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Debt | 3 Months Ended
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Mar. 31, 2021
Debt Disclosure [Abstract] |
Debt |
(9) | Debt
Short-term FHLB and Correspondent Bank Borrowings Short-term borrowings generally consist of federal funds purchased and advances from the FHLB with an original maturity of less than a year. Federal funds purchased from correspondent banks mature in one business day and reprice daily based on the Federal Funds rate. Advances from the FHLB are collateralized by Mid Penn’s investment in the common stock of the FHLB and by a blanket lien on selected loan receivables comprised principally of real estate secured loans within the Bank’s portfolio totaling $1,302,960,000 at March 31, 2021. The Bank had short-term borrowing capacity from the FHLB as of March 31, 2021 up to the Bank’s unused borrowing capacity of $571,837,000 (equal to $908,918,000 of maximum borrowing capacity, less letter of credit securing public funds deposits, and other FHLB advances and obligations outstanding) upon satisfaction of any stock purchase requirements of the FHLB. No draws were outstanding on short-term FHLB or correspondent bank borrowings as of March 31, 2021 and December 31, 2020. The Bank also has unused overnight lines of credit with other correspondent banks amounting to $35,000,000 at March 31, 2021. No draws have been made on these lines of credit and accordingly the balance was zero on both March 31, 2021 and December 31, 2020. Short-term PPPLF Borrowings The entire balance of short-term borrowings of $307,753,000 and $125,617,000 at March 31, 2021 and December 31, 2020, respectively, consisted of funding obtained from the Federal Reserve through the Paycheck Protection Program Liquidity Facility (“PPPLF”). The PPPLF allows banks to pledge PPP loans as collateral to borrow funds for up to a term of five years (to match the term of the respective PPP loans) at an interest rate of 0.35%. PPPLF draws must be repaid to the Federal Reserve immediately after the specific PPP loans collateralizing the related draws are repaid to the Bank. Long-term Debt As of March 31, 2021, and December 31, 2020, the Bank had long-term debt outstanding in the amount of $75,030,000 and $75,115,000, respectively, consisting primarily of FHLB fixed rate instruments, as well as one finance lease obligation. As a member of the FHLB, the Bank can access a number of credit products which are utilized to provide liquidity. The FHLB fixed rate instruments obtained by the Bank are secured under the terms of a blanket collateral agreement with the FHLB consisting of FHLB stock and qualifying Mid Penn loan receivables, principally real estate secured loans. Mid Penn also obtains letters of credit from the FHLB to secure certain public fund deposits of municipality and school district customers who agree to use of the FHLB letters of credit as a legally allowable alternative to investment pledging. These FHLB letter of credit commitments totaled $263,800,000 as of March 31, 2021 and $288,950,000 as of December 31, 2020. The following table presents a summary of long-term debt as of March 31, 2021 and December 31, 2020.
(Dollars in thousands) |  | March 31, 2021 |  |  | December 31, 2020 |
FHLB fixed rate instruments: |  |  |  |  |  |  |  |
Due April 2022, 0.86343% |  | $ | 70,000 |  |  | $ | 70,000 |
Due August 2026, 4.80% |  |  | 1,544 |  |  |  | 1,606 |
Due February 2027, 6.71% |  |  | 40 |  |  |  | 42 |
Total FHLB fixed rate instruments |  |  | 71,584 |  |  |  | 71,648 |
Lease obligations included in long-term debt |  |  | 3,446 |  |  |  | 3,467 |
Total long-term debt |  | $ | 75,030 |  |  | $ | 75,115 |
Mid Penn did not prepay any long-term debt instruments during the three months ended March 31, 2021. As part of asset/liability and interest rate risk management strategies, during the first quarter of 2020, Mid Penn prepaid $9,500,000 of FHLB fixed rate instruments originally due at various times in 2020, and recognized prepayment penalties of $63,000 that are included in other expenses for the three months ended March 31, 2020 on the Consolidated Statement of Income.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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