Midland States Bancorp receives Nasdaq compliance warning

Published 23/05/2025, 21:54
Midland States Bancorp receives Nasdaq compliance warning

EFFINGHAM, Ill. - Midland States Bancorp, Inc. (NASDAQ: MSBI), a community-based financial holding company currently trading at $16.97 with a market capitalization of $364 million, has received a deficiency notification from the Nasdaq Stock Market due to a delay in filing its annual and quarterly financial reports. According to InvestingPro data, the stock has declined over 36% in the past six months, reflecting investor concerns. The notice, dated May 19, 2025, indicates non-compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic reports with the Securities and Exchange Commission (SEC).

The company failed to file its Annual Report on Form 10-K for the year ended December 31, 2024, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Despite this, the notice does not immediately affect the listing or trading of Midland States Bancorp’s common stock or depositary shares on the Nasdaq Global Select Market.

Midland States Bancorp has until June 2, 2025, to submit a plan to regain compliance with Nasdaq’s listing rules. Nasdaq may grant the company up to 180 days from the Form 10-K due date, or until September 29, 2025, to meet the requirements.

The company is currently evaluating its accounting and financial reporting for third-party lending and servicing arrangements and assessing potential impairment to its goodwill. This involves collecting third-party documentation and obtaining valuation information.

Midland States Bancorp intends to regain compliance with Nasdaq’s listing rules as promptly as possible and is working to complete its audit for the year ended December 31, 2024. However, the timing and results of the audit, as well as the filing of the overdue financial reports, remain uncertain.

As of March 31, 2025, Midland States Bancorp reported total assets of approximately $7.46 billion and assets under administration within its Wealth Management Group of about $4.10 billion. The company offers a variety of banking products and services, including business equipment financing, merchant credit card services, trust and investment management, insurance, and financial planning. Despite recent challenges, InvestingPro analysis reveals the company maintains a notable 7.35% dividend yield and has maintained dividend payments for 10 consecutive years. Analysts maintain a moderate outlook, with price targets ranging from $18 to $20.50. For deeper insights into MSBI’s financial health and additional ProTips, consider exploring InvestingPro’s comprehensive analysis tools.

This report is based on a press release statement from Midland States Bancorp, Inc.

In other recent news, Midland States Bancorp reported preliminary financial results for the first quarter of 2025, showing a net income available to common shareholders of $12.6 million, or $0.57 per diluted share, and pre-tax, pre-provision earnings of $27.0 million, or $1.12 per diluted share. The company also highlighted a strong net interest margin of 3.48% and significant loan growth in its Community Bank segment. Additionally, Midland States Bancorp disclosed the sale of approximately $330 million of GreenSky loans in April 2025 and implemented tighter underwriting standards in its equipment finance portfolio.

The company is addressing a Nasdaq compliance issue after receiving a deficiency notification for failing to file its annual report on time, with plans to submit the overdue Form 10-K promptly. In governance news, Sherina M. Edwards resigned from the Board of Directors, with no disagreements cited regarding the company’s operations. Investors are advised to monitor Midland States Bancorp’s filings and announcements for updates on compliance and governance changes.

Despite these challenges, the company remains optimistic about stronger profitability and growing capital ratios for the remainder of 2025. The company has assured that it does not anticipate a material impact on tangible equity or regulatory capital levels for the first quarter. Midland States Bancorp continues to exceed all regulatory capital requirements under Basel III, maintaining its status as a "well-capitalized" financial institution.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.