Mid Penn Bancorp, Inc. Reports Third Quarter Earnings and Declares 64th Consecutive Quarterly Dividend

Mid Penn Bancorp, Inc. Reports Third Quarter Earnings and Declares 64th Consecutive Quarterly Dividend 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") of $21.6 million, or $0.85 per basic common share and $0.84 per diluted common share, for the quarter ended September 30, 2026, compared to $18.3 million, or $0.80 per basic and $0.79 per diluted common share, for the third quarter of 2025. Adjusted earnings per common share, excluding non-recurring income and expenses (1), was $0.88 for the third quarter of 2026. Adjustments exclude $1.3 million of non-recurring expense, and $789 thousand of non-recurring income. Mid Penn also declared a quarterly cash dividend of $0.23 per common share.

Key Highlights of the Third Quarter of 2026:

(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:

“The third quarter of 2026 was a solid quarter for Mid Penn. Strong deposit growth was partially offset by softer-than-expected loan growth and noninterest income generation. Effective expense management and continued strong asset quality helped keep overall results in line with our expectations.

As we enter the fourth quarter, we remain confident that both loan growth and noninterest income performance will improve, positioning us well through the end of 2026 and for continued success in 2027.

Based upon the overall financial success in the third quarter and year to date, we are pleased to declare a quarterly cash dividend of $0.23 per common share to our shareholders of record as of November 2, 2026."

Net Interest Income

For the three months ended September 30, 2026, net interest income was $64.6 million, compared to net interest income of $65.3 million for the three months ended June 30, 2026, and $53.6 million for the three months ended September 30, 2025. Interest income for the quarter ended September 30, 2026 includes $3.1 million of loan accretion income related to fair value marks on acquired loans, which are accreted into interest income over the expected life of the assets.

The tax-equivalent net interest margin (1) for the three months ended September 30, 2026 was 3.92% compared to 4.06% for the second quarter of 2026, and 3.60% for the third quarter of 2025. The 14 bp decrease from the linked-quarter was partially attributable to the overall impact of purchase accounting adjustments, which contributed approximately 8 bps of the decline. The remaining decrease was primarily attributable to higher funding costs, partially offset by higher investment securities yields. Compared to the third quarter of 2025, net interest margin increased 32 bps from 3.60%, primarily driven by higher investment securities yields, and lower funding costs.

The yield on interest-earning assets decreased to 5.89% for the quarter ended September 30, 2026, from 5.99%, and increased from 5.81%, for the three months ended June 30, 2026, and September 30, 2025, respectively. The decrease from the second quarter of 2026 reflected lower yields on loans including the impact of reduced purchase accounting accretion income, partially offset by higher yields on investment securities.

For the nine months ended September 30, 2026, net interest income increased 28.3% to $185.2 million compared to net interest income of $144.3 million for the same period of 2025. The increase was primarily driven by a $38.8 million increase in interest income on loans and a $6.4 million increase in interest income on investment securities, compared to the same period in 2025.

Average Balances

Average balances continue to be impacted by the 1st Colonial acquisition given that the acquisition closed on February 27, 2026. Day one increases in loans, total assets, deposits, and total liabilities were $581.8 million, $842.5 million, $746.9 million and $751.7 million, respectively.

Average loans increased $35.9 million to $5.6 billion for the quarter ended September 30, 2026, compared to $5.6 billion for the quarter ended June 30, 2026, and increased $819.8 million compared to $4.8 billion for the quarter ended September 30, 2025.

Average deposits were $6.0 billion for the third quarter of 2026, an increase of $84.3 million, or 1.4%, from $5.9 billion in the second quarter of 2026 and an increase of $555.7 million, or 10.2%, from $5.5 billion for the third quarter of 2025, primarily due to the 1st Colonial and William Penn acquisitions, and organic growth. The average cost of deposits was 2.11% for the third quarter of 2026, representing a 4 bp increase from the second quarter of 2026, and a 26 bp decrease from the third quarter of 2025.

Cost of funds increased to 2.14%, compared to 2.09% in the second quarter of 2026, primarily reflecting higher costs on interest-bearing deposits.

