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Loans and Allowance for Loan and Lease Losses (Tables)
 9 Months Ended
Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Type of Loan Portfolio Summarized by the Aggregate Risk Rating
As of September 30, 2022 and December 31, 2021, the types of loans in Mid Penn’s portfolio, summarized using Mid Penn’s internal risk rating system between those rated "pass" (net of deferred fees and costs of $4.0 million as of September 30, 2022 and $6.3 million as of December 31, 2021), which comprise the vast majority of the portfolio, and those classified as "special mention" and "substandard", are as follows:
(Dollars in thousands)PassSpecial
Mention		SubstandardTotal
September 30, 2022
Commercial and industrial$544,077 $10,265 $2,454 $556,796 
Commercial real estate1,907,103 16,126 21,573 1,944,802 
Commercial real estate - construction398,966 — 1,222 400,188 
Residential mortgage290,952 2,529 3,429 296,910 
Home equity114,848 — 760 115,608 
Consumer8,153 — — 8,153 
$3,264,099 $28,920 $29,438 $3,322,457 
(Dollars in thousands)PassSpecial
Mention		SubstandardTotal
December 31, 2021
Commercial and industrial$606,484 $10,321 $2,757 $619,562 
Commercial real estate1,601,196 35,508 31,438 1,668,142 
Commercial real estate - construction371,337 — 1,397 372,734 
Residential mortgage319,862 294 3,067 323,223 
Home equity106,853 534 2,919 110,306 
Consumer10,429 — — 10,429 
$3,016,161 $46,657 $41,578 $3,104,396 
Impaired Loans by Loan Portfolio Class
Impaired loans by loan portfolio class as of September 30, 2022 and December 31, 2021 are summarized as follows:
September 30, 2022December 31, 2021
(Dollars in thousands)Recorded InvestmentUnpaid Principal BalanceRelated AllowanceRecorded InvestmentUnpaid Principal BalanceRelated Allowance
With no related allowance recorded:
Commercial and industrial$— $18 $— $— $31 $— 
Commercial real estate601 1,022 — 854 1,243 — 
Commercial real estate - construction— 4 — 22 27 — 
Residential mortgage1,296 1,369 — 1,259 1,295 — 
Home equity31 31 — 2,377 2,377 — 
With no related allowance recorded and acquired with credit deterioration:
Commercial real estate$1,364 $2,101 $— $2,231 $2,909 $— 
Commercial real estate - construction1,222 1,461 — 1,196 1,469 — 
Residential mortgage1,149 1,708 — 1,362 1,847 — 
Home equity83 104 — 86 111 — 
      
With an allowance recorded:      
Commercial and industrial$1,309 $1,781 $831 $308 $339 $67 
Commercial real estate112 112 28 287 359 121 
Residential mortgage96 96 6 — — — 
Home equity252 252 45 — — — 
Total Impaired Loans:
Commercial and industrial$1,309 $1,799 $831 $308 $370 $67 
Commercial real estate2,077 3,235 28 3,372 4,511 121 
Commercial real estate - construction1,222 1,465 — 1,218 1,496 — 
Residential mortgage2,541 3,173 6 2,621 3,142 — 
Home equity366 387 45 2,463 2,488 — 
Average Recorded Investment Of Impaired Loans And Related Interest Income By Loan Portfolio Class
The average recorded investment of impaired loans and related interest income recognized for the three and nine months ended September 30, 2022 and 2021 are summarized as follows:
Three Months EndedNine Months Ended
September 30, 2022September 30, 2021September 30, 2022September 30, 2021
(Dollars in thousands)Average Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income RecognizedAverage Recorded InvestmentInterest Income Recognized
With no related allowance recorded:
Commercial and industrial$— $— $5 $— $75 $— $379 $— 
Commercial real estate619 — 938 — 920 — 2,671 1 
Commercial real estate - construction— — 23 — 148 — 27 — 
Residential mortgage1,305 6 1,018 6 1,766 17 902 20 
Home equity15 1 2,379 — 769 184 2,364 — 
With no related allowance recorded and acquired with credit deterioration:
Commercial real estate1,384 — 1,368 — 1,777 — 1,383 — 
Commercial real estate - construction1,226 — — — 1,217 — — — 
Residential mortgage1,172 — 281 — 1,253 — 291 — 
Home equity83 — — — 84 — — — 
With an allowance recorded:
Commercial and industrial$1,333 $— $217 $— $1,158 $— $187 $— 
Commercial real estate112 — 1,503 — 112 — 1,192 — 
Residential mortgage96 — — — 70 — — — 
Home equity252 — — — 172 — — — 
Total Impaired Loans:
Commercial and industrial$1,333 $— $222 $— $1,233 $— $566 $— 
Commercial real estate2,115 — 3,809 — 2,809 — 5,246 1 
Commercial real estate - construction1,226 — 23 — 1,365 — 27 — 
Residential mortgage2,573 6 1,299 6 3,089 17 1,193 20 
Home equity350 1 2,379 — 1,025 184 2,364 — 
Non-accrual Loans by Classes of the Loan Portfolio Including Loans Acquired With Credit Deterioration
Nonaccrual loans by loan portfolio class, including loans acquired with credit deterioration, as of September 30, 2022 and December 31, 2021 are summarized as follows:
(Dollars in thousands)September 30, 2022December 31, 2021
Commercial and industrial$1,309 $308 
Commercial real estate2,063 3,372 
Commercial real estate - construction1,222 1,218 
Residential mortgage2,228 2,186 
Home equity411 2,463 
$7,233 $9,547 
Loan Portfolio Summarized by the Past Due Status The classes of the loan portfolio summarized by the past due status as of September 30, 2022 and December 31, 2021 are summarized as follows:
(Dollars in thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable >
90 Days and
Accruing
September 30, 2022
Commercial and industrial$136 $756 $1,121 $2,013 $554,783 $556,796 $633 
Commercial real estate1,274 1,530 258 3,062 1,940,376 1,943,438 — 
Commercial real estate - construction321 — — 321 398,645 398,966 — 
Residential mortgage355 150 434 939 294,822 295,761 — 
Home equity70 — 252 322 115,203 115,525 — 
Consumer12 — — 12 8,141 8,153 — 
Loans acquired with credit deterioration:     
Commercial real estate— — 850 850 514 1,364 — 
Commercial real estate - construction— — — — 1,222 1,222 — 
Residential mortgage73 229 304 606 543 1,149 — 
Home equity— — 32 32 51 83 — 
Total$2,241 $2,665 $3,251 $8,157 $3,314,300 $3,322,457 $633 
(Dollars in thousands)30-59
Days Past
Due		60-89
Days Past
Due		Greater
than 90
Days		Total Past
Due		CurrentTotal LoansLoans
Receivable >
90 Days and
Accruing
December 31, 2021
Commercial and industrial$1,378 $62 $404 $1,844 $617,718 $619,562 $96 
Commercial real estate32 55 769 856 1,665,055 1,665,911 — 
Commercial real estate - construction— — 205 205 371,333 371,538 205 
Residential mortgage1,246 205 1,002 2,453 319,408 321,861 212 
Home equity403 — 2,377 2,780 107,440 110,220 — 
Consumer6 2 2 10 10,419 10,429 2 
Loans acquired with credit deterioration:     
Commercial real estate— 3 1,628 1,631 600 2,231 — 
Commercial real estate - construction— — — — 1,196 1,196 — 
Residential mortgage54 — 818 872 490 1,362 — 
Home equity— — — — 86 86 — 
Total$3,119 $327 $7,205 $10,651 $3,093,745 $3,104,396 $515 
Allowance and Recorded Investment in Financing Receivables
The following tables summarize the allowance and recorded investments in loans receivable.
(Dollars in thousands)
As of, and for the
three months ended,
September 30, 2022		Commercial and industrial Commercial real estateCommercial real estate - construction Residential mortgageHome equityConsumer Unallocated Total
Allowance for loan and lease losses:
Beginning balance,
July 1, 2022$3,671 $11,991 $46 $502 $641 $2 $23 $16,876 
Charge-offs(1)— — (2)(1)(11)— (15)
Recoveries— 63 — — — 6 — 69 
Provisions 879 468 5 73 89 5 31 1,550 
Ending balance,
September 30, 2022$4,549 $12,522 $51 $573 $729 $2 $54 $18,480 
(Dollars in thousands)
As of, and for the
nine months ended,
September 30, 2022		Commercial
and
industrial		Commercial real estateCommercial real estate - construction Residential mortgageHome equityConsumer Unallocated Total
Allowance for loan and lease losses:
Beginning balance,
January 1, 2022$3,439 $9,415 $38 $459 $560 $2 $684 $14,597 
Charge-offs(1)— — (2)(1)(77)— (81)
Recoveries13 128 24 2 2 20 — 189 
Provisions (credits)1,098 2,979 (11)114 168 57 (630)3,775 
Ending balance,
September 30, 20224,549 12,522 51 573 729 2 54 18,480 
Individually evaluated for impairment831 28 — 6 45 — — 910 
Ending balance:
Collectively evaluated for impairment$3,718 $12,494 $51 $567 $684 $2 $54 $17,570 
Loans receivables:
Ending balance$556,796 $1,944,802 $400,188 $296,910 $115,608 $8,153 $— $3,322,457 
Ending balance: individually evaluated for impairment1,309 713 — 1,392 283 — — 3,697 
