Mid Penn Bancorp, Inc. (MPB): BCG Matrix [Dec-2025 Updated]

Honestly, looking at Mid Penn Bancorp, Inc.'s Q3 2025 numbers gives you a crystal-clear map of where the capital is working: fee-based income is exploding up 33.2%, making those new wealth management pushes clear 'Stars,' while the core business reliably churns out cash with a 3.60% Net Interest Margin. But, you can't ignore the drag from that $11.8 million organic loan contraction or the integration headaches looming over the recent acquisitions, which clearly signal some 'Dogs' and 'Question Marks' needing immediate attention. See exactly how their portfolio lines up below.

Background of Mid Penn Bancorp, Inc. (MPB)

You're looking at Mid Penn Bancorp, Inc. (MPB), the parent company for Mid Penn Bank and MPB Financial Services, LLC. This is a community-focused bank that traces its roots back to 1902, serving communities across Pennsylvania, specifically in counties like Dauphin, Cumberland, York, Northumberland, and Lancaster. They offer standard banking services, including mortgage origination, treasury management, wealth management, trust services, and insurance products.

As of late 2025, Mid Penn Bancorp, Inc. has been showing some solid operational improvements. For the third quarter of 2025, they reported net income of $18.3 million, or $0.79 per diluted share, which beat analyst expectations. This performance was helped by a nice expansion in their net interest margin (NIM), which hit 3.60% in Q3 2025, up from 3.44% in the prior quarter. Honestly, that margin expansion is key, driven by better deposit costs following earlier Fed rate cuts.

The company's revenue growth over the last twelve months leading up to Q3 2025 was 13.34%, and net interest income for that quarter reached $53.6 million. They are also actively growing through acquisition; in September 2025, Mid Penn announced two key deals: one to merge with 1st Colonial Bancorp, valued near $101 million, and another to acquire Cumberland Advisors, which is expected to bring about $3.3 billion in new assets under management. These moves suggest a clear strategy to scale their regional footprint and service offerings.

Financially, you see strength in their book value, with book value per common share reaching $34.56 as of September 30, 2025. They maintain a shareholder-friendly stance, having just declared a quarterly cash dividend of $0.22 per share in late 2025, marking 60 consecutive quarterly dividends. Their trailing Price-to-Earnings ratio was around 12.12 in late 2025, which some analysts viewed as undervalued compared to the broader market.

Mid Penn Bancorp, Inc. (MPB) - BCG Matrix: Stars

You're looking at the engine room of Mid Penn Bancorp, Inc.'s current growth strategy, which is heavily reliant on acquisitions to drive market share in high-growth areas. These are the businesses that demand cash investment now to secure future dominance, fitting the classic Star profile.

The focus on fee-based income streams clearly signals a Star category initiative. For the three months ended September 30, 2025, noninterest income totaled exactly $8.2 million, which was a significant jump of 33.2% compared to the $6.1 million reported for the second quarter of 2025. This growth helps accelerate the shift toward fee-based revenue, which is a key strategic objective for Mid Penn Bancorp, Inc..

The pending acquisition of Cumberland Advisors is a direct play for market leadership in wealth management. This Registered Investment Advisory firm, based in Sarasota, Florida, is expected to contribute approximately $3.3 billion in new Assets Under Management (AUM) to the combined firm. Furthermore, Cumberland Advisors recorded year-to-date annualized revenue of $9.0 million as of the quarter ended June 30, 2025. The expectation is for this deal to close in the fourth quarter of 2025, and Mid Penn Bancorp, Inc. predicts it will be immediately earnings-accretive upon closing.

The regional expansion, solidified by the William Penn Bancorporation merger, is another key Star component, establishing a stronger footprint in a high-growth region. This all-stock transaction, valued at approximately $120 million, officially closed after business on April 30, 2025. This move extends the footprint directly into the attractive Greater Philadelphia Metro market and expands presence in Southern New Jersey.

The scale achieved post-William Penn is substantial, demonstrating a higher market share in the newly combined operating area. On a pro forma basis following the merger completion, Mid Penn Bancorp, Inc.'s total assets reached approximately $6.3 billion. This compares to Mid Penn Bancorp, Inc.'s reported total assets of approximately $5 billion before the merger.

Here's a quick look at the key financial metrics underpinning these growth drivers:

These Stars are consuming cash to fuel this expansion, but the goal is clear: maintain this high market share until the growth rates naturally moderate, at which point they transition into Cash Cows. You'll want to watch the integration costs versus the revenue uplift from these two major deals closely.

