Mid Penn Bancorp, Inc. CEO Interview: Rory G. Ritrievi

• On 12:20 pm EDT, Tuesday October 6, 2009

67 WALL STREET, New York - October 6, 2009 - The Wall Street Transcript has just published its Northeast and Mid-Atlantic Regional Banks Report offering a timely review of the sector to serious investors and industry executives. This 130 page feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Residential Mortgage Situation -- Regional Banks Mergers and Acquisitions Timing Strategy -- Commercial Mortgage Portfolio Decay -- Timing Of Commercial Mortgage Portfolio Bad Debt Write Offs-- FDIC Hit List For Bank Closings -- Mutual Holding Company Structure -- Interest Rate Scenarios -- Banking Pricing Power -- Expensive Bank Valuations -- Tangible Book As Guide For Bank Stock Pricing -- Distressed Sales Of Community and Regional Banks -- TARP Program -- Attitude Of Institutional Investors Towards Resurgence in Community Banking -- Unique Business Models -- Regional Bank Boards Looking For Exit

Companies include: BB and T (BBT); Colonial (CNB); First Niagara (FNFG); PNC (PNC); National City (NCC-PA); Harleysville National (HNBC); Citizens First Bancorp (CTZN); Regions Financial (RF); Bank of America (BAC); SunTrust Banks (STI); Pinnacle Financial (PNFP); Northwest Bancorp Inc. (NWSB); Beneficial (BNCL); Investor Savings Bancorp (ISBC); Territorial Bancorp (TBNK); FNB Bancorp (FNBG.OB); National Penn (NPBC); Trustco Bank (TRST); KeyBank (KEY); M and T Bank (MTB); New York Community Bancorp (NYB); Bank of New York Mellon (BK); Wells Fargo and Company (WFC); JPMorgan Chase and Co. (JPM); Wachovia (WB); Harleysville Savings Bank (HARL); SVB Financial (SIVB); Signature Bank (SBNY); Provident Bank (PBKS); Valley National Bank (VLY); Community Bank System (CBU); NBT Bankcorp (NBTB); Fulton (FULT); Citibank ©; Allied Irish (AIB); Bank of Hawaii (BOH); First Horizon Bank (FHN); Comerica (CMA); Synovus (SNV); Zions (ZION); South Financial Group (TSFG); Bancorp (TBBK); Legg Mason (LM); IBERIABANK Corp. (IBKC); Wilmington Trust (WL); S and T Bancorp (STBA); PHH (PHH); Goldman Sachs (GS); Citigroup ©; U.S. Bancorp (USB); Fifth Third Bancorp (FITB); KeyCorp (KEY); Lehman Brothers; Colonial; Washington Mutual; TD Banknorth (TD), Lakeland (LBAI), Westfield Financial, Inc. (WFD), United Financial Bancorp, Inc. (UBNK), Chicopee Bancorp, Inc. (CBNK)

In the following brief excerpt from the 130 page , Rory G. Ritrievi, CEO of Mid Penn Bancorp, Inc., discusses the outlook for the sector and for investors.

TWST: Please give us a summary of Mid Penn. How would you describe your company and your business today?

Mr. Ritrievi: Mid Penn Bank was founded as the Millersburg Bank in 1868, so it's been around for 141 years. In the 1970s, the name was changed to Mid Penn Bank. The Mid Penn Bancorp holding company was formed in 1991. Today Mid Penn Bank is a $575 million plus true community bank, providing deposit, loan and trust solutions throughout Central Pennsylvania.

TWST: What do you see as the key issues the banking industry faces today, and how are you adapting ?

Mr. Ritrievi: The key issue for the banking industry today is asset quality and, by extension, strength of capital. It is not enough to just have good earnings. The balance sheet and, in particular, the main earning assets have to be well managed and well positioned. In that we, like most community banks, did not participate in any crazy loan schemes such as subprime lending, we really don't have to adapt much. We will always focus on sound principles of credit management. We will lend within our communities to people we know for projects that fundamentally make sense, with all risks assessed and managed.

TWST: Give us a look at the region you serve. What economic and demographic estimates for that area will be important to your business?

Mr. Ritrievi: Central Pennsylvania is a great community. The economy here traditionally is more stable than the national or even statewide economy. Our highs may not be as high, but our lows are never as low. A perfect example is the current unemployment rate. While ours is certainly up and unacceptable, it is still substantially below the national rate. There are several reasons for that stability. Two that come to mind are the impact of the state government and its numerous employees being centered here, and the fact that we are close to New York, Philadelphia, Baltimore and even Pittsburgh. That makes us attractive in matters of transportation.

TWST: Last fall during the dark, bleak months following the Lehman collapse and the debut of federal bailouts, I believe Mid Penn took about $11.7 million. Take us back to this time of turmoil in the economy and tell us how your bank has fared.

Mr. Ritrievi: Late last year, Mid Penn Bank applied for, was approved for and accepted $10 million in Capital Purchase Plan money from the federal government. It is important to note that this was not a free gift from the government. We, as all banks that received it then, had to qualify for the money. It was put into the bank in the form of preferred stock. We pay a 5% quarterly dividend on that money, and we are expected to pay the money back at some point in the future. In the meantime, it serves to strengthen our capital position, which allows us to stay active in the business of making loans - just what our country needs to stimulate growth in these difficult economic times. In that we have grown our loans at a healthy rate over the past nine months and have paid the dividend, I think we have fared very well.

TWST: What are the key factors that distinguish Mid Penn from its competition in central Pennsylvania? Is it your business focus, geography or the quality of your assets? What might some of those factors be?

Mr. Ritrievi: There are four types of financial institutions operating in central Pennsylvania - there are large regional banks, such as PNC, Citizens, M&T, Sovereign, Susquehanna and Wachovia; there are established community banks, such as Fulton, Orrstown and Mid Penn Bank; then there are community banks that have started up in the last decade, such as Graystone and Integrity. Finally, there are credit unions. As it relates to the large regional banks, we are better positioned to serve the needs of owner-managed businesses throughout central Pennsylvania and consumers to whom we are convenient. Those owner-managed businesses and consumers generally prefer to do business with a banker - decision-maker - and a bank they know. As it relates to the other community banks, we will distinguish ourselves by having better delivery channels and better trained people who simply hustle more to get the business. As to the credit unions, which in my opinion compete unfairly, we are a better option because we are just more experienced in terms of commercial and consumer credit solutions.

The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 130 page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .

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