Exhibit 99.1
PRESS RELEASE
Mid Penn Bancorp, Inc.
2407 Park Drive
Harrisburg, PA 17110
1-866-642-7736
CONTACTS
| | | | | |
Rory G. Ritrievi Chair, President & Chief Executive Officer | Justin T. Webb Chief Financial Officer |
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.
•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."
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
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.
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.
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) | 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
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 | |
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.
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
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.
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) | Sep. 30,
2026 | | Jun. 30,
2026 | | Mar. 31,
2026 | | Dec. 31,
2025 | | Sep. 30,
2025 |
| | | | | | | | | |
| Shareholders' Equity | $ | 902,639 | | | $ | 901,907 | | | $ | 887,405 | | | $ | 814,058 | | | $ | 796,323 | |
| Less: Goodwill | 157,121 | | | 157,121 | | | 157,121 | | | 136,620 | | | 136,620 | |
| Less: Core Deposit and Other Intangibles | 29,465 | | | 31,173 | | | 33,013 | | | 14,657 | | | 15,586 | |
| Tangible Equity | $ | 716,053 | | | $ | 713,613 | | | $ | 697,271 | | | $ | 662,781 | | | $ | 644,117 | |
| | | | | | | | | |
| Common Shares Outstanding | 25,342,443 | | 25,320,686 | | 25,296,763 | | 23,047,203 | | 23,039,223 |
| | | | | | | | | |
| Tangible Book Value per Share | $ | 28.26 | | | $ | 28.18 | | | $ | 27.56 | | | $ | 28.76 | | | $ | 27.96 | |
Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 |
| | | | | | | | | |
| Net Income Available to Common Shareholders | $ | 21,625 | | | $ | 21,691 | | | $ | 8,706 | | | $ | 19,447 | | | $ | 18,297 | |
| Less: BOLI Death Benefit Income | — | | | 1 | | | 331 | | | 223 | | | 71 | |
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 | | | — | |
| Less: Lease adjustments related to branch optimization | 332 | | | — | | | — | | | — | | | — | |
| Less: Gain on sale of legacy bank facility | 42 | | | — | | | — | | | — | | | — | |
| Less: Release of contingent liability | 415 | | | — | | | — | | | — | | | — | |
Plus: Merger and Acquisition Expenses (2) | 43 | | | 103 | | | 7,723 | | | (39) | | | 233 | |
| Plus: Compensation expense for accelerated vesting of stock options and restricted stock awards | 277 | | | 314 | | | 370 | | | 314 | | | 753 | |
| Plus: Legal settlement expense | — | | | — | | | 665 | | | — | | | — | |
| Plus: Branch optimization and consolidation costs | 687 | | | — | | | — | | | — | | | — | |
| Plus: Millersburg building reconstruction costs | 352 | | | — | | | — | | | — | | | — | |
| Less: Tax Effect of Non-Recurring Expenses | (11) | | | 88 | | | 1,839 | | | — | | | 207 | |
| Net Income Excluding Non-Recurring Income and Expenses | $ | 22,207 | | | $ | 22,019 | | | $ | 15,294 | | | $ | 19,224 | | | $ | 17,772 | |
| | | | | | | | | |
| Weighted-average Shares Outstanding | 25,333,652 | | 25,330,234 | | 23,949,008 | | 23,045,983 | | 23,005,504 |
| | | | | | | | | |
| Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses | $ | 0.88 | | | $ | 0.87 | | | $ | 0.64 | | | $ | 0.83 | | | $ | 0.77 | |
(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) | Sep. 30,
