Mid Penn Bancorp, Inc. Reports Q1 2026 Earnings, Dividend Declaration, and Expands Share Repurchase Program

Key Highlights from the Q1 2026 Report

• Net Income: For the quarter ended March 31, 2026, Mid Penn Bancorp, Inc. (“Mid Penn”; NASDAQ: MPB) reported net income available to common shareholders of \$8.7 million, or \$0.36 per basic and diluted share. This compares with \$13.7 million, or \$0.71 per share in Q1 2025.
• Adjusted Earnings: Adjusted earnings per common share (excluding non-recurring income and expenses) were \$0.64, with adjusted net income up 10% year-on-year to \$15.3 million (vs. \$13.9 million in Q1 2025). The lower EPS reflects a higher average share count after recent acquisitions.
• Dividend Declaration: The Board declared a quarterly cash dividend of \$0.22 per common share, payable May 15, 2026, to shareholders of record as of May 4, 2026. This marks the 62nd consecutive quarterly dividend.
• Treasury Stock Repurchase Program Expanded: The Board renewed and expanded the treasury stock repurchase program, now authorizing the repurchase of up to an additional \$50 million of common stock through April 30, 2027. Repurchases may be conducted via open market or private transactions, including under Rule 10b5-1.
• Net Interest Margin: Increased to 3.80% for Q1 2026, up from 3.79% in Q4 2025 and 3.37% in Q1 2025.
• Recent M&A Activity: The quarter included significant one-time merger-related expenses, notably the finalization of the Cumberland Advisors and 1st Colonial acquisitions, and the 2025 William Penn acquisition.
• Asset Growth: Loans (net of unearned income) rose to \$5.51 billion from \$4.86 billion at December 31, 2025. Investment securities increased to \$830.5 million from \$769.0 million at year-end.
• Capital Position: Shareholders’ equity at March 31, 2026 stood at \$887.4 million. Book value per common share was \$35.08 and tangible book value per share was \$27.56.
• Profitability: Return on average assets was 0.55%, and return on average equity was 4.18% for Q1 2026. Return on average tangible common equity (non-GAAP) was 5.82%.
• Asset Quality & Capital: Tier 1 capital to average assets was 11.4%, and Common Tier 1 capital to risk-weighted assets was 12.7%.

Details and Analysis

Quarterly Results and Adjusted Performance:
While reported net income declined year-on-year due to one-time items, adjusted results show underlying earnings power remains robust. The Company absorbed \$7.7 million in merger-related expenses and \$370,000 of other non-recurring expenses. Excluding these, adjusted net income grew 10%. The lower EPS is attributed to share count dilution from recent acquisitions.

Balance Sheet Expansion:
Total loans and investment securities grew materially, reflecting the impact of acquisitions and organic growth. The Company’s capital position remains strong, supporting continued growth and shareholder returns.

Net Interest Margin Improvement:
The net interest margin (NIM) improvement reflects effective asset-liability management amid a competitive rate environment, with NIM at 3.80%—a notable increase from the prior year.

Dividend Continuity:
The declared dividend marks the 62nd consecutive quarterly payout, underlining management’s commitment to shareholder returns.

Share Repurchase Program Expansion:
The Board’s renewal and significant expansion of the stock repurchase program—to include up to an additional \$50 million of repurchases through April 2027—signals confidence in the Company’s capital position and future prospects. This could provide support for the share price and potentially be accretive to EPS, depending on execution and timing.

Merger Integration and Costs:
The Company incurred substantial one-time costs related to the integration of acquired businesses (Cumberland Advisors, 1st Colonial, and William Penn), temporarily depressing reported net results. Management expects to realize efficiencies and cost savings from these integrations in coming quarters, which may positively impact future profitability.

Forward-Looking Statements:
Management cautions that forward-looking statements are subject to risks including interest rate environment, credit quality, integration of acquisitions, competitive pressures, and regulatory changes. Investors are encouraged to review risk factors in recent SEC filings.

Shareholder Considerations & Potential Price Sensitivity

• The expansion of the share repurchase program is a potentially price-sensitive event, reflecting management’s confidence and a likely positive signal for the market.
• The ongoing M&A integration and realization of anticipated cost synergies could drive future earnings growth.
• Dividend continuity supports income-oriented investors.
• Adjusted earnings growth, despite headline declines, suggests underlying operational strength.
• Share count dilution from acquisitions is a factor in per-share earnings, but capital and book value per share remain solid.

CEO Comment

“As a result of the one-time M&A costs related to the finalization of the Cumberland Advisors and the 1st Colonial acquisitions, as well as other significant one-time expenses unrelated to M&A as discussed further within this release, the quarter was unusually noisy relative to analyst expectations. To reward our shareholders, we are happy to declare a quarterly cash dividend of \$0.22 per common share, payable May 15, 2026, to shareholders of record as of May 4, 2026. We are also pleased to announce the reauthorization and expansion of our treasury stock repurchase program, which now accommodates up to an additional \$50 million in repurchase activity.”

— Rory G. Ritrievi, Chair, President & CEO

Disclaimer

This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. Investors should review the Company’s filings with the SEC and consult with their financial advisor before making investment decisions.

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