KBRA cuts Midland States Bancorp

KBRA said it downgraded Midland States Bancorp, Inc.’s senior unsecured debt rating to BBB- from BBB and subordinated debt rating to BB+ from BBB- and then withdrew the ratings at Midland’s request.

“The ratings downgrade is mainly reflective of continued deterioration in capital ratios (7.8% CET1 as of 1Q22), which are well-below similarly rated peers. Capital ratios have been under pressure in recent quarters given the strong loan growth experienced in both 4Q21 (25% annualized) and 1Q22 (24% annualized), combined with a capital management plan that continued to incorporate share buybacks in addition to dividends (45% payout ratio in 2021 and 285% in 2020),” KBRA said in a press release.

The outlook is stable.

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