Mid Penn Bancorp, Inc. Reports First Quarter Earnings and Declares 62nd Consecutive Quarterly Dividend

View all news Company Release - 4/21/2026 6:55 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") of $8.7 million, or $0.36 per basic and diluted common share, for the quarter ended March 31, 2026, compared to $13.7 million, or $0.71 per basic and diluted common share, for the first quarter of 2025. Adjusted earnings per common share, excluding non-recurring income and expenses(1), was $0.64 for the first quarter of 2026. Adjustments exclude $7.7 million of merger-related expenses and $370 thousand of non-recurring compensation expenses, net of tax. Key Highlights of the First Quarter of 2026: On February 27, 2026, Mid Penn completed the acquisition of 1st Colonial Bancorp, Inc. ("1st Colonial"), which added total assets of $842.5 million, comprised primarily of $597.5 million of loans. Additionally, on January 1, 2026, Mid Penn completed the acquisition of Cumberland Advisors, Inc. ("Cumberland Advisors"), a registered investment advisory firm, with approximately $3.2 billion in assets under management, further expanding the Company's wealth management capabilities and fee-based revenue.Primarily driven by merger-related expenses associated with the 1st Colonial and Cumberland Advisors acquisitions, net income available to common shareholders was $8.7 million for the first quarter of 2026 compared to net income of $13.7 million for the first quarter of 2025. Earnings per basic and diluted common share for the first quarter of 2026 was $0.36, a decrease from $0.71 per both basic and diluted common share in the first quarter of 2025.On a non-GAAP basis, adjusted net income excluding non-recurring income and expenses (1) for the quarter ended March 31, 2026, increased 10.0% to $15.3 million, compared to $13.9 million, for the first quarter of 2025, while adjusted earnings per common share was $0.64 compared to $0.72, reflecting a higher weighted-average share count following the Company's recent acquisitions.Net interest margin increased to 3.80% for the quarter ended March 31, 2026, compared to 3.79% for the fourth quarter of 2025, and 3.37% for the first quarter of 2025. This represents a 1 and 43 basis point ("bp") increase compared to the fourth quarter of 2025 and first quarter of 2025, respectively. The increase, compared to the first quarter of 2025, was driven by higher loan and investment securities yields and a reduction in the cost of funds.Loan balances increased $647.1 million, or 54.0% (annualized), during the first quarter of 2026. Excluding $597.5 million of loans acquired in the 1st Colonial transaction, organic loan growth was $49.6 million, or 4.1% (annualized), from December 31, 2025. Total loans increased $1.0 billion, or 22.7%, to $5.5 billion at March 31, 2026, compared to $4.5 billion at March 31, 2025.Deposits increased $756.3 million, or 58.8% (annualized), during the first quarter of 2026, compared to a decrease of $128.1 million, or 9.5% (annualized), during the fourth quarter of 2025. Excluding $747.1 million of deposits acquired in the 1st Colonial transaction, organic deposits increased $9.3 million, or 0.7% (annualized), from December 31, 2025. Total deposits increased $1.2 billion, or 26.2%, to $6.0 billion at March 31, 2026, compared to $4.7 billion at March 31, 2025.The core efficiency ratio (1) was 63.52% in the first quarter of 2026, compared to 55.26% in the fourth quarter of 2025, and 62.79% in the first quarter of 2025. The increase reflects the near-term impact of integrating the 1st Colonial and Cumberland Advisors acquisitions, including incremental operating costs, with anticipated cost synergies to be realized over future periods.Book value per common share was $35.08 as of March 31, 2026, compared to $35.32 as of December 31, 2025, and $34.50 as of March 31, 2025. The modest decline from the prior quarter reflects the accounting impact of the 1st Colonial acquisition, including merger-related expenses and the issuance of common shares. Tangible book value per common share (1) was $27.56 as of March 31, 2026, compared to $28.76 and $27.58 as of December 31, 2025 and March 31, 2025, respectively, with the decline primarily reflecting the goodwill and other intangible assets recorded in connection with the 1st Colonial and Cumberland Advisors acquisitions, as well as the William Penn acquisition in 2025.As a result of the foregoing, the