Midland States Bancorp Announces Branch Network Optimization Plan

EFFINGHAM, Ill., Nov. 28, 2016 (GLOBE NEWSWIRE) -- Midland States Bancorp, Inc. (NASDAQ:MSBI) today announced a branch network optimization plan as part the Company's Operational Excellence strategic initiative.  As previously announced, Midland's Operational Excellence initiative is designed to place greater corporate-wide focus on driving improvements in people, processes and technology, and generate further improvement in Midland's operating efficiency and financial performance.

The branch network optimization plan will primarily consist of consolidating certain branches into other nearby locations, resulting in a total reduction of seven branches.  Following the changes, the Bank will have a total of 39 branch locations.

All of the changes to the branch network are expected to be completed by March 1, 2017.  As the Company previously announced, it expects its expense reductions in 2017 under the Operational Excellence initiative, including salaries and branch operating costs in connection with the branch network optimization plan, to approximately offset the 2017 revenue reduction that will result from the Company's sale of its private label collateralized mortgage obligations earlier this quarter.  The Company will incur charges for the write down of real estate and severance in the fourth quarter of 2016.

Leon J. Holschbach, President and CEO of Midland States Bancorp, said, "Consistent with industry-wide trends, we are seeing fewer visits to branches as more of our customers are choosing the convenience of online and mobile banking.  The branch network optimization plan we have announced today will enable us to concentrate our branch personnel and services into the locations where they are most needed and enhance the overall efficiency of the organization.  The proximity of nearby branches enables us to make these changes to the branch network while still providing our customers with convenient access to in-person banking services when they are needed."

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