Midland States Bancorp sells equipment finance portfolio

Effingham, Ill.-based Midland States Bank sold its equipment finance portfolio to an affiliate of Norwalk, Conn.-based North Mill Equipment Finance for a little more than $500 million, according to a Dec. 2 press release. .The deal, which closed Nov. 28, reduced Midland’s total loans and leases by $545 million from Oct. 31. The portfolio included nearly $600 million in loans and leases outstanding and an additional $21 million in operating leases. Midland will keep $75 million in loans and leases from the portfolio.As a result of the sale, Midland expects to record a $20 million pre-tax loss in the fourth quarter, including transaction-related expenses. Most of the proceeds will pay down $350 million in high-cost wholesale funding, which the company said will strengthen its balance sheet.The transaction is part of Midland’s strategy to focus on core community banking and wealth management. The company expects the move will be accretive to capital and approximately neutral to earnings over time.“The sale of substantially all of the equipment finance portfolio follows other steps we’ve taken over the past year to improve our credit profile and enables us to redeploy capital more effectively,” said Midland State Bancorp President and CEO Jeffrey Ludwig. “These steps have strengthened our balance sheet, reduced our exposure to higher-risk asset classes, and helped position us well to continue growing the community bank into 2026.”Midland States Bancorp had nearly $7 billion in assets as of Sept. 30, along with $4.36 billion in wealth management assets under administration.Little Rock-based Stephens Inc. was financial adviser to Midland, with Chicago-based Barack Ferrazzano as legal counsel. Charlotte-based Moore & Van Allen PLLC was legal counsel to North Mill.