Mid Penn Bancorp Files Q3 2024 10-Q

TL;DR

MPB's Q3 2024 10-Q is in - financials look steady.

AI Summary

Mid Penn Bancorp Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third 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 the latest financial health and operational performance of Mid Penn Bancorp, crucial for understanding its market position and future prospects.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures without immediate red flags.

Key Numbers

• 2024-09-30 — Period End Date (The report covers financial data up to this date.)
• 2024-11-07 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• MID PENN BANCORP INC (company) — Filer
• 20240930 (date) — Period of Report
• 20241107 (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-20240930.htm (10-Q) — 4576KB
• mpb-20240930xexx311xq.htm (EX-31.1) — 11KB
• mpb-20240930xexx312xq.htm (EX-31.2) — 11KB
• mpb-20240930xexx32xq.htm (EX-32) — 8KB
• 0000879635-24-000203.txt ( ) — 21124KB
• mpb-20240930.xsd (EX-101.SCH) — 67KB
• mpb-20240930_cal.xml (EX-101.CAL) — 201KB
• mpb-20240930_def.xml (EX-101.DEF) — 425KB
• mpb-20240930_lab.xml (EX-101.LAB) — 966KB
• mpb-20240930_pre.xml (EX-101.PRE) — 671KB
• mpb-20240930_htm.xml (XML) — 5558KB

– Financial Statements

Item 1 – Financial Statements 4 Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited) 4 Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Changes in Shareholders' Equity for the Three and Nine Months Ended September 30, 2024 and 2023 (Unaudited) 7 Consolidated Statements of Cash Flows for the Nine Months Ended September 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 48

– Quantitative and Qualitative Disclosures about Market Risk

Item 3 – Quantitative and Qualitative Disclosures about Market Risk 70

– Controls and Procedures

Item 4 – Controls and Procedures 70

– OTHER INFORMATION

PART II – OTHER INFORMATION 72

– Legal Proceedings

Item 1 – Legal Proceedings 72

– Risk Factors

Item 1A – Risk Factors 72

– Unregistered Sales of Equity Securities and Use of Proceeds

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 75

– Defaults upon Senior Securities

Item 3 – Defaults upon Senior Securities 76

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 76

– Other Information

Item 5 – Other Information 76

– Exhibits

Item 6 – Exhibits 77

Signatures

Signatures 78 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/(Loss) 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 LIHTC Low-Income Housing Tax Credits Loans Loans, net of unearned income Management Discussion Management's Discussion and Analysis of Financial Condition and Results of Operations Merger Merger of William 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 Public Offering Underwritten public offering of 2,375,000 shares of the Corporation's common stock Riverview River

– FINANCIAL STATEMENTS

ITEM 1 – FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In thousands, except per share data) September 30, 2024 December 31, 2023 ASSETS Cash and due from banks $ 57,518 $ 45,435 Interest-bearing balances with other financial institutions 19,323 34,668 Federal funds sold 67,554 16,660 Total cash and cash equivalents 144,395 96,763 Investment securities: HTM, at amortized cost (fair value $ 354,365 and $ 357,521 , respectively) 386,618 399,128 AFS, at fair value 255,227 223,555 Equity securities, at fair value 446 438 Loans held for sale, at fair value 7,919 3,855 Loans, net of unearned income 4,431,704 4,252,792 Less: ACL - Loans ( 35,562 ) ( 34,187 ) Net loans 4,396,142 4,218,605 Premises and equipment, net 33,765 36,909 Operating lease right of use asset 7,390 8,953 Finance lease right of use asset 2,593 2,727 Cash surrender value of life insurance 53,135 54,497 Restricted investment in bank stocks 10,589 16,768 Accrued interest receivable 27,286 25,820 Deferred income taxes 23,197 24,146 Goodwill 128,160 127,031 Core deposit and other intangibles, net 6,713 6,479 Foreclosed assets held for sale 281 293 Other assets 43,169 44,825 Total Assets $ 5,527,025 $ 5,290,792 LIABILITIES & SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand $ 791,980 $ 801,312 Interest-bearing transaction accounts 2,288,783 2,086,450 Time 1,626,001 1,458,450 Total Deposits 4,706,764 4,346,212 Short-term borrowings 114,097 241,532 Long-term debt 23,716 59,003 Subordinated debt 45,894 46,354 Operating lease liability 7,778 9,285 Accrued interest payable 18,995 14,257 Other liabilities 36,722 31,799 Total Liabilities 4,953,966 4,748,442 Shareholders' Equity: Common stock, par value $ 1.00 per share; 40,000,000 shares authorized at September 30, 2024 and December 31, 2023; 17,060,896 issued at September 30, 2024 and 16,998,929 at December 31, 2023; 16,620,174 outstanding at September 30, 2024 and 16,573,707 at December 31, 20

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 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 wholly-owned nonbank subsidiaries, MPB Financial Services, LLC, which includes MPB Wealth Management, LLC (which ceased operating during the first quarter of 2024), MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of September 30, 2024, the accounts and activities of these nonbank subsidiaries were not material to warrant separate d

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