Mid Penn Bancorp Files Q2 2024 10-Q

TL;DR

MPB Q2 10-Q is in. Financials look steady, check the details.

AI Summary

Mid Penn Bancorp Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial data and business segments are presented, reflecting the company's ongoing activities in the commercial banking sector.

Why It Matters

This filing provides investors and analysts with a detailed look at Mid Penn Bancorp's financial health and operational performance during the second quarter of 2024, crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: medium — As a financial institution, Mid Penn Bancorp is subject to various market, credit, and regulatory risks inherent in the banking industry.

Key Numbers

• 2024 Q2 — Reporting Period (Second quarter of 2024 financial performance)
• 2023 Q2 — Prior Year Period (Comparison for year-over-year performance)
• 2024-01-01 to 2024-06-30 — Year-to-Date Period (Cumulative financial performance for the first half of 2024)

Key Players & Entities

• MID PENN BANCORP INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240807 (date) — Filing Date
• PA (location) — State of Incorporation
• HARRISBURG (location) — Business Address City

FAQ

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 par value per share MPB The NASDAQ Stoc

Filing Documents

• mpb-20240630.htm (10-Q) — 4447KB
• mpb-20240630xexx311xq.htm (EX-31.1) — 11KB
• mpb-20240630xexx312xq.htm (EX-31.2) — 11KB
• mpb-20240630xexx32xq.htm (EX-32) — 8KB
• 0000879635-24-000146.txt ( ) — 20712KB
• mpb-20240630.xsd (EX-101.SCH) — 66KB
• mpb-20240630_cal.xml (EX-101.CAL) — 203KB
• mpb-20240630_def.xml (EX-101.DEF) — 409KB
• mpb-20240630_lab.xml (EX-101.LAB) — 950KB
• mpb-20240630_pre.xml (EX-101.PRE) — 659KB
• mpb-20240630_htm.xml (XML) — 5467KB

– Financial Statements

Item 1 – Financial Statements 4 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (Unaud ited) 4 Consolidated Statements of Income for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Changes in Shareholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023 (Unaudited) 7 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 9

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 11

– 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 44

– Quantitative and Qualitative Disclosures about Market Risk

Item 3 – Quantitative and Qualitative Disclosures about Market Risk 66

– Controls and Procedures

Item 4 – Controls and Procedures 66

– OTHER INFORMATION

PART II – OTHER INFORMATION 68

– Legal Proceedings

Item 1 – Legal Proceedings 68

– Risk Factors

Item 1A – Risk Factors 68

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 69

– Defaults upon Senior Securities

Item 3 – Defaults upon Senior Securities 70

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 70

– Other Information

Item 5 – Other Information 70

– Exhibits

Item 6 – Exhibits 71

Signatures

Signatures 72 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 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 CCL Provision for Credit Losses - Credit Commitments 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 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 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 - Loans PD Probability of Default Riverview Riverview Financial Corporation Riverview Acquisition Merger acquisition of Riverview ROA Return on Assets ROE Return on Equ

– FINANCIAL STATEMENTS

ITEM 1 – FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except per share data) June 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 36,948 $ 45,435 Interest-bearing balances with other financial institutions 25,585 34,668 Federal funds sold 43,193 16,660 Total cash and cash equivalents 105,726 96,763 Investment securities: HTM, at amortized cost (fair value $ 347,275 and $ 357,521 ) 393,320 399,128 AFS, at fair value 207,936 223,555 Equity securities available for sale, at fair value 427 438 Loans held for sale, at fair value 8,420 3,855 Loans, net of unearned interest 4,364,561 4,252,792 Less: ACL - Loans ( 35,288 ) ( 34,187 ) Net loans 4,329,273 4,218,605 Premises and equipment, net 34,344 36,909 Operating lease right of use asset 7,925 8,953 Finance lease right of use asset 2,638 2,727 Cash surrender value of life insurance 53,298 54,497 Restricted investment in bank stocks 13,930 16,768 Accrued interest receivable 27,381 25,820 Deferred income taxes 24,520 24,146 Goodwill 127,031 127,031 Core deposit and other intangibles, net 5,626 6,479 Foreclosed assets held for sale 441 293 Other assets 49,513 44,825 Total Assets $ 5,391,749 $ 5,290,792 LIABILITIES & SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 766,014 $ 801,312 Interest-bearing transaction accounts 2,194,948 2,086,450 Time 1,536,049 1,458,450 Total Deposits 4,497,011 4,346,212 Short-term borrowings 200,000 241,532 Long-term debt 23,827 59,003 Subordinated debt 46,047 46,354 Operating lease liability 8,344 9,285 Accrued interest payable 18,139 14,257 Other liabilities 38,695 31,799 Total Liabilities 4,832,063 4,748,442 Shareholders' Equity: Common stock, par value $ 1.00 per share; 40,000,000 shares authorized at June 30, 2024 and December 31, 2023; 17,051,236 issued at June 30, 2024 and 16,998,929 at December 31, 2023; 16,580,595 outstanding at June 30, 2024 and 16,573,707 at December 31, 2023 17,051 16

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 June 30, 2024, the accounts and activities of these nonbank subsidiaries were not material to warrant separate disclosure or

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View this 10-Q filing on SEC EDGAR