Loading...
•
Jun 30, 2023
Mid Penn Bancorp Q2 2023 Earnings Report
Reported net income of $4.8 million and completed acquisition of Brunswick Bancorp.
Key Takeaways
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.
Mid Penn Bancorp
Mid Penn Bancorp
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.