Mid Penn Bancorp (MPB) 8-K Mid Penn Bancorp, Inc. Reports Second Quarter Earnings

Exhibit 99.1

DATE:	July 18, 2008
CONTACT:	Alan W. Dakey President & CEO Mid Penn Bancorp, Inc. 349 Union Street Millersburg, PA 17061 (717) 692-2133

MID PENN BANCORP, INC. REPORTS SECOND QUARTER EARNINGS

(Millersburg, PA) – Mid Penn Bancorp, Inc. (“Mid Penn”) (AMEX: MBP) today reported second quarter earnings of $1,060,000, including per share earnings of $0.30. Earnings for the second quarter of 2007 were $1,179,000 and $0.34 per share. Net income and earnings per share for the first six months of 2008 were $2,233,000 and $0.64 compared to $2,263,000 and $0.65 in the first half of 2007. The modest decrease in earnings resulted from a declining net interest margin, driven by the spreading weakness in the general economy. Mid Penn has also been selectively adding talented employees and enhancing its technological infrastructure to better cope with the changing financial landscape and to continue to offer its customers the tools to meet these challenges.

Banks continue to receive bad publicity in the media while the reality is that most community banks did not participate in sub-prime lending. Mid Penn did not originate sub-prime loans and has not experienced the challenges that have accompanied this form of lending.

Total assets at the end of the second quarter of 2008 were approximately $541 million, versus $492 million the prior year, an increase of 9.9%. Total loans of $401 million increased by $37 million or 10.1% at June 30, 2008, compared to the prior year, while total deposits as of the same date increased $30 million or 7.8% over the prior year. Average earning assets have also shown strong growth, increasing 9.1% to $505 million from June 30, 2007. During the second quarter of 2008, Mid Penn recorded a net loan recovery of $1,000 as compared to $157,000 of net chargeoffs during the same period in 2007. Net chargeoffs for the first six months of 2008 were $22,000 compared to $127,000 in the first half of 2007.

“We remain encouraged by the results achieved by Mid Penn, even in the face of the economic uncertainties we are facing,” commented Alan W. Dakey, President and Chief Executive Officer. “Our growth remains strong, and we remain vigilant in examining the quality of our loan portfolio during these challenging times, even though we had not engaged in any of the sub-prime lending that has plagued many larger financial institutions. This strong growth coupled with the investments we are making in people and technology will position us for a successful 140^th anniversary celebration and into the future.”

Celebrating its 140^th year of serving the community, Mid Penn Bank has been an independently owned community bank since 1868, and is committed to remaining a progressive, independent community bank offering a full line of business, personal and trust services.

Mid Penn Bancorp, Inc., through its subsidiary, Mid Penn Bank, operates 15 offices in Dauphin, Northumberland, Schuylkill, and Cumberland Counties. For more information, visit Mid Penn’s website atwww.midpennbank.com and view the Investor Relations page where comprehensive investor information is available concerning Mid Penn Bancorp, Inc.

This press release contains “forward looking” information as defined by the Private Securities Litigation Reform Act of 1995, which is based on Mid Penn’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business. These statements are not historical facts or guarantees of future performance, events, or results. Such statements involve potential risks and uncertainties and, accordingly, actual performance results may differ materially. Mid Penn undertakes no obligation to publicly update or revise forward looking information, whether as a result of new, updated information, future events, or otherwise.

MID PENN BANCORP, INC.

Selected Financial Information

(Dollars in thousands, except per share data)⁽¹⁾

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Consolidated Summary of Operations:
Interest income	$	7,786		$	7,780		$	15,863		$	15,485
Interest expense		3,639			3,766			7,515			7,493
Net interest income		4,147			4,014			8,348			7,992
Provision for loan losses		155			125			255			200
Net interest income after provision for loan losses		3,992			3,889			8,093			7,792
Non-interest income:
Trust department income		68			75			135			156
Service charges on deposits		437			365			845			732
Investment securities gains (losses), net		—			—			—			—
Income on bank-owned life insurance		65			66			127			135
Mortgage banking activities income		42			21			81			21
Gain on sale of other real estate		—			—			—			—
Other income		289			330			606			650
Total non-interest income		901			857			1,794			1,694
Non-interest expenses:
Salaries and employee benefits		1,794			1,601			3,611			3,324
Occupancy expense, net		239			222			528			438
Equipment expense		203			200			426			418
Pennsylvania Bank Shares tax expense		92			82			184			163
ATM/Debit card expenses		70			62			111			109
Professional fees		156			128			296			240
Director fees and benefits		90			100			168			193
Advertising expense		103			142			182			226
Computer software license and maintenance		111			85			249			234
Stationery and supplies		55			55			127			117
Other operating expenses		560			513			1,035			1,019
Total non-interest expenses		3,473			3,190			6,917			6,481
Income before income taxes		1,420			1,556			2,970			3,005
Income taxes		360			377			737			742
Net income	$	1,060		$	1,179		$	2,233		$	2,263
Consolidated Per Share Data:
Earnings per share	$	0.30		$	0.34		$	0.64		$	0.65
Book value at end of period	$	11.64		$	11.59
Allowance for loan losses to nonperforming assets		87	%		209	%
Net loan chargeoffs (recoveries)	$		(1)	$	157		$	22		$	127
Net interest margin (FTE)		3.47	%		3.53	%		3.54	%		3.68	%
Efficiency ratio(2)		66.39	%		62.68	%		65.01	%		60.05	%
Return on average assets		0.80	%		0.96	%		0.85	%		0.93	%
Return on average stockholders’ equity		10.47	%		12.24	%		11.10	%		11.83	%

MID PENN BANCORP, INC.

Selected Financial Information

(Dollars in thousands, except per share data)⁽¹⁾

Consolidated Balance Sheet Data:

	Three Months Ended June 30,				Six Months Ended June 30,
	2008		2007		2008		2007
Average total loans	$	392,795	$	361,233	$	388,462	$	360,143
Average earning assets		504,741		462,652		499,199		463,120
Average assets		533,967		491,308		528,578		490,872
Average deposits		402,234		375,598		399,454		373,490
Average Stockholders’ equity		40,736		38,649		40,472		38,566
Average diluted shares outstanding		3,484,073		3,496,680		3,486,449		3,502,667
	June 30, 2008		December 31, 2007		June 30, 2007		6/30/2008 vs. 6/30/2007 % Change
Assets	$	540,699	$	509,757	$	492,160		9.9	%
Total loans, net of unearned income		401,110		377,128		364,150		10.1	%
Deposits		402,550		372,817		373,361		7.8	%
Stockholders’ equity		40,518		40,444		38,999		3.9	%
Common shares outstanding		3,479,780		3,489,634		3,494,442		-0.4	%

⁽¹⁾ Per share data reflects stock dividends.

⁽²⁾ The efficiency ratio does not include net securities transactions.