Mid Penn Bancorp · NASDAQ:MPB
Mid Penn Bancorp — Investor Presentation (September 2016)
23 slides from Mid Penn Bancorp's investor presentation, Sep 13, 2016
Slide 1: Mid Penn Bancorp Investor Presentation September 2016
AFF MID PENN BANCORP. INVESTOR PRESENTATION SEPTEMBER 2016 Rory G. RITRIEVI, PRESIDENT & CHIEF EXECUTIVE OFFICER MICHAEL D. PEDUZZI, CPA, EVP & CHIEF FINANCIAL OFFICER JUSTIN T. WEBB, EVP & CHIEF RISK OFFICER
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements about Mid Penn Bancorp, Inc. Forward- looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, inte
Slide 3: Cautionary Notice Regarding Forward-Looking Statements (continued)
CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS Risks, uncertainties, and other factors affecting Mid Penn Bancorp, Inc. (continued): + the possibility that merger and acquisition activities will not result in anticipated cost savings or projected business integration synergies; + volatility
Slide 4: Mid Penn Profile
Mid Penn Profile * Experienced management — committed to disciplined growth ° Proven track record of success ° Attractive markets * Based in central Pennsylvania since 1868 with flexibility to expand both organically and via acquisition throughout Pennsylvania. ° Strong net interest margin ° Mid Pen
Slide 5: Experienced Management
Executive Experienced Management Yearsat Yearsin MPB Industry Position Rory G. Ritrievi Michael D. Peduzzi, CPA Justin T. Webb Scott W. Micklewright Kelly K. Neiderer Joseph L. Paese, CFP Amy M. Barnett Roberta A. Hoffman John Paul Livingston Paul F. Spiegel Margaret E. Steinour Cindy L. Wetzel * Hi
Slide 6: Key Milestones
Key Milestones Acquired Phoenix Bancorp in March 2015 Refinanced remaining SBLF and other preferred stock in December 2015 with $7.5 million subordinated debt offering at 5.15% Added to the Russell Microcap Index in June 2016 Exceeded $1 billion in total assets during the quarter ended June 30, 2016
Slide 7: Attractive Markets
Attractive Markets Largest commercial bank headquartered in Dauphin County, Pennsylvania, with 20 retail banking locations across six counties Consistent organic loan and deposit growth has been further enhanced by market share gains from disruption resulting from recent acquisitions of key competit
Slide 8: Strong Net Interest Margin
Mid Penn’s NIM increased to 3.85% for the quarter ending June 30, 2016 from 3.42% for 2009 The peer group NIM decreased to 3.36% from 3.58% over the same time period For the quarter ending June 30, 2016, Mid Penn’s NIM decreased 18 bps from 2015 driven by lower investment yields in the current marke
Slide 9: Strong Asset Quality
Strong Asset Quality NPAs comprise just 0.54% of assets which is less than half of the 1.15% peer median The total allowance coverage ratio has increased substantially over the last few years to 140% of nonperforming loans ALLL to total loans was 0.90% *Above figures as of June 30, 2016 9 2.00 160 1
Slide 10: Compelling Valuation
Mid Penn’s LTM P/E ratio as of August 31, 2016 is 11.1x compared to the 13.6x peer median Mid Penn’s price to tangible book value is 113% compared to the 120% peer median 10 Compelling Valuation Price / Institution Tang Book (%) ACNB GB Financial Services 716 114 Citizens & Northern 16.9 168 146 Cit
Slide 11: Exceeding $1 Billion in Total Assets
Total assets increased to $1.01 billion as of June 30, 2016 from $718 million as of March 31, 2014 Strong organic deposit growth resulted in total assets exceeding $1 billion for the first time during the most recent quarter i Exceeding $1 Billion in Total Assets 1,100 1,000 Total Assets ($millions)
Slide 12: Consistent Loan Growth
Net loans increased to $762 million as of June 30, 2016 from $543 million as of March 31,2014 Remaining principal on loans obtained in the 1Q15 Phoenix Bancorp acquisition comprised $85 million of the net loan growth 12 Consistent Loan Growth Net Loans ($millions) CAGR: 16.2% 1014 2Q14 3Q14 4Q14 1Q1
Slide 13: Loan Composition
Loan Composition 12/31/2011 6/30/2016 Resi, RE & Consumer = Consumer 17% | . 18% Commercial & Industrial 16% Commercial & Industrial 21% ° The average yield on loans was 4.85% for the year ended December 31, 2015, and 4.82% for the six months ended June 30, 2016 * Continued focus on growing commerci
Slide 14: Yield on Loans
Mid Penn’s yield on loans decreased to 4.82% annualized for the six months ending June 30, 2016 from 5.88% for 2010 amid the ongoing low interest rate environment The peer median decreased to 4.28% from 5.79% over the same period 4 8% 6% 4% 2% 0% Yield on Loans 5.88% 5.98% 5.70% I 5.24% 4.94% 4.85%
Slide 15: Growing Deposit Base
Deposits increased to $893 million as of the quarter ending June 30, 2016 from $607 million as of March 31, 2014 $102 million of deposits were assumed in the 1Q15 Phoenix Bancorp acqui 15 Growing Deposit Base 1000 Deposits (Smillions) CAGR: 18.8% - -- had = -- 1014 2Q14 3Q14 4Q14 1Q15* 2Q15 3Q15 4Q1
Slide 16: Deposit Composition
— Deposit Composition Noninterest 12/31/2011 6/30/2016 Interest Savings Noninterest Savings Bearing Bearing Demand a% 12% Bearing Demand 9% Demand 14% Interest Bearing Demand 33% * Total Deposits excluding Time Deposits increased to 81% of Total Deposits as of the quarter ending June 30, 2016 from 6
Slide 17: Cost of Funds
Mid Penn’s cost of funds decreased to 0.55% annualized for the six months ending June 30, 2016 from 1.74% for 2010 Opportunities exist to further reduce cost of funds through deposit initiatives amid the current low interest rate environment 17 Cost of Funds 2.00% = 1.74% - . 1.50% 1.00% “ss 0.56% 0
Slide 18: Accelerating Net Income
Accelerating Net Income + 2015 annual earnings of over $6 Net Income Available to Common million (after one-time merger- Shareholders ($000s) related expenses of $762,000 $7,000 incurred during 2015), reflect a 12.8% increase over 2014 o “onan earnings, continuing the trend of $6,000 + s increasing
Slide 19: 2016 Income Growth Versus Prior Year
19 2016 Income Growth Versus P or Year Net Interest Income Provision for Loan Losses Noninterest Income Noninterest Expense Income Before Taxes Provision for Income Taxes Pref. Stock Dividends NET INCOME AVAILABLE TO COMMON SHAREHOLDERS Earnings Per Share (Fully Diluted) For the Six Months Ended (Un
Slide 20: Increasing Shareholder Value and Returns
Increasing Shareholder Value and Returns * Closing Market Price on August 31, 2016 was $18.78 * Total return on common stock is 86.6% since December 31, 2012 * Tangible book value per common share has increased 25.0% during the same period * Market capitalization as of August 31, 2016 is $79.4 milli
Slide 21: Aligning Our Company For The Future
Aligning Our Company For The Future Maintain strong capital ratios ¢ Internally generated capital ¢ Strategic capital raising Poised for growth Creating value throughout Pennsylvania both organically and via acquisition Delivering shareholder value Continue to hire and attract talent AIFVS MID PENN
Slide 22: Rory G. Ritrievi / Michael D. Peduzzi
Rory G. Ritrievi President & Chief Executive Officer Michael D. Peduzzi EVP & Chief Financial Officer With nearly 30 years of experience in the financial services industry, Rory Ritrievi has served as president and CEO of Mid Penn Bank and parent company Mid Penn Bancorp, Inc., since 2009. Prior to
Slide 23: Mid Penn Bank
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