Form 4: Midland States Bancorp Director Acquires Restricted Stock Units

Gerald Joseph Carlson, a director of Midland States Bancorp, acquired restricted stock units and common share equivalents under the company's long-term incentive plan and deferred compensation plan.

Summary

• On March 28, 2024, Gerald Joseph Carlson, a director of Midland States Bancorp, Inc. [MSBI], acquired 1,000 shares of common stock.
• Carlson also acquired 298.448 common share equivalents through the Directors Deferred Compensation Plan (DDCP).
• These common share equivalents are the economic equivalent of one share of common stock and become payable upon termination of service as a director.
• The restricted stock units were acquired under the 2019 Long-term incentive plan and deferred under the DDCP.
• Each restricted stock unit represents the contingent right to receive one share of Issuer common stock.
• Vested shares will be delivered based on the terms of the DDCP and the reporting person's distribution elections.

Sentiment

Score: 7

Explanation: The document reflects a routine transaction related to director compensation, which is generally viewed as neutral to slightly positive as it aligns director interests with shareholders.

Positives

• The acquisition of shares and share equivalents by a director signals confidence in the company's future.

Future Outlook

The vested shares from the restricted stock units will be delivered to the reporting person based on the terms of the DDCP and their distribution elections upon termination of service as a director.

Industry Context

Director share acquisitions are common in the banking industry as part of compensation and incentive programs, aligning director interests with shareholder value.

Comparison to Industry Standards

• Director compensation packages often include a mix of salary, stock options, and restricted stock units.
• The specific terms of Midland States Bancorp's long-term incentive plan and DDCP would need to be compared to those of peer banks to assess their competitiveness.
• Companies like First Midwest Bancorp (now part of Old National Bancorp) and Wintrust Financial Corporation also utilize similar compensation structures for their directors.

Stakeholder Impact

• The acquisition of shares by a director can be viewed positively by shareholders as it demonstrates confidence in the company's performance.

Key Dates