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Loans and Allowance for Loan and Lease Losses (Tables)

12 Months Ended

Dec. 31, 2020

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

Type of Loan Portfolio Summarized by the Aggregate Risk Rating

The types of loans in Mid Penn’s portfolio, summarized by those rated as “pass” (net of deferred fees and costs of $9,084,000 as of December 31, 2020 and $1,081,000 as of December 31, 2019), and the loans classified as “special mention” and “substandard” within Mid Penn’s internal risk rating system as of December 31, 2020 and December 31, 2019, are as follows:

(Dollars in thousands)

December 31, 2020	Pass		Special Mention		Substandard		Total
Commercial and industrial	$	739,306	$	9,928	$	3,120	$	752,354
Commercial real estate		1,084,123		1,708		13,825		1,099,656
Commercial real estate - construction		248,882		—		31		248,913
Residential mortgage		200,544		53		1,244		201,841
Home equity		71,856		3		2,365		74,224
Consumer		7,053		—		—		7,053
	$	2,351,764	$	11,692	$	20,585	$	2,384,041

(Dollars in thousands)

December 31, 2019	Pass		Special Mention		Substandard		Total
Commercial and industrial	$	326,573	$	9,558	$	3,016	$	339,147
Commercial real estate		913,001		2,426		13,711		929,138
Commercial real estate - construction		181,650		—		40		181,690
Residential mortgage		235,252		55		1,417		236,724
Home equity		68,224		—		47		68,271
Consumer		7,786		—		—		7,786
	$	1,732,486	$	12,039	$	18,231	$	1,762,756

Impaired Loans by Loan Portfolio Class

Impaired loans by loan portfolio class as of December 31, 2020 and 2019 are summarized as follows:

	December 31, 2020						December 31, 2019
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial and industrial	$	899	$	931	$	—	$	890	$	890	$	—
Commercial real estate		8,215		8,574		—		7,973		8,366		—
Commercial real estate - construction		31		34		—		40		61		—
Residential mortgage		818		842		—		817		838		—
Home equity		2,365		2,395		—		25		27		—
Consumer		—		—		—		—		—		—

With no related allowance recorded and acquired with credit deterioration: *
Commercial and industrial	$	—	$	—	$	—	$	3	$	68	$	—
Commercial real estate		1,419		1,693		—		1,423		1,708		—
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		323		568		—		381		578		—
Home equity		—		13		—		1		5		—
Consumer		—		—		—		—		—		—

With an allowance recorded:
Commercial and industrial	$	553	$	574	$	533	$	—	$	—	$	—
Commercial real estate		887		994		274		338		380		166
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		—		—		—		—		—		—
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—


Total:
Commercial and industrial	$	1,452	$	1,505	$	533	$	893	$	958	$	—
Commercial real estate		10,521		11,261		274		9,734		10,454		166
Commercial real estate - construction		31		34		—		40		61		—
Residential mortgage		1,141		1,410		—		1,198		1,416		—
Home equity		2,365		2,408		—		26		32		—
Consumer		—		—		—		—		—		—

Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class

The average recorded investment of impaired loans and related interest income recognized for the years ended December 31, 2020, 2019, and 2018 are summarized as follows:

	December 31, 2020				December 31, 2019				December 31, 2018
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded:
Commercial and industrial	$	1,136	$	—	$	178	$	3	$	—	$	—
Commercial real estate		9,379		5		3,363		20		3,048		3
Commercial real estate - construction		44		—		32		—		—		—
Residential mortgage		998		26		854		30		754		29
Home equity		1,801		—		27		—		101		—
Consumer		—		—		—		—		—		—

With no related allowance recorded and acquired with credit deterioration:
Commercial and industrial	$	1	$	—	$	18	$	—	$	23	$	—
Commercial real estate		1,423		—		1,597		—		1,414		23
Commercial real estate - construction		—		—		—		—		—		—
Residential mortgage		361		—		991		—		832		—
Home equity		1		—		4		—		1		—
Consumer		—		—		—		—		—		—

With an allowance recorded:
Commercial and industrial	$	205	$	—	$	962	$	—	$	4,437	$	—
Commercial real estate		752		—		424		—		541		—
Commercial real estate - construction		—		—		147		—		367		—
Residential mortgage		—		—		—		—		—		—
Home equity		—		—		—		—		—		—
Consumer		—		—		—		—		—		—

Total:
Commercial and industrial	$	1,342	$	—	$	1,158	$	3	$	4,460	$	—
Commercial real estate		11,554		5		5,384		20		5,003		26
Commercial real estate - construction		44		—		179		—		367		—
Residential mortgage		1,359		26		1,845		30		1,586		29
Home equity		1,802		—		31		—		102		—

Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration

Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of December 31, 2020 and 2019 are summarized as follows:

(Dollars in thousands)
	2020		2019
Commercial and industrial	$	1,452	$	894
Commercial real estate		10,520		9,800
Commercial real estate - construction		31		40
Residential mortgage		679		711
Home equity		2,365		26
	$	15,047	$	11,471

Loan Portfolio Summarized by the Past Due Status

The classes of the loan portfolio summarized by the past due status as of December 31, 2020 and 2019 are summarized as follows:

(Dollars in thousands)
December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans		Loans Receivable > 90 Days and Accruing

Commercial and industrial	$	365	$	1,017	$	1,377	$	2,759	$	749,595	$	752,354	$	—
Commercial real estate		1,096		—		7,668		8,764		1,089,473		1,098,237		—
Commercial real estate - construction		—		—		—		—		248,913		248,913		—
Residential mortgage		126		—		282		408		201,110		201,518		—
Home equity		71		22		2,343		2,436		71,788		74,224		—
Consumer		—		6		—		6		7,047		7,053		—
Loans acquired with credit deterioration:
Commercial and industrial		—		—		—		—		—		—		—
Commercial real estate		9		—		1,402		1,411		8		1,419		—
Commercial real estate - construction		—		—		—		—		—		—		—
Residential mortgage		—		—		168		168		155		323		—
Home equity		—		—		—		—		—		—		—
Consumer		—		—		—		—		—		—		—
Total	$	1,667	$	1,045	$	13,240	$	15,952	$	2,368,089	$	2,384,041	$	—

(Dollars in thousands)
December 31, 2019	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans		Loans Receivable > 90 Days and Accruing

Commercial and industrial	$	—	$	1,059	$	890	$	1,949	$	337,195	$	339,144	$	—
Commercial real estate		1,298		11		7,819		9,128		918,587		927,715		—
Commercial real estate - construction		—		—		—		—		181,690		181,690		—
Residential mortgage		145		—		326		471		235,872		236,343		—
Home equity		34		—		—		34		68,236		68,270		—
Consumer		5		3		—		8		7,778		7,786		—
Loans acquired with credit deterioration:
Commercial and industrial		—		—		3		3		—		3		—
Commercial real estate		16		473		934		1,423		—		1,423		—
Commercial real estate - construction		—		—		—		—		—		—		—
Residential mortgage		5		—		203		208		173		381		—
Home equity		—		—		—		—		1		1		—
Consumer		—		—		—		—		—		—		—
Total	$	1,503	$	1,546	$	10,175	$	13,224	$	1,749,532	$	1,762,756	$	—

Allowance for Loan Losses and Recorded Investment in Financing Receivables

Activity in the allowance for loan and lease losses for the years ended December 31, 2020, 2019, and 2018, and the recorded investment in loans receivable as of December 31, 2020, 2019, and 2018 are as follows:

(Dollars in thousands)
Dec. 31, 2020	Commercial and industrial			Commercial real estate			Commercial real estate - construction			Lease Financing		Residential mortgage			Home equity		Consumer			Unallocated		Total
Allowance for loan and lease losses:
Beginning balance	$	2,341		$	6,259		$	51		$	—	$	417		$	442	$	2		$	3	$	9,515
Charge-offs		(45	)		(258	)		(7	)		—		(4	)		—		(58	)		—		(372	)
Recoveries		3			1			2			—		3			3		27			—		39
Provisions		767			2,653			88			—		13			62		30			587		4,200
Ending balance		3,066			8,655			134			—		429			507		1			590		13,382
Ending balance: individually evaluated for impairment		533			274			—			—		—			—		—			—		807
Ending balance: collectively evaluated for impairment	$	2,533		$	8,381		$	134		$	—	$	429		$	507	$	1		$	590	$	12,575

Loans receivable:
Ending balance	$	752,354		$	1,099,656		$	248,913		$	—	$	201,841		$	74,224	$	7,053		$	—	$	2,384,041
Ending balance: individually evaluated for impairment		1,452			9,102			31			—		818			2,365		—			—		13,768
Ending balance: acquired with credit deterioration		—			1,419			—			—		323			—		—			—		1,742
Ending balance: collectively evaluated for impairment	$	750,902		$	1,089,135		$	248,882		$	—	$	200,700		$	71,859	$	7,053		$	—	$	2,368,531

(Dollars in thousands)
Dec. 31, 2019	Commercial and industrial			Commercial real estate			Commercial real estate - construction			Lease Financing		Residential mortgage			Home equity			Consumer			Unallocated			Total
Allowance for loan and lease losses:
Beginning balance	$	2,391		$	4,703		$	75		$	—	$	453		$	528		$	7		$	240		$	8,397
Charge-offs		(217	)		(60	)		(40	)		—		(29	)		(18	)		(64	)		—			(428	)
Recoveries		45			82			—			—		9			5			15			—			156
Provisions		122			1,534			16			—		(16	)		(73	)		44			(237	)		1,390
Ending balance		2,341			6,259			51			—		417			442			2			3			9,515
Ending balance: individually evaluated for impairment		—			166			—			—		—			—			—			—			166
Ending balance: collectively evaluated for impairment	$	2,341		$	6,093		$	51		$	—	$	417		$	442		$	2		$	3		$	9,349

Loans receivable:
Ending balance	$	339,147		$	929,138		$	181,690		$	—	$	236,724		$	68,271		$	7,786		$	—		$	1,762,756
Ending balance: individually evaluated for impairment		890			8,311			40			—		817			25			—			—			10,083
Ending balance: acquired with credit deterioration		3			1,423			—			—		381			1			—			—			1,808
Ending balance: collectively evaluated for impairment	$	338,254		$	919,404		$	181,650		$	—	$	235,526		$	68,245		$	7,786		$	—		$	1,750,865

(Dollars in thousands)
Dec. 31, 2018	Commercial and industrial			Commercial real estate			Commercial real estate - construction			Lease Financing		Residential mortgage			Home equity			Consumer			Unallocated			Total
Allowance for loan and lease losses:
Beginning Balance	$	1,795		$	4,435		$	178		$	—	$	428		$	423		$	3		$	344		$	7,606
Charge-offs		(142	)		(64	)		(40	)		—		(60	)		(185	)		(37	)		—			(528	)
Recoveries		1			808			—			—		—			1			9			—			819
Provisions		737			(476	)		(63	)		—		85			289			32			(104	)		500
Ending balance		2,391			4,703			75			—		453			528			7			240			8,397
Ending balance: individually evaluated for impairment		500			204			38			—		—			—			—			—			742
Ending balance: collectively evaluated for impairment	$	1,891		$	4,499		$	37		$	—	$	453		$	528		$	7		$	240		$	7,655

Loans receivable:
Ending balance	$	286,518		$	861,369		$	142,173		$	53	$	253,543		$	70,096		$	10,315		$	—		$	1,624,067
Ending balance: individually evaluated for impairment		4,527			2,728			367			—		811			30			—			—			8,463
Ending balance: acquired with credit deterioration		28			1,563			—			—		1,208			4			—			—			2,803
Ending balance: collectively evaluated for impairment	$	281,963		$	857,078		$	141,806		$	53	$	251,524		$	70,062		$	10,315		$	—		$	1,612,801

Troubled Debt Restructurings

The recorded investments in troubled debt restructured loans at December 31, 2020 and 2019 are as follows:

(Dollars in thousands)	Pre-Modification		Post-Modification
December 31, 2020	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	$	8	$	8	$	6
Commercial real estate		1,806		1,707		933
Commercial real estate - construction		40		40		31
Residential mortgage		728		725		510
	$	2,582	$	2,480	$	1,480

(Dollars in thousands)	Pre-Modification		Post-Modification
December 31, 2019	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	$	3	$	3	$	3
Commercial real estate		2,562		2,463		1,705
Commercial real estate - construction		40		40		40
Residential mortgage		677		675		490
	$	3,282	$	3,181	$	2,238

Schedule of Troubled Debt Restructurings Modified in the Period

The following table summarizes the loans whose terms have been modified resulting in troubled debt restructurings during the years ended December 31, 2020, 2019, and 2018.

(Dollars in thousands)		Pre-Modification		Post-Modification
December 31, 2020	Number of Contracts	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial real estate	1	$	593	$	593	$	535
Residential mortgage	2		51		51		47
	3	$	644	$	644	$	582

(Dollars in thousands)		Pre-Modification		Post-Modification
December 31, 2019	Number of Contracts	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial and industrial	1	$	3	$	3	$	3
Commercial real estate - construction	1		40		40		40
	2	$	43	$	43	$	43


(Dollars in thousands)		Pre-Modification		Post-Modification
December 31, 2018	Number of Contracts	Outstanding Recorded Investment		Outstanding Recorded Investment		Recorded Investment
Commercial real estate	1	$	270	$	270	$	266
	1	$	270	$	270	$	266

Schedule of Accretion of Purchased Impaired Loan

The following table provides activity for the accretable yield of purchased impaired loans for the years ended December 31, 2020 and 2019.

(Dollars in thousands)
	For the year ended December 31,
	2020			2019
Accretable yield, beginning of period	$	89		$	309
Accretable yield amortized to interest income		(49	)		(220	)
Accretable yield, end of period	$	40		$	89