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Fair Value Measurement | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurement | Fair Value Measurement Mid Penn uses estimates of fair value in applying various accounting standards for its consolidated financial statements on either a recurring or non-recurring basis. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. Mid Penn groups its assets and liabilities measured at fair value in three hierarchy levels, based on the observability and transparency of the inputs. The fair value hierarchy is as follows: Level 1 - Inputs that represent quoted prices for identical instruments in active markets. Level 2 - Inputs that represent quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3 - Inputs that are largely unobservable, as little or no market data exists for the instrument being valued. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. There were no transfers of assets between fair value Level 1 and Level 2 during the three and nine months ended September 30, 2025 or the year ended December 31, 2024. The following tables illustrate the assets and liabilities measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets.
|  | September 30, 2025
(In thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Available-for-sale securities: |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | $ | — |  |  | $ | 19,942 |  |  | $ | — |  |  | $ | 19,942 |
Mortgage-backed U.S. government agencies |  | — |  |  | 365,623 |  |  | — |  |  | 365,623 |
State and political subdivision obligations |  | — |  |  | 3,778 |  |  | — |  |  | 3,778 |
Corporate debt securities |  | — |  |  | 38,009 |  |  | — |  |  | 38,009 |
Equity securities |  | 442 |  |  | — |  |  | — |  |  | 442 |
Loans held for sale |  | — |  |  | 6,085 |  |  | — |  |  | 6,085 |
Other assets: |  |  |  |  |  |  |  |
Derivative assets |  | — |  |  | 9,491 |  |  | — |  |  | 9,491 |
Other liabilities: |  |  |  |  |  |  |  |
Derivative liabilities |  | — |  |  | 9,201 |  |  |  |  | 9,201 |
|  | December 31, 2024
(In thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Available-for-sale securities: |  |  |  |  |  |  |  |
U.S. Treasury and U.S. government agencies |  | $ | — |  |  | $ | 21,507 |  |  | $ | — |  |  | $ | 21,507 |
Mortgage-backed U.S. government agencies |  | — |  |  | 202,944 |  |  | — |  |  | 202,944 |
State and political subdivision obligations |  | — |  |  | 3,596 |  |  | — |  |  | 3,596 |
Corporate debt securities |  | — |  |  | 32,430 |  |  | — |  |  | 32,430 |
Equity securities |  | 428 |  |  | — |  |  | — |  |  | 428 |
Loans held for sale |  | — |  |  | 7,064 |  |  | — |  |  | 7,064 |
Other assets: |  |  |  |  |  |  |  |
Derivative assets |  | — |  |  | 13,708 |  |  | — |  |  | 13,708 |
Other liabilities: |  |  |  |  |  |  |  |
Derivative liabilities |  | — |  |  | 11,118 |  |  | — |  |  | 11,118 |
The valuation methodologies and assumptions used to estimate the fair value for the items in the preceding tables are as follows: Available for sale investment securities - The fair value of equity and debt securities classified as available for sale is determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities, but rather, relying on the securities’ relationship to other benchmark quoted prices. Equity securities - The fair value of equity securities with readily determinable fair values is recorded on the Consolidated Balance Sheet, with realized and unrealized gains and losses reported in other expense on the Consolidated Statements of Income. Loans held for sale - This category includes mortgage loans held for sale that are measured at fair value. Fair values as of September 30, 2025 were measured as the price that secondary market investors were offering for loans with similar characteristics. Derivative instruments - Interest rate swaps are measured by alternative pricing sources with reasonable levels of price transparency in markets that are not active. Based on the complex nature of interest rate swap agreements, the markets these instruments trade in are not as efficient and are less liquid than that of the more mature Level 1 markets. These markets do, however, have comparable, observable inputs in which an alternative pricing source values these assets in order to arrive at a fair value. These characteristics classify interest rate swap agreements as Level 2. Mortgage banking derivatives - represent the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors and the fair value of interest rate swaps. The fair values of Mid Penn’s interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. These characteristics classify Mortgage banking derivatives as Level 2. As of September 30, 2025, Mortgage banking derivatives are not considered material. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (for example, upon their acquisition or when there is evidence of impairment). The following table illustrates financial instruments measured at fair value on a nonrecurring basis:
|  | September 30, 2025
(In thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Individually evaluated loans, net of ACL |  | $ | — |  |  | $ | — |  |  | $ | 15,752 |  |  | $ | 15,752 |
Foreclosed assets held for sale |  | — |  |  | — |  |  | 9,346 |  |  | 9,346 |
|  | December 31, 2024
(In thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Individually evaluated loans, net of ACL |  | $ | — |  |  | $ | — |  |  | $ | 21,171 |  |  | $ | 21,171 |
Foreclosed assets held for sale |  | — |  |  | — |  |  | 44 |  |  | 44 |
Net loans - This category consists of loans that were individually evaluated for credit losses, net of the related ACL, and have been classified as Level 3 assets. All of Mid Penn’s individually evaluated loans for 2025 and 2024, whether reporting a specific allowance allocation or not, are considered collateral-dependent. Mid Penn utilized Level 3 inputs such as independent appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable. Appraisals may be adjusted downward by management for qualitative factors such as economic conditions and estimated liquidation expenses. Foreclosed assets held for sale - Values are based on appraisals that consider the sales prices of property in the proximate vicinity. The following table presents additional information about the valuation techniques for level 3 assets measured at fair value on a nonrecurring basis.
