HARRISBURG, Pa. - Mid Penn Bancorp , Inc. (NASDAQ: NASDAQ:MPB), the parent company of Mid Penn Bank, has announced a public offering of 2,375,000 shares of common stock at a price of $29.50 per share, with the goal of raising $70 million. The company, which operates 45 retail locations in Pennsylvania and central New Jersey, also provided underwriters a 30-day option to purchase up to an additional 356,250 shares at the public offering price, minus underwriting discounts.
The offering is managed by Stephens Inc. as the lead book-running manager, and Piper Sandler & Co. as the joint book-running manager. Mid Penn Bancorp expects to net approximately $67 million from the offering, assuming the underwriters' additional purchase option is not exercised, after accounting for underwriting discounts and expenses. The bank intends to use these proceeds to support its growth initiatives, which may include organic growth, potential redemption of subordinated debt, future strategic transactions, and general corporate purposes.
The offering is made under a shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC) on August 23, 2023, and a related preliminary prospectus supplement dated November 1, 2024. A final prospectus supplement relating to the offering will also be filed with the SEC.
This offering is part of Mid Penn Bancorp's strategy to strengthen its financial position and expand its services. The bank has total assets of approximately $5 billion and offers a wide range of financial products and services to its communities.
The press release notes that the securities offered have not been approved or disapproved by any regulatory authority, nor has any authority commented on the accuracy or adequacy of the prospectus supplement or the registration statement.
The information contained in this article is based on a press release statement from Mid Penn Bancorp.
In other recent news, Mid Penn Bancorp has seen an improvement in its earnings per share (EPS), reporting $0.74 for the third quarter of 2024, surpassing both analysts' and consensus estimates. This favorable performance was mainly due to higher-than-expected net interest income and fee income. The bank's pre-provision net revenue (PPNR) also exceeded initial forecasts after adjustments for certain expenses.
In other developments, Piper Sandler, a financial services firm, has upgraded its price target for Mid Penn Bancorp shares to $35.00, maintaining an Overweight rating. This adjustment follows the bank's strong performance in the second quarter, where it reported an EPS of $0.71, again beating estimates.
The bank's credit profile remains strong, with nonperforming assets (NPAs) showing only a slight increase due to a single loan migration. Mid Penn Bancorp also reported higher capital levels for the quarter, despite not engaging in any share repurchases. The bank has a share buyback program in place with $5 million remaining under the current authorization. These are some of the recent developments surrounding Mid Penn Bancorp.
InvestingPro Insights
Mid Penn Bancorp's recent public offering aligns with its strong financial performance and growth trajectory. According to InvestingPro data, the company boasts a market capitalization of $525.03 million and a P/E ratio of 10.95, indicating a potentially undervalued stock relative to its earnings.
An InvestingPro Tip highlights that MPB is trading at a low P/E ratio relative to its near-term earnings growth, which could make it an attractive investment opportunity in light of the recent stock offering. This is further supported by the company's PEG ratio of 0.76, suggesting that the stock may be undervalued considering its growth prospects.
Another InvestingPro Tip notes that Mid Penn Bancorp has maintained dividend payments for 14 consecutive years, demonstrating a commitment to shareholder returns. This consistency in dividend payments could be appealing to investors looking for stable income alongside potential capital appreciation from the company's growth initiatives.
The bank's financial health is further evidenced by its operating income margin of 36.97% for the last twelve months as of Q3 2024, indicating efficient operations and strong profitability. This robust financial performance provides context for why the company is well-positioned to pursue growth opportunities with the capital raised from the public offering.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 8 more InvestingPro Tips available for Mid Penn Bancorp, providing a deeper understanding of the company's financial position and market performance.
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