Mid Penn Bancorp, Inc. (MPB): Business Model Canvas [Dec-2025 Updated]

You're looking at Mid Penn Bancorp, Inc. (MPB) and wondering how they are navigating the current landscape to achieve real scale, right? Honestly, their playbook is clear: aggressive acquisition. They just closed the William Penn Bancorporation deal in April 2025 and announced the 1st Colonial Bancorp purchase in September 2025, pushing their pro forma assets toward $6.3 billion. This isn't just about size; it's about stitching together a larger community footprint while maintaining service, all fueled by Q1 2025 Net Interest Income of $42.5 million. We've mapped out the nine essential components of this growth-by-acquisition model-from their key partnerships to the costs they are taking on-so you can see the precise mechanics behind their strategy. Check out the full Business Model Canvas below to see exactly how they plan to make this expansion work.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Key Partnerships

You're looking at how Mid Penn Bancorp, Inc. (MPB) builds its foundation through strategic alliances, which lately has meant a heavy focus on inorganic growth through acquisitions. These partnerships are key to expanding footprint and service lines, so let's look at the concrete numbers behind these moves as of late 2025.

Acquisition-Driven Expansion

The partnership strategy for Mid Penn Bancorp, Inc. is heavily weighted toward acquiring complementary institutions to rapidly scale assets and geographic reach. This is evident in the two major banking deals completed or announced in 2025.

The William Penn Bancorporation acquisition was finalized on April 30, 2025. This all-stock transaction was valued at approximately $120 million. The immediate result of this merger was creating a combined entity with total assets of approximately $6.3 billion. This deal specifically helped extend MPB's footprint into the Greater Philadelphia and Southern New Jersey regions.

Following that, Mid Penn Bancorp announced the pending acquisition of 1st Colonial Bancorp in September 2025. This deal is valued at approximately $101 million, using a mix of cash and stock consideration. If this merger closes as expected in early 2026, the pro forma total assets for the combined company will exceed $7.2 billion, with total deposits around $6.2 billion and gross loans over $5.4 billion, based on June 30, 2025 data.

To bolster the wealth management segment, Mid Penn Bancorp agreed to acquire Cumberland Advisors, a registered investment advisory firm based in Sarasota, Florida. This deal, expected to close in the fourth quarter of 2025, is projected to add about $3.3 billion in Assets Under Management (AUM) to the firm. Cumberland Advisors recorded year-to-date annualized revenue of $9.0 million as of June 30, 2025. Before this wealth expansion, Mid Penn had about $6.0 billion in total assets and operated 59 retail locations.

Here's a quick summary of the major 2025 transaction metrics:

Liquidity and Operational Support

Mid Penn Bancorp, Inc. relies on established relationships with wholesale funding sources to manage liquidity and secure operations. These are not typically one-time deals but ongoing facilities that support the balance sheet.

• Federal Home Loan Bank (FHLB) of Pittsburgh: Mid Penn Bancorp obtains letters of credit from the FHLB to secure certain public deposits. Historical data shows FHLB letter of credit commitments totaled $263,800,000 as of March 31, 2021. Advances from the FHLB are collateralized by MPB's FHLB stock and a blanket lien on selected loan receivables.
• Correspondent Banks: These relationships are used for short-term borrowings, such as federal funds purchased, which typically mature in one business day and reprice daily.

Community Investment and Education

The commitment to community banking involves active partnerships to deliver financial knowledge. Mid Penn Bank launched its comprehensive financial literacy education initiative, MPB Classroom, in April 2025.

This initiative is supported by a full-time community educator dedicated to building partnerships and facilitating lessons. The program is already active in various settings across Pennsylvania and New Jersey. While the latest full-year data is from 2022, it shows the scale of their commitment:

• Donations to over 945 organizations through fundraising, sponsorships, and community development efforts in 2022.
• Total employee volunteer hours reached 10,322 hours in 2022.
• Specific program support includes partnerships with organizations like Tri-County Housing Development Corporation for first-time homebuyer programs and utilizing educational tools such as Banzai, Inc..

Finance: draft pro forma liquidity impact analysis for the 1st Colonial close by next Wednesday.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Key Activities

You're looking at the core engine of Mid Penn Bancorp, Inc. as of late 2025, which is heavily focused on integrating recent growth moves while managing its balance sheet tightly. Here's the quick math on what they're actively doing.

