8-K: Midland States Bancorp Appoints Gerald Carlson to Board of Directors

Midland States Bancorp has appointed Gerald Carlson to its Board of Directors, effective February 6, 2024, as part of its strategy to expand in the St. Louis market.

Summary

• Midland States Bancorp has appointed Gerald Carlson to its Board of Directors, effective February 6, 2024.
• Mr. Carlson will serve as a Class II director with a term expiring at the 2027 annual meeting of shareholders.
• He will also serve as a director of Midland States Bank.
• Mr. Carlson's appointment increases the board to 11 members, with 10 classified as independent.
• The company believes Mr. Carlson's experience in the St. Louis market will be beneficial to their growth strategy in that region.
• Midland States Bancorp had total assets of approximately $7.9 billion and its Wealth Management Group had assets under administration of approximately $3.7 billion as of December 31, 2023.

Sentiment

Score: 7

Explanation: The document is positive due to the appointment of an experienced director and the company's strategic focus on growth. However, it also includes standard risk disclosures, which temper the overall sentiment.

Positives

• The appointment of Gerald Carlson is expected to help Midland States Bancorp expand its presence in the St. Louis market.
• Mr. Carlson brings extensive experience as a former Managing Partner at KPMG, including a significant period in the St. Louis office.
• The company believes Mr. Carlson's experience will help grow market share and add new retail and commercial clients.
• The board now has 10 independent directors out of 11, which is a positive for corporate governance.

Risks

• The company's forward-looking statements are subject to risks and uncertainties, including changes in interest rates, economic conditions, and regulatory developments.
• The company acknowledges the potential impact of inflation and the continuing effects of the failures of Silicon Valley Bank and Signature Bank.
• There are risks related to acquisitions and changes to U.S. tax laws.

Future Outlook

The company's future performance is subject to various risks and uncertainties, and actual results may differ from forward-looking statements. The company plans to expand its presence in the St. Louis market.

Management Comments

• Jeffrey C. Smith, Chairman of the Board, stated that they are pleased to add Jerry to the Board of Directors.
• The company believes the St. Louis market represents a significant growth opportunity for Midland.
• The company is investing more resources into expanding its presence in the St. Louis area.

Industry Context

The appointment of a director with experience in a specific market, like St. Louis, indicates a strategic focus on regional growth, which is a common approach in the banking industry. This move suggests that Midland States Bancorp is actively seeking to expand its market share and client base in targeted areas.

Comparison to Industry Standards

• Midland States Bancorp's total assets of $7.9 billion place it in the category of a mid-sized regional bank.
• Comparable companies in this space include First Midwest Bancorp (now part of Old National Bancorp) and Wintrust Financial Corporation, which also focus on community banking and wealth management.
• The appointment of an experienced executive like Gerald Carlson to the board is a common practice among banks seeking to enhance their strategic direction and corporate governance.
• The focus on the St. Louis market is similar to other regional banks that target specific geographic areas for growth.

Management Changes

Stakeholder Impact

• Shareholders may view the appointment of an experienced director positively, potentially increasing confidence in the company's strategic direction.
• Employees may see the expansion into the St. Louis market as a positive sign for growth and job security.
• Customers in the St. Louis area may benefit from increased services and offerings as the company expands its presence.

Next Steps

• Mr. Carlson will serve as a Class II director with a term expiring at the 2027 annual meeting of shareholders.
• The company will continue to invest resources into expanding its presence in the St. Louis market.

Key Dates

Keywords

Board of Directors, Midland States Bancorp, Gerald Carlson, St. Louis, Corporate Governance, Banking, Wealth Management, Financial Services