Patriot Financial Partners, L.P. Invests in Midland States Bancorp, Inc. Common Stock Through Open-Market Purchases
Rhea-AI Summary
Midland States Bancorp (Nasdaq: MSBI) announced that Patriot Financial Partners, L.P. acquired a position in the company's common stock through open-market purchases and that James F. Deutsch will join the Midland board and the board of Midland States Bank, effective February 3, 2026.
Mr. Deutsch is a partner at Patriot and a former CEO and founder of Team Capital Bank with over 25 years of banking experience. Company leaders said Patriot's investment and Mr. Deutsch's appointment support the bank's growth and shareholder-return focus.
Positive
- Patriot acquired MSBI shares via open-market purchases on Feb 3, 2026
- James F. Deutsch appointed to Midland board effective Feb 3, 2026
- New director brings 25+ years of banking and management experience
Negative
- Investment amount and stake percentage were not disclosed, limiting impact assessment
- Partner of investor joining the board may raise perceived governance or conflict concerns
News Market Reaction – MSBI
In the Feb 4 session, MSBI gained 1.22%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 22 | Q4 2025 results | Negative | +1.6% | Reported net loss with portfolio sale losses but positive adjusted earnings detail. |
| Jan 02 | Earnings timing update | Neutral | +1.6% | Announced date and materials for upcoming Q4 2025 financial release. |
| Dec 01 | Portfolio sale | Neutral | +1.9% | Sold most equipment finance portfolio, expecting pre-tax loss but capital benefits. |
| Nov 06 | Leadership transition | Neutral | +0.3% | Announced planned retirement of bank president with defined succession plan. |
| Nov 03 | Buyback authorization | Positive | +1.4% | Approved new $25M stock repurchase program signaling capital confidence. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent news has generally been met with modest positive price reactions, including after loss-driven disclosures, indicating a market focus on balance-sheet actions and capital returns.
Over the last few months, Midland States Bancorp has reported a Q4 2025 net loss to common of $5.1M but also adjusted earnings of $11.9M, and detailed the sale of a $599M equipment finance portfolio for $502M in cash. It authorized a new $25M repurchase program effective Nov 3, 2025 and outlined leadership transition plans. Despite losses and portfolio repositioning, shares rose modestly after each update, similar to today’s positive reaction to the Patriot stake and board addition.
Key Terms
open-market purchases financial
private equity fund financial
common stock financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
EFFINGHAM, Ill., Feb. 03, 2026 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) announced today that Patriot Financial Partners, L.P. (“Patriot”) acquired a position in the Company’s common stock through open-market purchases. The Company has agreed to add James F. Deutsch to its Board of Directors effective February 3, 2026. Mr. Deutsch has also been appointed to the Board of Midland States Bank, the Company’s wholly-owned bank subsidiary.
Mr. Deutsch currently serves as a partner of Patriot, a private equity fund specializing in investments in the financial services industry and current shareholder of the Company. Prior to joining Patriot, Mr. Deutsch served as President, Chief Executive Officer and Founder of Team Capital Bank, a Pennsylvania-based community bank. Before Team Capital, he spent over 25 years in various management positions in commercial banking, investment banking, and corporate finance.
Jeffrey C. Smith, Chairman of the Company and Midland States Bank, said “We are pleased to welcome Jim to our board and to announce Patriot’s investment in our Company. Jim serves on Patriot’s Investment Committee and brings a wealth of experience in the banking industry, making him well suited to contribute to our Board.”
“Partnering with sophisticated investors who share our values and drive for shareholder return is a priority for our team,” said Jeffrey G. Ludwig, President and Chief Executive Officer of the Company. “We are excited to work with Patriot as we expand our franchise. Patriot is one of the most reputable investors in the industry and a strong cultural fit with our team. An investment from an institutional investor like Patriot affirms our strong belief in the Company’s direction and mission.”
“I am pleased and honored to be joining the other directors on the board of Midland. Midland’s management has done a great job of building a unique franchise, and I look forward to doing what I can to assist and execute on their future growth strategies,” said Mr. Deutsch.
About Midland States Bancorp, Inc.
Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of December 31, 2025, the Company had total assets of approximately
CONTACTS:
Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321
