DA Davidson Raises Midland States Bancorp (MSBI) Target to $24, Keeps Neutral After Q4

Vardah Gill

Thu, February 12, 2026 at 12:00 AM GMT+9 2 min read

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Midland States Bancorp, Inc. (NASDAQ:MSBI) is included among the Dividend Champions, Contenders, and Challengers List: 15 Highest Yielding Stocks.

DA Davidson Raises Midland States Bancorp (MSBI) Target to $24, Keeps Neutral After Q4

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On January 26, DA Davidson lifted its price target on Midland States Bancorp, Inc. (NASDAQ:MSBI) to $24 from $23 and kept a Neutral rating following the company’s Q4 results. While earnings came in below expectations, the firm said Midland’s push to refocus the business around its core community banking model, with greater consistency and stronger credit discipline, could set up a much cleaner performance profile in 2026.

During the Q4 2025 earnings call, President and CEO Jeffrey G. Ludwig said the company entered the year with a clear priority on improving credit quality. Throughout 2025, management worked to reduce risk in the loan portfolio and strengthen the balance sheet. Ludwig noted that the company upgraded its credit team, reinforced its credit culture, and tightened underwriting standards. Although non-performing assets were still above the firm’s 0.75% target, he said the progress made during the year laid a solid foundation for continued improvement. He also emphasized that these changes were made without raising new capital, even as the company continued investing in its core businesses.

By year-end, Midland’s capital position had improved as well. The common equity tier 1 ratio increased to 9.89%, bringing it closer to the company’s 10% target. With shares trading near tangible book value during the quarter, the company repurchased $9.6 million of its common stock.

On the revenue front, Ludwig said trends held up well in the fourth quarter. Performance was supported by a healthy net interest margin and roughly 6.5% annualized loan growth in the Community Bank segment. He added that the wealth management business posted another record quarter. Looking ahead, Ludwig said the company plans to keep investing in these areas and expects the momentum to extend into 2026.

Midland States Bancorp, Inc. (NASDAQ:MSBI) is a diversified financial holding company with operations spanning Banking, Wealth Management, and Other segments. The Banking unit provides a broad range of financial products and services to both consumers and businesses.

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