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Mid Penn Bancorp reports higher earnings in Q1 2024

EditorNatashya Angelica
Published 24/04/2024, 21:44
MPB
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HARRISBURG, Pa. - Mid Penn Bancorp , Inc. (NASDAQ: NASDAQ:MPB), the holding company for Mid Penn Bank, has announced its financial results for the first quarter ended March 31, 2024. The company reported net income available to common shareholders of $12.1 million, or $0.73 per diluted common share, surpassing analyst consensus estimates of $0.61 per share.

The bank experienced substantial loan growth, with a $64.7 million increase for the quarter, marking an annualized growth rate of 6.1%. Total loans expanded by $706.1 million compared to the first quarter of 2023. Excluding the Brunswick (NYSE:BC) loans acquired in 2023, organic loan growth from the previous year's quarter was $381.6 million, or 10.6%.

Deposit growth also continued, with a $32.9 million increase, or 3.0% annualized, for the first quarter of 2024. Organic deposits grew by $219.6 million, a 5.7% increase when excluding the Brunswick acquisition deposits from the previous year.

The company's tangible book value per common share increased to $25.23 at the end of the quarter, up from $24.67 at the end of December 2023 and $24.52 from the same period in 2023.

Mid Penn's return on average assets remained consistent at 0.92%, while return on average equity saw a slight increase to 8.94% for the quarter ended March 31, 2024.

The Board of Directors declared a cash dividend of $0.20 per share, payable on May 27, 2024, to shareholders of record as of May 10, 2024.

Despite the challenging operating environment marked by an inverted yield curve, escalating funding costs, and geopolitical tensions, Mid Penn's Chair, President, and CEO, Rory G. Ritrievi, expressed satisfaction with the quarterly results, highlighting the company's focus on asset quality and controlled balance sheet growth.

The information in this article is based on a press release statement from Mid Penn Bancorp, Inc.

InvestingPro Insights

As Mid Penn Bancorp, Inc. (NASDAQ: MPB) reports strong financial results for the first quarter of 2024, investors and analysts are keeping a keen eye on the company's performance metrics.

According to real-time data from InvestingPro, Mid Penn Bancorp boasts a market capitalization of $338.44 million and has maintained a consistent dividend payment history for 14 consecutive years, underlining its commitment to shareholder returns. The company's P/E ratio stands at 8.89, reflecting investor sentiment about its earnings potential.

InvestingPro Tips indicate that although analysts have revised their earnings expectations downwards for the upcoming period, the company is expected to remain profitable this year. This aligns with Mid Penn's reported net income available to common shareholders of $12.1 million for Q1 2024.

Still, the company does suffer from weak gross profit margins, which investors should consider when assessing the company's overall financial health. With a dividend yield of 3.87%, Mid Penn continues to attract income-focused investors.

For those interested in a deeper analysis, InvestingPro offers additional insights and metrics for Mid Penn Bancorp, including an adjusted P/E ratio of 7.66 for the last twelve months as of Q4 2023, and a PEG ratio of -0.27, which could suggest that the company's earnings growth does not justify its P/E ratio. The InvestingPro platform lists more tips and detailed financial data, which can be accessed by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

The information in this section aims to provide investors with a more comprehensive understanding of Mid Penn Bancorp's financial position and market potential. With the next earnings date set for April 25, 2024, stakeholders will undoubtedly watch for continued performance and strategic initiatives that may influence the company's trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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