MID PENN BANCORP INC

Previous wording

Forward-looking statements involve risks, uncertainties and assumptions. Although Mid Penn generally does not make forward-looking statements unless Mid Penn’s management believes its management has a reasonable basis for doing so, Mid Penn cannot guarantee the accuracy of any forward-looking statements. Actual results may differ materially from those expressed in any forward-looking statements due to a number of uncertainties and risks, including the risks described in this Quarterly Report on Form 10-Q, the 2025 Annual Report, and other unforeseen risks. You should not put undue reliance on any forward-looking statements. These statements speak only as of the date of this Quarterly Report on Form 10-Q, even if subsequently made available by us on Mid Penn’s website or otherwise, and Mid Penn undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Current wording

Forward-looking statements involve risks, uncertainties and assumptions. Although Mid Penn generally does not make forward-looking statements unless Mid Penn’s management believes it has a reasonable basis for doing so, Mid Penn cannot guarantee the accuracy of any forward-looking statements. Actual results may differ materially from those expressed in any forward-looking statements due to a number of uncertainties and risks, including the risks described in this Quarterly Report on Form 10-Q, the 2025 Annual Report, and other unforeseen risks. You should not put undue reliance on any forward-looking statements. These statements speak only as of the date of this Quarterly Report on Form 10-Q, even if subsequently made available by us on Mid Penn’s website or otherwise, and Mid Penn undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this Quarterly Report on Form 10-Q.

Previous wording

•the failure of assumptions underlying the establishment of reserves for loan and lease losses, the assessment of potential impairment of investment securities, and estimations of values of collateral and various financial assets and liabilities;

Current wording

•the failure of assumptions underlying the establishment of the allowance of credit losses, the assessment of potential impairment of investment securities, and estimations of values of collateral and various financial assets and liabilities;

Previous wording

On February 27, 2026, Mid Penn completed the acquisition of 1st Colonial Bancorp, Inc. ("1st Colonial"), which added total assets of $842.5 million, comprised primarily of $597.5 million of loans. Additionally, on January 1, 2026, Mid Penn completed the acquisition of Cumberland Advisors, Inc. ("Cumberland Advisors"), a registered investment advisory firm, which had approximately $3.2 billion in assets under management, further expanding the Corporation's wealth management capabilities and fee-based revenue.

Current wording

On February 27, 2026, Mid Penn completed the acquisition of 1st Colonial Bancorp, Inc. ("1st Colonial"), which added total assets of $842.5 million, comprised primarily of $597.5 million of loans. Additionally, on January 1, 2026, Mid Penn completed the acquisition of Cumberland Advisors, Inc. ("Cumberland Advisors"), a registered investment advisory firm, which had approximately $3.2 billion in assets under management, further expanding the Corporation's wealth management capabilities and fee-based revenue at January 1, 2026.

Previous wording

•Net Income Per Share - Mid Penn’s net income available to common shareholders ("earnings") for the three months ended June 30, 2026 was $21.7 million, or $0.86 per basic common share and $0.85 per diluted common share, compared to earnings of $4.8 million, or $0.22 per basic and diluted common share for the three months ended June 30, 2025. The increase in net income per diluted share primarily reflected earnings from the 1st Colonial and Cumberland Advisors acquisitions, and the absence of merger related expenses associated with the William Penn acquisition that were recognized in the prior period. Mid Penn's earnings for the six months ended June 30, 2026 were $30.4 million, or $1.23 per basic common share and $1.22 per diluted common share, compared to earnings of $18.5 million, or $0.90 per basic common share, and $0.89 per diluted common share for the six months ended June 30, 2025.

Current wording

•Net Income Per Share - Mid Penn’s net income available to common shareholders ("earnings") for the three months ended September 30, 2026 was $21.6 million, or $0.85 per basic common share and $0.84 per diluted common share, compared to earnings of $18.3 million, or $0.80 per basic and $0.79 per diluted common share for the three months ended September 30, 2025. The increase in net income per diluted share was primarily attributable to the 1st Colonial and Cumberland Advisors acquisitions. Mid Penn's earnings for the nine months ended September 30, 2026 were $52.0 million, or $2.09 per basic common share and $2.07 per diluted common share, compared to earnings of $36.8 million, or $1.73 per basic common share, and $1.70 per diluted common share for the nine months ended September 30, 2025.

