Mid Penn earnings take hit from acquisition costs; Franklin Financial up big

Two midstate banks reported earnings this week.

Mid Penn Bancorp Inc.

The Millersburg-based bank holding company for Mid Penn Bank reported net income and earnings decreases for the fourth quarter of 2014 but pinned the reason on expenses from acquiring a Schuylkill County bank.

Mid Penn reported fourth-quarter net income of $801,000, down from $1.3 million in the fourth quarter of 2013.

However, the bank said it ran up $573,000 in one-time acquisition expenses. Without those expenses, it would have reported about $1.2 million, still down from 2013’s fourth quarter.

Earnings per common share for the quarter stood at 23 cents, down from 37 cents from the same period in 2013.

Even with the merger charges, net income jumped about 16 percent for the year. The bank reported net income of $5.35 million, of $1.53 per share, compared to $4.6 million, or $1.32 per share, in 2013.

Mid Penn President and CEO Rory G. Ritrievi said it was the biggest yearly earnings in the bank’s 146-year history, and he also announced a 10-cent cash dividend to shareholders.

Mid Penn is in the process of acquiring Phoenix Bancorp Inc., holding company for Miners Bank. The deal is expected to close this quarter.

Mid Penn said it is opening its new branch in Elizabethtown — its first branch in Lancaster County — on Monday.

The company trades on the NASDAQ exchange at MPB and has about $756 million in assets, up from $713 million at the end of 2013.

Franklin Financial Services Corp.

The holding company for F&M Trust posted big earnings this week, reporting a near-62-percent jump in net income for the fourth quarter.

The Chambersuburg-based company reported net income of $1.85 million, or 44 cents per diluted share, for the quarter against $1.14 million and 27 cents per diluted share in the fourth quarter of 2013.

For the year, net income rose from $6.23 million in 2013 to $8.4 million in 2014.

The company also crossed the $1 billion threshold in 2014, reporting assets of $1.001 billion. It also announced a 17-cent cash dividend for shareholders.

Franklin Financial trades on the OTC market under the ticker symbol FRAF.

Michael Sadowski

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