The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet regulatory capital requirements may result in certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for “prompt corrective action”, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting policies. Our capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. The Bank is also restricted by Illinois law and regulations of the Illinois Department of Financial and Professional Regulation and the FDIC as to the maximum amount of dividends the Bank can pay the Company. As a practical matter, the Bank restricts dividends to a lesser amount because of the need to maintain an adequate capital structure.

At December 31, 2024, the Company and the Bank exceeded the regulatory minimums and the Bank met the regulatory definition of "well-capitalized" based on the most recent regulatory notification. There have been no conditions or events since that notification that management believes have changed the Bank's category.


	Actual				Fully Phased-In Regulatory Guidelines Minimum				Required to be Well Capitalized Under Prompt Corrective Action Requirements
(dollars in thousands)	Amount		Ratio		Amount		Ratio(1)		Amount		Ratio
December 31, 2024
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	833,709	13.07	%	$	669,998	10.50	%	N/A		N/A
Midland States Bank	792,327		12.43		669,052		10.50		$	637,192	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	685,934		10.75		542,379		8.50		N/A		N/A
Midland States Bank	712,263		11.18		541,614		8.50		509,754		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	510,435		8.00		446,665		7.00		N/A		N/A
Midland States Bank	712,263		11.18		446,035		7.00		414,175		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	685,934		9.03		255,237		4.00		N/A		N/A
Midland States Bank	712,263		9.38		254,877		4.00		318,596		5.00

December 31, 2023 (restated)
Total risk-based capital ratio
Midland States Bancorp, Inc.	$	866,878	12.37	%	$	735,539	10.50	%	N/A		N/A
Midland States Bank	809,596		11.57		734,781		10.50		$	699,791	10.00%
Tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	685,767		9.79		595,437		8.50		N/A		N/A
Midland States Bank	722,122		10.32		594,823		8.50		559,833		8.00
Common equity tier 1 risk-based capital ratio
Midland States Bancorp, Inc.	510,269		7.28		490,360		7.00		N/A		N/A
Midland States Bank	722,122		10.32		489,854		7.00		454,864		6.50
Tier 1 leverage ratio
Midland States Bancorp, Inc.	685,767		8.73		280,206		4.00		N/A		N/A
Midland States Bank	722,122		9.20		279,917		4.00		349,896		5.00

In December 2018, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the FDIC published an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period.