Form 4: Midland States Bancorp Director Reports Acquisition of Common Share Equivalents

Robert F. Schultz, a director of Midland States Bancorp, Inc., reported the acquisition of common share equivalents through dividend reinvestment and deferred director fees.

Summary

• Robert F. Schultz, a director of Midland States Bancorp, Inc. (MSBI), filed a Form 4 detailing changes in his beneficial ownership.
• The report indicates the acquisition of common share equivalents under the Director's Deferred Compensation Plan (DDCP) through dividend reinvestments and deferred director fees.
• On March 31, 2025, Schultz acquired 1,727.673 common share equivalents at $19.33 each through dividend reinvestment.
• Additionally, he acquired 9.93 common share equivalents at $17.12 each through deferred director fees on the same date.
• Schultz also holds common stock directly (32,117 shares) and indirectly through Red Bird Investors, LLC (30,153 shares), Summit Investors, LLP (37,845.688 shares), and J.M. Schultz Investment, LLC (200,030 shares).
• He disclaims beneficial ownership of shares held through Red Bird Investors, LLC, Summit Investors, LLP, and J.M. Schultz Investment, LLC, except to the extent of his pecuniary interest.

Sentiment

Score: 7

Explanation: The document reflects routine transactions related to director compensation and ownership, suggesting a neutral to slightly positive sentiment due to the director's continued investment in the company.

Positives

• The director's participation in the DDCP indicates confidence in the company's future performance.
• Dividend reinvestment increases the director's stake in the company without requiring additional capital outlay.

Industry Context

Directors' participation in dividend reinvestment and deferred compensation plans is a common practice in the banking industry, aligning their interests with those of shareholders.

Comparison to Industry Standards

• Many financial institutions offer similar deferred compensation plans to their directors, such as Bank of America and JP Morgan Chase.
• These plans are designed to attract and retain qualified board members by providing them with a long-term stake in the company's success.
• The specific terms of these plans, such as the reinvestment rate and vesting schedule, can vary widely across different companies.

Stakeholder Impact

• The transactions signal to shareholders that the director is invested in the company's long-term success.
• The director's participation in the DDCP could positively influence employee morale.

Key Dates

Keywords

Form 4, Midland States Bancorp, Director, Robert F. Schultz, Common Share Equivalents, Dividend Reinvestment, Deferred Compensation, MSBI, Beneficial Ownership