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 September 30, 2024 of $12.3
million, or $0.74 per diluted common share, compared to net income
of $9.2 million, or $0.56 per diluted common share, for the third
quarter of 2023 and a consensus analyst estimate of $0.72 per
diluted common share for the third quarter of 2024.
Key Highlights of the Third Quarter of 2024:
- Net income available to common shareholders increased 33.2% to
$12.3 million, or $0.74 per diluted common share, for the third
quarter of 2024, compared to net income of $9.2 million, or $0.56
per diluted common share, for the third quarter of 2023. Net income
for the nine months ended September 30, 2024 increased 43.1% to
$36.2 million, or $2.18 per diluted common share, compared to $25.3
million for the nine months ended September 30, 2023, or $1.56 per
diluted common share.
- Book value per common share improved to $34.48 for the quarter
ended September 30, 2024, compared to $33.76 and $31.89 for the
quarters ended June 30, 2024 and September 30, 2023, respectively.
Tangible book value per common share (1) improved to $26.36 for the
quarter ended September 30, 2024, compared to $25.75 and $23.81 for
the periods ended June 30, 2024 and September 30, 2023,
respectively.
- Net interest margin increased to 3.13% for the quarter ended
September 30, 2024, compared to 3.12% for the second quarter of
2024. Cost of funds increased to 2.77% for the quarter ended
September 30, 2024, compared to 2.74% for the second quarter of
2024, as the Bank continued to experience strong core deposit
growth.
- Deposits increased $209.8 million, or 18.6% (annualized),
during the third quarter of 2024, compared to $117.9 million, or
10.5% (annualized), during the second quarter of 2024. This
increase was driven by a $93.8 million increase in interest-bearing
accounts and a $90.0 million increase in time deposits.
- Loan growth for the third quarter of 2024 was $67.1 million, or
6.2% (annualized), as the Bank continued to execute on its
restrained growth strategy in 2024. Total loans increased $286.0
million, or 6.9%, compared to the third quarter of 2023.
- On July 31, 2024, Mid Penn completed the acquisition of an
insurance business and related accounts of a full-service employee
benefits firm that serves mid to large employers across central and
eastern Pennsylvania, northern Maryland, and northern Virginia, for
a purchase price of $2.0 million. The acquired entity contributed
earnings for the quarter ended September 30, 2024 of $69 thousand
and pre-tax expenses related to the acquisition were $109 thousand.
Mid Penn has recognized total goodwill of $1.1 million as a result
of this acquisition.
- The Board of Directors declared a cash dividend of $0.20 per
common share, payable November 25, 2024, to shareholders of record
as of November 8, 2024.
(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:
"On behalf of the hardworking employees of Mid Penn and its
Board of Directors, I am very pleased to report that our third
quarter earnings, detailed below, were not only better than what
the analysts and we had expected, but were also based on continued
fidelity to the strategies we outlined late last year in this
shareholder communication.
Principally, those strategies included: restrained loan growth;
robust core deposit growth; strong asset quality; restraint on
operating expenses; and building on tangible book value.
With our third quarter loan and deposit growth through nine
months, we are now at 6.2% annualized loan growth and 18.6%
annualized deposit growth, which is right in line with the type of
performance we targeted for the third quarter of 2024. Through nine
months, we have experienced less than 0.01% annualized net charge
offs, demonstrating strong performance in asset quality. With 7.2%
annualized revenue growth within the quarter and 2.5% annualized
expense growth, annualized operating leverage for the third quarter
was 4.7%, demonstrating the benefit of an ongoing restraint on
expenses.
Most importantly, we have seen a 10.7% improvement in tangible
book value year over year and 6.9% growth since the end of
2023.
With another solid quarter now behind us, we are also pleased to
announce that the Board has authorized a quarterly cash dividend of
$0.20 per share of common stock, which was declared at its meeting
on October 23, 2024, payable on November 25, 2024, to shareholders
of record as of November 8, 2024."
Net Interest Income
For the three months ended September 30, 2024, net interest
income was $40.2 million compared to net interest income of $38.8
million for the three months ended June 30, 2024, and $37.5 million
for the three months ended September 30, 2023. The tax-equivalent
net interest margin for the three months ended September 30, 2024
was 3.13% compared to 3.12% and 3.16% for the second quarter of
2024 and third quarter of 2023, respectively, representing a 1
basis point ("bp") increase from the second quarter of 2024, and a
3 bp decrease compared to the same period in 2023.
The yield on interest-earning assets increased to 5.73% for the
quarter ended September 30, 2024, from 5.69% for the three months
ended June 30, 2024, and 5.35% for the three months ended September
30, 2023. These increases were due to assets continuing to reprice
at higher rates during the third quarter of 2024, continued
discipline on new loan pricing, and an increase in the average
balance of Fed Funds Sold.
For the nine months ended September 30, 2024, net interest
income increased 4.9% to $115.4 million compared to net interest
income of $110.0 million for the same period of 2023. The increase
was primarily due to a $40.7 million increase in interest income on
loans, offset by a $32.0 million increase in interest expense on
deposits compared to the same period of 2023.
Average Balances
Average loans increased $52.6 million to $4.4 billion for the
quarter ended September 30, 2024, compared to $4.4 billion for the
quarter ended June 30, 2024, and $4.1 billion for the quarter ended
September 30, 2023.
Average deposits were $4.6 billion for the third quarter of
2024, reflecting an increase of $146.0 million, or 3.3%, compared
to total average deposits of $4.5 billion in the second quarter of
2024, and an increase of $236.6 million, or 5.4%, compared to total
average deposits of $4.4 billion for the third 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 2.66% for the third quarter of 2024, representing a 12 bp
increase and a 48 bp increase from the second quarter of 2024 and
the third 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, the Bank also
maintains interest rate swaps to hedge the cash flows associated
with existing brokered CDs to mitigate the impact of rising deposit
costs. Cost of funds increased to 2.77%, compared to 2.74% for the
second quarter of 2024, as the Bank continued to experience strong
deposit growth.
Total deposits increased $209.8 million to $4.7 billion for the
quarter ended September 30, 2024, or 18.6% (annualized), compared
to $4.5 billion and $4.4 billion at June 30, 2024 and September 30,
2023, respectively. The increase during the third quarter of 2024
was primarily related to a $93.8 million increase in interest
bearing deposits, and an increase of $90.0 million in time
deposits. Time deposits represented 34.2% of total deposits at June
30, 2024, compared to 34.5% at September 30, 2024. The balance of
non-interest-bearing deposits increased $26.0 million from the
second quarter of 2024, representing approximately 16.8% of total
deposits at September 30, 2024, compared to 17.0% at June 30, 2024,
and 18.3% at September 30, 2023. The average duration of the
non-hedged time deposit portfolio was 12 months at September 30,
2024.
Asset Quality
The total provision for credit losses, including provision for
credit losses on off-balance sheet credit exposures, was $516
thousand for the three months ended September 30, 2024, a decrease
of $1.1 million compared to the provision for credit losses of $1.6
million for the three months ended June 30, 2024, and a $1.6
million decrease compared to the provision for credit losses of
$2.1 million for the three months ended September 30, 2023. This
decrease was driven by a combination of a decreased reserve on
individually evaluated loans and decreases in loss rates across
multiple segments of the portfolio. Net charge-offs for the three
months ended September 30, 2024, were $347 thousand or less than
0.008% of total loans.
The provision for credit losses on loans was $1.8 million for
the nine months ended September 30, 2024, a decrease of $1.3
million compared to the provision for credit losses of $3.1 million
for the nine months ended September 30, 2023. This decrease for the
nine months ended September 30, 2024, is primarily due to a
decrease in loss factors across all portfolios. The benefit for
credit losses on off-balance sheet credit exposures was $601
thousand for the nine months ended September 30, 2024. Net
charge-offs for the nine months ended September 30, 2024, were $409
thousand or 0.009% of total loans.
Allowance for credit losses - loans was 0.80% of loans, net of
unearned income at September 30, 2024, compared to 0.81% and 0.82%
at June 30, 2024 and September 30, 2023, respectively.
Total nonperforming assets were $17.7 million at September 30,
2024, compared to nonperforming assets of $10.4 million and $14.4
million at June 30, 2024 and September 30, 2023, respectively. The
increase during the third quarter of 2024 primarily related to the
addition of one commercial property with a balance of $7.7 million,
being placed on nonaccrual in the third quarter of 2024.
Delinquency, measured as loans past due 30 days or more, as a
percentage of total loans was 0.61% at September 30, 2024, compared
to .57% and .46% as of June 30, 2024, and September 30, 2023,
respectively.
Capital
Shareholders’ equity increased $30.7 million, or 5.7%, from
$542.4 million as of December 31, 2023 to $573.1 million as of
September 30, 2024. Retained earnings increased $9.0 million, or
5.5%, from $163.3 million as of June 30, 2024 to $172.2 million as
of September 30, 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 September 30, 2024. Additionally,
Mid Penn declared $3.3 million in dividends during the third
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
nine months ended September 30, 2024, Mid Penn repurchased 15,500
shares of common stock at an average price of $20.81. As of
September 30, 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 September 30, 2024.
Noninterest Income
For the three months ended September 30, 2024, noninterest
income totaled $5.2 million, a decrease of $151 thousand, or 2.8%,
compared to noninterest income of $5.3 million for the second
quarter of 2024. The decrease is primarily due to a $416 thousand
decrease in other miscellaneous noninterest income, driven by a
$482 thousand decrease in Bank owned life insurance benefits
received, partially offset by a $140 thousand increase in mortgage
banking income, a $76 thousand increase in the gain on sales of SBA
loans, and a $74 thousand increase in income from Fiduciary
activities.
For the nine months ended September 30, 2024, noninterest income
totaled $16.3 million, an increase of $1.5 million, or 9.8%,
compared to noninterest income of $14.9 million for the nine months
ended September 30, 2023. The increase in noninterest income is
primarily driven by a $1.0 million increase in other miscellaneous
noninterest income, driven by increases in Bank owned life
insurance benefits received, and a $767 thousand increase in
Mortgage Banking income.
Noninterest Expense
Total noninterest expense increased $1.7 million to $30.0
million in the third quarter of 2024 from $28.2 million in the
second quarter of 2024. The increase was driven by a $924 thousand
increase in legal and professional fees, a $700 thousand increase
in shares tax, and a $623 thousand increase in salaries and
employee benefits, partially offset by a $624 thousand decrease in
other miscellaneous noninterest expense.
For the nine months ended September 30, 2024, noninterest
expense totaled $86.7 million, a decrease of $3.5 million, or 3.9%,
compared to noninterest expense of $90.2 million for the nine
months ended September 30, 2023. The decrease was primarily driven
by $7.9 million of Brunswick acquisition costs in 2023, partially
offset by a $3.0 million increase in salaries and benefits expense,
and a $1.0 million increase in legal and professional fees.
The efficiency ratio(1) was 64.9% in the third quarter of 2024,
compared to 63.7% in the second quarter of 2024, and 66.3% in the
third quarter of 2023. The change in the efficiency ratio during
the third quarter of 2024 compared to the second quarter of 2024
was the result of higher net interest income and slightly higher
noninterest expense, partially offset by lower noninterest income
driven by a decrease in Bank owned life insurance benefits received
. 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 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)
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Ending Balances:
Investment securities
$
642,291
$
601,683
$
615,061
$
623,121
$
620,636
Loans, net of unearned income
4,431,704
4,364,561
4,317,449
4,252,792
4,145,657
Total assets
5,527,025
5,391,749
5,330,379
5,290,792
5,214,718
Total deposits
4,706,764
4,497,011
4,379,105
4,346,212
4,380,380
Shareholders' equity
573,059
559,686
550,968
542,350
528,711
Average Balances:
Investment securities
610,586
608,173
615,687
606,946
619,071
Loans, net of unearned income
4,405,969
4,353,360
4,293,828
4,201,092
4,053,514
Total assets
5,470,641
5,378,897
5,319,680
5,226,382
5,106,103
Total deposits
4,597,686
4,451,678
4,312,094
4,402,565
4,361,067
Shareholders' equity
565,300
553,675
546,001
537,219
529,067
Three Months Ended
Income Statement:
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Net interest income
$
40,169
$
38,766
$
36,456
$
37,000
$
37,480
Provision for credit losses
516
1,604
(937
)
(664
)
2,087
Noninterest income
5,178
5,329
5,837
5,117
5,346
Noninterest expense
29,959
28,224
28,520
28,389
29,229
Income before provision for income
taxes
14,872
14,267
14,710
14,392
11,510
Provision for income taxes
2,571
2,496
2,577
2,294
2,274
Net income available to shareholders
12,301
11,771
12,133
12,098
9,236
Net income excluding non-recurring income
and expenses (1)
12,383
11,284
10,673
12,098
9,514
Per Share:
Basic earnings per common share
$
0.74
$
0.71
$
0.73
$
0.73
$
0.56
Diluted earnings per common share
0.74
0.71
0.73
0.73
0.56
Cash dividends declared
0.20
0.20
0.20
0.20
0.20
Book value per common share
34.48
33.76
33.26
32.72
31.89
Tangible book value per common share
(1)
26.36
25.75
25.23
24.67
23.81
Asset Quality:
Net charge-offs (recoveries) to average
loans (3)
0.031
%
0.002
%
0.004
%
0.004
%
0.001
%
Non-performing loans to total loans
0.39
0.23
0.24
0.33
0.32
Non-performing asset to total loans and
other real estate
0.40
0.24
0.36
0.34
0.35
Non-performing asset to total assets
0.32
0.19
0.29
0.27
0.28
ACL on loans to total loans
0.80
0.81
0.78
0.80
0.82
ACL on loans to nonperforming loans
204.61
352.92
322.69
240.48
252.67
Profitability:
Return on average assets (3)
0.89
%
0.88
%
0.92
%
0.92
%
0.72
%
Return on average equity (3)
8.66
8.55
8.94
8.93
6.93
Return on average tangible common equity
(1) (3)
11.69
11.57
12.15
12.31
9.69
Tax-equivalent net interest margin
3.13
3.12
2.98
3.02
3.16
Efficiency ratio (1)
64.89
63.65
68.80
66.42
66.34
Capital Ratios:
Tier 1 Capital (to Average Assets) (2)
8.4
%
8.4
%
8.3
%
8.3
%
8.4
%
Common Tier 1 Capital (to Risk Weighted
Assets) (2)
10.1
9.9
9.6
9.7
9.7
Tier 1 Capital (to Risk Weighted Assets)
(2)
10.1
9.9
9.6
9.7
9.7
Total Capital (to Risk Weighted Assets)
(2)
11.9
11.8
11.4
11.6
11.7
(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, 2024 are preliminary and prior periods are actual.
(3)
Annualized ratio
CONSOLIDATED BALANCE SHEETS
(Unaudited):
(In thousands, except share data)
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
ASSETS
Cash and due from banks
$
57,518
$
36,948
$
33,362
$
45,435
$
52,509
Interest-bearing balances with other
financial institutions
19,323
25,585
31,801
34,668
12,739
Federal funds sold
67,554
43,193
2,922
16,660
52,851
Total cash and cash equivalents
144,395
105,726
68,085
96,763
118,099
Investment Securities:
Held to maturity, at amortized cost
386,618
393,320
396,998
399,128
401,561
Available for sale, at fair value
255,227
207,936
217,632
223,555
218,662
Equity securities available for sale, at
fair value
446
427
431
438
413
Loans held for sale
7,919
8,420
4,581
3,855
4,270
Loans, net of unearned income
4,431,704
4,364,561
4,317,449
4,252,792
4,145,657
Less: Allowance for credit losses
(35,562
)
(35,288
)
(33,524
)
(34,187
)
(34,004
)
Net loans
4,396,142
4,329,273
4,283,925
4,218,605
4,111,653
Premises and equipment, net
33,765
34,344
36,068
36,909
38,102
Operating lease right of use asset
7,390
7,925
8,414
8,953
8,693
Finance lease right of use asset
2,593
2,638
2,683
2,727
2,773
