MID PENN BANCORP INC 10-Q

ITEM 1 – FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Dollars in thousands, except per share data) March 31, 2026 December 31, 2025 ASSETS Cash and due from banks $ 60,967 $ 46,695 Interest-bearing balances with other financial institutions 19,383 29,178 Federal funds sold 60,840 23,045 Total Cash and cash equivalents 141,190 98,918 Investment securities: HTM, at amortized cost (fair value $ 314,398 and $ 321,702 , respectively) 340,957 347,285 AFS, at fair value (amortized cost $ 496,791 and $ 426,512 , respectively) 484,130 416,314 Equity securities, at fair value 5,412 5,446 Loans held-for-sale, at fair value 16,554 3,668 Loans, net of unearned income 5,509,940 4,862,838 Less: ACL - Loans ( 41,105 ) ( 36,091 ) Net loans 5,468,835 4,826,747 Premises and equipment, net 49,611 48,742 Operating lease right-of-use asset 16,803 15,169 Finance lease right-of-use asset 2,323 2,368 Cash surrender value of life insurance 116,474 95,351 Restricted investment in bank stocks 10,081 7,576 Accrued interest receivable 32,958 29,640 Deferred income taxes 23,798 21,416 Goodwill 157,121 136,620 Core deposit and other intangibles, net 33,013 14,657 Foreclosed assets held-for-sale 8,420 7,806 Other assets 57,129 56,173 Total Assets $ 6,964,809 $ 6,133,896 LIABILITIES & SHAREHOLDERS’ EQUITY Deposits: Noninterest-bearing demand $ 933,497 $ 834,013 Interest-bearing transaction accounts 3,357,497 2,829,175 Time 1,679,973 1,551,475 Total Deposits 5,970,967 5,214,663 Short-term borrowings 31,500 20,833 Long-term debt 3,021 23,139 Operating lease liability 17,186 15,405 Accrued interest payable 12,195 10,942 Other liabilities 42,535 34,856 Total Liabilities 6,077,404 5,319,838 Shareholders' Equity: Common stock, par value $ 1.00 per share; 40,000,000 shares authorized at March 31, 2026 and December 31, 2025; 25,816,654 issued as of March 31, 2026 and 23,567,094 as of December 31, 2025; 25,296,763 outstanding as of March 31, 2026 and 23,047,203 as of December 31, 2025. 25,817 23,567 Additional paid-in capital 659,883 589,421 Retained earnings 222,154 219,685 Accumulated other comprehensive loss ( 8,157 ) ( 6,323 ) Treasury stock, at cost; 519,891 shares as of March 31, 2026 and December 31, 2025. ( 12,292 ) ( 12,292 ) Total Shareholders’ Equity 887,405 814,058 Total Liabilities and Shareholders' Equity $ 6,964,809 $ 6,133,896 The accompanying notes are an integral part of these unaudited consolidated financial statements. 4 Table of Contents MID PENN BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended March 31, (Dollars in thousands, except per share data) 2026 2025 INTEREST INCOME Loans, including fees $ 76,798 $ 66,537 Investment securities: Taxable 6,501 4,460 Tax-exempt 297 348 Other interest-bearing balances 110 138 Federal funds sold 220 261 Total Interest Income 83,926 71,744 INTEREST EXPENSE Deposits 27,848 28,264 Short-term borrowings 702 290 Long-term and subordinated debt 126 681 Total Interest Expense 28,676 29,235 Net Interest Income 55,250 42,509 Provision for credit losses - loans 1,648 321 Benefit for credit losses - credit commitments ( 54 ) ( 20 ) Net provision for credit losses 1,594 301 Net Interest Income After Provision for Credit Losses 53,656 42,208 NONINTEREST INCOME Fiduciary and wealth management 3,661 1,140 ATM debit card interchange 1,035 919 Service charges on deposits 636 562 Mortgage banking 314 591 Mortgage hedging 81 ( 9 ) Net gain on sales of SBA loans 163 57 Earnings from cash surrender value of life insurance 705 274 Other 3,009 1,705 Total Noninterest Income 9,604 5,239 NONINTEREST EXPENSE Salaries and employee benefits 23,346 16,309 Software licensing and utilization 3,598 2,574 Occupancy, net 3,253 2,274 Equipment 1,553 1,094 Shares tax 964 919 Legal and professional fees 1,688 826 ATM/card processing 757 733 Intangible amortization 1,300 428 FDIC Assessment 800 990 Loss/(gain) on sale of foreclosed assets, net 491 ( 28 ) Merger and acquisition 7,723 314 Other 6,486 4,209 Total Noninterest Expense 51,959 30,642 INCOME BEFORE PROVISION FOR INCOME TAXES 11,301 16,805 Provision for income taxes 2,595 3,063 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS $ 8,706 $ 13,742 PER COMMON SHARE DATA: Basic Earnings Per Common Share $ 0.36 $ 0.71 Diluted Earnings Per Common Share $ 0.36 $ 0.71 Weighted-average basic shares outstanding 23,949,008 19,355,867 Weighted-average diluted shares outstanding 24,314,139 19,416,265 The accompanying notes are an integral part of these unaudited consolidated financial statements. 5 Table of Contents MID PENN BANCORP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended March 31, (In thousands) 2026 2025 Net income $ 8,706 $ 13,742 Other comprehensive income: Unrealized (losses)/gains arising during the period on available for sale securities, net of income tax. ( 1,946 ) 3,656 Unrealized holding gains/(losses) arising during the period on interest rate derivatives used in cash flow hedges, net of income tax. 129 ( 984 ) Change in defined benefit plans, net of income tax. (1) 31 16 Reclassification adjustment for settlement gains and activity related to benefit plans, net of income tax. (2) ( 48 ) ( 26 ) Total other comprehensive (loss)/income ( 1,834 ) 2,662 Total comprehensive income $ 6,872 $ 16,404 (1) The change in defined benefit plans consists primarily of unrecognized actuarial gains on defined benefit plans during the period. (2) The reclassification adjustment for 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 total noninterest income. The accompanying notes are an integral part of these unaudited consolidated financial statements. 6 Table of Contents MID PENN BANCORP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) 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, 2026 23,567,094 $ 23,567 $ 589,421 $ 219,685 $ ( 6,323 ) $ ( 12,292 ) $ 814,058 Net income — — — 8,706 — — 8,706 Total other comprehensive income — — — — ( 1,834 ) — ( 1,834 ) Common stock cash dividends declared, $ 0.22 per share — — — ( 6,237 ) — — ( 6,237 ) Common stock issued in business combinations (1) 2,238,085 2,238 69,615 — — — 71,853 Stock options exercised — — 132 — — — 132 Repurchased stock — — — — — — — Employee Stock Purchase Plan 5,352 5 161 — — — 166 Director Stock Purchase Plan 855 1 27 — — — 28 Restricted stock activity 5,268 6 527 — — — 533 Balance, March 31, 2026 25,816,654 $ 25,817 $ 659,883 $ 222,154 $ ( 8,157 ) $ ( 12,292 ) $ 887,405 (1) Shares issued on January 1, 2026 and February 27, 2026 as a result of the Cumberland Advisors and 1st Colonial acquisitions. See "Note 2 - Business Combinations" to the Consolidated Financial Statements for more information. Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Treasury Stock Total Shareholders' Equity (Dollars in thousands, except per share data) Shares Amount Balance, January 1, 2025 19,796,519 $ 19,797 $ 480,491 $ 181,597 $ ( 16,825 ) $ ( 10,042 ) $ 655,018 Net income — — — 13,742 — — 13,742 Total other comprehensive loss — — — — 2,662 — 2,662 Common stock cash dividends declared, $ 0.20 per share — — — ( 3,870 ) — — ( 3,870 ) Repurchased stock — — — — — — — Employee Stock Purchase Plan 5,311 5 132 — — — 137 Director Stock Purchase Plan 986 1 25 — — — 26 Restricted stock activity — — 218 — — — 218 Balance, March 31, 2025 19,802,816 $ 19,803 $ 480,866 $ 191,469 $ ( 14,163 ) $ ( 10,042 ) $ 667,933 The accompanying notes are an integral part of these unaudited consolidated financial statements. 7 Table of Contents MID PENN BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Three Months Ended March 31, (In thousands) 2026 2025 Operating Activities: Net Income $ 8,706 $ 13,742 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 1,594 301 Depreciation 1,493 1,133 Amortization of intangibles 1,300 428 Net amortization of security discounts/premiums 229 70 Noncash operating lease expense 795 619 Amortization of finance lease right-of-use asset 45 45 Earnings on cash surrender value of life insurance ( 705 ) ( 274 ) Mortgage loans originated for sale ( 21,039 ) ( 20,566 ) Proceeds from sales of mortgage loans originated for sale 8,467 21,370 Gain on sale of mortgage loans ( 314 ) ( 591 ) SBA loans originated for sale ( 2,783 ) ( 728 ) Proceeds from sales of SBA loans originated for sale 2,948 785 Gain on sale of SBA loans ( 163 ) ( 57 ) Loss/(gain) on sale or write-down of foreclosed assets 491 ( 28 ) Discount on subordinated debt — ( 154 ) Accretion of loan fair value marks 2,441 989 Restricted stock compensation expense 533 218 Stock option expense 132 — Deferred income tax expense 1,309 206 Increase/(decrease) in accrued interest receivable 740 ( 417 ) Increase in other assets 867 822 Increase/(decrease) in accrued interest payable 1,125 ( 584 ) Increase/(decrease) in operating lease liability 1,700 ( 649 ) Increase/(decrease) in other liabilities 4,544 ( 4,162 ) Net Cash Provided By Operating Activities 14,455 12,518 Investing Activities: Proceeds from the maturity or call of available-for-sale securities 28,265 6,609 Purchases of available-for-sale securities ( 98,899 ) — Proceeds from the maturity or call of held-to-maturity securities 6,342 7,265 Redemption of restricted investment in bank stock 13,023 7,693 Purchases of restricted investment in bank stock ( 15,528 ) ( 6,892 ) Net cash received from acquisitions 162,808 — Net increase in loans ( 65,628 ) ( 50,465 ) Purchases of bank premises and equipment ( 1,425 ) ( 2,720 ) Proceeds from the sale of premises and equipment — 65 Proceeds from the sale of foreclosed assets 168 72 Proceeds from bank-owned life insurance 2,022 527 Earnings on bank-owned life insurance — ( 83 ) Net change in investments in tax credits and other partnerships 2,770 647 Net Cash Provided by (Used in) Investing Activities 33,918 ( 37,282 ) 8 Table of Contents MID PENN BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)(CONTINUED) Financing Activities: Net increase in deposits 9,393 42,275 Common stock dividends paid ( 6,237 ) ( 3,870 ) Proceeds from Employee and Director Stock Purchase Plan stock issuance 194 163 Net change in finance lease liability ( 37 ) ( 36 ) Proceeds from short-term borrowings 453,300 25,000 Repayment of short-term borrowings ( 442,633 ) ( 2,000 ) Long-term debt repayment ( 20,081 ) ( 78 ) Net Cash (Used in)/Provided by Financing Activities ( 6,101 ) 61,454 Net increase in cash and cash equivalents 42,272 36,690 Cash and cash equivalents, beginning of period 98,918 70,564 Cash and cash equivalents, end of period $ 141,190 $ 107,254 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 27,424 $ 29,819 Cash paid for income taxes — 185 Supplemental Noncash Disclosures: Recognition of operating lease right-of-use assets $ 81 $ 2,322 Recognition of operating lease liabilities 81 2,322 Loans transferred to foreclosed assets held-for-sale 1,273 1,402 Common Stock issued to Cumberland Advisors and 1st Colonial Shareholders 2,238 — Fair value of assets acquired in business combination, excluding cash (1) $ 756,794 $ — Goodwill recorded (1) 20,391 — Fair value of liabilities assumed in business combination (1) 753,509 — Fair value of shares issued in business combination (1) 71,853 — (1) Includes the impact of the 1st Colonial acquisition on February 27, 2026 and the Cumberland Advisors acquisition on January 1, 2026 . See "Note 2 - Business Combinations" to the Consolidated Financial Statements for more information . The accompanying notes are an integral part of these unaudited consolidated financial statements. 9 Table of Contents MID PENN BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 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 five wholly-owned nonbank subsidiaries, MPB Realty, LLC, MPB Financial Services, LLC, which includes Cumberland Advisors, LLC and MPB Risk Services, LLC, and MPB Launchpad Fund I, LLC. As of March 31, 2026, 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 intercompany accounts and transactions have been eliminated in consolidation. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. Mid Penn believes the information presented is not misleading, and the disclosures are adequate. 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. These unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the 2025 Annual Report. 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 on acquired loans, business combination fair value computations, and the valuation of goodwill and other intangible assets. 10 Table of Contents MID PENN BANCORP, INC. Recent Accounting Pronouncements Accounting Standards Adopted in 2026 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 entiti es, 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 . Effective January 1, 2026, the Corporation adopted ASU 2025-08. Adoption resulted in the recognition of an initial allowance for credit losses on applicable purchased loans, including purchased seasoned loans ("PSL loans"), and will affect the accounting for future loan acquisitions. The impact of adoption is reflected in the ACL rollforward in "Note 4 - Loans and Allowance for Credit Losses". The adoption did not result in a cumulative-effect adjustment to beginning retained earnings. Accounting Standards Pending Adoption 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 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. 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. 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. 11 Table of Contents MID PENN BANCORP, INC. Note 2 - Business Combinations Cumberland Advisors, Inc. Acquisition On January 1, 2026, Mid Penn completed its acquisition of Cumberland Advisors, Inc., a registered investment advisory firm, for total consideration of $ 5.5 million. As a result of the acquisition, Mid Penn paid holders of Cumberland Advisors, Inc. common stock $ 1.6 million in cash and issued 127,009 shares of Mid Penn common stock. As of March 31, 2026, Cumberland had approximately $ 2.8 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. Mid Penn recognized goodwill of $ 5.1 million, and a customer list intangible of $ 2.1 million as a result of the acquisition. Mid Penn incurred merger-related expenses related to the Cumberland Advisors acquisition of $ 544 thousand for the three months ended March 31, 2026, which is included in noninterest expense in the Consolidated Statements of Income. 1st Colonial Bancorp, Inc. Acquisition On February 27, 2026, Mid Penn completed its acquisition of 1st Colonial Bancorp, Inc., through the merger of 1st Colonial with and into Mid Penn. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations. In connection with the merger, Mid Penn issued 2,111,076 shares of Mid Penn common stock and paid holders of 1st Colonial common stock approximately $ 37.5 million in cash. Each share of Mid Penn common stock outstanding prior to the merger remained outstanding and unaffected by the merger. Mid Penn recognized goodwill of $ 15.3 million, and a core deposit intangible asset of $ 17.3 million as a result of this acquisition. This is calculated as the excess of consideration exchanged and liabilities assumed compared to the fair value of identifiable assets acquired. Goodwill is primarily comprised of expected synergies, the assembled workforce, and expanded market presence. Goodwill is not deductible for income tax purposes. Mid Penn incurred merger-related expenses related to 1st Colonial acquisition of $ 7.2 million for the three months ended March 31, 2026, which are 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. As part of the 1st Colonial acquisition, Mid Penn acquired PSL and PCD loans of $ 599.4 million and $ 7.4 million, respectively. The day 1 allowance recorded at acquisition was $ 4.4 million, including $ 977 thousand related to PCD loans. The related fair value adjustment reflected both expected credit losses recognized at acquisition and other loan valuation factors, including interest rate risk and liquidity considerations. 12 Table of Contents MID PENN BANCORP, INC. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date: (In thousands) Assets acquired: Cash and cash equivalents $ 89,568 Federal funds sold 17 Investment securities 114,405 Loans held for sale 4,031 Loans 581,823 Core deposit intangible 17,322 Premises and equipment 860 Operating lease right-of-use asset 1,513 Cash surrender value of life insurance 22,440 Deferred income taxes 2,647 Accrued interest receivable 4,058 Other assets 3,816 Total assets acquired $ 842,500 Liabilities assumed: Deposits: Noninterest-bearing demand $ 84,208 Interest-bearing demand 451,441 Money market 9,202 Savings 109,200 Time 92,860 Operating lease liability 1,513 Accrued interest payable 128 Other liabilities 3,114 Total liabilities assumed $ 751,666 Consideration transferred $ 106,120 Cash paid in lieu of fractional shares $ 2 Cash consideration for common stock 37,489 Purchase price assigned to stock options settled for cash 716 Fair value of common stock issued 67,913 Total $ 106,120 Reconciliation to consideration transferred: Total assets acquired $ 842,500 Total liabilities assumed 751,666 Net assets acquired 90,834 Goodwill 15,286 Consideration transferred $ 106,120 13 Table of Contents 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 this measurement period, Mid Penn may record subsequent adjustments to goodwill for provisional amounts recorded at the merger date, with provisional merger-related tax adjustments. From the acquisition date of February 27, 2026 through March 31, 2026, 1st Colonial contributed approximately $ 2.5 million of total revenue and $ 1.3 million of net income to Mid Penn's consolidated results for the three months ended March 31, 2026. The following supplemental pro forma information presents selected financial results for the three months ended March 31, 2026 and 2025 as if the merger of 1st Colonial was effective as of January 1, 2025. 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. (In thousands) Three Months Ended March 31, 2026 2025 Net interest income after provision for credit losses - loans $ 58,066 $ 48,624 Noninterest income 10,021 6,117 Noninterest expense 58,097 35,865 Net income $ 7,975 $ 15,400 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. Mid Penn 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 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. The purchase accounting for the transaction was finalized as of December 31, 2025, and no material measurement adjustments were recorded during the three months ended March 31, 2026. 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 recognized total goodwill of $ 1.6 million, which is calculated as the excess of consideration exchanged and liabilities assumed compared to the fair value of identifiable assets acquired. 14 Table of Contents MID PENN BANCORP, INC. Note 3 - Investment Securities AFS Securities As of March 31, 2026, the fair value of AFS securities totaled $ 484.1 million. As of March 31, 2026, no securities were identified that violated credit loss triggers; therefore, no discounted cash flow analysis was required. As of March 31, 2026, 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 March 31, 2026, accrued interest receivable totaled $ 3.1 million for AFS securities, and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. HTM Securities As of March 31, 2026, Mid Penn’s HTM securities totaled $ 341.0 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 March 31, 2026, the majority of Mid Penn's HTM securities were rated investment grade, generally 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 March 31, 2026, 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 March 31, 2026. As of March 31, 2026, 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 March 31, 2026, accrued interest receivable totaled $ 1.9 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: March 31, 2026 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale U.S. Treasury and U.S. government agencies $ 17,266 $ — $ 404 $ 16,862 Mortgage-backed U.S. government agencies 386,477 2,236 12,492 376,221 State and political subdivision obligations 51,406 — 552 50,854 Corporate debt securities 41,642 377 1,826 40,193 Total available-for-sale debt securities 496,791 2,613 15,274 484,130 Held-to-maturity U.S. Treasury and U.S. government agencies $ 231,015 $ — $ 17,042 $ 213,973 Mortgage-backed U.S. government agencies 31,214 3 3,665 27,552 State and political subdivision obligations 63,281 2 4,619 58,664 Corporate debt securities 15,447 3 1,241 14,209 Total held-to-maturity debt securities 340,957 8 26,567 314,398 Total $ 837,748 $ 2,621 $ 41,841 $ 798,528 15 Table of Contents MID PENN BANCORP, INC. 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 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 8 - Fair Value Measurement," for additional information. Investment securities having a fair value of $ 541.8 million as of March 31, 2026 and $ 544.7 million as of December 31, 2025 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 $ 406.5 million as of March 31, 2026 and $ 162.5 million as of December 31, 2025. 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 for the periods presented: (Dollars in thousands) Less Than 12 Months 12 Months or More Total March 31, 2026 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 — $ — $ — 9 $ 16,862 $ 404 9 $ 16,862 $ 404 Mortgage-backed U.S. government agencies 45 280,082 1,023 84 96,139 11,469 129 376,221 12,492 State and political subdivision obligations — — — 8 50,854 552 8 50,854 552 Corporate debt securities 8 18,765 4 14 21,428 1,822 22 40,193 1,826 Total available-for-sale debt securities 53 $ 298,847 $ 1,027 115 $ 185,283 $ 14,247 168 $ 484,130 $ 15,274 Held-to-maturity debt securities: U.S. Treasury and U.S. government agencies 3 5,759 55 133 208,214 16,987 136 213,973 17,042 Mortgage-backed U.S. government agencies 5 1,004 3 58 26,548 3,662 63 27,552 3,665 State and political subdivision obligations 47 55,344 48 119 3,320 4,571 166 58,664 4,619 Corporate debt securities 3 3,400 100 9 10,809 1,141 12 14,209 1,241 Total held-to-maturity debt securities 58 65,507 206 319 248,891 26,361 377 314,398 26,567 Total 111 $ 364,354 $ 1,233 434 $ 434,174 $ 40,608 545 $ 798,528 $ 41,841 16 Table of Contents MID PENN BANCORP, INC. (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 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 securities 36 227,273 205 123 189,041 14,030 159 416,314 14,235 Held-to-maturity 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 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 As of March 31, 2026 and December 31, 2025, 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 March 31, 2026 and December 31, 2025, 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 were no gross realized gains on the sale of AFS securities as of March 31, 2026 and December 31, 2025, respectively. 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 March 31, 2026 Amortized Cost Fair Value Amortized Cost Fair Value Due in 1 year or less $ 57,495 $ 57,383 $ 28,834 $ 28,572 Due after 1 year but within 5 years 14,392 14,199 157,135 147,941 Due after 5 years but within 10 years 37,583 35,670 114,622 102,527 Due after 10 years 844 657 9,152 7,806 110,314 107,909 309,743 286,846 Mortgage-backed securities 386,477 376,221 31,214 27,552 $ 496,791 $ 484,130 $ 340,957 $ 314,398 17 Table of Contents 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) March 31, 2026 December 31, 2025 Commercial real estate CRE Nonowner Occupied $ 1,448,637 $ 1,364,040 CRE Owner Occupied 839,938 718,864 Multifamily 449,417 419,267 Farmland 237,735 227,816 Total Commercial real estate 2,975,727 2,729,987 Commercial and industrial 724,927 720,031 Construction Residential Construction 87,910 85,299 Other Construction 365,429 310,390 Total Construction 453,339 395,689 Residential mortgage 1-4 Family 1st Lien 591,385 417,421 1-4 Family Rental 465,317 410,965 HELOC and Junior Liens 290,858 178,116 Total Residential Mortgage 1,347,560 1,006,502 Consumer 8,387 10,629 Total loans $ 5,509,940 $ 4,862,838 Total loans are stated at the amount of unpaid principal, adjusted for net deferred fees and costs. Net deferred loan fees were $ 2.9 million and $ 2.8 million as of March 31, 2026 and December 31, 2025, respectively. Accrued interest receivable is not included in the amortized cost basis of Mid Penn's loans. Accrued interest receivable for loans totaled $ 27.5 million and $ 25.7 million as of March 31, 2026 and December 31, 2025, respectively, with no related ACL and was reported in other assets on the accompanying Consolidated Balance Sheet. 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 March 31, 2026 and December 31, 2025, are summarized as follows: 18 Table of Contents 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 March 31, 2026 Commercial real estate CRE Nonowner Occupied $ 2,926 $ — $ 3,604 $ 6,530 $ 1,442,107 $ 1,448,637 $ — CRE Owner Occupied 3,201 1,379 2,804 7,384 832,554 839,938 — Multifamily 1,071 196 348 1,615 447,802 449,417 — Farmland 2,056 384 46 2,486 235,249 237,735 — Total Commercial real estate 9,254 1,959 6,802 18,015 2,957,712 2,975,727 — Commercial and industrial 830 1,860 11,225 13,915 711,012 724,927 — Construction Residential Construction — — — — 87,910 87,910 — Other Construction 582 — — 582 364,847 365,429 — Total Construction 582 — — 582 452,757 453,339 — Residential mortgage 1-4 Family 1st Lien 2,368 84 299 2,751 588,634 591,385 — 1-4 Family Rental 168 — 884 1,052 464,265 465,317 — HELOC and Junior Liens 464 298 1,540 2,302 288,556 290,858 — Total Residential Mortgage 3,000 382 2,723 6,105 1,341,455 1,347,560 — Consumer 69 15 — 84 8,303 8,387 — Total $ 13,735 $ 4,216 $ 20,750 $ 38,701 $ 5,471,239 $ 5,509,940 $ — (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 $ — 19 Table of Contents 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 March 31, 2026 and December 31, 2025. Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of March 31, 2026 and December 31, 2025 are summarized as follows: March 31, 2026 December 31, 2025 (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 3,026 2,271 5,297 2,873 2,271 5,144 CRE Owner Occupied 2,521 1,854 4,375 509 2,043 2,552 Multifamily — 472 472 — 131 131 Farmland — 46 46 — 46 46 Total Commercial real estate 5,547 4,643 10,190 3,382 4,491 7,873 Commercial and industrial 11,839 785 12,624 10,519 398 10,917 Residential mortgage 1-4 Family 1st Lien 2,331 1,528 3,859 24 1,188 1,212 1-4 Family Rental — 928 928 146 949 1,095 HELOC and Junior Liens 386 1,641 2,027 — 1,840 1,840 Total Residential Mortgage $ 2,717 $ 4,097 $ 6,814 $ 170 $ 3,977 $ 4,147 Consumer — 13 13 — 14 14 Total loans $ 20,103 $ 9,538 $ 29,641 $ 14,071 $ 8,880 $ 22,951 The amount of interest income recognized on nonaccrual loans was approximately $ 94 thousand and $ 127 thousand during the three months ended March 31, 2026 and 2025, 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. 20 Table of Contents 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 Borrower, 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 cannot 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: March 31, 2026 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis (In thousands) 2026 2025 2024 2023 2022 Prior Total CRE Nonowner Occupied Pass $ 61,992 $ 168,620 $ 101,100 $ 185,355 $ 374,328 $ 528,571 $ 16,664 $ 1,436,630 Special mention — — 306 — — 340 — 646 Substandard or lower — — — 1,692 — 9,669 — 11,361 Total CRE Nonowner Occupied 61,992 168,620 101,406 187,047 374,328 538,580 16,664 1,448,637 Gross charge-offs — — — ( 499 ) — — — ( 499 ) Net charge-offs — — — ( 499 ) — — — ( 499 ) CRE Owner Occupied Pass 58,613 127,926 67,578 111,087 118,262 322,699 18,250 824,415 Special mention — — — 908 2,446 6,129 — 9,483 Substandard or lower — — — — 1,915 4,125 — 6,040 Total CRE Owner Occupied 58,613 127,926 67,578 111,995 122,623 332,953 18,250 839,938 Current period recoveries — — 93 — — — — 93 Net charge-offs — — 93 — — — — 93 Multifamily Pass 7,501 38,177 20,361 64,314 161,880 151,860 4,475 448,568 Special mention — — — — — 377 — 377 Substandard or lower — — 348 — — 124 — 472 Total Multifamily 7,501 38,177 20,709 64,314 161,880 152,361 4,475 449,417 Farmland 21 Table of Contents MID PENN BANCORP, INC. Pass 17,158 28,577 22,535 23,057 50,182 77,623 15,002 234,134 Special mention — — — 424 — — — 424 Substandard or lower — — — 384 — 2,673 120 3,177 Total Farmland 17,158 28,577 22,535 23,865 50,182 80,296 15,122 237,735 Commercial and industrial Pass 42,542 96,787 88,635 60,888 56,476 137,463 213,106 695,897 Special mention — — — 153 442 3,855 — 4,450 Substandard or lower — — 555 15,843 635 3,780 3,767 24,580 Total Commercial and industrial 42,542 96,787 89,190 76,884 57,553 145,098 216,873 724,927 Residential Construction Pass 11,594 39,937 3,211 15,893 779 — 16,496 87,910 Total Residential Construction 11,594 39,937 3,211 15,893 779 — 16,496 87,910 Other Construction Pass 6,832 95,970 82,049 82,156 42,699 20,014 32,770 362,490 Special mention — — — — 2,939 — — 2,939 Substandard or lower — — — — — — — — Total Other Construction 6,832 95,970 82,049 82,156 45,638 20,014 32,770 365,429 1-4 Family 1st Lien Performing 40,254 26,594 36,200 96,608 108,208 276,702 1,719 586,285 Nonperforming — — 1,643 281 143 3,033 — 5,100 Total 1-4 Family 1st Lien 40,254 26,594 37,843 96,889 108,351 279,735 1,719 591,385 Current period recoveries — — — — — 2 — 2 Net recoveries — — — — — 2 — 2 1-4 Family Rental Performing 14,243 51,190 25,410 47,086 106,431 212,345 4,597 461,302 Nonperforming — — — — — 4,015 — 4,015 Total 1-4 Family Rental 14,243 51,190 25,410 47,086 106,431 216,360 4,597 465,317 Gross charge-offs — — — — — ( 13 ) — ( 13 ) Net charge-offs — — — — — ( 13 ) — ( 13 ) HELOC and Junior Liens Performing 3,159 32,808 26,715 34,342 20,310 52,599 117,167 287,100 Nonperforming — — 1,140 89 145 1,383 1,001 3,758 Total HELOC and Junior Liens 3,159 32,808 27,855 34,431 20,455 53,982 118,168 290,858 Consumer Performing 1,457 997 1,178 773 651 1,121 2,184 8,361 Nonperforming — — — 26 — — — 26 Total Consumer 1,457 997 1,178 799 651 1,121 2,184 8,387 Gross charge-offs — — — — — ( 641 ) — ( 641 ) Current period recoveries — — — — — 9 — 9 Net charge-offs — — — — — ( 632 ) — ( 632 ) Total Pass $ 206,232 $ 595,994 $ 385,469 $ 542,750 $ 804,606 $ 1,238,230 $ 316,763 $ 4,090,044 Special mention — — 306 1,485 5,827 10,701 — 18,319 Substandard or lower — — 903 17,919 2,550 20,371 3,887 45,630 Performing 59,113 111,589 89,503 178,809 235,600 542,767 125,667 1,343,048 Nonperforming — — 2,783 396 288 8,431 1,001 12,899 Total $ 265,345 $ 707,583 $ 478,964 $ 741,359 $ 1,048,871 $ 1,820,500 $ 447,318 $ 5,509,940 22 Table of Contents MID PENN BANCORP, INC. 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 recoveries — — — ( 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 recoveries — ( 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 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 23 Table of Contents MID PENN BANCORP, INC. 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 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 24 Table of Contents MID PENN BANCORP, INC. Mid Penn had no loans classified as "doubtful" as of March 31, 2026 and December 31, 2025. There was $ 160 thousand and $ 567 thousand in mortgage loans for which formal foreclosure proceedings were in process at March 31, 2026 and December 31, 2025, 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 as of March 31, 2026 were $ 29.6 million. 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. 25 Table of Contents 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 expected cash flows are discounted using the loan’s effective interest rate to estimate the quantitative allowance for credit losses. 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 non-accrual 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 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 26 Table of Contents 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. Effective January 1, 2026, the Corporation adopted ASU 2025-08 for applicable purchased seasoned loans ("PSL loans"), under which an initial allowance for credit losses is recognized at acquisition and incorporated into the initial amortized cost basis of the loans, rather than recognized through a Day 1 provision expense. The impact of adoption is reflected in the ACL rollforward in this Note and is further discussed in "Note 1 - Summary of Significant Accounting Policies". 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 tables present the activity in the ACL - loans by portfolio segment for the three months ended March 31, 2026 and the three months ended March 31, 2025: (In thousands) Balance as of December 31, 2025 Initial ACL - PCD Loans Initial ACL - PSL Loans Charge-offs Recoveries Net Loans (Charged off) Recovered (Benefit)/Provision for Credit Losses (1) Balance as of March 31, 2026 Commercial Real Estate CRE Nonowner Occupied 9,917 — 269 ( 499 ) — ( 499 ) 520 10,207 CRE Owner Occupied 6,095 183 552 — 93 93 1,351 8,274 Multifamily 1,443 — 87 — — — 12 1,542 Farmland 2,118 — 1 — — — 35 2,154 Commercial and industrial 9,259 547 599 — — — ( 549 ) 9,856 Construction Residential Construction 477 — 54 — — — ( 100 ) 431 Other Construction 1,464 — 76 — — — 136 1,676 Residential Mortgage 1-4 Family 1st Lien 2,434 92 1,304 — 2 2 ( 137 ) 3,695 1-4 Family Rental 2,295 — 157 ( 13 ) — ( 13 ) ( 268 ) 2,171 HELOC and Junior Liens 559 155 337 — — — ( 4 ) 1,047 Consumer 30 — 2 ( 641 ) 9 ( 632 ) 652 52 Total 36,091 977 3,438 ( 1,153 ) 104 ( 1,049 ) 1,648 41,105 27 Table of Contents MID PENN BANCORP, INC. (In thousands) Balance as of December 31, 2024 Charge-offs Recoveries Net Loans Recovered (Charged off) Provision/(Benefit) for Credit Losses Balance as of March 31, 2025 Commercial Real Estate CRE Nonowner Occupied $ 11,047 $ — $ 1 $ 1 $ ( 668 ) $ 10,380 CRE Owner Occupied 5,243 — — — 479 5,722 Multifamily 3,432 — — — ( 108 ) 3,324 Farmland 1,932 — — — 143 2,075 Commercial and industrial 7,122 — 6 6 736 7,864 Construction Residential Construction 931 — — — ( 101 ) 830 Other Construction 2,131 — — — ( 232 ) 1,899 Residential Mortgage 1-4 Family 1st Lien 1,503 — 2 2 77 1,582 1-4 Family Rental 1,756 — — — ( 16 ) 1,740 HELOC and Junior Liens 392 — — — 12 404 Consumer 25 ( 15 ) 9 ( 6 ) ( 1 ) 18 Total $ 35,514 $ ( 15 ) $ 18 $ 3 $ 321 $ 35,838 28 Table of Contents MID PENN BANCORP, INC. The following table presents the ACL for loans and the amortized cost basis of loans as of March 31, 2026 and December 31, 2025: (In thousands) ACL - Loans Loans March 31, 2026 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 $ 9,879 $ 328 $ 10,207 $ 1,443,340 $ 5,297 $ 1,448,637 CRE Owner Occupied 8,016 258 8,274 835,563 4,375 839,938 Multifamily 1,542 — 1,542 448,945 472 449,417 Farmland 2,154 — 2,154 237,689 46 237,735 Commercial and industrial 7,890 1,966 9,856 712,303 12,624 724,927 Construction Residential Construction 431 431 87,910 — 87,910 Other Construction 1,676 1,676 365,429 — 365,429 Residential mortgage 1-4 Family 1st Lien 3,603 92 3,695 587,526 3,859 591,385 1-4 Family Rental 2,171 — 2,171 464,389 928 465,317 HELOC and Junior Liens 896 151 1,047 288,831 2,027 290,858 Consumer 52 — 52 8,374 13 8,387 Total $ 38,310 $ 2,795 $ 41,105 $ 5,480,299 $ 29,641 $ 5,509,940 (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 29 Table of Contents 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. Information related to loans modified for the three months ended March 31, 2026, 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 Three months ended March 31, 2026 Commercial and industrial — 87 — 87 0.01 % Total $ — $ 87 $ — $ 87 There were no loan modifications to borrowers experiencing financial difficulty for the three months ended March 31, 2025. 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 March 31, 2026, there were no defaults on loans modified to borrowers experiencing financial difficulty within the twelve months following modification. 30 Table of Contents MID PENN BANCORP, INC. Note 5 - Deposits Deposits consisted of the following as of March 31, 2026 and December 31, 2025: (Dollars in thousands) March 31, 2026 % of Total Deposits December 31, 2025 % of Total Deposits Noninterest-bearing demand deposits $ 933,497 15.6 % $ 834,013 16.0 % Interest-bearing demand deposits 1,664,412 27.9 % 1,278,940 24.5 % Money market 1,253,751 21.0 % 1,226,171 23.5 % Savings 439,334 7.4 % 324,064 6.2 % Total demand and savings 4,290,994 71.9 % 3,663,188 70.2 % Time 1,679,973 28.1 % 1,551,475 29.8 % Total deposits $ 5,970,967 100.0 % $ 5,214,663 100.0 % The scheduled maturities of time deposits as of March 31, 2026 were as follows: Time Deposits (In thousands) Less than $250,000 $250,000 or more Maturing in 2026 $ 1,002,755 $ 366,263 Maturing in 2027 200,201 41,279 Maturing in 2028 35,019 5,147 Maturing in 2029 14,080 889 Maturing in 2030 6,521 686 Maturing thereafter 5,965 1,168 $ 1,264,541 $ 415,432 Mid Penn had $ 132.7 million of brokered certificates of deposits as of March 31, 2026 and $ 97.5 million as of December 31, 2025. As of March 31, 2026 and December 31, 2025, Mid Penn had $ 112.7 million and $ 83.2 million, respectively, of Certificate of Deposit Account Registry ("CDAR") deposits. 31 Table of Contents MID PENN BANCORP, INC. Note 6 - 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 three months ended March 31, 2026, 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. 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. These transactions are structured as back-to-back arrangements with offsetting terms; however, the Corporation remains exposed to credit risk associated with both the customer and dealer counterparties. Information related to loan-level interest rate swaps is set forth in the following table: (Dollars in thousands) March 31, 2026 December 31, 2025 Loan-level interest rate swaps on loans with customers Notional amount $ 332,451 $ 287,251 Weighted-average remaining term (years) 4.47 4.16 Receive fixed rate (weighted-average) 5.34 % 5.13 % Pay variable rate (weighted-average) 5.98 % 6.08 % Estimated fair value (1) $ 7,820 $ 8,796 (Dollars in thousands) March 31, 2026 December 31, 2025 Loan-level interest rate swaps on loans with correspondents Notional amount $ 332,451 $ 287,251 Weighted-average remaining term (years) 4.47 4.16 Receive variable rate (weighted-average) 5.98 % 6.08 % Pay fixed rate (weighted-average) 5.34 % 5.13 % Estimated fair value (2) $ 7,820 $ 8,796 (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 three months ended March 31, 2026, 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) March 31, 2026 December 31, 2025 Cash flow hedges Notional amount $ 75,000 $ 75,000 Weighted-average remaining term (years) 0.59 0.84 Pay fixed rate (weighted-average) 3.81 % 3.81 % Receive variable rate (weighted average) 3.67 % 3.52 % Estimated fair value (1) $ 348 $ 211 32 Table of Contents MID PENN BANCORP, INC. (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 $ 59 thousand will be reclassified to interest expense. Note 7 - 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, 2025 $ ( 6,971 ) $ ( 191 ) $ 839 $ ( 6,323 ) OCI before reclassifications ( 1,946 ) 129 31 ( 1,786 ) Amounts reclassified from AOCI — — ( 48 ) ( 48 ) Balance as of March 31, 2026 $ ( 8,917 ) $ ( 62 ) $ 822 ( 8,157 ) Balance as of December 31, 2024 $ ( 18,889 ) $ 1,485 $ 579 $ ( 16,825 ) OCI before reclassifications 3,656 ( 984 ) 16 2,688 Amounts reclassified from AOCI — — ( 26 ) ( 26 ) Balance as of March 31, 2025 $ ( 15,233 ) $ 501 $ 569 $ ( 14,163 ) 33 Table of Contents MID PENN BANCORP, INC. Note 8 - 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 non-recurring 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 three months ended March 31, 2026 or the year ended December 31, 2025. The following tables illustrate the assets and liabilities measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets: March 31, 2026 (In thousands) Level 1 Level 2 Level 3 Total Available-for-sale securities: U.S. Treasury and U.S. government agencies $ — $ 16,862 $ — $ 16,862 Mortgage-backed U.S. government agencies — 376,221 — 376,221 State and political subdivision obligations — 50,854 — 50,854 Corporate debt securities — 40,193 — 40,193 Equity securities 5,412 — — 5,412 Loans held-for-sale — 16,554 — 16,554 Other assets: Derivative assets — 8,168 — 8,168 Other liabilities: Derivative liabilities — 7,820 7,820 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 34 Table of Contents 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. These securities consist primarily of publicly traded equity securities and are classified within Level 1 in the fair value hierarchy. 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 March 31, 2026 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 in order 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 3. 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: March 31, 2026 (In thousands) Level 1 Level 2 Level 3 Total Individually evaluated loans, net of ACL $ — $ — $ 26,846 $ 26,846 Foreclosed assets held-for-sale — — 8,420 8,420 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 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 2026 and 2025, 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. 35 Table of Contents 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: March 31, 2026 (Dollars in thousands) Fair Value Valuation Technique Significant Unobservable Input Range of Inputs Weighted Average Individually evaluated loans, net of ACL $ 26,846 Appraisal of collateral Appraisal adjustments 8 % - 100 % 52.1 % Foreclosed assets held-for-sale 8,420 Appraisal of collateral Appraisal adjustments 18 % - 100 % 42.6 % December 31, 2025 (Dollars 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 % The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn's financial instruments as of the periods presented: March 31, 2026 Carrying Amount Estimated Fair Value (In thousands) Level 1 Level 2 Level 3 Total Financial instruments - assets Cash and cash equivalents $ 141,190 $ 141,190 $ — $ — $ 141,190 Available-for-sale securities 484,130 — 484,130 — 484,130 Held-to-maturity securities 340,957 — 314,398 — 314,398 Equity securities 5,412 5,412 — — 5,412 Loans held-for-sale 16,554 — 16,554 — 16,554 Net loans 5,468,835 — — 5,508,561 5,508,561 Restricted investment in bank stocks 10,081 10,081 — 10,081 Accrued interest receivable 32,958 32,958 — — 32,958 Derivative assets 8,168 — 8,168 — 8,168 Financial instruments - liabilities Deposits $ 5,970,967 $ — $ 5,973,274 $ — $ 5,973,274 Short-term borrowings 31,500 — 31,500 — 31,500 Long-term debt (1) 141 — 127 — 127 Accrued interest payable 12,195 12,195 — — 12,195 Derivative liabilities 7,865 — 7,865 — 7,865 (1) Long-term debt excludes finance lease obligations. 36 Table of Contents MID PENN BANCORP, INC. 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 Subordinated debt — — — — — 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. The Bank’s outstanding and unfunded credit commitments and financial standby letters of credit were deemed to have no significant fair value as of March 31, 2026 and December 31, 2025. Note 9 - Commitments and Contingencies Guarantees and commitments to extend credit 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 $ 65.1 million and $ 66.5 million of standby letters of credit outstanding as of March 31, 2026 and December 31, 2025, respectively. Mid Penn does not anticipate any losses resulting from these transactions. The amount of the liability as of March 31, 2026 and December 31, 2025 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 credit-related OBS commitments, 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 provision for credit losses. 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. 37 Table of Contents MID PENN BANCORP, INC. The ACL - OBS was $ 3.1 million and $ 2.9 million as of March 31, 2026 and December 31, 2025, respectively. A benefit for credit losses related to credit commitments of $ 54 thousand and $ 20 thousand was recorded for the three months ended March 31, 2026 and March 31, 2025, respectively. The following table presents the activity in the ACL - OBS by segment for the three months ended March 31, 2026: (In thousands) Balance as of December 31, 2025 Initial ACL Recorded On Acquired Commitments (1) (Benefit)/Provision for Credit Loss Balance as of March 31, 2026 1-4 Family Rental $ 12 $ — $ ( 1 ) $ 11 C&I 1,457 83 ( 2 ) 1,538 CRE NonOwner Occupied 134 — ( 10 ) 124 CRE Owner Occupied 93 — 20 113 Consumer 3 — — 3 Farmland 97 — ( 1 ) 96 HELOC & Junior Liens 130 64 5 199 Multifamily 12 — — 12 Other Construction & Land 742 33 ( 15 ) 760 Residential Construction 229 40 ( 50 ) 219 Residential First Liens 4 — — 4 $ 2,913 $ 220 $ ( 54 ) $ 3,079 (1) Includes commitments on loans acquired in the 1st Colonial acquisition on February 27, 2026. These commitments are included in the allowance for off-balance sheet credit exposures as of March 31, 2026 . (In thousands) Balance as of December 31, 2024 (Benefit)/Provision for Credit Loss Balance as of March 31, 2025 1-4 Family Rental $ 16 $ ( 3 ) $ 13 C&I 1,165 157 1,322 CRE NonOwner Occupied 132 ( 23 ) 109 CRE Owner Occupied 98 7 105 Consumer 3 — 3 Farmland 92 20 112 HELOC & Junior Liens 92 3 95 Multifamily 27 ( 5 ) 22 Other Construction & Land 792 ( 132 ) 660 Residential Construction 516 ( 45 ) 471 Residential First Liens 6 1 7 $ 2,939 $ ( 20 ) $ 2,919 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. 38 Table of Contents MID PENN BANCORP, INC. 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. Note 10 - Debt Short-term FHLB and Correspondent Bank Borrowings Total short-term borrowings were $ 31.5 million and $ 20.8 million as of March 31, 2026 and December 31, 2025, 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 March 31, 2026, the amount of loans pledged totaled $ 2.7 billion. As of March 31, 2026, the Bank's unused short-term borrowing capacity with the FHLB totaled $ 1.5 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 March 31, 2026. No draws have been made on these lines of credit as of March 31, 2026 and December 31, 2025, respectively. Long-term Debt The following table presents a summary of long-term debt as of March 31, 2026 and December 31, 2025: (Dollars in thousands) March 31, 2026 December 31, 2025 FHLB fixed rate instruments: Due February 2026, 4.51 % $ — $ 20,000 Due August 2026, 4.80 % 133 212 Due February 2027, 6.71 % 8 10 Total FHLB fixed rate instruments 141 20,222 Finance lease obligations included in long-term debt 2,880 2,917 Total long-term debt $ 3,021 $ 23,139 As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. As of March 31, 2026 and December 31, 2025, the Bank had long-term debt outstanding in the amount of $ 3.0 million and $ 23.1 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 $ 406.5 million and $ 162.5 million as of March 31, 2026 and December 31, 2025, respectively. 39 Table of Contents 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 March 31, 2026, the Corporation had no subordinated debt outstanding. Note 12 - Common Stock and Equity Incentive Plans Treasury Stock Repurchase Program Mid Penn adopted a treasury stock repurchase program ("Program") initially effective March 19, 2020. On April 21, 2026, the Board of Directors renewed the Program through April 30, 2027 and approved an increase in repurchase authorization permitting the repurchase of up to an additional $ 50.0 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. No shares were repurchased in the three months ended March 31, 2026. As of March 31, 2026, 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. 40 Table of Contents MID PENN BANCORP, INC. 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 March 31, 2026, participants in the plan held 496,255 shares of the Corporation's common stock. Equity Incentive 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 Corporation, and replaced the 2014 Restricted Stock Plan. The aggregate number of shares of common stock available for issuance under the Plans is 550,000 shares . As of March 31, 2026, 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 $ 689 thousand and $ 239 thousand in stock-based compensation expense for the three months ended March 31, 2026 and 2025, 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. Equity Awards Assumed from William Penn Acquisition In connection with the acquisition of William Penn 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 129,776 stock options and 53,822 restricted stock units remained unvested as of March 31, 2026. Compensation expense for stock options was $ 131 thousand for the three months ended March 31, 2026. As of March 31, 2026, unrecognized compensation expense related to unvested options was $ 645 thousand. Compensation expense for restricted stock awards was $ 183 thousand for the three months ended March 31, 2026. As of March 31, 2026, unrecognized compensation cost related to unvested restricted stock was $ 894 thousand. The assumed awards are subject to the original vesting terms and conditions included in the William Penn stock-based compensation plan. Stock Appreciation Rights Issued in Connection with the Cumberland Advisors Acquisition Stock appreciation rights issued in the acquisition of Cumberland Advisors are being accounted for as post-combination compensation expense and will be recognized over the applicable service period. The stock appreciation rights have a maximum aggregate value of $ 1.2 million to be exercisable between the first and third anniversary of the closing date of the transaction. 41 Table of Contents MID PENN BANCORP, INC. Note 13 - 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 data sets forth the computation of basic and diluted earnings per common share: Three Months Ended March 31, (In thousands, except per share data) 2026 2025 Net income available to common shareholders $ 8,706 $ 13,742 Weighted-average common shares outstanding - basic 23,949,008 19,355,867 Dilutive effect of stock-based compensation 365,131 60,398 Weighted-average common shares outstanding - diluted 24,314,139 19,416,265 Basic earnings per common share $ 0.36 $ 0.71 Diluted earnings per common share 0.36 0.71 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 no anti-dilutive stock options excluded from diluted earnings per share for the three months ended March 31, 2026 or March 31, 2025. Dilutive common stock equivalents included assumed equity awards acquired in the William Penn acquisition. As part of the acquisition of William Penn 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). As part of the acquisition of Cumberland Advisors on January 1, 2026, Mid Penn issued 127,009 shares of common stock as purchase consideration. As part of the acquisition of 1st Colonial on February 27, 2026, Mid Penn issued 2,111,076 shares of common stock as purchase consideration. These shares contributed to the increase in weighted-average shares outstanding for the quarter ended March 31, 2026. 42 Table of Contents MID PENN BANCORP, INC. Note 14 - 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 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) March 31, 2026 March 31, 2025 Net interest income $ 55,250 $ 42,509 Provision for credit losses 1,594 301 Noninterest income 9,604 5,239 Noninterest expense 51,959 30,642 Provision for Income taxes 2,595 3,063 Net income 8,706 13,742 Total assets $ 6,964,809 $ 5,546,026 Other Segment Information Revenue Composition: Mid Penn generates revenue primarily from net interest income and non-interest 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 average assets ("ROA"), return on average equity ("ROE") and core efficiency ratio. 43 Table of Contents MID PENN BANCORP, INC.