Mid Penn Bancorp, Inc. Reports Second Quarter Earnings and Declares 63rd Consecutive Quarterly Dividend

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Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

nonperforming assets financial

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

brokered certificates of deposit financial

Brokered certificates of deposit are time-deposit savings instruments issued by banks but sold through independent brokerage firms, like buying a fixed-term bond through a shop rather than directly at a bank branch. They matter to investors because they often offer higher interest rates and the ability to buy different bank issuers in one place, but they carry trade-off of reduced liquidity and potential price fluctuations if you sell before maturity; FDIC protection applies up to insured limits per bank.

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07/22/2026 - 04:05 PM

HARRISBURG, Pa.--(BUSINESS WIRE)-- 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 $21.7 million, or $0.86 per basic common share and $0.85 per diluted common share, for the quarter ended June 30, 2026, compared to $4.8 million, or $0.22 per basic and diluted common share, for the second quarter of 2025. Earnings exceeded the consensus analyst estimate of $0.79 per diluted common share for the second quarter of 2026. Mid Penn also declared a quarterly cash dividend of $0.23 per common share, up 4.55% from the prior quarter.

Key Highlights of the Second Quarter of 2026:

Net income available to common shareholders for the second quarter of 2026 was $21.7 million, an increase of $16.9 million or 355.5% compared to the second quarter of 2025, and an increase of $13.0 million, or 149.2%, compared to the first quarter of 2026. The year-over-year increase reflects the William Penn and 1st Colonial acquisitions, while the linked-quarter comparison reflects a full quarter of 1st Colonial results. Earnings per basic common share for the second quarter of 2026 were $0.86 and $0.85 per diluted common share, an increase from $0.22 per both basic and diluted common share in the second quarter of 2025.
Net interest margin increased to 4.06% for the quarter ended June 30, 2026, from 3.80% for the first quarter of 2026, and 3.44% for the second quarter of 2025. This represents increases of 26 and 62 basis points ("bps") compared to the first quarter of 2026 and second quarter of 2025, respectively. The increase from the second quarter of 2025 was driven by higher investment securities yields, higher loan yields, and lower funding costs.
Loan balances increased $107.2 million, or 7.8% (annualized), during the second quarter of 2026 compared to the first quarter of 2026. Total loans increased $784.3 million, or 16.2%, to $5.6 billion at June 30, 2026, compared to $4.8 billion at June 30, 2025. Excluding the $597.5 million of loans acquired in the 1st Colonial acquisition, organic loan growth was $186.8 million from June 30, 2025.
Deposits decreased $17.7 million, or 1.2% (annualized), during the second quarter of 2026 compared to the first quarter of 2026. Total deposits increased $503.6 million, or 9.2%, to $6.0 billion from June 30, 2025. Excluding $747.1 million of deposits from the 1st Colonial acquisition, organic deposits decreased $243.4 million, or 17.9% (annualized), from June 30, 2025, primarily reflecting the planned reduction of approximately $225 million in brokered certificates of deposit during 2025.
The core efficiency ratio⁽¹⁾ improved to 59.82% in the second quarter of 2026, compared to 63.52% in the first quarter of 2026, and 62.56% in the second quarter of 2025. This improvement was driven by higher net interest income and disciplined management of noninterest expense following the 1st Colonial and William Penn acquisitions.
Book value per common share improved to $35.62 as of June 30, 2026, compared to $35.08 as of March 31, 2026, and $33.85 as of June 30, 2025. Tangible book value per common share⁽¹⁾ was $28.18 as of June 30, 2026, compared to $27.56 and $27.22 as of March 31, 2026 and June 30, 2025, respectively.
Mid Penn returned capital to shareholders through the repurchase of 76,000 shares of common stock during the second quarter of 2026.
As a result of the foregoing, the Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on August 14, 2026, to shareholders of record as of August 3, 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:

"We are pleased to share our second quarter operating performance with our shareholders. Results include earnings above consensus expectations, meaningful organic loan growth, healthy net interest margin expansion, a reduction in the efficiency ratio to below 60%, stable asset quality, and improvements in both book value and tangible book value.

Comparisons to the second quarter of 2025 and the first quarter of 2026 are somewhat challenging, as both previous periods were impacted by merger and acquisition-related costs, as well as significant balance sheet expansion. However, when measured against analyst expectations and our own internal expectations, second quarter performance was favorable across nearly every key metric.

During the quarter, we were also active in common stock repurchases, placing 76,000 shares into treasury and returning approximately $2.5 million to the shareholders.

In light of this solid second quarter performance, the Board has also elected to increase the quarterly dividend by 4.55%, from $0.22 per share in the first quarter to $0.23 per share in the second quarter.

We look forward to building on this momentum through the remainder of 2026."

Net Interest Income

For the three months ended June 30, 2026, net interest income was $65.3 million, compared to net interest income of $55.3 million for the three months ended March 31, 2026, and $48.2 million for the three months ended June 30, 2025. Interest income for the quarter ended June 30, 2026, includes $4.3 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 June 30, 2026 was 4.06% compared to 3.80% and 3.44% for the first quarter of 2026 and second quarter of 2025, respectively, representing a 26 bp increase from the first quarter of 2026, and a 62 bp increase compared to the same period in 2025.

The yield on interest-earning assets increased to 5.99% for the quarter ended June 30, 2026, from 5.75% and 5.69%, for the three months ended March 31, 2026, and June 30, 2025, respectively. The increase from the first quarter of 2026 was primarily due to higher yields on loans, including the impact of accretion income on acquired loans.

For the six months ended June 30, 2026, net interest income increased 32.9% to $120.5 million compared to net interest income of $90.7 million for the same period of 2025. The increase was primarily driven by a $26.4 million increase in interest income on loans and a $5.0 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 $504.9 million to $5.6 billion for the quarter ended June 30, 2026, compared to $5.1 billion for the quarter ended March 31, 2026, and increased $863.5 million compared to $4.7 billion for the quarter ended June 30, 2025.

Average deposits were $5.9 billion for the second quarter of 2026, an increase of $545.9 million, or 10.1%, from $5.4 billion in the first quarter of 2026 and an increase of $779.7 million, or 15.1%, from $5.2 billion for the second quarter of 2025, primarily due to the 1st Colonial and William Penn acquisitions, and organic growth. The average cost of deposits was 2.07% for the second quarter of 2026, representing a 2 bp decrease from the first quarter of 2026, and a 34 bp decrease from the second quarter of 2025.

Cost of funds decreased to 2.09%, compared to 2.12% in the first quarter of 2026, primarily reflecting the repricing of higher-cost time deposits as well as a favorable shift in the funding mix, including an $82.8 million increase in noninterest-bearing deposits.

Asset Quality

The total provision for credit losses, including the benefit for credit losses on off-balance sheet credit exposures, was $528 thousand for the three months ended June 30, 2026, compared to the provision for credit losses of $1.6 million for the three months ended March 31, 2026, and a provision for credit losses of $2.3 million for the three months ended June 30, 2025. The quarter-over-quarter change in the provision for credit losses was primarily driven by qualitative adjustments to the CRE owner-occupied portfolio and improved macroeconomic assumptions, offset by an increase in reserve on one individually analyzed C&I loan. 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 June 30, 2026, were $22 thousand, or approximately 0.0004% of total average loans.

The provision for credit losses on loans was $2.2 million for the six months ended June 30, 2026, a decrease of $361 thousand compared to the provision for credit losses of $2.6 million for the six months ended June 30, 2025. The decrease for the six months ended June 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 $29 thousand for the three months ended June 30, 2026, compared to the provision of $24 thousand for the three months ended June 30, 2025. The benefit for credit losses on off-balance sheet credit exposures was $83 thousand for the six months ended June 30, 2026, compared to the provision of $4 thousand for the six months ended June 30, 2025.

Allowance for credit losses - loans was 0.74%, 0.75%, and 0.78% of loans, net of unearned income at June 30, 2026, March 31, 2026, and June 30, 2025, respectively.

