Executive Summary

Q4 2024 EPS was $0.72, a slight beat versus the company-cited consensus of $0.71; net income available to common shareholders was $13.2M. Net interest margin expanded to 3.21% and cost of funds fell to 2.66%, supported by lower short-term borrowings and deposit rate actions following Fed cuts .
Deposits declined modestly by $16.8M QoQ to $4.69B, driven by lower noninterest-bearing and time deposits, partially offset by higher interest-bearing transaction balances; loans ended at $4.443B (+$11.4M QoQ) amid a restrained growth strategy .
Asset quality remained generally solid but nonperforming assets rose to $22.7M (NPLs/loans 0.51%); delinquencies improved to 0.52% of loans and net charge-offs stayed low (0.037% of average loans) .
Strategic actions and potential stock catalysts: announced all-stock merger with William Penn (expected close H1 2025), completed a $70M equity offering at $29.50, and declared the 57th consecutive quarterly dividend of $0.20 per share .

What Went Well and What Went Wrong

What Went Well

Net interest margin expanded QoQ to 3.21% (from 3.13%) while cost of funds declined to 2.66%, aided by a $112.1M reduction in short-term and overnight borrowings and lower deposit rates after Fed cuts .
Noninterest income increased 18.8% QoQ to $6.1M, driven by higher BOLI benefits (+$615k), loan-level swap fees (+$305k), and insurance commissions (+$230k) .
Efficiency ratio improved to 63.94% from 64.89% QoQ, reflecting higher net interest income and noninterest income despite slightly higher expenses .
CEO tone positive: “we delivered yet another solid performance… Strong asset quality… improvement in net interest margin… good performance in non-interest income and responsible non-interest expense management… we not only beat consensus estimates for the quarter, but also for the full year” .

What Went Wrong

Deposits decreased $16.8M QoQ (annualized −1.4%), with noninterest-bearing accounts down $32.8M and time deposits down $15.0M; mix shift pressures deposit beta management .
Nonperforming assets rose to $22.7M, with additions of two commercial loans ($3.0M) and two CRE loans ($2.3M) to nonaccrual; NPLs/loans increased to 0.51% .
Noninterest expense increased $955k QoQ to $30.9M, driven by salaries and benefits (+$791k) and higher charitable contributions (+$843k) despite lower legal/professional fees and shares tax .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Diluted EPS ($)	0.73	0.74	0.72
Net Interest Income ($MM)	37.000	40.169	41.280
Noninterest Income ($MM)	5.117	5.178	6.149
Efficiency Ratio (%)	66.24	64.89	63.94
Tax-Equivalent NIM (%)	2.98	3.13	3.21
Cost of Funds (%)	2.48	2.77	2.66

Balance sheet snapshot (period-end balances):

Metric ($USD Billions)	Q4 2023	Q3 2024	Q4 2024
Loans, net of unearned income	$4.253	$4.432	$4.443
Total Deposits	$4.346	$4.707	$4.690
Total Assets	$5.291	$5.527	$5.470
Shareholders’ Equity	$0.542	$0.573	$0.655

Key KPIs:

KPI	Q4 2023	Q3 2024	Q4 2024
NPLs/Total Loans (%)	0.33	0.39	0.51
NPAs/Total Assets (%)	0.27	0.32	0.41
Net Charge-offs to Avg Loans (%)	0.004	0.031	0.037
ACL on Loans to Total Loans (%)	0.80	0.80	0.80
ROAA (%)	0.92	0.89	0.96
ROAE (%)	8.93	8.66	8.44

Estimate comparison:

Metric	Consensus (Q4 2024)	Actual (Q4 2024)	Surprise
EPS ($)	0.71 (company-cited)	0.72	+$0.01; beat
Revenue	N/A (S&P Global estimates unavailable due to access limits)	N/A	N/A

Note: We attempted to retrieve S&P Global consensus via GetEstimates but access limits prevented data return; estimates for EPS shown are from the company-cited consensus in the 8-K/press release .

Non-GAAP adjustments:

Adjusted EPS (ex BOLI death benefit and M&A costs): $0.71 in Q4 2024 vs $0.75 in Q3 2024 .
Efficiency ratio is non-GAAP; see reconciliation in the release .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share ($)	Q4 2024 (paid Feb 18, 2025)	$0.20 (Q3 2024)	$0.20 declared	Maintained
M&A: William Penn Bancorporation	Expected close H1 2025	Announced Oct 31, 2024; ~$127M based on $31.88 MPB price	Expected close H1 2025	Maintained timeline
Equity offering	Nov 1–4, 2024	N/A	Priced $70M at $29.50; completed Nov 4	New capital raised
Buyback program	Through Apr 24, 2025	Reauthorized Apr 24, 2024; $5M remaining	~$5M remaining at 12/31/24	Maintained

Management did not issue formal quantitative guidance on revenue, margins, OpEx, OI&E, or tax rate in these materials .

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript was not available in our document set for MPB during the Q4 reporting window; themes below reflect prepared remarks in earnings materials and prior-quarter press releases.

Topic	Q2 2024 (Jul 24)	Q3 2024 (Oct 23)	Q4 2024 (Jan 22)	Trend
Net interest margin	First QoQ NIM growth since curve inversion; NIM 3.12%	NIM 3.13%, slight QoQ increase	NIM 3.21%, clear expansion	Improving
Deposit strategy/pricing	Strong core deposit growth; cost of funds ~2.74%	Continued growth; cost of funds 2.77% amid competition	Cost of funds fell to 2.66% post Fed cuts; mix shifts	Improving (cost) but mix headwinds
Asset quality	NPAs down to $10.4M; very low NCOs	NPAs up to $17.7M; single commercial property added to nonaccrual	NPAs up to $22.7M; added CRE/commercial nonaccruals; delinquencies lower	Mixed (watch NPAs)
Expense discipline/efficiency	OpEx down QoQ; efficiency 63.65%	OpEx up QoQ; efficiency 64.89%	Efficiency 63.94%; OpEx higher but revenue stronger	Improving
Noninterest income levers	Mortgage banking up; other income elevated	Other income down (BOLI timing)	Other income up; BOLI, swaps, insurance	Mixed, Q4 strong
Capital actions	Emphasis on organic growth; repurchase program active	Dividend continuity; buyback $5M remaining	$70M equity raise; dividend; M&A announced	Accretive capital build
M&A footprint	N/A	Insurance business acquisition contributed modestly	Announced William Penn merger expanding Philly/NJ presence	Strategic expansion

Management Commentary

“After three solid quarters… Strong asset quality, restrained balance sheet growth… improvement in net interest margin, good performance in non-interest income and responsible non-interest expense management… we not only beat consensus estimates for the quarter, but also for the full year” — Rory G. Ritrievi, Chair, President & CEO .
Strategy reiterated in prior quarter: “restrained loan growth; robust core deposit growth; strong asset quality; restraint on operating expenses; and building on tangible book value” .
Q2 tone on margin stabilization: “The combination of restrained loan growth and significant core deposit growth helped us to… grow our net interest margin within the quarter” .

Q&A Highlights

A Q4 2024 earnings call transcript for MPB was not available in our document set; no Q&A highlights or guidance clarifications could be extracted from a call transcript.

Estimates Context

EPS beat: Actual $0.72 vs company-cited consensus $0.71; a modest positive surprise, consistent with management’s statement that the quarter beat consensus .
Revenue (or net interest income/noninterest income) estimates: S&P Global consensus data could not be retrieved due to access limits; therefore, revenue-side estimate comparisons are unavailable. We attempted programmatic retrieval but hit daily request limits.

Key Takeaways for Investors

Margin trajectory favorable: NIM expanded to 3.21% while cost of funds declined to 2.66%; continued deposit repricing and reduced borrowings are tailwinds to spread and earnings power .
Mix and NPAs warrant monitoring: Deposits fell modestly QoQ with lower noninterest-bearing balances, and NPAs rose to $22.7M (NPLs/loans 0.51%), even as delinquencies improved; watch incremental nonaccruals and reserve adequacy (ACL/loans steady at 0.80%) .
Earnings quality supported by diversified fees: Noninterest income up 18.8% QoQ, helped by BOLI, swap fees, and insurance commissions; durability of these levers versus mortgage/SBA variability will influence run-rate .
Operating discipline: Efficiency ratio improved QoQ to 63.94%, with higher net interest income and other income offsetting slightly higher OpEx; sustained cost control remains a lever if revenue normalizes .
Capital and strategic positioning: $70M equity raise and proposed William Penn merger enhance capital and scale in attractive geographies; integration and timing (H1 2025) are execution risks but offer potential accretion .
Share count dilution considerations: Shares outstanding increased to 19.36M at year-end from 16.57M last year following the offering—EPS optics may be impacted near-term, offset by improved capital ratios and growth capacity .
Dividend continuity: $0.20 declared for the 57th consecutive quarter signals confidence in earnings stability and capital levels .

Additional notes:

Merger valuation references vary with MPB’s share price at announcement dates: ~$127M based on $31.88 (Oct 30, 2024) versus ~$107M cited in the 8‑K based on a different price reference; the deal remains all-stock with expected close in H1 2025 .
Non-GAAP metrics (efficiency ratio, adjusted EPS, tangible book value) reconciliations are provided in the release; adjusted EPS was $0.71 in Q4 2024 versus $0.75 in Q3 2024 .

MID PENN BANCORP INC (MPB)·Q4 2024 Earnings Summary