Ending balance: acquired with credit deterioration— 1,364 1,222 1,149 83 — — 3,818 
Ending balance: collectively evaluated for impairment$555,487 $1,942,725 $398,966 $294,369 $115,242 $8,153 $— $3,314,942 
(Dollars in thousands)
December 31, 2021Commercial
and
industrial		Commercial real estateCommercial real estate - constructionResidential mortgageHome equityConsumerUnallocatedTotal
Allowance for loan and lease losses:
Ending balance$3,439 $9,415 $38 $459 $560 $2 $684 $14,597 
Ending balance: individually evaluated for impairment67 121 — — — — — 188 
Ending balance: collectively evaluated for impairment$3,372 $9,294 $38 $459 $560 $2 $684 $14,409 
Loans receivable:
Ending balance$619,562 $1,668,142 $372,734 $323,223 $110,306 $10,429 $— $3,104,396 
Ending balance: individually evaluated for impairment308 1,141 22 1,259 2,377 — — 5,107 
Ending balance: acquired with credit deterioration— 2,231 1,196 1,362 86 — — 4,875 
Ending balance: collectively evaluated for impairment$619,254 $1,664,770 $371,516 $320,602 $107,843 $10,429 $— $3,094,414 
(Dollars in thousands)
As of, and for the
three months ended,
September 30, 2021		Commercial and industrial Commercial real estateCommercial real estate - construction Residential mortgage Home equityConsumer Unallocated Total
Allowance for loan and lease losses:
Beginning balance,
July 1, 2021$3,165 $9,977 $130 $499 $588 $2 $355 $14,716 
Charge-offs— (1,043)— (3)— (11)— (1,057)
Recoveries1 140 — 2 — 6 — 149 
Provisions (credits)204 (112)3 (8)15 5 318 425 
Ending balance,        
September 30, 2021$3,370 $8,962 $133 $490 $603 $2 $673 $14,233 
(Dollars in thousands)
As of, and for the
nine months ended,
September 30, 2021		Commercial and industrial Commercial real estateCommercial real estate - construction Residential mortgage Home equityConsumer Unallocated Total
Allowance for loan and lease losses:
Beginning balance,
January 1, 20213,066 8,655 134 429 507 1 590 $13,382 
Charge-offs(859)(1,043)(23)(13)— (23)— (1,961)
Recoveries2 206 — 13 — 16 — 237 
Provisions (credits)1,161 1,144 22 61 96 8 83 2,575 
Ending balance,
September 30, 20213,370 8,962 133 490 603 2 673 14,233 
Individually evaluated for impairment69 129 — — — — — 198 
Ending balance:        
collectively evaluated for impairment$3,301 $8,833 $133 $490 $603 $2 $673 $14,035 
Loans receivables:
Ending balance$632,680 $1,141,345 $314,457 $195,636 $78,012 $8,299 $— $2,370,429 
Ending balance: individually evaluated for impairment221 1,214 22 1,276 2,420 — — 5,153 
Ending balance: acquired with credit deterioration— 1,355 — 273 — — — 1,628 
Ending balance: collectively evaluated for impairment$632,459 $1,138,776 $314,435 $194,087 $75,592 $8,299 $— $2,363,648 
Troubled Debt Restructurings
The recorded investments in troubled debt restructured loans at September 30, 2022 and December 31, 2021 are as follows:
(Dollars in thousands)Pre-Modification
Outstanding Recorded Investment		Post-Modification
Outstanding Recorded Investment		Recorded Investment
September 30, 2022
Commercial real estate$851 $815 $120 
Residential mortgage590 590 423 
$1,441 $1,405 $543 
(Dollars in thousands)Pre-Modification
Outstanding Recorded Investment		Post-Modification
Outstanding Recorded Investment		Recorded Investment
December 31, 2021
Commercial and industrial$8 $8 $5 
Commercial real estate1,214 1,115 320 
Commercial real estate - construction40 40 22 
Residential mortgage647 645 472 
$1,909 $1,808 $819 
Schedule of Accretion of Purchased Impaired Loan
The following tables provide activity for the accretable yield of acquired impaired loans from the Phoenix (March 2015), Scottdale (January 2018), First Priority (July 2018), and Riverview (November 2021) acquisitions for the three and nine months ended September 30, 2022 and 2021.
(Dollars in thousands)Three Months Ended September 30,
20222021
Accretable yield, beginning of period$471 $40 
Accretable yield amortized to interest income(64)— 
Accretable yield, end of period$407 $40 
Nine Months Ended September 30,
(Dollars in thousands)20222021
  
Accretable yield, beginning of period$580 $40 
Accretable yield amortized to interest income(173)— 
Accretable yield, end of period$407 $40