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

Exhibit 99.1

DATE:	October 17, 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 THIRD QUARTER EARNINGS

(Millersburg, PA) – Mid Penn Bancorp, Inc. (“Mid Penn”) (AMEX: MPB) today reported third quarter earnings of $1,122,000, including per share earnings of $0.32. Earnings for the third quarter of 2007 were $1,210,000 or $0.35 per share. Net income and earnings per share for the first nine months of 2008 were $3,355,000 or $0.96 compared to $3,473,000 or $0.99 in the same period of 2007. The modest decrease in earnings resulted from a lower net interest margin and a larger provision for possible loan losses, driven by the spreading weakness in the general economy. Mid Penn has experienced higher levels of non-interest expenses from selectively adding talented employees and enhancing its technological infrastructure to better cope with the changing financial landscape and to expand the tools needed by its customers to meet these challenges.

Total assets at the end of the third quarter of 2008 were approximately $552 million, versus $504 million the prior year, an increase of 9.5%. Total loans of $424 million increased by $52 million or 14.0% at September 30, 2008, compared to the prior year, while total deposits as of the same date increased $56 million or 15.5% over the prior year. Average earning assets showed strong growth, increasing 7.5% to $503 million from September 30, 2007. During the third quarter of 2008, Mid Penn recorded net loan charge-offs of $232,000 as compared to a net recovery of $6,000 during the same period in 2007. Net loan charge-offs for the first nine months of 2008 were $253,000 compared to $121,000 in the same period of 2007.

“As we watch TV or read the newspapers, we are being bombarded with negative messages concerning the state of the economy and the health of financial institutions and the banking system,” commented Alan W. Dakey, President and Chief Executive Officer. “Banks continue to receive bad publicity from the media about engaging in risky forms of lending and investing. Mid Penn did not participate in sub-prime lending or other risky business practices. We’ve maintained our philosophy of decision-making that supports our customers’ financial goals and promotes value for our shareholders.”

Mid Penn Bank continues to exceed the standards set by bank regulators to be considered well capitalized. While many banks have experienced capital deficiencies, Mid Penn was able to establish a new stock buy-back plan in October. Earnings remain strong, with return on average stockholders equity (ROE) for the three and nine-month periods ended September 30, 2008 of 11.10% and 11.09% respectively. Even though the general economic downturn has increased non-performing assets, Mid Penn continues to focus on prudent and tested loan underwriting standards and responsible investing. Mid Penn services a customer base that exhibits good values and is conscientious about repaying loans and is fortunate to operate in a market that has not experienced sharp declines in real estate values.

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. In keeping with this exciting time in Mid

Penn’s history, on or about October 21, 2008, Mid Penn Bancorp will be switching the listing of its common stock from the American Stock Exchange to The NASDAQ Stock Market LLC^®. Mid Penn Bancorp, Inc. will continue to trade under the MPB symbol.

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 September 30,						Nine Months Ended September 30,
	2008			2007			2008			2007
Consolidated Summary of Operations:
Interest income	$	7,986		$	7,950		$	23,849		$	23,434
Interest expense		3,694			3,892			11,210			11,385
Net interest income		4,292			4,058			12,639			12,049
Provision for loan losses		275			175			530			375
Net interest income after provision for loan losses		4,017			3,883			12,109			11,674
Non-interest income:
Trust department income		69			69			204			225
Service charges on deposits		455			386			1,303			1,115
Investment securities gains (losses), net		8			—			8			—
Income on bank-owned life insurance		65			66			192			201
Mortgage banking activities income		32			18			114			109
Other income		369			210			979			803
Total non-interest income		998			749			2,800			2,453
Non-interest expenses:
Salaries and employee benefits		1,832			1,670			5,428			4,982
Occupancy expense, net		227			202			754			640
Equipment expense		208			215			634			633
Pennsylvania Bank Shares tax expense		93			83			277			246
ATM/Debit card expenses		53			38			142			112
Professional fees		220			75			516			318
Director fees and benefits		77			73			245			266
Advertising expense		155			86			337			311
Computer software license and maintenance		135			137			383			372
Stationery and supplies		61			69			188			193
Other operating expenses		464			402			1,544			1,467
Total non-interest expenses		3,525			3,050			10,448			9,540
Income before income taxes		1,490			1,582			4,461			4,587
Income taxes		368			372			1,106			1,114
Net income	$	1,122		$	1,210		$	3,355		$	3,473
Consolidated Per Share Data:
Earnings per share	$	0.32		$	0.35		$	0.96		$	0.99
Book value at end of period	$	11.70		$	11.59
Allowance for loan losses to nonperforming assets		94	%		159	%
Net loan chargeoffs (recoveries)	$	232		$	(6	)	$	253		$	121
Net interest margin (FTE)		3.49	%		3.64	%		3.53	%		3.67	%
Efficiency ratio(2)		64.16	%		60.63	%		64.55	%		62.79	%
Return on average assets		0.82	%		0.97	%		0.84	%		0.94	%
Return on average stockholders’ equity		11.10	%		12.31	%		11.09	%		11.94	%

MID PENN BANCORP, INC.

Selected Financial Information

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

Consolidated Balance Sheet Data:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2008		2007		2008		2007
Average total loans	$	409,962	$	367,963	$	395,681	$	365,627
Average earning assets		511,912		468,163		503,372		467,715
Average assets		541,336		496,939		532,915		496,189
Average deposits		411,800		371,187		403,665		372,180
Average Stockholders’ equity		40,204		38,987		40,427		38,877
Average diluted shares outstanding		3,479,780		3,494,195		3,484,210		3,499,812
	September 30, 2008		December 31, 2007		September 30, 2007		9/30/2008 vs. 9/30/2007 % Change
Assets	$	552,412	$	509,757	$	503,596		9.7	%
Total loans, net of unearned income		424,450		377,128		372,355		14.0	%
Deposits		417,897		372,817		361,944		15.5	%
Stockholders’ equity		40,697		40,444		39,810		2.2	%
Common shares outstanding		3,479,780		3,489,634		3,493,783		-0.4	%

⁽¹⁾ Per share data reflects stock dividends.

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