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 December 31, 2024, of $13.2
million, or $0.72 per diluted common share, compared to net income
of $12.1 million, or $0.73 per diluted common share, for the fourth
quarter of 2023, and a consensus analyst estimate of $0.71 per
diluted common share for the fourth quarter of 2024.
Key Highlights of the Fourth Quarter of 2024:
- Net income available to common shareholders increased 9.4% to
$13.2 million, or $0.72 per diluted common share, for the fourth
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 for the year ended December 31, 2024, increased 32.2% to
$49.4 million, or $2.90 per diluted common share, compared to $37.4
million for the year ended December 31, 2023, or $2.29 per diluted
common share.
- On November 4, 2024, Mid Penn Bancorp, Inc. completed its
underwritten public offering of 2,375,000 shares of common stock at
a price of $29.50 per share. Outstanding shares as of December 31,
2024 were 19,355,797, compared to 16,573,707 as of December 31,
2023.
- Net interest margin increased to 3.21% for the quarter ended
December 31, 2024, compared to 3.13% for the third quarter of 2024.
Cost of funds decreased to 2.66% for the quarter ended December 31,
2024, compared to 2.77% for the third quarter of 2024, as a result
of a $112.1 million decrease in short term and overnight
borrowings, and a decrease in interest paid on interest-bearing
deposit accounts due to the Bank lowering rates in response to the
Federal Reserve interest rate cuts in the third and fourth quarters
of 2024.
- Loan growth for the fourth quarter of 2024 was $11.4 million,
or 1.0% (annualized), as the Bank continued to execute on its
restrained growth strategy in 2024. Total loans increased $190.3
million, or 4.5% to $4.4 billion at December 31, 2024, compared to
$4.3 billion at December 31, 2023.
- Deposits decreased $16.8 million, or 1.4% (annualized), during
the fourth quarter of 2024, compared to an increase of $209.8
million, or 18.6% (annualized), during the third quarter of 2024.
This decrease was driven by a $32.8 million decrease in
noninterest-bearing accounts and a $15.0 million decrease in time
deposits, offset by a $31.0 million increase in interest-bearing
transaction accounts. Total deposits increased $343.7 million or
7.91% to $4.7 billion at December 31, 2024, compared to $4.3
billion at December 31, 2023.
- On October 31, 2024, Mid Penn Bancorp, Inc. entered into an
Agreement and Plan of Merger (the “Merger Agreement”) with William
Penn Bancorporation (“William Penn”) pursuant to which William Penn
will merge with and into Mid Penn in an all-stock transaction
valued at approximately $107 million, based on Mid Penn’s closing
stock price as of October 30, 2024. The Merger has been approved
unanimously by each company’s board of directors and is expected to
close in the first half of 2025. Completion of the transaction is
subject to customary closing conditions, including the receipt of
required regulatory approvals and the approval of Mid Penn and
William Penn shareholders.
- The Board of Directors declared a cash dividend of $0.20 per
common share, payable February 18, 2025, to shareholders of record
as of February 7, 2025.
Chair, President and CEO Rory G. Ritrievi provided the following
statement:
"When I was in high school, the coaches of the football teams
would have all the players hold their right hands above their heads
with four fingers extended and with each player shouting “four”
over and over at the beginning of the fourth quarter. They did this
to get each player laser focused on the importance of finishing the
game as strongly as possible.
That is exactly what we did at Mid Penn in the fourth quarter of
2024. After three solid quarters leading in to the fourth, we
delivered yet another solid performance that was characterized much
like the previous three, and all attributed to a strong performance
on the part of the entire employee group.
Strong asset quality, restrained balance sheet growth in a
continued inverted yield curve environment, improvement in net
interest margin, good performance in non-interest income and
responsible non-interest expense management were all part of the
quarterly success.
That solid quarterly performance came even as the company
announced its merger intentions with William Penn and a completion
of an $80 million capital raise within the quarter. A busy quarter
indeed.
With that success, we not only beat consensus estimates for the
quarter, but also for the full year, making 2024 another standout
year for Mid Penn.
