Midland States Bancorp, Inc. has reported a net loss available to common shareholders of $54.8 million, or $2.52 per diluted share, for the fourth quarter of 2024, compared to a net income of $16.2 million, or $0.74 per diluted share, for the third quarter of 2024. This also compares to a net income available to common shareholders of $18.5 million, or $0.84 per diluted share, for the fourth quarter of 2023.
During the fourth quarter of 2024, the company took several actions to address its credit quality issues and exit its non-core consumer loan portfolios. The company sold a $87.1 million LendingPoint consumer loan portfolio, recognizing net charge-offs and provision for credit losses of $17.3 million. Additionally, the company committed to a plan to sell a $371.7 million GreenSky consumer loan portfolio, recognizing net charge-offs and provision for credit losses of $33.4 million.
The net interest margin increased to 3.19% in the fourth quarter of 2024, compared to 3.10% in the prior quarter. Wealth management revenue also saw an increase to $7.7 million, up from $7.1 million in the prior quarter.
Total assets were reported at $7.53 billion at December 31, 2024, compared to $7.75 billion at September 30, 2024, and $7.87 billion at December 31, 2023. Portfolio loans were $5.17 billion at December 31, 2024, compared to $5.75 billion at September 30, 2024, and $6.13 billion at December 31, 2023.
Outstanding loans declined by $581.2 million, or 10.1%, from September 30, 2024, primarily as a result of the company’s decision to sell the GreenSky and LendingPoint consumer loan portfolios. Consumer loans decreased $506.0 million to $157.2 million at December 31, 2024, primarily due to the loan portfolio sale, transfer to held for sale, and loan paydowns.
The allowance for credit losses on loans totaled $75.4 million at December 31, 2024, compared to $85.8 million at September 30, 2024, and $68.5 million at December 31, 2023. The allowance as a percentage of total loans was 1.46% at December 31, 2024, compared to 1.49% at September 30, 2024, and 1.12% at December 31, 2023.
Net interest income and net interest margin, on a tax-equivalent basis, increased to $56.3 million and 3.19%, respectively, compared to $55.2 million and 3.10%, respectively, in the third quarter of 2024. The yield on interest-earning assets decreased 11 basis points to 5.80% compared to the third quarter of 2024.
These actions taken by the company reflect its commitment to addressing credit quality issues and its strategic focus on core community banking business. The market has reacted to these announcements by moving the company's shares -17.8% to a price of $20.55. For the full picture, make sure to review Midland States Bancorp's 8-K report.
