Mid Penn Bancorp · NASDAQ:MPB
Mid Penn Bancorp — Investor Presentation (November 2021)
22 slides from Mid Penn Bancorp's investor presentation, Nov 12, 2021
Slide 1: Mid Penn Bancorp, Inc. Investor Presentation November 2021
Exhibit 99.1 DRAFT 04.07.2021 MID PENN BANCORP, INC. Investor Presentation November 2021 1
Slide 2: Disclosures: Important Additional Information
DISCLOSURES Important Additional Information This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed acquisition by Mid Penn Bancorp, Inc. (“Mid Penn”) of Riverview Financial
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS Forward-Looking Statements This communication contains estimates, predictions, opinions, projections and other “forward-looking statements” as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limita
Slide 4: Mid Penn Bancorp, Inc. Overview
Mid Penn Bancorp, Inc. Overview Holding Company for Mid Penn Bank Franchise Highlights • Banking subsidiary: Mid Penn Bank (est. 1868), state Assets Loans Deposits chartered non member bank and trust company, headquartered in Millersburg, PA $2.4 B $3.0 B $3.5 B • A PA based commercial bank operatin
Slide 5: Strengthening Presence Across Pennsylvania as a Premier Community Bank
Strengthening Presence Across Pennsylvania as a Premier Community Bank 2,3 Pro Forma Branch Map Top Pennsylvania Headquartered Community Banks Total 1 MPB (36) RIVE (23) Assets Branches 4 Rank Institution Name (#) ($M) 1 First Commonwealth Financial 119 $9,478 2 S&T Bancorp Inc. 73 9,436 3 Univest F
Slide 6: Markets of Operation: Low Cost, Stable Deposits and Higher Growth Lending Opportunities
Markets of Operation: Low Cost, Stable Deposits and Higher Growth Lending Opportunities Rapid Growth in Attractive Southeastern PA Markets (1) Capital Region Southeast, PA Western, PA Deposit Growth ($M) % of Franchise 65% 19% 16% Berks, Bucks, and Chester Counties % Proj. th Total Deposits as of Ju
Slide 7: Compelling History of Organic and M&A based Growth
Compelling History of Organic and M&A based Growth • Infrastructure investments from 2009 – 2014 paved the way for a successful run of organic and acquired growth • Three successful bank acquisitions from 2015 to 2018 added over $1 billion in assets while diversifying and expanding our markets of op
Slide 8: Demonstrated Ability to Drive Balance Sheet Growth
Demonstrated Ability to Drive Balance Sheet Growth 1 Total Assets ($M) Gross Loans ($M) $3,453 $2,999 $2,384 $2,370 $2,231 $2,078 $1,763 $1,624 $1,170 $1,033 $910 $814 2016 2017 2018 2019 2020 2021Q3 2016 2017 2018 2019 2020 2021Q3 2 Total Deposits ($M) Core Loans ($M) $1,936 $2,962 $1,719 $2,475 $1
Slide 9: Q3 2021 Highlights
Q3 2021 Highlights Selected Highlights Key Statistics 1 • Organic loans (excluding PPP and mortgage loans held for sale) grew at a rate of more than 12% since September 30, 2020 Balance • Deposits grew at a rate of more than 20% since September 30, 2020 Sheet • Non performing assets decreased by ove
Slide 10: Acquisition of Riverview Financial
Acquisition of Riverview Financial Combination of Two Leading Franchises Creating a Premier Community Bank in Pennsylvania Transaction Rationale Key Terms & Financial Assumptions ü Expansion into new markets - Lehigh Valley and State College • RIVE shareholders to receive 0.4833 shares of MPB common
Slide 11: Cost Synergies Breakdown
Cost Synergies Breakdown Expected Cost Synergies Breakout Significant Branch Overlap and Commentary Overlap RIVE Overlap ü $14.5M+ of pre-tax cost synergies (fully Radius Offices % of Offices Deposits realized) 1 Mile 6 24% 22% 3 Miles 9 36% 29% ü Cost savings primarily focused on 5 Miles 13 52% 50%
Slide 12: Mid Penn Investment Highlights
Mid Penn Investment Highlights Experienced management team focused on driving franchise value Long track record and demonstrated ability to drive balance sheet growth Complimentary markets of operation provide low cost, stable deposits and higher growth lending opportunities Proven ability to acquir
Slide 13: Long History of Enhancing Shareholder Value
Long History of Enhancing Shareholder Value Franchise Growth With Superior Resulting in Superior & Expansion Top-Line Growth Value Creation Compound Tangible Book Value per Share Revenue per Common Share Growth Total Asset Growth + Dividends (Non-GAAP) Growth MPB National Peers MPB National Peers MP
Slide 14: Strategic Initiatives Going Forward
Strategic Initiatives Going Forward Core Loan Production • Generate low double digit annual loan growth • Continue to convert new “PPP” customers into commercial relationships • Attract and retain high quality commercial lenders Southeast PA Market Development • Leverage position and brand to meanin
Slide 15: Discounted Valuation vs. Peers
Discounted Valuation vs. Peers LTM Loan Growth (ex. PPP) 3 Year Loan CAGR (ex. PPP) 25% 25% 20% 20% 16% 13% 15% 15% 12% 11% 8% 10% 10% Mid Penn has best-in-class 6% 5% 5% loan growth… 0% 0% MPB Median Median MPB Median Median $2 - $ 7 $2 - $7 $2 - $ 7 $2 - $7 Billion Billion Billion Billion All High
Slide 16: Appendix
MID PENN BANCORP. Appendix
Slide 17: Experienced Management Team
Experienced Management Team 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 Chief Lending Officer of Comm
Slide 18: Franchise Snapshot: Corporate Structure
Franchise Snapshot: Corporate Structure Mid Penn Bancorp, Inc. Mid Penn Bank MPB Financial Services ü Consumer Banking ü Commercial Banking MPB Wealth MPB Risk MPB Management ü Trust and Wealth Management Services ü High / Ultra-High-ü Property & Casualtyü Tax Advisory ü Retail Brokerage Net Worth ü
Slide 19: PPP Program Results
PPP Program Results Significant PPP success • We originated over 7,500 PPP loans, totaling over $1 billion • Our participation in the PPP program helped to protect over 80,000 jobs in the community • As of September 30, 2021, we had ~$230 million of PPP loans outstanding, net of deferred fees, or ~1
Slide 20: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Composition ($000s) September 30, 2021 Loan Type Balance % Total CRE - Construction Commercial & 13% Industrial Commercial Real Estate $632,680 26.7% 48% Commercial & Industrial 1,141,345 48.1 Residential CRE - Construction 314,457 13.3 Mortgage 8% Residenti
Slide 21: Core Deposit Franchise
Core Deposit Franchise Stable & Growing Deposit Composition ($000s) September 30, 2021 Savings & MMDA Deposit Type Balance % Total 38% Transaction Transaction $1,407,723 47.5% 47% Savings & MMDA 1,111,584 37.5 Retail Time 194,750 6.6 Retail Time Jumbo Time 247,824 8.4 7% Total $2,961,881 100.0% Jumb
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($000s) As of December 31, x As of Sept. 30, 2016 2017 2018 2019 2020 2021 Total Common Equity $70,467 $75,703 $223,209 $237,874 $255,688 $349,308 Goodwill 3,918 3,918 62,840 62,840 62,840 62,840 Other Intangibles 539 434 7,221 5,758 4,360 3,537 Less: Total Intangible Assets
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