On the basis of that performance, the Board has authorized its
57th consecutive quarterly dividend, a cash dividend of $0.20 per
share of common stock, which was declared at its meeting on January
22, 2025, payable on February 18, 2025, to shareholders of record
as of February 7, 2025."
Net Interest Income
For the three months ended December 31, 2024, net interest
income was $41.3 million, compared to net interest income of $40.2
million for the three months ended September 30, 2024, and $37.0
million for the three months ended December 31, 2023. The
tax-equivalent net interest margin for the three months ended
December 31, 2024, was 3.21% compared to 3.13% and 2.98% for the
third quarter of 2024 and fourth quarter of 2023, respectively,
representing an 8 basis point ("bp") increase from the third
quarter of 2024, and a 23 bp increase compared to the same period
in 2023.
The yield on interest-earning assets decreased to 5.67% for the
quarter ended December 31, 2024, from 5.73% for the three months
ended September 30, 2024, and increased from 5.35% for the three
months ended December 31, 2023. The decrease from the third quarter
of 2024 was due to a decrease in the average balance of Federal
Funds Sold and a decrease in the average balance of restricted
investments in bank stocks, partially offset by an increase in
taxable investment securities. The increase from December 31, 2023,
was due to assets continuing to reprice at higher rates during
2024, continued discipline on new loan pricing, and an overall
increase in the average balance of Fed Funds Sold.
For the year ended December 31, 2024, net interest income
increased 6.6% to $156.7 million compared to net interest income of
$147.0 million for the same period of 2023. The increase was
primarily due to a $47.5 million increase in interest income on
loans, offset by a $37.0 million increase in interest expense on
deposits compared to the same period of 2023.
Average Balances
Average loans increased $35.5 million to $4.4 billion for the
quarter ended December 31, 2024, compared to $4.4 billion for the
quarter ended September 30, 2024, and $4.2 billion for the quarter
ended December 31, 2023.
Average deposits were $4.7 billion for the fourth quarter of
2024, reflecting an increase of $90.2 million, or 2.0%, compared to
total average deposits of $4.6 billion in the third quarter of
2024, and an increase of $285.3 million, or 6.5%, compared to total
average deposits of $4.4 billion for the fourth quarter of 2023.
The average cost of deposits was 2.62% for the fourth quarter of
2024, representing a 3 bp decrease and a 28 bp increase from the
third quarter of 2024 and the fourth quarter of 2023, respectively.
The Bank continues to face headwinds with respect to deposit
pricing, given 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, the Bank also
maintains interest rate swaps to hedge the cash flows associated
with existing brokered CDs to mitigate the impact of higher deposit
costs. Cost of funds decreased to 2.66%, compared to 2.77% for the
third quarter of 2024, as a result of a $112.1 million decrease in
short term and overnight borrowings, and a decrease in interest
paid on interest-bearing deposit accounts due to the Bank lowering
rates in response to the Federal Reserve interest rate cuts in the
third and fourth quarters of 2024.
Asset Quality
The total provision for credit losses, including provision for
credit losses on off-balance sheet credit exposures, was $333
thousand for the three months ended December 31, 2024, a decrease
of $183 thousand compared to the provision for credit losses of
$516 thousand for the three months ended September 30, 2024, and a
$1.0 million increase compared to the benefit for credit losses of
$664 thousand for the three months ended December 31, 2023. This
decrease from the three months ended September 30, 2024, was driven
by decreases in loss rates across multiple segments of the
portfolio, offset by increased reserves on individually evaluated
loans. Net charge-offs for the three months ended December 31,
2024, were $408 thousand or less than 0.009% of total average
loans.
The provision for credit losses on loans was $2.1 million for
the year ended December 31, 2024, a decrease of $1.2 million
compared to the provision for credit losses of $3.3 million for the
year ended December 31, 2023. This decrease for the year ended
December 31, 2024, was primarily due to a decrease in loss factors
across most portfolios. The benefit for credit losses on
off-balance sheet credit exposures was $628 thousand for the year
ended December 31, 2024. Net charge-offs for the year ended
December 31, 2024, were $817 thousand or 0.018% of total average
loans.
