XML 83 R13.htm IDEA: XBRL DOCUMENT
v3.19.3

Investment Securities | 9 Months Ended
--- | ---
Sep. 30, 2019
Securities Financing Transactions Disclosures [Abstract] |
Investment Securities |
(5) | Investment Securities
The majority of the investment portfolio is comprised of securities issued by U.S. government agencies and state and political subdivision obligations. The amortized cost, fair value, and unrealized gains and losses on investment securities at September 30, 2019 and December 31, 2018 are as follows:
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | $ | 32,611 |  |  | $ | 33 |  |  | $ | 111 |  |  | $ | 32,533 |
Mortgage-backed U.S. government agencies |  |  | 16,638 |  |  |  | 8 |  |  |  | 135 |  |  |  | 16,511 |
State and political subdivision obligations |  |  | 1,059 |  |  |  | — |  |  |  | 4 |  |  |  | 1,055 |
Corporate debt securities |  |  | 2,250 |  |  |  | 70 |  |  |  | — |  |  |  | 2,320 |
Total available-for-sale debt securities |  |  | 52,558 |  |  |  | 111 |  |  |  | 250 |  |  |  | 52,419 |
Held-to-maturity debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  |  | 19,421 |  |  |  | 39 |  |  |  | 20 |  |  |  | 19,440 |
Mortgage-backed U.S. government agencies |  |  | 67,472 |  |  |  | 521 |  |  |  | 119 |  |  |  | 67,874 |
State and political subdivision obligations |  |  | 82,051 |  |  |  | 2,820 |  |  |  | — |  |  |  | 84,871 |
Corporate debt securities |  |  | 1,528 |  |  |  | 9 |  |  |  | — |  |  |  | 1,537 |
Total held-to-maturity debt securities |  |  | 170,472 |  |  |  | 3,389 |  |  |  | 139 |  |  |  | 173,722 |
Total |  | $ | 223,030 |  |  | $ | 3,500 |  |  | $ | 389 |  |  | $ | 226,141 |
(Dollars in thousands) |  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair |
|  | Cost |  |  | Gains |  |  | Losses |  |  | Value |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | $ | 43,270 |  |  | $ | 10 |  |  | $ | 1,708 |  |  | $ | 41,572 |
Mortgage-backed U.S. government agencies |  |  | 39,865 |  |  |  | — |  |  |  | 1,016 |  |  |  | 38,849 |
State and political subdivision obligations |  |  | 30,642 |  |  |  | 11 |  |  |  | 1,397 |  |  |  | 29,256 |
Corporate debt securities |  |  | 2,250 |  |  |  | — |  |  |  | 4 |  |  |  | 2,246 |
Total available-for-sale debt securities |  |  | 116,027 |  |  |  | 21 |  |  |  | 4,125 |  |  |  | 111,923 |
Held-to-maturity debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  |  | 16,985 |  |  |  | 14 |  |  |  | 143 |  |  |  | 16,856 |
Mortgage-backed U.S. government agencies |  |  | 65,812 |  |  |  | 46 |  |  |  | 1,310 |  |  |  | 64,548 |
State and political subdivision obligations |  |  | 84,034 |  |  |  | 457 |  |  |  | 842 |  |  |  | 83,649 |
Corporate debt securities |  |  | 1,539 |  |  |  | — |  |  |  | 10 |  |  |  | 1,529 |
Total held-to-maturity debt securities |  |  | 168,370 |  |  |  | 517 |  |  |  | 2,305 |  |  |  | 166,582 |
Total |  | $ | 284,397 |  |  | $ | 538 |  |  | $ | 6,430 |  |  | $ | 278,505 |
Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments, adjusted for differences between the quoted instruments and the instruments being valued. Please refer to Note 9, Fair Value Measurement, for more information on the fair value of investment securities. Investment securities having a fair value of $172,084,000 at September 30, 2019 and $214,239,000 at December 31, 2018 were pledged to secure public deposits, some trust account holdings, and certain other borrowings. Mid Penn also obtains letters of credit from the Federal Home Loan Bank of Pittsburgh (“FHLB”) to secure certain public deposits. These FHLB letter of credit commitments totaled $155,700,000 as of September 30, 2019 and $36,850,000 as of December 31, 2018. The following tables present gross unrealized losses and fair value of debt security investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2019 and December 31, 2018.
