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Derivative Financial Instruments | 12 Months Ended
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Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments As of December 31, 2022 and 2021, Mid Penn did not designate any derivative financial instruments as formal hedging relationships. Mid Penn’s free-standing derivative financial instruments are required to be carried at their fair value on the Consolidated Balance Sheets. Mortgage Banking Derivative Financial Instruments In connection with its mortgage banking activities, Mid Penn enters into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, Mid Penn enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Loan-level Interest Rate Swaps Mid Penn enters into loan-level interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. Mid Penn simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of the offsetting customer and dealer counterparty swap agreements is that the customer pays a fixed rate of interest and Mid Penn receives a floating rate. Mid Penn’s loan-level interest rate swaps are considered derivatives but are not accounted for using hedge accounting. The notional amount and fair value of derivative financial instruments as of December 31:
| 2022 |  | 2021
(In thousands) | Notional Amount |  | Asset (Liability) Fair Value |  | Notional Amount |  | Asset (Liability) Fair Value
Interest Rate Lock Commitments |  |  |  |  |  |  |
Positive Fair Values | $ | 274 |  |  | $ | 3 |  |  | $ | 13,437 |  |  | $ | 65 |
Negative Fair Values | 5,252 |  |  | (40) |  |  | 2,670 |  |  | (9) |
Forward Commitments |  |  |  |  |  |  |
Positive Fair Values | 4,750 |  |  | 43 |  |  | 5,750 |  |  | 10 |
Negative Fair Values | — |  |  | — |  |  | 6,500 |  |  | (13) |
Interest Rate Swaps with Customers |  |  |  |  |  |  |
Positive Fair Values | 16,650 |  |  | 164 |  |  | 79,814 |  |  | 853 |
Negative Fair Values | 107,145 |  |  | (11,533) |  |  | 29,763 |  |  | (955) |
Interest Rate Swaps with Counterparties |  |  |  |  |  |  |
Positive Fair Values | 107,145 |  |  | 11,533 |  |  | 29,763 |  |  | 955 |
Negative Fair Values | 16,650 |  |  | (164) |  |  | 79,814 |  |  | (853) |
The following table presents derivative financial instruments and the amount of the net gains or losses recognized within other noninterest income on the Consolidated Statements of Income for the years ended December 31:
(In thousands) | 2022 |  | 2021
Interest Rate Lock Commitments | $ | (93) |  |  | $ | 56 |
Forward Commitments | 46 |  |  | 32 |
Total | $ | (47) |  |  | $ | 88 |
The gross amounts of commercial loan swap derivatives, the amounts offset and the carrying values in the Consolidated Balance Sheets, and the collateral pledged to support such agreements are presented below as of December 31:
(In thousands) | 2022 |  | 2021
Interest Rate Swap Contracts - Commercial Loans: |  |  |
Gross amounts recognized | $ | 11,697 |  |  | $ | 102 |
Gross amounts offset | 11,697 |  |  | 102 |
Net Amounts Presented in the Consolidated Balance Sheets | — |  |  | — |
Gross amounts not offset: |  |  |
Cash collateral (1) | 1,600 |  |  | 1,600 |
Net Amounts | $ | 1,600 |  |  | $ | 1,600 |
(1)Included in cash and due from banks on the Consolidated Balance Sheet

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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