Asset Quality

The total benefit for credit losses, including the benefit for credit losses on off-balance sheet credit exposures, was $1.6 million for the three months ended September 30, 2026, compared to the provision for credit losses of $528 thousand for the three months ended June 30, 2026, and a benefit for credit losses of $434 thousand for the three months ended September 30, 2025. The quarter-over-quarter change in the benefit for credit losses was primarily driven by improved macroeconomic assumptions, including more favorable forecasts for both unemployment and GDP, as well as an increase in loan prepayment speeds, partially offset by an increase in reserve on three individually analyzed C&I loans. Credit quality remained stable during the quarter, supported by minimal net charge-offs and continued disciplined credit risk management. Net charge-offs for the three months ended September 30, 2026, were $78 thousand, or approximately 0.001% of total average loans.

The provision for credit losses on loans was $887 thousand for the nine months ended September 30, 2026, a decrease of $1.5 million compared to the provision for credit losses of $2.4 million for the nine months ended September 30, 2025. The decrease for the nine months ended September 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by increases from qualitative adjustments to several segments of the portfolio. The benefit for credit losses on off-balance sheet credit exposures was $243 thousand for the three months ended September 30, 2026, compared to the benefit of $247 thousand for the three months ended September 30, 2025. The benefit for credit losses on off-balance sheet credit exposures was $326 thousand for the nine months ended September 30, 2026, compared to the benefit of $243 thousand for the nine months ended September 30, 2025.

Allowance for credit losses on loans was 0.71%, 0.74%, and 0.77% of loans, net of unearned income at September 30, 2026, June 30, 2026, and September 30, 2025, respectively.

Total nonperforming assets were $47.0 million at September 30, 2026, compared to nonperforming assets of $36.8 million at June 30, 2026, and $27.3 million at September 30, 2025. The increase during the third quarter of 2026 was primarily driven by an $8.2 million increase in nonaccrual loans, including $7.0 million in commercial real estate loans, and a $1.9 million increase in foreclosed owner-occupied commercial real estate.

Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.73% at September 30, 2026, compared to 0.71% and 0.68% at June 30, 2026 and September 30, 2025, respectively.

Capital

Shareholders’ equity increased $732 thousand, or 0.1%, to $902.6 million as of September 30, 2026, from $901.9 million as of June 30, 2026. Retained earnings increased $15.8 million, or 6.6%, from $238.2 million as of June 30, 2026 to $254.0 million as of September 30, 2026. Regulatory capital ratios for Mid Penn and the Bank indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at September 30, 2026. Additionally, Mid Penn declared $5.8 million in dividends during the third quarter of 2026.

On April 21, 2026, Mid Penn’s Board of Directors authorized a renewal and increase to its treasury stock repurchase program ("the Program"), increasing the authorized repurchase amount to an additional $50.0 million of Mid Penn’s outstanding common stock through April 30, 2027. No shares were repurchased during the third quarter of 2026. As of September 30, 2026, Mid Penn repurchased a total of 595,891 shares of common stock at an average price of $24.82 per share under the Program.

Noninterest Income

For the three months ended September 30, 2026, noninterest income totaled $10.0 million, a decrease of $548 thousand, or 5.2%, from $10.6 million for the second quarter of 2026. The decrease was primarily driven by a $225 thousand decrease in earnings from the cash surrender value of life insurance, and a $437 thousand decrease in other noninterest income, including a $406 thousand decrease in loan-level swap fees. These decreases were partially offset by a $415 thousand increase from the release of a contingent liability generated from a previous acquisition, and a $332 thousand increase from acquisition related lease adjustments. Additionally, there was a $537 thousand increase in loss on disposal of fixed assets.

For the nine months ended September 30, 2026, noninterest income totaled $30.2 million, an increase of $10.7 million, or 54.5%, compared to noninterest income of $19.6 million for the nine months ended September 30, 2025. The increase was primarily driven by a $7.6 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $1.2 million increase in earnings from the cash surrender value of life insurance, a $485 thousand increase on ATM debit card interchange fees, and a $645 thousand increase in other noninterest income, including a $680 thousand increase in insurance commissions.

Noninterest Expense

For the three months ended September 30, 2026, noninterest expense totaled $48.6 million, an increase of $823 thousand, or 1.7%, compared to $47.8 million in the second quarter of 2026. The increase was primarily driven by a $436 thousand increase in the write-down on other real estate owned property, and an $809 thousand increase in other noninterest expense, including a $687 thousand increase in expenses relate to branch optimization. These increases were partially offset by a $446 thousand decrease in salaries and employee benefits.

