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Fair Value Measurements (Tables) | 12 Months Ended
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Dec. 31, 2020
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 December 31, 2020 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2020 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed U.S. government agencies |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | $ | — |
Corporate debt securities |  |  | 5,746 |  |  |  | — |  |  |  | 5,746 |  |  |  | — |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 515 |  |  |  | 515 |  |  |  | — |  |  |  | — |
Interest rate swap agreements |  |  | 489 |  |  |  | — |  |  |  | 489 |  |  |  | — |
|  | $ | 6,752 |  |  | $ | 515 |  |  | $ | 6,237 |  |  | $ | — |
|  |  |  |  |  | Fair value measurements at December 31, 2019 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2019 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government agencies |  | $ | 22,830 |  |  | $ | — |  |  | $ | 22,830 |  |  | $ | — |
Mortgage-backed U.S. government agencies |  |  | 12,890 |  |  |  | — |  |  |  | 12,890 |  |  |  | — |
State and political subdivision obligations |  |  | 30 |  |  |  | — |  |  |  | 30 |  |  |  | — |
Corporate debt securities |  |  | 1,259 |  |  |  | — |  |  |  | 1,259 |  |  |  | — |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 507 |  |  |  | 507 |  |  |  | — |  |  |  | — |
|  | $ | 37,516 |  |  | $ | 507 |  |  | $ | 37,009 |  |  | $ | — |
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 December 31, 2020 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2020 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Impaired Loans |  | $ | 800 |  |  | $ | — |  |  | $ | — |  |  | $ | 800 |
Foreclosed Assets Held for Sale |  |  | 77 |  |  |  | — |  |  |  | — |  |  |  | 77 |
|  |  |  |  |  | Fair value measurements at December 31, 2019 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2019 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Impaired Loans |  | $ | 271 |  |  | $ | — |  |  | $ | — |  |  | $ | 271 |
Foreclosed Assets Held for Sale |  |  | 122 |  |  |  | — |  |  |  | — |  |  |  | 122 |
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 |
December 31, 2020 |  | Fair Value Estimate |  |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average |
Impaired Loans |  | $ | 800 |  |  | Appraisal of collateral (a), (b) |  | Appraisal adjustments (b) |  | 25%-100% |  | 40% |
Foreclosed Assets Held for Sale |  |  | 77 |  |  | Appraisal of collateral (a), (b) |  | Appraisal adjustments (b) |  | 27%-27% |  | 27% |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Quantitative Information about Level 3 Fair Value Measurements |
December 31, 2019 |  | Fair Value Estimate |  |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average |
Impaired Loans |  | $ | 271 |  |  | Appraisal of collateral (a), (b) |  | Appraisal adjustments (b) |  | 26% - 85% |  | 36% |
Foreclosed Assets Held for Sale |  | $ | 122 |  |  | Appraisal of collateral (a), (b) |  | Appraisal adjustments (b) |  | 8% - 27% |  | 16% |
| (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.
Fair Value, by Balance Sheet Grouping | The following table summarizes the carrying value and fair value of financial instruments at December 31, 2020 and 2019.
(Dollars in thousands) |  | December 31, 2020 |  |  | December 31, 2019 |
|  | Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
|  | Value |  |  | Value |  |  | Value |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 303,724 |  |  | $ | 303,724 |  |  | $ | 139,030 |  |  | $ | 139,030 |
Available for sale investment securities |  |  | 5,748 |  |  |  | 5,748 |  |  |  | 37,009 |  |  |  | 37,009 |
Held to maturity investment securities |  |  | 128,292 |  |  |  | 132,794 |  |  |  | 136,477 |  |  |  | 137,476 |
Loans held for sale |  |  | 25,506 |  |  |  | 26,262 |  |  |  | 8,422 |  |  |  | 8,630 |
Equity securities |  |  | 515 |  |  |  | 515 |  |  |  | 507 |  |  |  | 507 |
Net loans and leases |  |  | 2,370,659 |  |  |  | 2,444,105 |  |  |  | 1,753,241 |  |  |  | 1,789,402 |
Restricted investment in bank stocks |  |  | 7,594 |  |  |  | 7,594 |  |  |  | 4,902 |  |  |  | 4,902 |
Accrued interest receivable |  |  | 3,619 |  |  |  | 3,619 |  |  |  | 2,810 |  |  |  | 2,810 |
Interest rate swap agreements |  |  | 489 |  |  |  | 489 |  |  |  | — |  |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 2,474,580 |  |  | $ | 2,496,799 |  |  | $ | 1,912,394 |  |  | $ | 1,916,624 |
Short-term borrowings |  |  | 125,617 |  |  |  | 125,617 |  |  |  | — |  |  |  | — |
Long-term debt (a) |  |  | 71,648 |  |  |  | 70,498 |  |  |  | 29,352 |  |  |  | 30,216 |
Subordinated debt |  |  | 44,580 |  |  |  | 43,098 |  |  |  | 27,070 |  |  |  | 25,273 |
Accrued interest payable |  |  | 2,007 |  |  |  | 2,007 |  |  |  | 2,208 |  |  |  | 2,208 |
| (a) | Long-term debt excludes finance lease obligations.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following presents the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of December 31, 2020 and 2019. Carrying values approximate fair values for cash and cash equivalents, equity securities, restricted investment in bank stocks, accrued interest receivable and payable, interest rate swap agreements and short-term borrowings. Other than cash and cash equivalents, which are considered as valued using Level 1 Inputs, these instruments are valued using Level 2 Inputs. The following tables exclude financial instruments for which the placement in the fair value hierarchy has been disclosed elsewhere or for which the carrying amount approximates fair value.
|  |  |  |  |  |  |  |  |  | Fair Value Measurements |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  | Quoted Prices |  |  | Significant |  |  |  |
|  |  |  |  |  |  |  |  |  | in Active Markets |  |  | Other |  |  | Significant |
|  |  |  |  |  |  |  |  |  | for Identical Assets |  |  | Observable |  |  | Unobservable |
|  | Carrying |  |  | Fair |  |  | or Liabilities |  |  | Inputs |  |  | Inputs |
December 31, 2020 |  | Amount |  |  | Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-maturity investment securities |  | $ | 128,292 |  |  | $ | 132,794 |  |  | $ | — |  |  | $ | 132,794 |  |  | $ | — |
Loans held for sale |  |  | 25,506 |  |  |  | 26,262 |  |  |  | — |  |  |  | 26,262 |  |  |  | — |
Net loans and leases |  |  | 2,370,659 |  |  |  | 2,444,105 |  |  |  | — |  |  |  | — |  |  |  | 2,444,105 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 2,474,580 |  |  | $ | 2,496,799 |  |  | $ | — |  |  | $ | 2,496,799 |  |  | $ | — |
Long-term debt (a) |  |  | 71,648 |  |  |  | 70,498 |  |  |  | — |  |  |  | 70,498 |  |  |  | — |
Subordinated debt |  |  | 44,580 |  |  |  | 43,098 |  |  |  | — |  |  |  | 43,098 |  |  |  | — |
|  |  |  |  |  |  |  |  |  | Fair Value Measurements |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  | Quoted Prices |  |  | Significant |  |  |  |
|  |  |  |  |  |  |  |  |  | in Active Markets |  |  | Other |  |  | Significant |
|  |  |  |  |  |  |  |  |  | for Identical Assets |  |  | Observable |  |  | Unobservable |
|  | Carrying |  |  | Fair |  |  | or Liabilities |  |  | Inputs |  |  | Inputs |
December 31, 2019 |  | Amount |  |  | Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-maturity investment securities |  | $ | 136,477 |  |  | $ | 137,476 |  |  | $ | — |  |  | $ | 137,476 |  |  | $ | — |
Loans held for sale |  |  | 8,422 |  |  |  | 8,630 |  |  |  | — |  |  |  | 8,630 |  |  |  | — |
Net loans and leases |  |  | 1,753,241 |  |  |  | 1,789,402 |  |  |  | — |  |  |  | — |  |  |  | 1,789,402 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 1,912,394 |  |  | $ | 1,916,624 |  |  | $ | — |  |  | $ | 1,916,624 |  |  | $ | — |
Long-term debt |  |  | 29,352 |  |  |  | 30,216 |  |  |  | — |  |  |  | 30,216 |  |  |  | — |
Subordinated debt |  |  | 27,070 |  |  |  | 25,273 |  |  |  | — |  |  |  | 25,273 |  |  |  | — |

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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=117815213&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 (a) -URI http://asc.fasb.org/extlink&oid=117815213&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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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