• Fee-based income grew 33.2% in Q3 2025.
• Cumberland Advisors adds $3.3 billion in AUM.
• William Penn acquisition closed in May 2025.
• Pro forma assets hit $6.3 billion post-merger.

Finance: draft 13-week cash view by Friday.

Mid Penn Bancorp, Inc. (MPB) - BCG Matrix: Cash Cows

You're looking at the engine room of Mid Penn Bancorp, Inc. (MPB), the business units that are mature, hold a commanding market share, and reliably pump cash into the rest of the organization. These operations don't need massive investment to grow; they just need maintenance to keep the cash flowing for dividends and strategic moves. Honestly, this is where the stability comes from.

The core banking operation is definitely showing its strength as a Cash Cow. Net Interest Margin (NIM) expanded to a strong 3.60% in Q3 2025, which is up 16 bps sequentially from 3.44% in Q2 2025. This reliable core banking profit generation is exactly what you want from a market leader in a mature segment. The bank's net interest income for the quarter hit $53.6 million.

Efficiency reflects this maturity and high market share position. The core efficiency ratio improved to 58.80% in Q3 2025, a significant drop from 62.56% in Q2 2025. This reflects a mature, highly efficient, and cash-generating operation, especially with the absence of Q2 merger costs. The result of this operational discipline was a net income of $18.3 million for the quarter, translating to a diluted EPS of $0.79.

This reliable performance directly funds shareholder returns. You saw a consistent capital return with the board declaring a 10% dividend increase to $0.22 per common share in Q3 2025, payable November 24, 2025. This marks the 60th consecutive quarterly dividend payment. This move is clearly funded by these stable, high-margin earnings.

Management has also been strategically pruning the funding structure to maximize cash flow, which is a classic Cash Cow move-investing only where it improves efficiency. The core deposit base saw a strategic exit of approximately $175 million in brokered CDs to lower funding costs. While total deposits decreased by $106.9 million in the quarter, this was a deliberate action to shed higher-cost funding. This focus on cost control helps maintain those strong margins.

Here's a quick look at how these key metrics stacked up in the third quarter of 2025:

The stability of these cash flows allows Mid Penn Bancorp, Inc. (MPB) to fund other parts of the portfolio, like funding the administrative costs and supporting strategic acquisitions. You can see the impact of this cash generation in their capital management:

• Book value per common share rose to $34.56 as of September 30, 2025.
• Tangible book value per common share increased to $27.96.
• Net charge-offs remained minimal at approximately $91K for the quarter.
• The Allowance for Credit Losses (ACL) to total loans stood at 0.77%.

The management is clearly focused on milking these gains passively while using the resulting capital to support growth elsewhere, such as the announced agreements to acquire 1st Colonial Bancorp and Cumberland Advisors. Finance: draft the cash flow impact analysis for the Cumberland Advisors deal by next Tuesday.

Mid Penn Bancorp, Inc. (MPB) - BCG Matrix: Dogs

You're looking at the parts of Mid Penn Bancorp, Inc. (MPB) that aren't driving significant growth or commanding a large market share in high-growth areas. These are the Dog positions-units that tie up capital without offering much return. Honestly, the strategy here is usually about minimizing exposure, not expensive turnarounds.

The data from the third quarter of 2025 clearly shows this dynamic in the core lending business. We saw an organic loan portfolio contraction of $\text{\$11.8 million}$ in Q3 2025, which translates to a $\text{1.0%}$ annualized decline. This signals low growth in the legacy lending market segment you are analyzing. For the first nine months of 2025, excluding acquisitions, the organic loan portfolio declined by $\text{\$53.3 million}$ from the year-end 2024 level.

This contraction isn't accidental; it reflects a deliberate strategic choice to manage risk and efficiency. Soft loan demand, particularly in areas like commercial real estate (CRE) construction, is dragging down internal growth rates. The primary driver for the loan book shrinkage was elevated commercial real estate payoffs that outpaced new originations. Back in Q2 2025, organic loan balances had already fallen by $\text{\$89.6 million}$ as demand softened. It's a clear signal that this part of the business isn't pulling its weight in terms of new volume.

Here's a quick look at the hard numbers illustrating this low-growth/low-share profile:

The deliberate reduction of funding sources also points to minimizing low-value activities. Mid Penn Bancorp, Inc. executed a planned exit of approximately $\text{\$175 million}$ in brokered certificates of deposit (CDs) during the quarter. This is a classic Dog move: shedding a low-margin funding source to deploy excess liquidity more effectively elsewhere, even realizing gains of $\text{\$279,000}$ on associated interest rate swaps in the process. You're actively reducing the footprint of this product.

