Mid Penn Bancorp · NASDAQ:MPB

Mid Penn Bancorp — Investor Presentation (August 2016)

23 slides from Mid Penn Bancorp's investor presentation, Aug 9, 2016

  1. Slide 1: Investor Presentation August 9, 2016

    INVESTORPRESENTATION AUGUST9, 2016

  2. Slide 2: Cautionary Notice Regarding Forward-Looking Statements

    2 Thispresentationmaycontainforward-lookingstatementsaboutMidPennBancorp,Inc. Forward- looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations,anticipations,assumptions,estimates,intentions,andfutureperformance,andinvolve knownandunknownrisks,uncerta

  3. Slide 3: Cautionary Notice Regarding Forward-Looking Statements (continued)

    Risks,uncertainties,andotherfactorsaffectingMidPennBancorp,Inc.(continued): • thepossibilitythatmergerandacquisitionactivitieswillnotresultinanticipatedcostsavingsor projectedbusinessintegrationsynergies; • volatilityinsecuritiesmarkets,andtherelatedriskofdecreasesinboththevalueofMidPenn Bancorp,Inc

  4. Slide 4: Largest commercial bank headquartered in Dauphin County, Pennsylvania

    »Largest commercial bank headquartered in Dauphin County, Pennsylvania, with 20 retail banking locations across six counties. »Named one of the “Top 200 Community Banks” by American Banker Magazine (3rd consecutive year) 4 INVESTORPRESENTATION AUGUST9, 2016 (Dollars in 000s) June 30, 2016 June 30, 2

  5. Slide 5: Executive Management

    Executive Position Years at MPB Years in Industry Rory G. Ritrievi President & Chief Executive Officer 7 29 Scott W. Micklewright EVP & Chief Lending Officer 7 10 Kelly K. Neiderer EVP & Chief Retail Officer 3 26 Joseph L. Paese, CFP EVP & Director of Trust and Wealth Management 1 * 32 Michael D. Pe

  6. Slide 6: Five-Year Return to Shareholders

    » Five-YearReturntoShareholders: $100investedinMPBstockasofDecember31,2010andheldforthefull fiveyearsthroughDecember31,2015returnedover143%. 100.00 102.95 156.74 205.02 228.85 243.52 98.67 114.76 134.66 144.73 154.25 Dec.31, 2010 Dec. 31, 2011 Dec.31, 2012 Dec. 31, 2013 Dec.31, 2014 Dec. 31, 2015 Mi

  7. Slide 7: Tangible Book Value and Market Price Per Common Share

    $13.19 $13.35 $15.13 $15.49 $16.54 $11.19 $14.34 $15.55 $16.10 $15.91 Year Ended Dec. 31, 2012 Year Ended Dec. 31, 2013 Year Ended Dec. 31, 2014 Year Ended Dec. 31, 2015 6 Mos. Ended Jun. 30, 2016 Tangible Book Value and Market Price Per Common Share Tangible Book Value Per Common Share Closing Mark

  8. Slide 8: Earnings Per Common Share (Fully Diluted)

    $1.27 $1.32 $1.53 $1.47 $0.91 Year Ended Dec. 31, 2012 Year Ended Dec. 31, 2013 Year Ended Dec. 31, 2014 Year Ended Dec. 31, 2015 6 Mos. Ended Jun. 30, 2016 Earnings Per Common Share (Fully Diluted) 8 INVESTORPRESENTATION AUGUST9, 2016 * * * The 2015 and 2014 EPS reflect a ($0.12) and ($0.11) impact

  9. Slide 9: Dividends Distributed Per Common Share

    9 INVESTORPRESENTATION AUGUST9, 2016 $0.25 $0.25 $0.45 $0.44 $0.34 Year Ended Dec. 31, 2012 Year Ended Dec. 31, 2013 Year Ended Dec. 31, 2014 Year Ended Dec. 31, 2015 6 Mos. Ended Jun. 30, 2016 Dividends Distributed Per Common Share

  10. Slide 10: Net Income Available to Common Shareholders

    » 2015annualearningsofover$6million(afterone-timemerger-relatedexpenses of$762,000incurredduring2015),reflecta12.8%increaseover2014earnings, continuingthetrendofincreasingannualnetincome. 10 INVESTORPRESENTATION AUGUST9, 2016 $4,029 $4,437 $4,616 $5,351 $6,038 2011 2012 2013 2014 2015 Net Income Ava

  11. Slide 11: Six Months Ended June 30, 2016 Income Statement

    11 INVESTORPRESENTATION AUGUST9, 2016 Jun. 30, 2016 Jun. 30, 2015 Net Interest Income $16,948 $15,524 9.2% Provision for Loan Losses (735) (600) 22.5% 16,213 14,924 8.6% Noninterest Income 2,630 2,042 28.8% Noninterest Expense (13,903) (13,282) 4.7% Income Before Taxes 4,940 3,684 34.1% Provision fo

