Mid Penn Bancorp · NASDAQ:MPB
Mid Penn Bancorp — Shareholder Meeting (May 2023)
28 slides from Mid Penn Bancorp's shareholder meeting presentation, May 9, 2023
Slide 1: Mid Penn Bancorp, Inc. Annual Meeting of Shareholders May 9, 2023
1 DRAFT 04.07.2021 MID PENN BANCORP, INC. Annual Meeting of Shareholders May 9, 2023
Slide 2: Introduction of Board Members
2 Annual Meeting of Shareholders May 9, 2023 Source: Company Documents. Introduction of Board Members Rory G. Ritrievi Chair, President & CEO Mid Penn Bancorp, Inc. and Mid Penn Bank
Slide 3: Introduction of Board Members
3 Annual Meeting of Shareholders May 9, 2023 Source: Company Documents. Robert A. Abel Board Member of Mid Penn Bancorp, Inc. Principal and Shareholder Brown Schultz Sheridan & Fritz Kimberly J. Brumbaugh Board Member of Mid Penn Bancorp, Inc. Founder & Managing Partner Brumbaugh Wealth Management,
Slide 4: Introduction of Board Members
4 Annual Meeting of Shareholders May 9, 2023 Source: Company Documents. Maureen M. Gathagan Board Member of Mid Penn Bancorp, Inc. Partner, Bittersweet Management, LLC and Member, Gathagan Investment Company, LP Brian A. Hudson, Sr. Board Member of Mid Penn Bancorp, Inc. Former Executive Director &
Slide 5: Introduction of Board Members
5 Annual Meeting of Shareholders May 9, 2023 Source: Company Documents. Theodore W. Mowery Board Member of Mid Penn Bancorp, Inc. Founding Partner Gunn Mowery, LLC David E. Sparks Board Member of Mid Penn Bancorp, Inc. Founder, Former Chairman & CEO First Priority Financial Corp. William A. Specht,
Slide 6: Retiring Directors
6 Annual Meeting of Shareholders May 9, 2023 Retiring Directors Howard R. Greenawalt Retiring Board Member of Mid Penn Bancorp, Inc. Former Owner and Officer Greenawalt & Company, P.C. Gregory M. Kerwin Retiring Board Member of Mid Penn Bancorp, Inc. Senior Partner Kerwin & Kerwin, LLP Noble C. Quan
Slide 7: Formal Business of the Meeting
7 Annual Meeting of Shareholders May 9, 2023 Source: Company Documents. Rory G. Ritrievi Chair, President & CEO Mid Penn Bancorp, Inc. and Mid Penn Bank Formal Business of the Meeting
Slide 8: Formal Business of the Meeting: Election of Class A Directors
8 Annual Meeting of Shareholders May 9, 2023 Formal Business of the Meeting The first item of business to be acted upon by shareholders at this meeting is the election of three Class A Directors to serve for a three (3) year term and/or until their successor is elected and qualified: • Robert C. Gru
Slide 9: Formal Business of the Meeting: Advisory Vote on Executive Compensation
9 Annual Meeting of Shareholders May 9, 2023 Formal Business of the Meeting The second item to be acted upon by shareholders at this meeting is to approve a non- binding advisory vote on executive compensation. The Board unanimously recommends shareholders vote “for” approval of the compensation pai
Slide 10: Formal Business of the Meeting: 2023 Stock Incentive Plan
10 Annual Meeting of Shareholders May 9, 2023 Formal Business of the Meeting The third item to be acted upon by shareholders at this meeting is to approve the Corporation’s 2023 Stock Incentive Plan. The Board unanimously recommends shareholders vote “for” approval of the Corporation’s 2023 Stock In
Slide 11: Formal Business of the Meeting: 2023 Employee Stock Purchase Plan
11 Annual Meeting of Shareholders May 9, 2023 Formal Business of the Meeting The fourth item to be acted upon by shareholders at this meeting is to approve the Corporation’s 2023 Employee Stock Purchase Plan. The Board unanimously recommends shareholders vote “for” approval of the Corporation’s 2023
Slide 12: Formal Business of the Meeting: Ratify RSM US LLP
12 Annual Meeting of Shareholders May 9, 2023 Formal Business of the Meeting The fifth item to be acted upon by shareholders at this meeting is a proposal to ratify the appointment of RSM US LLP as the Corporation’s independent registered public accounting firm for the year ending December 31, 2023.
Slide 13: Management Presentation
13 Annual Meeting of Shareholders May 9, 2023 Source: Company Documents. Rory G. Ritrievi Chair, President & CEO Mid Penn Bancorp, Inc. and Mid Penn Bank Management Presentation
Slide 14: Cautionary Notice Regarding Forward-Looking Statements
14 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 Securit
Slide 15: Experienced Management Team
15 Experienced Management Team Source: Company Documents. Executive Position Years at MPB Years in Industry Rory G. Ritrievi President & Chief Executive Officer 14 37 Allison S. Johnson Sr. EVP / Chief Financial Officer 1 14 Justin T. Webb Sr. EVP /Chief Operating Officer 10 17 Scott W. Micklewright
Slide 16: Highlights from 2022 and 10-Year Total Shareholder Return
16 256% 152% 0% 50% 100% 150% 200% 250% 300% MPB KRX Announced the acquisition of Brunswick Bancorp in December of 2022 with an aggregate deal value of $53.9 million. Expected to close in the second quarter of 2023. Provides entrance into highly attractive & strategically important Central New J
Slide 17: Franchise Profile as of March 31, 2023
17 $23.31 $24.52 Q1'22 Q1'23 $3,514 $3,611 Q4'22 Q1'23 $4,498 $4,583 Q4'22 Q1'23 $3,778 $3,878 Q4'22 Q1'23 Franchise Profile as of March 31, 2023 Source: S&P Global Market Intelligence; Company Documents. Note: Financial information as of March 31, 2023. All growth rates are annualized and calculate
Slide 18: Franchise Snapshot: Corporate Structure
18 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 19: Well-Positioned in a Challenging Environment
19 0.00% 0.02% MPB Peer Median 24.0% 15.2% MPB Peer Median 5.2% 0.5% MPB Peer Median 5.2% 11.8% MPB Peer Median Well-Positioned in a Challenging Environment AFS Securities / Total AssetsQ/Q TBV Growth Source: S&P Global Market Intelligence, Company Documents. Note: Financial data as of 2023 Q1 unles
Slide 20: Capital Position
20 12.8% 16.2% 12.3% 12.7% 11.4% 4.0% 9.4% 10.4% 10.1% 8.1% 8.8% 8.2% 9.6% 5.6% 6.6% 6.1% 8.9% (0.1%) 6.1% 4.7% Current GAAP / Reg Cap Capital Position Source: S&P Global Market Intelligence. Note: Bank-level financial data as of the most recent quarter reported used. Adj. Assuming 100% Deduction fo
Slide 21: Long History of Enhancing Shareholder Value
21 133% 116% 0% 20% 40% 60% 80% 100% 120% 140% MPB National Peers 531% 162% 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 Peer
Slide 22: Return to Shareholders Since 2016
22 2016 2017 2018 2019 2020 2021 2022 May '23 MidPenn Bancorp, Inc. 54% 120% 55% 100% 58% 136% 129% 55% Proxy Peer Group(1) 49% 47% 35% 61% 18% 74% 64% 21% KRX Index 45% 46% 26% 56% 24% 69% 61% 15% Return to Shareholders Since 2016 Total Return Performance Source: S&P Global Market Intelligence. Not
Slide 23: Strategic Initiatives Going Forward
23 Strategic Initiatives Going Forward Source: Company Documents. Core Customer Loan & Deposit Production • Focus and attention on core deposit generation in this volatile market • Maintain strong loan pipeline with attractive yields and low credit risk • Attract and retain high quality commercial l
Slide 24: Mid Penn Bancorp, Inc.
24 DRAFT 04.07.2021 MID PENN BANCORP, INC. Annual Meeting of Shareholders May 9, 2023
Slide 25: Appendix
MID PENN BANCORP. Appendix
Slide 26: Earnings Per Share and Dividends
26 $0.70 $0.79 $0.77 $0.84 $0.80 $0.80 2018 2019 2020 2021 2022 Q1'23 $1.48 $2.09 $3.10 $2.71 $3.44 $2.80 2018 2019 2020 2021 2022 Q1'23 Earnings Per Share and Dividends Source: S&P Global Market Intelligence, Company Documents. (1) Q1’23 data annualized. Earnings Per Share (Diluted) Cash Dividends
Slide 27: Non-GAAP Reconciliation
27 Non-GAAP Reconciliation Source: S&P Global Market Intelligence, Company Filings. ($000s) As of December 31, As of March 31, 2017 2018 2019 2020 2021 2022 2023 Total Common Equity $75,703 $223,209 $237,874 $255,688 $490,076 $512,099 $510,793 Goodwill 3,918 62,840 62,840 62,840 113,835 114,231 114,
Slide 28: Non-GAAP Reconciliation
28 Non-GAAP Reconciliation Source: S&P Global Market Intelligence, Company Filings. ($000s) December 31, As of March 31, December 31, As of March 31, 2021 2022 2022 2023 Loans and Leases, net of unearned interest $3,104,396 $3,121,531 $3,514,119 $3,611,347 Less: PPP loans, net of deferred fees 111,2