Overview of Q1 Results#
HARRISBURG, Pa. - Mid Penn Bancorp (NASDAQ:MPB) announced its first quarter results on Wednesday. The company reported adjusted earnings per share of $0.64, which was below analyst expectations of $0.79. However, revenue reached $63.25 million, slightly surpassing the consensus estimate of $63.15 million.
Earnings and Revenue Breakdown#
The company's generally accepted accounting principles (GAAP) net income available to common shareholders was $8.7 million, or $0.36 per share. This is a decrease compared to $13.7 million, or $0.71 per share, from the same quarter last year. The earnings miss was largely attributed to $7.7 million in expenses related to mergers and $370,000 in one-time compensation costs linked to the recent acquisitions of 1st Colonial Bancorp and Cumberland Advisors.
Revenue Growth#
Despite the earnings shortfall, Mid Penn Bancorp saw a significant year-over-year revenue increase. Net interest income rose by 30% to $55.3 million, contributing to total revenue of $64.9 million for the quarter. Rory G. Ritrievi, Chair, President, and CEO, noted that the quarter was affected by one-time merger and other significant expenses, making it more complex than usual for analysts to gauge.
Key Financial Metrics#
The company’s net interest margin, which measures the difference between interest earned and interest paid, improved to 3.80% from 3.37% in the same quarter last year. This improvement was driven by higher yields on loans and investment securities, along with a decrease in funding costs. Additionally, loans increased by $1.0 billion, or 22.7%, reaching $5.5 billion, while deposits grew by $1.2 billion, or 26.2%, totaling $6.0 billion. Mid Penn Bancorp also declared a quarterly dividend of $0.22 per share, set to be paid on May 15, 2026.