Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a diversified financial holding company headquartered in Effingham, Illinois, with banking operations through Midland States Bank. It provides community banking, consumer installment lending, merchant card services, and wealth management, serving individuals, businesses, municipalities, and other entities primarily in Illinois and the St. Louis metro area.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueCommercial and retail lending, deposit taking, and related banking services for local customers.
Trust, investment management, estate planning, brokerage, and retirement consulting services.
Auto, boat, recreational vehicle, appliance, and home improvement loans.
Merchant card processing, deposit service fees, and other noninterest income services.
Insurance placement and financial planning services offered through the bank and wealth platform.
Customers
The company serves retail customers, small and mid-sized businesses, municipalities, and other local entities in its core markets. It also sells wealth and trust services to individuals, families, business owners, and retirement plan sponsors seeking advice, custody, and investment management. Consumer installment lending is supported by retail and vendor channels for auto, recreational vehicle, appliance, and home-improvement financing.
Individuals buying checking, savings, CDs, consumer loans, and everyday banking services.
Businesses and municipalities using commercial loans, deposits, and treasury-style services.
Individuals, families, and business owners buying trust, investment, and estate planning services.
Borrowers financing autos, boats, RVs, appliances, and home-improvement projects.
Retailers and vendors that originate or process loans and card transactions through the bank.
Strategy
The company is focused on a high-tech, high-touch community banking model that combines digital convenience with relationship-based service. Management is also emphasizing core deposit gathering, regional franchise strength, and enterprise risk management after portfolio actions and credit-related pressure.
Relationship banking supports deposits, loan cross-sell, and customer retention in a competitive local market.
Noninterest income helps diversify earnings away from spread-based banking and credit cycles.
Credit quality and portfolio cleanup are central after recent loan sales and goodwill impairment.
A concentrated branch network must remain efficient to compete against larger banks and online lenders.
Geography
Midland States Bancorp is concentrated in Illinois, with additional branch presence in Missouri and a core footprint around the St. Louis metropolitan area. Its business is tied to local economic conditions, deposit competition, and credit performance in these regional markets rather than broad national diversification.
Risks
The company is exposed to regional economic weakness, especially in Illinois and the St. Louis area, because its lending and deposit base is concentrated there. Credit losses, vendor dependence, cyber risk, and competition from larger banks, nonbanks, and fintechs can all pressure margins, funding, and customer retention.
- Regional economic slowdownImpact: HighLikelihood: High
Loan performance and deposit growth depend heavily on Illinois and St. Louis market conditions.
Exposure - Credit deterioration and loan lossesImpact: HighLikelihood: High
The business is lending-heavy, so weaker borrower performance directly affects earnings and capital.
Exposure - Goodwill impairmentImpact: HighLikelihood: High
Management already recorded a large impairment tied to deteriorated credit quality and stock price trends.
Exposure: Banking reporting unit goodwill
- Cybersecurity and operational disruptionImpact: HighLikelihood: Medium
The bank processes transactions continuously and any outage or breach could impair service and reputation.
Exposure - Third-party vendor dependenceImpact: MediumLikelihood: Medium
Core banking and information services rely on outside providers that may be costly or hard to replace.
Exposure: Core processing and information services
- Competitive pressure from nonbanks and fintechsImpact: MediumLikelihood: Medium
Alternative lenders and digital platforms can take deposits, loans, and fee business at lower cost.
Exposure
Accounting
Judgemental itemsManagement uses models and judgment tied to macroeconomic variables, borrower attributes, and Q-factors.
Impact: Affects provision expense, earnings volatility, and reserve levels
The company recognized a large impairment in 2025 after a triggering event and quantitative test.
Impact: Can materially reduce net income without cash outflow
Investment securities, derivatives, and equity investments are exposed to price risk and valuation changes.
Impact: Can affect OCI, earnings, and capital ratios
Consumer loan portfolio sales and participations affect when assets leave the balance sheet and how gains are recognized.
Impact: Changes loan balances, interest income, and realized gains or losses
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Last updated: 24/09/2026