Mid Penn Bancorp(MPB) - 2024 Q3 - Quarterly Report

Financial Performance - Total assets increased to $5,527,025 thousand as of September 30, 2024, up from $5,290,792 thousand at December 31, 2023, representing a growth of approximately 4.5%[6] - Net loans reached $4,396,142 thousand, an increase from $4,218,605 thousand, reflecting a growth of about 4.2%[6] - Total deposits rose to $4,706,764 thousand, compared to $4,346,212 thousand, indicating an increase of approximately 8.3%[7] - Retained earnings increased to $172,234 thousand from $145,982 thousand, showing a growth of around 17.9%[8] - Total shareholders' equity rose to $573,059 thousand from $542,350 thousand, indicating an increase of about 5.7%[8] - Net income available to common shareholders for Q3 2024 was $12,301,000, representing a 33.5% increase compared to $9,236,000 in Q3 2023[10] - Basic earnings per common share increased to $0.74 in Q3 2024 from $0.56 in Q3 2023, a growth of 32.1%[9] - Net income for the nine months ended September 30, 2024, was $36,205 thousand, an increase of 43.3% compared to $25,299 thousand in 2023[16] Income and Expenses - Total interest income for Q3 2024 reached $73,841,000, a 16.5% increase from $63,417,000 in Q3 2023[9] - Net interest income after provision for credit losses was $39,653,000, up 12.0% from $35,393,000 in the same quarter last year[9] - Total noninterest income for the nine months ended September 30, 2024, was $16,344,000, compared to $14,891,000 for the same period in 2023, reflecting a 9.8% increase[9] - Total noninterest expense for Q3 2024 was $29,959,000, slightly up from $29,229,000 in Q3 2023, indicating a 2.5% increase[9] Credit Quality and Losses - The provision for credit losses on loans was $35,562 thousand, slightly up from $34,187 thousand, indicating a 4% increase[6] - Provision for credit losses decreased to $516,000 in Q3 2024 from $2,087,000 in Q3 2023, a reduction of 75.2%[9] - The allowance for credit losses (ACL) increased to $35,562 as of September 30, 2024, compared to $34,187 as of June 30, 2023, reflecting a provision for credit losses of $621[129] - The total provision for credit losses for the nine months ended September 30, 2024, was $1,784, compared to $3,074 for the same period in 2023[132] Loans and Leases - Total loans increased to $4,431,704, up from $4,252,792 as of December 31, 2023, representing a growth of approximately 4.2%[80] - Commercial real estate loans reached $2,469,295, an increase from $2,301,206, reflecting a growth of about 7.3%[80] - The total amount of loans modified for borrowers experiencing financial difficulty was $379,000, representing a small percentage of the total class of financing receivable[141] - Total past due loans amounted to $27,180, with $14,731 being greater than 90 days past due as of September 30, 2024[83] Acquisitions and Mergers - Mid Penn Bancorp entered into a merger agreement with William Penn Bancorporation valued at approximately $127 million, expected to close in the first half of 2025[26] - Mid Penn acquired Commonwealth Benefits Group for a total purchase price of $2.0 million at closing and an additional $800 thousand potentially payable pursuant to a three-year earnout[48] - Mid Penn completed the acquisition of Brunswick for total consideration of $45.7 million, which included 849,510 shares of common stock and a net cash payment of $27.6 million[51] Deposits and Funding - Noninterest-bearing demand deposits decreased to $791,980,000, representing 16.8% of total deposits as of September 30, 2024, down from 18.4% at December 31, 2023[144] - Interest-bearing demand deposits increased to $1,098,658,000, accounting for 23.4% of total deposits, compared to 21.8% at the end of 2023[144] - The company had $269.8 million in brokered certificates of deposits as of September 30, 2024, compared to $244.8 million at December 31, 2023[145] Stock and Shareholder Activities - Mid Penn repurchased 15,500 shares of common stock at an average price of $20.81 during the nine months ended September 30, 2024, with a total of 440,722 shares repurchased under the program[194] - The basic earnings per common share for the three months ended September 30, 2024, was $0.74, compared to $0.56 for the same period in 2023, reflecting a 32.14% increase[199] - The 2023 Stock Incentive Plan allows for the issuance of up to 350,000 shares to incentivize employees and directors[196] Interest Rate Management - The company entered into loan-level interest rate swaps to manage interest rate risks, with no speculative purposes involved[147] - The notional amount of interest rate swaps on loans with customers increased to $205,500 thousand from $187,192 thousand as of December 31, 2023, reflecting a growth of approximately 9.0%[149] - The estimated fair value of interest rate swaps on loans with customers decreased to $8,778 thousand from $10,484 thousand, a decline of approximately 16.3%[149] Comprehensive Income - Total comprehensive income for Q3 2024 was $16,308,000, significantly higher than $5,679,000 in Q3 2023, marking a 187.5% increase[10] - The total accumulated other comprehensive loss as of September 30, 2024, was $(13,116) thousand, an improvement from $(16,637) thousand as of December 31, 2023[153]