MID PENN BANCORP, INC. REPORTS THIRD QUARTER EARNINGS AND DECLARES 64TH CONSECUTIVE QUARTERLY DIVIDEND (Form 8-K)

MID PENN BANCORP, INC. REPORTS THIRD QUARTER EARNINGS

AND DECLARES 64TH CONSECUTIVE QUARTERLY DIVIDEND

October 21, 2026 - Harrisburg, PA - Mid Penn Bancorp, Inc. (NASDAQ: MPB) ("Mid Penn"), the parent company of Mid Penn Bank (the "Bank") and MPB Financial Services, LLC, today reported net income available to common shareholders ("earnings") of $21.6 million, or $0.85 per basic common share and $0.84 per diluted common share, for the quarter ended September 30, 2026, compared to $18.3 million, or $0.80 per basic and $0.79 per diluted common share, for the third quarter of 2025. Adjusted earnings per common share, excluding non-recurring income and expenses(1), was $0.88 for the third quarter of 2026. Adjustments exclude $1.3 million of non-recurring expense, and $789 thousand of non-recurring income. Mid Penn also declared a quarterly cash dividend of $0.23 per common share.

Key Highlights of the Third Quarter of 2026:

•Net income available to common shareholders for the third quarter of 2026 was $21.6 million, an increase of $3.3 million, or 18.2%, compared to the third quarter of 2025, and a decrease of $66 thousand, or 0.3%, compared to the second quarter of 2026. The year-over-year increase was primarily attributable to the William Penn and 1st Colonial acquisitions. Earnings per basic common share for the third quarter of 2026 were $0.85 and $0.84 per diluted common share, an increase from $0.80 per basic and $0.79 per diluted common share in the third quarter of 2025.

•Loan balances increased $19.3 million, or 1.4% (annualized), during the third quarter of 2026 compared to the second quarter of 2026. Total loans increased $815.3 million, or 16.9%, to $5.6 billion at September 30, 2026, compared to $4.8 billion at September 30, 2025. Excluding $597.5 million of loans acquired in the 1st Colonial acquisition, organic loan growth was $176.2 million,or 4.84% (annualized), from December 31, 2025.

•Deposits increased $141.8 million, or 9.4% (annualized), during the third quarter of 2026 compared to the second quarter of 2026, primarily driven by a $251.8 million increase in interest-bearing transaction accounts, offset by a $59.9 million decrease in time deposits and a $50.1 million decrease in noninterest-bearing deposits. Total deposits increased $752.3 million, or 14.1%, to $6.1 billion from September 30, 2025. Excluding $747.1 million of deposits from the 1st Colonial acquisition, organic deposits increased $133.3 million, or 3.4% (annualized), from December 31, 2025.

•Net interest margin decreased 14 basis points ("bps") to 3.92% for the quarter ended September 30, 2026, compared to 4.06% for the second quarter of 2026, primarily driven by lower loan yields resulting from a $1.0 million decrease in purchase accounting accretion income, as well as higher funding costs, partially offset by higher investment securities yields. Compared to the third quarter of 2025, net interest margin increased 32 bps from 3.60%, primarily driven by higher investment securities yields, and lower funding costs.

•The core efficiency ratio(1) remained relatively stable at 60.57% in the third quarter of 2026, compared to 59.82% in the second quarter of 2026, and 58.80% in the third quarter of 2025, reflecting continued expense discipline following the 1st Colonial and William Penn acquisitions. On a tax-effected basis, the core efficiency ratio was 60.38%, compared to 59.64% and 58.57%, respectively.

•During the third quarter of 2026, Mid Penn closed certain financial centers as part of its ongoing efforts to improve operating efficiency. The closures are expected to result in ongoing expense savings, with an anticipated earnback period of less than one year.

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•Book value per common share was unchanged at $35.62 as of September 30, 2026, compared to $35.62 as of June 30, 2026, and increased from $34.56 as of September 30, 2025. Tangible book value per common share (1) was $28.26 as of September 30, 2026, compared to $28.18 and $27.96 as of June 30, 2026 and September 30, 2025, respectively.

•As a result of the foregoing, the Board of Directors declared a quarterly cash dividend of $0.23 per common share, payable on November 13, 2026, to shareholders of record as of November 2, 2026.

(1) Non-GAAP financial measure. Refer to the calculation in the section titled "Reconciliation of Non-GAAP Measures (Unaudited)" at the end of this document.

Chair, President and CEO Rory G. Ritrievi provided the following statement:

"The third quarter of 2026 was a solid quarter for Mid Penn. Strong deposit growth was partially offset by softer-than-expected loan growth and noninterest income generation. Effective expense management and continued strong asset quality helped keep overall results in line with our expectations.

As we enter the fourth quarter, we remain confident that both loan growth and noninterest income performance will improve, positioning us well through the end of 2026 and for continued success in 2027.

Based upon the overall financial success in the third quarter and year to date, we are pleased to declare a quarterly cash dividend of $0.23 per common share to our shareholders of record as of November 2, 2026."

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Net Interest Income

For the three months ended September 30, 2026, net interest income was $64.6 million, compared to net interest income of $65.3 million for the three months ended June 30, 2026, and $53.6 million for the three months ended September 30, 2025. Interest income for the quarter ended September 30, 2026 includes $3.1 million of loan accretion income related to fair value marks on acquired loans, which are accreted into interest income over the expected life of the assets.

The tax-equivalent net interest margin(1) for the three months ended September 30, 2026 was 3.92% compared to 4.06% for the second quarter of 2026, and 3.60% for the third quarter of 2025. The 14 bp decrease from the linked-quarter was partially attributable to the overall impact of purchase accounting adjustments, which contributed approximately 8 bps of the decline. The remaining decrease was primarily attributable to higher funding costs, partially offset by higher investment securities yields. Compared to the third quarter of 2025, net interest margin increased 32 bps from 3.60%, primarily driven by higher investment securities yields, and lower funding costs.

The yield on interest-earning assets decreased to 5.89% for the quarter ended September 30, 2026, from 5.99%, and increased from 5.81%, for the three months ended June 30, 2026, and September 30, 2025, respectively. The decrease from the second quarter of 2026 reflected lower yields on loans including the impact of reduced purchase accounting accretion income, partially offset by higher yields on investment securities.

For the nine months ended September 30, 2026, net interest income increased 28.3% to $185.2 million compared to net interest income of $144.3 million for the same period of 2025. The increase was primarily driven by a $38.8 million increase in interest income on loans and a $6.4 million increase in interest income on investment securities, compared to the same period in 2025.

Average Balances

Average balances continue to be impacted by the 1st Colonial acquisition given that the acquisition closed on February 27, 2026. Day one increases in loans, total assets, deposits, and total liabilities were $581.8 million, $842.5 million, $746.9 million and $751.7 million, respectively.

Average loans increased $35.9 million to $5.6 billion for the quarter ended September 30, 2026, compared to $5.6 billion for the quarter ended June 30, 2026, and increased $819.8 million compared to $4.8 billion for the quarter ended September 30, 2025.

Average deposits were $6.0 billion for the third quarter of 2026, an increase of $84.3 million, or 1.4%, from $5.9 billion in the second quarter of 2026 and an increase of $555.7 million, or 10.2%, from $5.5 billion for the third quarter of 2025, primarily due to the 1st Colonial and William Penn acquisitions, and organic growth. The average cost of deposits was 2.11% for the third quarter of 2026, representing a 4 bp increase from the second quarter of 2026, and a 26 bp decrease from the third quarter of 2025.

Cost of funds increased to 2.14%, compared to 2.09% in the second quarter of 2026, primarily reflecting higher costs on interest-bearing deposits.

Asset Quality

The total benefit for credit losses, including the benefit for credit losses on off-balance sheet credit exposures, was $1.6 million for the three months ended September 30, 2026, compared to the provision for credit losses of $528 thousand for the three months ended June 30, 2026, and a benefit for credit losses of $434 thousand for the three months ended September 30, 2025. The quarter-over-quarter change in the benefit for credit losses was primarily driven by improved macroeconomic assumptions, including more favorable forecasts for both unemployment and GDP, as well as an increase in loan prepayment speeds, partially offset by an increase in reserve on three individually analyzed C&I loans. Credit quality remained stable during the quarter, supported by minimal net charge-offs and continued disciplined credit risk management. Net charge-offs for the three months ended September 30, 2026, were $78 thousand, or approximately 0.001% of total average loans.

The provision for credit losses on loans was $887 thousand for the nine months ended September 30, 2026, a decrease of $1.5 million compared to the provision for credit losses of $2.4 million for the nine months ended September 30, 2025. The decrease for the nine months ended September 30, 2026 was primarily attributable to improved macroeconomic assumptions, partially offset by increases from qualitative adjustments to several segments of the portfolio. The benefit for credit losses on off-balance sheet credit exposures was $243 thousand for the three months ended September 30, 2026, compared to the benefit of $247 thousand for the three months ended September 30, 2025. The benefit for credit losses on

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off-balance sheet credit exposures was $326 thousand for the nine months ended September 30, 2026, compared to the benefit of $243 thousand for the nine months ended September 30, 2025.

Allowance for credit losses on loans was 0.71%, 0.74%, and 0.77% of loans, net of unearned income at September 30, 2026, June 30, 2026, and September 30, 2025, respectively.

Total nonperforming assets were $47.0 million at September 30, 2026, compared to nonperforming assets of $36.8 million at June 30, 2026, and $27.3 million at September 30, 2025. The increase during the third quarter of 2026 was primarily driven by an $8.2 million increase in nonaccrual loans, including $7.0 million in commercial real estate loans, and a $1.9 million increase in foreclosed owner-occupied commercial real estate.

Delinquency, measured as loans past due 30 days or more, as a percentage of total loans was 0.73% at September 30, 2026, compared to 0.71% and 0.68% at June 30, 2026 and September 30, 2025, respectively.

Capital

Shareholders' equity increased $732 thousand, or 0.1%, to $902.6 million as of September 30, 2026, from $901.9 million as of June 30, 2026. Retained earnings increased $15.8 million, or 6.6%, from $238.2 million as of June 30, 2026 to $254.0 million as of September 30, 2026. Regulatory capital ratios for Mid Penn and the Bank indicate regulatory capital levels in excess of the regulatory minimums and the levels necessary for the Bank to be considered "well capitalized" at September 30, 2026. Additionally, Mid Penn declared $5.8 million in dividends during the third quarter of 2026.

On April 21, 2026, Mid Penn's Board of Directors authorized a renewal and increase to its treasury stock repurchase program ("the Program"), increasing the authorized repurchase amount to an additional $50.0 million of Mid Penn's outstanding common stock through April 30, 2027. No shares were repurchased during the third quarter of 2026. As of September 30, 2026, Mid Penn repurchased a total of 595,891 shares of common stock at an average price of $24.82 per share under the Program.

Noninterest Income

For the three months ended September 30, 2026, noninterest income totaled $10.0 million, a decrease of $548 thousand, or 5.2%, from $10.6 million for the second quarter of 2026. The decrease was primarily driven by a $225 thousand decrease in earnings from the cash surrender value of life insurance, and a $437 thousand decrease in other noninterest income, including a $406 thousand decrease in loan-level swap fees. These decreases were partially offset by a $415 thousand increase from the release of a contingent liability generated from a previous acquisition, and a $332 thousand increase from acquisition related lease adjustments. Additionally, there was a $537 thousand increase in loss on disposal of fixed assets.

For the nine months ended September 30, 2026, noninterest income totaled $30.2 million, an increase of $10.7 million, or 54.5%, compared to noninterest income of $19.6 million for the nine months ended September 30, 2025. The increase was primarily driven by a $7.6 million increase in fiduciary and wealth management income, reflecting the Cumberland Advisors acquisition, a $1.2 million increase in earnings from the cash surrender value of life insurance, a $485 thousand increase on ATM debit card interchange fees, and a $645 thousand increase in other noninterest income, including a $680 thousand increase in insurance commissions.

Noninterest Expense

For the three months ended September 30, 2026, noninterest expense totaled $48.6 million, an increase of $823 thousand, or 1.7%, compared to $47.8 million in the second quarter of 2026. The increase was primarily driven by a $436 thousand increase in the write-down on other real estate owned property, and an $809 thousand increase in other noninterest expense, including a $687 thousand increase in expenses relate to branch optimization. These increases were partially offset by a $446 thousand decrease in salaries and employee benefits.

For the nine months ended September 30, 2026, noninterest expense totaled $148.3 million, an increase of $31.9 million, or 27.4%, compared to $116.4 million for the nine months ended September 30, 2025. The increase was primarily driven by a $18.8 million increase in salaries and benefits, reflecting additional staff from the 1st Colonial, Cumberland Advisors, and William Penn acquisitions. Software licensing and utilization costs, occupancy expenses, and legal and professional fees increased $2.8 million, $1.8 million, and $2.7 million, respectively, primarily reflecting Mid Penn's increased size and operational complexity following these acquisitions. Intangible amortization also increased $2.7 million. These increases were partially offset by a $3.7 million decrease in merger and acquisition expenses compared to the same period of 2025.

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The core efficiency ratio(1) remained relatively stable at 60.57% for the third quarter of 2026, compared to 59.82% for the second quarter of 2026 and 58.80% for the third quarter of 2025, reflecting continued expense discipline following the 1st Colonial and William Penn acquisitions.

(1)Non-GAAP financial measure. Refer to the calculation in the section titled "Reconciliation of Non-GAAP Measures (Unaudited)" at the end of this document. Non-GAAP financial measure.

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SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology, and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn's portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; results of the regulatory examination and supervision process and oversight, including changes in monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; the availability of financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank's future businesses; material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn's initial expectations, including the full realization of anticipated cost savings and revenue enhancements, the possibility that the anticipated benefits of a transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the companies or as a result of the strength of the economy and competitive factors in legacy Mid Penn and target markets; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of a transaction; the ability to complete the integration of Mid Penn and its target successfully; the dilution caused by Mid Penn's issuance of additional shares of its capital stock in connection with a transaction; and other factors that may affect the future results of Mid Penn.

For a more detailed description of these and other factors which would affect our results, please see Mid Penn's filings with the SEC, including those risk factors identified in the "Risk Factors" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings with the SEC. The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events, except as required by law.

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SUMMARY FINANCIAL HIGHLIGHTS (Unaudited):

