Federal Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Net Deferred Tax Asset

The following temporary differences gave rise to the net deferred tax asset at December 31, 2017 and 2016.

(Dollars in thousands)	2017			2016
Deferred tax assets:
Allowance for loan and lease losses	$	1,597		$	2,442
Loan fees		105			82
Deferred compensation		221			341
Benefit plans		320			565
Unrealized loss on securities		574			1,504
Nonaccrual interest		—			955
Business combination adjustments		358			720
Sale/leaseback adjustment		72			—
Other		108			177
		3,355			6,786
Deferred tax liabilities:
Depreciation		(619	)		(1,175	)
Bond accretion		(9	)		(117	)
Goodwill and intangibles		(329	)		(500	)
Prepaid expenses		(333	)		(312	)
Business combination adjustments		(176	)		(367	)
Other		(1	)		(29	)
		(1,467	)		(2,500	)
Deferred tax asset, net	$	1,888		$	4,286

Provision for Income Taxes

The provision for income taxes consists of the following:

(Dollars in thousands)	2017		2016			2015
Current expense	$	2,672	$	2,613		$	647
Deferred expense (benefit)		1,828		(336	)		997
Total provision for income taxes	$	4,500	$	2,277		$	1,644

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of income tax at the statutory rate of 34% to Mid Penn's effective rate is as follows:

(Dollars in thousands)	2017			2016			2015
Provision at the expected statutory rate	$	3,940		$	3,428		$	2,779
Effect of tax-exempt income		(668	)		(1,089	)		(1,105	)
Effect of investment in life insurance		(89	)		(90	)		(91	)
Nondeductible interest		30			41			37
Nondeductible merger and acquisition expense		191			—			34
Rate change adjustment		1,169			—			—
Other items		(73	)		(13	)		(10	)
Provision for income taxes	$	4,500		$	2,277		$	1,644