Exhibit 99.1

PRESS RELEASE

Mid Penn Bancorp, Inc.

349 Union Street

Millersburg, PA  17061

1-866-642-7736

CONTACTS

MID PENN BANCORP, INC. REPORTS IMPROVEMENT IN QUARTERLY AND YEAR-OVER-YEAR EARNINGS; ASSETS, LOANS, AND DEPOSITS; AND ASSET QUALITY

October 24, 2016 – Millersburg, PA – Mid Penn Bancorp, Inc. (“Mid Penn”) (NASDAQ:  MPB), the parent company of Mid Penn Bank, today reported net income available to common shareholders (earnings) of $1,901,000 or $0.45 per common share basic and diluted for the quarter ended September 30, 2016, compared to earnings of $1,802,000 or $0.43 per common share basic and diluted for the quarter ended September 30, 2015.  The earnings per share (“EPS”) for the third quarter of 2016 increased 5 percent compared to the EPS for the third quarter of 2015.  

For the nine months ended September 30, 2016, earnings were $5,728,000 or $1.35 per common share basic and diluted, compared to earnings of $4,630,000 or $1.14 per common share basic and diluted for the same period in 2015.  The EPS for the first nine months of 2016 increased 18 percent compared to the EPS for the same period in 2015.

Mid Penn also reported total assets of $1,042,687,000 as of September 30, 2016, an increase of over 11 percent compared to total assets of $931,638,000 as of December 31, 2015.  For the nine months ending September 30, 2016, Mid Penn realized favorable loan growth of $52,293,000 or 7 percent, primarily in commercial relationships.  Additionally, the portfolio of available-for-sale investment securities increased by $37,723,000 or 28 percent for the same period.  These strong year-to-date increases in interest-earning assets were funded by significant deposit growth of $161,174,000 or 21 percent during the first nine months of 2016.  In addition to supporting loan and investment portfolio growth, the additional funds from the year-to-date increase in deposits were used to repay $58,263,000 in short- and long-term borrowings during the first nine months of 2016.

PRESIDENT’S STATEMENT

I am pleased to report that Mid Penn's results and financial condition through the third quarter of 2016 continue to reflect our favorable trend of sound growth in both earnings and assets.  We focus on increasing shareholder value while delivering sound returns, so we are proud to provide our shareholders with a Return on Average Equity of over 10% for both the third quarter and the year-to-date, while paying a healthy dividend.  Our success in providing these favorable results is rooted in our community banking approach and developing qualitative relationships with commercial, retail, and wealth management customers.  In addition to sustaining growth in interest-earning assets and core banking revenues, we are increasingly successful in generating revenues from fee-based activities including small business lending, mortgage banking, and wealth management services.  In support of our franchise expansion goals, we are strategically adding new locations in opportunistic markets, including our most recently announced branch on the Oregon Pike in Manheim Township, Lancaster County.  At the same time, we are enhancing our technology-based delivery channels, including expanded mobile and electronic banking capabilities for both consumers and businesses.   Though we are certainly pleased to have crossed over the $1 billion of assets threshold during 2016 and to continue to report increasing earnings, we are truly excited for the greater achievements ahead for Mid Penn.

OPERATING RESULTS

Net Interest Income and Net Interest Margin

Net interest income increased $569,000 or 7 percent to $8,758,000 for the three months ended September 30, 2016 compared to $8,189,000 for the three months ended September 30, 2015.  Through the first nine months of 2016, net interest income was $25,716,000, an increase of $2,003,000 or 8 percent compared to net interest income of $23,713,000 during the same period in 2015.  Net interest income in 2016 was positively impacted by core loan growth funded by lower-cost deposits.  The comparability of the operating results for the nine months ended September 30, 2016 and 2015 have been impacted by Mid Penn's acquisition of

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Phoenix Bancorp, which was effective March 1, 2015.  The reported results for the nine months ended September 30, 2015 included only seven months of operating results related to the Phoenix acquisition versus nine months in 2016.

For the three months ended September 30, 2016, Mid Penn’s tax-equivalent net interest margin was 3.71% compared to 3.99% for the three months ended September 30, 2015.  Included in the three months ended September 30, 2015 was $100,000 in income from the successful resolution of legacy Phoenix loans acquired with credit deterioration.  For the nine months ended September 30, 2016, Mid Penn’s tax-equivalent net interest margin was 3.83% versus 4.04% for the nine months ended September 30, 2015.  Included in the nine months ended September 30, 2015 was $552,000 in income from the successful resolution of four legacy Phoenix loans acquired with credit deterioration.  The investment portfolio also had a lower yield during the three and nine months ended September 30, 2016, versus the same periods in 2015, as several securities that matured or were called in the first nine months of 2016 had higher yields compared to replacement investments purchased in the persistent lower-yield bond market conditions.

Noninterest Income

Noninterest income increased $334,000 or 31 percent to $1,419,000 during the three months ended September 30, 2016, compared to the three months ended September 30, 2015.  During the nine months ended September 30, 2016, noninterest income increased $922,000 or 30 percent to $4,049,000 versus the nine months ended September 30, 2015.

Through the first nine months of 2016, mortgage banking income favorably increased $372,000 to $698,000 over the same period in 2015.  Increased residential real estate financing activity throughout Mid Penn’s footprint, favorably low mortgage market interest rates, and the addition of seasoned loan originators collectively contributed to the increased revenue from this business line.

Mid Penn also experienced increased origination and sales activity in Small Business Administration (“SBA”) loans, resulting in an increase of $138,000 to $354,000 from related loan sale gains during the first nine months of 2016 compared to the same period in 2015.  More qualified borrowers continue to take advantage of Mid Penn’s Preferred Lender status with the SBA.

During the first nine months of 2016, Mid Penn took advantage of increased market values on several securities to reposition some of its investment portfolio, including selling a large volume of longer-term and rate-sensitive CMOs, as well as certain municipal bonds and agency notes.  Mid Penn realized $413,000 in securities gains in the first nine months of 2016 as a result of these investment management activities.  In comparison, during the first nine months of 2015, Mid Penn realized $315,000 from gains on sales of securities.

Other noninterest income increased $200,000 for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015.  Included in 2016 Other Income was $86,000 from the gain on the sale of insurance policies upon the dissolution of Mid Penn Insurance Services, LLC, a wholly-owned subsidiary of Mid Penn Bank, effective March 1, 2016.  The decision was made to liquidate the subsidiary due to the lack of consistent profitability and growth.

Noninterest Expense

Noninterest expenses increased $596,000 or 9 percent to $7,165,000 during the three months ended September 30, 2016, versus the same period in 2015.  During the nine months ended September 30, 2016, noninterest expenses increased $1,227,000 or 6 percent to $21,078,000 versus the nine months ended September 30, 2015.

Salaries and employee benefit expenses increased $1,197,000 during the nine months ended September 30, 2016 versus the same period in 2015.  The increase primarily was attributable to franchise expansion, including (i) the addition of employees from the March 1, 2015 Phoenix acquisition, (ii) staff added to serve in Mid Penn’s branch in the Mechanicsburg, PA market, which opened in June 2015, and (iii) an increase in lending personnel, credit support staff, and executive management in alignment with Mid Penn’s core banking growth.

In connection with the acquisition of Phoenix, Mid Penn incurred $762,000 of nonrecurring merger-related expenses in the first nine months of 2015, while no merger expenses were incurred in the same period in 2016.

Pennsylvania bank shares tax expense increased $269,000 during the nine months ended September 30, 2016 versus the same period in 2015 due to the Phoenix acquisition and the resultant increase in the capital base used to determine the annual shares tax.

Equipment expense has increased $177,000 during the first nine months of 2016 versus the same period in 2015.  The increase is primarily attributable to both added facilities from the Phoenix acquisition and other franchise expansion, as well as increased depreciation expense on information technology related enhancements.

Mid Penn realized losses of $158,000 on the sale/write-down of foreclosed assets during the first nine months of 2016, as compared to $64,000 for the same period in 2015, reflecting the continued workout efforts on certain holdings in the Bank’s portfolio of other real estate owned. 

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FINANCIAL CONDITION

Loans

Total loans at September 30, 2016 were $791,484,000 compared to $739,191,000 at December 31, 2015, an increase of $52,293,000 or 7 percent.  The main driver of Mid Penn’s loan growth continues to be commercial loans, including both commercial and industrial financing, and commercial real estate credits.

Deposits

Total deposits increased $161,174,000 or 21 percent, from $777,043,000 at December 31, 2015 to $938,217,000 at September 30, 2016.  Over the last nine months, all deposit categories increased due to both strong retail branch deposit growth and cash management sales efforts.  Mid Penn continues to shift its funding composition towards lower-cost deposits from higher-cost borrowings.

Investments

Mid Penn’s total available-for-sale securities portfolio increased $37,723,000 or 28 percent, from $135,721,000 at December 31, 2015 to $173,444,000 at September 30, 2016.  Mid Penn increased its investment holdings primarily to maintain pledging requirements related to an increase in public fund and other collateralized nonprofit deposit balances during the first nine months of 2016.

Capital

Shareholders’ equity increased by $5,017,000 or 7 percent, from $70,068,000 at December 31, 2015 to $75,085,000 at September 30, 2016, due to both retained earnings and an increase in accumulated other comprehensive income for the first nine months from the normal operations of Mid Penn.  The primary source of accumulated other comprehensive income is unrealized appreciation on available-for-sale investments.  Regulatory capital ratios for both the holding company and the Bank at September 30, 2016 and December 31, 2015 exceeded regulatory “well-capitalized” levels.

ASSET QUALITY

Total nonperforming assets at September 30, 2016 were $6,026,000 a reduction compared to $6,062,000 at December 31, 2015 and $8,763,000 at September 30, 2015.  The ratio of nonperforming assets to total loans and other real estate decreased to 0.76% as of September 30, 2016, compared to 0.82% as of December 31, 2015 and 1.22% as of September 30, 2015.  The reduced level of nonperforming assets has primarily been the result of thorough underwriting and risk analysis of new extensions of credit, as well as diligent portfolio monitoring and timely collection and workout efforts, which have resulted in reduced delinquency.

Mid Penn had net loan charge-offs of $6,000 during the nine months ended September 30, 2016, compared to net charge-offs of $597,000 during the same period in 2015.

Based upon its analysis of loan and lease loss allowance adequacy, management recorded a $585,000 loan loss provision for the three months ended September 30, 2016, compared to a provision of $265,000 for the three months ended September 30, 2015.  During the nine months ended September 30, 2016, the provision for loan and lease losses was $1,320,000, compared to $865,000 for the nine months ended September 30, 2015.  The allowance for loan and lease losses as a percentage of total loans was 0.95% at September 30, 2016, compared to 0.83% at December 31, 2015.  Loan loss reserves as a percentage of nonperforming loans was 135.42% at September 30, 2016, compared to 126.46% at December 31, 2015 and 89.85% at September 30, 2015.  Management believes, based on information currently available, that the allowance for loan and lease losses of $7,482,000 is adequate as of September 30, 2016 to cover specifically identifiable loan losses, as well as estimated losses inherent in the portfolio.

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FINANCIAL HIGHLIGHTS (Unaudited):

OPERATING HIGHLIGHTS (Unaudited):

CAPITAL RATIOS (Unaudited):

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CONSOLIDATED BALANCE SHEETS (Unaudited):

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CONSOLIDATED STATEMENTS OF INCOME (Unaudited):

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Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements.  The review period for subsequent events extends up to and including the filing date of a public company’s consolidated financial statements when filed with the Securities and Exchange Commission (“SEC”).  Accordingly, the financial information in this announcement is subject to change.  The statements are valid only as of the date hereof and Mid Penn Bancorp, Inc. disclaims any obligation to update this information.

SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made regarding the subjects of this release, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's current views and expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "continues," "expect," "look," "believe," "anticipate," "may," "will," "should," "projects," "strategy" or similar statements. Actual results may differ materially from such forward-looking statements, and no reliance should be placed on any forward-looking statement.  Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and interest rate sensitivity; prepayment speeds, loan originations, credit losses and market values on loans, collateral securing loans, and other assets; sources of liquidity; common shares outstanding; common stock price volatility; fair value of and number of stock-based compensation awards to be issued in future periods; the impact of changes in market values on securities held in Mid Penn’s portfolio; legislation affecting the financial services industry as a whole, and Mid Penn and Mid Penn Bank individually or collectively, including tax legislation; regulatory supervision and oversight, including monetary policy and capital requirements; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies; increasing price and product/service competition by competitors, including new entrants; rapid technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; the mix of products/services; containing costs and expenses; governmental and public policy changes; protection and validity of intellectual property rights; reliance on large customers; technological, implementation and cost/financial risks in large, multi-year contracts; the outcome of future litigation and governmental proceedings, including tax-related examinations and other matters; continued availability of financing; financial resources in the amounts, at the times and on the terms required to support Mid Penn and Mid Penn Bank’s future businesses; and material differences in the actual financial results of merger, acquisition and investment activities compared with Mid Penn’s initial expectations, including the full realization of anticipated cost savings and revenue enhancements.  For a list of other factors which would affect our results, see Mid Penn’s filings with the SEC, including those risk factors identified in the "Risk Factor" section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2015. The statements in this press release are made as of the date of this press release, even if subsequently made available by Mid Penn on its website or otherwise. Mid Penn assumes no obligation for updating any such forward-looking statements at any time, except as required by law.

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