(Dollars in thousands, except per share data)			Sep. 30, 2026						Jun. 30, 2026						Mar. 31, 2026						Dec. 31, 2025						Sep. 30, 2025
Ending Balances:
Investment securities			$	841,612					$	878,026					$	830,499					$	769,045					$	781,888
Loans, net of unearned income			5,636,482						5,617,169						5,509,940						4,862,838						4,821,134
Total assets			7,140,000						7,062,910						6,964,809						6,133,896						6,267,349
Total deposits			6,095,051						5,953,297						5,970,967						5,214,663						5,342,720
Shareholders' equity			902,639						901,907						887,405						814,058						796,323
Average Balances:
Investment securities			865,227						843,317						783,768						774,962						782,020
Loans, net of unearned income			5,623,990						5,588,129						5,083,240						4,844,308						4,804,163
Total assets			7,088,936						6,996,021						6,393,011						6,202,310						6,385,751
Total deposits			6,023,820						5,939,499						5,393,592						5,290,598						5,468,144
Shareholders' equity			904,814						892,092						845,553						803,093						783,547
			Three Months Ended
Income Statement:			Sep. 30, 2026						Jun. 30, 2026						Mar. 31, 2026						Dec. 31, 2025						Sep. 30, 2025
Net interest income			$	64,640					$	65,280					$	55,250					$	54,751					$	53,629
(Benefit)/provision for credit losses			(1,561)						528						1,594						(839)						(434)
Noninterest income			10,038						10,586						9,604						7,277						8,183
Noninterest expense			48,590						47,767						51,959						35,848						37,982
Income before provision for income taxes			27,649						27,571						11,301						27,019						24,264
Provision for income taxes			6,024						5,880						2,595						7,572						5,967
Net income available to shareholders			21,625						21,691						8,706						19,447						18,297
Net income excluding non-recurring income and expenses (1)			22,207						22,019						15,294						19,224						17,772
Per Share:
Basic earnings per common share			$	0.85					$	0.86					$	0.36					$	0.84					$	0.80
Diluted earnings per common share			0.84						0.85						0.36						0.83						0.79
Cash dividends declared			0.23						0.22						0.22						0.22						0.20
Book value per common share			35.62						35.62						35.08						35.32						34.56
Tangible book value per common share (1)			28.26						28.18						27.56						28.76						27.96
Asset Quality:
Net charge-offs to average loans (3)			0.006		%				0.002		%				0.084		%				0.038		%				0.008		%
Non-performing loans to total loans			0.65						0.51						0.54						0.47						0.37
Non-performing asset to total loans and other real estate			0.83						0.65						0.69						0.63						0.57
Non-performing asset to total assets			0.66						0.52						0.55						0.50						0.44
ACL on loans to total loans			0.71						0.74						0.75						0.74						0.77
ACL on loans to nonperforming loans			109.81						146.52						138.68						157.25						207.92
Profitability:
Return on average assets (3)			1.21		%				1.24		%				0.55		%				1.24		%				1.14		%
Return on average equity (3)			9.48						9.75						4.18						9.61						9.26
Return on average tangible common equity (1) (3)			12.71						13.20						5.82						12.29						11.95
Tax-equivalent net interest margin			3.92						4.06						3.80						3.79						3.60
Core Efficiency ratio (1)			60.57						59.82						63.52						55.26						58.80
Capital Ratios:
Tier 1 Capital (to Average Assets) (2)			10.8		%				10.7		%				11.4		%				11.0		%				10.4		%
Common Tier 1 Capital (to Risk Weighted Assets) (2)			13.1						12.8						12.8						13.5						13.9
Tier 1 Capital (to Risk Weighted Assets) (2)			13.1						12.8						12.8						13.5						13.9
Total Capital (to Risk Weighted Assets) (2)			13.8						13.5						13.6						14.3						15.5

(1)Non-GAAP financial measure. Refer to the calculation in the section titled "Reconciliation of Non-GAAP Measures (Unaudited)" at the end of this document.

(2)Regulatory capital ratios as of September 30, 2026 are preliminary estimates while prior period ratios are actual.

(3)Annualized ratio

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CONSOLIDATED BALANCE SHEETS (Unaudited):

(Dollars in thousands, except share data)			Sep. 30, 2026						Jun. 30, 2026						Mar. 31, 2026						Dec. 31, 2025						Sep. 30, 2025
ASSETS
Cash and due from banks			$	58,237					$	55,168					$	60,967					$	46,695					$	18,013
Interest-bearing balances with other financial institutions			18,630						15,367						19,383						29,178						24,736
Federal funds sold			92,241						16,111						60,840						23,045						214,420
Total cash and cash equivalents			169,108						86,646						141,190						98,918						257,169
Investment Securities:
Held to maturity, at amortized cost			365,680						372,866						340,957						347,285						354,094
Available for sale, at fair value			470,757						499,773						484,130						416,314						427,352
Equity securities available for sale, at fair value			5,175						5,387						5,412						5,446						442
Loans held for sale			20,215						16,595						16,554						3,668						6,085
Loans, net of unearned income			5,636,482						5,617,169						5,509,940						4,862,838						4,821,134
Less: Allowance for credit losses			(40,244)						(41,640)						(41,105)						(36,091)						(37,337)
Net loans			5,596,238						5,575,529						5,468,835						4,826,747						4,783,797
Premises and equipment, net			47,161						49,236						49,611						48,742						48,491
Operating lease right of use asset			14,903						15,872						16,803						15,169						15,700
Finance lease right of use asset			2,233						2,278						2,323						2,368						2,413
Cash surrender value of life insurance			118,330						117,515						116,474						95,351						95,015
Restricted investment in bank stocks			11,805						15,720						10,081						7,576						6,737
Accrued interest receivable			34,620						33,391						32,958						29,640						29,705
Deferred income taxes			27,418						23,227						23,798						21,416						27,475
Goodwill			157,121						157,121						157,121						136,620						136,620
Core deposit and other intangibles, net			29,465						31,173						33,013						14,657						15,586
Foreclosed assets held for sale			10,321						8,390						8,420						7,806						9,346
Other assets			59,450						52,191						57,129						56,173						51,322
Total Assets			$	7,140,000					$	7,062,910					$	6,964,809					$	6,133,896					$	6,267,349
LIABILITIES & SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand			$	923,275					$	973,371					$	933,497					$	834,013					$	836,374
Interest-bearing transaction accounts			3,551,344						3,299,576						3,357,497						2,829,175						2,852,361
Time			1,620,432						1,680,350						1,679,973						1,551,475						1,653,985
Total Deposits			6,095,051						5,953,297						5,970,967						5,214,663						5,342,720
Short-term borrowings			68,000						137,500						31,500						20,833						-
Long-term debt			2,808						2,902						3,021						23,139						23,258
Subordinated debt and trust preferred securities			-						-						-						-						37,149
Operating lease liability			15,367						16,275						17,186						15,405						15,973
Accrued interest payable			13,025						12,175						12,195						10,942						16,460
Other liabilities			43,110						38,854						42,535						34,856						35,466
Total Liabilities			6,237,361						6,161,003						6,077,404						5,319,838						5,471,026
Shareholders' Equity:
Common stock, par value $1.00 per share; 40.0 million shares authorized			25,948						25,924						25,817						23,567						23,551
Additional paid-in capital			663,367						661,903						659,883						589,421						588,405
Retained earnings			254,017						238,224						222,154						219,685						205,320
Accumulated other comprehensive loss			(25,691)						(9,142)						(8,157)						(6,323)						(8,907)
Treasury stock			(15,002)						(15,002)						(12,292)						(12,292)						(12,046)
Total Shareholders' Equity			902,639						901,907						887,405						814,058						796,323
Total Liabilities and Shareholders' Equity			$	7,140,000					$	7,062,910					$	6,964,809					$	6,133,896					$	6,267,349

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CONSOLIDATED STATEMENTS OF INCOME (Unaudited):

			Three Months Ended
(Dollars in thousands, except per share data)			Sep. 30, 2026						Jun. 30, 2026						Mar. 31, 2026						Dec. 31, 2025						Sep. 30, 2025
INTEREST INCOME
Loans, including fees			$	88,685					$	88,574					$	76,798					$	76,916					$	76,262
Investment securities:
Taxable			8,047						7,558						6,501						6,590						6,614
Tax-exempt			277						284						297						320						331
Other interest-bearing balances			107						117						110						135						196
Federal funds sold			466						159						220						1,179						3,463
Total Interest Income			97,582						96,692						83,926						85,140						86,866
INTEREST EXPENSE
Deposits			32,031						30,619						27,848						29,930						32,631
Short-term borrowings			884						764						702						5						-
Long-term and subordinated debt			27						29						126						454						606
Total Interest Expense			32,942						31,412						28,676						30,389						33,237
Net Interest Income			64,640						65,280						55,250						54,751						53,629
Net (benefit)/provision for credit losses			(1,561)						528						1,594						(839)						(434)
Net Interest Income After (Benefit)/Provision for Credit Losses			66,201						64,752						53,656						55,590						54,063
NONINTEREST INCOME
Fiduciary and wealth management			3,908						3,891						3,661						1,412						1,340
ATM debit card interchange			1,177						1,169						1,035						1,053						1,019
Service charges on deposits			707						632						636						634						647
Mortgage banking			1,159						1,119						314						552						1,013
Mortgage hedging			100						113						81						(22)						50
Net gain on sales of SBA loans			14						27						163						100						-
Earnings from cash surrender value of life insurance			816						1,041						705						609						605
Net gain on sales of investment securities			-						-						-						10						-
Other			2,157						2,594						3,009						2,929						3,509
Total Noninterest Income			10,038						10,586						9,604						7,277						8,183
NONINTEREST EXPENSE
Salaries and employee benefits			26,499						26,945						23,346						20,026						20,941
Software licensing and utilization			4,159						4,155						3,598						3,406						3,310
Occupancy, net			2,964						2,891						3,253						2,624						2,642
Equipment			1,758						1,684						1,553						1,435						1,248
Shares tax			1,109						822						964						245						1,006
Legal and professional fees			1,710						2,157						1,688						992						1,070
ATM/card processing			771						689						757						771						557
Intangible amortization			1,708						1,819						1,300						930						944
FDIC assessment			785						663						800						1,046						422
Loss on sale or write-down of foreclosed assets, net			440						4						491						203						471
Merger and acquisition (1)			43						103						7,723						(39)						233
Other			6,644						5,835						6,486						4,209						5,138
Total Noninterest Expense			48,590						47,767						51,959						35,848						37,982
INCOME BEFORE PROVISION FOR INCOME TAXES			27,649						27,571						11,301						27,019						24,264
Provision for income taxes			6,024						5,880						2,595						7,572						5,967
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS			$	21,625					$	21,691					$	8,706					$	19,447					$	18,297
PER COMMON SHARE DATA:
Basic Earnings Per Common Share			$	0.85					$	0.86					$	0.36					$	0.84					$	0.80
Diluted Earnings Per Common Share			0.84						0.85						0.36						0.83						0.79
Cash Dividends Declared			0.23						0.22						0.22						0.22						0.20

(1) Includes release of merger and acquisition accruals related to the William Penn acquisition in the fourth quarter of 2025.

9

CONSOLIDATED - AVERAGE BALANCE SHEET AND NET INTEREST INCOME ANALYSIS (Unaudited):

			Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
			For the Three Months Ended
			September 30, 2026																		June 30, 2026																		September 30, 2025
(Dollars in thousands)			Average Balance						Interest						Yield/ Rate(2)						Average Balance						Interest						Yield/ Rate(2)						Average Balance						Interest						Yield/ Rate(2)
ASSETS:
Interest Bearing Balances			$	18,101					$	107					2.35		%				$	19,067					$	117					2.46		%				$	26,950					$	196					2.89		%
Investment Securities:
Taxable			811,062						7,835						3.83						787,477						7,213						3.67						716,356						6,502						3.60
Tax-Exempt			54,165						277						2.03						55,840						284						2.04						65,664						331						2.00
Total Securities			865,227						8,112						3.72						843,317						7,497						3.57						782,020						6,833						3.47
Federal Funds Sold			49,000						466						3.77						13,686						129						3.78						310,525						3,463						4.42
Loans, Net of Unearned Income			5,623,990						88,685						6.26						5,588,129						88,574						6.36						4,804,163						76,262						6.30
Restricted Investment in Bank Stocks			13,066						212						6.44						12,292						345						11.26						7,143						112						6.22
Total Earning Assets			6,569,384						97,582						5.89						6,476,491						96,662						5.99						5,930,801						86,866						5.81
Cash and Due from Banks			53,451																		53,422																		49,582
Other Assets			466,101																		466,108																		405,368
Total Assets			$	7,088,936																	$	6,996,021																	$	6,385,751
LIABILITIES & SHAREHOLDERS' EQUITY:
Interest-bearing Demand			$	1,718,281					$	7,561					1.75		%				$	1,660,007					$	6,712					1.62		%				$	1,268,802					$	5,736					1.79		%
Money Market			1,297,153						8,427						2.58						1,243,822						7,838						2.53						1,238,470						9,046						2.90
Savings			420,915						685						0.65						433,917						711						0.66						333,545						64						0.08
Time			1,659,781						15,358						3.67						1,668,054						15,358						3.69						1,774,625						17,785						3.98
Total Interest-bearing Deposits			5,096,130						32,031						2.49						5,005,800						30,619						2.45						4,615,442						32,631						2.80
Short term borrowings			88,756						884						3.95						79,875						764						3.84						1						-						-
Long-term debt			2,839						27						3.77						2,886						29						4.03						23,302						264						4.49
Subordinated debt and trust preferred securities			-						-						-						-						-						-						37,224						342						3.65
Total Interest-bearing Liabilities			5,187,725						32,942						2.52						5,088,561						31,412						2.48						4,675,969						33,237						2.82
Noninterest-bearing Demand			927,690																		933,699																		852,702
Other Liabilities			68,707																		81,669																		73,533
Shareholders' Equity			904,814																		892,092																		783,547
Total Liabilities & Shareholders' Equity			$	7,088,936																	$	6,996,021																	$	6,385,751
Net Interest Income									$	64,640																	$	65,250																	$	53,629
Taxable Equivalent Adjustment (1)									235																		231																		245
Net Interest Income (taxable equivalent basis)									$	64,875																	$	65,481																	$	53,874
Total Yield on Earning Assets															5.89		%																5.99		%																5.81		%
Cost of funds															2.14		%																2.09		%																2.39		%
Rate on Supporting Liabilities															2.52																		2.48																		2.82
Average Interest Spread															3.37																		3.51																		2.99
Tax-Equivalent Net Interest Margin															3.92																		4.06																		3.60

(1)Presented on a fully taxable-equivalent basis using a 21% federal tax rate and statutory interest expense disallowance.

(2)Annualized ratios

10

ALLOWANCE FOR CREDIT LOSSES AND ASSET QUALITY (Unaudited):

(Dollars in thousands)			Sep. 30, 2026						Jun. 30, 2026						Mar. 31, 2026						Dec. 31, 2025						Sep. 30, 2025
Allowance for Credit Losses on Loans:
Beginning balance			$	41,640					$	41,105					$	36,091					$	37,337					$	37,615
Allowance for credit losses on loans acquired			-						-						4,415						-						-
Loans Charged off
Commercial real estate
CRE Nonowner Occupied			-						(2)						(499)						(394)						-
CRE Owner Occupied			-						-						-						(346)						-
Multifamily			-						-						-						-						-
Farmland			-						-						-						-						-
Commercial and industrial			-						-						-						-						(91)
Construction
Residential Construction			-						-						-						-						-
Other Construction			-						-						-						-						-
Residential mortgage
1-4 Family 1st Lien			(16)						-						-						-						-
1-4 Family Rental			-						-						(13)						-						-
HELOC and Junior Liens			(53)						(48)						-						-						-
Consumer			(21)						(11)						(641)						(28)						(40)
Total loans charged off			(90)						(61)						(1,153)						(768)						(131)
Recoveries of loans previously charged off
Commercial real estate
CRE Nonowner Occupied			-						-						-						294						9
CRE Owner Occupied			-						2						93						-						-
Multifamily			-						-						-						-						-
Farmland			-						-						-						-						-
Commercial and industrial (1)			(2)						6						-						-						-
Construction
Residential Construction			-						-						-						-						-
Other Construction			-						-						-						-						-
Residential mortgage
1-4 Family 1st Lien			2						3						2						2						3
1-4 Family Rental			-						13						-						-						-
HELOC and Junior Liens			-						-						-						-						-
Consumer			12						15						9						7						28
Total loans recovered			12						39						104						303						40
Balance before provision			41,562						41,083						39,457						36,872						37,524
(Benefit)/provision for credit losses - loans			(1,318)						557						1,648						(781)						(187)
Balance, end of quarter			$	40,244					$	41,640					$	41,105					$	36,091					$	37,337
Nonperforming Assets
Total nonaccrual loans			$	36,650					$	28,420					$	29,641					$	22,951					$	17,957
Foreclosed real estate			10,321						8,390						8,420						7,806						9,346
Total nonperforming assets			46,971						36,810						38,061						30,757						27,303
Accruing loans 90 days or more past due			-						213						-						-						160
Total risk elements			$	46,971					$	37,023					$	38,061					$	30,757					$	27,463

(1)Commercial and industrial recoveries for the three months ended September 30, 2026 include an adjustment related to recoveries on loans acquired in the 1st Colonial acquisition.

11

RECONCILIATION OF NON-GAAP MEASURES (Unaudited)

Explanatory note: