Midland States Bancorp Inc. Depositary Shares Each Representing a 1/40th Interest in a Share of 7.750% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock Series A (MSBIP)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at this preferred as a lender to Midland States, not as an owner of its common equity. The underlying business is a regional bank with a wealth management arm, and its record is uneven. In fiscal 2025, the year ended 2025-12-31, Midland States reported a net loss of $124.3 million, or $6.12 per diluted share. That followed net income of $38.0 million in fiscal 2024, the year ended 2024-12-31, and $61.2 million in fiscal 2023, the year ended 2023-12-31. Recent quarters have improved: in fiscal Q2 2026, the quarter ended 2026-06-30, net income was $19.9 million, or $0.82 per diluted share, and in fiscal Q1 2026, the quarter ended 2026-03-31, it was $18.5 million, or $0.74. Still, two good quarters do not erase a full year of losses. FairStock's calculations show ROE of 7.52%, price-to-book of 1.14 at the 2026-10-13 close, a Piotroski F-Score of 7/9, and a FairStock Score of 33/100. The Lynch category is TURNAROUND because of the latest-year loss. The preferred yields 7.70%; it is 7.750% fixed-rate reset, non-cumulative, and perpetual. That coupon is attractive only if capital and credit quality hold up. I cannot fully judge that because CET1, net interest margin, charge-offs, reserves, and preferred dividend coverage are not in the data. Regional banks rarely have wide moats, and at $25.18, inside a 52-week range of $23.22-$27.07, the price is near par. I would want a bigger margin of safety before calling it a bargain.

In plain English: Midland States is a regional bank holding company that also provides wealth management. Its business has been uneven: it lost money in fiscal 2025, but the last two reported quarters were profitable. The preferred shares pay a high 7.7% dividend and trade near $25, so the price looks roughly fair rather than clearly cheap or expensive, with the main question being whether the bank can keep paying.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer