tm263673-2_nonfiling - none

tm263673-2_nonfiling - none - 10.9015561s

TABLE OF CONTENTS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A

(RULE 14a-101)

INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934

Filed by the Registrant ☒

Filed by a Party other than the Registrant ☐

Check the appropriate box:

☐

Preliminary Proxy Statement

☐

Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))

☒

Definitive Proxy Statement

☐

Definitive Additional Materials

☐

Soliciting Material under §240.14a-12

MIDLAND STATES BANCORP, INC.

(Name of Registrant as Specified In Its Charter)

(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check all boxes that apply):

☒

No fee required

☐

Fee paid previously with preliminary materials

☐

Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11

TABLE OF CONTENTS

NOTICE OF
ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD MAY 4, 2026

To the shareholders of Midland States Bancorp, Inc.:

The annual meeting of the shareholders of Midland States Bancorp, Inc., an Illinois corporation, will be held at the Holiday Inn located at 1301 Avenue of Mid-America, Effingham, Illinois 62401, on Monday, May 4, 2026, at 5:30 p.m., local time, for the following purposes:

To elect the four nominees named in the accompanying proxy statement to serve as Class I directors, each for a term expiring at the 2029 annual meeting of shareholders.

To approve, on a non-binding, advisory basis, the compensation of certain executive officers, which we refer to as the “say-on-pay proposal.”

To ratify the appointment of Crowe LLP as our independent registered public accounting firm for the year ending December 31, 2026, which we refer to as the “auditor ratification proposal.”

The board of directors has fixed the close of business on March 5, 2026, as the record date for the determination of shareholders entitled to notice of, and to vote at, the meeting. A complete list of the shareholders entitled to vote at the meeting is kept on file at the Company’s principal executive offices, located at 1201 Network Centre Drive, Effingham, Illinois 62401. If there is an insufficient number of votes for a quorum or to approve or ratify any of the foregoing proposals at the time of the meeting, the meeting may be adjourned or postponed to permit our further solicitation of proxies.

By order of the Board of Directors,

Jeffrey C. Smith
Chairman

Effingham, Illinois
March 23, 2026

YOUR VOTE IS IMPORTANT. PLEASE EXERCISE YOUR SHAREHOLDER RIGHT TO VOTE, REGARDLESS OF WHETHER YOU PLAN TO ATTEND THE ANNUAL MEETING.

TABLE OF CONTENTS

Table of Contents

	GENERAL INFORMATION ABOUT THE ANNUAL MEETING					1
	CORPORATE GOVERNANCE AND THE BOARD OF DIRECTORS					4
	Committees of the Board of Directors					4
	Shareholder Communication with the Board, Nomination and Proposal Procedures					7
	Board Leadership Structure					8
	Independent Director Sessions					8
	Board’s Role in Risk Oversight					8
	Compensation Committee Interlocks and Insider Participation					9
	Code of Business Conduct and Ethics					9
	Anti-Hedging Policy					9
	Board Diversity					9
	Director Compensation					10
	CORPORATE RESPONSIBILITY					11
	PROPOSAL 1 — ELECTION OF DIRECTORS					12
	COMPENSATION DISCUSSION AND ANALYSIS					19
	EXECUTIVE SUMMARY					19
	2025 Compensation Highlights					19
	Compensation Best Practices					19
	Prior Year’s Say-on-Pay Vote					20
	WHAT GUIDES OUR PROGRAM					20
	Compensation Philosophy and Objectives					20
	Elements of Compensation					21
	Pay Mix					21
	The Decision-Making Process					22
	2025 EXECUTIVE COMPENSATION PROGRAM IN DETAIL					23
	Base Salary					23
	Annual Incentive Bonus — Corporate Bonus Plan					23
	Long-Term Equity Incentive Awards					25
	OTHER PRACTICES, POLICIES & GUIDELINES					25
	Clawback Policy					26
	Anti-Hedging Policy					27
	Benefits and Other Perquisites					27
	Regulatory Impact on Compensation					27
	COMPENSATION COMMITTEE REPORT					28
	EXECUTIVE COMPENSATION					29
	Summary Compensation Table					29
	Grants of Plan-Based Awards					30
	Outstanding Equity Awards					31
	Option Exercises and Stock Vested in 2025					32
	Potential Payments Upon Termination or Change in Control					32
	Employment Agreements					34
	Long Term Incentive Plans					36

TABLE OF CONTENTS

	Other Compensation Programs					36
	CEO Pay Ratio					38
	PAY VERSUS PERFORMANCE DISCLOSURE					39
	PROPOSAL 2 — ADVISORY (NON-BINDING) VOTE ON EXECUTIVE COMPENSATION					43
	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS					44
	CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS					47
	AUDIT COMMITTEE REPORT					48
	PROPOSAL 3 — RATIFICATION OF THE APPOINTMENT OF CROWE LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM					49
	General					49
	Accountant Fees					49
	Audit Committee Pre-Approval Policy					49

TABLE OF CONTENTS

MIDLAND STATES BANCORP, INC.
PROXY STATEMENT
ANNUAL MEETING OF SHAREHOLDERS
MAY 4, 2026

These proxy materials are furnished in connection with the solicitation by the board of directors of Midland States Bancorp, Inc., an Illinois corporation (the “Company”) and the holding company of Midland States Bank (the “Bank”), of proxies to be used at the Company’s 2026 annual meeting of shareholders, to be held at the Holiday Inn located at 1301 Avenue of Mid-America, Effingham, Illinois 62401, on Monday, May 4, 2026, at 5:30 p.m., local time, and at any adjournments or postponements of such meeting. A complete list of the shareholders entitled to vote at the annual meeting is kept on file at the Company’s principal executive offices, located at 1201 Network Centre Drive, Effingham, Illinois 62401.

In accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”), instead of mailing a printed copy of our proxy materials to each shareholder of record, we furnish proxy materials, which include the Notice of Annual Meeting, this proxy statement and our Annual Report on Form 10-K for the year ended December 31, 2025, over the Internet unless otherwise instructed by the shareholder. If you received a Notice of Internet Availability of Proxy Materials by mail and would like to receive a printed copy of our proxy materials, you should follow the instructions for requesting such materials included in the Notice of Internet Availability of Proxy Materials. The Notice of Internet Availability of Proxy Materials is being mailed on or about March 23, 2026.

GENERAL INFORMATION ABOUT THE ANNUAL MEETING

The following is information regarding the meeting and the voting process, presented in a question and answer format.

Why did I receive access to the proxy materials?

According to our records, at the close of business on March 5, 2026, the record date for the annual meeting, you owned shares of our common stock. This proxy statement describes the matters that will be presented for consideration by the shareholders at the meeting. It also gives you information concerning those matters to assist you in making an informed decision.

What matters will be voted on at the meeting?

You are being asked to vote on: (i) the election of the four nominees named in this proxy statement to serve as Class I directors, each for a term expiring at the 2029 annual meeting of shareholders; (ii) the approval, on a non-binding, advisory basis, of the say-on-pay proposal; and (iii) the approval of the auditor ratification proposal. These matters are more fully described in this proxy statement.

What are the board’s voting recommendations?

The board recommends that you vote your shares:

•

“FOR” the election of each of the director nominees named in this proxy statement;

•

“FOR” the say-on-pay proposal; and

•

“FOR” the auditor ratification proposal.

If I am the record holder of my shares, how do I vote?

If your shares are registered directly in your name with the Company’s transfer agent, Computershare, Inc., there are four ways to vote:

•

Via the Internet. You may vote by proxy via the internet by following the instructions provided in the Notice of Internet Availability of Proxy Materials. If you request printed copies of the proxy materials by mail, you will receive a proxy card and these instructions can be found on your proxy card.

TABLE OF CONTENTS

•

By Telephone. If you request printed copies of the proxy materials by mail, you will receive a proxy card and you may vote by proxy by calling the toll free number found on the proxy card.

•

By Mail. If you request printed copies of the proxy materials by mail, you will receive a proxy card and you may vote by proxy by completing, signing and dating the proxy card and returning it in the envelope provided.

•

In Person. You may vote in person at the meeting by requesting a ballot when you arrive. You must bring valid picture identification, such as a driver’s license or passport, and may be requested to provide proof of stock ownership as of the record date.

If I am a beneficial owner of the Company’s shares held in street name, how do I vote?

If you are a beneficial owner of shares held in street name (such as if you hold your shares through a broker, trustee or other fiduciary), then that organization will instruct you as to how your shares may be voted by proxy, including whether internet or telephone voting options are available. If you are a beneficial owner of shares held in street name and wish to vote in person at the meeting, you must obtain a “legal proxy” from the organization that holds your shares. A legal proxy is a written document that will authorize you to vote your shares held in street name at the meeting. Please contact the organization that holds your shares for instructions regarding obtaining a legal proxy. You must bring a copy of the legal proxy to the meeting and ask for a ballot from an usher when you arrive. You must also bring valid picture identification, such as a driver’s license or a passport. For your vote to be counted, you must hand both the copy of the legal proxy and your completed ballot to an usher to be provided to the inspector of election.

If I hold shares in the Amended and Restated Midland States Bancorp, Inc. Employee Stock Purchase Plan, who votes my shares?

If you are a holder of stock in the Amended and Restated Midland States Bancorp, Inc. Employee Stock Purchase Plan (the “ESPP”), you can direct the service provider of the ESPP (the “Service Provider”), which is currently the Bank, how to vote the number of shares you hold in the ESPP for each proposal included in this proxy statement. If you do not provide timely voting directions to the Service Provider, then the Bank, acting in its capacity as the Service Provider, intends to vote such shares in accordance with the recommendations of the board, pursuant to the authority granted under the ESPP.

What options do I have in voting on each of the proposals?

You may vote “FOR,” “AGAINST” or “ABSTAIN” with respect to the election of each director nominee, with respect to each other proposal described in this proxy statement, and with respect to any other proposal that may properly be brought before the meeting.

How many votes may I cast?

You are entitled to cast one vote for each share of common stock you owned on the record date.

What is the quorum required for each matter, and what vote is required to approve each matter?

The holders of a majority of the outstanding shares of the Company, entitled to vote on a matter, represented in person or by proxy, will constitute a quorum for purposes of such matter at the meeting. If less than a majority of the outstanding shares are represented at the meeting, a majority of the shares represented may adjourn the meeting at any time without further notice. For purposes of determining whether a quorum is present for any matter, an abstention will be counted as a share entitled to vote and represented at the meeting with respect to that matter, while a broker non-vote (which occurs when a broker, trustee or other fiduciary returns a proxy but provides no instructions as to how shares should be voted on such matter) will not be counted as entitled to vote and represented at the meeting with respect to that matter.

If a quorum is present with respect to any matter, the affirmative vote of the majority of the votes of the shares represented at the meeting and entitled to vote on that matter will be required to approve that matter.

TABLE OF CONTENTS

On March 5, 2026, the record date, there were 21,466,165 shares of common stock issued and outstanding. A list of shareholders entitled to vote at the meeting will be available for inspection by shareholders within 20 days after the record date at the Company’s office located at 1201 Network Centre Drive, Effingham, Illinois 62401, and will also be available for inspection by shareholders at the meeting.

How are abstentions and broker non-votes treated?

With respect to the election of directors, a vote to “ABSTAIN” will have the effect of a vote “AGAINST” the applicable nominee. Assuming that a quorum is present with respect to the election of directors, a broker non-vote will not have an effect on the election of a nominee.

With respect to the say-on-pay proposal, a vote to “ABSTAIN” will have the effect of a vote “AGAINST” the proposal. Assuming a quorum is present with respect to the say-on-pay proposal, a broker non-vote will not have an effect on the outcome of this proposal.

With respect to the auditor ratification proposal, a vote to “ABSTAIN” will have the effect of a vote “AGAINST” the proposal. Broker non-votes are not expected with respect to the auditor ratification proposal, as it is considered a “routine” matter on which brokers have discretionary authority, but if any broker non-votes are cast, they will not have an effect on the outcome of this proposal, assuming that a quorum is present with respect to this proposal.

What if I change my mind after I return my proxy?

You may revoke your proxy and change your vote at any time prior to the taking of the vote at the meeting. Prior to the applicable cutoff time, you may change your vote using the internet or telephone methods described above, in which case only your latest internet or telephone proxy submitted prior to the meeting will be counted. You may also revoke your proxy and change your vote by signing and returning a new proxy card or voting instruction form dated as of a later date, or by attending the meeting and voting in person. However, your attendance at the meeting will not automatically revoke your proxy unless you properly vote at the meeting or specifically request that your prior proxy be revoked by delivering a written notice of revocation to the Company’s Secretary at 1201 Network Centre Drive, Effingham, Illinois 62401, prior to the meeting.

What happens if a nominee is unable to stand for election?

The board may, by resolution, provide for a lesser number of directors or designate a substitute nominee. In the latter case, shares represented by proxies may be voted for a substitute nominee. Proxies cannot be voted for more than four nominees. The board has no reason to believe any nominee will be unable to stand for election.

Who will serve as the inspector of election?

A representative of the Company is expected to serve as the inspector of election.

Where do I find the voting results of the meeting?

If available, we will announce voting results at the meeting. The voting results will also be disclosed in a filing we will make with the SEC within four business days after the annual meeting.

Who bears the cost of soliciting proxies?

We will bear the cost of soliciting proxies. In addition to solicitations by mail, officers, directors or employees of the Company or its subsidiaries may solicit proxies in person or by telephone. These persons will not receive any special or additional compensation for soliciting proxies. In addition, we have engaged Georgeson LLC to solicit proxies of institutional investors, for an anticipated cost of $16,000. We may reimburse brokerage houses and other custodians, nominees and fiduciaries for their reasonable out-of-pocket expenses for forwarding proxy and solicitation material to shareholders.

TABLE OF CONTENTS

CORPORATE GOVERNANCE AND THE BOARD OF DIRECTORS

We currently have eleven directors serving as our board, a majority of whom we have determined to be “independent,” as that term is defined by the rules of the Nasdaq Stock Market.

Our board of directors has evaluated the independence of its members based upon the rules of the Nasdaq Stock Market and the SEC. Applying these standards, our board of directors has affirmatively determined that, with the exception of Mr. Ludwig, each of our current directors is an independent director, as defined under the applicable rules. The board determined that Mr. Ludwig does not qualify as an independent director because he is an executive officer of the Company.

Generally, the board oversees our business and monitors the performance of our management. In accordance with our corporate governance procedures, the board does not involve itself in the day-to-day operations of the Company, which are monitored by our executive officers and management. Our directors fulfill their duties and responsibilities by attending regular meetings of the full board, with additional special meetings held from time to time. Our directors also discuss business and other matters with Mr. Ludwig, other key executives and our principal external advisers (legal counsel, auditors and other consultants) at times other than regularly scheduled meetings when appropriate.

The board held 13 meetings during 2025. In 2026, the full board intends to hold eight regularly scheduled meetings with special meetings held from time to time when necessary and through committee membership, which is discussed below. During 2025, all directors attended at least 75 percent of the meetings of the board and the committees on which they served. Although we do not have a formal policy regarding director attendance at the annual meeting of shareholders, we encourage and expect all of our directors to attend. Last year, all of our current directors serving at that time were present at the annual meeting of shareholders.

Committees of the Board of Directors

Our board of directors has established standing committees in connection with the discharge of its responsibilities. These committees include the Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee, Risk Policy & Compliance Committee and Executive Committee. Our board of directors also may establish such other committees as it deems appropriate, in accordance with applicable law and regulations and our articles and bylaws.

The current charters of the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee are available on the Company’s website at www.midlandsb.com under “Investors — Corporate Governance — Governance Highlights.” The table below shows the current membership of each of the Audit Committee, Compensation Committee, and Nominating and Corporate Governance Committee:

Directors	Audit Committee	Compensation Committee	Nominating and Corporate Governance Committee
Jeffrey C. Smith		X
Jeffrey G. Ludwig
R. Dean Bingham			X
Gerald J. Carlson	Chair
James F. Deutsch		X
Jennifer L. DiMotta		X	X
Travis J. Franklin			X
Jerry L. McDaniel	X		Chair
Jeffrey M. McDonnell	X
Richard T. Ramos	X	Chair
Robert F. Schultz
Meetings Held in 2025	13	4	4

TABLE OF CONTENTS

Audit Committee. Our Audit Committee currently consists of Gerald J. Carlson (Chair), Jerry L. McDaniel, Jeffrey M. McDonnell and Richard T. Ramos. Our board of directors has evaluated the independence of the members of our Audit Committee and has affirmatively determined that: (i) each of the members of our Audit Committee meets the definition of “independent director” under Nasdaq Stock Market rules; (ii) each of the members satisfies the additional independence standards under Nasdaq Stock Market rules and applicable SEC rules for audit committee service; and (iii) each of the members has the ability to read and understand fundamental financial statements. In addition, our board of directors has determined that Mr. Ramos has the required financial sophistication due to his experience and background, which Nasdaq Stock Market rules require at least one such Audit Committee member have. Our board has determined that Mr. Ramos also qualifies as an “audit committee financial expert,” as that term is defined under applicable SEC rules.

Our Audit Committee has adopted a written charter, which sets forth the committee’s duties and responsibilities. The current charter of the Audit Committee is available on our website at www.midlandsb.com under “Investors — Corporate Governance — Governance Highlights.” As described in its charter, our Audit Committee has responsibility for, among other things:

•

selecting and reviewing the independence, qualifications and performance of our independent auditors and approving, in advance, all engagements and fee arrangements;

•

reviewing on a quarterly basis a summary of findings from completed internal audits, and a progress report on the proposed internal audit plans, with explanations for any deviations from the original plan as well as disposition of audit recommendations;

•

reviewing and discussing with management, the internal auditors and the independent auditors the effectiveness of our system of internal control and internal audit procedures;

•

reviewing and discussing with management and the independent auditor the annual audited and quarterly unaudited financial statements, including disclosures made in management’s discussion and analysis, earnings press releases and any earnings guidance provided to analysts and rating agencies, prior to the release of quarterly and annual earnings results;

•

discussing with management and the independent auditor any correspondence with regulators or governmental agencies and any published reports that raise material issues regarding the Company’s financial statements or accounting policies;

•

reviewing and approving all material related party transactions; and

•

handling such other matters that are specifically delegated to the Audit Committee by our board of directors from time to time.

Our Audit Committee also administers the Company’s clawback policy, which provides for the recovery of certain performance-based compensation under certain circumstances involving an accounting restatement, under authority delegated to it by our board of directors.

Compensation Committee. Our Compensation Committee currently consists of Richard T. Ramos (Chair), James F. Deutsch, Jennifer L. DiMotta and Jeffrey C. Smith. Our board of directors has evaluated the independence of the members of our Compensation Committee and has affirmatively determined that each of the members of our Compensation Committee is “independent” under applicable SEC and Nasdaq Stock Market rules.

Our Compensation Committee has adopted a written charter, which sets forth the committee’s duties and responsibilities. The current charter of the Compensation Committee is available on our website at www.midlandsb.com under “Investors — Corporate Governance — Governance Highlights.” As described in its charter, our Compensation Committee has responsibility for, among other things:

•

reviewing, monitoring and approving our overall compensation structure, policies and programs (including benefit plans) and assessing whether the compensation structure establishes appropriate incentives for our executive officers and other employees and meets our corporate objectives;

•

determining the annual compensation of our Chief Executive Officer;

TABLE OF CONTENTS

•

reviewing the compensation decisions made by our Chief Executive Officer with respect to our other named executive officers;

•

reviewing and approving all employment agreements, severance arrangements and change-in-control agreements or provisions for the Chief Executive Officer and any other named executive officer;

•

overseeing the administration of our equity plans and other incentive compensation plans and programs and preparing recommendations and periodic reports to our board of directors relating to these matters;

•

reviewing the management succession plans of the Company;

•

determining whether to retain or obtain the advice of a compensation consultant, legal counsel or other adviser and to oversee the appointment, compensation and work of any such adviser; and

•

handling such other matters that are specifically delegated to the Compensation Committee by our board of directors from time to time.

Nominating and Corporate Governance Committee. Our Nominating and Corporate Governance Committee currently consists of Jerry L. McDaniel (Chair), R. Dean Bingham, Jennifer L. DiMotta and Travis Franklin. Our board of directors has evaluated the independence of the members of our Nominating and Corporate Governance Committee and has affirmatively determined that each of the members of our Nominating and Corporate Governance Committee is “independent” under Nasdaq Stock Market rules.

Our Nominating and Corporate Governance Committee has adopted a written charter, which sets forth the committee’s duties and responsibilities. The current charter of the Nominating and Corporate Governance Committee is available on our website at www.midlandsb.com under “Investors — Corporate Governance — Governance Highlights.” As described in its charter, our Nominating and Corporate Governance Committee has responsibility for, among other things:

•

identifying qualified individuals to serve as directors of the Company and recommending to the Company’s board of directors the nomination or appointment of such individuals;

•

monitoring the functioning of our standing committees and recommending any changes with respect to the assignment of individual directors to such committees;

•

developing, reviewing and monitoring compliance with our corporate governance guidelines;

•

reviewing annually the composition of our board of directors as a whole and making recommendations; and

•

handling such other matters that are specifically delegated to the Nominating and Corporate Governance Committee by our board of directors from time to time.

Our Nominating and Corporate Governance Committee strives to recommend candidates for director positions who will create a collective membership on the board of directors with varied experience and perspective and who maintain a board that reflects diversity, including but not limited to gender, ethnicity, background, country of citizenship and experience.

In carrying out its nominating functions, the Nominating and Corporate Governance Committee has developed qualification criteria for all potential director nominees, including incumbent directors, board nominees and shareholder nominees included in the proxy statement. These criteria include the following attributes:

•

the highest personal and professional ethics, integrity and values;

•

sufficient educational and professional experience, business experience or comparable service on other boards of directors to qualify the nominee for service to the board;

•

exemplary management and communication skills;

•

contribution to the board’s goals of having a diverse range of backgrounds, views, experiences, talents and skills in the boardroom;

•

evidence of effective leadership and sound judgment in the nominee’s professional life;

TABLE OF CONTENTS

•

a willingness to meet the standards and duties set forth in the Company’s Code of Business Conduct and Ethics; and

•

a willingness and ability to devote sufficient time to carrying out the duties and responsibilities required of a board member, and a commitment to serving on the board for an extended period of time.

The committee also evaluates potential nominees to determine if they have any conflicts of interest that may interfere with their ability to serve as effective board members and to determine whether they are “independent” in accordance with Nasdaq Stock Market rules to ensure that, at all times, at least a majority of our directors are independent. Our Nominating and Corporate Governance Committee evaluates all candidates in the same way, reviewing the aforementioned factors, among others, regardless of the source of such candidates, including shareholder recommendations. Because of this, there is no separate policy with regard to the consideration of candidates recommended by shareholders.

Prior to nominating an existing director for re-election to the board, the committee will consider and review the following attributes with respect to each existing director:

•

board and committee attendance and performance;

•

length of board service;

•

experience, skills and contributions that the existing director brings to the board;

•

independence and any conflicts of interest; and

•

any significant change in the director’s professional status or work experience, including the attributes considered for initial board membership.

Shareholder Communication with the Board, Nomination and Proposal Procedures

General Communications with the Board. Shareholders may contact our board of directors by contacting Nathan D. Sturycz, Secretary, Midland States Bancorp, Inc. at 1201 Network Centre Drive, Effingham, Illinois 62401 or (217) 342-7321.

Nominations of Directors. In accordance with our bylaws, a shareholder may nominate a director for election at an annual meeting of shareholders by delivering written notice of the nomination to our Secretary, at the above address, not less than 90 days nor more than 120 days prior to the annual meeting. However, if less than 100 days’ notice or prior public disclosure of the date of the annual meeting is given to shareholders, then written notice of the nomination must be delivered to our Secretary no later than the close of business on the 10th day following the day on which such notice of the date of the annual meeting was mailed or such public disclosure was made.

We anticipate holding our 2027 annual meeting of shareholders on May 3, 2027. As a result, notice of nominations for directors to be elected at the 2027 annual meeting of shareholders must be delivered to our Secretary no earlier than January 3, 2027, and no later than February 2, 2027. The shareholder’s notice to the Secretary must include: (a) the name and address of record of the nominating shareholder; (b) a representation that the nominating shareholder is a holder of record of shares of the Company entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to nominate the persons specified in the notice; (c) the name, age, business and residence addresses, and principal occupation or employment of each nominee; (d) a description of all arrangements or understandings between the nominating shareholder and each nominee and any other person (naming such person) pursuant to which the nominations are to be made by the nominating shareholder; (e) such other information regarding each nominee proposed by such nominating shareholder as is required to be included in a proxy statement filed pursuant to the proxy rules of the SEC, as in effect; and (f) the consent of each nominee to serve as a director of the Company if so elected. Persons nominated for election to the board pursuant to this paragraph will not be included in our proxy statement, unless they are also submitted in accordance with the requirements described under “Other Shareholder Proposals,” below.

Other Shareholder Proposals. To be considered for inclusion in our proxy statement and form of proxy for our 2027 annual meeting of shareholders pursuant to Rule 14a-8 under the Exchange Act

TABLE OF CONTENTS

of 1934, as amended, shareholder proposals must be received by our Secretary, at the above address, no later than November 23, 2026, and must otherwise comply with the notice and other provisions of our bylaws, as well as SEC rules and regulations.

For proposals to be otherwise brought by a shareholder and voted upon at an annual meeting, the shareholder must file written notice of the proposal to our Secretary not less than 90 days nor more than 120 days prior to the annual meeting. However, that if less than 100 days’ notice of the date of the annual meeting is given to shareholders, then written notice of the proposal must be delivered to our Secretary no later than the close of business on the 10th day following the day on which such notice of the date of the annual meeting was mailed to shareholders.

We anticipate holding our 2027 annual meeting of shareholders on May 3, 2027. As a result, notice of shareholder proposals to be brought at the meeting must be delivered to our Secretary no earlier than January 3, 2027, and no later than February 2, 2027. The shareholder’s notice to the Secretary must include: (a) a brief description of the proposal desired to be brought before the meeting and the reasons for conducting such business at the meeting; (b) the name and address, as they appear on the Company’s books, of the shareholder proposing such business; (c) the number of shares of the Company’s common stock beneficially owned by such shareholder on the date of such shareholder’s notice; and (d) any financial or other interest of such shareholder in the proposal.

Board Leadership Structure

We currently have separate individuals serving as Chairman of our board of directors and as our Chief Executive Officer. Mr. Jeffrey C. Smith serves as Chairman, and Mr. Jeffrey G. Ludwig holds the position of Chief Executive Officer.

Although our bylaws do not require our Chairman and Chief Executive Officer positions to be separate, our board believes that having separate positions and having a non-executive director serve as Chairman is the appropriate leadership structure for the Company at this time and demonstrates our commitment to good corporate governance. Separating these positions allows our Chief Executive Officer to focus on our day-to-day business, while allowing the Chairman to lead the board in its fundamental role of providing advice to and independent oversight of management. In addition, we believe this leadership structure allows our board to more effectively monitor and evaluate the performance of our Chief Executive Officer.

Independent Director Sessions

Consistent with Nasdaq Stock Market listing requirements, the independent directors regularly meet without the non-independent directors present. In 2025, 13 independent sessions were held.

Board’s Role in Risk Oversight

Risk is inherent with every business, and how well a business manages risk can ultimately determine its success. We face a number of risks, including general economic risks, credit risks, regulatory risks, audit risks, reputational risks and others, such as the impact of competition. Management is responsible for the day-to-day management of risks the Company faces, while the board, as a whole and through its committees, has responsibility for the oversight of risk management. In its risk oversight role, the board of directors has the responsibility that the risk management processes designed and implemented by management are adequate and functioning as designed.

While the full board of directors is charged with ultimate oversight responsibility for risk management, various committees of the board and members of management also have responsibilities with respect to our risk oversight. In particular, the Risk Policy & Compliance Committee plays a large role in monitoring and assessing our financial, legal, and organizational risks and receives regular reports from the management team regarding comprehensive organizational risk as well as particular areas of concern. The board’s Compensation Committee monitors and assesses the various risks associated with compensation policies and oversees incentives that encourage a level of risk-taking consistent with our overall strategy. The board’s Risk Policy & Compliance Committee monitors and assesses interest rate risk exposure in the coordinated

TABLE OF CONTENTS

management of both assets and liabilities. Additionally, our Chief Credit Officer and loan review staff are directly responsible for overseeing our credit risk, and the Director Credit Risk Committee of the Bank’s board of directors oversees the credit risk for large loans, monitors portfolio credit metrics and approves credit risk policy changes.

We believe that establishing the right “tone at the top” and providing for full and open communication between management and our board of directors are essential for effective risk management and oversight. Our executive management meets regularly with our other senior officers to discuss strategy and risks facing the Company, including through meetings of its Senior Risk Committee. Executive officers attend many of the board meetings or, if not in attendance, are available to address any questions or concerns raised by the board on risk-management-related and any other matters. Additionally, each of our board-level committees provides regular reports to the full board and apprises of any areas of concern.

Compensation Committee Interlocks and Insider Participation

During 2025, Jennifer L. DiMotta, Richard T. Ramos and Jeffrey C. Smith served on our Compensation Committee. None of them has been an officer or employee of the Company. None of our executive officers serves or has served as a member of the board of directors, compensation committee or other board committee performing equivalent functions of any entity that has one or more executive officers serving as one of our directors or on our Compensation Committee.

Code of Business Conduct and Ethics

We have a Code of Business Conduct and Ethics in place that applies to all of our directors and employees. The code sets forth the standard of ethics that we expect all of our directors and employees to follow. Our code of business conduct and ethics is available on our website at www.midlandsb.com under “Investors — Corporate Governance — Governance Highlights.” In accordance with SEC rules, we intend to disclose on the “Investors” section of our website any amendments to the code, or any waivers of its requirements, that apply to our executive officers to the extent such disclosure is required.

Insider Trading Policy and Anti-Hedging Policy

We have adopted insider trading policies and procedures governing the purchase, sale or other dispositions of our securities by our directors, officers and employees that are reasonably designed to promote compliance with insider trading laws, rules and regulations, and the listing standards of the Nasdaq Stock Market.

In addition, our insider trading policy prohibits our directors, executive officers and employees from entering into any hedging transaction with respect to any of the Company’s securities. This prohibition includes the purchase or use of stock options, prepaid variable forward contracts, equity swaps, collars, exchange funds or any other instruments to directly offset any decrease in the market value of the Company’s securities. However, this prohibition does not apply to positions in broad-based exchange-traded mutual funds or exchange-traded funds containing stocks in the financial or banking sector.

Board Diversity

As of the date of this proxy statement, the board consists of eleven individuals, including one woman, who identifies as White, and ten men, one of whom identifies as Hispanic or Latino and nine of whom identify as White.

TABLE OF CONTENTS

Director Compensation

The following table sets forth information regarding 2025 compensation for each of our nonemployee directors. None of the directors receive any compensation or other payment in connection with his or her service as a director other than compensation received from the Company as set forth below.

Name	Fees Earned or Paid in Cash ($)		Stock Awards(1) ($)		Total ($)
R. Dean Bingham		63,000		45,000		108,000
Gerald J. Carlson		60,000		45,000		105,000
James F. Deutsch(2)		—		—		—
Jennifer L. DiMotta		51,000		45,000		96,000
Sherina Edwards(3)		24,000		—		24,000
Travis J. Franklin		48,000		45,000		93,000
Jerry L. McDaniel		57,500		45,000		102,500
Jeffrey M. McDonnell		46,000		45,000		91,000
Richard T. Ramos		56,000		45,000		101,000
Robert F. Schultz		68,000		45,000		113,000
Jeffrey C. Smith		114,000		45,000		159,000

(1)

The amounts set forth in the “Stock Awards” column reflect the aggregate grant date fair value of restricted stock units granted in 2025 in accordance with FASB ASC Topic 718. The assumptions used in calculating the stock award amounts are set forth in Note 14 to our consolidated financial statements filed with the SEC on our Annual Report on Form 10-K for the year ended December 31, 2025. The amounts shown are based on a fair market value of $17.32 for awards granted on June 30, 2025. Each of our directors then serving, aside from Mr. Ludwig, received a grant of fully vested restricted stock units on June 30, 2025. There were no outstanding unvested restricted stock units held by any nonemployee director as of December 31, 2025.

(2)

Mr. Deutsch was appointed to the Company’s board of directors on February 3, 2026.

(3)

Ms. Edwards resigned from the Company’s board of directors effective May 12, 2025.

Under our director compensation policy, nonemployee directors are provided with cash compensation and, except as described below, an annual equity award of restricted stock units under the 2019 LTIP (as defined below). Certain of our nonemployee directors defer a portion, or all, of their director compensation under the Director Deferred Compensation Plan.

Cash Compensation. Each nonemployee director receives a $40,000 annual retainer, except that the Chairman of the board is entitled to an annual retainer of $85,000. Company board committee chairs and members are also entitled to a fee for such service as follows (respectively):

•

Audit Committee: $15,000/$6,000

•

Risk Policy & Compliance Committee: $10,000/$5,000

•

Nominating and Governance Committee: $10,000/$5,000

•

Compensation Committee: $10,000/$6,000

In addition to the foregoing, any nonemployee director serving on the Director Credit Risk Committee is entitled to an additional annual fee of $18,000, and any such director serving on the trust committee of the Bank board is entitled to an additional annual fee of $3,000.

All cash compensation paid to nonemployee directors is earned and paid quarterly.

TABLE OF CONTENTS

Equity Compensation. Except as described below, each nonemployee director is also entitled to an annual equity award of fully vested restricted stock units with a grant date value of $45,000. The equity award is granted on June 30 of each year.

Compensation Arrangements for Mr. Deutsch. Mr. Deutsch is a senior partner of Patriot Financial Partners, L.P. (“Patriot”), a private equity fund specializing in investments in the financial services industry and current shareholder of the Company. At Mr. Deutsch’s request, any compensation to which he is entitled will be paid to Patriot. In addition, the Company and Mr. Deutsch have agreed that, in lieu of any equity awards that he would otherwise be entitled to receive, the Company will pay Patriot an amount in cash equal to the grant date value of such award.

CORPORATE RESPONSIBILITY

For more than 140 years, the Bank has strived to succeed by serving our customers and the communities in which they live. In furtherance of our goal of supporting a sustainable approach to business, we have installed solar power in 22 of our locations, and our corporate headquarters has been awarded LEED (Silver) Certification. Approximately 60% of our customers have embraced paperless statements, reducing waste and contributing to a sustainable future. Our Community Impact Investment goals and Community Development Plan are designed to ensure that we serve as a catalyst for strategic change. Midland’s Advanced Study for Talent Enrichment and Resource Training (MASTERS) program serves to develop future leaders within Midland, with approximately 68% of participants being women or minority employees. We provide employees with paid time off to volunteer, contributing their time and talents to recognized charities, causes, or not-for-profit community organizations. Since 2011, the Midland States Bank Foundation has donated approximately $2.0 million to nonprofit organizations in our footprint. In 2025, our employees dedicated over 500 volunteer hours to financial empowerment seminars in our communities, and since 2015, we have held more than 500 financial literacy seminars for low- to moderate-income and minority neighborhoods in our footprint.

The Company strives to maintain integrity through strong corporate governance practices. The Company’s Chair and CEO roles have been separate since 1988, and all directors, except our CEO, are “independent” under applicable SEC and Nasdaq standards. We have an executive compensation structure that rewards growth-oriented results while maintaining responsible risk management. Our clawback policy promotes accountability, and our long-standing commitment to governance means our board has included female, Hispanic, or African American representation since before we became a publicly traded company in 2016. In fact, Midland States Bank was one of the first banks in the nation to have a woman on our board back in 1903. Our approach to governance reinforces our commitment to risk management, with an Enterprise Risk Management program that follows the COSO 2013 framework to ensure we operate responsibly.

The information contained or referenced in this section of this proxy statement shall not be considered “filed” with the SEC, and such information shall not be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates this section of this proxy statement by reference in such filing.

TABLE OF CONTENTS

PROPOSAL 1 — ELECTION OF DIRECTORS

At the annual meeting, our shareholders will elect four Class I directors for a term expiring at the 2029 annual meeting of shareholders. The Company’s directors are divided into three classes having staggered terms of three years. As described further below, each of the four nominees is an incumbent director. Each nominee has consented to being a nominee and serving on the board, if elected, but if any of the nominees becomes unavailable for election, the holders of the proxies may vote for another nominee when voting at the meeting. Shareholders of the Company have no cumulative voting rights with respect to the election of directors.

Set forth below is information concerning the nominees for election and for the other directors whose terms of office will continue after the meeting.

The board of directors unanimously recommends that you vote “FOR” each of the nominees for director.

Nominees for Election

Name

Age

Position with the Company

Director
Since

Class I
Term expires 2029

Jennifer L. DiMotta

Director

2018

Jeffrey G. Ludwig

President, Chief Executive Officer and Director

2019

Richard T. Ramos

Director

2012

Jeffrey C. Smith

Chairman of the Board

2005

Continuing Directors

	Name	Age	Position with the Company	Director Since
Class II Term expires 2027	Gerald J. Carlson	67	Director	2024
	James F. Deutsch	70	Director	2026
	Travis J. Franklin	49	Director	2024
	Robert F. Schultz	61	Director	2002
Class III Term expires 2028	R. Dean Bingham	61	Director	2020
	Jerry L. McDaniel	61	Director	2012
	Jeffrey M. McDonnell	62	Director	2015

Each of our continuing directors listed above and, if elected, each of the nominees listed above, will hold office until the annual meeting of shareholders in the year indicated, or until their earlier resignation or removal. If a nominee fails to receive the affirmative vote of the majority of the votes of the shares represented at the meeting and entitled to vote, that nominee will not be elected, resulting in a vacancy on the board of directors. Under the Company’s Articles of Incorporation, the board of directors may fill any such vacancy, including by appointing the nominee who was not elected. There are no arrangements or understandings with any of the nominees pursuant to which they have been selected as nominees or directors.

The business experience of each nominee and continuing director, as well as their qualifications to serve on the board, is set forth below. Unless otherwise noted, nominees for director have been employed in their principal occupation with the same organization for at least the last five years. Other than as described below, no nominee, continuing director or executive officer has any family relationship, as defined in Item 401 of Regulation S-K, with any other director or with any of our executive officers.

TABLE OF CONTENTS

Jeffrey C. Smith

Background. Mr. Smith serves as the Chairman of the Company, a position he has held since 2020. He is a Principal and Managing Partner of Walters Golf Management, a golf club management company headquartered in St. Louis, Missouri, which manages a number of properties and offers turnkey management, construction management, acquisition, consulting, agronomics and remodeling/redecorating services. The company also has a revenue management business assisting facilities to improve annual green fee income through innovative software systems and methodologies. He has been with Walters Golf Management Group since 1996 and also serves on two not-for-profit philanthropic boards, The Greater St. Louis Golf Charities, and the Metropolitan Golf Foundation. Mr. Smith received his B.S. in Education from the University of Missouri.

Skills and Qualifications. Our board considered Mr. Smith’s business experience, his management experience as the managing partner of a business and his knowledge of the business community in our St. Louis market area in determining that he should be a member of our board.

Jeffrey G. Ludwig

[MISSING IMAGE: ph_ludwigjeffrey-4c.jpg]

Background. Mr. Ludwig serves as President and Chief Executive Officer of the Company, positions he has held since March 2018 and January 2019, respectively, and as Chief Executive Officer of the Bank since March 2018. Prior to those appointments, Mr. Ludwig served as Executive Vice President of the Company and the Bank since 2010, and also as Chief Financial Officer of the Company and the Bank from November 2006, when he joined the Company and the Bank, through November 2016 and from October 2017 until March 2018. Mr. Ludwig also previously served as President of the Bank from November 2016 until he was promoted to Chief Executive Officer of the Bank in March 2018. He serves on the Company’s Executive Committee. Prior to joining the Company, Mr. Ludwig held the positions of Associate Director, Corporate Reporting, for Zimmer Holdings, Inc., an NYSE-listed company in Warsaw, Indiana, from 2005 to 2006; Director of Corporate Accounting for Novellus Systems, Inc., a Nasdaq-listed company in San Jose, California, from 2002 to 2005; and various positions, including Senior Manager — Audit & Advisory Services, for KPMG LLP in its banking practice in St. Louis, Missouri, from 1993 to 2000 and in its technology practice in Mountain View, California, from 2000 to 2002.

In addition to his positions at the Company, Mr. Ludwig serves as a member of the Federal Advisory Council of the Board of Governors of the Federal Reserve System. Mr. Ludwig received his B.S. in Accounting from Eastern Illinois University.

Skills and Qualifications. Our board considered Mr. Ludwig’s positions as President and Chief Executive Officer of the Company, his experience in executive officer roles within the Bank, and his long-standing relationships within the business community in determining that he should be a member of our board.

TABLE OF CONTENTS

R. Dean Bingham

Background. Mr. Bingham has served on the board of directors of the Bank since 2018 and joined the board of directors of the Company in 2020. Beginning in January 2025, Mr. Bingham served as the Vice Chairman of the Board of Agracel, Inc. Prior to becoming Vice Chairman, Mr. Bingham served as President, and then Chief Executive Officer of Agracel, an industrial developer of facilities for manufacturing and high-tech entities in small to midsized communities, from 1994 to 2024. Throughout his career, Mr. Bingham has been directly involved with the development of over 25 million square feet of industrial projects on long term leases, focused primarily in tertiary markets with an emphasis on manufacturing. Mr. Bingham received his B.S. in Industrial Engineering from the University of Illinois.

Skills and Qualifications. Our board considered Mr. Bingham’s business experience, his management experience as the President of a business and his knowledge of the business community in determining that he should be a member of our board.

Gerald J. Carlson

Background. Mr. Carlson joined the Company’s board of directors in February 2024 and serves as Chair of our Audit Committee. He previously served as Managing Partner of KPMG for the firm’s Washington, D.C. metropolitan and Chesapeake regions, a position he held from 2013 until his retirement in 2019. Prior to that, Mr. Carlson served as Managing Partner of KPMG’s St. Louis office, which position he held since 2008. Throughout his career, Mr. Carlson served as an audit partner and advisor to private and publicly held clients, including a number of Fortune 500 companies. As a Managing Partner of KPMG, Mr. Carlson was responsible for leading a culture of ethics and integrity, developing marketplace strategies for growth, overseeing high-quality client service, attracting and retaining key resources and representing KPMG in the marketplace. Mr. Carlson has served on the boards of many organizations, including currently serving on the boards of two private equity backed companies, the Great Rivers Greenway Foundation, Connected DMV, and the Dean’s Advisory Board of the Robert S. Trulaske School of Business at the University of Missouri — Columbia. He previously served on the boards of the Greater Washington Board of Trade, the Regional Business Council, and Catholic Charities of the Archdiocese of St. Louis, among others. Mr. Carlson holds a B.A. in Accounting and a Master’s Degree in Accounting from University of Missouri — Columbia.

Skills and Qualifications. Our board considered Mr. Carlson’s business and leadership experience as a managing partner of a professional services and audit firm, his experience with both public and private sectors, his knowledge of corporate governance and his accounting experience in determining that he should be a member of our board.

TABLE OF CONTENTS

James F. Deutsch

Background. Mr. Deutsch has over 40 years of experience in banking. Currently, he is a senior partner with Patriot Financial Partners, L.P., a private equity firm based in Radnor, Pennsylvania, and has been with Patriot since January 2012. Prior to joining Patriot in 2012, he served as president, CEO, and founder of Team Capital Bank, a privately held institution headquartered in Bethlehem, Pennsylvania. Before Team Capital, Mr. Deutsch spent over 25 years with Commerce Bank, Brown Brothers Harriman, and Summit Bank. At those banks, he held various management positions in commercial banking, investment banking, and corporate finance. At Patriot, Mr. Deutsch is a member of the Investment Committee, and he also has responsibility for new investment opportunities. He has served on the board of directors of more than ten banks ranging in size from $1 billion to $30 billion in assets. Outside of Patriot, Mr. Deutsch has served on the boards of many not-for-profit agencies and served as Chair on several of those, including the State Theatre, Valley Youth House, and Minsi Trails Boy Scouts. Mr. Deutsch currently serves on the board of Avidbank Holdings, Inc. and previously served on the boards of directors of the following public companies: Trinity Capital (January 2017 – March 2019); MBT Financial (May 2015 – September 2019); Enterprise Financial Services Corporation (March 2019 – April 2021); and Pacific Mercantile Bancorp (November 2018 – October 2021). Mr. Deutsch received his B.S. in Finance and his MBA from Lehigh University.

Skills and Qualifications. Our board considered Mr. Deutsch’s extensive experience in banking and the financial services industry and community leadership in determining that he should be a member of our board.

Jennifer L. DiMotta

[MISSING IMAGE: ph_dimottajennifer-4c.jpg]

Background. Mrs. DiMotta is Co-Founder and Managing Partner of Dundee Growth Partners, an operator-led growth firm that partners with founder-led businesses to drive profitable scale across all industries. At Dundee Growth Partners, she works closely with CEOs and leadership teams to build scalable operating models, strengthen financial discipline, and accelerate sustainable growth.

She is also the Founder of Uprisors, a leadership development platform designed to help high-performing women advance into senior executive roles through a structured, six-step leadership system that integrates leadership development, financial acumen, and personal sustainability.

Previously, Mrs. DiMotta served as President of DiMotta International LLC, an international consulting firm focused on digital transformation, leadership development, and aggressive sales growth. Prior to that, she held senior executive roles across global retail organizations, including Executive Vice President and Chief Marketing Digital Officer of MediaMarktSaturn, Europe’s largest consumer electronics retailer. Earlier in her career, she served as Vice President of Digital and Omnichannel at Bluemercury Inc., Vice President of eCommerce at Sports Authority, Inc., and Senior Director of eCommerce at Office Depot, where she led enterprise-level eCommerce and digital marketing transformation initiatives.

Mrs. DiMotta holds a Bachelor of Arts in Criminal Justice from the University of Nebraska and a Master’s Degree in Leadership from Bellevue University.

Skills and Qualifications. Our board considered Mrs. DiMotta’s more than 20 years’ experience in leadership and management, business development, and information technology, including omnichannel strategies, in determining that she should be a member of our board.

TABLE OF CONTENTS

Travis J. Franklin

Background. Mr. Franklin is the Executive Vice President and Chief Financial Officer of Heartland Dental, LLC, a leading dental support organization that provides operational support to dental practices nationwide, a position he has held since 2016. Prior to joining Heartland Dental he served as Chief Investment Officer for a family office. Mr. Franklin holds a B.S. in Business Management and an M.B.A. from Eastern Illinois University.

Skills and Qualifications. Our board considered Mr. Franklin’s business and leadership experience as a chief financial officer of a large private company and his accounting experience in determining that he should be a member of our board.

Jerry L. McDaniel

[MISSING IMAGE: ph_mcdanieljerry-4c.jpg]

Background. Mr. McDaniel, who serves as Chair of our Nominating and Corporate Governance Committee, is President of Superior Fuels, Inc., whose principal business was the wholesale supply of propane and petroleum products prior to the sale of these business lines and which now holds various real estate investments, a position he has held since 2007, and President of Dirtbuster Carwash LLC, which operates carwashes in Southern Illinois and Indiana. In addition to his ownership of these businesses, Mr. McDaniel is a principal in other businesses, including real estate development. Mr. McDaniel is a licensed pilot and previously served on the board of the Southeastern Illinois Community Foundation from 2013 to 2020. Prior to joining our board, Mr. McDaniel served as a director of another local community bank.

Skills and Qualifications. Our board considered Mr. McDaniel’s experience in starting and running several local businesses, his broad investment experience and his prior service as a director of a community bank in determining that he should be a member of our board.

Jeffrey M. McDonnell

Background. Mr. McDonnell is Chief Executive Officer of J&J Management Services, Inc., a private management company, a position he has held since 2012, and prior to that as President and Chief Compliance Officer since 1997. Prior to Midland’s acquisition of Heartland Bank in December 2014, Mr. McDonnell was a director of Heartland Bank and its parent company, Love Savings Holding Company. Mr. McDonnell holds a B.A. in Economics from Princeton University, an M.B.A. from the University of Michigan and a certification as a Chartered Financial Analyst.

Skills and Qualifications. Our board considered Mr. McDonnell’s service on the boards of Love Savings Holding Company and Heartland Bank and his other business experience in determining that he should be a member of our board.

TABLE OF CONTENTS

Richard T. Ramos

Background. Mr. Ramos, who serves as Chair of our Compensation Committee, is Senior Vice President, Chief Financial Officer of Maritz Development, operating unit of Maritz Holdings, Inc., headquartered in St. Louis, Missouri. Prior to this position, Mr. Ramos was the Executive Vice President of Maritz Holdings, Inc. Maritz specializes in the design and development of incentive, reward and loyalty programs focused on improving workforce quality and customer satisfaction. He has been with Maritz since 2000. Prior to joining Maritz, Mr. Ramos served as Chief Financial Officer for Purcell Tire and Rubber Company, practiced corporate law at the firm of Blumenfeld, Kaplan and Sandweiss in St. Louis, and was a senior manager at KPMG LLP. He received his B.S. in Business Administration from the University of Missouri in St. Louis and his J.D. from St. Louis University School of Law. Mr. Ramos is a Certified Public Accountant (inactive) and a member of the Missouri Bar.

Skills and Qualifications. Our board considered Mr. Ramos’s experience as a chief financial officer and board member and his accounting acumen in determining that he should be a member of our board.

Robert F. Schultz

[MISSING IMAGE: ph_schultzrobert-4c.jpg]

Background. Mr. Schultz serves as Managing Partner of the J.M. Schultz Investment, L.L.C., a private family office. He has been with this organization since 1989. Since 1996, he also has served as Chairman of the Board of Directors of AKRA Builders Inc., a multi-state construction, design-build and project management firm headquartered in Teutopolis, Illinois. Prior to joining the Company’s board of directors, he served on the board of directors of Prime Banc Corp. and First National Bank of Dieterich. He also serves as a founding board member of national, state and regional non-profit organizations focused on social services and student education. Mr. Schultz received his B.S. in Finance from the University of Illinois and a J.D. from the University of Notre Dame Law School.

Skills and Qualifications. Our board considered Mr. Schultz’s business and investment experience, his experience as a director of other community banks, and his knowledge of the business community in our central Illinois market area in determining that he should be a member of our board.

The business experience for each of our executive officers not discussed above is as follows:

Jeffrey S. Mefford. Mr. Mefford, age 60, serves as Executive Vice President of the Company and President of the Bank, positions he has held since March 2018. As previously disclosed, he has informed the Company and the Bank of his plan to retire, effective June 30, 2026. Mr. Mefford has been with the Bank since 2003, and prior to his appointment as Executive Vice President of the Company and President of the Bank, he served as the Bank’s Executive Vice President — Banking since October 2010. Prior to serving as Executive Vice President — Banking, Mr. Mefford served as the Bank’s Illinois Region Market President, responsible for the banking offices in our central Illinois market. Prior to joining the Bank, Mr. Mefford held the position of President and Chief Executive Officer of Farmers State Bank of Camp Point in Camp Point, Illinois, from 2000 to 2003. Mr. Mefford received his B.S. in Business Administration from Illinois College and his M.B.A. from William Woods University.

