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Other Benefit Plans | 12 Months Ended
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Dec. 31, 2020
Defined Benefit Plans And Other Postretirement Benefit Plans Disclosures [Abstract] |
Other Benefit Plans |
(1 7) | Other Benefit Plans
Mid Penn maintains several benefit plans for both current and former employees of the Bank. Liabilities related to the plans are recorded in other liabilities on the balance sheet, and aggregate cash surrender values assets related to the life insurance plans are recorded in the cash surrender value of life insurance line item on the balance sheet. Significant aspects of the plans are detailed below.
| (a) | 401(k) Plan
The Bank has a 401(k) plan that covers substantially all full-time employees. The plan allows employees to contribute a portion of their salaries and wages to the plan and provides for the Bank to match a portion of employee-elected salary deferrals, subject to certain percentage maximums of their salaries and wages. The Bank’s contribution to the 401(k) Plan was $913,000, $680,000, and $514,000 for the years ending December 31, 2020, 2019, and 2018, respectively and is included as a component of salaries and benefits expense in the Consolidated Statements of Income. During 2018, Mid Penn assumed the 401(k) plans of Scottdale and First Priority. During the year ended December 31, 2020, the First Priority plan was terminated and all remaining assets were either transferred to the Mid Penn 401(k) Plan or distributed to former employee participants. The Scottdale 401(k) Plan continues to be managed by Mid Penn’s human resources and trust areas; however, since the January 2018 Scottdale acquisition, the plan has been frozen resulting in no new participants added and no further contributions being made to the plans for the period subsequent to the acquisition through December 31, 2020.
| (b) | Defined-Contribution Plan
The Bank has a funded contributory defined-contribution plan covering substantially all employees. The Bank did not contribute to the plan in 2020, 2019, or 2018.
| (c) | Deferred Compensation Plans
The Bank has an executive deferred compensation plan, which allows executive officers to defer compensation for a specified period in order to provide future retirement income. The only participant in the plan is a former executive officer. The Bank accrued a liability for the plan of approximately $67,000 at December 31, 2020 and $87,000 at December 31, 2019. The expense related to the plan was $3,000 in 2020, $4,000 in 2019, and $5,000 in 2018 and is included as a component of salaries and benefits expense in the Consolidated Statements of Income. The Bank also has a directors’ deferred compensation plan, which allows directors to defer receipt of director fees for a specified period in order to provide future retirement income. At December 31, 2020 and 2019, the Bank accrued a liability of $1,308,000 and $1,044,000, respectively, for this plan. The expense related to the plan was $42,000 in 2020, $41,000 in 2019, and $31,000 in 2018 and is included as a component of other expense in the Consolidated Statements of Income.
| (d) | Salary Continuation Agreement
The Bank maintains a Salary Continuation Agreement (“Agreement”) for a former executive officer. The Agreement provides the former executive officer with a fixed annual benefit. The benefit is payable beginning at age 65 for a period of 15 years. At December 31, 2020 and 2019, the Bank accrued a liability of approximately $214,000 and $224,000, respectively, for the Agreement. The expense related to the Agreement was $17,000 for 2020, $16,000 for 2019, and $17,000 for 2018 and is included as a component of salaries and benefits expense in the Consolidated Statements of Income. The Bank is the owner and beneficiary of an insurance policy on the life of the participating former executive officer, which supports the funding of the benefit obligation. The aggregate cash surrender value of this policy was approximately $1,422,000 and $1,387,000 at December 31, 2020 and 2019, respectively.
| (e) | Split Dollar Life Insurance Arrangements
At December 31, 2020 and 2019, the Bank had Split Dollar Life Insurance arrangements with two former executives for which the aggregate collateral assignment and cash surrender values are approximately $1,404,000 and $1,396,000, respectively. Mid Penn acquired Phoenix’s Split Dollar Life Insurance arrangements in 2015 on select employees, which had aggregate cash surrender values of $4,174,000 at December 31, 2020 and $4,094,000 at December 31, 2019. Mid Penn acquired First Priority’s Split Dollar Life Insurance arrangements in 2018 on select employees, which had aggregate cash surrender values of $3,516,000 at December 31, 2020 and $3,453,000 at December 31, 2019.
| (f) | Employee Stock Purchase Plan
Mid Penn has an Employee Stock Purchase Plan (“ESPP”) in which all employees are eligible to participate. The plan allows employees to use a portion of their salaries and wages to purchase shares of Mid Penn common stock at the market value of shares at the end of each calendar quarter. A summary of shares purchased and average purchase price for the years ended December 31, 2020, 2019, and 208 is presented below.
|  | 2020 |  |  | 2019 |  |  | 2018 |
ESPP shares purchased |  |  | 8,005 |  |  |  | 5,151 |  |  |  | 4,132 |
Average purchase price per share |  | $ | 19.324 |  |  | $ | 26.015 |  |  | $ | 28.716 |
| (g) | Director Stock Purchase Plan
On May 24, 2017, the Board of Directors of Mid Penn approved the Director Stock Purchase Plan (“DSPP”). The purpose of the DSPP is to provide non-employee directors of Mid Penn with a convenient means to purchase Corporation common stock at fair market value on the last day of each calendar quarter. The plan was effective beginning July 1, 2017. A summary of shares purchased and average purchase price for the years ended December 31, 2020, 2019, and 2018 is presented below.
|  | 2020 |  |  | 2019 |  |  | 2018 |
DSPP shares purchased |  |  | 8,121 |  |  |  | 5,232 |  |  |  | 4,296 |
Average purchase price per share |  | $ | 19.217 |  |  | $ | 25.852 |  |  | $ | 28.940 |
| (h) | Supplemental Executive Retirement Plan
During August 2018, Mid Penn entered into supplemental executive retirement plan agreements (“SERPs”) with four named executive officers. A fifth named executive officer entered into a SERP during May of 2019. Additional SERP agreements were entered into with two other members of the Bank’s executive management team in 2020. Each SERP provides for the monthly payment of a fixed cash benefit over a period of fifteen (15) years, commencing on the first day of the month following the Executive’s separation from service: (i) occurring on or after reaching normal retirement age (age 70); (ii) due to disability; (iii) due to death; or (iv) within two years following a change in control of the Bank. In December 2020, Mid Penn amended the supplemental executive retirement plan agreements to provide solely for a modification of the vesting schedule under the original agreements. Prior to the amendment, one-half of the annual benefit was scheduled to vest on January 1, 2022, with an additional ten percent vesting on each January 1 thereafter until fully vested on January 1, 2027. As amended, the annual benefit will vest ten percent each year, applied retroactively, such that forty percent of each named executive officer’s benefit is vested as of January 1, 2021. All other terms of the supplemental executive retirement plan agreements remain unchanged. Any unvested portion of the benefit fully vests upon a change in control of the Bank. The accrued liability for the supplemental retirement plans was $595,000 at December 31, 2020 and $296,000 as of December 31, 2019. The expense related to the plan was $299,000 in 2020, $223,000 in 2019 and $73,000 in 2018 and is included as a component of salaries and benefits expense in the Consolidated Statements of Income.

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