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Investment Securities | 3 Months Ended
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Mar. 31, 2025
Securities Financing Transactions Disclosures [Abstract] |
Investment Securities | Investment Securities AFS Securities At March 31, 2025, the fair value of AFS securities totaled $258.5 million. At March 31, 2025, no securities were identified that violated credit loss triggers; therefore, no DCF analysis was performed, and no credit loss was recognized on any of the securities available for sale. Accrued interest receivable is excluded from the estimate of credit losses for AFS securities. At March 31, 2025, accrued interest receivable totaled $1.1 million for AFS securities, and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. HTM Securities At March 31, 2025, Mid Penn’s HTM securities totaled $375.1 million. The Company primarily held highly rated HTM securities, including taxable and tax-exempt securities issued mainly by the U.S government, state governments, and political subdivisions. As of March 31, 2025, the majority of Mid Penn's HTM securities were rated as A1/BBB by Moody's and/or Standard & Poor's ratings services. Credit ratings of HTM securities, which are a key factor in estimating expected credit losses, are reviewed on a quarterly basis. At March 31, 2025, Mid Penn had no HTM securities that were past due 30 days or more as to principal or interest payments. Mid Penn had no HTM securities classified as nonaccrual at March 31, 2025. Therefore, no allowance for credit losses was recorded as of March 31, 2025. Accrued interest receivable is excluded from the estimate of credit losses for HTM securities. At March 31, 2025, accrued interest receivable totaled $2.2 million for HTM securities and was reported in accrued interest receivable on the accompanying Consolidated Balance Sheet. The following tables set forth the amortized cost and estimated fair value of investment securities for the periods presented:
| March 31, 2025
(In thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available-for-sale |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | $ | 22,273 |  |  | $ | — |  |  | $ | 516 |  |  | $ | 21,757 |
Mortgage-backed U.S. government agencies | 215,826 |  |  | 289 |  |  | 16,008 |  |  | 200,107 |
State and political subdivision obligations | 4,305 |  |  | — |  |  | 710 |  |  | 3,595 |
Corporate debt securities | 35,754 |  |  | 35 |  |  | 2,755 |  |  | 33,034 |
Total available-for-sale debt securities | 278,158 |  |  | 324 |  |  | 19,989 |  |  | 258,493 |
Held-to-maturity |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | $ | 237,976 |  |  | $ | — |  |  | $ | 22,952 |  |  | $ | 215,024 |
Mortgage-backed U.S. government agencies | 36,275 |  |  | 1 |  |  | 4,703 |  |  | 31,573 |
State and political subdivision obligations | 75,418 |  |  | — |  |  | 6,633 |  |  | 68,785 |
Corporate debt securities | 25,446 |  |  | — |  |  | 1,120 |  |  | 24,326 |
Total held-to-maturity debt securities | 375,115 |  |  | 1 |  |  | 35,408 |  |  | 339,708 |
Total | $ | 653,273 |  |  | $ | 325 |  |  | $ | 55,397 |  |  | $ | 598,201 |
| December 31, 2024
(In thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available-for-sale |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | $ | 22,247 |  |  | $ | — |  |  | $ | 740 |  |  | $ | 21,507 |
Mortgage-backed U.S. government agencies | 222,464 |  |  | 11 |  |  | 19,531 |  |  | 202,944 |
State and political subdivision obligations | 4,309 |  |  | — |  |  | 713 |  |  | 3,596 |
Corporate debt securities | 35,750 |  |  | — |  |  | 3,320 |  |  | 32,430 |
Total available-for-sale debt securities | $ | 284,770 |  |  | $ | 11 |  |  | $ | 24,304 |  |  | $ | 260,477 |
Held-to-maturity |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | $ | 241,941 |  |  | $ | — |  |  | $ | 28,133 |  |  | $ | 213,808 |
Mortgage-backed U.S. government agencies | 37,593 |  |  | — |  |  | 5,508 |  |  | 32,085 |
State and political subdivision obligations | 77,462 |  |  | — |  |  | 6,840 |  |  | 70,622 |
Corporate debt securities | 25,451 |  |  | — |  |  | 1,318 |  |  | 24,133 |
Total held-to-maturity debt securities | 382,447 |  |  | — |  |  | 41,799 |  |  | 340,648 |
Total | $ | 667,217 |  |  | $ | 11 |  |  | $ | 66,103 |  |  | $ | 601,125 |
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 $429.4 million at March 31, 2025 and $440.0 million at December 31, 2024 were pledged primarily 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 FHLB to secure certain public deposits. These FHLB letter of credit commitments totaled $113.0 million as of March 31, 2025 and $156.0 million as of December 31, 2024. The following tables present gross unrealized losses and fair value of debt investment securities aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for the periods presented:
(Dollars in thousands) | Less Than 12 Months |  | 12 Months or More |  | Total
March 31, 2025 | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | — |  | $ | — |  |  | $ | — |  |  | 12 |  | $ | 21,757 |  |  | $ | 516 |  |  | 12 |  | $ | 21,757 |  |  | $ | 516 |
Mortgage-backed U.S. government agencies | 10 |  | 74,099 |  |  | 1,141 |  |  | 90 |  | 126,008 |  |  | 14,867 |  |  | 100 |  | 200,107 |  |  | 16,008 |
State and political subdivision obligations | — |  | — |  |  | — |  |  | 8 |  | 3,595 |  |  | 710 |  |  | 8 |  | 3,595 |  |  | 710 |
Corporate debt securities | 1 |  | 3,955 |  |  | — |  |  | 17 |  | 29,079 |  |  | 2,755 |  |  | 18 |  | 33,034 |  |  | 2,755 |
Total available-for-sale debt securities | 11 |  | $ | 78,054 |  |  | $ | 1,141 |  |  | 127 |  | $ | 180,439 |  |  | $ | 18,848 |  |  | 138 |  | $ | 258,493 |  |  | $ | 19,989 |
Held-to-maturity debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | — |  | — |  |  | — |  |  | 141 |  | 215,024 |  |  | 22,952 |  |  | 141 |  | 215,024 |  |  | 22,952 |
Mortgage-backed U.S. government agencies | 3 |  | 302 |  |  | — |  |  | 61 |  | 31,271 |  |  | 4,703 |  |  | 64 |  | 31,573 |  |  | 4,703 |
State and political subdivision obligations | 9 |  | 3,734 |  |  | 23 |  |  | 163 |  | 65,051 |  |  | 6,610 |  |  | 172 |  | 68,785 |  |  | 6,633 |
Corporate debt securities | 4 |  | 10,500 |  |  | — |  |  | 11 |  | 13,826 |  |  | 1,120 |  |  | 15 |  | 24,326 |  |  | 1,120 |
Total held-to-maturity debt securities | 16 |  | 14,536 |  |  | 23 |  |  | 376 |  | 325,172 |  |  | 35,385 |  |  | 392 |  | 339,708 |  |  | 35,408 |
Total | 27 |  | $ | 92,590 |  |  | $ | 1,164 |  |  | 503 |  | $ | 505,611 |  |  | $ | 54,233 |  |  | 530 |  | $ | 598,201 |  |  | $ | 55,397 |
(Dollars in thousands) | Less Than 12 Months |  | 12 Months or More |  | Total
December 31, 2024 | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses
Available-for-sale securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | — |  | $ | — |  |  | $ | — |  |  | 12 |  | $ | 21,507 |  |  | $ | 740 |  |  | 12 |  | $ | 21,507 |  |  | $ | 740 |
Mortgage-backed U.S. government agencies | 9 |  | 72,499 |  |  | 1,847 |  |  | 91 |  | 130,445 |  |  | 17,684 |  |  | 100 |  | 202,944 |  |  | 19,531 |
State and political subdivision obligations | — |  | — |  |  | — |  |  | 8 |  | 3,596 |  |  | 713 |  |  | 8 |  | 3,596 |  |  | 713 |
Corporate debt securities | — |  | — |  |  | — |  |  | 18 |  | 32,430 |  |  | 3,320 |  |  | 18 |  | 32,430 |  |  | 3,320 |
Total available-for-sale securities | 9 |  | 72,499 |  |  | 1,847 |  |  | 129 |  | 187,978 |  |  | 22,457 |  |  | 138 |  | 260,477 |  |  | 24,304 |
Held-to-maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies | — |  | $ | — |  |  | $ | — |  |  | 143 |  | $ | 213,808 |  |  | $ | 28,133 |  |  | 143 |  | $ | 213,808 |  |  | $ | 28,133 |
Mortgage-backed U.S. government agencies | 2 |  | 163 |  |  | 1 |  |  | 62 |  | 31,922 |  |  | 5,507 |  |  | 64 |  | 32,085 |  |  | 5,508 |
State and political subdivision obligations | 8 |  | 3,176 |  |  | 30 |  |  | 169 |  | 67,446 |  |  | 6,810 |  |  | 177 |  | 70,622 |  |  | 6,840 |
Corporate debt securities | 4 |  | 10,500 |  |  | — |  |  | 11 |  | 13,633 |  |  | 1,318 |  |  | 15 |  | 24,133 |  |  | 1,318 |
Total held to maturity securities | 14 |  | 13,839 |  |  | 31 |  |  | 385 |  | 326,809 |  |  | 41,768 |  |  | 399 |  | 340,648 |  |  | 41,799 |
Total | 23 |  | $ | 86,338 |  |  | $ | 1,878 |  |  | 514 |  | $ | 514,787 |  |  | $ | 64,225 |  |  | 537 |  | $ | 601,125 |  |  | $ | 66,103 |
At March 31, 2025 and 2024, 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 credit related losses as of March 31, 2025 and 2024, and did not record any securities losses in the respective periods ended on these dates. Mid Penn does not consider the securities with unrealized losses on the respective dates to be credit related losses 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 months ended March 31, 2025 and 2024.
The table below illustrates the contractual maturity of debt investment securities at amortized cost and estimated fair value. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay with or without call or prepayment penalties.
(In thousands) | Available-for-sale |  | Held-to-maturity
March 31, 2025 | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Due in 1 year or less | $ | 10,501 |  |  | $ | 10,486 |  |  | $ | 19,738 |  |  | $ | 19,640 |
Due after 1 year but within 5 years | 22,423 |  |  | 21,734 |  |  | 140,361 |  |  | 131,748 |
Due after 5 years but within 10 years | 28,564 |  |  | 25,538 |  |  | 164,425 |  |  | 145,154 |
Due after 10 years | 844 |  |  | 628 |  |  | 14,316 |  |  | 11,593 |
| 62,332 |  |  | 58,386 |  |  | 338,840 |  |  | 308,135 |
Mortgage-backed securities | 215,826 |  |  | 200,107 |  |  | 36,275 |  |  | 31,573 |
| $ | 278,158 |  |  | $ | 258,493 |  |  | $ | 375,115 |  |  | $ | 339,708 |

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