Other Benefit Plans

12 Months Ended

Dec. 31, 2025

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Mid Penn maintains several benefit plans for current and former employees of the Corporation. Liabilities related to the plans are recorded in other liabilities on the Consolidated Balance Sheet, and the aggregate cash surrender values associated with life insurance plans are recorded in the cash surrender value of life insurance line item on the Consolidated Balance Sheet. Significant aspects of the plans are detailed below.

Defined-Contribution 401(k) Plan - The Bank sponsors a 401(k) plan that covers substantially all employees. The plan allows employees to defer a portion of their salaries and wages and provides for employer matching contributions, subject to certain percentage limits. The Corporation’s matching contributions to the 401(k) Plan totaled $2.1 million, $1.8 million, and $1.7 million for the years ended December 31, 2025, 2024, and 2023, respectively and are included as a component of salaries and benefits expense in the Consolidated Statements of Income. The plan also includes a funded contributory profit-sharing provision when applicable. The Corporation did not make profit-sharing contributions in 2025, 2024, or 2023.

Deferred Compensation Plan - Mid Penn sponsors a directors’ deferred compensation plan that allows directors to defer receipt of director fees for a specified period to provide future retirement income. The Corporation recorded accrued liabilities of $2.8 million and $2.6 million as of December 31, 2025 and 2024, respectively. Deferred compensation expense totaled $171 thousand, $159 thousand and $127 thousand for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in other expense in the Consolidated Statements of Income.

As part of the acquisition of William Penn, the Company assumed nonqualified deferred compensation plan obligations covering four participants. The balance related to the acquired plans was approximately $1.0 million as of December 31, 2025 and is included in deferred compensation liabilities within other liabilities on the Consolidated Balance Sheets.

Supplemental Executive Retirement Plan - The Corporation maintains supplemental executive retirement plan agreements ("SERPs") with certain executive officers and members of executive management. These agreements provide for the monthly payment of a fixed cash benefit over a period of 15 years, commencing on the first day of the month following the executive's separation from service due to: (i) normal retirement age (generally age 70), (ii) disability, (iii) death, or (iv) a qualifying change in control of the Bank. In 2025, the Corporation amended certain existing SERP agreements and entered into an additional SERP agreement with its Chief Executive Officer.

Benefits vest over a term of four to ten years, with a portion of benefits having previously vested for several of the participants. Any unvested portion of the benefit becomes fully vested upon a change in control of the Bank. The accrued liability for the supplemental retirement plans totaled $4.2 million and $3.2 million as of December 31, 2025 and 2024, respectively. Expense related to the SERPs totaled $979 thousand, $739 thousand and $792 thousand for the years ended December 31, 2025, 2024 and 2023, respectively, and is included in salaries and benefits expense in the Consolidated Statements of Income.

In connection with the William Penn Acquisition, the Company also assumed supplemental retirement plan obligations covering three participants. The balance related to the acquired plans was approximately $315 thousand as of December 31, 2025 and is included in other liabilities on the Consolidated Balance Sheets.

Split Dollar Life Insurance Arrangements - As of December 31, 2025 and 2024, the Bank maintained split dollar life insurance arrangements with certain current and former employees and executives. The aggregate collateral assignment and cash surrender values of these arrangements were approximately $1.4 million as of December 31, 2025 and 2024, respectively.

Mid Penn acquired Phoenix’s split dollar life insurance arrangements in 2015, which had aggregate cash surrender values of $4.6 million and $4.5 million as of December 31, 2025 and 2024, respectively. In 2018, Mid Penn acquired First Priority’s split dollar life insurance arrangements, with aggregate cash surrender values of $3.8 million as of December 31,

2025 and 2024, respectively. In 2021, Mid Penn acquired Riverview’s split dollar life insurance arrangements, which had aggregate cash surrender values of $1.4 million as of December 31, 2025 and 2024, respectively.

Rabbi Trust - As a result of the Riverview acquisition, Mid Penn assumed certain benefit plan liabilities related to executive nonqualified retirement benefits, deferred compensation plans, and separation agreements, which are included in other liabilities on the Consolidated Balance Sheets. These obligations are funded through a Rabbi Trust, which provides a source of funds for satisfying the related compensation obligations. Cash balances held in the Rabbi Trust are included in other assets on the Consolidated Balance Sheets and totaled $2.5 million and $2.7 million as of December 31, 2025 and 2024, respectively.

The details of the compensation arrangements for the years ended December 31 include:


(In thousands)	Fully Funded Gross Amounts
Compensation Arrangements	2025		2024
Supplemental executive retirement agreements	$	1,012	$	1,112
Executive deferred compensation agreement	1,031		1,235



Total compensation agreements	$	2,043	$	2,347