SCHEDULE: Dimensional Fund Advisors Cuts Midland States Bancorp Stake Below 5%

Dimensional Fund Advisors LP has reduced its beneficial ownership in Midland States Bancorp Inc. to 4.9%, falling below the 5% reporting threshold.

Summary

• Dimensional Fund Advisors LP, an investment adviser, reported a beneficial ownership of 1,050,822 shares of Midland States Bancorp Inc. common stock.
• This represents 4.9% of the class of securities, indicating a reduction from a previous filing (Amendment No. 2 implies a prior stake of 5% or more).
• The event requiring this filing, where the ownership percentage changed, occurred on December 31, 2025.
• Dimensional Fund Advisors LP disclaims beneficial ownership of these securities, stating they are owned by various funds for which Dimensional acts as an investment adviser or manager.

Sentiment

Score: 4

Explanation: The reduction of a significant institutional stake below the 5% threshold by a major investment adviser is generally viewed as a moderately negative signal, indicating a potential decrease in confidence or a strategic reallocation of assets.

Negatives

• A significant institutional investor, Dimensional Fund Advisors LP, has reduced its stake in Midland States Bancorp Inc. to below 5%.
• This reduction could be interpreted by the market as a decrease in confidence or a reallocation of assets away from the issuer.

Risks

• Potential negative market perception due to a large institutional investor reducing its ownership stake.
• Increased selling pressure if other institutional investors follow suit, impacting the stock price.

Future Outlook

NA

Management Comments

• Dimensional Fund Advisors LP disclaims beneficial ownership of the securities, stating they are owned by various funds for which Dimensional acts as an investment adviser or manager.
• Selwyn Notelovitz, Global Chief Compliance Officer of Dimensional Fund Advisors LP, certified that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Industry Context

This filing reflects a portfolio adjustment by a major investment adviser, which is a common occurrence in the financial industry as firms rebalance holdings based on market conditions, investment strategies, or specific company performance assessments. The reduction in stake by a passive institutional investor can sometimes signal a shift in investment focus or a re-evaluation of the issuer's prospects relative to other opportunities.

Stakeholder Impact

• Shareholders: May react negatively to the news of a large institutional investor reducing its stake, potentially leading to downward pressure on the stock price.
• Management: May face questions regarding the reasons for the institutional investor's reduced confidence or change in investment strategy.

Key Dates

Recommendation

While the reduction in stake by Dimensional Fund Advisors LP to below 5% is a negative signal, it represents a passive investment adjustment rather than an active divestment with intent to influence control. Investors should monitor future filings and company performance, but a 'hold' recommendation is appropriate given this single data point without further context on the reasons for the reduction.

Keywords

Midland States Bancorp, MSBI, Dimensional Fund Advisors, DFA, Schedule 13G, beneficial ownership, institutional ownership, stake reduction, common stock, investment adviser