8-K: Midland States Bancorp Increases Common Stock Dividend by 3.3% and Declares Preferred Stock Dividend

Midland States Bancorp has announced a 3.3% increase in its quarterly common stock dividend and declared a dividend for its preferred stock.

Summary

• Midland States Bancorp has declared a quarterly cash dividend of $0.31 per share for its common stock, which is a 3.3% increase from the previous dividend of $0.30 per share.
• The common stock dividend is payable on February 23, 2024, to shareholders of record on February 16, 2024.
• The company also declared a cash dividend of $0.4844 per depositary share on its 7.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A.
• The preferred stock dividend will be paid on April 1, 2024, to stockholders of record as of March 15, 2024.
• This marks the 24th consecutive year that Midland States Bancorp has increased its quarterly cash dividend.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the dividend increase and the company's track record of consistent dividend growth. The management's comments also reflect confidence in the company's financial health.

Positives

• The company has increased its common stock dividend by 3.3%, demonstrating a commitment to returning capital to shareholders.
• The declaration of both common and preferred stock dividends indicates financial stability and confidence in future performance.
• The company has a track record of 24 consecutive years of increasing its quarterly cash dividend.
• Management stated that the dividend increase is supported by the company's financial performance and prudent balance sheet management.

Future Outlook

The company aims to continue increasing the amount of capital returned to shareholders through dividends while also retaining sufficient capital to support growth.

Management Comments

• Jeffrey G. Ludwig, President and CEO, stated that the dividend increase reflects the company's financial performance and prudent balance sheet management.
• He also mentioned that the company is pleased to continue increasing the amount of capital returned to shareholders through dividends.

Industry Context

The announcement is consistent with the trend of financial institutions returning capital to shareholders through dividends, reflecting a stable financial environment and confidence in future earnings.

Comparison to Industry Standards

• Many regional banks have been increasing dividends to reward shareholders, and Midland States Bancorp's 3.3% increase is in line with this trend.
• Companies like First Financial Bancorp (FFBC) and Old National Bancorp (ONB) also have a history of consistent dividend payments, making Midland States Bancorp comparable in this aspect.
• The dividend yield of MSBI will be a key metric to compare against peers to assess the attractiveness of the dividend.

Stakeholder Impact

• Shareholders will benefit from the increased dividend payments.
• The dividend increase may attract new investors seeking stable income.
• The company's financial stability and growth prospects are reinforced by the dividend announcement.

Key Dates

Keywords

dividends, common stock, preferred stock, cash dividend, Midland States Bancorp, MSBI, MSBIP, shareholders, financial performance