MILLERSBURG, Pa., July 27, 2017 (GLOBE NEWSWIRE) — Mid Penn Bancorp, Inc. (“Mid Penn”) (NASDAQ:MPB), the parent company of Mid Penn Bank (the “Bank”), today reported net income available to common shareholders (earnings) of $2,345,000 or $0.55 per common share basic and diluted for the quarter ended June 30, 2017, compared to earnings of $2,022,000 or $0.48 per common share basic and diluted for the quarter ended June 30, 2016. The earnings per share (EPS) for the second quarter of 2017 represent a 15 percent increase when compared to the EPS for the second quarter of 2016.
For the six months ended June 30, 2017, Mid Penn’s earnings were $4,339,000 or $1.02 per common share basic and diluted, compared to earnings of $3,827,000 or $0.91 per common share basic and diluted for the same period in 2016. The EPS for the six months ended June 30, 2017 reflect an increase of over 12 percent compared to the same period in 2016.
Mid Penn also reported total assets of $1,111,876,000 as of June 30, 2017, an increase of $79,277,000 or 8 percent (16 percent annualized) compared to total assets of $1,032,599,000 as of December 31, 2016. In the first six months of 2017, Mid Penn realized favorable loan growth, primarily in commercial relationships, of $47,853,000 or 6 percent since December 31, 2016. This asset and loan growth was substantially funded by an increase in deposits of $52,095,000 or over 5 percent since year-end 2016.
As previously announced, on March 29, 2017, Mid Penn and the Bank entered into a merger agreement with The Scottdale Bank & Trust Company. The parties have been working closely together and continue to move forward with the transactions contemplated by the merger agreement.
PRESIDENT’S STATEMENT
I am very pleased to report Mid Penn’s record-high earnings results for both the second quarter and first half of 2017. Our return on average equity for both the three months and six months ended June 30, 2017 exceeded 12 percent, and our year-to-date growth in total assets, loans, and deposits, when annualized, all reflected double-digit percentage increases.
Given these favorable results, the Board of Directors has declared a cash dividend of $0.13 per common share of Mid Penn stock, payable August 28, 2017 to shareholders of record as of August 9, 2017.
Delivering favorable reports of record earnings and strong franchise growth is rooted in our demonstrated ability to grow sound loans, increase lower-cost deposits, expand fee-based revenues, and control expenses – all while maintaining a priority commitment to asset quality.
Complementing our favorable core banking performance in the first half of 2017, during the second quarter, we continued our franchise expansion with the opening of two new offices. In May, we opened a full-service branch in New Holland, PA (our third Mid Penn Bank branch in Lancaster County), and, in June, we celebrated the opening of our new Miners Bank branch in Orwigsburg, PA in Schuylkill County. We also recently announced that we have received regulatory approval to re-establish an office in Halifax, PA in northern Dauphin County. We are confident that we can profitably extend our commercial, retail, and wealth management products and services to our current and prospective customers in these wonderful communities.
We look forward to the second half of 2017 and the opportunities for further growth and profitability across all of our lines of business and markets.
OPERATING RESULTS
Net Interest Income and Net Interest Margin
Net interest income was $9,410,000 for the three months ended June 30, 2017, an increase of $877,000 or 10 percent compared to net interest income of $8,533,000 for the three months ended June 30, 2016. Through the first six months of 2017, net interest income was $18,585,000, an increase of $1,637,000 or 10 percent compared to net interest income of $16,948,000 for the same period in 2016.
For the three months ended June 30, 2017, Mid Penn’s tax-equivalent net interest margin was 3.74% compared to 3.85% for the three months ended June 30, 2016. For the six months ended June 30, 2017, Mid Penn’s tax-equivalent net interest margin was 3.78% versus 3.90% for the six months ended June 30, 2016. The decrease in the net interest margin year over year was primarily attributed to the lower yield earned on the investment portfolio. For the first six months of 2017, the overall investment portfolio yield was 2.42%, compared to an investment portfolio yield of 2.91% for the same period in 2016. The reduction was attributed to Mid Penn establishing, in the first half of 2017, a $71,096,000 held-to-maturity investment portfolio comprised primarily of lower-risk and lower-yielding U.S. Treasury notes and U.S. agency mortgage-backed securities. The held-to-maturity portfolio was established to support the Bank’s growth in public fund deposit pledging requirements.
Noninterest Income
During the three months ended June 30, 2017, noninterest income was $1,362,000 reflecting a decrease of $36,000 or 3 percent compared to noninterest income of $1,398,000 for the three months ended June 30, 2016. For the six months ended June 30, 2017, noninterest income totaled $2,798,000, an increase of $168,000 or 6 percent, compared to noninterest income of $2,630,000 for the same period in 2016.
Mid Penn experienced increased origination and sales activity in Small Business Administration (“SBA”) loans, resulting in gains of $441,000 from related loan sales during the first six months of 2017, an increase of $176,000 or 66 percent compared to SBA loan sales gains of $265,000 for the first six months of 2016. More qualified small business borrowers continue to take advantage of Mid Penn’s Preferred Lender status with the SBA.
Income from fiduciary activities was $396,000 for the first six months of 2017, an increase of $151,000 or 61 percent compared to fiduciary income of $245,000 during the same period in 2016. These additional revenues were attributed to wealth management assets under management significantly increasing over the past twelve months as a result successful business development efforts by Mid Penn’s expanded team of trust and retail investment officers.
For the six months ended June 30, 2017, service charges on deposits were $379,000, an increase of $66,000 or 21 percent, compared to service charges of $313,000 for the six months ended June 30, 2016. This increase was driven by an increase in the volume of transactional deposit accounts, and by an increase in overdraft charges collected.
Net gains on sales of securities was $20,000 for the first six months of 2017, a decrease of $193,000 or 91 percent compared to net gains on sales of securities of $213,000 during the same period ended June 30, 2016. During the second quarter of 2016, Mid Penn took advantage of favorable market conditions and increased fair values on several securities to reposition some of its investment portfolio, including selling a large volume of longer-term and rate-sensitive CMOs, as well as certain municipal bonds and agency notes.
Other noninterest income declined $73,000 for the six months ended June 30, 2017 compared to the six months ended June 30, 2016. The decrease was attributed to Mid Penn realizing an $86,000 from the gain on the sale of insurance policies during the first half of 2016. The sale of the insurance policies occurred upon the dissolution of Mid Penn Insurance Services, LLC, a then wholly-owned subsidiary of Mid Penn Bank.
Noninterest Expense
During the three months ended June 30, 2017, noninterest expenses totaled $7,558,000, an increase of $637,000 or 9 percent compared to noninterest expenses of $6,921,000 for the three months ended June 30, 2016. Noninterest expenses totaled $15,360,000, an increase of $1,457,000 or 10 percent for the six months ended June 30, 2017 compared to noninterest expenses of $13,903,000 for the same period in 2016.
Salaries and employee benefits expense increased $943,000 during the first six months of 2017 versus the same period in 2016, with the increase attributable to (i) the addition of lending personnel, credit support staff, and executive management in alignment with Mid Penn’s core banking growth; (ii) added retail staff for the Oregon Pike, New Holland, and Orwigsburg offices opened after June of 2016, and (iii) increased healthcare costs from Mid Penn’s self-funded medical plan during the first half of 2017.
Occupancy expenses for the six months ended June 30, 2017 increased $195,000 or 19 percent compared to the same period in 2016, primarily due to the facility operating costs associated Mid Penn opening of three new branch offices, and loan production offices in Lancaster and Franklin Counties in Pennsylvania, during the past twelve months.
Mid Penn’s FDIC assessment increased by $88,000 or 29 percent from $300,000 during the six months ended June 30, 2016, to $388,000 during the six months ended June 30, 2017, due to the Company’s growing deposits and assets, which increased the base amount used to determine the FDIC insurance assessment.
Pennsylvania bank shares tax expense decreased $79,000 during the six months ended June 30, 2017 versus the same period in 2016, due to the additional Pennsylvania-eligible tax credits generated from Mid Penn’s donations to support education and economic development throughout the markets it serves.
FINANCIAL CONDITION
Loans
Total loans at June 30, 2017 were $862,307,000 compared to $813,924,000 at December 31, 2016, an increase of $48,383,000 or 6 percent (or an annualized loan growth rate of 12 percent). The main driver of Mid Penn’s loan growth continues to be commercial loans, including both commercial and industrial financing, and commercial real estate credits.
Deposits
Total deposits increased $52,095,000 or over 5 percent, from $935,373,000 at December 31, 2016 to $987,468,000 at June 30, 2017, due to both retail branch deposit growth and cash management sales efforts.
Investments
Mid Penn added a held-to-maturity pool to its overall investment portfolio during the first half of 2017, and at June 30, 2017, Mid Penn had $71,096,000 of amortized cost invested in held-to-maturity securities. Mid Penn’s total available-for-sale securities portfolio decreased $22,272,000 or over 16 percent, from $133,625,000 at December 31, 2016 to $111,353,000 at June 30, 2017, as some available-for-sale investments were sold to fund part of the held-to-maturity pool.
Capital
Shareholders’ equity increased by $5,169,000 or 7 percent, from $70,467,000 at December 31, 2016 to $75,636,000 at June 30, 2017. The increase was attributed to both retained earnings, and from an increase in other comprehensive income during the first six months of 2017 primarily from the unrealized appreciation (on an after-tax basis) of the available-for-sale investment portfolio since December 31, 2016. Regulatory capital ratios for both Mid Penn and the Bank exceeded regulatory “well-capitalized” levels at both June 30, 2017 and December 31, 2016.
ASSET QUALITY
Total nonperforming assets were $5,775,000 at June 30, 2017, compared to $5,759,000 at December 31, 2016 and $5,468,000 at June 30, 2016. The ratio of nonperforming assets to total loans and other real estate was 0.67% as of June 30, 2017, compared to 0.71% as of December 31, 2016, and 0.64% as of June 30, 2016. The low level of nonperforming assets has primarily been the result of both thorough underwriting and risk analysis on new extensions of credit, as well as diligent portfolio monitoring and timely collection and workout efforts. Mid Penn had net loan recoveries of $305,000 for the six months ended June 30, 2017, compared to net loan recoveries of $9,000 during the same period of 2016. In the first half of 2017, Mid Penn recovered $318,000 of principal from the successful workout of a loan relationship that was partially charged-off in 2010.
Based upon its analysis of loan and lease loss allowance adequacy, management recorded a $100,000 loan loss provision for the three months ended June 30, 2017, compared to $395,000 for the three months ended June 30, 2016. For the six months ended June 30, 2017, the recorded loan loss provision was $225,000 compared to a loan loss provision of $735,000 for the first half of 2016. The significant net principal recoveries during the first half of 2017 also added $305,000 to the quarter-end allowance for loan loss balance. The allowance for loan and lease losses as a percentage of total loans was 0.89% at June 30, 2017, compared to 0.88% at December 31, 2016, and 0.90% at June 30, 2016. Loan loss reserves as a percentage of nonperforming loans were 133% at June 30, 2017, compared to 130% at December 31, 2016, and 140% at June 30, 2016. Management believes, based on information currently available, that the allowance for loan and lease losses of $7,713,000 is adequate as of June 30, 2017 to cover specifically identifiable loan losses as well as estimated losses inherent in the portfolio.
