Key Highlights of the Third Quarter of 2023
- Organic loan growth for the third quarter of 2023 was
$111.1 million , or 10.9% (annualized), from the second quarter of 2023.
- Organic deposit growth for the quarter ended
September 30, 2023 was$94.9 million , or 8.8% (annualized), from the second quarter of 2023.
- Credit quality strengthened during the third quarter of 2023 with nonperforming assets declining
$1.6 million fromJune 30, 2023 .
“The third quarter of 2023 was a challenging one for Mid Penn, mostly due to external forces beyond our control. Chief among them was an inverted yield curve throughout the quarter that had our base borrowing rate, the effective funds rate, higher than our base lending rate, the 5-year
Ritrievi added, “The residential mortgage business, a significant portion of our noninterest revenues, continues to be impacted by elevated rates, which have dampened productivity across the country. Our ongoing response to these pressures is to find expense cuts throughout the company that will help us preserve net income for not only the fourth quarter of 2023 but also fiscal year 2024. We take these measures while also focusing on the positive aspects of the third quarter, which were: significant organic growth on both sides of the balance sheet, a continuous improvement in our asset quality metrics, and continued growth in shareholder equity.”
For the third quarter of 2023, the Board is pleased to announce a quarterly cash dividend of
(1) Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document.
Net Interest Income
For the three months ended
The yield on interest-earning assets increased to 5.35% for the quarter ended
For the nine months ended
Average Balances
Average loans increased
The mix of deposits continues to shift as customers move funds from non-interest-bearing accounts to time deposits given prevailing thought that current rates are at highs. Time deposits represented 22.8% of total deposits at
Asset Quality
On
The provision for credit losses on loans was
Total nonperforming assets were
Capital
Shareholders’ equity increased
On
Noninterest Income
For the three months ended
For the nine months ended
Noninterest Expense
Noninterest expense totaled
The efficiency ratio(1) was 67.9% in the third quarter of 2023, compared to 65.4% in the second quarter of 2023, and 53.5% in the third quarter of 2022. Mid Penn is currently evaluating levels of noninterest expense for opportunities to reduce operating costs throughout the organization.
Subsequent Events
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
(1) Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document.
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; 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; legislation affecting the financial services industry as a whole, and
For a more detailed description of these and other factors which would affect our results, please see Mid Penn’s filings with the
SUMMARY FINANCIAL HIGHLIGHTS (Unaudited):
(Dollars in thousands, except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||
Ending Balances: | |||||||||||||||||||
Investment securities | $ | 620,038 | $ | 634,038 | $ | 633,831 | $ | 637,802 | $ | 644,765 | |||||||||
Loans, net of unearned interest | 4,111,653 | 4,001,922 | 3,580,082 | 3,495,162 | 3,303,977 | ||||||||||||||
Total assets | 5,215,963 | 5,088,813 | 4,583,465 | 4,497,954 | 4,333,903 | ||||||||||||||
Total deposits | 4,381,616 | 4,286,686 | 3,878,081 | 3,778,331 | 3,729,596 | ||||||||||||||
Shareholders' equity | 528,711 | 525,888 | 510,793 | 512,099 | 499,105 | ||||||||||||||
Average Balances: | |||||||||||||||||||
Investment securities | 619,071 | 630,750 | 636,151 | 640,792 | 626,447 | ||||||||||||||
Loans, net of unearned interest | 4,053,514 | 3,808,717 | 3,555,375 | 3,395,308 | 3,237,587 | ||||||||||||||
Total assets | 5,106,103 | 4,827,786 | 4,520,869 | 4,381,213 | 4,339,783 | ||||||||||||||
Total deposits | 4,361,067 | 4,057,605 | 3,782,990 | 3,727,287 | 3,726,658 | ||||||||||||||
Shareholders' equity | 529,067 | 504,535 | 510,857 | 505,769 | 502,082 | ||||||||||||||
Three Months Ended | |||||||||||||||||||
Income Statement: | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||
Net interest income | $ | 37,480 | $ | 36,444 | $ | 36,049 | $ | 38,577 | $ | 39,409 | |||||||||
Provision for credit losses | 1,427 | 1,157 | 490 | 525 | 1,550 | ||||||||||||||
Noninterest income | 5,346 | 5,220 | 4,325 | 6,714 | 5,963 | ||||||||||||||
Noninterest expense | 29,889 | 35,529 | 26,070 | 25,468 | 24,715 | ||||||||||||||
Income before provision for income taxes | 11,510 | 4,978 | 13,814 | 19,298 | 19,107 | ||||||||||||||
Provision for income taxes | 2,274 | 142 | 2,587 | 3,579 | 3,626 | ||||||||||||||
Net income available to shareholders | 9,236 | 4,836 | 11,227 | 15,719 | 15,481 | ||||||||||||||
Net income excluding non-recurring expenses(1) | 9,514 | 11,112 | 11,404 | 15,951 | 15,481 | ||||||||||||||
Per Share: | |||||||||||||||||||
Basic earnings per common share | $ | 0.56 | $ | 0.29 | $ | 0.71 | $ | 0.99 | $ | 0.97 | |||||||||
Diluted earnings per common share | 0.56 | 0.29 | 0.70 | 0.99 | 0.97 | ||||||||||||||
Cash dividends declared | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 | ||||||||||||||
Book value per common share | 31.89 | 31.74 | 32.15 | 32.24 | 31.42 | ||||||||||||||
Tangible book value per common share(1) | 23.63 | 23.48 | 24.52 | 24.59 | 23.80 | ||||||||||||||
Asset Quality: | |||||||||||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.001 | % | 0.018 | % | 0.013 | % | 0.006 | % | (0.007 | %) | |||||||||
Non-performing loans to total loans | 0.33 | 0.39 | 0.38 | 0.25 | 0.23 | ||||||||||||||
Non-performing asset to total loans and other real estate | 0.36 | 0.40 | 0.39 | 0.25 | 0.23 | ||||||||||||||
Non-performing asset to total assets | 0.28 | 0.32 | 0.31 | 0.21 | 0.18 | ||||||||||||||
ACL on loans to total loans | 0.82 | 0.81 | 0.87 | 0.54 | 0.56 | ||||||||||||||
ACL on loans to nonperforming loans | 245.91 | 205.65 | 225.71 | 220.82 | 242.23 | ||||||||||||||
Profitability: | |||||||||||||||||||
Return on average assets | 0.72 | % | 0.40 | % | 1.01 | % | 1.42 | % | 1.42 | % | |||||||||
Return on average equity | 6.93 | 3.84 | 8.91 | 12.33 | 12.23 | ||||||||||||||
Return on average tangible common equity(1) | 9.72 | 5.53 | 11.97 | 16.61 | 16.55 | ||||||||||||||
Net interest margin | 3.16 | 3.29 | 3.49 | 3.80 | 3.92 | ||||||||||||||
Efficiency ratio(1) | 67.88 | 65.40 | 63.16 | 54.59 | 53.46 | ||||||||||||||
Capital Ratios: | |||||||||||||||||||
Tier 1 Capital (to Average Assets)(2) | 8.4 | % | 9.6 | % | 9.2 | % | 10.7 | % | 9.6 | % | |||||||||
Common Tier 1 Capital (to Risk Weighted Assets)(2) | 9.7 | 10.7 | 10.8 | 12.5 | 11.4 | ||||||||||||||
Tier 1 Capital (to Risk Weighted Assets)(2) | 9.7 | 10.7 | 10.8 | 12.5 | 11.7 | ||||||||||||||
Total Capital (to Risk Weighted Assets)(2) | 11.7 | 11.5 | 13.1 | 14.5 | 13.8 |
(1) Non-GAAP financial measure. Refer to the calculation on the section titled “Reconciliation of Non-GAAP Measures” at the end of this document.
