Mid Penn Bancorp, Inc. Reports First Quarter Earnings and Declares Dividend
Mid Penn Bancorp reported a net income of $11.35 million for Q1 2022, reflecting a 22% increase from $9.31 million in Q1 2021. Earnings per share were $0.71, down from $1.11 a year ago. Total assets decreased 0.47% from Q4 2021 to $4.67 billion, attributed to a $12.98 million decrease in deposits. The tangible book value per share rose to $23.31 from $22.99. Organic loan growth hit 13% annualized, bolstered by the Riverview acquisition. A dividend of $0.20 per share was declared, payable on May 23, 2022.
- Net income increased by 22% year-over-year to $11.35 million.
- Organic loan growth was 13% annualized, contributing to strong financial performance.
- Tangible book value per share rose to $23.31, up from $22.99.
- Earnings per share decreased from $1.11 in Q1 2021 to $0.71.
- Total assets declined by $22.25 million or 0.47% from Q4 2021.
HARRISBURG, Pa. , April 27, 2022 (GLOBE NEWSWIRE) -- Mid Penn Bancorp, Inc. (“Mid Penn”) (NASDAQ: MPB), the parent company of Mid Penn Bank (the “Bank”) and MPB Financial Services, LLC, today reported net income available to common shareholders (earnings) for the quarter ended March 31, 2022 of
The results for the three months ended March 31, 2022 include post-acquisition restructuring expenses of
Tangible book value per common share, a non-GAAP measure that is regularly reported in the banking industry, favorably increased to
Mid Penn also reported total assets of
PRESIDENT’S COMMENTS
We are pleased to deliver this first quarter earnings summary to our shareholders which represents a beat versus our own internal expectations. While the quarter was consumed with the wrap up of the Riverview acquisition and the conversion of its customers on to the Mid Penn platform, we still managed to have great organic growth in many balance sheet and revenue numbers.
Organic, core loan growth, excluding PPP loans, quarter-over-quarter annualized at just under 13 percent, which is a great start to the year, particularly in that the first quarter is traditionally our slowest growth quarter of any year.
Organic, core deposit growth, excluding time deposits, annualized at 7 percent, which also helped us drive down our overall cost of deposits and cost of funds since the end of the year, helping to stabilize net interest margin.
Our earnings performance drove an increase in tangible book value per common share of
Even with a significant fall off in our residential mortgage business both year-over-year and quarter-over-quarter, we still managed to increase noninterest income over 6 percent on an annualized basis. Growth in assets under management at both our bank and non-bank subsidiaries contributed to that success.
Our first quarter success with organic growth and the successful completion and conversion of Riverview, including the recognition of the key cost saves we projected in that transaction, gives us great confidence heading in to the last three quarters of 2022.
With this successful quarter, the Board is pleased to announce a
FINANCIAL CONDITION
Loans
Total loans as of March 31, 2022 were
Total loans increased by
Mid Penn was a significant participating lender under the Paycheck Protection Program (“PPP”), which was originally created as a result of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act in 2020. The PPP loan program was reinstated with the Consolidated Appropriations Act of 2021. Included in total assets as of March 31, 2022 are
Deposits
Total deposits decreased
Mar. 31, | Dec. 31, | |||||||||||
(Dollars in thousands) | 2022 | 2021 | ||||||||||
Balance | Balance | Variance | ||||||||||
Noninterest-bearing demand deposits | $ | 866,965 | $ | 850,438 | $ | 16,527 | ||||||
Interest-bearing demand deposits | 1,050,923 | 1,066,852 | (15,929 | ) | ||||||||
Money market | 1,159,809 | 1,076,593 | 83,216 | |||||||||
Savings | 358,186 | 381,476 | (23,290 | ) | ||||||||
Time | 553,154 | 626,657 | (73,503 | ) | ||||||||
$ | 3,989,037 | $ | 4,002,016 | $ | (12,979 | ) | ||||||
Deposit growth of
Capital
Shareholders’ equity increased by
MERGER & ACQUISITION ACTIVITY
On November 30, 2021, Mid Penn announced the successful completion of the merger acquisition of Riverview, pursuant to which each share of Riverview common stock issued and outstanding immediately prior to November 30, 2021 was converted into the right to receive 0.4833 shares of Mid Penn common stock. As a result of the acquisition, Mid Penn issued 4,519,776 shares of Mid Penn common stock and cash of
The assets purchased and liabilities assumed in the Riverview transaction were recorded at their estimated fair values as of the respective date of acquisition and may be adjusted for up to one year subsequent to legal closing.
OPERATING RESULTS
Net Interest Income and Net Interest Margin
For the three months ended March 31, 2022, net interest income was
The three months ended March 31, 2022 included the recognition of
For the three months ended March 31, 2022, Mid Penn’s tax-equivalent net interest margin was 3.21 percent versus 3.46 percent during the three months ended March 31, 2021. The overall decrease in net interest margin for the three months ended March 31, 2022 was driven by the reduction in PPP fees recognized in the first quarter of 2022 of
Noninterest Income
For the three months ended March 31, 2022, noninterest income totaled
Mortgage banking income was
As another prong of Mid Penn’s mortgage banking program, a mortgage hedging program was established in the latter half of 2021. For the three months ended March 31, 2022,
Income from fiduciary and wealth management activities was
Service charges on deposits were
ATM debit card interchange income was
Earnings from cash surrender value of life insurance was
Other income was
Noninterest Expense
For the three months ended March 31, 2022, noninterest expense totaled
Salaries and employee benefits were
Occupancy expenses increased
Software licensing and utilization costs were
FDIC assessment expense was
Legal and professional fees were
Charitable contributions qualifying for state tax credits were
Intangible amortization increased from
Post-acquisition restructuring expenses totaled
Other expenses increased
The provision for income taxes was
ASSET QUALITY
Excluding PPP loans, which are guaranteed by the SBA, the allowance for loan and lease losses as a percentage of core loans (a non-GAAP measure) were 0.49 percent at both March 31, 2022 and December 31, 2021. The allowance for loan and lease losses as a percentage of total loans including PPP loans was 0.49 percent at March 31, 2022, compared to 0.47 percent at December 31, 2021. The ratios as of March 31, 2022 and December 31, 2021, were affected by the addition of the Riverview acquired loans, which, in accordance with purchase accounting principles, were recorded at fair value at the time of acquisition with no related allowance for loan losses.
The provision for loan losses was
Total nonperforming assets were
Asset quality measures did not reflect any new impaired assets or specific reserve allocations related to the financial impact of the COVID-19 pandemic, though Bank management is continuously and closely monitoring and evaluating the impact of the COVID-19 situation on the portfolio. Management believes, based on information currently available, that the allowance for loan and lease losses of
FINANCIAL HIGHLIGHTS (Unaudited):
(Dollars in thousands, except | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | |||||||||||||||
per share data) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
Cash and cash equivalents | $ | 758,431 | $ | 913,752 | $ | 754,942 | $ | 636,347 | $ | 427,371 | ||||||||||
Investment securities | 508,658 | 392,619 | 158,311 | 161,702 | 134,318 | |||||||||||||||
Loans | 3,121,531 | 3,104,396 | 2,370,429 | 2,495,192 | 2,646,236 | |||||||||||||||
Allowance for loan and lease losses | (15,147 | ) | (14,597 | ) | (14,233 | ) | (14,716 | ) | (13,591 | ) | ||||||||||
Net loans | 3,106,384 | 3,089,799 | 2,356,196 | 2,480,476 | 2,632,645 | |||||||||||||||
Goodwill and other intangibles | 122,085 | 123,271 | 66,377 | 66,644 | 66,919 | |||||||||||||||
Other assets | 171,616 | 169,984 | 117,361 | 116,623 | 120,785 | |||||||||||||||
Total assets | $ | 4,667,174 | $ | 4,689,425 | $ | 3,453,187 | $ | 3,461,792 | $ | 3,382,038 | ||||||||||
Noninterest-bearing deposits | $ | 866,965 | $ | 850,438 | $ | 661,890 | $ | 692,016 | $ | 676,717 | ||||||||||
Interest-bearing deposits | 3,122,072 | 3,151,578 | 2,299,991 | 2,090,108 | 1,990,110 | |||||||||||||||
Total deposits | 3,989,037 | 4,002,016 | 2,961,881 | 2,782,124 | 2,666,827 | |||||||||||||||
Borrowings and subordinated debt | 148,815 | 154,915 | 119,457 | 316,426 | 427,369 | |||||||||||||||
Other liabilities | 35,161 | 42,418 | 22,541 | 21,673 | 23,806 | |||||||||||||||
Shareholders' equity | 494,161 | 490,076 | 349,308 | 341,569 | 264,036 | |||||||||||||||
Total liabilities and shareholders' equity | $ | 4,667,174 | $ | 4,689,425 | $ | 3,453,187 | $ | 3,461,792 | $ | 3,382,038 | ||||||||||
Book Value per Common Share | $ | 30.96 | $ | 30.71 | $ | 30.55 | $ | 29.94 | $ | 31.37 | ||||||||||
Tangible Book Value per Common Share (a) | $ | 23.31 | $ | 22.99 | $ | 24.75 | $ | 24.10 | $ | 23.42 | ||||||||||
Nonperforming assets as a % of total loans outstanding and other real estate | 0.26 | % | 0.32 | % | 0.29 | % | 0.35 | % | 0.26 | % |
(a) Non-GAAP measure; see Reconciliation of Non-GAAP Measures
OPERATING HIGHLIGHTS (Unaudited):
Three Months Ended | ||||||||||||||||||||
(Dollars in thousands, except | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | |||||||||||||||
per share data) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
Interest income | $ | 37,632 | $ | 32,685 | $ | 30,740 | $ | 30,729 | $ | 29,168 | ||||||||||
Interest expense | 3,218 | 3,313 | 3,746 | 3,852 | 3,843 | |||||||||||||||
Net interest income | 34,414 | 29,372 | 26,994 | 26,877 | 25,325 | |||||||||||||||
Provision for loan and lease losses | 500 | 370 | 425 | 1,150 | 1,000 | |||||||||||||||
Noninterest income | 5,750 | 5,660 | 5,509 | 5,652 | 4,712 | |||||||||||||||
Noninterest expense | 25,745 | 34,072 | 20,019 | 19,456 | 17,558 | |||||||||||||||
Income before provision for income taxes | 13,919 | 590 | 12,059 | 11,923 | 11,479 | |||||||||||||||
Provision for income taxes | 2,565 | (17 | ) | 2,272 | 2,310 | 2,167 | ||||||||||||||
Net income | $ | 11,354 | $ | 607 | $ | 9,787 | $ | 9,613 | $ | 9,312 | ||||||||||
Basic Earnings per Common Share | $ | 0.71 | $ | 0.05 | $ | 0.86 | $ | 0.93 | $ | 1.11 | ||||||||||
Diluted Earnings per Common Share | $ | 0.71 | $ | 0.05 | $ | 0.86 | $ | 0.93 | $ | 1.10 | ||||||||||
Return on Average Assets | 0.98 | % | 0.06 | % | 1.11 | % | 1.12 | % | 1.19 | % | ||||||||||
Return on Average Equity | 9.32 | % | 0.61 | % | 11.23 | % | 12.36 | % | 14.58 | % | ||||||||||
Return on Average Tangible Common Equity | 12.40 | % | 0.74 | % | 14.05 | % | 15.72 | % | 19.46 | % |
Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | |||||||||||
2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||
Tier 1 Capital (to Average Assets) | |||||||||||||||
Common Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||
Tier 1 Capital (to Risk Weighted Assets) | |||||||||||||||
Total Capital (to Risk Weighted Assets) |
RECONCILIATION OF NON-GAAP MEASURES (Unaudited):
This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). 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. Non-PPP core banking loans are meaningful to investors as they are indicative of portfolio loans and related growth from traditional bank activities and excludes short-term or nonrecurring loans from special programs like the PPP. 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.
