Mid Penn Bancorp Reports Strong Q3 2025 Financial Growth with $18.3 Million Net Income

Mid Penn Bancorp, Inc. reported significant financial growth in its latest quarterly results, with net income for the third quarter of 2025 reaching $18.3 million, or $0.80 per share, compared to $12.3 million, or $0.74 per share, in the same period last year. For the nine months ending September 30, 2025, net income totaled $36.8 million, slightly up from $36.2 million in the prior year. The increase in earnings was attributed to a rise in net interest income, which amounted to $53.6 million for the quarter, up from $40.2 million a year earlier, driven by a higher net interest margin of 3.60%, compared to 3.13% in the previous year.

Total assets for Mid Penn increased by $796.4 million, or 14.6%, to $6.3 billion as of September 30, 2025, primarily due to the acquisition of William Penn Bancorp, which added $405.3 million in loans and $619.8 million in deposits. Total loans reached $4.8 billion, reflecting an 8.5% increase from the end of 2024, while total deposits rose to $5.3 billion, a 13.9% increase. The growth in deposits was largely driven by interest-bearing transaction accounts, which increased by $538.3 million.

In terms of operational developments, Mid Penn completed the acquisition of William Penn on April 30, 2025, which included 12 branches and expanded its presence in the Philadelphia region. Additionally, the company entered into a merger agreement with 1st Colonial Bancorp, valued at approximately $101 million, expected to close in the first half of 2026. Mid Penn also announced plans to acquire Cumberland Advisors, further enhancing its investment management capabilities.

The company reported a slight increase in its allowance for credit losses (ACL) to $37.3 million, or 0.77% of total loans, down from 0.80% at the end of 2024. Nonperforming assets rose to $27.3 million, primarily due to two commercial real estate loans entering foreclosure. The net charge-offs for the quarter were $91,000, a decrease from $347,000 in the same quarter last year, indicating improved credit quality.

Looking ahead, Mid Penn anticipates continued growth driven by its recent acquisitions and a focus on expanding its loan portfolio. The company remains committed to maintaining strong liquidity and capital ratios, with total shareholders' equity increasing to $796.3 million as of September 30, 2025, reflecting a 21.6% increase from the previous year. Management is optimistic about future performance, although they acknowledge potential risks related to economic conditions and regulatory changes.