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Fair Value Measurements (Tables) | 9 Months Ended
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Sep. 30, 2018
Fair Value Disclosures [Abstract] |
Assets Measured at Fair Value on a Recurring Basis | The following tables illustrate the assets measured at fair value on a recurring basis segregated by hierarchy fair value levels.
|  |  |  |  |  | Fair value measurements at September 30, 2018 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | September 30, 2018 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | $ | 37,950 |  |  | $ | - |  |  | $ | 37,950 |  |  | $ | - |
Mortgage-backed U.S. government agencies |  |  | 40,187 |  |  |  | - |  |  |  | 40,187 |  |  |  | - |
State and political subdivision obligations |  |  | 31,147 |  |  |  | - |  |  |  | 31,147 |  |  |  | - |
Corporate debt securities |  |  | 1,243 |  |  |  | - |  |  |  | 1,243 |  |  |  | - |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 488 |  |  |  | 488 |  |  |  | - |  |  |  | - |
Loans held for sale |  |  | 3,181 |  |  |  | 3,181 |  |  |  | - |  |  |  | - |
Total |  | $ | 114,196 |  |  | $ | 3,669 |  |  | $ | 110,527 |  |  | $ | - |
|  |  |  |  |  | Fair value measurements at December 31, 2017 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2017 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | $ | 38,730 |  |  | $ | - |  |  | $ | 38,730 |  |  | $ | - |
Mortgage-backed U.S. government agencies |  |  | 25,831 |  |  |  | - |  |  |  | 25,831 |  |  |  | - |
State and political subdivision obligations |  |  | 27,043 |  |  |  | - |  |  |  | 27,043 |  |  |  | - |
Corporate debt securities |  |  | 1,355 |  |  |  | - |  |  |  | 1,355 |  |  |  | - |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 506 |  |  |  | 506 |  |  |  | - |  |  |  | - |
Loans held for sale |  |  | 1,040 |  |  |  | 1,040 |  |  |  | - |  |  |  | - |
Total |  | $ | 94,505 |  |  | $ | 1,546 |  |  | $ | 92,959 |  |  | $ | - |
Fair Value Measurements, Nonrecurring | The following tables illustrate the assets measured at fair value on a nonrecurring basis segregated by hierarchy fair value levels.
|  |  |  |  |  | Fair value measurements at September 30, 2018 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | September 30, 2018 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Impaired Loans |  | $ | 4,995 |  |  | $ | - |  |  | $ | - |  |  | $ | 4,995 |
Foreclosed Assets Held for Sale |  |  | 581 |  |  |  | - |  |  |  | - |  |  |  | 581 |
Mortgage Servicing Rights |  |  | 107 |  |  |  | - |  |  |  | - |  |  |  | 107 |
|  |  |  |  |  | Fair value measurements at December 31, 2017 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2017 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Impaired Loans |  | $ | 6,090 |  |  | $ | - |  |  | $ | - |  |  | $ | 6,090 |
Foreclosed Assets Held for Sale |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Mortgage Servicing Rights |  |  | 126 |  |  |  | - |  |  |  | - |  |  |  | 126 |
Fair Value Measurement Inputs and Valuation Techniques | The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Mid Penn has utilized Level 3 inputs to determine the fair value.
(Dollars in thousands) |  | Quantitative Information about Level 3 Fair Value Measurements |
September 30, 2018 |  | Fair Value Estimate |  |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average |
Impaired Loans |  | $ | 4,995 |  |  | Appraisal of collateral (a), (c) |  | Appraisal adjustments (b) |  | 26% - 100% |  | 36% |
Foreclosed Assets Held for Sale |  |  | 581 |  |  | Appraisal of collateral (a), (c) |  | Appraisal adjustments (b) |  | 17% - 17% |  | 17% |
Mortgage Servicing Rights |  |  | 107 |  |  | Multiple of annual service fee |  | Estimated prepayment speed based on rate and term |  | 70% - 100% |  | 99% |
(Dollars in thousands) |  | Quantitative Information about Level 3 Fair Value Measurements |
December 31, 2017 |  | Fair Value Estimate |  |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average |
Impaired Loans |  | $ | 6,090 |  |  | Appraisal of collateral (a), (c) |  | Appraisal adjustments (b) |  | 6% - 51% |  | 28% |
Foreclosed Assets Held for Sale |  |  | - |  |  | Appraisal of collateral (a), (c) |  | Appraisal adjustments (b) |  | 0% - 0% |  | 0% |
Mortgage Servicing Rights |  |  | 126 |  |  | Multiple of annual service fee |  | Estimated prepayment speed based on rate and term |  | 70% - 100% |  | 98% |
| (a) | Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not observable.
| (b) | Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received, or age of the appraisal.
| (c) | Includes qualitative adjustments by management and estimated liquidation expenses.
Fair Value, by Balance Sheet Grouping | The following table summarizes the carrying value and fair value of financial instruments at September 30, 2018 and December 31, 2017.
(Dollars in thousands) | September 30, 2018 |  |  | December 31, 2017 |
| Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
| Value |  |  | Value |  |  | Value |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 62,085 |  |  | $ | 62,085 |  |  | $ | 23,514 |  |  | $ | 23,514 |
Available-for-sale investment securities |  | 110,527 |  |  |  | 110,527 |  |  |  | 93,465 |  |  |  | 93,465 |
Held-to-maturity investment securities |  | 171,521 |  |  |  | 167,120 |  |  |  | 101,356 |  |  |  | 100,483 |
Loans held for sale |  | 3,181 |  |  |  | 3,181 |  |  |  | 1,040 |  |  |  | 1,040 |
Net loans and leases |  | 1,559,057 |  |  |  | 1,551,077 |  |  |  | 902,798 |  |  |  | 917,081 |
Restricted investment in bank stocks |  | 3,373 |  |  |  | 3,373 |  |  |  | 4,384 |  |  |  | 4,384 |
Accrued interest receivable |  | 7,491 |  |  |  | 7,491 |  |  |  | 4,564 |  |  |  | 4,564 |
Mortgage servicing rights |  | 107 |  |  |  | 107 |  |  |  | 126 |  |  |  | 126 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | $ | 1,762,465 |  |  | $ | 1,759,822 |  |  | $ | 1,023,568 |  |  | $ | 1,026,830 |
Short-term borrowings |  | 1,771 |  |  |  | 1,771 |  |  |  | 34,611 |  |  |  | 34,611 |
Long-term debt |  | 18,064 |  |  |  | 15,544 |  |  |  | 12,352 |  |  |  | 11,692 |
Subordinated debt |  | 27,088 |  |  |  | 27,256 |  |  |  | 17,338 |  |  |  | 17,358 |
Accrued interest payable |  | 2,262 |  |  |  | 2,262 |  |  |  | 645 |  |  |  | 645 |
Off-balance sheet financial instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commitments to extend credit | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Financial standby letters of credit |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of September 30, 2018 and December 31, 2017. Carrying values approximate fair values for cash and cash equivalents, interest-bearing time balances with other financial institutions, loans held for sale, restricted investment in bank stocks, mortgage servicing rights, accrued interest receivable and payable, and short-term borrowings. Other than cash and cash equivalents, which are considered Level 1 Inputs and mortgage servicing rights, which are Level 3 Inputs, these instruments are Level 2 Inputs. These tables exclude financial instruments for which the carrying amount approximates fair value, not previously disclosed.
|  |  |  |  |  |  |  |  |  | Fair Value Measurements |
|  |  |  |  |  |  |  |  |  | Quoted Prices |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | in Active Markets |  |  |  |  |  | Significant |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  | for Identical Assets |  |  | Significant Other |  |  | Unobservable |
|  | Carrying |  |  |  |  |  |  | or Liabilities |  |  | Observable Inputs |  |  | Inputs |
September 30, 2018 |  | Amount |  |  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-maturity investment securities |  | $ | 171,521 |  |  | $ | 167,120 |  |  | $ | - |  |  | $ | 167,120 |  |  | $ | - |
Net loans and leases |  |  | 1,559,057 |  |  |  | 1,551,077 |  |  |  | - |  |  |  | - |  |  |  | 1,551,077 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 1,762,465 |  |  | $ | 1,759,822 |  |  | $ | - |  |  | $ | 1,759,822 |  |  | $ | - |
Long-term debt |  |  | 18,064 |  |  |  | 15,544 |  |  |  | - |  |  |  | 15,544 |  |  |  | - |
Subordinated debt |  |  | 27,088 |  |  |  | 27,256 |  |  |  | - |  |  |  | 27,256 |  |  |  | - |
|  |  |  |  |  |  |  |  |  | Fair Value Measurements |
|  |  |  |  |  |  |  |  |  | Quoted Prices |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | in Active Markets |  |  |  |  |  | Significant |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  | for Identical Assets |  |  | Significant Other |  |  | Unobservable |
|  | Carrying |  |  |  |  |  |  | or Liabilities |  |  | Observable Inputs |  |  | Inputs |
December 31, 2017 |  | Amount |  |  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-maturity investment securities |  | $ | 101,356 |  |  | $ | 100,483 |  |  | $ | - |  |  | $ | 100,483 |  |  | $ | - |
Net loans and leases |  |  | 902,798 |  |  |  | 917,081 |  |  |  | - |  |  |  | - |  |  |  | 917,081 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 1,023,568 |  |  | $ | 1,026,830 |  |  | $ | - |  |  | $ | 1,026,830 |  |  | $ | - |
Long-term debt |  |  | 12,352 |  |  |  | 11,692 |  |  |  | - |  |  |  | 11,692 |  |  |  | - |
Subordinated debt |  |  | 17,338 |  |  |  | 17,358 |  |  |  |  |  |  |  | 17,358 |  |  |  |  |

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 + Details
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- Definition Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19190-110258 + Details
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