Mid Penn Bancorp, Inc. (NASDAQ: MPB) has reported its financial results for the fourth quarter and full year 2025. The net income available to common shareholders for the fourth quarter of 2025 was $19.4 million, representing a 47.0% increase compared to the same period in 2024. Earnings per basic share for the fourth quarter of 2025 were $0.84, compared to $0.72 for the fourth quarter of 2024, marking an increase of 16.7%.
Net interest margin increased to 3.79% for the quarter ended December 31, 2025, compared to 3.60% for the third quarter of 2025, and 3.21% for the fourth quarter of 2024. This represents a 19 and 58 basis point increase compared to the third quarter of 2025 and fourth quarter of 2024, respectively.
Loan balances increased $41.7 million, or 3.4% (annualized), during the fourth quarter of 2025. Total loans increased $419.8 million, or 9.4%, to $4.9 billion at December 31, 2025, compared to $4.4 billion at December 31, 2024. Excluding the William Penn acquisition loans of $431.4 million, the organic loan portfolio as of December 31, 2025, declined $11.6 million or 0.3% from the year ended December 31, 2024.
Deposits decreased $128.1 million, or 9.5% (annualized), during the fourth quarter of 2025, compared to a decrease of $106.9 million, or 7.8% (annualized), during the third quarter of 2025. Total deposits increased $524.7 million, or 11.2%, to $5.2 billion at December 31, 2025, compared to $4.7 billion at December 31, 2024. Excluding the William Penn acquisition deposits of $619.8 million, organic deposits decreased $95.0 million, or 2.0%, from December 31, 2024.
The core efficiency ratio improved to 55.26% in the fourth quarter of 2025, compared to 58.80% in the third quarter of 2025, and 63.94% in the fourth quarter of 2024. This improvement was driven by higher net interest income and disciplined management of noninterest expense following the William Penn acquisition.
Book value per common share improved to $35.32 as of December 31, 2025, compared to $33.84 as of December 31, 2024. Tangible book value per common share was $28.76 as of December 31, 2025, compared to $26.90 as of December 31, 2024.
The board of directors declared a cash dividend of $0.22 per common share, payable February 17, 2026, to shareholders of record as of February 6, 2026, and a special dividend of $0.05 per common share, payable February 17, 2026, to shareholders of record as of February 6, 2026.
For the year ended December 31, 2025, net interest income increased 27.1% to $199.1 million compared to net interest income of $156.7 million for the same period of 2024. The total benefit for credit losses was $839 thousand for the three months ended December 31, 2025, a decrease of $405 thousand compared to the benefit for credit losses of $434 thousand for the three months ended September 30, 2025.
Noninterest income for the year ended December 31, 2025, totaled $26.8 million, an increase of $4.3 million, or 19.3%, compared to noninterest income of $22.5 million for the year ended December 31, 2024.
Noninterest expense for the year ended December 31, 2025, totaled $152.3 million, an increase of $34.7 million, or 29.5%, compared to noninterest expense of $117.6 million for the year ended December 31, 2024.
Shareholders’ equity increased $17.7 million, or 2.23%, from $796.3 million as of September 30, 2025, to $814.1 million as of December 31, 2025. Retained earnings increased $14.4 million, or 7.0%, from $205.3 million as of September 30, 2025, to $219.7 million as of December 31, 2025. Regulatory capital ratios for both Mid Penn and the bank indicate regulatory capital levels in excess of both the regulatory minimums and the levels necessary for the bank to be considered "well capitalized" at December 31, 2025. The market has reacted to these announcements by moving the company's shares 0.12% to a price of $32.44. If you want to know more, read the company's complete 8-K report here.