  12. Slide 12: Total Assets

    Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 June. 30, 2016 $705 $713 $756 $932 $1,013 Total Assets (Dollars in millions) » As of June 30, 2016, Mid Penn Bancorp’s total assets exceeded $1 billion. FromDec.31,2012,toJune30,2016,totalassetsincreased44%. 12 INVESTORPRESENTATION AUGUST9, 201

  13. Slide 13: Total Loans

    » FromDec.31,2014,toJune30,2016,totalloansincreased$197millionor34%. Ofthisincrease,$112millionor20%wasfromcoreMidPennBankgrowth,while $85millionor14%wasprincipalremainingfromPhoenixBancorpacquiredloans. 13 INVESTORPRESENTATION AUGUST9, 2016 Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Ju

  14. Slide 14: Loan Portfolio Composition

    Commercial Real Estate, 59% Commercial and Industrial,22% Residential Mortgage and Consumer, 19% Commercial Real Estate, 61% Commercial and Industrial,21% Residential Mortgage and Consumer, 18% » TheaverageyieldonloansheldintheBank’sportfoliowas4.85%fortheyearended December31,2015,and4.82%forthesixm

  15. Slide 15: Favorable Asset Quality Trends: Nonperforming Assets

    » Favorable Asset Quality Trends: Total nonperforming assets (NPAs), including nonaccrual loans, troubled debt restructurings, and foreclosed real estate, favorably decreasedfrom$13.1millionasofDec.31,2012,to$5.4millionasofJune30,2016. 15 INVESTORPRESENTATION AUGUST9, 2016 1.86 1.78 1.52 0.65 0.54 D

  16. Slide 16: Allowance for Loan Losses/Nonperforming Loans

    16 INVESTORPRESENTATION AUGUST9, 2016 44.95% 53.94% 61.37% 126.46% 140.28% Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Jun. 30, 2016 Allowance for Loan Losses/Nonperforming Loans

  17. Slide 17: Favorable Asset Quality Trends: Texas Ratio

    » FavorableAssetQualityTrends: TheTexasRatioistheamountoftheBank’s nonperformingassetsand90-daypastdueloans,dividedbytangibleequitycapital plustheloanlossreserve. Measuresof100ormoreareanadversewarningsign. 17 INVESTORPRESENTATION AUGUST9, 2016 25.3 23.8 19.3 8.5 7.2 Dec. 31, 2012 Dec. 31, 2013 Dec.

  18. Slide 18: Total Deposits

    » The$116millionor15%depositgrowthinthefirstsixmonthsof2016reflectsMid Penn Bank’s addition of new business, retail, and cash management deposit relationships,includingseveralcustomersaffectedby the market disruptionfrom competitormergeractivities.Ofthe$140millionor22%increaseduring2015,$38 million

  19. Slide 19: Deposit Composition

    Noninterest Bearing Demand, 13% Interest Bearing Demand, 32% Money Market, 27% Savings, 7% Time, 21% Noninterest Bearing Demand, 14% Interest Bearing Demand, 33% Money Market, 27% Savings, 7% Time, 19% 19 12/31/2015 6/30/2016 INVESTORPRESENTATION AUGUST9, 2016

  20. Slide 20: Cost of Funds

    » Given the low interest rates over the past several years, combined with our disciplineddepositpricing,wehavefavorablyreducedourcostoffunds. 20 INVESTORPRESENTATION AUGUST9, 2016 2.08% 1.68% 1.20% 0.86% 0.71% 0.64% 0.68% Year Ended Dec. 31, 2010 Year Ended Dec. 31, 2011 Year Ended Dec. 31, 2012 Yea

  21. Slide 21: Net Interest Margin

    » For the six months ended June 30, 2016, the Net Interest Margin was 3.90%. Despitepersistentlowinterestratesinahighlycompetitivelendingenvironment, ourNetInterestMarginremainedstrongreflectingbothourcontinuedloanpricing discipline,andourabilitytogrowlowercostdeposits. 21 INVESTORPRESENTATION AUGUS

  22. Slide 22: Efficiency Ratio

    69.24% 70.07% 69.55% 63.91% 69.29% 71.43% 70.47% 72.58% 71.79% 72.44% 2011 2012 2013 2014 2015 Efficiency Ratio Year Ended December 31 Mid Penn Bank Pennsylvania Banks » ForthesixmonthsendedJune30,2016,theEfficiencyRatiowas68.6%. The increased overhead in 2015 reflected the short-term impact of fran

  23. Slide 23: 23

    23

MID Penn Bancorp — Investor Presentation (August 2016) on 6ix