Tangible Book Value Per Share
(Dollars in thousands, except | Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | |||||||||||||||
per share data) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
Shareholders' Equity | $ | 494,161 | $ | 490,076 | $ | 349,308 | $ | 341,569 | $ | 264,036 | ||||||||||
Less: Goodwill | 113,835 | 113,835 | 62,840 | 62,840 | 62,840 | |||||||||||||||
Less: Core Deposit and Other Intangibles | 8,250 | 9,436 | 3,537 | 3,804 | 4,079 | |||||||||||||||
Tangible Equity | $ | 372,076 | $ | 366,805 | $ | 282,931 | $ | 274,925 | $ | 197,117 | ||||||||||
Common Shares Outstanding | 15,960,916 | 15,957,830 | 11,433,554 | 11,408,712 | 8,416,095 | |||||||||||||||
Tangible Book Value per Share | $ | 23.31 | $ | 22.99 | $ | 24.75 | $ | 24.10 | $ | 23.42 | ||||||||||
Non-PPP Core Banking Loans
Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | ||||||||||||||||
(Dollars in thousands) | 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
Loans and leases, net of unearned interest | $ | 3,121,531 | $ | 3,104,396 | $ | 2,370,429 | $ | 2,495,192 | $ | 2,646,236 | ||||||||||
Less: PPP loans, net of deferred fees | 34,124 | 111,286 | 229,679 | 391,826 | 590,035 | |||||||||||||||
Non-PPP core banking loans | $ | 3,087,407 | $ | 2,993,110 | $ | 2,140,750 | $ | 2,103,366 | $ | 2,056,201 |
CONSOLIDATED BALANCE SHEETS (Unaudited):
(Dollars in thousands, except share data) | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 54,961 | $ | 41,100 | $ | 36,109 | ||||||
Interest-bearing balances with other financial institutions | 3,187 | 146,031 | 1,243 | |||||||||
Federal funds sold | 700,283 | 726,621 | 390,019 | |||||||||
Total cash and cash equivalents | 758,431 | 913,752 | 427,371 | |||||||||
Investment securities held to maturity, at amortized cost | 363,145 | 329,257 | 130,560 | |||||||||
(fair value | ||||||||||||
Investment securities available for sale, at fair value | 145,039 | 62,862 | 3,250 | |||||||||
Equity securities available for sale, at fair value | 474 | 500 | 508 | |||||||||
Loans held for sale | 7,474 | 11,514 | 25,842 | |||||||||
Loans and leases, net of unearned interest | 3,121,531 | 3,104,396 | 2,646,236 | |||||||||
Less: Allowance for loan and lease losses | (15,147 | ) | (14,597 | ) | (13,591 | ) | ||||||
Net loans and leases | 3,106,384 | 3,089,799 | 2,632,645 | |||||||||
Bank premises and equipment, net | 33,612 | 33,232 | 24,710 | |||||||||
Bank premises and equipment held for sale | 3,098 | 3,907 | — | |||||||||
Operating lease right of use asset | 8,751 | 9,055 | 10,791 | |||||||||
Finance lease right of use asset | 3,042 | 3,087 | 3,222 | |||||||||
Cash surrender value of life insurance | 49,907 | 49,661 | 17,257 | |||||||||
Restricted investment in bank stocks | 7,637 | 9,134 | 6,860 | |||||||||
Accrued interest receivable | 11,584 | 11,328 | 11,855 | |||||||||
Deferred income taxes | 11,974 | 10,779 | 5,427 | |||||||||
Goodwill | 113,835 | 113,835 | 62,840 | |||||||||
Core deposit and other intangibles, net | 8,250 | 9,436 | 4,079 | |||||||||
Foreclosed assets held for sale | 125 | — | 154 | |||||||||
Other assets | 34,412 | 28,287 | 14,667 | |||||||||
Total Assets | $ | 4,667,174 | $ | 4,689,425 | $ | 3,382,038 | ||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand | $ | 866,965 | $ | 850,438 | $ | 676,717 | ||||||
Interest-bearing demand | 1,050,923 | 1,066,852 | 601,220 | |||||||||
Money Market | 1,159,809 | 1,076,593 | 770,800 | |||||||||
Savings | 358,186 | 381,476 | 201,225 | |||||||||
Time | 553,154 | 626,657 | 416,865 | |||||||||
Total Deposits | 3,989,037 | 4,002,016 | 2,666,827 | |||||||||
Short-term borrowings | — | — | 307,753 | |||||||||
Long-term debt | 74,681 | 81,270 | 75,030 | |||||||||
Subordinated debt | 74,134 | 73,645 | 44,586 | |||||||||
Operating lease liability | 10,923 | 11,363 | 11,828 | |||||||||
Accrued interest payable | 2,067 | 1,791 | 1,902 | |||||||||
Federal income tax payable | — | — | 1,321 | |||||||||
Other liabilities | 22,171 | 29,264 | 8,755 | |||||||||
Total Liabilities | 4,173,013 | 4,199,349 | 3,118,002 | |||||||||
Shareholders' Equity: | ||||||||||||
Common stock, par value Shares issued: 16,059,368 at March 31, 2022, 16,056,282 at December 31, 2021, and 8,514,547 at March 31, 2021; Shares outstanding: 15,960,916 at March 31, 2022, 15,957,830 at December 31, 2021, and 8,416,095 at March 31, 2021 | 16,059 | 16,056 | 8,515 | |||||||||
Additional paid-in capital | 385,765 | 384,742 | 179,055 | |||||||||
Retained earnings | 99,206 | 91,043 | 77,888 | |||||||||
Accumulated other comprehensive income (loss) | (4,946 | ) | 158 | 501 | ||||||||
Treasury stock, at cost; 98,452 shares at March 31, 2022, 98,452 shares at December 31, 2021, and 98, 452 at March 31, 2021 | (1,923 | ) | (1,923 | ) | (1,923 | ) | ||||||
Total Shareholders’ Equity | 494,161 | 490,076 | 264,036 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 4,667,174 | $ | 4,689,425 | $ | 3,382,038 |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited):
(Dollars in thousands, except per share data) | Three Months Ended March 31, | |||||||
2022 | 2021 | |||||||
INTEREST INCOME | ||||||||
Interest and fees on loans and leases | $ | 35,016 | $ | 28,330 | ||||
Interest and dividends on investment securities: | ||||||||
U.S. Treasury and government agencies | 1,536 | 178 | ||||||
State and political subdivision obligations, tax-exempt | 336 | 277 | ||||||
Other securities | 417 | 302 | ||||||
Total Interest and Dividends on Investment Securities | 2,289 | 757 | ||||||
Interest on other interest-bearing balances | 13 | 2 | ||||||
Interest on federal funds sold | 314 | 79 | ||||||
Total Interest Income | 37,632 | 29,168 | ||||||
INTEREST EXPENSE | ||||||||
Interest on deposits | 2,294 | 2,966 | ||||||
Interest on short-term borrowings | — | 174 | ||||||
Interest on long-term and subordinated debt | 924 | 703 | ||||||
Total Interest Expense | 3,218 | 3,843 | ||||||
Net Interest Income | 34,414 | 25,325 | ||||||
PROVISION FOR LOAN AND LEASE LOSSES | 500 | 1,000 | ||||||
Net Interest Income After Provision for Loan and Lease Losses | 33,914 | 24,325 | ||||||
NONINTEREST INCOME | ||||||||
Mortgage banking income | 529 | 2,379 | ||||||
Income from fiduciary and wealth management activities | 1,052 | 556 | ||||||
Service charges on deposits | 684 | 152 | ||||||
ATM debit card interchange income | 1,057 | 568 | ||||||
Net (loss) gain on sales of SBA loans | (9 | ) | 100 | |||||
Merchant services income | 73 | 92 | ||||||
Earnings from cash surrender value of life insurance | 246 | 74 | ||||||
Other income | 2,118 | 791 | ||||||
Total Noninterest Income | 5,750 | 4,712 | ||||||
NONINTEREST EXPENSE | ||||||||
Salaries and employee benefits | 13,244 | 9,598 | ||||||
Occupancy expense, net | 1,799 | 1,480 | ||||||
Equipment expense | 1,011 | 751 | ||||||
Software licensing and utilization | 2,106 | 1,445 | ||||||
FDIC Assessment | 591 | 470 | ||||||
Legal and professional fees | 639 | 426 | ||||||
Charitable contributions qualifying for State tax credits | 65 | 270 | ||||||
Mortgage banking profit-sharing expense | 145 | 120 | ||||||
Gain on sale or write-down of foreclosed assets, net | (16 | ) | — | |||||
Intangible amortization | 481 | 281 | ||||||
Post-acquisition restructuring expense | 329 | — | ||||||
Other expenses | 5,351 | 2,717 | ||||||
Total Noninterest Expense | 25,745 | 17,558 | ||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 13,919 | 11,479 | ||||||
Provision for income taxes | 2,565 | 2,167 | ||||||
NET INCOME | $ | 11,354 | $ | 9,312 | ||||
PER COMMON SHARE DATA: | ||||||||
Basic and Diluted Earnings Per Common Share | $ | 0.71 | $ | 1.11 | ||||
Diluted Earnings Per Common Share | $ | 0.71 | $ | 1.10 | ||||
Cash Dividends Declared | $ | 0.20 | $ | 0.19 |
NET INTEREST MARGIN (Unaudited):
Average Balances, Income and Interest Rates on a Taxable Equivalent Basis | ||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||
Balance | Interest | Rates | Balance | Interest | Rates | |||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Interest Bearing Balances | $ | 91,543 | $ | 13 | 0.06 | % | $ | 58,015 | $ | 8 | 0.05 | % | ||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
Taxable | 389,034 | 1,822 | 1.90 | % | 223,546 | 938 | 1.66 | % | ||||||||||||||||||||
Tax-Exempt | 73,614 | 425 | (a) | 2.34 | % | 62,588 | 365 | (a) | 2.31 | % | ||||||||||||||||||
Total Securities | 462,648 | 2,247 | 1.97 | % | 286,134 | 1,303 | 1.81 | % | ||||||||||||||||||||
Federal Funds Sold | 706,411 | 314 | 0.18 | % | 758,165 | 324 | 0.17 | % | ||||||||||||||||||||
Loans and Leases, Net | 3,103,469 | 35,123 | (b) | 4.59 | % | 2,595,090 | 31,108 | (b) | 4.76 | % | ||||||||||||||||||
Restricted Investment in Bank Stocks | 8,347 | 131 | 6.36 | % | 8,328 | 106 | 5.05 | % | ||||||||||||||||||||
Total Earning Assets | 4,372,418 | 37,828 | 3.51 | % | 3,705,732 | 32,849 | 3.52 | % | ||||||||||||||||||||
Cash and Due from Banks | 57,397 | 45,385 | ||||||||||||||||||||||||||
Other Assets | 267,079 | 192,969 | ||||||||||||||||||||||||||
Total Assets | $ | 4,696,894 | $ | 3,944,086 | ||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY: | ||||||||||||||||||||||||||||
Interest-bearing Demand | $ | 1,045,678 | $ | 461 | 0.18 | % | $ | 855,060 | $ | 548 | 0.25 | % | ||||||||||||||||
Money Market | 1,125,094 | 600 | 0.22 | % | 976,601 | 696 | 0.28 | % | ||||||||||||||||||||
Savings | 376,006 | 58 | 0.06 | % | 264,547 | 55 | 0.08 | % | ||||||||||||||||||||
