Mid Penn Bancorp Inc.

10/21/2026 | Press release | Distributed by Public on 10/21/2026 15:13

MID PENN BANCORP, INC. REPORTS THIRD QUARTER EARNINGS AND DECLARES 64TH CONSECUTIVE QUARTERLY DIVIDEND (Form 8-K)

MID PENN BANCORP, INC. REPORTS THIRD QUARTER EARNINGS
AND DECLARES 64TH CONSECUTIVE QUARTERLY DIVIDEND
October 21, 2026 - Harrisburg, PA - 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 $21.6 million, or $0.85 per basic common share and $0.84 per diluted common share, for the quarter ended September 30, 2026, compared to $18.3 million, or $0.80 per basic and $0.79 per diluted common share, for the third quarter of 2025. Adjusted earnings per common share, excluding non-recurring income and expenses(1), was $0.88 for the third quarter of 2026. Adjustments exclude $1.3 million of non-recurring expense, and $789 thousand of non-recurring income. Mid Penn also declared a quarterly cash dividend of $0.23 per common share.
Key Highlights of the Third Quarter of 2026:
•Net income available to common shareholders for the third quarter of 2026 was $21.6 million, an increase of $3.3 million, or 18.2%, compared to the third quarter of 2025, and a decrease of $66 thousand, or 0.3%, compared to the second quarter of 2026. The year-over-year increase was primarily attributable to the William Penn and 1st Colonial acquisitions. Earnings per basic common share for the third quarter of 2026 were $0.85 and $0.84 per diluted common share, an increase from $0.80 per basic and $0.79 per diluted common share in the third quarter of 2025.
•Loan balances increased $19.3 million, or 1.4% (annualized), during the third quarter of 2026 compared to the second quarter of 2026. Total loans increased $815.3 million, or 16.9%, to $5.6 billion at September 30, 2026, compared to $4.8 billion at September 30, 2025. Excluding $597.5 million of loans acquired in the 1st Colonial acquisition, organic loan growth was $176.2 million,or 4.84% (annualized), from December 31, 2025.
•Deposits increased $141.8 million, or 9.4% (annualized), during the third quarter of 2026 compared to the second quarter of 2026, primarily driven by a $251.8 million increase in interest-bearing transaction accounts, offset by a $59.9 million decrease in time deposits and a $50.1 million decrease in noninterest-bearing deposits. Total deposits increased $752.3 million, or 14.1%, to $6.1 billion from September 30, 2025. Excluding $747.1 million of deposits from the 1st Colonial acquisition, organic deposits increased $133.3 million, or 3.4% (annualized), from December 31, 2025.
•Net interest margin decreased 14 basis points ("bps") to 3.92% for the quarter ended September 30, 2026, compared to 4.06% for the second quarter of 2026, primarily driven by lower loan yields resulting from a $1.0 million decrease in purchase accounting accretion income, as well as higher funding costs, partially offset by higher investment securities yields. Compared to the third quarter of 2025, net interest margin increased 32 bps from 3.60%, primarily driven by higher investment securities yields, and lower funding costs.
•The core efficiency ratio(1) remained relatively stable at 60.57% in the third quarter of 2026, compared to 59.82% in the second quarter of 2026, and 58.80% in the third quarter of 2025, reflecting continued expense discipline following the 1st Colonial and William Penn acquisitions. On a tax-effected basis, the core efficiency ratio was 60.38%, compared to 59.64% and 58.57%, respectively.
•During the third quarter of 2026, Mid Penn closed certain financial centers as part of its ongoing efforts to improve operating efficiency. The closures are expected to result in ongoing expense savings, with an anticipated earnback period of less than one year.
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•Book value per common share was unchanged at $35.62 as of September 30, 2026, compared to $35.62 as of June 30, 2026, and increased from $34.56 as of September 30, 2025. Tangible book value per common share (1) was $28.26 as of September 30, 2026, compared to $28.18 and $27.96 as of June 30, 2026 and September 30, 2025, respectively.
•As a result of the foregoing, the Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on November 13, 2026, to shareholders of record as of November 2, 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:
"The third quarter of 2026 was a solid quarter for Mid Penn. Strong deposit growth was partially offset by softer-than-expected loan growth and noninterest income generation. Effective expense management and continued strong asset quality helped keep overall results in line with our expectations.
As we enter the fourth quarter, we remain confident that both loan growth and noninterest income performance will improve, positioning us well through the end of 2026 and for continued success in 2027.
Based upon the overall financial success in the third quarter and year to date, we are pleased to declare a quarterly cash dividend of $0.23 per common share to our shareholders of record as of November 2, 2026."
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Net Interest Income
For the three months ended September 30, 2026, net interest income was $64.6 million, compared to net interest income of $65.3 million for the three months ended June 30, 2026, and $53.6 million for the three months ended September 30, 2025. Interest income for the quarter ended September 30, 2026 includes $3.1 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 September 30, 2026 was 3.92% compared to 4.06% for the second quarter of 2026, and 3.60% for the third quarter of 2025. The 14 bp decrease from the linked-quarter was partially attributable to the overall impact of purchase accounting adjustments, which contributed approximately 8 bps of the decline. The remaining decrease was primarily attributable to higher funding costs, partially offset by higher investment securities yields. Compared to the third quarter of 2025, net interest margin increased 32 bps from 3.60%, primarily driven by higher investment securities yields, and lower funding costs.
The yield on interest-earning assets decreased to 5.89% for the quarter ended September 30, 2026, from 5.99%, and increased from 5.81%, for the three months ended June 30, 2026, and September 30, 2025, respectively. The decrease from the second quarter of 2026 reflected lower yields on loans including the impact of reduced purchase accounting accretion income, partially offset by higher yields on investment securities.
For the nine months ended September 30, 2026, net interest income increased 28.3% to $185.2 million compared to net interest income of $144.3 million for the same period of 2025. The increase was primarily driven by a $38.8 million increase in interest income on loans and a $6.4 million increase in interest income on investment securities, compared to the same period in 2025.
Average Balances
Average balances continue to be impacted by the 1st Colonial acquisition given that the acquisition closed on February 27, 2026. Day one increases in loans, total assets, deposits, and total liabilities were $581.8 million, $842.5 million, $746.9 million and $751.7 million, respectively.
Average loans increased $35.9 million to $5.6 billion for the quarter ended September 30, 2026, compared to $5.6 billion for the quarter ended June 30, 2026, and increased $819.8 million compared to $4.8 billion for the quarter ended September 30, 2025.
Average deposits were $6.0 billion for the third quarter of 2026, an increase of $84.3 million, or 1.4%, from $5.9 billion in the second quarter of 2026 and an increase of $555.7 million, or 10.2%, from $5.5 billion for the third quarter of 2025, primarily due to the 1st Colonial and William Penn acquisitions, and organic growth. The average cost of deposits was 2.11% for the third quarter of 2026, representing a 4 bp increase from the second quarter of 2026, and a 26 bp decrease from the third quarter of 2025.
Cost of funds increased to 2.14%, compared to 2.09% in the second quarter of 2026, primarily reflecting higher costs on interest-bearing deposits.
Asset Quality
The total benefit for credit losses, including the benefit for credit losses on off-balance sheet credit exposures, was $1.6 million for the three months ended September 30, 2026, compared to the provision for credit losses of $528 thousand for the three months ended June 30, 2026, and a benefit for credit losses of $434 thousand for the three months ended September 30, 2025. The quarter-over-quarter change in the benefit for credit losses was primarily driven by improved macroeconomic assumptions, including more favorable forecasts for both unemployment and GDP, as well as an increase in loan prepayment speeds, partially offset by an increase in reserve on three individually analyzed C&I loans. Credit quality remained stable during the quarter, supported by minimal net charge-offs and continued disciplined credit risk management. Net charge-offs for the three months ended September 30, 2026, were $78 thousand, or approximately 0.001% of total average loans.
The provision for credit losses on loans was $887 thousand for the nine months ended September 30, 2026, a decrease of $1.5 million compared to the provision for credit losses of $2.4 million for the nine months ended September 30, 2025. The decrease for the nine months ended September 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by increases from qualitative adjustments to several segments of the portfolio. The benefit for credit losses on off-balance sheet credit exposures was $243 thousand for the three months ended September 30, 2026, compared to the benefit of $247 thousand for the three months ended September 30, 2025. The benefit for credit losses on
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off-balance sheet credit exposures was $326 thousand for the nine months ended September 30, 2026, compared to the benefit of $243 thousand for the nine months ended September 30, 2025.
Allowance for credit losses on loans was 0.71%, 0.74%, and 0.77% of loans, net of unearned income at September 30, 2026, June 30, 2026, and September 30, 2025, respectively.
Total nonperforming assets were $47.0 million at September 30, 2026, compared to nonperforming assets of $36.8 million at June 30, 2026, and $27.3 million at September 30, 2025. The increase during the third quarter of 2026 was primarily driven by an $8.2 million increase in nonaccrual loans, including $7.0 million in commercial real estate loans, and a $1.9 million increase in foreclosed owner-occupied commercial real estate.
Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.73% at September 30, 2026, compared to 0.71% and 0.68% at June 30, 2026 and September 30, 2025, respectively.
Capital
Shareholders' equity increased $732 thousand, or 0.1%, to $902.6 million as of September 30, 2026, from $901.9 million as of June 30, 2026. Retained earnings increased $15.8 million, or 6.6%, from $238.2 million as of June 30, 2026 to $254.0 million as of September 30, 2026. Regulatory capital ratios for Mid Penn and the Bank indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at September 30, 2026. Additionally, Mid Penn declared $5.8 million in dividends during the third quarter of 2026.
On April 21, 2026, Mid Penn's Board of Directors authorized a renewal and increase to its treasury stock repurchase program ("the Program"), increasing the authorized repurchase amount to an additional $50.0 million of Mid Penn's outstanding common stock through April 30, 2027. No shares were repurchased during the third quarter of 2026. As of September 30, 2026, Mid Penn repurchased a total of 595,891 shares of common stock at an average price of $24.82 per share under the Program.
Noninterest Income
For the three months ended September 30, 2026, noninterest income totaled $10.0 million, a decrease of $548 thousand, or 5.2%, from $10.6 million for the second quarter of 2026. The decrease was primarily driven by a $225 thousand decrease in earnings from the cash surrender value of life insurance, and a $437 thousand decrease in other noninterest income, including a $406 thousand decrease in loan-level swap fees. These decreases were partially offset by a $415 thousand increase from the release of a contingent liability generated from a previous acquisition, and a $332 thousand increase from acquisition related lease adjustments. Additionally, there was a $537 thousand increase in loss on disposal of fixed assets.
For the nine months ended September 30, 2026, noninterest income totaled $30.2 million, an increase of $10.7 million, or 54.5%, compared to noninterest income of $19.6 million for the nine months ended September 30, 2025. The increase was primarily driven by a $7.6 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $1.2 million increase in earnings from the cash surrender value of life insurance, a $485 thousand increase on ATM debit card interchange fees, and a $645 thousand increase in other noninterest income, including a $680 thousand increase in insurance commissions.
Noninterest Expense
For the three months ended September 30, 2026, noninterest expense totaled $48.6 million, an increase of $823 thousand, or 1.7%, compared to $47.8 million in the second quarter of 2026. The increase was primarily driven by a $436 thousand increase in the write-down on other real estate owned property, and an $809 thousand increase in other noninterest expense, including a $687 thousand increase in expenses relate to branch optimization. These increases were partially offset by a $446 thousand decrease in salaries and employee benefits.
For the nine months ended September 30, 2026, noninterest expense totaled $148.3 million, an increase of $31.9 million, or 27.4%, compared to $116.4 million for the nine months ended September 30, 2025. The increase was primarily driven by a $18.8 million increase in salaries and benefits, reflecting additional staff from the 1st Colonial, Cumberland Advisors, and William Penn acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $2.8 million, $1.8 million, and $2.7 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Intangible amortization also increased $2.7 million. These increases were partially offset by a $3.7 million decrease in merger and acquisition expenses compared to the same period of 2025.
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The core efficiency ratio(1) remained relatively stable at 60.57% for the third quarter of 2026, compared to 59.82% for the second quarter of 2026 and 58.80% for the third quarter of 2025, reflecting continued expense discipline following the 1st Colonial and William Penn acquisitions.
(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.
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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 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.
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SUMMARY FINANCIAL HIGHLIGHTS (Unaudited):
(Dollars in thousands, except per share data) Sep. 30,
2026
Jun. 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
Ending Balances:
Investment securities $ 841,612 $ 878,026 $ 830,499 $ 769,045 $ 781,888
Loans, net of unearned income 5,636,482 5,617,169 5,509,940 4,862,838 4,821,134
Total assets 7,140,000 7,062,910 6,964,809 6,133,896 6,267,349
Total deposits 6,095,051 5,953,297 5,970,967 5,214,663 5,342,720
Shareholders' equity 902,639 901,907 887,405 814,058 796,323
Average Balances:
Investment securities 865,227 843,317 783,768 774,962 782,020
Loans, net of unearned income 5,623,990 5,588,129 5,083,240 4,844,308 4,804,163
Total assets 7,088,936 6,996,021 6,393,011 6,202,310 6,385,751
Total deposits 6,023,820 5,939,499 5,393,592 5,290,598 5,468,144
Shareholders' equity 904,814 892,092 845,553 803,093 783,547
Three Months Ended
Income Statement: Sep. 30,
2026
Jun. 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
Net interest income $ 64,640 $ 65,280 $ 55,250 $ 54,751 $ 53,629
(Benefit)/provision for credit losses (1,561) 528 1,594 (839) (434)
Noninterest income 10,038 10,586 9,604 7,277 8,183
Noninterest expense 48,590 47,767 51,959 35,848 37,982
Income before provision for income taxes 27,649 27,571 11,301 27,019 24,264
Provision for income taxes 6,024 5,880 2,595 7,572 5,967
Net income available to shareholders 21,625 21,691 8,706 19,447 18,297
Net income excluding non-recurring income and expenses (1)
22,207 22,019 15,294 19,224 17,772
Per Share:
Basic earnings per common share $ 0.85 $ 0.86 $ 0.36 $ 0.84 $ 0.80
Diluted earnings per common share 0.84 0.85 0.36 0.83 0.79
Cash dividends declared 0.23 0.22 0.22 0.22 0.20
Book value per common share 35.62 35.62 35.08 35.32 34.56
Tangible book value per common share (1)
28.26 28.18 27.56 28.76 27.96
Asset Quality:
Net charge-offs to average loans (3)
0.006 % 0.002 % 0.084 % 0.038 % 0.008 %
Non-performing loans to total loans 0.65 0.51 0.54 0.47 0.37
Non-performing asset to total loans and other real estate 0.83 0.65 0.69 0.63 0.57
Non-performing asset to total assets 0.66 0.52 0.55 0.50 0.44
ACL on loans to total loans 0.71 0.74 0.75 0.74 0.77
ACL on loans to nonperforming loans 109.81 146.52 138.68 157.25 207.92
Profitability:
Return on average assets (3)
1.21 % 1.24 % 0.55 % 1.24 % 1.14 %
Return on average equity (3)
9.48 9.75 4.18 9.61 9.26
Return on average tangible common equity (1) (3)
12.71 13.20 5.82 12.29 11.95
Tax-equivalent net interest margin 3.92 4.06 3.80 3.79 3.60
Core Efficiency ratio (1)
60.57 59.82 63.52 55.26 58.80
Capital Ratios:
Tier 1 Capital (to Average Assets) (2)
10.8 % 10.7 % 11.4 % 11.0 % 10.4 %
Common Tier 1 Capital (to Risk Weighted Assets) (2)
13.1 12.8 12.8 13.5 13.9
Tier 1 Capital (to Risk Weighted Assets) (2)
13.1 12.8 12.8 13.5 13.9
Total Capital (to Risk Weighted Assets) (2)
13.8 13.5 13.6 14.3 15.5
(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, 2026 are preliminary estimates while prior period ratios are actual.
(3)Annualized ratio
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CONSOLIDATED BALANCE SHEETS (Unaudited):
(Dollars in thousands, except share data) Sep. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sep. 30, 2025
ASSETS
Cash and due from banks $ 58,237 $ 55,168 $ 60,967 $ 46,695 $ 18,013
Interest-bearing balances with other financial institutions 18,630 15,367 19,383 29,178 24,736
Federal funds sold 92,241 16,111 60,840 23,045 214,420
Total cash and cash equivalents 169,108 86,646 141,190 98,918 257,169
Investment Securities:
Held to maturity, at amortized cost 365,680 372,866 340,957 347,285 354,094
Available for sale, at fair value 470,757 499,773 484,130 416,314 427,352
Equity securities available for sale, at fair value 5,175 5,387 5,412 5,446 442
Loans held for sale 20,215 16,595 16,554 3,668 6,085
Loans, net of unearned income 5,636,482 5,617,169 5,509,940 4,862,838 4,821,134
Less: Allowance for credit losses (40,244) (41,640) (41,105) (36,091) (37,337)
Net loans 5,596,238 5,575,529 5,468,835 4,826,747 4,783,797
Premises and equipment, net 47,161 49,236 49,611 48,742 48,491
Operating lease right of use asset 14,903 15,872 16,803 15,169 15,700
Finance lease right of use asset 2,233 2,278 2,323 2,368 2,413
Cash surrender value of life insurance 118,330 117,515 116,474 95,351 95,015
Restricted investment in bank stocks 11,805 15,720 10,081 7,576 6,737
Accrued interest receivable 34,620 33,391 32,958 29,640 29,705
Deferred income taxes 27,418 23,227 23,798 21,416 27,475
Goodwill 157,121 157,121 157,121 136,620 136,620
Core deposit and other intangibles, net 29,465 31,173 33,013 14,657 15,586
Foreclosed assets held for sale 10,321 8,390 8,420 7,806 9,346
Other assets 59,450 52,191 57,129 56,173 51,322
Total Assets $ 7,140,000 $ 7,062,910 $ 6,964,809 $ 6,133,896 $ 6,267,349
LIABILITIES & SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $ 923,275 $ 973,371 $ 933,497 $ 834,013 $ 836,374
Interest-bearing transaction accounts 3,551,344 3,299,576 3,357,497 2,829,175 2,852,361
Time 1,620,432 1,680,350 1,679,973 1,551,475 1,653,985
Total Deposits 6,095,051 5,953,297 5,970,967 5,214,663 5,342,720
Short-term borrowings 68,000 137,500 31,500 20,833 -
Long-term debt 2,808 2,902 3,021 23,139 23,258
Subordinated debt and trust preferred securities - - - - 37,149
Operating lease liability 15,367 16,275 17,186 15,405 15,973
Accrued interest payable 13,025 12,175 12,195 10,942 16,460
Other liabilities 43,110 38,854 42,535 34,856 35,466
Total Liabilities 6,237,361 6,161,003 6,077,404 5,319,838 5,471,026
Shareholders' Equity:
Common stock, par value $1.00 per share; 40.0 million shares authorized 25,948 25,924 25,817 23,567 23,551
Additional paid-in capital 663,367 661,903 659,883 589,421 588,405
Retained earnings 254,017 238,224 222,154 219,685 205,320
Accumulated other comprehensive loss (25,691) (9,142) (8,157) (6,323) (8,907)
Treasury stock (15,002) (15,002) (12,292) (12,292) (12,046)
Total Shareholders' Equity 902,639 901,907 887,405 814,058 796,323
Total Liabilities and Shareholders' Equity $ 7,140,000 $ 7,062,910 $ 6,964,809 $ 6,133,896 $ 6,267,349
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CONSOLIDATED STATEMENTS OF INCOME (Unaudited):
Three Months Ended
(Dollars in thousands, except per share data) Sep. 30, 2026 Jun. 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
INTEREST INCOME
Loans, including fees $ 88,685 $ 88,574 $ 76,798 $ 76,916 $ 76,262
Investment securities:
Taxable 8,047 7,558 6,501 6,590 6,614
Tax-exempt 277 284 297 320 331
Other interest-bearing balances 107 117 110 135 196
Federal funds sold 466 159 220 1,179 3,463
Total Interest Income 97,582 96,692 83,926 85,140 86,866
INTEREST EXPENSE
Deposits 32,031 30,619 27,848 29,930 32,631
Short-term borrowings 884 764 702 5 -
Long-term and subordinated debt 27 29 126 454 606
Total Interest Expense 32,942 31,412 28,676 30,389 33,237
Net Interest Income 64,640 65,280 55,250 54,751 53,629
Net (benefit)/provision for credit losses (1,561) 528 1,594 (839) (434)
Net Interest Income After (Benefit)/Provision for Credit Losses 66,201 64,752 53,656 55,590 54,063
NONINTEREST INCOME
Fiduciary and wealth management 3,908 3,891 3,661 1,412 1,340
ATM debit card interchange 1,177 1,169 1,035 1,053 1,019
Service charges on deposits 707 632 636 634 647
Mortgage banking 1,159 1,119 314 552 1,013
Mortgage hedging 100 113 81 (22) 50
Net gain on sales of SBA loans 14 27 163 100 -
Earnings from cash surrender value of life insurance 816 1,041 705 609 605
Net gain on sales of investment securities - - - 10 -
Other 2,157 2,594 3,009 2,929 3,509
Total Noninterest Income 10,038 10,586 9,604 7,277 8,183
NONINTEREST EXPENSE
Salaries and employee benefits 26,499 26,945 23,346 20,026 20,941
Software licensing and utilization 4,159 4,155 3,598 3,406 3,310
Occupancy, net 2,964 2,891 3,253 2,624 2,642
Equipment 1,758 1,684 1,553 1,435 1,248
Shares tax 1,109 822 964 245 1,006
Legal and professional fees 1,710 2,157 1,688 992 1,070
ATM/card processing 771 689 757 771 557
Intangible amortization 1,708 1,819 1,300 930 944
FDIC assessment 785 663 800 1,046 422
Loss on sale or write-down of foreclosed assets, net 440 4 491 203 471
Merger and acquisition (1)
43 103 7,723 (39) 233
Other 6,644 5,835 6,486 4,209 5,138
Total Noninterest Expense 48,590 47,767 51,959 35,848 37,982
INCOME BEFORE PROVISION FOR INCOME TAXES 27,649 27,571 11,301 27,019 24,264
Provision for income taxes 6,024 5,880 2,595 7,572 5,967
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 21,625 $ 21,691 $ 8,706 $ 19,447 $ 18,297
PER COMMON SHARE DATA:
Basic Earnings Per Common Share $ 0.85 $ 0.86 $ 0.36 $ 0.84 $ 0.80
Diluted Earnings Per Common Share 0.84 0.85 0.36 0.83 0.79
Cash Dividends Declared 0.23 0.22 0.22 0.22 0.20
(1) Includes release of merger and acquisition accruals related to the William Penn acquisition in the fourth quarter of 2025.
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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, 2026 June 30, 2026 September 30, 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 $ 18,101 $ 107 2.35 % $ 19,067 $ 117 2.46 % $ 26,950 $ 196 2.89 %
Investment Securities:
Taxable 811,062 7,835 3.83 787,477 7,213 3.67 716,356 6,502 3.60
Tax-Exempt 54,165 277 2.03 55,840 284 2.04 65,664 331 2.00
Total Securities 865,227 8,112 3.72 843,317 7,497 3.57 782,020 6,833 3.47
Federal Funds Sold 49,000 466 3.77 13,686 129 3.78 310,525 3,463 4.42
Loans, Net of Unearned Income 5,623,990 88,685 6.26 5,588,129 88,574 6.36 4,804,163 76,262 6.30
Restricted Investment in Bank Stocks 13,066 212 6.44 12,292 345 11.26 7,143 112 6.22
Total Earning Assets 6,569,384 97,582 5.89 6,476,491 96,662 5.99 5,930,801 86,866 5.81
Cash and Due from Banks 53,451 53,422 49,582
Other Assets 466,101 466,108 405,368
Total Assets $ 7,088,936 $ 6,996,021 $ 6,385,751
LIABILITIES & SHAREHOLDERS' EQUITY:
Interest-bearing Demand $ 1,718,281 $ 7,561 1.75 % $ 1,660,007 $ 6,712 1.62 % $ 1,268,802 $ 5,736 1.79 %
Money Market 1,297,153 8,427 2.58 1,243,822 7,838 2.53 1,238,470 9,046 2.90
Savings 420,915 685 0.65 433,917 711 0.66 333,545 64 0.08
Time 1,659,781 15,358 3.67 1,668,054 15,358 3.69 1,774,625 17,785 3.98
Total Interest-bearing Deposits 5,096,130 32,031 2.49 5,005,800 30,619 2.45 4,615,442 32,631 2.80
Short term borrowings 88,756 884 3.95 79,875 764 3.84 1 - -
Long-term debt 2,839 27 3.77 2,886 29 4.03 23,302 264 4.49
Subordinated debt and trust preferred securities - - - - - - 37,224 342 3.65
Total Interest-bearing Liabilities 5,187,725 32,942 2.52 5,088,561 31,412 2.48 4,675,969 33,237 2.82
Noninterest-bearing Demand 927,690 933,699 852,702
Other Liabilities 68,707 81,669 73,533
Shareholders' Equity 904,814 892,092 783,547
Total Liabilities & Shareholders' Equity $ 7,088,936 $ 6,996,021 $ 6,385,751
Net Interest Income $ 64,640 $ 65,250 $ 53,629
Taxable Equivalent Adjustment (1)
235 231 245
Net Interest Income (taxable equivalent basis) $ 64,875 $ 65,481 $ 53,874
Total Yield on Earning Assets 5.89 % 5.99 % 5.81 %
Cost of funds 2.14 % 2.09 % 2.39 %
Rate on Supporting Liabilities 2.52 2.48 2.82
Average Interest Spread 3.37 3.51 2.99
Tax-Equivalent Net Interest Margin 3.92 4.06 3.60
(1)Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance.
(2)Annualized ratios
10
ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited):
(Dollars in thousands) Sep. 30,
2026
Jun. 30,
2026
Mar. 31,
2026
Dec. 31,
2025
Sep. 30,
2025
Allowance for Credit Losses on Loans:
Beginning balance $ 41,640 $ 41,105 $ 36,091 $ 37,337 $ 37,615
Allowance for credit losses on loans acquired - - 4,415 - -
Loans Charged off
Commercial real estate
CRE Nonowner Occupied - (2) (499) (394) -
CRE Owner Occupied - - - (346) -
Multifamily - - - - -
Farmland - - - - -
Commercial and industrial - - - - (91)
Construction
Residential Construction - - - - -
Other Construction - - - - -
Residential mortgage
1-4 Family 1st Lien (16) - - - -
1-4 Family Rental - - (13) - -
HELOC and Junior Liens (53) (48) - - -
Consumer (21) (11) (641) (28) (40)
Total loans charged off (90) (61) (1,153) (768) (131)
Recoveries of loans previously charged off
Commercial real estate
CRE Nonowner Occupied - - - 294 9
CRE Owner Occupied - 2 93 - -
Multifamily - - - - -
Farmland - - - - -
Commercial and industrial (1)
(2) 6 - - -
Construction
Residential Construction - - - - -
Other Construction - - - - -
Residential mortgage
1-4 Family 1st Lien 2 3 2 2 3
1-4 Family Rental - 13 - - -
HELOC and Junior Liens - - - - -
Consumer 12 15 9 7 28
Total loans recovered 12 39 104 303 40
Balance before provision 41,562 41,083 39,457 36,872 37,524
(Benefit)/provision for credit losses - loans (1,318) 557 1,648 (781) (187)
Balance, end of quarter $ 40,244 $ 41,640 $ 41,105 $ 36,091 $ 37,337
Nonperforming Assets
Total nonaccrual loans $ 36,650 $ 28,420 $ 29,641 $ 22,951 $ 17,957
Foreclosed real estate 10,321 8,390 8,420 7,806 9,346
Total nonperforming assets 46,971 36,810 38,061 30,757 27,303
Accruing loans 90 days or more past due - 213 - - 160
Total risk elements $ 46,971 $ 37,023 $ 38,061 $ 30,757 $ 27,463
(1)Commercial and industrial recoveries for the three months ended September 30, 2026 include an adjustment related to recoveries on loans acquired in the 1st Colonial acquisition.
11
RECONCILIATION OF NON-GAAP MEASURES (Unaudited)
Explanatory note:
Mid Penn Bancorp Inc. published this content on October 21, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 21, 2026 at 21:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]