Previous wording

◦Net Interest Margin - For the second quarter of 2026, Mid Penn’s net interest margin was 4.06% versus 3.44% for the same period of 2025. For the six months ended June 30, 2026, net interest margin was 3.94% versus 3.41% for the same period of 2025. The yield on interest-earning assets for the three months ended June 30, 2026 increased 30 basis points from the same period of 2025. The rate on interest-bearing liabilities decreased 41 basis points from the same period of 2025. The increase, compared to the second quarter of 2025, was driven by higher loan and investment securities yields, and a reduction in the cost of funds.

Current wording

◦Net Interest Margin - For the third quarter of 2026, Mid Penn’s net interest margin was 3.92% versus 3.60% for the same period of 2025. For the nine months ended September 30, 2026, net interest margin was 3.93% versus 3.48% for the same period of 2025. The yield on interest-earning assets for the three months ended September 30, 2026 increased 8 basis points from the same period of 2025. The rate on interest-bearing liabilities decreased 30 basis points from the same period of 2025. The increase, compared to the third quarter of 2025, was driven by higher investment securities yields, and lower funding costs.

Previous wording

◦Loan Growth - Total loans, net of unearned income, as of June 30, 2026 were $5.6 billion compared to $4.9 billion as of December 31, 2025, an increase of $754.3 million, or 15.5%. The increase was primarily driven by the 1st Colonial acquisition and organic growth, which contributed to an increase in residential mortgage loans of $336.2 million, an increase in nonowner occupied commercial real estate of $235.8 million, an increase in owner occupied commercial real estate of $112.1 million, a $26.9 million increase in multifamily loans, a $22.7 million increase in construction loans, and an increase in commercial and industrial loans of $8.4 million.

Current wording

◦Loan Growth - Total loans, net of unearned income, as of September 30, 2026 were $5.6 billion compared to $4.9 billion as of December 31, 2025, an increase of $773.6 million, or 15.9%. The increase was primarily driven by the 1st Colonial acquisition and organic growth, which contributed to an increase in residential mortgage loans of $305.1 million, an increase in nonowner occupied commercial real estate of $222.5 million, an increase in owner occupied commercial real estate of $107.4 million, a $27.5 million increase in multifamily loans, a $60.9 million increase in construction loans, and an increase in commercial and industrial loans of $39.5 million.

Previous wording

◦Deposit Growth - Total deposits increased $738.6 million, or 14.2%, from $5.2 billion at December 31, 2025, to $6.0 billion at June 30, 2026. The growth was primarily driven by the acquisition of 1st Colonial, which contributed to an increase of $470.4 million in interest-bearing transaction accounts, an increase of $139.4 million in noninterest-bearing accounts, and an increase of $128.9 million in time deposits.

Current wording

◦Deposit Growth - Total deposits increased $880.4 million, or 16.9%, from $5.2 billion at December 31, 2025, to $6.1 billion at September 30, 2026. The growth was primarily driven by the acquisition of 1st Colonial, which contributed to an increase of $722.2 million in interest-bearing transaction accounts, an increase of $89.3 million in noninterest-bearing accounts, and an increase of $69.0 million in time deposits.

Previous wording

•Asset Quality - ACL as of June 30, 2026 was $41.6 million, or 0.74% of total loans, as compared to $36.1 million, or 0.74% of total loans as of December 31, 2025. The increase primarily reflects the initial allowance recorded for 1st Colonial loans of $4.4 million.

Current wording

•Asset Quality - ACL as of September 30, 2026 was $40.2 million, or 0.71% of total loans, as compared to $36.1 million, or 0.74% of total loans as of December 31, 2025. The increase primarily reflects the initial allowance recorded for 1st Colonial loans of $4.4 million.

Previous wording

◦Net Charge-offs/Recoveries - Mid Penn had net loan charge-offs of $22 thousand and $811 thousand for the three months ended June 30, 2026 and 2025, respectively. For the six months ended June 30, 2026, net loan charge-offs were $1.1 million compared to $808 thousand for the same period of 2025.

Current wording

◦Net Charge-offs/Recoveries - Mid Penn had net loan charge-offs of $78 thousand and $91 thousand for the three months ended September 30, 2026 and 2025, respectively. For the nine months ended September 30, 2026, net loan charge-offs were $1.1 million compared to $899 thousand for the same period of 2025.

Previous wording

◦Nonperforming assets - Total nonperforming assets were $36.8 million at June 30, 2026, an increase compared to nonperforming assets of $30.8 million at December 31, 2025. The increase during the second quarter of 2026 is primarily related to the addition of $7.4 million of nonaccrual loans from the 1st Colonial acquisition, partially offset by the payoff of one commercial real estate loan with a balance of $1.3 million. Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.71% at June 30, 2026, compared to 0.69% and 0.58% as of December 31, 2025 and June 30, 2025, respectively.

Current wording

◦Nonperforming assets - Total nonperforming assets were $47.0 million at September 30, 2026, an increase compared to nonperforming assets of $30.8 million at December 31, 2025. The increase during the nine months ended September 30, 2026 was primarily driven by a $13.7 million increase in nonaccrual loans including $7.4 million of nonaccrual loans acquired in the 1st Colonial acquisition, and an additional $7.0 million in commercial real estate loans, as well as a $2.5 million increase in foreclosed real estate, partially offset by payoffs and paydowns in the third quarter of 2026. Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.73% at September 30, 2026, compared to 0.69% and 0.68% as of December 31, 2025 and September 30, 2025, respectively.

Previous wording

◦Provision/Benefit for credit losses - loans - The provision for credit losses - loans was $557 thousand for the three months ended June 30, 2026 compared to a provision of $2.2 million for the same period of 2025. The benefit for credit losses on off-balance sheet credit exposures was $29 thousand for the three months ended June 30, 2026, compared to a provision of $24 thousand for the same period of 2025. The decrease in provision for the three months ended June 30, 2026, was primarily driven by qualitative adjustments to the CRE owner-occupied portfolio and improved macroeconomic assumptions, offset by an increase in reserve on one individually analyzed C&I loan.

Current wording

◦Provision/Benefit for credit losses - loans - The benefit for credit losses - loans was $1.3 million for the three months ended September 30, 2026 compared to a benefit of $187 thousand for the same period of 2025. The benefit for credit losses on off-balance sheet credit exposures was $243 thousand for the three months ended September 30, 2026, compared to a benefit of $247 thousand for the same period of 2025. The decrease in provision for the three months ended September 30, 2026, was primarily driven by improved macroeconomic assumptions, including more favorable forecasts for both unemployment and GDP, as well as an increase in loan prepayment speeds, partially offset by an increase in reserve on three individually analyzed C&I loans.

Previous wording

The provision for credit losses on loans was $2.2 million for the six months ended June 30, 2026, a decrease of $361 thousand compared to the provision for credit losses of $2.6 million for the six months ended June 30, 2025. The decrease for the six months ended June 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by increases from qualitative adjustments to several segments of the portfolio. The benefit for credit losses on off-balance sheet credit exposures was $29 thousand and $83 thousand for the three and six months ended June 30, 2026, respectively.

Current wording

The provision for credit losses on loans was $887 thousand for the nine months ended September 30, 2026, a decrease of $1.5 million compared to the provision for credit losses of $2.4 million for the nine months ended September 30, 2025. The decrease for the nine months ended September 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by increases from qualitative adjustments to several segments of the portfolio. The benefit for credit losses on off-balance sheet credit exposures was $243 thousand and $326 thousand for the three and nine months ended September 30, 2026, respectively.

Previous wording

•Noninterest Income - Noninterest income totaled $10.6 million for the three months ended June 30, 2026 compared to $6.1 million for the same period of 2025. The increase is primarily due to a $2.5 million increase in fiduciary and wealth management, reflecting the Cumberland Advisors acquisition, a $550 thousand increase in earnings from the cash surrender value of life insurance, a $443 thousand increase in mortgage banking, a $211 thousand increase in ATM debit card interchange fees, and a $690 thousand increase in other noninterest income.

Current wording

•Noninterest Income - Noninterest income totaled $10.0 million for the three months ended September 30, 2026 compared to $8.2 million for the same period of 2025. The increase is primarily due to a $2.6 million increase in fiduciary and wealth management, reflecting the Cumberland Advisors acquisition, $415 thousand increase from the release of a contingent liability generated from a previous acquisition, a $332 thousand increase from acquisition related lease adjustments, a $211 thousand increase in earnings from the cash surrender value of life insurance, and a $158 thousand increase in ATM debit card interchange, partially offset by a $1.4 million decrease in other noninterest income, including a $537 thousand decrease attributable to a loss recognized on the disposal of fixed assets, a $377 thousand decrease in loan level swap fees, and a $447 thousand decrease on other miscellaneous income.

Previous wording

Noninterest income totaled $20.2 million for the six months ended June 30, 2026 compared to $11.4 million for the same period of 2025. The increase in noninterest income was primarily driven by a $5.0 million increase in fiduciary and wealth management income, reflecting the acquisition of Cumberland Advisors, a $981 thousand increase in earnings from the cash surrender value of life insurance, and a $2.0 million increase in other noninterest income, including a $653 thousand increase in insurance commissions, and a $558 thousand increase in death benefits received.

