Executive Summary

Adjusted EPS of $0.70 beat S&P Global consensus of $0.69 by $0.01; GAAP EPS was $0.22 as merger and non-recurring comp costs flowed through the quarter . Revenue (S&P definition) missed: $52.08M vs $54.25M consensus*.
Net interest margin expanded 7 bps QoQ to 3.44% and 32 bps YoY as loan yields rose and cost of funds fell to 2.44% aided by lower-cost deposits from William Penn .
Organic loans contracted 2.0% QoQ on heightened payoffs/refis of completed CRE construction; management guides to the low end of its 2025 loan growth target and mid-point for deposits .
Asset quality remained solid: NPLs/loans 0.38%, ACL/loans 0.78%, net charge-offs $0.8M (<0.02% of avg loans) .
Integration of William Penn (closed Apr 30) and Charis Insurance (May 12) is the near-term catalyst; dividend maintained at $0.20 and buybacks continued (48k shares in Q2) .

What Went Well and What Went Wrong

What Went Well

Adjusted EPS beat and core efficiency improved: $0.70 adjusted EPS vs $0.69 consensus; core efficiency ratio improved to 62.56% (62.79% in Q1, 63.65% in Q2’24) . CEO: “excluding those one-time expenses… non-GAAP earnings of $0.70 per share, slightly in excess of the consensus estimate” .
Margin expansion with lower funding costs: NIM rose to 3.44% QoQ; cost of funds decreased to 2.44%; loan yields climbed to 6.15% .
Funding and fee momentum: Deposits +$717.5M QoQ (incl. $621.3M from William Penn) with organic deposit growth of ~$96M; noninterest income +17% QoQ to $6.1M aided by wealth, BOLI, and other income .

What Went Wrong

GAAP profitability diluted by non-recurring expenses: noninterest expense jumped to $47.8M (from $30.6M) on $11.0M M&A costs and $2.0M equity comp acceleration; GAAP EPS fell to $0.22 .
Organic loan contraction and soft pipelines: organic loans declined $89.6M (2.0% QoQ annualized) amid CRE construction payoffs/refis and soft demand tied to tariffs, rates, and macro sentiment; management now expects low end of loan growth target .
Asset quality mixed: NPA/Assets ticked to 0.44% (0.46% in Q1, 0.19% in Q2’24) with $2.6M of non-accruals from William Penn; provision rose to $2.3M, largely for reserves on acquired non‑PCD loans .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Net Interest Income ($M)	38.77	42.51	48.21
Noninterest Income ($M)	5.33	5.24	6.14
Provision for Credit Losses ($M)	1.60	0.30	2.27
Noninterest Expense ($M)	28.22	30.64	47.80
Net Income ($M)	11.77	13.74	4.76
Diluted EPS (GAAP) ($)	0.71	0.71	0.22
Adjusted EPS ($)	0.68	0.72	0.70
Tax-Equivalent NIM (%)	3.12%	3.37%	3.44%
Cost of Funds (%)	2.74%	2.48%	2.44%
Loan Yield (%)	6.11%	6.05%	6.15%
Core Efficiency Ratio (%)	63.65%	62.79%	62.56%

Balance sheet and per-share:

Metric	Q2 2024	Q1 2025	Q2 2025
Ending Loans ($B)	$4.36	$4.49	$4.83
Ending Deposits ($B)	$4.50	$4.73	$5.45
Book Value/Share ($)	33.76	34.50	33.85
Tangible Book/Share ($)	25.75	27.58	27.22
Dividend/Share ($)	0.20	0.20	0.20

Asset quality KPIs:

Metric	Q2 2024	Q1 2025	Q2 2025
NPLs/Total Loans (%)	0.23	0.54	0.38
NPA/Assets (%)	0.19	0.46	0.44
ACL/Loans (%)	0.81	0.80	0.78
Net Charge-offs ($M)	~0.01	~0.00	0.81
Provision Commentary	CRE/construction stable	Loss factor increases	$2.3M reserve on acquired non‑PCD loans

Notes: Noninterest expense in Q2 2025 includes $11.0M M&A and $2.0M equity comp acceleration; NIM and funding costs benefited from lower-cost deposits from William Penn .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Loan Growth	FY 2025	Original target range (not quantified in releases)	Expect bottom end of original range by year-end	Lowered vs prior aspirations
Deposit Growth	FY 2025	Original target range (not quantified in releases)	Expect mid-point of original range by year-end	Maintained to mid-point
Dividend	Q3 2025	$0.20/quarter	$0.20 per share payable Aug 25, 2025	Maintained
Cost Management	Ongoing	Efficiency initiatives	Continue evaluating cost reduction opportunities	Maintained focus

Management did not provide formal numeric guidance ranges in the Q2 materials; commentary reflects directional updates .

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available in our document search window; themes reflect management’s prepared remarks in press releases and 8-Ks.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Net Interest Margin & Funding	NIM up to 3.21% in Q4 on lower deposit costs; further to 3.37% in Q1 as costs fell with Fed cuts	NIM to 3.44%; cost of funds 2.44%, aided by lower-cost deposits from William Penn	Improving
Loan Growth	Restrained growth strategy; +$48M in Q1 (4.4% ann.)	Organic loans −$89.6M (2% ann.), pipelines soft; expect low end of FY target	Softer near-term
Deposits	Stable to modest growth in Q1; pricing headwinds	Deposits +$718M QoQ (+$96M organic); expect mid-point of FY target	Strong with M&A; organic steady
M&A Integration	Announced William Penn close expected Q2	Closed Apr 30; lower-cost deposits, added loans; Charis Insurance closed May 12	Integration underway
Operating Efficiency	Core efficiency 62.8% in Q1; improving	62.56% despite elevated M&A costs (excluded)	Sustained improvement
Asset Quality	NPA/Assets 0.41–0.46% in late 2024–Q1 2025	NPA/Assets 0.44%; $2.3M provision for acquired non‑PCD loans	Stable overall

Management Commentary

CEO on earnings quality and beat: “excluding those one-time expenses establishes non-GAAP earnings of $0.70 per share, slightly in excess of the consensus estimate of $0.69 per share.”
On loan demand and macro: “we have experienced the softest loan demand we have seen in many years… attribute that soft demand to concerns over tariffs, interest rates, and the overall state of the economy.”
On deposits and profitability drivers: “improvements in net interest margin, cost of deposits, yields on loans, noninterest income and efficiency ratio… leading us to the consensus beat.”

Q&A Highlights

No Q2 2025 earnings call transcript was available as of our search; no Q&A to summarize. Analysis relies on the 8‑K Item 2.02 and press releases filed/published July 23, 2025 .

Estimates Context

Q2 2025 vs S&P Global consensus:

Metric	Q2 2024	Q1 2025	Q2 2025
Primary EPS (Est)	0.6033*	0.63*	0.69*
Primary EPS (Actual)	0.68*	0.72*	0.70*
Surprise	+0.0767*	+0.09*	+0.01*
Revenue ($M, Est)	41.91*	47.10*	54.25*
Revenue ($M, Actual)	42.49*	47.45*	52.08*
Surprise ($M)	+0.58*	+0.35*	−2.17*

Values retrieved from S&P Global.*

Interpretation: Adjusted/Primary EPS beat by $0.01 in Q2 2025 even as revenue (S&P definition) missed by ~$2.2M. Prior two comparable quarters also showed EPS beats and modest revenue beats.*

Key Takeaways for Investors

Adjusted earnings resilience: Despite heavy M&A and one-time equity comp costs, adjusted EPS beat by $0.01; the core efficiency ratio improved and should benefit further post-integration .
Positive NIM trajectory: Margin expanded again on falling funding costs and higher loan yields; continued deposit mix improvements from William Penn should support NIM near-term .
Organic growth lagging: Loan pipelines were soft and organic balances declined; management now points to the low end of FY loan growth—watch for signs of demand recovery and refi runoff abating .
Asset quality steady through integration: NPLs and NPA ratios remain low; provisioning elevated mainly for acquired non‑PCD loans—limited credit deterioration evidenced this quarter .
Revenue mix and fees: Noninterest income improved with wealth and BOLI; new Philadelphia presence and insurance expansion (Charis) should broaden fee opportunities .
Capital returns intact: Dividend maintained at $0.20; buybacks continued with $3.6M remaining under authorization—supports per-share metrics during integration .
Trading implications: Near-term stock drivers include synergy realization, sustained NIM expansion, and evidence of organic loan growth stabilization; a revenue miss vs S&P in Q2 suggests topline sensitivity even as EPS held up on core performance.*

Appendix: Source Documents

Q2 2025 earnings press release (July 23, 2025) .
Form 8‑K Item 2.02 (July 23, 2025) with Exhibit 99.1 press release .
Q1 2025 earnings press release (April 23, 2025) for trend analysis .
Q4 2024 earnings press release (January 22, 2025) for trend analysis .
William Penn acquisition completion release (May 1, 2025) .

MID PENN BANCORP INC (MPB)·Q2 2025 Earnings Summary