|  | September 30, 2025
(In thousands) |  | Fair Value |  | Valuation Technique |  | Significant Unobservable Input |  | Range of Inputs |  | Weighted Average
Individually evaluated loans, net of ACL |  | $ | 15,752 |  |  | Appraisal of collateral |  | Appraisal adjustments |  | 8% | - | 100% |  | 24.9%
Foreclosed assets held for sale |  | 9,346 |  |  | Appraisal of collateral |  | Appraisal adjustments |  | 22% | - | 31% |  | 23.9%
|  | December 31, 2024
(In thousands) |  | Fair Value |  | Valuation Technique |  | Significant Unobservable Input |  | Range of Inputs |  | Weighted Average
Individually evaluated loans, net of ACL |  | $ | 21,171 |  |  | Appraisal of collateral |  | Appraisal adjustments |  | —% | - | 100% |  | 5.6%
Foreclosed assets held for sale |  | 44 |  |  | Appraisal of collateral |  | Appraisal adjustments |  | 26% | - | 26% |  | 26.0%
The following tables summarize the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn's financial instruments as of the periods presented:
|  | September 30, 2025
|  | Carrying Amount |  | Estimated Fair Value
(In thousands) |  |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial instruments - assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 257,169 |  |  | $ | 257,169 |  |  | $ | — |  |  | $ | — |  |  | $ | 257,169 |
Available-for-sale securities |  | 427,352 |  |  | — |  |  | 427,352 |  |  | — |  |  | 427,352 |
Held-to-maturity securities |  | 354,094 |  |  | — |  |  | 325,606 |  |  | — |  |  | 325,606 |
Equity securities |  | 442 |  |  | 442 |  |  | — |  |  | — |  |  | 442 |
Loans held for sale |  | 6,085 |  |  | — |  |  | 6,085 |  |  | — |  |  | 6,085 |
Net loans |  | 4,783,797 |  |  | — |  |  | — |  |  | 4,820,035 |  |  | 4,820,035 |
Restricted investment in bank stocks |  | 6,737 |  |  |  |  | 6,737 |  |  | — |  |  | 6,737 |
Accrued interest receivable |  | 29,705 |  |  | 29,705 |  |  | — |  |  | — |  |  | 29,705 |
Derivative assets |  | 9,491 |  |  | — |  |  | 9,491 |  |  | — |  |  | 9,491 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 5,342,720 |  |  | $ | — |  |  | $ | 5,352,901 |  |  | $ | — |  |  | $ | 5,352,901 |
Short-term borrowings |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Long-term debt (1) |  | 20,304 |  |  | — |  |  | 20,343 |  |  | — |  |  | 20,343 |
Subordinated debt |  | 37,149 |  |  | — |  |  | 36,542 |  |  | — |  |  | 36,542 |
Accrued interest payable |  | 16,460 |  |  | 16,460 |  |  | — |  |  | — |  |  | 16,460 |
Derivative liabilities |  | 9,201 |  |  | — |  |  | 9,201 |  |  | — |  |  | 9,201 |
(1)Long-term debt excludes finance lease obligations.
|  | December 31, 2024
|  |  |  | Estimated Fair Value
(In thousands) |  | Carrying Amount |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Financial instruments - assets |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 70,564 |  |  | $ | 70,564 |  |  | $ | — |  |  | $ | — |  |  | $ | 70,564 |
Available-for-sale securities |  | 260,477 |  |  | — |  |  | 260,477 |  |  | — |  |  | 260,477 |
Held-to-maturity securities |  | 382,447 |  |  | — |  |  | 340,648 |  |  | — |  |  | 340,648 |
Equity securities |  | 428 |  |  | 428 |  |  | — |  |  | — |  |  | 428 |
Loans held for sale |  | 7,064 |  |  | — |  |  | 7,064 |  |  | — |  |  | 7,064 |
Net loans |  | 4,407,556 |  |  | — |  |  | — |  |  | 4,430,623 |  |  | 4,430,623 |
Restricted investment in bank stocks |  | 7,461 |  |  |  |  | 7,461 |  |  | — |  |  | 7,461 |
Accrued interest receivable |  | 26,846 |  |  | 26,846 |  |  | — |  |  | — |  |  | 26,846 |
Derivative assets |  | 13,708 |  |  | — |  |  | 13,708 |  |  | — |  |  | 13,708 |
Financial instruments - liabilities |  |  |  |  |  |  |  |  |  |
Deposits |  | $ | 4,689,927 |  |  | $ | — |  |  | $ | 4,684,548 |  |  | $ | — |  |  | $ | 4,684,548 |
Short-term debt |  | 2,000 |  |  | — |  |  | 2,000 |  |  | — |  |  | 2,000 |
Long-term debt (1) |  | 20,540 |  |  | — |  |  | 19,120 |  |  | — |  |  | 19,120 |
Subordinated debt |  | 45,741 |  |  | — |  |  | 42,811 |  |  | — |  |  | 42,811 |
Accrued interest payable |  | 13,484 |  |  | 13,484 |  |  | — |  |  | — |  |  | 13,484 |
Derivative liabilities |  | 11,118 |  |  | — |  |  | 11,118 |  |  | — |  |  | 11,118 |
(1)Long-term debt excludes finance lease obligations. The Bank’s outstanding and unfunded credit commitments and financial standby letters of credit were deemed to have no significant fair value as of September 30, 2025 and December 31, 2024.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
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