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Minersville Safe Deposit Bank and Trust Company to Acquire Tremont Office of Mid Penn Bank

Company Release - 10/6/2004 10:02 AM ET

MILLERSBURG, Pa.--(BUSINESS WIRE)--Oct. 6, 2004--Mid Penn Bancorp, Inc., (AMEX:MBP), the bank holding company of Mid Penn Bank, and Minersville Safe Deposit Bank and Trust Company, a subsidiary of privately held Phoenix Bancorp, Inc., announced today that they have reached a definitive agreement providing for the acquisition by Minersville of the deposits of the Tremont Office of Mid Penn Bank located at 7-9 East Main Street, Tremont, PA. Pending regulatory approvals, the transaction is expected to close on January 28, 2005. Pursuant to the terms of the agreement, Minersville will acquire the deposits of the branch and transfer them to its existing branch located at 29 East Main Street, Tremont. Total deposits of the Mid Penn Bank Tremont Office are approximately $4.6 million. Terms of the transaction were not disclosed.

Robert E. Matta, Executive Vice-President and CEO of Minersville indicated that, "The Minersville Safe Deposit Bank and Trust Company is extremely delighted to add these additional depositors to our existing branch and to our organization. The current customers of our Tremont Office have come to realize that the Minersville Safe Deposit Bank and Trust Company is a local bank which offers friendly service in a personal manner. The acquisition furthers our commitment to our goal of being a leader in local community banking in Schuylkill County."

According to Alan W. Dakey, President and CEO of Mid Penn, "We are pleased that the office will be acquired by Minersville Safe Deposit Bank and Trust Company. We were committed to transferring the depositors to an institution which shares our dedication to community banking and support for the communities we serve. We are confident that Minersville shares that dedication and feel certain the transaction will be positively received by customers, employees, and our shareholders."

Mr. Matta further added, "We offer most, if not all of the products and services which Mid Penn currently offers including residential and commercial loans, internet banking, bank by phone, and an ATM network. Moreover, our plans are to add services for the customers in this area."

Minersville Safe Deposit Bank and Trust Company is a locally owned state banking institution founded in 1935. With the addition of the Tremont Office, Minersville will have total assets in excess of $100 million with seven facilities in Schuylkill County. Minersville Safe Deposit Bank and Trust Company recently announced the construction of a new main office at its facility located on the Pottsville-Minersville Highway.

Mid Penn Bancorp, Inc. has total assets in excess of $400 million. Mid Penn Bank, its wholly-owned subsidiary, with corporate headquarters in Millersburg, Dauphin County, Pennsylvania, has eleven offices in Dauphin, Northumberland, Schuylkill, and Cumberland Counties.

Mid Penn and Minersville will be communicating soon to customers to explain how their banking relationships will continue to be handled following the transfer. Mid Penn will close the existing Tremont Office.

Mr. Matta added, "We will be working together to ensure a smooth transition over the coming months, and the transaction should be virtually seamless to Mid Penn customers. Our track record in respect to the purchase of branches ensures that the customers will receive our Bank with open arms. The customers are not required to take any action at this time."

This press release contains forward-looking statements with respect to the anticipated effects of the transaction. Shareholders and investors should note that many factors could affect the future investment performance and financial results of Mid Penn Bancorp, Inc. and could cause those results to differ materially from those expressed in the forward-looking statements contained in this press release.

    CONTACT: Mid Penn Bancorp, Inc., Millersburg
             Alan W. Dakey, 717-692-2133
              or
             Minersville Safe Deposit Bank and Trust Company
             Robert E. Matta, 570-544-4787

    SOURCE: Mid Penn Bancorp, Inc.