(2) Regulatory capital ratios as of
CONSOLIDATED BALANCE SHEETS (Unaudited):
(In thousands, except share data) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 52,509 | $ | 70,832 | $ | 51,158 | $ | 53,368 | $ | 76,018 | |||||||||
Interest-bearing balances with other financial institutions | 12,739 | 13,332 | 4,996 | 4,405 | 4,520 | ||||||||||||||
Federal funds sold | 52,851 | 9,711 | 6,017 | 3,108 | 14,140 | ||||||||||||||
Total cash and cash equivalents | 118,099 | 93,875 | 62,171 | 60,881 | 94,678 | ||||||||||||||
Held to maturity, at amortized cost | 401,561 | 404,831 | 396,784 | 399,494 | 402,142 | ||||||||||||||
Available for sale, at fair value | 218,064 | 228,774 | 236,609 | 237,878 | 242,195 | ||||||||||||||
Equity securities available for sale, at fair value | 413 | 433 | 438 | 430 | 428 | ||||||||||||||
Loans held for sale | 4,270 | 7,258 | 2,677 | 2,475 | 5,997 | ||||||||||||||
Loans, net of unearned interest | 4,145,657 | 4,034,510 | 3,611,347 | 3,514,119 | 3,322,457 | ||||||||||||||
Less: Allowance for credit losses | (34,004 | ) | (32,588 | ) | (31,265 | ) | (18,957 | ) | (18,480 | ) | |||||||||
Net loans | 4,111,653 | 4,001,922 | 3,580,082 | 3,495,162 | 3,303,977 | ||||||||||||||
Premises and equipment, net | 38,849 | 39,230 | 34,191 | 34,471 | 33,854 | ||||||||||||||
Operating lease right of use asset | 8,693 | 9,106 | 8,414 | 8,798 | 8,352 | ||||||||||||||
Finance lease right of use asset | 2,773 | 2,817 | 2,862 | 2,907 | 2,952 | ||||||||||||||
Cash surrender value of life insurance | 54,209 | 53,931 | 50,928 | 50,674 | 50,419 | ||||||||||||||
Restricted investment in bank stocks | 13,554 | 11,646 | 8,041 | 8,315 | 4,595 | ||||||||||||||
Accrued interest receivable | 24,230 | 19,626 | 19,205 | 18,405 | 15,861 | ||||||||||||||
Deferred income taxes | 25,509 | 24,309 | 15,548 | 13,674 | 16,093 | ||||||||||||||
129,897 | 129,403 | 114,231 | 114,231 | 113,871 | |||||||||||||||
Core deposit and other intangibles, net | 6,970 | 7,453 | 6,916 | 7,260 | 7,215 | ||||||||||||||
Foreclosed assets held for sale | 905 | 489 | 248 | 43 | 49 | ||||||||||||||
Other assets | 56,314 | 53,710 | 44,120 | 42,856 | 31,225 | ||||||||||||||
Total Assets | $ | 5,215,963 | $ | 5,088,813 | $ | 4,583,465 | $ | 4,497,954 | $ | 4,333,903 | |||||||||
LIABILITIES & SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing demand | $ | 804,785 | $ | 830,479 | $ | 797,038 | $ | 793,939 | $ | 863,037 | |||||||||
Interest-bearing transaction accounts | 2,217,885 | 2,180,312 | 2,197,216 | 2,325,847 | 2,414,272 | ||||||||||||||
Time | 1,358,946 | 1,275,895 | 883,827 | 658,545 | 452,287 | ||||||||||||||
Total Deposits | 4,381,616 | 4,286,686 | 3,878,081 | 3,778,331 | 3,729,596 | ||||||||||||||
Short-term borrowings | 139,000 | 112,442 | 88,000 | 102,647 | — | ||||||||||||||
Long-term debt | 58,992 | 58,982 | 4,316 | 4,409 | 4,501 | ||||||||||||||
Subordinated debt and trust preferred securities | 46,501 | 46,648 | 56,794 | 56,941 | 66,357 | ||||||||||||||
Operating lease liability | 9,097 | 9,894 | 9,270 | 9,725 | 10,261 | ||||||||||||||
