Mid Penn Bancorp, Inc. Reports First Quarter Earnings and Declares 58th Consecutive Quarterly Dividend

About this update from Mid Penn Bancorp

HARRISBURG, Pa. --(BUSINESS WIRE)-- Mid Penn Bancorp, Inc. (NASDAQ: MPB) ("Mid Penn"), the parent company of Mid Penn Bank (the "Bank") and MPB Financial Services, LLC , today reported net income available to common shareholders ("earnings") for the quarter ended March 31, 2025 , of $13.7 million , or $0.71 per diluted common share, compared to net income of $12.1 million , or $0.73 per diluted common share, for the first quarter of 2024, and a consensus analyst estimate of $0.63 per diluted common share for the first quarter of 2025. Key Highlights of the First Quarter of 2025: Net income available to common shareholders increased 13.3% to $13.7 million , or $0.71 per diluted common share, for the first quarter of 2025, compared to net income of $12.1 million , or $0.73 per diluted common share, for the first quarter of 2024. On a non-GAAP basis, core earnings(1) for the quarter ended March 31, 2025 , increased 30.3% to $13.9 million , or $0.72 per diluted common share, compared to $10.7 million , or $0.64 per diluted common share, for the first quarter of 2024. Net interest margin increased to 3.37% for the quarter ended March 31, 2025 , compared to 3.21% for the fourth quarter of 2024. Cost of funds decreased to 2.48% for the quarter ended March 31, 2025 , compared to 2.66% for the fourth quarter of 2024, as a result of a decrease in interest paid on interest-bearing deposit accounts, driven by the Bank lowering rates in response to the Federal Reserve interest rate cuts in the third and fourth quarters of 2024. The yield on loans decreased to 6.05% for the quarter ended March 31, 2025 , compared to 6.10% for the fourth quarter of 2024. Net interest margin increased to 3.37% for the quarter ended March 31, 2025 , compared to 2.97% for the first quarter of 2024, representing a 40 bp increase compared to the same period in 2024. Loan growth for the first quarter of 2025 was $48.1 million , or 4.4% (annualized), as the Bank continued to execute on its restrained growth strategy in 2025. Total loans increased $173.7 million , or 4.0% to $4.5 billion at March 31, 2025 , compared to $4.3 billion at March 31, 2024 . Deposits increased $42.3 million , or 3.7% (annualized), during the first quarter of 2025, compared to a decrease of $16.8 million , or 1.4% (annualized), during the fourth quarter of 2024. This increase was driven by a $55.5 million increase in interest-bearing transaction accounts, a $29.1 million increase in noninterest-bearing accounts, offset by $42.3 million decrease in time deposits. Total deposits increased $353.1 million or 8.06% to $4.7 billion at March 31, 2025 , compared to $4.4 billion at March 31, 2024 . Book value per common share improved to $34.50 as of March 31, 2025 , compared to $33.84 and $33.26 as of December 31, 2024 and March 31, 2024 , respectively. Tangible book value per common share (1) improved to $27.58 for as of March 31, 2025 , compared to $26.90 and $25.23 as of December 31, 2024 and March 31, 2024 , respectively. The core efficiency ratio(1) improved to 62.79% in the first quarter of 2025, compared to 63.9% in the fourth quarter of 2024, and 68.8% in the first quarter of 2024. As a result of the foregoing, the Board of Directors declared a cash dividend of $0.20 per common share, payable May 26, 2025 , to shareholders of record as of May 8, 2025 . (1) Non-GAAP financial measure. Refer to the calculation in the section titled “Reconciliation of Non-GAAP Measures (Unaudited)” at the end of this document. Chair, President and CEO Rory G. Ritrievi provided the following statement: "It is with great pleasure that we announce our first quarter of 2025 performance, which in many ways is a continuation of what we were able to accomplish in 2024. Despite a fairly tumultuous quarter for the nation and most of the world, we delivered a solid beat of consensus estimates on earnings per share. That beat was the result of healthy net interest margin expansion, moderate growth in both loans and deposits, strong asset quality performance and an improvement in the efficiency ratio. The net interest margin expansion was achieved by a decrease in deposit costs resulting from repricing initiatives started in the fourth quarter of 2024 and continuing through the first quarter of 2025. Even while increasing revenues around 3% annualized, we decreased operating expenses over 3% annualized, resulting in a 110 basis point, or almost 7% annualized, improvement in the efficiency ratio. Solid expense management continues. Our commercial and consumer bankers across our expanding footprint delivered a respectable organic growth rate of 4.4% (annualized) in loans and 3.7% (annualized) in deposits. Those growth rates are a little less than what we had hoped for the quarter, but we recognize that our borrower’s and depositors are influenced by what they feel and see in the overall economy. Their sentiment in the first quarter would be best described as cautious. In early April, we announced that we had received all regulatory approvals for our planned merger with William Penn Bank as well as the enthusiastic approval of both shareholder groups. As a result, we expect that the William Penn merger will close in the middle of the second quarter of 2025. We welcome all the William Penn customers and shareholders in advance of the expected completion. In consideration of our first quarter success, the Board has authorized its 58th consecutive quarterly dividend, a cash dividend of $0.20 per share of common stock, which was declared at its meeting on April 23, 2025 , payable on May 26, 2025 , to shareholders of record as of May 8, 2025 ." Net Interest Income For the three months ended March 31, 2025 , net interest income was $42.5 million , compared to net interest income of $41.3 million for the three months ended December 31, 2024 , and $36.5 million for the three months ended March 31, 2024 . The tax-equivalent net interest margin for the three months ended March 31, 2025 , was 3.37% compared to 3.21% and 2.97% for the fourth quarter of 2024 and first quarter of 2024, respectively, representing a 16 basis point ("bp") increase from the fourth quarter of 2024, and a 40 bp increase compared to the same period in 2024. The yield on interest-earning assets decreased to 5.65% for the quarter ended March 31, 2025 , from 5.67% for the three months ended December 31, 2024 , and increased from 5.51% for the three months ended March 31, 2024 . The decrease from the fourth quarter of 2024 was primarily due to a decrease in the average balance of Federal Funds Sold and a decrease in interest income from loans as a result of lower rates, partially offset by an increase in taxable investment securities. The increase from March 31, 2024 , was due to assets continuing to reprice at higher rates during 2024 and 2025, continued discipline on new loan pricing, and an overall increase in the average balance of Fed Funds Sold. For the three months ended March 31, 2025 , net interest income increased 16.6% to $42.5 million compared to net interest income of $36.5 million for the same period of 2024. The increase was primarily due to a $3.3 million increase in interest income on loans, a $420 thousand increase in income on investment securities, and a $4.2 million decrease in the interest paid on short term borrowings, offset by a $1.9 million increase in interest expense on deposits compared to the same period of 2024. Average Balances Average loans increased $18.2 million to $4.5 billion for the quarter ended March 31, 2025 , compared to $4.4 billion for the quarter ended December 31, 2024 , and $4.3 billion for the quarter ended March 31, 2024 . Average deposits were $4.7 billion for the first quarter of 2025, reflecting a decrease of $6.2 million , or 0.1%, compared to total average deposits of $4.7 billion in the fourth quarter of 2024, and an increase of $369.6 million , or 8.6%, compared to total average deposits of $4.3 billion for the first quarter of 2024. The average cost of deposits was 2.45% for the first quarter of 2025, representing a 20 bp decrease and a 2 bp increase from the fourth quarter of 2024 and the first quarter of 2024, respectively. The Bank continues to face headwinds with respect to deposit pricing, given competition for deposits across all product types. Our primary focus with respect to deposit strategy is stability, ensuring that our rates are competitive, and our product mix satisfies the needs of our customers. Additionally, the Bank also maintains interest rate swaps to hedge the cash flow risk associated with existing brokered CDs, and to mitigate the impact of higher deposit costs. Cost of funds decreased to 2.48%, compared to 2.66% for the fourth quarter of 2024, as a result of a $2.6 million decrease in interest paid on interest-bearing deposit accounts due to the Bank lowering rates in response to the Federal Reserve interest rate cuts in the third and fourth quarters of 2024. Asset Quality The total provision for credit losses, including provision for credit losses on off-balance sheet credit exposures, was $301 thousand for the three months ended March 31, 2025 , a decrease of $32 thousand compared to the provision for credit losses of $333 thousand for the three months ended December 31, 2024 , and a $1.2 million increase compared to the benefit for credit losses of $937 thousand for the three months ended March 31, 2024 . This decrease from the three months ended December 31, 2024 , was driven by decreases in loss rates across multiple segments of the portfolio, offset by increased reserves on individually evaluated loans. Net recoveries for the three months ended March 31, 2025 , were $3 thousand or less than 0.0001% of total average loans. The provision for credit losses on loans was $321 thousand for the three months ended March 31, 2025 , an increase of $940 thousand compared to the benefit for credit losses of $619 thousand for the three months ended March 31, 2024 . This increase for the three months ended March 31, 2025 , was primarily due to an increase in loss factors across certain portfolios. The benefit for credit losses on off-balance sheet credit exposures was $20 thousand for the three months ended March 31, 2025 . Allowance for credit losses - loans was 0.80%, 0.80%, and 0.78% of loans, net of unearned income at March 31, 2025 , December 31, 2024 , and March 31, 2024 , respectively. Total nonperforming assets were $25.4 million at March 31, 2025 , compared to nonperforming assets of $22.7 million and $15.5 million at December 31, 2024 , and March 31, 2024 , respectively. The increase during the first quarter of 2025 primarily related to the addition of three commercial loans with a combined balance of $7.0 million , partially offset by the payoff of two commercial loans with a combined balance of $3.0 million . Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.50% at March 31, 2025 , compared to 0.52% and 0.38% as of December 31, 2024 , and March 31, 2024 , respectively. Capital Shareholders’ equity increased $12.9 million , or 2.0%, from $655.0 million as of December 31, 2024 , to $667.9 million as of March 31, 2025 . Retained earnings increased $9.9 million , or 5.4%, from $181.6 million as of December 31, 2024 , to $191.5 million as of March 31, 2025 . Regulatory capital ratios for both Mid Penn and the Bank indicate regulatory capital levels in excess of both the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at March 31, 2025 . Additionally, Mid Penn declared $3.9 million in dividends during the first quarter of 2025. On April 23, 2025 , Mid Penn’s Board of Directors reauthorized its treasury stock repurchase program ("The Program") effective through April 30, 2026 . The Program authorizes the repurchase of up to $15.0 million of Mid Penn’s outstanding common stock. As of March 31, 2025 , Mid Penn repurchased a total of 440,722 shares of common stock at an average price of $22.78 per share under the Program. No shares were purchased in the first quarter of 2025. The Program had approximately $5.0 million remaining available for repurchase as of March 31, 2025 . Noninterest Income For the three months ended March 31, 2025 , noninterest income totaled $5.2 million , a decrease of $910 thousand , or 14.8%, compared to noninterest income of $6.1 million for the fourth quarter of 2024. The decrease is primarily due to a $717 thousand decrease in other miscellaneous noninterest income, driven by a $532 thousand decrease in Bank-owned life insurance benefits received, and $106 million decrease in insurance commissions. For the three months ended March 31, 2025 , noninterest income totaled $5.2 million , a decrease of $598 thousand , or 10.2%, compared to noninterest income of $5.8 million for the three months ended March 31, 2024 . The decrease in noninterest income is primarily driven by a $731 thousand decrease in other miscellaneous noninterest income, driven by a $1.4 million decrease in Bank-owned life insurance benefits received, partially offset by a $357 thousand increase in loan level swap fees, a $113 thousand increase in other letter of credit income, and a $167 thousand increase in Mortgage Banking income. Noninterest Expense Total noninterest expense decreased $272 thousand to $30.6 million in the first quarter of 2025 from $30.9 million in the fourth quarter of 2024. The decrease was driven by a $638 thousand decrease in salaries and employee benefits, driven by a decrease in bonuses paid, partially offset by a $514 thousand increase in shares tax. For the three months ended March 31, 2025 , noninterest expense totaled $30.6 million , an increase of $2.1 million , or 7.4%, compared to noninterest expense of $28.5 million for the three months ended March 31, 2024 . The increase was primarily driven by a $847 thousand increase in salaries and employee benefits, a $454 thousand increase in software licensing, a $314 thousand increase in merger and acquisition expenses, and a $292 thousand increase in occupancy expenses, partially offset by a $172 thousand decrease in legal and professional fees. The core efficiency ratio(1) was 62.8% in the first quarter of 2025, compared to 63.9% in the fourth quarter of 2024, and 68.8% in the first quarter of 2024. The change in the core efficiency ratio during the first quarter of 2025 compared to the fourth quarter of 2024 was the result of slightly higher net interest income, partially offset by lower noninterest income, and slightly lower noninterest expense. Mid Penn continues to evaluate levels of noninterest expense for opportunities to reduce operating costs throughout the organization. (1) Non-GAAP financial measure. Refer to the calculation in the section titled “Reconciliation of Non-GAAP Measures (Unaudited)” at the end of this document. Non-GAAP financial measure. Subsequent Events Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission (" SEC "). Accordingly, the financial information in this announcement is subject to change. The statements are valid only as of the date hereof and Mid Penn disclaims any obligation to update this information. On April 2, 2025 , Mid Penn and William Penn Bancorporation ("William Penn") announced that shareholders of both companies overwhelmingly approved Mid Penn's proposed acquisition of William Penn. The approvals were obtained at special meetings of shareholders held by each company on April 2, 2025 . SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn’s portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; results of the regulatory examination and supervision process and oversight, including changes in monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; the availability of financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank’s future businesses; material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements; the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement between Mid Penn and William Penn; the outcome of any legal proceedings that may be instituted against Mid Penn or William Penn; delays in completing the transaction; the failure to satisfy any of the other conditions to the transaction on a timely basis or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the possibility that the anticipated benefits of the transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in legacy Mid Penn and target markets; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; the ability to complete the integration of Mid Penn and William Penn successfully; the dilution caused by Mid Penn’s issuance of additional shares of its capital stock in connection with the transaction; and other factors that may affect the future results of Mid Penn or William Penn. For a more detailed description of these and other factors which would affect our results, please see Mid Penn’s filings with the SEC , including those risk factors identified in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the SEC . The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events, except as required by law. SUMMARY FINANCIAL HIGHLIGHTS (Unaudited): (Dollars in thousands, except per share data) Mar. 31 , 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30 , 2024 Mar. 31 , 2024 Ending Balances: Investment securities $ 634,044 $ 643,352 $ 642,291 $ 601,683 $ 615,061 Loans, net of unearned income 4,491,167 4,443,070 4,431,704 4,364,561 4,317,449 Total assets 5,546,026 5,470,936 5,527,025 5,391,749 5,330,379 Total deposits 4,732,202 4,689,927 4,706,764 4,497,011 4,379,105 Shareholders' equity 667,933 655,018 573,059 559,686 550,968 Average Balances: Investment securities 639,580 633,409 610,586 608,173 615,687 Loans, net of unearned income 4,459,679 4,441,436 4,405,969 4,353,360 4,293,828 Total assets 5,491,763 5,481,473 5,470,641 5,378,897 5,319,680 Total deposits 4,681,708 4,687,880 4,597,686 4,451,678 4,312,094 Shareholders' equity 660,964 623,670 565,300 553,675 546,001 Three Months Ended Income Statement: Mar. 31 , 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30 , 2024 Mar. 31 , 2024 Net interest income $ 42,509 $ 41,280 $ 40,169 $ 38,766 $ 36,456 Provision/(Benefit) for credit losses 301 333 516 1,604 (937 ) Noninterest income 5,239 6,149 5,178 5,329 5,837 Noninterest expense 30,642 30,913 29,959 28,224 28,520 Income before provision for income taxes 16,805 16,183 14,872 14,267 14,710 Provision for income taxes 3,063 2,951 2,571 2,496 2,577 Net income available to shareholders 13,742 13,232 12,301 11,771 12,133 Net income excluding non-recurring income and expenses (1) 13,907 12,961 12,383 11,284 10,673 Per Share: Basic earnings per common share $ 0.71 $ 0.72 $ 0.74 $ 0.71 $ 0.73 Diluted earnings per common share 0.71 0.72 0.74 0.71 0.73 Cash dividends declared 0.20 0.20 0.20 0.20 0.20 Book value per common share 34.50 33.84 34.48 33.76 33.26 Tangible book value per common share (1) 27.58 26.90 26.36 25.75 25.23 Asset Quality: Net (recoveries)/charge-offs to average loans (3) (0.0003 %) 0.037 % 0.031 % 0.002 % 0.004 % Non-performing loans to total loans 0.54 0.51 0.39 0.23 0.24 Non-performing asset to total loans and other real estate 0.57 0.51 0.40 0.24 0.36 Non-performing asset to total assets 0.46 0.41 0.32 0.19 0.29 ACL on loans to total loans 0.80 0.80 0.80 0.81 0.78 ACL on loans to nonperforming loans 149.05 157.07 204.61 352.92 322.69 Profitability: Return on average assets (3) 1.01 % 0.96 % 0.89 % 0.88 % 0.92 % Return on average equity (3) 8.43 8.44 8.66 8.55 8.94 Return on average tangible common equity (1) (3) 10.84 11.07 11.69 11.57 12.15 Tax-equivalent net interest margin 3.37 3.21 3.13 3.12 2.97 Efficiency ratio (1) 62.79 63.94 64.89 63.65 68.80 Capital Ratios: Tier 1 Capital (to Average Assets) (2) 10.2 % 10.0 % 8.4 % 8.4 % 8.3 % Common Tier 1 Capital (to Risk Weighted Assets) (2) 12.0 12.1 10.1 9.9 9.6 Tier 1 Capital (to Risk Weighted Assets) (2) 12.0 12.1 10.1 9.9 9.6 Total Capital (to Risk Weighted Assets) (2) 13.8 14.0 11.9 11.8 11.4 (1) Non-GAAP financial measure. Refer to the calculation in the section titled “Reconciliation of Non-GAAP Measures (Unaudited)” at the end of this document. (2) Regulatory capital ratios as of March 31, 2025 are preliminary and prior periods are actual. (3) Annualized ratio CONSOLIDATED BALANCE SHEETS (Unaudited): (In thousands, except share data) Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Mar. 31, 2024 ASSETS Cash and due from banks $ 47,688 $ 37,002 $ 57,518 $ 36,948 $ 33,362 Interest-bearing balances with other financial institutions 16,880 14,490 19,323 25,585 31,801 Federal funds sold 42,686 19,072 67,554 43,193 2,922 Total cash and cash equivalents 107,254 70,564 144,395 105,726 68,085 Investment Securities : Held to maturity, at amortized cost 375,115 382,447 386,618 393,320 396,998 Available for sale, at fair value 258,493 260,477 255,227 207,936 217,632 Equity securities available for sale, at fair value 436 428 446 427 431 Loans held for sale 6,851 7,064 7,919 8,420 4,581 Loans, net of unearned income 4,491,167 4,443,070 4,431,704 4,364,561 4,317,449 Less: Allowance for credit losses (35,838 ) (35,514 ) (35,562 ) (35,288 ) (33,524 ) Net loans 4,455,329 4,407,556 4,396,142 4,329,273 4,283,925 Premises and equipment, net 40,328 38,806 33,765 34,344 36,068 Operating lease right of use asset 9,402 7,699 7,390 7,925 8,414 Finance lease right of use asset 2,503 2,548 2,593 2,638 2,683 Cash surrender value of life insurance 51,351 51,521 53,135 53,298 52,997 Restricted investment in bank stocks 6,660 7,461 10,589 13,930 17,446 Accrued interest receivable 27,263 26,846 