Mid Penn Bancorp reported net income of $21.6 million for the third quarter of 2026, an 18.2% increase year-over-year primarily driven by the integration of the William Penn and 1st Colonial acquisitions. While total assets reached $7.1 billion, the company experienced sequential net interest margin compression and a rise in nonperforming assets.
Key Highlights
- Total loans increased 16.9% year-over-year to $5.6 billion, though organic growth excluding the 1st Colonial acquisition was a more modest $176.2 million year-to-date.
- Net interest margin compressed 14 basis points sequentially to 3.92%, impacted by an $8.0 million decline in purchase accounting adjustments and rising funding costs.
- Nonperforming assets rose to $47.0 million from $36.8 million in the second quarter of 2026, largely due to a $7.0 million increase in nonaccrual commercial real estate loans.
- The bank realized a $1.6 million benefit for credit losses during the quarter, attributed to improved macroeconomic forecasts for GDP and unemployment.