Midland States Bancorp, Inc. (MSBI): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to see how Midland States Bancorp, Inc. is positioning itself right now, and honestly, the story is about strategic pruning and focused growth as of late 2025. We see them making big moves, like selling off a $502 million equipment finance portfolio in November to clean up their balance sheet and retire $350 million in expensive funding, all while their Wealth Management group is managing a solid $4.36 billion in assets. So, if you want to know how their core community bank lending, their 60 Midwest locations, their deposit-driving promotions, and their 3.79% Net Interest Margin fit together, you'll want to check out the full four P's breakdown below. That's the defintely current picture of their marketing mix.

Midland States Bancorp, Inc. (MSBI) - Marketing Mix: Product

The product element for Midland States Bancorp, Inc. centers on its core community banking services, supplemented by specialized wealth management and a strategic pivot away from certain lending segments to sharpen its focus.

• Core focus is Community Bank commercial and consumer lending.
• Wealth Management Group manages approximately $4.36 billion in assets under administration as of September 30, 2025.
• Strategic exit from specialty finance; sold substantially all of its equipment finance portfolio for $502 million in cash, with the transaction closing on November 28, 2025.
• Offers trust, investment management, and insurance services; Wealth Management revenue for the third quarter of 2025 totaled $8.0 million.
• Evolving tech-forward strategy includes a dedicated Fintech initiative, specifically a Banking-as-a-Service (BaaS) initiative, which the company views as a catalyst for future earnings growth.

The product strategy reflects a deliberate refinement of the offerings. The company, which had total assets of approximately $6.91 billion as of September 30, 2025, is concentrating capital and resources on its community banking foundation.

The divestiture of the equipment finance portfolio is a key product-line change. The sale, which closed on November 28, 2025, for $502 million in cash, was a strategic move to concentrate on core community banking operations. This action meant the company ceased originating new equipment finance loans and leases effective as of September 30, 2025. The transaction is projected to reduce total loans and leases by roughly $545 million compared to the October 31, 2025 figures, and the proceeds were intended to pay down approximately $350 million of high-cost wholesale funding.

The Wealth Management Group remains a core product area, showing growth leading up to the strategic shift. You can see the asset growth trend here:

The product suite also includes various banking services that support the commercial and consumer lending focus. The company provides a full range of commercial and consumer banking products and services, along with merchant credit card services.

• Commercial Banking offerings.
• Personal Banking services.
• Trust Services.
• Fintech Services via the BaaS initiative.

The company's overall product structure, as of late 2025, is defined by this sharpened focus on community banking and wealth management, supported by the strategic reduction of the specialty finance product line.

Midland States Bancorp, Inc. (MSBI) - Marketing Mix: Place

You're looking at how Midland States Bancorp, Inc. gets its services into the hands of its customers. For a community-based financial holding company, 'Place' is about balancing physical proximity with digital reach. Midland States Bancorp, Inc. maintains its corporate headquarters right where it started, in Effingham, Illinois, which anchors its service to the Midwest region. This physical presence is key to its community banking identity.

The distribution network relies on a focused footprint within two primary states. As of late November 2025, data shows Midland States Bancorp, Inc. operates a network of approximately 60 domestic locations across Illinois and Missouri. This physical network is intentionally concentrated to support its core relationship-banking strategy, especially after recent portfolio sales that shed national business lines. Still, you need to see the breakdown of this physical reach.

The strategy clearly targets specific high-potential geographic areas for commercial growth. You'll find significant operational focus in the St. Louis metropolitan area and Chicago, which are essential markets for expanding their commercial and retail lending presence. This targeted physical expansion complements the broader digital offering.

For customers needing cash access outside of those 60 physical branches, the distribution strategy leans heavily on partnerships. Customers of Midland States Bancorp, Inc. have fee-free access to an extensive network of over 55,000 ATMs nationwide. This broad ATM access, combined with their digital channels, effectively provides nationwide access to essential services, which is a necessary component for any modern bank, even one focused on community banking. Honestly, this dual approach-deep local roots and wide digital access-is how they manage their footprint.

The distribution strategy can be summarized by its physical and digital components:

• Headquartered in Effingham, Illinois.
• Operates 60 domestic locations across Illinois and Missouri.
• Key commercial growth markets include St. Louis and Chicago.
• Digital channels offer nationwide service access.
• Fee-free ATM access exceeds 55,000 machines.

