Banking, finance, and taxes

Midland States Bancorp Files for IPO

Chris Lange

Published: April 12, 2016 11:25 am

Last Updated: January 13, 2020 10:52 am

Midland States Bancorp has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were mentioned in the filing, but the offering is valued up to $120 million. The company intends to list on the Nasdaq Global Market under the symbol MSBI.

The underwriters for the offering are Sandler O’Neill, Keefe, Bruyette & Woods, D.A. Davidson and Stephens.

This company is a diversified financial holding company headquartered in Effingham, Ill. Its 135-year old banking subsidiary, Midland States Bank, has branches across Illinois and in Missouri and Colorado, and provides a broad array of traditional community banking and other complementary financial services, including commercial lending, residential mortgage origination, wealth management, merchant services and prime consumer lending. Its commercial Federal Housing Administration (FHA) origination and servicing business, based in Washington, D.C., is one of the top originators of government sponsored mortgages for multifamily and health care facilities in the United States. The commercial equipment leasing business, based in Denver, provides financing to business customers across the country.

At the end of December, 2015, Midland had $2.9 billion in assets, $2.4 billion of deposits and $233.1 million of shareholders’ equity. The company further detailed in the filing:

We originate residential mortgage loans (the majority of which we sell), through the Bank, with $580.8 million of originations for the year ended December 31, 2015. Our wealth management group provides a comprehensive suite of trust and wealth management products and services, and had $1.2 billion in assets under management as of December 31, 2015. We conduct our FHA origination business through Love Funding Corporation, which we acquired in the Heartland Bank transaction. Love Funding originates commercial mortgage loans for multifamily and healthcare facilities under FHA insurance programs, with $382.9 million of originations for the year ended December 31, 2015. Our Heartland Business Credit subsidiary, also acquired in the Heartland Bank transaction, provides custom leasing and financing programs to equipment and software vendors and their customers, and had a lease portfolio of $144.2 million as of December 31, 2015.

Midland intends to use the net proceeds from this offering in connection with the pending acquisition of wealth management assets from Sterling National Bank, with the remainder going toward general corporate purposes.