Accrued interest payable | 14,657 | 11,115 | 5,809 | 2,303 | 1,841 | ||||||||||||||
Other liabilities | 37,389 | 37,158 | 30,402 | 31,499 | 22,242 | ||||||||||||||
Total Liabilities | 4,687,252 | 4,562,925 | 4,072,672 | 3,985,855 | 3,834,798 | ||||||||||||||
Shareholders' Equity: | |||||||||||||||||||
Common stock, par value | 16,993 | 16,980 | 16,098 | 16,094 | 16,091 | ||||||||||||||
Additional paid-in capital | 405,341 | 404,902 | 387,332 | 386,987 | 386,452 | ||||||||||||||
Retained earnings | 137,199 | 131,271 | 129,617 | 133,114 | 120,572 | ||||||||||||||
Accumulated other comprehensive loss | (21,362 | ) | (17,805 | ) | (17,374 | ) | (19,216 | ) | (19,130 | ) | |||||||||
(9,460 | ) | (9,460 | ) | (4,880 | ) | (4,880 | ) | (4,880 | ) | ||||||||||
Total Shareholders’ Equity | 528,711 | 525,888 | 510,793 | 512,099 | 499,105 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 5,215,963 | $ | 5,088,813 | $ | 4,583,465 | $ | 4,497,954 | $ | 4,333,903 |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited):
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | 2023 | 2022 | |||||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||||||||
Loans, including fees | $ | 58,792 | $ | 52,094 | $ | 45,865 | $ | 42,492 | $ | 38,484 | $ | 156,751 | $ | 107,764 | ||||||||||||
Investment securities: | ||||||||||||||||||||||||||
Taxable | 4,106 | 3,962 | 3,874 | 3,784 | 3,382 | 11,942 | 8,168 | |||||||||||||||||||
Tax-exempt | 382 | 391 | 389 | 390 | 392 | 1,162 | 1,107 | |||||||||||||||||||
Other interest-bearing balances | 86 | 83 | 53 | 36 | 12 | 222 | 33 | |||||||||||||||||||
Federal funds sold | 51 | 49 | 45 | 40 | 736 | 145 | 1,786 | |||||||||||||||||||
Total Interest Income | 63,417 | 56,579 | 50,226 | 46,742 | 43,006 | 170,222 | 118,858 | |||||||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||||||||
Deposits | 23,559 | 17,927 | 12,001 | 6,995 | 2,836 | 53,487 | 7,149 | |||||||||||||||||||
Short-term borrowings | 1,584 | 1,507 | 1,490 | 441 | — | 4,581 | — | |||||||||||||||||||
Long-term and subordinated debt | 794 | 701 | 686 | 729 | 761 | 2,181 | 2,453 | |||||||||||||||||||
Total Interest Expense | 25,937 | 20,135 | 14,177 | 8,165 | 3,597 | 60,249 | 9,602 | |||||||||||||||||||
Net Interest Income | 37,480 | 36,444 | 36,049 | 38,577 | 39,409 | 109,973 | 109,256 | |||||||||||||||||||
PROVISION FOR CREDIT LOSSES | 1,427 | 1,157 | 490 | 525 | 1,550 | 3,074 | 3,775 | |||||||||||||||||||
Net Interest Income After Provision for Credit Losses | 36,053 | 35,287 | 35,559 | 38,052 | 37,859 | 106,899 | 105,481 | |||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||||||||
Fiduciary and wealth management | 1,296 | 1,204 | 1,236 | 1,085 | 1,729 | 3,736 | 3,986 | |||||||||||||||||||
ATM debit card interchange | 986 | 998 | 1,056 | 1,099 | 1,078 | 3,040 | 3,263 | |||||||||||||||||||
Service charges on deposits | 509 | 514 | 435 | 461 | 483 | 1,458 | 1,617 | |||||||||||||||||||
Mortgage banking | 382 | 287 | 384 | 237 | 536 | 1,053 | 1,370 | |||||||||||||||||||
Mortgage hedging | 67 | 128 | 20 | 150 | 217 | 215 | 1,321 | |||||||||||||||||||
Net gain on sales of SBA loans | 85 | 128 | — | — | 152 | 213 | 262 | |||||||||||||||||||
Earnings from cash surrender value of life insurance | 278 | 292 | 254 | 255 | 250 | 824 | 758 | |||||||||||||||||||
Other | 1,743 | 1,669 | 940 | 3,427 | 1,518 | 4,352 | 4,366 | |||||||||||||||||||
Total Noninterest Income | 5,346 | 5,220 | 4,325 | 6,714 | 5,963 | 14,891 | 16,943 | |||||||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||||||||
Salaries and employee benefits | 15,259 | 15,027 | 13,844 | 13,434 | 13,583 | 44,130 | 39,167 | |||||||||||||||||||
Software licensing and utilization | 2,085 | 2,070 | 1,946 | 1,793 | 1,804 | 6,101 | 5,731 | |||||||||||||||||||
Occupancy, net | 1,761 | 1,750 | 1,886 | 1,812 | 1,634 | 5,397 | 5,088 | |||||||||||||||||||
Equipment | 1,292 | 1,248 | 1,251 | 1,249 | 1,121 | 3,791 | 3,244 | |||||||||||||||||||
Shares tax | 808 | 751 | 899 | 160 | 920 | 2,458 | 2,626 | |||||||||||||||||||
Legal and professional fees | 890 | 602 | 800 | 900 | 528 | 2,292 | 1,861 | |||||||||||||||||||
ATM/card processing | 641 | 532 | 493 | 534 | 518 | 1,666 | 1,605 | |||||||||||||||||||
Intangible amortization | 484 | 461 | 344 | 496 | 514 | 1,289 | 1,516 | |||||||||||||||||||
FDIC Assessment | 1,746 | 684 | 340 | 243 | 254 | 2,770 | 1,351 | |||||||||||||||||||
(Gain) loss on sale or write-down of foreclosed assets, net | (18 | ) | (126 | ) | — | (45 | ) | (57 | ) | (144 | ) | (88 | ) | |||||||||||||
Merger and acquisition | 352 | 4,992 | 224 | 294 | — | 5,568 | — | |||||||||||||||||||
Post-acquisition restructuring | — | 2,952 | — | — | — | 2,952 | 329 | |||||||||||||||||||
Other | 4,589 | 4,586 | 4,043 | 4,598 | 3,896 | 13,218 | 11,945 | |||||||||||||||||||
Total Noninterest Expense | 29,889 | 35,529 | 26,070 | 25,468 | 24,715 | 91,488 | 74,375 | |||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 11,510 | 4,978 | 13,814 | 19,298 | 19,107 | 30,302 | 48,049 | |||||||||||||||||||
Provision for income taxes | 2,274 | 142 | 2,587 | 3,579 | 3,626 | 5,003 | 8,962 | |||||||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 9,236 | $ | 4,836 | $ | 11,227 | $ | 15,719 | $ | 15,481 | $ | 25,299 | $ | 39,087 | ||||||||||||
PER COMMON SHARE DATA: | ||||||||||||||||||||||||||
Basic Earnings Per Common Share | $ | 0.56 | $ | 0.29 | $ | 0.71 | $ | 0.99 | $ | 0.97 | $ | 1.56 | $ | 2.45 | ||||||||||||
Diluted Earnings Per Common Share | $ | 0.56 | $ | 0.29 | $ | 0.70 | $ | 0.99 | $ | 0.97 | $ | 1.56 | $ | 2.45 | ||||||||||||
Cash Dividends Declared | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 |
CONSOLIDATED – AVERAGE BALANCE SHEET AND NET INTEREST INCOME ANALYSIS (Unaudited):
Average Balances, Income and Interest Rates on a Taxable Equivalent Basis | ||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||
(Dollars in thousands) | Average Balance | Interest(1) | Yield/ Rate | Average Balance | Interest(1) | Yield/ Rate | Average Balance | Interest(1) | Yield/ Rate | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||||||
Interest Bearing Balances | $ | 12,804 | $ | 86 | 2.66 | % | $ | 7,777 | $ | 83 | 4.28 | % | $ | 5,583 | $ | 12 | 0.85 | % | ||||||||||
Taxable | 541,403 | 3,846 | 2.82 | 551,832 | 3,783 | 2.75 | 546,439 | 3,369 | 2.45 | |||||||||||||||||||
Tax-Exempt | 77,668 | 382 | 1.95 | 78,918 | 495 | 2.52 | 80,008 | 496 | 2.46 | |||||||||||||||||||
619,071 | 4,228 | 2.71 | 630,750 | 4,278 | 2.72 | 626,447 | 3,865 | 2.45 | ||||||||||||||||||||
Federal Funds Sold | 8,260 | 51 | 2.45 | 6,035 | 49 | 3.26 | 131,089 | 736 | 2.23 | |||||||||||||||||||
Loans, Net of Unearned Interest | 4,053,514 | 58,792 | 5.75 | 3,808,717 | 52,192 | 5.50 | 3,237,587 | 38,573 | 4.73 | |||||||||||||||||||
10,968 | 260 | 9.40 | 10,177 | 179 | 7.05 | 4,322 | 13 | 1.19 | ||||||||||||||||||||
Total Earning Assets | 4,704,617 | 63,417 | 5.35 | 4,463,456 | 56,781 | 5.10 | 4,005,028 | 43,199 | 4.28 | |||||||||||||||||||
Cash and Due from | 77,122 | 70,378 | 69,751 | |||||||||||||||||||||||||
Other Assets | 324,364 | 293,953 | 265,004 | |||||||||||||||||||||||||
Total Assets | $ | 5,106,103 | $ | 4,827,787 | $ | 4,339,783 | ||||||||||||||||||||||
LIABILITIES & SHAREHOLDERS' EQUITY: | ||||||||||||||||||||||||||||
Interest-bearing Demand | $ | 960,052 | $ | 3,899 | 1.61 | % | $ | 936,687 | $ | 3,216 | 1.38 | % | $ | 1,072,496 | $ | 873 | 0.32 | % | ||||||||||
Money Market | 929,036 | 5,969 | 2.55 | 929,774 | 5,104 | 2.20 | 994,446 | 1,097 | 0.44 | |||||||||||||||||||
Savings | 308,732 | 60 | 0.08 | 319,728 | 64 | 0.08 | 352,024 | 43 | 0.05 | |||||||||||||||||||
Time | 1,308,945 | 13,631 | 4.13 | 1,061,276 | 9,543 | 3.61 | 464,273 | 823 | 0.70 | |||||||||||||||||||
Total Interest-bearing Deposits | 3,506,765 | 23,559 | 2.67 | 3,247,465 | 17,927 | 2.21 | 2,883,239 | 2,836 | 0.39 | |||||||||||||||||||
Short term borrowings | 64,282 | 1,585 | 9.78 | 94,067 | 1,507 | 6.43 | — | — | — | |||||||||||||||||||
Long-term debt | 76,515 | 332 | 1.72 | 54,347 | 194 | 1.43 | 4,537 | 150 | 13.12 | |||||||||||||||||||
Subordinated debt and trust preferred securities | 46,377 | 461 | 3.94 | 47,782 | 507 | 4.26 | 69,523 | 611 | 3.49 | |||||||||||||||||||
Total Interest-bearing Liabilities | 3,693,939 | 25,937 | 2.79 | 3,443,661 | 20,135 | 2.35 | 2,957,299 | 3,597 | 0.48 | |||||||||||||||||||
Noninterest-bearing Demand | 854,302 | 810,140 | 843,419 | |||||||||||||||||||||||||
Other Liabilities | 28,795 | 69,451 | 36,983 | |||||||||||||||||||||||||
Shareholders' Equity | 529,067 | 504,535 | 502,082 | |||||||||||||||||||||||||
Total Liabilities & Shareholders' Equity | $ | 5,106,103 | $ | 4,827,787 | $ | 4,339,783 | ||||||||||||||||||||||
Net Interest Income (taxable equivalent basis) | $ | 37,480 | $ | 36,646 | $ | 39,602 | ||||||||||||||||||||||
Taxable Equivalent Adjustment | 80 | (202 | ) | (193 | ) | |||||||||||||||||||||||
Net Interest Income | $ | 37,560 | $ | 36,444 | $ | 39,409 | ||||||||||||||||||||||
Total Yield on Earning Assets | 5.35 | % | 5.10 | % | 4.28 | % | ||||||||||||||||||||||
Rate on Supporting Liabilities | 2.79 | 2.35 | 0.48 | |||||||||||||||||||||||||
Average Interest Spread | 2.56 | 2.76 | 3.80 | |||||||||||||||||||||||||
Net Interest Margin | 3.16 | 3.29 | 3.92 |
(1) Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance.
ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited):
(Dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||
Allowance for Credit Losses on Loans: | |||||||||||||||||||
Beginning balance | $ | 32,588 | $ | 31,265 | $ | 18,957 | $ | 18,480 | $ | 16,876 | |||||||||
Impact of adopting CECL | — | — | 11,931 | — | — | ||||||||||||||
Purchase credit deteriorated loans | — | 336 | — | — | — | ||||||||||||||
Loans Charged off | |||||||||||||||||||
Commercial real estate | — | — | (16 | ) | (7 | ) | — | ||||||||||||
Commercial and industrial | — | (109 | ) | (111 | ) | — | (1 | ) | |||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Residential mortgage | — | — | (4 | ) | (23 | ) | (3 | ) | |||||||||||
Consumer | (32 | ) | (65 | ) | (19 | ) | (20 | ) | (11 | ) | |||||||||
Total loans charged off | (32 | ) | (174 | ) | (150 | ) | (50 | ) | (15 | ) | |||||||||
Recoveries of loans previously charged off | |||||||||||||||||||
Commercial real estate | — | — | — | — | 63 | ||||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||
Residential mortgage | 7 | — | 30 | — | — | ||||||||||||||
Consumer | 14 | 4 | 7 | 2 | 6 | ||||||||||||||
Total recoveries | 21 | 4 | 37 | 2 | 69 | ||||||||||||||
Balance before provision | 32,577 | 31,431 | 30,775 | 18,432 | 16,930 | ||||||||||||||
Provision for credit losses | 1,427 | 1,157 | 490 | 525 | 1,550 | ||||||||||||||
Balance, end of quarter | $ | 34,004 | $ | 32,588 | $ | 31,265 | $ | 18,957 | $ | 18,480 | |||||||||
Nonperforming Assets | |||||||||||||||||||
Total nonperforming loans | 13,828 | 15,846 | 13,909 | 8,585 | 7,629 | ||||||||||||||
Foreclosed real estate | 905 | 489 | 248 | 43 | 49 | ||||||||||||||
Total nonperforming assets | 14,733 | 16,335 | 14,157 | 8,628 | 7,678 | ||||||||||||||
Accruing loans 90 days or more past due | 12 | 9 | 7 | 654 | 633 | ||||||||||||||
Total risk elements | $ | 14,745 | $ | 16,344 | $ | 14,164 | $ | 9,282 | $ | 8,311 |
PPP Summary
(Dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||
PPP loans, net of deferred fees | $ | 1,547 | $ | 1,633 | $ | 1,752 | $ | 2,600 | $ | 2,800 | ||||
PPP Fees recognized | $ | 3 | $ | 3 | $ | 5 | $ | 29 | $ | 99 |
RECONCILIATION OF NON-GAAP MEASURES (Unaudited)
Explanatory note: This press release contains financial information determined by methods other than in accordance with
Tangible Book Value Per Share
(Dollars in thousands, except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||
Shareholders' Equity | $ | 528,711 | $ | 525,888 | $ | 510,793 | $ | 512,099 | $ | 499,105 | ||||
Less: | 129,897 | 129,403 | 114,231 | 114,231 | 113,871 | |||||||||
Less: Core Deposit and Other Intangibles | 6,970 | 7,453 | 6,916 | 7,260 | 7,215 | |||||||||
Tangible Equity | $ | 391,844 | $ | 389,032 | $ | 389,646 | $ | 390,608 | $ | 378,019 | ||||
Common Shares Outstanding | 16,580,347 | 16,567,578 | 15,890,011 | 15,886,143 | 15,882,853 | |||||||||
Tangible Book Value per Share | $ | 23.63 | $ | 23.48 | $ | 24.52 | $ | 24.59 | $ | 23.80 |
Non-PPP Core Banking Loans
(Dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||
Loans, net of unearned interest | $ | 4,145,657 | $ | 4,034,510 | $ | 3,611,347 | $ | 3,514,119 | $ | 3,322,457 | ||||
