Mid Penn Bancorp Inc. (NASDAQ: MPB) on Tuesday announced a $50 million expansion and reauthorization of its stock repurchase program, effective through April 30, 2027.
"To reward our shareholders, we are happy to declare a quarterly cash dividend of $0.22 per common share... We are also pleased to announce the reauthorization and expansion of our treasury stock repurchase program," Chair, President and CEO Rory G. Ritrievi said in a statement.
The buyback news accompanied the bank’s first-quarter results, where it reported net income of $8.7 million, or $0.36 per share. On an adjusted basis, excluding $7.7 million in merger-related expenses, earnings were $0.64 per share on adjusted net income of $15.3 million, a 10 percent increase from the prior year.
The repurchase program was announced after a quarter chief executive Ritrievi called "unusually noisy" due to costs from the acquisitions of 1st Colonial Bancorp and Cumberland Advisors. The buyback signals management's confidence despite a year-over-year drop in GAAP earnings from $0.71 per share in Q1 2025.
Mid Penn's first-quarter total revenues of $64.9 million and pre-provision net revenues of $12.9 million both surpassed consensus estimates, Ritrievi noted.
The acquisitions were a primary driver of expenses. The transactions added $842.5 million in assets from 1st Colonial and approximately $3.2 billion in assets under management from Cumberland Advisors, significantly expanding the company's footprint and noninterest income capabilities.
The bank’s net interest margin expanded to 3.80 percent, up 43 basis points from the first quarter of 2025, driven by higher loan yields and lower funding costs.
The expanded buyback provides a mechanism to support the stock and increase earnings per share by reducing the share count. Investors will watch how effectively Mid Penn integrates its recent acquisitions to realize projected cost synergies in the coming quarters.
This article is for informational purposes only and does not constitute investment advice.
