Form 4: Midland States Bancorp Director Carlson Acquires Additional Shares Through Dividend Reinvestment and Incentive Plan

Director Gerald Carlson reports acquisition of common stock and common share equivalents through dividend reinvestment and the 2019 Long-term incentive plan.

Summary

• Director Gerald Carlson reported the acquisition of 1,000 shares of common stock.
• Carlson also acquired 3,945 common share equivalents on June 28, 2024, and 2,428.256 common share equivalents on June 30, 2024.
• These acquisitions were made through the 2019 Long-term incentive plan and dividend reinvestments under the Directors Deferred Compensation Plan (DDCP).
• The price of the common share equivalents acquired on June 28 was $23.45, and on June 30 it was $22.65.
• Following these transactions, Carlson directly owns 302,393 common share equivalents and 1,000 shares of common stock.
• The common share equivalents are payable upon termination of service as a director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The director is increasing their stake in the company, which can be seen as a sign of confidence. However, the acquisitions are part of a pre-existing plan (DDCP and incentive plan) and dividend reinvestment, so it's not necessarily a strong signal.

Positives

• Director's participation in the DDCP and long-term incentive plan demonstrates confidence in the company's future.
• Dividend reinvestment indicates a long-term investment strategy by the director.

Future Outlook

The vested shares will be delivered to the reporting person based on the terms of the DDCP and the reporting person's distribution elections thereunder.

Industry Context

Tracking insider transactions provides insights into management's perspective on the company's valuation and future prospects relative to its peers in the banking sector.

Comparison to Industry Standards

• Comparing insider activity at Midland States Bancorp to similar regional banks like First Midwest Bancorp or Old National Bancorp can provide a benchmark for assessing the significance of these transactions.
• Director ownership levels are often compared to industry averages to gauge alignment with shareholder interests.
• Deferred compensation plans are a common practice in the banking industry, and the terms of Midland States Bancorp's plan can be compared to those offered by its competitors.

Stakeholder Impact

• Increased insider ownership can align management's interests with those of shareholders.
• The transactions themselves have a minimal direct impact on employees, customers, suppliers, or creditors.

Key Dates