Less: PPP loans, net of deferred fees | 1,547 | 1,633 | 1,752 | 2,600 | 2,800 | |||||||||
Non-PPP core banking loans | $ | 4,144,110 | $ | 4,032,877 | $ | 3,609,595 | $ | 3,511,519 | $ | 3,319,657 |
Adjusted Earnings Per Common Share Excluding Non-Recurring Expenses
Three Months Ended | ||||||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2023 | 2022 | 2022 | |||||||||
Net Income Available to Common Shareholders | $ | 9,236 | $ | 4,836 | $ | 11,227 | $ | 15,719 | $ | 15,481 | ||||
Plus: Merger and Acquisition Expenses | 352 | 7,944 | 224 | 294 | — | |||||||||
Less: Tax Effect of Merger and Acquisition Expenses | 74 | 1,668 | 47 | 62 | — | |||||||||
Net Income Excluding Non-Recurring Expenses | $ | 9,514 | $ | 11,112 | $ | 11,404 | $ | 15,951 | $ | 15,481 | ||||
Weighted Average Shares Outstanding | 16,571,825 | 16,235,106 | 15,886,186 | 15,883,003 | 15,877,592 | |||||||||
Adjusted Earnings Per Common Share Excluding Non-Recurring Expenses | $ | 0.57 | $ | 0.68 | $ | 0.72 | $ | 0.99 | $ | 0.97 |
Return on Average Tangible Common Equity
Three Months Ended | |||||||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||
Net income available to common shareholders | $ | 9,236 | $ | 4,836 | $ | 11,227 | $ | 15,719 | $ | 15,481 | |||||||||
Plus: Intangible amortization, net of tax | 382 | 364 | 272 | 392 | 406 | ||||||||||||||
$ | 9,618 | $ | 5,200 | $ | 11,499 | $ | 16,111 | $ | 15,887 | ||||||||||
Average shareholders' equity | $ | 529,067 | $ | 504,535 | $ | 510,857 | $ | 505,769 | $ | 502,082 | |||||||||
Less: Average goodwill | 129,428 | 120,284 | 114,231 | 113,879 | 113,835 | ||||||||||||||
Less: Average core deposit and other intangibles | 7,210 | 7,016 | 7,129 | 6,966 | 7,465 | ||||||||||||||
Average tangible shareholders' equity | $ | 392,429 | $ | 377,235 | $ | 389,497 | $ | 384,924 | $ | 380,782 | |||||||||
Return on average tangible common equity | 9.72 | % | 5.53 | % | 11.97 | % | 16.61 | % | 16.55 | % |
Efficiency Ratio
Three Months Ended | |||||||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2023 | 2022 | 2022 | ||||||||||||||
Noninterest expense | $ | 29,889 | $ | 35,529 | $ | 26,070 | $ | 25,468 | $ | 24,715 | |||||||||
Less: Merger and acquisition expenses | 352 | 7,944 | 224 | 294 | — | ||||||||||||||
Less: Intangible amortization | 484 | 461 | 344 | 496 | 514 | ||||||||||||||
Less: (Gain) loss on sale or write-down of foreclosed assets, net | (18 | ) | (126 | ) | — | (45 | ) | (57 | ) | ||||||||||
Efficiency ratio numerator | $ | 29,071 | $ | 27,250 | $ | 25,502 | $ | 24,723 | $ | 24,258 | |||||||||
Net interest income | 37,480 | 36,444 | 36,049 | 38,577 | 39,409 | ||||||||||||||
Noninterest income | 5,346 | 5,220 | 4,325 | 6,714 | 5,963 | ||||||||||||||
Efficiency ratio denominator | $ | 42,826 | $ | 41,664 | $ | 40,374 | $ | 45,291 | $ | 45,372 | |||||||||
Efficiency ratio | 67.88 | % | 65.40 | % | 63.16 | % | 54.59 | % | 53.46 | % |
Mid Penn Bancorp, Inc. 2407 Park Drive Harrisburg, PA 17110 1-866-642-7736 CONTACTSRory G. Ritrievi Chair, President & Chief Executive OfficerAllison S. Johnson Chief Financial Officer
Source:
2023 GlobeNewswire, Inc., source