(Dollars in thousands) |  | Less Than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Number |  |  |  |  |  |  |  |  |  | Number |  |  |  |  |  |  |  |  |  | Number |  |  |  |  |  |  |  |
|  | of |  | Fair |  |  | Unrealized |  |  | of |  | Fair |  |  | Unrealized |  |  | of |  | Fair |  |  | Unrealized |
September 30, 2019 |  | Securities |  | Value |  |  | Losses |  |  | Securities |  | Value |  |  | Losses |  |  | Securities |  | Value |  |  | Losses |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | 3 |  | $ | 6,988 |  |  | $ | 12 |  |  | 7 |  | $ | 11,940 |  |  | $ | 99 |  |  | 10 |  | $ | 18,928 |  |  | $ | 111 |
Mortgage-backed U.S. government agencies |  | 1 |  |  | 627 |  |  |  | 2 |  |  | 14 |  |  | 11,277 |  |  |  | 133 |  |  | 15 |  |  | 11,904 |  |  |  | 135 |
State and political subdivision obligations |  | 2 |  |  | 1,025 |  |  |  | 4 |  |  | 0 |  |  | — |  |  |  | — |  |  | 2 |  |  | 1,025 |  |  |  | 4 |
Total temporarily impaired available-for-sale debt securities |  | 6 |  | $ | 8,640 |  |  | $ | 18 |  |  | 21 |  | $ | 23,217 |  |  | $ | 232 |  |  | 27 |  | $ | 31,857 |  |  | $ | 250 |
Held-to-maturity debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | 3 |  | $ | 7,447 |  |  | $ | 15 |  |  | 1 |  | $ | 2,994 |  |  | $ | 5 |  |  | 4 |  | $ | 10,441 |  |  | $ | 20 |
Mortgage-backed U.S. government agencies |  | 7 |  |  | 11,239 |  |  |  | 15 |  |  | 15 |  |  | 13,403 |  |  |  | 104 |  |  | 22 |  |  | 24,642 |  |  |  | 119 |
Total temporarily impaired held-to-maturity debt securities |  | 10 |  | $ | 18,686 |  |  | $ | 30 |  |  | 16 |  | $ | 16,397 |  |  | $ | 109 |  |  | 26 |  | $ | 35,083 |  |  | $ | 139 |
Total |  | 16 |  | $ | 27,326 |  |  | $ | 48 |  |  | 37 |  | $ | 39,614 |  |  | $ | 341 |  |  | 53 |  | $ | 66,940 |  |  | $ | 389 |
(Dollars in thousands) |  | Less Than 12 Months |  |  | 12 Months or More |  |  | Total |
|  | Number |  |  |  |  |  |  |  |  |  | Number |  |  |  |  |  |  |  |  |  | Number |  |  |  |  |  |  |  |
|  | of |  | Fair |  |  | Unrealized |  |  | of |  | Fair |  | Unrealized |  |  | of |  | Fair |  |  | Unrealized |
December 31, 2018 |  | Securities |  | Value |  |  | Losses |  |  | Securities |  | Value |  | Losses |  |  | Securities |  | Value |  |  | Losses |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | 0 |  | $ | — |  |  | $ | — |  |  | 21 |  | $ | 38,386 |  |  | $ | 1,708 |  |  | 21 |  | $ | 38,386 |  |  | $ | 1,708 |
Mortgage-backed U.S. government agencies |  | 11 |  |  | 16,740 |  |  |  | 163 |  |  | 19 |  |  | 22,093 |  |  |  | 853 |  |  | 30 |  |  | 38,833 |  |  |  | 1,016 |
State and political subdivision obligations |  | 3 |  |  | 1,751 |  |  |  | 23 |  |  | 51 |  |  | 24,520 |  |  |  | 1,374 |  |  | 54 |  |  | 26,271 |  |  |  | 1,397 |
Corporate debt securities |  | 2 |  |  | 1,996 |  |  |  | 4 |  |  | 0 |  |  | — |  |  |  | — |  |  | 2 |  |  | 1,996 |  |  |  | 4 |
Total temporarily impaired available-for-sale securities |  | 16 |  | $ | 20,487 |  |  | $ | 190 |  |  | 91 |  | $ | 84,999 |  |  | $ | 3,935 |  |  | 107 |  | $ | 105,486 |  |  | $ | 4,125 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | 1 |  | $ | 1,985 |  |  | $ | 10 |  |  | 3 |  | $ | 8,852 |  |  | $ | 133 |  |  | 4 |  | $ | 10,837 |  |  | $ | 143 |
Mortgage-backed U.S. government agencies |  | 10 |  |  | 16,165 |  |  |  | 79 |  |  | 35 |  |  | 42,431 |  |  |  | 1,231 |  |  | 45 |  |  | 58,596 |  |  |  | 1,310 |
State and political subdivision obligations |  | 26 |  |  | 11,321 |  |  |  | 111 |  |  | 77 |  |  | 29,460 |  |  |  | 731 |  |  | 103 |  |  | 40,781 |  |  |  | 842 |
