XML 41 R31.htm IDEA: XBRL DOCUMENT v3.21.1

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 using:
(Dollars in thousands)		Total carrying value at				Quoted prices in active markets				Significant other observable inputs				Significant unobservable inputs
Assets:		March 31, 2021				(Level 1)				(Level 2)				(Level 3)
Available-for-sale securities:
Mortgage-backed U.S. government agencies		$	2			$	—			$	2			$	—
Corporate debt securities			3,248				—				3,248				—
Other assets:
Equity securities			508				508				—				—
Total		$	3,758			$	508			$	3,250			$	—

						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 securities:
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				—
Total		$	6,752			$	515			$	6,237			$	—

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 March 31, 2021 using:
(Dollars in thousands)		Total carrying value at				Quoted prices in active markets				Significant other observable inputs				Significant unobservable inputs
Assets:		March 31, 2021				(Level 1)				(Level 2)				(Level 3)
Impaired Loans		$	897			$	—			$	—			$	897
Foreclosed Assets Held for Sale			77				—				—				77

						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 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

March 31, 2021

Fair Value Estimate

Valuation Technique

Unobservable Input

Range

Weighted Average

Impaired Loans

$

897

Appraisal of collateral (a), (b)

Appraisal adjustments (b)

24% - 100%

39%

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, 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%

(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 March 31, 2021 and December 31, 2020.

(Dollars in thousands)	March 31, 2021								December 31, 2020
	Carrying				Fair				Carrying				Fair
	Value				Value				Value				Value
Financial assets:
Cash and cash equivalents	$	427,371			$	427,371			$	303,724			$	303,724
Available-for-sale investment securities		3,250				3,250				5,748				5,748
Held-to-maturity investment securities		130,560				133,519				128,292				132,794
Equity securities		508				508				515				515
Loans held for sale		25,842				26,434				25,506				26,262
Net loans and leases		2,632,645				2,716,155				2,370,659				2,444,105
Restricted investment in bank stocks		6,860				6,860				7,594				7,594
Accrued interest receivable		11,855				11,855				3,619				3,619
Interest rate swap agreements		—				—				489				489
Financial liabilities:
Deposits	$	2,666,827				2,670,017			$	2,474,580			$	2,496,799
Short-term borrowings		307,753				307,753				125,617				125,617
Long-term debt (a)		71,584				65,776				71,648				70,498
Subordinated debt		44,586				46,784				44,580				43,098
Accrued interest payable		1,902				1,902				2,007				2,007
Interest rate swap agreements		1,185				1,185				—				—

(a) Long-term debt excludes finance lease obligations.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of March 31, 2021 and December 31, 2020.  Carrying values approximate fair values for cash and cash equivalents, restricted investment in bank stocks, accrued interest receivable and payable, and short-term borrowings.  Other than cash and cash equivalents, which are considered Level 1 Inputs and mortgage servicing rights, which are Level 3 Inputs, these instruments are Level 2 Inputs. These tables exclude financial instruments for which the carrying amount approximates fair value, not previously disclosed.

										Fair Value Measurements
										Quoted Prices
										in Active Markets								Significant
(Dollars in thousands)										for Identical Assets				Significant Other				Unobservable
		Carrying								or Liabilities				Observable Inputs				Inputs
March 31, 2021		Amount				Fair Value				(Level 1)				(Level 2)				(Level 3)
Financial instruments - assets
Held-to-maturity investment    securities		$	130,560			$	133,519			$	—			$	133,519			$	—
Loans held for sale			25,842				26,434				—				26,434				—
Net loans and leases			2,632,645				2,716,155				—				—				2,716,155
Financial instruments -    liabilities
Deposits		$	2,666,827			$	2,670,017			$	—			$	2,670,017			$	—
Long-term debt (a)			71,584				65,776				—				65,776				—
Subordinated debt			44,586				46,784				—				46,784				—

										Fair Value Measurements
										Quoted Prices
										in Active Markets								Significant
(Dollars in thousands)										for Identical Assets				Significant Other				Unobservable
		Carrying								or Liabilities				Observable Inputs				Inputs
December 31, 2020		Amount				Fair 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				—

(a) Long-term debt excludes finance lease obligations.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ 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 (bbb)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringAndNonrecurringBasisValuationTechniquesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 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 (bbb)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 3: 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

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=121572278&loc=d3e13467-108611

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

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration