What Midland States Bancorp, Inc. told the SEC could break it.

Midland States depends on retail and commercial core deposits as its primary funding source, and total deposits fell $772.9 million to $5.42 billion in 2025; an inability to raise funds through deposits, borrowings or loan/securities sales — or further deposit runoff — could jeopardize its liquidity, operations and financial condition.

“An inability to raise funds through deposits, borrowings, the sale of loans a”

Midland States reported a 2025 diluted loss of $(6.12) per share after material credit deterioration: $11.1 million of first-quarter charge-offs tied to its GreenSky non-core consumer loan program plus $14.2 million of fourth-quarter charge-offs related to selling substantially all of its equipment-finance portfolio; it sold $317.5M of GreenSky participations and exited equipment finance ($316.1M loans + $239.7M leases), underscoring that further credit-quality deterioration in remaining portfolios could again pressure earnings.

“Charge-offs related to the non-core loan program of $11.1 million during the first quarter of 2025 coupled with charge-offs related to the sale of the equipment finance portfolio of $14.2 million during the fourth quarter of 2025 resulted in a si”

Midland States Bank (headquartered in Effingham, Illinois) concentrates its lending in Illinois and Missouri — its commercial-real-estate, construction and land-development book is its largest category, including $140.1 million of office-secured loans primarily in suburban Illinois and Missouri locations — so a downturn in those regional real-estate markets (office in particular) or local economies would disproportionately raise credit losses.

“Loans secured by office space totaled $140.1 million and $146.3 million at December 31, 2025 and December 31, 2024, respectively, are primarily located in suburban locations in Illinois and Missouri.”

Midland States and its bank are subject to federal regulatory capital requirements: falling below the 2.5% capital-conservation buffer above minimums constrains dividends, stock repurchases and executive bonuses absent regulatory approval, and could block distributions from the bank to the holding company; the company is also subject to IRS tax rules, SEC securities laws and Treasury anti-money-laundering/sanctions laws, with regular bank-agency examinations.

“if the Bank or the Company fails to maintain the applicable minimum capital ratios and the capital conservation buffer, distributions by the Bank to the Company, or dividends or stock repurchases by the Company, may be prohibited or limited.”