Mid Penn Bancorp INC 10-Q Filing

Ticker: MPB · Form: 10-Q · Filed: May 8, 2024 · CIK: 879635

Mid Penn Bancorp INC 10-Q Filing Summary
FieldDetail
CompanyMid Penn Bancorp INC (MPB)
Form Type10-Q
Filed DateMay 8, 2024
Pages15
Reading Time18 min
Key Dollar Amounts$1.00
Sentimentneutral

Sentiment: neutral

FAQ

What type of filing is this?

This is a 10-Q filing submitted by Mid Penn Bancorp INC (ticker: MPB) to the SEC on May 8, 2024.

What are the key financial figures in this filing?

Key dollar amounts include: $1.00 (ange on which registered Common Stock, $1.00 par value per share MPB The NASDAQ Stoc).

How long is this filing?

Mid Penn Bancorp INC's 10-Q filing is 15 pages with approximately 4,597 words. Estimated reading time is 18 minutes.

Where can I view the full 10-Q filing?

The complete filing is available on SEC EDGAR. You can also read the AI-decoded analysis with risk assessment and key highlights on ReadTheFiling.

Filing Stats: 4,597 words · 18 min read · ~15 pages · Grade level 18.6 · Accepted 2024-05-08 14:10:49

Key Financial Figures

Filing Documents

– Financial Statements

Item 1 – Financial Statements 4 Consolidated Balance Sheets as of March 31, 2024 and December 31, 202 3 (Unaudited) 4 Consolidated Statements of Income for the Three Months Ended March 31 , 202 4 and 202 3 (Unaudited) 5 Consolidated Statements of Comprehensive Income for the Three Months Ended March 31 , 202 4 and 202 3 (Unaudited) 6 Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended March 31 , 202 4 and 202 3 (Unaudited) 7 Consolidated Statements of Cash Flows for the Three Months Ended March 31 , 202 4 and 202 3 (Unaudited) 8

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 10

– Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 39

– Quantitative and Qualitative Disclosures about Market Risk

Item 3 – Quantitative and Qualitative Disclosures about Market Risk 57

– Controls and Procedures

Item 4 – Controls and Procedures 57

– OTHER INFORMATION

PART II – OTHER INFORMATION 59

– Legal Proceedings

Item 1 – Legal Proceedings 59

– Risk Factors

Item 1A – Risk Factors 59

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 60

– Defaults upon Senior Securities

Item 3 – Defaults upon Senior Securities 61

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 61

– Other Information

Item 5 – Other Information 61

– Exhibits

Item 6 – Exhibits 62

Signatures

Signatures 63 Unless the context otherwise requires, the terms "Mid Penn", "Corporation" "we", "us", and "our" refer to Mid Penn Bancorp, Inc. and its consolidated wholly-owned banking subsidiary and nonbank subsidiaries. 2 Table of Contents GLOSSARY OF DEFINED ACRONYMS AND TERMS 2014 Plan 2014 Restricted Stock Plan 2023 Annual Report Corporation's Annual Report on Form 10-K for the year ended December 31, 2023 2023 Plan 2023 Stock Incentive Plan ACL Allowance for Credit Losses AFS Available for Sale AOCI Accumulated Other Comprehensive Income ASC Accounting Standards Codification ASU Accounting Standards Update the Bank Mid Penn Bank Bank Merger Merger of Brunswick Bank with and into Mid Penn Bank BOLI Bank Owned Life Insurance bp or bps basis point(s) Brunswick Brunswick Bancorp Brunswick Acquisition Merger acquisition of Brunswick Brunswick Bank Brunswick Bank & Trust Company CECL Current Expected Credit Losses DCF Discounted Cash Flow DIF FDIC's Deposit Insurance Fund DRIP Dividend Reinvestment Plan FASB Financial Accounting Standards Board FDIC Federal Deposit Insurance Corporation FHLB Federal Home Loan Bank of Pittsburgh FICO the Financing Corporation FOMC Federal Open Market Committee FTE Fully taxable-equivalent HFS Held for Sale HTM Held to Maturity LGD Loss Given Default LHFI Loans held for investment LIHTC Low-Income Housing Tax Credits Loans Loans, net of unearned interest Management Discussion Management's Discussion and Analysis of Financial Condition and Results of Operations Merger Merger of Brunswick with and into Mid Penn Merger Agreement Agreement and Plan of Merger between Mid Penn and Brunswick Mid Penn or the Corporation Mid Penn Bancorp, Inc. N/M Not meaningful - (percentage changes greater than +/- 150% not considered meaningful) OBS Off-Balance Sheet OCI Other Comprehensive Income PCD Purchased Credit Deteriorated PCL Provision for Credit Losses PD Probability of Default Riverview Rivervie

– FINANCIAL STATEMENTS

ITEM 1 – FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except per share data) March 31, 2024 December 31, 2023 ASSETS Cash and due from banks $ 33,362 $ 45,435 Interest-bearing balances with other financial institutions 31,801 34,668 Federal funds sold 2,922 16,660 Total cash and cash equivalents 68,085 96,763 Investment securities: HTM, at amortized cost (fair value $ 351,204 and $ 357,521 ) 396,998 399,128 AFS, at fair value 217,632 223,555 Equity securities available for sale, at fair value 431 438 Loans held for sale, at fair value 4,581 3,855 Loans, net of unearned interest 4,317,449 4,252,792 Less: ACL - Loans ( 33,524 ) ( 34,187 ) Net loans 4,283,925 4,218,605 Premises and equipment, net 36,068 36,909 Operating lease right of use asset 8,414 8,953 Finance lease right of use asset 2,683 2,727 Cash surrender value of life insurance 52,997 54,497 Restricted investment in bank stocks 17,446 16,768 Accrued interest receivable 26,975 25,820 Deferred income taxes 22,894 24,146 Goodwill 127,031 127,031 Core deposit and other intangibles, net 6,051 6,479 Foreclosed assets held for sale 5,110 293 Other assets 53,058 44,825 Total Assets $ 5,330,379 $ 5,290,792 LIABILITIES & SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 807,861 $ 801,312 Interest-bearing transaction accounts 2,082,846 2,086,450 Time 1,488,398 1,458,450 Total Deposits 4,379,105 4,346,212 Short-term borrowings 271,849 241,532 Long-term debt 23,941 59,003 Subordinated debt 46,201 46,354 Operating lease liability 8,683 9,285 Accrued interest payable 16,330 14,257 Other liabilities 33,302 31,799 Total Liabilities 4,779,411 4,748,442 Shareholders' Equity: Common stock, par value $ 1.00 per share; 40,000,000 shares authorized at March 31, 2024 and December 31, 2023; 17,006,359 issued at March 31, 2024 and 16,998,929 at December 31, 2023; 16,565,637 outstanding at March 31, 2024 and 16,573,707 at December 31, 2023 17,00

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1 - Summary of Significant Accounting Policies Nature of Operations Mid Penn Bancorp, Inc. ("Mid Penn" or the "Corporation"), through operations conducted by Mid Penn Bank (the "Bank") and its nonbank subsidiaries, engages in a full-service commercial banking and trust business, making available to the community a wide range of financial services, including, but not limited to, mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities and local government loans, and various types of time and demand deposits including but not limited to, checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and IRAs. In addition, the Bank provides a full range of trust and wealth management services through its Trust Department. Deposits are insured by the Federal Deposit Insurance Corporation ("FDIC") to the extent provided by law. Mid Penn also fulfills the insurance needs of both existing and potential customers through MPB Risk Services, LLC, doing business as MPB Insurance and Risk Management. The financial services are provided to individuals, partnerships, non-profit organizations, and corporations through its retail banking offices located in throughout Pennsylvania and two counties in New Jersey. Basis of Presentation For all periods presented, the accompanying consolidated financial statements include the accounts of Mid Penn Bancorp, Inc., its wholly-owned subsidiary, Mid Penn Bank, and four nonbank subsidiaries, MPB Financial Services, LLC, which includes MPB Wealth Management, LLC (which ceased operating during the first quarter of 2024) and MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of March 31, 2024, the accounts and activities of these nonbank subsidiaries were not material to warrant separate disclosure o

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