Current wording

Noninterest income totaled $30.2 million for the nine months ended September 30, 2026 compared to $19.6 million for the same period of 2025. The increase in noninterest income was primarily driven by a $7.6 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $1.2 million increase in earnings from the cash surrender value of life insurance, and a $645 thousand increase in other noninterest income, including a $680 thousand increase in insurance commissions, and a $487 thousand increase in death benefits received, partially offset by a $537 thousand decrease attributable to a loss recognized on the disposal of fixed assets.

Previous wording

Noninterest expense totaled $99.7 million for the six months ended June 30, 2026 compared to $78.4 million for the same period of 2025. The increase was primarily driven by a $13.2 million increase in salaries and benefits, reflecting additional staff from the 1st Colonial, Cumberland Advisors, and William Penn acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $1.9 million, $1.5 million, and $2.0 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Intangible amortization also increased $1.9 million. These increases were partially offset by a $3.5 million decrease in merger and acquisition expenses compared to the same period of 2025.

Current wording

Noninterest expense totaled $148.3 million for the nine months ended September 30, 2026 compared to $116.4 million for the same period of 2025. The increase was primarily driven by a $18.8 million increase in salaries and benefits, reflecting additional staff from the William Penn, 1st Colonial, and Cumberland Advisors acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $2.8 million, $1.8 million, and $2.7 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Additionally, intangible amortization increased $2.7 million. These increases were partially offset by a $3.7 million decrease in merger and acquisition expenses compared to the same period of 2025.

Previous wording

•Liquidity - Current liquidity, including cash equivalents and borrowing capacity, totaled $1.7 billion compared to $1.5 billion at March 31, 2026, representing 142.5% of uninsured and uncollateralized deposits and approximately 28.6% of total deposits.

Current wording

•Liquidity - Current liquidity, including cash equivalents and borrowing capacity, totaled $1.8 billion compared to $1.7 billion at June 30, 2026, representing 150.1% of uninsured and uncollateralized deposits and approximately 29.3% of total deposits.

Previous wording

Net interest income, Mid Penn’s primary source of earnings, represents the difference between interest income received on loans, investments, and overnight funds, and interest expense paid on deposits and short- and long-term borrowings. Net interest income is affected by changes in interest rates and changes in average balances (volume) in the various interest-sensitive assets and liabilities. Interest and average rates in the table below are presented on a fully taxable-equivalent basis ("FTE"). Tax-equivalent adjustments were calculated using a statutory corporate tax rate of 21% for the three and six months ended June 30, 2026 and 2025.

Current wording

Net interest income, Mid Penn’s primary source of earnings, represents the difference between interest income received on loans, investments, and overnight funds, and interest expense paid on deposits and short- and long-term borrowings. Net interest income is affected by changes in interest rates and changes in average balances (volume) in the various interest-sensitive assets and liabilities. Interest and average rates in the table below are presented on a fully taxable-equivalent basis ("FTE"). Tax-equivalent adjustments were calculated using a statutory corporate tax rate of 21% for the three and nine months ended September 30, 2026 and 2025.

Previous wording

For the three months ended June 30, 2026, net interest income was $65.3 million compared to net interest income of $48.2 million for the three months ended June 30, 2025. The tax-equivalent net interest margin for the three months ended June 30, 2026 was 4.06% compared to 3.44% for the second quarter of 2025, representing a 62 bp increase compared to the same period in 2025.

Current wording

For the three months ended September 30, 2026, net interest income was $64.6 million compared to net interest income of $53.6 million for the three months ended September 30, 2025. The tax-equivalent net interest margin for the three months ended September 30, 2026 was 3.92% compared to 3.60% for the third quarter of 2025, representing a 32 bp increase compared to the same period in 2025.

Previous wording

The yield on interest-earning assets increased to 5.99% for the quarter ended June 30, 2026 from 5.69% for the quarter ended June 30, 2025. These increases were primarily due to continued repricing of assets at higher rates during the second quarter of 2026 compared to the second quarter of 2025, continued discipline on new loan pricing, and an increase in Fed funds sold.

Current wording

The yield on interest-earning assets increased to 5.89% for the quarter ended September 30, 2026 from 5.81% for the quarter ended September 30, 2025. This increase was driven by higher yields on investment securities during the third quarter of 2026 compared to the third quarter of 2025.

Previous wording

Average investment securities increased $191.2 million and the yield on those investment securities increased 55 bps during the second quarter of 2026 compared to the second quarter of 2025, increasing interest income due to volume by $1.5 million, and increasing interest income due to rates by $1.1 million. Average loans increased $863.5 million, and the yield on those loans increased 21 bps, contributing $13.2 million and $2.9 million, respectively, to the increase in interest income.

Current wording

Average investment securities increased $83.2 million and the yield on those investment securities increased 25 bps during the third quarter of 2026 compared to the third quarter of 2025, increasing interest income due to volume by $802 thousand, and increasing interest income due to rates by $477 thousand. Average loans increased $819.8 million, and the yield on those loans decreased 4 bps, contributing $13.0 million to the increase in interest income while being partially offset by a decrease due to rates of $591 thousand.

Previous wording

Interest expense decreased $402 thousand during the second quarter of 2026 compared to the second quarter of 2025. The rate of interest-bearing liabilities decreased from 2.89% for the second quarter of 2025 to 2.48% for the second quarter of 2026. The decrease in the average rate was primarily attributable to lower rates paid on interest-bearing deposits following

Current wording

Interest expense decreased $295 thousand during the third quarter of 2026 compared to the third quarter of 2025. The rate of interest-bearing liabilities decreased from 2.82% for the third quarter of 2025 to 2.52% for the third quarter of 2026. The decrease in the average rate was primarily attributable to lower rates paid on interest-bearing deposits following Federal Reserve rate cuts in 2025, and lower long-term debt. Mid Penn continued to offer higher rates over the comparable period to both retain and attract deposits.

Previous wording

The following table summarizes the changes in interest income and interest expense resulting from changes in average balances, volume, and changes in rates for the six months ended June 30, 2026 in comparison to the same period in 2025:

Current wording

The following table summarizes the changes in interest income and interest expense resulting from changes in average balances, volume, and changes in rates for the nine months ended September 30, 2026 in comparison to the same period in 2025:

Previous wording

For the six months ended June 30, 2026, net interest income was $120.5 million compared to net interest income of $90.7 million for the six months ended June 30, 2025. FTE net interest income was $121.0 million for the six months ended June 30, 2026, an increase of $29.8 million, or 32.7%, compared to the same period in 2025. The tax-equivalent net interest margin for the six months ended June 30, 2026 was 3.94% compared to 3.41% for the same period in 2025, representing a 53 bp increase, primarily reflecting lower funding costs from the repricing of interest-bearing deposits and short-term borrowings, as well as lower long-term debt balances.

Current wording

For the nine months ended September 30, 2026, net interest income was $185.2 million compared to net interest income of $144.3 million for the nine months ended September 30, 2025. FTE net interest income was $185.9 million for the nine months ended September 30, 2026, an increase of $40.8 million, or 28.1%, compared to the same period in 2025. The tax-equivalent net interest margin for the nine months ended September 30, 2026 was 3.93% compared to 3.48% for the same period in 2025, representing a 45 bp increase, primarily reflecting lower funding costs from the repricing of interest-bearing deposits and short-term borrowings, higher yields on interest earning assets, as well as lower long-term debt balances.

Previous wording

The higher yields and the growth in interest-earning assets contributed $22.9 million and $6.0 million, respectively, to the increase in interest income. The yield on interest-earning assets increased 21 bps to 5.88% for the six months ended June 30, 2026 compared to 5.67% for the same period of 2025. Average interest-earning assets increased $22.4 million, or 14.8%, during the six months ended June 30, 2026 compared to the same period of 2025.

Current wording

The higher yields and the growth in interest-earning assets contributed $34.0 million and $5.6 million, respectively, to the increase in interest income. The yield on interest-earning assets increased 16 bps to 5.88% for the nine months ended September 30, 2026 compared to 5.72% for the same period of 2025. Average interest-earning assets increased $748.0 million, or 13.4%, during the nine months ended September 30, 2026 compared to the same period of 2025.

Previous wording

Average investment securities increased $167.8 million, or 26.0%, and the yield on those investment securities increased 55 bps during the six months ended June 30, 2026, contributing $2.6 million and $2.1 million, respectively, to interest income. Average loans increased $744.2 million, and the yield on those loans increased 15 bps, contributing $22.5 million and $3.8 million, respectively, to the increase in interest income.

Current wording

Average investment securities increased $139.5 million, or 20.2%, and the yield on those investment securities increased 43 bps during the nine months ended September 30, 2026, contributing $3.5 million and $2.5 million, respectively, to interest income. Average loans increased $769.7 million, and the yield on those loans increased 8 bps, contributing $35.5 million and $3.3 million, respectively, to the increase in interest income.

Previous wording

The decrease in the average rate primarily reflected the repricing of interest-bearing deposits and short term borrowings, as well as lower long term debt balances. Mid Penn continued to offer competitive deposit rates to retain and attract customer deposits. The average rate paid on interest-bearing deposits decreased 42 bps, during the six months ended June 30, 2026, compared to the same period in 2025, reducing interest expense by $5.6 million.