Jeremy A. Jameson. Mr. Jameson, age 45, serves as Executive Vice President and Chief Credit Officer of the Bank, a position he has held since July 2024, and the Bank plans to promote him to the newly-created role of Executive Vice President — Chief Banking Officer, effective March 31, 2026, in connection with Mr. Mefford’s anticipated retirement. Prior to joining the Bank, Mr. Jameson served as the Executive Vice President and Chief Credit Officer of Battle Bank from October 2022 to July 2024 and as the Senior Vice President and Director of Credit Policy & Administration at Enterprise Bank & Trust from April 2016 through October 2022. Previously, Mr. Jameson held positions at various other banks, and he has over 20 years of experience in the banking industry. He received his B.S. in Finance from Iowa State University and graduated from Louisiana State University’s Graduate School of Banking.

TABLE OF CONTENTS

Claire A. Stack. Ms. Stack, age 37, serves as the Company’s Vice President — Chief Accounting Officer and interim Chief Financial Officer. Prior to her appointment to these positions on March 5, 2026, she served as the Company’s Corporate Controller, since joining the Company in November 2025. Ms. Stack brings more than fifteen years of accounting and finance leadership experience within the financial services sector, including public bank accounting, SEC reporting, internal controls, and audit and regulatory compliance. She is a Certified Public Accountant (CPA) and previously served as Corporate Controller at Steelcase, Inc., a publicly traded furniture company, and held various senior leadership positions in accounting and finance at CliftonLarsonAllen LLP, a public accounting firm, Agracel, Inc., an industrial real estate developer, PricewaterhouseCoopers LLP, and KPMG LLP. She holds a Bachelor of Science in Accounting and Technology Management from Indiana University’s Kelley School of Business.

Daniel E. Casey. Mr. Casey, age 54, serves as the Bank’s Executive Vice President and Chief Risk Officer, a position he has held since May 2023. Prior to joining the Bank, Mr. Casey was the Managing Director, Global Head of Credit Portfolio Management (Integrated Supply and Trading) at BP plc from 2009 to 2023. He also held positions at ABN AMRO Bank N.V./ LaSalle Bank, N.A., as Managing Director, Portfolio Strategist and Global Head of Markets (Group Treasury) from 2004 to 2009, and Bank One, N.A. as Director, Credit Portfolio Group from 2002 to 2004. Mr. Casey received his B.S. in Finance from Eastern Illinois University and his M.B.A. from St. Xavier University, Graham School of Management.

TABLE OF CONTENTS

COMPENSATION DISCUSSION AND ANALYSIS

This Compensation Discussion and Analysis (“CD&A”) explains our executive compensation program for our named executive officers (“NEOs”) listed below. This CD&A also describes the Compensation Committee’s process for making pay decisions, as well as its rationale for specific decisions related to the fiscal year ended December 31, 2025.

Name			Position
Jeffrey G. Ludwig			President and Chief Executive Officer
Jeffrey S. Mefford			Executive Vice President and President of the Bank
Jeremy A. Jameson			Executive Vice President and Chief Credit Officer
Eric T. Lemke(1)			Senior Vice President and Chief Financial Officer
Daniel E. Casey			Executive Vice President and Chief Risk Officer of the Bank

(1)

On March 5, 2026, Mr. Lemke was terminated from his position as Chief Financial Officer

EXECUTIVE SUMMARY

2025 Compensation Highlights

We compensate our NEOs with a combination of base salary, annual cash incentive bonuses, long-term equity incentive awards, and other benefits, including perquisites. Our executive compensation program is designed to attract, retain and motivate qualified and talented executives to achieve our short- and long-term business goals and create shareholder value.

Based on our performance and consistent with the design of our program, the Compensation Committee made the following executive compensation decisions for fiscal year 2025:

•

Base Salaries. The Compensation Committee maintained base salaries for Messrs. Ludwig, Mefford and Lemke at their 2024 levels. Mr. Casey received a mid-year base salary increase of approximately 4.5%. See “2025 Executive Compensation Program in Detail” within this CD&A section for more information.

•

Annual Cash Incentive Bonuses. For 2025, the Compensation Committee refined the performance metrics that drive annual incentives to place explicit and equal emphasis on profitability and credit quality by retaining adjusted earnings per share as a core profitability measure and replacing adjusted revenue with a non-performing assets to total assets metric, while continuing to emphasize core operating performance through adjusted pre-tax, pre-provision income. In connection with this change, the Compensation Committee eliminated the prior risk-based capital and asset quality qualifying metrics, reflecting its view that credit quality and capital discipline are more effectively addressed through direct, weighted performance measures rather than post-performance adjustments. Based on performance for 2025, the Compensation Committee approved award payouts at 40% of target under the Company’s Corporate Bonus Plan. See “2025 Executive Compensation Program in Detail” within this CD&A section for more information.

•

Long-Term Equity Incentive Awards. The Compensation Committee granted equity awards using 100% restricted stock, which are subject to four-year vesting schedules.

Compensation Best Practices

Our Compensation Committee considers it important to design our compensation program in accordance with best practices for public companies, while continuing to be able to recruit and retain superior executive talent.

TABLE OF CONTENTS

	What We Do			What We Do Not Do
	• Use performance-based incentives as a significant portion of our NEOs’ total compensation • Use peer group benchmarking to inform compensation decisions • Condition short-term incentive-based compensation on key performance metrics (non-performing assets/total assets, adjusted earnings per share and adjusted pre-tax pre-provision income) • Condition annual long-term incentives on four-year equal tranche vesting • Have a clawback policy for incentive compensation that is compliant with SEC and NASDAQ rules • Have stock ownership guidelines for executives and directors • Provide for severance payments only upon an involuntary termination of employment where the termination was without cause or for “good reason” (whether or not such termination is in connection with a change in control) • Conduct an annual risk-based assessment of our compensation program			• Provide tax gross-ups, except for those available to all employees generally • Include walk-away severance payments or single-trigger cash payments upon a change in control • Provide single-trigger vesting of equity awards in change of control transactions for awards granted under our 2019 Long-Term Incentive Plan • Re-price equity awards without prior shareholder approval • Allow hedging of Company stock • No liberal change in control definition in individual contracts or equity plans and no unspecified treatment of equity awards in the event of a change in control • Offer any executive pension plans • Have employment agreements that provide for guaranteed salary increases, cash incentive bonuses, or equity incentive compensation

Prior Year’s Say-on-Pay Vote

At the Company’s 2025 annual meeting of shareholders, the nonbinding, advisory proposal to approve the compensation of certain executive officers received the approval of approximately 87% of the shares having voting power and present at the meeting. The Company, the board of directors and the Compensation Committee pay careful attention to shareholder feedback regarding executive compensation, including the nonbinding, advisory vote, and believe that the vote reflects our shareholders’ support of our compensation philosophy and the manner in which we compensate our NEOs. The Compensation Committee generally considered the strong support for the advisory vote on executive compensation as part of its evaluation of the 2025 compensation program.

We will continue to review, evaluate and modify the structure and design of our program to meet its objectives, promote strategic growth, increase value for our shareholders, and maintain a competitive executive compensation package in relation to our peers.

WHAT GUIDES OUR PROGRAM

Compensation Philosophy and Objectives

We strive to be among the top performing community banks in the nation. While our operations are primarily located in Illinois and the St. Louis metropolitan area in Missouri, we measure our performance on both a local and national level. Our compensation philosophy reflects this vision and strategy.

We structure our executive compensation program to align our NEOs’ compensation with both our short-term and long-term business objectives and the creation of shareholder value. By doing so, our executive compensation program enables us to attract, retain, and motivate executive officers who contribute to our financial performance and success. In particular, we do the following:

TABLE OF CONTENTS

•

use short-term performance-based incentives, which are conditioned on the achievement of certain non-performing assets/total assets, adjusted earnings per share, adjusted pre-tax, pre-provision income targets that focus our executive team on sustaining top-level performance of the Company, as a meaningful portion of our NEOs’ total compensation;

•

provide long-term equity incentive awards that focus our executive team on creating long-term value for our shareholders and incentivize long-term executive retention;

•

ensure a sufficient base level of annual salary in both strong and weak economic markets to attract and retain national-level executive talent; and

•

conduct, through our Risk Management Department, an annual risk-based assessment of our compensation program to help ensure our overall compensation program is designed to incentivize long-term shareholder growth without incentivizing short-term risk taking.

In evaluating our compensation packages, the Compensation Committee is mindful of the need to compete for national-level executive talent and attract talent to Effingham, Illinois, the location of our corporate headquarters. In this endeavor, one of our challenges has been persuading top-level talent, often from major metropolitan areas, to relocate to and remain in Effingham, which is a town of slightly more than 12,000 people situated approximately two hours from St. Louis, Missouri and Indianapolis, Indiana. As a result, our executive compensation program offers compensation packages that are competitive with those offered by our peers, regardless of locality.

While the Compensation Committee considers the pay practices of our peers as one of many factors in establishing our executive compensation program, it does not set compensation at a specific percentile of our peers. As discussed in more detail below, the Compensation Committee has established a selective group of peers with the assistance of our independent compensation consultant.

Elements of Compensation

Our compensation philosophy is supported by the following principal elements of compensation:

Pay Element	How It’s Paid	Purpose
Base Salary	Cash (Fixed)	Provide competitive and consistent compensation relative to similar positions in the market and enable the Company to attract and retain critical executive talent.
Annual Incentives	Cash (Variable)	Reward executive officers for delivering on annual strategic objectives.
Long-Term Incentives	Equity (Variable)	Provide incentives for our NEOs to create shareholder value and retain our NEOs through long-term vesting.

Pay Mix

The charts below show the target annual total direct compensation of our CEO and our other NEOs for fiscal 2025. These charts illustrate that a meaningful portion of executive compensation is variable (58% for our CEO and an average of 52% for our other NEOs).

TABLE OF CONTENTS

The Decision-Making Process

The Role of the Compensation Committee. The Compensation Committee oversees the executive compensation program for our NEOs. The Compensation Committee is comprised of independent, non-employee members of the Board. The Compensation Committee works very closely with its independent consultant and management to examine the effectiveness of the Company’s executive compensation program throughout the year. Details of the Compensation Committee’s authority and responsibilities are specified in its charter, which may be accessed at www.midlandsb.com under “Investors — Corporate Governance — Governance Highlights.”

Role of Executive Officers. None of our NEOs participates in or makes recommendations with respect to the determination of their own compensation. The Compensation Committee is responsible for all compensation decisions affecting our Chief Executive Officer. Additionally, the Compensation Committee sets the terms of the performance-based annual cash incentive bonuses and long-term equity incentive awards for all our NEOs and determines the actual payouts of such bonuses and awards. Our Chief Executive Officer recommends salary adjustments for the other NEOs, which the Compensation Committee reviews and approves prior to adjustments becoming effective.