2026 | | Jun. 30,
2026 | | Mar. 31,
2026 | | Dec. 31,
2025 | | Sep. 30,
2025 |
| | | | | | | | | |
| Net income available to common shareholders | $ | 21,625 | | | $ | 21,691 | | | $ | 8,706 | | | $ | 19,447 | | | $ | 18,297 | |
| Plus: Intangible amortization, net of tax | 1,349 | | | 1,437 | | | 1,027 | | | 735 | | | 746 | |
| 22,974 | | | 23,128 | | | 9,733 | | | 20,182 | | | 19,043 | |
| | | | | | | | | |
| Average shareholders' equity | 904,814 | | | 892,092 | | | 845,553 | | | 803,093 | | | 783,547 | |
| Less: Average goodwill | 157,121 | | | 157,121 | | | 147,021 | | | 136,620 | | | 135,486 | |
| Less: Average core deposit and other intangibles | 30,283 | | | 32,105 | | | 20,835 | | | 14,969 | | | 16,003 | |
| Average tangible common shareholders' equity | $ | 717,410 | | | $ | 702,866 | | | $ | 677,697 | | | $ | 651,504 | | | $ | 632,058 | |
| | | | | | | | | |
Return on average tangible common equity(1) | 12.71 | % | | 13.20 | % | | 5.82 | % | | 12.29 | % | | 11.95 | % |
(1) Annualized ratio
Core Efficiency Ratio (Non-GAAP) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended |
| (Dollars in thousands) | Sep. 30,
2026 | | Jun. 30,
2026 | | Mar. 31,
2026 | | Dec. 31, 2025 | | Sep. 30,
2025 |
| | | | | | | | | |
| Noninterest expense | $ | 48,590 | | | $ | 47,767 | | | $ | 51,959 | | | $ | 35,848 | | | $ | 37,982 | |
Less: Merger and acquisition expenses (1) | 43 | | | 103 | | | 7,723 | | | (39) | | | 233 | |
| Less: Compensation expense for accelerated vesting of stock options and restricted stock awards | 277 | | | 314 | | | 370 | | | 314 | | | 753 | |
| Less: Intangible amortization | 1,708 | | | 1,819 | | | 1,300 | | | 930 | | | 944 | |
| Less: Loss on sale or write-down of foreclosed assets, net | 440 | | | 4 | | | 491 | | | 203 | | | 471 | |
| Less: Other expenses on foreclosed assets | 326 | | | 142 | | | 427 | | | 445 | | | — | |
| Less: Legal settlement expense | — | | | — | | | 665 | | | — | | | |
| Less: Branch optimization and consolidation costs | 687 | | | — | | | — | | | — | | | — | |
| Less: Millersburg building reconstruction costs | 352 | | | — | | | — | | | — | | | — | |
| Efficiency ratio numerator | 44,757 | | | 45,385 | | | 40,983 | | | 33,995 | | | 35,581 | |
| | | | | | | | | |
| Net interest income | 64,640 | | | 65,280 | | | 55,250 | | | 54,751 | | | 53,629 | |
| Noninterest income | 10,038 | | | 10,586 | | | 9,604 | | | 7,277 | | | 8,183 | |
| Less: BOLI Death Benefit | — | | | 1 | | | 331 | | | 223 | | | 71 | |
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: Lease adjustments related to branch optimization | 332 | | | — | | | — | | | — | | | — | |
| Less: Gain on sale of legacy bank facility | 42 | | | — | | | — | | | 192 | | | — | |
| Less: Release of contingent liability | 415 | | | | | | | | | |
| Less: Net gain on sales of investment securities | — | | | — | | | — | | | 10 | | | — | |
| Efficiency ratio denominator | $ | 73,889 | | | $ | 75,865 | | | $ | 64,523 | | | $ | 61,520 | | | $ | 60,508 | |
| | | | | | | | | |
| Core efficiency ratio | 60.57 | % | | 59.82 | % | | 63.52 | % | | 55.26 | % | | 58.80 | % |
| | | | | | | | | |
Tax effect on non-GAAP adjustments (3) | 235 | | | 231 | | | 236 | | | 243 | | | 245 | |
| Tax-effected core efficiency ratio | 60.38 | % | | 59.64 | % | | 63.29 | % | | 55.04 | % | | 58.57 | % |
(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.
