Northern Regional Community Development Plan

Overview FDIC Deposit Market Share As of June 30, 2012 As of June 30, 2013 As of June 30, 2014 Total Total Total Market Institutions Market Institutions Market Institutions $ in thousands Deposits Share Rank in Market Deposits Share Rank in Market Deposits Share Rank in Market Dixon$ 151,342 32.54% 1 8$ 194,836 38.56% 1 8$ 202,817 39.02% 1 8 Freeport$ 17,599 2.53% 8 9$ 16,448 2.29% 8 9$ 15,813 2.20% 8 9 Mendota$ 32,672 8.71% 3 4$ 33,351 7.76% 3 4$ 32,783 8.74% 3 4 Oregon$ 15,140 10.53% 4 4$ 14,935 9.58% 4 4$ 15,040 9.99% 4 4 Peru$ 42,670 10.24% 3 10$ 44,781 10.98% 4 10$ 49,385 11.82% 4 10 Princeton$ 72,285 16.26% 3 5$ 88,840 20.22% 3 5$ 101,548 22.43% 3 5 Rock Falls$ 34,663 14.33% 2 7$ 36,468 14.75% 3 7$ 28,916 12.46% 3 7 Sterling$ 86,398 15.52% 3 9$ 79,680 14.40% 3 9$ 77,733 13.86% 3 9

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1. Service Locations Tract Income Tract Address City ST ZIP Level Minority % 101 WEST FIRST STREET DIXON IL 61021 Middle 12.87% 101 INDEPENDENCE COURT DIXON IL 61021 Middle 26.63% 212 NORTH HENNEPIN AVENUE DIXON IL 61021 Upper 9.25% 1753 SOUTH WEST AVENUE FREEPORT IL 61032 Middle 25.18% 801 WASHINGTON STREET MENDOTA IL 61342 Middle 32.99% 609 8TH AVENUE MENDOTA IL 61342 Middle 32.99% 122 NORTH 4TH STREET OREGON IL 61061 Middle 6.43% 2022 4TH STREET PERU IL 61354 Middle 11.33% 2825 PLAZA DRIVE PERU IL 61354 Middle 10.96% 815 SOUTH MAIN STREET PRINCETON IL 61356 Upper 5.55% 1407 NORTH MAIN STREET PRINCETON IL 61356 Middle 4.81% 941 FIRST AVENUE ROCK FALLS IL 61071 Moderate 16.64% 302 FIRST AVENUE STERLING IL 61081 Middle 31.93%

2. Retail and Mortgage Lending Activities A. Target Mortgage Lending Goals (2014 prior year) I. Believable Banking – Home Mortgage $4MM over 3 years II. Believable Banking – Home Improvement Loan $2MM over 3 years

B. Diverse Community Engagement Marketing Strategy I. Traditional advertising Mediums a. The Journal Standard The Journal Standard offers the Scene, covering Stephenson County; which includes Freeport and surrounding rural communities, as well as the On-Target digital display. b. WVON Radio Midway Broadcasting Corporation is a best-in-class 35 year-old African-American owned media boutique whose properties include radio and interactive platforms. The MBC’s properties include WVON 1690AM, Chicago’s urban heritage station. With its urban talk format, the station is lauded as a leading source of information and community empowerment. c. WRLL Radio Chicago’s Home for Hispanic Independent Broadcasters. WRLL is committed to preserving the authentic voice and culture of Chicago’s growing Latino target market. d. HOY Hoy is a free Spanish-language newspaper with an engaging and energetic format distributed in areas of Chicago and neighboring suburbs with a dense Hispanic population.

C. Diverse Mortgage Loan Officers & Management I. Community Development & CRA Officer II. (1) Community Development Mortgage Consultant

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Northern Regional Community Development Plan

3. Small Business Lending – Believable Banking, “Emerging Business Program” The objective of the Emerging Business Lending & Capacity Building Program (EBP) is to provide emerging company’s access to adequate market-rate capital liquidity, training, and other professional services, so they grow and increase capacity, creating economic opportunity in their communities. Emerging business are defined as: Minority/Women/Disadvantaged and Small Businesses as defined by the SBA SBIC guidelines (https://www.sba.gov/sites/default/files/lender/2014-06-11%20(OII%20Overview).pdf) .

4. Community Development Partnerships • Business Employment Skills Team • Community Food Pantry • Gateway Foundation • Habitat for Humanity • Horizon House • Illinois Valley YMCA • Junior Achievement • Lee County Housing Authority • Salvation Army • Sinnissippi Center • United Way

5. Community Outreach and Engagement A. Financial Education I. NICAA Northwestern Illinois Community Action Agency

B. Community Advisory Board – Meets Quarterly I. • J.R. Schaffner – CEO, Inertia Machine Corp., Freeport, IL. • Kathy Peugh – Pres. – Expresslane, Rock Falls, IL. And Vice Pres. Johnson Oil Company, Rock Falls, IL. • Rick Curia – Pres. – Ken Nelson Auto Group, Dixon, IL. • Scott Wolber – Pres. – Arthur’s Garden Deli, Inc. – Rock Falls, IL.

C. Outreach and Engagement Efforts: Organization Membership, Board & Committee Appointments Mendota Hispanic Organization Mendota Chamber of Commerce Freeport Chamber of Commerce Rock Falls Chamber of Commerce Sauk Valley Area Chamber of Commerce

6. Multi-Lingual Materials and Services

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Northern Regional Community Development Plan

Midland States Bank will have multi-lingual materials available and provide access to multi-lingual staff as needed.

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