MPB · Mid Penn Bancorp, Inc.

Mid Penn Bancorp's first quarter 2026 results were significantly impacted by merger-related expenses totaling $7.7 million (net of tax) associated with the acquisitions of 1st Colonial Bancorp and Cumberland Advisors. These costs drove a decline in GAAP net income to $8.7 million, or $0.36 per share, from $13.7 million, or $0.71 per share, in the prior year period. However, on an adjusted basis excluding non-recurring items, net income increased 10.0% to $15.3 million, demonstrating underlying operational strength. Adjusted earnings per share of $0.64 lagged the prior year's $0.72 due to a higher weighted-average share count resulting from acquisition financing.

The acquisitions have materially altered the company's balance sheet. The 1st Colonial transaction, closed on February 27, 2026, contributed to a 22.7% year-over-year increase in total loans to $5.5 billion and a 26.2% rise in total deposits to $6.0 billion. Net interest margin expanded 43 basis points year-over-year to 3.80%, driven by higher loan and investment securities yields and a reduction in the cost of funds, which decreased to 2.12%. Noninterest income surged 83.3% year-over-year to $9.6 million, primarily fueled by the addition of wealth management income from Cumberland Advisors. Asset quality metrics showed a slight deterioration, with nonperforming assets increasing to $38.1 million, largely due to $7.4 million in acquired nonaccrual loans. The company maintained strong capital levels, supporting the declaration of a $0.22 quarterly dividend and the reauthorization of the treasury stock repurchase program with an additional $50 million authorized through April 2027.