For the nine months ended September 30, 2026, noninterest expense totaled $148.3 million, an increase of $31.9 million, or 27.4%, compared to $116.4 million for the nine months ended September 30, 2025. The increase was primarily driven by a $18.8 million increase in salaries and benefits, reflecting additional staff from the 1st Colonial, Cumberland Advisors, and William Penn acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $2.8 million, $1.8 million, and $2.7 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Intangible amortization also increased $2.7 million. These increases were partially offset by a $3.7 million decrease in merger and acquisition expenses compared to the same period of 2025.

The core efficiency ratio (1) remained relatively stable at 60.57% for the third quarter of 2026, compared to 59.82% for the second quarter of 2026 and 58.80% for the third quarter of 2025, reflecting continued expense discipline following the 1st Colonial and William Penn acquisitions.

(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.

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 possibility that the anticipated benefits of a 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 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 a transaction; the ability to complete the integration of Mid Penn and its target successfully; the dilution caused by Mid Penn’s issuance of additional shares of its capital stock in connection with a transaction; and other factors that may affect the future results of Mid 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, 2025 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)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Ending Balances:

Investment securities

841,612

878,026

830,499

769,045

781,888

Loans, net of unearned income

5,636,482

5,617,169

5,509,940

4,862,838

4,821,134

Total assets

7,140,000

7,062,910

6,964,809

6,133,896

6,267,349

Total deposits

6,095,051

5,953,297

5,970,967

5,214,663

5,342,720

Shareholders' equity

902,639

901,907

887,405

814,058

796,323

Average Balances:

Investment securities

865,227

843,317

783,768

774,962

782,020

Loans, net of unearned income

5,623,990

5,588,129

5,083,240

4,844,308

4,804,163

Total assets

7,088,936

6,996,021

6,393,011

6,202,310

6,385,751

Total deposits

6,023,820

5,939,499

5,393,592

5,290,598

5,468,144

Shareholders' equity

904,814

892,092

845,553

803,093

783,547

Three Months Ended

Income Statement:

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Net interest income

64,640

65,280

55,250

54,751

53,629

(Benefit)/provision for credit losses

(1,561

)

528

1,594

(839

)

(434

)

Noninterest income

10,038

10,586

9,604

7,277

8,183

Noninterest expense

48,590

47,767

51,959

35,848

37,982

Income before provision for income taxes

27,649

27,571

11,301

27,019

24,264

Provision for income taxes

6,024

5,880

2,595

7,572

5,967

Net income available to shareholders

21,625

21,691

8,706

19,447

18,297

Net income excluding non-recurring income and expenses (1)

22,207

22,019

15,294

19,224

17,772

Per Share:

Basic earnings per common share

0.85

0.86

0.36

0.84

0.80

Diluted earnings per common share

0.84

0.85

0.36

0.83

0.79

Cash dividends declared

0.23

0.22

0.20

Book value per common share

35.62

35.08

35.32

34.56

Tangible book value per common share (1)

28.26

28.18

27.56

28.76

27.96

Asset Quality:

Net charge-offs to average loans (3)

0.006

0.002

0.084

0.038

0.008

Non-performing loans to total loans

0.65

0.51

0.54

0.47

0.37

Non-performing asset to total loans and other real estate

0.83

0.65

0.69

0.63

0.57

Non-performing asset to total assets

0.66

0.52

0.55

0.50

0.44

ACL on loans to total loans

0.71

0.74

0.75

0.74

0.77

ACL on loans to nonperforming loans

109.81

146.52

138.68

157.25

207.92

Profitability:

Return on average assets (3)

1.21

1.24

0.55

1.24

1.14

Return on average equity (3)

9.48

9.75

4.18

9.61

9.26

Return on average tangible common equity (1) (3)

12.71

13.20

5.82

12.29

11.95

Tax-equivalent net interest margin

3.92

4.06

3.80

3.79

3.60

Core Efficiency ratio (1)

60.57

59.82

63.52

55.26

58.80

Capital Ratios:

Tier 1 Capital (to Average Assets) (2)

10.8

10.7

11.4

11.0

10.4

Common Tier 1 Capital (to Risk Weighted Assets) (2)

13.1

12.8

13.5

13.9

Tier 1 Capital (to Risk Weighted Assets) (2)

13.1

12.8

13.5

13.9

Total Capital (to Risk Weighted Assets) (2)

13.8

13.5

13.6

14.3

15.5

(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 September 30, 2026 are preliminary estimates while prior period ratios are actual.