Time | 592,833 | 1,175 | 0.80 | % | 511,953 | 1,236 | 0.96 | % | ||||||||||||||||||||
Total Interest-bearing Deposits | 3,139,611 | 2,294 | 0.30 | % | 2,608,161 | 2,535 | 0.39 | % | ||||||||||||||||||||
Short Term Borrowings | — | — | 0.00 | % | — | — | 0.00 | % | ||||||||||||||||||||
Long-term Debt | 76,157 | 284 | 1.51 | % | 76,990 | 219 | 1.13 | % | ||||||||||||||||||||
Subordinated Debt | 74,189 | 640 | 3.50 | % | 54,615 | 559 | 4.06 | % | ||||||||||||||||||||
Total Interest-bearing Liabilities | 3,289,957 | 3,218 | 0.40 | % | 2,739,766 | 3,313 | 0.48 | % | ||||||||||||||||||||
Noninterest-bearing Demand | 859,463 | 759,897 | ||||||||||||||||||||||||||
Other Liabilities | 53,455 | 46,659 | ||||||||||||||||||||||||||
Shareholders' Equity | 494,019 | 397,764 | ||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 4,696,894 | $ | 3,944,086 | ||||||||||||||||||||||||
Net Interest Income (taxable equivalent basis) | $ | 34,610 | $ | 29,536 | ||||||||||||||||||||||||
Taxable Equivalent Adjustment | (196 | ) | (164 | ) | ||||||||||||||||||||||||
Net Interest Income | $ | 34,414 | $ | 29,372 | ||||||||||||||||||||||||
Total Yield on Earning Assets | 3.51 | % | 3.52 | % | ||||||||||||||||||||||||
Rate on Supporting Liabilities | 0.40 | % | 0.48 | % | ||||||||||||||||||||||||
Average Interest Spread | 3.11 | % | 3.04 | % | ||||||||||||||||||||||||
Net Interest Margin | 3.21 | % | 3.16 | % |
(a) | Includes tax-equivalent adjustments (calculated using statutory rates of 21 percent) of |
(b) | Includes tax-equivalent adjustments (calculated using statutory rates of 21 percent) of |
Average Balances, Income and Interest Rates on a Taxable Equivalent Basis | ||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||
(Dollars in thousands) | March 31, 2022 | March 31, 2021 | ||||||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||||||
Balance | Interest | Rates | Balance | Interest | Rates | |||||||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Interest Bearing Balances | $ | 91,543 | $ | 13 | 0.06 | % | $ | 1,401 | $ | 2 | 0.58 | % | ||||||||||||||||
Investment Securities: | ||||||||||||||||||||||||||||
Taxable | 389,034 | 1,822 | 1.90 | % | 78,456 | 385 | 1.99 | % | ||||||||||||||||||||
Tax-Exempt | 73,614 | 425 | (a) | 2.34 | % | 54,937 | 351 | (a) | 2.59 | % | ||||||||||||||||||
Total Securities | 462,648 | 2,247 | 1.97 | % | 133,393 | 736 | 2.24 | % | ||||||||||||||||||||
Federal Funds Sold | 706,411 | 314 | 0.18 | % | 314,181 | 79 | 0.10 | % | ||||||||||||||||||||
Loans and Leases, Net | 3,103,469 | 35,123 | (b) | 4.59 | % | 2,531,917 | 28,406 | (b) | 4.55 | % | ||||||||||||||||||
Restricted Investment in Bank Stocks | 8,347 | 131 | 6.36 | % | 7,052 | 95 | 5.46 | % | ||||||||||||||||||||
Total Earning Assets | 4,372,418 | 37,828 | 3.51 | % | 2,987,944 | 29,318 | 3.98 | % | ||||||||||||||||||||
Cash and Due from Banks | 57,397 | 34,040 | ||||||||||||||||||||||||||
Other Assets | 267,079 | 164,266 | ||||||||||||||||||||||||||
Total Assets | $ | 4,696,894 | $ | 3,186,250 | ||||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY: | ||||||||||||||||||||||||||||
Interest-bearing Demand | $ | 1,045,678 | $ | 461 | 0.18 | % | $ | 602,015 | $ | 578 | 0.39 | % | ||||||||||||||||
Money Market | 1,125,094 | 600 | 0.22 | % | 743,994 | 778 | 0.42 | % | ||||||||||||||||||||
Savings | 376,006 | 58 | 0.06 | % | 197,873 | 64 | 0.13 | % | ||||||||||||||||||||
Time | 592,833 | 1,175 | 0.80 | % | 413,673 | 1,546 | 1.52 | % | ||||||||||||||||||||
Total Interest-bearing Deposits | 3,139,611 | 2,294 | 0.30 | % | 1,957,555 | 2,966 | 0.61 | % | ||||||||||||||||||||
Short-term Borrowings | - | - | 0.00 | % | 203,518 | 174 | 0.35 | % | ||||||||||||||||||||
Long-term Debt | 76,157 | 284 | 1.51 | % | 75,062 | 204 | 1.10 | % | ||||||||||||||||||||
Subordinated Debt | 74,189 | 640 | 3.50 | % | 44,583 | 499 | 4.54 | % | ||||||||||||||||||||
Total Interest-bearing Liabilities | 3,289,957 | 3,218 | 0.40 | % | 2,280,718 | 3,843 | 0.68 | % | ||||||||||||||||||||
Noninterest-bearing Demand | 859,463 | 623,058 | ||||||||||||||||||||||||||
Other Liabilities | 53,455 | 23,462 | ||||||||||||||||||||||||||
Shareholders' Equity | 494,019 | 259,012 | ||||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 4,696,894 | $ | 3,186,250 | ||||||||||||||||||||||||
Net Interest Income (taxable equivalent basis) | $ | 34,610 | $ | 25,475 | ||||||||||||||||||||||||
Taxable Equivalent Adjustment | (196 | ) | (150 | ) | ||||||||||||||||||||||||
Net Interest Income | $ | 34,414 | $ | 25,325 | ||||||||||||||||||||||||
Total Yield on Earning Assets | 3.51 | % | 3.98 | % | ||||||||||||||||||||||||
Rate on Supporting Liabilities | 0.40 | % | 0.68 | % | ||||||||||||||||||||||||
Average Interest Spread | 3.11 | % | 3.30 | % | ||||||||||||||||||||||||
Net Interest Margin | 3.21 | % | 3.46 | % |
(a) | Includes tax-equivalent adjustments (calculated using statutory rates of 21 percent) of |
(b) | Includes tax-equivalent adjustments (calculated using statutory rates of 21 percent) of |
Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission (“SEC”). Accordingly, the financial information in this announcement is subject to change. The statements are valid only as of the date hereof and Mid Penn disclaims any obligation to update this information.
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; the length and extent of the COVID-19 pandemic; 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; the success and timing of PPP loan repayment and forgiveness; 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 the Riverview 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 two companies or as a result of the strength of the economy and competitive factors in the areas where Mid Penn does business; 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 the Riverview transaction; the ability to complete the integration of Mid Penn and Riverview successfully; the dilution caused by Mid Penn’s issuance of additional shares of its capital stock in connection with the Riverview 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, 2021 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 assumes no obligation for updating any such forward-looking statements at any time, except as required by law.
FAQ
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