Mid Penn Bancorp, Inc. Reports First Quarter Earnings Beat and Declares 54th Consecutive Quarterly Dividend

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") for the quarter ended March 31, 2024, of $12.1 million, or $0.73 per diluted common share, versus analyst consensus of $0.61 per share.

Key Highlights of the First Quarter of 2024:

  • Loan growth for the first quarter of 2024 was $64.7 million, or 6.1% (annualized). Total loans increased $706.1 million compared to the first quarter of 2023. Excluding the Brunswick loans of $324.5 million acquired in 2023, organic loan growth for the quarter ended March 31, 2024, from the quarter ended March 31, 2023 was $381.6 million or 10.6%.
  • Deposits increased $32.9 million, or 3.0% (annualized), for the first quarter of 2024. Organic deposits increased $219.6 million, or 5.7% (excluding Brunswick acquisition deposits in 2023 of $281.4 million) for the quarter ended March 31, 2024, compared to the quarter ended March 31, 2023.
  • Net income available to common shareholders increased 0.3% to $12.1 million, or $0.73 per diluted common share, for the first quarter of 2024, compared to net income of $12.1 million, or $0.73 per diluted common share for the fourth quarter of 2023. Net income available to common shareholders increased 8.07% to $12.1 million, or $0.73 per diluted common share, for the first quarter of 2024, compared to net income of $11.2 million, or $0.71 per diluted common share, for the first quarter of 2023.
  • Tangible book value per common share increased to $25.23 for the quarter ended March 31, 2024, compared to $24.67 and $24.52 for the periods ended December 31, 2023 and March 31, 2023, respectively.
  • Return on average assets was 0.92% and return on average equity was 8.94% for the quarter ended March 31, 2024, compared to return on average assets of 0.92% and return on average equity of 8.93% in the fourth quarter of 2023.
  • The Board declared a cash dividend of $0.20 per share, payable May 27, 2024, to shareholders of record as of May 10, 2024.

“With the continuation of the inverted yield curve, persistent escalation in funding costs and additional regional bank asset quality issues, we entered the first quarter expecting a daily fight simply to meet analyst expectations. The team at Mid Penn once again delivered with $0.73 in quarterly EPS, which is almost 20% over consensus estimates. We feel good about those results,” Chair, President and CEO Rory G. Ritrievi said. “In my 4Q23 message, I signaled that we would be cutting operating costs while also significantly slowing down balance sheet growth until the operating environment improved. In reviewing these results, you will see that we accomplished that while also continuing a solid trend in asset quality.”

Ritrievi continued, “At the time I am writing this, however, we are already almost a full month into another challenging quarter. While inflation persists, interest rate reductions - which could help normalize the interest rate curve - have been delayed. Now over 500 days inverted, the shape of the interest rate curve is a real concern for positive economic activity. It certainly has an impact on a community bank like Mid Penn, in that our net interest margin remains under considerable pressure. Adding to that concern are significant geopolitical tensions with conflicts in Eastern Europe, the Middle East and beyond, which have a negative economic impact here and abroad.”

“Throughout the current quarter and the rest of the year, Mid Penn will continue to execute the specific strategic plan I outlined three months ago. We will continue our focus on restrained growth while also restraining operating expenses," Ritrievi added. "Our laser focus on asset quality preservation never changes. It is a core tenet of how we do business. Even in the face of significant external trade winds, we are cautiously optimistic that we will continue to build on our first quarter success and ultimately deliver a 2024 performance in line with analysts' expectations.”

For the first quarter of 2024, the Board is pleased to announce a quarterly cash dividend of $0.20 per share of common stock, which was declared at its meeting on April 24, 2024, payable on May 27, 2024, to shareholders of record as of May 10, 2024.

Net Interest Income

For the three months ended March 31, 2024, net interest income was $36.5 million compared to net interest income of $37.0 million for the three months ended December 31, 2023, and $36.0 million for the three months ended March 31, 2023. The tax-equivalent net interest margin for the three months ended March 31, 2024 was 2.97% compared to 3.02% for the fourth quarter of 2023, and 3.49% for the first quarter of 2023, representing a 1 basis point ("bp") decrease compared to the prior quarter, and a 53 bp decrease compared to the same period in 2023, primarily driven by higher interest rates resulting from persistent inflation.

The yield on interest-earning assets increased to 5.51% for the quarter ended March 31, 2024, from 5.35% for the quarter ended December 31, 2023, and 4.86% for the quarter ended March 31, 2023. These increases were due to assets continuing to reprice at higher rates during the first quarter of 2024. Increased yields on interest-earning assets were more than offset by increases in funding costs for the first quarter of 2024, with the overall cost of interest-bearing liabilities increasing to 3.24% during the first quarter of 2024, compared to 3.02% for the three months ended December 31, 2023, and 1.81% for the three months ended March 31, 2023.

Average Balances

Average loans increased $92.7 million to $4.3 billion for the quarter ended March 31, 2024, compared to $4.2 billion for the quarter ended December 31, 2023, and $3.6 billion for the quarter ended March 31, 2023. Average deposits were $4.3 billion for the first quarter of 2024, reflecting a decrease of $90.5 million, or 2.1%, compared to total average deposits of $4.4 billion in the fourth quarter of 2023, and an increase of $529.1 million, or 14.0%, compared to total average deposits of $3.8 billion for the first quarter of 2023. Average balances were impacted by the acquisition of Brunswick Bancorp in the second quarter of 2023. The average cost of deposits was 2.46% for the first quarter of 2024, representing a 13 bp increase and a 117 bp increase from the fourth quarter of 2023 and the first quarter of 2023, respectively. The Bank continues to face headwinds with respect to deposit pricing, given increased interest rates and competition for deposits across all product types. Our primary focus with respect to deposit strategy is stability, ensuring that our rates are competitive and our product mix satisfies the needs of our customers. Additionally, Mid Penn also maintains interest rate swaps to hedge the cash flows associated with existing brokered CDs to mitigate the impact of rising deposit costs.

Deposits were $4.4 billion as of March 31, 2024, compared to $4.3 billion and $3.9 billion at December 31, 2023, and March 31, 2023, respectively. The increase during the first quarter of 2024 was primarily related to a $29.9 million increase in time deposits. Time deposits represented 33.6% of total deposits at December 31, 2023, and increased to 34.0% at March 31, 2024. The mix of non-interest-bearing deposits increased $6.5 million from the fourth quarter of 2023, representing approximately 18.4% of total deposits at March 31, 2024, compared to 18.4% at December 31, 2023, 18.3% at September 30, 2023, and 19.2% at June 30, 2023. The average duration of the non-hedged time deposit portfolio was 12 months at March 31, 2024.

Asset Quality

The total provision for credit losses, including provision for credit losses on off-balance sheet credit exposures, was $(937) thousand for the three months ended March 31, 2024, a decrease of $273 thousand and $1.7 million compared to the provision for credit losses of $(664) thousand and $719 thousand for the three months ended December 31, 2023 and the three months ended March 31, 2023, respectively.

The provision for credit losses on loans was $(619) thousand for the three months ended March 31, 2024, a decrease of $1.1 million compared to the provision for credit losses of $490 thousand for the three months ended March 31, 2023. The decrease in provision for the three months ended March 31, 2024, is primarily due to a decrease in loss factors across all portfolios. The provision for credit losses on off-balance sheet credit exposures was $(318) thousand for the three months ended March 31, 2024. Net charge-offs for the three months ended March 31, 2024, were $44 thousand or 0.001% of total loans.

Total nonperforming assets were $15.5 million at March 31, 2024, compared to nonperforming assets of $14.5 million and $14.2 million at December 31, 2023, and March 31, 2023, respectively. The increase during the first quarter of 2024 primarily related to loans totaling $1.1 million attributable to one relationship placed on non-accrual. Delinquency as a percentage of total loans was 0.38% at March 31, 2024.

Capital

Shareholders’ equity increased $8.6 million, or 1.59%, from $542.4 million as of December 31, 2023 to $551.0 million as of March 31, 2024. Retained earnings increased $8.8 million, or 6.04%, from $146.0 million as of December 31, 2023, to $154.8 million as of March 31, 2024. Regulatory capital ratios for both Mid Penn and its banking subsidiary indicate regulatory capital levels in excess of both the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at March 31, 2024. Additionally, Mid Penn declared $3.3 million in dividends during the first quarter of 2024.

On April 24, 2024, Mid Penn’s Board of Directors reauthorized its treasury stock repurchase program ("Program") effective through April 24, 2025. The Program authorizes the repurchase of up to $15.0 million of Mid Penn’s outstanding common stock. During the three months ended March 31, 2024, Mid Penn has repurchased 15,500 shares of common stock at an average price of $20.81. As of March 31, 2024, Mid Penn repurchased 440,722 shares of common stock at an average price of $22.78 per share under the Program. The Program had approximately $5.0 million remaining available for repurchase as of March 31, 2024.

Noninterest Income

For the three months ended March 31, 2024, noninterest income totaled $5.8 million, an increase of $720 thousand, or 14.1%, compared to noninterest income of $5.1 million for the fourth quarter of 2023. The increase is primarily due to a $1.2 million increase in other miscellaneous noninterest income, offset by decreases in gains on sales of SBA loans, fiduciary and wealth management, and mortgage hedging income.

For the three months ended March 31, 2024, noninterest income totaled $5.8 million, an increase of $1.5 million, or 34.96%, compared to noninterest income of $4.3 million for the three months ended March 31, 2023. The increase in noninterest income is primarily due to a $1.5 million increase in other miscellaneous noninterest income.

Noninterest Expense

Total noninterest expense increased $131 thousand to $28.5 million in the first quarter of 2024 from $28.4 million in the prior quarter, driven by a $742 thousand increase in shares tax on stock repurchases, which is due to credits that were received in the fourth quarter of 2023, lowering the expense. Additionally, there was a $345 thousand increase in legal and professional fees, and a $247 thousand increase in salaries and benefits expense, which typically run higher in the first quarter due to payroll taxes and other payroll benefits resetting, offset by expected decreases in other noninterest expenses, due to corporate efforts to reduce operating costs.

For the three months ended March 31, 2024, noninterest expense totaled $28.5 million, an increase of $2.7 million, or 10.4%, compared to noninterest expense of $25.8 million for the three months ended March 31, 2023. The increase was primarily the result of a $1.6 million increase in salaries and benefits expense, driven by the Brunswick acquisition, and a $605 thousand increase in FDIC charges due to increased assessment rates.

The efficiency ratio(1) was 68.8% in the first quarter of 2024, compared to 66.2% in the fourth quarter of 2023, and 62.6% in the first quarter of 2023. The change in the efficiency ratio during the first quarter of 2024 compared to the fourth quarter of 2023 was the result of higher noninterest income and slightly higher noninterest expenses, partially offset by lower net interest income, driven by the current interest rate environment. The change compared to the first quarter of 2023 was driven by growth in noninterest expense outpacing growth in net interest income, again due to the current rate environment. Mid Penn continues to evaluate levels of noninterest expense for opportunities to reduce operating costs throughout the organization.