Corporate debt securities |  | 1 |  |  | 1,529 |  |  |  | 10 |  |  | 0 |  |  | — |  |  |  | — |  |  | 1 |  |  | 1,529 |  |  |  | 10 |
Total temporarily impaired held to maturity securities |  | 38 |  | $ | 31,000 |  |  | $ | 210 |  |  | 115 |  | $ | 80,743 |  |  | $ | 2,095 |  |  | 153 |  | $ | 111,743 |  |  | $ | 2,305 |
Total |  | 54 |  | $ | 51,487 |  |  | $ | 400 |  |  | 206 |  | $ | 165,742 |  |  | $ | 6,030 |  |  | 260 |  | $ | 217,229 |  |  | $ | 6,430 |
Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such additional evaluation. Consideration is given to the length of time and the extent to which the fair value of the security has been less than amortized cost, as well as the overall financial condition of the issuer. In addition, for debt securities, Mid Penn considers (a) whether management has the intent to sell the security, (b) it is more likely than not that management will be required to sell the security prior to its anticipated recovery, and (c) whether management expects to recover the entire amortized cost basis. At both September 30, 2019 and December 31, 2018, the majority of available-for-sale securities and held-to-maturity securities in an unrealized loss position were mortgage-backed U.S. government agencies, obligations of state and political subdivisions, and U.S. Treasury and agency securities. Mid Penn had no securities considered by management to be other-than-temporarily impaired as of September 30, 2019, December 31, 2018, or September 30, 2018, and did not record any securities impairment charges in the respective periods ended on these dates. Mid Penn does not consider the securities with unrealized losses on the respective dates to be other-than-temporarily impaired as the unrealized losses were deemed to be temporary changes in value related to market movements in interest yields at various periods similar to the maturity dates of holdings in the investment portfolio, and not reflective of an erosion of credit quality. Gross realized gains and losses on sales of available-for-sale debt securities for the three and nine months ended September 30, 2019 and 2018 are shown in the table below.
(Dollars in thousands) | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
| 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Realized gains |  | $ | 64 |  |  |  | $ | 30 |  |  |  | $ | 133 |  |  |  | $ | 141 |
Realized losses |  |  | (18 | ) |  |  |  | — |  |  |  |  | (63 | ) |  |  |  | (9 | )
Net gains |  | $ | 46 |  |  |  | $ | 30 |  |  |  | $ | 70 |  |  |  | $ | 132 |
The table below illustrates the maturity distribution of investment securities at amortized cost and fair value as of September 30, 2019.
(Dollars in thousands) |  | Available-for-sale |  |  | Held-to-maturity |
|  | Amortized |  |  | Fair |  |  | Amortized |  |  | Fair |
September 30, 2019 |  | Cost |  |  | Value |  |  | Cost |  |  | Value |
Due in 1 year or less |  | $ | — |  |  | $ | — |  |  | $ | 3,990 |  |  | $ | 3,992 |
Due after 1 year but within 5 years |  |  | 19,457 |  |  |  | 19,403 |  |  |  | 19,663 |  |  |  | 19,926 |
Due after 5 years but within 10 years |  |  | 16,463 |  |  |  | 16,505 |  |  |  | 79,347 |  |  |  | 81,930 |
Due after 10 years |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 35,920 |  |  |  | 35,908 |  |  |  | 103,000 |  |  |  | 105,848 |
Mortgage-backed securities |  |  | 16,638 |  |  |  | 16,511 |  |  |  | 67,472 |  |  |  | 67,874 |
|  | $ | 52,558 |  |  | $ | 52,419 |  |  | $ | 170,472 |  |  | $ | 173,722 |

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SecuritiesFinancingTransactionsDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration