Midland States Bancorp Business Summary

Midland States Bancorp, Inc. (MSBI) is a diversified financial holding company that generates approximately 75% of its revenue through net interest income from its core lending activities and 25% via noninterest income streams, including wealth management fees, interchange revenue, and service charges. The company operates through three primary segments: Community Banking, which provides commercial and retail products across Illinois and Missouri; Wealth Management, offering trust, investment, and financial planning services; and Merchant Credit Card Services. In a strategic pivot to de-risk its balance sheet, the company ceased its equipment finance production in late 2025 and is actively reducing specialty finance exposure to focus on high-touch community banking in the St. Louis and Chicago markets. MSBI competes directly with regional peers such as First Mid Bancshares, Old Second Bancorp, and First Busey Corporation, positioning itself as a relationship-centric alternative with a robust dividend profile and a specialized focus on small-to-mid-sized business clients. Originally founded in 1881 as Effingham State Bank and incorporated as a holding company in 1988, Midland is currently led by Chairman and CEO Jeffrey G. Ludwig, a CPA who joined the firm in 2006 after senior roles at KPMG and Zimmer Holdings. The executive team includes CFO Eric T. Lemke, a former partner at RSM US LLP with over 25 years of financial advisory experience, and Chief Banking Officer Jeremy A. Jameson, who is overseeing the transition of the bank’s presidency following the retirement of Jeffrey Mefford in 2026. The company’s strategic direction is heavily influenced by its board and institutional backers, notably including Patriot Financial Partners, L.P., which secured a significant equity position in February 2026 and appointed senior partner James F. Deutsch to the board to enhance governance and growth execution. Other major institutional shareholders include BlackRock, Vanguard, and Dimensional Fund Advisors.