Cash surrender value of life insurance
53,135
53,298
52,997
54,497
54,209
Restricted investment in bank stocks
10,589
13,930
17,446
16,768
13,554
Accrued interest receivable
27,286
27,381
26,975
25,820
24,230
Deferred income taxes
23,197
24,520
22,894
24,146
25,110
Goodwill
128,160
127,031
127,031
127,031
127,031
Core deposit and other intangibles,
net
6,713
5,626
6,051
6,479
6,970
Foreclosed assets held for sale
281
441
5,110
293
905
Other assets
43,169
49,513
53,058
44,825
58,483
Total Assets
$
5,527,025
$
5,391,749
$
5,330,379
$
5,290,792
$
5,214,718
LIABILITIES & SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand
$
791,980
$
766,014
$
807,861
$
801,312
$
803,550
Interest-bearing transaction accounts
2,288,783
2,194,948
2,082,846
2,086,450
2,217,885
Time
1,626,001
1,536,049
1,488,398
1,458,450
1,358,945
Total Deposits
4,706,764
4,497,011
4,379,105
4,346,212
4,380,380
Short-term borrowings
114,097
200,000
271,849
241,532
139,000
Long-term debt
23,716
23,827
23,941
59,003
58,991
Subordinated debt and trust preferred
securities
45,894
46,047
46,201
46,354
46,501
Operating lease liability
7,778
8,344
8,683
9,285
9,097
Accrued interest payable
18,995
18,139
16,330
14,257
14,657
Other liabilities
36,722
38,695
33,302
31,799
37,381
Total Liabilities
4,953,966
4,832,063
4,779,411
4,748,442
4,686,007
Shareholders' Equity:
Common stock, par value $1.00 per share;
40.0 million shares authorized
17,061
17,051
17,006
16,999
16,993
Additional paid-in capital
406,922
406,544
406,150
405,725
405,341
Retained earnings
172,234
163,256
154,801
145,982
137,199
Accumulated other comprehensive loss
(13,116
)
(17,123
)
(16,947
)
(16,637
)
(21,362
)
Treasury stock
(10,042
)
(10,042
)
(10,042
)
(9,719
)
(9,460
)
Total Shareholders’ Equity
573,059
559,686
550,968
542,350
528,711
Total Liabilities and Shareholders'
Equity
$
5,527,025
$
5,391,749
$
5,330,379
$
5,290,792
$
5,214,718
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited):
Three Months Ended
(Dollars in thousands, except per share
data)
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2023
Dec. 31, 2023
Sep. 30, 2023
INTEREST INCOME
Loans, including fees
$
68,080
$
66,096
$
63,236
$
61,309
$
58,792
Investment securities:
Taxable
4,136
4,143
4,040
4,063
4,106
Tax-exempt
359
371
376
378
382
Other interest-bearing balances
223
347
403
139
86
Federal funds sold
1,043
282
136
228
51
Total Interest Income
73,841
71,239
68,191
66,117
63,417
INTEREST EXPENSE
Deposits
30,689
28,463
26,332
25,808
23,559
Short-term borrowings
2,296
3,324
4,446
2,506
1,584
Long-term and subordinated debt
687
686
957
803
794
Total Interest Expense
33,672
32,473
31,735
29,117
25,937
Net Interest Income
40,169
38,766
36,456
37,000
37,480
PROVISION FOR CREDIT LOSSES
516
1,604
(937
)
(664
)
2,087
Net Interest Income After Provision for
Credit Losses
39,653
37,162
37,393
37,664
35,393
NONINTEREST INCOME
Fiduciary and wealth management
1,204
1,129
1,132
1,323
1,296
ATM debit card interchange
962
973
945
979
986
Service charges on deposits
549
539
509
485
509
Mortgage banking
768
628
424
300
382
Mortgage hedging
(1
)
—
—
109
67
Net gain on sales of SBA loans
151
74
107
358
85
Earnings from cash surrender value of life
insurance
276
301
284
288
278
Other
1,269
1,685
2,436
1,275
1,743
Total Noninterest Income
5,178
5,329
5,837
5,117
5,346
NONINTEREST EXPENSE
Salaries and employee benefits
16,156
15,533
15,462
15,215
15,259
Software licensing and utilization
2,366
2,208
2,120
1,826
2,085
Occupancy, net
1,815
1,861
1,982
1,952
1,761
Equipment
1,206
1,287
1,222
1,330
1,292
Shares tax
824
124
997
255
808
Legal and professional fees
1,613
689
998
653
890
ATM/card processing
606
510
534
442
641
Intangible amortization
460
425
428
491
484
FDIC Assessment
1,150
1,232
945
730
1,746
(Gain) loss on sale or write-down of
foreclosed assets, net
(35
)
42
—
—
(18
)
Merger and acquisition
109
—
—
—
352
Other
3,689
4,313
3,832
5,495
3,929
Total Noninterest Expense
29,959
28,224
28,520
28,389
29,229
INCOME BEFORE PROVISION FOR INCOME
TAXES
14,872
14,267
14,710
14,392
11,510
Provision for income taxes
2,571
2,496
2,577
2,294
2,274
NET INCOME AVAILABLE TO COMMON
SHAREHOLDERS
$
12,301
$
11,771
$
12,133
$
12,098
$
9,236
PER COMMON SHARE DATA:
Basic Earnings Per Common Share
$
0.74
$
0.71
$
0.73
$
0.73
$
0.56
Diluted Earnings Per Common Share
$
0.74
$
0.71
$
0.73
$
0.73
$
0.56
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
September 30, 2024
June 30, 2024
September 30, 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
$
25,123
$
223
3.53
%
$
35,618
$
347
3.92
%
$
12,804
$
86
2.66
%
Investment Securities:
Taxable
537,257
3,682
2.73
533,748
3,701
2.79
541,403
3,846
2.82
Tax-Exempt
73,329
359
1.95
74,425
371
2.00
77,668
382
1.95
Total Securities
610,586
4,041
2.63
608,173
4,072
2.69
619,071
4,228
2.71
Federal Funds Sold
75,683
1,043
5.48
19,432
282
5.84
8,260
51
2.45
Loans, Net of Unearned Income
4,405,969
68,080
6.15
4,353,360
66,096
6.11
4,053,514
58,792
5.75
Restricted Investment in Bank Stocks
13,252
454
13.63
16,066
442
11.07
10,968
260
9.40
Total Earning Assets
5,130,613
73,841
5.73
5,032,649
71,239
5.69
4,704,617
63,417
5.35
Cash and Due from Banks
44,052
39,053
77,122
Other Assets
295,976
307,195
324,364
Total Assets
$
5,470,641
$
5,378,897
$
5,106,103
LIABILITIES & SHAREHOLDERS'
EQUITY:
Interest-bearing Demand
$
1,066,878
$
5,291
1.97
%
$
972,852
$
4,477
1.85
%
$
960,052
$
3,899
1.61
%
Money Market
921,054
7,060
3.05
908,807
6,632
2.94
929,036
5,969
2.55
Savings
272,186
63
0.09
281,560
52
0.07
308,732
60
0.08
Time
1,561,633
18,275
4.66
1,510,079
17,302
4.61
1,308,945
13,631
4.13
Total Interest-bearing Deposits
3,821,751
30,689
3.19
3,673,298
28,463
3.12
3,506,765
23,559
2.67
Short term borrowings
169,754
2,296
5.38
241,713
3,324
5.53
64,282
1,584
9.78
Long-term debt
23,757
264
4.42
23,870
262
4.41
76,515
333
1.73
Subordinated debt and trust preferred
securities
45,969
423
3.66
46,122
424
3.70
46,377
461
3.94
Total Interest-bearing Liabilities
4,061,231
33,672
3.30
3,985,003
32,473
3.28
3,693,939
25,937
2.79
Noninterest-bearing Demand
775,935
778,380
854,302
Other Liabilities
68,175
61,839
28,795
Shareholders' Equity
565,300
553,675
529,067
Total Liabilities & Shareholders'
Equity
$
5,470,641
$
5,378,897
$
5,106,103
Net Interest Income
$
40,169
$
38,766
$
37,480
Taxable Equivalent Adjustment (1)
252
253
33
Net Interest Income (taxable equivalent
basis)
$
40,421
$
39,019
$
37,513
Total Yield on Earning Assets
5.73
%
5.69
%
5.35
%
Rate on Supporting Liabilities
3.30
3.28
2.79
Average Interest Spread
2.43
2.42
2.56
Tax-Equivalent Net Interest Margin
3.13
3.12
3.16
(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, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Allowance for Credit Losses on
Loans:
Beginning balance
$
35,288
$
33,524
$
34,187
$
34,004
$
32,588
Loans Charged off
Commercial real estate
—
—
—
—
—
Commercial and industrial
(356
)
(56
)
—
(19
)
—
Construction
—
—
—
—
—
Residential mortgage
—
(2
)
(28
)
(9
)
—
Consumer
(8
)
(4
)
(22
)
(17
)
(32
)
Total loans charged off
(364
)
(62
)
(50
)
(45
)
(32
)
Recoveries of loans previously charged
off
Commercial real estate
—
4
—
—
—
Commercial and industrial
—
—
—
—
—
Construction
—
—
—
—
—
Residential mortgage
2
29
—
—
7
Consumer
15
11
6
7
14
Total recoveries
17
44
6
7
21
Balance before provision
34,941
33,506
34,143
33,966
32,577
Provision for credit losses - loans
621
1,782
(619
)
221
1,427
Balance, end of quarter
$
35,562
$
35,288
$
33,524
$
34,187
$
34,004
Nonperforming Assets
Total nonaccrual loans
17,380
9,999
10,389
14,216
13,458
Foreclosed real estate
281
441
5,110
293
905
Total nonperforming assets
17,661
10,440
15,499
14,509
14,363
Accruing loans 90 days or more past
due
1
—
25
—
12
Total risk elements
$
17,662
$
10,440
$
15,524
$
14,509
$
14,375
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)
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Shareholders' Equity
$
573,059
$
559,686
$
550,968
$
542,350
$
528,711
Less: Goodwill
128,160
127,031
127,031
127,031
127,031
Less: Core Deposit and Other
Intangibles
6,713
5,626
6,051
6,479
6,970
Tangible Equity
$
438,186
$
427,029
$
417,886
$
408,840
$
394,710
Common Shares Outstanding
16,620,174
16,580,595
16,565,637
16,573,707
16,580,347
Tangible Book Value per Share
$
26.36
$
25.75
$
25.23
$
24.67
$
23.81
Adjusted Earnings Per Common Share
Excluding Non-Recurring Income and Expenses
Three Months Ended
(Dollars in thousands, except per share
data)
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Net Income Available to Common
Shareholders
$
12,301
$
11,771
$
12,133
$
12,098
$
9,236
Less: BOLI Death Benefit Income
4
487
1,460
—
—
Plus: Merger and Acquisition Expenses
109
—
—
—
352
Less: Tax Effect of Merger and Acquisition
Expenses
23
—
—
—
74
Net Income Excluding Non-Recurring Income
and Expenses
$
12,383
$
11,284
$
10,673
$
12,098
$
9,514
Weighted Average Shares Outstanding
16,612,657
16,576,283
16,567,902
16,574,199
16,571,825
Adjusted Earnings Per Common Share
Excluding Non-Recurring Income and Expenses
$
0.75
$
0.68
$
0.64
$
0.73
$
0.57
Return on Average Tangible Common
Equity
Three Months Ended
(Dollars in thousands)
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Net income available to common
shareholders
$
12,301
$
11,771
$
12,133
$
12,098
$
9,236
Plus: Intangible amortization, net of
tax
363
336
338
388
382
$
12,664
$
12,107
$
12,471
$
12,486
$
9,618
Average shareholders' equity
$
565,300
$
553,675
$
546,001
$
537,219
$
529,067
Less: Average goodwill
127,773
127,031
127,031
127,031
127,031
Less: Average core deposit and other
intangibles
6,424
5,833
6,259
6,716
7,210
Average tangible shareholders' equity
$
431,103
$
420,811
$
412,711
$
403,472
$
394,826
Return on average tangible common
equity(1)
11.69
%
11.57
%
12.15
%
12.31
%
9.69
%
(1)
Annualized ratio
Efficiency Ratio
Three Months Ended
(Dollars in thousands)
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Noninterest expense
$
29,959
$
28,224
$
28,520
$
28,389
$
29,229
Less: Merger and acquisition expenses
109
—
—
—
352
Less: Intangible amortization
460
425
428
491
484
Less: Loss (Gain) on sale or write-down of
foreclosed assets, net
(35
)
42
—
—
(18
)
Efficiency ratio numerator
$
29,425
$
27,757
$
28,092
$
27,898
$
28,411
Net interest income
40,169
38,766
36,456
37,000
37,480
Noninterest income
5,178
5,329
5,837
5,117
5,346
Less: BOLI Death Benefit
4
487
1,460
—
—
Efficiency ratio denominator
$
45,343
$
43,608
$
40,833
$
42,117
$
42,826
Efficiency ratio
64.89
%
63.65
%
68.80
%
66.24
%
66.34
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241023692355/en/
Mid Penn Bancorp, Inc. 1-866-642-7736
Rory G. Ritrievi Chair, President & Chief Executive
Officer
Justin T. Webb Chief Financial Officer
Mid Penn Bancorp (NASDAQ:MPB)
Historical Stock Chart
From Jan 2025 to Feb 2025
Mid Penn Bancorp (NASDAQ:MPB)
Historical Stock Chart
From Feb 2024 to Feb 2025
