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Investment Securities | 12 Months Ended
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Dec. 31, 2022
Securities Financing Transactions Disclosures [Abstract] |
Investment Securities | Investment Securities The amortized cost and fair value on investment securities as of December 31 are as follows:
(In thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
2022 |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | $ | 36,528 |  |  | $ | — |  |  | $ | 1,614 |  |  | $ | 34,914 |
Mortgage-backed U.S. government agencies | 185,993 |  |  | — |  |  | 19,078 |  |  | 166,915 |
State and political subdivision obligations | 4,354 |  |  | — |  |  | 815 |  |  | 3,539 |
Corporate debt securities | 35,467 |  |  | — |  |  | 2,957 |  |  | 32,510 |
Total available-for-sale debt securities | $ | 262,342 |  |  | $ | — |  |  | $ | 24,464 |  |  | $ | 237,878 |
Held-to-maturity debt securities: |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | $ | 245,671 |  |  | $ | — |  |  | $ | 34,834 |  |  | $ | 210,837 |
Mortgage-backed U.S. government agencies | 50,710 |  |  | — |  |  | 6,676 |  |  | 44,034 |
State and political subdivision obligations | 87,125 |  |  | — |  |  | 8,345 |  |  | 78,780 |
Corporate debt securities | 15,988 |  |  | — |  |  | 1,134 |  |  | 14,854 |
Total held-to-maturity debt securities | 399,494 |  |  | — |  |  | 50,989 |  |  | 348,505 |
Total | $ | 661,836 |  |  | $ | — |  |  | $ | 75,453 |  |  | $ | 586,383 |
(In thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
2021 |  |  |  |  |  |  |
Available-for-sale debt securities: |  |  |  |  |  |  |
Mortgage-backed U.S. government agencies | $ | 49,760 |  |  | $ | 3 |  |  | $ | 283 |  |  | $ | 49,480 |
State and political subdivision obligations | 3,899 |  |  | 26 |  |  | 11 |  |  | 3,914 |
Corporate debt securities | 9,525 |  |  | — |  |  | 57 |  |  | 9,468 |
Total available-for-sale debt securities | $ | 63,184 |  |  | $ | 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 agencies | 61,157 |  |  | 440 |  |  | 272 |  |  | 61,325 |
State and political subdivision obligations | 75,958 |  |  | 2,305 |  |  | 27 |  |  | 78,236 |
Corporate debt securities | 14,006 |  |  | 133 |  |  | 71 |  |  | 14,068 |
Total held-to-maturity debt securities | 329,257 |  |  | 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 comparable instruments, adjusted for differences between the quoted instruments and the instruments being valued. See "Note 13 - Fair Value Measurement", for more information on the fair value of investment securities. Investment securities having a fair value of $338.8 million at December 31, 2022, and $244.8 million at December 31, 2021, were pledged primarily to secure public fund deposits. Mid Penn also obtains letters of credit from the Federal Home Loan Bank of Pittsburgh ("FHLB") to secure certain public fund deposits of municipality and school district customers who agree to use of the FHLB letters of credit. These FHLB letter of credit commitments totaled $189.0 million as of December 31, 2022 and $450.9 million as of December 31, 2021. The following table presents gross unrealized losses and fair value of investments aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2022 and 2021.
(Dollars in thousands) | Less Than 12 Months |  | 12 Months or More |  | Total
December 31, 2022 | Number 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 | 19 |  | $ | 34,914 |  |  | $ | 1,614 |  |  | — |  | $ | — |  |  | $ | — |  |  | 19 |  | $ | 34,914 |  |  | $ | 1,614 |
Mortgage-backed U.S. government agencies | 69 |  | 131,879 |  |  | 11,876 |  |  | 24 |  | 35,036 |  |  | 7,202 |  |  | 93 |  | 166,915 |  |  | 19,078 |
State and political subdivision obligations | 6 |  | 2,521 |  |  | 671 |  |  | 2 |  | 1,018 |  |  | 144 |  |  | 8 |  | 3,539 |  |  | 815 |
Corporate debt securities | 12 |  | 25,063 |  |  | 2,153 |  |  | 4 |  | 4,196 |  |  | 804 |  |  | 16 |  | 29,259 |  |  | 2,957 |
Total available-for-sale debt securities | 106 |  | 194,377 |  |  | 16,314 |  |  | 30 |  | 40,250 |  |  | 8,150 |  |  | 136 |  | 234,627 |  |  | 24,464 |
Held-to-maturity debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | 54 |  | 84,946 |  |  | 10,093 |  |  | 91 |  | 125,891 |  |  | 24,741 |  |  | 145 |  | 210,837 |  |  | 34,834 |
Mortgage-backed U.S. government agencies | 40 |  | 13,866 |  |  | 1,071 |  |  | 24 |  | 30,168 |  |  | 5,605 |  |  | 64 |  | 44,034 |  |  | 6,676 |
State and political subdivision obligations | 185 |  | 73,735 |  |  | 7,413 |  |  | 18 |  | 4,616 |  |  | 932 |  |  | 203 |  | 78,351 |  |  | 8,345 |
Corporate debt securities | 4 |  | 5,721 |  |  | 317 |  |  | 5 |  | 5,182 |  |  | 817 |  |  | 9 |  | 10,903 |  |  | 1,134 |
Total held-to-maturity debt securities | 283 |  | 178,268 |  |  | 18,894 |  |  | 138 |  | 165,857 |  |  | 32,095 |  |  | 421 |  | 344,125 |  |  | 50,989 |
Total | 389 |  | $ | 372,645 |  |  | $ | 35,208 |  |  | 168 |  | $ | 206,107 |  |  | $ | 40,245 |  |  | 557 |  | $ | 578,752 |  |  | $ | 75,453 |
(Dollars in thousands) | Less Than 12 Months |  | 12 Months or More |  | Total
December 31, 2021 | Number 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 agencies | 24 |  | $ | 45,476 |  |  | $ | 283 |  |  | — |  | $ | — |  |  | $ | — |  |  | 24 |  | $ | 45,476 |  |  | $ | 283 |
State and political subdivision obligations | 2 |  | 1,168 |  |  | 11 |  |  | — |  | — |  |  | — |  |  | 2 |  | 1,168 |  |  | 11 |
Corporate debt securities | 4 |  | 4,943 |  |  | 57 |  |  | — |  | — |  |  | — |  |  | 4 |  | 4,943 |  |  | 57 |
Total available-for-sale securities | 30 |  | 51,587 |  |  | 351 |  |  | — |  | — |  |  | — |  |  | 30 |  | 51,587 |  |  | 351 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | 91 |  | 149,425 |  |  | 1,165 |  |  | — |  | — |  |  | — |  |  | 91 |  | 149,425 |  |  | 1,165 |
Mortgage-backed U.S. government agencies | 24 |  | 39,995 |  |  | 272 |  |  | — |  | — |  |  | — |  |  | 24 |  | 39,995 |  |  | 272 |
State and political subdivision obligations | 17 |  | 5,302 |  |  | 25 |  |  | 1 |  | 255 |  |  | 2 |  |  | 18 |  | 5,557 |  |  | 27 |
Corporate debt securities | 6 |  | 6,928 |  |  | 71 |  |  | — |  | — |  |  | — |  |  | 6 |  | 6,928 |  |  | 71 |
Total held to maturity securities | 138 |  | 201,650 |  |  | 1,533 |  |  | 1 |  | 255 |  |  | 2 |  |  | 139 |  | 201,905 |  |  | 1,535 |
Total | 168 |  | $ | 253,237 |  |  | $ | 1,884 |  |  | 1 |  | $ | 255 |  |  | $ | 2 |  |  | 169 |  | $ | 253,492 |  |  | $ | 1,886 |
Management evaluates securities for other-than-temporary impairment at least on quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than cost, and the financial condition and near-term prospects of the issuer. In addition, for debt securities, Mid Penn considers whether management has the intent to sell the security, it is more likely than not that management will be required to sell the security prior to its anticipated recovery, and whether management expects to recover the entire amortized cost basis. For equity securities, management considers the intent and ability to hold securities until recovery of unrealized losses. At December 31, 2022 and 2021, the majority of the unrealized losses on securities in an unrealized loss position were attributable to U.S. Treasury and U.S. government agencies, and mortgage-backed U.S. government agencies. Mid Penn had no securities considered by management to be other-than-temporarily impaired as of December 31, 2022 and December 31, 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. The following table presents information related to gross realized gains and losses on sales of AFS securities:
| For the year ended December 31,
(In thousands) | 2022 |  | 2021 |  | 2020
Gross realized gains | $ | — |  |  | $ | 79 |  |  | $ | 479 |
Gross realized losses | — |  |  | — |  |  | (12) |
Net gains | $ | — |  |  | $ | 79 |  |  | $ | 467 |
The table below illustrates the maturity distribution of investment securities at amortized cost and fair value at December 31, 2022.
(In thousands) | Available-for-sale |  | Held-to-maturity
December 31, 2022 | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due in 1 year or less | $ | 250 |  |  | $ | 250 |  |  | $ | 3,745 |  |  | $ | 3,719 |
Due after 1 year but within 5 years | 41,289 |  |  | 39,865 |  |  | 87,184 |  |  | 81,927 |
Due after 5 years but within 10 years | 31,942 |  |  | 28,555 |  |  | 214,469 |  |  | 183,635 |
Due after 10 years | 2,868 |  |  | 2,293 |  |  | 43,386 |  |  | 35,190 |
| 76,349 |  |  | 70,963 |  |  | 348,784 |  |  | 304,471 |
Mortgage-backed securities | 185,993 |  |  | 166,915 |  |  | 50,710 |  |  | 44,034 |
| $ | 262,342 |  |  | $ | 237,878 |  |  | $ | 399,494 |  |  | $ | 348,505 |

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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