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More banks report positive Q3 earnings

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Mid Penn, Orrstown, F&M Trust, Centric and York Traditions reported third-quarter earnings this past week. Their profits point to a continued good period for banks, fueled by increased commercial lending and rising interest rates .

Click here for updates from Fulton Financial, Codorus Valley Bancorp and ENB Financial.

Mid Penn Bancorp

Net income: $2.25 million, an 18 percent increase over the third quarter of 2016

Deposits: $1.02 billion, a 9.4 percent increase over the third quarter of 2016

Loans: $877 million, a 10.8 percent increase over the third quarter of 2016

Assets: $1.15 billion

Commercial loan growth drove a double-digit increase in net income for Mid Penn Bancorp as its leaders look to wrap up organic and inorganic growth plans they announced earlier in the year.

The Millersburg-based company plans to hold shareholder meetings Nov. 17 to put the final stamp of approval on its $59.1 million purchase of The Scottdale Bank & Trust Co., a banking company based in western Pennsylvania. Mid Penn expects to see its assets exceed $1.3 billion after the merger becomes official.

Mid Penn is also continuing construction of a new branch in Halifax, Dauphin County, with plans to start serving customers there in early 2018.

Orrstown Financial Services Inc.

Net income: $2.8 million, a 100 percent increase over the third quarter of 2016

Deposits: $1.22 billion, a 7.35 percent increase over the third quarter of 2016

Loans: $981.2 million, a 15.8 percent increase over the third quarter of 2016

Assets: $1.53 billion

Orrstown doubled its net income compared to the same quarter of last year, largely because of money it set aside for legal expenses in 2016 as it dealt with an investigation into the way it accounted for bad loans in 2010. The commercial loan growth that has buoyed many local institutions this year also helped Orrstown’s bottom line.

The Shippensburg-based company has extended its geographic footprint over the past year as well, opening its newest branch, in the New Holland area, in late August.

Franklin Financial Services Corp.

Net income: $3.1 million, an increase of 48.2 percent compared to the third quarter of 2016

Deposits: $1.03 billion, an increase of 5.6 percent compared to the third quarter of 2016

Loans: $899.9 million, an increase of 6.1 percent compared to the third quarter of 2016

Assets: $1.2 billion

Franklin Financial Services Corp., the parent company of F&M Trust, continued to see steady year-over-year growth in Q3. Net income was down 8 percent this quarter as compared to the prior quarter, but only because of a large commercial loan that was paid off in Q2.

Franklin Financial has not announced any major branch openings or acquisitions in recent months but did recently expand its investment and trust services team around the Harrisburg area and Cumberland County.

Centric Financial Corp.

Net income: $1.16 million, an increase of 32 percent from the third quarter of 2016

Loans: $468 million, an increase of 17 percent from the third quarter of 2016

Deposits: $463 million, an increase of 15 percent from the third quarter of 2016

Assets: $533 million

Centric Bank centers much of its lending around small businesses, and that strategy is paying off.

The bank continues to be a leader in lending through the U.S. Small Business Administration, currently ranking among the top banks in the state for number of loans made this year through the SBA's 7(a) program. The program lets banks make loans to companies that might not qualify for traditional loans.

York Traditions

Net income: $1.06 million, an increase of 16 percent from the third quarter of 2016

Loans: $340.6 million, an increase of 14.7 percent from the third quarter of 2016

Deposits: $354.8 million, an increase of 12.8 percent from the third quarter of 2016

Assets: $435.5 million

York Traditions saw its best quarter of the year in Q3 thanks to loan growth and strong loan quality.

The York Township-based banking company is also in the process of opening its first branch in downtown York.

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Jennifer Wentz

Jennifer Wentz

Jennifer Wentz covers Lancaster County, York County, financial services, taxation and legal services. Have a tip or question for her? Email her at jwentz@cpbj.com. Follow her on Twitter, @jenni_wentz.

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Deb C. November 8, 2017 7:13 am

It wouldn't have anything to do with President Trump and Republican majority?

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