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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Net Deferred Tax Asset | Significant components of the Corporation’s net deferred tax asset at December 31, 2020 and 2019 are shown below.
(Dollars in thousands) |  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Allowance for loan and lease losses |  | $ | 2,810 |  |  | $ | 1,998 |
Loan fees |  |  | 1,908 |  |  |  | 227 |
Deferred compensation |  |  | 722 |  |  |  | 581 |
Benefit plans |  |  | 68 |  |  |  | 127 |
Unrealized loss on securities |  |  | — |  |  |  | 34 |
Sale/leaseback adjustment |  |  | — |  |  |  | — |
Lease adjustments |  |  | 219 |  |  |  | 231 |
Business combination adjustments |  |  | 148 |  |  |  | 164 |
Acquired NOL, Section 1231, and charitable contribution carryforwards |  |  | 91 |  |  |  | 862 |
Acquired AMT carryforward |  |  | — |  |  |  | 860 |
Other |  |  | 101 |  |  |  | 114 |
|  |  | 6,067 |  |  |  | 5,198 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation |  |  | (394 | ) |  |  | (717 | )
Bond accretion |  |  | (30 | ) |  |  | (23 | )
Goodwill and intangibles |  |  | (359 | ) |  |  | (354 | )
Prepaid expenses |  |  | (474 | ) |  |  | (405 | )
Business combination adjustments |  |  | (641 | ) |  |  | (240 | )
Benefit plans |  |  | (549 | ) |  |  | (649 | )
Unrealized gain on securities |  |  | (1 | ) |  |  | — |
|  |  | (2,448 | ) |  |  | (2,388 | )
Deferred tax asset, net |  | $ | 3,619 |  |  | $ | 2,810 |
Provision for Income Taxes | The provision for income taxes consists of the following:
(Dollars in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Current tax provision |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 6,340 |  |  | $ | 2,875 |  |  | $ | 812 |
State |  |  | 157 |  |  |  | 185 |  |  |  | — |
Total current tax provision |  |  | 6,497 |  |  |  | 3,060 |  |  |  | 812 |
Deferred tax (benefit) expense |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (1,367 | ) |  |  | 665 |  |  | $ | 1,317 |
State |  |  | — |  |  |  | — |  |  |  | — |
Total deferred tax expense |  | $ | (1,367 | ) |  |  | 665 |  |  |  | 1,317 |
Total provision for income taxes |  | $ | 5,130 |  |  | $ | 3,725 |  |  | $ | 2,129 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal income tax provision at the statutory rate of 21% for 2020, 2019 and 2018 to Mid Penn's actual federal income tax provision at its effective rate is as follows:
(Dollars in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Provision at the expected statutory rate |  | $ | 6,581 |  |  | $ | 4,499 |  |  | $ | 2,672 |
Effect of tax-exempt income |  |  | (499 | ) |  |  | (683 | ) |  |  | (704 | )
Effect of investment in life insurance |  |  | (63 | ) |  |  | (66 | ) |  |  | (60 | )
State income taxes, net of federal tax benefit |  |  | 124 |  |  |  | 146 |  |  |  | — |
Nondeductible interest |  |  | 26 |  |  |  | 59 |  |  |  | 40 |
Low income housing partnership tax credits |  |  | (861 | ) |  |  | (83 | ) |  |  | (168 | )
Nondeductible merger and acquisition expense |  |  | — |  |  |  | — |  |  |  | 193 |
Rate change adjustment |  |  | — |  |  |  | — |  |  |  | — |
Other items |  |  | (178 | ) |  |  | (147 | ) |  |  | 156 |
Provision for income taxes |  | $ | 5,130 |  |  | $ | 3,725 |  |  | $ | 2,129 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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