Mid Penn Bancorp Inc (NASDAQ: MPB)

Mid Penn Bancorp, Inc. is a financial holding company that supervises and coordinates the business of its wholly owned bank and nonbank subsidiaries, collectively referred to as Mid Penn or the Corporation. The primary business consists of attracting deposits and loans through the Bank’s network of community banking offices, providing a wide range of financial services including mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development and local government loans, and various types of time and demand deposits. Mid Penn operates as a single business segment, with its consolidated financial condition and results of operations consisting almost entirely of the Bank’s activities. As of December 31, 2025, Mid Penn had total consolidated assets of $6.1 billion, total deposits of $5.2 billion, and total shareholders’ equity of $814.1 million.

Mid Penn generates revenue primarily through interest income on loans and investments, as well as noninterest income from service charges, trust and investment services, and insurance agency activities. The Bank earns interest from commercial real estate loans, residential real estate loans, commercial and industrial loans, and consumer loans, with commercial real estate representing the largest concentration of credit. Noninterest income is derived from deposit service fees, trust and retail investment services, online banking, telephone banking, cash management services, automated teller services, safe deposit boxes, and insurance products offered through nonbank subsidiaries such as MPB Risk Services, LLC, a licensed insurance producer, and recent acquisitions including Commonwealth Benefits Group and Charis Insurance Group, Inc.

The company operates through the following segments:

• Banking: This segment provides full-service commercial banking and trust business through Mid Penn Bank, offering mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development and local government loans, and various types of time and demand deposits. The Bank also provides trust and retail investment services, online banking, telephone banking, cash management services, automated teller services, and safe deposit boxes. These services are delivered through 59 full-service retail banking properties and 13 administrative properties primarily based in Pennsylvania and New Jersey.

• Insurance: This segment includes MPB Risk Services, LLC, a licensed insurance producer, and recent acquisitions such as Commonwealth Benefits Group, a full-service employee benefits firm serving mid to large employers across central and eastern Pennsylvania, northern Maryland, and northern Virginia, and Charis Insurance Group, Inc., which provides business, home, and auto insurance throughout central and southern Pennsylvania. The segment generates revenue through insurance commissions, fees for employee benefits administration, and related insurance product sales. These operations were acquired to expand Mid Penn’s financial product and service offerings beyond traditional banking.

• Wealth Management: This segment encompasses trust and investment services provided by the Bank, including retail investment services and fiduciary activities. Although MPB Wealth Management, LLC ceased operating during the first quarter of 2024, the Bank continues to offer trust and investment services directly. The segment also includes Cumberland Advisors, Inc., a registered investment advisory firm acquired in September 2025, which brings approximately $3.2 billion of assets under management and recorded year-to-date annualized revenue of $9.0 million as of the quarter ended June 30, 2025. This segment supports Mid Penn’s strategy to broaden its spectrum of financial product and service offerings.

Mid Penn competes in the highly competitive financial services and banking industry, facing competition from commercial banks, credit unions, savings banks, savings and loan associations, insurance companies, securities brokerage firms, finance companies, mutual funds, and internet-based product/service alternatives. The Corporation differentiates itself through customer-focused relationship management, convenient hours, efficient and friendly employees, a consultative sales approach, local decision making, and quality products. Despite many competitors having greater financial resources, personnel, and locations, Mid Penn has maintained effective competition by emphasizing local relationship building and a prudent lending approach, which it believes are key factors in its success and growth within its market area spanning nineteen Pennsylvania counties and five counties in New Jersey.

Mid Penn serves commercial businesses, real estate investors, consumers, nonprofit organizations, and municipalities through its 59 full-service retail banking properties and 13 administrative properties. The Bank’s customer base includes individuals and entities across central and southeastern Pennsylvania and central and southern New Jersey, with a focus on building long-term relationships in its primary markets. While specific customer names are not disclosed in the filing, the Bank provides services to a diverse mix of clients including local governments, nonprofit organizations, and businesses in sectors such as manufacturing, services, and real estate, reflecting the diversified economic base of its footprint.