Subsequent Events

Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission ("SEC"). Accordingly, the financial information in this announcement is subject to change. The statements are valid only as of the date hereof and Mid Penn disclaims any obligation to update this information.

 

(1)

Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document.

SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn’s portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; results of the regulatory examination and supervision process and oversight, including changes in monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; the availability of financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank’s future businesses; material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements; the possibility that the anticipated benefits of a transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in legacy Mid Penn and target markets; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of a transaction; the ability to complete the integration of Mid Penn and its target successfully; the dilution caused by Mid Penn’s issuance of additional shares of its capital stock in connection with a transaction; and other factors that may affect the future results of Mid Penn.

For a more detailed description of these and other factors which would affect our results, please see Mid Penn’s filings with the SEC, including those risk factors identified in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent filings with the SEC. The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events, except as required by law.

SUMMARY FINANCIAL HIGHLIGHTS (Unaudited):

(Dollars in thousands, except per share data)

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

Ending Balances:

 

 

 

 

 

 

 

 

 

Investment securities

$

615,061

 

 

$

623,121

 

 

$

620,636

 

 

$

634,287

 

 

$

633,831

 

Loans, net of unearned interest

 

4,317,449

 

 

 

4,252,792

 

 

 

4,145,657

 

 

 

4,034,510

 

 

 

3,611,347

 

Total assets

 

5,330,379

 

 

 

5,290,792

 

 

 

5,214,718

 

 

 

5,087,568

 

 

 

4,583,465

 

Total deposits

 

4,379,105

 

 

 

4,346,212

 

 

 

4,380,380

 

 

 

4,285,450

 

 

 

3,878,081

 

Shareholders' equity

 

550,968

 

 

 

542,350

 

 

 

528,711

 

 

 

525,888

 

 

 

510,793

 

Average Balances:

 

 

 

 

 

 

 

 

 

Investment securities

 

615,687

 

 

 

606,946

 

 

 

619,071

 

 

 

630,750

 

 

 

636,151

 

Loans, net of unearned interest

 

4,293,828

 

 

 

4,201,092

 

 

 

4,053,514

 

 

 

3,808,717

 

 

 

3,555,375

 

Total assets

 

5,319,680

 

 

 

5,226,382

 

 

 

5,106,103

 

 

 

4,827,786

 

 

 

4,520,869

 

Total deposits

 

4,312,094

 

 

 

4,402,565

 

 

 

4,361,067

 

 

 

4,057,605

 

 

 

3,782,990

 

Shareholders' equity

 

546,001

 

 

 

537,219

 

 

 

529,067

 

 

 

504,535

 

 

 

510,857

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Income Statement:

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

Net interest income

$

36,456

 

 

$

37,000

 

 

$

37,480

 

 

$

36,444

 

 

$

36,049

 

Provision for credit losses

 

(937

)

 

 

(664

)

 

 

2,087

 

 

 

1,558

 

 

 

719

 

Noninterest income

 

5,837

 

 

 

5,117

 

 

 

5,346

 

 

 

5,220

 

 

 

4,325

 

Noninterest expense

 

28,520

 

 

 

28,389

 

 

 

29,229

 

 

 

35,128

 

 

 

25,841

 

Income before provision for income taxes

 

14,710

 

 

 

14,392

 

 

 

11,510

 

 

 

4,978

 

 

 

13,814

 

Provision for income taxes

 

2,577

 

 

 

2,294

 

 

 

2,274

 

 

 

142

 

 

 

2,587

 

Net income available to shareholders

 

12,133

 

 

 

12,098

 

 

 

9,236

 

 

 

4,836

 

 

 

11,227

 

Net income excluding non-recurring income and expenses (1)

 

10,673

 

 

 

12,098

 

 

 

9,514

 

 

 

11,112

 

 

 

11,404

 

 

 

 

 

 

 

 

 

 

 

Per Share:

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.73

 

 

$

0.73

 

 

$

0.56

 

 

$

0.29

 

 

$

0.71

 

Diluted earnings per common share

 

0.73

 

 

 

0.73

 

 

 

0.56

 

 

 

0.29

 

 

 

0.70

 

Cash dividends declared

 

0.20

 

 

 

0.20

 

 

 

0.20

 

 

 

0.20

 

 

 

0.20

 

Book value per common share

 

33.26

 

 

 

32.72

 

 

 

31.89

 

 

 

31.74

 

 

 

32.15

 

Tangible book value per common share (1)

 

25.23

 

 

 

24.67

 

 

 

23.81

 

 

 

23.62

 

 

 

24.52

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:

 

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans (annualized)

 

0.004

%

 

 

0.004

%

 

 

0.001

%

 

 

0.018

%

 

 

0.013

%

Non-performing loans to total loans

 

0.24

 

 

 

0.33

 

 

 

0.32

 

 

 

0.39

 

 

 

0.38

 

Non-performing asset to total loans and other real estate

 

0.36

 

 

 

0.34

 

 

 

0.35

 

 

 

0.40

 

 

 

0.39

 

Non-performing asset to total assets

 

0.29

 

 

 

0.27

 

 

 

0.28

 

 

 

0.32

 

 

 

0.31

 

ACL on loans to total loans

 

0.78

 

 

 

0.80

 

 

 

0.82

 

 

 

0.81

 

 

 

