On Monday, Mid Penn Bancorp (NASDAQ: NASDAQ:MPB) had its price target increased to $31 from $25 by Piper Sandler, while the Overweight rating was maintained on the stock.
Mid Penn Bancorp reported its earnings per share (EPS) for the second quarter of 2024 at $0.71. After adjusting for a Bank-Owned Life Insurance (BOLI) benefit of approximately $487,000, the core EPS was calculated at $0.68. This figure surpassed both the analyst's estimate of $0.62 and the consensus estimate of $0.64.
The company's net interest income (NII) exceeded expectations, contributing $0.11 to the EPS, while operating expenses were $0.02 below what was anticipated. However, these gains were partially offset by a higher provisioning cost of $0.06 and a decrease in fee income by $0.02.
The net interest margin (NIM) experienced a significant increase to 3.12% last quarter, which was 15 basis points higher than the previous quarter and well above the expected 2.97%.
Mid Penn Bancorp also saw an improvement in capital levels, with both the Tangible Common Equity (TCE) and the Common Equity Tier 1 (CET1) ratios rising. The credit profile remained strong, with nonperforming assets (NPAs) decreasing from the last quarter.
Notably, the company did not repurchase any shares during the quarter, but management has reauthorized a share buyback program of up to $15 million to be executed within the next year, with $5 million remaining under the program as of June 30, 2024.
In other recent news, Mid Penn Bancorp has been the subject of keen analysis by financial firm Piper Sandler. The firm has maintained an Overweight rating and a $25.00 price target on Mid Penn Bancorp's shares, reaffirming its confidence in the bank's potential. This stance follows a series of investor meetings with the senior management of Mid Penn Bancorp.
Despite Mid Penn Bancorp's performance being somewhat lackluster compared to its peers, Piper Sandler's analysis suggests that the bank's current valuation represents good value. The firm's endorsement of Mid Penn Bancorp is largely due to the bank's solid credit profile and its commitment to controlling expenses, which are seen as strong points for potential investors.
An analyst from Piper Sandler highlighted that while the bank has underperformed in the market, the current share price could offer an attractive entry point for investors. These recent developments reflect a positive outlook on Mid Penn Bancorp's financial health and future performance, as per Piper Sandler's analysis.
InvestingPro Insights
Following the positive earnings report from Mid Penn Bancorp (NASDAQ: MPB), InvestingPro data highlights several key metrics that investors may find beneficial. The company's market capitalization stands at a robust $469.23M, with a Price/Earnings (P/E) ratio of 10.27, reflecting a valuation that may attract value investors. Additionally, the stock is trading near its 52-week high with a Price % of 52 Week High at 99.75%, signaling strong market confidence in the company's performance.
InvestingPro Tips suggest caution may be warranted despite the stock's recent success. Analysts have revised their earnings downwards for the upcoming period, which could indicate potential headwinds. Moreover, the Relative Strength Index (RSI) suggests that the stock is currently in overbought territory, hinting at a possible pullback in the near term. Investors should note that Mid Penn Bancorp has maintained dividend payments for 14 consecutive years, offering a dividend yield of 2.83%, which could be appealing for income-focused portfolios.
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