Mid Penn Bancorp · NASDAQ:MPB
Mid Penn Bancorp — Investor Presentation (November 2022)
20 slides from Mid Penn Bancorp's investor presentation, Nov 9, 2022
Slide 1: Mid Penn Bancorp, Inc. Investor Presentation November 2022
1 DRAFT 04.07.2021 MID PENN BANCORP, INC. Investor Presentation November 2022
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
2 Cautionary Notice Regarding Forward-Looking Statements This presentation and management’s related discussion regarding Mid Penn Bancorp, Inc. (“Mid Penn”) contains estimates, predictions, opinions, projections and other “forward-looking statements” as that phrase is defined in the Private Securiti
Slide 3: Mid Penn Bancorp, Inc. Overview at September 30, 2022
3 Mid Penn Bancorp, Inc. Overview at September 30, 2022 Note: Financial information as of September 30, 2022. Source: S&P Global Market Intelligence, Company Documents. (1) Non-GAAP financial metric. Please see Appendix for GAAP to non-GAAP reconciliation. (2) Annualized financial metric. • Banking
Slide 4: Strengthening Presence Across Pennsylvania as a Premier Community Bank
4 Rank Institution Name Branches (#) Total Assets ($M)3 1 First Commonwealth Financial (PA) 103 9,579 2 S&T Bancorp Inc. (PA) 70 8,936 3 Univest Financial Corp. (PA) 44 6,907 4 Republic First Bancorp Inc. (PA) 15 5,860 5 CNB Financial Corp. (PA) 26 5,317 6 Firstrust SB (PA) 17 4,727 7 Mid Penn Banco
Slide 5: Balance Sheet and Income Statement Highlights
5 Balance Sheet • Core loan1 growth of 18% during the three months ended September 30, 2022 from the second quarter of 2022, primarily in the commercial real estate and commercial and industrial financing loan portfolios • Total deposits decreased by (7%) since December 2021 due to the maturity of c
Slide 6: Demonstrated Ability to Drive Balance Sheet Growth
6 $935 $1,024 $1,726 $1,912 $2,475 $4,002 $3,730 2016 2017 2018 2019 2020 2021 2022Q3 $814 $910 $1,624 $1,763 $2,384 $3,104 $3,322 2016 2017 2018 2019 2020 2021 2022Q3 $1,033 $1,170 $2,078 $2,231 $2,999 $4,689 $4,334 2016 2017 2018 2019 2020 2021 2022Q3 Demonstrated Ability to Drive Balance Sheet Gr
Slide 7: Well-Positioned in a Challenging Environment
7 3.5% (12.3%) MPB Peer Median 5.6% 13.5% MPB Peer Median Well-Positioned in a Challenging Environment AFS Securities / Total AssetsYTD TBV Growth Source: S&P Global Market Intelligence, Company Documents. Note: Financial data as of 2022 Q3 unless otherwise stated. MRQ = Most recent quarter. LTM = L
Slide 8: Continued Focus on Technology
8 Customer Experience Employee Efficiency Data Security SAFEGUARDING CUSTOMER INFORMATION Improved Consumer Online Banking • Full mobile functionality • Customizable account alerts • Debit Card controls • Zelle™ integration • ApplePay™ integration Improved Business Online Banking • Full mobile funct
Slide 9: Mid Penn Investment Highlights
9 Mid Penn Investment Highlights Experienced management team focused on driving franchise value History of consistent earnings, dividend and book value growth Strong asset quality results over the last 8 years resulting from an exceptional risk management culture Clearly identified strategic initiat
Slide 10: Transaction Details
10 Transaction Details • $125M aggregate transaction value at announcement 6/30/2021 – 100% stock • Creates one of the largest community banks headquartered in PA with pro forma assets of ~$4.8 billion ✓ Closed 11/30/2021 creating the 7th largest PA headquartered Community Bank(1) ✓ Successfully per
Slide 11: Evolution into a Premier Community Bank
11 Evolution into a Premier Community Bank Average Branch Size ($M) Source: S&P Global Market Intelligence. Note: Current FDIC Deposit data as of 6/30/2022. 2019 FDIC deposit data as of 6/30/2019. Return on Assets (ROA Comparison) Deposits in Southeast Pennsylvania Growth Markets ($M) $167 $47 $40 $
Slide 12: Long History of Enhancing Shareholder Value
12 128% 91% 0% 20% 40% 60% 80% 100% 120% 140% MPB National Peers 499% 141% 0% 100% 200% 300% 400% 500% 600% MPB National Peers Long History of Enhancing Shareholder Value Compound Tangible Book Value per Share + Dividends (Non-GAAP) Growth Source: S&P Global Market Intelligence. Note: National Peers
Slide 13: Five-Year Return to Shareholders
13 Dec '16 Dec '17 Dec '18 Dec '19 Dec '20 Dec '21 Oct' 22 MidPenn Bancorp, Inc. 54% 120% 55% 100% 58% 136% 147% Proxy Peer Group(1) 41% 55% 41% 72% 34% 84% 75% KRX Index 45% 48% 29% 58% 33% 75% 74% Five-Year Return to Shareholders Total Return Performance Source: S&P Global Market Intelligence. Not
Slide 14: Appendix
MID PENN BANCORP. Appendix
Slide 15: Experienced Management Team
15 Experienced Management Team Source: Company Documents. RORY RITRIEVI Chief Executive Officer Mr. Rory G. Ritrievi joined Mid Penn Bank and parent company Mid Penn Bancorp, Inc. in 2009 as President and Chief Executive Officer. Prior to joining Mid Penn, Mr. Ritrievi served as Market President and
Slide 16: Experienced Management Team (Continued)
16 Experienced Management Team (Continued) Source: Company Documents. Jordan D. Space Chief Corporate Development Officer, EVP Mr. Jordan D. Space joined Mid Penn Bank in 2022 as Executive Vice President and Chief Corporate Development Officer. In his role, he assists the CEO in the development of n
Slide 17: Franchise Snapshot: Corporate Structure
17 Franchise Snapshot: Corporate Structure Source: Company Documents. (1) MPB Management is a future potential business line currently in planning stages. Mid Penn Bancorp, Inc. Mid Penn Bank ✓ Consumer Banking ✓ Commercial Banking ✓ Trust and Wealth Management Services ✓ Retail Brokerage ✓ Private
Slide 18: Non-GAAP Reconciliation
18 Non-GAAP Reconciliation ($000s) As of December 31, As of September 30, 2017 2018 2019 2020 2021 2022 Total Common Equity $75,703 $223,209 $237,874 $255,688 $490,076 $499,105 Goodwill 3,918 62,840 62,840 62,840 113,835 113,871 Other Intangibles 434 7,221 5,758 4,360 9,436 7,215 Less: Total Intangi
Slide 19: Non-GAAP Reconciliation
19 Non-GAAP Reconciliation ($000s) 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 Net Income Available to Common Shareholders $9,787 $607 $11,354 $12,252 $15,481 Plus: Intangible Amortizations, Net of Tax 210 282 380 412 406 $9,997 $889 $11,734 $12,664 $15,887 Average Shareholder's Equity $345,816 $403,010 $494
Slide 20: Non-GAAP Reconciliation
20 Non-GAAP Reconciliation ($000s) 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 Non-Interest Expense $20,019 $34,072 $25,745 $23,915 $24,715 Less: Merger and Acquisition Expenses 198 12,227 329 -- -- Less: Intangible Amortization 266 357 481 521 514 Less: (Gain) Loss on Sale or Write-down of Foreclosed Assets
MID Penn Bancorp — Investor Presentation (November 2022) on 6ix