Mid Penn’s Q1 Earnings Fall to $0.36, Acquires $842.5M Assets, Declares $0.22 Dividend
Mid Penn Bancorp’s Q1 net income fell to $8.7 million ($0.36/share) from $13.7 million ($0.71/share) year-over-year, while adjusted EPS was $0.64 excluding $8.1 million of one-time expenses. Acquisitions of 1st Colonial and Cumberland Advisors added $842.5 million and $3.2 billion AUM, driving loans to $5.5 billion (+22.7%) and deposits to $6.0 billion (+26.2%), declaring a $0.22 dividend.
1. Q1 Financial Performance
Mid Penn reported GAAP net income of $8.7 million, or $0.36 per share, down from $13.7 million, or $0.71 per share, in Q1 2025. On a non-GAAP basis, adjusted net income rose 10% to $15.3 million, with adjusted EPS at $0.64, reflecting exclusion of $8.1 million in one-time merger and compensation expenses.
2. Acquisition Details
On January 1, Mid Penn closed on Cumberland Advisors, adding approximately $3.2 billion in assets under management, and on February 27 completed the 1st Colonial acquisition, contributing $842.5 million in assets, primarily $597.5 million of loans. These transactions expand wealth management capabilities and fee-based revenue.
3. Balance Sheet Growth and Margins
Total loans grew 22.7% year-over-year to $5.5 billion, driven by organic growth and acquired balances, while deposits rose 26.2% to $6.0 billion. Net interest margin increased to 3.80%, up 43 basis points from Q1 2025, driven by higher yields and lower funding costs.
4. Dividend and Integration Outlook
The board declared a $0.22 per share quarterly dividend payable May 15 to shareholders of record May 4. Near-term efficiency ratios rose to 63.52% due to integration costs for recent acquisitions, with management anticipating cost synergies in future periods.