0.87

 

ACL on loans to nonperforming loans

 

322.66

 

 

 

240.48

 

 

 

252.67

 

 

 

205.65

 

 

 

225.71

 

 

 

 

 

 

 

 

 

 

 

Profitability:

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.92

%

 

 

0.92

%

 

 

0.72

%

 

 

0.40

%

 

 

1.01

%

Return on average equity

 

8.94

 

 

 

8.93

 

 

 

6.93

 

 

 

3.84

 

 

 

8.91

 

Return on average tangible common equity (1)

 

12.15

 

 

 

12.31

 

 

 

9.69

 

 

 

5.55

 

 

 

12.01

 

Net interest margin

 

2.97

 

 

 

3.02

 

 

 

3.16

 

 

 

3.29

 

 

 

3.49

 

Efficiency ratio (1)

 

68.80

 

 

 

66.24

 

 

 

66.34

 

 

 

64.44

 

 

 

62.60

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

Tier 1 Capital (to Average Assets) (2)

 

8.3

%

 

 

8.3

%

 

 

8.4

%

 

 

9.6

%

 

 

9.2

%

Common Tier 1 Capital (to Risk Weighted Assets) (2)

 

9.6

 

 

 

9.7

 

 

 

9.7

 

 

 

10.7

 

 

 

10.8

 

Tier 1 Capital (to Risk Weighted Assets) (2)

 

9.6

 

 

 

9.7

 

 

 

9.7

 

 

 

10.7

 

 

 

10.8

 

Total Capital (to Risk Weighted Assets) (2)

 

11.4

 

 

 

11.6

 

 

 

11.7

 

 

 

11.5

 

 

 

13.1

 

 

(1)

Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document.
 

(2)

Regulatory capital ratios as of March 31, 2024 are preliminary and prior periods are actual.

CONSOLIDATED BALANCE SHEETS (Unaudited):

(In thousands, except share data)

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

33,362

 

 

$

45,435

 

 

$

52,509

 

 

$

70,832

 

 

$

51,158

 

Interest-bearing balances with other financial institutions

 

31,801

 

 

 

34,668

 

 

 

12,739

 

 

 

13,332

 

 

 

4,996

 

Federal funds sold

 

2,922

 

 

 

16,660

 

 

 

52,851

 

 

 

9,711

 

 

 

6,017

 

Total cash and cash equivalents

 

68,085

 

 

 

96,763

 

 

 

118,099

 

 

 

93,875

 

 

 

62,171

 

Investment Securities:

 

 

 

 

 

 

 

 

 

Held to maturity, at amortized cost

 

396,998

 

 

 

399,128

 

 

 

401,561

 

 

 

404,831

 

 

 

396,784

 

Available for sale, at fair value

 

217,632

 

 

 

223,555

 

 

 

218,662

 

 

 

229,023

 

 

 

236,609

 

Equity securities available for sale, at fair value

 

431

 

 

 

438

 

 

 

413

 

 

 

433

 

 

 

438

 

Loans held for sale

 

4,581

 

 

 

3,855

 

 

 

4,270

 

 

 

7,258

 

 

 

2,677

 

Loans, net of unearned interest

 

4,317,449

 

 

 

4,252,792

 

 

 

4,145,657

 

 

 

4,034,510

 

 

 

3,611,347

 

Less: Allowance for credit losses

 

(33,524

)

 

 

(34,187

)

 

 

(34,004

)

 

 

(32,588

)

 

 

(31,265

)

Net loans

 

4,283,925

 

 

 

4,218,605

 

 

 

4,111,653

 

 

 

4,001,922

 

 

 

3,580,082

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment, net

 

36,068

 

 

 

36,909

 

 

 

38,102

 

 

 

38,483

 

 

 

34,191

 

Operating lease right of use asset

 

8,414

 

 

 

8,953

 

 

 

8,693

 

 

 

9,106

 

 

 

8,414

 

Finance lease right of use asset

 

2,683

 

 

 

2,727

 

 

 

2,773

 

 

 

2,817

 

 

 

2,862

 

Cash surrender value of life insurance

 

52,997

 

 

 

54,497

 

 

 

54,209

 

 

 

53,931

 

 

 

50,928

 

Restricted investment in bank stocks

 

17,446

 

 

 

16,768

 

 

 

13,554

 

 

 

11,646

 

 

 

8,041

 

Accrued interest receivable

 

26,975

 

 

 

25,820

 

 

 

24,230

 

 

 

19,626

 

 

 

19,205

 

Deferred income taxes

 

22,894

 

 

 

24,146

 

 

 

25,110

 

 

 

23,910

 

 

 

15,548

 

Goodwill

 

127,031

 

 

 

127,031

 

 

 

127,031

 

 

 

127,031

 

 

 

114,231

 

Core deposit and other intangibles, net

 

6,051

 

 

 

6,479

 

 

 

6,970

 

 

 

7,453

 

 

 

6,916

 

Foreclosed assets held for sale

 

5,110

 

 

 

293

 

 

 

905

 

 

 

489

 

 

 

248

 

Other assets

 

53,058

 

 

 

44,825

 

 

 

58,483

 

 

 

55,734

 

 

 

44,120

 

Total Assets

$

5,330,379

 

 

$

5,290,792

 

 

$

5,214,718

 

 

$

5,087,568

 

 

$

4,583,465

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

807,861

 

 

$

801,312

 

 

$

803,550

 

 

$

822,822

 

 

$

797,038

 

Interest-bearing transaction accounts

 

2,082,846

 

