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

Published: 2026-04-21 18:56:05 ET MPB

Published on 04/21/2026 at 06:56 pm EDT

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:

(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

0.20

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

0.46

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

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

—

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

(22

)

Net gain on sales of SBA loans

163

100

—

Earnings from cash surrender value of life insurance

705

609

605

491

274

Net gain on sales of investment securities

—

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

1,094

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

0.20

(1)

(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

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

0.08

260,965

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

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

CRE Owner Occupied

—

Multifamily

—

Farmland

—

Commercial and industrial

—

Construction

Residential Construction

—

Other Construction

—

Residential mortgage

1-4 Family 1st Lien

1-4 Family Rental

—

HELOC and Junior Liens

—

Consumer

Total loans recovered

104

303

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

—

Total risk elements

38,061

30,757

27,463

28,032

25,450

(1)

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

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

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

—

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

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

Less: Recoveries on loans previously acquired in business combinations (2)

—

534

—

Less: Swap cancellation gain

—

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

—

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

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)

(3)

Tax effected using a 21% statutory federal tax rate.

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