(3)

Annualized ratio

CONSOLIDATED BALANCE SHEETS (Unaudited):

(Dollars in thousands, except share data)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

ASSETS

Cash and due from banks

58,237

55,168

60,967

46,695

18,013

Interest-bearing balances with other financial institutions

18,630

15,367

19,383

29,178

24,736

Federal funds sold

92,241

16,111

60,840

23,045

214,420

Total cash and cash equivalents

169,108

86,646

141,190

98,918

257,169

Investment Securities:

Held to maturity, at amortized cost

365,680

372,866

340,957

347,285

354,094

Available for sale, at fair value

470,757

499,773

484,130

416,314

427,352

Equity securities available for sale, at fair value

5,175

5,387

5,412

5,446

442

Loans held for sale

20,215

16,595

16,554

3,668

6,085

Loans, net of unearned income

5,636,482

5,617,169

5,509,940

4,862,838

4,821,134

Less: Allowance for credit losses

(40,244

)

(41,640

)

(41,105

)

(36,091

)

(37,337

)

Net loans

5,596,238

5,575,529

5,468,835

4,826,747

4,783,797

Premises and equipment, net

47,161

49,236

49,611

48,742

48,491

Operating lease right of use asset

14,903

15,872

16,803

15,169

15,700

Finance lease right of use asset

2,233

2,278

2,323

2,368

2,413

Cash surrender value of life insurance

118,330

117,515

116,474

95,351

95,015

Restricted investment in bank stocks

11,805

15,720

10,081

7,576

6,737

Accrued interest receivable

34,620

33,391

32,958

29,640

29,705

Deferred income taxes

27,418

23,227

23,798

21,416

27,475

Goodwill

157,121

136,620

Core deposit and other intangibles, net

29,465

31,173

33,013

14,657

15,586

Foreclosed assets held for sale

10,321

8,390

8,420

7,806

9,346

Other assets

59,450

52,191

57,129

56,173

51,322

Total Assets

7,140,000

7,062,910

6,964,809

6,133,896

6,267,349

LIABILITIES & SHAREHOLDERS’ EQUITY

Deposits:

Noninterest-bearing demand

923,275

973,371

933,497

834,013

836,374

Interest-bearing transaction accounts

3,551,344

3,299,576

3,357,497

2,829,175

2,852,361

Time

1,620,432

1,680,350

1,679,973

1,551,475

1,653,985

Total Deposits

6,095,051

5,953,297

5,970,967

5,214,663

5,342,720

Short-term borrowings

68,000

137,500

31,500

20,833

—

Long-term debt

2,808

2,902

3,021

23,139

23,258

Subordinated debt and trust preferred securities

—

37,149

Operating lease liability

15,367

16,275

17,186

15,405

15,973

Accrued interest payable

13,025

12,175

12,195

10,942

16,460

Other liabilities

43,110

38,854

42,535

34,856

35,466

Total Liabilities

6,237,361

6,161,003

6,077,404

5,319,838

5,471,026

Shareholders' Equity:

Common stock, par value $1.00 per share; 40.0 million shares

25,948

25,924

25,817

23,567

23,551

Additional paid-in capital

663,367

661,903

659,883

589,421

588,405

Retained earnings

254,017

238,224

222,154

219,685

205,320

Accumulated other comprehensive loss

(25,691

)

(9,142

)

(8,157

)

(6,323

)

(8,907

)

Treasury stock

(15,002

)

(15,002

)

(12,292

)

(12,292

)

(12,046

)

Total Shareholders’ Equity

902,639

901,907

887,405

814,058

796,323

Total Liabilities and Shareholders' Equity

7,140,000

7,062,910

6,964,809

6,133,896

6,267,349

CONSOLIDATED STATEMENTS OF INCOME (Unaudited):

Three Months Ended

(Dollars in thousands, except per share data)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

INTEREST INCOME

Loans, including fees

88,685

88,574

76,798

76,916

76,262

Investment securities:

Taxable

8,047

7,558

6,501

6,590

6,614

Tax-exempt

277

284

297

320

331

Other interest-bearing balances

107

117

110

135

196

Federal funds sold

466

159

220

1,179

3,463

Total Interest Income

97,582

96,692

83,926

85,140

86,866

INTEREST EXPENSE

Deposits

32,031

30,619

27,848

29,930

32,631

Short-term borrowings

884

764

702

—

Long-term and subordinated debt

126

454

606

Total Interest Expense

32,942

31,412

28,676

30,389

33,237

Net Interest Income

64,640

65,280

55,250

54,751

53,629

Net (benefit)/provision for credit losses

(1,561

)

528

1,594

(839

)

(434

)

Net Interest Income After (Benefit)/Provision for Credit Losses

66,201

64,752

53,656

55,590

54,063

NONINTEREST INCOME

Fiduciary and wealth management

3,908

3,891

3,661

1,412

1,340

ATM debit card interchange

1,177

1,169

1,035

1,053

1,019

Service charges on deposits

707

632

636

634

647

Mortgage banking

1,159

1,119

314

552

1,013

Mortgage hedging

100

113

(22

)

Net gain on sales of SBA loans

163

100

—

Earnings from cash surrender value of life insurance

816

1,041

705

609

605

Net gain on sales of investment securities

—

Other

2,157

2,594

3,009

2,929

3,509

Total Noninterest Income

10,038

10,586

9,604

7,277

8,183

NONINTEREST EXPENSE

Salaries and employee benefits

26,499

26,945

23,346

20,026

20,941

Software licensing and utilization

4,159

4,155

3,598

3,406

3,310

Occupancy, net

2,964

2,891

3,253

2,624

2,642

Equipment

1,758

1,684

1,553

1,435

1,248

Shares tax

1,109

822

964

245

1,006

Legal and professional fees

1,710

2,157

1,688

992

1,070

ATM/card processing

771

689

757

771

557

Intangible amortization

1,708

1,819

1,300

930

944

FDIC assessment

785

663

800

1,046

422

Loss on sale or write-down of foreclosed assets, net

440

491

203

471

Merger and acquisition (1)

103

7,723

(39

)

233

Other

6,644

5,835

6,486

4,209

5,138

Total Noninterest Expense

48,590

47,767

51,959

35,848

37,982

INCOME BEFORE PROVISION FOR INCOME TAXES

27,649

27,571

11,301

27,019

24,264

Provision for income taxes

6,024

5,880

2,595

7,572

5,967

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS

21,625

21,691

8,706

19,447

18,297

PER COMMON SHARE DATA:

Basic Earnings Per Common Share

0.85

0.86

0.36

0.84

0.80

Diluted Earnings Per Common Share

0.84

0.85

0.36

0.83

0.79

Cash Dividends Declared

0.23

0.22

0.20

(1)

Includes release of merger and acquisition accruals related to the William Penn acquisition in the fourth quarter of 2025.

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

September 30, 2026

June 30, 2026

September 30, 2025

(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

18,101

107

2.35

19,067

117

2.46

26,950

196

2.89

Investment Securities:

Taxable

811,062

7,835

3.83

787,477

7,213

3.67

716,356

6,502

3.60

Tax-Exempt

54,165

277

2.03

55,840

284

2.04

65,664

331

2.00

Total Securities

865,227

8,112

3.72

843,317

7,497

3.57

782,020

6,833

3.47

Federal Funds Sold

49,000

466

3.77

13,686

129

3.78

310,525

3,463

4.42

Loans, Net of Unearned Income

5,623,990

88,685

6.26

5,588,129

88,574

6.36

4,804,163

76,262

6.30

Restricted Investment in Bank Stocks

13,066

212

6.44

12,292

345

11.26

7,143

112

6.22

Total Earning Assets

6,569,384

97,582

5.89

6,476,491

96,662

5.99

5,930,801

86,866

5.81

Cash and Due from Banks

53,451

53,422

49,582

Other Assets

466,101

466,108

405,368

Total Assets

7,088,936

6,996,021

6,385,751

LIABILITIES & SHAREHOLDERS' EQUITY:

Interest-bearing Demand

1,718,281

7,561

1.75

1,660,007

6,712

1.62

1,268,802

5,736

1.79

Money Market

1,297,153

8,427

2.58

1,243,822

7,838

2.53

1,238,470

9,046

2.90

Savings

420,915

685

0.65

433,917

711

0.66

333,545

0.08

Time

1,659,781

15,358

3.67

1,668,054

15,358

3.69

1,774,625

17,785

3.98

Total Interest-bearing Deposits

5,096,130

32,031

2.49

5,005,800

30,619

2.45

4,615,442

32,631

2.80

Short term borrowings

88,756

884

3.95

79,875

764

3.84

—

Long-term debt

2,839

3.77

2,886

4.03

23,302

264

4.49

Subordinated debt and trust preferred securities

—

37,224

342

3.65

Total Interest-bearing Liabilities

5,187,725

32,942

2.52

5,088,561

31,412

2.48

4,675,969

33,237

2.82

Noninterest-bearing Demand

927,690

933,699

852,702

Other Liabilities

68,707

81,669

73,533

Shareholders' Equity

904,814

892,092

783,547

Total Liabilities & Shareholders' Equity

7,088,936

6,996,021

6,385,751

Net Interest Income

64,640

65,250

53,629

Taxable Equivalent Adjustment (1)

235

231

245

Net Interest Income (taxable equivalent basis)

64,875

65,481

53,874

Total Yield on Earning Assets

5.89

5.99

5.81

Cost of funds

2.14

2.09

2.39

Rate on Supporting Liabilities

2.52

2.48

2.82

Average Interest Spread

3.37

3.51

2.99

Tax-Equivalent Net Interest Margin

3.92

4.06

3.60

(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)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Allowance for Credit Losses on Loans:

Beginning balance

41,640

41,105

36,091

37,337

37,615

Allowance for credit losses on loans acquired

—

4,415

—

Loans Charged off

Commercial real estate

CRE Nonowner Occupied

—

)

(499

)

(394

)

—

CRE Owner Occupied

—

(346

)

—

Multifamily

—

Farmland

—

Commercial and industrial

—

(91

)

Construction

Residential Construction

—

Other Construction

—

Residential mortgage

1-4 Family 1st Lien

(16

)

—

1-4 Family Rental

—

(13

)

—

HELOC and Junior Liens

(53

)

(48

)

—

Consumer

(21

)

(11

)

(641

)

(28

)

(40

)

Total loans charged off

(90

)

(61

)

(1,153

)

(768

)

(131

)

Recoveries of loans previously charged off

Commercial real estate

CRE Nonowner Occupied

—

294

CRE Owner Occupied

—

Multifamily

—

Farmland

—

Commercial and industrial (1)

)

—

Construction

Residential Construction

—

Other Construction

—

Residential mortgage

1-4 Family 1st Lien

1-4 Family Rental

—

HELOC and Junior Liens

—

Consumer

Total loans recovered

104

303

Balance before provision

41,562

41,083

39,457

36,872

37,524

(Benefit)/provision for credit losses - loans

(1,318

)

557

1,648

(781

)

(187

)

Balance, end of quarter

40,244

41,640

41,105

36,091

37,337

Nonperforming Assets

Total nonaccrual loans

36,650

28,420

29,641

22,951

17,957

Foreclosed real estate

10,321

8,390

8,420

7,806

9,346

Total nonperforming assets

46,971

36,810

38,061

30,757

27,303

Accruing loans 90 days or more past due

—

213

—

160

Total risk elements

46,971

37,023

38,061

30,757

27,463

(1)

Commercial and industrial recoveries for the three months ended September 30, 2026 include an adjustment related to recoveries on loans acquired in the 1st Colonial acquisition.

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 financial measures to the most directly comparable GAAP financial measures can be found in the tables below.

Tangible Book Value Per Common Share

(Dollars in thousands, except per share data)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Shareholders' Equity

902,639

901,907

887,405

814,058

796,323

Less: Goodwill

157,121

136,620

Less: Core Deposit and Other Intangibles

29,465

31,173

33,013

14,657

15,586

Tangible Equity

716,053

713,613

697,271

662,781

644,117

Common Shares Outstanding

25,342,443

25,320,686

25,296,763

23,047,203

23,039,223

Tangible Book Value per Share

28.26

28.18

27.56

28.76

27.96

Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses

Three Months Ended

(Dollars in thousands, except per share data)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Net Income Available to Common Shareholders

