Key Highlights

  • Net income to common was USD 21.6 million, up 18.2% year over year.
  • Deposits grew USD 141.8 million, or 9.4% annualized.
  • Net interest Margin was 3.92%, down 14 basis points linked quarter.
  • The board declared the 64th consecutive quarterly Dividend of USD 0.23.

Earnings

Mid Penn Bancorp (NASDAQ:MPB) reported third-quarter 2026 results on Wednesday. Net Income available to common shareholders was USD 21.6 million, or USD 0.84 per diluted share and USD 0.85 per basic share, against USD 18.3 million, or USD 0.79 diluted, a year earlier. Adjusted Earnings per share, which exclude USD 1.3 million of non-recurring expense and USD 789 thousand of non-recurring income, were USD 0.88.

Net income rose USD 3.3 million, or 18.2%, from a year earlier, which the company tied to the William Penn and 1st Colonial acquisitions. It fell USD 66 thousand, or 0.3%, from the second quarter.

Net Interest Income and Margin

Net interest income was USD 64.6 million against USD 65.3 million in the second quarter and USD 53.6 million a year earlier. It included USD 3.1 million of accretion on acquired loans. For the nine months, net interest income rose 28.3% to USD 185.2 million from USD 144.3 million, with Loan interest income up USD 38.8 million and securities interest income up USD 6.4 million.

The tax-equivalent margin was 3.92%, down 14 basis points from 4.06% in the second quarter and up 32 basis points from 3.60% a year earlier. About 8 basis points of the linked quarter decline came from purchase accounting, including a USD 1.0 million lower accretion, and the rest from higher funding costs, partly offset by higher securities yields. The Yield on earning Assets was 5.89% against 5.99%.

Loans, Deposits and Efficiency

Loans rose USD 19.3 million, or 1.4% annualized, in the quarter. Total loans rose USD 815.3 million, or 16.9%, from a year earlier to USD 5.6 billion. Excluding USD 597.5 million acquired from 1st Colonial, organic loan growth was USD 176.2 million, or 4.84% annualized, since Dec. 31.

Deposits rose USD 141.8 million, or 9.4% annualized, driven by a USD 251.8 million rise in interest-bearing transaction accounts, offset by a USD 59.9 million decline in time deposits and a USD 50.1 million decline in noninterest-bearing deposits. Total deposits rose USD 752.3 million, or 14.1%, from a year earlier to USD 6.1 billion. Excluding USD 747.1 million from 1st Colonial, organic deposits rose USD 133.3 million, or 3.4% annualized, since Dec. 31.

The core efficiency ratio was 60.57% against 59.82% in the second quarter and 58.80% a year earlier, or 60.38% on a tax-effected basis. Mid Penn closed certain financial centers to improve operating efficiency, and the company cited an anticipated earnback period of under one year on those closures.

Capital and Dividend

Book value per common share was unchanged at USD 35.62, against USD 34.56 a year earlier. Tangible Book Value per share was USD 28.26, against USD 28.18 in June and USD 27.96 a year earlier. The board declared a dividend of USD 0.23 per share, payable Nov. 13 to holders of record on Nov. 2.

Chair, President and Chief Executive Officer Rory Ritrievi said deposit growth was partly offset by softer loan growth and noninterest income than planned, and that effective expense management and asset quality kept results in line with plans. He said management remains confident in improvement in both loan growth and noninterest income as the fourth quarter begins.

Figures to Follow

Net income rose 18.2% from a year earlier on loans that are 16.9% higher, while the margin is 32 basis points higher year over year. Net interest income was down USD 0.7 million from the second quarter. Reference points include organic loan growth of 4.84% annualized, the margin after the 14 basis point decline, the core efficiency ratio at 60.57%, and noninterest income.