Board of Directors declared a cash dividend of $0.22 per common share, payable on May 15, 2026, to shareholders of record as of May 4, 2026. (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: "As a result of the one-time M&A costs related to the finalization of the Cumberland Advisors and the 1st Colonial acquisitions, as well as other significant one-time expenses unrelated to M&A as discussed further within this release, the quarter was unusually noisy relative to analyst expectations. However, with first quarter total revenues of $64.9 million and pre-provision net revenues of $12.9 million, we beat consensus estimates on both fronts. From a GAAP standpoint, our reported net income of $8.7 million also beat analyst consensus estimates. Given the level of activity this quarter—including nearly $2 million of additional one-time, non-merger expenses —we are encouraged by our company’s revenue performance. Our relationship-focused calling team continues to drive net interest margin expansion in an increasingly competitive environment, and we are cautiously optimistic about both loan and deposit pipelines in the face of ongoing macroeconomic uncertainty. Further, noninterest income growth is strong, driven in no small part by the recent addition of Cumberland Advisors. Additionally, our experienced integration teams remain keenly focused on unlocking efficiencies in our recent merger activity, as projected over the coming quarters. To reward our shareholders, we are happy to declare a quarterly cash dividend of $0.22 per common share, payable May 15, 2026, to shareholders of record as of May 4, 2026. We are also pleased to announce the reauthorization and expansion of our treasury stock repurchase program, which now accommodates up to an additional $50 million in repurchase activity." Net Interest Income For the three months ended March 31, 2026, net interest income was $55.3 million, compared to net interest income of $54.8 million for the three months ended December 31, 2025. Interest income for the quarter ended March 31, 2026, includes $2.4 million of loan accretion income related to fair value marks on acquired loans, which are accreted into interest income over the expected life of the assets. The tax-equivalent net interest margin(1) for the three months ended March 31, 2026 was 3.80% compared to 3.79% and 3.37% for the fourth quarter of 2025 and first quarter of 2025, respectively, representing a 1 bp increase from the fourth quarter of 2025, and a 43 bp increase compared to the same period in 2025. The yield on interest-earning assets decreased to 5.75% for the quarter ended March 31, 2026, from 5.86% for the three months ended December 31, 2025, and increased from 5.65% for the three months ended March 31, 2025. The decrease from the fourth quarter of 2025 was primarily due to a higher average balance of lower-yielding Fed funds sold. For the three months ended March 31, 2026, net interest income increased 30.0% to $55.3 million compared to net interest income of $42.5 million for the same period of 2025. The increase was primarily driven by a $10.3 million increase in interest income on loans, and a $2.0 million increase in interest income on investment securities, compared to the same period in 2025. Average Balances Average balances were impacted by the 1st Colonial acquisition which closed on February 27, 2026. Day one increases in loans, total assets, deposits, and total liabilities were approximately $581.8 million, $842.5 million, $746.9 million, and $751.7 million, respectively. Average loans increased $238.9 million to $5.1 billion for the quarter ended March 31, 2026, compared to $4.8 billion for the quarter ended December 31, 2025, and increased $623.6 million compared to $4.5 billion for the quarter ended March 31, 2025. Average deposits were $5.4 billion for the first quarter of 2026, reflecting an increase of $103.0 million, or 1.9%, compared to total average deposits of $5.3 billion in the fourth quarter of 2025, and an increase of $711.9 million, or 15.2%, compared to total average deposits of $4.7 billion for the first quarter of 2025, primarily due to the 1st Colonial and William Penn acquisitions and organic growth. The average cost of deposits was 2.09% for the first quarter of 2026, representing a 20 bp decrease from the fourth quarter of 2025, and a 35 bp decrease from the first quarter of 2025, respectively. Cost of funds decreased to 2.12%, compared