 

 

2,086,450

 

 

 

2,217,885

 

 

 

2,186,734

 

 

 

2,197,216

 

Time

 

1,488,398

 

 

 

1,458,450

 

 

 

1,358,945

 

 

 

1,275,894

 

 

 

883,827

 

Total Deposits

 

4,379,105

 

 

 

4,346,212

 

 

 

4,380,380

 

 

 

4,285,450

 

 

 

3,878,081

 

 

 

 

 

 

 

 

 

 

 

Short-term borrowings

 

271,849

 

 

 

241,532

 

 

 

139,000

 

 

 

112,442

 

 

 

88,000

 

Long-term debt

 

23,941

 

 

 

59,003

 

 

 

58,991

 

 

 

58,981

 

 

 

4,316

 

Subordinated debt and trust preferred securities

 

46,201

 

 

 

46,354

 

 

 

46,501

 

 

 

46,648

 

 

 

56,794

 

Operating lease liability

 

8,683

 

 

 

9,285

 

 

 

9,097

 

 

 

9,894

 

 

 

9,270

 

Accrued interest payable

 

16,330

 

 

 

14,257

 

 

 

14,657

 

 

 

11,115

 

 

 

5,809

 

Other liabilities

 

33,302

 

 

 

31,799

 

 

 

37,381

 

 

 

37,150

 

 

 

30,402

 

Total Liabilities

 

4,779,411

 

 

 

4,748,442

 

 

 

4,686,007

 

 

 

4,561,680

 

 

 

4,072,672

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

 

Common stock, par value $1.00 per share; 40.0 million shares authorized

 

17,006

 

 

 

16,999

 

 

 

16,993

 

 

 

16,980

 

 

 

16,098

 

Additional paid-in capital

 

406,150

 

 

 

405,725

 

 

 

405,341

 

 

 

404,902

 

 

 

387,332

 

Retained earnings

 

154,801

 

 

 

145,982

 

 

 

137,199

 

 

 

131,271

 

 

 

129,617

 

Accumulated other comprehensive loss

 

(16,947

)

 

 

(16,637

)

 

 

(21,362

)

 

 

(17,805

)

 

 

(17,374

)

Treasury stock

 

(10,042

)

 

 

(9,719

)

 

 

(9,460

)

 

 

(9,460

)

 

 

(4,880

)

Total Shareholders’ Equity

 

550,968

 

 

 

542,350

 

 

 

528,711

 

 

 

525,888

 

 

 

510,793

 

Total Liabilities and Shareholders' Equity

$

5,330,379

 

 

$

5,290,792

 

 

$

5,214,718

 

 

$

5,087,568

 

 

$

4,583,465

 

CONSOLIDATED STATEMENTS OF INCOME (Unaudited):

 

Three Months Ended

(Dollars in thousands, except per share data)

Mar. 31, 2024

 

Dec. 31, 2023

 

Sep. 30, 2023

 

Jun. 30, 2023

 

Mar. 31, 2023

INTEREST INCOME

 

 

 

 

 

 

 

 

 

Loans, including fees

$

63,236

 

 

$

61,309

 

 

$

58,792

 

 

$

52,094

 

 

$

45,865

Investment securities:

 

 

 

 

 

 

 

 

 

Taxable

 

4,040

 

 

 

4,063

 

 

 

4,106

 

 

 

3,962

 

 

 

3,874

Tax-exempt

 

376

 

 

 

378

 

 

 

382

 

 

 

391

 

 

 

389

Other interest-bearing balances

 

403

 

 

 

139

 

 

 

86

 

 

 

83

 

 

 

53

Federal funds sold

 

136

 

 

 

228

 

 

 

51

 

 

 

49

 

 

 

45

Total Interest Income

 

68,191

 

 

 

66,117

 

 

 

63,417

 

 

 

56,579

 

 

 

50,226

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Deposits

 

26,332

 

 

 

25,808

 

 

 

23,559

 

 

 

17,927

 

 

 

12,001

Short-term borrowings

 

4,446

 

 

 

2,506

 

 

 

1,584

 

 

 

1,507

 

 

 

1,490

Long-term and subordinated debt

 

957

 

 

 

803

 

 

 

794

 

 

 

701

 

 

 

686

Total Interest Expense

 

31,735

 

 

 

29,117

 

 

 

25,937

 

 

 

20,135

 

 

 

14,177

Net Interest Income

 

36,456

 

 

 

37,000

 

 

 

37,480

 

 

 

36,444

 

 

 

36,049

PROVISION FOR CREDIT LOSSES

 

(937

)

 

 

(664

)

 

 

2,087

 

 

 

1,558

 

 

 

719

Net Interest Income After Provision for Credit Losses

 

37,393

 

 

 

37,664

 

 

 

35,393

 

 

 

34,886

 

 

 

35,330

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

Fiduciary and wealth management

 

1,132

 

 

 

1,323

 

 

 

1,296

 

 

 

1,204

 

 

 

1,236

ATM debit card interchange

 

945

 

 

 

979

 

 

 

986

 

 

 

998

 

 

 

1,056

Service charges on deposits

 

509

 

 

 

485

 

 

 

509

 

 

 

514

 

 

 

435

Mortgage banking

 

424

 

 

 

300

 

 

 

382

 

 

 

287

 

 

 

384

Mortgage hedging

 

 

 

 

109

 

 

 

67

 

 

 

128

 

 

 

20

Net gain on sales of SBA loans

 

107

 

 

 

358

 

 

 

85

 

 

 

128

 

 

 