Finance: draft 13-week cash view by Friday.

Midland States Bancorp, Inc. (MSBI) - Marketing Mix: Promotion

You're looking at how Midland States Bancorp, Inc. communicates its value proposition to the market, which is promotion. This involves direct results from marketing spend, signaling confidence to investors, and building out the sales force to support key growth platforms.

The direct impact of a specific marketing push in the first quarter of 2025 is quantifiable. The marketing strategy implemented late in the first quarter of 2025 drove a retail deposit increase of $96.8 million. This growth contrasts with a total deposit decrease of $260.8 million during the same period, showing targeted success in the retail segment.

A core part of the promotional narrative centers on the strategic focus areas: the Community Bank and the Wealth Management platforms. Management actively promotes the strength and growth within these areas through investor communications, such as the investor presentations accompanying the Q2 2025 (July 24, 2025) and Q3 2025 (October 30, 2025) financial results.

To support this focus, Midland States Bancorp, Inc. has been actively expanding its client-facing teams. The company added six new sales positions in the first quarter of 2025 and followed up by adding three new sales positions in the second quarter of 2025, signaling an investment in direct sales and relationship-building to drive organic acquisition.

Here's a quick look at the scale of the platforms being promoted as of late 2025:

Investor confidence is a key promotional target, often signaled through capital allocation decisions. In November 2025, investor sentiment was reinforced by the Board's approval of a new $25 million stock repurchase program, effective from November 3, 2025, through November 2, 2026. The President and CEO framed this as underscoring their approach to capital management and reflecting confidence in the company's capital position and improving credit quality.

The promotion strategy also incorporates digital and organic channels to reach the target audience:

• Uses digital channels like LinkedIn for corporate and product messaging, evidenced by regular investor updates.
• Referral programs encourage organic customer acquisition to support Community Bank growth.
• Wealth Management revenue totaled $7.4 million in the second quarter of 2025.
• Community Bank originated $129 million in new fundings during the third quarter of 2025.

Midland States Bancorp, Inc. (MSBI) - Marketing Mix: Price

You're looking at how Midland States Bancorp, Inc. prices its financial products, which is really about managing its own cost of funds and the rates it charges for loans and deposits. For a bank, the price of its core product-money-is defined by its Net Interest Margin (NIM).

As of the third quarter of 2025, Midland States Bancorp, Inc. reported that its Net Interest Margin (NIM) was 3.79%, showing margin expansion compared to the 3.56% reported in the prior quarter. This margin strength is directly tied to managing the cost side of the balance sheet. The Cost of Deposits fell to 2.12% in Q3 2025, a result of intentional deposit mix changes, which helped relieve funding costs. Total deposits at the end of Q3 2025 stood at $5.60 billion.

Pricing strategy also involves capital structure management, which impacts the overall cost of funding. In a move to optimize this, proceeds from the recent portfolio sale will retire approximately $350 million of high-cost wholesale funding. This action supports capital strength, with the Common Equity Tier 1 (CET1) capital ratio reported at 9.37% as of September 30, 2025. The actual Nonperforming Assets (NPAs) to total assets decreased to 1.02% as of September 30, 2025, down from 2.10% at the end of 2024. The pro forma target for Nonperforming Assets (NPAs) post-sale is stated as decreasing to 0.83% of assets [cite: Outline].

For shareholders, the price of holding Midland States Bancorp, Inc. stock is reflected in the dividend policy. The quarterly cash dividend declared was $0.32 per share, with a payment date of November 21, 2025, to shareholders of record as of November 14, 2025. This translates to an annualized payout of $1.26 per share based on the last distribution. This resulted in a dividend yield around 7.61% based on recent closing prices.

Here's a quick look at key balance sheet and profitability metrics impacting pricing power as of Q3 2025:

The pricing strategy is clearly focused on improving the core earnings spread by actively reducing the cost of liabilities, which is a direct lever on profitability. The company is also managing asset quality, which indirectly affects pricing by reducing the need for high loss provisions that eat into net income.

Further details on shareholder returns and capital structure include:

• Quarterly Cash Dividend per Common Share: $0.32
• Annualized Dividend Payout: $1.26 per share
• Current Dividend Yield: 7.61%
• Common Equity Tier 1 (CET1) Ratio: 9.37%