Current wording

Interest expense decreased $1.3 million during the first nine months of 2026 compared to the same period of 2025. The rate on interest-bearing liabilities decreased from 2.88% for the first nine months of 2025 to 2.50% for the first nine months of 2026. The decrease in the average rate primarily reflected the repricing of interest-bearing deposits and short term borrowings, as well as lower long term debt balances. Mid Penn continued to offer competitive deposit rates to retain and attract customer deposits. The average rate paid on interest-bearing deposits decreased 38 bps, during the nine months ended September 30, 2026, compared to the same period in 2025, reducing interest expense by $7.6 million.

Previous wording

The provision for credit losses on loans was $2.2 million for the six months ended June 30, 2026 compared to a provision of $2.6 million for the same period in 2025. The decrease for the six months ended June 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by higher qualitative adjustments across several segments of the portfolio.

Current wording

The provision for credit losses on loans was $887 thousand for the nine months ended September 30, 2026 compared to a provision of $2.4 million for the same period in 2025. The decrease for the nine months ended September 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by higher qualitative adjustments across several segments of the portfolio.

Previous wording

For the three months ended June 30, 2026, noninterest income totaled $10.6 million, an increase of $4.4 million, or 72.3%, compared to noninterest income of $6.1 million for the three months ended June 30, 2025. The increase is primarily due to a $2.5 million increase in fiduciary and wealth management, reflecting the Cumberland Advisors acquisition, a $550 thousand increase in earnings from the cash surrender value of life insurance, a $443 thousand increase in mortgage banking, and a $690 thousand increase in other noninterest income.

Current wording

For the three months ended September 30, 2026, noninterest income totaled $10.0 million, an increase of $1.9 million, or 22.7%, compared to noninterest income of $8.2 million for the three months ended September 30, 2025. The increase is primarily due to a $2.6 million increase in fiduciary and wealth management, reflecting the Cumberland Advisors acquisition, $415 thousand increase from the release of a contingent liability generated from a previous acquisition, a $332 thousand increase from acquisition related lease adjustments, a $211 thousand increase in earnings from the cash surrender value of life insurance, and a $158 thousand increase in ATM debit card interchange, partially offset by a $1.4 million decrease in other noninterest income, including a $537 thousand decrease attributable to a loss recognized on the disposal of fixed assets, a $377 thousand decrease in loan level swap fees, and a $447 thousand decrease in other miscellaneous income.

Previous wording

For the six months ended June 30, 2026, noninterest income totaled $20.2 million, an increase of $8.8 million, or 77.4%, compared to noninterest income of $11.4 million for the six months ended June 30, 2025. The increase was primarily driven by a $5.0 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $981 thousand increase in earnings from the cash surrender value of life insurance, a $2.0 million increase in other noninterest income, including a $653 thousand increase in insurance commissions, and a $558 thousand increase in death benefits received.

Current wording

For the nine months ended September 30, 2026, noninterest income totaled $30.2 million, an increase of $10.7 million, or 54.5%, compared to noninterest income of $19.6 million for the nine months ended September 30, 2025. The increase was primarily driven by a $7.6 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $1.2 million increase in earnings from the cash surrender value of life insurance, and a $645 thousand increase in other noninterest income, including a $680 thousand increase in insurance commissions, and a $487 thousand increase in death benefits received, partially offset by a $537 thousand decrease attributable to a loss recognized on the disposal of fixed assets.

Previous wording

For the three months ended June 30, 2026, noninterest expense totaled $47.8 million, a decrease of $31 thousand, or 0.1%, compared to noninterest expense of $47.8 million for the same period in 2025. The decrease was primarily driven by a $10.9 million decrease in merger and acquisition expenses, partially offset by a $6.2 million increase in salaries and employee benefits, a $1.2 million increase in legal and professional fees, a $1.1 million increase in intangible amortization, a $883 thousand increase in software licensing, and a $526 thousand increase in occupancy expenses.

Current wording

For the three months ended September 30, 2026, noninterest expense totaled $48.6 million, an increase of $10.6 million, or 27.9%, compared to noninterest expense of $38.0 million for the same period in 2025. The increase was primarily driven by a $5.6 million increase in salaries and employee benefits, an $849 thousand increase in software licensing, a $764 thousand increase in intangible amortization, a $640 thousand increase in legal and professional fees, a $510 thousand increase in equipment expense, a $322 thousand increase in occupancy expenses, and a $1.5 million increase in other expenses, including a $420 thousand increase in expenses relate to branch optimization, $306 thousand increase in miscellaneous loan fees, and a $252 thousand increase in insurance expense.

Previous wording

For the six months ended June 30, 2026, noninterest expense totaled $99.7 million, an increase of $21.3 million, or 27.1%, compared to noninterest expense of $78.4 million for the six months ended June 30, 2025. The increase was primarily driven by a $13.2 million increase in salaries and benefits, reflecting additional staff from the William Penn, 1st Colonial, and Cumberland Advisors acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $1.9 million, $1.5 million, and $2.0 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Intangible amortization also increased $1.9 million. These increases were partially offset by a $3.5 million decrease in merger and acquisition expenses compared to the same period of 2025.

Current wording

For the nine months ended September 30, 2026, noninterest expense totaled $148.3 million, an increase of $31.9 million, or 27.4%, compared to noninterest expense of $116.4 million for the nine months ended September 30, 2025. The increase was primarily driven by a $18.8 million increase in salaries and benefits, reflecting additional staff from the William Penn, 1st Colonial, and Cumberland Advisors acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $2.8 million, $1.8 million, and $2.7 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Additionally, intangible amortization increased $2.7 million. These increases were partially offset by a $3.7 million decrease in merger and acquisition expenses compared to the same period of 2025.

Previous wording

The provision for income taxes was $5.9 million for the three months ended June 30, 2026 compared to a benefit of $480 thousand for the same period in 2025. The provision for income taxes was $8.5 million and $2.6 million for the six months ended June 30, 2026 and 2025, respectively. The provision for income taxes for the six months ended June 30, 2026 and 2025 reflects a combined Federal and State effective tax rate of 21.8% and 12.2%, respectively.

Current wording

The provision for income taxes was $6.0 million for the three months ended September 30, 2026 and 2025. The provision for income taxes was $14.5 million and $8.6 million for the nine months ended September 30, 2026 and 2025, respectively. The provision for income taxes for the nine months ended September 30, 2026 and 2025 reflects a combined Federal and State effective tax rate of 21.8% and 18.9%, respectively.

Previous wording

Generally, Mid Penn’s effective tax rate is below the federal statutory rate due to earnings on tax-exempt loans, investments, and earnings from the cash surrender value of life insurance, as well as the impact of federal income tax credits, including those awarded from Mid Penn’s low-income housing investments. The effective tax rate for the current period was higher than the federal statutory rate primarily due to the impact of state income taxes. This increase was driven by changes in the Corporation's state apportionment resulting from the acquisition of 1st Colonial, resulting in a higher proportion of income subject to higher state tax rates. The realization of Mid Penn’s deferred tax assets is dependent on future earnings. Mid Penn currently anticipates that future earnings will be adequate to fully realize the currently recorded deferred tax assets.

Current wording

Historically, Mid Penn’s effective tax rate has generally been below the federal statutory rate due to earnings on tax-exempt loans, investments, and earnings from the cash surrender value of life insurance, as well as the impact of federal income tax credits, including those awarded from Mid Penn’s low-income housing investments. The effective tax rate for the current period was higher than the federal statutory rate primarily due to the impact of state income taxes. This increase was driven by changes in the Corporation's state apportionment resulting from the acquisition of 1st Colonial, resulting in a higher proportion of income subject to higher state tax rates. The realization of Mid Penn’s deferred tax assets is dependent on future earnings. Mid Penn currently anticipates that future earnings will be adequate to fully realize the currently recorded deferred tax assets.

Previous wording

On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that may affect the Corporation in future periods, including provisions related to business deductions and tax depreciation. These changes did not have a material impact on the Corporation’s federal income tax expense or liability for the three and six month periods ended June 30, 2026.

Current wording

On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that may affect the Corporation in future periods, including provisions related to business deductions and tax depreciation. These changes did not have a material impact on the Corporation’s federal income tax expense or liability for the three and nine month periods ended September 30, 2026.

Previous wording

Mid Penn’s total assets were $7.1 billion as of June 30, 2026, reflecting an increase of $929.0 million, or 15.1%, compared to total assets of $6.1 billion as of December 31, 2025. The increase was primarily driven by an increase in loans as a result of the 1st Colonial acquisition, and an increase in investment securities, partially offset by a decrease in Federal funds sold.

Current wording

Mid Penn’s total assets were $7.1 billion as of September 30, 2026, reflecting an increase of $1.0 billion, or 16.4%, compared to total assets of $6.1 billion as of December 31, 2025. The increase was primarily driven by an increase in loans as a result of the 1st Colonial acquisition, an increase in investment securities, and an increase in Federal funds sold.

