Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on a Recurring Basis

The following tables illustrate the assets measured at fair value on a recurring basis and reported on the Consolidated Balance Sheets:

	2022
(In thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale securities:
U.S. Treasury and U.S. government agencies	$	—	$	34,914	$	—	$	34,914
Mortgage-backed U.S. government agencies	—		166,915		—		166,915
State and political subdivision obligations	—		3,539		—		3,539
Corporate debt securities	—		32,510		—		32,510
Equity securities	430		—		—		430
Loans held for sale	—		2,475		—		2,475
Other assets:
Interest rate swap agreements	—		11,697		—		11,697
Mortgage banking derivative assets, net	—		6		—		6
Total	$	430	$	252,056	$	—	$	252,486

	2021
(In thousands)	Level 1		Level 2		Level 3		Total
Available-for-sale securities:
Mortgage-backed U.S. government agencies	$	—	$	49,480	$	—	$	49,480
State and political subdivision obligations	—		3,914		—		3,914
Corporate debt securities	—		9,468		—		9,468
Equity securities	500		—		—		500
Loans held for sale	—		11,514		—		11,514
Other assets:
Interest rate swap agreements	—		102		—		102
Mortgage banking derivative assets, net	—		53		—		53
Total	$	500	$	74,531	$	—	$	75,031

Fair Value Measurements, Nonrecurring

The following table illustrates Level 3 financial instruments measured at fair value on a nonrecurring basis as of December 31:

(In thousands)	2022		2021
Impaired loans (1)	$	938	$	508
Foreclosed assets held for sale	43		—

(1) Includes impaired loans reporting a specific allocation or that have been partially charged-off.

Fair Value, by Balance Sheet Grouping

The following tables present the carrying amount, fair value, and placement in the fair value hierarchy of Mid Penn’s financial instruments as of December 31:

	2022
			Estimated Fair Value
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial instruments - assets
Cash and cash equivalents	$	60,881	$	60,881	$	—	$	—	$	60,881
Available-for-sale investment securities	237,878		—		237,878		—		237,878
Held-to-maturity investment securities	399,494		—		348,505		—		348,505
Equity securities	430		430		—		—		430
Loans held for sale	2,475		—		2,475		—		2,475
Net loans	3,495,162		—		—		3,439,948		3,439,948
Restricted investment in bank stocks	8,315		8,315		—		—		8,315
Accrued interest receivable	18,405		18,405		—		—		18,405
Interest rate swap agreements	11,697		—		11,697		—		11,697
Mortgage banking derivative assets	46		—		46		—		46
Financial instruments - liabilities
Deposits	$	3,778,331	$	—	$	3,761,260	$	—	$	3,761,260
Short-term debt	102,647		—		102,647		—		102,647
Long-term debt (1)	1,119		—		1,069		—		1,069
Subordinated debt	56,941		—		55,917		—		55,917
Accrued interest payable	2,303		2,303		—		—		2,303
Interest rate swap agreements	11,697		—		11,697		—		11,697
Mortgage banking derivative liabilities	40		—		40		—		40

	2021
			Estimated Fair Value
(In thousands)	Carrying Amount		Level 1		Level 2		Level 3		Total
Financial instruments - assets
Cash and cash equivalents	$	913,752	$	913,752	$	—	$	—	$	913,752
Available-for-sale investment securities	62,862		—		62,862		—		62,862
Held-to-maturity investment securities	329,257		—		330,626		—		330,626
Equity securities	500		500		—		—		500
Loans held for sale	11,514		—		11,514		—		11,514
Net loans	3,089,799		—		—		3,118,416		3,118,416
Restricted investment in bank stocks	9,134		9,134		—		—		9,134
Accrued interest receivable	10,779		10,779		—		—		10,779
Interest rate swap agreements	1,808		—		1,808		—		1,808
Mortgage banking derivative assets	75		—		75		—		75
Financial instruments - liabilities
Deposits	$	4,002,016	$	—	$	4,046,217	$	—	$	4,046,217
Long-term debt (1)	77,890		—		77,455		—		77,455
Subordinated debt	74,274		—		74,553		—		74,553
Accrued interest payable	1,791		1,791		—		—		1,791
Interest rate swap agreements	1,808		—		1,808		—		1,808
Mortgage banking derivative liabilities	22		—		22		—		22

(1)Long-term debt excludes finance lease obligations