Mid Penn Bancorp Q3 net income rises 18.2% to $21.6 million

Harrisburg, PA, October 21, 2026, Mid Penn Bancorp, Inc. reported net income available to common shareholders of $21.6 million for the third quarter ended September 30, 2026. This represented an 18.2% increase from $18.3 million in the same period last year. The bank declared its 64th consecutive quarterly cash dividend of $0.23 per common share.

Basic earnings per common share reached $0.85, up from $0.80 in the third quarter of 2025. Diluted earnings per common share were $0.84, compared to $0.79 a year earlier. Adjusted earnings per common share, which exclude non-recurring items, stood at $0.88 for the quarter. The adjustment removed $1.3 million in non-recurring expenses and $789 thousand in non-recurring income.

Total loan balances grew by $19.3 million during the quarter, a 1.4% annualized increase from the second quarter of 2026. Compared to September 30, 2025, total loans increased by $815.3 million to reach $5.6 billion. This year-over-year growth included $597.5 million in loans acquired through the 1st Colonial acquisition. Excluding that acquisition, organic loan growth was $176.2 million, or 4.84% annualized, from December 31, 2025.

Deposits rose by $141.8 million during the quarter, an annualized increase of 9.4% from the prior period. Interest-bearing transaction accounts drove this growth with a $251.8 million increase, while time deposits fell by $59.9 million and noninterest-bearing deposits dropped by $50.1 million. Total deposits reached $6.1 billion as of September 30, 2026, up from a year earlier by $752.3 million, or 14.1%. Organic deposit growth, excluding the $747.1 million acquired from 1st Colonial, was $133.3 million, or 3.4% annualized, from year-end 2025.

Net interest margin decreased by 14 basis points to 3.92% for the quarter, down from 4.06% in the second quarter of 2026. This decline was primarily due to lower loan yields resulting from reduced purchase accounting accretion income and higher funding costs, partially offset by higher investment securities yields. Year-over-year, net interest margin increased by 32 basis points from 3.60% in the third quarter of 2025.

The core efficiency ratio remained stable at 60.57% for the third quarter of 2026, compared to 59.82% in the second quarter and 58.80% in the third quarter of 2025. On a tax-effected basis, the ratio was 60.38%. Mid Penn closed certain financial centers during the quarter to improve operating efficiency, with expected expense savings and an earnback period of less than one year.

Book value per common share remained unchanged at $35.62 as of September 30, 2026, matching the June 30 figure and rising from $34.56 a year earlier. Tangible book value per common share was $28.26, up from $27.96 in September 2025.

Net interest income for the three months ended September 30, 2026, was $64.6 million, compared to $65.3 million in the prior quarter and $53.6 million in the year-ago period. This figure includes $3.1 million in loan accretion income related to fair value marks on acquired loans.

Rory G. Ritrievi, Chair, President and CEO of Mid Penn Bancorp, stated that strong deposit growth was partially offset by softer-than-expected loan growth and noninterest income generation in the third quarter. He noted that effective expense management and strong asset quality kept results in line with expectations.

The dividend is payable on November 13, 2026, to shareholders of record as of November 2, 2026.