MID PENN BANCORP INC 10-K

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA The following audited financial statements are set forth in this Annual Report on Form 10-K on the following pages: Index to Financial Statements Management Report on Internal Controls Over Financial Reporting 60 Reports of Independent Registered Public Accounting Firms 61 Consolidated Balance Sheets 65 Consolidated Statements of Income 66 Consolidated Statements of Comprehensive Income 67 Consolidated Statements of Changes in Shareholders' Equity 68 Consolidated Statements of Cash Flows 69 Notes to Consolidated Financial Statements 71 59 MID PENN BANCORP, INC. Management Report on Internal Controls Over Financial Reporting The Corporation carried out an evaluation, under the supervision and with the participation of the Corporation’s management, including the Corporation’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures, as defined in SEC Rules 13a-15(e) and 15d-15(e). Based upon the evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2025, the Corporation’s disclosure controls and procedures are effective. Disclosure controls and procedures are designed to ensure that information required to be disclosed in the Corporation’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. The management of the Corporation is responsible for establishing and maintaining adequate internal control over financial reporting. The Corporation’s internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness of future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2025, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on this assessment, management concluded that, as of December 31, 2025, the Corporation’s internal control over financial reporting is effective based on those criteria. The effectiveness of the Corporation’s internal control over financial reporting has been audited by RSM US LLP, an independent registered public accounting firm, as stated in their report which is included herein. /s/ Rory G. Ritrievi /s/ Justin T. Webb Rory G. Ritrievi Justin T. Webb President and Chief Financial Officer Chief Executive Officer March 12, 2026 March 12, 2026 60 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Mid Penn Bancorp, Inc. and Subsidiaries Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Mid Penn Bancorp, Inc. and Subsidiaries (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated March 12, 2026, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Allowance for Credit Losses on Loans – Adjustments to Historical Losses As described in Note 1 and Note 4 of the financial statements, the Company’s allowance for credit losses (ACL) on loans is established through a provision for credit losses on loans and represents management’s estimate of all expected credit losses over the expected contractual life of the Company’s loan portfolio. The methodology for estimating the amount of expected credit losses reported in the ACL on loans has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL on loans for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The ACL on loans as of December 31, 2025 was $36.1 million, which consists of an ACL on loans collectively evaluated for credit losses of $34.0 million and an ACL on loans individually evaluated for credit losses of $2.1 million. The Company estimates the collective ACL on loans utilizing a discounted cash flow (DCF) methodology applied to portfolio segments and their loan pools segregated by similar risk characteristics. The Company’s DCF methodology adjusts loan level contractual cash flows for probability of default and loss given default and prepayment and curtailment 61 rate assumptions to calculate expected future cash flows. A correlation between the selected macroeconomic indicators of national unemployment rate and GDP and historic loss levels, adjusted to include representative peer group loss experience, was developed to predict loss expectations based on current economic conditions and a reasonable and supportable forecast period. At the end of the reasonable and supportable forecast period, the Company reverts to the long-term mean of the macroeconomic indicator. For the December 31, 2025 ACL on loans, the Company determined that reasonable and supportable forecasts could be made for a 12-month period and used a reversion period of four quarters reverting to the historical mean on a straight-line basis. The Company also calculates a qualitative portion of the ACL, which is based on general economic conditions and other internal and external factors affecting the Company’s loan portfolio. At December 31, 2025, qualitative factors considered for the ACL on loans included concentrations of credit, lending process, and peer group divergence. We identified the adjustments to historical losses, both as it relates to the economic forecast selection and the qualitative factors, within the Company’s ACL on loans calculation as a critical audit matter as auditing the underlying adjustments required significant auditor judgment in the evaluation of the Company’s assumptions. Our audit procedures related to the Company’s adjustments to historical loss information component of the ACL on loans included the following, among others: • We obtained an understanding of the relevant controls related to the ACL on loans and tested such controls for design and operating effectiveness, including controls relating to management’s review and approval of the ACL on loans calculation, management’s assessment and review of the adjustments to historical loss information component of the ACL on loans for current conditions and forecasted scenarios and management’s validation of underlying source data. • We tested management’s calculation of adjustments to historical loss information within the ACL on loans calculation by: ◦ Agreeing calculation inputs to the Company’s internal and external source data, including for current and forecasted conditions; ◦ Verifying the mathematical accuracy of the calculation of adjustments to historical loss information; and ◦ Evaluating whether adjustments to historical loss information within the ACL on loans, or lack thereof, were reasonable and consistent with Company provided internal data and external independent data, including data related to current and forecasted periods. • We assessed the reasonableness of management’s calculated changes in adjustments to historical loss information within the ACL on loans calculation by: ◦ Evaluating the magnitude and directional consistency of changes, or lack thereof, in the level of adjustments to historical loss information between periods; and ◦ Evaluating whether management’s conclusions were reasonable and consistent with Company provided internal data and external independent data, including data related to current and forecasted periods. • We agreed management’s calculated adjustments to historical loss information to the ACL on loans calculation. Goodwill Impairment – Fair Value of Reporting Unit As described in Note 1 and Note 6 of the financial statements, the Company’s goodwill balance was $136.6 million as of December 31, 2025. Goodwill is tested annually for impairment, or at interim periods if certain events occur which may indicate the fair value of the reporting unit has fallen below its carrying amount, by comparing the estimated fair value of Company’s single reporting unit to its carrying value. The Company estimates the fair value of its single reporting unit through multiple valuation techniques, including a public company market change of control approach and a peer group change of control approach. Significant judgment is required to estimate the fair value of the Company’s single reporting unit including the evaluation of current market data as well as the selection of a control premium. We identified the Company’s annual goodwill impairment test as a critical audit matter due to the complexity of the analysis and certain significant assumptions made by management in estimating the fair value of the Company’s reporting unit such as the determination of a reasonable control premium and the identification of peer public companies. Auditing management’s assumptions required a high degree of auditor judgment, subjectivity, and increased audit effort, including the use of internal valuation specialists, due to the impact these assumptions could have on the accounting estimate. Our audit procedures related to the Company’s annual goodwill impairment test included the following, among others: 62 • We obtained an understanding of the relevant controls related to management’s annual test of goodwill for impairment and tested such controls for design and operating effectiveness, including controls over management’s preparation of the significant assumptions such as the control premium. • We tested the completeness and accuracy of the underlying data used by management in the fair value estimate by agreeing Company financial data to internal Company records. • We utilized internal valuation specialists who assisted in the following, among others: ◦ Evaluating the completeness and accuracy of the market data used in management’s calculation of the control premium by comparing such market data to independently sourced information. ◦ Evaluating the comparability of the Company to the peer public companies identified by management through consideration of size, location, and recent results of operations, among other factors. ◦ Evaluating the appropriateness of the valuation models used in management’s analysis and comparing management’s selected control premium to publicly available market data. Business Combination – Valuation of the Acquired non-PCD Loan Portfolio As described in Note 1 and Note 2 to the financial statements, on April 30, 2025, the Company completed its acquisition of William Penn Bancorporation (William Penn). The Company recorded $6.9 million of goodwill as a result of the acquisition, which represents the excess of the purchase price over the fair value of net assets acquired using the acquisition method of accounting. As part of the acquisition, the Company acquired $405.3 million in loans. Acquired loans are initially recorded at their acquisition-date fair values. The Company prepared loan fair value adjustments that it believed a market participant might employ in estimating the fair value for the acquired loan portfolio. This analysis was performed for loans with signs of credit deterioration (purchased credit deteriorated (PCD) loans) as well as those without signs of credit deterioration (non-PCD loans). The acquired non-PCD loan portfolio was recorded at an estimated fair value of $355.5 million at the acquisition date without carryover of William Penn’s previously established ACL on loans. Fair values are determined using discounted cash flow methodologies and valuation techniques that incorporate projected cash flows, estimated credit losses, prepayment assumptions, market interest rates, and other market-based inputs. Projected cash flows are developed using contractual terms adjusted for expected prepayments and credit losses and are discounted using rates that reflect current market conditions and the risk characteristics of the assets. We identified the fair value of acquired non-PCD loans as a critical audit matter, because of the judgments necessary to determine the fair value of the loans, the high degree of auditor judgment involved and the extensive audit effort involved in testing management estimates and assumptions, including the use of valuation specialists. The fair value determination of acquired non-PCD loans requires a significant amount of judgment by management and involves a high degree of subjectivity. Our audit procedures related to the valuation of the acquired non-PCD loan portfolio, specifically the market interest rates, expected credit losses, expected repayments and prepayments and discount rates significant assumptions, included the following, among others: • We obtained an understanding of the relevant controls related to the estimated fair value of non-PCD loans acquired in the current year and tested such controls for design and operating effectiveness, including controls relating to management’s review and approval of significant assumptions including market interest rates, expected credit losses, discount rates and expected payments and prepayments. • We tested the completeness and accuracy of the data inputs for significant assumptions used in the non-PCD loans estimated fair value calculations by comparing the data to source documents and external information sources. • We utilized internal valuation specialists who assisted in the following, among others: ◦ Evaluating management’s methodologies and techniques of estimating the loans’ fair value for appropriateness as compared to standard valuation techniques for financial assets and through consideration of the reasonableness of significant assumptions. ◦ Evaluating the completeness and accuracy of the significant assumptions used in management’s valuation of the non-PCD loans by tracing such data to internally or externally generated source documents or comparing to independently sourced information and performing mathematical accuracy checks. /s/ RSM US LLP We have served as the Company's auditor since 2020. Philadelphia, Pennsylvania March 12, 2026 63 Report of Independent Registered Public Accounting Firm To the Shareholders and the Board of Directors of Mid Penn Bancorp, Inc. and Subsidiaries Opinion on the Internal Control Over Financial Reporting We have audited Mid Penn Bancorp, Inc. and Subsidiaries' (the Company) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, changes in shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes to the consolidated financial statements and our report dated March 12, 2026, expressed an unqualified opinion. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting in the accompanying Management Report on Internal Controls Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ RSM US LLP Philadelphia, Pennsylvania March 12, 2026 64 MID PENN BANCORP, INC. Consolidated Balance Sheets (Dollars in thousands, except per share data) December 31, 2025 December 31, 2024 ASSETS Cash and due from banks $ 46,695 $ 37,002 Interest-bearing balances with other financial institutions 29,178 14,490 Federal funds sold 23,045 19,072 Total Cash and cash equivalents 98,918 70,564 Investment securities: Held-to-maturity, at amortized cost (fair value $ 321,702 and $ 340,648 ) 347,285 382,447 AFS, at fair value (amortized cost $ 426,512 and $ 284,770 ) 416,314 260,477 Equity securities, at fair value 5,446 428 Loans held-for-sale, at fair value 3,668 7,064 Loans, net of unearned income 4,862,838 4,443,070 Less: ACL - Loans ( 36,091 ) ( 35,514 ) Net loans 4,826,747 4,407,556 Premises and equipment, net 48,742 38,806 Operating lease right-of-use asset 15,169 7,699 Finance lease right-of-use asset 2,368 2,548 Cash surrender value of life insurance 95,351 51,521 Restricted investment in bank stocks 7,576 7,461 Accrued interest receivable 29,640 26,846 Deferred income taxes 21,416 22,747 Goodwill 136,620 128,160 Core deposit and other intangibles, net 14,657 6,242 Foreclosed assets held-for-sale 7,806 44 Other assets 56,173 50,326 Total Assets $ 6,133,896 $ 5,470,936 LIABILITIES & SHAREHOLDERS’ EQUITY Deposits: Noninterest-bearing demand $ 834,013 $ 759,169 Interest-bearing transaction accounts 2,829,175 2,330,100 Time 1,551,475 1,600,658 Total Deposits 5,214,663 4,689,927 Short-term borrowings 20,833 2,000 Long-term debt 23,139 23,603 Subordinated debt — 45,741 Operating lease liability 15,405 8,092 Accrued interest payable 10,942 13,484 Other liabilities 34,856 33,071 Total Liabilities 5,319,838 4,815,918 Shareholders' Equity: Common stock, par value $ 1.00 per share; 40,000,000 shares authorized; 23,567,094 issued as of December 31, 2025, and 19,796,519 as of December 31, 2024; 23,047,203 outstanding as of December 31, 2025, and 19,355,797 as of December 31, 2024 23,567 19,797 Additional paid-in capital 589,421 480,491 Retained earnings 219,685 181,597 Accumulated other comprehensive loss ( 6,323 ) ( 16,825 ) Treasury stock, at cost; 519,891 and 440,722 shares as of December 31, 2025 and December 31, 2024 ( 12,292 ) ( 10,042 ) Total Shareholders’ Equity 814,058 655,018 Total Liabilities and Shareholders' Equity $ 6,133,896 $ 5,470,936 The accompanying notes are an integral part of these Consolidated Financial Statements. 65 MID PENN BANCORP, INC. Consolidated Statements of Income Year Ended December 31, (Dollars in thousands, except per share data) 2025 2024 2023 INTEREST INCOME Loans, including fees $ 292,184 $ 265,522 $ 218,060 Investment securities: Taxable 22,301 16,542 16,005 Tax-exempt 1,343 1,464 1,540 Other interest-bearing balances 611 1,127 361 Federal funds sold 7,331 1,928 373 Total Interest Income 323,770 286,583 236,339 INTEREST EXPENSE Deposits 121,806 116,320 79,295 Short-term borrowings 381 10,575 7,087 Long-term and subordinated debt 2,488 3,017 2,984 Total Interest Expense 124,675 129,912 89,366 Net Interest Income 199,095 156,671 146,973 Provision for credit losses - loans 1,598 2,144 3,295 (Benefit)/provision for credit losses - credit commitments ( 301 ) ( 628 ) 404 Net provision for credit losses 1,297 1,516 3,699 Net Interest Income After Provision for Credit Losses 197,798 155,155 143,274 NONINTEREST INCOME Fiduciary and wealth management 5,298 4,680 5,059 ATM debit card interchange 3,949 3,851 4,019 Service charges on deposits 2,495 2,176 1,943 Mortgage banking 2,832 2,476 1,353 Mortgage hedging 12 10 324 Net gain on sales of SBA loans 220 347 571 Earnings from cash surrender value of life insurance 1,979 1,141 1,112 Net gain on sales of investment activities 10 — — Other 10,047 7,812 5,627 Total Noninterest Income 26,842 22,493 20,008 NONINTEREST EXPENSE Salaries and employee benefits 78,029 64,098 59,345 Software licensing and utilization 12,562 9,300 7,927 Occupancy, net 9,905 7,571 7,349 Equipment 5,025 4,928 5,121 Shares tax 2,776 2,350 2,713 Legal and professional fees 3,881 4,306 2,945 ATM/card processing 2,682 2,284 2,108 Intangible amortization 3,046 1,784 1,780 FDIC Assessment 3,452 4,170 3,500 Loss/(gain) on sale of foreclosed assets, net 646 80 ( 144 ) Merger and acquisition 11,519 545 5,544 Post-acquisition restructuring — — 2,952 Other 18,747 16,200 17,448 Total Noninterest Expense 152,270 117,616 118,588 INCOME BEFORE PROVISION FOR INCOME TAXES 72,370 60,032 44,694 Provision for income taxes 16,122 10,595 7,297 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 56,248 $ 49,437 $ 37,397 PER COMMON SHARE DATA: Basic Earnings Per Common Share $ 2.59 $ 2.90 $ 2.29 Diluted Earnings Per Common Share $ 2.55 $ 2.90 $ 2.29 Weighted-average basic shares outstanding 21,757,060 17,026,240 16,319,006 Weighted-average diluted shares outstanding 22,022,475 17,070,862 16,350,963 The accompanying notes are an integral part of these Consolidated Financial Statements. 66 MID PENN BANCORP, INC. Consolidated Statements of Comprehensive Income Year Ended December 31, (In thousands) 2025 2024 2023 Net income $ 56,248 $ 49,437 $ 37,397 Other comprehensive income: Unrealized gains/(losses) arising during the period on available-for-sale securities, net of income tax. 11,918 ( 1,550 ) 1,988 Unrealized holding losses/(gains) arising during the period on interest rate derivatives used in cash flow hedges, net of income tax. ( 1,676 ) 665 820 Change in defined benefit plans, net of income tax. (1) 308 723 ( 212 ) Reclassification adjustment for settlement gains and activity related to benefit plans, net of income tax. (2) ( 48 ) ( 26 ) ( 17 ) Total other comprehensive income/(loss) 10,502 ( 188 ) 2,579 Total comprehensive income $ 66,750 $ 49,249 $ 39,976 (1) The change in defined benefit plans consists primarily of unrecognized actuarial gains (losses) on defined benefit plans during the period. (2) The reclassification adjustment for defined benefit plans includes settlement gains, amortization of prior service costs, and amortization of net gain or loss. amounts are included in other income on the Consolidated Statements of Income within the total noninterest income. See "Note 14 - Postretirement Benefit Plans " , to the Consolidated Financial Statements for more information. The accompanying notes are an integral part of these Consolidated Financial Statements. 67 MID PENN BANCORP, INC. Consolidated Statements of Changes in Shareholders’ Equity Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Treasury Stock Total Shareholders' Equity (Dollars in thousands, except per share data) Shares Amount Balance, January 1, 2023 16,094,486 $ 16,094 $ 386,987 $ 133,114 $ ( 19,216 ) $ ( 4,880 ) $ 512,099 Net income — — — 37,397 — — 37,397 Total other comprehensive income, net of taxes — — — — 2,579 — 2,579 Common stock cash dividends declared - $ 0.80 per share — — — ( 12,981 ) — — ( 12,981 ) Common stock issued to Brunswick shareholders (1) 849,510 850 17,245 — — — 18,095 Impact of adopting CECL (2) — — — ( 11,548 ) — — ( 11,548 ) Repurchased stock ( 216,879 shares) — — ( 37 ) — — ( 4,839 ) ( 4,876 ) Employee Stock Purchase Plan 13,459 13 290 — — — 303 Director Stock Purchase Plan 7,884 8 171 — — — 179 Restricted stock activity 33,590 34 1,069 — — — 1,103 Balance, December 31, 2023 16,998,929 $ 16,999 $ 405,725 $ 145,982 $ ( 16,637 ) $ ( 9,719 ) $ 542,350 Net income — $ — $ — $ 49,437 $ — $ — $ 49,437 Total other comprehensive loss, net of taxes — — — — ( 188 ) — ( 188 ) Common stock cash dividends declared - $ 0.80 per share — — — ( 13,822 ) — — ( 13,822 ) Common stock issuance (3) 2,731,250 2,731 73,225 — — — 75,956 Repurchased stock ( 15,500 shares) (4) — — — — — ( 323 ) ( 323 ) Employee Stock Purchase Plan 19,829 20 418 — — — 438 Director Stock Purchase Plan 5,072 5 118 — — — 123 Restricted stock activity 41,439 42 1,005 — — — 1,047 Balance, December 31, 2024 19,796,519 $ 19,797 $ 480,491 $ 181,597 $ ( 16,825 ) $ ( 10,042 ) $ 655,018 Net income — $ — $ — $ 56,248 $ — $ — $ 56,248 Total other comprehensive income, net of taxes — — — — 10,502 — 10,502 Common stock cash dividends declared - $ 0.84 per share — — — ( 18,160 ) — — ( 18,160 ) Common stock issued in business combination (5) 3,506,795 3,507 99,699 — — — 103,206 Stock options exercised 147,946 148 6,728 — — — 6,876 Repurchased stock ( 79,169 shares) (4) — — — — — ( 2,250 ) ( 2,250 ) Employee Stock Purchase Plan 19,008 19 497 — — — 516 Director Stock Purchase Plan 3,600 4 99 — — — 103 Restricted stock activity 93,226 92 1,907 — — — 1,999 Balance, December 31, 2025 23,567,094 $ 23,567 $ 589,421 $ 219,685 $ ( 6,323 ) $ ( 12,292 ) $ 814,058 (1) Shares issued as a result of the acquisition of Brunswick Bancorp ("Brunswick"). (2) The Corporation adopted ASC 326, Financial Instruments - Credit Losses, effective January 1, 2023. See "Note 1 - Summary of Significant Accounting Policies" for further details. (3) Shares issued as a result of the underwritten public offering of 2,375,000 shares of common stock at a price of $ 29.50 per share on November 4, 2024. (4) Includes tax effects of repurchased stock. (5) Shares issued on April 30, 2025 as a result of the William Penn Acquisition. See "Note 2 - Business Combinations" to the Consolidated Financial Statements for more information. The accompanying notes are an integral part of these Consolidated Financial Statements. 68 MID PENN BANCORP, INC. Consolidated Statements of Cash Flows (In thousands) Year Ended December 31, 2025 2024 2023 Operating Activities: Net Income $ 56,248 $ 49,437 37,397 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 1,297 1,516 3,699 Depreciation 4,855 4,866 4,900 Amortization of intangibles 3,046 1,784 1,780 Net amortization of security discounts/premiums 330 397 472 Noncash operating lease expense 2,844 2,184 1,945 Amortization of finance lease right-of-use asset 180 179 180 Earnings on cash surrender value of life insurance ( 1,979 ) ( 1,141 ) ( 1,112 ) Mortgage loans originated for sale ( 103,623 ) ( 113,741 ) ( 82,714 ) Proceeds from sales of mortgage loans originated for sale 109,851 113,008 82,687 Gain on sale of mortgage loans ( 2,832 ) ( 2,476 ) ( 1,353 ) SBA loans originated for sale ( 3,426 ) ( 4,603 ) ( 11,211 ) Proceeds from sales of SBA loans originated for sale 3,645 4,951 10,640 Gain on sale of SBA loans ( 220 ) ( 347 ) ( 571 ) Gain on sale of property, plant, and equipment ( 51 ) ( 10 ) — Loss/(gain) on sale or write-down of foreclosed assets 646 80 ( 144 ) Discount on subordinated debt ( 461 ) ( 613 ) ( 587 ) Stock compensation expense 1,999 1,047 1,103 Change in deferred income taxes 13,891 1,516 ( 1,551 ) Increase in accrued interest receivable ( 523 ) ( 1,026 ) ( 6,244 ) (Increase)/decrease in other assets ( 4,114 ) ( 4,988 ) 9,736 (Decrease)/increase in accrued interest payable ( 2,571 ) ( 773 ) 10,043 Increase/(decrease) in operating lease liability 3,339 ( 2,123 ) ( 2,540 ) (Decrease)/increase in other liabilities ( 2,336 ) 2,264 ( 4,214 ) Net Cash Provided By Operating Activities 80,035 51,388 52,341 Investing Activities: Proceeds from the sale of available-for-sale securities — — 1,751 Proceeds from the maturity or call of available-for-sale securities 60,253 33,756 16,611 Purchases of available-for-sale securities ( 201,796 ) ( 72,712 ) — Proceeds from the maturity or call of held-to-maturity securities 34,943 16,356 10,490 Stock dividends received on FHLB and other bank stock 443 1,288 864 (Purchases)/reduction of restricted investment in bank stock ( 558 ) 8,019 ( 9,317 ) Net cash received/(paid) from acquisitions 218,112 ( 2,676 ) 1,068 Net increase in loans ( 25,515 ) ( 190,658 ) ( 424,939 ) Purchases of bank premises and equipment ( 8,234 ) ( 6,916 ) ( 2,770 ) Proceeds from the sale of premises and equipment 352 163 — Proceeds from the sale of foreclosed assets 1,891 359 1,256 Proceeds from bank-owned life insurance 1,077 6,683 774 Earnings on bank-owned life insurance — ( 2,566 ) ( 125 ) Net change in investments in tax credits and other partnerships 2,201 162 ( 4,588 ) Net Cash Provided by (Used in) Investing Activities 83,169 ( 208,742 ) ( 408,925 ) Financing Activities: Net (decrease)/increase in deposits ( 95,024 ) 343,715 286,498 Common stock dividends paid ( 18,160 ) ( 13,822 ) ( 12,981 ) Proceeds from Employee and Director Stock Purchase Plan stock issuance 619 561 482 Proceeds from public offering of common stock — 75,956 — Treasury stock purchased ( 2,250 ) ( 323 ) ( 4,876 ) 69 MID PENN BANCORP, INC. Consolidated Statements of Cash Flows Net change in finance lease liability ( 146 ) ( 134 ) ( 93 ) Proceeds from short-term borrowings 243,583 1,305,482 1,731,919 Repayment of short-term borrowings ( 224,750 ) ( 1,545,014 ) ( 1,593,034 ) Long-term debt repayment ( 318 ) ( 35,266 ) ( 30,449 ) Proceeds from long-term debt — — 25,000 Subordinated debt redemption ( 45,280 ) — ( 10,000 ) Exercise of stock options 6,876 — — Net Cash (Used in)/Provided by Financing Activities ( 134,850 ) 131,155 392,466 Net increase/(decrease) in cash and cash equivalents 28,354 ( 26,199 ) 35,882 Cash and cash equivalents, beginning of period 70,564 96,763 60,881 Cash and cash equivalents, end of period $ 98,918 $ 70,564 $ 96,763 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 127,217 $ 130,685 $ 77,413 Cash paid for income taxes 5,752 853 7,965 Supplemental Noncash Disclosures: Recognition of operating lease right-of-use assets $ 3,974 $ 930 $ 2,100 Recognition of operating lease liabilities 3,974 930 2,100 Loans transferred to foreclosed assets held-for-sale 10,299 164 1,362 Fair value of assets acquired in business combination, excluding cash (1) $ 687,522 $ 1,547 $ 362,070 Goodwill recorded (1) 7,313 1,129 12,800 Fair value of liabilities assumed in business combination (1) 630,181 — 345,043 Fair value of shares issued in business combination (2) 103,213 — 18,095 (1) Includes the impact of the William Penn Acquisition on April 30, 2025, the Charis Insurance Group acquisition on May 12, 2025, the Commonwealth Benefits Group acquisition on July 31, 2024, and the Brunswick acquisition on May 19, 2023. See "Note 2 - Business Combinations" to the Consolidated Financial Statement for additional information. (2) This disclosure includes the impact of the William Penn Acquisition on April 30, 2025 and the Brunswick acquisition on May 19, 2023. The accompanying notes are an integral part of these Consolidated Financial Statements. 70 MID PENN BANCORP, INC. Notes to Consolidated Financial Statements Note 1 - Summary of Significant Accounting Policies Nature of Operations Mid Penn Bancorp, Inc. ("Mid Penn" or the "Corporation"), through operations conducted by Mid Penn Bank (the "Bank") and its nonbank subsidiaries, engages in a full-service commercial banking and trust business, making available to the community a wide range of financial services, including, but not limited to, mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities and local government loans, and various types of time and demand deposits including but not limited to, checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and Individual Retirement Accounts ("IRA"). In addition, the Bank provides a full range of trust and wealth management services through its Trust Department. Deposits are insured by the Federal Deposit Insurance Corporation ("FDIC") to the extent provided by law. Mid Penn also fulfills the insurance needs of both existing and potential customers through MPB Risk Services, LLC, doing business as MPB Insurance and Risk Management. The financial services are provided to individuals, partnerships, non-profit organizations, and corporations through its retail banking offices located throughout Pennsylvania, with a minor portion in New Jersey. Basis of Presentation For all periods presented, the accompanying Consolidated Financial Statements include the accounts of Mid Penn Bancorp, Inc., its wholly-owned subsidiary, Mid Penn Bank, and six wholly-owned nonbank subsidiaries, MPB Acquisition Sub I, LLC, which was formed in connection with the acquisition of Cumberland Advisors, LLC. See "Subsequent Events" for additional information, MPB Realty, LLC, MPB Financial Services, LLC, which includes MPB Wealth Management, LLC (which ceased operating during the first quarter of 2024) and MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of December 31, 2025, the accounts and activities of these nonbank subsidiaries were not material to warrant separate disclosure or segment reporting. As a result, Mid Penn has only one reportable segment for financial reporting purposes. All material intercompany accounts and transactions have been eliminated in consolidation. For comparative purposes, the December 31, 2024 and December 31, 2023 balances have been reclassified, when necessary, to conform to the 2025 presentation. Such reclassifications had no impact on net income or total shareholders’ equity. In the opinion of management, all adjustments necessary for fair presentation of the periods presented have been reflected in the accompanying consolidated financial statements. All such adjustments are of a normal, recurring nature. The presentation of short-term borrowings within cash flows from financing activities in the consolidated statements of cash flows has been revised from a net presentation to a gross presentation of proceeds from short-term borrowings and repayments of short-term borrowings. Prior period amounts have been reclassified to conform to the current period presentation. This reclassification had no impact on previously reported net cash flows provided by financing activities. Subsequent Events Mid Penn has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2025 for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the issuance date of these consolidated financial statements. There were no events or transactions that occurred subsequent to the balance sheet date that would require adjustment to the financial statements. On January 1, 2026, Mid Penn completed its acquisition of Cumberland Advisors, Inc., a registered investment advisory firm with clients both nationally and internationally. As a result of the acquisition, Mid Penn paid holders of Cumberland Advisors, Inc. common stock $ 1.6 million in cash and issued approximately 127,020 shares of Mid Penn common stock. As of December 31, 2025, Cumberland had approximately $ 3.2 billion in assets under management. In connection with the acquisition, Cumberland was merged into a newly formed Mid Penn acquisition subsidiary and now operates as Cumberland Advisors, LLC. 71 MID PENN BANCORP, INC. On February 27, 2026, Mid Penn completed its acquisition of 1st Colonial. At the effective time of the Merger, 1st Colonial merged with and into Mid Penn with Mid Penn surviving the Merger. Promptly following the Merger, 1st Colonial Community Bank, 1st Colonial's wholly owned bank subsidiary, merged with and into the Bank with the Bank surviving. The accounting and reporting policies of Mid Penn conform with accounting principles generally accepted in the United States ("GAAP") and to general practice within the financial services industry. Following is a description of the more significant accounting policies. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates subject to significant change include the allowance for credit losses, expected cash flows and collateral values associated with individually evaluated loans, the carrying value of other real estate owned ("OREO"), the fair value of financial instruments, business combination fair value computations, the valuation of goodwill and other intangible assets, stock-based compensation and deferred income tax assets. Business Combinations Business combinations are accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations. Under this method, the Company recognizes the identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date. The determination of the fair values of assets acquired and liabilities assumed requires management to make significant estimates and assumptions. Fair values are generally determined using discounted cash flow methodologies and other valuation techniques that incorporate projected cash flows, estimated credit losses, prepayment assumptions, market interest rates, and other market-based inputs. Projected cash flows are developed using contractual terms adjusted for expected prepayments and credit losses, and are discounted using rates that reflect current market conditions and the risk characteristics of the assets or liabilities. Management may engage independent third-party valuation specialists to assist in determining certain fair values. The excess of the purchase price over the estimated fair value of the net assets acquired is recorded as goodwill. If the fair value of the identifiable net assets acquired exceeds the purchase price, the excess is recognized as a bargain purchase gain in earnings on the acquisition date. Acquisition-related costs, such as legal and advisory fees, are expensed as incurred. Measurement period adjustments are recorded in the reporting period in which the amounts are determined, if identified within one year of the acquisition date, as permitted by ASC 805. Significant Group of Concentrations of Credit Risk Most of the Corporation’s activities are with customers located within Pennsylvania, with a minor portion also occurring in New Jersey . "Note 3 - In vestment Securities" discusses the types of investment securities in which the Corporation invests. "Note 4 - L oans and Allowance for Credit Losses - Loans" discusses the types of lending that the Corporation engages in as well as loan concentrations. The Corporation does not have a significant concentration of credit risk with any one customer. Fair Value Measurements The Corporation uses estimates of fair value in applying various accounting standards for its consolidated financial statements on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. The Corporation groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. 72 MID PENN BANCORP, INC. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. It is the Corporation’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs in estimating fair value. Unobservable inputs are utilized in determining fair value estimates only to the extent that observable inputs are not available. The need to use unobservable inputs generally results from a lack of market liquidity and trading volume. Transfers between levels of fair value hierarchy are recorded at the end of the reporting period. Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days. Restrictions on Cash and Due from Bank Accounts The Bank is required by banking regulations to maintain certain minimum cash reserves. As of both December 31, 2025 and 2024, there was no cash reserve balances required to be maintained at the Federal Reserve Bank of Philadelphia because the Bank had sufficient vault cash available. Debt Investment Securities Mid Penn determines the classification of investment securities at the time of purchase. If Mid Penn has the intent and the ability at the time of purchase to hold debt securities until maturity, they are classified as held-to-maturity ("HTM"). HTM investment securities are stated at amortized cost. Debt securities Mid Penn does not intend to hold to maturity are classified as available-for-sale ("AFS") and carried at estimated fair value with unrealized gains or losses reported as a separate component of stockholders’ equity in accumulated other comprehensive income (loss), net of applicable income taxes. Available-for-sale securities are a part of Mid Penn’s asset/liability management strategy and may be sold in response to changes in interest rates, prepayment risk or other market factors. Management has elected to reclassify realized gains and losses out of accumulated other comprehensive income into earnings when securities are sold on the trade date. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts on debt securities are amortized as an adjustment to interest income over the period to maturity of the related security using the effective interest method. Realized gains or losses on the sale of securities are determined using the specific identification method. Mid Penn estimates its allowance for credit losses in accordance with ASC 326, which requires entities to measure expected credit losses over the contractual life of financial assets carried at amortized cost, including HTM securities, as well as certain off-balance sheet credit exposures. ASC 326 also provides a targeted impairment model for AFS debt securities. To comply with ASC 326, Mid Penn conducted a review of its investment portfolio and determined that for certain classes of securities it would be appropriate to assume the expected credit loss to be zero. This zero-credit loss assumption applies to debt issuances of the U.S. Treasury and agencies and instrumentalities of the United States government. The reasons behind the adoption of the zero-credit loss assumption are as follows: • High credit rating • Long history with no credit losses • Guaranteed by a sovereign entity • Widely recognized as a "risk-free rate" • Can print its own currency • Currency is routinely held by central banks, used in international commerce, and commonly viewed as reserve currency • Issued or supported by entities with explicit or implicit U.S. government backing 73 MID PENN BANCORP, INC. Mid Penn continuously monitors changes in economic conditions, credit ratings, and government guarantees, as well as any other relevant factors that could indicate potential credit deterioration and prompt Mid Penn to reconsider its zero-credit loss assumption. Mid Penn’s estimated allowance for credit losses on AFS and HTM securities under ASC 326 was deemed immaterial due to the composition of these portfolios. Both portfolios consist primarily of U.S. government agency guaranteed mortgage-backed securities for which the risk of loss is minimal. AFS Securities On a quarterly basis, Mid Penn evaluates whether any AFS security has a fair value less than its amortized cost. Once these securities are identified, to determine whether a decline in fair value resulted from a credit loss or other factors, Mid Penn performs further analysis as outlined below: • Review the extent to which the fair value is less than the amortized cost and consider the security’s lowest credit rating as reported by third-party credit ratings agencies. • Securities that exceed the credit loss triggers above are subject to additional analysis, which may include, but is not limited to, changes in market interest rates, changes in credit ratings, security type, service area economic conditions, the financial performance of the issuer and/or obligor, and third-party guarantees. • If Mid Penn determines that a credit loss exists, the credit loss component of the allowance is measured using a DCF analysis based on the effective interest rate as of the security’s purchase date. The amount of credit loss Mid Penn records will be limited to the amount by which the amortized cost exceeds the fair value. The DCF analysis utilizes contractual maturities, as well as third-party credit ratings and cumulative default rates published annually by a reputable third-party. As of December 31, 2025, the results of the analysis did not identify any securities that violate the credit loss triggers; therefore, no DCF analysis was performed, and no credit loss was recognized on any of the securities available for sale. Accrued interest receivable is excluded from the estimate of credit losses for AFS securities. As of December 31, 2025, accrued interest receivable totaled $ 1.8 million for AFS securities and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. HTM Securities As discussed above, ASC 326 requires institutions to measure expected credit losses on financial assets carried at amortized cost on a collective or pool basis when similar risks exist. Mid Penn uses several levels of segmentation to measure expected credit losses: • The portfolio is segmented into agency and non-agency securities. • The non-agency securities are separated into state and political subdivision obligations and corporate debt securities. Each individual segment is categorized by third-party credit ratings. As discussed above, Mid Penn has determined that, for certain classes of securities, it is appropriate to assume expected credit losses of zero, including debt issuances of the U.S. Treasury and agencies and instrumentalities of the United States government. This assumption is reviewed and attested to quarterly. As of December 31, 2025, Mid Penn’s HTM securities totaled $ 347.3 million. After applying appropriate probability of default and loss given default assumptions, the total amount of current expected credit losses was deemed immaterial. Accordingly, no allowance for credit losses was recorded on HTM securities as of December 31, 2025. Accrued interest receivable is excluded from the estimate of credit losses for HTM securities. As of December 31, 2025, accrued interest receivable totaled $ 1.5 million for HTM securities and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. 74 MID PENN BANCORP, INC. As of December 31, 2025, Mid Penn had no HTM securities that were past due 30 days or more as to principal or interest payments. Mid Penn had no HTM securities classified as nonaccrual as of December 31, 2025. Equity Securities The Corporation reports its equity securities with readily determinable fair values at fair value on the Consolidated Balance Sheet, with realized and unrealized gains and losses reported in other expense on the Consolidated Statements of Income. As of December 31, 2025 and 2024, Mid Penn’s equity securities consisted of Community Reinvestment Act funds totaling $ 5.4 million and $ 428 thousand, respectively. No equity securities were sold during the years ended December 31, 2025, 2024 and 2023. Federal Home Loan Bank ("FHLB") and Atlantic Community Bankers' Bank ("ACBB") Stock The Bank is a member of the FHLB and the ACBB and is required to maintain an investment in the stock of the FHLB and ACBB. No market exists for these stocks, and the Bank’s investment can be liquidated only through redemption by the FHLB or ACBB, at the discretion of and subject to conditions imposed by the FHLB and ACBB. Historically, FHLB and ACBB stock redemptions have been at cost (par value), which equals the Corporation’s carrying value. The Corporation monitors its investment in FHLB and ACBB stock for impairment through review of recent financial results of the FHLB and ACBB including capital adequacy and liquidity position, dividend payment history, redemption history and information from credit agencies. As of December 31, 2025, Management has not identified any indicators of impairment of its FHLB or ACBB stock. During the years ended December 31, 2025, 2024, and 2023 dividends received from the FHLB totaled $ 443 thousand, $ 1.3 million, and $ 864 thousand, respectively. Investment in Limited Partnership Mid Penn owns a limited partnership interest in a low-income housing project to construct thirty-seven apartments and common amenities in Dauphin County, Pennsylvania. The total investment in this limited partnership, net of amortization, was $ 2.9 million and $ 3.7 million on December 31, 2025 and December 31, 2024, respectively, and is included in other assets on the Consolidated Balance Sheet. All of the units qualified for Federal Low-Income Housing Tax Credits ("LIHTCs") as provided in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution commitment was $ 7.6 million, and the investment was fully funded over a three-year period beginning in 2018 and ending during the first quarter of 2021. The investment is reported in other assets on the Consolidated Balance Sheet and is being amortized over a ten-year period using the proportional amortization method, which began upon commencement of operations of the facility in December 2021. The project was formally awarded $ 8.5 million in total LIHTCs by the Pennsylvania Housing Finance Agency, which will be recognized over the ten-year period from December 2021 through November 2031. Mid Penn received low-income housing tax credits related to this project of $ 753 thousand for the tax years ended December 31, 2025, 2024, and 2023, respectively. Mid Penn’s maximum exposure to loss is limited to the carrying value of its investment. Mid Penn is a limited partner in a partnership that provides low-income housing in Mechanicsburg, Pennsylvania. The total investment in this limited partnership, net of amortization, was $ 9.0 million and $ 9.7 million as of December 31, 2025 and December 31, 2024, respectively, and is included in other assets on the Consolidated Balance Sheet. All of the units qualified for LIHTCs as provided in Section 42 of the Internal Revenue Code of 1986, as amended. The investment in the limited partnership is being amortized over a ten-year period using the proportional amortization method which began upon commencement of operations of the facility in December 2023. The project was formally awarded $ 12.0 million in total LIHTCs by the Pennsylvania Housing Finance Agency, which will be recognized over the ten-year period from December 2023 through November 2033. Mid Penn received low-income housing tax credits related to this project of $ 773 thousand for the tax year ended December 31, 2025, and $ 1.1 million for the tax year ended December 31, 2024, Mid Penn’s maximum exposure to loss is limited to the carrying value of its investment. Mid Penn owns a limited partnership interest in a low-income housing project to construct/rehabilitate seventeen apartments and two commercial shops in Schuylkill County, Pennsylvania. The total investment in this limited partnership, net of amortization, was $ 2.7 million and $ 3.1 million on December 31, 2025 and December 31, 2024, respectively, and is included in the other assets on the Consolidated Balance Sheet. All of the units qualified for LIHTCs as provided in Section 42 of the Internal Revenue Code of 1986, as amended. Mid Penn’s limited partner capital contribution commitment was $ 4.4 million, and the investment was fully funded over a three-year period beginning in 2020 and ending during the first quarter of 2023. The investment in the limited partnership is reported in other assets on the Consolidated Balance Sheet and is being amortized over a 10-year period using the proportional amortization method which began upon commencement of 75 MID PENN BANCORP, INC. operations of the facility in 2023. The project was formally awarded $ 4.8 million in total LIHTCs by the Pennsylvania Housing Finance Agency, which will be recognized over the ten-year period from December 2023 through November 2033. Mid Penn received low-income housing tax credits related to this project of $ 442 thousand and $ 484 thousand for the tax years ended December 31, 2025, and 2024, respectively. Mid Penn’s maximum exposure to loss is limited to the carrying value of its investment. Loans Held-for-Sale The Corporation has elected to measure mortgage loans held-for-sale at fair value. Derivative financial instruments related to mortgage banking activities are also recorded at fair value, as detailed under the heading "Mortgage Banking Derivative Financial Instruments," below. The Corporation determines fair value for its mortgage loans held-for-sale based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Changes in fair values during the period are recorded as components of mortgage banking income on the Consolidated Statements of Income. Interest income earned on mortgage loans held-for-sale is classified in interest income on the Consolidated Statements of Income. Loans Loans that management has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances, net of an allowance for credit losses, unamortized deferred fees and costs and unamortized premiums or discounts. The net amount of nonrefundable loan origination fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using methods which approximate the level yield method. Discounts and premiums are amortized or accreted to interest income over the estimated term of the loans using methods that approximate the level yield method. Interest income on loans is accrued based on the unpaid principal balance outstanding and the contractual terms of the loan agreements. A substantial portion of the loan portfolio is comprised of commercial and real estate loans throughout Pennsylvania with a minor portion in New Jersey. The ability of the Corporation’s debtors to honor their contracts is dependent upon the general economic conditions of these areas. The loan portfolio is segmented into commercial real estate loans, commercial and industrial loans, construction loans, residential mortgage loans, and consumer loans. Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to repay the loan through operating profitably and effectively growing its business. The Corporation’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the credit quality and cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee to add strength to the credit and reduce the risk on a transaction to an acceptable level; however, some short-term loans may be made on an unsecured basis to the most credit worthy borrowers. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. With respect to loans to developers and builders, the Corporation generally requires the borrower to have a proven record of success and an expertise in the building industry. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. The Corporation’s non-real estate consumer loans are based on the borrower’s proven earning capacity over the term of the loan. The Corporation monitors payment performance periodically for consumer loans to identify any deterioration in the borrower’s financial strength. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by management and staff. This activity, coupled with a relatively small volume of consumer loans, helps to mitigate risk. 76 MID PENN BANCORP, INC. Acquired Loans At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as purchased credit deteriorated ("PCD") loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans equals the purchase price plus and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans does not impact on net income at the acquisition date. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool based on the relative amortized cost basis. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the provision for credit losses ("PCL"). Loans acquired that do not meet the criteria for PCD are recorded at fair value at the acquisition date. These loans are subsequently evaluated for expected credit losses in accordance with the Corporation's allowance for credit losses methodology, with changes recognized through the provision for credit losses. Any remaining purchase discounts or premiums are accreted (or amortized) over the contractual life of the individual loan. Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off. Loans acquired in the William Penn Acquisition, included in loans, net of unearned interest, on the Consolidated Balance Sheets as of December 31, 2025 totaled $ 405.3 million. There were no loan acquisitions for the year ended December 31, 2024. Nonaccrual Loans The Corporation classifies loans as past due when the payment of principal or interest is 30 days delinquent or greater, based on the contractual next payment due date. The Corporation’s policies related to when loans are placed on nonaccrual status conform to guidelines prescribed by regulatory authorities. Loans are generally placed on nonaccrual status when management determines that principal or interest is not fully collectible, or when principal or interest becomes 90 days past due, whichever occurs first. When loans are placed on nonaccrual status, interest receivable is reversed against interest income in the current period and amortization of any discount ceases. Interest payments received thereafter are applied as a reduction to the remaining principal balance unless management believes that the ultimate collection of the principal is likely, in which case payments are recognized in earnings on a cash basis. Loans are removed from nonaccrual status when they become current as to both principal and interest and the collectability of principal and interest is no longer doubtful. Generally, a nonaccrual loan that is restructured remains on nonaccrual for a reasonable period of time (generally, at least six consecutive months) to demonstrate the borrower can meet the restructured terms. However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan remains classified as a nonaccrual loan. Modifications to Borrowers Experiencing Financial Difficulty From time to time, the Corporation may modify certain loans to borrowers experiencing financial difficulty. Such modifications may include principal forgiveness, interest rate reductions, payment deferrals, term extensions, or combinations thereof. Loan modifications to borrowers experiencing financial difficulty are evaluated in accordance with applicable accounting guidance and may result in the recognition of new loans. Allowance for Credit Losses Mid Penn’s ACL - loans methodology is based upon guidance within FASB ASC Subtopic 326-20. Management also considers regulatory guidance issued by its primary federal regulator. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The 77 MID PENN BANCORP, INC. ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the provision for credit losses and reduced by the charge off of loan amounts, net of recoveries. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on historical loss experience, delinquency trends and other relevant credit risk characteristics, adjusted for current conditions and reasonable and supportable forecasts. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance involves significant judgment by management and requires consideration of factors that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense. Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to assist in calculating the quantitative portion of the ACL; however, management is responsible for the selection of methodologies, assumptions, and the resulting allowance estimate. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and peer group divergence. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit. The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers may be more susceptible to downturns in economic trends, including declines in housing prices and increases in unemployment. Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for its loan pools. The DCF methodology incorporates historical loss experience, including relevant peer data, adjusted for current conditions and reasonable and supportable forecasts that consider macroeconomic variables such as national unemployment and GDP. 78 MID PENN BANCORP, INC. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s effective interest rate to arrive at the discounted cash flow based quantitative loss estimate. The prepayment studies are updated quarterly by a third-party for each applicable pool. Mid Penn determined that reasonable and supportable forecasts could be developed for a twelve-month period for its loans held-for-investment (LHFI) portfolio. To the extent that the contractual lives of the loans extend beyond this forecast period, Mid Penn applies a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. Qualitative factors used in the ACL methodology include the following: • Changes in lending policies, procedures, and underwriting standards • Changes in portfolio composition and concentrations of credit • Peer group trends and divergence The ACL for individual loans, such as nonaccrual and PCD, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for estimated costs to sell, when repayment is expected to be provided substantially through the sale of the collateral. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as-is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions are necessitated. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Appraisal Review Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off. Loans are charged off against the allowance for credit losses on loans, with any subsequent recoveries credited back to the allowance. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off. Premises and Equipment Land is carried at cost. Buildings, furniture, fixtures, equipment, land improvements, and leasehold improvements are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Building assets are depreciated using an estimated useful life of five to fifty years . Furniture, fixtures, and equipment are depreciated using an estimated useful life of three to ten years . Land improvements are depreciated over an estimated useful life of ten to twenty years . Leasehold improvements are depreciated using an estimated useful life that is the lesser of the remaining life of the lease or ten to fifteen years . Maintenance and normal repairs are charged to expense when incurred, while major additions and improvements are capitalized. Gains and losses on disposals are reflected in current operations . The Corporation reviews the carrying value of long-lived assets and certain identifiable intangibles for impairment whenever events and changes in circumstances indicate that the carrying amount of an asset may not be recoverable, as prescribed by ASC Topic 360, "Accounting for the Impairment or Disposal of Long-Lived Assets". Bank Premises and Equipment Held-For-Sale Bank premises and equipment designated as held-for-sale are included in Other Assets on the Balance Sheet and are carried at the lower of cost or market value, and totaled $ 475 thousand and $ 702 thousand as of December 31, 2025 and 2024, 79 MID PENN BANCORP, INC. respectively. The $ 228 thousand decrease in balance as of December 31, 2025 related to the writedown of one property in 2025. As of December 31, 2025, one property remained for sale. Foreclosed Assets Held-for-Sale Real estate properties acquired through, or in lieu of, loan foreclosure are initially recorded at their fair value less estimated disposition costs. When such assets are acquired, any shortfall between the loan carrying value and the estimated fair value of the underlying collateral less disposition costs is recorded as an adjustment to the allowance for loan losses while any excess is recognized in income. The Corporation periodically performs a valuation of the property held; any excess of carrying value over fair value less disposition costs is charged to earnings as impairment. Routine maintenance and real estate taxes are expensed as incurred. Bank-Owned Life Insurance ("BOLI") Mid Penn is the owner and beneficiary of BOLI policies on current and former Mid Penn directors, as well as BOLI policies acquired through the Phoenix, First Priority, Riverview, Brunswick, and William Penn acquisitions covering certain former Miners Bank, First Priority, Riverview, Brunswick, and William Penn employees. These policies are recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement, if applicable. Increases in the cash surrender value of these policies are included in noninterest income in the Consolidated Statements of Income. The Corporation's BOLI policies are invested in general account and hybrid account products that have been underwritten by highly-rated third party insurance carriers. Mid Penn is also party to certain Split-Dollar Life Insurance Arrangements, and in accordance with GAAP, has accrued a liability related to the postretirement benefit under endorsement split-dollar life insurance arrangements, as well as a liability for the future death benefit obligation. Goodwill and Other Intangible Assets Goodwill represents the excess of the purchase price over the underlying fair value of merged entities. We assess goodwill for impairment annually as of October 31 of each year. The Corporation has one reporting unit, community banking, which includes the Bank, its wholly-owned banking subsidiary. If certain events occur which indicate goodwill might be impaired between annual tests, goodwill must be tested when such events occur. In making this assessment, we use the widely accepted valuation techniques, including the public company market change of control approach and the peer group change of control approach, to determine the fair valuation of the reporting unit. Both approaches include earnings and price-to-tangible book value multiples of comparable public companies, which are applied to the earnings and equity of the reporting unit. The projected tangible book value ("TBV") multiple serves as an indicator of whether the market price or perceived value of the Corporation's tangible assets exceeds its book value. In 2025, the Corporation applied a control premium based on its review of observable transactions and comparable marketplace data. Several factors are considered, such as operating results, business plans, economic projections, anticipated future cash flows, current market data, etc. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. Changes in economic and operating conditions could result in goodwill impairment in future periods. The Corporation did not identify any impairment on its outstanding goodwill from its most recent testing, which was performed as of October 31, 2025. Core deposit intangible ("CDI") is a measure of the value of checking and savings deposits acquired in business combinations. The fair value of the CDI stemming from any given business combination is based on the present value of the expected cost savings attributable to the core deposit funding relative to an alternative source of funding. CDI is amortized over the estimated useful lives of the existing deposit relationships acquired, but does not exceed ten years . Significantly all CDI is amortized using the sum-of-the-years'-digits method. Customer list intangibles are a measure of the inherent value of certain customer arrangements acquired in business combinations. The fair value of the customer list is based on the income approach which employs a present value analysis, which calculates the expected after-tax cash flow benefits of the net revenues generated by the acquired customers over the expected life of the acquired customers, discounted at a long-term market-oriented after-tax rate of return on investment. The value assigned to the acquired customers represents the future economic benefit from acquiring the customers (net of 80 MID PENN BANCORP, INC. operating expenses). The customer list is amortized over a 10 to 20-year projection period, a sufficient time to capture the economic value of the customer list given an assumed customer attrition rate. The Corporation evaluates such identifiable intangibles for impairment when events and circumstances indicate that its carrying amount may not be recoverable. If an impairment loss is determined to exist, the loss is reflected as an impairment charge in the Consolidated Statements of Income for the period in which such impairment is identified. No impairment charges were required for the years ended December 31, 2025, 2024, or 2023. Leases Mid Penn leases certain premises and equipment and recognizes a right-of-use ("ROU") asset and a related lease liability for each distinct lease agreement. The lease ROU asset consists of the amount of the initial measurement of the lease liability, adjusted for any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, and any initial direct costs incurred by the lessee (defined as costs of a lease that would not have been incurred had the lease not been executed). The related lease liability is equal to the present value of the future lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the lessee’s incremental borrowing rate). Given that the rate implicit in the lease is rarely available, all lease liability amounts are calculated using Mid Penn’s incremental borrowing rate at lease inception, on a collateralized basis, for a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used. Operating and finance lease ROU assets, as well as operating lease liabilities, are presented as separate line items on the Consolidated Balance Sheet, while finance lease liabilities are classified as a component of long-term debt . Operating lease expense, recognized as a component of occupancy expense on the Consolidated Statements of Income, consists of a single lease cost calculated so that the remaining cost of the lease is allocated over the remaining lease term on a straight-line basis. Operating lease expense also includes variable lease payments not included in the lease liability and any impairment of the ROU asset. Finance lease expense consists of the amortization of the ROU asset, recognized as a component of occupancy expense and interest expense on the lease liability, which is recorded as a component of other interest expense, both on the Consolidated Statements of Income. In assessing whether a contract contains a lease, Mid Penn reviews third-party agreements to determine if the contract conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration, and grants Mid Penn the right to both obtain substantially all of the economic benefits from the identified asset’s use and the direct the use of the identified asset throughout the term of the agreement. Upon identification that a lease agreement exists, Mid Penn performs an assessment of the consideration to be paid related to the identified asset and quantifies both the lease components, consisting of consideration paid to transfer a good or service to Mid Penn and non-lease components, consisting of consideration paid for distinct elements of the contract that are not related to securing the use of the leased asset, such as property taxes, common area maintenance, utilities, and insurance. Many of Mid Penn’s lease agreements include options to extend or renew contracts subsequent to the expiration of the initial lease term. Additionally, for leases that contain escalation clauses related to consumer or other price indices, Mid Penn includes the known lease payment amount as of the commencement date in the calculation of ROU assets and related lease liabilities. Subsequent increases in rental payments over the known amount at the commencement date due to increase in the indices will be expensed as incurred. None of Mid Penn’s lease agreements include residual value guarantees or material variable lease payments. Mid Penn does not have material restrictions or covenants imposed by leases that would impact Mid Penn’s ability to pay dividends or cause Mid Penn to incur additional financial obligations. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes changes in unrealized gains and losses on securities available-for-sale arising during the period and reclassification adjustments for realized gains and losses on securities available-for-sale included in net income. Mid Penn has an unfunded noncontributory defined benefit plan for directors and other postretirement benefit plans covering full-time employees. These plans utilize assumptions and methods to calculate the fair value of plan assets and recognizing the 81 MID PENN BANCORP, INC. overfunded and underfunded status of the plans on its Consolidated Balance Sheet. Gains and losses, prior service costs and credits are recognized in other comprehensive income (loss), net of tax, until they are amortized, or immediately upon curtailment. Trust and Wealth Management Assets and Income Assets held by the Bank in a fiduciary or agency capacity for customers of the Bank's Trust and Wealth Management departments of the Bank are not included in the Consolidated Financial Statements since such items are not assets of the Bank. Assets under management totaled $ 1.0 billion as of December 31, 2025, Trust and wealth income is generally recognized as earned, which is not materially different from recognition on accrual basis. Revenue Recognition Mid Penn recognizes revenue when earned based upon contractual terms, as transactions occur, or as related services are provided, and collectability is reasonably assured. The largest source of revenue for Mid Penn is interest income. Noninterest income is earned from various banking and financial services that Mid Penn offers through its subsidiaries. In certain circumstances, noninterest income is reported net of associated expenses. Following is further detail on the various types of noninterest income Mid Penn earns and when it recognized: Interest Income - primarily recognized on an accrual basis according to loan agreements, investment securities contracts or other such written contracts. Income from Fiduciary and Wealth Management Activities - consists of trust, wealth management, and investment management fee income, brokerage transaction fee income, and estate fee income. Trust, wealth management, and investment management fee income consists of advisory fees that are typically based on market values of clients’ managed portfolios and transaction fees for fiduciary services performed, both of which are recognized as earned. Brokerage transaction fee income includes advisory fees, which are recognized as earned on a monthly basis and transaction fees that are recognized when transactions occur. Payment is typically received in the following month. Estate fee income is recognized as services are performed over the service period, generally eighteen months. ATM Debit Card Interchange Income - consists of interchange fees earned when Mid Penn’s debit cards are processed through card payments networks. The interchange fee is calculated as a percentage of the total electronic funds transfer ("EFT") transaction plus a per-transaction fee, which varies based on the type of card used, the method used to process the EFT transaction, and the type of business at which the transaction was processed. Revenue is recognized daily as transactions occur and interchange fees are subsequently processed. Payment for interchange activity is received primarily daily, while some fees are aggregated and payment is received in the following month. Service Charges on Deposits - consists of cash management, overdraft, non-sufficient fund fees and other service charges on deposit accounts. Revenue is primarily transactional and recognized when earned, which is at the time the respective initiating transaction occurs, and the related service charge is subsequently processed. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to the customers’ accounts. Mortgage Banking Income - consists of gains or losses on the sale of residential mortgage loans and is recognized when the sale is completed. Mortgage Hedging Income - relates to the changes in fair value of interest rate locks, forward mortgage loan sales commitments and hedging instruments on forward sales commitments. Other Income - includes credit card royalties, check orders, letter of credit fees and merchant services income. These fees are primarily transactional, and revenue is recognized when transactions occur, and the related services are subsequently processed. Payment is primarily received immediately or in the following month. Mid Penn does not exercise significant judgment in the recognition of income, as income is generally not recognized until the related performance obligation has been satisfied. 82 MID PENN BANCORP, INC. Derivative Financial Instruments Loan-level Interest Rate Swaps The Corporation offers certain derivative products directly to qualified commercial lending clients seeking to manage their interest rate risk. The Corporation economically hedges interest rate swap transactions to execute with commercial lending clients by entering into offsetting interest rate swap transactions with institutional derivatives market participants. Derivative transactions executed as part of this program are not designed as qualifying hedging relationships and are, therefore, carried at fair value with the change in fair value recorded as noninterest income. Because these derivatives generally have mirror-image contractual terms, in addition to collateral provisions which mitigate the impact of non-performance risk, the changes in fair value are expected to substantially offset. Cash Flow Hedges of Interest Rate Risk Mid Penn’s objectives in using interest rate derivatives are to reduce volatility in net interest income and to manage its exposure to interest rate movements. To accomplish this objective, Mid Penn primarily uses interest rate swaps as part of its interest rate risk management strategy. Beginning in the first quarter of 2023, Mid Penn entered into interest rate swaps designated as cash flow hedges to hedge the cash flows associated with existing brokered CDs. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the unrealized gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest income in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are made on the hedged liabilities. Mortgage Banking Derivative Financial Instruments In connection with its mortgage banking activities, Mid Penn entered into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, Mid Penn entered into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held-for-sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock was based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Income Taxes Income tax expense is determined using the asset and liability method and consists of income taxes that are currently payable and deferred income taxes. Deferred income tax expense (benefit) is determined by recognizing deferred tax assets and liabilities for future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in years in which those temporary differences are expected to be recovered or settled. Changes in tax rates on deferred tax assets and liabilities are recognized in income in the period that includes the enactment date. A valuation allowance is established for deferred tax assets when management determines that it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. In making such determinations, the Corporation considers all available positive and negative evidence that may impact the realization of deferred tax assets. These considerations include future reversals of existing taxable temporary differences, projected future taxable income, and available tax planning strategies. The Corporation files a consolidated federal income tax return including the results of its wholly-owned subsidiaries. The Corporation estimates income taxes payable based on the amount it expects to owe the various tax authorities (i.e., federal and state). Income taxes represent the net estimated amount due to, or to be received from, such tax authorities. In estimating income taxes, management assesses the relative merits and risks of the appropriate tax treatment of transactions, taking into account statutory, judicial, and regulatory guidance in the context of the Corporation’s tax position. Although the Corporation uses the best available information to record income taxes, underlying estimates and assumptions can 83 MID PENN BANCORP, INC. change over time as a result of unanticipated events or circumstances such as changes in tax laws and judicial guidance influencing its overall tax position. An uncertain tax position is recognized only if it is more-likely-than-not to be sustained upon examination, including resolution of any related appeals or litigation process, based on the technical merits of the position. The amount of tax benefit recognized in the financial statements is the largest amount of benefit that is more than fifty percent likely to be sustained upon ultimate settlement of the uncertain tax position. If the initial assessment fails to result in recognition of a tax benefit, the Corporation subsequently recognizes a tax benefit if there are changes in tax law or case law that raise the likelihood of prevailing on the technical merits of the position to more-likely-than-not, the statute of limitations expires, or there is a completion of an examination resulting in a settlement of that tax year or position with the appropriate agency. The Corporation’s policy is to classify interest and penalties associated with income taxes within other expenses. The Corporation is subject to routine audits by taxing jurisdictions; however, there are currently no audits in progress for any tax periods. Management believes it is no longer subject to income tax examinations for years prior to 2022. The adoption of ASU 2023-09 did not impact the Corporation's accounting for income taxes, but expanded certain income tax disclosure requirements. See Note 16 - Income Taxes for additional information, including the disclosures related to the adoption of ASU 2023-09. Off-Balance Sheet Arrangements The Corporation enters into contractual loan commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Since a portion of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Substantially all of the commitments to extend credit are contingent upon customers maintaining specific credit standards until the time of loan funding. The Corporation decreases its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Standby letters of credit are written conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Corporation would be required to fund the commitment. The maximum potential amount of future payments the Corporation could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, the Corporation would be entitled to seek recovery from the customer. The Corporation’s policies generally require that standby letter of credit arrangements contain security and debt covenants similar to those contained in loan agreements. Earnings per Common Share The Corporation presents basic and diluted earnings per common share ("EPS") data for its common stock. Basic EPS is calculated by dividing the net income attributable to shareholders of the Corporation by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to shareholders and the weighted-average number of shares of common stock outstanding adjusted for the effects of all dilutive potential common shares, including those arising from stock-based compensation awards such as restricted stock and stock options, using the treasury stock method. Treasury Stock Common stock held in treasury is accounted for using the cost method, which treats stock held in treasury as a reduction to total stockholders’ equity. The shares may be purchased in the open market or in privately negotiated transactions from 84 MID PENN BANCORP, INC. time to time depending upon the market conditions and other factors over a one-year period or such longer period of time as may be necessary to complete such repurchases. Recent Accounting Pronouncements Accounting Standards Adopted in 2025 ASU 2023-09 : The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. ASU 2023-09 amends the ASC to enhance income tax disclosures by requiring entities to disclose income taxes paid (net of refunds received) disaggregated by federal, state and foreign taxes. Additionally, entities are required to disclose amounts greater than 5% of the total income taxes paid to an individual jurisdiction. The Company adopted this standard on a prospective basis in 2025. Prior period amounts were not adjusted. Adoption did not have a material impact on the Company's consolidated financial statements. ASU 2024-02 : The FASB issued ASU 2024-02, Codification Improvements—Amendments to Remove References to the Concepts Statements. This ASU contains amendments to the Codification that remove references to various FASB Concepts Statements. The Company adopted this standard in 2025. Adoption did not have a material impact on the Company's consolidated financial statements. Accounting Standa rds Pending Adoption ASU 2023-06: The FASB issued ASU 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative . ASU 2023-06 amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. ASU 2023-06 is not expected to have a significant impact on our financial statements. ASU 2024-03 : The FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses The amendments in the ASU improve financial reporting by requiring that public business entities disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. ASU 2024-03 is not expected to have a significant impact on the Corporation's financial statements. ASU 2024-04: The FASB issued ASU - 2024-04, Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments The amendments in the ASU clarify the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in the ASU are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in ASU2020-06. ASU 2024-04 is not expected to have a significant impact on the Corporation's financial statements. ASU 2025-01 - The FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date The amendments in the ASU clarify the effective date of ASU 2024-03 which requires public business entities to disclose additional information about specific expense categories in the notes to financial statements at interim and annual reporting periods. The amendments in the ASU are effective for the first annual reporting period beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. ASU 2025-01 is not expected to have a significant impact on the Corporation's financial statements. 85 MID PENN BANCORP, INC. ASU 2025-06 - The FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software The amendments in this ASU apply to all entities subject to the internal-use software guidance in Subtopic 350-40. The amendments also apply to all entities that account for website development costs in accordance with Subtopic 350-50, Intangibles—Goodwill and Other—Website Development Costs. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. ASU 2025-06 is not expected to have a significant impact on the Corporation's financial statements. ASU 2025-08 - The FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans The amendments in this ASU apply to all entities subject to the guidance in Topic 326, including public business entities, private companies, and not-for-profit entities. The amendments in this ASU are effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The amendments in this ASU should be applied prospectively to loans that are acquired on or after the initial application date. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating the impact of this guidance on its consolidated financial statements. While the adoption of this ASU is not expected to have a material impact on the Company's existing loan portfolio, it may impact the accounting for future loan acquisitions and business acquisitions. ASU 2025-09 - The FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements The amendments in this ASU refine hedge accounting guidance to better align accounting with risk management strategies. The amendments are effective for fiscal years beginning after December 15, 2026, including interim periods therein. Early adoption is permitted. ASU 2025-09 is not expected to have a significant impact on the Corporation's financial statements. ASU 2025-11 - The FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow Scope Improvements The amendments in this ASU clarify and improve guidance on interim financial statements and disclosures. The amendments will be effective for interim reporting periods within annual periods beginning after December 15, 2027, for public business entities. Early adoption is permitted. The Company is evaluating the effects of the ASU and does not expect adoption to have a material impact on its consolidated financial statements. ASU 2025-12 - The FASB issued ASU 2025-12, Codification Improvements The amendments in this ASU clarify and correct existing guidance in the Accounting Standards Codification. The amendments are effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. ASU 2025-12 is not expected to have a significant impact on the Corporation's consolidated financial statements. Management does not expect the adoption of any other recently issued accounting standards to have a material impact on the Corporation's consolidated financial statements. 86 MID PENN BANCORP, INC. Note 2 - Business Combinations Commonwealth Benefits Group Acquisition On July 31, 2024, Mid Penn acquired the insurance business and related accounts of a full-service employee benefits firm that serves mid to large employers across central and eastern Pennsylvania, northern Maryland, and northern Virginia, for a purchase price of $ 2.0 million at closing and an additional $ 800 thousand potentially payable pursuant to a three-year earnout. Mid Penn has recognized total goodwill of $ 1.1 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed compared to the fair value of identifiable assets acquired. Mid Penn incurred expenses related to the Commonwealth Benefits Group acquisition of $ 545 thousand for the year ended December 31, 2024, which is included in noninterest expense in the Consolidated Statements of Income. Charis Insurance Group, Inc. Acquisition On May 12, 2025, Mid Penn acquired the insurance business and related accounts of Charis Insurance Group, Inc. (Charis Insurance Group), which provides business, home and auto insurance throughout central and southern Pennsylvania, for a cash purchase price of $ 4.0 million. Mid Penn has recognized total goodwill of $ 1.6 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed compared to the fair value of identifiable assets acquired. Mid Penn incurred expenses related to the Charis Insurance Group acquisition of $ 164 thousand for the year ended December 31, 2025, which is included in noninterest expense in the Consolidated Statements of Income. William Penn Acquisition On April 30, 2025, Mid Penn completed its acquisition of 100 % of the outstanding shares of William Penn through the merger of William Penn with and into Mid Penn. This transaction included the acquisition of 12 branches, further expanding Mid Penn's presence in the Philadelphia region and surrounding counties in Pennsylvania and New Jersey. The merger was an all-stock transaction valued at approximately $ 103.2 million, based on Mid Penn's common stock closing price of $ 29.05 on April 30, 2025. Each share of William Penn common stock issued and outstanding as of April 30, 2025, was converted into 0.426 shares of Mid Penn common stock. As a result of the acquisition, Mid Penn issued 3,506,795 shares of Mid Penn common stock as consideration for the $ 103.2 million purchase price. The Corporation also granted replacement awards for 538,447 stock options, with a fair value of $ 3.1 million to continuing employees of William Penn. Of this amount, $ 1.3 million related to pre-combination vesting and was included in purchase price consideration, and $ 1.8 million related to post-combination vesting and will be recognized as expense of the combined company over the remaining vesting period. Mid Penn has recognized total goodwill of $ 6.9 million, and a core deposit intangible asset of $ 9.0 million as a result of this acquisition. This is calculated as the excess of both the consideration exchanged and liabilities assumed compared to the fair value of identifiable assets acquired. Goodwill is primarily comprised of expected synergies and an assembled workforce. Goodwill is not deductible for income tax purposes. Mid Penn incurred merger-related expenses related to the William Penn Acquisition of $ 10.1 million for the year ended December 31, 2025, respectively, which is included in noninterest expense in the Consolidated Statements of Income. Purchased loans and leases that reflect a more-than-insignificant deterioration of credit from origination are considered PCD. Mid Penn considers various factors in connection with the identification of more-than-insignificant deterioration in credit, including but not limited to nonperforming status, delinquency, risk ratings, FICO scores and other qualitative factors that indicate deterioration in credit quality since origination. For PCD loans and leases, the initial estimate of expected credit losses is recognized in the ACL on the date of acquisition using the same methodology as other loans and leases held-for-investment. 87 MID PENN BANCORP, INC. As part of the William Penn Acquisition, Mid Penn acquired non-PCD and PCD loans and leases of $ 355.5 million and $ 49.8 million, respectively. The initial provision expense for non-PCD loans associated with the William Penn Acquisition was $ 2.3 million. The non-credit discount on the PCD loans and leases was $ 15 thousand and the Day 1 fair value adjustment was $ 343 thousand. Estimated fair values of the assets acquired and liabilities assumed in the William Penn Acquisition as of the closing date are as follows: (In thousands) Assets acquired: Cash and cash equivalents $ 41,404 Federal funds sold 553 Investment securities 186,564 Loans 405,271 Core deposit intangible 9,002 Premises and equipment 6,858 Operating lease right-of-use asset 6,340 Cash surrender value of life insurance 42,928 Deferred income taxes 15,399 Accrued interest receivable 2,271 Other assets 9,947 Total assets acquired $ 726,537 Liabilities assumed: Deposits: Noninterest-bearing demand $ 61,677 Interest-bearing demand 121,522 Money market 178,285 Savings 76,983 Time 181,293 Operating lease liability 6,340 Accrued interest payable 29 Other liabilities 4,052 Total liabilities assumed $ 630,181 Consideration transferred $ 103,213 Fair value of common stock issued 103,206 Cash paid in lieu of fractional shares 7 Total $ 103,213 Reconciliation to consideration transferred: Total assets acquired 726,537 Total liabilities assumed 630,181 Net assets acquired 96,356 Goodwill 6,857 Consideration transferred $ 103,213 88 MID PENN BANCORP, INC. The fair values of assets acquired and liabilities assumed are based on preliminary estimates and, as permitted under GAAP, Mid Penn has up to twelve months following the date of the merger to finalize the fair values of the acquired assets and assumed liabilities related to the merger. During the year ended December 31, 2025, the Company recorded measurement period adjustments related primarily to income taxes, resulting in a decrease to goodwill of $ 1.1 million. The Company remains within the one-year measurement period as of December 31, 2025. From the acquisition date of April 30, 2025 through December 31, 2025, William Penn contributed approximately $ 14.2 million of total revenue and $ 653 thousand of net income to Mid Penn's consolidated results for the year ended December 31, 2025. The following supplemental unaudited pro forma information presents certain financial results for the year ended December 31, 2025 and 2024 as if the merger of William Penn was effective as of January 1, 2024. The supplemental unaudited pro forma financial information included in the table below is based on various estimates and is presented for informational purposes only and does not indicate the results of operations of the combined company that would have been achieved for the periods presented had the transaction been completed as of the date indicated or that may be achieved in the future. (Unaudited) (In thousands) Year Ended December 31, 2025 2024 Net interest income after provision for credit losses - loans $ 206,082 $ 172,535 Noninterest income 27,977 25,476 Noninterest expense 152,449 139,678 Net income $ 56,676 $ 48,229 1st Colonial Acquisition On September 24, 2025, Mid Penn entered into a Merger Agreement with 1st Colonial, in a cash and stock deal valued at nearly $ 101 million. On February 27, 2026, Mid Penn completed its acquisition of 1st Colonial. At the effective time of the Merger, 1st Colonial merged with and into Mid Penn with Mid Penn surviving the Merger. Promptly following the Merger, 1st Colonial Community Bank, 1st Colonial's wholly owned bank subsidiary, merged with and into the Bank with the Bank surviving. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, each share of 1st Colonial's common stock, par value $ 0.0 per share, issued and outstanding immediately prior to the effective time of the Merger, was converted into the right to receive, at the election of the holder of such shares of 1st Colonial common stock, and subject to adjustment and proration as described in the Merger Agreement, either (a) 0.6945 of a share of Mid Penn common stock and cash in lieu of fractional shares or (b) $ 18.50 in cash. Cumberland Advisors Acquisition On September 25, 2025, Mid Penn entered into an agreement to acquire Cumberland Advisors, Inc., a registered investment advisory firm, for a purchase price at closing of $ 5.5 million, and the acquisition was completed on January 1, 2026. Seventy percent of the purchase price was paid in Mid Penn common stock, with the remaining balance paid in cash. The agreement also provides for a potential additional cash payment by Mid Penn of up to $ 1.0 million pursuant to an earn-out arrangement, as well as the issuance of approximately 300,000 stock appreciation rights having a maximum aggregate value of $ 1.2 million. 89 MID PENN BANCORP, INC. Note 3 - Investment Securities AFS Securities As of December 31, 2025, the fair value of AFS securities totaled $ 416.3 million. As of December 31, 2025, no securities were identified that violated credit loss triggers; therefore, no discounted cash flow analysis was required. As of December 31, 2025, the Corporation recorded no allowance for credit losses on any available-for-sale debt securities. Accrued interest receivable is excluded from the estimate of credit losses for AFS securities. As of December 31, 2025, accrued interest receivable totaled $ 1.8 million for AFS securities, and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. HTM Securities As of December 31, 2025, Mid Penn’s HTM securities totaled $ 347.3 million. The Corporation primarily held highly rated HTM securities, including taxable and tax-exempt securities issued mainly by the U.S government, state governments, and political subdivisions. As of December 31, 2025, the majority of Mid Penn's HTM securities were rated as A1/BBB by Moody's and/or Standard & Poor's ratings services. Credit ratings of HTM securities, which are a key factor in estimating expected credit losses, are reviewed on a quarterly basis. Management has the intent and ability to hold these securities to maturity. As of December 31, 2025, there were no HTM securities that were past due 30 days or more as to principal or interest payments. Additionally, Mid Penn had no HTM securities classified as nonaccrual as of December 31, 2025. As of December 31, 2025, the Corporation recorded no allowance for credit losses on any held-to-maturity debt securities. Accrued interest receivable is excluded from the estimate of credit losses for HTM securities. As of December 31, 2025, accrued interest receivable totaled $ 1.5 million for HTM securities and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. The following tables set forth the amortized cost and estimated fair value of investment securities for the periods presented: December 31, 2025 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale U.S. Treasury and U.S. government agencies $ 19,446 $ — $ 380 $ 19,066 Mortgage-backed U.S. government agencies 361,109 3,788 11,500 353,397 State and political subdivision obligations 4,319 — 485 3,834 Corporate debt securities 41,638 249 1,870 40,017 Total available-for-sale debt securities $ 426,512 $ 4,037 $ 14,235 $ 416,314 Held-to-maturity U.S. Treasury and U.S. government agencies $ 231,980 $ — $ 16,566 $ 215,414 Mortgage-backed U.S. government agencies 32,418 4 3,747 28,675 State and political subdivision obligations 67,441 12 4,043 63,410 Corporate debt securities 15,446 — 1,243 14,203 Total held-to-maturity debt securities 347,285 16 25,599 321,702 Total $ 773,797 $ 4,053 $ 39,834 $ 738,016 90 MID PENN BANCORP, INC. December 31, 2024 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale U.S. Treasury and U.S. government agencies $ 22,247 $ — $ 740 $ 21,507 Mortgage-backed U.S. government agencies 222,464 11 19,531 202,944 State and political subdivision obligations 4,309 — 713 3,596 Corporate debt securities 35,750 — 3,320 32,430 Total available-for-sale debt securities $ 284,770 $ 11 $ 24,304 $ 260,477 Held-to-maturity U.S. Treasury and U.S. government agencies $ 241,941 $ — $ 28,133 $ 213,808 Mortgage-backed U.S. government agencies 37,593 — 5,508 32,085 State and political subdivision obligations 77,462 — 6,840 70,622 Corporate debt securities 25,451 — 1,318 24,133 Total held-to-maturity debt securities 382,447 — 41,799 340,648 Total $ 667,217 $ 11 $ 66,103 $ 601,125 Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of instruments of a similar type, credit quality and structure, adjusted for differences between the quoted instruments and the instruments being valued. See "Note 13 - Fair Value Measurement," for additional information. Investment securities having a fair value of $ 544.7 million as of December 31, 2025, and $ 440.0 million as of December 31, 2024, were pledged primarily to secure public deposits, some Trust department deposit accounts, and certain other borrowings. In accordance with legal provisions for alternatives other than pledging of investments, Mid Penn also obtains letters of credit from the FHLB to secure certain public deposits. These FHLB letter of credit commitments totaled $ 162.5 million as of December 31, 2025 and $ 156.0 million as of December 31, 2024. 91 MID PENN BANCORP, INC. The following tables present gross unrealized losses and fair value of debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2025 and 2024: (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2025 Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Available-for-sale debt securities: U.S. Treasury and U.S. government agencies — $ — $ — 10 $ 19,066 $ 380 10 $ 19,066 $ 380 Mortgage-backed U.S. government agencies 27 208,676 141 91 144,721 11,359 118 353,397 11,500 State and political subdivision obligations 1 24 — 8 3,810 485 9 3,834 485 Corporate debt securities 8 18,573 64 14 21,444 1,806 22 40,017 1,870 Total available-for-sale debt securities 36 $ 227,273 $ 205 123 $ 189,041 $ 14,030 159 $ 416,314 $ 14,235 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies — $ — $ — 137 $ 215,414 $ 16,566 137 $ 215,414 $ 16,566 Mortgage-backed U.S. government agencies 4 423 — 60 28,252 3,747 64 28,675 3,747 State and political subdivision obligations 12 4,401 2 139 59,009 4,041 151 63,410 4,043 Corporate debt securities 3 3,368 128 9 10,835 1,115 12 14,203 1,243 Total held-to-maturity debt securities 19 8,192 130 345 313,510 25,469 364 321,702 25,599 Total 55 $ 235,465 $ 335 468 $ 502,551 $ 39,499 523 $ 738,016 $ 39,834 (Dollars in thousands) Less Than 12 Months 12 Months or More Total December 31, 2024 Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Number of Securities Estimated Fair Value Gross Unrealized Losses Available-for-sale securities: U.S. Treasury and U.S. government agencies — $ — $ — 12 $ 21,507 $ 740 12 $ 21,507 $ 740 Mortgage-backed U.S. government agencies 9 72,499 1,847 91 130,445 17,684 100 202,944 19,531 State and political subdivision obligations — — — 8 3,596 713 8 3,596 713 Corporate debt securities — — — 18 32,430 3,320 18 32,430 3,320 Total available-for-sale securities 9 $ 72,499 $ 1,847 129 $ 187,978 $ 22,457 138 $ 260,477 $ 24,304 Held-to-maturity securities: U.S. Treasury and U.S. government agencies — $ — $ — 143 $ 213,808 $ 28,133 143 $ 213,808 $ 28,133 Mortgage-backed U.S. government agencies 2 163 1 62 31,922 5,507 64 32,085 5,508 State and political subdivision obligations 8 3,176 30 169 67,446 6,810 177 70,622 6,840 Corporate debt securities 4 10,500 — 11 13,633 1,318 15 24,133 1,318 Total held-to-maturity securities 14 13,839 31 385 326,809 41,768 399 340,648 41,799 Total 23 $ 86,338 $ 1,878 514 $ 514,787 $ 64,225 537 $ 601,125 $ 66,103 As of December 31, 2025 and 2024, the majority of the unrealized losses on securities in an unrealized loss position were attributable to U.S. Treasury and U.S. government agencies, and mortgage-backed U.S. government agencies. The Corporation evaluates debt securities for credit losses in accordance with ASC 326. Mid Penn had no securities considered by management to be credit related losses as of December 31, 2025 and December 31, 2024, and did not record any securities losses in the respective periods ended on these dates. Mid Penn does not consider the securities with unrealized losses on the respective dates to be credit related losses as the unrealized losses were deemed to be temporary changes in value related to market movements in interest yields at various periods similar to the maturity dates of holdings in the investment portfolio, and not reflective of an erosion of credit quality. There was $ 10 thousand and zero gross realized gains on the sale of AFS securities as of December 31, 2025 and December 31, 2024, respectively. 92 MID PENN BANCORP, INC. The table below illustrates the contractual maturity of debt investment securities at amortized cost and estimated fair value. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties. (In thousands) Available-for-sale Held-to-maturity December 31, 2025 Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year or less $ 3,000 $ 2,945 $ 31,445 $ 31,080 Due after 1 year but within 5 years 23,742 23,499 140,793 133,953 Due after 5 years but within 10 years 37,817 35,797 131,708 118,463 Due after 10 years 844 676 10,921 9,531 65,403 62,917 314,867 293,027 Mortgage-backed securities 361,109 353,397 32,418 28,675 $ 426,512 $ 416,314 $ 347,285 $ 321,702 93 MID PENN BANCORP, INC. Note 4 - Loans and Allowance for Credit Losses - Loans Loans, net of unearned income, are summarized as follows by portfolio segment: (In thousands) December 31, 2025 December 31, 2024 Commercial real estate CRE Nonowner Occupied $ 1,364,040 $ 1,251,010 CRE Owner Occupied 718,864 624,007 Multifamily 419,267 412,900 Farmland 227,816 224,709 Total Commercial real estate 2,729,987 2,512,626 Commercial and industrial 720,031 705,392 Construction Residential Construction 85,299 99,399 Other Construction 310,390 326,171 Total Construction 395,689 425,570 Residential mortgage 1-4 Family 1st Lien 417,421 313,592 1-4 Family Rental 410,965 336,636 HELOC and Junior Liens 178,116 140,392 Total Residential Mortgage 1,006,502 790,620 Consumer 10,629 8,862 Total loans $ 4,862,838 $ 4,443,070 Total loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs. Net deferred loan fees were $ 2.8 million and $ 3.8 million as of December 31, 2025 and 2024, respectively. Accrued interest receivable is not included in the amortized cost basis of Mid Penn's loans. As of December 31, 2025, accrued interest receivable for loans totaled $ 25.7 million with no related ACL and was reported in other assets on the accompanying Consolidated Balance Sheet. The Bank has granted loans to certain of its executive officers, directors, and their related interests. The aggregate amount of these loans was $ 11.5 million and $ 13.8 million as of December 31, 2025 and 2024, respectively. During 2025, $ 705 thousand of new loans, advances and loans to new related parties were extended and repayments totaled $ 2.3 million. None of these loans were past due, in nonaccrual status, or restructured as of December 31, 2025. Past Due and Nonaccrual Loans The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The classes of the loan portfolio summarized by the past due status as of December 31, 2025 and December 31, 2024, are summarized as follows: 94 MID PENN BANCORP, INC. (In thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Loans Receivable > 90 Days and Accruing December 31, 2025 Commercial real estate CRE Nonowner Occupied $ 278 $ — $ 5,144 $ 5,422 $ 1,358,618 $ 1,364,040 $ — CRE Owner Occupied 2,022 58 901 2,981 715,883 718,864 — Multifamily — 196 — 196 419,071 419,267 — Farmland — 1,581 46 1,627 226,189 227,816 — Total Commercial real estate 2,300 1,835 6,091 10,226 2,719,761 2,729,987 — Commercial and industrial 3,740 1,006 6,804 11,550 708,481 720,031 — Construction Residential Construction — — — — 85,299 85,299 — Other Construction 230 — — 230 310,160 310,390 — Total Construction 230 — — 230 395,459 395,689 — Residential mortgage 1-4 Family 1st Lien 4,192 165 484 4,841 412,580 417,421 — 1-4 Family Rental 812 1,054 1,047 2,913 408,052 410,965 — HELOC and Junior Liens 1,474 486 1,815 3,775 174,341 178,116 — Total Residential Mortgage 6,478 1,705 3,346 11,529 994,973 1,006,502 — Consumer 7 14 — 21 10,608 10,629 — Total $ 12,755 $ 4,560 $ 16,241 $ 33,556 $ 4,829,282 $ 4,862,838 $ — (In thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Loans Receivable > 90 Days and Accruing December 31, 2024 Commercial real estate CRE Nonowner Occupied $ 1,281 $ 1,515 $ 11,658 $ 14,454 $ 1,236,556 $ 1,251,010 $ — CRE Owner Occupied 39 51 262 352 623,655 624,007 — Multifamily — — — — 412,900 412,900 — Farmland 184 — — 184 224,525 224,709 — Total Commercial real estate 1,504 1,566 11,920 14,990 2,497,636 2,512,626 — Commercial and industrial 74 3 794 871 704,521 705,392 — Construction Residential Construction — — — — 99,399 99,399 — Other Construction — — — — 326,171 326,171 — Total Construction — — — — 425,570 425,570 — Residential mortgage 1-4 Family 1st Lien 2,853 220 516 3,589 310,003 313,592 — 1-4 Family Rental 374 7 137 518 336,118 336,636 — HELOC and Junior Liens 724 209 2,157 3,090 137,302 140,392 — Total Residential Mortgage 3,951 436 2,810 7,197 783,423 790,620 — Consumer 20 — — 20 8,842 8,862 — Total $ 5,549 $ 2,005 $ 15,524 $ 23,078 $ 4,419,992 $ 4,443,070 $ — 95 MID PENN BANCORP, INC. Loans are placed on nonaccrual status when management determines that the full repayment of principal and collection of interest according to contractual terms is no longer likely, generally when the loan becomes 90 days or more past due. There were no loans greater than 90 days past due and still accruing as of December 31, 2025 and 2024. Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of December 31, 2025 and 2024 are summarized as follows: December 31, 2025 December 31, 2024 (In thousands) With a Related Allowance Without a Related Allowance Total With a Related Allowance Without a Related Allowance Total Commercial real estate CRE Nonowner Occupied $ 2,873 $ 2,271 $ 5,144 $ 2,622 $ 11,153 $ 13,775 CRE Owner Occupied 509 2,043 2,552 — 546 546 Multifamily — 131 131 — 154 154 Farmland — 46 46 — — — Total Commercial real estate 3,382 4,491 7,873 2,622 11,853 14,475 Commercial and industrial 10,519 398 10,917 758 3,894 4,652 Residential mortgage 1-4 Family 1st Lien 24 1,188 1,212 — 1,028 1,028 1-4 Family Rental 146 949 1,095 — 176 176 HELOC and Junior Liens — 1,840 1,840 — 2,279 2,279 Total Residential Mortgage 170 3,977 4,147 — 3,483 3,483 Consumer — 14 14 — — — Total loans $ 14,071 $ 8,880 $ 22,951 $ 3,380 $ 19,230 $ 22,610 During the years ended December 31, 2025 and 2024, the amount of interest income recognized on nonaccrual loans was approximately $ 1.9 million and $ 584 thousand, respectively. Credit Quality Indicators Mid Penn categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. On a minimum of a quarterly basis, Mid Penn analyzes loans individually to classify the loans as to their credit risk. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal. PASS - This type of classification consists of 6 subcategories: Nominal Risk / Pass - This loan classification is a credit extension of the highest quality. Moderate Risk / Pass - This type of classification has strong financial ratios, substantial debt capacity, and low leverage with a very favorable comparison to industry peers or better than average improving trends. Good Acceptable Risk / Pass - This type of classification is a reasonable credit risk having financial ratios on par with its peers and demonstrates slightly improving trends over time; the Borrower lists good quality assets with relatively low leverage and ample debt capacity. Average Acceptable Risk / Pass - This type of classification has financial ratios and assets that are of above average quality; however, the leverage is worse than average compared to industry standards; the Borrower should have a good repayment history and possess consistent earnings with some growth. 96 MID PENN BANCORP, INC. Marginally Acceptable Risk / Pass - This type of classification has financial ratios consistent with industry averages, assets of average quality with ascertainable values, acceptable leverage, moderate capital assets and an acceptable reliance on trade debt; however, the Borrower demonstrates marginally adequate earnings, cash flow and debt service plus positive trends. Weak/Monitor Risk (Watch list) / Pass - This type of classification has financial ratios that are slightly below standard industry averages and assets are below average quality with unstable values; fixed assets could be near or at the end of their useful life and liabilities may not match the asset structure. SPECIAL MENTION - These credits have developing weaknesses deserving extra attention from the lender and lending management. They are currently protected, but potentially weak. The weakness may be, cash flow, leverage, liquidity, management, industry or other factors which may, if not checked or corrected, weaken the asset or inadequately protect the Bank’s credit position at some future date. SUBSTANDARD - These credit extensions also have well defined weaknesses, which are inadequately protected by the current worth and debt service capacity of the Borrowers or the collateral pledged, if any. The repayment of principal and interest as originally intended can be jeopardized by defined weaknesses related to adverse financial, managerial, economic, market or political conditions. DOUBTFUL - These credits have definite weaknesses inherent in Substandard loans with added characteristics that are severe enough to make further collection in full highly questionable and improbable based on the current trends. LOSS . These loans are considered uncollectible and no longer a viable asset of the Bank. They lack an identifiable source of repayment based on an inability to generate sufficient cash flow to service their debt. All trends are negative and the damage to the financial condition of the Borrower can’t be reversed now or in the near future. The following table presents risk ratings by loan portfolio segment and origination year, which is the year of origination or renewal: December 31, 2025 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis (In thousands) 2025 2024 2023 2022 2021 Prior Total CRE Nonowner Occupied Pass $ 156,421 $ 98,728 $ 188,873 $ 358,610 $ 156,310 $ 375,646 $ 16,109 $ 1,350,697 Special mention — — 1,698 — — 90 — 1,788 Substandard or lower — — 1,540 — — 10,015 — 11,555 Total CRE Nonowner Occupied 156,421 98,728 192,111 358,610 156,310 385,751 16,109 1,364,040 Gross charge-offs — — — ( 691 ) — ( 394 ) — ( 1,085 ) Current period recoveries — — — 301 — 4 — 305 Net charge-offs — — — ( 390 ) — ( 390 ) — ( 780 ) CRE Owner Occupied Pass 119,632 65,978 97,419 105,690 64,478 239,464 16,370 709,031 Special mention — — 922 1,576 172 2,939 — 5,609 Substandard or lower — 181 — 1,888 177 1,978 — 4,224 Total CRE Owner Occupied 119,632 66,159 98,341 109,154 64,827 244,381 16,370 718,864 Gross charge-offs — ( 346 ) — — — — — ( 346 ) Net charge-offs — ( 346 ) — — — — — ( 346 ) Multifamily Pass 37,788 4,816 62,305 156,236 68,254 86,424 3,271 419,094 Special mention — — — — — 42 — 42 Substandard or lower — — — — — 131 — 131 97 MID PENN BANCORP, INC. Total Multifamily 37,788 4,816 62,305 156,236 68,254 86,597 3,271 419,267 Farmland Pass 29,858 23,228 24,273 51,055 36,651 44,326 15,255 224,646 Special mention — — 428 — — — — 428 Substandard or lower — — 397 — 2,299 46 — 2,742 Total Farmland 29,858 23,228 25,098 51,055 38,950 44,372 15,255 227,816 Commercial and industrial Pass 96,562 89,541 70,773 64,532 41,663 90,534 240,497 694,102 Special mention — — — 87 — 1,495 — 1,582 Substandard or lower — 115 15,663 500 1,249 1,299 5,521 24,347 Total Commercial and industrial 96,562 89,656 86,436 65,119 42,912 93,328 246,018 720,031 Gross charge-offs — — — — — ( 294 ) — ( 294 ) Current period recoveries — — 1 — — 8 — 9 Net charge-offs — — 1 — — ( 286 ) — ( 285 ) Residential Construction Pass 29,399 27,382 17,469 351 — — 10,698 85,299 Total Residential Construction 29,399 27,382 17,469 351 — — 10,698 85,299 Other Construction Pass 64,396 79,617 74,890 42,758 7,790 12,387 28,552 310,390 Total Other Construction 64,396 79,617 74,890 42,758 7,790 12,387 28,552 310,390 1-4 Family 1st Lien Performing 57,120 28,810 59,920 49,052 38,466 179,375 1,489 414,232 Nonperforming — — 100 48 — 3,041 — 3,189 Total 1-4 Family 1st Lien 57,120 28,810 60,020 49,100 38,466 182,416 1,489 417,421 Current period recoveries — — — — — 90 — 90 Net recoveries — — — — — 90 — 90 1-4 Family Rental Performing 46,766 22,067 45,885 99,841 59,781 131,001 2,154 407,495 Nonperforming — — 292 — 1,572 1,606 — 3,470 Total 1-4 Family Rental 46,766 22,067 46,177 99,841 61,353 132,607 2,154 410,965 HELOC and Junior Liens Performing 8,403 5,050 17,397 8,447 4,815 14,180 115,728 174,020 Nonperforming — 1,151 93 152 — 1,699 1,001 4,096 Total HELOC and Junior Liens 8,403 6,201 17,490 8,599 4,815 15,879 116,729 178,116 Consumer Performing 5,143 1,169 829 276 265 702 2,216 10,600 Nonperforming — — 29 — — — — 29 Total Consumer 5,143 1,169 858 276 265 702 2,216 10,629 Gross charge-offs — — — — — ( 98 ) — ( 98 ) Current period recoveries — — — — — 55 — 55 Net charge-offs — — — — — ( 43 ) — ( 43 ) Total 98 MID PENN BANCORP, INC. Pass 534,056 389,290 536,002 779,232 375,146 848,781 330,752 3,793,259 Special mention — — 3,048 1,663 172 4,566 — 9,449 Substandard or lower — 296 17,600 2,388 3,725 13,469 5,521 42,999 Performing 117,432 57,096 124,031 157,616 103,327 325,258 121,587 1,006,347 Nonperforming — 1,151 514 200 1,572 6,346 1,001 10,784 Total $ 651,488 $ 447,833 $ 681,195 $ 941,099 $ 483,942 $ 1,198,420 $ 458,861 $ 4,862,838 December 31, 2024 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis (In thousands) 2024 2023 2022 2021 2020 Prior Total CRE Nonowner Occupied Pass $ 85,501 $ 176,018 $ 343,072 $ 152,157 $ 130,650 $ 325,478 $ 11,732 $ 1,224,608 Special mention — — — — — 3,105 — 3,105 Substandard or lower — 1,515 1,260 — 3,281 17,241 — 23,297 Total CRE Nonowner Occupied 85,501 177,533 344,332 152,157 133,931 345,824 11,732 1,251,010 Current period recoveries — — — — — 2 — 2 Net recoveries — — — — — 2 — 2 CRE Owner Occupied Pass 52,922 99,065 106,876 66,160 77,774 199,725 11,630 614,152 Special mention — 222 4,991 227 — 2,133 — 7,573 Substandard or lower — — — 194 — 2,088 — 2,282 Total CRE Owner Occupied 52,922 99,287 111,867 66,581 77,774 203,946 11,630 624,007 Current period recoveries — — — — — 4 — 4 Net recoveries — — — — — 4 — 4 Multifamily Pass 4,843 66,119 118,568 101,871 40,450 78,070 2,771 412,692 Special mention — — — — — 54 — 54 Substandard or lower — — — — — 154 — 154 Total Multifamily 4,843 66,119 118,568 101,871 40,450 78,278 2,771 412,900 Farmland Pass 27,449 31,259 56,178 42,693 25,119 24,729 14,801 222,228 Special mention — 128 — — — 2,163 190 2,481 Total Farmland 27,449 31,387 56,178 42,693 25,119 26,892 14,991 224,709 Commercial and industrial Pass 114,175 106,657 78,702 54,312 21,532 92,723 222,525 690,626 Special mention — 62 503 31 — 3,534 4,498 8,628 Substandard or lower — — — 892 1,168 1,632 2,446 6,138 Total Commercial and industrial 114,175 106,719 79,205 55,235 22,700 97,889 229,469 705,392 Gross charge-offs — ( 201 ) — — ( 206 ) ( 412 ) — ( 819 ) 99 MID PENN BANCORP, INC. Current period recoveries — — — — — 1 — 1 Net charge-offs — ( 201 ) — — ( 206 ) ( 411 ) — ( 818 ) Residential construction Pass 34,275 37,222 15,559 — — 2,007 10,336 99,399 Total Residential construction 34,275 37,222 15,559 — — 2,007 10,336 99,399 Other construction Pass 66,711 94,619 104,439 11,664 10,983 11,928 25,827 326,171 Total Other construction 66,711 94,619 104,439 11,664 10,983 11,928 25,827 326,171 1-4 Family 1st Lien Performing 27,580 59,762 45,946 34,743 42,727 98,891 2,915 312,564 Nonperforming — — — — 211 817 — 1,028 Total 1-4 Family 1st Lien 27,580 59,762 45,946 34,743 42,938 99,708 2,915 313,592 Gross charge-offs — — — — — ( 7 ) — ( 7 ) Current period recoveries — — — — — 16 — 16 Net recoveries — — — — — 9 — 9 1-4 Family Rental Performing 28,735 51,488 88,594 59,397 35,222 69,890 2,009 335,335 Nonperforming — 147 — — 595 559 — 1,301 Total 1-4 Family Rental 28,735 51,635 88,594 59,397 35,817 70,449 2,009 336,636 Gross charge-offs — — — — — ( 2 ) — ( 2 ) Current period recoveries — — — — — 22 — 22 Net recoveries — — — — — 20 — 20 HELOC and Junior Liens Performing 6,096 16,125 9,856 4,845 2,182 10,887 88,122 138,113 Nonperforming — 21 — — — 1,257 1,001 2,279 Total HELOC and Junior Liens 6,096 16,146 9,856 4,845 2,182 12,144 89,123 140,392 Gross charge-offs — — ( 21 ) — — — — ( 21 ) Net charge-offs — — ( 21 ) — — — — ( 21 ) Consumer Performing 4,214 972 354 394 107 234 2,587 8,862 Total Consumer 4,214 972 354 394 107 234 2,587 8,862 Gross charge-offs — — ( 2 ) — — ( 50 ) — ( 52 ) Current period recoveries — — 1 — — 38 — 39 Net charge-offs — — ( 1 ) — — ( 12 ) — ( 13 ) Total Pass 385,876 610,959 823,394 428,857 306,508 734,660 299,622 3,589,876 Special mention — 412 5,494 258 — 10,989 4,688 21,841 Substandard or lower — 1,515 1,260 1,086 4,449 21,115 2,446 31,871 Performing 66,625 128,347 144,750 99,379 80,238 179,902 95,633 794,874 Nonperforming — 168 — — 806 2,633 1,001 4,608 Total $ 452,501 $ 741,401 $ 974,898 $ 529,580 $ 392,001 $ 949,299 $ 403,390 $ 4,443,070 100 MID PENN BANCORP, INC. Mid Penn had no loans classified as "Doubtful" as of December 31, 2025 and 2024. There was $ 567 thousand and $ 861 thousand in mortgage loans for which formal foreclosure proceedings were in process as of December 31, 2025 and December 31, 2024, respectively. Collateral-Dependent Loans A financial asset is considered to be collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For all classes of financial assets deemed collateral-dependent, Mid Penn elected the practical expedient to estimate expected credit losses based on the collateral’s fair value less cost to sell. In most cases, Mid Penn records a partial charge-off to reduce the loan’s carrying value to the collateral’s fair value less cost to sell. Substantially all of the collateral supporting collateral-dependent financial assets consists of various types of real estate, including residential properties; commercial properties such as retail centers, office buildings, and lodging; agriculture land; and vacant land. Total collateral-dependent loans were $ 23.0 million as of December 31, 2025 and December 31, 2024. Allowance for Credit Losses Mid Penn’s ACL - loans methodology follows guidance within FASB ASC Subtopic 326-20. The ACL - loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Credit quality within the loan portfolio is continuously monitored by management and is reflected within the ACL - loans. The ACL - loans is an estimate of expected losses inherent within Mid Penn’s existing loan portfolio. The ACL - loans is adjusted through the PCL and reduced by the charge off of loan amounts, net of recoveries. The loan loss estimation process involves procedures to appropriately consider the unique characteristics of Mid Penn’s loan portfolio segments. When computing allowance levels, credit loss assumptions are estimated using a model that categorizes loan pools based on loss history and other credit trends and risk characteristics, including current conditions and reasonable and supportable forecasts about the future. Evaluations of the portfolio and individual credits are inherently subjective, as they require estimates, assumptions and judgments as to the facts and circumstances of particular situations. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, in light of the factors and forecasts then prevailing, may result in significant changes in the ACL and credit loss expense. Mid Penn estimates the ACL using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Mid Penn uses a third-party software application to calculate the quantitative portion of the ACL using a methodology and assumptions specific to each loan pool. The qualitative portion of the allowance is based on general economic conditions and other internal and external factors affecting Mid Penn as a whole, as well as specific loans. Factors considered include the following: lending process, concentrations of credit, and peer group divergence. The quantitative and qualitative portions of the allowance are added together to determine the total ACL, which reflects management’s expectations of future conditions based on reasonable and supportable forecasts. The methodology for estimating the amount of expected credit losses reported in the ACL has two basic components: a collective, or pooled, component for estimated expected credit losses for pools of loans that share similar risk characteristics, and an asset-specific component involving individual loans that do not share risk characteristics with other loans and the measurement of expected credit losses for such individual loans. In estimating the ACL for the collective component, loans are segregated into loan pools based on loan purpose codes and similar risk characteristics. The commercial real estate and residential mortgage loan portfolio segments include loans for both commercial and residential properties that are secured by real estate. The underwriting process for these loans includes analysis of the financial position and strength of both the borrower and, if applicable, guarantor, experience with similar projects in the past, market demand and prospects for successful completion of the proposed project within the established budget and schedule, values of underlying collateral, availability of permanent financing, maximum loan-to-value ratios, minimum equity requirements, acceptable amortization periods and minimum debt service coverage requirements, based on property type. The borrower’s financial strength and capacity to repay their obligations remain the primary focus of underwriting. Financial strength is evaluated based upon analytical tools that consider historical and projected cash flows and performance, in addition to analysis of the proposed project for income-producing properties. Additional support offered by guarantors is also considered when applicable. Ultimate repayment of these loans is sensitive to interest rate changes, general economic conditions, liquidity and availability of long-term financing. 101 MID PENN BANCORP, INC. The commercial and industrial loan portfolio segment includes commercial loans made to many types of businesses for various purposes, such as short-term working capital loans that are usually secured by accounts receivable and inventory, equipment and fixed asset purchases that are secured by those assets, and term financing for those within Mid Penn’s geographic markets. Mid Penn’s credit underwriting process for commercial and industrial loans includes analysis of historical and projected cash flows and performance, evaluation of financial strength of both borrowers and guarantors as reflected in current and detailed financial information, and evaluation of underlying collateral to support the credit. The consumer loan portfolio segment is comprised of loans which are underwritten after evaluating a borrower’s capacity, credit and collateral. Several factors are considered when assessing a borrower’s capacity, including the borrower’s employment, income, current debt, assets and level of equity in the property. Credit is assessed using a credit report that provides credit scores and the borrower’s current and past information about their credit history. Loan-to-value and debt-to-income ratios, loan amount and lien position are also considered in assessing whether to originate a loan. These borrowers are particularly susceptible to downturns in economic trends, such as conditions that negatively affect housing prices and demand and levels of unemployment. Mid Penn utilizes a DCF method to estimate the quantitative portion of the allowance for credit losses for its loan pools. The DCF is based off of historical losses, including peer data, which is correlated to national unemployment and GDP. The PD and LGD measures are used in conjunction with prepayment data as inputs into the DCF model to calculate the cash flows at the individual loan level. Contractual cash flows based on loan terms are adjusted for PD, LGD and prepayments to derive loss cash flows. These loss cash flows are discounted by the loan’s coupon rate to arrive at the discounted cash flow based quantitative loss. The prepayment studies are updated quarterly by a third-party for each applicable pool. Mid Penn determined that reasonable and supportable forecasts could be made for a twelve-month period for all of its loan pools. To the extent the lives of the loans in the Loans held-for-investment (LHFI) portfolio extend beyond this forecast period, Mid Penn uses a reversion period of four quarters and reverts to the historical mean on a straight-line basis over the remaining life of the loans. Qualitative factors used in the ACL methodology include the following: • Changes in lending policies, procedures, and underwriting standards • Changes in portfolio composition and concentrations of credit • Peer group trends and divergence The ACL for individual loans, such as nonaccrual and PCD loans, that do not share risk characteristics with other loans is measured as the difference between the discounted value of expected future cash flows, based on the effective interest rate at origination, and the amortized cost basis of the loan, or the net realizable value. The ACL is the difference between the loan’s net realizable value and its amortized cost basis (net of previous charge-offs and deferred loan fees and costs), except for collateral-dependent loans. A loan is collateral dependent when the borrower is experiencing financial difficulty and repayment of the loan is expected to be provided substantially through the sale of the collateral. The expected credit loss for collateral-dependent loans is measured as the difference between the amortized cost basis of the loan and the fair value of the collateral, adjusted for the estimated cost to sell. Fair value estimates for collateral-dependent loans are derived from appraised values based on the current market value or the "as is" value of the collateral, normally from recently received and reviewed appraisals. Current appraisals are ordered on a regular basis based on the inspection date or more often if market conditions necessitate. Appraisals are obtained from state-certified appraisers and are based on certain assumptions, which may include construction or development status and the highest and best use of the property. These appraisals are reviewed by Mid Penn’s Real Estate Administration Department to ensure they are acceptable, and values are adjusted down for costs associated with asset disposal. If the calculated expected credit loss is determined to be permanent or not recoverable, the amount of the expected credit loss is charged off. Mid Penn may also purchase loans or acquire loans through a business combination. At the purchase or acquisition date, loans are evaluated to determine whether there has been more than insignificant credit deterioration since origination. Loans that have experienced more than insignificant credit deterioration since origination are referred to as PCD loans. In its evaluation of whether a loan has experienced more than insignificant deterioration in credit quality since origination, Mid Penn takes into consideration loan grades, past due and nonaccrual status. Mid Penn may also consider external credit rating agency ratings for borrowers and for non-commercial loans, FICO score or band, probability of default levels, and 102 MID PENN BANCORP, INC. number of times past due. At the purchase or acquisition date, the amortized cost basis of PCD loans is equal to the purchase price and an initial estimate of credit losses. The initial recognition of expected credit losses on PCD loans has no impact on net income. When the initial measurement of expected credit losses on PCD loans is calculated on a pooled loan basis, the expected credit losses are allocated to each loan within the pool. Any difference between the initial amortized cost basis and the unpaid principal balance of the loan represents a noncredit discount or premium, which is accreted (or amortized) into interest income over the life of the loan. Subsequent changes to the ACL on PCD loans are recorded through the PCL. For purchased loans that are not deemed to have experienced more than insignificant credit deterioration since origination and are therefore not deemed PCD, any discounts or premiums included in the purchase price are accreted (or amortized) over the contractual life of the individual loan. Loans are charged off against the ACL, with any subsequent recoveries credited back to the ACL account. Expected recoveries may not exceed the aggregate of amounts previously charged off and expected to be charged off. The following table presents the activity in the ACL - loans by portfolio segment for the year ended December 31, 2025 and 2024: (In thousands) Balance as of December 31, 2024 PCD Loans Charge-offs Recoveries Net Loans (Charged off) Recovered Provision/(Benefit) for Credit Losses (1) Balance as of December 31, 2025 Commercial Real Estate CRE Nonowner Occupied $ 11,047 $ 89 $ ( 1,085 ) $ 305 $ ( 780 ) $ ( 439 ) $ 9,917 CRE Owner Occupied 5,243 100 ( 346 ) — ( 346 ) 1,098 6,095 Multifamily 3,432 31 — — — ( 2,020 ) 1,443 Farmland 1,932 — — — — 186 2,118 Commercial and industrial 7,122 36 ( 294 ) 9 ( 285 ) 2,386 9,259 Construction Residential Construction 931 — — — — ( 454 ) 477 Other Construction 2,131 — — — — ( 667 ) 1,464 Residential Mortgage 1-4 Family 1st Lien 1,503 37 — 90 90 804 2,434 1-4 Family Rental 1,756 47 — — — 492 2,295 HELOC and Junior Liens 392 3 — — — 164 559 Consumer 25 — ( 98 ) 55 ( 43 ) 48 30 Total $ 35,514 $ 343 $ ( 1,823 ) $ 459 $ ( 1,364 ) $ 1,598 $ 36,091 (1) Includes a $ 2.3 million initial provision on non-PCD loans acquired in the William Penn acquisition 103 MID PENN BANCORP, INC. (In thousands) Balance as of December 31, 2023 Charge-offs Recoveries Net Loans (Charged off) Recovered Provision/(Benefit) for Credit Losses Balance as of December 31, 2024 Commercial Real Estate CRE Nonowner Occupied $ 10,267 $ — $ 2 $ 2 $ 778 $ 11,047 CRE Owner Occupied 5,646 — 4 4 ( 407 ) 5,243 Multifamily 2,202 — — — 1,230 3,432 Farmland 2,064 — — — ( 132 ) 1,932 Commercial and industrial 7,131 ( 819 ) 1 ( 818 ) 809 7,122 Construction Residential Construction 1,256 — — — ( 325 ) 931 Other Construction 2,146 — — — ( 15 ) 2,131 Residential Mortgage 1-4 Family 1st Lien 1,207 ( 7 ) 16 9 287 1,503 1-4 Family Rental 1,859 ( 2 ) 22 20 ( 123 ) 1,756 HELOC and Junior Liens 389 ( 21 ) — ( 21 ) 24 392 Consumer 20 ( 52 ) 39 ( 13 ) 18 25 Total $ 34,187 $ ( 901 ) $ 84 $ ( 817 ) $ 2,144 $ 35,514 104 MID PENN BANCORP, INC. The following table presents the ACL for loans and the amortized cost basis of loans as of December 31, 2025 and December 31, 2024: (In thousands) ACL - Loans Loans December 31, 2025 Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total ACL - Loans Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total Loans Commercial real estate CRE Nonowner Occupied $ 9,374 $ 543 $ 9,917 $ 1,358,896 $ 5,144 $ 1,364,040 CRE Owner Occupied 6,020 75 6,095 716,312 2,552 718,864 Multifamily 1,443 — 1,443 419,136 131 419,267 Farmland 2,118 — 2,118 227,770 46 227,816 Commercial and industrial 7,835 1,424 9,259 709,114 10,917 720,031 Construction Residential Construction 477 — 477 85,299 — 85,299 Other Construction 1,464 — 1,464 310,390 — 310,390 Residential mortgage 1-4 Family 1st Lien 2,434 — 2,434 416,209 1,212 417,421 1-4 Family Rental 2,289 6 2,295 409,870 1,095 410,965 HELOC and Junior Liens 559 — 559 176,276 1,840 178,116 Consumer 30 — 30 10,615 14 10,629 Total $ 34,043 $ 2,048 $ 36,091 $ 4,839,887 $ 22,951 $ 4,862,838 (In thousands) ACL - Loans Loans December 31, 2024 Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total ACL - Loans Collectively Evaluated for Credit Loss Individually Evaluated for Credit Loss Total Loans Commercial real estate CRE Nonowner Occupied $ 9,945 $ 1,102 $ 11,047 $ 1,237,235 $ 13,775 $ 1,251,010 CRE Owner Occupied 5,243 — 5,243 623,461 546 624,007 Multifamily 3,432 — 3,432 412,746 154 412,900 Farmland 1,932 — 1,932 224,709 — 224,709 Commercial and industrial 6,785 337 7,122 700,740 4,652 705,392 Construction Residential Construction 931 — 931 99,399 — 99,399 Other Construction 2,131 — 2,131 326,171 — 326,171 Residential mortgage 1-4 Family 1st Lien 1,503 — 1,503 312,564 1,028 313,592 1-4 Family Rental 1,756 — 1,756 336,460 176 336,636 HELOC and Junior Liens 392 — 392 138,113 2,279 140,392 Consumer 25 — 25 8,862 — 8,862 Total $ 34,075 $ 1,439 $ 35,514 $ 4,420,460 $ 22,610 $ 4,443,070 105 MID PENN BANCORP, INC. Modifications to Borrowers Experiencing Financial Difficulty From time to time, we may modify certain loans to borrowers who are experiencing financial difficulty. In some cases, these modifications may result in new loans. Loan modifications to borrowers experiencing financial difficulty may be in the form of principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension, or a combination thereof, among other things. There were no new modifications to borrowers experiencing financial difficulty for the year ended December 31, 2025. Information related to loans modified (by type of modification) for the year ended December 31, 2024, whereby the borrower was experiencing financial difficulty at the time of modification, is set forth in the following table: (Dollars in thousands) Interest Only Term Extension Combination: Interest Only and Term Extension Total % of Total Class of Financing Receivable Year ended December 31, 2024 Commercial and industrial $ — $ — $ 287 $ 287 0.04 % Residential mortgage 1-4 Family Rental — 184 — 184 0.05 % HELOC and Junior Liens — — 92 92 0.07 % Total Residential Mortgage — 184 92 276 0.03 % Total loans $ — $ 184 $ 379 $ 563 The financial effects of the loan modifications reduced the monthly payment amounts for the borrower and the term extensions in the table above added a weighted-average of 2.0 years to the life of the loans, which also reduced the monthly payment amounts for the borrowers. As of December 31, 2025, there were no defaulted troubled debt restructured loans, as all troubled debt restructured loans were current with respect to their associated forbearance agreements. There were also no defaults on troubled debt restructured loans within twelve months of restructure during 2024. 106 MID PENN BANCORP, INC. Note 5 - Premises and Equipment The following is a summary of premises and equipment as of December 31: (In thousands) 2025 2024 Land $ 8,049 $ 6,251 Buildings 34,656 28,948 Furniture, fixtures, and equipment 25,770 23,656 Leasehold improvements 3,362 3,317 Capital expenditures in process 739 4,941 Total cost 72,576 67,113 Less accumulated depreciation ( 23,834 ) ( 28,307 ) Total premises and equipment $ 48,742 $ 38,806 Depreciation expense was $ 4.9 million in each of 2025, 2024, and 2023. and is included in noninterest expense in the Consolidated Statements of Income. There were no impairments of premises and equipment recorded during the years ended December 31, 2025, 2024, or 2023. The Company did not capitalize interest related to premises and equipment during the y ears ended December 31, 2025, 2024, or 2023. 107 MID PENN BANCORP, INC. Note 6 - Goodwill and Intangible Assets The following table summarizes the changes in goodwill: For the Year Ended December 31, ( In thousands ) 2025 2024 Goodwill balance, beginning of year $ 128,160 $ 127,031 Commonwealth Benefits Group acquisition — 1,129 William Penn Acquisition 6,857 — Charis Insurance acquisition 1,603 — Goodwill balance, end of year $ 136,620 $ 128,160 On May 12, 2025, Mid Penn acquired the insurance business and related accounts of Charis Insurance Group, Inc., which provides business home and auto insurance throughout central and southern Pennsylvania. Goodwill totaling $ 1.6 million was booked as a result of the business combination. On April 30, 2025, Mid Penn completed the acquisition of William Penn which further expands Mid Penn's presence in the Philadelphia region and surrounding counties in Pennsylvania and New Jersey. Goodwill totaling $ 6.9 million was booked as a result of the business combination. On July 31, 2024, Mid Penn acquired the insurance business and related accounts of a full-service employee benefits firm that serves mid to large employers across central and eastern Pennsylvania, northern Maryland, and northern Virginia. Goodwill totaling $ 1.1 million was booked as a result of this business combination. The following table presents the gross carrying amount and accumulated amortization of core deposit and other intangibles as of December 31: (In thousands) 2025 2024 Gross carrying amount of core deposit and other intangibles $ 17,703 $ 8,026 Less: accumulated amortization ( 3,046 ) ( 1,784 ) Core deposit and other intangibles, net $ 14,657 $ 6,242 The following table summarizes the changes in core deposit intangible: For the Year Ended December 31, ( In thousands ) 2025 2024 2023 Core deposit intangible balance, beginning of year $ 3,382 $ 4,649 $ 4,964 Brunswick core deposit intangibles — — 999 William Penn core deposit intangibles 9,002 — — Less: Amortization of core deposit intangibles ( 2,126 ) ( 1,267 ) ( 1,314 ) Core deposit intangible balances, end of year $ 10,258 $ 3,382 $ 4,649 Core deposit intangibles are amortized using the sum-of-the-years'-digits method over estimated useful lives not to exceed ten years . 108 MID PENN BANCORP, INC. The following table shows the amortization expense for future periods: (In thousands) 2026 $ 2,340 2027 1,955 2028 1,570 2029 1,297 2030 1,053 Thereafter 2,043 Total $ 10,258 Customer List Intangible As a result of the Commonwealth Benefits Group and Charis Insurance Group acquisitions, Mid Penn recorded a customer list intangible asset included in total intangible assets related to the insurance and wealth management customers assumed in the acquisitions. This intangible is amortized over ten years using the sum-of-the-years’-digits amortization method. The following table summarizes the changes in the customer list intangible during the years ended December 31: For the Year Ended December 31, (In thousands) 2025 2024 2023 Customer list intangible balance, beginning of year $ 2,799 $ 1,830 $ 2,275 Commonwealth Benefits Group acquisition — 1,481 — Charis Insurance acquisition 2,199 — — Less: Amortization of customer list intangible ( 841 ) ( 512 ) ( 445 ) Customer list intangible, end of year $ 4,157 $ 2,799 $ 1,830 The following table shows the amortization expense for future periods: (In thousands) 2026 $ 909 2027 793 2028 677 2029 561 2030 445 Thereafter 772 Total $ 4,157 Noncompete Intangible As a result of the Commonwealth Benefits Group and Charis Insurance Group acquisitions, Mid Penn recorded a noncompete intangible asset included in total intangible assets related to the insurance and wealth management customers assumed in the acquisitions. This intangible is amortized over five years using the sum-of-the-years’-digits amortization method. 109 MID PENN BANCORP, INC. The following table summarizes the changes in the noncompete intangible during the years ended December 31: For the Year Ended December 31, ( In thousands ) 2025 2024 2023 Noncompete intangible balance, beginning of year $ 61 $ — $ — Commonwealth Benefits Group acquisition — 67 — Charis Insurance acquisition 191 — — Less: Amortization of noncompete intangible ( 51 ) ( 6 ) — Noncompete intangible, end of year $ 201 $ 61 $ — The following table shows the amortization expense for future periods: (In thousands) 2026 $ 77 2027 77 2028 40 2029 7 Total $ 201 The Corporation performed its annual goodwill impairment assessment as of October 31, 2025, and determined that no impairment existed. No goodwill impairment charges were recorded during the years ended December 31, 2025 or 2024. 110 MID PENN BANCORP, INC. Note 7 - Leases Mid Penn has operating and finance leases for cert ain premises and equipment. Operating and finance lease ROU assets, as well as operating lease liabilities, are presented as separate line items on the Consolidated Balance Sheet, while finance lease liabilities are classified as a component of long-term debt. Supplemental consolidated balance sheet information for each lease classification as of December 31 was as follows: 2025 2024 (Dollars in thousands) Operating Leases Finance Leases Operating Leases Finance Leases ROU $ 15,169 $ 2,368 $ 7,699 $ 2,548 Lease liability 15,405 2,917 8,092 3,063 Weighted-average remaining lease term (in years) 5.61 13.17 5.12 14.17 Weighted-average discount rate 4.13 % 3.81 % 3.68 % 3.81 % Interest expense on finance lease liabilities is included in other interest expense. Operating lease cost and amortization of finance lease ROU assets are included in occupancy expense on Mid Penn’s Consolidated Statements of Income. The following table provides a summary of lease costs for the years ended December 31: (In thousands) 2025 2024 2023 Finance lease cost: Amortization of ROU asset $ 180 $ 179 $ 180 Interest expense on lease liability 113 119 123 Total finance lease cost 293 298 303 Operating lease cost 3,328 2,322 2,081 Sublease income (1) — ( 21 ) ( 29 ) Total lease costs $ 3,621 $ 2,599 $ 2,355 (1) Sublease income relates to excess office space leased to third parties under operating subleases. Rental expense paid to related parties totaled $ 185 thousand for the year ended December 31, 2025 and $ 274 thousand for the years ended December 31, 2024 and 2023, respectively. Supplemental cash flow information related to operating and finance leases for the years ended December 31 was as follows: (In thousands) 2025 2024 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 113 $ 119 Operating cash flows from operating leases 3,318 2,382 Financing cash flows from finance leases 146 134 111 MID PENN BANCORP, INC. A maturity analysis of operating and finance lease liabilities, together with a reconciliation of the undiscounted cash flows to the related lease liability balances, is presented below: December 31, 2025 (In thousands) Operating Leases Finance Leases Lease payments due: 2026 $ 4,075 $ 260 2027 3,747 260 2028 2,616 260 2029 2,291 276 2030 1,625 279 Thereafter 2,795 2,397 Total lease payments 17,149 3,732 Less: imputed interest ( 1,744 ) ( 815 ) Present value of lease liabilities $ 15,405 $ 2,917 Future minimum lease payments to related parties are $ 178 thousand for 2026, 2027, 2028, 2029, $ 181 thousand for 2030 and $ 457 thousand thereafter. Certain leases contain renewal options. Lease terms include renewal periods when the Corporation is reasonably certain to exercise such options in accordance with ASC 842. There were no sale-leaseback transactions or leveraged leases during the years ended December 31, 2025 or 2024. 112 MID PENN BANCORP, INC. Note 8 - Deposits Deposits consisted of the following as of December 31, 2025 and 2024: (Dollars in thousands) December 31, 2025 % of Total Deposits December 31, 2024 % of Total Deposits Noninterest-bearing demand deposits $ 834,013 16.0 % $ 759,169 16.2 % Interest-bearing demand deposits 1,278,940 24.5 % 1,101,444 23.5 % Money market 1,226,171 23.5 % 968,398 20.6 % Savings 324,064 6.2 % 260,258 5.5 % Total demand and savings 3,663,188 70.2 % 3,089,269 65.9 % Time 1,551,475 29.8 % 1,600,658 34.1 % Total deposits $ 5,214,663 100.0 % $ 4,689,927 100.0 % The scheduled maturities of time deposits as of December 31, 2025 were as follows: Time Deposits (In thousands) Less than $250,000 $250,000 or more Maturing in 2026 $ 1,026,518 $ 362,344 Maturing in 2027 107,392 10,203 Maturing in 2028 24,792 3,608 Maturing in 2029 8,465 260 Maturing in 2030 5,812 682 Maturing thereafter 3,654 867 $ 1,176,633 $ 377,964 Mid Penn had $ 97.5 million of brokered certificates of deposit as of December 31, 2025 and $ 319.8 million as of December 31, 2024. As of December 31, 2025 and 2024, Mid Penn had $ 83.2 million an d $ 73.3 million, respectively, of Certificate of Deposit Account Registry ("CDAR") deposits. Deposits and other funds from related parties held by Mid Penn amounted to $ 29.3 million and $ 31.8 million as of December 31, 2025 and 2024, respectively. 113 MID PENN BANCORP, INC. Note 9 - Short-term Borrowings Total short-term borrowings were $ 20.8 million as of December 31, 2025 and $ 2.0 million as of December 31, 2024, respectively. Short-term borrowings generally consist of federal funds purchased and advances from the FHLB with an original maturity of less than one year. Federal funds purchased from correspondent banks mature in one business day and are repriced daily based on the federal funds rate. Advances from the FHLB are collateralized by the Bank's investment in FHLB common stock and by a blanket lien on selected loan receivables, comprised principally of real estate secured loans. As of December 31, 2025, the amount of loans pledged totaled $ 2.7 billion. As of December 31, 2025, the Bank's unused short-term borrowing capacity with the FHLB totaled $ 1.7 billion (equal to $ 1.9 billion of maximum borrowing capacity less the aggregate amount of FHLB letters of credit securing public funds deposits, and other FHLB advances and obligations outstanding) upon satisfaction of any stock purchase requirements of the FHLB. The Bank also maintained unused overnight lines of credit with other correspondent banks totaling $ 35.0 million as of December 31, 2025. No draws have been made on these lines of credit and on December 31, 2025 and 2024, the balance was $ 0 . Note 10 - Long-term Debt The following table presents a summary of long-term debt as of December 31: (Dollars in thousands) December 31, 2025 December 31, 2024 FHLB fixed rate instruments: Due February 2026, 4.51 % $ 20,000 $ 20,000 Due August 2026, 4.80 % 212 523 Due February 2027, 6.71 % 10 17 Total FHLB fixed rate instruments 20,222 20,540 Finance lease obligations included in long-term debt 2,917 3,063 Total long-term debt $ 23,139 $ 23,603 Mid Penn prepaid no FHLB fixed rate instruments during the years ended December 31, 2025 and 2024. As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. As of December 31, 2025, and 2024, the Bank had long-term debt outstanding in the amount of $ 23.1 million and $ 23.6 million, respectively, consisting of FHLB fixed rate instruments, and a finance lease liability. The FHLB fixed rate instruments are secured under the terms of a blanket collateral agreement with the FHLB consisting of FHLB stock and qualifying Mid Penn loan receivables, principally real estate secured loans. Mid Penn also obtains letters of credit from the FHLB to secure certain public fund deposits of municipalities and school district customers, which are used as a legally allowable alternative to investment in securities. These FHLB letter of credit commitments totaled $ 162.5 million and $ 156.0 million as of December 31, 2025 and 2024, respectively. During the first quarter of 2019, Mid Penn entered into a lease agreement for one facility under a non-cancelable finance lease, which commenced March 1, 2019 and expires February 28, 2039 and is included in long-term debt on the Consolidated Balance Sheets. See "Note 7 - Leases", for more information related to Mid Penn’s finance lease obligation. The aggregate principal amounts due on FHLB fixed rate instruments subsequent to December 31, 2025, are as follows: (In thousands) 2026 $ 20,220 2027 2 $ 20,222 114 MID PENN BANCORP, INC. Note 11 - Subordinated Debt Subordinated Debt Assumed November 2021 with the Riverview Acquisition On November 30, 2021, Mid Penn completed its acquisition of Riverview and assumed $ 25.0 million of Subordinated Notes (the "Riverview Notes"). In accordance with purchase accounting principles, the Riverview Notes were recorded at fair value, including a premium of $ 2.3 million. The notes were treated as Tier 2 capital for regulatory reporting purposes. The Riverview Notes were issued by Riverview on October 6, 2020 in a private placement to certain qualified institutional buyers and accredited institutional investors. The Riverview Notes had a maturity date of October 15, 2030 and initially bore interest at a fixed rate of 5.75 % per annum before converting to a floating rate prior to redemption. The Riverview Notes were redeemable beginning October 15, 2025, and Mid Penn redeemed all of the Riverview Notes on such date. Subordinated Debt Issued December 2020 On December 22, 2020, Mid Penn issued $ 12.2 million of subordinated notes due December 2030 (the "December 2020 Notes") in a private placement to accredited investors. The December 2020 Notes were treated as Tier 2 capital for regulatory capital purposes. The December 2020 Notes initially bore interest at a fixed rate of 4.5 % per annum before converting to a floating rate prior to redemption. The December 2020 Notes became redeemable beginning December 31, 2025, and Mid Penn redeemed all of the December 2020 Notes on such date. Subordinated Debt Issued March 2020 On March 20, 2020, Mid Penn issued $ 15.0 million of subordinated notes due March 2030 (the "March 2020 Notes") in a private placement to accredited investors. The March 2020 Notes were treated as Tier 2 capital for regulatory capital purposes. The March 2020 Notes initially bore interest at a fixed rate of 4.0 % per annum before converting to a floating rate prior to redemption. The March 2020 Notes became redeemable on March 30, 2025 and Mid Penn redeemed all of the March 2020 Notes in full on June 30, 2025. Outstanding Balance As of December 31, 2025, the Company had no subordinated debt outstanding. 115 MID PENN BANCORP, INC. Note 12 - Derivative Financial Instruments Mid Penn manages its exposure to certain interest rate risks through the use of derivative financial instruments; however, none are entered into for speculative purposes. During the year ended December 31, 2025, Mid Penn had outstanding derivative contracts designated as hedges. Mid Penn’s free-standing derivative financial instruments are required to be carried at their fair value on the Consolidated Balance Sheets. Mortgage Banking Derivative Financial Instruments In connection with its mortgage banking activities, Mid Penn entered into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, Mid Penn entered into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held-for-sale. Forward sales commitments may have also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock was based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the measurement date. Information related to mortgage banking derivative activity is set forth in the following table: December 31, 2025 December 31, 2024 (In thousands) Notional Amount Asset (Liability) Fair Value Notional Amount Asset (Liability) Fair Value Interest Rate Lock Commitments Positive Fair Values $ 643 $ 4 $ 120 $ 1 Negative Fair Values 170 ( 1 ) 1,084 ( 4 ) Forward Commitments Positive Fair Values 1,129 6 2,380 7 Negative Fair Values $ 1,192 $ ( 4 ) $ 1,167 $ ( 6 ) For the years ended December 31, 2025, 2024, and 2023, Mid Penn recorded net gains from mortgage banking hedging activity of $ 12 thousand, $ 10 thousand, and $ 324 thousand, respectively. The following table presents derivative financial instruments and the amount of the net gains or losses recognized within other noninterest income on the Consolidated Statements of Income for the years ended December 31: (In thousands) 2025 2024 Interest Rate Lock Commitments $ 32 $ ( 3 ) Forward Commitments ( 21 ) 14 Total $ 11 $ 11 Loan-level Interest Rate Swaps Mid Penn enters into loan-level interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. Mid Penn simultaneously enters into loan-level interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of the offsetting customer and dealer counterparty swap agreements is that the customer pays a fixed rate of interest, while Mid Penn receives a floating rate. Mid Penn’s loan-level interest rate swaps are considered derivatives but are not accounted for using hedge accounting. 116 MID PENN BANCORP, INC. Information related to loan-level interest rate swaps is set forth in the following table: (Dollars in thousands) December 31, 2025 December 31, 2024 Loan-level interest rate swaps on loans with customers Notional amount $ 287,251 $ 217,150 Weighted-average remaining term (years) 4.16 5.11 Receive fixed rate (weighted-average) 5.13 % 4.68 % Pay variable rate (weighted-average) 6.08 % 6.64 % Estimated fair value (1) $ 8,796 $ 11,118 (Dollars in thousands) December 31, 2025 December 31, 2024 Loan-level interest rate swaps on loans with correspondents Notional amount $ 287,251 $ 217,150 Weighted-average remaining term (years) 4.16 5.11 Receive variable rate (weighted-average) 6.08 % 6.64 % Pay fixed rate (weighted-average) 5.13 % 4.68 % Estimated fair value (2) $ 8,796 $ 11,118 (1) The net amount of the estimated fair value is disclosed in Other Liabilities on the Consolidated Balance Sheet. (2) The net amount of the estimated fair value is disclosed in Other Assets on the Consolidated Balance Sheet. Cash Flow Hedges of Interest Rate Risk Mid Penn’s objectives in using interest rate derivatives are to reduce volatility in net interest income and to manage its exposure to interest rate movements. To accomplish this objective, Mid Penn primarily uses interest rate swaps as part of its interest rate risk management strategy. During the year ended December 31, 2025, Mid Penn had interest rate swaps designated as cash flow hedges to hedge the cash flows associated with existing brokered CDs. Information related to cash flow hedges is set forth in the following table: (Dollars in thousands) December 31, 2025 December 31, 2024 Cash flow hedges Notional amount $ 75,000 $ 295,000 Weighted-average remaining term (years) 0.84 1.55 Pay fixed rate (weighted-average) 3.81 % 3.64 % Receive variable rate (weighted average) 3.52 % 4.10 % Estimated fair value (1) $ 211 $ 2,590 (1) Estimated fair value, net of accrued interest receivable, is disclosed in Other Assets on the Consolidated Balance Sheet. For derivatives designated and qualifying as cash flow hedges of interest rate risk, the unrealized gain or loss is recorded in AOCI and subsequently reclassified into interest income in the same period during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest income as interest payments are made on Mid Penn’s variable-rate liabilities. During the next twelve months, Mid Penn estimates that an additional $ 223 thousand will be reclassified to interest expense. 117 MID PENN BANCORP, INC. Note 13 - Fair Value Measurement Mid Penn uses estimates of fair value in applying various accounting standards to its consolidated financial statements on either a recurring or nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. Mid Penn groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. The fair value hierarchy is as follows: Level 1 - Inputs that represent quoted prices for identical instruments in active markets. Level 2 - Inputs that represent quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Inputs that are largely unobservable, as little or no market data exists for the instrument being valued. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no transfers of assets between fair value Level 1 and Level 2 of the fair value hierarchy during the years ended December 31, 2025 and 2024. The following tables illustrate the assets and liabilities measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets: December 31, 2025 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: U.S. Treasury and U.S. government agencies $ — $ 19,066 $ — $ 19,066 Mortgage-backed U.S. government agencies — 353,397 — 353,397 State and political subdivision obligations — 3,834 — 3,834 Corporate debt securities — 40,017 — 40,017 Equity securities 5,446 — — 5,446 Loans held-for-sale — 3,668 — 3,668 Other assets: Derivative assets — 9,007 — 9,007 Other liabilities: Derivative liabilities — 8,796 — 8,796 December 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: U.S. Treasury and U.S. government agencies $ — $ 21,507 $ — $ 21,507 Mortgage-backed U.S. government agencies — 202,944 — 202,944 State and political subdivision obligations — 3,596 — 3,596 Corporate debt securities — 32,430 — 32,430 Equity securities 428 — — 428 Loans held-for-sale — 7,064 — 7,064 Other assets: Derivative assets — 13,708 — 13,708 Other liabilities: Derivative liabilities — 11,118 — 11,118 118 MID PENN BANCORP, INC. The valuation methodologies and assumptions used to estimate the fair value for the items in the preceding tables are as follows: Available-for-sale investment securities - The fair value of equity and debt securities classified as available-for-sale is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1) or matrix pricing (Level 2). Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather, relying on the securities’ relationship to other benchmark quoted prices. Equity securities - The fair value of equity securities with readily determinable fair values is recorded on the Consolidated Balance Sheet, with realized and unrealized gains and losses reported in other expense on the Consolidated Statements of Income. Loans held-for-sale - This category includes mortgage loans held-for-sale that are measured at fair value on a recurring basis. Fair values as of December 31, 2025 were measured as the price that secondary market investors were offering for loans with similar characteristics. Derivative instruments - Interest rate swaps are measured by alternative pricing sources with reasonable levels of price transparency in markets that are not active. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as active or liquid as those for more mature Level 1 markets. These markets do, however, have comparable, observable inputs in which an alternative pricing source values these assets to arrive at a fair market value. These characteristics classify interest rate swap agreements as Level 2. Mortgage banking derivatives - represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors and the fair value of interest rate swaps. The fair values of Mid Penn's interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. These characteristics classify mortgage banking derivatives as Level 2. See "Note 12 - Derivative Financial Instruments," for additional information. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis. These instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, upon acquisition or when there is evidence of impairment). The following table illustrates financial instruments measured at fair value on a nonrecurring basis: December 31, 2025 (In thousands) Level 1 Level 2 Level 3 Total Individually evaluated loans, net of ACL $ — $ — $ 20,903 $ 20,903 Foreclosed assets held-for-sale — — 7,806 7,806 December 31, 2024 (In thousands) Level 1 Level 2 Level 3 Total Individually evaluated loans, net of ACL $ — $ — $ 21,171 $ 21,171 Foreclosed assets held-for-sale — — 44 44 Net loans - This category consists of loans that were individually evaluated for credit losses, net of the related ACL, and have been classified as Level 3 assets. All of Mid Penn’s individually evaluated loans for 2025 and 2024, whether reporting a specific allowance allocation or not, are considered collateral-dependent. Mid Penn utilized Level 3 inputs such as independent appraisals of the underlying collateral, which generally includes Level 3 inputs which are not observable. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. Foreclosed assets held-for-sale - Values are based on appraisals that consider the sales prices of property in the proximate vicinity. 119 MID PENN BANCORP, INC. The following table presents additional information about the valuation techniques for level 3 assets measured at fair value on a nonrecurring basis: December 31, 2025 (In thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average Individually evaluated loans, net of ACL $ 20,903 Appraisal of collateral Appraisal adjustments 8 % - 100 % 44.9 % Foreclosed assets held-for-sale 7,806 Appraisal of collateral Appraisal adjustments 23 % - 100 % 39.8 % December 31, 2024 (In thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average Individually evaluated loans, net of ACL $ 21,171 Appraisal of collateral Appraisal adjustments 0 % - 100 % 5.6 % Foreclosed assets held-for-sale 44 Appraisal of collateral Appraisal adjustments 26 % - 26 % 26.0 % The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments: December 31, 2025 Estimated Fair Value (In thousands) Carrying Amount Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 98,918 $ 98,918 $ — $ — $ 98,918 Available-for-sale securities 416,314 — 416,314 — 416,314 Held-to-maturity securities 347,285 — 321,702 — 321,702 Equity securities 5,446 5,446 — — 5,446 Loans held-for-sale 3,668 — 3,668 — 3,668 Net loans 4,826,747 — — 4,866,731 4,866,731 Restricted investment in bank stocks 7,576 7,576 — 7,576 Accrued interest receivable 29,640 29,640 — — 29,640 Derivative assets 9,007 — 9,007 — 9,007 Financial instruments - liabilities Deposits $ 5,214,663 $ — $ 5,218,656 $ — $ 5,218,656 Short-term borrowings 20,833 — 20,833 — 20,833 Long-term debt (1) 20,222 — 20,223 — 20,223 Accrued interest payable 10,942 10,942 — — 10,942 Derivative liabilities 8,796 — 8,796 — 8,796 (1) Long-term debt excludes finance lease obligations. 120 MID PENN BANCORP, INC. December 31, 2024 Estimated Fair Value (In thousands) Carrying Amount Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 70,564 $ 70,564 $ — $ — $ 70,564 Available-for-sale securities 260,477 — 260,477 — 260,477 Held-to-maturity securities 382,447 — 340,648 — 340,648 Equity securities 428 428 — — 428 Loans held-for-sale 7,064 — 7,064 — 7,064 Net loans 4,407,556 — — 4,430,623 4,430,623 Restricted investment in bank stocks 7,461 7,461 — 7,461 Accrued interest receivable 26,846 26,846 — — 26,846 Derivative assets 13,708 — 13,708 — 13,708 Financial instruments - liabilities Deposits $ 4,689,927 $ — $ 4,684,548 $ — $ 4,684,548 Short-term borrowings 2,000 — 2,000 — 2,000 Long-term debt (1) 20,540 — 19,120 — 19,120 Subordinated debt 45,741 — 42,811 — 42,811 Accrued interest payable 13,484 13,484 — — 13,484 Derivative liabilities 11,118 — 11,118 — 11,118 (1) Long-term debt excludes finance lease obligations The Bank’s outstanding and unfunded credit commitments and financial standby letters of credit were deemed to have no significant fair value as of December 31, 2025 and 2024. 121 MID PENN BANCORP, INC. Note 14 - Postretirement Benefit Plans Mid Penn has a postretirement healthcare and life insurance benefit plan, which is noncontributory, covering certain full-time employees. Mid Penn also assumed noncontributory defined benefit pension plans as a result of the acquisitions of Scottdale on January 8, 2018 and Riverview on November 30, 2021. None of Mid Penn’s plans contained a promised interest crediting rate. Service costs related to plans benefiting Mid Penn employees are reported as a component of salaries and employee benefits on the Consolidated Statements of Income, while interest costs, expected return on plan assets, amortization (accretion) of prior service cost, and settlement gain are reported as a component of other income . Service costs, interest costs, and amortization of prior service costs related to plans benefiting Mid Penn’s nonemployee directors are reported as a component of director fees and benefits expense within the other expense line item on the Consolidated Statement of Income. The accrued benefit liability, related income statement impacts, and other significant aspects of the plans are detailed below. Life Insurance - Full-time employees who had at least ten years of service as of January 1, 2008 and retire with the Bank after age 55 and at least 20 years of service are eligible for term life insurance coverage. The insurance amount is $ 50 thousand until age 65, and decreases by $ 5 thousand per year until age 74. Thereafter, the insurance amount will be $ 5 thousand. The Corporation's obligation to pay life insurance premiums terminates if the retired employee obtains other employment. Health Benefit Plan - Full-time employees who had at least 10 years of service as of January 1, 2008 and who retire at age 55 or later, after completion of at least 20 years of service, are eligible for medical benefits. Medical benefits may be provided for up to five years after retirement. Employees who retired prior to December 31, 2015 may elect the least expensive single coverage in the employer’s group medical plan. If the retiree becomes eligible for Medicare during the five year duration of coverage, the Bank may, at its discretion, pay premiums for Medicare supplemental or similar coverage. For employees who retired between September 18, 2015 and December 31, 2015, the Bank may pay up to $ 5 thousand toward postretirement medical coverage. Employees who retired after December 31, 2015 may not participate in the employer’s group medical plan. Instead, the Bank may reimburse the retiree for up to $ 5 thousand (grossed up by 36.79 % as of December 31, 2025) in medical costs. Reimbursement terminates at any time during the five-year period if the retired employee obtains other employment or the retired employee dies. 122 MID PENN BANCORP, INC. The following tables present a reconciliation of the changes in the plan’s health and life insurance benefit obligations and fair value of plan assets for the years ended December 31, 2025 and 2024, and a statement of the funded status as of December 31, 2025 and 2024. (In thousands) December 31, Change in benefit obligations: 2025 2024 Benefit obligations, January 1 $ 226 $ 271 Service cost 1 1 Interest cost 11 11 Change in experience 1 ( 28 ) Change in assumptions 5 ( 7 ) Benefit payments ( 20 ) ( 22 ) Benefit obligations, December 31 $ 224 $ 226 Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions 20 22 Benefit payments ( 20 ) ( 22 ) Fair value of plan assets, December 31 — — Funded status at year end $ ( 224 ) $ ( 226 ) Mid Penn has capped the benefit to future retirees under its post-retirement health benefit plan. Employees who had achieved ten years of service as of January 1, 2008 and subsequently retire after at least 20 years of service are eligible for reimbursement of major medical insurance premiums up to $ 5 thousand if the employee has not yet reached age 65. Upon becoming eligible for Medicare, Mid Penn may reimburse up to $ 5 thousand for Medicare Advantage or similar supplemental coverage. The maximum reimbursement period will not exceed five years , regardless of retirement age, and will end upon the participant obtaining other employment or death. The amount recognized in other liabilities on the Consolidated Balance Sheets as of December 31, is as follows: (In thousands) 2025 2024 Accrued benefit liability $ 224 $ 226 The amounts recognized in accumulated other comprehensive income as of December 31 consist of: (In thousands) 2025 2024 Net gain, pretax $ ( 51 ) $ ( 65 ) Net prior service cost, pretax — — The accumulated benefit obligation for health and life insurance plans was $ 224 thousand and $ 226 thousand as of December 31, 2025 and 2024, respectively. 123 MID PENN BANCORP, INC. The components of net periodic postretirement benefit cost for 2025, 2024 and 2023 are as follows: (In thousands) 2025 2024 2023 Service cost $ 1 $ 1 $ 1 Interest cost 11 11 13 Amortization of prior service cost — — 10 Amortization of net gain ( 8 ) ( 7 ) ( 2 ) Net periodic postretirement benefit cost $ 4 $ 5 $ 22 Weighted-average assumptions used in the measurement of Mid Penn's benefit obligations as of December 31 are as follows: Weighted-average assumptions: 2025 2024 Discount rate 5.07 % 5.32 % Rate of compensation increase — — Weighted-average assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31 are as follows: Weighted-average assumptions: 2025 2024 2023 Discount rate 5.32 % 4.67 % 4.90 % Rate of compensation increase — — — Assumed health care cost trend rates as of December 31 are as follows: 2025 2024 2023 Health care cost trend rate assumed for next year 8.00 % 7.00 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.50 % 5.50 % 5.50 % Year that the rate reaches the ultimate trend rate 2029 2028 2027 The following table shows the estimated benefit payments for future periods: (In thousands) 2026 $ 28 2027 28 2028 27 2029 18 2030 14 2031-2035 67 124 MID PENN BANCORP, INC. Directors’ Retirement Plan - Mid Penn had an unfunded defined benefit retirement plan ("Director's Plan") for directors with benefits based on years of service. On October 1, 2023, the Bank decided to terminate the Plan and pay out any benefits to participants in a lump sum cash payout of $ 1.3 million, which was paid out on October 1, 2024. The following tables provide a reconciliation of the changes in the Director's Plan benefit obligations and fair value of plan assets for the years ended December 31, 2025 and 2024, and a statement of the status as of December 31, 2025 and 2024. This Plan was unfunded. (In thousands) December 31, Change in benefit obligations: 2025 2024 Benefit obligations, January 1 $ — $ 1,306 Service cost — — Interest cost — — Actuarial loss — — Change in assumptions — — Benefit payments — ( 1,306 ) Benefit obligations, December 31 $ — $ — Change in fair value of plan assets: Fair value of plan assets, January 1 $ — $ — Employer contributions — 1,306 Benefit payments — ( 1,306 ) Fair value of plan assets, — — Funded status at year end $ — $ — Amounts recognized in other liabilities on the Consolidated Balance Sheet as of December 31 are as follows: (In thousands) 2025 2024 Accrued benefit liability $ — $ — Amounts recognized in accumulated other comprehensive loss (income) as of December 31 consist of: (In thousands) 2025 2024 Net prior service cost, pretax $ — $ — Net loss, pretax — — The accumulated benefit obligation for the retirement plan was zero as of December 31, 2025 and 2024, respectively. The components of net periodic retirement cost for 2025, 2024 and 2023 are as follows: (In thousands) 2025 2024 2023 Service cost $ — $ — $ 56 Interest cost — — 61 Amortization of net loss — — 34 Net periodic retirement cost $ — $ — $ 151 125 MID PENN BANCORP, INC. Weighted-average assumptions used in the measurement of Mid Penn’s benefit obligations as of December 31 are as follows: Weighted-average assumptions: 2025 2024 Discount rate — % — % Change in consumer price index — — Weighted-average assumptions used in the measurement of Mid Penn’s net periodic benefit cost for the years ended December 31 are as follows: Weighted-average assumptions: 2025 2024 2023 Discount rate — % — % 4.80 % Change in consumer price index — — 3.40 The Bank is the owner and beneficiary of insurance policies on the lives of certain officers and directors, which informally fund the retirement plan obligation. The aggregate cash surrender value of these policies was $ 4.0 million and $ 4.3 million as of December 31, 2025 and 2024, respectively. Scottdale Defined Benefit Pension Plan - As a result of the acquisition of Scottdale on January 8, 2018, Mid Penn has assumed a noncontributory defined benefit pension plan ("Scottdale Plan") covering certain former employees of Scottdale. After the acquisition, Mid Penn did not allow for any further participants to join the Plan. Mid Penn’s policy is to fund pension benefits as accrued. The Scottdale Plan’s assets are managed by the trust department of the Bank and were primarily invested in corporate equity securities at the time of acquisition but have since been diversified into a more conservative investment profile, including fixed income debt securities. The investment objective of the plan is "Balanced" to provide relatively stable growth from assets offset by a moderate level of income with target portfolio allocations of up to 20 % cash, 30 - 50 % fixed income securities, and 40 - 60 % equity securities. The valuation of the plan’s assets is subject to market fluctuations. For the year ended December 31, 2025, Mid Penn recognized $ 192 thousand of settlement gains. For the year ended December 31, 2024, Mid Penn recognized no settlement gains. The settlement gains were recorded in noninterest income as a component of other income in the Consolidated Statements of Income for the year ended December 31, 2025. 126 MID PENN BANCORP, INC. The following tables provide a reconciliation of the changes in the Scottdale Plan’s benefit obligations and fair value of plan assets for the year ended December 31, 2025 and 2024, and a statement of the status as of December 31, 2025 and 2024: (In thousands) December 31, Change in benefit obligations: 2025 2024 Benefit obligations, January 1 $ 2,547 $ 2,659 Service cost 15 25 Interest cost 136 130 Settlement loss 4 — Actuarial gain ( 35 ) ( 97 ) Settlement payments ( 493 ) — Benefit payments ( 87 ) ( 170 ) Benefit obligations, December 31 $ 2,087 $ 2,547 Change in fair value of plan assets: Fair value of plan assets, January 1 $ 3,597 $ 3,468 Return on plan assets 415 328 Employer contributions — — Benefit payments ( 87 ) ( 170 ) Administrative expenses ( 29 ) ( 29 ) Settlement payments ( 493 ) — Fair value of plan assets, December 31 3,403 3,597 Funded status at year end $ 1,316 $ 1,050 Amounts recognized on the Consolidated Balance Sheets as of December 31 are as follows: (In thousands) 2025 2024 Accrued pension benefit asset $ 1,316 $ 1,050 Amounts recognized in accumulated other comprehensive loss consist of the following as of December 31: (In thousands) 2025 2024 Unrecognized actuarial gain $ 813 $ 798 The accumulated benefit obligation for the retirement plan was $ 2.1 million and $ 2.5 million as of December 31, 2025 and 2024, respectively. The components of net periodic retirement cost for December 31 are as follows: (In thousands) 2025 2024 2023 Service cost $ 15 $ 25 $ 58 Interest cost 136 130 197 Expected return on plan assets ( 159 ) ( 153 ) ( 211 ) Recognized net actuarial gain ( 52 ) ( 25 ) ( 63 ) Net periodic retirement income $ ( 60 ) $ ( 23 ) $ ( 19 ) 127 MID PENN BANCORP, INC. Weighted-average assumptions used in the measurement of Mid Penn’s benefit obligations and net periodic pension costs as of December 31 are as follows: Weighted-average assumptions: 2025 2024 2023 Discount rate 5.50 % 5.50 % 5.00 % Expected long-term return on plan assets 4.50 4.50 4.50 Rate of compensation increases 2.50 2.50 2.50 The following table presents a summary of the Scottdale Plan’s assets at fair value and the weighted-average asset allocations by investment category as of December 31: Estimated Fair Value Percentage of Total Assets Estimated Fair Value Percentage of Total Assets (Dollars in thousands) 2025 2024 Cash and cash equivalents $ 365 10.7 % $ 263 7.3 % Common stock 1,894 55.7 2,081 57.9 Corporate bonds 1,144 33.6 1,253 34.8 $ 3,403 100.0 % $ 3,597 100.0 % The description of the valuation methodologies used for assets measured at fair value is disclosed below. Common Stocks Valued at the closing price reported on the active market on which the individual securities are traded and therefore would be categorized as Level 1 assets under the fair value hierarchy. Corporate Bonds Valued using matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather relying on the securities’ relationship to other benchmark quoted prices and therefore would be categorized as Level 2 assets under the fair value hierarchy. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following table shows the estimated benefit payments for future periods: (In thousands) 2026 $ 108 2027 124 2028 155 2029 154 2030 178 2031-2035 840 Riverview Defined Benefit Plan - As a result of the Riverview Acquisition on November 30, 2021, Mid Penn assumed noncontributory defined benefit pension plans ("Riverview Plans") covering certain former employees of Riverview (or its predecessor-in-interest) as follows: Pursuant to the consolidation with Union Bancorp, Inc. ("Union") effective November 1, 2013, Riverview assumed Union’s noncontributory defined benefit pension plan, which substantially covered all Union employees. The plan 128 MID PENN BANCORP, INC. benefits were based on average salary and years of service. Union elected to freeze all benefits earned under the plan effective January 1, 2007. Riverview also assumed responsibility of Citizens National Bank of Meyersdale’s ("Citizens") noncontributory defined benefit pension plan effective as of the December 31, 2015 merger date. The plan substantially covered all Citizens employees, and the plan benefits were based on average salary and years of service. Citizens elected to freeze all benefits earned under the plan effective January 1, 2013. As a result of a merger effective October 1, 2017, Riverview assumed responsibility of CBT Financial Corp’s ("CBT") postretirement benefit plan, which is an unfunded postretirement benefit plan covering health insurance costs and post-retirement life insurance benefits for certain retirees. Subsequent to the Riverview Acquisition, Mid Penn disallowed any further participants to join the Riverview Plans. Mid Penn’s policy is to fund pension and post-retirement benefits as accrued. The Riverview Plans’ assets are managed by a third party and were primarily invested in a combination of cash and cash equivalents, equity securities and fixed income securities at the time of acquisition. The valuation of the Riverview Plans’ assets is subject to market fluctuations. The following tables provide a reconciliation of the changes in the Riverview Plans' benefit obligations and fair value of plan assets for year ended December 31, 2025, and a statement of the status as of December 31: (In thousands) Change in benefit obligations: 2025 2024 Benefit obligations, January 1 $ 5,740 $ 6,442 Interest cost 302 299 Actuarial loss ( 8 ) ( 483 ) Benefit payments ( 508 ) ( 518 ) Benefit obligations, December 31 $ 5,526 $ 5,740 Change in fair value of plan assets: Fair value of plan assets, January 1, $ 6,711 $ 6,895 Return on plan assets 697 329 Contributions — 3 Benefit payments ( 505 ) ( 516 ) Fair value of plan assets, December 31 6,903 6,711 Funded status at year end $ 1,377 $ 971 Amounts recognized in other liabilities on the Consolidated Balance Sheets as of December 31 are as follows: (In thousands) 2025 2024 Accrued pension benefit asset $ 1,377 $ 971 As of December 31, 2025 amounts related to the Riverview Plans that have been recognized in accumulated other comprehensive loss but not yet recognized as a component of net periodic pension cost are as follows: (In thousands) 2025 2024 Unrecognized actuarial gain $ 153 $ 415 129 MID PENN BANCORP, INC. The components of net periodic pension and postretirement benefit cost for the year ended December 31, 2025 and 2024 are as follows: (In thousands) 2025 2024 2023 Interest cost $ 302 $ 299 $ 309 Expected return on plan assets ( 387 ) ( 397 ) ( 387 ) Amortization of net loss 10 12 — Net periodic pension benefit $ ( 75 ) $ ( 86 ) $ ( 78 ) (In thousands) 2025 2024 2023 Service credit $ — $ — $ — Interest cost 1 1 1 Unrecognized gain ( 1 ) ( 1 ) ( 1 ) Net periodic postretirement benefit $ — $ — $ — The accumulated benefit obligation was $ 5.5 million and $ 5.7 million as of December 31, 2025 and 2024, respectively, for the Riverview Plans. Weighted-average assumptions used in the measurement of Mid Penn’s benefit obligations and net periodic pension costs as of December 31, 2025 and 2024 are as follows: Pension Benefits Postretirement Life Insurance Benefits 2025 Union Citizens CBT Discount rate 5.54 % 5.54 % 4.99 % Expected long-term return on plan assets 6.00 6.00 n/a 2024 Discount rate 4.83 % 4.83 % 5.32 % Expected long-term return on plan assets 6.00 6.00 n/a The following summarizes the actuarial assumptions used for the Riverview Plans: For the pension plan, the selected long-term rate of return on plan assets was primarily based on the asset allocation of the plan’s assets. Analysis of the historic returns on these asset classes and projections of expected future returns were considered in setting the long-term rate of return. The benefit offered under the postretirement benefit plan is fixed; therefore, the accumulated postretirement benefit obligation is not impacted by health care cost trends or the rate of compensation increase. 130 MID PENN BANCORP, INC. The following table presents a summary of the Riverview Plan’s assets at fair value and the weighted-average asset allocations by investment category as of December 31: (Dollars in thousands) Estimated Fair Value Percentage of Total Assets Estimated Fair Value Percentage of Total Assets Weighted-average asset allocations: 2025 2024 Cash and cash equivalents $ 60 0.9 % $ 60 0.9 % Mutual fund - equity 2,618 37.9 2,619 39.0 Mutual fund / EFTs - fixed income 3,926 56.9 3,716 55.4 Common / collective trusts equity 299 4.3 316 4.7 $ 6,903 100 % $ 6,711 100 % The valuation used is based on quoted market prices provided by an independent third party. The fair values of mutual fund investments are considered Level 1 assets in the fair value hierarchy and the collective trusts equity are considered Level 2 assets. The following table shows the estimated benefit payments for future periods: (In thousands) Pension Benefits Postretirement Life Insurance Benefits 2026 $ 511 $ 4 2027 498 3 2028 499 3 2029 490 3 2030 478 3 2031-2035 2,154 9 131 MID PENN BANCORP, INC. Note 15 - Other Benefit Plans Mid Penn maintains several benefit plans for current and former employees of the Corporation. Liabilities related to the plans are recorded in other liabilities on the Consolidated Balance Sheet, and the aggregate cash surrender values associated with life insurance plans are recorded in the cash surrender value of life insurance line item on the Consolidated Balance Sheet. Significant aspects of the plans are detailed below. Defined-Contribution 401(k) Plan - The Bank sponsors a 401(k) plan that covers substantially all employees. The plan allows employees to defer a portion of their salaries and wages and provides for employer matching contributions, subject to certain percentage limits. The Corporation’s matching contributions to the 401(k) Plan totaled $ 2.1 million, $ 1.8 million, and $ 1.7 million for the years ended December 31, 2025, 2024, and 2023, respectively and are included as a component of salaries and benefits expense in the Consolidated Statements of Income. The plan also includes a funded contributory profit-sharing provision when applicable. The Corporation did not make profit-sharing contributions in 2025, 2024, or 2023. Deferred Compensation Plan - Mid Penn sponsors a directors’ deferred compensation plan that allows directors to defer receipt of director fees for a specified period to provide future retirement income. The Corporation recorded accrued liabilities of $ 2.8 million and $ 2.6 million as of December 31, 2025 and 2024, respectively. Deferred compensation expense totaled $ 171 thousand, $ 159 thousand and $ 127 thousand for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in other expense in the Consolidated Statements of Income. As part of the acquisition of William Penn, the Company assumed nonqualified deferred compensation plan obligations covering four participants. The balance related to the acquired plans was approximately $ 1.0 million as of December 31, 2025 and is included in deferred compensation liabilities within other liabilities on the Consolidated Balance Sheets. Supplemental Executive Retirement Plan - The Corporation maintains supplemental executive retirement plan agreements ("SERPs") with certain executive officers and members of executive management. These agreements provide for the monthly payment of a fixed cash benefit over a period of 15 years, commencing on the first day of the month following the executive's separation from service due to: (i) normal retirement age (generally age 70 ), (ii) disability, (iii) death, or (iv) a qualifying change in control of the Bank. In 2025, the Corporation amended certain existing SERP agreements and entered into an additional SERP agreement with its Chief Executive Officer. Benefits vest over a term of four to ten years , with a portion of benefits having previously vested for several of the participants. Any unvested portion of the benefit becomes fully vested upon a change in control of the Bank. The accrued liability for the supplemental retirement plans totaled $ 4.2 million and $ 3.2 million as of December 31, 2025 and 2024, respectively. Expense related to the SERPs totaled $ 979 thousand, $ 739 thousand and $ 792 thousand for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in salaries and benefits expense in the Consolidated Statements of Income. In connection with the William Penn Acquisition, the Company also assumed supplemental retirement plan obligations covering three participants. The balance related to the acquired plans was approximately $ 315 thousand as of December 31, 2025 and is included in other liabilities on the Consolidated Balance Sheets. Split Dollar Life Insurance Arrangements - As of December 31, 2025 and 2024, the Bank maintained split dollar life insurance arrangements with certain current and former employees and executives. The aggregate collateral assignment and cash surrender values of these arrangements were approximately $ 1.4 million as of December 31, 2025 and 2024, respectively. Mid Penn acquired Phoenix’s split dollar life insurance arrangements in 2015, which had aggregate cash surrender values of $ 4.6 million and $ 4.5 million as of December 31, 2025 and 2024, respectively. In 2018, Mid Penn acquired First Priority’s split dollar life insurance arrangements, with aggregate cash surrender values of $ 3.8 million as of December 31, 132 MID PENN BANCORP, INC. 2025 and 2024, respectively. In 2021, Mid Penn acquired Riverview’s split dollar life insurance arrangements, which had aggregate cash surrender values of $ 1.4 million as of December 31, 2025 and 2024, respectively. Rabbi Trust - As a result of the Riverview acquisition, Mid Penn assumed certain benefit plan liabilities related to executive nonqualified retirement benefits, deferred compensation plans, and separation agreements, which are included in other liabilities on the Consolidated Balance Sheets. These obligations are funded through a Rabbi Trust, which provides a source of funds for satisfying the related compensation obligations. Cash balances held in the Rabbi Trust are included in other assets on the Consolidated Balance Sheets and totaled $ 2.5 million and $ 2.7 million as of December 31, 2025 and 2024, respectively. The details of the compensation arrangements for the years ended December 31 include: (In thousands) Fully Funded Gross Amounts Compensation Arrangements 2025 2024 Supplemental executive retirement agreements $ 1,012 $ 1,112 Executive deferred compensation agreement 1,031 1,235 Total compensation agreements $ 2,043 $ 2,347 133 MID PENN BANCORP, INC. Note 16 - Income Taxes Mid Penn accounts for income taxes in accordance with ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributable to the differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. In 2025, Mid Penn adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The adoption impacted the Corporation's income tax disclosures but did not have a material impact on its consolidated financial position, results of operations, or cash flows. Significant components of the Corporation’s net deferred tax asset as of December 31, 2025 and 2024 are shown below. (In thousands) 2025 2024 Deferred tax assets: Allowance for loan losses $ 8,031 $ 7,878 Loan fees 811 769 Deferred compensation 1,899 1,317 Benefit plans 46 50 Unrealized loss on securities 2,373 5,389 Lease adjustments 53 87 Business combination adjustments 7,057 4,659 Acquired NOL, Section 1231, and charitable contribution carryforwards 3,198 3,153 Rabbi trust 442 521 Riverview AMT credits 547 621 Equity compensation 776 249 Riverview subordinated debt fair value adjustment — 139 Software renewal costs 194 222 Unfunded commitments and loan basis adjustments 609 491 Investments in flow-through entities 203 517 Other 276 482 Total deferred tax assets $ 26,515 $ 26,544 Deferred tax liabilities: Depreciation $ ( 2,134 ) $ ( 1,160 ) Bond accretion ( 401 ) ( 269 ) Goodwill and intangibles ( 226 ) ( 505 ) Prepaid expenses ( 818 ) ( 74 ) Benefit plans ( 1,520 ) ( 1,368 ) Interest rate swaps — ( 421 ) Total deferred tax liabilities ( 5,099 ) ( 3,797 ) Deferred tax asset, net $ 21,416 $ 22,747 In assessing the Corporation’s ability to realize deferred federal tax assets, management considers whether it is more likely than not some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. As of December 31, 2025, based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that Mid Penn will realize the benefits of these deferred tax assets and has no valuation allowances recorded against any components of its 134 MID PENN BANCORP, INC. deferred tax asset, including the carryforward balances related to net operating losses ("NOL"), Section 1231 losses, and charitable contribution carryforwards. As of December 31, 2025, Mid Penn had NOL carryforwards of $ 3.2 million, which were acquired in prior business combinations and are set to expire in 2032. Utilization of these NOLs is subject to limitations under the Tax Cuts and Jobs Act ("TCJA"), which generally limits the deduction to 80% of taxable income computed without regard to the NOL deduction, as well as limitations under Internal Revenue Code Section 382. Mid Penn had no charitable contribution carryforwards as of December 31, 2025 and December 31, 2024. During the years ended December 31, 2025, 2024 and 2023, Mid Penn generated sufficient taxable income to utilize all charitable contribution carryforwards. Mid Penn expects to generate sufficient taxable income to utilize all charitable contribution carryforwards in the future. The annual usage of acquired NOL, charitable contribution carryforwards, and Section 1231 losses is limited by Internal Revenue Service ("IRS") Section 382 regulations. These limitations are calculated separately for each acquisition as the federal long-term tax-exempt rate at the date of acquisition multiplied by the valuation of the selling company as calculated in accordance with GAAP. As a result, the usage of acquired NOLs, charitable contribution carryforwards, AMT carryforwards, and Section 1231 losses to offset taxable income related to the Riverview Acquisition is limited to $ 2.0 million per year. Mid Penn and its subsidiaries are subject to U.S. federal income tax and income tax for the states of Pennsylvania, New Jersey, Florida, and Maryland. These jurisdictions represent the primary states comprising the majority of the Company's state and local income tax expense. With limited exceptions, Mid Penn is no longer subject to examination by taxing authorities for years before 2017. The provision for income taxes consists of the following: (In thousands) 2025 2024 2023 Current tax provision Federal $ 2,199 $ 7,118 $ 7,570 State 108 864 1,033 Total current tax provision $ 2,307 $ 7,982 $ 8,603 Deferred tax expense (benefit) Federal $ 12,910 $ 1,998 $ ( 525 ) State 905 615 ( 781 ) Total deferred tax expense (benefit) 13,815 2,613 ( 1,306 ) Total provision for income taxes $ 16,122 $ 10,595 $ 7,297 135 MID PENN BANCORP, INC. A reconciliation of the federal income tax provision at the statutory rate of 21% to Mid Penn's actual federal income tax provision at its effective rate is as follows: (In thousands) 2025 2024 2023 Provision at the expected statutory rate $ 15,198 21.0 % $ 12,607 21.0 % $ 9,388 21.0 % Low income housing partnership tax credits ( 614 ) ( 0.8 ) ( 2,163 ) ( 3.6 ) ( 1,337 ) ( 3.0 ) Effect of tax-exempt income ( 770 ) ( 1.1 ) ( 804 ) ( 1.3 ) ( 641 ) ( 1.4 ) Effect of investment in life insurance ( 485 ) ( 0.7 ) ( 770 ) ( 1.3 ) ( 252 ) ( 0.6 ) Nondeductible merger and acquisition expense 704 1.0 48 0.1 207 0.5 State income taxes, net of federal tax benefit 800 1.1 1,169 1.9 199 0.4 Nondeductible interest 128 0.2 150 0.2 108 0.2 Executive compensation 581 0.8 — — — — Equity compensation 242 0.3 — — — — Other items 338 0.5 358 0.6 ( 375 ) ( 0.8 ) Provision for income taxes $ 16,122 22.3 % $ 10,595 17.6 % $ 7,297 16.3 % Mid Penn has no unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate. Mid Penn does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. No amounts for interest and penalties were recorded in income tax expense in the Consolidated Statement of Income for the years ended December 31, 2025, 2024, or 2023. There were no amounts accrued for interest and penalties as of December 31, 2025 or 2024. Mid Penn paid the following income taxes, net of refunds, during the year ended December 31, 2025: (In thousands) 2025 Federal $ 5,350 State New Jersey 395 Other states 7 Total state 402 Total Income Taxes Paid $ 5,752 136 MID PENN BANCORP, INC. Note 17 - Regulatory Matters Mid Penn and the Bank are subject to regulatory capital requirements administered by banking regulators. Failure to meet minimum capital requirements can trigger certain mandatory and, possibly, additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the Corporation's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory account practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As of December 31, 2025 and 2024, the Corporation and the Bank met all applicable capital adequacy requirements, and the Bank was considered "well-capitalized" under applicable regulatory standards. However, future changes in regulations could increase capital requirements and may have an adverse effect on capital resources. Minimum regulatory capital requirements established by Basel III rules require the Corporation and the Bank to: • Meet a minimum Common Equity Tier I capital ratio of 4.5 % of risk-weighted assets; • Meet a minimum Tier I Capital ratio of 6.0 % of risk-weighted assets; • Meet a minimum Total Capital ratio of 8.0 % of risk-weighted assets; • Meet a minimum Tier I leverage capital ratio of 4.0 % of average assets; • Maintain a "capital conservation buffer" of 2.5 % above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonuses; and • Comply with the definition of capital to improve the ability of regulatory capital instruments to absorb losses. The Basel III Rules use a standardized approach for risk weightings. Failure to maintain the "capital conservation buffer" results in restrictions on capital distributions and certain discretionary bonus payments to executive officers. As a result, under the Basel III Rules, if the Bank fails to maintain the required minimum capital conservation buffer, the Corporation will be subject to limits, and possibly prohibitions, on its ability to obtain capital distributions from the Bank. If the Corporation does not receive sufficient cash dividends from the Bank, it may not have sufficient funds to pay dividends on its common stock, service its debt obligations or repurchase its common stock. Certain restrictions exist regarding the ability of the Bank to transfer funds to the Corporation in the form of cash dividends, loans, or advances. The amount of dividends that may be paid from the Bank to the Corporation in any calendar year is limited to the Bank’s current year’s net profits, combined with the retained net profits of the preceding two years. For the year ended December 31, 2025, $ 74.2 million of undistributed earnings of the Bank, included in the consolidated shareholders’ equity balance, was available for distribution to the Corporation in the form of dividends without prior regulatory approval, subject to regulatory capital requirements below. 137 MID PENN BANCORP, INC. The following tables present the regulatory capital levels, leverage ratios, and risk-based capital ratios as of December 31: Actual Minimum for Basel III Capital Adequacy To Be Well-Capitalized Under Prompt Corrective Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Mid Penn Bancorp, Inc. 2025 Tier 1 Capital (to Average Assets) $ 668,092 11.0 % $ 242,447 4.0 % N/A N/A Common Equity Tier 1 Capital (to Risk-Weighted Assets) 668,092 13.5 345,190 7.0 N/A N/A Tier 1 Capital (to Risk-Weighted Assets) 668,092 13.5 419,160 8.5 N/A N/A Total Capital (to Risk-Weighted Assets) 706,029 14.3 517,785 10.5 N/A N/A Mid Penn Bank 2025 Tier 1 Capital (to Average Assets) $ 656,480 10.9 % $ 241,963 4.0 % $ 302,453 5.0 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 656,480 13.4 344,074 7.0 319,497 6.5 Tier 1 Capital (to Risk-Weighted Assets) 656,480 13.4 417,804 8.5 393,227 8.0 Total Capital (to Risk-Weighted Assets) 694,417 14.1 516,111 10.5 491,534 10.0 Mid Penn Bancorp, Inc. 2024 Tier 1 Capital (to Average Assets) $ 535,501 10.0 % $ 214,621 4.0 % N/A N/A Common Equity Tier 1 Capital (to Risk-Weighted Assets) 535,501 11.9 313,979 7.0 N/A N/A Tier 1 Capital (to Risk-Weighted Assets) 535,501 11.9 381,261 8.5 N/A N/A Total Capital (to Risk-Weighted Assets) 618,971 13.8 470,969 10.5 N/A N/A Mid Penn Bank 2024 Tier 1 Capital (to Average Assets) $ 495,729 9.2 % $ 214,461 4.0 % $ 268,076 5.0 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) 495,729 11.1 313,456 7.0 291,066 6.5 Tier 1 Capital (to Risk-Weighted Assets) 495,729 11.1 380,625 8.5 358,235 8.0 Total Capital (to Risk-Weighted Assets) 533,458 11.9 470,183 10.5 $ 447,794 10.0 138 MID PENN BANCORP, INC. Note 18 - Commitments and Contingencies Mid Penn is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These instruments include commitments to extend credit and standby letters of credit. Commitments to extend credit are agreements to lend to a customer unless there is a violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Mid Penn evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit and financial guarantees written are conditional commitments to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Mid Penn had $ 66.5 million and $ 64.3 million of standby letters of credit outstanding as of December 31, 2025 and December 31, 2024, respectively. Mid Penn does not anticipate any losses resulting from these transactions. The amount of the liability as of December 31, 2025 and December 31, 2024 for payment under standby letters of credit issued was not considered material. Mid Penn is required to estimate expected credit losses for OBS credit exposures which are not unconditionally cancellable. Mid Penn maintains a separate ACL on OBS credit exposures, including unfunded loan commitments and letters of credit, which is included in other liabilities on the accompanying Consolidated Balance Sheets. The ACL - OBS is adjusted as a provision for OBS commitments in noninterest expense. The estimate includes consideration of the likelihood that funding will occur, an estimate of exposure at default that is derived from utilization rate assumptions using a non-modeled approach, and PD and LGD estimates derived from the same models and approaches used for Mid Penn's other loan portfolio segments described in "Note 4 - Loans and Allowance for Credit Losses - Loans" above, as these unfunded commitments share similar risk characteristics with these loan portfolio segments. The ACL - OBS as of December 31, 2025 and December 31, 2024 was $ 2.9 million. The benefit for OBS for the year ended December 31, 2025 was $ 26 thousand. On January 1, 2023 in conjunction with adopting ASC 326, Mid Penn recorded an additional $ 3.1 million of provision for OBS which was included in the adoption cumulative effect adjustment. The following table presents the activity in the ACL - OBS by segment for the year ended December 31, 2025 and December 31, 2024: (In thousands) Balance as of December 31, 2024 (Benefit)/Provision for Credit Loss (1) Balance as of December 31, 2025 1-4 Family Rental $ 16 $ ( 4 ) $ 12 Commercial and industrial 1,165 292 1,457 CRE NonOwner Occupied 132 2 134 CRE Owner Occupied 98 ( 5 ) 93 Consumer 3 — 3 Farmland 92 5 97 HELOC & Junior Liens 92 38 130 Multifamily 27 ( 15 ) 12 Other Construction & Land 792 ( 50 ) 742 Residential Construction 516 ( 287 ) 229 Residential First Liens 6 ( 2 ) 4 $ 2,939 $ ( 26 ) $ 2,913 (1) Includes the impact of the William Penn Acquisition on April 30, 2025. 139 MID PENN BANCORP, INC. (In thousands) Balance as of December 31, 2023 (Benefit)/Provision for Credit Loss Balance as of December 31, 2024 1-4 Family Rental $ 11 $ 5 $ 16 Commercial and industrial 1,270 ( 105 ) 1,165 CRE NonOwner Occupied 113 19 132 CRE Owner Occupied 106 ( 8 ) 98 Consumer 3 — 3 Farmland 108 ( 16 ) 92 HELOC & Junior Liens 100 ( 8 ) 92 Multifamily 24 3 27 Other Construction & Land 1,036 ( 244 ) 792 Residential Construction 778 ( 262 ) 516 Residential First Liens 18 ( 12 ) 6 $ 3,567 $ ( 628 ) $ 2,939 Litigation Mid Penn and its subsidiaries are subject to various pending and threatened legal proceedings or other matters arising out of the normal conduct of business in which claims for monetary damages are asserted. As of the date of this report, management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of such pending or threatened matters will be material to Mid Penn’s consolidated financial position. On at least a quarterly basis, Mid Penn assesses its liabilities and contingencies in connection with such matters. For those matters where it is probable that Mid Penn will incur losses and the amounts of the losses can be reasonably estimated, Mid Penn records an expense and corresponding liability in its consolidated financial statements. To the extent such matters could result in exposure in excess of that liability, the amount of such excess is not currently estimable. The range of losses for matters where an exposure is not currently estimable or considered probable is not believed to be material in the aggregate. This is based on information currently available to Mid Penn and involves elements of judgment and significant uncertainties. While Mid Penn does not believe that the outcome of pending or threatened litigation or other matters will be material to Mid Penn’s consolidated financial position, it cannot rule out the possibility that such outcomes will be material to the consolidated results of operations for a particular reporting period in the future. In addition, regardless of the ultimate outcome of any such legal proceeding, inquiry or investigation, any such matter could cause Mid Penn to incur additional expenses, which could be significant, and possibly material, to Mid Penn’s results of operations in any future period. 140 MID PENN BANCORP, INC. Note 19 - Earnings Per Share Basic earnings per share ("EPS") is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding plus the effect of potentially dilutive common shares, which include stock options and unvested restricted stock awards, using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per common share for years ended December 31: (In thousands, except per share data) 2025 2024 2023 Net income available to common shareholders $ 56,248 $ 49,437 $ 37,397 Weighted-average common shares outstanding - basic 21,757,060 17,026,240 16,319,006 Dilutive effect of stock-based compensation 265,415 44,622 31,957 Weighted-average common shares outstanding - diluted 22,022,475 17,070,862 16,350,963 Basic earnings per common share $ 2.59 $ 2.90 $ 2.29 Diluted earnings per common share 2.55 2.90 2.29 Anti-dilutive shares are common stock equivalents with weighted-average exercise prices in excess of the weighted-average market value for the periods presented. There were 9,691 stock options that were anti-dilutive for the year ended December 31, 2025. These stock options were assumed in the William Penn acquisition. There were no antidilutive shares for the years ended December 31, 2024 and 2023. On November 5, 2024, Mid Penn completed an underwritten public offering of 2,375,000 shares of common stock at a price of $ 29.50 per share, with the aggregate gross proceeds of the offering totaling $ 70.0 million before underwriting discounts and offering expenses. The net proceeds of the offering after deducting the underwriting discount and other offering expenses were $ 67.0 million. Additionally, on November 5, 2024, Mid Penn sold an additional 356,250 shares of the Corporation's common stock pursuant to an option granted to the underwriters, at the public offering price less underwriting discounts and commissions, or $ 28.025 per share. In connection with the William Penn Acquisition on April 30, 2025, the Company issued 3,506,795 shares of common stock as purchase consideration and assumed outstanding equity awards of William Penn, consisting of 538,447 stock options and 215,386 restricted stock units (RSUs). These additional shares issued significantly impacted the weighted-average shares outstanding for the year ended December 31, 2025. 141 MID PENN BANCORP, INC. Note 20 - Shareholders' Equity Accumulated Other Comprehensive Loss (Income) The components of accumulated other comprehensive loss (income), net of taxes, are as follows: (I n thousands ) Unrealized Loss on Securities Unrealized Holding Losses on Interest Rate Derivatives used in Cash Flow Hedges Defined Benefit Plans Total Balance as of December 31, 2022 $ ( 19,327 ) $ — $ 111 $ ( 19,216 ) OCI before reclassifications 1,988 820 ( 212 ) 2,596 Amounts reclassified from AOCI — — ( 17 ) ( 17 ) Balance - December 31, 2023 ( 17,339 ) 820 ( 118 ) ( 16,637 ) OCI before reclassifications ( 1,550 ) 665 723 ( 162 ) Amounts reclassified from AOCI — — ( 26 ) ( 26 ) Balance - December 31, 2024 ( 18,889 ) 1,485 579 ( 16,825 ) OCI before reclassifications 11,918 ( 1,676 ) 308 10,550 Amounts reclassified from AOCI — — ( 48 ) ( 48 ) Balance - December 31, 2025 $ ( 6,971 ) $ ( 191 ) $ 839 $ ( 6,323 ) Treasury Stock Repurchase Program Mid Penn adopted a treasury stock repurchase program ("Program") initially effective March 19, 2020, and renewed through April 24, 2026 by Mid Penn’s Board of Directors on April 23, 2025. The Program authorizes the repurchase of up to $ 15.0 million of Mid Penn’s outstanding common stock. Under the Program, Mid Penn conducts repurchases of its common stock through open market transactions (which may be by means of a trading plan adopted under SEC Rule 10b5-1) or in privately negotiated transactions. Repurchases under the Program are made at the discretion of management and are subject to market conditions and other factors. There is no guarantee as to the exact number of shares that Mid Penn may repurchase. The Program is able to be modified, suspended or terminated at any time, at Mid Penn’s discretion, based upon a number of factors, including liquidity, market conditions, the availability of alternative investment opportunities and other factors Mid Penn deems appropriate. The Program does not obligate Mid Penn to repurchase any shares. Mid Penn repurchased 79,169 shares during 2025 at an average price per share of $ 28.50 under its share repurchase program. As of December 31, 2025, Mid Penn had repurchased an aggregate total of 519,891 shares of common stock at an average price of $ 23.65 per share under the Program. The Program had $ 2.7 million remaining available for repurchase as of December 31, 2025. Dividend Reinvestment Plan The amended and restated Dividend Reinvestment Plan of Mid Penn Bancorp, Inc. allows holders of the Corporation's common shares to purchase additional shares of the Corporation's common stock, par value $ 1.00 per share. Under the plan, participants may have cash dividends on all of their shares automatically reinvested, and each participating shareholder may also make optional cash contributions to purchase additional shares. As of December 31, 2025, participants in the plan held 485,896 shares of the Corporation's common stock. 142 MID PENN BANCORP, INC. Note 21 - Stock-Based Compensation Plans The Corporation recognizes stock-based compensation expense for equity awards based on the grant-date fair value of the awards. Compensation expense is recognized on a straight-line basis over the requisite service period and is included in salaries and benefits expense in the Consolidated Statements of Income. On May 9, 2023, shareholders approved the 2023 Stock Incentive Plan, which authorizes Mid Penn to grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, deferred stock units and performance shares. The 2023 Plan was established for employees and directors of Mid Penn and the Bank, selected by the Compensation Committee of the Board of Directors, to incentivize the further success of the Company, and replaced the 2014 Restricted Stock Plan. The aggregate number of shares of common stock of the Company available for issuance under the Plans is 550,000 shares . As of December 31, 2025, a total of 314,804 restricted shares were granted under the Plans, of which 110,845 shares were unvested. The Plan's shares granted and vested resulted in $ 4.5 million and $ 1.1 million in stock-based compensation expense for the years ended December 31, 2025 and 2024, respectively. Stock-based compensation expense relating to restricted stock is calculated using grant-date fair value and is recognized on a straight-line basis over the vesting periods of the awards. Restricted shares granted to employees vest in equal amounts on the anniversary of the grant date over the vesting period and the expense is a component of salaries and benefits expense on the Consolidated Statement of Income. The employee grant vesting period is determined by the terms of each respective grant, with vesting periods generally between one and four years . Restricted shares granted to directors have a twelve-month vesting period, and the expense is a component of directors’ fees and benefits within the other expense line item on the Consolidated Statement of Income. Compensation expense and related tax benefits for restricted stock awards recognized on the Consolidated Statements of Income for the years ended December 31 is as follows: (In thousands) 2025 2024 2023 Compensation expense $ 1,999 $ 1,047 $ 1,103 Tax benefit (1) ( 420 ) ( 220 ) ( 232 ) Net income effect $ 1,579 $ 827 $ 871 (1) Calculated using statutory tax rate of 21%. A summary of the restricted stock activity for the year ended December 31, 2025 is as follows: (Dollars in thousands) Number of Shares Weighted-Average Grant-Date Fair Value Non-vested as of January 1, 2025 82,278 $ 23.75 Vested ( 37,878 ) 28.35 Granted 66,445 25.90 Non-vested as of December 31, 2025 110,845 23.46 As of December 31, 2025, there was $ 2.7 million of total unrecognized compensation cost related to non-vested restricted stock awards, which is expected to be recognized over a weighted-average period of 2.7 years through September 2028. Mid Penn recognizes the impact of forfeitures as of the forfeiture date. 143 MID PENN BANCORP, INC. Equity Awards Assumed from William Penn Acquisition In connection with the William Penn Acquisition on April 30, 2025, the Corporation issued 3,506,795 shares of common stock as purchase consideration and assumed outstanding equity awards of William Penn, resulting in the issuance of 538,447 stock options and 215,386 restricted stock units "RSUs" of which 134,618 stock options and 53,822 restricted stock units remained unvested as of December 31, 2025. Compensation expense for stock options was $ 1.0 million for the year ended December 31, 2025. As of December 31, 2025, unrecognized compensation expense related to unvested options was $ 776 thousand. Compensation expense for restricted stock awards was $ 2.1 million for the year ended December 31, 2025. As of December 31, 2025, unrecognized compensation cost related to unvested restricted stock was $ 1.1 million. The assumed awards are subject to the original vesting terms and conditions included in the William Penn stock-based compensation plan. Note 22 - Segment Reporting Mid Penn operates as a single reportable segment, providing a broad range of banking and financial services to individuals, businesses, and institutional clients. These services include commercial and consumer lending, deposit products, wealth management, insurance, and treasury management solutions. The Chief Executive Officer, and the Chief Financial Officer together act as the Mid Penn Chief Operating Decision Makers ("CODM"). The CODM regularly evaluates financial performance and allocates resources on a consolidated basis. The following table presents financial information reviewed by the CODM in assessing performance and allocating resources: (In thousands) December 31, 2025 December 31, 2024 December 31, 2023 Net interest income $ 199,095 $ 156,671 $ 146,973 Provision for credit losses 1,297 1,516 3,699 Noninterest income 26,842 22,493 20,008 Noninterest expense 152,270 117,616 118,588 Provision for Income taxes 16,122 10,595 7,297 Net income 56,248 49,437 37,397 Total assets $ 6,133,896 $ 5,470,936 $ 5,290,792 Other Segment Information Revenue Composition: Mid Penn generates revenue primarily from net interest income and noninterest income, including fees from deposit accounts, wealth management, insurance, and treasury services. Capital Allocation & Performance Metrics: The CODM assesses performance based on key financial metrics, including net interest margin, return on assets ("ROA"), return on equity ("ROE") and efficiency ratio. 144 MID PENN BANCORP, INC. Note 23 - Variable Interest Entities Mid Penn invests in Low-Income Housing Tax Credit ("LIHTC") partnerships that are considered variable interest entities ("VIEs") under ASC 810, Consolidation. These partnerships are formed to develop and operate affordable housing projects that qualify for federal tax credits under Section 42 of the Internal Revenue Code. The Company evaluates its LIHTC investments to determine whether it has a controlling financial interest in the partnerships. A controlling financial interest exists if the Company: • Has the power to direct activities that most significantly impact the entity's economic performance; and • Has the obligation to absorb losses or the right to receive benefits that could be significant. Based on this assessment, Mid Penn has determined that it is not the primary beneficiary of the LIHTC partnerships, as it does not control the significant operating decisions. Therefore, these entities are not consolidated in the financial statements. Mid Penn accounts for its LIHTC investments using the proportional amortization method under ASC 323-740, Investments - Equity method and Joint Ventures: Investments in Qualified Affordable Housing Projects. Under this method: • The initial investment is recorded as an asset with Other Assets on the Consolidated Balance Sheet. • Tax credits and other tax benefits are recognized as a reduction of income tax expense. • The investment is amortized over the period in which the tax credits are received, with amortization recorded as a component of income tax expense . The investments in these unconsolidated entities are reflected in other assets on the Consolidated Balance Sheet, and are summarized for the periods below: For the Year Ended (In thousands) December 31, 2025 December 31, 2024 Income tax benefits $ 2,582 $ 2,163 Amortization of LIHTC investments 1,969 2,290 LIHTC investments are periodically assessed for impairment. No impairment losses were recognized for the years ended December 31, 2025 and 2024. In addition, Mid Penn holds private equity investments classified as variable interest entities, with a total carrying value of $ 4.7 million and $ 2.8 million as of December 31, 2025 and 2024. respectively. Mid Penn’s maximum exposure to loss is limited to the carrying value of its investment. 145 MID PENN BANCORP, INC. Note 24 - Parent Company Statements The Parent Company Statements present the standalone financial position and results of Mid Penn Bancorp, Inc. Parent company transactions with subsidiaries are eliminated in consolidation. CONDENSED BALANCE SHEETS December 31, (In thousands) 2025 2024 ASSETS Cash and cash equivalents $ 3,479 $ 83,209 Investment in subsidiaries 808,102 617,476 Other assets 3,775 1,423 Total assets $ 815,356 $ 702,108 LIABILITIES AND SHAREHOLDERS' EQUITY Subordinated debt and trust preferred securities $ — $ 45,741 Other liabilities 1,298 1,349 Shareholders' equity 814,058 655,018 Total liabilities and shareholders' equity $ 815,356 $ 702,108 CONDENSED STATEMENTS OF INCOME Year Ended December 31, (In thousands) 2025 2024 2023 Income Other income $ 41 $ 62 $ 147 Total Income 41 62 147 Expenses 21,009 6,677 10,865 Loss before income tax and equity in undistributed earnings of subsidiaries ( 20,968 ) ( 6,615 ) ( 10,718 ) Income Tax Benefit 4,114 1,549 2,932 Equity in undistributed earnings of subsidiaries 73,102 54,503 45,183 Net Income $ 56,248 $ 49,437 $ 37,397 146 MID PENN BANCORP, INC. CONDENSED STATEMENTS OF CASH FLOWS Year Ended December 31, (In thousands) 2025 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 56,248 $ 49,437 $ 37,397 Equity in undistributed earnings of subsidiaries ( 73,102 ) ( 54,503 ) ( 45,183 ) Stock based compensation 1,999 1,047 1,103 Amortization of debt issuance costs 5 7 7 Net change in other assets ( 2,352 ) 2,829 ( 3,407 ) Net change in other liabilities ( 517 ) ( 854 ) ( 246 ) Net cash used in operating activities ( 17,719 ) ( 2,037 ) ( 10,329 ) CASH FLOWS FROM INVESTING ACTIVITIES Net cash paid for acquisition 4,772 — ( 25,574 ) Investment in subsidiary ( 8,588 ) 12,810 71,493 Net cash (used in)/provided by investing activities $ ( 3,816 ) $ 12,810 $ 45,919 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid ( 18,160 ) ( 13,822 ) ( 12,981 ) Employee and Director Stock Purchase Plans stock issuance 619 561 482 Proceeds from issuance of common stock — 75,956 — Treasury stock purchased ( 2,250 ) ( 323 ) ( 4,876 ) Stock options exercised 6,876 — — Subordinated debt and trust preferred securities redemption ( 45,280 ) — ( 10,000 ) Net cash (used in)/provided by financing activities ( 58,195 ) 62,372 ( 27,375 ) Net (decrease)/increase in cash and cash equivalents ( 79,730 ) 73,145 8,215 Cash and cash equivalents, beginning of year 83,209 10,064 1,849 Cash and cash equivalents, end of year $ 3,479 $ 83,209 $ 10,064 147 MID PENN BANCORP, INC. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None.