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EFFINGHAM, Ill. - Midland States Bancorp, Inc. (NASDAQ:MSBI), which has seen its stock decline nearly 35% year-to-date according to InvestingPro data, disclosed on Monday that it received a deficiency notification from Nasdaq due to a delay in filing its annual report. The bank holding company, which oversees Midland States Bank, did not meet the Nasdaq Listing Rule 5250(c)(1) requirement for timely submission of its Form 10-K for the year ending December 31, 2024.
The notice, dated April 3, 2025, does not immediately affect the trading of Midland States Bancorp's common stock or depositary shares on the Nasdaq Global Select Market. Despite recent challenges, the company maintains a notable 7.9% dividend yield and has raised its dividend for nine consecutive years, according to InvestingPro analysis. The company has been given 60 days to present a plan to regain compliance and may be granted up to 180 days, until September 29, 2025, to fulfill the filing requirements.
Midland States Bancorp has cited the need for additional time to complete the evaluation of a third-party lending and servicing arrangement's accounting and financial reporting. This includes obtaining necessary documentation and analyzing the impact on internal financial controls.
The company plans to file the overdue Form 10-K as soon as possible and is working to address the issues that led to the filing delay. The bank has reassured that it intends to comply with Nasdaq's listing rules promptly.
This announcement follows the company's previous filing with the SEC on March 17, 2025, acknowledging the late submission of its annual report. Midland States Bancorp, with total assets of approximately $7.53 billion as of December 31, 2024, offers a range of banking and financial services through its subsidiary, Midland States Bank.
Investors are advised that this information is based on a press release statement and should monitor the company's filings and announcements for further updates on its compliance status with Nasdaq listing requirements.
In other recent news, Piper Sandler has adjusted its price target for Midland States Bancorp to $23.00, down from the previous target of $28.00, while maintaining a Neutral rating. This adjustment follows several challenging decisions made by the company in the fourth quarter, which led to increased net charge-offs and loan loss provisions. Despite these challenges, Piper Sandler's analyst Nathan Race expressed optimism about the potential for improved long-term franchise value due to these measures. The firm remains cautious about the bank's profitability compared to its peers and is waiting for more stable credit conditions before altering its stance. The analyst also revised the earnings per share estimates for 2025 and 2026, lowering them to $2.58 and $2.85, respectively, due to a smaller loan portfolio and higher operating expenses. This new price target reflects a valuation based on 9.0 times the estimated 2025 EPS, which is lower than peers trading at 11.2 times. Piper Sandler notes that the shares' price to tangible book value of 94% could be appealing to long-term investors, particularly as improved credit metrics are anticipated.
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