10 Worst Performing Bank Stocks in 2024

7. Midland States Bancorp, Inc. (NASDAQ:MSBI)

Price: $19.60

Number of Hedge Fund Holders: 11

1-Year Price Performance: -22.90%

Midland States Bancorp, Inc. (NASDAQ:MSBI) is a financial holding company that operates through mainly two segments Banking and Wealth management. The Banking segment of the company provides financial services including loans for commercial purposes, business financing, deposit accounts, merchant services, and other related services. Moreover, Wealth management is managed by Midland Wealth Management, which offers Trustee and custodial services, Investment management, Financial planning, and Retirement plan consultation. The bank is headquartered in Effingham, IL.

On January 28, DA Davidson lowered their price target on the stock from $27 to $21, while keeping their Neutral rating on the stock. The firm noted that the fiscal fourth quarter results present a potential catalyst for streamlined core results in the future. However, the bank needs adept credit execution with limited backsliding. The firm is also concerned about the bank’s overall lower net interest income, higher expenses, and persistent credit challenges.

During the fiscal fourth quarter of 2024, Midland States Bancorp, Inc. (NASDAQ:MSBI) reported net losses available to common shareholders of $54.8 million, or $2.52 per diluted share. Management noted its deteriorating credit quality issues are within the non-core consumer loans, Specialty Finance Group, and Midland Equipment Financing line of businesses. It has taken significant steps to address its credit quality issues. For instance, the company sold an $87.1 million LendingPoint portfolio, recognizing losses of $17.3 million. Moreover, it is also committed to selling a $371.7 million Greensky portfolio with associated losses of $33.4 million. Management has also tightened credit standards and will not originate new construction loans in the Specialty Finance Group. It is one of the worst-performing bank stocks in 2024.