FINANCIAL HIGHLIGHTS (Unaudited):
| (Dollars in thousands, except per share data) | June 30, | December 31, | Change | |||||||||||||
| 2017 | 2016 | $ | % | |||||||||||||
| Total Assets | $ | 1,111,876 | $ | 1,032,599 | $ | 79,277 | 7.7 | % | ||||||||
| Total Loans | 862,307 | 813,924 | 48,383 | 5.9 | % | |||||||||||
| Total Deposits | 987,468 | 935,373 | 52,095 | 5.6 | % | |||||||||||
| Total Equity | 75,636 | 70,467 | 5,169 | 7.3 | % | |||||||||||
| Tangible Book Value per Share (1) | 16.82 | 15.59 | 1.23 | 7.9 | % | |||||||||||
OPERATING HIGHLIGHTS (Unaudited):
| Three Months Ended | Six months ended | |||||||||||||||||||||||||||||||
| (Dollars in thousands, except | June 30, | Change | June 30, | Change | ||||||||||||||||||||||||||||
| per share data) | 2017 | 2016 | $ | % | 2017 | 2016 | $ | % | ||||||||||||||||||||||||
| Net Interest Income | $ | 9,410 | $ | 8,533 | $ | 877 | 10.3 | % | $ | 18,585 | $ | 16,948 | $ | 1,637 | 9.7 | % | ||||||||||||||||
| Net Income Available to Common Shareholders | $ | 2,345 | $ | 2,022 | $ | 323 | 16.0 | % | $ | 4,339 | $ | 3,827 | $ | 512 | 13.4 | % | ||||||||||||||||
| Basic Earnings per Common Share | $ | 0.55 | $ | 0.48 | $ | 0.07 | 14.6 | % | $ | 1.02 | $ | 0.91 | $ | 0.11 | 12.1 | % | ||||||||||||||||
| Return on Average Equity | 12.74 | % | 11.28 | % | N/A | 12.9 | % | 12.05 | % | 10.75 | % | N/A | 12.1 | % | ||||||||||||||||||
| Efficiency Ratio (2) | 68.48 | % | 68.51 | % | N/A | 0.0 | % | 68.72 | % | 68.26 | % | N/A | 0.7 | % | ||||||||||||||||||
CAPITAL RATIOS (Unaudited):
| To Be Well-Capitalized | |||||||||||||||
| Under Prompt | |||||||||||||||
| Corrective Action | |||||||||||||||
| June 30, 2017 | December 31, 2016 | Provisions: | |||||||||||||
| Leverage Ratio | 6.8% | 6.8% | 5.0% | ||||||||||||
| Common Tier 1 Capital (to Risk Weighted Assets) | 8.7% | 9.1% | 6.5% | ||||||||||||
| Tier 1 Capital (to Risk Weighted Assets) | 8.7% | 9.1% | 8.0% | ||||||||||||
| Total Capital (to Risk Weighted Assets) | 10.5% | 11.0% | 10.0% |
(1) Total shareholders’ equity less goodwill and core deposit and other intangibles divided by common shares issued and outstanding
(2) Calculated as noninterest expense less the loss on sale or write-down of foreclosed assets and nonrecurring expenses of $14,000 and $224,000, respectively, for merger and acquisition expense during the three and six months ended June 30, 2017, divided by net interest income plus noninterest income less nonrecurring income of $86,000 from the gain on sale of insurance policies upon the dissolution of Mid Penn Insurance Services, LLC during the six months ended June 30, 2016 (Included in net interest income are tax equivalent adjustments on tax-free municipal loans and securities. These adjustments totaled $247,000 and $429,000, respectively, for the three months ended June 30, 2017 and 2016 and $533,000 and $809,000, respectively, for the six months ended June 30, 2017 and 2016.)