When you look at revenue streams outside of the fee-based Star segments, the trend of low growth continues. For the first quarter of 2025, noninterest income totaled $\text{\$5.2 million}$, which was a decrease of $\text{\$910 thousand}$, or $\text{14.8%}$, compared to the fourth quarter of 2024's $\text{\$6.1 million}$. While total revenue in Q3 2025 reached $\text{\$62.25 million}$, the fact that management is actively paring back loan volume and high-cost deposits suggests that the non-interest income components that aren't tied to the fee-based 'Star' segments are likely smaller and slower-growing, fitting the Dog profile.

The characteristics defining these Dog units for Mid Penn Bancorp, Inc. include:

• Loan Portfolio Stagnation: $\text{Organic loan decline of $\text{\$11.8 million}$ in Q3 2025}$.
• Market Demand Weakness: $\text{CRE payoffs exceeding new originations}$.
• Funding Optimization: $\text{Planned exit of $\sim\text{\$175 million}$ in brokered CDs}$.
• Revenue Drag: $\text{Non-fee income components showing contraction or slow growth}$.

These units are candidates for divestiture or, in this case, strategic reduction to free up capital. Finance: draft 13-week cash view by Friday.

Mid Penn Bancorp, Inc. (MPB) - BCG Matrix: Question Marks

You're looking at the Question Marks quadrant, which is where Mid Penn Bancorp, Inc. (MPB) is placing significant capital and management focus on new ventures that operate in high-growth areas but haven't yet secured a dominant position. These are the growth bets that need heavy investment now to avoid becoming Dogs later. The primary example here is the strategic push into Southern New Jersey via the planned acquisition of 1st Colonial Bancorp, Inc.

The new, developing footprint in Southern New Jersey, targeted by the planned 1st Colonial Bancorp acquisition, is definitely a high-growth market with an unproven, low initial market share for Mid Penn Bancorp, Inc. This move is designed to expand the footprint into the greater Philadelphia metropolitan area. As of June 30, 2025, 1st Colonial held $877 million in total assets, $743 million in total deposits, and $640 million in total loans. The deal, valued at approximately $101 million in cash and stock, is expected to close late in the first quarter or early in the second quarter of 2026. If successful, the combined entity projects pro forma total assets of more than $7.2 billion, total deposits of approximately $6.2 billion, and gross loans of more than $5.4 billion, based on June 30, 2025, figures.

Here's a quick look at the scale of the asset base being integrated, which represents the investment required for this Question Mark:

Still, these high-growth plays consume cash and carry significant risk, which is reflected in other areas of the business. Nonperforming assets (NPAs) increased to $25.4 million at March 31, 2025, up from $22.7 million at the end of 2024. This Q1 2025 uptick was mainly due to adding three commercial loans totaling $7.0 million, only partially offset by $3.0 million in payoffs. This trend requires close monitoring in the context of rapid M&A growth. By the third quarter end, September 30, 2025, NPAs had risen further to $27.3 million, driven by foreclosures on two commercial real estate loans totaling $8.8 million in Q2 2025.

Integration risk from the William Penn acquisition, which closed in May 2025-following shareholder approval on April 2, 2025-requires significant management attention and capital to realize projected synergies. The William Penn deal was valued at approximately $127 million. The success of integrating this prior acquisition is key, as operational leverage is already showing: the Core Efficiency Ratio improved to 58.80% in Q3 2025 from 64.89% in Q3 2024, partly due to the William Penn integration. The William Penn acquisition contributed $431.4 million in loans and $619.8 million in deposits as of September 30, 2025.

The uncertainty in organic growth momentum is another factor placing pressure on the Question Mark category. While total loans grew to $4.8 billion as of September 30, 2025 (an 8.5% increase from year-end 2024), this was heavily bolstered by the acquisition. Excluding the William Penn acquisition loans of $431.4 million, the organic loan portfolio as of September 30, 2025, actually declined $53.3 million or 1.2% annualized from December 31, 2024. This organic decline, driven by high commercial real estate payoffs outpacing originations, suggests the need to quickly convert these high-growth, low-share ventures into Stars, or risk them consuming cash without payoff.

You need to watch the cash burn here. The strategy is clear:

• Invest heavily in the Southern New Jersey market to quickly build share.
• Ensure the integration of William Penn delivers the expected efficiency gains.
• Monitor the NPA trend, which moved from $22.7 million at year-end 2024 to $27.3 million by September 30, 2025.