Midland States Bancorp Target Raised to $24 as CET1 Ratio Nears 10%
DA Davidson raised Midland States Bancorp’s price target by 4.3% to $24 while maintaining a Neutral rating after Q4 results that missed estimates. The bank improved its common equity tier 1 ratio to 9.89% versus a 10% goal, repurchased $9.6 million of stock and achieved 6.5% annualized loan growth.
1. Analyst Action
On January 26, DA Davidson lifted Midland States Bancorp’s price target from $23 to $24 and kept a Neutral rating following Q4 results that fell short of analyst expectations. The modest increase reflects confidence in the bank’s refocused strategy despite underwhelming earnings.
2. Credit and Capital
During 2025, management strengthened credit discipline by upgrading its credit team, tightening underwriting standards and reinforcing a credit-focused culture. By year-end, the bank’s common equity tier 1 ratio rose to 9.89%, edging closer to its 10% target without issuing new capital.
3. Buybacks and Balance Sheet
With shares trading near tangible book value in Q4, Midland repurchased $9.6 million of common stock, signaling confidence in its valuation and balance sheet. The bank also reduced non-performing assets, though they remain above the 0.75% target level.
4. Growth Trends and Outlook
Net interest margin held steady in the quarter and the Community Bank segment delivered 6.5% annualized loan growth. Wealth Management posted a record quarter, and management plans continued investment to sustain momentum into 2026.