Mid Penn Bancorp Inc (MPB) Reports Q3 2023 Earnings and Declares Dividend
Mid Penn Bancorp Inc (NASDAQ:MPB) reported Q3 2023 net income of $9.2 million, or $0.56 per diluted common share.
The company declared a quarterly cash dividend of $0.20 per share of common stock.
Organic loan growth for Q3 2023 was $111.1 million, or 10.9% (annualized), from Q2 2023.
Net interest income for Q3 2023 was $37.5 million, compared to $36.4 million for Q2 2023.
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Mid Penn Bancorp Inc (NASDAQ:MPB), the parent company of Mid Penn Bank and MPB Financial Services, LLC, released its earnings report for the quarter ended September 30, 2023, on October 25, 2023. The company reported a net income of $9.2 million, or $0.56 per diluted common share. Despite facing challenges due to external forces, the company managed to maintain a respectable net interest margin.
Financial Highlights
Mid Penn Bancorp Inc (NASDAQ:MPB) reported organic loan growth of $111.1 million, or 10.9% (annualized), from the second quarter of 2023. Organic deposit growth for the quarter ended September 30, 2023, was $94.9 million, or 8.8% (annualized), from the second quarter of 2023. The company's credit quality strengthened during the third quarter of 2023 with nonperforming assets declining $1.6 million from June 30, 2023.
The third quarter of 2023 was a challenging one for Mid Penn, mostly due to external forces beyond our control. Chief among them was an inverted yield curve throughout the quarter that had our base borrowing rate, the effective funds rate, higher than our base lending rate, the 5-year Treasury. As a consequence, maintaining a respectable net interest margin was extremely difficult, as evidenced by additional compression in that metric," Chair, President, and CEO Rory G. Ritrievi said.
Income Statement Summary
For the three months ended September 30, 2023, net interest income was $37.5 million compared to net interest income of $36.4 million for the three months ended June 30, 2023, and $39.4 million for the three months ended September 30, 2022. The tax-equivalent net interest margin for the three months ended September 30, 2023, was 3.16% compared to 3.29% for the second quarter of 2023, and 3.92% for the third quarter of 2022.
Balance Sheet Summary
As of September 30, 2023, the company's total assets stood at $5.2 billion, up from $5.1 billion as of June 30, 2023. Total deposits were $4.4 billion for the third quarter of 2023, reflecting an increase of $303.5 million, or 7.5%, compared to total average deposits in the second quarter of 2023, and $634.4 million, or 17.0%, compared to total average deposits of $3.7 billion for the third quarter of 2022.
Dividend Declaration
For the third quarter of 2023, the Board is pleased to announce a quarterly cash dividend of $0.20 per share of common stock, which was declared at its meeting on October 25, 2023, payable on November 27, 2023, to shareholders of record as of November 10, 2023.
Looking Ahead
Despite the challenges faced in Q3 2023, Mid Penn Bancorp Inc (NASDAQ:MPB) remains focused on preserving net income for the fourth quarter of 2023 and fiscal year 2024. The company is also looking for opportunities to reduce operating costs throughout the organization.
Explore the complete 8-K earnings release (here) from Mid Penn Bancorp Inc for further details.
This article first appeared on GuruFocus.