CONSOLIDATED BALANCE SHEETS (Unaudited):
| (Dollars in thousands, except share data) | June 30, 2017 | December 31, 2016 | ||||||
| ASSETS | ||||||||
| Cash and due from banks | $ | 25,246 | $ | 13,493 | ||||
| Interest-bearing balances with other financial institutions | 2,813 | 2,003 | ||||||
| Federal funds sold | 1,120 | 30,477 | ||||||
| Total cash and cash equivalents | 29,179 | 45,973 | ||||||
| Investment securities available for sale, at fair value | 111,353 | 133,625 | ||||||
| Investment securities held to maturity, at amortized cost (fair value $71,199 and $0) | 71,096 | — | ||||||
| Loans held for sale | 2,369 | 1,959 | ||||||
| Loans and leases, net of unearned interest | 862,307 | 813,924 | ||||||
| Less: Allowance for loan and lease losses | (7,713 | ) | (7,183 | ) | ||||
| Net loans and leases | 854,594 | 806,741 | ||||||
| Bank premises and equipment, net | 11,190 | 11,074 | ||||||
| Bank premises and equipment held for sale | — | 1,894 | ||||||
| Cash surrender value of life insurance | 12,911 | 12,780 | ||||||
| Restricted investment in bank stocks | 3,985 | 2,443 | ||||||
| Foreclosed assets held for sale | — | 224 | ||||||
| Accrued interest receivable | 3,991 | 3,928 | ||||||
| Deferred income taxes | 3,396 | 4,286 | ||||||
| Goodwill | 3,918 | 3,918 | ||||||
| Core deposit and other intangibles, net | 486 | 539 | ||||||
| Other assets | 3,408 | 3,215 | ||||||
| Total Assets | $ | 1,111,876 | $ | 1,032,599 | ||||
| LIABILITIES & SHAREHOLDERS’ EQUITY | ||||||||
| Deposits: | ||||||||
| Noninterest-bearing demand | $ | 140,837 | $ | 122,811 | ||||
| Interest-bearing demand | 339,057 | 317,533 | ||||||
| Money Market | 240,107 | 252,271 | ||||||
| Savings | 63,232 | 60,163 | ||||||
| Time | 204,235 | 182,595 | ||||||
| Total Deposits | 987,468 | 935,373 | ||||||
| Short-term borrowings | 21,468 | — | ||||||
| Long-term debt | 13,467 | 13,581 | ||||||
| Subordinated debt | 7,419 | 7,414 | ||||||
| Accrued interest payable | 788 | 515 | ||||||
| Other liabilities | 5,630 | 5,249 | ||||||
| Total Liabilities | 1,036,240 | 962,132 | ||||||
| Shareholders’ Equity: | ||||||||
| Common stock, par value $1.00; authorized 10,000,000 shares; | ||||||||
| 4,235,237 and 4,233,297 shares issued and outstanding at | ||||||||
| June 30, 2017, and at December 31, 2016, respectively | 4,235 | 4,233 | ||||||
| Additional paid-in capital | 40,775 | 40,688 | ||||||
| Retained earnings | 31,637 | 28,399 | ||||||
| Accumulated other comprehensive loss | (1,011 | ) | (2,853 | ) | ||||
| Total Shareholders’ Equity | 75,636 | 70,467 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 1,111,876 | $ | 1,032,599 | ||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited):
| (Dollars in thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| INTEREST INCOME | ||||||||||||||||
| Interest and fees on loans and leases | $ | 9,949 | $ | 8,905 | $ | 19,651 | $ | 17,712 | ||||||||
| Interest on interest-bearing balances | 5 | 2 | 7 | 9 | ||||||||||||
| Interest and dividends on investment securities: | ||||||||||||||||
| U.S. Treasury and government agencies | 574 | 311 | 1,019 | 633 | ||||||||||||
| State and political subdivision obligations, tax-exempt | 264 | 548 | 580 | 1,012 | ||||||||||||
| Other securities | 64 | 78 | 107 | 172 | ||||||||||||
| Interest on federal funds sold | 23 | 15 | 74 | 18 | ||||||||||||
| Total Interest Income | 10,879 | 9,859 | 21,438 | 19,556 | ||||||||||||
| INTEREST EXPENSE | ||||||||||||||||
| Interest on deposits | 1,277 | 1,092 | 2,481 | 2,131 | ||||||||||||
| Interest on short-term borrowings | 13 | 12 | 13 | 25 | ||||||||||||
| Interest on long-term and subordinated debt | 179 | 222 | 359 | 452 | ||||||||||||
| Total Interest Expense | 1,469 | 1,326 | 2,853 | 2,608 | ||||||||||||