27,286 27,381 26,975 Deferred income taxes 21,800 22,747 23,197 24,520 22,894 Goodwill 128,160 128,160 128,160 127,031 127,031 Core deposit and other intangibles, net 5,814 6,242 6,713 5,626 6,051 Foreclosed assets held for sale 1,402 44 281 441 5,110 Other assets 47,865 50,326 43,169 49,513 53,058 Total Assets $ 5,546,026 $ 5,470,936 $ 5,527,025 $ 5,391,749 $ 5,330,379 LIABILITIES & SHAREHOLDERS’ EQUITY Deposits: Noninterest-bearing demand $ 788,316 $ 759,169 $ 791,980 $ 766,014 $ 807,861 Interest-bearing transaction accounts 2,375,205 2,319,753 2,288,783 2,194,948 2,082,846 Time 1,568,681 1,611,005 1,626,001 1,536,049 1,488,398 Total Deposits 4,732,202 4,689,927 4,706,764 4,497,011 4,379,105 Short-term borrowings 25,000 2,000 114,097 200,000 271,849 Long-term debt 23,489 23,603 23,716 23,827 23,941 Subordinated debt and trust preferred securities 45,587 45,741 45,894 46,047 46,201 Operating lease liability 9,765 8,092 7,778 8,344 8,683 Accrued interest payable 12,900 13,484 18,995 18,139 16,330 Other liabilities 29,150 33,071 36,722 38,695 33,302 Total Liabilities 4,878,093 4,815,918 4,953,966 4,832,063 4,779,411 Shareholders' Equity: Common stock, par value $1.00 per share; 40.0 million shares authorized 19,803 19,797 17,061 17,051 17,006 Additional paid-in capital 480,866 480,491 406,922 406,544 406,150 Retained earnings 191,469 181,597 172,234 163,256 154,801 Accumulated other comprehensive loss (14,163 ) (16,825 ) (13,116 ) (17,123 ) (16,947 ) Treasury stock (10,042 ) (10,042 ) (10,042 ) (10,042 ) (10,042 ) Total Shareholders’ Equity 667,933 655,018 573,059 559,686 550,968 Total Liabilities and Shareholders' Equity $ 5,546,026 $ 5,470,936 $ 5,527,025 $ 5,391,749 $ 5,330,379 CONSOLIDATED STATEMENTS OF INCOME (Unaudited): Three Months Ended (Dollars in thousands, except per share data) Mar. 31, 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30 , 2024 Mar. 31 , 2024 INTEREST INCOME Loans, including fees $ 66,537 $ 68,110 $ 68,080 $ 66,096 $ 63,236 Investment securities: Taxable 4,460 4,223 4,136 4,143 4,040 Tax-exempt 348 358 359 371 376 Other interest-bearing balances 138 154 223 347 403 Federal funds sold 261 467 1,043 282 136 Total Interest Income 71,744 73,312 73,841 71,239 68,191 INTEREST EXPENSE Deposits 28,264 30,836 30,689 28,463 26,332 Short-term borrowings 290 509 2,296 3,324 4,446 Long-term and subordinated debt 681 687 687 686 957 Total Interest Expense 29,235 32,032 33,672 32,473 31,735 Net Interest Income 42,509 41,280 40,169 38,766 36,456 Net provision/(Benefit) for credit losses 301 333 516 1,604 (937 ) Net Interest Income After Provision for Credit Losses 42,208 40,947 39,653 37,162 37,393 NONINTEREST INCOME Fiduciary and wealth management 1,140 1,215 1,204 1,129 1,132 ATM debit card interchange 919 971 962 973 945 Service charges on deposits 562 579 549 539 509 Mortgage banking 591 656 768 628 424 Mortgage hedging (9 ) 11 (1 ) — — Net gain on sales of SBA loans 57 15 151 74 107 Earnings from cash surrender value of life insurance 274 280 276 301 284 Other 1,705 2,422 1,269 1,685 2,436 Total Noninterest Income 5,239 6,149 5,178 5,329 5,837 NONINTEREST EXPENSE Salaries and employee benefits 16,309 16,947 16,156 15,533 15,462 Software licensing and utilization 2,574 2,606 2,366 2,208 2,120 Occupancy, net 2,274 1,913 1,815 1,861 1,982 Equipment 1,094 1,213 1,206 1,287 1,222 Shares tax 919 405 824 124 997 Legal and professional fees 826 1,006 1,613 689 998 ATM/card processing 733 634 606 510 534 Intangible amortization 428 471 460 425 428 FDIC Assessment 990 843 1,150 1,232 945 (Gain)/Loss on sale or write-down of foreclosed assets, net (28 ) 73 (35 ) 42 — Merger and acquisition 314 436 109 — — Other 4,209 4,366 3,689 4,313 3,832 Total Noninterest Expense 30,642 30,913 29,959 28,224 28,520 INCOME BEFORE PROVISION FOR INCOME TAXES 16,805 16,183 14,872 14,267 14,710 Provision for income taxes 3,063 2,951 2,571 2,496 2,577 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 13,742 $ 13,232 $ 12,301 $ 11,771 $ 12,133 PER COMMON SHARE DATA: Basic Earnings Per Common Share $ 0.71 $ 0.72 $ 0.74 $ 0.71 $ 0.73 Diluted Earnings Per Common Share 0.71 0.72 0.74 0.71 0.73 Cash Dividends Declared 0.20 0.20 0.20 0.20 0.20 CONSOLIDATED – AVERAGE BALANCE SHEET AND NET INTEREST INCOME ANALYSIS (Unaudited): Average Balances, Income and Interest Rates on a Taxable Equivalent Basis For the Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 (Dollars in thousands) Average Balance Interest Yield/ Rate(2) Average Balance Interest Yield/ Rate(2) Average Balance Interest Yield/ Rate(2) ASSETS: Interest Bearing Balances $ 20,794 $ 138 2.69 % $ 21,720 $ 154 2.82 % $ 39,999 $ 403 4.05 % Investment Securities : Taxable 569,800 4,309 3.07 561,809 4,071 2.88 539,674 3,800 2.83 Tax-Exempt 69,780 348 2.02 71,600 358 1.99 76,013 376 1.99 Total Securities 639,580 4,657 2.95 633,409 4,429 2.78 615,687 4,176 2.73 Federal Funds Sold 23,754 261 4.46 39,788 467 4.67 10,373 136 5.27 Loans, Net of Unearned Income 4,459,679 66,537 6.05 4,441,436 68,110 6.10 4,293,828 63,236 5.92 Restricted Investment in Bank Stocks 7,101 151 8.62 7,939 152 7.62 19,439 240 4.97 Total Earning Assets 5,150,908 71,744 5.65 5,144,292 73,312 5.67 4,979,326 68,191 5.51 Cash and Due from Banks 39,916 38,743 38,264 Other Assets 300,939 298,438 302,090 Total Assets $ 5,491,763 $ 5,481,473 $ 5,319,680 LIABILITIES & SHAREHOLDERS' EQUITY: Interest-bearing Demand $ 1,051,325 $ 4,681 1.81 % $ 1,067,744 $ 5,349 1.99 % $ 898,340 $ 3,884 1.74 % Money Market 1,024,669 6,941 2.75 946,689 6,920 2.91 876,242 5,968 2.74 Savings 260,965 54 0.08 261,450 57 0.09 287,765 72 0.10 Time 1,591,769 16,588 4.23 1,625,154 18,510 4.53 1,468,611 16,408 4.49 Total Interest-bearing Deposits 3,928,728 28,264 2.92 3,901,037 30,836 3.14 3,530,958 26,332 3.00 Short term borrowings 24,892 290 4.72 37,960 509 5.33 316,025 4,446 5.66 Long-term debt 23,533 257 4.43 23,645 262 4.41 40,571 533 5.28 Subordinated debt and trust preferred securities 45,662 424 3.77 45,815 425 3.69 46,275 424 3.69 Total Interest-bearing Liabilities 4,022,815 29,235 2.95 4,008,457 32,032 3.18 3,933,829 31,735 3.24 Noninterest-bearing Demand 752,980 786,843 781,136 Other Liabilities 55,004 62,503 58,714 Shareholders' Equity 660,964 623,670 546,001 Total Liabilities & Shareholders' Equity $ 5,491,763 $ 5,481,473 $ 5,319,680 Net Interest Income $ 42,509 $ 41,280 $ 36,456 Taxable Equivalent Adjustment (1) 242 252 260 Net Interest Income (taxable equivalent basis) $ 42,751 $ 41,532 $ 36,716 Total Yield on Earning Assets 5.65 % 5.67 % 5.51 % Cost of funds 2.48 % 2.66 % 2.71 % Rate on Supporting Liabilities 2.95 3.18 3.24 Average Interest Spread 2.70 2.49 2.27 Tax-Equivalent Net Interest Margin 3.37 3.21 2.97 (1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance. (2) Annualized ratios ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited): (Dollars in thousands) Mar. 31 , 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30 , 2024 Mar. 31 , 2024 Allowance for Credit Losses on Loans: Beginning balance $ 35,514 $ 35,562 $ 35,288 $ 33,524 $ 34,187 Loans Charged off Commercial real estate — — — — — Commercial and industrial — (407 ) (356 ) (56 ) — Construction — — — — — Residential mortgage — — — (2 ) (28 ) Consumer (15 ) (18 ) (8 ) (4 ) (22 ) Total loans charged off (15 ) (425 ) (364 ) (62 ) (50 ) Recoveries of loans previously charged off Commercial real estate 1 2 — 4 — Commercial and industrial 6 1 — — — Construction — — — — — Residential mortgage 2 7 2 29 — Consumer 9 7 15 11 6 Total recoveries 18 17 17 44 6 Balance before provision 35,517 35,154 34,941 33,506 34,143 Provision for credit losses - loans 321 360 621 1,782 (619 ) Balance, end of quarter $ 35,838 $ 35,514 $ 35,562 $ 35,288 $ 33,524 Nonperforming Assets Total nonaccrual loans $ 24,045 $ 22,610 $ 17,380 $ 9,999 $ 10,389 Foreclosed real estate 1,402 44 281 441 5,110 Total nonperforming assets 25,447 22,654 17,661 10,440 15,499 Accruing loans 90 days or more past due 3 — 1 — 25 Total risk elements $ 25,450 $ 22,654 $ 17,662 $ 10,440 $ 15,524 RECONCILIATION OF NON-GAAP MEASURES (Unaudited) Explanatory note: This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). Mid Penn’s management uses these non-GAAP financial measures in their analysis of Mid Penn’s performance. For tangible book value, the most directly comparable financial measure calculated in accordance with GAAP is book value. We believe that this measure is important to many investors in the marketplace who are interested in changes from period to period in book value per common share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing tangible book value. Income tax effects of non-GAAP adjustments are calculated using the applicable statutory tax rate for the jurisdictions in which the charges (benefits) are incurred, while taking into consideration any valuation allowances or non-deductible portions of the non-GAAP adjustments. Adjusted earnings per common share excludes from income available to common shareholders certain expenses related to significant non-core activities, including merger-related expenses, net of income taxes. For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity. The core efficiency ratio is often used by management to measure its noninterest expense as a percentage of its revenue. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Mid Penn’s results and financial condition as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. Management believes that this non-GAAP supplemental information will be helpful in understanding Mid Penn’s ongoing operating results. This supplemental presentation should not be construed as an inference that Mid Penn’s future results will be unaffected by similar adjustments to be determined in accordance with GAAP. The reconciliation of the non-GAAP to comparable GAAP financial measures can be found in the tables below. Tangible Book Value Per Common Share (Dollars in thousands, except per share data) Mar. 31 , 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30 , 2024 Mar. 31 , 2024 Shareholders' Equity $ 667,933 $ 655,018 $ 573,059 $ 559,686 $ 550,968 Less: Goodwill 128,160 128,160 128,160 127,031 127,031 Less: Core Deposit and Other Intangibles 5,814 6,242 6,713 5,626 6,051 Tangible Equity $ 533,959 $ 520,616 $ 438,186 $ 427,029 $ 417,886 Common Shares Outstanding 19,362,094 19,355,797 16,620,174 16,580,595 16,565,637 Tangible Book Value per Share $ 27.58 $ 26.90 $ 26.36 $ 25.75 $ 25.23 Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses Three Months Ended (Dollars in thousands, except per share data) Mar. 31 , 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30 , 2024 Mar. 31 , 2024 Net Income Available to Common Shareholders $ 13,742 $ 13,232 $ 12,301 $ 11,771 $ 12,133 Less: BOLI Death Benefit Income 83 615 4 487 1,460 Plus: Merger and Acquisition Expenses 314 436 109 — — Less: Tax Effect of Merger and Acquisition Expenses 66 92 23 — — Net Income Excluding Non-Recurring Income and Expenses $ 13,907 $ 12,961 $ 12,383 $ 11,284 $ 10,673 Weighted Average Shares Outstanding 19,355,867 18,338,224 16,612,657 16,576,283 16,567,902 Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses $ 0.72 $ 0.71 $ 0.75 $ 0.68 $ 0.64 Return on Average Tangible Common Equity Three Months Ended (Dollars in thousands) Mar. 31 , 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30 , 2024 Mar. 31 , 2024 Net income available to common shareholders $ 13,742 $ 13,232 $ 12,301 $ 11,771 $ 12,133 Plus: Intangible amortization, net of tax 338 372 363 336 338 14,080 13,604 12,664 12,107 12,471 Average shareholders' equity 660,964 623,670 565,300 553,675 546,001 Less: Average goodwill 128,160 128,160 127,773 127,031 127,031 Less: Average core deposit and other intangibles 6,023 6,468 6,424 5,833 6,259 Average tangible shareholders' equity $ 526,781 $ 489,042 $ 431,103 $ 420,811 $ 412,711 Return on average tangible common equity(1) 10.84 % 11.07 % 11.69 % 11.57 % 12.15 % (1) Annualized ratio Core Efficiency Ratio Three Months Ended (Dollars in thousands) Mar. 31 , 2025 Dec. 31 , 2024 Sep. 30 , 2024 Jun. 30, 2024 Mar. 31 , 2024 Noninterest expense $ 30,642 $ 30,913 $ 29,959 $ 28,224 $ 28,520 Less: Merger and acquisition expenses 314 436 109 — — Less: Intangible amortization 428 471 460 425 428 Less: (Gain) Loss on sale or write-down of foreclosed assets, net (28 ) 73 (35 ) 42 — Efficiency ratio numerator 29,928 29,933 29,425 27,757 28,092 Net interest income 42,509 41,280 40,169 38,766 36,456 Noninterest income 5,239 6,149 5,178 5,329 5,837 Less: BOLI Death Benefit 83 615 4 487 1,460 Efficiency ratio denominator $ 47,665 $ 46,814 $ 45,343 $ 43,608 $ 40,833 Core efficiency ratio 62.79 % 63.94 % 64.89 % 63.65 % 68.80 % View source version on businesswire.com : https://www.businesswire.com/news/home/20250423533348/en/ Mid Penn Bancorp, Inc. 1-866-642-7736 Rory G. Ritrievi Chair, President & Chief Executive Officer Justin T. Webb Chief Financial Officer Source: Mid Penn Bancorp

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