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HARRISBURG, Pa. - Mid Penn Bancorp, Inc. (NASDAQ: MPB), the parent company of Mid Penn Bank, has reported an increase in net income available to common shareholders for the first quarter of 2025. The reported earnings were $13.7 million, or $0.71 per diluted common share, surpassing the consensus analyst estimate of $0.63 per diluted common share for the quarter. According to InvestingPro data, the company maintains strong profitability with a P/E ratio of 9.27, trading at attractive valuations relative to its near-term earnings growth potential.
The company’s net interest margin for the quarter ended March 31, 2025, rose to 3.37%, compared to 2.97% for the same period in 2024, marking a 40 basis point increase. This growth is attributed to a decrease in deposit costs following the Federal Reserve’s interest rate cuts in the latter half of 2024. The bank’s financial health score of 2.68 on InvestingPro indicates good overall performance, despite facing challenges with gross profit margins.
Mid Penn also reported loan growth of $48.1 million, or 4.4% (annualized), and an increase in deposits of $42.3 million, or 3.7% (annualized), during the first quarter of 2025. Total loans reached $4.5 billion, while deposits grew to $4.7 billion at the end of the quarter.
The company’s book value per common share improved to $34.50 as of March 31, 2025, from $33.26 a year earlier. Additionally, the core efficiency ratio improved to 62.79% in the first quarter of 2025, compared to 68.8% in the first quarter of 2024.
In light of these results, the Board of Directors declared a cash dividend of $0.20 per common share, payable on May 26, 2025, to shareholders of record as of May 8, 2025. This marks the company’s 58th consecutive quarterly dividend. With a current dividend yield of 3.04% and a remarkable 15-year track record of consistent dividend payments, Mid Penn demonstrates strong commitment to shareholder returns. InvestingPro subscribers can access additional insights about the company’s dividend sustainability and growth potential, along with 5 more exclusive ProTips.
Mid Penn also announced that it had received all necessary regulatory approvals for its planned merger with William Penn Bank, with shareholder approvals obtained on April 2, 2025. The merger is expected to close in the middle of the second quarter of 2025.
The company’s solid performance in the first quarter of 2025 continues the positive trend from 2024, despite a challenging economic environment. The reported figures are based on a press release statement from Mid Penn Bancorp, Inc.
In other recent news, Mid Penn Bancorp announced the approval of its proposed acquisition of William Penn Bancorporation, following a significant majority of shareholder votes in favor of the merger. This strategic move is expected to expand Mid Penn’s market presence into the Greater Philadelphia Metro area, as well as Southeastern Pennsylvania and Central and Southern New Jersey, with projected total assets of approximately $6.3 billion post-merger. While management anticipates positive impacts on financial performance and growth strategies, they also acknowledge potential risks and uncertainties, including legal proceedings and integration challenges. Additionally, Mid Penn Bancorp has introduced a new Executive Annual Incentive Plan aimed at enhancing profitability and growth. The plan aligns executive financial interests with company performance through annual cash and/or equity bonuses, contingent on meeting specific performance objectives. These objectives, which may include metrics like net income and efficiency ratio, will be determined by the Compensation Committee of the Board. The incentive plan also includes discretionary bonuses and a three-year vesting period for equity awards, with recovery provisions in place. These developments reflect Mid Penn Bancorp’s ongoing strategy to attract and retain key contributors to its success.
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