NASDAQ$MPB

Mid Penn Bancorp Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported net income of $4.8 million and completed acquisition of Brunswick Bancorp.

Mid Penn Bancorp reported a net income of $4.8 million, or $0.29 per diluted common share, for the quarter ended June 30, 2023. The company completed the acquisition of Brunswick Bancorp, which added $391.9 million in total assets, including $324.8 million of loans. Organic deposit growth was $126.0 million, and organic loan growth was $98.3 million for the quarter.

  • Completed the acquisition of Brunswick Bancorp, adding $391.9 million in total assets.
  • Achieved organic deposit growth of $126.0 million, representing 13% annualized growth.
  • Achieved organic loan growth of $98.3 million, representing 10.9% annualized growth.
  • Repurchased 204,379 shares of common stock at an average price of $22.41.

Headline financials

Total Revenue

$41.7M

Previous: $40.7M+2.5%
EPS (adj)

$0.68

Previous: $0.77-11.7%
Tax-equivalent net interest margin

3.3%

Previous: 3.5%-4.6%
Non-performing asset to total assets

0.3%

Previous: 0.2%+68.4%
ACL on loans to total loans

0.8%

No prior period
Capital Expenditures

-$1.84M

Previous: -$2.55M+27.9%
Free Cash Flow

$3M

Previous: $9.7M-69.1%
Net Income

$4.84M

Previous: $12.3M-60.5%
Operating Income

$12.9M

Previous: $34.9M-62.9%
Gross Profit

$40.5M

Previous: $40.7M-0.4%
Cash & Equivalents

$84.2M

Previous: $64.4M+30.6%
Total Assets

$5.09B

Previous: $4.31B+18.1%
Stock-Based Comp

$251K

Previous: $291K-13.7%

Revenue & EPS history

Mid Penn Bancorp · Revenue · Quarterly

$41.7M

Q2 2023+2.5%vs Q2 2022
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Revenue by segment

Mid Penn Bancorp · $13.8M total across 4 segments · Q4 2020

  • Mortgage banking
    $9.68M
  • ATM debit card interchange
    $1.96M
  • Fiduciary and wealth management
    $1.69M
  • Net gain on sales of SBA loans
    $442K

Forward guidance

Mid Penn expects margin compression to end and to build the margin back to the level seen in FY2021 and 2022, while diligently controlling noninterest expenses to meet shareholder and analyst expectations for FY2023 operating results.

Tailwinds

  • Anticipates an end to margin compression.
  • Expects to rebuild margin to FY2021 and 2022 levels.
  • Focuses on controlling noninterest expenses.
  • Aims to meet expectations of shareholders and analysts.
  • Brunswick acquisition will allow for better competition in the central New Jersey market.

Headwinds

  • Net interest margin remained under pressure due to the inverted interest rate yield curve.
  • Rising interest rate environment.
  • Lower demand for mortgages.
  • Hedging the mortgage pipeline becomes more difficult and adds volatility to earnings.
  • Customers in many product types have become increasingly rate sensitive.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.8%

Avg return

30 days after

61%

40 / 66 earnings

Positive

+18.5%

Q1 2020

Best reaction

-6.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.4%+1.0%-3.3%
Q4 2025+2.5%-5.9%+1.0%
Q3 2025+1.1%-3.9%-0.7%
Q2 2025-1.1%+0.0%+5.6%
Q1 2025-0.8%-1.1%-10.3%
Q4 2024+1.0%+2.3%-4.3%
Q3 2024+1.6%+4.9%+5.5%
Q2 2024+4.5%+5.4%+11.1%
Q1 2024+1.5%+1.1%+4.1%
Q4 2023-3.6%-10.4%-12.2%
Q3 2023+2.8%+1.8%+13.2%
Q2 2023-3.0%-4.7%-12.9%
Q1 2023-2.3%-13.6%+2.8%
Q4 2022+0.3%+1.2%+0.7%
Q3 2022+2.9%+5.1%+5.1%
Q2 2022+2.4%+4.5%+5.8%
Q1 2022+3.9%+1.5%+6.8%
Q4 2021-3.5%-3.9%-7.4%
Q3 2021+1.5%+5.9%+17.4%
Q2 2021+0.5%-1.8%-0.3%
Q1 2021+1.8%+4.6%+11.3%
Q4 2020+3.6%+7.0%+12.0%
Q3 2020-2.0%+2.2%+17.9%
Q2 2020+4.2%+3.4%+10.5%
Q1 2020+18.5%+14.4%+23.5%
Q4 2019-6.5%-12.6%-19.8%
Q3 2019+1.0%+3.2%+6.1%
Q2 2019-1.5%-1.6%-17.8%
Q1 2019+3.4%+1.4%+0.5%
Q4 2018-1.9%-2.9%+3.1%
Q3 2018-0.4%+5.4%+5.1%
Q2 2018-3.2%-3.0%-10.5%
Q1 2018+1.9%+0.0%-4.3%
Q4 2017+8.2%+4.3%+0.5%
Q3 2017+0.0%+0.0%+8.6%
Q2 2017+2.3%+2.3%+3.4%
Q1 2017+2.7%+4.0%+0.2%
Q4 2016-2.4%-1.6%+6.1%
Q3 2016-0.2%+0.1%+13.1%
Q2 2016+3.5%+3.7%+14.1%
Q1 2016+2.3%
Q4 2015+1.2%
Q3 2015-1.6%
Q2 2015+3.5%
Q1 2015-0.1%
Q4 2014-0.8%
Q3 2014+3.6%
Q2 2014+2.9%
Q1 2014+6.4%
Q4 2013-0.4%
Q3 2013+4.5%
Q2 2013+1.3%
Q1 2013-2.9%
Q4 2012+0.5%
Q3 2012+1.5%
Q2 2012-0.1%
Q1 2011+1.4%
Q1 2012+3.0%
Q4 2009+0.8%
Q4 2011+0.8%
Q4 2010+0.8%
Q3 2011+0.0%
Q3 2010+0.0%
Q2 2011+0.0%
Q2 2010+0.0%
Q1 2010-4.9%

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