21,625

21,691

8,706

19,447

18,297

Less: BOLI Death Benefit Income

—

331

223

Less: Recoveries on loans previously acquired in business combinations (1)

—

534

Less: Swap cancellation gain

—

279

Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution

—

420

Less: Gain on sale of pension assets

—

192

—

Less: Lease adjustments related to branch optimization

332

—

Less: Gain on sale of legacy bank facility

—

Less: Release of contingent liability

415

—

Plus: Merger and Acquisition Expenses (2)

103

7,723

(39

)

233

Plus: Compensation expense for accelerated vesting of stock options and restricted stock awards

277

314

370

314

753

Plus: Legal settlement expense

—

665

—

Plus: Branch optimization and consolidation costs

687

—

Plus: Millersburg building reconstruction costs

352

—

Less: Tax Effect of Non-Recurring Expenses

(11

)

1,839

—

207

Net Income Excluding Non-Recurring Income and Expenses

22,207

22,019

15,294

19,224

17,772

Weighted-average Shares Outstanding

25,333,652

25,330,234

23,949,008

23,045,983

23,005,504

Adjusted Earnings Per Common Share Excluding Non-Recurring Income and Expenses

0.88

0.87

0.64

0.83

0.77

(1)

These recoveries are recognized in noninterest income rather than a reduction to the allowance for credit losses, consistent with purchase accounting treatment, as expected credit losses on acquired loans were reflected in fair value adjustments at the acquisition date.

(2)

Includes release of merger and acquisition accruals related to William Penn acquisition in Q4 2025.

Return on Average Tangible Common Equity

Three Months Ended

(Dollars in thousands)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Net income available to common shareholders

21,625

21,691

8,706

19,447

18,297

Plus: Intangible amortization, net of tax

1,349

1,437

1,027

735

746

22,974

23,128

9,733

20,182

19,043

Average shareholders' equity

904,814

892,092

845,553

803,093

783,547

Less: Average goodwill

157,121

147,021

136,620

135,486

Less: Average core deposit and other intangibles

30,283

32,105

20,835

14,969

16,003

Average tangible common shareholders' equity

717,410

702,866

677,697

651,504

632,058

Return on average tangible common equity (1)

12.71

13.20

5.82

12.29

11.95

(1)

Annualized ratio

Core Efficiency Ratio (Non-GAAP)

Three Months Ended

(Dollars in thousands)

Sep. 30,

2026

Jun. 30,

2026

Mar. 31,

2026

Dec. 31,

2025

Sep. 30,

2025

Noninterest expense

48,590

47,767

51,959

35,848

37,982

Less: Merger and acquisition expenses (1)

103

7,723

(39

)

233

Less: Compensation expense for accelerated vesting of stock options and restricted stock awards

277

314

370

314

753

Less: Intangible amortization

1,708

1,819

1,300

930

944

Less: Loss on sale or write-down of foreclosed assets, net

440

491

203

471

Less: Other expenses on foreclosed assets

326

142

427

445

—

Less: Legal settlement expense

—

665

—

Less: Branch optimization and consolidation costs

687

—

Less: Millersburg building reconstruction costs

352

—

Efficiency ratio numerator

44,757

45,385

40,983

33,995

35,581

Net interest income

64,640

65,280

55,250

54,751

53,629

Noninterest income

10,038

10,586

9,604

7,277

8,183

Less: BOLI Death Benefit

—

331

223

Less: Recoveries on loans previously acquired in business combinations (2)

—

534

Less: Swap cancellation gain

—

279

Less: Gain on the closing of an investment of a reinsurance entity acquired from another institution

—

420

Less: Lease adjustments related to branch optimization

332

—

Less: Gain on sale of legacy bank facility

—

192

—

Less: Release of contingent liability

415

Less: Net gain on sales of investment securities

—

Efficiency ratio denominator

73,889

75,865

64,523

61,520

60,508

Core efficiency ratio

60.57

59.82

63.52

55.26

58.80

Tax effect on non-GAAP adjustments (3)

235

231

236

243

245

Tax-effected core efficiency ratio

60.38

59.64

63.29

55.04

58.57

(1)

Includes release of merger and acquisition accruals related to the William Penn acquisition in Q4 2025.

(2)

(3)

Tax-effected using a 21% statutory federal tax rate.