Mid Penn Bancorp(US:MPB)2023-08-08 18:49Financial Performance - Net income available to common shareholders for the six months ended June 30, 2023, was $16,063 thousand, down 31.8% from $23,606 thousand in 2022[13]. - Net income for the three months ended June 30, 2023, was $4,836,000, a decrease of 60.5% compared to $12,252,000 for the same period in 2022[15]. - Total comprehensive income for the six months ended June 30, 2023, was $17,474,000, an increase of 27.3% from $13,689,000 in the same period of 2022[15]. - Basic earnings per common share decreased to $1.00 for the six months ended June 30, 2023, compared to $1.48 in the same period of 2022[13]. - Diluted earnings per common share for the first half of 2023 was $1.00, compared to $1.48 in the same period of 2022[183]. Asset and Loan Growth - Total assets increased to $5,088,813 thousand as of June 30, 2023, up from $4,497,954 thousand at December 31, 2022, representing a growth of 13.1%[11]. - Net loans reached $4,001,922 thousand, a 14.5% increase from $3,495,162 thousand year-over-year[11]. - Total loans increased to $4,034,510 thousand as of June 30, 2023, up from $3,514,119 thousand at December 31, 2022, representing a growth of approximately 14.8%[76]. - The commercial real estate loan segment rose to $2,145,272 thousand, compared to $2,052,934 thousand at the end of 2022, indicating an increase of about 4.5%[76]. - The residential mortgage loans surged to $730,176 thousand, a significant increase from $416,221 thousand, reflecting a growth of approximately 75.5%[76]. Deposits and Equity - Total deposits rose to $4,286,686 thousand, up 13.4% from $3,778,331 thousand at the end of 2022[11]. - The total shareholders' equity as of June 30, 2023, was $525,888,000, an increase from $512,099,000 at the beginning of the year[19]. Interest Income and Expenses - Interest income for the three months ended June 30, 2023, was $56,579 thousand, a 48% increase compared to $38,220 thousand for the same period in 2022[13]. - Noninterest expense increased to $61,599 thousand for the six months ended June 30, 2023, up from $49,660 thousand in 2022, reflecting a rise of 24%[13]. - The company reported a net interest income after provision for credit losses of $70,846 thousand for the six months ended June 30, 2023, compared to $67,622 thousand in 2022, an increase of 3.3%[13]. Credit Losses and Provisions - The provision for credit losses on loans was $1,647 thousand for the six months ended June 30, 2023, compared to $2,225 thousand in the prior year[13]. - The allowance for credit losses (ACL) increased by $15 million due to the adoption of CECL on January 1, 2023[33]. - The total allowance for credit losses (ACL) methodology is based on FASB ASC Subtopic 326-20, reflecting expected losses inherent in the loan portfolio[89]. Acquisitions and Mergers - The company is focused on expanding its market presence through strategic mergers and acquisitions, including the recent merger with Brunswick Bancorp[7]. - The Brunswick Acquisition on May 19, 2023, involved total consideration of $45.7 million, including $27.6 million in cash and 849,510 shares of common stock[41]. - Goodwill recognized from the Brunswick Acquisition was $15.172 million, with no expected tax deductibility[42]. Interest Rate Risk Management - Interest rate risk is a primary concern for Mid Penn, affecting future earnings due to fluctuations in interest rates[298]. - A 400 basis point increase in interest rates could lead to a 2.89% increase in net interest income[303]. - Management reviews interest rate risk quarterly, with scenarios indicating potential changes in net interest income based on interest rate fluctuations[302]. - All interest rate risk levels were within the tolerance limits of the Board-approved policy as of June 30, 2023[302]. Shareholder Activities - The company declared common stock cash dividends of $0.20 per share, totaling $3,182,000 for the three months ended June 30, 2023[19]. - The treasury stock repurchase program has authorized up to $15.0 million, with $5.5 million remaining available for repurchase as of June 30, 2023[176][177]. - Mid Penn repurchased 204,379 shares of common stock at an average price of $22.41 during the three months ended June 30, 2023[177].