EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

DATE:    July 18, 2008
CONTACT:   

Alan W. Dakey

President & CEO

Mid Penn Bancorp, Inc.

349 Union Street

Millersburg, PA 17061

(717) 692-2133

MID PENN BANCORP, INC. REPORTS SECOND QUARTER EARNINGS

(Millersburg, PA) – Mid Penn Bancorp, Inc. (“Mid Penn”) (AMEX: MBP) today reported second quarter earnings of $1,060,000, including per share earnings of $0.30. Earnings for the second quarter of 2007 were $1,179,000 and $0.34 per share. Net income and earnings per share for the first six months of 2008 were $2,233,000 and $0.64 compared to $2,263,000 and $0.65 in the first half of 2007. The modest decrease in earnings resulted from a declining net interest margin, driven by the spreading weakness in the general economy. Mid Penn has also been selectively adding talented employees and enhancing its technological infrastructure to better cope with the changing financial landscape and to continue to offer its customers the tools to meet these challenges.

Banks continue to receive bad publicity in the media while the reality is that most community banks did not participate in sub-prime lending. Mid Penn did not originate sub-prime loans and has not experienced the challenges that have accompanied this form of lending.

Total assets at the end of the second quarter of 2008 were approximately $541 million, versus $492 million the prior year, an increase of 9.9%. Total loans of $401 million increased by $37 million or 10.1% at June 30, 2008, compared to the prior year, while total deposits as of the same date increased $30 million or 7.8% over the prior year. Average earning assets have also shown strong growth, increasing 9.1% to $505 million from June 30, 2007. During the second quarter of 2008, Mid Penn recorded a net loan recovery of $1,000 as compared to $157,000 of net chargeoffs during the same period in 2007. Net chargeoffs for the first six months of 2008 were $22,000 compared to $127,000 in the first half of 2007.

“We remain encouraged by the results achieved by Mid Penn, even in the face of the economic uncertainties we are facing,” commented Alan W. Dakey, President and Chief Executive Officer. “Our growth remains strong, and we remain vigilant in examining the quality of our loan portfolio during these challenging times, even though we had not engaged in any of the sub-prime lending that has plagued many larger financial institutions. This strong growth coupled with the investments we are making in people and technology will position us for a successful 140th anniversary celebration and into the future.”

Celebrating its 140th year of serving the community, Mid Penn Bank has been an independently owned community bank since 1868, and is committed to remaining a progressive, independent community bank offering a full line of business, personal and trust services.

Mid Penn Bancorp, Inc., through its subsidiary, Mid Penn Bank, operates 15 offices in Dauphin, Northumberland, Schuylkill, and Cumberland Counties. For more information, visit Mid Penn’s website at www.midpennbank.com and view the Investor Relations page where comprehensive investor information is available concerning Mid Penn Bancorp, Inc.


This press release contains “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995, which is based on Mid Penn’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business. These statements are not historical facts or guarantees of future performance, events, or results. Such statements involve potential risks and uncertainties and, accordingly, actual performance results may differ materially. Mid Penn undertakes no obligation to publicly update or revise forward looking information, whether as a result of new, updated information, future events, or otherwise.


MID PENN BANCORP, INC.

Selected Financial Information

(Dollars in thousands, except per share data) (1)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2008     2007     2008     2007  

Consolidated Summary of Operations:

        

Interest income

   $ 7,786     $ 7,780     $ 15,863     $ 15,485  

Interest expense

     3,639       3,766       7,515       7,493  
                                

Net interest income

     4,147       4,014       8,348       7,992  

Provision for loan losses

     155       125       255       200  
                                

Net interest income after provision for loan losses

     3,992       3,889       8,093       7,792  
                                

Non-interest income:

        

Trust department income

     68       75       135       156  

Service charges on deposits

     437       365       845       732  

Investment securities gains (losses), net

     —         —         —         —    

Income on bank-owned life insurance

     65       66       127       135  

Mortgage banking activities income

     42       21       81       21  

Gain on sale of other real estate

     —         —         —         —    

Other income

     289       330       606       650  
                                

Total non-interest income

     901       857       1,794       1,694  

Non-interest expenses:

        

Salaries and employee benefits

     1,794       1,601       3,611       3,324  

Occupancy expense, net

     239       222       528       438  

Equipment expense

     203       200       426       418  

Pennsylvania Bank Shares tax expense

     92       82       184       163  

ATM/Debit card expenses

     70       62       111       109  

Professional fees

     156       128       296       240  

Director fees and benefits

     90       100       168       193  

Advertising expense

     103       142       182       226  

Computer software license and maintenance

     111       85       249       234  

Stationery and supplies

     55       55       127       117  

Other operating expenses

     560       513       1,035       1,019  
                                

Total non-interest expenses

     3,473       3,190       6,917       6,481  
                                

Income before income taxes

     1,420       1,556       2,970       3,005  

Income taxes

     360       377       737       742  
                                

Net income

   $ 1,060     $ 1,179     $ 2,233     $ 2,263  
                                

Consolidated Per Share Data:

        

Earnings per share

   $ 0.30     $ 0.34     $ 0.64     $ 0.65  

Book value at end of period

   $ 11.64     $ 11.59      

Allowance for loan losses to nonperforming assets

     87 %     209 %    

Net loan chargeoffs (recoveries)

   $   (1)   $ 157     $ 22     $ 127  

Net interest margin (FTE)

     3.47 %     3.53 %     3.54 %     3.68 %

Efficiency ratio (2)

     66.39 %     62.68 %     65.01 %     60.05 %

Return on average assets

     0.80 %     0.96 %     0.85 %     0.93 %

Return on average stockholders’ equity

     10.47 %     12.24 %     11.10 %     11.83 %


MID PENN BANCORP, INC.

Selected Financial Information

(Dollars in thousands, except per share data) (1)

Consolidated Balance Sheet Data:

 

     Three Months Ended
June 30,
   Six Months Ended
June 30,
 
     2008    2007    2008    2007  

Average total loans

   $ 392,795    $ 361,233    $ 388,462    $ 360,143  

Average earning assets

     504,741      462,652      499,199      463,120  

Average assets

     533,967      491,308      528,578      490,872  

Average deposits

     402,234      375,598      399,454      373,490  

Average Stockholders’ equity

     40,736      38,649      40,472      38,566  

Average diluted shares outstanding

     3,484,073      3,496,680      3,486,449      3,502,667  
     June 30,
2008
   December 31,
2007
   June 30,
2007
   6/30/2008
vs.
6/30/2007
% Change
 

Assets

   $ 540,699    $ 509,757    $ 492,160      9.9 %

Total loans, net of unearned income

     401,110      377,128      364,150      10.1 %

Deposits

     402,550      372,817      373,361      7.8 %

Stockholders’ equity

     40,518      40,444      38,999      3.9 %

Common shares outstanding

     3,479,780      3,489,634      3,494,442      -0.4 %

 

(1)

Per share data reflects stock dividends.

(2)

The efficiency ratio does not include net securities transactions.