Total nonperforming assets were $36.8 million at June 30, 2026, compared to nonperforming assets of $38.1 million at March 31, 2026, and $28.0 million at June 30, 2025. The decrease during the second quarter of 2026 was primarily driven by the payoff of one commercial real estate loan with a balance of $1.3 million.

Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.71% at June 30, 2026, compared to 0.70% and 0.58% at March 31, 2026 and June 30, 2025, respectively.

Capital

Shareholders’ equity increased $14.5 million, or 1.6%, to $901.9 million as of June 30, 2026, from $887.4 million as of March 31, 2026. Retained earnings increased $16.1 million, or 7.2%, from $222.2 million as of March 31, 2026 to $238.2 million as of June 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 June 30, 2026. Additionally, Mid Penn declared $5.6 million in dividends during the second 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 authorized repurchase amount to $50.0 million of Mid Penn’s outstanding common stock through April 30, 2027. During the second quarter of 2026, Mid Penn repurchased 76,000 shares under the program. As of June 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 June 30, 2026, noninterest income totaled $10.6 million, an increase of $1.0 million, or 10.2%, from $9.6 million for the first quarter of 2026. The increase was primarily driven by an $805 thousand increase in mortgage banking income, a $336 thousand increase in earnings from the cash surrender value of life insurance, and a $230 thousand increase in fiduciary and wealth management income, partially offset by a $415 thousand decrease in other noninterest income.

For the six months ended June 30, 2026, noninterest income totaled $20.2 million, an increase of $8.8 million, or 77.4%, compared to noninterest income of $11.4 million for the six months ended June 30, 2025. The increase was primarily driven by a $5.0 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $981 thousand increase in earnings from the cash surrender value of life insurance, and a $2.0 million increase in other noninterest income, including a $653 thousand increase in insurance commissions, and a $558 thousand increase in death benefits received.

Noninterest Expense

For the three months ended June 30, 2026, noninterest expense totaled $47.8 million, a decrease of $4.2 million, or 8.1%, compared to $52.0 million in the first quarter of 2026. The decrease was primarily driven by a $7.6 million decrease in merger and acquisition expenses, partially offset by a $3.6 million increase in salaries and employee benefits, resulting from the acquisition of 1st Colonial.

For the six months ended June 30, 2026, noninterest expense totaled $99.7 million, an increase of $21.3 million, or 27.1%, compared to $78.4 million for the six months ended June 30, 2025. The increase was primarily driven by a $13.2 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 $1.9 million, $1.5 million, and $2.0 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Intangible amortization also increased $1.9 million. These increases were partially offset by a $3.5 million decrease in merger and acquisition expenses compared to the same period of 2025.

The core efficiency ratio⁽¹⁾ was 59.8% for the second quarter of 2026, compared to 63.5% for the first quarter of 2026 and 62.6% for the second quarter of 2025. The linked-quarter improvement was primarily driven by growth in net interest income, which outpaced the increase in core noninterest expense associated with a full quarter of 1st Colonial operations. Mid Penn continues to evaluate opportunities to achieve cost synergies as integration progresses.

⁽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 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)	Jun. 30, 2026			Mar. 31, 2026			Dec. 31, 2025			Sep. 30, 2025			Jun. 30, 2025
Ending Balances:
Investment securities	$	878,026		$	830,499		$	769,045		$	781,888		$	769,211
Loans, net of unearned income		5,617,169			5,509,940			4,862,838			4,821,134			4,832,898
Total assets		7,062,910			6,964,809			6,133,896			6,267,349			6,354,543
Total deposits		5,953,297			5,970,967			5,214,663			5,342,720			5,449,664
Shareholders' equity		901,907			887,405			814,058			796,323			775,708
Average Balances:
Investment securities		843,317			783,768			774,962			782,020			652,105
Loans, net of unearned income		5,588,129			5,083,240			4,844,308			4,804,163			4,724,638
Total assets		6,996,021			6,393,011			6,202,310			6,385,751			6,036,045
Total deposits		5,939,499			5,393,592			5,290,598			5,468,144			5,159,754
Shareholders' equity		892,092			845,553			803,093			783,547			670,491

	Three Months Ended
Income Statement:	Jun. 30, 2026			Mar. 31, 2026			Dec. 31, 2025			Sep. 30, 2025			Jun. 30, 2025
Net interest income	$	65,280		$	55,250		$	54,751		$	53,629		$	48,206
Provision/(benefit) for credit losses⁽⁴⁾		528			1,594			(839	)		(434	)		2,269
Noninterest income		10,586			9,604			7,277			8,183			6,143
Noninterest expense		47,767			51,959			35,848			37,982			47,798
Income before provision for income taxes		27,571			11,301			27,019			24,264			4,282
Provision/(benefit) for income taxes		5,880			2,595			7,572			5,967			(480	)
Net income available to shareholders		21,691			8,706			19,447			18,297			4,762
Net income excluding non-recurring income and expenses ⁽¹⁾		22,019			15,294			19,224			17,772			15,074

Per Share:
Basic earnings per common share	$	0.86		$	0.36		$	0.84		$	0.80		$	0.22
Diluted earnings per common share		0.85			0.36			0.83			0.79			0.22
Cash dividends declared		0.22			0.22			0.22			0.20			0.20
Book value per common share		35.62			35.08			35.32			34.56			33.85
Tangible book value per common share ⁽¹⁾		28.18			27.56			28.76			27.96			27.22

Asset Quality:
Net charge-offs to average loans⁽³⁾		0.002	%		0.084	%		0.038	%		0.008	%		0.069	%
Non-performing loans to total loans		0.51			0.54			0.47			0.37			0.38
Non-performing asset to total loans and other real estate		0.65			0.69			0.63			0.57			0.58
Non-performing asset to total assets		0.52			0.55			0.50			0.44			0.44
ACL on loans to total loans		0.74			0.75			0.74			0.77			0.78
ACL on loans to nonperforming loans		146.52			138.68			157.25			207.92			206.49

Profitability:
Return on average assets⁽³⁾		1.24	%		0.55	%		1.24	%		1.14	%		0.32	%
Return on average equity⁽³⁾		9.75			4.18			9.61			9.26			2.85
Return on average tangible common equity ^{(1) (3)}		13.20			5.82			12.29			11.95			4.05
Tax-equivalent net interest margin		4.06			3.80			3.79			3.60			3.44
Core Efficiency ratio ⁽¹⁾		59.82			63.52			55.26			58.80			62.56

Capital Ratios:
Tier 1 Capital (to Average Assets)⁽²⁾		10.7	%		11.4	%		11.0	%		10.4	%		10.6	%
Common Tier 1 Capital (to Risk Weighted Assets) ⁽²⁾		12.8			12.8			13.5			13.9			12.8
Tier 1 Capital (to Risk Weighted Assets) ⁽²⁾		12.8			12.8			13.5			13.9			12.8
Total Capital (to Risk Weighted Assets) ⁽²⁾		13.5			13.6			14.3			15.5			14.4

(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 June 30, 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 Mid Penn'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)	Jun. 30, 2026			Mar. 31, 2026			Dec. 31, 2025			Sep. 30, 2025			Jun. 30, 2025
ASSETS
Cash and due from banks	$	55,168		$	60,967		$	46,695		$	18,013		$	52,671
Interest-bearing balances with other financial institutions		15,367			19,383			29,178			24,736			22,828
Federal funds sold		16,111			60,840			23,045			214,420			261,353
Total cash and cash equivalents		86,646			141,190			98,918			257,169			336,852
Investment Securities:
Held to maturity, at amortized cost		372,866			340,957			347,285			354,094			364,029
Available for sale, at fair value		499,773			484,130			416,314			427,352			404,745
Equity securities available for sale, at fair value		5,387			5,412			5,446			442			437
Loans held for sale		16,595			16,554			3,668			6,085			6,101
Loans, net of unearned income		5,617,169			5,509,940			4,862,838			4,821,134			4,832,898
Less: Allowance for credit losses		(41,640	)		(41,105	)		(36,091	)		(37,337	)		(37,615	)
Net loans		5,575,529			5,468,835			4,826,747			4,783,797			4,795,283

Premises and equipment, net		49,236			49,611			48,742			48,491			47,732
Operating lease right of use asset		15,872			16,803			15,169			15,700			15,026
Finance lease right of use asset		2,278			2,323			2,368			2,413			2,458
Cash surrender value of life insurance		117,515			116,474			95,351			95,015			94,770
Restricted investment in bank stocks		15,720			10,081			7,576			6,737			7,110
Accrued interest receivable		33,391			32,958			29,640			29,705			28,546
Deferred income taxes		23,227			23,798			21,416			27,475			35,333
Goodwill		157,121			157,121			136,620			136,620			135,473
Core deposit and other intangibles, net		31,173			33,013			14,657			15,586			16,531
Foreclosed assets held for sale		8,390			8,420			7,806			9,346			9,816
Other assets		52,191			57,129			56,173			51,322			54,301
Total Assets	$	7,062,910		$	6,964,809		$	6,133,896		$	6,267,349		$	6,354,543

LIABILITIES & SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	973,371		$	933,497		$	834,013		$	836,374		$	857,072
Interest-bearing transaction accounts		3,299,576			3,357,497			2,829,175			2,852,361			2,770,877
Time		1,680,350			1,679,973			1,551,475			1,653,985			1,821,715
Total Deposits		5,953,297			5,970,967			5,214,663			5,342,720			5,449,664

Short-term borrowings		137,500			31,500			20,833			—			—
Long-term debt		2,902			3,021			23,139			23,258			23,374
Subordinated debt and trust preferred securities		—			—			—			37,149			37,303
Operating lease liability		16,275			17,186			15,405			15,973			15,342
Accrued interest payable		12,175			12,195			10,942			16,460			13,421
Other liabilities		38,854			42,535			34,856			35,466			39,731
Total Liabilities		6,161,003			6,077,404			5,319,838			5,471,026			5,578,835

Shareholders' Equity:
Common stock, par value $1.00 per share; 40.0 million shares		25,924			25,817			23,567			23,551			23,419
Additional paid-in capital		661,903			659,883			589,421			588,405			584,291
Retained earnings		238,224			222,154			219,685			205,320			191,574
Accumulated other comprehensive loss		(9,142	)		(8,157	)		(6,323	)		(8,907	)		(11,756	)
Treasury stock		(15,002	)		(12,292	)		(12,292	)		(12,046	)		(11,820	)
Total Shareholders’ Equity		901,907			887,405			814,058			796,323			775,708
Total Liabilities and Shareholders' Equity	$	7,062,910		$	6,964,809		$	6,133,896		$	6,267,349		$	6,354,543

CONSOLIDATED STATEMENTS OF INCOME (Unaudited):

	Three Months Ended
(Dollars in thousands, except per share data)	Jun. 30, 2026		Mar. 31, 2026		Dec. 31, 2025			Sep. 30, 2025			Jun. 30, 2025
INTEREST INCOME
Loans, including fees	$	88,574	$	76,798	$	76,916		$	76,262		$	72,469
Investment securities:
Taxable		7,558		6,501		6,590			6,614			4,637
Tax-exempt		284		297		320			331			344
Other interest-bearing balances		117		110		135			196			142
Federal funds sold		159		220		1,179			3,463			2,428
Total Interest Income		96,692		83,926		85,140			86,866			80,020
INTEREST EXPENSE
Deposits		30,619		27,848		29,930			32,631			30,981
Short-term borrowings		764		702		5			—			86
Long-term and subordinated debt		29		126		454			606			747
Total Interest Expense		31,412		28,676		30,389			33,237			31,814
Net Interest Income		65,280		55,250		54,751			53,629			48,206
Net provision/(benefit) for credit losses ⁽¹⁾		528		1,594		(839	)		(434	)		2,269
Net Interest Income After Provision for Credit Losses		64,752		53,656		55,590			54,063			45,937
NONINTEREST INCOME
Fiduciary and wealth management		3,891		3,661		1,412			1,340			1,406
ATM debit card interchange		1,169		1,035		1,053			1,019			958
Service charges on deposits		632		636		634			647			652
Mortgage banking		1,119		314		552			1,013			676
Mortgage hedging		113		81		(22	)		50			(7	)
Net gain on sales of SBA loans		27		163		100			—			63
Earnings from cash surrender value of life insurance		1,041		705		609			605			491
Net gain on sales of investment securities		—		—		10			—			—
Other		2,594		3,009		2,929			3,509			1,904
Total Noninterest Income		10,586		9,604		7,277			8,183			6,143
NONINTEREST EXPENSE
Salaries and employee benefits		26,945		23,346		20,026			20,941			20,753
Software licensing and utilization		4,155		3,598		3,406			3,310			3,272
Occupancy, net		2,891		3,253		2,624			2,642			2,365
Equipment		1,684		1,553		1,435			1,248			1,248
Shares tax		822		964		245			1,006			606
Legal and professional fees		2,157		1,688		992			1,070			993
ATM/card processing		689		757		771			557			621
Intangible amortization		1,819		1,300		930			944			744
FDIC assessment		663		800		1,046			422			994
Loss on sale or write-down of foreclosed assets, net		4		491		203			471			—
Merger and acquisition ⁽²⁾		103		7,723		(39	)		233			11,011
Other		5,835		6,486		4,209			5,138			5,191
Total Noninterest Expense		47,767		51,959		35,848			37,982			47,798
INCOME BEFORE PROVISION FOR INCOME TAXES		27,571		11,301		27,019			24,264			4,282
Provision/(benefit) for income taxes		5,880		2,595		7,572			5,967			(480	)
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS	$	21,691	$	8,706	$	19,447		$	18,297		$	4,762

PER COMMON SHARE DATA:
Basic Earnings Per Common Share	$	0.86	$	0.36	$	0.84		$	0.80		$	0.22
Diluted Earnings Per Common Share		0.85		0.36		0.83			0.79			0.22
Cash Dividends Declared		0.22		0.22		0.22			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 Mid Penn'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 the 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
	June 30, 2026						March 31, 2026						June 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	$	19,067	$	117	2.46	%	$	19,647	$	110	2.27	%	$	23,271	$	142	2.45	%
Investment Securities:
Taxable		787,477		7,213	3.67			715,209		6,486	3.68			584,919		4,570	3.13
Tax-Exempt		55,840		284	2.04			68,559		297	1.76			67,186		344	2.05
Total Securities		843,317		7,497	3.57			783,768		6,783	3.51			652,105		4,914	3.02

Federal Funds Sold		11,748		159	5.43			16,994		220	5.25			236,037		2,428	4.13
Loans, Net of Unearned Income		5,588,129		88,574	6.36			5,083,240		76,798	6.13			4,724,638		72,469	6.15
Restricted Investment in Bank Stocks		12,292		345	11.26			10,864		15	0.56			6,945		67	3.87
Total Earning Assets		6,474,553		96,692	5.99			5,914,513		83,926	5.75			5,642,996		80,020	5.69

Cash and Due from Banks		55,360						55,545						50,376
Other Assets		466,108						422,953						342,673
Total Assets	$	6,996,021					$	6,393,011					$	6,036,045

LIABILITIES & SHAREHOLDERS' EQUITY:
Interest-bearing Demand	$	1,660,007	$	6,712	1.62	%	$	1,382,567	$	5,417	1.59	%	$	1,123,130	$	4,954	1.77	%
Money Market		1,243,822		7,838	2.53			1,216,581		7,470	2.49			1,179,295		8,350	2.84
Savings		433,917		711	0.66			363,593		300	0.33			307,634		70	0.09
Time		1,668,054		15,358	3.69			1,579,915		14,661	3.76			1,735,888		17,607	4.07
Total Interest-bearing Deposits		5,005,800		30,619	2.45			4,542,656		27,848	2.49			4,345,947		30,981	2.86

Short term borrowings		79,875		764	3.84			71,111		702	4.00			7,418		86	4.65
Long-term debt		2,886		29	4.03			11,733		126	4.36			23,417		252	4.32
Subordinated debt and trust preferred securities		—		—	—			—		—	—			45,264		495	4.39
Total Interest-bearing Liabilities		5,088,561		31,412	2.48			4,625,500		28,676	2.51			4,422,046		31,814	2.89

Noninterest-bearing Demand		933,699						850,936						813,807
Other Liabilities		81,669						71,022						129,701
Shareholders' Equity		892,092						845,553						670,491
Total Liabilities & Shareholders' Equity	$	6,996,021					$	6,393,011					$	6,036,045

Net Interest Income			$	65,280					$	55,250					$	48,206
Taxable Equivalent Adjustment ⁽¹⁾				231						236						245
Net Interest Income (taxable equivalent basis)			$	65,511					$	55,486					$	48,451

Total Yield on Earning Assets					5.99	%					5.75	%					5.69	%
Cost of funds					2.09	%					2.12	%					2.44	%
Rate on Supporting Liabilities					2.48						2.51						2.89
Average Interest Spread					3.51						3.24						2.80
Tax-Equivalent Net Interest Margin					4.06						3.80						3.44

(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)	Jun. 30, 2026			Mar. 31, 2026			Dec. 31, 2025			Sep. 30, 2025			Jun. 30, 2025
Allowance for Credit Losses on Loans:
Beginning balance	$	41,105		$	36,091		$	37,337		$	37,615		$	35,838

Allowance for credit losses on loans acquired		—			4,415			—			—			343

Loans Charged off
Commercial real estate
CRE Nonowner Occupied		(2	)		(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		(48	)		—			—			—			—
Consumer		(11	)		(641	)		(28	)		(40	)		(15	)
Total loans charged off		(61	)		(1,153	)		(768	)		(131	)		(909	)
Recoveries of loans previously charged off
Commercial real estate
CRE Nonowner Occupied		—			—			294			9			1
CRE Owner Occupied		2			93			—			—			—
Multifamily		—			—			—			—			—
Farmland		—			—			—			—			—
Commercial and industrial		6			—			—			—			3
Construction
Residential Construction		—			—			—			—			—
Other Construction		—			—			—			—			—
Residential mortgage
1-4 Family 1st Lien		3			2			2			3			83
1-4 Family Rental		13			—			—			—			—
HELOC and Junior Liens		—			—			—			—			—
Consumer		15			9			7			28			11
Total loans recovered		39			104			303			40			98
Balance before provision		41,083			39,457			36,872			37,524			35,370
Provision/(benefit) for credit losses - loans ⁽¹⁾		557			1,648			(781	)		(187	)		2,245
Balance, end of quarter	$	41,640		$	41,105		$	36,091		$	37,337		$	37,615
Nonperforming Assets
Total nonaccrual loans	$	28,420		$	29,641		$	22,951		$	17,957		$	18,216

Foreclosed real estate		8,390			8,420			7,806			9,346			9,816
Total nonperforming assets		36,810			38,061			30,757			27,303			28,032

Accruing loans 90 days or more past due		213			—			—			160			—
Total risk elements	$	37,023		$	38,061		$	30,757		$	27,463		$	28,032

(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 Mid Penn'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 financial measures to the most directly comparable GAAP financial measures can be found in the tables below.

Tangible Book Value Per Common Share

(Dollars in thousands, except per share data)	Jun. 30, 2026		Mar. 31, 2026		Dec. 31, 2025		Sep. 30, 2025		Jun. 30, 2025

Shareholders' Equity	$	901,907	$	887,405	$	814,058	$	796,323	$	775,708
Less: Goodwill		157,121		157,121		136,620		136,620		135,473
Less: Core Deposit and Other Intangibles		31,173		33,013		14,657		15,586		16,531
Tangible Equity	$	713,613	$	697,271	$	662,781	$	644,117	$	623,704

Common Shares Outstanding		25,320,686		25,296,763		23,047,203		23,039,223		22,915,194

Tangible Book Value per Share	$	28.18	$	27.56	$	28.76	$	27.96	$	27.22

Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses

	Three Months Ended
(Dollars in thousands, except per share data)	Jun. 30, 2026		Mar. 31, 2026		Dec. 31, 2025			Sep. 30, 2025		Jun. 30, 2025

Net Income Available to Common Shareholders	$	21,691	$	8,706	$	19,447		$	18,297	$	4,762
Less: BOLI Death Benefit Income		1		331		223			71		1
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⁾		103		7,723		(39	)		233		11,011
Plus: Compensation expense for accelerated vesting of stock options and restricted stock awards		314		370		314			753		2,043
Plus: Legal settlement expense		—		665		—			—		—
Less: Tax Effect of Non-Recurring Expenses		88		1,839		—			207		2,741
Net Income Excluding Non-Recurring Income and Expenses	$	22,019	$	15,294	$	19,224		$	17,772	$	15,074

Weighted-average Shares Outstanding		25,330,234		23,949,008		23,045,983			23,005,504		21,566,617

Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses	$	0.87	$	0.64	$	0.83		$	0.77	$	0.70

(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)	Jun. 30, 2026			Mar. 31, 2026			Dec. 31, 2025			Sep. 30, 2025			Jun. 30, 2025

Net income available to common shareholders	$	21,691		$	8,706		$	19,447		$	18,297		$	4,762
Plus: Intangible amortization, net of tax		1,437			1,027			735			746			588
		23,128			9,733			20,182			19,043			5,350

Average shareholders' equity		892,092			845,553			803,093			783,547			670,491
Less: Average goodwill		157,121			147,021			136,620			135,486			130,824
Less: Average core deposit and other intangibles		32,105			20,835			14,969			16,003			9,824
Average tangible common shareholders' equity	$	702,866		$	677,697		$	651,504		$	632,058		$	529,843

Return on average tangible common equity⁽¹⁾		13.20	%		5.82	%		12.29	%		11.95	%		4.05	%

(1)

Annualized ratio

Core Efficiency Ratio (Non-GAAP)

	Three Months Ended
(Dollars in thousands)	Jun. 30, 2026			Mar. 31, 2026			Dec. 31, 2025			Sep. 30, 2025			Jun. 30, 2025

Noninterest expense	$	47,767		$	51,959		$	35,848		$	37,982		$	47,798
Less: Merger and acquisition expenses ⁽¹⁾		103			7,723			(39	)		233			11,011
Less: Compensation expense for accelerated vesting of stock options and restricted stock awards		314			370			314			753			2,043
Less: Intangible amortization		1,819			1,300			930			944			744
Less: Loss on sale or write-down of foreclosed assets, net		4			491			203			471			—
Less: Other expenses on foreclosed assets		142			427			445			—			—
Less: Legal settlement expense		—			665			—			—			—
Efficiency ratio numerator		45,385			40,983			33,995			35,581			34,000

Net interest income		65,280			55,250			54,751			53,629			48,206
Noninterest income		10,586			9,604			7,277			8,183			6,143
Less: BOLI Death Benefit		1			331			223			71			1
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	$	75,865		$	64,523		$	61,520		$	60,508		$	54,348

Core efficiency ratio		59.82	%		63.52	%		55.26	%		58.80	%		62.56	%

Tax effect on non-GAAP adjustments ⁽³⁾		231			236			243			245			245
Tax-effected core efficiency ratio		59.64	%		63.29	%		55.04	%		58.57	%		62.28	%

(1)		Includes release of merger and acquisition accruals related to the 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260722830975/en/

Mid Penn Bancorp, Inc.
1-866-642-7736

Rory G. Ritrievi
Chair, President & Chief Executive Officer

Justin T. Webb
Chief Financial Officer

Source: Mid Penn Bancorp

Mid Penn Bancorp, Inc. Reports Second Quarter Earnings and Declares 63rd Consecutive Quarterly Dividend

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