| Net Interest Income | 9,410 | 8,533 | 18,585 | 16,948 | ||||||||||||
| PROVISION FOR LOAN AND LEASE LOSSES | 100 | 395 | 225 | 735 | ||||||||||||
| Net Interest Income After Provision for Loan and Lease Losses | 9,310 | 8,138 | 18,360 | 16,213 | ||||||||||||
| NONINTEREST INCOME | ||||||||||||||||
| Income from fiduciary activities | 200 | 139 | 396 | 245 | ||||||||||||
| Service charges on deposits | 174 | 158 | 379 | 313 | ||||||||||||
| Net gain on sales of investment securities | 12 | 213 | 20 | 213 | ||||||||||||
| Earnings from cash surrender value of life insurance | 66 | 65 | 131 | 135 | ||||||||||||
| Mortgage banking income | 225 | 246 | 416 | 432 | ||||||||||||
| ATM debit card interchange income | 232 | 209 | 456 | 409 | ||||||||||||
| Merchant services income | 92 | 85 | 166 | 152 | ||||||||||||
| Net gain on sales of SBA loans | 157 | 75 | 441 | 265 | ||||||||||||
| Other income | 204 | 208 | 393 | 466 | ||||||||||||
| Total Noninterest Income | 1,362 | 1,398 | 2,798 | 2,630 | ||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||
| Salaries and employee benefits | 4,159 | 3,723 | 8,389 | 7,446 | ||||||||||||
| Occupancy expense, net | 593 | 499 | 1,241 | 1,046 | ||||||||||||
| Equipment expense | 370 | 411 | 751 | 846 | ||||||||||||
| Pennsylvania bank shares tax expense | 160 | 206 | 330 | 409 | ||||||||||||
| FDIC Assessment | 194 | 147 | 388 | 300 | ||||||||||||
| Legal and professional fees | 189 | 183 | 366 | 385 | ||||||||||||
| Marketing and advertising expense | 131 | 139 | 238 | 223 | ||||||||||||
| Software licensing | 370 | 334 | 699 | 665 | ||||||||||||
| Telephone expense | 133 | 143 | 259 | 285 | ||||||||||||
| Loss on sale or write-down of foreclosed assets | 6 | 28 | 88 | 132 | ||||||||||||
| Intangible amortization | 24 | 34 | 53 | 71 | ||||||||||||
| Merger and acquisition expense | 14 | — | 224 | — | ||||||||||||
| Other expenses | 1,215 | 1,074 | 2,334 | 2,095 | ||||||||||||
| Total Noninterest Expense | 7,558 | 6,921 | 15,360 | 13,903 | ||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 3,114 | 2,615 | 5,798 | 4,940 | ||||||||||||
| Provision for income taxes | 769 | 593 | 1,459 | 1,113 | ||||||||||||
| NET INCOME | $ | 2,345 | $ | 2,022 | $ | 4,339 | $ | 3,827 | ||||||||
| PER COMMON SHARE DATA: | ||||||||||||||||
| Basic and Diluted Earnings Per Common Share | $ | 0.55 | $ | 0.48 | $ | 1.02 | $ | 0.91 | ||||||||
| Cash Dividends Paid | $ | 0.13 | $ | 0.12 | $ | 0.36 | $ | 0.34 | ||||||||
Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission (“SEC”). Accordingly, the financial information in this announcement is subject to change. The statements are valid only as of the date hereof and Mid Penn Bancorp, Inc. disclaims any obligation to update this information.
SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as “continues,” “expect,” “look,” “believe,” “anticipate,” “may,” “will,” “should,” “projects,” “strategy” or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn’s portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank’s future businesses; the impact of Mid Penn’s announced combination with The Scottdale Bank & Trust Company; and material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements. For a list of other factors which would affect our results, see Mid Penn’s filings with the SEC, including those risk factors identified in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2016. The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn assumes no obligation for updating any such forward-looking statements at any time, except as required by law.
CONTACT: CONTACTS Rory G. Ritrievi President & Chief Executive Officer Michael D. Peduzzi, CPA Chief Financial Officer Mid Penn Bancorp, Inc. 349 Union Street Millersburg, PA 17061 1-866-642-7736