Leases (Tables)

9 Months Ended

Sep. 30, 2021

Summary of Operating and Finance Lease Right-of-Use Assets and Related Lease Liabilities

Below is a summary of the operating and finance lease right-of-use assets and related lease liabilities, as well as the weighted average lease term (in years) and weighted average discount rate for each of the lease classifications as of September 30, 2021 and December 31, 2020.

(Dollars in thousands)	September 30, 2021						December 31, 2020
	Operating Leases			Finance Lease			Operating Leases			Finance Lease
Right of use asset	$	9,942		$	3,132		$	10,157		$	3,267
Lease liability	$	10,950		$	3,402		$	11,200		$	3,467
Weighted average remaining lease term (in years)		7.49			17.42			8.05			18.17
Weighted average discount rate		3.18	%		3.81	%		3.30	%		3.81	%

Summary of Lease Costs

A summary of lease costs during the three and nine months ended September 30, 2021 and 2020 are presented below. Interest expense on finance lease liabilities is included in other interest expense, while all other lease costs are included in occupancy expense on Mid Penn’s Consolidated Statements of Income.

(Dollars in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Finance lease cost:
Amortization of right-of-use asset	$	45		$	45		$	135		$	135
Interest expense on lease liability		33			33			98			100
Total finance lease cost		78			78			233			235
Operating lease cost		475			504			1,502			1,537
Short-term and equipment lease cost		16			10			33			31
Variable lease cost		—			—			—			—
Sublease income		(6	)		(3	)		(21	)		(13	)
Total lease costs	$	563		$	589		$	1,747		$	1,790

Summary of Cash Paid for Amounts Included in Measurement of Lease Liabilities

A summary of cash paid for amounts included in the measurement of lease liabilities is presented below.

(Dollars in thousands)	Nine Months Ended
	September 30, 2021		September 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	98	$	100
Operating cash flows from operating leases		1,566		1,584
Financing cash flows from finance leases		65		62

Summary of Future Minimum Payments for Operating and Finance Leases and Reconciliation of Undiscounted Cash Flows

Future minimum payments for operating and finance leases and a reconciliation of the undiscounted cash flows to the total operating and finance lease liability amounts is presented below.

(Dollars in thousands)	September 30, 2021
	Operating Leases			Finance Lease
Lease payments due for each of the years ending December 31,
2021	$	513		$	54
2022		2,061			217
2023		1,815			217
2024		1,760			252
2025		1,373			259
Thereafter		4,810			3,733
Total undiscounted cash flows		12,332			4,732
Discount on cash flows		(1,382	)		(1,330	)
Total lease liability	$	10,950		$	3,402