to 2.26% in the fourth quarter of 2025, primarily reflecting the repricing of higher-cost time deposits and money market accounts, as well as a favorable shift in the funding mix, including increased noninterest-bearing deposits added through the 1st Colonial acquisition. Asset Quality The total provision for credit losses, including benefit for credit losses on off-balance sheet credit exposures, was $1.6 million for the three months ended March 31, 2026, compared to the benefit for credit losses of $839 thousand for the three months ended December 31, 2025, and a provision for credit losses of $301 thousand for the three months ended March 31, 2025. The quarter-over-quarter change in the provision for credit losses was primarily driven by qualitative adjustments to the CRE owner-occupied portfolio, reflecting growth within that segment, offset by decreases due to higher prepayment speeds and a favorable economic forecast. Net charge offs for the three months ended March 31, 2026 were $1.0 million, or approximately 0.02% of total average loans. The provision for credit losses on loans was $1.6 million for the three months ended March 31, 2026, an increase of $1.3 million compared to the provision for credit losses of $321 thousand for the three months ended March 31, 2025. The increase for the three months ended March 31, 2026 was primarily attributable to qualitative adjustments to several segments of the portfolio, offset by decreases due to a favorable economic forecast. The benefit for credit losses on off-balance sheet credit exposures was $54 thousand for the three months ended March 31, 2026, compared to $20 thousand for the three months ended March 31, 2025. Allowance for credit losses - loans was 0.75%, 0.74%, and 0.80% of loans, net of unearned income at March 31, 2026, December 31, 2025, and March 31, 2025, respectively. Total nonperforming assets were $38.1 million at March 31, 2026, compared to nonperforming assets of $30.8 million at December 31, 2025 and $25.4 million at March 31, 2025. The increase during the first quarter of 2026 was primarily driven by the addition of $7.4 million of nonaccrual loans from the 1st Colonial acquisition. Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.70% at March 31, 2026, compared to 0.69% and 0.50% as of December 31, 2025 and March 31, 2025, respectively. Capital Shareholders’ equity increased $73.3 million, or 9.0%, to $887.4 million as of March 31, 2026, from $814.1 million as of December 31, 2025. Retained earnings increased $2.5 million, or 1.1%, to $222.2 million as of March 31, 2026. 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 March 31, 2026. Additionally, Mid Penn declared $6.2 million in dividends during the first quarter of 2026. On April 21, 2026, Mid Penn’s Board of Directors authorized an increase to its treasury stock repurchase program ("the Program"), increasing the amount available to repurchase to $50.0 million of Mid Penn’s outstanding common stock through April 30, 2027. No shares were purchased during the three months ended March 31, 2026. As of March 31, 2026, Mid Penn repurchased a total of 519,891 shares of common stock at an average price of $23.65 per share under the Program. Noninterest Income For the three months ended March 31, 2026, noninterest income totaled $9.6 million, an increase of $2.3 million, or 32.0%, from $7.3 million for the fourth quarter of 2025. The increase was primarily driven by a $2.2 million increase in fiduciary and wealth management income from the Cumberland Advisors acquisition. For the three months ended March 31, 2026, noninterest income totaled $9.6 million, an increase of $4.4 million, or 83.3%, compared to noninterest income of $5.2 million for the three months ended March 31, 2025. The increase is primarily driven by a $2.5 million increase in fiduciary and wealth management income, a $431 thousand increase in earnings from the cash surrender value of life insurance, a $1.3 million increase in other noninterest income, including a $558 thousand increase in death benefits received, and a $458 thousand increase in insurance commissions. Noninterest Expense For the three months ended March 31, 2026, noninterest expense totaled $52.0 million, an increase of $16.1 million, or 44.9%, compared to $35.8 million in the fourth quarter of 2025. The increase was primarily driven by a $7.8 million increase in merger and acquisition expenses, a $3.3 million increase in salaries and employee benefits, a $696 thousand increase in legal and professional fees, and a $2.3 million increase in other noninterest expense, primarily driven by a $1.5 million increase related to a change in methodology for LIHTC amortization, and $665 thousand in legal settlements. For the three months ended March 31, 2026, noninterest expense totaled $52.0 million, an increase of $21.3 million, or 69.6%, compared to $30.6 million for the three months ended March 31, 2025. Merger and acquisition expenses increased $7.4 million to $7.7 million for the three months ended March 31, 2026, driven by $7.2 million related to the 1st Colonial acquisition, $544 thousand related to the Cumberland Advisors acquisition, compared to $314 thousand in the same period of 2025. Salaries and benefits increased $7.0 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase is attributable to (i) the retail staff additions at the twelve retail locations added through the William Penn acquisition and three retail locations added through the 1st Colonial acquisition; (ii) the retention of various William Penn and 1st Colonial team members through the completion of systems integrations; and (iii) the addition of staff members from the Cumberland Advisors acquisition. Software licensing and utilization costs increased $1.0 million for the three months ended March 31, 2026, compared to the same period in 2025. The increase reflects additional costs to (i) license the additional William Penn and 1st Colonial branches; and (ii) upgrade 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 $979 thousand for the three months ended March 31, 2026, compared to the same period in 2025. The increase was driven by the facility operating costs of the additional retail locations added through the William Penn, 1st Colonial, and Cumberland Advisors acquisitions. The core efficiency ratio(1) was 63.5% for the first quarter of 2026, compared to 55.3% for the fourth quarter of 2025 and 62.8% for the first quarter of 2025. The change in the core efficiency ratio during the first quarter of 2026 compared to the fourth quarter of 2025 was primarily driven by higher core noninterest expenses associated with the addition of 1st Colonial, including incremental personnel and operating costs, which more than offset growth in net interest income. The Company continues to evaluate opportunities to achieve cost synergies as integration progresses. 1st Colonial Acquisition On February 27, 2026, Mid Penn completed its acquisition of 1st Colonial through the merger of 1st Colonial with and into Mid Penn. Each share of 1st Colonial common stock issued and outstanding as of February 27, 2026, was converted into the right to receive either 0.695 shares of Mid Penn common stock and cash in lieu of fractional shares or $18.50 per share of 1st Colonial common stock. Mid Penn issued approximately 2,111,076 shares of Mid Penn common stock and paid holders of 1st Colonial common stock approximately $37.5 million in cash. Mid Penn also recorded Goodwill of $15.3 million, and a core deposit intangible asset of $17.3 million as a result of this acquisition. Cumberland Advisors Acquisition On January 1, 2026, Mid Penn completed its acquisition of Cumberland Advisors, Inc., a registered investment advisory firm headquartered in Sarasota, Florida, with approximately $3.2 billion in assets under management. Each share of Cumberland Advisors common stock issued and outstanding as of January 1, 2026 was converted into the right to receive 17.79 shares of Mid Penn common stock or $539.22 for each share of Cumberland Advisors common stock owned. As a result of the acquisition, Mid Penn paid holders of Cumberland Advisors common stock approximately $1.7 million in cash and issued approximately 127,009 shares of Mid Penn common stock. Mid Penn also recorded Goodwill of $5.1 million, customer list intangible assets of $2.1 million, and non-compete intangible assets of $219 thousand as a result of this acquisition. (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. 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 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 a transaction; the ability to complete the integration of Mid Penn and its target successfully; the dilution caused by Mid Penn’s issuance of additional shares of its capital stock in connection with a transaction; and other factors that may affect the future results of Mid Penn. 