MID PENN BANCORP, INC. REPORTS THIRD QUARTER EARNINGS
MID PENN BANCORP INC (MPB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 PRESS RELEASE Mid Penn Bancorp, Inc. 2407 Park Drive Harrisburg, PA 17110 1-866-642-7736 CONTACTS Rory G. Ritrievi Chair, President & Chief Executive Officer Justin T. Webb Chief Financial Officer MID PENN BANCORP, INC. REPORTS THIRD QUARTER EARNINGS AND DECLARES 64T
How this was made
The 30-second read
Why it matters
The company’s commentary indicates results were kept in line through expense management and asset quality, while deposit growth was strong but loan growth and noninterest income were softer, alongside a sequential NIM decline.
Market read
Traders can update expectations for regional bank margin and growth durability based on MPB’s reported NIM compression, loan/deposit trends, and the declared dividend with specific record and payable dates.
What to watch
Expense savings from closing financial centers are expected to earn back in less than one year, which could partially offset margin pressure if execution holds.
Mid Penn Bancorp, Inc. reports third-quarter earnings of $21.6 million, or $0.84 per diluted common share, and declares its 64th consecutive quarterly dividend.
Net income available to common shareholders increased 18.2% from the third quarter of 2025, loans and deposits expanded, and credit quality was described as stable. Sequential net interest income, noninterest income, net interest margin, and return metrics declined, while nonperforming assets increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income available to common shareholders, three months ended September 30, 2026GAAP | $21.63M | (0.3)% | 18.2% |
| Net income excluding non-recurring income and expenses, three months ended September 30, 2026non-GAAP | $22.21M | – | – |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $ 0.85 | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $ 0.84 | – | – |
| Adjusted earnings per common share excluding non-recurring income and expenses, three months ended September 30, 2026non-GAAP | $ 0.88 | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $64.64M | – | – |
| Net interest income, nine months ended September 30, 2026GAAP | $185.2M | – | 28.3% |
| Total interest income, three months ended September 30, 2026GAAP | $97.58M | – | – |
| Total interest expense, three months ended September 30, 2026GAAP | $32.94M | – | – |
| Tax-equivalent net interest margin, three months ended September 30, 2026non-GAAP | 3.92% | (14) bps | 32 bps |
| Yield on interest-earning assets, three months ended September 30, 2026other | 5.89% | – | – |
| Average cost of deposits, three months ended September 30, 2026other | 2.11% | 4 bp | (26) bp |
| Cost of funds, three months ended September 30, 2026other | 2.14% | – | – |
| Net benefit for credit losses, three months ended September 30, 2026GAAP | $1.56M | – | – |
| Provision for credit losses on loans, nine months ended September 30, 2026GAAP | $887K | – | a decrease of $1.5 million |
| Net charge-offs, three months ended September 30, 2026GAAP | $78K | – | – |
| Net charge-offs to average loans, three months ended September 30, 2026other | 0.006 % | – | – |
| Noninterest income, three months ended September 30, 2026GAAP | $10.04M | (5.2)% | – |
| Noninterest income, nine months ended September 30, 2026GAAP | $30.2M | – | 54.5% |
| Noninterest expense, three months ended September 30, 2026GAAP | $48.59M | 1.7% | – |
| Noninterest expense, nine months ended September 30, 2026GAAP | $148.3M | – | 27.4% |
| Income before provision for income taxes, three months ended September 30, 2026GAAP | $27.65M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | $6.02M | – | – |
| Return on average assets, three months ended September 30, 2026GAAP | 1.21 % | – | – |
| Return on average equity, three months ended September 30, 2026GAAP | 9.48 | – | – |
| Return on average tangible common equity, three months ended September 30, 2026non-GAAP | 12.71 % | – | – |
| Core efficiency ratio, three months ended September 30, 2026non-GAAP | 60.57% | – | – |
| Book value per common share, September 30, 2026GAAP | $35.62 | – | – |
| Tangible book value per common share, September 30, 2026non-GAAP | $28.26 | – | – |
| Loans, net of unearned income, September 30, 2026GAAP | $5.64B | 1.4% (annualized) | 16.9% |
| Total deposits, September 30, 2026GAAP | $6.10B | 9.4% (annualized) | 14.1% |
| Total assets, September 30, 2026GAAP | $ 7,140,000 | – | – |
| Shareholders' equity, September 30, 2026GAAP | $902.6M | 0.1% | – |
| Allowance for credit losses on loans to total loans, September 30, 2026GAAP | 0.71% | – | – |
| Total nonperforming assets, September 30, 2026GAAP | $47M | – | – |
| Delinquency as a percentage of total loans, September 30, 2026GAAP | 0.73% | – | – |
| Tier 1 Capital to Average Assets, September 30, 2026other | 10.8 % | – | – |
| Common Tier 1 Capital to Risk Weighted Assets, September 30, 2026other | 13.1 | – | – |
| Total Capital to Risk Weighted Assets, September 30, 2026other | 13.8 | – | – |
Capital returns
- Quarterly cash dividend of $0.23 per common share, payable on November 13, 2026, to shareholders of record as of November 2, 2026.
