Mid Penn Bancorp Reports $13.7 Million Net Income in Q1 2025

Mid Penn Bancorp, Inc. reported a net income of $13.7 million for the first quarter of 2025, translating to earnings of $0.71 per share, a slight decrease from $12.1 million or $0.73 per share in the same period last year. The company's net interest income increased to $42.5 million, up from $36.5 million in the prior year, driven by a higher net interest margin of 3.37%, compared to 2.97% in the first quarter of 2024. This improvement was attributed to a rise in the yield on interest-earning assets, which increased to 5.65% from 5.51%, alongside a decrease in the rate on interest-bearing liabilities.

Total assets for Mid Penn as of March 31, 2025, reached $5.5 billion, reflecting a 1.4% increase from $5.47 billion at the end of 2024. The growth was primarily fueled by a $48.1 million increase in total loans, which rose to $4.5 billion, with notable contributions from owner-occupied and non-owner-occupied commercial real estate loans. Total deposits also saw a modest increase of $42.3 million, or 0.9%, driven by growth in interest-bearing transaction accounts and non-interest-bearing accounts, although time deposits decreased.

In terms of operational metrics, Mid Penn's allowance for credit losses (ACL) on loans stood at $35.8 million, representing 0.80% of total loans, consistent with the previous quarter. The company reported net recoveries of $3,000 for the quarter, contrasting with net charge-offs of $44,000 in the same period last year. However, total non-performing assets increased to $25.4 million, up from $22.7 million at the end of 2024, primarily due to the addition of three commercial loans that were placed on nonaccrual status.

Strategically, Mid Penn completed its acquisition of William Penn Bancorporation on April 30, 2025, which is expected to enhance its market presence and operational capabilities. The company continues to focus on expanding its footprint in Pennsylvania and New Jersey, leveraging its full-service banking model to cater to a diverse customer base. Looking ahead, Mid Penn anticipates continued growth in its loan portfolio and a stable economic environment, although it remains vigilant regarding potential impacts from interest rate fluctuations and market conditions.