Earnings from cash surrender value of life insurance

 

284

 

 

 

288

 

 

 

278

 

 

 

292

 

 

 

254

Other

 

2,436

 

 

 

1,275

 

 

 

1,743

 

 

 

1,669

 

 

 

940

Total Noninterest Income

 

5,837

 

 

 

5,117

 

 

 

5,346

 

 

 

5,220

 

 

 

4,325

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

15,462

 

 

 

15,215

 

 

 

15,259

 

 

 

15,027

 

 

 

13,844

Software licensing and utilization

 

2,120

 

 

 

1,826

 

 

 

2,085

 

 

 

2,070

 

 

 

1,946

Occupancy, net

 

1,982

 

 

 

1,952

 

 

 

1,761

 

 

 

1,750

 

 

 

1,886

Equipment

 

1,222

 

 

 

1,330

 

 

 

1,292

 

 

 

1,248

 

 

 

1,251

Shares tax

 

997

 

 

 

255

 

 

 

808

 

 

 

751

 

 

 

899

Legal and professional fees

 

998

 

 

 

653

 

 

 

890

 

 

 

602

 

 

 

800

ATM/card processing

 

534

 

 

 

442

 

 

 

641

 

 

 

532

 

 

 

493

Intangible amortization

 

428

 

 

 

491

 

 

 

484

 

 

 

461

 

 

 

344

FDIC Assessment

 

945

 

 

 

730

 

 

 

1,746

 

 

 

684

 

 

 

340

(Gain) loss on sale or write-down of foreclosed assets, net

 

 

 

 

 

 

 

(18

)

 

 

(126

)

 

 

Merger and acquisition

 

 

 

 

 

 

 

352

 

 

 

4,992

 

 

 

224

Post-acquisition restructuring

 

 

 

 

 

 

 

 

 

 

2,952

 

 

 

Other

 

3,832

 

 

 

5,495

 

 

 

3,929

 

 

 

4,185

 

 

 

3,814

Total Noninterest Expense

 

28,520

 

 

 

28,389

 

 

 

29,229

 

 

 

35,128

 

 

 

25,841

INCOME BEFORE PROVISION FOR INCOME TAXES

 

14,710

 

 

 

14,392

 

 

 

11,510

 

 

 

4,978

 

 

 

13,814

Provision for income taxes

 

2,577

 

 

 

2,294

 

 

 

2,274

 

 

 

142

 

 

 

2,587

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

$

12,133

 

 

$

12,098

 

 

$

9,236

 

 

$

4,836

 

 

$

11,227

 

 

 

 

 

 

 

 

 

 

PER COMMON SHARE DATA:

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

$

0.73

 

 

$

0.73

 

 

$

0.56

 

 

$

0.29

 

 

$

0.71

Diluted Earnings Per Common Share

$

0.73

 

 

$

0.73

 

 

$

0.56

 

 

$

0.29

 

 

$

0.70

Cash Dividends Declared

$

0.20

 

 

$

0.20

 

 

$

0.20

 

 

$

0.20

 

 

$

0.20

CONSOLIDATED – AVERAGE BALANCE SHEET AND NET INTEREST INCOME ANALYSIS (Unaudited):

 

Average Balances, Income and Interest Rates on a Taxable Equivalent Basis

 

For the Three Months Ended

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

(Dollars in thousands)

Average Balance

 

Interest

 

Yield/

Rate

 

Average Balance

 

Interest

 

Yield/

Rate

 

Average Balance

 

Interest

 

Yield/

Rate

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Bearing Balances

$

39,999

 

$

403

 

4.05

%

 

$

30,715

 

$

139

 

1.80

%

 

$

5,761

 

$

53

 

3.73

%

Investment Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

539,674

 

 

3,800

 

2.83

 

 

 

530,099

 

 

3,199

 

2.39

 

 

 

556,901

 

 

3,764

 

2.74

 

Tax-Exempt

 

76,013

 

 

376

 

1.99

 

 

 

76,847

 

 

378

 

1.95

 

 

 

79,250

 

 

493

 

2.52

 

Total Securities

 

615,687

 

 

4,176

 

2.73

 

 

 

606,946

 

 

3,577

 

2.34

 

 

 

636,151

 

 

4,257

 

2.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Funds Sold

 

10,373

 

 

136

 

5.27

 

 

 

12,224

 

 

228

 

7.40

 

 

 

3,775

 

 

45

 

4.83

 

Loans, Net of Unearned Interest

 

4,293,828

 

 

63,236

 

5.92

 

 

 

4,201,092

 

 

61,309

 

5.79

 

 

 

3,555,375

 

 

45,961

 

5.24

 

Restricted Investment in Bank Stocks

 

19,439

 

 

239

 

4.94

 

 

 

13,754

 

 

315

 

9.09

 

 

 

9,542

 

 

110

 

4.68

 

Total Earning Assets

 

4,979,326

 

 

68,190

 

5.51

 

 

 

4,864,731

 

 

65,568

 

5.35

 

 

 

4,210,604

 

 

50,426

 

4.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Due from Banks

 

38,264

 

 

 

 

 

 

38,370

 

 

 

 

 

 

51,444

 

 

 

 

Other Assets

 

302,090

 

 

 

 

 

 

323,281

 

 

 

 

 

 

258,821

 

 

 

 

Total Assets

$

5,319,680

 

 

 

 

 

$

5,226,382

 

 

 

 

 

$

4,520,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS' EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing Demand

$

898,340

 

$

3,884

 

1.74

%

 

$

938,246

 

