 MILLERSBURG, Pa., July 23, 2020 GLOBE NEWSWIRE -- Mid Penn Bancorp, Inc. Mid Penn NASDAQ: MPB, the parent company of Mid Penn Bank the Bank, today reported net income to common shareholders earnings for the quarter ended June 30, 2020 of 6,833,000 or 0.81 per common share basic and diluted, compared to earnings of 4,403,000 or 0.52 per common share basic and diluted for the quarter ended June 30, 2019. Both the quarterly net income and the quarterly earnings per share represent the highest on record for Mid Penn Bancorp, Inc. Earnings for the six months ended June 30, 2020 were 10,651,000 or 1.26 per common share basic and diluted, compared to earnings of 8,480,000 or 1.00 per common share basic and diluted for the six months ended June 30, 2019. Tangible book value per common share, a non-GAAP measure that is regularly reported in the banking industry and the most directly comparable non-GAAP measure to book value per share, favorably increased to 20.86 as of June 30, 2020, compared to 19.96 as of December 31, 2019, and 19.13 as of June 30, 2019. The GAAP measure of book value per share increased to 28.94 as of June 30, 2020, compared to 28.05 as of December 31, 2019, and 27.32 as of June 30, 2019. Please refer to the section included herein under the heading Reconciliation of Non-GAAP Measures Unaudited for a discussion of our use of non-GAAP adjusted financial information, which includes tables reconciling GAAP and non-GAAP adjusted financial measures for the periods ended June 30, 2020, December 31, 2019, June 30, 2019, and certain other periods. Mid Penn also reported total assets of 2,922,365,000 as of June 30, 2020, reflecting an increase of 691,190,000 or 31 percent compared to total assets of 2,231,175,000 as of December 31, 2019, and an increase of 786,243,000 or 37 percent compared to total assets of 2,136,122,000 as of June 30, 2019. Mid Penn was a significant lender under the federal Paycheck Protection Program PPP which was created when the Coronavirus Aid, Relief, and Economic Security CARES Act was signed into law on March 27, 2020, by President Trump. Asset growth during the second quarter of 2020 included the significant volume of 588,667,000 of PPP loans still outstanding, net of deferred fees, as of June 30, 2020. Additionally, total core banking loans total loans excluding both the PPP portfolio and mortgage loans held for sale increased to 1,857,098,000 as of June 30, 2020, representing an annualized core loan growth rate of over 10 percent since the end of 2019. The asset growth was funded by both i 413,919,000 of deposit growth, representing an annualized deposit growth rate of 43 percent, with more than half of such growth favorably being in noninterest-bearing deposits; and ii a 256,316,000 net increase in wholesale borrowings, including 203,937,000 of funding obtained from the Federal Reserve through the Paycheck Protection Program Liquidity Facility PPPLF. Under the PPPLF, the Federal Reserve will supply financing to the Bank at a rate of 35 basis points 0.35 for a term and amount determined based on the principal amount of PPP loans fully and specifically pledged as collateral in support of the PPPLF borrowings. Draws of PPPLF funds must be repaid to the Federal Reserve immediately after the specific PPP loans collateralizing the related draws are repaid to the Bank.PRESIDENTS STATEMENT On behalf of the Board of Directors and all of the employees of Mid Penn Bancorp, Inc., we proudly announce these second quarter results to our Shareholders today. Over the last four months as the country has dealt with this unprecedented pandemic, that Board and those employees have worked smartly and diligently to position this company for these type of results. The quarters success was largely impacted by Mid Penn Banks participation in the Paycheck Protection Program that was implemented in late March 2020 by the Small Business Administration SBA. Using our unique SBA expertise, a well-developed game plan and thousands of hours of employee time - many of those hours personal time - the Bank was able to originate and fund over 4,000 PPP loans for over 625 million that worked to protect over 60,000 jobs for small businesses throughout our expanding footprint. That effort and that success had a very positive impact on our financial performance for the second quarter and, we expect, for the remainder of 2020. To recognize that performance while providing such needed relief to so many owner managed businesses and the employees of those businesses was truly gratifying.That PPP success was only part of the story, however. While we were excelling at PPP, we continued to do all the other things for which we have developed a reputation. Even while over 70 of our employees were working from home in the interest of their safety, we managed to organically grow our loan and deposit balances by continuing to execute on our business development plan. We had a record quarter in residential mortgage production, strong growth in commercial and consumer loans and wonderful success in deposit account openings. That all occurred because our employees took up the challenge of doing things differently, but providing the same level of world class customer service to which our customers have come to expect.Even during this record setting loan production quarter, we also continued to work closely with all of our existing borrowers to make sure they had the support necessary to make it through these difficult times. This companys success is very dependent on the quality of our loan portfolio. Heading into the pandemic, the quality of that loan portfolio gave us a good deal of confidence that 2020 would be another successful year in asset quality results. The work we did with our borrowers in the second quarter yielded some very good results as can be seen in those asset quality metrics for the quarter. We will continue to provide that level of focus on portfolio management throughout the remainder of this pandemic while we continue to prepare for any ramifications of an extended statewide shutdown.With these second quarter results, I am also pleased to announce that, on July 22, 2020, the Board of Directors of Mid Penn Bancorp, Inc. declared a quarterly dividend of 0.18 per common share, payable on August 24, 2020, to shareholders of record as of August 10, 2020.OPERATING RESULTS Net Interest Income and Net Interest Margin For the three months ended June 30, 2020, net interest income was 21,346,000, an increase of 3,576,000 or 20 percent compared to net interest income of 17,770,000 for the three months ended June 30, 2019. Through the first six months of 2020, net interest income was 39,011,000, an increase of 3,935,000 or 11 percent compared to net interest income of 35,076,000 for the same period in 2019. The primary source of both year-to-date and month-to-date increase in net interest income growth was the recognition of 2,371,000 of PPP loan fees in interest income during the second quarter of 2020. The fees were generated as a result of Mid Penns participation in the PPP and will be recognized in interest income over the term of the respective loan most 24-months, or sooner as the loans pay down principal. The increase in net interest income was also driven by an increase in traditional interest and fees on loans, as total loans increased 757,592,000 or 45 percent since June 30, 2019.Mid Penns tax-equivalent net interest margin was 3.37 percent for the three months ended June 30, 2020 compared to 3.69 percent for the three months ended June 30, 2019. For the six months ended June 30, 2020, Mid Penns tax-equivalent net interest margin was 3.41 percent versus 3.69 percent for the six months ended June 30, 2019. Though the quarterly and year-to-date average balance of interest-earning assets increased year over year, the yields on interest earning assets declined due to both i the significant balance of PPP loans which earn interest at a rate of 1 percent, and ii reductions in the yield curve subsequent to June 2019, including the impact of the three rate decreases approved by the Federal Open Market Committee FOMC, for 0.75 combined during the latter half of 2019, and the 1.50 of combined rate cuts, during March 2020 in response to the COVID-19 pandemic. Decreases in the yields on interest earning assets were partially offset by the recognition of PPP loan fees in total interest income. The total cost of deposits for both the three and six months ended June 30, 2020 favorably decreased compared to the same periods in 2019 as a result of the aforementioned yield curve reductions and FOMC rate cuts providing for management to significantly reduce deposit account rates while still maintaining and growing core deposit balances.Noninterest Income During the three months ended June 30, 2020, noninterest income totaled 3,622,000, an increase of 748,000 or 26 percent, compared to noninterest income of 2,874,000 for the three months ended June 30, 2019. For the six months ended June 30, 2020, noninterest income totaled 6,556,000, an increase of 1,633,000 or 33 percent, compared to noninterest income of 4,923,000 for the same period 2019.Mortgage banking income was 2,820,000 for the six months ended June 30, 2020, an increase of 1,306,000 or 86 percent compared to mortgage banking income of 1,514,000 for the six months ended June 30, 2019. Longer-term mortgage interest rates have declined significantly over the past twelve months, resulting in a higher level of mortgage originations both purchase and refinance activity and secondary-market loan sales when comparing the first six months of 2020 to the same period in 2019. 