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Investment Securities
 9 Months Ended
Sep. 30, 2022
Securities Financing Transactions Disclosures [Abstract]  
Investment Securities Investment Securities
The majority of the investment portfolio is comprised of securities issued by U.S. Treasury and government agencies, mortgage-backed U.S. government agencies, and state and political subdivision obligations. The amortized cost, fair value, and unrealized gains and losses on investment securities at September 30, 2022 and December 31, 2021 are as follows:
(Dollars in thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
September 30, 2022
Available-for-sale debt securities:
U.S. Treasury and U.S. government agencies$39,511 $— $1,927 $37,584 
Mortgage-backed U.S. government agencies187,757 — 19,553 168,204 
State and political subdivision obligations4,360 — 986 3,374 
Corporate debt securities35,468 — 2,435 33,033 
Total available-for-sale debt securities267,096 — 24,901 242,195 
Held-to-maturity debt securities:
U.S. Treasury and U.S. government agencies$245,638 $3 $36,102 $209,539 
Mortgage-backed U.S. government agencies52,788 — 7,325 45,463 
State and political subdivision obligations87,724 — 10,951 76,773 
Corporate debt securities15,992 — 1,142 14,850 
Total held-to-maturity debt securities402,142 3 55,520 346,625 
Total$669,238 $3 $80,421 $588,820 
(Dollars in thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
December 31, 2021
Available-for-sale debt securities:
Mortgage-backed U.S. government agencies$49,760 $3 $283 $49,480 
State and political subdivision obligations3,899 26 11 3,914 
Corporate debt securities9,525 — 57 9,468 
Total available-for-sale debt securities63,184 29 351 62,862 
Held-to-maturity debt securities:    
U.S. Treasury and U.S. government agencies$178,136 $26 $1,165 $176,997 
Mortgage-backed U.S. government agencies61,157 440 272 61,325 
State and political subdivision obligations75,958 2,305 27 78,236 
Corporate debt securities14,006 133 71 14,068 
Total held-to-maturity debt securities329,257 2,904 1,535 330,626 
Total$392,441 $2,933 $1,886 $393,488 
Estimated fair values of debt securities are based on quoted market prices, where applicable. If quoted market prices are not available, fair values are based on quoted market prices of instruments of a similar type, credit quality and structure, adjusted for differences between the quoted instruments and the instruments being valued. See "Note 8 - Fair Value Measurement," for additional information.
Investment securities having a fair value of $392.3 million at September 30, 2022 and $244.8 million at December 31, 2021 were pledged to secure public deposits, some Trust department deposit accounts, and certain other borrowings. In accordance with legal provisions for alternatives other than pledging of investments, Mid Penn also obtains letters of credit from the Federal Home Loan Bank of Pittsburgh ("FHLB") to secure certain public deposits. These FHLB letter of credit commitments totaled $265.3 million as of September 30, 2022 and $450.9 million as of December 31, 2021.
The following tables present gross unrealized losses and fair value of debt security investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2022 and December 31, 2021.
(Dollars in thousands)Less Than 12 Months12 Months or MoreTotal
September 30, 2022Number
of
Securities		Fair
Value		Unrealized
Losses		Number
of
Securities		Fair
Value		Unrealized
Losses		Number
of
Securities		Fair
Value		Unrealized
Losses
Available-for-sale debt securities:
U.S. Treasury and U.S. government agencies—$— $— 20$37,584 $1,927 20$37,584 $1,927 
Mortgage-backed U.S. government agencies—— — 91164,216 19,553 91164,216 19,553 
State and political subdivision obligations—— — 83,374 986 83,374 986 
Corporate debt securities32,523 477 1427,260 1,958 1729,783 2,435 
Total temporarily impaired available-for-sale debt securities3$2,523 $477 133$232,434 $24,424 136$234,957 $24,901 
Held-to-maturity debt securities:
U.S. Treasury and U.S. government agencies25$30,523 $7,405 119$177,014 $28,697 144$207,537 $36,102 
Mortgage-backed U.S. government agencies1316 43 6345,147 7,282 6445,463 7,325 
State and political subdivision obligations122,338 535 19474,435 10,416 20676,773 10,951 
Corporate debt securities55,156 844 34,753 298 89,909 1,142 
Total temporarily impaired held-to-maturity debt securities4338,333 8,827 379301,349 46,693 422339,682 55,520 
Total46$40,856 $9,304 512$533,783 $71,117 558$574,639 $80,421 
(Dollars in thousands)Less Than 12 Months12 Months or MoreTotal
December 31, 2021Number
of
Securities		Fair
Value		Unrealized
Losses		Number
of
Securities		Fair
Value		Unrealized
Losses		Number
of
Securities		Fair
Value		Unrealized
Losses
Available-for-sale securities:
U.S. government agencies24$45,476 $283 —$— $— 24$45,476 $283 
State and political subdivision obligations21,168 11 —— — 21,168 11 
Corporate debt securities44,943 57 —— — 44,943 57 
Total temporarily impaired available-for-sale securities30$51,587 $351 —$— $— 30$51,587 $351 
Held-to-maturity securities:
U.S. Treasury and U.S. government agencies91$149,425 $1,165 —$— $— 91$149,425 $1,165 
Mortgage-backed U.S. government agencies2439,995 272 —— — 2439,995 272 
State and political subdivision obligations175,302 25 1255 2 185,557 27 
Corporate debt securities66,928 71 —— — 66,928 71 
Total temporarily impaired held to maturity securities138201,650 1,533 1255 2 139201,905 1,535 
Total168$253,237 $1,884 1$255 $2 169$253,492 $1,886 
Management evaluates securities for other-than-temporary impairment on at least a quarterly basis, and more frequently when economic or market concerns warrant such additional evaluation. Consideration is given to the length of time and the extent to
which the fair value of the security has been less than amortized cost, as well as the overall financial condition of the issuer. In addition, for debt securities, Mid Penn considers (i) whether management has the intent to sell the security, (ii) whether it is more likely than not that management will be required to sell the security prior to its anticipated recovery, and (iii) whether management expects to recover the entire amortized cost basis.
Mid Penn had no securities considered by management to be other-than-temporarily impaired as of September 30, 2022, December 31, 2021, or September 30, 2021, and did not record any securities impairment charges in the respective periods ended on these dates. Mid Penn does not consider the securities with unrealized losses on the respective dates to be other-than-temporarily impaired as the unrealized losses were deemed to be temporary changes in value related to market movements in interest yields at various periods similar to the maturity dates of holdings in the investment portfolio, and not reflective of an erosion of credit quality.
There were no gross realized gains and losses on sales of available-for-sale debt securities for the three and nine months ended September 30, 2022. For the three and nine months ended September 30, 2021 there were realized gains of $79 thousand.
The table below illustrates the maturity distribution of investment securities at amortized cost and fair value as of September 30, 2022.
(Dollars in thousands)Available-for-saleHeld-to-maturity
September 30, 2022Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in 1 year or less$250 $250 $— $— 
Due after 1 year but within 5 years40,013 38,602 73,579 69,250 
Due after 5 years but within 10 years35,017 32,006 232,023 197,794 
Due after 10 years4,059 3,133 43,752 34,118 
79,339 73,991 349,354 301,162 
Mortgage-backed securities187,757 168,204 52,788 45,463 
$267,096 $242,195 $402,142 $346,625