RIVERVIEW FINANCIAL CORPORATION

REPORTS RECORD SECOND QUARTER AND YEAR TO DATE EARNINGS FOR 2021

HARRISBURG, PA, July 20, 2021 / PRNEWSWIRE / Riverview Financial Corporation (the “Company” or “Riverview”) (NASDAQ: RIVE), the holding company for Riverview Bank (the “Bank”), today reported record net income of $4.8 million, or $0.51 per basic and diluted weighted average common share, for the second quarter of 2021, compared to a net loss of $24.1 million, or $(2.61) per basic and diluted weighted average common share, for the second quarter of 2020. For the six months ended June 30, 2021, Riverview reported record net income of $7.8 million, or $0.84 per basic and diluted weighted average common share, compared to a net loss of $23.5 million, or $(2.54) per basic and diluted weighted average common share, for the same period last year.

Major factors impacting 2021 earnings included the acceleration of income earned on Paycheck Protection Program (“PPP”) loans, the recognition of a deposit premium on branch sales and the recovery of provision for loan losses. During the first half of 2021, SBA forgiveness of PPP loans increased causing an acceleration in the recognition of fees as these loans were paid off. Approximately 75.0%, amounting to $188.9 million of the outstanding PPP loans at December 31, 2020, were forgiven in the first half of 2021. Net interest income generated from PPP loans totaled $2.7 million in the second quarter of 2021 and $4.1 million in the first half of 2021. On May 24, 2021, the Company announced the completion of the sale of the branch office located in Meyersdale and related liabilities of the Meyersdale and Somerset branches, resulting in the recognition of $1.6 million of noninterest income in the form of a deposit premium. The $735 thousand recovery of provision for loan losses recognized in the second quarter of 2021 was due to experiencing continued stability in the credit quality of the loan portfolio since the onset of the pandemic, as well as evidence of an overall mitigation of related risks factors. As a result of the uncertainty of the magnitude and longevity of the impact of COVID-19, the Company bolstered its allowance for loan losses through additional provisions totaling $6.3 million in 2020 due primarily to increased qualitative factors for the economy and concentrations in industries specifically affected by the virus. Current national and local economic conditions reflect a more stable economic climate in 2021 compared with the previous year. The Company was able to decrease its qualitative factors in the second quarter based on the remaining low number of CARES Act payment deferrals, improvements in industries most likely to be affected by the pandemic, and continued stability in the credit quality metrics of the loan portfolio. Despite the improvements brought on by medical advances, government assistance programs and their positive impacts on employment and consumer and business activity, future credit loss provisions are subject to significant uncertainty as the pandemic recovery continues to unfold.

The major factors causing the reported net losses of $24.1 million for the three months and $23.5 million for the six months ended June 30, 2020 were a non-cash charge related to the recognition of goodwill impairment and an increase in the provision for loan losses, both stemming from the COVID-19 pandemic. The goodwill impairment of $24.8 million had no impact on tangible book value, regulatory capital ratios, liquidity and the Company’s cash balances. For the three and six months ended June 30, 2020, the provisions for loan losses totaled $2.0 million and $3.8 million, respectively.

On June 30, 2021, Riverview entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Mid Penn Bancorp, Inc. (“Mid Penn”) pursuant to which Riverview will merge with and into Mid Penn (the “Merger”), with Mid Penn being the surviving corporation in the Merger. Upon consummation of the Merger, Riverview Bank, a wholly-owned subsidiary of Riverview, will be merged with and into Mid Penn Bank, a wholly-owned subsidiary of Mid Penn, with Mid Penn Bank being the surviving bank in the Bank Merger. The Merger Agreement was unanimously approved by the boards of directors of Mid Penn and Riverview. Subject to customary and required regulatory and shareholder approval, it is anticipated the Merger will be consummated in the fourth quarter of 2021.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Riverview routinely supplements its evaluation with an

analysis of certain non-GAAP financial measures, such as tangible book value per share and return on average tangible stockholders’ equity. Riverview believes these non-GAAP financial measures provide information useful to investors in understanding its operating performance and trends. Where non-GAAP disclosures are used in this press release, a reconciliation to the comparable GAAP measures is provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from the non-GAAP financial measures other financial institutions use to measure their results of operations.

HIGHLIGHTS

President and Chief Executive Officer, Brett D. Fulk, commented, “I am extremely pleased with our Company’s record level of financial performance during the second quarter and first half of 2021. During the second quarter 2021, we earned $0.51 per share, an increase of 55% when compared to the previous quarter’s $0.33 per share. Despite the challenging interest rate environment and continuation of the impact of the pandemic, we were able to improve both net interest income and our overall operating results. As I have stated previously,

focused strategic initiatives developed and implemented by a team of dedicated and highly talented employees is the defining factor in our ability to generate record performance levels year-to-date through record earnings results in both the first and second quarters of 2021. The effectiveness of our efforts is evidenced by first half of 2021 return on average assets and return on average tangible stockholder equity results of 1.46% and 18.88%, respectively.”

“Additionally, despite the challenges to the economy created by the COVID-19 virus, I am pleased to continue reporting strong credit quality metrics for the second quarter. At the end of the second quarter 2021, for the second consecutive quarter, we are reporting the lowest level of nonaccrual and past due loan balances since the fourth quarter of 2016. It is particularly gratifying to report solid credit quality when it is due in no small measure to intentional strategic decisions implemented proactively to reduce the credit risk profile of our balance sheet in the two years prior to the COVID-19 outbreak.”

INCOME STATEMENT REVIEW

Tax-equivalent net interest income for the three months ended June 30, increased $1.4 million to $11.1 million in 2021 from $9.7 million in 2020. The increase in tax-equivalent net interest income was primarily attributable to an acceleration in the recognition of fees earned on forgiven PPP loans. The tax-equivalent net interest margin for the three months ended June 30, 2021, increased to 3.59% from 3.29% for the comparable period of 2020. The tax-equivalent yield on the loan portfolio increased to 4.60% in the second quarter of 2021 compared to 4.08% in second quarter of 2020. Investments yielded 1.97% on a tax-equivalent basis in the second quarter of 2021 compared to 2.91% for the same period last year. For the three months ended June 30, the cost of deposits decreased 29 basis points to 0.38% in 2021 from 0.67% in 2020. Loans, net averaged $1.0 billion in the second quarter of 2021 and $1.1 billion in the second quarter of 2020. Average investments totaled $149.7 million in 2021 and $66.7 million in 2020. Average interest-bearing liabilities increased to $1.0 billion in 2021 from $988.8 million in 2020.

For the six months ended June 30, tax-equivalent net interest income increased $2.2 million to $20.8 million in 2021 from $18.6 million in 2020. The Company recognized net interest income on PPP loans totaling $4.1 million for the first half of 2021 compared to $1.1 million for the same period last year. For the six months ended June 30, tax-equivalent net interest margin was 3.31% in 2021 compared to 3.43% in 2020. The tax-equivalent yield on the loan portfolio decreased to 4.19% in the six months ended June 30, 2021 compared to 4.33% for the same period in 2020. For the six months ended June 30, investments yielded 2.03% on a tax-equivalent basis in 2021 compared to 2.88% for the same period last year. The cost of deposits decreased 38 basis points to 0.40% in the first six months of 2021 from 0.78% for the same period in 2020. The cost of interest-bearing liabilities decreased to 0.58% in the first half of 2021 from 0.80% in the first half of 2020. Loans averaged $1.1 billion for the six months ended June 30, 2021 compared to $975.2 million for the same period last year.

The Company reported a recovery of provision for loan losses of $735 thousand for the three and six months ended June 30, 2021. As aforementioned, the recapture of the provision for loan losses was a result of waning risk factors associated with the continued recovery from the impact of the pandemic, coupled with credit portfolio performance trends. Conversely, the Company recognized charges in the form of a provision for loan losses of $2.0 million and $3.8 million for the three and six months ended June 30, 2020. The provision for loan losses was the combined result of loan growth, increases in historical loss factors, and changes in qualitative factors related to the allowance for loan losses reserve associated with the effects of COVID-19 as of June 30, 2020.

For the quarter ended June 30, noninterest income totaled $3.7 million in 2021 compared to $2.0 million in 2020. The primary reason for the improvement was the recognition of a $1.6 million deposit premium from the sale of deposits of two branch offices in the second quarter of 2021. Trust and wealth management income increased $84 thousand and $42 thousand, respectively, comparing the second quarters of 2021 and 2020. Mortgage banking originations and income decreased $206 thousand in the second quarter of 2021 compared to the same period of 2020 due to a reduction in residential refinance mortgage activity.

For the six months ended June 30, noninterest income increased $1.3 million to $6.2 million from $4.9 million in 2020. The primary contributors to the overall increase were the premium on the deposit sale offset partially by a decrease of $542 thousand in gains on the sale of investment securities. Trust commissions and wealth management income increased $131 thousand and $36 thousand which were offset by a $163 thousand decrease in mortgage banking income comparing the six months ended June 30, 2021 and 2020.

Noninterest expense decreased $24.5 million to $9.5 million for the three months ended June 30, 2021, from $34.0 million for the same period last year. The decrease was primarily due to the noncash goodwill impairment charge of $24.8 million recorded in the second quarter of 2020. For the six months ended June 30, noninterest expense decreased to $17.9 million in 2021 compared to $43.2 million for the same period in 2020. In addition to the goodwill impairment charge, noninterest expense decreased in 2021 from implementing efficiency initiatives and selective cost reduction measures.

BALANCE SHEET REVIEW

Total assets, loans, net, and deposits totaled $1.2 billion, $948.7 million, and $1.0 billion, respectively, at June 30, 2021. For the three months ended June 30, 2021, total assets, loans, net and deposits decreased $160.1 million, $143.1 million and $36.4 million, respectively. Loans, net decreased in the second quarter of 2021 as business lending, including commercial and commercial real estate loans, decreased $117.1 million due primarily to SBA forgiveness payments on PPP loans. For this same period, construction lending decreased $22.8 million while retail lending, which includes residential mortgage, home equity and consumer loans, decreased $3.2 million. Total investments decreased $7.8 million in the second quarter of 2021. The reduction in total deposits consisted of decreases in noninterest-bearing deposits of $13.5 million and interest-bearing deposits of $22.9 million. As a percentage of total deposits, noninterest-bearing deposits amounted to 17.6% at June 30, 2021 and 17.1% at December 31, 2020. Long term debt decreased $128.7 million primarily through the repayment of the Federal Reserve Bank’s PPPLF program as PPP loans were forgiven in the second quarter of 2021. For the six months ended June 30, 2021, total assets and loans, net decreased $142.9 million and $190.5 million, respectively, while deposits increased $29.1 million. Total investments increased to $148.0 million at June 30, 2021, compared to $103.7 million at December 31, 2020 as security purchases more than offset payments and prepayments.

Stockholders’ equity totaled $104.4 million, or $11.15 per share, at June 30, 2021 and $97.4 million, or $10.47 per share, at December 31, 2020. The increase in stockholders’ equity for the six months ended June 30, 2021 was due primarily to recognizing earnings partially offset by a change in accumulated other comprehensive income. Tangible stockholders’ equity per common share increased to $10.97 at June 30, 2021, compared to $10.26 at December 31, 2020.

ASSET QUALITY REVIEW

Nonperforming assets were $12.0 million, or 1.26% of loans, net, and foreclosed assets at June 30, 2021, $13.2 million, or 1.20%, at March 31, 2021, and $13.4 million, or 1.15%, at June 30, 2020. All major categories of nonperforming loans decreased in the second quarter of 2021. Nonaccrual loans, accruing troubled debt restructured loans and accruing loans past due 90 days or more decreased $432 thousand, $663 thousand, and $74 thousand, respectively, in the three months ended June 30, 2021. The majority of the $9.3 million balance in accruing troubled debt restructured loans at the end of the second quarter 2020 was due primarily to one commercial real estate relationship. Adjusting for accruing restructured loans, nonperforming assets were $2.7 million, or 0.29% of loans, net and foreclosed assets at June 30, 2021, and $3.2 million, or 0.29%, at March 31, 2021. The allowance for loan losses balance equaled $10.9 million, or 1.15%, of loans, net, and 1.25% excluding 100% SBA guaranteed PPP loan balances outstanding, at June 30, 2021, compared to $12.1 million, or 1.11%, of loans, net, at March 31, 2021. The coverage ratio, the allowance for loan losses as a percentage of nonperforming assets, was 90.7% at June 30, 2021 and 92.3% at March 31, 2021. Loans charged-off, net of recoveries, for the six months ended June 30, 2021 equaled $598 thousand or 0.11% of average loans compared to $1.6 million or 0.33% for the same period last year.

Riverview Financial Corporation is the parent company of Riverview Bank. An independent community bank, Riverview Bank serves the Pennsylvania market areas of Berks, Blair, Bucks, Centre, Clearfield, Dauphin, Huntingdon, Lebanon, Lehigh, Lycoming, Perry and Schuylkill Counties through 23 community banking offices and three limited purpose offices. Each full-service community banking office, interdependent with the community, offers a comprehensive array of financial products and services to individuals, businesses, not-for-profit organizations and government entities. Riverview’s business philosophy includes offering direct access to senior management and other officers and providing friendly, informed and courteous service, local and timely decision making, flexible and reasonable operating procedures and consistently applied credit policies. The Company’s common stock trades on the NASDAQ Global Market under the symbol “RIVE”. The Investor Relations site can be accessed at https://www.riverviewbankpa.com/.

SOURCE: Riverview Financial Corporation

Contact: Scott A. Seasock, CFO at 717.827.4039 or sseasock@riverviewbankpa.com

Safe Harbor Forward-Looking Statements:

We make statements in this press release, and we may from time to time make other statements regarding our outlook or expectations for future financial or operating results and/or other matters regarding or affecting Riverview Financial Corporation, Riverview Bank, and its subsidiaries (collectively, “Riverview”) that may be considered “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “intend” and “potential.” For these statements, Riverview claims the protection of the statutory safe harbors for forward-looking statements.

Riverview cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting Riverview’s operations, pricing, products and services and other factors that may be described in Riverview’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time. Beginning with the first quarter of 2020, the COVID-19 pandemic continues to have an adverse impact on the Company, its customers and the communities it serves. Given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on the Company’s business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be back to normal. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, the Company could be subject to any of the following risks, any of which could have a material, adverse effect on the Company’s business, financial condition, liquidity, and results of operations: the demand for Bank’s products and services may decline, making it difficult to grow assets and income; if the economy is unable to continue to substantially reopen, and higher levels of unemployment persist, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; the Company’s allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect the Company’s net income; the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to the Company; as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on the Company’s assets may decline to a greater extent than the decline in the Company’s cost of interest-bearing liabilities, continue reducing the Company’s net interest margin and spread and net income; the Company’s wealth management revenues may decline with continuing market turmoil; and the Company’s cybersecurity risks are increased as the result of an increase in the number of employees working remotely. The risk factors associated with this event could have a material adverse effect on significant estimates, operations and business results of Riverview. Significant estimates as disclosed in Riverview’s Forms 10-K and 10-Q include allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loan, determination of other-than-temporary impairment losses on securities, impairment of goodwill and intangible assets.

The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, Riverview assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

In addition to evaluating its results of operations in accordance with accounting principles generally accepted in the United States of America (“GAAP”), Riverview routinely presents and supplements its evaluation with an analysis of certain non-GAAP financial measures, such as tangible stockholders’ equity and Core net income ratios. The reported results included in this press release contain items which Riverview considers non-core, namely net gains on sales of investment securities available-for-sale, acquisition related expenses and the adjustment to tax expense due to the enactment of the Tax Act. Riverview presents the non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in Riverview’s results of operation. Presentation of these non-GAAP financial measures is consistent with how Riverview evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in evaluation of companies in Riverview’s industry. Where non-GAAP measures are used in this press release, reconciliations to the comparable GAAP measures are provided in the accompanying tables. The non-GAAP financial measures Riverview uses may differ from similarly titled non-GAAP financial measures of other financial institutions. These non-GAAP financial measures would not be considered a substitute for GAAP basis measures, and Riverview strongly encourages a review of its condensed consolidated financial statements in their entirety. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are presented in the tabular material that follows.

[TABULAR MATERIAL FOLLOWS]

Summary Data

Riverview Financial Corporation

Five Quarter Trend

(In thousands, except per share data)

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)

Riverview Financial Corporation

Consolidated Statements of Income (Loss)

(In thousands, except per share data)

Riverview Financial Corporation

Details of Net Interest and Net Interest Margin

(In thousands, fully taxable equivalent basis)

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands, except per share data)

Riverview Financial Corporation

Consolidated Balance Sheets

(In thousands except per share data)

Riverview Financial Corporation

Asset Quality Data

(In thousands)

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)

Riverview Financial Corporation

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data)