Mid Penn Bancorp (MPB) completed the acquisition of 1st Colonial Bancorp in Q1 2026 (closed February 27, 2026) and Cumberland Advisors on January 1, 2026, materially expanding the balance sheet. Total assets grew to $6.96B at March 31, 2026 from a prior-period base (December 31, 2025 10-K) of approximately $6.2B. Under a liquidation lens, the recovery posture remains structurally negative to equity: the liability stack is dominated by $5.97B in deposits carried at face value, plus $17.2M in operating lease liabilities, $3.0M in FHLB long-term advances, and $42.5M in other liabilities, for total liabilities of $6.08B at face. Against this, the asset side takes material haircuts. Cash and federal funds sold of $141.2M recover at or near par. The $484.1M AFS securities portfolio carries $15.3M in gross unrealized losses (168 positions) and an $12.7M net unrealized loss position; fair value is close to book but below amortized cost. The $341.0M HTM portfolio has $26.6M in gross unrecognized losses versus only $8K in gains, with fair value of $314.4M against amortized cost of $341.0M — an embedded loss of approximately $26.6M that would crystallize on liquidation. The loan portfolio of $5.51B gross ($5.47B net of ACL of $41.1M) is the dominant asset. Collateral is overwhelmingly real estate: CRE $2.98B (weighted-average LTV 54.2% for the LTV-disclosed subset), residential mortgage $1.35B, construction $453M. Under liquidation assumptions applying standard bank recovery haircuts (roughly 80-90 cents on performing real estate-secured loans, lower on C&I and distressed), the gross recovery on loans is significantly below book. Goodwill of $157.1M and other intangibles of $33.0M recover at zero. BOLI of $116.5M recovers near par. The ACL at $41.1M (0.75% of net loans) is thin relative to nonperforming assets of $38.1M (up 24% QoQ, driven by $7.4M of acquired nonaccruals from 1st Colonial) and nonaccrual loans of $29.6M. Reported shareholders' equity is $887.4M; MFFAIS CLV/LLV/OLV are all cited at $92.5M, reflecting the deep structural deficit once intangibles are zeroed and loan/securities haircuts are applied. The 1st Colonial acquisition added $756.8M in net assets and $747.1M in deposits, increasing balance-sheet scale but also the liability base at face value. Filing discusses acquisition-related costs of $7.7M in MD&A but does not separately tag them in XBRL under a dedicated nonrecurring charge tag.
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