Core commercial and consumer lending operations

The lending book is substantial, though it saw a slight dip in the most recent quarter due to strategic loan management. As of September 30, 2025, total loans stood at $4.8 billion. This figure represented an 8.5% increase overall up to that date, even with a 1.0% annualized decline in Q3 2025 driven by payoffs in commercial real estate. You should note that asset quality remains a focus; the allowance for credit losses as a percentage of loans, net of unearned income, was 0.77% at September 30, 2025. Net charge-offs for that quarter were minimal, around $91K, which is less than 0.002% of average loans. If the pending 1st Colonial acquisition closes, the pro forma gross loan total is projected to exceed $5.4 billion, based on June 30, 2025 figures.

M&A integration and synergy realization across acquired entities

Mid Penn Bancorp, Inc. has been busy building scale through acquisitions, which is a major key activity right now. They completed the acquisition of William Penn Bancorporation in April 2025, an all-stock deal valued at approximately $120 million. Post-William Penn merger, consolidated assets totaled about $6.3 billion. Then, in November 2025, they announced two more deals: 1st Colonial Bancorp, Inc. for about $101 million, and Cumberland Advisors, Inc. The 1st Colonial deal is expected to push combined assets past $7.2 billion. The Cumberland Advisors acquisition is specifically targeted at boosting fee income, as Cumberland is expected to bring approximately $3.3 billion in new Assets Under Management (AUM) to the combined company. Cumberland's year-to-date annualized revenue as of June 30, 2025, was $9.0 million, and the deal is expected to add about $9 million in annualized fee revenue. The company previously projected asset growth of 11% to 13% in 2026, which these deals help support.

Deposit gathering and liability management to control cost of funds

Managing the liability side of the balance sheet is clearly a priority, especially controlling the cost of funds. Total deposits as of September 30, 2025, were $5.34 billion. While total deposits rose 13.9% year-to-date, Q3 2025 saw a strategic decrease of 7.8% annualized as the bank exited roughly $175 million in brokered Certificates of Deposit (CDs). This move was aimed at lowering funding costs. The result of this disciplined approach, combined with loan yield improvements, was a Net Interest Margin (NIM) expansion to 3.60% in Q3 2025, up from 3.44% in Q2 2025 and 3.13% in Q3 2024. If the 1st Colonial deal closes, pro forma deposits are projected around $6.2 billion based on June 30, 2025 figures.

Here are the key financial metrics reflecting these activities as of late 2025:

Wealth management, trust, and insurance service delivery

Expanding the fee-based services is clearly a strategic push, evidenced by the Cumberland Advisors agreement. This acquisition is set to add approximately $3.3 billion in AUM. Mid Penn Bancorp, Inc. operates through MPB Financial Services, LLC for these specialized offerings. To be fair, in Q4 2024, the fiduciary and wealth management income saw a decrease of $379 thousand, but the Cumberland deal is a clear move to reverse that trend with significant AUM growth.

Maintaining regulatory compliance and strong capital ratios

You can see the capital base strengthening directly from the retained earnings and the M&A activity. Shareholders' equity grew to $796.3 million as of September 30, 2025, a jump from $655.0 million at the end of 2024. Retained earnings specifically increased by 7.2% from June 30, 2025, to reach $205.3 million by September 30, 2025. Critically, regulatory capital ratios for both Mid Penn Bancorp and the Bank indicate levels in excess of the regulatory minimums, ensuring they are considered 'well capitalized' as of September 30, 2025. Operational efficiency, a key component of capital management, improved as the core efficiency ratio fell to 58.80% in Q3 2025.

The company declared a quarterly dividend of $0.22, a 10% increase, during Q3 2025.

• Tangible book value per common share reached $27.96 in Q3 2025.
• Total nonperforming assets were $27.3 million at September 30, 2025.
• Loans past due 30 days or more stood at 0.68% of total loans.

Finance: draft 13-week cash view by Friday.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Key Resources

You're looking at the core assets that power Mid Penn Bancorp, Inc. as of late 2025, right after integrating William Penn Bancorporation. These are the tangible and intangible foundations supporting their operations and growth strategy.

The balance sheet strength is a primary resource. Following the April 30, 2025, acquisition, the consolidated assets were projected to total approximately $6.3 billion. More recently, as of September 30, 2025, the reported Total Assets stood at $6.27 billion.

Equity capital provides the stability for these operations. As of the third quarter close on September 30, 2025, the Total Bank Equity Capital was reported at $770,973 thousand, or $770.973 million.

The physical footprint is crucial for community banking. While the pro forma expectation post-merger was for over 65 locations, the latest filing shows a concrete number for the network.

Here is a snapshot of the physical and capital base as of the end of Q3 2025:

Beyond the balance sheet, Mid Penn Bancorp, Inc. relies heavily on its human capital and infrastructure. These are the non-financial assets that drive service delivery and relationship management. You can't run a community bank without deep local expertise, so this is definitely a key area.

The human capital component includes:

• Experienced commercial loan officers and senior leadership team.
• The CEO, Rory G. Ritrievi, remains in place guiding the integration and strategy.

The operational backbone is supported by technology:

• Core banking technology and digital platforms.
• The efficiency ratio improvement to 58.80% in Q3 2025 suggests effective use of these platforms alongside cost management.

Finance: draft 13-week cash view by Friday.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Value Propositions

You're looking at the core value Mid Penn Bancorp, Inc. (MPB) offers its stakeholders as of late 2025. It's built on a foundation of comprehensive financial services delivered with a local touch, backed by recent strategic growth.

Full-service financial institution offering commercial, retail, and wealth solutions. Mid Penn Bancorp, Inc. operates through its primary subsidiary, Mid Penn Bank, which functions as a full-service commercial bank. Furthermore, the value proposition includes specialized services via MPB Financial Services, LLC, which handles investment strategies, insurance, and planning for individuals, families, and businesses. This dual structure means you get both core banking and specialized wealth management under one umbrella. For instance, the third quarter of 2025 saw net income available to common shareholders reach $18.3 million, or $0.79 per diluted common share, showing strong operational performance supporting these offerings.

Deep community banking focus with local decision-making. The emphasis on community banking is a consistent theme, especially as Mid Penn Bancorp, Inc. integrates new acquisitions. The stated goal in recent merger announcements is to join institutions with a deep understanding of customer needs and a shared commitment to their communities. This translates to local decision-making, which is key for relationship banking.

Expanding geographic footprint into Greater Philadelphia and Southern New Jersey. Mid Penn Bancorp, Inc. has been actively growing its physical presence through strategic mergers. The pending acquisition of 1st Colonial Bancorp, Inc., announced in September 2025, is a clear example, specifically targeting further expansion into the greater Philadelphia metropolitan area and Southern New Jersey. Pro forma for this deal, the combined entity is expected to have more than 60 total branch locations across its footprint and total assets exceeding $7.2 billion, based on June 30, 2025, data. This follows the May 2025 completion of the William Penn Bancorporation acquisition, which also extended the footprint into these attractive markets, resulting in consolidated assets of approximately $6.3 billion at that time.

Here's a quick look at the scale supporting the value proposition post-recent activity:

Consistent capital return via a $0.20 per share quarterly dividend. Mid Penn Bancorp, Inc. maintains a strong commitment to shareholders. While the prompt mentions the prior level, the most recent action shows an increase. Following the Q3 2025 results, the board declared a quarterly cash dividend of $0.22 per common share, payable November 24, 2025. This marked a 10% increase from the previous dividend, continuing an impressive track record of maintaining dividend payments for 15 consecutive years. The current annual dividend based on this rate is $0.88, yielding approximately 2.93% as of early December 2025.

Personalized service and relationship-building for long-term customers. The value proposition is reinforced by integrating leadership from acquired entities to maintain local expertise. For example, the CEO of 1st Colonial is set to become the Senior Executive Vice President, Greater Philadelphia Metro Area Market President, ensuring continuity in understanding local client needs. This focus is about delivering unwavering service while expanding the product array.

The core service elements Mid Penn Bancorp, Inc. emphasizes include:

• Offering a comprehensive portfolio of financial products.
• Maintaining strong regulatory capital ratios above minimums.
• Focusing on improved net interest margin, which rose to 3.60% in Q3 2025.
• Delivering specialized investment strategies through an LLC.
• Ensuring local market leadership remains in place post-merger.

Finance: draft 13-week cash view by Friday.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Customer Relationships

Mid Penn Bancorp, Inc. focuses its customer relationships on a model that blends dedicated, high-touch service with modern digital access, particularly emphasizing its commercial client base.

The dedicated relationship management model is central, especially for commercial clients, where local lenders and cash management professionals work to offer tailored solutions like commercial loans, SBA loans, and agricultural loans. This local decision-making is a core tenet, supporting the bank's commitment to regional economic development. The bank's total assets stood at $6.27 billion as of September 30, 2025, with total deposits at $5.34 billion. The net interest margin expanded to 3.60% in the third quarter of 2025, reflecting successful execution in managing client financial relationships and pricing.

High-touch, personalized service is delivered through a physical network of financial centers. Before the William Penn Bancorporation merger closed in May 2025, Mid Penn Bank operated 45 branches across Pennsylvania and central New Jersey. Following that merger, the network grew to 57 branches. Furthermore, the bank received approval to open its first full-service financial center in Delaware County, Wayne, PA, scheduled for February 2025. The core efficiency ratio improved to 58.80% in the third quarter of 2025, suggesting operational effectiveness in supporting this service model.

Self-service options are provided through state-of-the-art online and mobile banking platforms, allowing customers to conduct traditional banking and account servicing remotely. The bank also offers wealth management, trust services, and insurance products accessible through these channels or specialized advisors. The bank reported total deposits of $4.7 billion at March 31, 2025.

The commitment to the community is quantified through direct investment and employee engagement, which reinforces local relationships.

Community involvement and corporate citizenship initiatives are a tangible part of the relationship strategy:

• Volunteer Hours: More than 13,926 hours spent making a difference.
• Organizations Served: More than 889 local organizations were served through donations and volunteer efforts.
• Prostate Cancer Research Goal: A four-year goal to raise $1.1 million through the No Shave November Campaign.
• 2023 Funds Raised: $341,000 raised in November 2023 for the cancer research goal.

The strategic agreement to acquire 1st Colonial Bancorp, Inc. is intended to bring greater financial capacity for continued investment in the communities. Finance: draft 13-week cash view by Friday.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Channels

You're looking at how Mid Penn Bancorp, Inc. (MPB) connects its value proposition to its customers right now, post-merger. It's a mix of the physical presence they've built and the digital tools they offer.

The physical footprint expanded significantly with the acquisition of William Penn Bancorporation, which closed on April 30, 2025. This move was designed to deepen their presence in the Greater Philadelphia and Southern New Jersey markets.

Here's a look at the scale of their physical reach following the integration:

The physical network is supported by direct, relationship-driven access points for more complex services. These are crucial for their commercial and high-net-worth clients.

• Commercial loan officers serving business clients across the expanded territory.
• Dedicated wealth management advisors providing specialized investment strategies, insurance, and planning services.

For everyday banking, Mid Penn Bancorp, Inc. relies on digital access, which is standard for any modern regional bank. They offer a robust suite of tools for account management and transactions.

You can expect the following digital and convenience channels to be fully operational:

• Online banking platform for 24/7 account management and transactions.
• Mobile banking application offering secure access and features like bill pay and Zelle integration.
• Automated teller services for cash access.

To be fair, while the branch count is clear, the exact number of active digital users or the size of the ATM fleet isn't something they break out in their immediate post-merger press releases. Still, the combined asset base of $6.3 billion definitely supports a significant infrastructure.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Customer Segments

Small to mid-sized businesses are a core focus, receiving commercial loans, cash management services, and SBA loans. As of the first quarter of 2025, Mid Penn Bancorp, Inc. had average loans totaling $4.5 billion. The overall deposit base, which funds these activities, stood at an average of $4.7 billion for the first quarter of 2025. The bank aims to be a strategic partner for these clients, offering guidance beyond standard lending.

For individuals and families, Mid Penn Bancorp, Inc. provides retail deposits, mortgages, and consumer loans. The total deposits for the company reached $4.7 billion at the end of the first quarter of 2025. The loan portfolio includes a wide array of mortgage products, such as fixed-rate, adjustable-rate, FHA, VA, and jumbo mortgages, alongside Home Equity Loans and Lines of Credit (HELOCs). The bank reported net income available to common shareholders of $18.3 million for the third quarter of 2025.

The segment covering real estate investors and developers is served through Commercial Real Estate Loans, financing the acquisition, development, or refinancing of commercial properties. Following the acquisition of William Penn Bancorporation in April 2025, the consolidated assets of the combined company totaled approximately $6.3 billion. Organic loan balances actually fell by $89.6 million in the second quarter of 2025, showing a softening in new loan demand across the board.

High-net-worth individuals are targeted for wealth and trust services through MPB Financial Services, LLC. Mid Penn Bancorp, Inc. has agreed to acquire Cumberland Advisors, which is expected to bring approximately $3.3 billion in new assets under management to the combined company. This strategic move is projected to add about $9 million in annualized fee revenue. The bank offers services including brokerage, retirement planning, and managed portfolios to this group.

Here's a quick look at the scale of the balance sheet supporting these segments as of mid-2025:

The services tailored for these distinct groups include specific offerings:

• Small to mid-sized businesses: Commercial loans, SBA loans, and cash management.
• Individuals and families: Fixed-rate mortgages, HELOCs, and consumer loans.
• High-net-worth individuals: Trust services and managed investment portfolios.

The second quarter of 2025 saw net income of $4.8 million, or $0.22 per share, though this improved significantly to $18.3 million, or $0.79 per diluted share, in the third quarter of 2025. The William Penn merger contributed to a deposit jump of 21.2% from a year ago. The bank is defintely focused on integrating M&A to bolster its deposit franchise.

Finance: draft Q3 2025 segment revenue breakdown by Friday.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Cost Structure

You're looking at the expense side of Mid Penn Bancorp, Inc.'s operations as of early 2025. For a bank, the cost structure is heavily weighted toward funding costs and the people and places needed to run the branches and service the loans. Here's the quick math on the key cost drivers from the first quarter of 2025.

The cost of funds, which is essentially the interest Mid Penn Bancorp, Inc. pays out on deposits and borrowings, saw a favorable trend. For the quarter ended March 31, 2025, the cost of funds was 2.48%. This sequential decrease from 2.66% in Q4 2024 was due to lowering rates paid on interest-bearing deposit accounts following Federal Reserve rate cuts in late 2024. Still, you have to watch deposit competition; the average cost of deposits was 2.45% for Q1 2025.

Total noninterest expense for the three months ended March 31, 2025, was $30.6 million, which was an increase of $2.1 million, or 7.4%, compared to the first quarter of 2024. Within that, salaries and employee benefits saw a sequential decrease of $638 thousand from the fourth quarter of 2024, largely because year-end bonus incentives were lower.

Merger activity is a definite cost factor. The integration of William Penn Bank, which closed near the end of April 2025, contributed to expenses. Merger and acquisition expenses increased by $314 thousand in Q1 2025 compared to the prior quarter. Similarly, occupancy expenses, which cover the branch network and equipment, rose by $292 thousand sequentially.

You always need to account for potential loan losses. The provision for credit losses for the first quarter of 2025 was $0.30 million.

Here is a breakdown of those key cost elements from the Q1 2025 period:

The components driving the change in noninterest expense included specific line items:

• Salaries and employee benefits: Decreased by $638 thousand quarter-over-quarter.
• Merger and acquisition expenses: Increased by $314 thousand quarter-over-quarter.
• Occupancy expenses: Increased by $292 thousand quarter-over-quarter.
• Software licensing: Increased by $454 thousand quarter-over-quarter.

The overall efficiency focus is evident; the core efficiency ratio improved to 62.8% in Q1 2025 from 63.9% in Q4 2024, showing better operating leverage despite the integration costs. Finance: draft 13-week cash view by Friday.

Mid Penn Bancorp, Inc. (MPB) - Canvas Business Model: Revenue Streams

The revenue streams for Mid Penn Bancorp, Inc. are fundamentally driven by traditional banking activities, centered on the spread between interest earned on assets and interest paid on liabilities, supplemented by various fee-based services.

Net Interest Income from loan and investment portfolios forms the core of Mid Penn Bancorp, Inc.'s earnings power. For the first quarter of 2025, this figure stood at $42.5 million. This represented a significant year-over-year increase of 16.6% compared to the first quarter of 2024. The improvement was supported by a strategic focus on loan growth and a decrease in the cost of funds, which dropped to 2.48% sequentially.

Noninterest Income provides a secondary, yet important, stream. For the first quarter of 2025, Mid Penn Bancorp, Inc. reported noninterest income totaling $5.24 million. This amount was actually a decrease, falling 10.2% year-over-year and 14.8% quarter-over-quarter. You should note that this decline was primarily attributed to lower benefits related to Bank Owned Life Insurance (BOLI) and changes in insurance commissions.

The components contributing to this noninterest income, which include service charges, fees, and insurance commissions, are detailed below:

• Noninterest Income (Q1 2025): $5.24 million
• Fee revenue from wealth management and trust services is a component of this total.
• Insurance commissions are a recognized component, though they were lower in Q1 2025.
• Loan level swap fees are also part of the fee income structure.

The performance of the loan portfolio is critical to the Net Interest Income stream. The yield on loans was 6.05% in the first quarter of 2025, which demonstrated pricing discipline even with Federal Reserve cuts. This yield contributed to a $3.3 million increase in interest income on loans compared to the first quarter of 2024.

Here's a quick look at the key income components for Q1 2025:

For context on the subsequent quarter, Mid Penn Bancorp, Inc. reported total revenue of US$52.1m for the second quarter of 2025, which was up 23% from the second quarter of 2024.

The bank also generates income from its investment securities portfolio. Income on investment securities saw a $420 thousand increase in the first quarter of 2025 compared to the same period in 2024. This diversification helps stabilize the overall interest income profile.