CORRECTING and REPLACING Mid Penn Bancorp, Inc. Reports First Quarter Earnings

Business Wire, April 24, 2009

MILLERSBURG, Pa. -- Mid Penn Bancorp, Inc. (“Mid Penn”) (NASDAQ:MPB), the parent company of Mid Penn Bank, reported a correction to its earnings release of April 24, 2009 relating to earnings per common share and corresponding financial ratios. Earnings per common share for the first quarter of 2009 were $0.02 rather than $0.06 as previously reported. The misstatements were due to an inadvertent calculation error related to the dividends on the $10,000,000 in preferred shares issued under the United States Department of Treasury’s Troubled Asset Relief Program Capital Purchase Program. In addition, there were typographical errors regarding an asset quality ratio.

The corrected release reads:

MID PENN BANCORP, INC. REPORTS FIRST QUARTER EARNINGS

Mid Penn Bancorp, Inc. (“Mid Penn”) (NASDAQ:MPB), the parent company of Mid Penn Bank, today reported increased total assets, loans, and deposits for the first quarter of 2009, as well as first quarter earnings of $213,000, including per common share earnings of $0.02. Earnings for the first quarter of 2008 were $1,173,000, or $0.34 per common share.

[Table Omitted]

President’s Statement

In commenting on the Company’s financial results, President Ritrievi states, “The first quarter of 2009 marks another quarter of strong loan and deposit growth for Mid Penn Bank. These growth numbers evidence that Mid Penn Bank is a primary bank of choice for consumers, businesses, and municipalities throughout our footprint. Why? Because Mid Penn Bank is a safe and sound alternative to the banks whose financial performance has deteriorated as a result of unwise lending and investment activity. Because all of our decisions are made in Central Pennsylvania, by people who live, work, and play in the same community as our customers. We know our customers and our customers know us. We both like it that way.”

Due to the continued deterioration of the overall economy and the affect the economy has had, and continues to have on our customer base, we again increased our loan loss provision. Primarily, as a result of the increased provision, we are reporting quarterly earnings that are inconsistent with our other growth numbers. We feel confident; however, that the higher provision will assure that Mid Penn Bank is able to continue its strong growth and commitment to the borrowing community. It is important to note that, notwithstanding the large provision expense, Mid Penn Bank’s asset quality ratios remain consistent with, or better than, industry averages, including our first quarter net charge-offs of just $174,000. Mid Penn Bank continues to be a well-capitalized company as defined by our regulators and we are committed to remaining in that category.

Mr. Ritrievi also notes the following highlights from the first quarter (dollars in thousands):

[Table Omitted]

Dividend Declaration

The Board of directors of Mid Penn Bancorp, Inc. (NASDAQ:MPB), the parent company of Mid Penn Bank, declared a quarterly cash dividend of 16 cents per share, payable Monday, May 25, 2009, to shareholders of record Wednesday, May 6, 2009.

[Table Omitted]

Total revenues (interest income plus noninterest income) for the first quarter decreased $467,000 to $8,506,000, down 5.2% from the first quarter of 2008.

Net income totaled $213,000 for the first quarter of 2009, a decrease of $960,000, or 81.8%, from net income of $1,173,000 for the first quarter of 2008. Net income per fully diluted common share for the quarter was $0.02, a 94.1% decrease from the $0.34 recorded for the same period a year ago.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2009 totaled $3,956,000, a decrease of $244,000, or 5.8% from the $4,200,000 recorded a year ago. This decrease was a result of the continued margin compression experienced in the Company’s net interest margin.

The net interest margin on a fully taxable equivalent basis for the first quarter of 2009 was 3.13%, down 48 basis points from the first quarter of 2008.

Non-interest Expenses

Non-interest expenses for the first quarter of 2009 were $3,868,000, up 12.2% over $3,446,000 one year ago. The breakdown of non-interest expenses for the three months ended March 31, 2009 and 2008, respectively, are shown in the following table:

[Table Omitted]

[Table Omitted]

[Table Omitted]

Non-performing assets and loans past due 90 days at March 31, 2009 totaled $5,190,000, or 1.16% of total loans, as compared to $7,540,000, or 1.76% of total loans, at December 31, 2008 and $7,513,000, or 1.93%, of total loans one year ago. The Company’s first quarter provision for loan and lease losses totaled $933,000 as compared to $100,000 recorded in the first quarter of 2008. The increase in the provision for loan and lease losses for the quarter is a result of the Company’s strong loan growth of approximately $58,000,000 over the past twelve months, deterioration in the overall economy, and additional problem loans.