Allowance for credit losses - loans was 0.80% of loans, net of
unearned income at December 31, 2024, September 30, 2024, and
December 31, 2023, respectively.
Total nonperforming assets were $22.7 million at December 31,
2024, compared to nonperforming assets of $17.7 million and $14.5
million at September 30, 2024, and December 31, 2023, respectively.
The increase during the fourth quarter of 2024 primarily related to
the addition of two commercial loans with a combined balance of
$3.0 million, and two commercial real estate loans with a combined
balance of $2.3 million being placed on nonaccrual in the fourth
quarter of 2024. Delinquency, measured as loans past due 30 days or
more, as a percentage of total loans was 0.52% at December 31,
2024, compared to 0.61% and 0.49% as of September 30, 2024, and
December 31, 2023, respectively.
Capital
Shareholders’ equity increased $112.7 million, or 20.8%, from
$542.4 million as of December 31, 2023, to $655.0 million as of
December 31, 2024. This increase is primarily due to retained
earnings and the proceeds of the capital raise completed in
November 2024. Retained earnings increased $9.4 million, or 5.4%,
from $172.2 million as of September 30, 2024, to $181.6 million as
of December 31, 2024. Regulatory capital ratios for both Mid Penn
and the Bank indicate regulatory capital levels in excess of both
the regulatory minimums and the levels necessary for the Bank to be
considered "well capitalized" at December 31, 2024. Additionally,
Mid Penn declared $3.9 million in dividends during the fourth
quarter of 2024.
On April 24, 2024, Mid Penn’s Board of Directors reauthorized
its treasury stock repurchase program ("The 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
year ended December 31, 2024, Mid Penn repurchased 15,500 shares of
common stock at an average price of $20.81. As of December 31,
2024, Mid Penn repurchased a total of 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 December 31, 2024.
Noninterest Income
For the three months ended December 31, 2024, noninterest income
totaled $6.1 million, an increase of $971 thousand, or 18.8%,
compared to noninterest income of $5.2 million for the third
quarter of 2024. The increase is primarily due to a $1.2 million
increase in other miscellaneous noninterest income, driven by a
$615 thousand increase in Bank-owned life insurance benefits
received, a $305 thousand increase in loan level swap fees, and a
$230 thousand increase in insurance commissions, partially offset
by a $112 thousand decrease in mortgage banking income and a $136
thousand decrease in the gain on sales of SBA loans.
For the year ended December 31, 2024, noninterest income totaled
$22.5 million, an increase of $2.5 million, or 12.4%, compared to
noninterest income of $20.0 million for the year ended December 31,
2023. The increase in noninterest income is primarily driven by a
$2.2 million increase in other miscellaneous noninterest income,
driven by increases in Bank-owned life insurance benefits received,
and a $1.1 million increase in Mortgage Banking income, partially
offset by a $379 thousand decrease in fiduciary and wealth
management and a $314 thousand decrease in mortgage hedging.
Noninterest Expense
Total noninterest expense increased $955 thousand to $30.9
million in the fourth quarter of 2024 from $30.0 million in the
third quarter of 2024. The increase was driven by a $791 thousand
increase in salaries and employee benefits and a $677 thousand
increase in other miscellaneous noninterest expense, driven by an
$843 thousand increase in charitable contributions, partially
offset by a $607 thousand decrease in legal and professional fees
and a $419 thousand decrease in shares tax.
For the year ended December 31, 2024, noninterest expense
totaled $117.6 million, a decrease of $972 thousand, or 0.8%,
compared to noninterest expense of $118.6 million for the year
ended December 31, 2023. The decrease was primarily driven by a
$5.0 million decrease in merger and acquisition expenses, and a
$3.0 million decrease in post acquisition restructuring, partially
offset by a $4.8 million increase in salaries and benefits expense,
driven by year-end employee bonus incentives, increases in employee
salaries, and increased costs of employee medical benefits, a $1.4
million increase in legal and professional fees, and a $1.4 million
increase in software licensing and utilization.
The efficiency ratio(1) was 63.9% in the fourth quarter of 2024,
compared to 64.9% in the third quarter of 2024, and 66.2% in the
fourth quarter of 2023. The change in the efficiency ratio during
the fourth quarter of 2024 compared to the third quarter of 2024
was the result of higher net interest income and higher noninterest
income driven by an increase in loan level swap fees and insurance
commissions, partially offset by slightly higher noninterest
expense. 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 in the
section titled “Reconciliation of Non-GAAP Measures (Unaudited)” 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 occurrence of any event, change or other
circumstances that could give rise to the right of one or both of
the parties to terminate the merger agreement between Mid Penn and
William Penn; the outcome of any legal proceedings that may be
instituted against Mid Penn or William Penn; delays in completing
the transaction; the failure to obtain necessary regulatory
approvals (and the risk that such approvals may result in the
imposition of conditions that could adversely affect the combined
company or the expected benefits of the transaction); the failure
to obtain shareholder approvals or to satisfy any of the other
conditions to the transaction on a timely basis or at all; the
possibility that the transaction may be more expensive to complete
than anticipated, including as a result of unexpected factors or
events; the possibility that the anticipated benefits of the
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 the transaction;
the ability to complete the integration of Mid Penn and William
Penn successfully; the dilution caused by Mid Penn’s issuance of
additional shares of its capital stock in connection with the
transaction; and other factors that may affect the future results
of Mid Penn or William 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)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Ending Balances:
Investment securities
$
643,352
$
642,291
$
601,683
$
615,061
$
623,121
Loans, net of unearned income
4,443,070
4,431,704
4,364,561
4,317,449
4,252,792
Total assets
5,470,362
5,527,025
5,391,749
5,330,379
5,290,792
Total deposits
4,689,927
4,706,764
4,497,011
4,379,105
4,346,212
Shareholders' equity
655,018
573,059
559,686
550,968
542,350
Average Balances:
Investment securities
633,409
610,586
608,173
615,687
606,946
Loans, net of unearned income
4,441,436
4,405,969
4,353,360
4,293,828
4,201,092
Total assets
5,481,473
5,470,641
5,378,897
5,319,680
5,226,382
Total deposits
4,687,880
4,597,686
4,451,678
4,312,094
4,402,565
Shareholders' equity
623,670
565,300
553,675
546,001
537,219
Three Months Ended
Income Statement:
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Net interest income
$
41,280
$
40,169
$
38,766
$
36,456
$
37,000
Provision for credit losses
333
516
1,604
(937
)
(664
)
Noninterest income
6,149
5,178
5,329
5,837
5,117
Noninterest expense
30,913
29,959
28,224
28,520
28,389
Income before provision for income
taxes
16,183
14,872
14,267
14,710
14,392
Provision for income taxes
2,951
2,571
2,496
2,577
2,294
Net income available to shareholders
13,232
12,301
11,771
12,133
12,098
Net income excluding non-recurring income
and expenses (1)
12,961
12,383
11,284
10,673
12,098
Per Share:
Basic earnings per common share
$
0.72
$
0.74
$
0.71
$
0.73
$
0.73
Diluted earnings per common share
0.72
0.74
0.71
0.73
0.73
Cash dividends declared
0.20
0.20
0.20
0.20
0.20
Book value per common share
33.84
34.48
33.76
33.26
32.72
Tangible book value per common share
(1)
26.90
26.36
25.75
25.23
24.67
Asset Quality:
Net charge-offs (recoveries) to average
loans (3)
0.037
%
0.031
%
0.002
%
0.004
%
0.004
%
Non-performing loans to total loans
0.51
0.39
0.23
0.24
0.33
Non-performing asset to total loans and
other real estate
0.51
0.40
0.24
0.36
0.34
Non-performing asset to total assets
0.41
0.32
0.19
0.29
0.27
ACL on loans to total loans
0.80
0.80
0.81
0.78
0.80
ACL on loans to nonperforming loans
157.07
204.61
352.92
322.69
240.48
Profitability:
Return on average assets (3)
0.96
%
0.89
%
0.88
%
0.92
%
0.92
%
Return on average equity (3)
8.44
8.66
8.55
8.94
8.93
Return on average tangible common equity
(1) (3)
11.07
11.69
11.57
12.15
12.31
Tax-equivalent net interest margin
3.21
3.13
3.12
2.98
2.98
Efficiency ratio (1)
63.94
64.89
63.65
68.80
66.24
Capital Ratios:
Tier 1 Capital (to Average Assets) (2)
10.0
%
8.4
%
8.4
%
8.3
%
8.3
%
Common Tier 1 Capital (to Risk Weighted
Assets) (2)
12.1
10.1
9.9
9.6
9.7
Tier 1 Capital (to Risk Weighted Assets)
(2)
12.1
10.1
9.9
9.6
9.7
Total Capital (to Risk Weighted Assets)
(2)
14.0
11.9
11.8
11.4
11.6
(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 December 31, 2024 are
preliminary and prior periods are actual.
(3) Annualized ratio
CONSOLIDATED BALANCE SHEETS
(Unaudited):
(In thousands, except share data)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
ASSETS
Cash and due from banks
$
37,002
$
57,518
$
36,948
$
33,362
$
45,435
Interest-bearing balances with other
financial institutions
14,490
19,323
25,585
31,801
34,668
Federal funds sold
19,072
67,554
43,193
2,922
16,660
Total cash and cash equivalents
70,564
144,395
105,726
68,085
96,763
Investment Securities:
Held to maturity, at amortized cost
382,447
386,618
393,320
396,998
399,128
Available for sale, at fair value
260,477
255,227
207,936
217,632
223,555
Equity securities available for sale, at
fair value
428
446
427
431
438
Loans held for sale
7,064
7,919
8,420
4,581
3,855
Loans, net of unearned income
4,443,070
4,431,704
4,364,561
4,317,449
4,252,792
Less: Allowance for credit losses
(35,514
)
(35,562
)
(35,288
)
(33,524
)
(34,187
)
Net loans
4,407,556
4,396,142
4,329,273
4,283,925
4,218,605
Premises and equipment, net
38,806
33,765
34,344
36,068
36,909
Operating lease right of use asset
7,699
7,390
7,925
8,414
8,953
Finance lease right of use asset
2,548
2,593
2,638
2,683
2,727
Cash surrender value of life insurance
51,521
53,135
53,298
52,997
54,497
Restricted investment in bank stocks
7,461
10,589
13,930
17,446
16,768
Accrued interest receivable
26,846
27,286
27,381
26,975
25,820
Deferred income taxes
22,747
23,197
24,520
22,894
24,146
Goodwill
128,160
128,160
127,031
127,031
127,031
Core deposit and other intangibles,
net
6,242
6,713
5,626
6,051
6,479
Foreclosed assets held for sale
44
281
441
5,110
293
Other assets
49,752
43,169
49,513
53,058
44,825
Total Assets
$
5,470,362
$
5,527,025
$
5,391,749
$
5,330,379
$
5,290,792
LIABILITIES & SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand
$
759,169
$
791,980
$
766,014
$
807,861
$
801,312
Interest-bearing transaction accounts
2,319,753
2,288,783
2,194,948
2,082,846
2,086,450
Time
1,611,005
1,626,001
1,536,049
1,488,398
1,458,450
Total Deposits
4,689,927
4,706,764
4,497,011
4,379,105
4,346,212
Short-term borrowings
2,000
114,097
200,000
271,849
241,532
Long-term debt
23,603
23,716
23,827
23,941
59,003
Subordinated debt and trust preferred
securities
45,741
45,894
46,047
46,201
46,354
Operating lease liability
8,092
7,778
8,344
8,683
9,285
Accrued interest payable
13,484
18,995
18,139
16,330
14,257
Other liabilities
32,497
36,722
38,695
33,302
31,799
Total Liabilities
4,815,344
4,953,966
4,832,063
4,779,411
4,748,442
Shareholders' Equity:
Common stock, par value $1.00 per share;
40.0 million shares authorized
19,797
17,061
17,051
17,006
16,999
Additional paid-in capital
480,491
406,922
406,544
406,150
405,725
Retained earnings
181,597
172,234
163,256
154,801
145,982
Accumulated other comprehensive loss
(16,825
)
(13,116
)
(17,123
)
(16,947
)
(16,637
)
Treasury stock
(10,042
)
(10,042
)
(10,042
)
(10,042
)
(9,719
)
Total Shareholders’ Equity
655,018
573,059
559,686
550,968
542,350
Total Liabilities and Shareholders'
Equity
$
5,470,362
$
5,527,025
$
5,391,749
$
5,330,379
$
5,290,792
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited):
Three Months Ended
(Dollars in thousands, except per share
data)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
INTEREST INCOME
Loans, including fees
$
68,110
$
68,080
$
66,096
$
63,236
$
61,309
Investment securities:
Taxable
4,223
4,136
4,143
4,040
4,063
Tax-exempt
358
359
371
376
378
Other interest-bearing balances
154
223
347
403
139
Federal funds sold
467
1,043
282
136
228
Total Interest Income
73,312
73,841
71,239
68,191
66,117
INTEREST EXPENSE
Deposits
30,836
30,689
28,463
26,332
25,808
Short-term borrowings
509
2,296
3,324
4,446
2,506
Long-term and subordinated debt
687
687
686
957
803
Total Interest Expense
32,032
33,672
32,473
31,735
29,117
Net Interest Income
41,280
40,169
38,766
36,456
37,000
Net provision for credit losses
333
516
1,604
(937
)
(664
)
Net Interest Income After Provision for
Credit Losses
40,947
39,653
37,162
37,393
37,664
NONINTEREST INCOME
Fiduciary and wealth management
1,215
1,204
1,129
1,132
1,323
ATM debit card interchange
971
962
973
945
979
Service charges on deposits
579
549
539
509
485
Mortgage banking
656
768
628
424
300
Mortgage hedging
11
(1
)
—
—
109
Net gain on sales of SBA loans
15
151
74
107
358
Earnings from cash surrender value of life
insurance
280
276
301
284
288
Other
2,422
1,269
1,685
2,436
1,275
Total Noninterest Income
6,149
5,178
5,329
5,837
5,117
NONINTEREST EXPENSE
Salaries and employee benefits
16,947
16,156
15,533
15,462
15,215
Software licensing and utilization
2,606
2,366
2,208
2,120
1,826
Occupancy, net
1,913
1,815
1,861
1,982
1,952
Equipment
1,213
1,206
1,287
1,222
1,330
Shares tax
405
824
124
997
255
Legal and professional fees
1,006
1,613
689
998
653
ATM/card processing
634
606
510
534
442
Intangible amortization
471
460
425
428
491
FDIC Assessment
843
1,150
1,232
945
730
Loss/(Gain) on sale or write-down of
foreclosed assets, net
73
(35
)
42
—
—
Merger and acquisition
436
109
—
—
—
Other
4,366
3,689
4,313
3,832
5,495
Total Noninterest Expense
30,913
29,959
28,224
28,520
28,389
INCOME BEFORE PROVISION FOR INCOME
TAXES
16,183
14,872
14,267
14,710
14,392
Provision for income taxes
2,951
2,571
2,496
2,577
2,294
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
13,232
$
12,301
$
11,771
$
12,133
$
12,098
PER COMMON SHARE DATA:
Basic Earnings Per Common Share
$
0.72
$
0.74
$
0.71
$
0.73
$
0.73
Diluted Earnings Per Common Share
0.72
0.74
0.71
0.73
0.73
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
December 31, 2024
September 30, 2024
December 31, 2023
(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
$
21,720
$
154
2.82
%
$
25,123
$
223
3.53
%
$
30,715
$
139
1.80
%
Investment Securities:
Taxable
561,809
4,071
2.88
537,257
3,682
2.73
530,099
3,199
2.39
Tax-Exempt
71,600
358
1.99
73,329
359
1.95
76,847
378
1.95
Total Securities
633,409
4,429
2.78
610,586
4,041
2.63
606,946
3,577
2.34
Federal Funds Sold
39,788
467
4.67
75,683
1,043
5.48
12,224
228
7.40
Loans, Net of Unearned Income
4,441,436
68,110
6.10
4,405,969
68,080
6.15
4,201,092
61,309
5.79
Restricted Investment in Bank Stocks
7,939
152
7.62
13,252
454
13.63
13,754
316
9.12
Total Earning Assets
5,144,292
73,312
5.67
5,130,613
73,841
5.73
4,864,731
65,569
5.35
Cash and Due from Banks
38,743
44,052
38,370
Other Assets
298,438
295,976
323,281
Total Assets
$
5,481,473
$
5,470,641
$
5,226,382
LIABILITIES & SHAREHOLDERS'
EQUITY:
Interest-bearing Demand
$
1,067,744
$
5,349
1.99
%
$
1,066,878
$
5,291
1.97
%
$
938,246
$
4,087
1.73
%
Money Market
946,689
6,920
2.91
921,054
7,060
3.05
925,902
6,266
2.68
Savings
261,450
57
0.09
272,186
63
0.09
295,757
53
0.07
Time
1,625,154
18,510
4.53
1,561,633
18,275
4.66
1,405,927
15,403
4.35
Total Interest-bearing Deposits
3,901,037
30,836
3.14
3,821,751
30,689
3.19
3,565,832
25,809
2.87
Short term borrowings
37,960
509
5.33
169,754
2,296
5.38
149,218
2,506
6.66
Long-term debt
23,645
262
4.41
23,757
264
4.42
58,987
373
2.51
Subordinated debt and trust preferred
securities
45,815
425
3.69
45,969
423
3.66
46,425
429
3.67
Total Interest-bearing Liabilities
4,008,457
32,032
3.18
4,061,231
33,672
3.30
3,820,462
29,117
3.02
Noninterest-bearing Demand
786,843
775,935
836,733
Other Liabilities
62,503
68,175
31,968
Shareholders' Equity
623,670
565,300
537,219
Total Liabilities & Shareholders'
Equity
$
5,481,473
$
5,470,641
$
5,226,382
Net Interest Income
$
41,280
$
40,169
$
36,452
Taxable Equivalent Adjustment (1)
252
252
33
Net Interest Income (taxable equivalent
basis)
$
41,532
$
40,421
$
36,485
Total Yield on Earning Assets
5.67
%
5.73
%
5.35
%
Cost of funds
2.66
%
2.77
%
2.48
%
Rate on Supporting Liabilities
3.18
3.30
3.02
Average Interest Spread
2.49
2.43
2.32
Tax-Equivalent Net Interest Margin
3.21
3.13
2.98
(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)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Allowance for Credit Losses on
Loans:
Beginning balance
$
35,562
$
35,288
$
33,524
$
34,187
$
34,004
Loans Charged off
Commercial real estate
—
—
—
—
—
Commercial and industrial
(407
)
(356
)
(56
)
—
(19
)
Construction
—
—
—
—
—
Residential mortgage
—
—
(2
)
(28
)
(9
)
Consumer
(18
)
(8
)
(4
)
(22
)
(17
)
Total loans charged off
(425
)
(364
)
(62
)
(50
)
(45
)
Recoveries of loans previously charged
off
Commercial real estate
2
—
4
—
—
Commercial and industrial
1
—
—
—
—
Construction
—
—
—
—
—
Residential mortgage
7
2
29
—
—
Consumer
7
15
11
6
7
Total recoveries
17
17
44
6
7
Balance before provision
35,154
34,941
33,506
34,143
33,966
Provision for credit losses - loans
360
621
1,782
(619
)
221
Balance, end of quarter
$
35,514
$
35,562
$
35,288
$
33,524
$
34,187
Nonperforming Assets
Total nonaccrual loans
$
22,610
$
17,380
$
9,999
$
10,389
$
14,216
Foreclosed real estate
44
281
441
5,110
293
Total nonperforming assets
22,654
17,661
10,440
15,499
14,509
Accruing loans 90 days or more past
due
—
1
—
25
—
Total risk elements
$
22,654
$
17,662
$
10,440
$
15,524
$
14,509
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 Common
Share
(Dollars in thousands, except per share
data)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Shareholders' Equity
$
655,018
$
573,059
$
559,686
$
550,968
$
542,350
Less: Goodwill
128,160
128,160
127,031
127,031
127,031
Less: Core Deposit and Other
Intangibles
6,242
6,713
5,626
6,051
6,479
Tangible Equity
$
520,616
$
438,186
$
427,029
$
417,886
$
408,840
Common Shares Outstanding
19,355,797
16,620,174
16,580,595
16,565,637
16,573,707
Tangible Book Value per Share
$
26.90
$
26.36
$
25.75
$
25.23
$
24.67
Adjusted Earnings Per Common Share
Excluding Non-Recurring Income and Expenses
Three Months Ended
(Dollars in thousands, except per share
data)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Net Income Available to Common
Shareholders
$
13,232
$
12,301
$
11,771
$
12,133
$
12,098
Less: BOLI Death Benefit Income
615
4
487
1,460
—
Plus: Merger and Acquisition Expenses
436
109
—
—
—
Less: Tax Effect of Merger and Acquisition
Expenses
92
23
—
—
—
Net Income Excluding Non-Recurring Income
and Expenses
$
12,961
$
12,383
$
11,284
$
10,673
$
12,098
Weighted Average Shares Outstanding
18,338,224
16,612,657
16,576,283
16,567,902
16,574,199
Adjusted Earnings Per Common Share
Excluding Non-Recurring Income and Expenses
$
0.71
$
0.75
$
0.68
$
0.64
$
0.73
Return on Average Tangible Common
Equity
Three Months Ended
(Dollars in thousands)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Net income available to common
shareholders
$
13,232
$
12,301
$
11,771
$
12,133
$
12,098
Plus: Intangible amortization, net of
tax
372
363
336
338
388
13,604
12,664
12,107
12,471
12,486
Average shareholders' equity
623,670
565,300
553,675
546,001
537,219
Less: Average goodwill
128,160
127,773
127,031
127,031
127,031
Less: Average core deposit and other
intangibles
6,468
6,424
5,833
6,259
6,716
Average tangible shareholders' equity
$
489,042
$
431,103
$
420,811
$
412,711
$
403,472
Return on average tangible common
equity(1)
11.07
%
11.69
%
11.57
%
12.15
%
12.31
%
(1) Annualized ratio
Efficiency Ratio
Three Months Ended
(Dollars in thousands)
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Noninterest expense
$
30,913
$
29,959
$
28,224
$
28,520
$
28,389
Less: Merger and acquisition expenses
436
109
—
—
—
Less: Intangible amortization
471
460
425
428
491
Less: Loss (Gain) on sale or write-down of
foreclosed assets, net
73
(35
)
42
—
—
Efficiency ratio numerator
29,933
29,425
27,757
28,092
27,898
Net interest income
41,280
40,169
38,766
36,456
37,000
Noninterest income
6,149
5,178
5,329
5,837
5,117
Less: BOLI Death Benefit
615
4
487
1,460
—
Efficiency ratio denominator
$
46,814
$
45,343
$
43,608
$
40,833
$
42,117
Efficiency ratio
63.94
%
64.89
%
63.65
%
68.80
%
66.24
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250122068736/en/
Rory G. Ritrievi Chair, President & Chief Executive Officer
1-866-642-7736 Justin T. Webb Chief Financial Officer
1-866-642-7736
Mid Penn Bancorp (NASDAQ:MPB)
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