Midland States Bancorp in Effingham, Ill., is scaling back in equipment finance and some consumer lending segments.
The $7.8 billion-asset company said in a press release that total loans in the third quarter fell by 1.8% from a quarter earlier, to $5.7 billion.
Equipment finance balances declined by $30 million as the company reduces its dealings in that segment. Consumer loans fell by $83 million after Midland States stopped originating loans through point-of-sale lender Greensky and an ongoing runoff of loans tied to LendingPoint.
Midland State stopped working with LendingPoint last year.
Overall, net income was triple that of the second quarter and increased by 76% from a year earlier, to $16.2 million. The second quarter included a $16.8 million loan-loss provision largely tied to credit deterioration and servicing issues involving LendingPoint.
“We continue to utilize the payoffs resulting from the intentional reduction of our equipment finance and consumer portfolios to fund high-quality loans generated in our community bank and the purchase of investment securities,” Jeffrey Ludwig, Midland State’s president and CEO, said in the release.
“We are also seeing good results from the investments we have made in the business, such as increasing our presence and business development efforts in the St. Louis market, where our loan balances increased at an annualized rate of 12% during the third quarter,” he added.