Mid Penn Bancorp · NASDAQ:MPB
Mid Penn Bancorp — Shareholder Meeting (May 2024)
28 slides from Mid Penn Bancorp's shareholder meeting presentation, May 14, 2024
Slide 1: Annual Meeting of Shareholders May 14, 2024
1 DRAFT 04.07.2021 MID PENN BANCORP, INC. Annual Meeting of Shareholders May 14, 2024
Slide 2: Introduction of Board Members
2 Annual Meeting of Shareholders May 14, 2024 Source: Company Documents. Introduction of Board Members Rory G. Ritrievi Chair, President & CEO Mid Penn Bancorp, Inc. and Mid Penn Bank
Slide 3: Board Members
3 Annual Meeting of Shareholders May 14, 2024 Source: Company Documents. Robert A. Abel Board Member of Mid Penn Bancorp, Inc. Principal and Shareholder Brown Plus Kimberly J. Brumbaugh Board Member of Mid Penn Bancorp, Inc. Founder and Managing Partner Brumbaugh Wealth Management, LLC Matthew G. De
Slide 4: Board Members
4 Annual Meeting of Shareholders May 14, 2024 Source: Company Documents. Albert J. Evans Board Member of Mid Penn Bancorp, Inc. President Fanelli, Evans & Patel, P.C. Maureen M. Gathagan Board Member of Mid Penn Bancorp, Inc. Partner, Bittersweet Management, LLC and Member, Gathagan Investment Compa
Slide 5: Board Members
5 Annual Meeting of Shareholders May 14, 2024 Source: Company Documents. Bruce A. Kiefer Board Member of Mid Penn Bancorp, Inc. Manager/Chemist, The Hershey Company and Managing Partner, Lawrence Keister & Co. Theodore W. Mowery Board Member of Mid Penn Bancorp, Inc. Founding Partner Gunn Mowery, LL
Slide 6: Retiring Directors
6 Annual Meeting of Shareholders May 14, 2024 Retiring Directors Robert C. Grubic Retiring Board Member of Mid Penn Bancorp, Inc. Chairman Herbert, Rowland & Grubic, Inc. Gregory M. Kerwin Retiring Board Member of Mid Penn Bancorp, Inc. Senior Partner Kerwin & Kerwin, LLP David E. Sparks Retiring Bo
Slide 7: Formal Business of the Meeting
7 Annual Meeting of Shareholders May 14, 2024 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: Election of Class B Directors
8 Annual Meeting of Shareholders May 14, 2024 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 B Directors to serve for a three (3) year term and/or until their successor is elected and qualified: • Kimberly J.
Slide 9: Formal Business: Advisory Vote on Executive Compensation
9 Annual Meeting of Shareholders May 14, 2024 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 pa
Slide 10: Formal Business: Ratification of Independent Auditor
10 Annual Meeting of Shareholders May 14, 2024 Formal Business of the Meeting The third 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, 2024
Slide 11: Management Presentation
11 Annual Meeting of Shareholders May 14, 2024 Source: Company Documents. Rory G. Ritrievi Chair, President & CEO Mid Penn Bancorp, Inc. and Mid Penn Bank Management Presentation
Slide 12: Cautionary Notice Regarding Forward-Looking Statements
12 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 13: Experienced Management Team
13 Experienced Management Team Source: Company Documents. Years in Industry Years at MPB PositionExecutive 3815Chair, President & Chief Executive OfficerRory G. Ritrievi 1815 Sr. EVP / President of Commercial and Consumer Banking & Chief Revenue Officer Scott W. Micklewright 1811Sr. EVP / Chief Fina
Slide 14: Mid Penn Bank Regional Presidents
14 Mid Penn Bank Regional Presidents Source: Company Documents. Years in Industry Years at MPB Position / RegionExecutive 2013Sr. VP / Upper Dauphin CountyNatalie L. Falatek 317Sr. VP / Schuylkill & Luzerne CountiesMark F. Ketch 157Sr. VP / Brunswick RegionKeith C. Rada 405Sr. VP / Berks CountyJosep
Slide 15: Volatile Environment Continued Throughout 2023
15 Volatile Environment Continued Throughout 2023 Source: S&P Global Market Intelligence, FactSet, Bloomberg. Note: Market data as of 12/31/2023. Average Federal Funds Rate Higher-for-Longer Rate Environment PersistsMultiple Bank Failures & Wind Downs 3.85% 3.00% 3.50% 4.00% 4.50% 5.00% 5-Year U.S.
Slide 16: Highlights from 2023 and 2024Q1
16 $3,778 $4,379 Q4'22 Q1'24 $3,514 $4,317 Q4'22 Q1'24 Highlights from 2023 and 2024Q1 Mid Penn Continues to Demonstrate Strength in a Challenging Operating Environment Source: Company Documents. Note: MPB acquisition of BRBW data as of deal announcement date. (1) All growth rates are calculated fro
Slide 17: Franchise Snapshot: Corporate Structure
17 Franchise Snapshot: Corporate Structure Source: Company Documents. Mid Penn Bancorp, Inc. Mid Penn Bank Consumer Banking Commercial Banking Trust and Wealth Management Services Retail Brokerage Private Banking with Sports & Entertainment Division Residential Lending MPB Financial Serv
Slide 18: Exceptional Asset Quality and Diversified Commercial Loan Portfolio
18 Multifamily 22% Retail 27% Office 19% Industrial 10% Hospitality 9% Flex 3% Mobile Home Park 2% Healthcare 1% Other Property Types 7% ($000s) Commercial Real Estate Balance % Total Loan Count Avg. Balance WA LTV Multifamily $334,952 22.2% 337 $1,002 63.5% Retail 410,387 27.2% 311 1,328 53.7% Offi
Slide 19: Commercial Loan Portfolio: Geographic Distribution
19 Commercial Loan Portfolio: Geographic Distribution Multifamily Portfolio Nonowner Occupied CRE Portfolio Central PA 37% Greater Philadelphia 27% Central NJ 10% Other PA 23% Other Markets 3% Source: Company Documents, S&P Global Market Intelligence. Central PA 39% Greater Philadelphia 24% Central
Slide 20: Well-Balanced Deposit Franchise with Best-in-Class NIB Growth
20 Rank Institution Name Branches (#) Total Deposits ($M) Deposit Market Share (%) 1 The PNC Finl Svcs Grp (PA) 9 $5,592 30.10 2 Mid Penn Bancorp Inc. (PA) 16 2,002 10.78 3 M&T Bank Corp. (NY) 20 1,880 10.12 4 F.N.B. Corp. (PA) 10 1,765 9.50 5 Orrstown Financial Services (PA) 9 1,182 6.36 6 Wells Fa
Slide 21: Significant Opportunity to Grow in Southeastern Pennsylvania
21 $104,358 $112,156 $89,841 $74,466 Philly Counties of focus Central NJ Counties of focus South NJ Counties of focus State of PA Source: S&P Global Market Intelligence, FDIC. Note: FDIC deposit data as of June 30, 2023. (1) Central New Jersey defined as Monmouth, Mercer, Middlesex, Hunterdon and So
Slide 22: Demonstrated Track Record of Outsized Shareholder Value Creation
22 9% 12% 6% 7% MPB Core MPB GAAP Peer Median KRX Median $0.79 $1.30 $1.42 $1.41 $1.76 $1.74 $1.85 $1.79 $2.03 $2.09 $3.11 $3.66 $3.48 $2.70 $2.56 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Q1'24 218% 151% 195% MPB Peer Median KRX Median Demonstrated Track Record of Outsized Shareholder
Slide 23: Compelling Investment Thesis
23 Compelling Investment Thesis Demonstrated track record of outsized shareholder value creation Successful whole-bank acquiror Exceptional asset quality and nicely diversified & granular commercial loan portfolio Strong profitability ratios, in-line or better than national peers Well-balanced depos
Slide 24: Mid Penn Bancorp, Inc.
24 DRAFT 04.07.2021 MID PENN BANCORP, INC. Annual Meeting of Shareholders May 14, 2024
Slide 25: Appendix
MID PENN BANCORP. Appendix
Slide 26: Earnings Per Share and Dividends
26 $0.79 $0.77 $0.84 $0.80 $0.80 $0.80 2019 2020 2021 2022 2023 Q1'24 $2.09 $3.10 $2.71 $3.44 $2.80 $2.92 2019 2020 2021 2022 2023 Q1'24 Earnings Per Share and Dividends Source: S&P Global Market Intelligence, Company Documents. (1) 2024Q1 data is annualized. Earnings Per Share (Diluted) Cash Divide
Slide 27: Non-GAAP Reconciliation
27 Non-GAAP Reconciliation ($000s) 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 Net Income Available to Common Shareholders $11,227 $4,836 $9,236 $12,098 $12,133 Less: BOLI Death Benefit Income -- -- -- -- 1,460 Plus: Merger and Acquisition Expenses 224 7,944 352 -- -- Less: Tax Effect of Merger and Acquisiti
Slide 28: Non-GAAP Reconciliation
28 Non-GAAP Reconciliation Source: S&P Global Market Intelligence, Company Filings. (1) Bank-level PPP used. ($000s) December 31, As of March 31, December 31, As of March 31, 2022 2023 2023 2024 Loans and Leases, net of unearned interest $3,514,119 $3,611,347 $4,252,792 $4,317,449 Less: PPP loans, n