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, 2025 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) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Ending Balances: Investment securities $ 830,499 $ 769,045 $ 781,888 $ 769,211 $ 634,044 Loans, net of unearned income 5,509,940 4,862,838 4,821,134 4,832,898 4,491,167 Total assets 6,964,809 6,133,896 6,267,349 6,354,543 5,546,026 Total deposits 5,970,967 5,214,663 5,342,720 5,449,664 4,732,202 Shareholders' equity 887,405 814,058 796,323 775,708 667,933 Average Balances: Investment securities 783,768 774,962 782,020 652,105 639,580 Loans, net of unearned income 5,083,240 4,844,308 4,804,163 4,724,638 4,459,679 Total assets 6,393,011 6,202,310 6,385,751 6,036,045 5,491,763 Total deposits 5,393,592 5,290,598 5,468,144 5,159,754 4,681,708 Shareholders' equity 845,553 803,093 783,547 670,491 660,964 Three Months Ended Income Statement: Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Net interest income $ 55,250 $ 54,751 $ 53,629 $ 48,206 $ 42,509 Provision/(benefit) for credit losses (4) 1,594 (839 ) (434 ) 2,269 301 Noninterest income 9,604 7,277 8,183 6,143 5,239 Noninterest expense 51,959 35,848 37,982 47,798 30,642 Income before provision for income taxes 11,301 27,019 24,264 4,282 16,805 Provision/(benefit) for income taxes 2,595 7,572 5,967 (480 ) 3,063 Net income available to shareholders 8,706 19,447 18,297 4,762 13,742 Net income excluding non-recurring income and expenses(1) 15,294 19,224 17,772 15,074 13,907 Per Share: Basic earnings per common share $ 0.36 $ 0.84 $ 0.80 $ 0.22 $ 0.71 Diluted earnings per common share 0.36 0.83 0.79 0.22 0.71 Cash dividends declared 0.22 0.22 0.20 0.20 0.20 Book value per common share 35.08 35.32 34.56 33.85 34.50 Tangible book value per common share(1) 27.56 28.76 27.96 27.22 27.58 Asset Quality: Net charge-offs/(recoveries) to average loans (3) 0.084 % 0.038 % 0.008 % 0.069 % (0.0003 %) Non-performing loans to total loans 0.54 0.47 0.37 0.38 0.54 Non-performing asset to total loans and other real estate 0.69 0.63 0.57 0.58 0.57 Non-performing asset to total assets 0.55 0.50 0.44 0.44 0.46 ACL on loans to total loans 0.75 0.74 0.77 0.78 0.80 ACL on loans to nonperforming loans 138.68 157.25 207.92 206.49 149.05 Profitability: Return on average assets (3) 0.55 % 1.24 % 1.14 % 0.32 % 1.01 % Return on average equity (3) 4.18 9.61 9.26 2.85 8.43 Return on average tangible common equity(1) (3) 5.82 12.29 11.95 4.05 10.84 Tax-equivalent net interest margin 3.80 3.79 3.60 3.44 3.37 Core Efficiency ratio(1) 63.52 55.26 58.80 62.56 62.79 Capital Ratios: Tier 1 Capital (to Average Assets) (2) 11.4 % 11.0 % 10.4 % 10.6 % 10.2 % Common Tier 1 Capital (to Risk Weighted Assets)(2) 12.7 13.5 13.9 12.8 12.0 Tier 1 Capital (to Risk Weighted Assets)(2) 12.7 13.5 13.9 12.8 12.0 Total Capital (to Risk Weighted Assets)(2) 13.5 14.3 15.5 14.4 13.8 (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 March 31, 2026 are preliminary estimates while prior period ratios are actual. (3) Annualized ratio (4) Includes $2.3 million related to non-PCD loans acquired in the William Penn acquisition on April 30, 2025. This amount reflects accounting guidance in effect prior to the Company's adoption of ASU 2025-08, under which the allowance for certain purchased loans was recognized through provision expense. CONSOLIDATED BALANCE SHEETS (Unaudited): (Dollars in thousands, except share data) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 ASSETS Cash and due from banks $ 60,967 $ 46,695 $ 18,013 $ 52,671 $ 47,688 Interest-bearing balances with other financial institutions 19,383 29,178 24,736 22,828 16,880 Federal funds sold 60,840 23,045 214,420 261,353 42,686 Total cash and cash equivalents 141,190 98,918 257,169 336,852 107,254 Investment Securities: Held to maturity, at amortized cost 340,957 347,285 354,094 364,029 375,115 Available for sale, at fair value 484,130 416,314 427,352 404,745 258,493 Equity securities available for sale, at fair value 5,412 5,446 442 437 436 Loans held for sale 16,554 3,668 6,085 6,101 6,851 Loans, net of unearned income 5,509,940 4,862,838 4,821,134 4,832,898 4,491,167 Less: Allowance for credit losses (41,105 ) (36,091 ) (37,337 ) (37,615 ) (35,838 ) Net loans 5,468,835 4,826,747 4,783,797 4,795,283 4,455,329 Premises and equipment, net 49,611 48,742 48,491 47,732 40,328 Operating lease right of use asset 16,803 15,169 15,700 15,026 9,402 Finance lease right of use asset 2,323 2,368 2,413 2,458 2,503 Cash surrender value of life insurance 116,474 95,351 95,015 94,770 51,351 Restricted investment in bank stocks 10,081 7,576 6,737 7,110 6,660 Accrued interest receivable 32,958 29,640 29,705 28,546 27,263 Deferred income taxes 23,798 21,416 27,475 35,333 21,800 Goodwill 157,121 136,620 136,620 135,473 128,160 Core deposit and other intangibles, net 33,013 14,657 15,586 16,531 5,814 Foreclosed assets held for sale 8,420 7,806 9,346 9,816 1,402 Other assets 57,129 56,173 51,322 54,301 47,865 Total Assets $ 6,964,809 $ 6,133,896 $ 6,267,349 $ 6,354,543 $ 5,546,026 LIABILITIES & SHAREHOLDERS’ EQUITY Deposits: Noninterest-bearing demand $ 933,497 $ 834,013 $ 836,374 $ 857,072 $ 788,316 Interest-bearing transaction accounts 3,357,497 2,829,175 2,852,361 2,770,877 2,368,837 Time 1,679,973 1,551,475 1,653,985 1,821,715 1,575,049 Total Deposits 5,970,967 5,214,663 5,342,720 5,449,664 4,732,202 Short-term borrowings 31,500 20,833 — — 25,000 Long-term debt 3,021 23,139 23,258 23,374 23,489 Subordinated debt and trust preferred securities — — 37,149 37,303 45,587 Operating lease liability 17,186 15,405 15,973 15,342 9,765 Accrued interest payable 12,195 10,942 16,460 13,421 12,900 Other liabilities 42,535 34,856 35,466 39,731 29,150 Total Liabilities 6,077,404 5,319,838 5,471,026 5,578,835 4,878,093 Shareholders' Equity: Common stock, par value $1.00 per share; 40.0 million shares authorized 25,817 23,567 23,551 23,419 19,803 Additional paid-in capital 659,883 589,421 588,405 584,291 480,866 Retained earnings 222,154 219,685 205,320 191,574 191,469 Accumulated other comprehensive loss (8,157 ) (6,323 ) (8,907 ) (11,756 ) (14,163 ) Treasury stock (12,292 ) (12,292 ) (12,046 ) (11,820 ) (10,042 ) Total Shareholders’ Equity 887,405 814,058 796,323 775,708 667,933 Total Liabilities and Shareholders' Equity $ 6,964,809 $ 6,133,896 $ 6,267,349 $ 6,354,543 $ 5,546,026 CONSOLIDATED STATEMENTS OF INCOME (Unaudited): Three Months Ended (Dollars in thousands, except per share data) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 INTEREST INCOME Loans, including fees $ 76,798 $ 76,916 $ 76,262 $ 72,469 $ 66,537 Investment securities: Taxable 6,501 6,590 6,614 4,637 4,460 Tax-exempt 297 320 331 344 348 Other interest-bearing balances 110 135 196 142 138 Federal funds sold 220 1,179 3,463 2,428 261 Total Interest Income 83,926 85,140 86,866 80,020 71,744 INTEREST EXPENSE Deposits 27,848 29,930 32,631 30,981 28,264 Short-term borrowings 702 5 — 86 290 Long-term and subordinated debt 126 454 606 747 681 Total Interest Expense 28,676 30,389 33,237 31,814 29,235 Net Interest Income 55,250 54,751 53,629 48,206 42,509 Net (benefit)/provision for credit losses(1) 1,594 (839 ) (434 ) 2,269 301 Net Interest Income After Provision for Credit Losses 53,656 55,590 54,063 45,937 42,208 NONINTEREST INCOME Fiduciary and wealth management 3,661 1,412 1,340 1,406 1,140 ATM debit card interchange 1,035 1,053 1,019 958 919 Service charges on deposits 636 634 647 652 562 Mortgage banking 314 552 1,013 676 591 Mortgage hedging 81 (22 ) 50 (7 ) (9 ) Net gain on sales of SBA loans 163 100 — 63 57 Earnings from cash surrender value of life insurance 705 609 605 491 274 Net gain on sales of investment securities — 10 — — — Other 3,009 2,929 3,509 1,904 1,705 Total Noninterest Income 9,604 7,277 8,183 6,143 5,239 NONINTEREST EXPENSE Salaries and employee benefits 23,346 20,026 20,941 20,753 16,309 Software licensing and utilization 3,598 3,406 3,310 3,272 2,574 Occupancy, net 3,253 2,624 2,642 2,365 2,274 Equipment 1,553 1,435 1,248 1,248 1,094 Shares tax 964 245 1,006 606 919 Legal and professional fees 1,688 992 1,070 993 826 ATM/card processing 757 771 557 621 733 Intangible amortization 1,300 930 944 744 428 FDIC Assessment 800 1,046 422 994 990 Loss/(gain) on sale or write-down of foreclosed assets, net 491 203 471 — (28 ) Merger and acquisition(2) 7,723 (39 ) 233 11,011 314 Other 6,486 4,209 5,138 5,191 4,209 Total Noninterest Expense 51,959 35,848 37,982 47,798 30,642 INCOME BEFORE PROVISION FOR INCOME TAXES 11,301 27,019 24,264 4,282 16,805 Provision/(benefit) for income taxes 2,595 7,572 5,967 (480 ) 3,063 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 8,706 $ 19,447 $ 18,297 $ 4,762 $ 13,742 PER COMMON SHARE DATA: Basic Earnings Per Common Share $ 0.36 $ 0.84 $ 0.80 $ 0.22 $ 0.71 Diluted Earnings Per Common Share 0.36 0.83 0.79 0.22 0.71 Cash Dividends Declared 0.22 0.22 0.20 0.20 0.20 (1) Includes $2.3 million related to non-PCD loans acquired in the William Penn acquisition on April 30, 2025. This amount reflects accounting guidance in effect prior to the Company's adoption of ASU 2025-08, under which the allowance for certain purchased loans was recognized through provision expense. (2) Includes release of merger and acquisition accruals related to William Penn acquisition in the fourth quarter of 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 March 31, 2026 December 31, 2025 March 31, 2025 (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 $ 19,647 $ 110 2.27 % $ 21,590 $ 135 2.48 % $ 20,794 $ 138 2.69 % Investment Securities: Taxable 715,209 6,486 3.68 711,663 6,477 3.61 569,800 4,309 3.07 Tax-Exempt 68,559 297 1.76 63,299 320 2.01 69,780 348 2.02 Total Securities 783,768 6,783 3.51 774,962 6,797 3.48 639,580 4,657 2.95 Federal Funds Sold 16,994 220 5.25 115,298 1,179 4.06 23,754 261 4.46 Loans, Net of Unearned Income 5,083,240 76,798 6.13 4,844,308 76,916 6.30 4,459,679 66,537 6.05 Restricted Investment in Bank Stocks 10,864 15 0.56 6,775 113 6.62 7,101 151 8.62 Total Earning Assets 5,914,513 83,926 5.75 5,762,933 85,140 5.86 5,150,908 71,744 5.65 Cash and Due from Banks 55,545 45,031 39,916 Other Assets 422,953 394,346 300,939 Total Assets $ 6,393,011 $ 6,202,310 $ 5,491,763 LIABILITIES & SHAREHOLDERS' EQUITY: Interest-bearing Demand $ 1,382,567 $ 5,417 1.59 % $ 1,269,387 $ 5,546 1.73 % $ 1,051,325 $ 4,681 1.81 % Money Market 1,216,581 7,470 2.49 1,256,345 8,446 2.67 1,027,355 6,941 2.74 Savings 363,593 300 0.33 322,606 61 0.08 260,965 54 0.08 Time 1,579,915 14,661 3.76 1,597,442 15,877 3.94 1,589,083 16,588 4.23 Total Interest-bearing Deposits 4,542,656 27,848 2.49 4,445,780 29,930 2.67 3,928,728 28,264 2.92 Short term borrowings 71,111 702 4.00 226 5 8.78 24,892 290 4.72 Long-term debt 11,733 126 4.36 23,185 257 4.40 23,533 257 4.43 Subordinated debt and trust preferred securities — — — 15,690 197 4.98 45,662 424 3.77 Total Interest-bearing Liabilities 4,625,500 28,676 2.51 4,484,881 30,389 2.69 4,022,815 29,235 2.95 Noninterest-bearing Demand 850,936 844,818 752,980 Other Liabilities 71,022 69,518 55,004 Shareholders' Equity 845,553 803,093 660,964 Total Liabilities & Shareholders' Equity $ 6,393,011 $ 6,202,310 $ 5,491,763 Net Interest Income $ 55,250 $ 54,751 $ 42,509 Taxable Equivalent Adjustment(1) 236 243 242 Net Interest Income (taxable equivalent basis) $ 55,486 $ 54,994 $ 42,751 Total Yield on Earning Assets 5.75 % 5.86 % 5.65 % Cost of funds 2.12 % 2.26 % 2.48 % Rate on Supporting Liabilities 2.51 2.69 2.95 Average Interest Spread 3.24 3.17 2.70 Tax-Equivalent Net Interest Margin 3.80 3.79 3.37 (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) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Allowance for Credit Losses on Loans: Beginning balance $ 36,091 $ 37,337 $ 37,615 $ 35,838 $ 35,514 Allowance for credit losses on loans acquired 4,415 — — 343 — Loans Charged off Commercial real estate CRE Nonowner Occupied (499 ) (394 ) — (691 ) — CRE Owner Occupied — (346 ) — — — Multifamily — — — — — Farmland — — — — — Commercial and industrial — — (91 ) (203 ) — Construction Residential Construction — — — — — Other Construction — — — — — Residential mortgage 1-4 Family 1st Lien — — — — — 1-4 Family Rental (13 ) — — — — HELOC and Junior Liens — — — — — Consumer (641 ) (28 ) (40 ) (15 ) (15 ) Total loans charged off (1,153 ) (768 ) (131 ) (909 ) (15 ) Recoveries of loans previously charged off Commercial real estate CRE Nonowner Occupied — 294 9 1 1 CRE Owner Occupied 93 — — — — Multifamily — — — — — Farmland — — — — — Commercial and industrial — — — 3 6 Construction Residential Construction — — — — — Other Construction — — — — — Residential mortgage 1-4 Family 1st Lien 2 2 3 83 2 1-4 Family Rental — — — — — HELOC and Junior Liens — — — — — Consumer 9 7 28 11 9 Total loans recovered 104 303 40 98 18 Balance before provision 39,457 36,872 37,524 35,370 35,517 Provision/(benefit) for credit losses - loans(1) 1,648 (781 ) (187 ) 2,245 321 Balance, end of quarter $ 41,105 $ 36,091 $ 37,337 $ 37,615 $ 35,838 Nonperforming Assets Total nonaccrual loans $ 29,641 $ 22,951 $ 17,957 $ 18,216 $ 24,045 Foreclosed real estate 8,420 7,806 9,346 9,816 1,402 Total nonperforming assets 38,061 30,757 27,303 28,032 25,447 Accruing loans 90 days or more past due — — 160 — 3 Total risk elements $ 38,061 $ 30,757 $ 27,463 $ 28,032 $ 25,450 (1) Includes $2.3 million related to non-PCD loans acquired in the William Penn acquisition on April 30, 2025. This amount reflects accounting guidance in effect prior to the Company's adoption of ASU 2025-08, under which the allowance for certain purchased loans was recognized through provision expense. 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) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Shareholders' Equity $ 887,405 $ 814,058 $ 796,323 $ 775,708 $ 667,933 Less: Goodwill 157,121 136,620 136,620 135,473 128,160 Less: Core Deposit and Other Intangibles 33,013 14,657 15,586 16,531 5,814 Tangible Equity $ 697,271 $ 662,781 $ 644,117 $ 623,704 $ 533,959 Common Shares Outstanding 25,296,763 23,047,203 23,039,223 22,915,194 19,362,094 Tangible Book Value per Share $ 27.56 $ 28.76 $ 27.96 $ 27.22 $ 27.58 Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses Three Months Ended (Dollars in thousands, except per share data) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Net Income Available to Common Shareholders $ 8,706 $ 19,447 $ 18,297 $ 4,762 $ 13,742 Less: BOLI Death Benefit Income 331 223 71 1 83 Less: Recoveries on loans previously acquired in business combinations(1) — — 534 — — Less: Swap cancellation gain — 83 279 — — Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution — — 420 — — Less: Gain on sale of pension assets — 192 — — — Plus: Merger and Acquisition Expenses(2) 7,723 (39 ) 233 11,011 314 Plus: Compensation expense for accelerated vesting of stock options and restricted stock awards 370 314 753 2,043 — Plus: Legal settlement expense 665 — — — — Less: Tax Effect of Non-Recurring Expenses 1,839 — 207 2,741 66 Net Income Excluding Non-Recurring Income and Expenses $ 15,294 $ 19,224 $ 17,772 $ 15,074 $ 13,907 Weighted-average Shares Outstanding 23,949,008 23,045,983 23,005,504 21,566,617 19,355,867 Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses $ 0.64 $ 0.83 $ 0.77 $ 0.70 $ 0.72 (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. (2) Includes release of merger and acquisition accruals related to William Penn acquisition in Q4 2025. Return on Average Tangible Common Equity Three Months Ended (Dollars in thousands) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Net income available to common shareholders $ 8,706 $ 19,447 $ 18,297 $ 4,762 $ 13,742 Plus: Intangible amortization, net of tax 1,027 735 746 588 338 9,733 20,182 19,043 5,350 14,080 Average shareholders' equity 845,553 803,093 783,547 670,491 660,964 Less: Average goodwill 147,021 136,620 135,486 130,824 128,160 Less: Average core deposit and other intangibles 20,835 14,969 16,003 9,824 6,023 Average tangible common shareholders' equity $ 677,697 $ 651,504 $ 632,058 $ 529,843 $ 526,781 Return on average tangible common equity(1) 5.82 % 12.29 % 11.95 % 4.05 % 10.84 % (1) Annualized ratio Core Efficiency Ratio (Non-GAAP) Three Months Ended (Dollars in thousands) Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Noninterest expense $ 51,959 $ 35,848 $ 37,982 $ 47,798 $ 30,642 Less: Merger and acquisition expenses(1) 7,723 (39 ) 233 11,011 314 Less: Compensation expense for accelerated vesting of stock options and restricted stock awards 370 314 753 2,043 — Less: Intangible amortization 1,300 930 944 744 428 Less: Loss/(gain) on sale or write-down of foreclosed assets, net 491 203 471 — (28 ) Less: Other expenses on foreclosed assets 427 445 — — — Less: Legal settlement expense 665 — — — — Efficiency ratio numerator 40,983 33,995 35,581 34,000 29,928 Net interest income 55,250 54,751 53,629 48,206 42,509 Noninterest income 9,604 7,277 8,183 6,143 5,239 Less: BOLI Death Benefit 331 223 71 1 83 Less: Recoveries on loans previously acquired in business combinations(2) — — 534 — — Less: Swap cancellation gain — 83 279 — — Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution — — 420 — — Less: Gain on sale of pension assets — 192 — — — Less: Net gain on sales of investment securities — 10 — — — Efficiency ratio denominator $ 64,523 $ 61,520 $ 60,508 $ 54,348 $ 47,665 Core efficiency ratio 63.52 % 55.26 % 58.80 % 62.56 % 62.79 % Tax effect on non-GAAP adjustments(3) 236 243 245 245 242 Tax-effected core efficiency ratio 63.29 % 55.04 % 58.57 % 62.28 % 62.47 % (1) Includes release of merger and acquisition accruals related to William Penn acquisition in Q4 2025. (2) 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. (3) Tax effected using a 21% statutory federal tax rate. Source: Mid Penn Bancorp