Mid Penn Bancorp · NASDAQ:MPB
Mid Penn Bancorp — Virtual Bank Conference (December 2024)
27 slides from Mid Penn Bancorp's conference presentation, Dec 11, 2024
Slide 1: Virtual Bank Conference Presentation
1 Pro Forma 09 December 11, 2024 Virtual Bank Conference Presentation +
Slide 2: Cautionary Note Regarding Forward-Looking Statements
2 Pro Forma Cautionary Note Regarding Forward-Looking Statements Statements included in this presentation which are not historical in nature or do not relate to current facts are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Sect
Slide 3: Non-GAAP Financial Measures and Additional Information
3 Pro Forma Non-GAAP Financial Measures This presentation includes certain financial measures derived from consolidated financial data but not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes that these non-GAAP measures, when taken together w
Slide 4: Overview of Recent Announcements
4 Pro Forma 386% 370% 330% MPB 2024 Q3 Pro Forma MPB / WMPN Pro Forma MPB / WMPN + Capital Raise 8.1% 8.6% 9.7% MPB 2024 Q3 Pro Forma MPB / WMPN Pro Forma MPB / WMPN + Capital Raise Overview of Recent Announcements Source: Company Documents. Note: Standalone data as of September 30, 2024. (1) Based
Slide 5: I. Strategic Merger with William Penn
5 Pro Forma I. Strategic Merger with William Penn
Slide 6: Overview of William Penn Bancorporation
6 Pro Forma Noninterest-bearing Deposits 10% IB Checking 21% Money Market 28% Savings 13% Time Deposits 28% Residential RE 35% CRE 56% C&I & Commercial 3% Construction 5% Pennsylvania $4,669 91% New Jersey $474 9% Overview of William Penn Bancorporation (NASDAQ: WMPN) Source: S&P Global Market Intel
Slide 7: Overview of William Penn Bancorporation (continued)
7 Pro Forma $53 $195 $108 $100 WMPN All Banks in the Greater Philly Market All Banks in the Greater Philly Market Ex. Top 5 Market Share MPB Overall Franchise Pre-WMPN $105,774 $84,038 $92,531 $99,605 $74,466 $75,874 Bucks, PA Camden, NJ Mercer, NJ Burlington, NJ State of Pennsylvania Overall U.S. O
Slide 8: Transaction Terms & Financial Impact
8 Pro Forma Transaction Terms & Financial Impact (1) Common equity raise base offering of $70 million with full exercise of 15% greenshoe of the base offering completed November 2024. Capital Raise Transaction Structure & Terms Cash Dividend Impact to WMPN Shareholders Management & Board of Director
Slide 9: Highly Attractive Transaction Economics
9 Pro Forma 9909090 Highly Attractive Transaction Economics Source: Company Documents; S&P Global Market Intelligence. (1) Assumes MPB stock issuance price of $31.88 per share (spot price as of 10/30/2024) and WMPN common shares of 9,208,217, includes in-the-money option value. (2) Fully synergized
Slide 10: Accretive to All Key Performance Ratios: Capital, Liquidity & Profitability
10 Pro Forma 11.0% 13.0% 13.2% MPB Pro Forma Comparable Banks Median 0.95% 1.16% 1.10% MPB Pro Forma Comparable Banks Median 97.9% 94.3% 91.9% 12/31/2023 9/30/2024 Pro Forma 384% 370% MPB Pro Forma 10.4% 10.8% MPB Pro Forma 8.4% 8.6% MPB Pro Forma at Close $5.7 $6.5 MPB Pro Forma Accretive to All Ke
Slide 11: Combined MPB/WMPN Team Has Extensive M&A Experience
11 Pro Forma ✓ Utilized MPB’s historical M&A experience and diligence team consisting of over 20 team members ✓ In-person and virtual diligence meetings conducted between both companies across all focus areas ✓ Comprehensive Loan Review Analysis – Engaged third party advisors to assist in credit loa
Slide 12: II. Capital Raise
12 Pro Forma II. Capital Raise
Slide 13: Transaction Term Sheet
13 Pro Forma Transaction Term Sheet Issuer Mid Penn Bancorp, Inc. NASDAQ Symbol MPB Offering Type Follow-on Security Common Stock Base Offering $70 million Overallotment Option 15% Use of Proceeds To support our continued growth, including investments in our bank subsidiary to support organic growth
Slide 14: Strategic Capital Raise Will Fully Unlock Organic Growth Potential
14 Pro Forma Strategic Capital Raise Will Fully Unlock Organic Growth Potential This capital raise is primarily intended to support organic growth opportunities Mid Penn is well-positioned to take advantage of these opportunities due to its methodical and successful expansion into this market over t
Slide 15: Demonstrated Track Record of Organic Growth
15 Pro Forma $0.7 $0.8 $0.9 $0.9 $1.1 $1.6 $2.1 $1.9 $2.1 $2.5 $0.1 $0.1 $0.1 $0.8 $0.8 $0.8 $1.9 $1.9 $2.2 $2.2 $0.6 $0.8 $0.9 $1.0 $1.7 $1.9 $2.5 $4.0 $3.8 $4.3 $4.7 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3 2024 Organic Deposits Acquired Deposits $0.6 $0.7 $0.8 $0.9 $1.1 $1.7 $1.6 $2.0
Slide 16: MPB Demonstrated Success In Growth Markets
16 Pro Forma Announcement Date 1/16/2018 6/30/2021 12/20/2022 -- Close Date 7/31/2018 11/30/2021 5/19/2023 -- Assets Acquired ($M) $612 $1,215 $382 $812 Key Impacts @ Announcement EPS Accretion 19% 25% 9 % 14% TBV Dilution (7%) (7%) (4%) (5%) TBV Earnback (yrs.) 2.8 2.3 2.7 2.4 Source: S&P Global Ma
Slide 17: Significant Opportunity to Grow in Highly Desirable Southeastern Pennsylvania Region
17 Pro Forma Significant Opportunity to Grow in Highly Desirable Southeastern Pennsylvania Region Source: S&P Global Market Intelligence, FDIC. Note: FD IC deposit data as of June 30, 202 4. (1) Last reported assets between $1-$20 billion and with dep osits in th e Ph iladelp hia MSA since 2014; lis
Slide 18: Strategic Actions Will Substantially Bolster Capital Ratios
18 Pro Forma 307% 288% 339% 376% 386% 370% 330% 2021 Q1 2021YE 2022YE 2023YE 2024 Q3 Pro Forma MPB / WMPN Pro Forma + Cap Raise 12.5% 14.6% 13.2% 11.7% 11.9% 12.4% 13.8% 2021 Q1 2021YE 2022YE 2023YE 2024 Q3 Pro Forma MPB / WMPN Pro Forma + Cap Raise 9.7% 11.8% 11.2% 9.8% 10.1% 10.8% 12.3% 2021 Q1 20
Slide 19: Compelling Value Creation Opportunity
19 Pro Forma Compelling Value Creation Opportunity Source: S&P Global Market Intelligence; FactSet. (1) Assumes transaction closing date of 6/30/2025 and includes purchase accounting and other merger-related adjustments; reflects completed common equity raise for illustrative purposes. (2) Defined a
Slide 20: Conclusion
20 Pro Forma 173% 96% 103% MPB NASDAQ Regional Banking Index $4 to $10 Billion Public Banks ~7% Loan Growth ~7% Deposit Growth Conclusion Source: S&P Global Market Intelligence; FactSet. Note: Market data as of 10/30/2024. Best-in-Class Shareholder Value Creation Triple accretive acquisition: Increa
Slide 21: III. Appendix
AIFS MID PENN BANCORP. Ill. Appendix
Slide 22: MPB Historical Financial Summary
22 Pro Forma For Fiscal Peiods Ended As Reported Q3 2023 FY 2023A Q1 2024 Q2 2024 Q3 2024 Unaudited Audited Unaudited Balance Sheet ($M) Total Assets $5,215 $5,291 $5,330 $5,392 $5,527 Total Gross Loans(1) 4,150 4,257 4,322 4,373 4,440 Deposits 4,380 4,346 4,379 4,497 4,707 Tang. Common Equity(2) 39
Slide 23: MPB: Nicely Diversified & Granular Commercial Loan Portfolio
23 Pro Forma MPB: Nicely Diversified & Granular Commercial Loan Portfolio Source: Company Documents, S&P Global Market Intelligence. (1) Excludes owner occupied commercial real estate and farmland loans. Bank holding company data as of June 30, 2024 used. Deeper Dive into the Commercial Loan Portfol
Slide 24: Pro Forma Loan & Deposit Composition
24 Pro Forma Pro Forma Loan & Deposit Composition Source: S&P Global Market Intelligence. Note: Loan and deposit data based upon 6/30/2024 GAAP filings. Loan Composition Deposit Composition 2024Q2 Yield: 6.11% 2024Q2 Yield: 5.44% 2024Q2 Yield: 6.04% 2024Q2 Cost: 2.56% NIB: 17.0% 2024Q2 Cost: 2.13% N
Slide 25: Non-GAAP Reconciliation
25 Pro Forma Non-GAAP Reconciliation Notes: Preliminary financial data as of for the quarter ended 9/30/2024. For the Quarter Ended 9/30/2024 Mid Penn Bancorp, Inc. William Penn Bancorporation Tangible Assets Total Assets (GAAP) $5,527,025 $812,229 Less: Goodwill 128,160 4,858 Less: Core Deposits an
Slide 26: Pro Forma Net Income and EPS Reconciliation
26 Pro Forma Pro Forma Net Income and EPS Reconciliation Note: Estimated financial impact is presented for illustrative purposes only. Pro Forma data is subject to various assumptions and uncertainties. See disclaimer "Combined Franchise Forward-Looking Data.” (1) Reflects completed common equity ra
Slide 27: Tangible Book Value Dilution Reconciliation
27 Pro Forma Tangible Book Value Dilution Reconciliation Estimated Pro Forma Excluding Capital Raise Estimated Pro Forma Including Capital Raise(1) Mid Penn Bancorp, Inc. Tangible Common Equity at Close $466 $466 Mid Penn Bancorp, Inc. Tangible Book Value per Share at Close $28.05 $28.05 Stock Consi
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