Previous wording

Mid Penn’s investment portfolio is utilized primarily to support overall liquidity and interest rate risk management, to provide collateral supporting pledging requirements for public funds on deposit, and to generate additional interest income within reasonable risk parameters. The carrying value of total investment securities as of June 30, 2026 was $872.6 million compared to $763.6 million as of December 31, 2025. Mid Penn does not anticipate growth in the investment portfolio beyond levels necessary to support pledging requirements.

Current wording

Mid Penn’s investment portfolio is utilized primarily to support overall liquidity and interest rate risk management, to provide collateral supporting pledging requirements for public funds on deposit, and to generate additional interest income within reasonable risk parameters. The carrying value of total investment securities as of September 30, 2026 was $836.4 million compared to $763.6 million as of December 31, 2025. Mid Penn does not anticipate growth in the investment portfolio beyond levels necessary to support pledging requirements.

Previous wording

Total loans, net of unearned income, as of June 30, 2026 were $5.6 billion compared to $4.9 billion as of December 31, 2025. The growth of $754.3 million, or 15.5%, since December 31, 2025 was primarily driven by the acquisition of 1st Colonial, which contributed to an increase in commercial real estate loans of $387.5 million, an increase in residential mortgages of $336.2 million, an increase in construction loans of $22.7 million, and an increase in commercial and industrial loans of $8.4 million.

Current wording

Total loans, net of unearned income, as of September 30, 2026 were $5.6 billion compared to $4.9 billion as of December 31, 2025. The growth of $773.6 million, or 15.9%, since December 31, 2025 was primarily driven by the acquisition of 1st Colonial, which contributed to an increase in commercial real estate loans of $370.9 million, an increase in residential mortgages of $305.1 million, an increase in construction loans of $60.9 million, and an increase in commercial and industrial loans of $39.5 million.

Previous wording

Total nonperforming assets were $36.8 million at June 30, 2026, an increase compared to nonperforming assets of $30.8 million at December 31, 2025. The increase during the second quarter of June 30, 2026 was primarily related to the addition of $7.4 million of nonaccrual loans acquired in the 1st Colonial acquisition, partially offset by payoffs and paydowns in the second quarter of 2026. Delinquency, measured as loans past due 30 days or more, including loans on nonaccrual status, was 0.71% of total loans at June 30, 2026, compared to 0.69% and 0.58% as of December 31, 2025 and June 30, 2025, respectively.

Current wording

Total nonperforming assets were $47.0 million at September 30, 2026, an increase compared to nonperforming assets of $30.8 million at December 31, 2025. The increase during the nine months ended September 30, 2026 was primarily driven by a $13.7 million increase in nonaccrual loans including $7.4 million of nonaccrual loans acquired in the 1st Colonial acquisition, and an additional $7.0 million in commercial real estate loans, as well as a $2.5 million increase in foreclosed real estate, partially offset by payoffs and paydowns in the third quarter of 2026. Delinquency, measured as loans past due 30 days or more, including loans on nonaccrual status, was 0.73% of total loans at September 30, 2026, compared to 0.69% and 0.68% as of December 31, 2025 and September 30, 2025, respectively.

Previous wording

Total deposits increased $738.6 million, or 14.2%, from $5.2 billion on December 31, 2025, to $6.0 billion at June 30, 2026. The growth was primarily driven by the acquisition of 1st Colonial deposits of $747.1 million. These deposits contributed to a $470.4 million increase in interest-bearing accounts, a $139.4 million increase in noninterest-bearing accounts, and a $128.9 million increase in time deposits.

Current wording

Total deposits increased $880.4 million, or 16.9%, from $5.2 billion on December 31, 2025, to $6.1 billion at September 30, 2026. The growth was primarily driven by the acquisition of 1st Colonial deposits of $747.1 million. These deposits contributed to a $722.2 million increase in interest-bearing accounts, a $89.3 million increase in noninterest-bearing accounts, and a $69.0 million increase in time deposits.

Previous wording

As of June 30, 2026, uninsured deposits were approximately $1.2 billion, or 20.0% of total deposits compared to $1.0 billion, or 19.2%, of total deposits as of December 31, 2025. The maturities of the uninsured time deposits as of June 30, 2026 were as follows:

Current wording

As of September 30, 2026, uninsured deposits were approximately $1.2 billion, or 19.5% of total deposits compared to $1.0 billion, or 19.2%, of total deposits as of December 31, 2025. The maturities of the uninsured time deposits as of September 30, 2026 were as follows: