Mid Penn Bancorp · NASDAQ:MPB
Mid Penn Bancorp — Merger or Acquisition (January 2018)
13 slides from Mid Penn Bancorp's merger presentation, Jan 17, 2018
Slide 1: Mid Penn Bancorp Announces Acquisition of First Priority Financial Corp.
Mid Penn Bancorp, Inc. (NASDAQ: MPB) Announces Acquisition of First Priority Financial Corp. January 16, 2018 NASDAQ: MPB OTCQX: FPBK
Slide 2: Disclaimer Regarding Forward Looking Statements
Disclaimer Regarding Forward Looking Statements This presentation contains forward-looking statements that are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of h
Slide 3: Transaction Highlights
Transaction Highlights • Strategic entrance into demographically attractive southeastern Pennsylvania metro markets • Allows for the accelerated deployment of excess liquidity and capital from recently completed acquisition of Scottdale Bank & Trust Company • Creates ~$2.2 billion asset Pennsylvania
Slide 4: Transaction Summary
Transaction Summary • 100% stock consideration • Fixed exchange ratio equal to 0.3481 shares of MPB common stock per share of FPBK Transaction • Implied purchase price per share of $11.73¹ Consideration • Equity options to be cashed out worth ~$3.9 million² • Aggregate transaction value including op
Slide 5: Building a Leading Pennsylvania Community Banking Franchise
Building a Leading Pennsylvania Community Banking Franchise Mid Penn – A Proven Acquiror MPB becomes Pennsylvania’s 9th largest publicly traded depository institution under $10 billion in assets $10.0 #1 $9.0 $8.0 Pro Forma Assets #2 ~$2.2B¹ (Pro forma Rank: 9) #3 $7.0 $6.0 #4 Pro Forma Assets ($B)
Slide 6: Pro Forma Franchise Footprint
Pro Forma Franchise Footprint Total Assets ($M) $612 Total Gross Loans ($M) $498 Total Assets ($M) $268 Total Deposits ($M) $501 Total Gross Loans ($M) $66 Branch Locations 7 Total Deposits ($M) $219 Branch Locations 5 Total Assets ($M) $1,153 Total Gross Loans ($M) $877 Total Deposits ($M) $1,027 B
Slide 7: Overview of First Priority Financial Corp.
Overview of First Priority Financial Corp. Company Highlights Financial Highlights¹ • 10+ year banking franchise • Founded and led by Chairman and CEO, David E. Sparks Total Assets ($M) $612.0 ROAA 0.49% – Over 40 years of community banking experience in Pennsylvania markets – Founder, Chairman and
Slide 8: Opportunities in New, Affluent Markets and Major Business Centers
Opportunities in New, Affluent Markets and Major Business Centers FPBK Market Commentary Median Household Income ($000s) New core markets in the top 3 most affluent Pennsylvania counties MPB gains access to the top 3 most affluent ranked by median household income $97.8 PA counties ranked by median
Slide 9: Transaction Financial Impact
Transaction Financial Impact • Total Assets $2.2B • Total Gross Loans $1.6B Combined Balance • Total Deposits $1.8B Sheet¹ • Total Tangible Common Equity $157M • Total Market Capitalization $300M • 2018 EPS Accretion² (assumes 9/30/18 closing) 8% • 2019 EPS Accretion² (first full year) 19% Estimated
Slide 10: Summary of Transaction Merits
Summary of Transaction Merits ïEnhances MPB’s strategic positioning with the entrance into new, more demographically attractive and robust southeastern Pennsylvania metro markets – Entrance into Philadelphia–Camden–Wilmington, PA and Reading, PA metropolitan statistical areas – Access to the top 3 P
Slide 11: Significant Value Creation for Mid Penn Shareholders
Significant Value Creation for Mid Penn Shareholders Since 2010 Stock Price Performance (%)¹ 400.0% MPB +400.0% S&P 500 +121.5% NASDAQ BANK +128.1% 325.0% 250.0% 175.0% 100.0% 25.0% (50.0%) Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Tangi
Slide 12: Appendix
Appendix
Slide 13: Pro Forma Loan & Deposit Composition
Pro Forma Loan & Deposit Composition¹ Mid Penn² First Priority Combined Consumer Other Other 0.6% Consumer Consumer 0.4% 5.5% 7.3% 6.1% 1-4 Family 1-4 Family 13.5% 1-4 Family 17.4% 24.7% C&I C&I C&I ANS 19.7% 17.1% 18.8% LO $943.1M C&D $497.9M $1,441.0M C&D C&D 5.7% 6.5% 6.2% CRE & CRE & CRE & Multi
MID Penn Bancorp — Merger or Acquisition (January 2018) on 6ix