** Shares of community lender Midland States Bancorp MSBI.O on track for best ever week, if gains hold
** Stock has jumped more than 23% so far this week after MSBI announced the sale of its equipment finance portfolio
** Analysts say the deal improves MSBI's credit outlook and is likely to improve the bank's franchise value sooner than previously anticipated given better visibility into more consistent credit quality improvement
** Elevated losses in the equipment finance business have been a key concern for investors and weighed on MSBI's stock
** All five brokerages covering the stock rate it "hold"; median PT is $18 - data compiled by LSEG
** As of last close, MSBI down 23% YTD
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com))