Midland States Bancorp, Inc.

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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: