Mid Penn Bancorp, Inc. Reports Third Quarter Earnings and Declares 60th Consecutive Quarterly Dividend

View all news Company Release - 10/22/2025 5:19 PM ET Mid Penn Bancorp, Inc. (NASDAQ: MPB) ("Mid Penn"), the parent company of Mid Penn Bank (the "Bank") and MPB Financial Services, LLC, today reported net income available to common shareholders ("earnings") for the quarter ended September 30, 2025, of $18.3 million, or $0.80 per basic and $0.79 per diluted common share, compared to net income of $4.8 million, or $0.22 per basic and diluted common share, for the second quarter of 2025, and exceeded the consensus analyst estimate of $0.71 per diluted common share for the third quarter of 2025. Key Highlights of the Third Quarter of 2025: Net income available to common shareholders increased 48.7% to $18.3 million, or $0.80 per basic and $0.79 per diluted common share, for the third quarter of 2025, compared to net income of $12.3 million, or $0.74 per basic and diluted common share, for the third quarter of 2024. The increase in net income per diluted share was partially offset by the higher number of shares outstanding in 2025, which contributed to the lower year-over-year EPS growth rate. Net income for the nine months ended September 30, 2025 increased 1.6% to $36.8 million, or $1.73 per basic and $1.70 per diluted common share, compared to $36.2 million for the nine months ended September 30, 2024, or $2.18 per basic and diluted common share.Net interest margin increased to 3.60% for the quarter ended September 30, 2025, compared to 3.44% for the second quarter of 2025, and 3.13% for the third quarter of 2024. This represents a 16 and 47 basis point ("bp") increase compared to the second quarter of 2025 and third quarter of 2024, respectively. That expansion was accomplished by continued improvement in deposit cost of funds and loan yields over the last nine and twelve months.Loan balances declined by $11.8 million, or 1.0% (annualized), during the third quarter of 2025. Total loans increased $378.1 million, or 8.5%, to $4.8 billion at September 30, 2025, compared to $4.4 billion at December 31, 2024. Excluding the William Penn acquisition loans of $431.4 million, the organic loan portfolio as of September 30, 2025 declined $53.3 million or 1.2% from the year ended December 31, 2024. This decline was primarily due to elevated commercial real estate payoffs that outpaced new originations.Deposits decreased $106.9 million, or 7.8% (annualized), during the third quarter of 2025, compared to an increase of $717.5 million, or 60.8% (annualized), during the second quarter of 2025. This decrease was driven by a planned exit of approximately $175 million in brokered certificates of deposit to deploy excess liquidity, lower funding costs, and realize gains of $279 thousand on associated interest rate swaps. Additionally, there was a $20.7 million decrease in noninterest-bearing accounts, offset by an $85.3 million increase in interest-bearing transaction accounts. Total deposits increased $652.8 million or 13.9% to $5.3 billion at September 30, 2025, compared to $4.7 billion at December 31, 2024. Excluding the William Penn acquisition deposits of $619.8 million, organic deposit growth as of September 30, 2025 increased $33.0 million or 2.8%, annualized from the year ended December 31, 2024.The core efficiency ratio (1) improved to 58.80% in the third quarter of 2025, compared to 62.56% in the second quarter of 2025, and 64.89% in the third quarter of 2024.Book value per common share improved to $34.56 as of September 30, 2025, compared to $33.85 as of June 30, 2025, and $34.48 as of September 30, 2024. Tangible book value per common share (1) was $27.96 as of September 30, 2025, compared to $27.22 and $26.36 as of June 30, 2025 and September 30, 2024, respectively.On September 24, 2025, Mid Penn entered into an Agreement and Plan of Merger, by and between Mid Penn and 1st Colonial Bancorp, Inc., in a cash and stock deal valued at nearly $101 million. The deal is expected to close in the first or second quarter of 2026, subject to the satisfaction of customary closing conditions, including regulatory approvals and approval by 1st Colonial shareholders.On September 25, 2025, Mid Penn entered into an agreement to acquire Cumberland Advisors. Cumberland Advisors, a registered investment advisory firm, recorded a year-to-date annualized revenue of $9.0 million as of the quarter ended June 30, 2025, and is expected to bring approximately $3.3 billion new assets under management to the combined company. The deal is expected to close in the fourth quarter of 2025, subject to customary closing conditions.As a result of the foregoing, the Board of Directors declared a cash dividend of $0.22 per common share, payable November 24, 2025, to shareholders of record as of November 10, 2025. (1) Non-GAAP financial measure. Refer to the calculation in the section titled “Reconciliation of Non-GAAP Measures (Unaudited)” at the end of this document. Chair, President and CEO Rory G. Ritrievi provided the following statement: "We are pleased to announce our third quarter results of operations to our shareholders. Within a quarter that included the announcement of two planned acquisitions, we delivered solid GAAP earnings of $0.80 (per average outstanding share within the quarter), compared to consensus estimate of $0.71 per share, 3Q24 of $0.74 per share and 2Q25 of $0.22 per share. Our success was driven by a confluence of factors. Through repricing of existing loans, disciplined pricing on new loans, accretion from acquired loans, and a marginal improvement in deposit cost of funds, our net interest margin expanded by 16 basis points within the quarter and is now up to 3.6%. There is still some progress needed to get back to our pre-inverted yield curve days but we have seen great progress over the last seven quarters. Asset quality was spectacular within the quarter, continuing a trend that has been occurring for several years now. While net charge offs were less than $100,000 for the quarter, nonperforming assets were down slightly from 2Q25. Annualized revenues for 3Q25 were $247.2 million, versus annualized revenues for 2Q25 of $217.2 million for an annualized increase of $30 million or 13.8%. Solid revenue expansion. When excluding M&A costs incurred in 2Q25, noninterest expenses were basically flat between the two linked quarters, as evidenced by a 377 basis point decrease in our core efficiency ratio as it declined from 62.6% in 2Q25 to 58.8% in 3Q25. Good revenue growth + good NIM expansion + flat operating expenses + solid asset quality = a great quarter of performance for Mid Penn, even while shifting some resources toward the announcement of two meaningful M&A transactions. With all that in mind, I happily announce, on behalf of the Board of Directors, an increase to our quarterly dividend of 10% going up to $0.22 per common share for the 3rd quarter, payable November 24, 2025, to shareholders of record as of November 10, 2025." Net Interest Income For the three months ended September 30, 2025, net interest income was $53.6 million, compared to net interest income of $48.2 million for the three months ended June 30, 2025, and $40.2 million for the three months ended September 30, 2024. The tax-equivalent net interest margin for the three months ended September 30, 2025 was 3.60% compared to 3.44% and 3.13% for the second quarter of 2025 and third quarter of 2024, respectively, representing a 16 bp increase from the second quarter of 2025, and a 47 bp increase compared to the same period in 2024. The yield on interest-earning assets increased to 5.81% for the quarter ended September 30, 2025, from 5.69% for the three months ended June 30, 2025, and 5.73% for the three months ended September 30, 2024. The increase from the second quarter of 2025 was primarily due to an increase in interest income on loans, and an increase in the average balance of Federal Funds Sold. For the nine months ended September 30, 2025, net interest income increased 25.1% to $144.3 million compared to net interest income of $115.4 million for the same period of 2024. The increase was primarily driven by a $17.9 million increase in interest income on loans, a $4.7 million increase in Federal Funds Sold, and a $9.7 million decrease in interest expense on short-term borrowings, partially offset by a $6.4 million increase in interest expense on deposits, compared to the same period of 2024. Average Balances Average balances for the year ended September 30, 2025 continue to be impacted by the William Penn acquisition given that the acquisition closed on April 30, 2025. Day one increases in loans, total assets, deposits, and total liabilities were $431.4 million, $727.7 million, $619.8 million, and $630.2 million, respectively. Average loans increased $79.5 million to $4.8 billion for the quarter ended September 30, 2025, compared to $4.7 billion for the quarter ended June 30, 2025, and increased $398.2 million compared to $4.4 billion for the quarter ended September 30, 2024. Average deposits were $5.5 billion for the third quarter of 2025, reflecting an increase of $308.4 million, or 6.0%, compared to total average deposits of $5.2 billion in the second quarter of 2025, and an increase of $870.5 million, or 18.9%, compared to total average deposits of $4.6 billion for the third quarter of 2024. The average cost of deposits was 2.37% for the third quarter of 2025, representing a 2 bp decrease and a 31 bp decrease from the second quarter of 2025 and the third quarter of 2024, respectively. Cost of funds decreased to 2.39%, compared to 2.44% for the second quarter of 2025. Despite a higher total interest expense, cost of funds improved during the quarter, primarily due to the growth in average noninterest-bearing and interest-bearing demand deposits. Asset Quality The total benefit for credit losses, including benefit for credit losses on off-balance sheet credit exposures, was $434.0 thousand for the three months ended September 30, 2025, a decrease of $2.7 million compared to the provision for credit losses of $2.3 million for the three months ended June 30, 2025, and a $950 thousand decrease compared to the provision for credit losses of $516 thousand for the three months ended September 30, 2024. The decrease in provision was primarily driven by lower loan balances as a result of an increase in observed prepayment speeds. Net charge offs for the three months ended September 30, 2025 were $91 thousand, or less than 0.002% of total average loans. The provision for credit losses on loans was $2.4 million for the nine months ended September 30, 2025, an increase of $595 thousand compared to the provision for credit losses of $1.8 million for the nine months ended September 30, 2024. This increase for the nine months ended September 30, 2025 was primarily due to a $2.3 million reserve on non-PCD loans acquired through the William Penn acquisition, partially offset by lower loan balances as a result of an increase in observed prepayment speeds. The benefit for credit losses on off-balance sheet credit exposures was $247 thousand and $243 thousand for the three and nine months ended September 30, 2025, respectively. Allowance for credit losses - loans was 0.77%, 0.78%, and 0.80% of loans, net of unearned income at September 30, 2025, June 30, 2025, and September 30, 2024, respectively. Total nonperforming assets were $27.3 million at September 30, 2025, compared to nonperforming assets of $28.0 million and $17.7 million at June 30, 2025 and September 30, 2024, respectively. The decrease during the third quarter of 2025 primarily related to a decrease in commercial real estate non-accrual loans. Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.68% at September 30, 2025, compared to 0.58% and 0.61% as of June 30, 2025 and September 30, 2024, respectively. Capital Shareholders’ equity increased $141.3 million, or 21.6%, from $655.0 million as of December 31, 2024, to $796.3 million as of September 30, 2025. Retained earnings increased $13.7 million, or 7.2%, from $191.6 million as of June 30, 2025 to $205.3 million as of September 30, 2025. Regulatory capital ratios for both Mid Penn and the Bank indicate regulatory capital levels in excess of both the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at September 30, 2025. Additionally, Mid Penn declared $4.6 million in dividends during the third quarter of 2025. On April 23, 2025, Mid Penn’s Board of Directors reauthorized its treasury stock repurchase program ("the Program") effective through April 30, 2026. The Program authorizes the repurchase of up to $15.0 million of Mid Penn’s outstanding common stock. During the nine months ended September 30, 2025, Mid Penn repurchased 70,669 shares of common stock at an average price of $28.45. As of September 30, 2025, Mid Penn repurchased a total of 511,391 shares of common stock at an average price of $23.57 per share under the Program. The Program had approximately $2.9 million remaining available for repurchase as of September 30, 2025. Noninterest Income For the three months ended September 30, 2025, noninterest income totaled $8.2 million, an increase of $2.0 million, or 33.2%, compared to noninterest income of $6.1 million for the second quarter of 2025. The increase is primarily due to a $337 thousand increase in mortgage banking, a $114 thousand increase in earnings from the cash surrender value of life insurance, and a $1.6 million increase in other noninterest income, driven by $534 thousand in recoveries on loans previously acquired in business combinations. These recoveries are recognized in noninterest income rather than a reduction to the allowance for credit losses, consistent with purchase accounting treatment, as expected credit losses on acquired loans were reflected in fair value adjustments at the acquisition date. This increase also includes $420 thousand gain on the closing of an investment of a reinsurance entity acquired from another institution, and $279 thousand in swap cancellation gains tied to eliminated brokered deposits. For the nine months ended September 30, 2025, noninterest income totaled $19.6 million, an increase of $3.2 million, or 19.7%, compared to noninterest income of $16.3 million for the nine months ended September 30, 2024. The increase in noninterest income is primarily driven by a $509 thousand increase in earnings from the cash surrender value of life insurance, a $460 thousand increase in mortgage banking, a $421 thousand increase in fiduciary and wealth management, and a $1.7 million increase in other noninterest income, driven by $534 thousand in recoveries on loans previously acquired in business combinations. These recoveries are recognized in noninterest income rather than a reduction to the allowance for credit losses, consistent with purchase accounting treatment, as expected credit losses on acquired loans were reflected in fair value adjustments at the acquisition date. This increase also includes a $420 thousand gain on the closing of an investment of a reinsurance entity acquired from another institution, and $279 thousand in swap cancellation gains tied to eliminated brokered deposits. Noninterest Expense For the three months ended September 30, 2025, noninterest expense totaled $38.0 million, a decrease of $9.8 million, or 20.54%, compared to noninterest expense of $47.8 million in the second quarter of 2025. Merger and acquisition expenses decreased $10.8 million, primarily reflecting the absence of $11.2 million of merger related expenses related to the William Penn acquisition and $164 thousand related to the Charis Insurance Group acquisition, both of which closed in the second quarter of 2025. For the nine months ended September 30, 2025, noninterest expense totaled $116.4 million, an increase of $29.7 million, or 34.3%, compared to noninterest expense of $86.7 million for the nine months ended September 30, 2024. Merger and acquisition expenses increased $11.4 million for the nine months ended September 30, 2025, which includes $11.2 million of merger related expenses related to the William Penn acquisition and $164 thousand related to the Charis Insurance Group acquisition. Salaries and benefits increased $10.9 million for the nine months ended September 30, 2025, compared to the same period in 2024, The increase is attributable to (i) equity-based compensation expense for stock options and restricted stock awards totaling $2.8 million that were recognized in the nine months ended September 30, 2025; (ii) the retail staff additions at the twelve retail locations added through the William Penn acquisition; and (iii) the retention of various William Penn team members through the completion of systems integration, which occurred on June 20, 2025. Software licensing and utilization costs increased $2.5 million for the nine months ended September 30, 2025, compared to the same period in 2024. The increase reflects additional costs to (i) license the additional William Penn branches; and (ii) upgrades to internal systems, including network storage, cybersecurity, and data security enhancements in response to the Bank's larger size and increased IT complexity. Occupancy expenses increased $1.6 million for the nine months ended September 30, 2025, compared to the same period in 2024. The increase was driven by the facility operating costs of the additional retail locations added through the William Penn acquisition. The core efficiency ratio(1) was 58.8% in the third quarter of 2025, compared to 62.6% in the second quarter of 2025 and 64.9% in the third quarter of 2024. The improvement in the core efficiency ratio during the third quarter of 2025 compared to the second quarter of 2025 was the result of higher net interest income, higher noninterest income and lower noninterest expense. Mid Penn continues to evaluate levels of noninterest expense for opportunities to reduce operating costs throughout the organization. (1) Non-GAAP financial measure. Refer to the calculation in the section titled “Reconciliation of Non-GAAP Measures (Unaudited)” at the end of this document. Non-GAAP financial measure. Subsequent Events Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission ("SEC"). Accordingly, the financial information in this announcement is subject to change. The statements are valid only as of the date hereof and Mid Penn disclaims any obligation to update this information. SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn’s portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; results of the regulatory examination and supervision process and oversight, including changes in monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; the availability of financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank’s future businesses; material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the respective merger agreement between Mid Penn and 1st Colonial or Cumberland Advisors; the outcome of any legal proceedings that may be instituted against Mid Penn or 1st Colonial; delays in completing the transactions; the failure to obtain necessary regulatory approvals for the 1st Colonial acquisition (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); the failure to obtain 1st Colonial shareholder approval or to satisfy any of the other conditions to the 1st Colonial or Cumberland Advisors transaction on a timely basis or at all; the possibility that the anticipated benefits of a transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in legacy Mid Penn and target markets; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the 1st Colonial or Cumberland Advisors transaction; the ability to complete the integration of Mid Penn and its targets successfully; the dilution caused by Mid Penn’s issuance of additional shares of its capital stock in connection with the 1st Colonial or Cumberland Advisors transaction; and other factors that may affect the future results of Mid Penn, 1st Colonial or Cumberland Advisors. For a more detailed description of these and other factors which would affect our results, please see Mid Penn’s filings with the SEC, including those risk factors identified in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the SEC. The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events, except as required by law. SUMMARY FINANCIAL HIGHLIGHTS (Unaudited): (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 Three Months Ended Income Statement: Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Net interest income $ 53,629 $ 48,206 $ 42,509 $ 41,280 $ 40,169 (Benefit)/provision for credit losses (4) (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(1) 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(1) 27.96 27.22 27.58 26.90 26.36 Asset Quality: Net charge-offs/(recoveries) to average loans (3) 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 (3) 1.14 % 0.32 % 1.01 % 0.96 % 0.89 % Return on average equity (3) 9.26 2.85 8.43 8.44 8.66 Return on average tangible common equity(1) (3) 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(1) 58.80 62.56 62.79 63.94 64.89 Capital Ratios: Tier 1 Capital (to Average Assets) (2) 10.4 % 10.6 % 10.2 % 10.0 % 8.4 % Common Tier 1 Capital (to Risk Weighted Assets)(2) 13.9 12.8 12.0 12.1 10.1 Tier 1 Capital (to Risk Weighted Assets)(2) 13.9 12.8 12.0 12.1 10.1 Total Capital (to Risk Weighted Assets)(2) 15.5 14.4 13.8 14.0 11.9 (1) Non-GAAP financial measure. Refer to the calculation in the section titled “Reconciliation of Non-GAAP Measures (Unaudited)” at the end of this document. (2) Regulatory capital ratios as of September 30, 2025 are preliminary and prior periods are actual. (3) Annualized ratio (4) Includes $2.3 million related to non-PCD loans acquired in the William Penn transaction on April 30, 2025. CONSOLIDATED BALANCE SHEETS (Unaudited): (In thousands, except share data) Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 ASSETS Cash and due from banks $ 18,013 $ 52,671 $ 47,688 $ 37,002 $ 57,518 Interest-bearing balances with other financial institutions 24,736 22,828 16,880 14,490 19,323 Federal funds sold 214,420 261,353 42,686 19,072 67,554 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 (Unaudited): Three Months Ended (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 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(1) (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 (1) Includes $2.3 million related to non-PCD loans acquired in the William Penn transaction on April 30, 2025. CONSOLIDATED – AVERAGE BALANCE SHEET AND NET INTEREST INCOME ANALYSIS (Unaudited): Average Balances, Income and Interest Rates on a Taxable Equivalent Basis For the Three Months Ended September 30, 2025 June 30, 2025 September 30, 2024 (Dollars in thousands) Average Balance Interest Yield/ Rate(2) Average Balance Interest Yield/ Rate(2) Average Balance Interest Yield/ Rate(2) 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 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(1) 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 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance. (2) Annualized ratios ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited): (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 ) — — — Commercial and industrial (91 ) (203 ) — (407 ) (356 ) Construction — — — — — Residential mortgage — — — — — 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 — Commercial and industrial — 3 6 1 — Construction — — — — — Residential mortgage 3 83 2 7 2 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(1) (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 (1) Includes $2.3 million related to non-PCD loans acquired in the William Penn transaction on April 30, 2025. RECONCILIATION OF NON-GAAP MEASURES (Unaudited) Explanatory note: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Mid Penn’s management uses these non-GAAP financial measures in their analysis of Mid Penn’s performance. For tangible book value, the most directly comparable financial measure calculated in accordance with GAAP is book value. We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing tangible book value. Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances or non-deductible portions of the non-GAAP adjustments. Adjusted earnings per common share excludes from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, net of income taxes. For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity. The core efficiency ratio is often used by management to measure its noninterest expense as a percentage of its revenue. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Mid Penn’s results and financial condition as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding Mid Penn’s ongoing operating results. This supplemental presentation should not be construed as an inference that Mid Penn’s future results will be unaffected by similar adjustments to be determined in accordance with GAAP. The reconciliation of the non-GAAP to comparable GAAP financial measures can be found in the tables below. Tangible Book Value Per Common Share (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 Three Months Ended (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(1) 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 (1) These recoveries are recognized in noninterest income rather than a reduction to the allowance for credit losses, consistent with purchase accounting treatment, as expected credit losses on acquired loans were reflected in fair value adjustments at the acquisition date. Return on Average Tangible Common Equity Three Months Ended (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(1) 11.95 % 4.05 % 10.84 % 11.07 % 11.69 % (1) Annualized ratio Core Efficiency Ratio Three Months Ended (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(1) 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 % (1) These recoveries are recognized in noninterest income rather than a reduction to the allowance for credit losses, consistent with purchase accounting treatment, as expected credit losses on acquired loans were reflected in fair value adjustments at the acquisition date. Source: Mid Penn Bancorp