Midland States Bancorp announced the sale of substantially all of its equipment finance portfolio to North Mill Equipment Finance LLC.
The transaction closed on November 28, 2025, with NMEF acquiring the portfolio for $502 million in cash.
The company intends to use the proceeds to pay down high-cost funding, aligning with its strategy to focus on community banking operations.
Sale Details
NMEF acquired the portfolio for $502 million in cash, excluding $75 million of loans retained by the company.
Financial Impact
The company expects a pre-tax loss of approximately $20 million in the fourth quarter of 2025.
Strategic Focus
The sale aligns with the company's strategy to focus on core operations and strengthen its balance sheet.
- The sale strengthens the company's focus on community banking and wealth management, improving its credit profile.
- It reduces exposure to higher-risk asset classes and positions the company well for future growth.
- NMEF's CEO highlighted the speed and certainty of the transaction, welcoming Midland Equipment Finance employees into their team.
The sale of the equipment finance portfolio marks a strategic shift for Midland States Bancorp, strengthening its balance sheet and focusing on core banking operations.