Mid Penn Bancorp(MPB) - 2025 Q3 - Quarterly Results

Executive Summary & Key Highlights This section provides an overview of Mid Penn Bancorp's strong third-quarter 2025 earnings, key financial and operational highlights, and the CEO's strategic commentary Third Quarter 2025 Earnings Overview Mid Penn Bancorp achieved strong net income in Q3 2025, significantly exceeding analyst expectations and showing substantial growth quarter-over-quarter and year-over-year | Metric | Q3 2025 | Q2 2025 | Q3 2025 Analyst Estimate | | :--- | :--- | :--- | :--- | | Net Income (million USD) | 18.3 | 4.8 | - | | Basic EPS | $0.80 | $0.22 | - | | Diluted EPS | $0.79 | $0.22 | $0.71 | - Net income for Q3 2025 was $18.3 million, with basic EPS of $0.80 and diluted EPS of $0.79, surpassing analyst expectations of $0.71[3] - Net income increased by 48.7% compared to $12.3 million (or $0.74 per share) in Q3 2024[4] Key Financial and Operational Highlights Mid Penn Bancorp achieved significant improvements in net interest margin and core efficiency ratio in Q3 2025, alongside strategic acquisitions and a dividend increase, despite slight declines in loan and deposit balances this quarter Q3 2025 Key Financial Metrics | Metric | Q3 2025 | Q2 2025 | Q3 2024 | Change (QoQ) | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income (million USD) | $18.3 | $4.8 | $12.3 | +281.25% | +48.7% | | Diluted EPS | $0.79 | $0.22 | $0.74 | +259.09% | +6.76% | | Net Interest Margin | 3.60% | 3.44% | 3.13% | +16 bps | +47 bps | | Core Efficiency Ratio | 58.80% | 62.56% | 64.89% | -376 bps | -609 bps | | Book Value per Share | $34.56 | $33.85 | $34.48 | +2.10% | +0.23% | | Tangible Book Value per Share | $27.96 | $27.22 | $26.36 | +2.72% | +6.07% | - Loan balances decreased by $11.8 million (1.0% annualized) in Q3 2025, but total loans grew 8.5% year-over-year to $4.8 billion as of September 30, 2025; excluding the William Penn acquisition, the organic loan portfolio declined 1.2%[4] - Deposits decreased by $106.9 million (7.8% annualized) in Q3 2025, primarily due to a planned exit of approximately $175 million in brokered certificates of deposit; total deposits grew 13.9% year-over-year to $5.3 billion as of September 30, 2025, with organic deposits increasing 2.8% excluding the William Penn acquisition[4] - Mid Penn signed an agreement on September 24, 2025, to acquire 1st Colonial Bancorp, Inc. for approximately $101 million in cash and stock, with completion expected in Q1 or Q2 2026[6] - Mid Penn signed an agreement on September 25, 2025, to acquire Cumberland Advisors, expected to bring approximately $3.3 billion in new assets under management to the combined company, with completion anticipated in Q4 2025[6] - The Board of Directors announced a 10% increase in the quarterly cash dividend to $0.22 per share[6][11] CEO Statement on Performance and Strategy CEO Rory G. Ritrievi highlighted strong Q3 2025 GAAP earnings driven by net interest margin expansion, flat noninterest expense (excluding M&A costs), and excellent asset quality, while successfully advancing two significant acquisitions and increasing the quarterly dividend by 10% - GAAP earnings per share for Q3 2025 were $0.80, exceeding the consensus estimate of $0.71[7] - Net interest margin expanded by 16 bps to 3.6% during the quarter, driven by repricing of existing loans, prudent pricing of new loans, accretion from acquired loans, and marginal improvement in deposit funding costs[8] - Asset quality performed exceptionally well this quarter, with net charge-offs below $100 thousand and nonperforming assets slightly decreasing from Q2 2025[9] - Annualized revenue for Q3 2025 was $247.2 million, an increase of $30 million or 13.8% from $217.2 million in Q2 2025[9] - Excluding merger and acquisition costs incurred in Q2 2025, noninterest expense remained largely flat quarter-over-quarter, with the core efficiency ratio decreasing 377 bps from 62.6% in Q2 2025 to 58.8% in Q3 2025[10] - The Board of Directors announced a 10% increase in the quarterly dividend to $0.22 per share[11] Detailed Financial Performance This section provides an in-depth analysis of Mid Penn Bancorp's financial results, covering net interest income, average balances, asset quality, capital management, noninterest income, noninterest expense, and subsequent events Net Interest Income Analysis Net interest income and net interest margin significantly increased in Q3 2025, driven by higher earning asset yields and improved deposit funding costs, despite a slight year-over-year increase in deposit interest expense Net Interest Income and Net Interest Margin | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income (million USD) | $53.6 | $48.2 | $40.2 | | Tax-Equivalent Net Interest Margin | 3.60% | 3.44% | 3.13% | - Earning asset yield increased to 5.81% in Q3 2025, up from 5.69% in Q2 2025, primarily due to increased loan interest income and higher average balances of federal funds sold[13] - Net interest income for the nine months ended September 30, 2025, increased 25.1% year-over-year to $144.3 million, driven by a $17.9 million increase in loan interest income, a $4.7 million increase in federal funds sold, and a $9.7 million decrease in short-term borrowing interest expense[14] Average Balances Average loan and deposit balances grew in Q3 2025, primarily influenced by the William Penn acquisition, while the average cost of deposits decreased - The William Penn acquisition, completed on April 30, 2025, impacted average balances for the year ended September 30, 2025, adding $431.4 million in loans, $727.7 million in total assets, $619.8 million in deposits, and $630.2 million in total liabilities on the acquisition date[15] Average Loan and Deposit Balances | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :--- | :--- | :--- | :--- | | Average Loans (billion USD) | $4.8 | $4.7 | $4.4 | | Average Deposits (billion USD) | $5.5 | $5.2 | $4.6 | | Average Cost of Deposits | 2.37% | 2.39% | 2.77% | - The cost of funds decreased from 2.44% in Q2 2025 to 2.39%, primarily benefiting from growth in average noninterest-bearing and interest-bearing demand deposits[18] Asset Quality Asset quality remained strong in Q3 2025, with a benefit for credit losses and low net charge-offs, despite a slight sequential decrease but year-over-year increase in nonperforming assets Asset Quality Metrics | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :--- | :--- | :--- | :--- | | Benefit for Credit Losses (thousand USD) | $(434.0) | $2,269 | $516 | | Net Charge-offs (thousand USD) | $91 | - | - | | ACL on Loans to Total Loans | 0.77% | 0.78% | 0.80% | | Total Nonperforming Assets (million USD) | $27.3 | $28.0 | $17.7 | | Loans 30+ Days Past Due to Total Loans | 0.68% | 0.58% | 0.61% | - The decrease in the allowance for credit losses was primarily due to a reduction in loan balances resulting from an observed increase in prepayment speeds[19] - The decrease in total nonperforming assets in Q3 2025 was primarily related to a reduction in nonaccrual commercial real estate loans[22] Capital Management Mid Penn's shareholders' equity grew significantly, and regulatory capital ratios remained strong, exceeding "well-capitalized" thresholds, as the company continued its share repurchase program and declared dividends Shareholders' Equity and Dividends | Metric | Sep. 30, 2025 | Dec. 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Shareholders' Equity (million USD) | $796.3 | $655.0 | +21.6% | | Retained Earnings (million USD) | $205.3 | - | +7.2% (vs Jun 30, 2025) | | Quarterly Dividends (million USD) | $4.6 | - | - | - Both Mid Penn and its bank's regulatory capital ratios exceeded minimum regulatory requirements and met "well-capitalized" levels[24] - The Board of Directors reauthorized a stock repurchase program, effective through April 30, 2026, permitting the repurchase of up to $15.0 million of common stock[25] - As of September 30, 2025, 70,669 shares of common stock had been repurchased at an average price of $28.45, with approximately $2.9 million remaining available for repurchase under the plan[25] Noninterest Income Noninterest income significantly increased in Q3 2025, primarily driven by gains in mortgage banking, life insurance cash value, and other noninterest income, including recoveries on acquired loans and swap cancellation gains Noninterest Income | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total Noninterest Income (million USD) | $8.2 | $6.1 | +33.2% | | Mortgage Banking Income Increase (thousand USD) | +$337 | - | - | | Life Insurance Cash Value Earnings Increase (thousand USD) | +$114 | - | - | | Other Noninterest Income Increase (million USD) | +$1.6 | - | - | - The increase in other noninterest income included $534 thousand in recoveries on previously acquired loans, $420 thousand from the closing of an investment in a reinsurance entity, and $279 thousand from a swap cancellation gain[26] - Total noninterest income for the nine months ended September 30, 2025, was $19.6 million, an increase of 19.7% from $16.3 million in the same period of 2024[27] Noninterest Expense Noninterest expense significantly decreased in Q3 2025 due to the absence of large merger and acquisition fees from the prior quarter; however, year-to-date expenses increased due to M&A costs, compensation, software, and operational expenses related to acquisitions and system upgrades Noninterest Expense and Efficiency Ratio | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :--- | :--- | :--- | :--- | | Total Noninterest Expense (million USD) | $38.0 | $47.8 | -20.54% | | M&A Expenses Decrease (million USD) | -$10.8 | - | - | | Core Efficiency Ratio | 58.8% | 62.6% | -3.8% | | Nine-Month Noninterest Expense (million USD) as of Sep. 30, 2025 | $116.4 | - | +34.3% (vs 2024) | - The primary reasons for the increase in noninterest expense for the nine months were: $11.4 million in merger and acquisition expenses; $10.9 million in salaries and employee benefits (including equity incentives, retail staff from the William Penn acquisition, and team member retention during system integration); $2.5 million in software licensing and utilization costs; and $1.6 million in operational expenses[30][31][32][33][34] - The improvement in the core efficiency ratio resulted from increased net interest income, higher noninterest income, and reduced noninterest expense[35] Subsequent Events Management reviews events occurring after the balance sheet date to determine necessary adjustments or disclosures for consolidated financial statements, noting that financial information in this announcement may change - The period for management's review of subsequent events extends to and includes the date of filing the consolidated financial statements with the U.S. Securities and Exchange Commission (SEC)[36] - The financial information in this announcement is effective only as of the date of its release, and Mid Penn undertakes no obligation to update this information[36] Forward-Looking Statements This section provides a cautionary notice regarding forward-looking statements, highlighting various factors that could cause actual results to differ materially from expectations, including interest rate changes, credit losses, regulatory shifts, competition, and M&A-related risks - This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, identifiable by words such as "continue," "expect," "believe," and "anticipate"[37] - Actual results may differ materially from forward-looking statements due to various factors, including changes in interest rates, spreads on earning assets and liabilities, loan originations, credit losses, market value fluctuations, liquidity sources, and common stock price volatility[37] - Additional risk factors include legislation affecting the financial services industry, outcomes of regulatory examinations, changes in accounting policies, increased competition, technological developments, and differences in financial results and integration risks from merger and acquisition activities[37] - Mid Penn undertakes no obligation to publicly revise any forward-looking statements to reflect events or unanticipated events occurring after the date of the statements, unless required by law[37] Unaudited Financial Statements and Reconciliations This section presents unaudited financial statements and reconciliations of non-GAAP measures, providing detailed quarterly data for key financial highlights, consolidated balance sheets, income statements, average balance sheet analysis, and asset quality Summary Financial Highlights This section summarizes key financial metrics in tabular format, including ending and average balances, income statement data, per share data, asset quality ratios, profitability ratios, and capital ratios across multiple quarters | (Dollars in thousands, except per share data) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Ending Balances: | | | | | | | Investment securities | $781,888 | $769,211 | $634,044 | $643,352 | $642,291 | | Loans, net of unearned income | 4,821,134 | 4,832,898 | 4,491,167 | 4,443,070 | 4,431,704 | | Total assets | 6,267,349 | 6,354,543 | 5,546,026 | 5,470,936 | 5,527,025 | | Total deposits | 5,342,720 | 5,449,664 | 4,732,202 | 4,689,927 | 4,706,764 | | Shareholders' equity | 796,323 | 775,708 | 667,933 | 655,018 | 573,059 | | Average Balances: | | | | | | | Investment securities | 782,020 | 652,105 | 639,580 | 633,409 | 610,586 | | Loans, net of unearned income | 4,804,163 | 4,724,638 | 4,459,679 | 4,441,436 | 4,405,969 | | Total assets | 6,385,751 | 6,036,045 | 5,491,763 | 5,481,473 | 5,470,641 | | Total deposits | 5,468,144 | 5,159,754 | 4,681,708 | 4,687,880 | 4,597,686 | | Shareholders' equity | 783,547 | 670,491 | 660,964 | 623,670 | 565,300 | | Income Statement: | | | | | | | Net interest income | $53,629 | $48,206 | $42,509 | $41,280 | $40,169 | | (Benefit)/provision for credit losses | (434) | 2,269 | 301 | 333 | 516 | | Noninterest income | 8,183 | 6,143 | 5,239 | 6,149 | 5,178 | | Noninterest expense | 37,982 | 47,798 | 30,642 | 30,913 | 29,959 | | Income before provision for income taxes | 24,264 | 4,282 | 16,805 | 16,183 | 14,872 | | Provision/(benefit) for income taxes | 5,967 | (480) | 3,063 | 2,951 | 2,571 | | Net income available to shareholders | 18,297 | 4,762 | 13,742 | 13,232 | 12,301 | | Net income excluding non-recurring income and expenses | 17,772 | 15,074 | 13,907 | 12,961 | 12,383 | | Per Share: | | | | | | | Basic earnings per common share | $0.80 | $0.22 | $0.71 | $0.72 | $0.74 | | Diluted earnings per common share | 0.79 | 0.22 | 0.71 | 0.72 | 0.74 | | Cash dividends declared | 0.22 | 0.20 | 0.20 | 0.20 | 0.20 | | Book value per common share | 34.56 | 33.85 | 34.50 | 33.84 | 34.48 | | Tangible book value per common share | 27.96 | 27.22 | 27.58 | 26.90 | 26.36 | | Asset Quality: | | | | | | | Net charge-offs/(recoveries) to average loans | 0.008% | 0.069% | (0.0003%) | 0.037% | 0.031% | | Non-performing loans to total loans | 0.37 | 0.38 | 0.54 | 0.51 | 0.39 | | Non-performing asset to total loans and other real estate | 0.57 | 0.58 | 0.57 | 0.51 | 0.40 | | Non-performing asset to total assets | 0.44 | 0.44 | 0.46 | 0.41 | 0.32 | | ACL on loans to total loans | 0.77 | 0.78 | 0.80 | 0.80 | 0.80 | | ACL on loans to nonperforming loans | 207.92 | 206.49 | 149.05 | 157.07 | 204.61 | | Profitability: | | | | | | | Return on average assets | 1.14% | 0.32% | 1.01% | 0.96% | 0.89% | | Return on average equity | 9.26 | 2.85 | 8.43 | 8.44 | 8.66 | | Return on average tangible common equity | 11.95 | 4.05 | 10.84 | 11.07 | 11.69 | | Tax-equivalent net interest margin | 3.60 | 3.44 | 3.37 | 3.21 | 3.13 | | Core Efficiency ratio | 58.80 | 62.56 | 62.79 | 63.94 | 64.89 | | Capital Ratios: | | | | | | | Tier 1 Capital (to Average Assets) | 10.4% | 10.6% | 10.2% | 10.0% | 8.4% | | Common Tier 1 Capital (to Risk Weighted Assets) | 13.9 | 12.8 | 12.0 | 12.1 | 10.1 | | Tier 1 Capital (to Risk Weighted Assets) | 13.9 | 12.8 | 12.0 | 12.1 | 10.1 | | Total Capital (to Risk Weighted Assets) | 15.5 | 14.4 | 13.8 | 14.0 | 11.9 | Consolidated Balance Sheets This section provides the consolidated balance sheets, detailing assets, liabilities, and shareholders' equity across multiple quarters, reflecting the company's financial position | (In thousands, except share data) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | ASSETS | | | | | | | Total cash and cash equivalents | $257,169 | $336,852 | $107,254 | $70,564 | $144,395 | | Investment Securities: | | | | | | | Held to maturity, at amortized cost | 354,094 | 364,029 | 375,115 | 382,447 | 386,618 | | Available for sale, at fair value | 427,352 | 404,745 | 258,493 | 260,477 | 255,227 | | Equity securities available for sale, at fair value | 442 | 437 | 436 | 428 | 446 | | Loans held for sale | 6,085 | 6,101 | 6,851 | 7,064 | 7,919 | | Loans, net of unearned income | 4,821,134 | 4,832,898 | 4,491,167 | 4,443,070 | 4,431,704 | | Less: Allowance for credit losses | (37,337) | (37,615) | (35,838) | (35,514) | (35,562) | | Net loans | 4,783,797 | 4,795,283 | 4,455,329 | 4,407,556 | 4,396,142 | | Premises and equipment, net | 48,491 | 47,732 | 40,328 | 38,806 | 33,765 | | Operating lease right of use asset | 15,700 | 15,026 | 9,402 | 7,699 | 7,390 | | Finance lease right of use asset | 2,413 | 2,458 | 2,503 | 2,548 | 2,593 | | Cash surrender value of life insurance | 95,015 | 94,770 | 51,351 | 51,521 | 53,135 | | Restricted investment in bank stocks | 6,737 | 7,110 | 6,660 | 7,461 | 10,589 | | Accrued interest receivable | 29,705 | 28,546 | 27,263 | 26,846 | 27,286 | | Deferred income taxes | 27,475 | 35,333 | 21,800 | 22,747 | 23,197 | | Goodwill | 136,620 | 135,473 | 128,160 | 128,160 | 128,160 | | Core deposit and other intangibles, net | 15,586 | 16,531 | 5,814 | 6,242 | 6,713 | | Foreclosed assets held for sale | 9,346 | 9,816 | 1,402 | 44 | 281 | | Other assets | 51,322 | 54,301 | 47,865 | 50,326 | 43,169 | | Total Assets | $6,267,349 | $6,354,543 | $5,546,026 | $5,470,936 | $5,527,025 | | LIABILITIES & SHAREHOLDERS' EQUITY | | | | | | | Deposits: | | | | | | | Noninterest-bearing demand | $836,374 | $857,072 | $788,316 | $759,169 | $791,980 | | Interest-bearing transaction accounts | 2,858,082 | 2,772,739 | 2,375,205 | 2,319,753 | 2,288,783 | | Time | 1,648,264 | 1,819,853 | 1,568,681 | 1,611,005 | 1,626,001 | | Total Deposits | 5,342,720 | 5,449,664 | 4,732,202 | 4,689,927 | 4,706,764 | | Short-term borrowings | — | — | 25,000 | 2,000 | 114,097 | | Long-term debt | 23,258 | 23,374 | 23,489 | 23,603 | 23,716 | | Subordinated debt and trust preferred securities | 37,149 | 37,303 | 45,587 | 45,741 | 45,894 | | Operating lease liability | 15,973 | 15,342 | 9,765 | 8,092 | 7,778 | | Accrued interest payable | 16,460 | 13,421 | 12,900 | 13,484 | 18,995 | | Other liabilities | 35,466 | 39,731 | 29,150 | 33,071 | 36,722 | | Total Liabilities | 5,471,026 | 5,578,835 | 4,878,093 | 4,815,918 | 4,953,966 | | Shareholders' Equity: | | | | | | | Common stock, par value $1.00 per share; 40.0 million shares authorized | 23,551 | 23,419 | 19,803 | 19,797 | 17,061 | | Additional paid-in capital | 588,405 | 584,291 | 480,866 | 480,491 | 406,922 | | Retained earnings | 205,320 | 191,574 | 191,469 | 181,597 | 172,234 | | Accumulated other comprehensive loss | (8,907) | (11,756) | (14,163) | (16,825) | (13,116) | | Treasury stock | (12,046) | (11,820) | (10,042) | (10,042) | (10,042) | | Total Shareholders' Equity | 796,323 | 775,708 | 667,933 | 655,018 | 573,059 | | Total Liabilities and Shareholders' Equity | $6,267,349 | $6,354,543 | $5,546,026 | $5,470,936 | $5,527,025 | Consolidated Statements of Income This section presents the consolidated statements of income, listing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and net income available to common shareholders across multiple quarters | (Dollars in thousands, except per share data) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | INTEREST INCOME | | | | | | | Loans, including fees | $76,262 | $72,469 | $66,537 | $68,110 | $68,080 | | Investment securities: Taxable | 6,614 | 4,637 | 4,460 | 4,223 | 4,136 | | Investment securities: Tax-exempt | 331 | 344 | 348 | 358 | 359 | | Other interest-bearing balances | 196 | 142 | 138 | 154 | 223 | | Federal funds sold | 3,463 | 2,428 | 261 | 467 | 1,043 | | Total Interest Income | 86,866 | 80,020 | 71,744 | 73,312 | 73,841 | | INTEREST EXPENSE | | | | | | | Deposits | 32,631 | 30,981 | 28,264 | 30,836 | 30,689 | | Short-term borrowings | — | 86 | 290 | 509 | 2,296 | | Long-term and subordinated debt | 606 | 747 | 681 | 687 | 687 | | Total Interest Expense | 33,237 | 31,814 | 29,235 | 32,032 | 33,672 | | Net Interest Income | 53,629 | 48,206 | 42,509 | 41,280 | 40,169 | | Net (benefit)/provision for credit losses | (434) | 2,269 | 301 | 333 | 516 | | Net Interest Income After Provision for Credit Losses | 54,063 | 45,937 | 42,208 | 40,947 | 39,653 | | NONINTEREST INCOME | | | | | | | Fiduciary and wealth management | 1,340 | 1,406 | 1,140 | 1,215 | 1,204 | | ATM debit card interchange | 1,019 | 958 | 919 | 971 | 962 | | Service charges on deposits | 647 | 652 | 562 | 579 | 549 | | Mortgage banking | 1,013 | 676 | 591 | 656 | 768 | | Mortgage hedging | 50 | (7) | (9) | 11 | (1) | | Net gain on sales of SBA loans | — | 63 | 57 | 15 | 151 | | Earnings from cash surrender value of life insurance | 605 | 491 | 274 | 280 | 276 | | Other | 3,509 | 1,904 | 1,705 | 2,422 | 1,269 | | Total Noninterest Income | 8,183 | 6,143 | 5,239 | 6,149 | 5,178 | | NONINTEREST EXPENSE | | | | | | | Salaries and employee benefits | 20,941 | 20,753 | 16,309 | 16,947 | 16,156 | | Software licensing and utilization | 3,310 | 3,272 | 2,574 | 2,606 | 2,366 | | Occupancy, net | 2,642 | 2,365 | 2,274 | 1,913 | 1,815 | | Equipment | 1,248 | 1,248 | 1,094 | 1,213 | 1,206 | | Shares tax | 1,006 | 606 | 919 | 405 | 824 | | Legal and professional fees | 1,070 | 993 | 826 | 1,006 | 1,613 | | ATM/card processing | 557 | 621 | 733 | 634 | 606 | | Intangible amortization | 944 | 744 | 428 | 471 | 460 | | FDIC Assessment | 422 | 994 | 990 | 843 | 1,150 | | Loss/(gain) on sale or write-down of foreclosed assets, net | 471 | — | (28) | 73 | (35) | | Merger and acquisition | 233 | 11,011 | 314 | 436 | 109 | | Other | 5,138 | 5,191 | 4,209 | 4,366 | 3,689 | | Total Noninterest Expense | 37,982 | 47,798 | 30,642 | 30,913 | 29,959 | | INCOME BEFORE PROVISION FOR INCOME TAXES | 24,264 | 4,282 | 16,805 | 16,183 | 14,872 | | Provision/(benefit) for income taxes | 5,967 | (480) | 3,063 | 2,951 | 2,571 | | NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $18,297 | $4,762 | $13,742 | $13,232 | $12,301 | | PER COMMON SHARE DATA: | | | | | | | Basic Earnings Per Common Share | $0.80 | $0.22 | $0.71 | $0.72 | $0.74 | | Diluted Earnings Per Common Share | 0.79 | 0.22 | 0.71 | 0.72 | 0.74 | | Cash Dividends Declared | 0.22 | 0.20 | 0.20 | 0.20 | 0.20 | Average Balance Sheet and Net Interest Income Analysis This section provides a detailed analysis of the average balance sheet and net interest income, presenting average balances, interest income/expense, and yields/rates for earning assets and interest-bearing liabilities, along with net interest spread and net interest margin across multiple quarters | | September 30, 2025 | | | June 30, 2025 | | | September 30, 2024 | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Average Balance (thousand USD) | Interest (thousand USD) | Yield/Rate | Average Balance (thousand USD) | Interest (thousand USD) | Yield/Rate | Average Balance (thousand USD) | Interest (thousand USD) | Yield/Rate | | ASSETS: | | | | | | | | | | | Interest Bearing Balances | $26,950 | $196 | 2.89% | $23,271 | $142 | 2.45% | $25,123 | $223 | 3.53% | | Investment Securities: Taxable | 716,356 | 6,502 | 3.60 | 584,919 | 4,570 | 3.13 | 537,257 | 3,682 | 2.73 | | Investment Securities: Tax-Exempt | 65,664 | 331 | 2.00 | 67,186 | 344 | 2.05 | 73,329 | 359 | 1.95 | | Total Securities | 782,020 | 6,833 | 3.47 | 652,105 | 4,914 | 3.02 | 610,586 | 4,041 | 2.63 | | Federal Funds Sold | 310,525 | 3,463 | 4.42 | 236,037 | 2,428 | 4.13 | 75,683 | 1,043 | 5.48 | | Loans, Net of Unearned Income | 4,804,163 | 76,262 | 6.30 | 4,724,638 | 72,469 | 6.15 | 4,405,969 | 68,080 | 6.15 | | Restricted Investment in Bank Stocks | 7,143 | 112 | 6.22 | 6,945 | 67 | 3.87 | 13,252 | 454 | 13.63 | | Total Earning Assets | 5,930,801 | 86,866 | 5.81 | 5,642,996 | 80,020 | 5.69 | 5,130,613 | 73,841 | 5.73 | | Cash and Due from Banks | 49,582 | | | 50,376 | | | 44,052 | | | | Other Assets | 405,368 | | | 342,673 | | | 295,976 | | | | Total Assets | $6,385,751 | | | $6,036,045 | | | $5,470,641 | | | | LIABILITIES & SHAREHOLDERS' EQUITY: | | | | | | | | | | | Interest-bearing Demand | $1,268,802 | $5,736 | 1.79% | $1,123,130 | $4,954 | 1.77% | $1,066,878 | $5,291 | 1.97% | | Money Market | 1,237,556 | 9,046 | 2.90 | 1,179,756 | 8,350 | 2.84 | 921,054 | 7,060 | 3.05 | | Savings | 333,545 | 64 | 0.08 | 307,634 | 70 | 0.09 | 272,186 | 63 | 0.09 | | Time | 1,775,539 | 17,785 | 3.97 | 1,735,427 | 17,607 | 4.07 | 1,561,633 | 18,275 | 4.66 | | Total Interest-bearing Deposits | 4,615,442 | 32,631 | 2.80 | 4,345,947 | 30,981 | 2.86 | 3,821,751 | 30,689 | 3.19 | | Short term borrowings | 1 | — | 0.00 | 7,418 | 86 | 4.65 | 169,754 | 2,296 | 5.38 | | Long-term debt | 23,302 | 264 | 4.49 | 23,417 | 252 | 4.32 | 23,757 | 264 | 4.42 | | Subordinated debt and trust preferred securities | 37,224 | 342 | 3.65 | 45,264 | 495 | 4.39 | 45,969 | 423 | 3.66 | | Total Interest-bearing Liabilities | 4,675,969 | 33,237 | 2.82 | 4,422,046 | 31,814 | 2.89 | 4,061,231 | 33,672 | 3.30 | | Noninterest-bearing Demand | 852,702 | | | 813,807 | | | 775,935 | | | | Other Liabilities | 73,533 | | | 129,701 | | | 68,175 | | | | Shareholders' Equity | 783,547 | | | 670,491 | | | 565,300 | | | | Total Liabilities & Shareholders' Equity | $6,385,751 | | | $6,036,045 | | | $5,470,641 | | | | Net Interest Income | | $53,629 | | | $48,206 | | | $40,169 | | | Taxable Equivalent Adjustment | | 245 | | | 245 | | | 252 | | | Net Interest Income (taxable equivalent basis) | | $53,874 | | | $48,451 | | | $40,421 | | | Total Yield on Earning Assets | | | 5.81% | | | 5.69% | | | 5.73% | | Cost of funds | | | 2.39% | | | 2.44% | | | 2.77% | | Rate on Supporting Liabilities | | | 2.82 | | | 2.89 | | | 3.30 | | Average Interest Spread | | | 2.99 | | | 2.80 | | | 2.43 | | Tax-Equivalent Net Interest Margin | | | 3.60 | | | 3.44 | | | 3.13 | Allowance for Credit Losses and Asset Quality This section details the allowance for credit losses on loans and nonperforming assets, including charge-offs, recoveries, and various asset quality ratios across multiple quarters | (Dollars in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Allowance for Credit Losses on Loans: | | | | | | | Beginning balance | $37,615 | $35,838 | $35,514 | $35,562 | $35,288 | | Purchase credit deteriorated loans | — | 343 | — | — | — | | Loans Charged off: Commercial real estate | — | (691) | — | — | — | | Loans Charged off: Commercial and industrial | (91) | (203) | — | (407) | (356) | | Loans Charged off: Consumer | (40) | (15) | (15) | (18) | (8) | | Total loans charged off | (131) | (909) | (15) | (425) | (364) | | Recoveries of loans previously charged off: Commercial real estate | 9 | 1 | 1 | 2 | — | | Recoveries of loans previously charged off: Commercial and industrial | — | 3 | 6 | 1 | — | | Recoveries of loans previously charged off: Residential mortgage | 3 | 83 | 2 | 7 | 2 | | Recoveries of loans previously charged off: Consumer | 28 | 11 | 9 | 7 | 15 | | Total recoveries | 40 | 98 | 18 | 17 | 17 | | Balance before provision | 37,524 | 35,370 | 35,517 | 35,154 | 34,941 | | (Benefit)/provision for credit losses - loans | (187) | 2,245 | 321 | 360 | 621 | | Balance, end of quarter | $37,337 | $37,615 | $35,838 | $35,514 | $35,562 | | Nonperforming Assets | | | | | | | Total nonaccrual loans | $17,957 | $18,216 | $24,045 | $22,610 | $17,380 | | Foreclosed real estate | 9,346 | 9,816 | 1,402 | 44 | 281 | | Total nonperforming assets | 27,303 | 28,032 | 25,447 | 22,654 | 17,661 | | Accruing loans 90 days or more past due | 160 | — | 3 | — | 1 | | Total risk elements | $27,463 | $28,032 | $25,450 | $22,654 | $17,662 | Reconciliation of Non-GAAP Measures This section provides reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, including tangible book value per share, adjusted earnings per share excluding non-recurring items, return on average tangible common equity, and core efficiency ratio, along with the rationale for their use - Non-GAAP financial measures are used by management to analyze Mid Penn's performance and are considered important to investors focusing on book value per share excluding changes in intangible assets[51] - These non-GAAP disclosures have limitations as analytical tools and should not be considered a substitute for GAAP financial measures, nor should they be considered in isolation or as a substitute for an analysis of Mid Penn's results of operations and financial condition as reported under GAAP[51] - Management believes this non-GAAP supplemental information is helpful in understanding Mid Penn's ongoing operating performance[51] Tangible Book Value Per Common Share This sub-section presents the calculation of tangible book value per common share, adjusting shareholders' equity for goodwill and other intangible assets | (Dollars in thousands, except per share data) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Shareholders' Equity | $796,323 | $775,708 | $667,933 | $655,018 | $573,059 | | Less: Goodwill | 136,620 | 135,473 | 128,160 | 128,160 | 128,160 | | Less: Core Deposit and Other Intangibles | 15,586 | 16,531 | 5,814 | 6,242 | 6,713 | | Tangible Equity | $644,117 | $623,704 | $533,959 | $520,616 | $438,186 | | Common Shares Outstanding | 23,039,223 | 22,915,194 | 19,362,094 | 19,355,797 | 16,620,174 | | Tangible Book Value per Share | $27.96 | $27.22 | $27.58 | $26.90 | $26.36 | Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses This sub-section provides the reconciliation for adjusted earnings per common share, excluding specific non-recurring income and expense items to present a clearer view of core operational performance | (Dollars in thousands, except per share data) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Available to Common Shareholders | $18,297 | $4,762 | $13,742 | $13,232 | $12,301 | | Less: BOLI Death Benefit Income | 71 | 1 | 83 | 615 | 4 | | Less: Recoveries on loans previously acquired in business combinations | 534 | — | — | — | — | | Less: Swap cancellation gain | 279 | — | — | — | — | | Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution | 420 | — | — | — | — | | Plus: Merger and Acquisition Expenses | 233 | 11,011 | 314 | 436 | 109 | | Plus: Compensation expense for accelerated vesting of stock options and restricted stock awards | 753 | 2,043 | — | — | — | | Less: Tax Effect of Non-Recurring Expenses | 207 | 2,741 | 66 | 92 | 23 | | Net Income Excluding Non-Recurring Income and Expenses | $17,772 | $15,074 | $13,907 | $12,961 | $12,383 | | Weighted Average Shares Outstanding | 23,005,504 | 21,566,617 | 19,355,867 | 18,338,224 | 16,612,657 | | Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses | $0.77 | $0.70 | $0.72 | $0.71 | $0.75 | Return on Average Tangible Common Equity This sub-section details the calculation of return on average tangible common equity, adjusting net income and average shareholders' equity for intangible assets | (Dollars in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income available to common shareholders | $18,297 | $4,762 | $13,742 | $13,232 | $12,301 | | Plus: Intangible amortization, net of tax | 746 | 588 | 338 | 372 | 363 | | | 19,043 | 5,350 | 14,080 | 13,604 | 12,664 | | Average shareholders' equity | 783,547 | 670,491 | 660,964 | 623,670 | 565,300 | | Less: Average goodwill | 135,486 | 130,824 | 128,160 | 128,160 | 127,773 | | Less: Average core deposit and other intangibles | 16,003 | 9,824 | 6,023 | 6,468 | 6,424 | | Average tangible shareholders' equity | $632,058 | $529,843 | $526,781 | $489,042 | $431,103 | | Return on average tangible common equity | 11.95% | 4.05% | 10.84% | 11.07% | 11.69% | Core Efficiency Ratio This sub-section outlines the calculation of the core efficiency ratio, adjusting noninterest expense and total revenue for non-recurring items to reflect operational efficiency | (Dollars in thousands) | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | Dec. 31, 2024 | Sep. 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Noninterest expense | $37,982 | $47,798 | $30,642 | $30,913 | $29,959 | | Less: Merger and acquisition expenses | 233 | 11,011 | 314 | 436 | 109 | | Less: Compensation expense for accelerated vesting of stock options and restricted stock awards | 753 | 2,043 | — | — | — | | Less: Intangible amortization | 944 | 744 | 428 | 471 | 460 | | Less: Loss/(gain) on sale or write-down of foreclosed assets, net | 471 | — | (28) | 73 | (35) | | Efficiency ratio numerator | 35,581 | 34,000 | 29,928 | 29,933 | 29,425 | | Net interest income | 53,629 | 48,206 | 42,509 | 41,280 | 40,169 | | Noninterest income | 8,183 | 6,143 | 5,239 | 6,149 | 5,178 | | Less: BOLI Death Benefit | 71 | 1 | 83 | 615 | 4 | | Less: Recoveries on loans previously acquired in business combinations | 534 | — | — | — | — | | Less: Swap cancellation gain | 279 | — | — | — | — | | Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution | 420 | — | — | — | — | | Efficiency ratio denominator | $60,508 | $54,348 | $47,665 | $46,814 | $45,343 | | Core efficiency ratio | 58.80% | 62.56% | 62.79% | 63.94% | 64.89% |