Mid Penn Bancorp Reports $8.7 Million Net Income in Q1 2026, Driven by Increased Revenue and Acquisitions

Mid Penn Bancorp, Inc. reported a net income of $8.7 million, or $0.36 per share, for the first quarter of 2026, a decline from $13.7 million, or $0.71 per share, in the same period of 2025. The decrease in profitability is attributed to increased noninterest expenses, particularly from merger-related costs associated with recent acquisitions, including 1st Colonial Bancorp and Cumberland Advisors. Total revenue for the quarter was bolstered by a 30% increase in net interest income, which rose to $55.3 million from $42.5 million year-over-year, driven by a higher net interest margin of 3.80%, up from 3.37% in the prior year.

The company’s total assets increased by 13.5% to $7.0 billion as of March 31, 2026, compared to $6.1 billion at the end of 2025. This growth was primarily fueled by the acquisition of 1st Colonial, which added approximately $842.5 million in assets, including $597.5 million in loans. Total loans, net of unearned income, reached $5.5 billion, reflecting a 13.3% increase from the previous quarter, with notable contributions from residential mortgages and commercial real estate loans.

Mid Penn's deposit base also expanded significantly, increasing by $756.3 million, or 14.5%, to $6.0 billion, largely due to the deposits acquired from 1st Colonial. The composition of deposits shifted, with interest-bearing accounts growing substantially, indicating a strategic focus on enhancing the funding mix. The bank's allowance for credit losses (ACL) rose to $41.1 million, or 0.75% of total loans, reflecting a proactive approach to managing credit risk amid the integration of new loan portfolios.

Operationally, Mid Penn has been actively integrating its recent acquisitions, which include not only 1st Colonial but also Cumberland Advisors, enhancing its wealth management capabilities. The company incurred $7.7 million in merger and acquisition expenses during the quarter, which significantly impacted noninterest expenses that totaled $52.0 million, a 69.6% increase from the previous year. The bank's employee headcount has also increased as it retained staff from the acquired entities, further supporting its expanded operations.

Looking ahead, Mid Penn anticipates continued growth driven by its recent acquisitions and a favorable economic environment. However, management remains cautious about potential challenges, including interest rate fluctuations and integration risks. The bank's liquidity position remains strong, with ample capacity to meet funding needs, and it is committed to maintaining its regulatory capital ratios above the required thresholds, ensuring a solid foundation for future growth.