Use of Independent Consultants. The Compensation Committee has authority to retain, at the Company’s expense, outside counsel, experts, compensation consultants and other advisors, as needed. For 2025, the Compensation Committee retained Pearl Meyer & Partners, LLC (“Pearl Meyer”) as an independent compensation consultant to advise it on compensation matters. In 2025, Pearl Meyer’s specific services to the Compensation Committee included reviewing and updating, as appropriate, our compensation philosophy; analyzing our NEO and director compensation levels, including based on our peer group; reviewing the alignment of CEO pay with bank performance, and analyzing our equity utilization. Pearl Meyer also provided reports to the Compensation Committee on market compensation trends and developments.

In its engagement of Pearl Meyer, the Compensation Committee considered the independence of its compensation advisor under applicable SEC and Nasdaq listing rules and concluded there was no conflict of interest with respect to their engagement.

The Role of Peer Group Companies. The Compensation Committee strives to set a competitive level of total compensation for each NEO as compared with executive officers in similar positions at peer companies. The Compensation Committee reviews the composition of the peer group on an annual basis to ensure that it continues to be appropriate.

The peer group used for the purpose of setting 2025 compensation levels was the same peer group used in 2023 and 2024. This peer group was originally established following a comprehensive and in-depth assessment by the Compensation Committee, conducted with the support of Pearl Meyer, to ensure that the selected companies appropriately reflected the Bank’s size, scope, and market position. In conducting this review, the Compensation Committee considered objective screening criteria, including asset size, business mix, geographic footprint, and overall organizational complexity, as well as qualitative factors such as business model and strategic profile. The assessment also incorporated a review of the broader marketplace to identify any necessary additions or removals, resulting in significant and appropriate changes to the peer group at that time. During its 2024 review of the peer group, the Compensation Committee determined that the current group of peer companies remained appropriate for 2025 compensation decisions.

Our peer group companies for 2025 were as follows:

City Holding Company	First Merchants Corporation	Park National Corporation
Community Trust Bancorp, Inc.	German American Bancorp, Inc.	Peoples Bancorp Inc.
Enterprise Financial Services Corp	Horizon Bancorp, Inc.	QCR Holdings, Inc.
FB Financial Corporation	Independent Bank Corporation (MI)	S&T Bancorp, Inc.
First Bancorp	Lakeland Financial Corporation	Sandy Spring Bancorp, Inc.
First Busey Corporation	Northwest Bancshares, Inc.	Tompkins Financial Corporation
First Commonwealth Financial Corp	Origin Bancorp, Inc.	Tompkins Financial Corporation

TABLE OF CONTENTS

It is important to note that this peer group and other market data provided by Pearl Meyer is not the sole determinant in setting pay levels for our NEOs. The Compensation Committee also considers Company and individual performance and the nature of an individual’s role within the Company, as well as his or her experience and contributions to his or her current role when making its compensation-related decisions.

2025 EXECUTIVE COMPENSATION PROGRAM IN DETAIL

Base Salary

Base salary represents annual fixed compensation and is a standard element of compensation necessary to attract and retain executive leadership talent. The Compensation Committee reviews and approves the base salaries of our NEOs and sets the compensation of our Chief Executive Officer. In setting the base salary of each NEO, the Compensation Committee relies on market data provided annually by our independent compensation consultant and survey data from industry resources. Salary levels are typically considered annually as part of our executive compensation review process and upon a promotion or other change in job responsibility.

After the Compensation Committee’s annual review of NEO base salaries it determined that base salaries for most NEOs would remain unchanged for 2025. Accordingly, the base salaries of Messrs. Ludwig, Mefford and Lemke were maintained at their 2024 levels. Mr. Casey received a mid-year base salary increase of approximately 4.5% to improve his competitive positioning relative to the market. In making these determinations, the Compensation Committee considered individual performance, market positioning, and the Company’s overall performance. The table below states the base salaries for our NEOs in 2024 and 2025.

Name	2024 Base Salary			2025 Base Salary			Increase
Jeffrey G. Ludwig		$	749,800		$	749,800		N/A%
Jeffrey S. Mefford			525,000			525,000		N/A%
Jeremy A. Jameson(1)			N/A			525,000		N/A%
Eric T. Lemke			437,400			437,400		N/A%
Daniel E. Casey(2)			334,800			350,000		4.5%

(1)

Mr. Jameson was not a NEO in 2024. Mr. Jameson’s base salary was increased mid-year 2025 to the level reflected.

(2)

Mr. Casey’s salary was increased mid-year 2025 to the level reflected.

Annual Cash Incentive Bonus — Corporate Bonus Plan

The Compensation Committee believes that performance-based compensation can and should incentivize our NEOs to drive the Company’s growth, balanced with the assumption of reasonable risk. Accordingly, we account for several performance- and risk-based metrics in their annual cash incentive bonuses.

Annual cash incentive bonuses may be earned in accordance with the terms of the Company’s Corporate Bonus Plan (the “Bonus Plan”). Actual payouts depend on the achievement of pre-determined financial performance objectives and can range from 0% to a cap of 198% of target award amounts. Target annual award opportunities are expressed as a percentage of base salary and were established based on the NEO’s level of responsibility and their ability to impact the Company’s overall financial results. To emphasize corporate performance, 100% of the bonus opportunities available to our NEOs are conditioned on Company performance.

On a year-by-year basis, the Compensation Committee structures the Bonus Plan by selecting and weighting annual financial goals under which bonuses may be earned. In accordance with the weighting assigned by the Compensation Committee, our NEOs are eligible to earn a portion of their target cash incentive bonuses if the Company attains a sufficient level of performance for a particular metric. If we fail

TABLE OF CONTENTS

to attain more than 90% of the target performance goal for any performance metric, our NEOs earn no amount of their target bonuses subject to such metric. If we achieve greater than 90% but less than 100% of the target performance goal for any performance metric, our NEOs earn between 50% and 100% of the amount of their target bonuses subject to such metric, with actual payouts determined based on a sliding scale. If we achieve above 100% of a performance goal, the NEOs will earn an increased percentage of the amount of their target bonuses. Performance at or above 130% of target for the adjusted EPS and adjusted pre-tax pre-provision measures results in a maximum payout of 250% of target for each of these measures. Payouts for the nonperforming assets to total assets measure are capped at the target level.

Annual cash incentive bonuses are based on the level of achievement of financial metrics selected by the Compensation Committee for the respective year. As described in this CD&A under “Executive Summary — 2025 Compensation Highlights above, the annual cash incentive bonuses for our NEOs in 2025 were based upon the following Company performance metrics:

•

Non-Performing Assets/Total Assets — 35% of the annual cash incentive bonus was based upon achieving a specified non-performing assets to total assets goal for the year, defined as the total amount of non-performing assets, which includes non-accrual loans, loans 90 days or more past due and still accruing interest, and other real estate owned, divided by the amount of total assets (“NPA/Total Assets”).

•

Adjusted Earnings Per Share — 35% of the annual cash incentive bonus was based upon achieving a specified earnings per share goal for the year, as adjusted for certain items, including loss on sales of investment securities, net, and gain on repurchase of subordinated debt (“Adjusted EPS”).

•

Adjusted Pre-Tax, Pre-Provision Income — 30% of the annual cash incentive bonus was based upon achieving a specified pre-tax, pre-provision income goal for the year, as adjusted for certain items, including loss on sales of investment securities, net, and gain on repurchase of subordinated debt (“Adjusted PTPP Income”).

The table below summarizes the components and results of the Bonus Plan for our NEOs for the 2025 fiscal year.

2025 Metric (dollars in thousands, except per share data)	Metric Weight		Threshold Goal			Target Goal			Actual Result			Percent Attained		Payout Percentage
NPA/Total Assets		35%			1.39%			1.55%			1.02%		100%		35%
Adjusted EPS		35%		$	2.57		$	2.85		$	1.46		0%		0%
Adjusted PTPP Income		30%		$	100,198		$	111,331		$	104,234		70%		21%
Total Payout															56%

The Compensation Committee oversees performance throughout the fiscal year, evaluating progress against set objectives, and has the discretion to consider adjustments for exceptional items that may distort the assessment of normal operating performance, such as costs related to restructuring, acquisitions, legal matters, and pandemic-related impacts. These adjustments aim to maintain fairness to both participants and shareholders, while also fostering actions that promote the long-term health of the business and align with predetermined performance goals. For 2025, the Compensation Committee elected to exercise its discretion to decrease the incentive bonuses for our NEOs from 56% of target level to 40% of target level.

Based upon achievement against the performance metrics for 2025, the Corporate Bonus Plan funded at levels that would have resulted in payouts above those ultimately approved. After considering overall performance and stock price results, the Compensation Committee exercised its discretion to reduce bonus payouts to levels it believed appropriately reflected Company performance, shareholder experience, and investor expectations. The table below summarizes the annual cash incentive bonus targets and actual payouts for each NEO for the 2025 fiscal year.

TABLE OF CONTENTS

Name	2025 Target (% of Salary)		Actual Bonus (% of Salary)		Actual Bonus ($)
Jeffrey G. Ludwig		65%		26%		194,956
Jeffrey S. Mefford		60%		24%		126,000
Jeremy A. Jameson		65%		26%		118,662
Eric T. Lemke		40%		16%		69,987
Daniel E. Casey		40%		16%		54,498

Long-Term Equity Incentive Awards

The Compensation Committee believes that equity awards serve to align each officer’s interests with those of our shareholders. The equity awards held by our NEOs and reflected in the compensation tables below all relate to awards made under our 2019 Long-Term Incentive Plan (the “2019 LTIP”) or its predecessor plans.

The Compensation Committee typically grants equity awards to each NEO at the time the individual is hired and, thereafter, on an annual basis as part of our overall executive compensation program. The Compensation Committee grants equity awards to encourage our NEOs to stay with, and maximize the performance of, the Company over the long term and to discourage excessive focus on short-term metrics at the expense of the long-term health of the organization.

In November 2025, the Compensation Committee granted equity awards using 100% restricted stock as follows:

Name	Shares of Restricted Stock		Per Share Fair Value			Actual Grant Date Fair Value
Jeffrey G. Ludwig		38,410		$	14.64		$	562,322
Jeffrey S. Mefford		23,310		$	14.64		$	341,258
Jeremy A. Jameson		23,310		$	14.64		$	341,258
Eric T. Lemke		14,940		$	14.64		$	218,721
Daniel E. Casey		10,760		$	14.64		$	157,526

Each grant of restricted stock awards vests annually in equal portions on the first four anniversaries of the grant date, assuming the executive’s employment has not previously terminated. Each grant also vests in full upon an involuntary termination in connection with a change in control of the Company or the NEO’s termination of employment due to death or disability. The grant date fair value of the restricted stock awards in 2025 was determined based on a share price of $14.64, the closing share price of the Company’s common stock as of the trading day immediately prior to the date of grant.

In addition to the equity awards described above, on May 5, 2025, Mr. Jameson received an additional award of 27,278 shares of restricted stock. As with the other awards described above, this award vests annually in equal portions on the first four anniversaries of the grant date, assuming Mr. Jameson’s employment has not previously terminated. The grant also vests in full upon an involuntary termination in connection with a change in control of the Company or Mr. Jameson’s termination of employment due to death or disability. The grant date fair value of the award was determined based on a share price of $18.33, the closing share price of the Company’s common stock as of the trading day immediately prior to the date of grant.

OTHER PRACTICES, POLICIES & GUIDELINES

Stock Ownership Guidelines

The Board believes that executive officers and directors of the Company should own and hold Company common stock (“MSBI Stock”) to further align their interests with the long-term interests of

TABLE OF CONTENTS

Company shareholders and further promote the Company’s commitment to sound corporate governance. Effective January 1, 2025, the guidelines are as follows:

Title			Guideline
CEO			3x base salary
Other Section 16 Officers			2x base salary
Directors			5x cash retainer

Shares owned outright by the executive officer/director or his or her immediate family members residing in the same household; shares held in trust for the benefit of the executive officer/director or his or her immediate family members residing in the same household; vested and unvested restricted stock awards; and vested deferred stock units, restricted stock units or performance share units that may only be settled in shares all count toward meeting the guidelines.

Executives and directors are expected to reach the required ownership level within five years of their appointment or election to their respective roles. Unless an executive or director has satisfied his or her applicable guideline level, until the guideline level is satisfied, they are required to retain an amount equal to 25% of the shares of MSBI Stock (or net shares where applicable) received as the result of the exercise, vesting or payment of any MSBI equity awards. The Company will regularly review and report on compliance with these Guidelines, and adjustments to the Guideline levels may be made as necessary to reflect changes in executive/director compensation or Company performance. As of December 31, 2025, each of the NEOs was in compliance with the guidelines.

Clawback Policy

In November 2023, our Board adopted a clawback policy in accordance with Securities and Exchange Commission rules and the listing standards of the Nasdaq Stock Market LLC (Nasdaq), a copy of which is filed as an exhibit to our Annual Report on Form 10-K. The policy requires that we recoup certain cash and equity incentive compensation paid to or deferred by certain executives in the event the Company is required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under the federal securities laws, and the compensation would not have been awarded under the restated financial information, subject to the other terms and limitations set forth in the policy.

During the year ended December 31, 2025, the Company was required to prepare an accounting restatement of its financial statements as of and for the year ended December 31, 2023, for the year ended December 31, 2022, and for the interim quarterly periods in 2024 and 2023. The errors related to the Company’s accounting for loans originated pursuant to third-party loan origination and servicing programs, which go back as far as 2012. For additional information, please see Note 25 to the Company’s audited financial statements as of and for the period ended December 31, 2024.

In accordance with the Company’s clawback policy, the Audit Committee reviewed the incentive-based compensation, as such term is defined under the clawback policy, that was received by each of the Company’s current and former executive officers on or after October 2, 2023, which was the effective date of the clawback policy, and that was granted in whole or in part based on financial reporting measures, as such term is defined in the clawback policy, for the periods covered by the restatement, which included incentive-based compensation granted in 2025 and 2024 based on financial reporting measures for the years ended December 31, 2024 and 2023, respectively. In addition, the Audit Committee determined the amount of incentive-based compensation that would have been received by each such executive officer had it been determined based on the restated amounts. In conducting this review and making these determinations, the Audit Committee consulted with the Compensation Committee to confirm the processes and judgements used to determine incentive-based compensation, including, in each case, the rationale for and scope of certain adjustments that the Compensation Committee has historically made when determining the values of the various financial reporting measures that were used to determine incentive-based compensation during the applicable periods, and obtained related information from the Compensation Committee’s compensation consultant. After considering these details and the nature of the restatement, including the fact that its effects on the financial reporting measures used in determining incentive-based compensation were temporary in nature, the Audit Committee determined that the amount of incentive-based compensation that would

TABLE OF CONTENTS

have been received by each of the Company’s current and former executive officers during and with respect to the relevant periods, had it been determined based on the restated amounts, was no less than the amount of incentive-based compensation actually received by each of them. Accordingly, the Audit Committee determined that there was no erroneously awarded compensation, as such term is defined in the clawback policy, and therefore that no recovery was required.

Anti-Hedging Policy

Our insider trading policy prohibits our directors, executive officers and employees from entering into any hedging transaction with respect to any of the Company’s securities. See “Corporate Governance and the Board of Directors — Anti-Hedging Policy” for more details.

Practices Related to the Grant of Certain Equity Awards

The Company does not currently grant new awards of stock options, stock appreciation rights or similar option-like instruments (“Options”). Accordingly, the Company has no specific policy or practice on the timing of awards of Options in relation to the disclosure of material nonpublic information by the Company. In the event the Company determines to grant new awards of Options, the Board will evaluate the appropriate steps to take in relation to the foregoing.

Benefits and Other Perquisites

The NEOs are eligible to participate in the same benefit plans offered to all of our full-time employees, including plans providing health, dental, vision, disability and basic group life insurance coverage and various retirement benefits. These plans are described in the “Executive Compensation — Other Compensation Programs” section below.

Regulatory Impact on Compensation

As a publicly traded financial institution, the Company is subject to additional regulatory requirements, most notably, the Interagency Guidelines Establishing Standards for Safety and Soundness (the “Safety and Soundness Standards”). The Federal Deposit Insurance Corporation (the “FDIC”) has long held that excessive compensation is prohibited as an unsafe and unsound practice under the Safety and Soundness Standards. In describing a framework to determine whether compensation is excessive, the FDIC has indicated that financial institutions should consider whether aggregate cash amounts paid, or non-cash benefits provided, to employees are unreasonable or disproportionate to the services performed by an employee. The FDIC encourages financial institutions to review an employee’s compensation history and to consider internal pay equity, and, as appropriate, to consider benchmarking compensation to peer groups. Finally, the FDIC provides that, in order to give proper context, such an assessment must be made in light of the institution’s overall financial condition.

Additionally, the Compensation Committee must also take into account the joint agency Guidance on Sound Incentive Compensation Policies (the “Guidance”), which is intended to complement the Safety and Soundness Standards. The Guidance sets forth a framework for assessing and mitigating risk associated with incentive compensation plans, programs and arrangements maintained by financial institutions.

Other matters, such as accounting, tax and SEC requirements regarding risk assessment are also considered by the Compensation Committee as part of its compensation design and annual decisions.

TABLE OF CONTENTS

COMPENSATION COMMITTEE REPORT

We have reviewed and discussed the Compensation Discussion and Analysis section of this proxy statement with management. Based on our review and discussion with management, we have recommended to the board of directors that the Compensation Discussion and Analysis be included in this proxy statement and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

Submitted by:

Richard T. Ramos (Chair)
James F. Deutsch
Jennifer L. DiMotta
Jeffrey C. Smith
Members of the Compensation Committee

TABLE OF CONTENTS

EXECUTIVE COMPENSATION

The compensation reported in the Summary Compensation Table below is not necessarily indicative of how we will compensate our NEOs in the future. We will continue to review, evaluate and modify our compensation program to maintain a competitive total compensation package. As such, the compensation program in the future could vary from our historical practices.

Summary Compensation Table

The following table sets forth information regarding the compensation paid, awarded to, or earned for our fiscal years ended December 31, 2025, 2024 and 2023 by each of our NEOs.

Summary Compensation Table

Name and Principal Position	Year		Salary(1) ($)		Stock Awards(2) ($)		Non-Equity Incentive Plan Compensation(3) ($)		All Other Compensation(4) ($)		Total ($)
Jeffrey G. Ludwig President and Chief Executive Officer of the Company and Chief Executive Officer of the Bank		2025		749,800		562,322		194,956		25,163		1,532,241
		2024		749,800		562,276		130,233		23,934		1,466,243
		2023		721,000		540,782		348,731		23,272		1,633,785
Jeffrey S. Mefford Executive Vice President of the Company and President of the Bank		2025		525,000		341,258		126,000		23,577		1,015,835
		2024		525,000		341,112		82,223		22,252		970,587
		2023		463,600		401,248		206,939		21,540		1,093,227
Jeremy A. Jameson(5) Executive Vice President and Chief Credit Officer of the Bank		2025		456,400		841,264		118,662		11,500		1,427,826
Eric T. Lemke Senior Vice President and Chief Financial Officer of the Company and the Bank		2025		437,400		218,721		69,987		16,097		742,205
		2024		437,400		218,647		46,299		15,795		718,141
		2023		405,020		202,475		119,889		14,815		742,199
Daniel E. Casey(6) Executive Vice President and Chief Risk Officer of the Bank		2025		340,615		157,526		54,498		11,630		564,269
		2024		334,800		150,704		35,870		10,500		531,874
		2023		206,250		196,245		61,875		6,312		470,682

(1)

The amounts set forth in the “Salary” column reflects base salary earned in each fiscal year.

(2)

The amounts set forth in the “Stock Awards” column reflect the aggregate grant date fair value of stock awards for the years ended December 31, 2025, 2024 and 2023 in accordance with FASB ASC Topic 718. The assumptions used in calculating the stock award amounts are set forth in Note 16 to our consolidated financial statements filed with the SEC on our Annual Report on Form 10-K for the year ended December 31, 2025.

(3)

The amounts set forth in the “Non-Equity Incentive Plan Compensation” column reflect annual cash incentive awards earned pursuant to the Bonus Plan.

(4)

The amounts set forth in the “All Other Compensation” column for the 2025 fiscal year are summarized below.

TABLE OF CONTENTS

Name

Year

Perquisites(i)
($)

Company 401(k)
Match(ii)
($)

Company
HSA(ii)
($)

Total “All Other
Compensation”
($)

Jeffrey G. Ludwig

2025

13,663

10,500

1,000

SEC Form DEF 14A filed by Midland States Bancorp Inc.