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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2022
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 June 30, 2022 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | June 30, 2022 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Loans held for sale |  | $ | 9,574 |  |  |  |  |  |  | $ | 9,574 |  |  | $ | — |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  |  | 34,026 |  |  |  | — |  |  |  | 34,026 |  |  |  | — |
Mortgage-backed U.S. government agencies |  |  | 155,433 |  |  |  | — |  |  |  | 155,433 |  |  |  | — |
State and political subdivision obligations |  |  | 3,669 |  |  |  | — |  |  |  | 3,669 |  |  |  | — |
Corporate debt securities |  |  | 25,570 |  |  |  | — |  |  |  | 25,570 |  |  |  | — |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 454 |  |  |  | 454 |  |  |  | — |  |  |  | — |
Interest rate swap agreements |  |  | 8,487 |  |  |  | — |  |  |  | 8,487 |  |  |  |  |
Mortgage banking derivative assets |  |  | 83 |  |  |  | — |  |  |  | 83 |  |  |  | — |
Total |  | $ | 237,296 |  |  | $ | 454 |  |  | $ | 236,842 |  |  | $ | — |
|  |  |  |  |  | Fair value measurements at December 31, 2021 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2021 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Loans held for sale |  | $ | 11,514 |  |  | $ | — |  |  | $ | 11,514 |  |  | $ | — |
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed U.S. government agencies |  |  | 49,480 |  |  |  | — |  |  |  | 49,480 |  |  |  | — |
State and political subdivision obligations |  |  | 3,914 |  |  |  | — |  |  |  | 3,914 |  |  |  | — |
Corporate debt securities |  |  | 9,468 |  |  |  | — |  |  |  | 9,468 |  |  |  | — |
Other assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 500 |  |  |  | 500 |  |  |  | — |  |  |  | — |
Interest rate swap agreements |  |  | 629 |  |  |  | — |  |  |  | 629 |  |  |  | — |
Mortgage banking derivative assets |  |  | 88 |  |  |  | — |  |  |  | 88 |  |  |  | — |
Total |  | $ | 75,593 |  |  | $ | 500 |  |  | $ | 75,093 |  |  | $ | — |
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 June 30, 2022 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | June 30, 2022 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Impaired Loans |  | $ | 1,043 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,043 |
|  |  |  |  |  | Fair value measurements at December 31, 2021 using: |
(Dollars in thousands) |  | Total carrying value at |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
Assets: |  | December 31, 2021 |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Impaired Loans |  | $ | 508 |  |  | $ | — |  |  | $ | — |  |  | $ | 508 |
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) |  |  |
June 30, 2022 |  | Fair Value Estimate |  |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average |
Impaired Loans |  | $ | 1,043 |  |  | Appraisal of collateral (a), (b) |  | Appraisal adjustments (b) |  | 22% - 77% |  | 49% |
(Dollars in thousands) |  |  |
December 31, 2021 |  | Fair Value Estimate |  |  | Valuation Technique |  | Unobservable Input |  | Range |  | Weighted Average |
Impaired Loans |  | $ | 508 |  |  | Appraisal of collateral (a), (b) |  | Appraisal adjustments (b) |  | 21% - 69% |  | 30% |
| (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 June 30, 2022 and December 31, 2021.
(Dollars in thousands) | June 30, 2022 |  |  | December 31, 2021 |
| Carrying |  |  | Fair |  |  | Carrying |  |  | Fair |
| Value |  |  | Value |  |  | Value |  |  | Value |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 236,786 |  |  | $ | 236,786 |  |  | $ | 913,572 |  |  | $ | 913,572 |
Available-for-sale investment securities |  | 218,698 |  |  |  | 218,698 |  |  |  | 62,862 |  |  |  | 62,862 |
Held-to-maturity investment securities |  | 399,032 |  |  |  | 365,288 |  |  |  | 329,257 |  |  |  | 330,626 |
Equity securities |  | 454 |  |  |  | 454 |  |  |  | 500 |  |  |  | 500 |
Loans held for sale |  | 9,574 |  |  |  | 9,574 |  |  |  | 11,514 |  |  |  | 11,787 |
Net loans and leases |  | 3,163,157 |  |  |  | 3,130,912 |  |  |  | 3,089,799 |  |  |  | 3,118,416 |
Restricted investment in bank stocks |  | 4,234 |  |  |  | 4,234 |  |  |  | 9,134 |  |  |  | 9,134 |
Accrued interest receivable |  | 12,902 |  |  |  | 12,902 |  |  |  | 10,779 |  |  |  | 10,779 |
Interest rate swap agreements |  | 8,487 |  |  |  | 8,487 |  |  |  | 629 |  |  |  | 629 |
Mortgage banking derivative assets |  | 83 |  |  |  | 83 |  |  |  | 88 |  |  |  | 88 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits | $ | 3,702,587 |  |  | $ | 3,692,662 |  |  | $ | 4,002,016 |  |  | $ | 4,046,217 |
Long-term debt (a) |  | 1,256 |  |  |  | 317 |  |  |  | 77,890 |  |  |  | 77,455 |
Subordinated debt |  | 73,995 |  |  |  | 70,684 |  |  |  | 74,274 |  |  |  | 74,553 |
Accrued interest payable |  | 1,542 |  |  |  | 1,542 |  |  |  | 1,791 |  |  |  | 1,791 |
Mortgage banking derivative liabilities |  | 124 |  |  |  | 124 |  |  |  | — |  |  |  | — |
| (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 June 30, 2022 and December 31, 2021. 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 |
June 30, 2022 |  | Amount |  |  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-maturity investment securities |  | $ | 399,032 |  |  | $ | 365,288 |  |  | $ | — |  |  | $ | 365,288 |  |  | $ | — |
Net loans and leases |  |  | 3,163,157 |  |  |  | 3,130,912 |  |  |  | — |  |  |  | — |  |  |  | 3,130,912 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 3,702,587 |  |  | $ | 3,692,662 |  |  | $ | — |  |  | $ | 3,692,662 |  |  | $ | — |
Long-term debt (a) |  |  | 1,256 |  |  |  | 317 |  |  |  | — |  |  |  | 317 |  |  |  | — |
Subordinated debt |  |  | 73,995 |  |  |  | 70,684 |  |  |  | — |  |  |  | 70,684 |  |  |  | — |
|  |  |  |  |  |  |  |  |  | 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, 2021 |  | Amount |  |  | Fair Value |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Financial instruments - assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Held-to-maturity investment securities |  | $ | 329,257 |  |  | $ | 330,626 |  |  | $ | — |  |  | $ | 330,626 |  |  | $ | — |
Net loans and leases |  |  | 3,089,799 |  |  |  | 3,118,416 |  |  |  | — |  |  |  | — |  |  |  | 3,118,416 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 4,002,016 |  |  | $ | 4,046,217 |  |  | $ | — |  |  | $ | 4,046,217 |  |  | $ | — |
Long-term debt (a) |  |  | 77,890 |  |  |  | 77,455 |  |  |  | — |  |  |  | 77,455 |  |  |  | — |
Subordinated debt |  |  | 74,274 |  |  |  | 74,553 |  |  |  | — |  |  |  | 74,553 |  |  |  | — |
| (a) | Long-term debt excludes finance lease obligations.

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- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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