Form 4: Mid Penn Bancorp Director Stephon Reports Acquisition of Shares and Options Following Merger with William Penn Bancorporation

Kenneth John Stephon, Chief Corp Development Officer and Director of Mid Penn Bancorp, reports acquisition of shares and options due to the merger with William Penn Bancorporation.

Summary

• Kenneth John Stephon, a Director and Chief Corp Development Officer of Mid Penn Bancorp Inc. (MPB), filed a Form 4 detailing changes in beneficial ownership.
• The report indicates the acquisition of Mid Penn Bancorp common stock and restricted stock on April 30, 2025, as a result of the merger between Mid Penn Bancorp and William Penn Bancorporation (WMPN).
• Stephon acquired 36,218 shares of common stock, 17,428 shares through a 401(k), 16,357 shares through an IRA, and 4,402 shares through an ESOP.
• He also acquired 32,307 shares of common restricted stock.
• Additionally, stock options were adjusted to reflect the exchange ratio of 0.426 shares of MPB for each share of WMPN.
• The stock options have an exercise price of $27.26 and vest ratably over five years commencing May 17, 2023.
• The merger was effective on April 30, 2025.

Sentiment

Score: 7

Explanation: The document reflects a completed merger, which is generally viewed positively as it can lead to growth and synergies. The executive's increased holdings align his interests with shareholders.

Positives

• The merger with William Penn Bancorporation has increased Kenneth John Stephon's holdings in Mid Penn Bancorp.
• The acquisition of shares through various investment vehicles (401(k), IRA, ESOP) indicates a diversified investment strategy.
• The vesting schedule of the restricted stock and stock options provides a long-term incentive for Stephon.

Future Outlook

The document does not contain explicit forward-looking statements beyond the vesting schedule of the restricted stock and stock options.

Industry Context

This filing reflects the completion of a merger within the banking sector, where consolidation is a common strategy for growth and efficiency. Mergers allow banks to expand their market presence and potentially realize cost synergies.

Comparison to Industry Standards

• The exchange ratio of 0.426 shares of MPB for each share of WMPN is within the typical range observed in bank mergers of similar size.
• The vesting schedule of five years for restricted stock and stock options is a standard practice in executive compensation plans within the financial industry.
• Comparable companies such as Fulton Financial Corporation and Northwest Bancshares have also engaged in mergers and acquisitions to expand their operations.

Stakeholder Impact

• Shareholders of William Penn Bancorporation received Mid Penn Bancorp shares as a result of the merger.
• Employees of both companies may experience changes as a result of the integration.
• Customers of both banks will now be served by the combined entity.

Key Dates

Keywords

Mid Penn Bancorp, William Penn Bancorporation, Merger, Acquisition, Stock Options, Restricted Stock, Beneficial Ownership, Form 4, Stephon, MPB, WMPN