Mid Penn Bancorp Reports $21.7 Million Net Income for Q2 2026, Driven by Acquisitions

Mid Penn Bancorp, Inc. reported significant financial growth in its latest quarterly results, with net income for the three months ending June 30, 2026, reaching $21.7 million, or $0.85 per diluted share, compared to $4.8 million, or $0.22 per diluted share, for the same period in 2025. For the first half of 2026, net income totaled $30.4 million, up from $18.5 million in the prior year. This increase is attributed to the contributions from recent acquisitions, including 1st Colonial Bancorp and Cumberland Advisors, as well as a reduction in merger-related expenses that impacted the previous year’s results.

Total assets for Mid Penn increased to $7.1 billion as of June 30, 2026, a 15.1% rise from $6.1 billion at the end of 2025. This growth was primarily driven by a $754.3 million increase in loans, which reached $5.6 billion, largely due to the acquisition of 1st Colonial. The bank also saw a 14.2% increase in total deposits, which rose to $6.0 billion, reflecting the addition of $747.1 million in deposits from the same acquisition. The bank's net interest margin improved to 4.06% for the second quarter, up from 3.44% in the same quarter of the previous year, driven by higher yields on loans and investment securities.

Mid Penn's operational metrics showed a notable increase in noninterest income, which rose to $10.6 million for the second quarter of 2026, a 72.3% increase from $6.1 million in the same quarter of 2025. This growth was largely due to a $2.5 million increase in fiduciary and wealth management income following the Cumberland Advisors acquisition. Noninterest expenses remained stable at $47.8 million, reflecting a slight decrease from the previous year, primarily due to lower merger and acquisition costs.

The bank's allowance for credit losses (ACL) stood at $41.6 million, or 0.74% of total loans, consistent with the previous period. Mid Penn reported net charge-offs of $22,000 for the second quarter, a significant decrease from $811,000 in the same quarter of 2025. Nonperforming assets increased to $36.8 million, primarily due to the addition of nonaccrual loans from the 1st Colonial acquisition. The bank's management continues to monitor credit quality closely, with a focus on maintaining a diversified loan portfolio and robust underwriting practices.

Looking ahead, Mid Penn anticipates continued growth driven by its recent acquisitions and a strong focus on expanding its market presence. The bank's management remains optimistic about leveraging its enhanced capabilities in wealth management and commercial banking to drive future profitability. However, they also acknowledge potential risks related to economic conditions and regulatory changes that could impact performance.