$

4,087

 

1.73

%

 

$

968,951

 

$

2,691

 

1.13

%

Money Market

 

876,242

 

 

5,968

 

2.74

 

 

 

925,902

 

 

6,266

 

2.68

 

 

 

940,286

 

 

4,084

 

1.76

 

Savings

 

287,765

 

 

72

 

0.10

 

 

 

295,757

 

 

53

 

0.07

 

 

 

330,773

 

 

54

 

0.07

 

Time

 

1,468,611

 

 

16,408

 

4.49

 

 

 

1,405,927

 

 

15,403

 

4.35

 

 

 

749,598

 

 

5,172

 

2.80

 

Total Interest-bearing Deposits

 

3,530,958

 

 

26,332

 

3.00

 

 

 

3,565,832

 

 

25,809

 

2.87

 

 

 

2,989,608

 

 

12,001

 

1.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short term borrowings

 

316,025

 

 

4,446

 

5.66

 

 

 

149,218

 

 

2,506

 

6.66

 

 

 

121,898

 

 

1,490

 

4.96

 

Long-term debt

 

40,571

 

 

533

 

5.28

 

 

 

58,987

 

 

373

 

2.51

 

 

 

4,350

 

 

44

 

4.10

 

Subordinated debt and trust preferred securities

 

46,275

 

 

424

 

3.69

 

 

 

46,425

 

 

429

 

3.67

 

 

 

56,875

 

 

642

 

4.58

 

Total Interest-bearing Liabilities

 

3,933,829

 

 

31,735

 

3.24

 

 

 

3,820,462

 

 

29,117

 

3.02

 

 

 

3,172,731

 

 

14,177

 

1.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing Demand

 

781,136

 

 

 

 

 

 

836,733

 

 

 

 

 

 

793,382

 

 

 

 

Other Liabilities

 

58,714

 

 

 

 

 

 

31,968

 

 

 

 

 

 

43,899

 

 

 

 

Shareholders' Equity

 

546,001

 

 

 

 

 

 

537,219

 

 

 

 

 

 

510,857

 

 

 

 

Total Liabilities & Shareholders' Equity

$

5,319,680

 

 

 

 

 

$

5,226,382

 

 

 

 

 

$

4,520,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

 

$

36,455

 

 

 

 

 

$

36,451

 

 

 

 

 

$

36,049

 

 

Taxable Equivalent Adjustment (1)

 

 

 

260

 

 

 

 

 

 

33

 

 

 

 

 

 

200

 

 

Net Interest Income (taxable equivalent basis)

 

 

$

36,715

 

 

 

 

 

$

36,484

 

 

 

 

 

$

36,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Yield on Earning Assets

 

 

 

 

5.51

%

 

 

 

 

 

5.35

%

 

 

 

 

 

4.86

%

Rate on Supporting Liabilities

 

 

 

 

3.24

 

 

 

 

 

 

3.02

 

 

 

 

 

 

1.81

 

Average Interest Spread

 

 

 

 

2.26

 

 

 

 

 

 

2.32

 

 

 

 

 

 

3.05

 

Net Interest Margin

 

 

 

 

2.97

 

 

 

 

 

 

2.97

 

 

 

 

 

 

3.49

 

 

(1)

Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance.

ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited):

(Dollars in thousands)

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

Allowance for Credit Losses on Loans:

 

 

 

 

 

 

 

 

 

Beginning balance

$

34,187

 

 

$

34,004

 

 

$

32,588

 

 

$

31,265

 

 

$

18,957

 

 

 

 

 

 

 

 

 

 

 

Impact of adopting CECL

 

 

 

 

 

 

 

 

 

 

 

 

 

11,931

 

Purchase credit deteriorated loans

 

 

 

 

 

 

 

 

 

 

336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Charged off

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

(16

)

Commercial and industrial

 

 

 

 

(19

)

 

 

 

 

 

(109

)

 

 

(111

)

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

(28

)

 

 

(9

)

 

 

 

 

 

 

 

 

(4

)

Consumer

 

(22

)

 

 

(17

)

 

 

(32

)

 

 

(65

)

 

 

(19

)

Total loans charged off

 

(50

)

 

 

(45

)

 

 

(32

)

 

 

(174

)

 

 

(150

)

Recoveries of loans previously charged off

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

 

 

 

 

7

 

 

 

 

 

 

30

 

Consumer

 

6

 

 

 

7

 

 

 

14

 

 

 

4

 

 

 

7

 

Total recoveries

 

6

 

 

 

7

 

 

 

21

 

 

 

4

 

 

 

37

 

Balance before provision

 

34,143

 

 

 

33,966

 

 

 

32,577

 

 

 

31,431

 

 

 

30,775

 

Provision for credit losses - loans

 

(619

)

 

 

221

 

 

 

1,427

 

 

 

1,157

 

 

 

490

 

Balance, end of quarter

$

33,524

 

 

$

34,187

 

 

$

34,004

 

 

$

32,588

 

 

$

31,265

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

Total nonperforming loans

 

10,390

 

 

 

14,216

 

 

 

13,458

 

 

 

15,846

 

 

 

13,909

 

 

 

 

 

 

 

 

 

 

 

Foreclosed real estate

 

5,110

 

 

 

293

 

 

 

905

 

 

 

489

 

 

 

248

 

Total nonperforming assets

 

15,500

 

 

 

14,509

 

 

 

14,363

 

 

 

16,335

 

 

 

14,157

 

 

 

 

 

 

 

 

 

 

 

Accruing loans 90 days or more past due

 

25

 

 

 

 

 

 

12

 

 

 

9

 

 

 

7

 

Total risk elements

$

15,525

 

 

$

14,509

 

 

$

14,375

 

 

$

16,344

 

 

$

14,164

 

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 efficiency ratio is often used by management to measure its noninterest expense as a percentage of its revenue. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Mid Penn’s results and financial condition as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding Mid Penn’s ongoing operating results. This supplemental presentation should not be construed as an inference that Mid Penn’s future results will be unaffected by similar adjustments to be determined in accordance with GAAP. The reconciliation of the non-GAAP to comparable GAAP financial measures can be found in the tables below.

Tangible Book Value Per Share

(Dollars in thousands, except per share data)

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

$

550,968

 

$

542,350

 

$

528,711

 

$

525,888

 

$

510,793

Less: Goodwill

 

127,031

 

 

127,031

 

 

127,031

 

 

127,031

 

 

114,231

Less: Core Deposit and Other Intangibles

 

6,051

 

 

6,479

 

 

6,970

 

 

7,453

 

 

6,916

Tangible Equity

$

417,886

 

$

408,840

 

$

394,710

 

$

391,404

 

$

389,646

 

 

 

 

 

 

 

 

 

 

Common Shares Outstanding

 

16,565,637

 

 

16,573,707

 

 

16,580,347

 

 

16,567,578

 

 

15,890,011

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Share

$

25.23

 

$

24.67

 

$

23.81

 

$

23.62

 

$

24.52

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

 

Three Months Ended

(Dollars in thousands, except per share data)

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

 

 

 

 

 

 

 

 

 

 

Net Income Available to Common Shareholders

$

12,133

 

$

12,098

 

$

9,236

 

$

4,836

 

$

11,227

Less: BOLI Death Benefit Income

 

1,460

 

 

 

 

 

 

 

 

Plus: Merger and Acquisition Expenses

 

 

 

 

 

352

 

 

7,944

 

 

224

Less: Tax Effect of Merger and Acquisition Expenses

 

 

 

 

 

74

 

 

1,668

 

 

47

Net Income Excluding Non-Recurring Income and Expenses

$

10,673

 

$

12,098

 

$

9,514

 

$

11,112

 

$

11,404

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

16,567,902

 

 

16,574,199

 

 

16,571,825

 

 

16,235,106

 

 

15,886,186

 

 

 

 

 

 

 

 

 

 

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

$

0.64

 

$

0.73

 

$

0.57

 

$

0.68

 

$

0.72

Return on Average Tangible Common Equity

 

Three Months Ended

(Dollars in thousands)

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

$

12,133

 

 

$

12,098

 

 

$

9,236

 

 

$

4,836

 

 

$

11,227

 

Plus: Intangible amortization, net of tax

 

338

 

 

 

388

 

 

 

382

 

 

 

364

 

 

 

272

 

 

$

12,471

 

 

$

12,486

 

 

$

9,618

 

 

$

5,200

 

 

$

11,499

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity

$

546,001

 

 

$

537,219

 

 

$

529,067

 

 

$

504,535

 

 

$

510,857

 

Less: Average goodwill

 

127,031

 

 

 

127,031

 

 

 

127,031

 

 

 

120,631

 

 

 

114,231

 

Less: Average core deposit and other intangibles

 

6,259

 

 

 

6,716

 

 

 

7,210

 

 

 

7,016

 

 

 

7,129

 

Average tangible shareholders' equity

$

412,711

 

 

$

403,472

 

 

$

394,826

 

 

$

376,888

 

 

$

389,497

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity

 

12.15

%

 

 

12.31

%

 

 

9.69

%

 

 

5.55

%

 

 

12.01

%

Efficiency Ratio

 

Three Months Ended

(Dollars in thousands)

Mar. 31,
2024

 

Dec. 31,
2023

 

Sep. 30,
2023

 

Jun. 30,
2023

 

Mar. 31,
2023

 

 

 

 

 

 

 

 

 

 

Noninterest expense

$

28,520

 

 

$

28,389

 

 

$

29,229

 

 

$

35,128

 

 

$

25,841

 

Less: Merger and acquisition expenses

 

 

 

 

 

 

 

352

 

 

 

7,944

 

 

 

224

 

Less: Intangible amortization

 

428

 

 

 

491

 

 

 

484

 

 

 

461

 

 

 

344

 

Less: (Gain) loss on sale or write-down of foreclosed assets, net

 

 

 

 

 

 

 

(18

)

 

 

(126

)

 

 

 

Efficiency ratio numerator

$

28,092

 

 

$

27,898

 

 

$

28,411

 

 

$

26,849

 

 

$

25,273

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

36,456

 

 

 

37,000

 

 

 

37,480

 

 

 

36,444

 

 

 

36,049

 

Noninterest income

 

5,837

 

 

 

5,117

 

 

 

5,346

 

 

 

5,220

 

 

 

4,325

 

Less: BOLI Death Benefit

 

1,460

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio denominator

$

40,833

 

 

$

42,117

 

 

$

42,826

 

 

$

41,664

 

 

$

40,374

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

68.80

%

 

 

66.24

%

 

 

66.34

%

 

 

64.44

%

 

 

62.60

%

 

Contacts

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

Rory G. Ritrievi
Chair, President & Chief Executive Officer

Justin T. Webb
Chief Financial Officer

Contacts

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

Rory G. Ritrievi
Chair, President & Chief Executive Officer

Justin T. Webb
Chief Financial Officer