MID PENN BANCORP, INC. (NASDAQ:MPB) Files An 8-K Other Events
ITEM 8.01OTHER EVENTS
On April 17, 2020, Mid Penn Bancorp, Inc. (“Mid Penn” or the “Corporation”) (NASDAQ: MPB), the parent company of Mid Penn Bank, reported that, as part of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act, it had received Paycheck Projection Plan (“PPP”) loan funding approval through the Small Business Administration (“SBA”) for 2,184 business customers totaling $470 million, of which $420 million had already been disbursed to 1,600 business customers through the date of this filing. The remainder of the funding will be disbursed in the near future pending the completion of the related loan documents. The companies that Mid Penn served through these loans employ over 50,000 people, and the protection of the paycheck of those employees was the primary objective of the program. Mid Penn utilized its expertise as both a preferred-provider of SBA lending, and its highly experienced team of commercial lenders and community-based business development officers, to connect with numerous small businesses throughout its market area and provide such businesses with the assistance to apply for and obtain the PPP loans which are to be used primarily for employment-sustaining payroll costs and benefits, as well as other significant costs including the small businesses’ rent, mortgage, and utilities.
The PPP loans, which are 100 percent guaranteed by the SBA, have up to a two-year term to maturity and carry a low interest rate of 1 percent throughout the loan term. The SBA may forgive the PPP loans if at least 75 percent of the proceeds are used for payroll costs. Also, the borrowers will not have to make any payments for six months following the date of disbursement of the loan, though interest will continue to accrue during the deferment period. The SBA also provided Mid Penn Bank and other financial institutions who participated in the PPP with a processing fee on each loan, with the amount of such fee pre-determined by the SBA dependent upon the size of each credit. Based upon the varying sizes of and the total volume of PPP loans originated through Mid Penn Bank, the Corporation expects to realize between $13 and $15 million of processing fees.
SPECIAL CAUTIONARY NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This Current Report on Form 8-K, and oral statements made regarding the subjects of this Current Report on Form 8-K, 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. For a list of factors which could cause results to differ materially from such forward-looking statements, see Mid Penn’s filings with the SEC, including those risk factors identified in the “Risk Factors” section and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2019. The statements in this Current Report on Form 8-K are made as of the date hereof, 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.
ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
99.1 Press release, dated April 17, 2020, of Mid Penn Bancorp, Inc.
MID PENN BANCORP INC Exhibit
EX-99.1 2 mpb-ex991_22.htm EX-99.1 mpb-ex991_22.htm Exhibit 99.1 NEWS RELEASE Contact:Matthew Miller 484-527-4025 [email protected] FOR IMMEDIATE RELEASE Mid Penn Bank Closes $470 Million in Loans for Small Businesses from Paycheck Protection Program MILLERSBURG,…
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About MID PENN BANCORP, INC. (NASDAQ:MPB)
Mid Penn Bancorp, Inc. (Mid Penn) is the bank holding company for Mid Penn Bank (the Bank). The Bank engages in a full-service commercial banking and trust business, providing a range of financial services, including mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, community development loans, loans to non-profit entities and local government loans, and various types of time and demand deposits, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit and individual retirement accounts (IRAs). The Bank provides a range of trust and retail investment services. The Bank also offers other services, such as online banking, telephone banking, cash management services, automated teller services and safe deposit boxes. The Bank has approximately 20 retail banking properties located in Cumberland, Dauphin, Lancaster, Luzerne, Northumberland and Schuylkill Counties in Pennsylvania.
