% fixed-rate preferred.

Key financial drivers

The primary driver was a steep net loss of -$124.3M in FY2025, almost entirely from a Q1 2025 loss of -$141.0M. This eroded equity from $710.8M to $565.5M. However, subsequent quarters turned positive (Q2 2025: $12.0M, Q3 2025: $7.6M, Q1 2026: $18.5M, Q2 2026: $19.9M), leading to an annualized ROE of approximately 14% in Q2 2026. Cash increased to $298.7M in Q2 2026, and shares outstanding fell slightly, suggesting buybacks. These factors likely reassured the market and kept the preferred price stable.

Informational only — not investment advice.

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