- Mid Penn declared $5.8 million in dividends during the third quarter of 2026.
- The Board authorized an additional $50.0 million of common-stock repurchases through April 30, 2027.
- No shares were repurchased during the third quarter of 2026.
- As of September 30, 2026, Mid Penn repurchased a total of 595,891 shares of common stock at an average price of $24.82 per share under the Program.
What drove it
- The year-over-year increase in earnings was primarily attributable to the William Penn and 1st Colonial acquisitions.
- Total loans increased $815.3 million, or 16.9%, to $5.6 billion at September 30, 2026, compared to $4.8 billion at September 30, 2025.
- Excluding $597.5 million of loans acquired in the 1st Colonial acquisition, organic loan growth was $176.2 million, or 4.84% (annualized), from December 31, 2025.
- Total deposits increased $752.3 million, or 14.1%, to $6.1 billion from September 30, 2025. Excluding $747.1 million of deposits from the 1st Colonial acquisition, organic deposits increased $133.3 million, or 3.4% (annualized), from December 31, 2025.
- Nine-month noninterest income growth was primarily driven by a $7.6 million increase in fiduciary and wealth management income reflecting the Cumberland Advisors acquisition.
- The third-quarter benefit for credit losses was primarily driven by improved macroeconomic assumptions and an increase in loan prepayment speeds, partially offset by an increase in reserve on three individually analyzed C&I loans.
- Financial-center closures are expected to result in ongoing expense savings, with an anticipated earnback period of less than one year.
Concerns
- Net interest income declined to $ 64,640 from $ 65,280 in the second quarter of 2026, while tax-equivalent net interest margin declined to 3.92% from 4.06%.
- The margin decline reflected a $1.0 million decrease in purchase accounting accretion income, higher funding costs, and lower loan yields, partly offset by higher investment securities yields.
- Noninterest income declined $548 thousand, or 5.2%, from the second quarter of 2026, including a $406 thousand decrease in loan-level swap fees.
- Noninterest expense increased $823 thousand, or 1.7%, from the second quarter, including a $687 thousand increase in expenses related to branch optimization.
- Total nonperforming assets increased to $47.0 million from $36.8 million, driven by an $8.2 million increase in nonaccrual loans, including $7.0 million in commercial real estate loans, and a $1.9 million increase in foreclosed owner-occupied commercial real estate.
- Delinquency increased to 0.73% from 0.71% in the second quarter of 2026.
What to watch
- Management stated that it expects both loan growth and noninterest income performance to improve in the fourth quarter.
- The effect of lower purchase accounting accretion income and higher funding costs on net interest margin.
- The progress of financial-center closures and the expected expense savings.
- Nonaccrual commercial real estate loans, foreclosed assets, nonperforming assets, and delinquency.
- Deposit mix after a $251.8 million increase in interest-bearing transaction accounts was offset by declines in time deposits and noninterest-bearing deposits during the third quarter.
Balance sheet and cash flow
- Total cash and cash equivalents were $ 169,108 at September 30, 2026, compared to $ 86,646 at June 30, 2026 and $ 257,169 at September 30, 2025.
- Short-term borrowings were $ 68,000 at September 30, 2026, compared to $ 137,500 at June 30, 2026 and — at September 30, 2025.
- Long-term debt was $ 2,808 at September 30, 2026, compared to $ 2,902 at June 30, 2026 and $ 23,258 at September 30, 2025.
- Retained earnings were $254.0 million at September 30, 2026, compared to $238.2 million at June 30, 2026.
Analysis
Mid Penn reported a solid third quarter, with net income available to common shareholders of $21.6 million, or $0.84 per diluted common share, compared with $18.3 million, or $0.79 per diluted common share, in the third quarter of 2025. The company attributed the year-over-year earnings increase primarily to the William Penn and 1st Colonial acquisitions. On a sequential basis, earnings were effectively flat, declining $66 thousand, or 0.3%, from the second quarter of 2026. Adjusted earnings per common share excluding non-recurring income and expenses were $0.88, compared with $0.87 in the preceding quarter and $0.77 a year earlier.
Balance-sheet growth remained strong. Total loans increased $815.3 million, or 16.9%, to $5.6 billion from September 30, 2025, and total deposits increased $752.3 million, or 14.1%, to $6.1 billion. During the third quarter, deposits grew $141.8 million, with the increase in interest-bearing transaction accounts partly offset by reductions in time deposits and noninterest-bearing deposits. Management reported organic loan growth of $176.2 million, or 4.84% annualized, and organic deposit growth of $133.3 million, or 3.4% annualized, from December 31, 2025, excluding acquired balances.
Margin performance weakened sequentially. Net interest income was $64.6 million, below $65.3 million in the second quarter, while tax-equivalent net interest margin declined 14 basis points to 3.92%. Mid Penn cited reduced purchase accounting accretion income, lower loan yields, and higher funding costs as the principal reasons, partly offset by higher investment-securities yields. Noninterest income also declined 5.2% sequentially to $10.0 million, driven in part by lower loan-level swap fees. Noninterest expense rose 1.7% to $48.6 million, including branch-optimization costs and a write-down on other real estate owned property. The non-GAAP core efficiency ratio increased to 60.57% from 59.82% in the second quarter.
Credit quality was characterized as stable, supported by minimal net charge-offs, but the reported asset-quality measures require attention. Total nonperforming assets increased to $47.0 million from $36.8 million in the prior quarter, reflecting higher nonaccrual loans and foreclosed owner-occupied commercial real estate. Delinquency increased to 0.73% from 0.71%, while the allowance for credit losses on loans declined to 0.71% of loans from 0.74%. The quarter included a $1.6 million benefit for credit losses, principally associated with improved macroeconomic assumptions and faster loan prepayment speeds.
Capital returns continued through a $0.23 per-share quarterly cash dividend, which the company described as its 64th consecutive quarterly dividend. No shares were repurchased during the quarter despite the authorization for an additional $50.0 million through April 30, 2027. Management expects loan growth and noninterest income performance to improve in the fourth quarter, while branch closures are expected to generate ongoing expense savings with an anticipated earnback period of less than one year.
Management, verbatim
The third quarter of 2026 was a solid quarter for Mid Penn. Strong deposit growth was partially offset by softer-than-expected loan growth and noninterest income generation. Effective expense management and continued strong asset quality helped keep overall results in line with our expectations.
Rory G. Ritrievi, Chair, President and CEO
As we enter the fourth quarter, we remain confident that both loan growth and noninterest income performance will improve, positioning us well through the end of 2026 and for continued success in 2027.
Rory G. Ritrievi, Chair, President and CEO
Not in the filing
stated, not guessed- Forward quantitative guidance for revenue, gross margin, operating expenses, tax rate, earnings, loan growth, deposit growth, net interest margin, or other metrics was not provided.
- Previous-period outlook was not provided.
- Total revenue was not reported.
- Gross margin was not reported.
- Operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- A tax rate was not reported.
- Segment revenue was not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Mid Penn Bancorp furnished its Q3 2026 results and dividend declaration via SEC Form 8-K, including acquisition-related drivers and efficiency actions.
Ticker impact
Mid Penn Bancorp reported third-quarter net income of $21.6M, EPS of $0.85 basic, and declared a $0.23 quarterly dividend payable Nov. 13.
Likely modest support as investors price in steady profitability and the dividend, offset by caution from the sequential NIM decline and softer loan growth.
The filing provides the quarter’s earnings/EPS, sequential NIM change (down 14 bps), loan and deposit growth, and a specific dividend amount and record/payable dates.
Market effects
Regional banks may see read-across on deposit growth and NIM sensitivity to funding costs, given MPB’s sequential NIM compression.
Potential sentiment spillover to other Pennsylvania and Mid-Atlantic community banks via acquisition-driven growth and efficiency actions.
Limited direct global relevance; primarily affects US regional bank positioning and rate-sensitive bank factor models.
Counterpoint
The sequential NIM decline and “softer-than-expected” loan growth could outweigh the headline EPS increase, especially if investors focus on margin durability rather than acquisition effects.
Key entities
- issuerMid Penn Bancorp, Inc.
NASDAQ-listed parent company reporting Q3 2026 earnings and declaring a quarterly cash dividend.
- subsidiaryMid Penn Bank
Bank subsidiary referenced as part of the earnings and operations reporting structure.
- subsidiaryMPB Financial Services, LLC
Financial services subsidiary referenced in the earnings release structure.
