Mid Penn Executive Summary

Mid Penn Bancorp Inc. is not only an adequately capitalized institution, but it is also a well capitalized institution. Additionally, Mid Penn is in line with Basel III, because their ratios are higher than the new minimum requirements, plus the conservation buffers. An exhausted spreadsheet of Mid Penn’s year-to-year comparisons and comparisons with its peer group can be found in the appendix.

Risk-Management

Mid Penn utilizes an asset-liability management model to measure the impact of interest rate movements on its interest rate sensitivity position. The relative interest sensitivity gap ratio for Mid Penn was -18.23 percent in 2013 and -20.25 percent in 2014 while its interest-sensitivity gap was -$127.2 million for 2013 and -$148.6 million

Short-term credit provided for small business customers are Commercial line of credit and letters of credit. Long-term credit provided to business owners are commercial real estate and construction financing and preferred SBA lender. A commercial line of credit is a certain credit limit that a bank will offer you to start a business. Mid Penn approves a commercial line of credit for a 12-month period and is reviewed each 12 months. Mid Penn also provides a line of credit for business owners to guarantee sellers the payment of good/services. The small business customer will receive a specified sum within a certain period of time. They offer commercial real estate and construction financing for individual borrowers, developers and investors. Mid Penn also provides financing for construction of many different commercial property types with a large range of available funding. Mid Penn Bank is a preferred lender under the U.S. Small Business Administration (SBA) program. This program allows financial assistance to the small business community. Under the SBA Program, customers receive funds for starting up a business with a reduction in fees, higher guarantees, and expanded eligibility. Small business loans are a big aspect of Mid Penn since they help their community grow hence why commercial and industrial loans made up 14.6% of Mid Penn’s total

They provide different accounts such as checking accounts, savings accounts/CDs, IRAs, and CDARS accounts. Checking accounts have flexible features such as no minimum balance required, free online banking, free online bill pay, and many more. Savings accounts offered are Simple Savings which is interest bearing and has no minimum balance requires and My Savings which is a savings account meant for children under 16 with a joint adult owner. This account helps children learn how to save from a young age and provides features such as a birthday card with $5 match when $25 or more is deposited within 30 days of child’s birthday, prize each time the child visits their local branch, free piggy bank, no minimum balance, and other features. Mid Penn also provides Club Accounts which are savings accounts used for holiday gifts, vacations and other miscellaneous expenses. Different Club Accounts provided are Club Savings-Automatic Deduction (October Payout), Club Savings- Coupon Book (October Payout), Vacation Cub- Automatic Deduction (March Payout), and Vacation Club- Coupon Book (March Payout). Flex Money market is a Money Market account provided by Mid Penn that utilizes savings with the convenience of a checking account. Certificates of Deposit is a savings service where money is deposited for a certificate with a fixed rate of interest for a fixed term. Rates are based on current market conditions. Several IRAs