Leases (Tables)

3 Months Ended

Mar. 31, 2019

Summary of Operating and Finance Lease Right-of-Use Assets and Related Lease Liabilities

Below is a summary of the operating and finance lease right-of-use assets and related lease liabilities, as well as the weighted average lease term (in years) and weighted average discount rate for each of the lease classifications as of March 31, 2019.

(Dollars in thousands)	March 31, 2019
	Operating Leases			Finance Lease
Right of use asset	$	11,249		$	3,582
Lease liability	$	12,428		$	3,601
Weighted average remaining lease term (in years)		9.37			19.92
Weighted average discount rate		3.42	%		3.81	%

Summary of Lease Costs

A summary of lease costs during the three months ended March 31, 2019 is presented below. Interest expense on finance lease liabilities is included in other interest expense, while all other lease costs are included in occupancy expense on Mid Penn’s Consolidated Statements of Income.

(Dollars in thousands)	Three months ended
	March 31, 2019
Finance lease cost:
Amortization of right-of-use asset	$	15
Interest expense on lease liability		11
Total finance lease cost		26
Operating lease cost		515
Short-term lease cost		—
Variable lease cost		—
Sublease income		(5	)
Total lease costs	$	536

Summary of Cash Paid for Amounts Included in Measurement of Lease Liabilities

A summary of cash paid for amounts included in the measurement of lease liabilities is presented below.

(Dollars in thousands)	Three months ended
	March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	11
Operating cash flows from operating leases		542
Financing cash flows from finance leases		15

Summary of Maturity Analysis of Operating and Finance Lease Liabilities and Reconciliation of Undiscounted Cash Flows

A maturity analysis of operating and finance lease liabilities and a reconciliation of the undiscounted cash flows to the total operating and finance lease liability amounts is presented below.

(Dollars in thousands)	March 31, 2019
	Operating Leases			Finance Lease
Lease payments due:
Within one year	$	1,620		$	152
After one but within two years		1,965			217
After two but within three years		1,603			217
After three but within four years		1,464			217
After four but within five years		1,245			217
After five years		6,691			4,244
Total undiscounted cash flows		14,588			5,264
Discount on cash flows		(2,160	)		(1,663	)
Total lease liability	$	12,428		$	3,601